Managed services involve transferring day-to-day management responsibilities to a service provider as a strategic method for improved operations. For RFID, managed services can include device/equipment management, line-of-business applications, and database/data management delivered as software-as-a-service, leasing/financing outsourcing services, or hybrid deployments that bundle hardware and software. Adoption of managed services models for RFID addresses problems with large legacy systems by shifting capital expenditures to operating expenditures and risks to the service provider while providing varied service cost models and support/upgrades included in costs. However, barriers to adoption include concerns over relinquishing control and risks associated with new business models.

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

10. GlobeRanger Overview

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.