PUBLIC SAFETY

Your Guide to Sales Success in the Public Safety Market

2

Table of Contents

3 SWOT analysis

5 Major trends in the public safety field

8 Market overview charts

9 Typical buying process

10 Personas

16 Sales enablement

19 Sales tools

3

SWOT Analysis

4

Market Overview | SWOT

Strengths

Improve the accuracy and quality of reports: As every officer knows, their reports

are key to enforcing the law. Because

Dragon makes the process of reporting

faster and easier, officers can spend

more time ensuring the quality and

thoroughness of their reports.

Improve the ability to serve and protect: By using Dragon to simplify the admin-

istrative work that comes with the job,

police officers can spend more time

patrolling and protecting the community.

They view paperwork as a necessary

evil and prefer to be doing the important

work of being on the street.

Fertile Market: Police departments actively seek and

buy technology.

Credibility: As a user of Dragon NaturallySpeaking,

the FBI is a cornerstone customer

reference.

Weaknesses

Low awareness: Most police officers have experienced

speech recognition but are unaware

of Dragon NaturallySpeaking and how

it can help them in their daily work

by speeding up the documentation

process.

Budgets: Police departments face increasing

budget pressure and might not be able

to invest as much as they would like

to in technology.

Opportunities

An untapped market: Dragon has limited penetration at

mid-sized and large public safety

organizations.

Desire for productivity: Police chiefs are under pressure to cut

budgets while decreasing crime rates

and are looking for ways to make the

current staff more productive.

Digital voice recorders: The option of using a digital voice

recorder in the field is appealing

to many officers.

Threats

Underlying technology: Many police departments rely on older

desktop systems and an investment in

Dragon may require an investment in

upgrading systems.

Resistance to change: Although they tend to be poor typists,

older officers have been shown to be

resistant to new technologies.

Privacy concerns: There is a professional emphasis on

confidentiality and sensitivity about

creating recordings, especially in an

open-office setting.

Record management systems: Police departments are rapidly adopting

record management systems that are not

all completely integrated with Dragon,

leading to usability concerns. Full Dragon

functionality may not be available to work

with applications that officers rely on

every day.

5

Market Overview | Major Trends in Public Safety

CULTURE

Our focus is on large public safety government organiza-

tions, including state police, sheriff departments and police

departments in mid-sized to large cities. Each type of

organization has slightly different responsibilities, but they

all share the same basic mission: to protect the citizenry

under their jurisdiction and to track down and arrest law

breakers. Public safety organizations are hierarchal and

have a command structure similar to the military. Police

officers have a strong sense of camaraderie that derives

from the shared experience of dealing with criminals. The

culture is predominantly working class and most are

members of a union.

KEY FACTS

On average, more than 65,000 law

enforcement officers are assaulted each year

and some 23,000 are injured annually.*

10% of sworn officers are women,

34% are minorities.

*National Law Enforcement Officers Memorial

QUOTE:

“We’re in the information business. It’s not just about the arrests, but also the infor-mation that you’ve gathered in the field. We’re writers. Although the arrests make the headlines, there’s volumes of paper-work behind it. It’s this kind of documenta-tion that we focus on every day.”

-Major from state police department

6

Market Overview | Major Trends in Public Safety

TECHNOLOGY

Technology has transformed the police business. Most police

cruisers are equipped with onboard computers. Record man-

agement systems (RMS) have been put in place in virtually all

police units, and officers are able to look up prior arrests, either

in the field or back in the office. Computer-aided dispatch (CAD),

geographic information systems (GIS) and e911 systems have

been implemented so that officers and emergency personnel can

quickly respond in criminal and emergency situations.

That said, the databases in most major public safety organiza-

tions are not integrated and it is difficult for officers and detec-

tives to search across databases. Lately, major initiatives are

focused on integrating all the systems so that information and

communication is seamless across departments, offices and

vehicles. IT personnel are constantly evaluating and research-

ing all types of technologies that can increase officer safety and

effectiveness.

Many police officers are using onboard computers to complete

their reports while on patrol. Some use digital voice recorders for

notes and for interviews.

