Frost & Sullivan GPS And Wireless Analyst Briefing


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Frost & Sullivan’s analyst briefing on the GPS and wireless market.

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Frost & Sullivan GPS And Wireless Analyst Briefing

  1. 1. Amateur Hour is Over -- Using GPS and Wireless to Manage Field Service Workers -- Jeanine Sterling, Senior Industry Analyst Mobile and Wireless September 17, 2008
  2. 2. Focus Points • Next-Gen MRM: Changing the Business Model • MRM Evolution: Stage III • Evolving Trends and Issues • Market Consolidation Scenarios • Stakeholder Challenges: Preparing for the Shake-Out 2
  3. 3. Typical Field Scenario: Minimal Visibility • Management team is working in the dark – no/low visibility into field employee activity • Worker tethered by periodic cell phone calls or text messaging • Self-reporting on location, breaks, etc. 3
  4. 4. MRM’s Changing Business Model Mobile Resource Management Business solutions that use wireless and location technologies to maximize the productivity of mobile workforces – by more effectively locating, tracking, and managing mobile workers, mobile tasks, and mobile assets TRADITIONAL NEXT-GENERATION • Truck tracking • Focus on individual • In-vehicle, hard-mounted worker and task devices • GPS-enabled mobile • Satellite tracking handhelds • Dedicated servers • Web-based tracking • Per-seat licensing systems • High upfront investment • Hosted, per-user per- month pricing • Lower entry cost 4
  5. 5. Today’s MRM Next-Gen MRM Capabilities • Worker track, locate, monitor • Geo-fencing and exception alerts • Mapping and navigation Reduced operating costs • Messaging Increased productivity • Workforce management (time cards) • Scheduling, dispatch, and event Enhanced relationship confirmation with customers • Data collection (signature/image capture, barcode scanning, wireless forms) • Back-office data integration • Work order status 5
  6. 6. MRM Evolution: Growing Traction Evolution of North American Location-Aware Services (U.S.), 2002-2010+ Stage I Stage II Stage III Stage IV Pre-2006 2006-08 2008-10 2010+ E911 Priority Leverage E911 Growing Traction Platforms Replace Investments “Silo” Apps Long Term Increased Location Technology Planning More Aggressive Accuracy End-to-End Offerings Marketing of Trial of Early Adopters Shakeout of Weakest Sophisticated, Commercial Services Competitors Integrated Entry of Competitors Handsets Gain Critical Deployments Competitive Few Commercially Mass with A-GPS Advantage Drives Mobile Advertising + Deployed Location- Enterprise and Enterprise Adoption Location based Services Consumer Enterprise and Location Enterprise Applications (CDMA) Consumer Interoperability Applications (iDEN) Applications (GSM) between Networks Location-based Customer Adoption Over Time Location- Source: Frost & Sullivan 6
  7. 7. Current MRM Ecosystem – Still at Early Adoption TeleNav MRM Adoption Lifecycle Actsoft Agilis Systems Trimble Corrigo Vettro Gearworks Xora Application Developers AirClic ADP Dexterra Intuit MRM Sybase Platform ISVs Oracle Syclo Vendors Market Market Market Development Maturity Decline Vaultus MRM Motorola AT&T Nokia Device Wireless Sprint RIM Mfrs Verizon Wireless Carriers Sony Ericsson Alltel Systems Integrators Regional Accenture Systems CapGemini Integrators CSC 7
  8. 8. Market Drivers (2008 - 2013) • High, hard-dollar ROI • More affordable hardware, software, network services • Supports Wireless Carrier focus on long- term value creation • Major ISVs see value in mobilizing their traditional business software • A major avenue for carriers to recoup E911 investment 8
  9. 9. Market Restraints (2008 – 2013) • Limited customer awareness • Wireless carriers’ ability to sell MRM is uneven • Challenges with back-office integration • Limited GSM device options • High TCO – Hardware and integration expense can be prohibitive 9
  10. 10. Steadily Expanding Sales Location-based MRM Revenue and Subscriber Forecasts (U.S.), 2006 - 2013 $1,800.0 12 $1,600.0 10 $1,400.0 $1,200.0 8 Million $1,000.0 6 $800.0 $600.0 4 $400.0 2 $200.0 $- 0 2006 2007 2008 2009 2010 2011 2012 2013 Business LBS Revenues $92.04 $154.06 $235.15 $378.00 $593.36 $921.00 $1,299.78 $1,696.32 Business LBS Subs 0.59 0.98 1.54 2.50 3.94 6.14 8.70 11.40 Business LBS Revenues Business LBS Subs Source: Frost & Sullivan 10
