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Strategy and Innovation
Business Transformation Through
      Technology and Data
           Mobile Data/Analytics

 Concepts Presented to: TheWhereBusienss

                San Jose, CA
            22-23 September 2009




               Stephen Ulanoski
                   +1.612.309.7514
             Stephen.Ulanoski@gmail.com
Background:
• Not a Scientist, Mathematician or Actuary
• Business / Marketing “guy” who thinks, applies and
  understands the future value of data….new models…
• Focus on the “business-side” of data, location and spatial
  relationship – the value
• Strategy Development
• The business value of variety of heterogeneous data sources
    multiple databases, ERP’s, data marts, etc…

• Usefulness of data sources relevant in the success of future
  business models and growth platforms
    CEO and CFO…revenue and net income

                                                                     2/
                                                               09/18/09
Why we are here…
RFID Tags – 30 Billion – 2012
IBM

Machine-to-Machine – 50 billion machines - 2013
Future World Consultancy, RSA


Wireless In-HomeAssisted Living – 450% growth in next 6-10 years
GE Healthcare

Telematics and MRM will grow at a 26% CAGR in next 5 years
Aberdeen Group 2009, GE Commercial Finance

Managing Business Data – Top 5 Issues for IT Organzations in next 3 years
                                Sandhill.com

Mobile Handset and Smart Phones (GPS enabled) – 350 Million Globally 2010
                                    CTIA




                                                                                  3/
                                                                            09/18/09
Cultural Challenges
    CIO or Analytics Driving Revenue Growth?
    •   Do your business partners see you as revenue or cost?
    •   Are you driving strategy, product management and
        marketing...?
    •   Segmentation or management – is that it?

    Increased need of differentiation...
    •   Cost effective approaches to growth.
    •   Create significant data value in 90-120 days?
    •   Using technology, data and analytics to drive revenue.
    •   Impact: Ops, Product Management, Marketing, Sales?

    Increased need for upgrades...
    •   No “data as a business” domain knowledge
    •   Cloud computing, Relational Data (non), ERP, SAAS.
    •   Your own application software will need to be upgraded?


                     Competitive positioning -
                      New leaders post recession…?
4
“Tics” - Unaligned & Non-Strategic
Informatics - is the science of information, the practice of
information processing, and the engineering of information
systems.

Prognostics - is an engineering discipline focused on
predicting the future condition of a component and/or system
of components.


Analytics “simplest definition…the science of analysis,“
defined by mathematical modeling.

     Repeatable ROI or Meet the Users Emotional Value Proposition
       Or You Can “Delete The Data/Information to Save Space…”
Disparate Data Repositories
  Demand             Demand
 Management
  Planning
                    Management
                     Planning        • Value Intersect?
 Applications       Applications




                                     • Does your business
    Legacy             Legacy
 Applications /     Applications /
 Data Sources       Data Sources

                                       understand?
  Corporate          Corporate
  Databases          Databases
                                     • Do your clients get
   Global             Global
                                       it?
    Data               Data
  Warehouse          Warehouse


                                     • Can you articulate
 Collaboration      Collaboration      the Value?

  Customer
    Order
                     Customer
                       Order
                                     • So What…?
  Fulfillment        Fulfillment




 Manufacturing      Manufacturing
  Execution          Execution
                                       Does the business
                                      understand the gold
 Procurement        Procurement
                                             mine?
                                                             6/
                                                       09/18/09
Telematics/MRM Evolution
 What was before:        What is now:




 A hardware device         A solution that turns
  generating large          data into business
  volumes of data,   intelligence to improve safety,
  few stakeholders             compliance
 engaged, data use           and operational
    underutilized              efficiencies
                                                        7/
                                                  09/18/09
New Stakeholders…
                                                                                                             on
                                                                                                                                             Stakeholders:
                                                                                                       izati             ion                   Commercial
                                                                                                                      iat
                                                                s                                tim                 t
                                                              es                                                                                  CMO
Competitive Advantage




