THE ADVANTAGES OF RUGGED VERSUS COMMERCIAL-GRADE COMPUTERS: A Total Cost of Ownership Approach
Y
ou’ve decided to equip your fleet with mobile computers to increase organizational efficiencies. Considering that fleet-based organizations
can see a 23 percent improvement in workforce productivity by implementing a mobile solutioni, that’s an easy choice. Now comes the hard part—deciding on the best mobile computer for your needs. There are a myriad of choices from consumer-grade to rugged devices, but which mobile computer will best suit your business?
Looking only at the upfront cost is not enough when considering such a vital component of your service suite. Instead, analyzing the Total Cost of Ownership (TCO) of the device you choose is a
Rugged Demystified
better determiner of a sound investment. Having
On the spectrum of durability, mobile comput-
to replace devices often or buy additional equip-
ers can fall anywhere from commercial grade
ment to attain the functionality needed can dra-
to fully rugged. Commercial devices have no
matically increase the cost of a seemingly inex-
enhancements designed into them to with-
pensive commercial-grade computer. According
stand the rigors of the fleet vehicle environ-
to research by Venture Development Corp. (VDC),
ment. Fully rugged mobile computers, on the
an independent market research and strategy-
other hand, are designed to meet MIL-STD
consulting firm, “The TCO of rugged mobile com-
810-F and at least IP54 standardsiii. These
puters is in many cases lower when compared to non-rugged mobile computers.”ii
tion, shock, dust, and water exposure. More than simply having a tough case encompass-
Wireless transmission failure is
ing the computer, rugged mobile computers are built rugged from the inside out, includ-
almost three times as much for non-rugged notebooks when
“
“
tests ensure the computers can handle vibra-
compared to rugged notebooks.
ing the internal hardware, touchscreen, and keypad. These computers also stand up to the temperature fluctuations inherent in the vehicle environment.
THE TRUE COST OF MOBILE COMPUTERS
I
t’s tempting to select a mobile computer based on the lower upfront cost, however, independent research suggests otherwise. VDC completed a five-
year TCO study on commercial versus rugged mobile computers. The study revealed that a low upfront cost does not translate into a low lifetime cost of mobile computers. “Most TCO analysis places greatest emphasis on up-front system acquisitions, deployment, and training costs—in other words, hard costs,” states the study. “VDC’s research reveals that the soft costs associated with mobile computing solutions— device failure and downtime, productivity loss and maintenance/support costs—represent the most significant contribution to overall TCO.”iv
Failure rates for non-rugged devices are 36 percent, compared to 4 percent for rugged mobile computers.
A thorough TCO approach lets you find the lifetime costs of purchasing and operating a mobile computer. This table highlights some of the hidden costs:
Factors Affecting the TCO of Mobile Computers Upfront Costs
Hidden Costs
Upfront Hardware/Software Costs
Replacement Costs
Installation Costs
Additional Hardware/Software Required
Training Costs
Customer Satisfaction Rates Downtime Costs Employee Acceptance Rates Message Transmission Rates Disposal Costs
Replacement Costs
Additional Hardware/Software Costs
“On average, 4 percent of rugged mobile computers
Though the initial cost of a commercial device is
installed to support enterprise mobility applications
less, the cost quickly rises when you start to inte-
in “harsh” environments fail per year. Conversely,
grate things like card swipes, RFID readers, vehicle
the annual failure rate for commercial grade de-
mounting solutions, and engine data diagnostics
vices in similar harsh environments rockets to 36
modules. These capabilities are often built into rug-
percent.” In general, the lifespan of a commercial
ged devices designed for industry rather than the
device is between 12 and 18 months, compared to
consumer. In addition, the software running on the
7 plus years for good quality rugged devices. Fac-
device may not be tailored to your fleet’s needs, and
toring in the device replacement costs for commer-
the cost of having specially written one-off applica-
cial computers increases their TCO significantly.
tions can increase the TCO significantly.
v
Customer Satisfaction Rates
can cause employees to reject the new technology.