KEY FACTS

In 2003, 83% of local police officers and 81% of sheriffs’ officers worked for an agency that

used in-field computers or terminals, compared

to 30% and 28% in 1990.*

31% percent of local police departments in

2003, and 34% of sheriffs’ offices, used

computers for interagency information sharing.*

*US Department of Justice, Bureau of Justice Statistics

QUOTE:

“I’m able to do the job essentially of two of three officers, because I’m not tied up doing paperwork at a police department.” Officer Gary Bonzo, Clearwater Police Department

-Major from state police department

Technology is quickly changing the face of public safety departments:

7

Market Overview | Major Trends in Social Services

WORKFLOW

Documenting a simple incident report (DUI or assault and bat-

tery, for instance) takes a minimum of an hour. Officers need

to write their reports immediately following an incident in order

to ensure the accuracy of the report. Many officers use digital

voice recorders for interviews but not for case notes in the field.

When a report takes 1.5 hours to type and a police officer

typically works an eight-hour shift, that officer is only doing “real

police work” for 6.5 hours. If there are two reports to file, half

the day can be eaten up with administrative tasks.

Detectives are tasked with creating multiple documents for the

cases on which they are working — notes, interviews and facts

all need to be recorded. Detectives responsible for long-term

investigations compile reports that can easily be 80 or 90 pages

long. Less time spent typing would ultimately result in more time

“working” the investigation.

A typical incident report can take up to 1.5 hours to complete.*

Police sergeants spend an average of 45% of their time on paperwork.

*Bluefish Primary Research Nov. 2008

KEY FACTS

QUOTE:

… I discovered that this exciting career came with a tremendous amount of PAPERWORK! Through the years I contin-ued to drown in the ocean of very detailed reports. Unlike those television Detectives, the true life Detectives must submit their investigations in report fashion. Dragon allowed me to dictate reports and finally begin to see the light at the end of the tun-nel.”

-Sergeant, local police department

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Market Overview | Charts

Over 1,000

500-999

250-499

100-249

1.5%

1%

.5%

.1%

NUANCE PENETRATION

396% Police

619% Corretions

474% Judicial

$100

1982 1993 2004

Billions

$80

$60

$40

$20

$0

Percent change1982-2005

Direct Expenditure by Criminal Justice Function

1982-2005

$100

1982 1993 2004

Billions

$80

$60

$40

$20

$0

Percent change1982-2005

State

Local

Judicial

Direct Expenditure by LevelOf Government

1982-2005

396%

510%

730%

$120

50

Per

cent

of S

wor

n O

ffice

rs

Over 1,000 500-999 250-499 100-249

0

79 Agencies

89 Agencies

217 Agencies714 Agencies

# of Sworn Officers

State and Local Law Enforcement Agencies

Police departments have significant budgets... ...led by local agencies and then states.

A small number of large agencies

represent most of the opportunity... ...and Nuance has significant upsides.

9

Market Overview | Typical Buying Process

Champions of the buy and individuals to target in sales and market-

ing efforts include: the police chief, deputy chief of administrative

services, the head of IT and the head of detectives.

As with other government agencies, strict procurement policies are

followed if a pilot requires funding. This typically requires competitive

bidding (if possible). After a successful pilot, the pilot team makes a

recommendation to both the police commissioner and deputy

commissioner of operations.

Spending caps vary from police department to police department.

Some departments are well funded (e.g. LA) and some struggle with

budget (e.g. Baltimore). It depends on the tax base for the area and

the percentage allocated toward police.

10

Prospect InsightsWhat is a Persona?

Personas help us give a “face” to our target customers. The

persona descriptions listed here represent a fictional depiction

of the typical prospect that we are targeting with our sales and

marketing activity. These characters are based upon extensive

interviews with actual prospects and customers and attempt to

bring some of the key aspects of the target to life. The actual

prospects will vary in their attitudes and demographics but most

will share some aspects of the descriptions that follow.

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Prospect Insights | Summary of Prospects

Large Public Safety Organization/Deputy Chief of Administrative Services

Most law enforcement organizations are split into two main groups:

operations and administration. The operations group oversees patrol-

men and detectives. Administration oversees the staff that supports

the police, including HR, IT and facilities.

The deputy chief of this organization is a very powerful job. The per-

son in this position typically oversees multi-million dollar budgets and

is increasingly tasked with implementing large-scale technology proj-

ects. This person has generally worked his way up the force and is

very adept at the politics and inner workings of the police department.

Why Dragon?

Because Dragon makes the process of reporting faster and easier, of-

ficers can spend more time ensuring the quality and thoroughness of

their reports and simplify the administrative work that comes with the

job. By enabling officers to spend more time on the street or working

an investigation, the force can provide better service and protection to

the community without having to increase headcount.

