Mobile devices can help make workforces more productive and helpful to customers, but rolling out these devices across a large enterprise can add up to a significant investment. Especially in today’s challenging economic environment, it is essential for mobile users to better manage their ROI and reduce the TCO of their mobile equipment.

1. 5 Strategies to Lower Your
Costs & Improve Service
While mobile deployments are becoming increasingly
ubiquitous in today’s retail market, the hard truth is that over
70% of the cost of owning a mobility solution can come after
the initial purchase, according to a recent study conducted by
the VDC Research Group, a research company that
specializes in providing technology executives with the market
intelligence they need to make critical business decisions with
confidence.
Although there are many benefits to implementing a mobile
solutions infrastructure--including the ability to speed up
efficiency and improve customer service—most companies
find that the large scale investments are in the “soft” costs,
which can be anything from maintenance expenses to
productivity losses due to worker downtime and device
Sponsored By failure.

2. “Some of the most difficult to track, yet
and TCO before investing in new
potentially some of the most significant mobile equipment.
costs, relate to soft costs associated with
1. Extend the Life of
device failure. This is especially true for Your Equipment
non-rugged devices being deployed in
environments that are more suitable for Industry standards show that the
average retailer gets 5-7 years out
rugged solutions.” of their initial purchase of mobile
- David Krebs, VDC Research Group deployments, which, over the lifetime
of the device, will eventually represent
only 1/3 of the TCO. More specifically,
for rugged handheld devices used
However, the irony is that in today’s
in retail environments, the average
challenging economy an astounding
lifespan is approximately 5-6 years,
68.4% of these companies are more
according to David Krebs, Director
likely to make a mobile investment
of Mobile and Wireless Practice at
based on upfront “hard” costs instead
VDC Research Group. “This has
of looking down the road at the
trended up recently as organizations
long-term total cost of ownership
have extended the life cycle [or their
(TCO), according to a July 2007
equipment] in response to the weak
report published by VDC entitled,
economy,” he adds. A statistic that
TCO Models For Mobile Computing
many industry experts feel highlights
and Communications Platforms.
the importance of aligning with an
These facts illustrate why it is more
independent service provider (ISP)
important than ever for mobile
whose main focus is extending the life
users to be armed with the proper
cycle of mobile equipment.
knowledge of all costs associated
with a mobile solutions infrastructure
In a recent study conducted by The
before making an informed business
Aberdeen Group, 129 mobile users
investment.
were surveyed between July and
August 2009 to reveal Best-in-Class
By exploring innovative ways to
methods and techniques to ensure
extend the life of their equipment,
maximum longevity of a mobility
evaluating their workforce
infrastructure in 21st century retail.
environment, improving service
For 52% of Best-in-Class mobile
levels, aligning with a mobile services
users, the larger issue is the need to
provider, and taking a prudent
ensure timely application upgrades to
approach to battery management,
their mobility solutions.
this white paper will illustrate 5 ways
mobile users can improve their ROI
To that end, industry analysts stress
2 s A Retail TouchPoints White Paper 2010

3. Another key to extending the life cycle of according to Krebs. “This is especially
mobile deployments is to understand the life true for non-rugged devices being
deployed in environments that are
of your battery. VDC’s research indicates that more suitable for rugged solutions,”
accessories represent approximately 15- he adds.
20% of the hardware costs of a mobile solu-
Statistics show that approximately
tion. 35% of consumer-grade devices
are replaced within the first two
the importance of considering years of implementation when used
broadband wireless functionality, in an industrial environment, so the
security, ongoing serviceability, importance of considering where
and future application needs when the mobile deployments will be
upgrading your current mobile getting the most mileage should
infrastructure, in order to avoid not be underestimated. Having
needless upgrades. this knowledge can provide mobile
users with insight into the degree of
“I think it is important for [mobile wear-and-tear the equipment could
users] to let the application drive the potentially endure, ultimately giving
product selection,” says Krebs. “In them an idea as to what types of
addition, as many rugged devices failure rates they might experience
will be used for 5 years or more, it is and how often they will occur.
important to also anticipate some of
the future application requirements. “Companies [should] review how the
This could impact integrated wireless equipment is being used every day
options, I/O options (such as imaging, to determine if there are ways the
RFID, bar code scanning, voice, etc.), equipment can be better protected
display size, etc.” against damage,” advises David Marin
of BCS Solutions, a data collections
2. Evaluate the Workplace and mobility solutions provider that
Environment helps transform enterprises into
streamlined, efficient and productive
According to VDC, it is not businesses.
uncommon for the annual mobile
computer failure rates to exceed Marin also suggests some ways to
30% these days. extend the life of your equipment
by evaluating the workplace
“Some of the most difficult to track, environment. “If the terminals are
yet potentially some of the most not in holders/holsters they should
significant costs, relate to soft costs be as holsters or other cases that
associated with device failure,” will protect a terminal in the event
3 s A Retail TouchPoints White Paper 2010

