disruptive technology: using robots as a service disruptive technology: using robots as a service...

Disruptive Technology: Using Robots as a

ServiceMike Oitzman, CEO/Founder, Market Spec Group

Lior Elazary, CEO, InVia Robotics

ROBOTICS MARKET VIEW

Strategy

Budget

Manage Robotic Workforce

BOTTOM LINE: Need to reduce costs, improve efficiency and meet KPI’s

CUSTOMER

ROBOTICS MARKET VIEW

AUTOMATION VENDOR

Innovate / Competitive

Sales Funnel

Support Customers

Manage Cash Flow

BOTTOM LINE: Decide when/where to invest and find/serve customers

MARKET VIEW

AUTOMATION VENDORCUSTOMER

Strategy

Budget

Manage Robotic Workforce

Innovate / Competitive

Support

???????? Sales Funnel

Manage Cash Flow

The Hurdle:

Capital Asset Approval Cycle

• Classic equipment sales model

• Situation: CapEx buying is a long process

• Complication: Equipment often costs more than budgets allow.

• Implication: Depreciation schedules can leave customer “holding the bag”

VendorCustomerCapital Asset

Sales Cycle

Budgets

Service/Support

IntegrationInstallation

Depreciation

Capital

Expense

Approvals

ROI

VendorCustomerOperating Expense

Sales Cycle

Service/Support

Integration

Installation

Operating

Expense

Immediate ROI

Robots-as-a-Service: What is it?

• AKA Managed Services

• Bundle of hardware, software, services and support

• Ongoing subscription based on consumption

• Tiered solution levels

IS RaaS the Holy Grail?

Key selling points:

• Lower initial cost of solution to customer

• Move from CapEx to OpEx expense

• “Stickier” relationship

• Stable / recurring revenue stream for vendor

• Service Level Agreement

Is Leasing an Answer?

Pros• Removes the upfront investment

• Operating expense

Cons• Involves a third party

• Doesn’t address service improvement requirements

• Doesn’t bring recurring revenue to vendor

• Doesn’t incentivize vendor to continuously innovate

Opportunity: Emergence of “Robot Service Organizations”

RAAS COMPANY PROFILE

Company: InVia Robotics

Application: Logistics Goods-to-Person

Performance KPI: Cost per pick/Picks per hour

Key RaaS Features:

• Robot Management System (RMS)

• Robot Operations Center (ROC)

• 24/7/365 support

• Elastic throughput

• Cost certainty

Lior Elazary, CEO, Invia Robotics

Our customers don’t want to be robot

experts. InVia delivers a flexible end-

to-end solution at a predictable cost.“

www.inviarobotics.com

Demand is Up, Supply is Shrinking, Wages Are Rising

Warehouse Industry is Drastically Lagging Other Industries

Why Not Robots in the Warehouse?

But Now… Inflection Point is Here

Sign Me Up!

What’s the Catch? CAPEX

VendorCustomerCapital Asset

Sales Cycle

Budgets

Service/Support

IntegrationInstallation

Depreciation

Capital

Expense

Approvals

ROI

What’s the Catch? Technological Revolution

What’s the Catch? Becoming a Robotics Company

Enter Robots as a Service. Key Takeaways

Key Business Takeaways:

• Cost reduction• CAPEX process

• Infrastructure

• Support

• Cost certainty

• Move faster and reliably with the experts• Integration

• Support

• Flexibility, adaptability and agility

• Remain on the leading edge of technology

Summary: Market Leading RaaS Solutions

KPI-based

Service Level Agreement

Remote Monitoring

24/7/365 remote support

Relationship centric

Focus on core strengths

Faster innovation cycles

Creating a Win-Win with RaaS

For the Customer/Buyer:

+ Simplified return on investment (ROI) criteria

+ Reduced up front investment

+ Elastic consumption

+ Free software upgrades

+ Higher quality components

+ More intimate vendor support

+ Comparable consumption rates to manual labor

For the Solution Provider:

+ More predictable, recurring cash flow

+ Shortened product sales cycle

+ Better sales funnel visibility

+ Higher touch support interaction

+ More precise innovation cycles

Download the latest RaaS Whitepaper

The Market Spec Group | www.market-spec.com

• What is RaaS?

• Customer Interaction Model

• Product Design Considerations

• RaaS Organization Structure

http://bit.ly/raas2017

Questions?

Mike OitzmanCEO/Founder

The Market Spec Group

Telephone: 1 (415) 828-9382

Email:mike.oitzman@market-spec.com

www.market-spec.com

Lior ElazaryCEO/Founder

InVia Robotics

Telephone: 1 (855) 424-6842

Email:lior@inviarobotics.com

www.inviarobotics.com