Large Public Safety Organization/Director of Technology

The technology group is made up of civilian technology experts. Some

of the more progressive departments, like the NYPD, have staffed a

CIO to oversee the massive technology budgets and projects.

The director has an extremely challenging job. Systems tend to be

antiquated. Basic items like redundancy and disaster planning are

not in place. It is common these days to direct efforts to change

police cruisers to mobile technology centers. These types of projects

are appreciated by the force for their impact on crime reduction and

officer safety. More criminals can be taken off the street when cops

are armed with better information.

Why Dragon?

Dragon will make a difference in how cops do their job. By quickly

and accurately transforming speech to text, documents and reports

are created up to three times faster than typing. Dragon works

seamlessly with all Microsoft Office products and can integrate with

custom applications. Dragon’s engineers have designed the product

so that it is simple to deploy, install and maintain. Training is avail-

able for all end-users.

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Prospect Insights | Personas

Deputy Chief of Administrative Services/Jack Kowalski

OVERVIEW

Jack is a 25-year veteran of the Chicago Police

force. Jack grew up in the “Polish Triangle”

neighborhood along Milwaukee Ave and is a

third-generation cop. He owns a house on a lake

up north and loves to escape there on the week-

ends to hunt and fish. His children are grown and

are out of the house. He’s especially proud of his

daughter, a pediatrician in Boston who is married

with two young kids. Jack and his wife travel to

Boston every Thanksgiving where he laughs when

his grandson wants to play cops and robbers.

Jack began his career as a patrolman in the

mid-70s and moved his way up to lieutenant in

just eight years. Jack is not only a good cop

but also has the uncanny ability to politic with

the right people. While on duty, Jack obtained

his masters degree in criminal justice. Jack

served as lieutenant in five districts and built

a track record of improving the crime stats in

each district. The cops who served under Jack

knew him as a “hard ass” but respected him as

a great cop, recognizing that he was destined

to end up at headquarters. Jack took the job

as deputy chief of administrative services four

years ago and spends much of his day making

sure that all the support services for the depart-

ment run smoothly.

Both the mayor and chief believe technology is

critical to ensuring the safety of the police force,

in addition to making it more productive and

effective in its work. The department hired a tech-

nology whiz a few years back and Jack thinks the

kid is doing some interesting things — cameras

that have been installed citywide, for instance,

have lowered crime in abandoned parks and run-

down sections of town, so that now fewer officers

are required to patrol there. Jack gets an update

from him every two weeks. Jack Kowalski, Deputy Chief of

Administrative Services

13

Prospect Insights | Personas

Role in purchase decisions

Jack is responsible for all support services for the department.

He works with the budget office for financing projects. Both the

chief and mayor need to approve major purchases. Jack manag-

es a budget of $500 million but much of that goes to equipment

and buildings, including patrol cars, guns and a new evidence

warehouse. IT spending for things such as the upgrade of dis-

patch servers and the installation of a new record management

system accounts for about 4% of the operating budget.

Attitude towards technology

Jack cares about technology because he knows it can make his

patrolmen and detectives more effective. He attends the IACP

conference every year and gets ideas of what other major public

safety organizations are doing and the technology decisions they

are making. Jack subscribes to Law Enforcement Technology

magazine and reads some of the articles. Although Jack is re-

sponsible for the technology of the department, he relies heavily

on the IT kid’s input.

Attitude towards Dragon NaturallySpeaking

Jack has never heard of Dragon but is aware of voice

recognition technology because the department’s call

center uses voice recognition to better route calls.

Jack Kowalski, Deputy Chief of

Administrative Services

14

Prospect Insights | Personas

Director of Enterprise Technology/Richard Carpani

OVERVIEW

Richard joined the Chicago Police department two years ago

after working in the telecommunications industry for 20 years.

Richard is not a sworn officer but part of the civilian workforce.

Richard spent his entire career managing large infrastructure

projects — in fact, that’s what interested him in joining the Chi-

cago Police Department. A friend of his knows the mayor and

suggested Richard when the mayor was looking for someone to

dramatically improve the technology for the police department.

Richard lives in the suburbs and has two kids from his first

marriage that he spends time with each weekend. Richard is

currently dating a 32-year-old female patrol officer. Richard is

both frustrated and excited by his work. He knows he’s making a

huge difference and that the technology he implements is literally

saving lives. He gets satisfaction from that but also struggles

with how slow the department moves when it comes to adopting

technology.