4. According to VDC’s 2007 research, mo-
bile device end users lost an average of Mark Kling, Senior Product Manager
at Scan Again Inc. Kling is also
75 minutes of productivity each time a quick to stress the importance of
device failed. “Being diligent in battery understanding that 1 battery life cycle
management can provide real cost sav- = 1 charge of the battery, whether it’s
depleted or not.
ings.”
- Mark Kling, Scain Again Inc. “The average mobile computer
battery is only good for 500 life
of a drop. It is also wise to assign cycles [or 500 charges], which is
a terminal to an individual, as that equal to about 2 years,” says Kling.
person is more likely to take care of it Without having a good understanding
rather than just letting it be common of the battery life cycle, he explains,
property.” “… equipment could wind up with
‘failures’ that aren’t actual ‘failures’ —
3. Improve Battery leading to more time and resources
Management spent on processing and repair.”
Another key to extending the What’s more, according to VDC’s
life cycle of mobile deployments 2007 research, mobile device
is to understand the life of your end users lost an average of 75
battery. VDC’s research indicates minutes of productivity each time a
that accessories represent device failed. “Being diligent in battery
approximately 15-20% of the management can provide real cost
hardware costs of a mobile savings,” adds Kling.
solution. “One of the most
significant contributors is the battery,” 4. Improve Service Levels
emphasizes Krebs.
For many organizations, having a
“Beyond the actual performance of managed services vendor provides
the batteries, end users also want an deployment flexibility and pricing
effective way to manage their battery variability over today’s largely fixed
inventory (i.e. easily identifying which cost capital investment models,
batteries are charged/need charging; according to VDC research.
understanding when to replace a Additional benefits include low upfront
battery, and also the ability to share costs and outsourced IT services and
batteries among different devices),” infrastructure, which can take the
he adds. pressure off of the initial investment.
One way to do this is by writing the Furthermore, according to an August
installation date on them, suggests 2009 study conducted by The
4 s A Retail TouchPoints White Paper 2010

5. For Laggard mobile users intent on ex- needs has benefits. But how else can
tending the life of their current equipment] having a partner affect the TCO of a
mobile solutions infrastructure?
is vital to the overall deployment of mobil- “In our case, the operating cost is
ity devices to ensure adequate mainte- budgeted through a yearly contract.
Repairs and shipping to and from
nance and prompt replacement of devices
the stores is included so there are no
in case ‘lost or broken’ issues crop up.” surprises,” explains one executive
from a large software company.
- August 2009 Aberdeen Group Study, “Mobile Field Workforce However, other experts point to the
in Retail: Strategies to Reduce Total Cost of Ownership following guidelines to keep in mind
when evaluating service vendors:
Aberdeen Group entitled, Mobile
Field Workforce in Retail: Strategies • Self-service web portals
to Reduce Total Cost of Ownership, -- According to a recent report by
“the services component [for Laggard the Aberdeen Group, 45% of Best-
mobile users intent on extending in-Class companies lowered their
the life of their current equipment] support costs with self-service web
is vital to the overall deployment portals. Self-service web portals can
of mobility devices to ensure provide 24-7 support while freeing up
adequate maintenance and prompt the help desk staff for more critical
replacement of devices in case ‘lost support. An Internet service portal
or broken’ issues crop up.” also allows a way for companies to
track the progress of repairs and
Industry experts add that original manage service activities.
equipment manufacturers (OEM) may
push to obsolete equipment in order • Experts in the field –
to keep moving new products, so Aligning with a vendor that has the in-
it’s extremely important to be leery house capability to handle all mobile
of having your equipment deemed repairs down to the component level
non-repairable right off the cuff. One is crucial when it comes to eliminating
option that could increase ROI is to downtime.
deal with and ISP, which will help
ensure the longevity of the original • Fast repair turnaround –
device. Fast turnaround time has the potential
to provide companies with substantial
5. Find a Partner cost savings by eliminating the need
to stock up on spare equipment.
Obviously, multiple service vendors
= multiple service costs, so having “Repair time varies quite a bit
one vendor to meet all of your mobile depending on the expertise and parts
5 s A Retail TouchPoints White Paper 2010