                                                                                               Op               en
                                                                                                        ff   er
                                                    e       n                                        Di                                           COO
                                                ti v                                                                                              CFO
                                         p  e ti                                                                                            Product Managers
                                 m                                                                    e
                              Co
                                                                                                                                                Marketing
                                                                      ht
                                                                                                    nc
                                                                                                 ige
                                                               In sig         gy                                                                 Sales
                                                                           ate
                                                                                              ell
                                                                         r                                                                  Sourcing / Pricing
                                                                      St

                                                                                     s Int                                                     Customers
                                   s              ar
                                                     ke
                                                        t
                                                                               in  es                                                     …engaging a broad
                                 es
                                           s-
                                                M
                                                                         s
                                                                      Bu
                              en
                           ar         i tie                                                                                               set of stakeholders
                        Aw       b il
                               pa
                           Ca
                                                            Source: Competing on Analytics Harvard Business School Press
                                                  Degree of Intelligence

                             Awareness                                                   Insight                                     Optimization
                        What is happening?                                    What needs to change?                               ROI - Differentiation?
                        Why is it happening?                                  Who needs to change?                                Revenue – New Markets?

                                                                                   “Analytics” Continuum
                           Low                                                                                                                           High
                           (Data clean-up, report customization)                                                               (Business modeling, Predictive)
                                                                                                                                                                       8/
                                                                                                                                                                 09/18/09
Methodology - Example
Cultural evolution to create demand, differentiation and product performance…analytics
and data as a driver. Creating Organizational Understanding.

                          VOC        Real Time VOC, agile messaging and positioning

                        Behavior     Behaviors, interrelationships, selling channels, tools, at risk customers
   Marketing
                                     Filtered by SIC Code and Segment Coding - messaging
                       Segment


                         Market      Actual Usage vs. market prediction

  Product             Performance    Product performance and actual use – accountability
 Management                          Integrated product teams, IT, Prod Mgt, MKT, Ops
                       Integrated

                       Information   Ability to manage and combine real-time data, BI and meta-data
        IT
                           Db        DB, ERP, CRM, Performance, SOA – design and sizing…


                          ROI         ROI – customer, business, creating new value and new revenue opptys
   Analytics
                                      Expand product offering, appeal, enable adjacencies
    MGPP              Annual Sales
                                                                                                             9/
                                                                                                       09/18/09
Challenges
Immediate Impacts – Groups

Marketing                    “Hard data” combined with “fluffy data”




                                                                         Business Organizations
                                                                           “Growth Oriented”
IT




                                                                            Nimble and Agile
                              SOA, Cloud, Terabytes/Data…design/focus


Intellectual Property        Create & Protect…social networking issue!


Predictive Modeling          Integration into business processes


Product Management           Rapid NPI, Multiple MGPPs, Analytics


Micro-blogging               Protect your strategy and IP…


Strategy                     Create new/parallel strategies for growth



                        Cultural and Strategy Changes Lead by ?                                        10 /
                                                                                                  09/18/09
Conclusion:
•   Cultural Change – understanding across the org (existing businesses)

•   Not just product, a strategy – apps & processes meet customer

    objectives and “ways of doing business…the way they live”

•   Articulate Business Value – revenue , relationship (CRM)  &

    commoditization 

•   Demystify – translate value into “business speak”

•   Not an NPI – has to be part of the “new” growth strategy…New Growth

    Platform (NGP).

                                                                          11 /
                                                                     09/18/09
New Businesses - New Business Models
Examples of Using Data and Analytics:
                        Strategy and Business Models

                        GEO Spatial Social Networking

                        EHR, MRM, Architecture as a Strategy

                        Wireless Home Assisted Living

Reference for Bridging the Communication Gap with your Business Teams:




                                                                         12 /
                                                                    09/18/09
Case Studies
• Business Models – Different Way of Seeing
  the Same Market

• Location, Spatial Relationship, Real-Time
  Information – Changing Existing Businesses

• Creation of New Models…



                                              13 /
                                         09/18/09
Dynamic Capacity Management
Concept Premise

