MOBILE COMPUTING BENEFITS

Mobile Computing Solution Benefits

MOBILE COMPUTING BENEFITS:

The benefits from any automation project, including mobile computing, can be classified into two categories - tangible benefits and intangible benefits. Tangible benefits can be quantified more easily than the latter variety. We shall discuss both types briefly.

Tangible Benefits

The saving that results from staff reductions is probably the most obvious economic benefit associated with a mobile computing solution. Mobile computing can lead to increased individual productivity, increased sales per sales person, more service calls per repair person and less time spent by professionals on administrative work, all of which can ultimately translate into a reduction in total staff required.

However, there are several other tangible benefits associated with mobile computing solutions. A higher order-fill ratio as a result of accessing real-time inventory information at the time an order is submitted can translate into reduced inventory costs. On-the-spot invoice production in service vehicles can lead to shorter payment cycles and better cash flow. The electronic citation/ticketing applications with credit card payment of traffic violations that public safety agencies are experimenting with can lead to a higher ratio of paid fines.

The following table shows a range of potential benefits that can all be used to justify mobile computing applications.

Nature of Benefits From Mobile/Wireless Computing Solutions

MOBILE COMPUTING APPLICATION TYPE OF BENEFITS (Tangible & Intangible)

Formula For Quantification $ Savings = Number of Users * $ Bundled Wages * % Productivity Improvement + $ Sales Increase * Profit Margin ( because of improved customer service) + Decrease in inventory costs * interest rate multiplier
Sales Automation Shorter sales cycle; increased sales per sales person — reduced head count
Elimination of order entry staff; more accurate data in database
Better customer service — reduced merchandise return
Lower inventory costs
Increased market share

Electronic Mail
Less time spent calling the office for mail messages
Go here for a consultant study sponsored by RIM.

Computer Aided Dispatch For Service Representatives
Increased number of service calls per day
On-the-spot invoicing — faster payment cycle
Electronic dispatch of parts — reduced administrative and inventory costs
Improved customer service

Health Care Industry
Less administration for doctors
Better patient care
Tele-diagnostics — faster diagnosis

Public Safety Applications
More efficient deployment of law enforcement staff;
Reduced time to reach scene of crime, hospital or fire — safer communities
Lower voice-network costs
Fewer dispatch or communications control center personnel
More efficient records management through officer entry of incidence reports

Accident/Collision Data Systems
Real-time entry of accident data avoids subsequent duplication of effort
Information available to police and insurance simultaneously;

Taxi Dispatch
Less cruise time
Credit card authorization leads to improved service and more customers
· Reduced dispatch personnel costs

Financial Industry (Insurance)
Reduced selling cycle
Superior customer follow-up
Higher dollar sales per sales presentation

Financial Industry - (Stock Trading)
Faster trades — more trades per hour
More accurate trading

Retail Industry
Faster sales stations during seasonal sales
Reduced electrical and wiring costs
Improved customer service
Automated vending machines with credit authorization lead to higher sales

Airline Industry
Better customer service leads to higher sales
Fewer missing baggage complaints — reduced tracing costs
More accurate maintenance data leads to safer plane flights
Electronic dispatch of parts results in less time in grounding of planes under service

Manufacturing
Lower wiring costs as a result of wireless LANs
Accurate inventory control
More accurate production tracking

General Office Applications (Public Sector)
Better document control
Reduced administrative staff requirements
Timely access to bills under debate in the legislature

News Communications (Sports, conferences)
Lower wiring costs as a result of wireless LANs
Real-time scores fed to media - score competitive advantage
Wireless LANs Cabling cost reduced
Time to implement reduced
Faster network speed as compared to wireless WAN
Go here for more info. on justifying wireless LANs

Intangible Benefits

Many of the applications of mobile computing involve automating sales, improving customer service or gaining a competitive advantage — all benefits that tend to be difficult to quantify. The project team should outline these benefits with as much detail and as specifically as possible. The group should then translate these benefits into percent increases in sales, market shares and productivity improvements. If the benefit can not be quantified with a high degree of reliability (we suggest above 70 percent), it should be handled with weights and scores as described in Chapter 4 of the Mobile Computing - A Systems Integrator's Handbook.

ROI & Justification - Benefits - Some Customer Quotes from an IBM-Cisco Presentation

Benefits of Enterprise Mobility
Improved Business Productivity
Enhanced worker efficiency through increased access to online resources
Unlocks value in offline devices (brings PDA-like resources online)
Faster execution of strategy (new procedures, pricing)
Increased knowledge-sharing amongst workers, customers and partners
Improved quality of decision making by informing employees
Workers that can tune their level of interaction are apt to work during off hours
Improved Customer Loyalty/Service
Better customer service (employees: are better informed, have shorter response times, have an improved ability to sense and respond)

Higher quality interaction with customer

Business Resilience

- Able to quickly react to adversity through multiple channels
- Rapid deployment in reaction to an "event"

Cultural Enhancement

- Attracting and retaining employees, by allowing them to work where and when they choose, and by providing them the personalized tools for appropriate, customized information

Lower Cost of Ownership

Reduced cabling costs
Teleworker credits
Reduced cell phone usage

Real Estate Financial Benefits - Company Snapshots