Delays in service due to failed computers can nega-
Increased training time, recruiting time, and down-
tively impact your customer’s experience leading to
time result. When rugged devices are backed by
poor customer satisfaction rates and lost business.
fleet-focused companies they are more likely to be
A rugged device with integrated GPS capabilities
designed for ease-of-use in the vehicle and sup-
lets your dispatchers deliver accurate vehicle loca-
ported by comprehensive training.
tion information to customers, improving their experience with your organization.
Message Transmission Rates According to the VDC study: “Wireless transmis-
Downtime Costs With device failure comes significant downtime, which increases the TCO. “Mobile device end users lost an average of 75 minutes of productivity each time the device failed.”vi Considering the high failure rate for commercial-grade devices, that is a significant loss of revenue.
sion failure is almost three times as much for non-rugged notebooks when compared to rugged notebooks. Each failed transmission leads to 5 to 10 minutes in lost productivity and as a result can significantly add to TCO, not to mention employee frustration.”vii
Employee Acceptance Rates
Disposal Costs
When an employee uses their mobile computer to
When faced with potentially replacing 36% of your
its full potential you get the most from your invest-
commercial devices each year it becomes impor-
ment. Commercial computers that are prone to
tant not only to consider the monetary cost but the
failure with generic software applications that are
environmental one as well. Is this replacement rate
difficult to learn and not tailored to your business
in line with your organization’s green initiative?
The Savings The annual TCO of rugged versus non-rugged revealed by the VDC study is shown in the chart below:
ANNUAL MOBILE COMPUTER TCOviii Rugged Notebooks
3
Annual Hard Costs1
Annual Soft Costs2
Annual TCO
$1,092.98
$2,001.24
$3,094.22
$4,030.96
$4,850.96
Non-Rugged Notebooks4 $820.00
1 – includes hardware and software acquisition, system deployment, maintenance, and education costs 2 – includes productivity loss from hardware failures, wireless transmission filures, and internal IT support costs 3 – based on 48-month replacement cycle 4 – based on 36-month replacement cycle
The study found the five-year TCO of consumer-
tions specifically, the study found that companies
grade devices to be $12,631, while the TCO for a
using rugged units had a 17 percent savings over
rugged device is $8,569 . In field service applica-
companies using non-rugged units.x
ix
Beyond Rugged
L
ooking past their tough components, rugged computers offer a host of beNefits not found with commercial-grade devices. This is due to the fact
that rugged computers are more likely to be backed by companies that understand fleet-based industries rather than a commercial-device manufacturer who focuses on the consumer. Rugged devices are more likely to offer:
Back-Office Integration
Network Connectivity
Mobile computers purchased in isolation will not
Look for a mobile computer with supporting middle-
generate the same efficiencies as those that inte-
ware to connect to both public data and private ra-
grate into a total fleet management solution. Look
dio networks to ensure message delivery. If there is
for mobile computers that fully integrate with back-
a change to the network, good middleware adapts
office software to give managers knowledge and
to remain connected so the mobile computer stays
control of onboard activities. With full integration
the same and the initial technology investment is
managers can see if the vehicle ignition is on or off,
protected.
the time the driver logged on, and much more.
Comprehensive Support Vehicle Diagnostics
Because commercial-grade devices are geared to-
Mobile computers that integrate with the vehicle to
wards the consumer their support programs may
collect real-time diagnostic data can help streamline fleet maintenance programs. They also send driver behavior information back to head office, helping to minimize behaviors such as speeding and idling that impede safety and waste fuel. In fact, “Most fleets achieve more than a 55% reduction in idle time within six weeks of implementing a GPS fleet management program.”xi
Integrated GPS
not account for the urgency of mission-critical enterprise situations. Choose a vendor who understands the real-time needs of industry, with 24/7 support plans and corresponding maintenance programs in order to minimize downtime, lost data, and lost sales.
Upgrade Path The ability to integrate future technologies into your existing mobile computing infrastructure will protect
Mobile computers equipped with GPS allow dis-
your initial investment and keep your organization
patchers and managers to see the exact location of
current. “Rugged units are typically designed to of-
their vehicles for faster dispatching and better fleet
fer users an upgrade path (e.g. from one to multiple
organization. GPS gives drivers access to onboard
connectivity options). Because non-rugged units
navigational prompts. And, if there is an accident
are primarily targeted at the consumer and white-
or medical emergency onboard, the driver simply
collar markets, industry-specific upgrade paths are
hits the emergency button on the computer and
far less compelling.”xii
dispatch can send help to the vehicle’s precise location, improving safety.