 Today:                                          Future:
                          Using optimization
 Fleets and                                     Customers lease
                         technologies, same
              Rem ove Pr To Pr
 Customers need:        ior   esent ion
                                   at
                              capacity is
                                                capacity, not
                                                vehicles
                           provisioned with
 • Capacity to                                   • Establish baseline
   increase deliveries
                         fewer vehicles/labor
                                                 • Customer agrees
   and fulfill orders
                         Resources aligned         to operate using
 • Freedom from          to meet projected         tools
   managing the cost
                             demand              • Lessor provisions
   elements to create
                                                   to agreed capacity
   capacity
                                                   levels


                                                                      14 /
                                                                 09/18/09
Case Study 1                      Seek beyond the obvious or initial
Delivery Fleet - 275 Units        requirements – drive ROI impact and
Total Fleet 2200                  differentiation…
Annual Savings Opportunity
(pilot fleet – 275)




     Annual Fleet Spend (275 Vehicles)    =$ 1,122,000
     Annual Labor Spend (275 Technicians) = $ 12,100,000

     Annual Savings Opportunity Entire Fleet = $ 4,275, 712   32%

     Annual Telematics Cost Entire Fleet     = $ 297,000
     13.4 x Return on Investment             = $ 3,978,172
                                                                         15 /
                                                                    09/18/09
Wireless Assisted Living
                                                      72% product appeal for
Location:                                          “Wellness monitoring and alert
• Assisted Living                                    dispatch for caregivers”*
• Independent Living        Alert
• Private Homes             s

                                                 • Caregiver selects parameters for
                                                   alerts and thresholds for activity or,
                                                   in-activity (bedroom, kitchen,
                                                   bathroom, living room/or entrance)
                   Rem ove Pr To Pr sensors detect activity in the
                             ior    esent ion
                                  • Motion at
                                                   home based on parameters
                                                   (predictive models)

                                    • Prof.      • Sensor data captured and transmitted
                                     Caregiver     wirelessly through panel
                                    • Family
                                      member     • Caregiver, Family can be alerted via e-
                                    • Friend       mail, phone

                                                 • If emergency-related, then alert is
                                                   immediately passed through to 911

                                      Live       • Real Time “real use” drug testing and
                                      Help         monitoring. How the drugs are “really
                                      Advisor      used”
                                                                                         16 /
                                                                                    09/18/09
Appendix




                17 /
           09/18/09
Additional Background – Stephen N. Ulanoski

Web Profile                                                              Board Membership
• Linkedin – http://www.linkedin.com/in/stephenulanoski                  •     Board Membership Minnesota High
                                                                               Tech Association (MHTA) –
Business Awards – award                                                         
                                                                                
                                                                                      http://www.mhta.org/board_staff.php
                                                                                      http://www.fleetfinancials.com/News/Story/2009/01/GE-Fleet-Serv
 winning solutions                                                       Patents
• Technology as a Service Award (Tekne)
  –                                                                      •     Patents (Mobile Service Delivery) –
                                                                              http://www.faqs.org/patents/app/20090093236
   http://www.telematics.info/news/1041/GE-Fleet-Services-Receives-2008-Tekne-Award.html
                                                                               (USPTO # 20090093236)
Speeches/Industry
Representation                                                           Press Releases
• 2009 MetaPlaces/TheWhereBusiness –                                     •     Telematics/MRM Canada Launch –
   http://www.thewherebusiness.com/metaplaces/agenda.shtml                     http://www.genewscenter.com/Content/Detail.asp?ReleaseID=5420&New
                                                                               =
• Telematics Update 2009 –
   http://www.telematicsupdate.com/detroit/conference_commercial.shtml   •     Logistics Presentations –
                                                                               http://www.automotive-fleet.com/Channel/GPS-Telematics/News/Story/20
• Logistics & Fleet Management Systems
  USA 2008 –                                                             •     Telematics Awards –
                                                                               http://www.fleetfinancials.com/News/Story/2008/09/GE-Fleet-Services-Te
   http://www.telematicsupdate.com/lfms08usa/agenda.shtml

