Strategy: Arming Your Field Work Force with Mobile

© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D . #

“Life begets life.

Energy creates energy.

It is only by spending oneself that one becomes

rich.”

Sarah Bernhardt

AGENDA

• Introductions

• Mobile Application Deployment - Case Study

• Spinning off

• Conclusions

• Q & A

3© 2 0 1 2 M O B C O N ─ W H E R E M O B I L E M I N D S C O N N N E C T . A L L R I G H T S R E S E R V E D .

INTRODUCTIONS

• Who:

• Brian Hase

• CTO of Braun Intertec and Agile Frameworks, a subsidiary of Braun Intertec

• Braun Intertec – Oversight responsibility for IT application portfolio at Braun Intertec

• Agile Frameworks - Operational responsibility for development & delivery of software

products, solutions, services

• What:

• Braun Intertec’s experience in deploying mobile line-of-business applications for its extensive field

operations

• Braun Intertec’s experience in creating a software company spin-off to leverage its intellectual

property in the market

• Why:

• If you have any business processes reliant on field or mobile workers, you have an opportunity


INTRODUCTIONS

• Founded in 1957 by Jack Braun

• Provides geotechnical engineering, environmental consulting, building envelope consulting, and

materials and analytical testing services.

• 500+ employees

• 15 offices in Minnesota, Wisconsin, and Iowa

• 100% employee owned

• Subsidiaries: Agile Frameworks, Braun Intertec Geothermal


INTRODUCTIONS

• Founded April 2011 as a wholly owned subsidiary of Braun Intertec

• Spin off founded to leverage intellectual property in the AEC market

• 20 employees

• 3 integrated products serving CMT disciplines in the AEC market

• National client base: Richmond VA, San Antonio TX, St. Louis MO, Fort Lauderdale FL


®

Powered by

SOME WIKI-HISTORY

• 1973 – Theodore George “Ted” Paraskevakos invented and patented many of the concepts

that combine intelligence, data processing, and visual display screens with telephones –

he invented the original basis of “caller id”.

• Holds 60 patents including digital alarm communications systems, portable cardiac

alarms, automatic meter reading, and indoor archery indoor practice devices


SOME WIKI-HISTORY

Early GSM or CDMA digital wireless devices left something to be desired:

• Hardware technology

• Software applications and interoperability

• Ecosystem, wireless networks, etc.


WTF?

SOME WIKI-HISTORY

• 1992 – IBM’s “Simon” was the first real smart phone including most of the applications we

associate with a smart phone

• it was big, ate batteries for breakfast

• wasn’t as cool as the flip phones


SOME WIKI-HISTORY

• 2004 – Confusion reigns…

• January 4th 2004 Nasa’s Spirit Rover lands on Mars

• January 25th 2004 Nasa’s Opportunity lands on Mars


SOME WIKI-HISTORY

• 2004 – Confusion reigns…

• February 1st, 2004 was one of the best super bowls of all times


SOME WIKI-HISTORY

• 2004 – Confusion reigns but the smart phone comes of age at Braun Intertec

• Deployed with 2 providers, Nextel and Verizon

• 100+ deployed to project managers, engineers and field technicians

• MDM - Blackberry Enterprise Server

• For mobile office - also deployed Terminal Services

• Developed in thin web application

• RIM SDK native application


THE BUSINESS CASE IN 2004

See Braun Intertec PowerPoint circa August, 2004


Business Case2.pptx

APPROACH


APPROACH


BUSINESS RESULTS


Braun Intertec: Construction Materials Testing business unit

• Uninterrupted operation since 2005

• 20%-30% productivity improvement primarily as a result of high quality data, less rework, elimination of word processing

• Cycle time reduction weeks to days/hours/minutes; cycle time has become discretionary

• As of today: 380 users

500,000+ transactions (field work activities)

200,000+ client reports

• Version 2.3 deploying in February

BUSINESS RESULTS


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2004 2005 2006 2007 2008 2009 2010 2011

Transactions

Reports

BUSINESS RESULTS


•Software - $50,000

•100 Blackberries - $25,000,

•Other hardware - $35,000

•Data/cellular subscription - $66,000

•Software - $15,000; Replacement parts - $5,000

•Reduced test time by 4 min. each 7,900

hours/year

•Labor savings of 3.8 FTE’s or $237,000 at

$30/hour

•200+ hours/year in signing documents

•7,900 billable hours At $65/hour

Cost

Reduction

Revenue

Potential

Initial Investment $

110,000

$ 110,000

Annual

Investments

$ 86,000 $ 86,000

Annual Benefit

from Cost Savings:

$

237,000

Additional

Capacity:

$

513,000

NPV 5 Years at

5%:

