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Managed Services:
RFID’s Newest B i
RFID’ N       Business M d l?
                       Model?

Webcast Presentation – September 23, 2009
What Are Managed Services?




                       "The practice of transferring day-to-day related management
                       responsibility as a strategic method for improved, effective and efficient
                                ibilit       t t i     th d f i          d ff ti       d ffi i t
                       operations. The person or organization who owns or has direct oversight
                       of the organization or system being managed is referred to as the
                       offerer, client or customer. The person or organization that accepts and
                       provides th managed service i regarded as th service provider.
                            id the             d    i is       d d     the     i        id
                       Typically, the offerer remains accountable for the functionality and
                       performance of managed service and does not relinquish the overall
                       management responsibility of the organization or system."

                                                                                      -Wikipedia




1 – VDC Research Group, Inc.
What Are Managed Services For RFID?

                               SaaS
                               • Device/ equipment management
                               • Line-of-business applications
                               • Database/ data management




                  Leasing/                                       Outsourcing
                 Financing                                        Services




                               Hybrid Deployments
                               • Software
                               • Bundled hardware
                               • Transponders

2 – VDC Research Group, Inc.
Managed Services as an
                          Information Delivery Model
                          Asif Ghias, Director
                               Ghias
                          Solutions and Innovation
                          Savi Group, a Lockheed Martin Company


                                            VDC Research Webinar


                                                 Sept. 23, 2009

More Than Just Visibility. Savi
Savi Overview
    Market Leadership
•   Complete AIDC supply chain information solutions
    and intelligence services
        –   Global Visibility, Security, Management and
            Optimization
        –   Asset, Shipment, Inventory and Distribution
        –   Largest RFID Network (35,000 conveyances daily,
            +4,000 locations)
        –   Collaborative Network for NATO and Allies
        –   HPH Joint Venture Intermodal Intelligence Service
            with GPS/GPRS Coverage in +180 countries
        –   Backed by Global Technology/Security Leader –
            Lockheed Martin

•   Prime contractor for USTRANSCOM/DLA Info
    Platform (IGC)
        –   Converge and futurize supply and distribution info
            systems
        –   Systems Integration, IT Architecture and Process
            Improvement




    4       Copyright © 2008 Savi Technology
Savi Vision
Automated, Actionable Knowledge

    “Internet of Things” to Connect People with Objects
           Everything Will be Wirelessly Tracked in 10 Years
           Convergence of Wireless Data Technologies
           Collaborative Networks of  Sensors, Bar Codes, 
           Passive/Active RFID, GPS, SatCom, Cellular
           Passive/Active RFID, GPS, SatCom, Cellular


    Single Version of the Truth
            Integrated Complete Solutions, Services and Apps
             Information Automation to Enhance the Environment
             Smarter Supply Chains, Energy,  Healthcare, Industrial,   
            Construction and Home Uses

    Dynamic Execution, Management and Optimization
    Dynamic Execution Management and Optimization
            Real‐
            Real‐Time Data Turns into Knowledge into Action
            Optimized Process Visibility, Control and Efficiency
            Optimized Process Visibility, Control and Efficiency
            Enhanced environment and quality of life



5     Copyright © 2008 Savi Technology
Value Delivery Models

                                                            OUTCOMES
                                                      Performance Based Logistics
                                                       Service Level Agreements



                                          MANAGED SERVICES
                                             Transaction Pricing
                                            Subscription Services



                                       SOLUTIONS
                       Turnkey Solutions, Customer Owned
                             y          ,



                    PRODUCTS
    Certified Asset Tracking Hardware, Supply
         Chain Management Applications




    Turn Data Into K
    T    D t I t Knowledge, A d K
                     l d    And Knowledge I t A ti
                                    l d Into Action
6   Copyright © 2008 Savi Technology
The Business Case for Managed Services