• NAFA 2008 –
   http://www.nafa.org/Content/NavigationMenu/IandE/Welcome/Attendee_Information/Detailed_Program/2009AP_Monday.pdf



                                                                                                                                           18 /
                                                                                                                                      09/18/09
Data – Analytics Solutions Drive ROI Value
    Traditional Fleet                     Avg. Costs related to Mobile
         Costs                        Resources for Commercial Customers




                                                    Sources: Automotive Fleet 2007, Aberdeen Group 2007,

                 Potential Savings        Fleet Savings   Labor Savings              Total Savings

                 Without Telematics       ~5-10%          N/A                        1-2%
                 With Telematics          ~15-20%         ~15-25%                    10-17%
                 (Monitor/Optimize)

                                                                                                        19 /
                                                                                                   09/18/09
Transformational Business Strategy
Evolving a Commercial Finance Business




        Rem ove Pr To Pr
                  ior   esent ion
                             at




                                              20 /
                                         09/18/09
Business Intelligence is the strategy
Drive growth via real-time business intelligence/data management
                                                                                                                                                                   Average Windshield Time by Customer - May 2008

                                                                                                                                          40.00

                                                                       Visibility                                                         35.00


                   Customer Strategy                                                                                                      30.00




                                                                                                         Avg. Windshield Time (Minutes)
                                                                       • Asset/Resource use…?                                             25.00


 Increasing                                                            • Productivity…?                                                   20.00


 Competitiveness                                                       • Non-Vehicle Asset                                                15.00

                                                                                                                                          10.00

                                                                         costs…?                                                           5.00


                                              How do I improve it?                                                                         0.00
                                                                                                                                                     502
                                                                                                                                                     Cust. 1    552
                                                                                                                                                               Cust.2         586
                                                                                                                                                                             Cust 3     588
                                                                                                                                                                                       Cust. 4    589
                                                                                                                                                                                                 Cust. 5     Cust.6 . … … … … … 502c … …552d… … 552e … … … … ..Cust. N
                                                                                                                                                                                                              646 …502b … … … … … … … … … … … … 588B … 588C
                                                                                                                                                                                                                         ……     ……       ……     ……      ……




                             Rem ove Pr KnowledgePr
                                       ior To esent ion
                                                    at
                           Why is it happening?
                                                                       •   Routing – non-linear
 Source: Competing on Analytics Harvard Business School                •   Dispatch – real-time
 Press
                                                                       •   Efficient “windshield time”
        What is happening?          Increasing Business Intelligence   •   Cost - per customer
 Source: Competing on Analytics - Harvard Business School Press
                                                                       •   Capacity Planning - asset
• Software /Data as a Service (SAAS) – Telematics
• Business Intelligence – Competitive Intelligence
• Partnership – integrated into their operations
                                                                       Competitive Advantage                                                      Baseline
                                                                                                                                                  (as run)
                                                                                                                                                                                       Re-sequence
                                                                                                                                                                                      existing routes
                                                                                                                                                                                                                    Re-sequence Routes
                                                                                                                                                                                                                    +Re assign deliveries
                                                                                                                                                                                                                       -
                                                                                                                                                                                                                                                Re-sequence Routes
                                                                                                                                                                                                                                                + Re-assign deliveries
                                                                                                                                                                                                                     to different drivers        + Reduce One truck



• Understanding – insight into actual cost drivers                     • Asset Allocation - people,
                                                                         vehicles, stuff…
• Loyalty & Retention                                                  • Fuel, Time & Productivity
                                                                       • Net Operating Costs                                                Jobs                   124                                124                             124                         124

                                                                                                                                             Miles                1,300                                990                             750                         740

                                                                                                                                             Drive Time            36.5                               27.0                            21.9                        21.5
                                                                                                                                             Trucks                     12                                 12                           12                          11




                                                                                                                                                                                                                                                        21 /
                                                                                                                                                                                                                                                   09/18/09