  11. 11. Application Trends • More robust capabilities, as handsets become more powerful and user-friendly • SaaS approach vs. per-seat licensing • Must have: Integration and customization capability • 24/7 support + SLAs • Increased assistance with managing “data spigot” • Intensifying focus on verticals • Standardization of Packaging/Pricing 11
  12. 12. Increasing Offer Standardization Good-Better-Best Packaging Top-Tier Package ~$20/user/month Richer dispatch Mid-Tier Package Richer integration options Event confirmation/notification ~$15/user/month Audible navigation Timecard reporting Timecard reporting Text messaging Text messaging Mileage tracking Mileage tracking Basic dispatch/scheduling Basic dispatch/scheduling Data capture Data capture Work order status Work order status Basic back-office integration Basic back-office integration Entry-Level Wireless forms Wireless forms ~$10/user/month Text navigation Text navigation GPS location tracking GPS location tracking GPS location tracking Mapping Mapping Mapping Geo-fencing Geo-fencing Geo-fencing Exception alerts Exception alerts Exception alerts Standard reports Standard reports Standard reports 12
  13. 13. Ongoing Issues • Partnering up – Picking the winners • Channels: Level of dependence on wireless carriers • Refining location determination accuracy • Brand loyalty – Is there any? • Identifying enterprise decision-maker • Vertical solutions/messaging • Platform vs. point • Enhancing end-user experience • Choosing a target: Large Enterprise or SMB? • Breaking out of the pack 13
  14. 14. Future Industry Consolidation: A Possible Template Mobile Business Application: Mobile Office Email/PIM Large Enterprise Play Hosted SMB-Carrier Play Market Leader Remains Autonomous Intellisync Acquired by: NOKIA Remains Good Technology Acquired by Autonomous SMB = <1,000 Employees Large Enterprise = 1,000+ Employees (Medium, Small, SOHO) 14
  15. 15. Future Industry Consolidation: The Navigation Angle • The Navigation piece is critical to MRM success. • A Possible Merger/Acquisition: MRM + Navigation Partner Navigation + + capability is in-house OR 15
  16. 16. Going Forward: Key Stakeholder Challenges .Breaking out of the pack .Building portfolio with unique value-add .Creating partnerships .Improving internal sales capability Wireless .Implementing optimal position determination technologies .Resolving marketing/ positioning issues Carriers Application Developers .Promoting platform over point .Prioritizing sales opportunities .Reaching the enterprise purchase decision-maker .Establishing Systems Integrator relationships Device Platform/MW Manufacturers Vendors MRM .Monitoring customer needs .Improving MRM user experience .Becoming familiar with carrier business model .Making “create or partner” decision .Teaming with best-in-class application/platform vendors Systems Integrators ISVs .Determining how to monetize MRM .Structuring internally to address client needs .Predicting application winners 16
  17. 17. Stage III Takeaways • Current handset-based MRM market is very under-penetrated and very fragmented. • Market drivers include: An attractive hard-dollar ROI; Affordable entry level pricing; Improved ARPU and stickiness for carriers. • Key challenges to widespread adoption include: Lack of customer awareness; Wireless carriers’ ability to sell more sophisticated applications; Limited GSM device options. • Upcoming 18-24 months promise to be a period of continued transition as: • Wireless carriers delve further into the MRM sector • Application developers and middleware vendors fight to increase share • ISVs and Systems Integrators – under pressure to jump in and partner up – determine how best to approach this newest mobilization opportunity 17
  18. 18. Your Feedback is Important to Us What would you like to see from Frost & Sullivan? Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by taking our survey. 18
  19. 19. For Additional Information • To leave a comment, ask the analyst a question, or receive the free audio segment that accompanies this presentation, please contact Stephanie Ochoa, Social Media Manager at (210) 247- 2421, via email,, or on Twitter at 19