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Business on the Move - the Centrica Survival Guide:
Maintaining Competitive Advantage with Next
Generation Mobile Solutions
David Viney, Technical Lead,
Centrica e-Business Programme
David Viney 07979.567.690
1/16
What is Centrica?
People at home
People on the move
Our vision is to be a leading supplier of essential
services in our chosen markets.
2/16
Who are our Mobile Communities?
approx. HRL/Power
British Gas
18,500 Trading Field
Stations
People Sales Team 20
2500
(of which 3500
approx. 14,000 AA Roadside
are Centrica Patrolmen
staff)
1500
AA Driving
6100 Instructors
British Gas
Service
Engineers 600
AA Tyreserve, Vehicle
Inspectors, Hotels &
Restaurants, Signs,
Roadwatch, Mobility, etc.
250
B2B
2000 Sales
British Gas
Services 650 300 1032
Installation British Gas Debt Centrica
Services Collectors North
Sales America
3/16
A culture of innovation
1905
The AA begins at a meeting of motoring
enthusiasts at the Trocadero restaurant in
London's West End. Original objectives?
To help motorists avoid police speed traps!
1949
The introduction of two-way radio after the Second
World War saw the launch of a night-time AA
breakdown service in the London area, which was
gradually extended to cover most of Britain.
1998
93% of emergency calls answered in <15 seconds;
call-to-arrival time only 35 minutes; 84 per cent of
vehicles fixed at the roadside. JD Edwards annual
rankings begin. We have since won 4 out of 6.
Where next?
4/16
Investment in our people
1995
First generation of laptops for our British
Gas engineers. 6,000 units of ruggedised
Panasonic CF-42s. First in the UK to put
out a field system of that scale.
1999
Second generation – the Panasonic CF-27, with an
Olivetti JP90 printer. Engineer is allocated (and
accepts) jobs via GSM. Faults and diagnostics logged
on the laptop and a report completed on site.
2003
Third generation – the Panasonic CF-18 „Toughbook‟,
which includes a detachable tablet solution (great for
sales teams). By now we print over 14 million sheets
of paper in customer homes each year!
Where next?
5/16
Where next?
Ever more competitive landscape
Competitors are always hard on our heels
and with many new market entrants, this
only gets harder. We have to raise our
game again and re-define the standard.
We apply our philosophy…
A passion for our customers and providing ever
better service. Challenging ourselves to be faster,
better and more efficient. Supporting our people with
the tools they need to do their job.
And manage for value…
Value-based-management implies allocating assets and
resources towards the areas of greatest opportunity. We
will weigh up opportunities based on the facts, trusting
our colleagues and taking pride in our decisions.
6/16
Managing for Value
MfV implies allocated assets and resources towards the areas of greatest opportunity.
Currently, mobile & front-line areas have the greatest concentration of cost and FTEs
Opex 350
£‟000s Cus tom er
vis it Customer visit
300
250
200
Market Products /
Services
150 Sell/Renew In-bound
Products calls
Manage IS
100 AA British Gas OneTel Goldfish
50 HR Manage FTEs
Manage
Activities Finance Training
0
Customer
FTEs
14000
visit In-bound calls
12000
10000
8000
In-bound
6000
calls
Sell/Renew AA British Gas OneTel Goldfish
4000
Products
Manage
Market IS
FTEs
2000 Manage Manage
Products/ HR Finance
Services Activities Training
0
7/16
Strategic Context
There is a prize to play for with our mobile community. In fact, our investments
to date have only scratched the surface of what is possible!
Customer Benefits of Scale
Relationships We have a large but
Good CRM requires fragmented mobile
consistent customer Maintain FTSE Top Quartile workforce. We should
treatments and TSR Performance be able to realise
superlative service synergies through
across all customer
Maximise value of customer relationships pooling their
within UK and appropriate overseas markets:
touch points! We requirements,
need to extend our Develop purchasing power,
CRM model to the multi-product systems and
Exploit & innovative Realise
18,000 Centrica distinctive customer benefits
processes
people who touch the capabilities propositions of scale
customer physically
NEW WAYS OF WORKING New Ways of
each day.. our mobile
Working
workforce!
ORGANISATION & RESOURCES Many field processes
Innovation are very manual and
PROCESSES there are data re-
By investing in such
keying and other
systems, we will SYSTEMS inefficiencies. We
continue to delight
should aim at right-
the customer by out-
first-time processes,
innovating our
that capture data in
competitors and A simplistic overview of the Centrica strategy the field. Hard FTE
continuing to drive
savings and growth
up our fix rates and
avoidance the
up-sell / cross-sell
prize.
rates
8/16
The Mobile Technology Vision
1
A networked enterprise of, by and for the people
No disenfranchisement. All our people have access to the same system
solutions, including our highly valued and cherished mobile workforce.
2
All of the information and systems I need to do my job…
Information that is (a) timely, (b) relevant and (c) reliable (with a single view of the
truth) and customised to my particular role needs, implying a fully networked,
web-services based target architecture, served from a central intranet web
farm, with real-time interfaces to enterprise and legacy systems.
3
…in one place, easily accessible and ready to use
Everything our mobile staff need can be accessed from their laptop, through a
single, simple thin-client browser. Connections are (a) fast, (b) reliable and
(c) low cost, giving a satisfying overall user experience. I can access from
anywhere and at a time of my choosing.