 Problems with Large Legacy Enterprise Systems
  • CapEx investment
  • Ri k shouldered b th customer
    Risk h ld d by the         t
  • Costly infrastructure, integration, and support fees
  • ROI has plateau-ed
  • Huge stovepiped, IT Investments – diminishing returns
  • Time-consuming implementations outdated and inaccurate
    Time consuming implementations,
    information
 Advantages of Managed Services
  • OpEx investment
  • Ri k and i f
    Risk d infrastructure transferred to service provider
                                 f    d         i      id
  • Variety of service cost models e.g. pay-by-the-drink, subscription or
    hybrid
  • Support and upgrades generally included in the service cost with no
    “surprise” fees
        p
  • Maintenance performed remotely with no in-house disruptions
  • Easy, web-based access with no extra client software
  • SOA architecture enriches and tailors service with best-of-breed
    solutions with right information at the right time
  • RFID and other AIDC enablers bring “ground truth” -- accurate real
                                                          accurate, real-
    time information

 7    Copyright © 2008 Savi Technology
Sampling of Savi Group Customers…

    U.S. Public Sector                       International                       Commercial




                                                                       Denmark

                                                                                       + 30 Major
                                                 Australia
                                                                                          U.S.
                                                                                         Defense
                                                                                        Suppliers
                                                                       Sweden


                                                 Spain




                                                                  Poland
                                        United Kingdom




                                                         Canada




8    Copyright © 2008 Savi Technology
GlobeRanger Overview
GlobeRanger – A Snapshot


• Vision - Automated data collection technologies (bar codes RFID
                                                       codes, RFID,
    sensors, location technologies) have created a new frontier for
    information technology – the Enterprise Edge. There is economic and
    competitive advantage to be g
         p               g       gained from harnessing the Edge.
                                                      g         g
•   Founded in 1999; privately held
•   Leading iMotion software platform and solutions in the RFID industry
•   Primarily focused on Government & Aerospace
•   De facto passive RFID standard for U.S. Dept. of Defense
•   Foundation of some of the largest RFID deployments around the world
•   Single-source capability and top tier partnerships



                                       10                GlobeRanger Confidential
Solution Focus
   Automating Supply Chain Logistics
             g   pp y        g

The U.S. alone spent $1.3 trillion on SC logistics in 2008 CSCMP’s 20th Annual State of Logistics Report

                                              Transportation




       Supplier   Carrier/3PL     Stock    Manufacturing
                                                       g      Stock   Carrier/3PL Distribution


            Inbound                         Enterprise                         Outbound

                   Shipping/Receiving
                   Yard Management
                   WIP Tracking/JIT Mfg.                These operations can be made faster,
                   Inventory Management                 more accurate, and more efficient with
                   Tool Tracking                        RFID technology.
                                                              technology
                   Warehouse Operations
                   Asset Tracking
                                                    11                     GlobeRanger Confidential
GlobeRanger Provides a Unified Foundation

                                        Corporate        Finance

                                  Logistics       Operations      Manufacturing                        HQ
            OMS                                                                            Branch
ERP
      WMS
                                                                                                             Branch



                                 Business                                     Visibility
                                  Rules


                                                                                           Custom
            GR-AWARE
            GR AWARE                  GR-LIVE
                                      GR LIVE                  GR-MAKE
                                                               GR MAKE                     Solutions
         Asset Tracking               Logistics            Manufacturing

        Solution Accelerator 1              Solution Accelerator 2                Solution Accelerator 3

        Components
        C       t           Components
                            C       t                Components
                                                     C       t             Components
                                                                           C       t            Components
                                                                                                C       t

                                                        iMotion




                     Vendor X          Vendor Y            GPS              Passive        Active
                                                          12
GlobeRanger – A Snapshot


• Vision - Automated data collection technologies (bar codes RFID
                                                       codes, RFID,
    sensors, location technologies) have created a new frontier for
    information technology – the Enterprise Edge. There is economic and
    competitive advantage to be g
         p               g       gained from harnessing the Edge.
                                                      g         g
•   Founded in 1999; privately held
•   Leading iMotion software platform and solutions in the RFID industry
•   Primarily focused on Government & Aerospace
•   De facto passive RFID standard for U.S. Dept. of Defense
•   Foundation of some of the largest RFID deployments around the world
•   Single-source capability and top tier partnerships



                                       13                GlobeRanger Confidential
Solution Focus
   Automating Supply Chain Logistics
             g   pp y        g

The U.S. alone spent $1.3 trillion on SC logistics in 2008 CSCMP’s 20th Annual State of Logistics Report

                                              Transportation




       Supplier   Carrier/3PL     Stock    Manufacturing
                                                       g      Stock   Carrier/3PL Distribution


