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As transportation vendors continue to tackle the need to find cost reductions, improve efficiency and meet the needs of a highly technical, intelligent customer base, organizations are looking to their providers to help them improve upon their digital landscape1 . To support this, Forrester Consulting conducted a Total Economic Impact™ (TEI) study to provide readers with a framework to evaluate the potential financial impact of Arm Pelion Connectivity Management on their organizations. To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed three customers with experience using Pelion Connectivity Management. The aggregated financial model of these organizations is presented here, along with the specific challenges and business outcomes faced by the transportation industry. This transportation-centric summary is based on a full TEI study, which can be downloaded.
Through customer interviews, Forrester concluded that Pelion Connectivity Management has the following three-year financial impact: $421,080 in benefits versus costs of $80,730, resulting in a net present value (NPV) of $340,350 million and an ROI of 422%.
The following risk-adjusted quantified benefits are representative of those experienced by the companies interviewed:
- Reduced number of required site visits, saving $141,353 over three years. Organizations were no longer required to replace SIM cards when switching carriers and, through Arm’s Pelion Connectivity Management platform, were able to remotely troubleshoot issues such as passenger Wi-Fi or ticketing issues, and perform maintenance, saving a site visit for a field technician.
- Single view of entire SIM deployment, reducing management effort by 40%. Organizations can more easily monitor and maintain their SIM networks without the need for onsite visits. Organizations also were no longer required to physically extract data from SIMs or the systems they connect to for information such as passenger information systems, or destination and route information, due to the platform’s data and reporting capabilities, saving $134,694 over three years.
- Cheaper and more predictable monthly operation costs, saving $145,033 over three years. Arm’s clear and transparent pricing lets organizations accurately forecast monthly costs, and Arm’s services are cheaper than previous solutions.
The interviewed organization(s) experienced the following benefits which are not quantified for this study:
- Flexibility and technical expertise. Arm’s technical expertise allows it to be flexible and work with customers on unique or challenging projects.
Key Investment Drivers And Results
The interviewed organization(s) shared the following investment drivers:
- Poor connectivity or lack of signal in certain locations. Interviewed organizations found that with their previous, single-provider solutions, SIMs would sometimes lose signal or not cover a geographic location. This directly impacted the organizations’ bottom lines and provided a poor customer experience when services were not working properly or unavailable in certain areas. Transportation vendors noted they work in a variety of locations across relatively large geographic areas with a variety of topography, which, with previous providers, impacted the reliability of the transportation vendor’s connectivity.
- Poor customer experience, inconsistent billing practices, and inability to deliver on promises. Interviewed organizations reported that their previous providers simply did not live up to what was promised in terms of support, services, and costs. This negatively impacted the transportation vendors themselves, but also impacted the services they could offer to their end customers.
- Clunky, difficult-to-manage, manual processes for maintaining and extracting data from SIM cards. Previously, when organizations needed to push or pull equipment data they had to physically visit the site. Additionally, any issues with SIMs not only took a long time to discover the issue, but once discovered, the organization had to send a field technician to the device to troubleshoot and resolve the issue. A project manager in the transportation industry explained that previously, staff would have to physically go to each vehicle and manually retrieve data like passenger information or destination information. In addition, because the fleet was in use during the day, they would have to do this during off hours, very early in the morning, across the entire fleet – one at a time. Due to the laborious nature of this task, they could only collect the pertinent data a few times a year: “Processes used to be manually intensive. A technician would have to go around and visit each vehicle with a USB stick and then transfer all the necessary files.”
With no central view of all deployed SIM cards, issues would only be discovered during monthly system audits, or if reported by a customer. A project manager in the transportation industry explained, “Previously a problem may go weeks without discovery unless somebody tweeted about it; of course, we would then go check immediately, but it was not ideal.”
The interviewed organization(s) achieved key investment results:
- Significantly reduced management and maintenance effort of team. Interviewed organizations were able reduce the time that IT workers spent monitoring and maintaining the SIM network, as well as reduce the number and frequency of site visits for field technicians. With the Pelion Connectivity Management platform, transportation vendors could easily detect, understand and address any issues with ticketing machines, Wi-Fi connection or other end points right away without the need for an onsite visit.
- Improved reliability, scalability and better control over network. With Arm, interviewed organizations experienced fewer service disruptions and SIM issues and also had better visibility and control over their networks. The transportation vendor was especially interested in improving the reliability of their ticketing and Wi-Fi capabilities to improve their customer experience, and see less complaints regarding these issues with Arm. Transportation vendors found Arm to be easily scalable as their fleet size increased. In addition, with access to Pelion Connectivity Management, transportation organizations can easily see right away if any SIM or connected system is not working as expected and address remotely to minimize impact on their fleet.
- Predictable monthly running costs. Interviewed organizations liked the fact that with Arm, their service contracts were clear and predictable, and were not impacted by overages and penalties suffered under previous services.