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Stephen Ulanoski - GE

  • 1. Strategy and Innovation Business Transformation Through Technology and Data Mobile Data/Analytics Concepts Presented to: TheWhereBusienss San Jose, CA 22-23 September 2009 Stephen Ulanoski +1.612.309.7514 Stephen.Ulanoski@gmail.com
  • 2. Background: • Not a Scientist, Mathematician or Actuary • Business / Marketing “guy” who thinks, applies and understands the future value of data….new models… • Focus on the “business-side” of data, location and spatial relationship – the value • Strategy Development • The business value of variety of heterogeneous data sources  multiple databases, ERP’s, data marts, etc… • Usefulness of data sources relevant in the success of future business models and growth platforms  CEO and CFO…revenue and net income 2/ 09/18/09
  • 3. Why we are here… RFID Tags – 30 Billion – 2012 IBM Machine-to-Machine – 50 billion machines - 2013 Future World Consultancy, RSA Wireless In-HomeAssisted Living – 450% growth in next 6-10 years GE Healthcare Telematics and MRM will grow at a 26% CAGR in next 5 years Aberdeen Group 2009, GE Commercial Finance Managing Business Data – Top 5 Issues for IT Organzations in next 3 years Sandhill.com Mobile Handset and Smart Phones (GPS enabled) – 350 Million Globally 2010 CTIA 3/ 09/18/09
  • 4. Cultural Challenges CIO or Analytics Driving Revenue Growth? • Do your business partners see you as revenue or cost? • Are you driving strategy, product management and marketing...? • Segmentation or management – is that it? Increased need of differentiation... • Cost effective approaches to growth. • Create significant data value in 90-120 days? • Using technology, data and analytics to drive revenue. • Impact: Ops, Product Management, Marketing, Sales? Increased need for upgrades... • No “data as a business” domain knowledge • Cloud computing, Relational Data (non), ERP, SAAS. • Your own application software will need to be upgraded? Competitive positioning - New leaders post recession…? 4
  • 5. “Tics” - Unaligned & Non-Strategic Informatics - is the science of information, the practice of information processing, and the engineering of information systems. Prognostics - is an engineering discipline focused on predicting the future condition of a component and/or system of components. Analytics “simplest definition…the science of analysis,“ defined by mathematical modeling. Repeatable ROI or Meet the Users Emotional Value Proposition Or You Can “Delete The Data/Information to Save Space…”
  • 6. Disparate Data Repositories Demand Demand Management Planning Management Planning • Value Intersect? Applications Applications • Does your business Legacy Legacy Applications / Applications / Data Sources Data Sources understand? Corporate Corporate Databases Databases • Do your clients get Global Global it? Data Data Warehouse Warehouse • Can you articulate Collaboration Collaboration the Value? Customer Order Customer Order • So What…? Fulfillment Fulfillment Manufacturing Manufacturing Execution Execution Does the business understand the gold Procurement Procurement mine? 6/ 09/18/09
  • 7. Telematics/MRM Evolution What was before: What is now: A hardware device A solution that turns generating large data into business volumes of data, intelligence to improve safety, few stakeholders compliance engaged, data use and operational underutilized efficiencies 7/ 09/18/09
  • 8. New Stakeholders… on Stakeholders: izati ion Commercial iat s tim t es CMO Competitive Advantage Op en ff er e n Di COO ti v CFO p e ti Product Managers m e Co Marketing ht nc ige In sig gy Sales ate ell r Sourcing / Pricing St s Int Customers s ar ke t in es …engaging a broad es s- M s Bu en ar i tie set of stakeholders Aw b il pa Ca Source: Competing on Analytics Harvard Business School Press Degree of Intelligence Awareness Insight Optimization What is happening? What needs to change? ROI - Differentiation? Why is it happening? Who needs to change? Revenue – New Markets? “Analytics” Continuum Low High (Data clean-up, report customization) (Business modeling, Predictive) 8/ 09/18/09