            Inbound                         Enterprise                         Outbound

                   Shipping/Receiving
                   Yard Management
                   WIP Tracking/JIT Mfg.                These operations can be made faster,
                   Inventory Management                 more accurate, and more efficient with
                   Tool Tracking                        RFID technology.
                                                              technology
                   Warehouse Operations
                   Asset Tracking
                                                    14                     GlobeRanger Confidential
GlobeRanger Provides a Unified Foundation

                                        Corporate        Finance

                                  Logistics       Operations      Manufacturing                        HQ
            OMS                                                                            Branch
ERP
      WMS
                                                                                                             Branch



                                 Business                                     Visibility
                                  Rules


                                                                                           Custom
            GR-AWARE
            GR AWARE                  GR-LIVE
                                      GR LIVE                  GR-MAKE
                                                               GR MAKE                     Solutions
         Asset Tracking               Logistics            Manufacturing

        Solution Accelerator 1              Solution Accelerator 2                Solution Accelerator 3

        Components
        C       t           Components
                            C       t                Components
                                                     C       t             Components
                                                                           C       t            Components
                                                                                                C       t

                                                        iMotion




                     Vendor X          Vendor Y            GPS              Passive        Active
                                                          15
The RFID Solution Factory

           September 2009


                      1616
RFID is all we do

    Benchmarking

                      Engineering
  Support




Deployment            Planning
                             g


             Design

                                    1717
250+   paid RFID   Projects




                              1818
Pre-Packaged   Solutions




                           1919
Hosted or Installed
► Application
            Features
► Edge Device Control
► Remote Monitoring




                        2020
What is your experience with, and perspective on, Managed
     Services, or hosted deployment methods for RFID solutions?




21 – VDC Research Group, Inc.
What are the primary benefits and barriers to adoption for
      MS/hosted deployment models in RFID as your recent market
                       experience informs you?
                         p                 y




22 – VDC Research Group, Inc.
Are these drivers/ barriers persistent? Transient? How do you
   see the MS/ hosted opportunities/ requirements evolving during
                        the next 6-12 months?




23 – VDC Research Group, Inc.
What regions, markets, and/or applications do you perceive
               pioneering this business model? Why?




24 – VDC Research Group, Inc.
RFID Managed Services: Research Objectives

•   Global geographic coverage
•   Enterprise-user analysis
•   RFID supplier, managed services partner, channel analysis
•   RFID solution provider capabilities and position analysis
•   Definition of managed services offerings for RFID solutions and
    analysis of currently available offerings.



                      Study Publication Date   Founding Sponsorship Period

                                Dec 2009        Through September 30, 2009




25 – VDC Research Group, Inc.
Q&A Session


                      Thank You for Attending this VDC Webcast

  For more information about VDC Research’s coverage of the global
  markets for RFID technologies – including the Managed Services – RFID
  Solutions: 2009 Market Requirements and Opportunity Analysis – please
  contact:

  Drew Nathanson
  AutoID & Transaction Automation Practice

  email: andrewn@vdcresearch.com
  phone: 508-653-9000 ext. 148
  web: http://www.vdcresearch.com
            //




26 – VDC Research Group, Inc.

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Managed Services: RFID's Newest Business Model?