Richard Carpani, Director of

Enterprise Technology

15

Prospect Insights | Personas

Job summary

Richard is responsible for maintaining the entire technology

infrastructure for the Chicago Police Department. This includes

the phone systems at the 911 center, the servers and desktop

systems at each precinct office and the numerous databases. He

has a decent sized staff (but they are still several people short),

which is kept busy making sure things keep working.

Richard spearheads several cutting-edge projects. One that he’s

most proud of is the Community Monitoring System Project that

includes both video cameras placed across the city as well as

specialized software that uses facial recognition. Richard works

with several vendors and relies on a consulting firm to advise him

on the new technologies that are making a difference.

Attitude towards technology

Richard’s entire career has been in the technology field. He’s not

a programmer but he does understand both software and hard-

ware and how to best use them to deliver results. Richard main-

tains a complicated Excel spreadsheet to track all the projects

for the department. He is extremely adept at showing leadership

how key milestones will be met and how a project will enable the

vision of the mayor and police chief.

Attitude towards Dragon NaturallySpeaking

One of Richards’s projects at his old job was to oversee the

installation of a new IVR at the company call center. He chose

Nuance for both business consulting and then for the software.

Richard knows that Nuance makes Dragon but thinks of it as

strictly a consumer product, not something for business.

Richard Carpani, Director of

Enterprise Technology

16

Sales Enablement

17

Sales Enablement | Pain Points and Key Selling Messages

Pain Points

• Dragon delivers a faster, easier way to complete

documentation. By creating documents electronically

as you speak, Dragon can reduce the time spent on

paperwork by more than 50%. This is particularly

useful for detectives responsible for creating lengthy

reports.

• Leaders of public safety organizations are under

pressure to cut costs while reducing crime rates.

• Incomplete, inaccurate or late reports can affect the

ability to prosecute criminals. Officers will capture

more details in each report.

Key Selling Messages

• By creating documents electronically as you speak, Dragon

can reduce the time spent on creating documents by up to

50%.

• Dragon can make a police force more effective by decreas-

ing the amount of time typing up paperwork and reports that

otherwise take them away from their patrols.

• Dragon will increase the accuracy and thoroughness of re-

ports. Because documentation can be completed by voice,

it can be done in the police cruiser as well as back at the

station.

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Sales Enablement | Key Selling Messages

Key objections and concerns — and how to overcome them

“We don’t have the budget for this type of technology.”You hired police officers, not typists. Yet your officers and

detectives are drowning in paperwork. Resource-constrained

departments need an affordable solution that gives your officers

more time in the field – saving you overtime costs and the costs

of hiring additional officers.

“I’m not really sure how Dragon Professional offers

any features that will help out my department.”Police sergeants spend an average of 45% of their time on

paperwork. Dictating information is three times faster than

entering information by hand. With Dragon Professional,

custom voice commands can be used to automate the

completion of incident reports.

“We have very unique software and processes.

I’m not sure Dragon can work with our systems.

Will it work in the field?”Dragon works the way your department works and can “speech-

enable” nearly any Windows-based application. Dragon enables

users to perform the same tasks they always have – only faster.

Virtually any menu item or dialog box can be controlled by voice.

Users can edit and format their work, launch applications and

open files, or cut-and-paste documents. In other words, speech

recognition helps to speed up routine tasks on the PC. Many

applications can be easier to use and more effective when

deployed in conjunction with speech recognition. Searches,

queries, and form filling are all faster to perform by voice than

keyboarding. Document management, document assembly/

automation, and database software programs are all highly

conducive to control by speech.

Noise-cancelling headsets block out the background noise so

that Dragon can be effectively used in vehicles with a Bluetooth

headset. Detectives can capture notes in the field with a digital

voice recorder while the material is still fresh in their minds.

“We use very specific terminology. How it will it know

those terms?”Every police force has unique terms and acronyms that may

not be in the standard 300,000 Dragon vocabulary. With the

Professional version, we can add those words one time and

share the vocabulary across all users in the agency. Proper

names can be spelled out individually if they’re not already in

the Dragon vocabulary.

19

Sales Enablement | Sales Tools

The following items will soon be at your disposal to help you

obtain large license deals:

• Industry-specific slides

• BTA list development

• ROI calculator

• Case studies

• White papers

• Day in the life video

• Demo scripts

• Key contacts

• Pilot programs

• Webinars

As of December 2008, these items are in development and are

slated for unveiling in the first half of 2009.