  • 9. Methodology - Example Cultural evolution to create demand, differentiation and product performance…analytics and data as a driver. Creating Organizational Understanding. VOC Real Time VOC, agile messaging and positioning Behavior Behaviors, interrelationships, selling channels, tools, at risk customers Marketing Filtered by SIC Code and Segment Coding - messaging Segment Market Actual Usage vs. market prediction Product Performance Product performance and actual use – accountability Management Integrated product teams, IT, Prod Mgt, MKT, Ops Integrated Information Ability to manage and combine real-time data, BI and meta-data IT Db DB, ERP, CRM, Performance, SOA – design and sizing… ROI ROI – customer, business, creating new value and new revenue opptys Analytics Expand product offering, appeal, enable adjacencies MGPP Annual Sales 9/ 09/18/09
  • 10. Challenges Immediate Impacts – Groups Marketing “Hard data” combined with “fluffy data” Business Organizations “Growth Oriented” IT Nimble and Agile SOA, Cloud, Terabytes/Data…design/focus Intellectual Property Create & Protect…social networking issue! Predictive Modeling Integration into business processes Product Management Rapid NPI, Multiple MGPPs, Analytics Micro-blogging Protect your strategy and IP… Strategy Create new/parallel strategies for growth Cultural and Strategy Changes Lead by ? 10 / 09/18/09
  • 11. Conclusion: • Cultural Change – understanding across the org (existing businesses) • Not just product, a strategy – apps & processes meet customer objectives and “ways of doing business…the way they live” • Articulate Business Value – revenue , relationship (CRM)  & commoditization  • Demystify – translate value into “business speak” • Not an NPI – has to be part of the “new” growth strategy…New Growth Platform (NGP). 11 / 09/18/09
  • 12. New Businesses - New Business Models Examples of Using Data and Analytics: Strategy and Business Models GEO Spatial Social Networking EHR, MRM, Architecture as a Strategy Wireless Home Assisted Living Reference for Bridging the Communication Gap with your Business Teams: 12 / 09/18/09
  • 13. Case Studies • Business Models – Different Way of Seeing the Same Market • Location, Spatial Relationship, Real-Time Information – Changing Existing Businesses • Creation of New Models… 13 / 09/18/09
  • 14. Dynamic Capacity Management Concept Premise Today: Future: Using optimization Fleets and Customers lease technologies, same Rem ove Pr To Pr Customers need: ior esent ion at capacity is capacity, not vehicles provisioned with • Capacity to • Establish baseline increase deliveries fewer vehicles/labor • Customer agrees and fulfill orders Resources aligned to operate using • Freedom from to meet projected tools managing the cost demand • Lessor provisions elements to create to agreed capacity capacity levels 14 / 09/18/09
  • 15. Case Study 1 Seek beyond the obvious or initial Delivery Fleet - 275 Units requirements – drive ROI impact and Total Fleet 2200 differentiation… Annual Savings Opportunity (pilot fleet – 275) Annual Fleet Spend (275 Vehicles) =$ 1,122,000 Annual Labor Spend (275 Technicians) = $ 12,100,000 Annual Savings Opportunity Entire Fleet = $ 4,275, 712 32% Annual Telematics Cost Entire Fleet = $ 297,000 13.4 x Return on Investment = $ 3,978,172 15 / 09/18/09