  • 1. Managed Services: RFID’s Newest B i RFID’ N Business M d l? Model? Webcast Presentation – September 23, 2009
  • 2. What Are Managed Services? "The practice of transferring day-to-day related management responsibility as a strategic method for improved, effective and efficient ibilit t t i th d f i d ff ti d ffi i t operations. The person or organization who owns or has direct oversight of the organization or system being managed is referred to as the offerer, client or customer. The person or organization that accepts and provides th managed service i regarded as th service provider. id the d i is d d the i id Typically, the offerer remains accountable for the functionality and performance of managed service and does not relinquish the overall management responsibility of the organization or system." -Wikipedia 1 – VDC Research Group, Inc.
  • 3. What Are Managed Services For RFID? SaaS • Device/ equipment management • Line-of-business applications • Database/ data management Leasing/ Outsourcing Financing Services Hybrid Deployments • Software • Bundled hardware • Transponders 2 – VDC Research Group, Inc.
  • 4. Managed Services as an Information Delivery Model Asif Ghias, Director Ghias Solutions and Innovation Savi Group, a Lockheed Martin Company VDC Research Webinar Sept. 23, 2009 More Than Just Visibility. Savi
  • 5. Savi Overview Market Leadership • Complete AIDC supply chain information solutions and intelligence services – Global Visibility, Security, Management and Optimization – Asset, Shipment, Inventory and Distribution – Largest RFID Network (35,000 conveyances daily, +4,000 locations) – Collaborative Network for NATO and Allies – HPH Joint Venture Intermodal Intelligence Service with GPS/GPRS Coverage in +180 countries – Backed by Global Technology/Security Leader – Lockheed Martin • Prime contractor for USTRANSCOM/DLA Info Platform (IGC) – Converge and futurize supply and distribution info systems – Systems Integration, IT Architecture and Process Improvement 4 Copyright © 2008 Savi Technology
  • 6. Savi Vision Automated, Actionable Knowledge “Internet of Things” to Connect People with Objects Everything Will be Wirelessly Tracked in 10 Years Convergence of Wireless Data Technologies Collaborative Networks of  Sensors, Bar Codes,  Passive/Active RFID, GPS, SatCom, Cellular Passive/Active RFID, GPS, SatCom, Cellular Single Version of the Truth Integrated Complete Solutions, Services and Apps Information Automation to Enhance the Environment Smarter Supply Chains, Energy,  Healthcare, Industrial,    Construction and Home Uses Dynamic Execution, Management and Optimization Dynamic Execution Management and Optimization Real‐ Real‐Time Data Turns into Knowledge into Action Optimized Process Visibility, Control and Efficiency Optimized Process Visibility, Control and Efficiency Enhanced environment and quality of life 5 Copyright © 2008 Savi Technology
  • 7. Value Delivery Models OUTCOMES Performance Based Logistics Service Level Agreements MANAGED SERVICES Transaction Pricing Subscription Services SOLUTIONS Turnkey Solutions, Customer Owned y , PRODUCTS Certified Asset Tracking Hardware, Supply Chain Management Applications Turn Data Into K T D t I t Knowledge, A d K l d And Knowledge I t A ti l d Into Action 6 Copyright © 2008 Savi Technology
  • 8. The Business Case for Managed Services Problems with Large Legacy Enterprise Systems • CapEx investment • Ri k shouldered b th customer Risk h ld d by the t • Costly infrastructure, integration, and support fees • ROI has plateau-ed • Huge stovepiped, IT Investments – diminishing returns • Time-consuming implementations outdated and inaccurate Time consuming implementations, information Advantages of Managed Services • OpEx investment • Ri k and i f Risk d infrastructure transferred to service provider f d i id • Variety of service cost models e.g. pay-by-the-drink, subscription or hybrid • Support and upgrades generally included in the service cost with no “surprise” fees p • Maintenance performed remotely with no in-house disruptions • Easy, web-based access with no extra client software • SOA architecture enriches and tailors service with best-of-breed solutions with right information at the right time • RFID and other AIDC enablers bring “ground truth” -- accurate real accurate, real- time information 7 Copyright © 2008 Savi Technology
  • 9. Sampling of Savi Group Customers… U.S. Public Sector International Commercial Denmark + 30 Major Australia U.S. Defense Suppliers Sweden Spain Poland United Kingdom Canada 8 Copyright © 2008 Savi Technology