$

517,858

$1,655,89

2

ROI 135% 388%

BUSINESS RESULTS


$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

PAS MetaField Braun Interport Portals/Integrated

Workflow

Cost

Benefit

THE BUSINESS RESULTSMetaFieldTM Implementation - Quantitative Value Analysis

Initial Investment Year One Year Two Year Three

BENEFITS

Field Staff - Productivity/Cost Avoidance $ 293,608 $ 302,416 $ 311,488

Project Managers - Productivity/Cost Avoidance $ 105,296 $ 108,455 $ 111,709

Administration - Productivity/Cost Avoidance $ 59,409 $ 61,191 $ 63,027

Document production, retention, search $ 9,979 20,556 31,759

Total Benefits $468,291 $492,618 $517,983

Cumulative value $468,291 $960,909 $1,478,892

INVESTMENTS

Initial

Investm

ent

MetaFieldTM Implementation Costs $ 37,464 $ - $ - $ -

Field User Device Acquisition Costs $ 32,500 $ - $ - $ -

Recurring Investment

Field Device Management/Replacement Costs $ 14,430 $ 14,863 $ 15,309

Telcom/Data Provider Costs $ 46,800 $ 48,204 $ 49,650

MetaFieldTM Licensing Costs $ 60,480 $ 60,480 $ 60,480

Total Investment ($69,964) ($121,710) ($123,547) ($125,439)

Cumulative investment ($69,964) ($191,674) ($315,221) ($440,660)

NET VALUE

Annual Benefit Flow $346,581 $369,071 $392,544

Monthly Benefit Flow $28,882 $30,756 $32,712

Cumulative Benefit Flow $276,617 $645,688 $1,038,232

Net Present Value of 3 Year Investment $790,602

Cumultive Payback of Investments 2.44 times 3.05 times 3.36 times

Initial Investment Paid Back in 2.42 months

ROI (by year) 395.37% 485.47% 499.06%


SOME LEARNINGS


Focus on a single line of business to

get a win

Work with older staff first

Consolidate and negotiate with

carriers

Native vs. HTML5 … it depends

Gather data at origin

Real-time visibility

Enable the entire business process

Structured data feeds the future value

chain

THE SPIN-OFF CONCEPT


Mission: to help multidisciplinary engineering firms improve profitability,

cash flow, and service delivery via best practices in process and

technology.

Benefit to Braun Intertec:

Address our own IT sustainability & scalability challenges

Retain the benefits of ownership and license rights

Produce a new value stream with significant cash advantage

Drive

THE MARKET


Industry: Engineering services

NAICS Code: 54133

Measure: Labor productivity, output per hour

Duration: index, 1997 = 100

Base Year: 1997

Sector: Non- Farm Business



Base Year: 1997

Major Sector Productivity and Costs IndexEngineering Services Productivity and Costs Index

Industry: Software publishers

NAICS Code: 51121



Base Year: 1997

+10%

+50%

+84%

MARKET DRIVERS


• Competition is fierce.

• Race to the bottom line or provide added value

• Consolidation is rampant.

• Narrow vendor offerings: line-of-business vendors have narrow or limited subject

matter expertise to aid in real-world implementation and support

• Monolithic approach: software offerings are either monolithic (trying to be everything

to everybody), incomplete, or process poor

VALUE PROPOSITION


Competitive AdvantageDifferentiate with “Value Add” vs. “Race to the Bottom”

“Stickier” Client RelationshipsStrengthen key relationships by providing useful, user-friendly access to

information.

Document /Information Management Ability to retain, reproduce and manage documentation and re-purpose

data over time. BI, data mining, OLAP….

Strategic PartneringMoving from tactical, cost-based sub-contracting to enduring, value –

added partnering.

AGILE FRAMEWORKS

• 18 months in business

• ~20 employees

• $1.5 revenue

• 5 clients

• Braun Intertec, Minneapolis, MN

• Froehling & Robertson – Richmond, VA

• Arias & Associates – San Antonio, TX

• Geotechnology Inc. – St. Louis, MO

• GFA International – Del Ray Beach, FL


CONCLUSION


BEING DISTINCTIVE

REQUIRES COURAGE.

Being relevant

requires insight.

Being consistent

requires commitment.

MOBDEMO

• What: MetaField™ is a business application designed for Firms who conduct significant

quality assurance and testing operations associated with construction.


™ ®

MOBDEMO

• Why: firms who work in this line of business produce 10,000’s of transactions and

100,000’s of documents annually; traditionally, these transactions were conducted with

paper on clipboards.

• It improves the quality of deliverables by reducing errors through validation and the elimination of

hand-writing errors.

• Speeds cycle-time from field activities to client deliverables.

• Avoids labor costs – client experiences indicates that efficiency can improve between 10-40%

• Fast ROI - depending on a company’s volume of work, MetaField™ can provide a payback in as little

as 2 months


™

MOBDEMO

• Why: firms who work in this line of business produce 10,000’s of transactions and

100,000’s of documents annually; traditionally, these transactions were conducted with

paper on clipboards.

• It improves the quality of deliverables by reducing errors through validation and the elimination of

hand-writing errors.

• Speeds cycle-time from field activities to client deliverables.

• Avoids labor costs – client experiences indicates that efficiency can improve between 10-40%

• Fast ROI - depending on a company’s volume of work, MetaField™ can provide a payback in as little

as 2 months


™

Documents

Strategy: Arming Your Field Work Force with Mobile