strategy: arming your field work force with mobile
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© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D . #
“Life begets life.
Energy creates energy.
It is only by spending oneself that one becomes
rich.”
Sarah Bernhardt
AGENDA
• Introductions
• Mobile Application Deployment - Case Study
• Spinning off
• Conclusions
• Q & A
3© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D .
INTRODUCTIONS
• Who:
• Brian Hase
• CTO of Braun Intertec and Agile Frameworks, a subsidiary of Braun Intertec
• Braun Intertec – Oversight responsibility for IT application portfolio at Braun Intertec
• Agile Frameworks - Operational responsibility for development & delivery of software
products, solutions, services
• What:
• Braun Intertec’s experience in deploying mobile line-of-business applications for its extensive field
operations
• Braun Intertec’s experience in creating a software company spin-off to leverage its intellectual
property in the market
• Why:
• If you have any business processes reliant on field or mobile workers, you have an opportunity
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INTRODUCTIONS
• Founded in 1957 by Jack Braun
• Provides geotechnical engineering, environmental consulting, building envelope consulting, and
materials and analytical testing services.
• 500+ employees
• 15 offices in Minnesota, Wisconsin, and Iowa
• 100% employee owned
• Subsidiaries: Agile Frameworks, Braun Intertec Geothermal
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INTRODUCTIONS
• Founded April 2011 as a wholly owned subsidiary of Braun Intertec
• Spin off founded to leverage intellectual property in the AEC market
• 20 employees
• 3 integrated products serving CMT disciplines in the AEC market
• National client base: Richmond VA, San Antonio TX, St. Louis MO, Fort Lauderdale FL
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SOME WIKI-HISTORY
• 1973 – Theodore George “Ted” Paraskevakos invented and patented many of the concepts
that combine intelligence, data processing, and visual display screens with telephones –
he invented the original basis of “caller id”.
• Holds 60 patents including digital alarm communications systems, portable cardiac
alarms, automatic meter reading, and indoor archery indoor practice devices
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SOME WIKI-HISTORY
Early GSM or CDMA digital wireless devices left something to be desired:
• Hardware technology
• Software applications and interoperability
• Ecosystem, wireless networks, etc.
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WTF?
SOME WIKI-HISTORY
• 1992 – IBM’s “Simon” was the first real smart phone including most of the applications we
associate with a smart phone
• it was big, ate batteries for breakfast
• wasn’t as cool as the flip phones
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SOME WIKI-HISTORY
• 2004 – Confusion reigns…
• January 4th 2004 Nasa’s Spirit Rover lands on Mars
• January 25th 2004 Nasa’s Opportunity lands on Mars
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SOME WIKI-HISTORY
• 2004 – Confusion reigns…
• February 1st, 2004 was one of the best super bowls of all times
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SOME WIKI-HISTORY
• 2004 – Confusion reigns but the smart phone comes of age at Braun Intertec
• Deployed with 2 providers, Nextel and Verizon
• 100+ deployed to project managers, engineers and field technicians
• MDM - Blackberry Enterprise Server
• For mobile office - also deployed Terminal Services
• Developed in thin web application
• RIM SDK native application
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THE BUSINESS CASE IN 2004
See Braun Intertec PowerPoint circa August, 2004
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APPROACH
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APPROACH
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BUSINESS RESULTS
© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D . #
Braun Intertec: Construction Materials Testing business unit
• Uninterrupted operation since 2005
• 20%-30% productivity improvement primarily as a result of high quality data, less rework, elimination of word processing
• Cycle time reduction weeks to days/hours/minutes; cycle time has become discretionary
• As of today: 380 users
500,000+ transactions (field work activities)
200,000+ client reports
• Version 2.3 deploying in February
BUSINESS RESULTS
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0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2004 2005 2006 2007 2008 2009 2010 2011
Transactions
Reports
BUSINESS RESULTS
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•Software - $50,000
•100 Blackberries - $25,000,
•Other hardware - $35,000
•Data/cellular subscription - $66,000
•Software - $15,000; Replacement parts - $5,000
•Reduced test time by 4 min. each 7,900
hours/year
•Labor savings of 3.8 FTE’s or $237,000 at
$30/hour
•200+ hours/year in signing documents
•7,900 billable hours At $65/hour
Cost
Reduction
Revenue
Potential
Initial Investment $
110,000
$ 110,000
Annual
Investments
$ 86,000 $ 86,000
Annual Benefit
from Cost Savings:
$
237,000
Additional
Capacity:
$
513,000
NPV 5 Years at
5%:
$
517,858
$1,655,89
2
ROI 135% 388%
BUSINESS RESULTS
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$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
PAS MetaField Braun Interport Portals/Integrated
Workflow
Cost
Benefit
THE BUSINESS RESULTSMetaFieldTM Implementation - Quantitative Value Analysis
Initial Investment Year One Year Two Year Three
BENEFITS