  • 11. GlobeRanger – A Snapshot • Vision - Automated data collection technologies (bar codes RFID codes, RFID, sensors, location technologies) have created a new frontier for information technology – the Enterprise Edge. There is economic and competitive advantage to be g p g gained from harnessing the Edge. g g • Founded in 1999; privately held • Leading iMotion software platform and solutions in the RFID industry • Primarily focused on Government & Aerospace • De facto passive RFID standard for U.S. Dept. of Defense • Foundation of some of the largest RFID deployments around the world • Single-source capability and top tier partnerships 10 GlobeRanger Confidential
  • 12. Solution Focus Automating Supply Chain Logistics g pp y g The U.S. alone spent $1.3 trillion on SC logistics in 2008 CSCMP’s 20th Annual State of Logistics Report Transportation Supplier Carrier/3PL Stock Manufacturing g Stock Carrier/3PL Distribution Inbound Enterprise Outbound  Shipping/Receiving  Yard Management  WIP Tracking/JIT Mfg. These operations can be made faster,  Inventory Management more accurate, and more efficient with  Tool Tracking RFID technology. technology  Warehouse Operations  Asset Tracking 11 GlobeRanger Confidential
  • 13. GlobeRanger Provides a Unified Foundation Corporate Finance Logistics Operations Manufacturing HQ OMS Branch ERP WMS Branch Business Visibility Rules Custom GR-AWARE GR AWARE GR-LIVE GR LIVE GR-MAKE GR MAKE Solutions Asset Tracking Logistics Manufacturing Solution Accelerator 1 Solution Accelerator 2 Solution Accelerator 3 Components C t Components C t Components C t Components C t Components C t iMotion Vendor X Vendor Y GPS Passive Active 12
  • 14. GlobeRanger – A Snapshot • Vision - Automated data collection technologies (bar codes RFID codes, RFID, sensors, location technologies) have created a new frontier for information technology – the Enterprise Edge. There is economic and competitive advantage to be g p g gained from harnessing the Edge. g g • Founded in 1999; privately held • Leading iMotion software platform and solutions in the RFID industry • Primarily focused on Government & Aerospace • De facto passive RFID standard for U.S. Dept. of Defense • Foundation of some of the largest RFID deployments around the world • Single-source capability and top tier partnerships 13 GlobeRanger Confidential
  • 15. Solution Focus Automating Supply Chain Logistics g pp y g The U.S. alone spent $1.3 trillion on SC logistics in 2008 CSCMP’s 20th Annual State of Logistics Report Transportation Supplier Carrier/3PL Stock Manufacturing g Stock Carrier/3PL Distribution Inbound Enterprise Outbound  Shipping/Receiving  Yard Management  WIP Tracking/JIT Mfg. These operations can be made faster,  Inventory Management more accurate, and more efficient with  Tool Tracking RFID technology. technology  Warehouse Operations  Asset Tracking 14 GlobeRanger Confidential
  • 16. GlobeRanger Provides a Unified Foundation Corporate Finance Logistics Operations Manufacturing HQ OMS Branch ERP WMS Branch Business Visibility Rules Custom GR-AWARE GR AWARE GR-LIVE GR LIVE GR-MAKE GR MAKE Solutions Asset Tracking Logistics Manufacturing Solution Accelerator 1 Solution Accelerator 2 Solution Accelerator 3 Components C t Components C t Components C t Components C t Components C t iMotion Vendor X Vendor Y GPS Passive Active 15
  • 17. The RFID Solution Factory September 2009 1616
  • 18. RFID is all we do Benchmarking Engineering Support Deployment Planning g Design 1717
  • 19. 250+ paid RFID Projects 1818
  • 20. Pre-Packaged Solutions 1919
  • 21. Hosted or Installed ► Application Features ► Edge Device Control ► Remote Monitoring 2020
  • 22. What is your experience with, and perspective on, Managed Services, or hosted deployment methods for RFID solutions? 21 – VDC Research Group, Inc.
  • 23. What are the primary benefits and barriers to adoption for MS/hosted deployment models in RFID as your recent market experience informs you? p y 22 – VDC Research Group, Inc.
  • 24. Are these drivers/ barriers persistent? Transient? How do you see the MS/ hosted opportunities/ requirements evolving during the next 6-12 months? 23 – VDC Research Group, Inc.
  • 25. What regions, markets, and/or applications do you perceive pioneering this business model? Why? 24 – VDC Research Group, Inc.
  • 26. RFID Managed Services: Research Objectives • Global geographic coverage • Enterprise-user analysis • RFID supplier, managed services partner, channel analysis • RFID solution provider capabilities and position analysis • Definition of managed services offerings for RFID solutions and analysis of currently available offerings. Study Publication Date Founding Sponsorship Period Dec 2009 Through September 30, 2009 25 – VDC Research Group, Inc.
  • 27. Q&A Session Thank You for Attending this VDC Webcast For more information about VDC Research’s coverage of the global markets for RFID technologies – including the Managed Services – RFID Solutions: 2009 Market Requirements and Opportunity Analysis – please contact: Drew Nathanson AutoID & Transaction Automation Practice email: andrewn@vdcresearch.com phone: 508-653-9000 ext. 148 web: http://www.vdcresearch.com // 26 – VDC Research Group, Inc.