Tailored Software
Remote Programming
It is unlikely that generic commercial software ap-
The ability to program and update software pro-
plications take into account all the factors affect-
grams on your fleet’s rugged computers from the of-
ing your fleet operation. Leverage the experience
fice versus going to each vehicle individually saves
of a rugged device manufacturer who has multiple
considerable time and money. Finding a vendor
software applications and can tailor a solution to
that offers this capability is important in minimizing
you. These companies are also more likely to have
downtime.
relationships with back-office software suppliers so integration is simplified.
Onboard Connectivity
Rugged devices give
By choosing a mobile device designed to connect
companies a 17
to various onboard devices, such as lights, sirens, PTO, weighing systems, RFID and others, you can
percent TCO savings.
create a complete mobile solution without spending additional time and money on integration.
The Rugged Computer Advantage • Increased ROI with less downtime and repairs • Longer device lifespan
• Lower Total Cost of Ownership • Fully integrated for optimized efficiencies • Greater employee acceptance
Conclusion Making the right mobile computing decision can
to commercial devices, and are more likely to be
save your company hundreds of thousands of dol-
backed by companies who understand the chal-
lars. Being long-term in your approach and consid-
lenges of fleet-based operations. Leveraging that
ering all the costs, upfront and hidden, can help
experience can minimize downtime during integra-
you determine the best mobile computing invest-
tion and beyond, increasing your employees’ ac-
ment that will take your organization to the level
ceptance of the technologies, and maximizing your
of efficiency you require. Rugged computers are
fleet’s efficiencies.
proven to cost less in the long run as compared
MENTOR ENGINEERING’S RUGGED SOLUTION Mobile computer, Mentor Ranger®, is specifically
Running on Ranger is the Mentor Mobility Platform,
designed for the fleet vehicle environment, and has
a sophisticated suite of tailored software applications
a lifespan of more than seven years. This fixed-
that have been tried and tested. Mobility automates
mount compact computer meets MIL-STD 810-F
work-order management by electronically capturing
and IP54 tests for vibration, shock and water in-
things like login times and job completion details.
gress, making it fully rugged. It can also handle temperature extremes. Ranger’s durable touchscreen, six programmable keys, and wireless voice/ cell phone capabilities give drivers the tools they need to easily navigate to their next job and stay in touch with dispatch. An integrated 16-channel GPS receiver and wireless modem provides real-time status and location information for fleet vehicle tracking. Connected to the vehicle, Ranger collects and reports on real-time
For more information on Mentor Ranger visit
vehicle diagnostic data and driver behaviors.
www.mentoreng.com.
Sources i
“Mobile Field Service – Best Practices” Aberdeen Group. In Integrated Solutions, Oct 2008.
ii
“TCO Insights on Rugged Mobile Computers” Market Analysis By: VDC, Pg. 3
iii iv v
“TCO Insights on Rugged Mobile Computers” Market Analysis By: VDC, Pg. 2
“TCO Insights on Rugged Mobile Computers” Market Analysis By: VDC, Pg. 3
“Enterprise Mobility TCO—When Rugged Makes Sense” by David Krebs. In Insight, Pg. 42, 2005.
vi
“TCO Insights on Rugged Mobile Computers” Market Analysis By: VDC, Pg. 2
vii
“TCO Insights on Rugged Mobile Computers” Market Analysis By: VDC, Pg. 4
viii ix x
“TCO Insights on Rugged Mobile Computers” Market Analysis By: VDC, Pg. 4
“How to Choose (Or Not) Rugged Handheld” by Khristen Chapin. In Integrated Solutions, July 2005.
“Are Rugged Computers More Expensive?” by Ed Hess. In Integrated Solutions, September 2004.
xi
“Take Advantage Of GPS Fleet Tracking” by, Dan Schell. In Integrated Solutions, January 2008.
xii
“Are Rugged Computers More Expensive?” by Ed Hess. In Integrated Solutions, September 2004.
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