6. Statistics show that approximately
35% of consumer-grade devices are the broken units are returned, they
replaced within the first two years are repaired and placed [back into]
the pool,” explains James Luck, EVP,
of implementation when used in an Scan Again Inc.
industrial environment
Along with the hot swap repair
inventory of the service providers,” service, clients can also track the
explains Marin. “The goal would be progress of their defective equipment
to get repairs done in three days;” by utilizing Scan Again’s self service
-- a turnaround which typically out web portal, adds Kling.
performs most OEM’s.
“Customer’s can simply log in [to the
Additionally, vendors who maintain web site] enter a serial number, failure
cross-border facilities can aid mobile description and contact info, and just
users in reducing cross-border ship [the defective equipment] and
shipment costs, as well as any we’ll be able to service and return it
downtime incurred when shipments within 3-5 days,” he says.
are tied up in customs.
• Customized service
programs – Customized service
programs like “hot swaps” are key
in reducing significant costs that
can be lost in the event of downtime
by effortlessly replacing broken
equipment without shutting down the
system.
“When [a] client has a breakdown,
either he or the client help desk (after
vetting) will request a unit(s) be sent
out immediately from the pool. When
6 s A Retail TouchPoints White Paper 2010

7. 5 Strategies to Lower Your
Costs & Improve Service
Conclusion
Mobile devices can help make workforces more productive and helpful to custom-
ers, but rolling out these devices across a large enterprise can add up to a sig-
nificant investment. Especially in today’s challenging economic environment, it is
essential for mobile users to better manage their ROI and reduce the TCO of their
mobile equipment.
By taking into account all of the costs associated with a mobile infrastructure – hard
(direct) costs, as well as soft (indirect) costs — companies can enable themselves to
make better business investments and extend the life of their existing equipment.
Additionally, aligning with experts in the mobility space, such as an ISP, can help
avoid unnecessary upgrades. Furthermore, ISP’s can aid mobile users by providing
guidance on matching the right product for the right environment, ultimately reduc-
ing ongoing expenses tied to maintenance, worker downtime or device failure, and
significantly extend the life of your equipment.

8. About Scan Again
Scan Again Inc. was created eight years ago to offer an alternative for repair
and sales of equipment and accessories to North American customers that feel
that they are under serviced. This in particular on the legacy equipment which
they have in use, in their environment.
The business has been built on a model designed to offer superior quality repair
at a reasonable rate with a consistent turn around time. Manufacturer trained
technicians and state of the art test equipment enable SAl to fix equipment
other companies may deem un-repairable. This, in itself, allows us to cut cost
ensuring our customers receive the best possible service. At SAl our techni-
cians are trained to repair customer equipment down to board level, effectively
reducing cost. SAI does not believe in replacing entire circuit boards if an inex-
pensive component will fix the problem. Maintaining adequate inventory levels
of parts ensures all repairs performed are returned to our clients without delay.
About Retail TouchPoints
Retail TouchPoints is an online publishing network for retail executives, with con-
tent focussed on optimizing the customer experience across all channels. Tap-
ping into the power of the Web 2.0 environment, the Retail TouchPoints network
is made up of a weekly e-newsletter, category-specific blogs, twice-monthly Spe-
cial Reports, web seminars, benchmark research, virtual events and a content-
rich website at www.retailtouchpoints.com.
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