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Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group Lior Elazary, CEO, InVia Robotics

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Page 1: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

Disruptive Technology: Using Robots as a

ServiceMike Oitzman, CEO/Founder, Market Spec Group

Lior Elazary, CEO, InVia Robotics

Page 2: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

ROBOTICS MARKET VIEW

Strategy

Budget

Manage Robotic Workforce

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

CUSTOMER

Page 3: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 4: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

MARKET VIEW

AUTOMATION VENDORCUSTOMER

Strategy

Budget

Manage Robotic Workforce

Innovate / Competitive

Support

???????? Sales Funnel

Manage Cash Flow

Page 5: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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”

Page 6: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

VendorCustomerCapital Asset

Sales Cycle

Budgets

Service/Support

IntegrationInstallation

Depreciation

Capital

Expense

Approvals

ROI

Page 7: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

VendorCustomerOperating Expense

Sales Cycle

Service/Support

Integration

Installation

Operating

Expense

Immediate ROI

Page 8: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 9: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 10: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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”

Page 11: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

RAAS COMPANY PROFILE

Page 12: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 13: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

Demand is Up, Supply is Shrinking, Wages Are Rising

Page 14: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

Warehouse Industry is Drastically Lagging Other Industries

Page 15: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

Why Not Robots in the Warehouse?

Page 16: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

But Now… Inflection Point is Here

Page 17: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

Sign Me Up!

Page 18: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

What’s the Catch? CAPEX

VendorCustomerCapital Asset

Sales Cycle

Budgets

Service/Support

IntegrationInstallation

Depreciation

Capital

Expense

Approvals

ROI

Page 19: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

What’s the Catch? Technological Revolution

Page 20: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

What’s the Catch? Becoming a Robotics Company

Page 21: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 22: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 23: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 24: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

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

Page 25: Disruptive Technology: Using Robots as a Service Disruptive Technology: Using Robots as a Service Mike Oitzman, CEO/Founder, Market Spec Group ... Strategy Budget Manage Robotic Workforce

Questions?

Mike OitzmanCEO/Founder

The Market Spec Group

Telephone: 1 (415) 828-9382

Email:[email protected]

www.market-spec.com

Lior ElazaryCEO/Founder

InVia Robotics

Telephone: 1 (855) 424-6842

Email:[email protected]

www.inviarobotics.com