9/16
A holistic view of our people’s needs
Connectivity is the common element
Employee Incentives & Commissions Technical Helpdesk Employee
Satisfaction Communication
Rewards & Benefits Company News & Information
and Morale
Employee Discounts Track the Share Price
Employee Clubs Look up a Colleague
Social Interaction Look up a Team
Corporate
Book Leave Remote Learning & Training Belonging
Taking
External News
Life Enterprise Technical Manuals
Care of our
People Traffic News Claim Expenses
Contact Mates Request Overtime
CONNECTIVITY Job Scheduling
Campaign Information
Job Dispatch
Pricing Changes
Progress updates
Instant Messaging Collaboration Tasks Diagnostics Increased
Knowledge Productivity
Find an expert Results / Reports
Capture &
Parts Ordering
Sharing Knowledgebase
Field Sales
Hints and Tips Invoices & Receipts
Suggestion Box Credit Card Authorisations
Employee Route Guidance Improved
Continual Opinion Poll Customer
Improvement Service
All of the information and systems I need to do my job, in one
place, easily accessible and ready to use
10/16
Barriers to Achieving that Vision Today
1
Coverage
The Classic Technology Conundrum: Not all of the UK has GPRS coverage. Plus,
connections drop when crossing cell
Timing is Everything!
boundaries and even within cells
£
High Cost of Disadvantage 2
Connectivity Cost
and poor
Not so long ago, providers were charging £20
usability
per Mb for GPRS connectivity. This is now
We are Economic at £1 per Mb, but this is still (raltively
Here Value speaking) still high cost when compared to
the good old-fashioned radio
3
Usability
The real issue of relevance. Cisco
reported from their trials that (a) 50% of
Competitive Low Costs & support calls related to connectivity and
Advantage better usability
(b) application take-up was disappointing.
Time Main issue was with connection speeds of
Optimum
Point to HTTP over GPRS, using a VPN
Invest
11/16
Now for the Good News
The longest journey begins with a single step
Fortunately, there are steps we can take today to (a) move towards this vision
that we all share and (b) make future steps towards the vision easier to take:
• Ensure that most or all applications • Install, as appropriate, GPRS, GSM,
are accessed on the laptop via a Bluetooth & Wireless technologies to
browser interface ensure that we can open up access to
• Build content and applications in a the intranet when feasible to do so
web framework (even if the • Build applications on the intranet to
servers have to reside on the be conserving of bandwidth, with
device), to make future migration to validation closer to the client (to
a centrally served solution easier enable them to be made available to
the mobile workforce sooner)
We are doing all of these things in Centrica
12/16
The Pragmatic First Steps
DATA
Web Farm
A W Laptop
D APPLICATION
Enterprise &
Legacy Systems Long-term Solution:
(e.g. SAP, AAHelp,
UCAD, WMIS, etc.)
Thin Client with intranet served from a
web-farm to a browser on the device
Data Centre
DATA Laptop
D A
W D
A
Enterprise &
Legacy Systems
(e.g. SAP, AAHelp,
UCAD, WMIS, etc.) Today’s Solution (AA, Gas etc):
Mainly Thick Client with (essentially) a
“mobile intranet” (resident on the device)
13/16
And so the vision unfolds
TODAY
The functionality
footprint expands
Mostly task focused More complete meeting of
experience for our people the needs of our people
The technical
Thick footprint evolves Thin
Client Client
Powerful Islands of A United Kingdom of
information & applications equal citizens
14/16
Our next (proposed) steps
– a comprehensive extranet
Journalists,
Suppliers,
Investors,
Partners &
Analysts
Service
Providers Government,
Regulators
intranet:
What we already have in
Centrica (Plumtree portal)
Current
Employees, Demilitarised Zone
Agency staff
& Contractors Web Layer
(e.g. accessing
from home) Application
Layer
Databases &
Legacy Systems
Future
& Past
Employees
extranet:
Securely exposing part of our intranet to
people accessing from outside Centrica,
over the internet
15/16
How does extranet help mobile?
As a large representative Giving access to intranet in the
sample of UK homes (with a field is currently not a viable user
slight bias towards A/B/C1 experience (and may not be until
demographic), just over 50% of 3G and 802.11 networks are
our Employees will have internet ubiquitous). But Extranet access
access at home. from home is viable today
Mobile
(based on Oftel Residential Key (60% of Plumtree clients use their
Trends - 02/02/03) Portals over the internet )
Extranet (as the
Intranet “bridge” to a mobile future)
Evidence from other leading
organisations, including BT, BA Early adopters can access
and Cisco is that people would Centrica news & information – and
take up the option to access the collaborate with colleagues – in a
Intranet from home, if presented. mobile community microsite
(27% of all access during the Cisco (encouraged if possible through employee
Mobile Trial was from home – PC / ISP discounts and tax breaks)
compared to only 10% on the move)
16/16
So, the Centrica Mobile Strategy
1
Short Term: Mainly thick client to the AA & British Gas
Reflecting the very real barriers to our vision that we face today…
But based on technologies and solutions that do not prevent us from moving to an
intranet / centrally served web-services based architecture in the future.
2
Medium Term: Extranet as the Bridge to the Future
Investment in Extranet during 2004, including the creation of a Mobile Community
Microsite. Possibly backed through employee discounts on ADSL and Internet
Access, plus a discounted Employee PC Purchase Scheme (with tax breaks
available to those with flexible benefits packages)
3
Long Term: A Ubiquitous Web-Services Solution
A central web-farm, serving all content and applications to the thin-client browser in
the office, at home and in the field. A single view of the truth, with relevant,
reliable and above-all timely information, that can be accessed quickly,
securely, reliably and at low cost.
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