  • 16. Wireless Assisted Living 72% product appeal for Location: “Wellness monitoring and alert • Assisted Living dispatch for caregivers”* • Independent Living Alert • Private Homes s • Caregiver selects parameters for alerts and thresholds for activity or, in-activity (bedroom, kitchen, bathroom, living room/or entrance) Rem ove Pr To Pr sensors detect activity in the ior esent ion • Motion at home based on parameters (predictive models) • Prof. • Sensor data captured and transmitted Caregiver wirelessly through panel • Family member • Caregiver, Family can be alerted via e- • Friend mail, phone • If emergency-related, then alert is immediately passed through to 911 Live • Real Time “real use” drug testing and Help monitoring. How the drugs are “really Advisor used” 16 / 09/18/09
  • 17. Appendix 17 / 09/18/09
  • 18. Additional Background – Stephen N. Ulanoski Web Profile Board Membership • Linkedin – http://www.linkedin.com/in/stephenulanoski • Board Membership Minnesota High Tech Association (MHTA) – Business Awards – award   http://www.mhta.org/board_staff.php http://www.fleetfinancials.com/News/Story/2009/01/GE-Fleet-Serv winning solutions Patents • Technology as a Service Award (Tekne) – • Patents (Mobile Service Delivery) – http://www.faqs.org/patents/app/20090093236 http://www.telematics.info/news/1041/GE-Fleet-Services-Receives-2008-Tekne-Award.html (USPTO # 20090093236) Speeches/Industry Representation Press Releases • 2009 MetaPlaces/TheWhereBusiness – • Telematics/MRM Canada Launch – http://www.thewherebusiness.com/metaplaces/agenda.shtml http://www.genewscenter.com/Content/Detail.asp?ReleaseID=5420&New = • Telematics Update 2009 – http://www.telematicsupdate.com/detroit/conference_commercial.shtml • Logistics Presentations – http://www.automotive-fleet.com/Channel/GPS-Telematics/News/Story/20 • Logistics & Fleet Management Systems USA 2008 – • Telematics Awards – http://www.fleetfinancials.com/News/Story/2008/09/GE-Fleet-Services-Te http://www.telematicsupdate.com/lfms08usa/agenda.shtml • NAFA 2008 – http://www.nafa.org/Content/NavigationMenu/IandE/Welcome/Attendee_Information/Detailed_Program/2009AP_Monday.pdf 18 / 09/18/09
  • 19. Data – Analytics Solutions Drive ROI Value Traditional Fleet Avg. Costs related to Mobile Costs Resources for Commercial Customers Sources: Automotive Fleet 2007, Aberdeen Group 2007, Potential Savings Fleet Savings Labor Savings Total Savings Without Telematics ~5-10% N/A 1-2% With Telematics ~15-20% ~15-25% 10-17% (Monitor/Optimize) 19 / 09/18/09
  • 20. Transformational Business Strategy Evolving a Commercial Finance Business Rem ove Pr To Pr ior esent ion at 20 / 09/18/09
  • 21. Business Intelligence is the strategy Drive growth via real-time business intelligence/data management Average Windshield Time by Customer - May 2008 40.00 Visibility 35.00 Customer Strategy 30.00 Avg. Windshield Time (Minutes) • Asset/Resource use…? 25.00 Increasing • Productivity…? 20.00 Competitiveness • Non-Vehicle Asset 15.00 10.00 costs…? 5.00 How do I improve it? 0.00 502 Cust. 1 552 Cust.2 586 Cust 3 588 Cust. 4 589 Cust. 5 Cust.6 . … … … … … 502c … …552d… … 552e … … … … ..Cust. N 646 …502b … … … … … … … … … … … … 588B … 588C …… …… …… …… …… Rem ove Pr KnowledgePr ior To esent ion at Why is it happening? • Routing – non-linear Source: Competing on Analytics Harvard Business School • Dispatch – real-time Press • Efficient “windshield time” What is happening? Increasing Business Intelligence • Cost - per customer Source: Competing on Analytics - Harvard Business School Press • Capacity Planning - asset • Software /Data as a Service (SAAS) – Telematics • Business Intelligence – Competitive Intelligence • Partnership – integrated into their operations Competitive Advantage Baseline (as run) Re-sequence existing routes Re-sequence Routes +Re assign deliveries - Re-sequence Routes + Re-assign deliveries to different drivers + Reduce One truck • Understanding – insight into actual cost drivers • Asset Allocation - people, vehicles, stuff… • Loyalty & Retention • Fuel, Time & Productivity • Net Operating Costs  Jobs 124 124 124 124 Miles 1,300 990 750 740 Drive Time 36.5 27.0 21.9 21.5 Trucks 12 12 12 11 21 / 09/18/09