Field Staff - Productivity/Cost Avoidance $ 293,608 $ 302,416 $ 311,488
Project Managers - Productivity/Cost Avoidance $ 105,296 $ 108,455 $ 111,709
Administration - Productivity/Cost Avoidance $ 59,409 $ 61,191 $ 63,027
Document production, retention, search $ 9,979 20,556 31,759
Total Benefits $468,291 $492,618 $517,983
Cumulative value $468,291 $960,909 $1,478,892
INVESTMENTS
Initial
Investm
ent
MetaFieldTM Implementation Costs $ 37,464 $ - $ - $ -
Field User Device Acquisition Costs $ 32,500 $ - $ - $ -
Recurring Investment
Field Device Management/Replacement Costs $ 14,430 $ 14,863 $ 15,309
Telcom/Data Provider Costs $ 46,800 $ 48,204 $ 49,650
MetaFieldTM Licensing Costs $ 60,480 $ 60,480 $ 60,480
Total Investment ($69,964) ($121,710) ($123,547) ($125,439)
Cumulative investment ($69,964) ($191,674) ($315,221) ($440,660)
NET VALUE
Annual Benefit Flow $346,581 $369,071 $392,544
Monthly Benefit Flow $28,882 $30,756 $32,712
Cumulative Benefit Flow $276,617 $645,688 $1,038,232
Net Present Value of 3 Year Investment $790,602
Cumultive Payback of Investments 2.44 times 3.05 times 3.36 times
Initial Investment Paid Back in 2.42 months
ROI (by year) 395.37% 485.47% 499.06%
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SOME LEARNINGS
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Focus on a single line of business to
get a win
Work with older staff first
Consolidate and negotiate with
carriers
Native vs. HTML5 … it depends
Gather data at origin
Real-time visibility
Enable the entire business process
Structured data feeds the future value
chain
THE SPIN-OFF CONCEPT
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Mission: to help multidisciplinary engineering firms improve profitability,
cash flow, and service delivery via best practices in process and
technology.
Benefit to Braun Intertec:
Address our own IT sustainability & scalability challenges
Retain the benefits of ownership and license rights
Produce a new value stream with significant cash advantage
Drive
THE MARKET
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Industry: Engineering services
NAICS Code: 54133
Measure: Labor productivity, output per hour
Duration: index, 1997 = 100
Base Year: 1997
Sector: Non- Farm Business
Measure: Labor productivity, output per hour
Duration: index, 1997 = 100
Base Year: 1997
Major Sector Productivity and Costs IndexEngineering Services Productivity and Costs Index
Industry: Software publishers
NAICS Code: 51121
Measure: Labor productivity, output per hour
Duration: index, 1997 = 100
Base Year: 1997
+10%
+50%
+84%
MARKET DRIVERS
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• Competition is fierce.
• Race to the bottom line or provide added value
• Consolidation is rampant.
• Narrow vendor offerings: line-of-business vendors have narrow or limited subject
matter expertise to aid in real-world implementation and support
• Monolithic approach: software offerings are either monolithic (trying to be everything
to everybody), incomplete, or process poor
VALUE PROPOSITION
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Competitive AdvantageDifferentiate with “Value Add” vs. “Race to the Bottom”
“Stickier” Client RelationshipsStrengthen key relationships by providing useful, user-friendly access to
information.
Document /Information Management Ability to retain, reproduce and manage documentation and re-purpose
data over time. BI, data mining, OLAP….
Strategic PartneringMoving from tactical, cost-based sub-contracting to enduring, value –
added partnering.
AGILE FRAMEWORKS
• 18 months in business
• ~20 employees
• $1.5 revenue
• 5 clients
• Braun Intertec, Minneapolis, MN
• Froehling & Robertson – Richmond, VA
• Arias & Associates – San Antonio, TX
• Geotechnology Inc. – St. Louis, MO
• GFA International – Del Ray Beach, FL
© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D . #
CONCLUSION
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BEING DISTINCTIVE
REQUIRES COURAGE.
Being relevant
requires insight.
Being consistent
requires commitment.
MOBDEMO
• What: MetaField™ is a business application designed for Firms who conduct significant
quality assurance and testing operations associated with construction.
© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D . #
™ ®
MOBDEMO
• Why: firms who work in this line of business produce 10,000’s of transactions and
100,000’s of documents annually; traditionally, these transactions were conducted with
paper on clipboards.
• It improves the quality of deliverables by reducing errors through validation and the elimination of
hand-writing errors.
• Speeds cycle-time from field activities to client deliverables.
• Avoids labor costs – client experiences indicates that efficiency can improve between 10-40%
• Fast ROI - depending on a company’s volume of work, MetaField™ can provide a payback in as little
as 2 months
© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D . #
™
MOBDEMO
• Why: firms who work in this line of business produce 10,000’s of transactions and
100,000’s of documents annually; traditionally, these transactions were conducted with
paper on clipboards.
• It improves the quality of deliverables by reducing errors through validation and the elimination of
hand-writing errors.
• Speeds cycle-time from field activities to client deliverables.
• Avoids labor costs – client experiences indicates that efficiency can improve between 10-40%
• Fast ROI - depending on a company’s volume of work, MetaField™ can provide a payback in as little
as 2 months
© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D . #
™
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