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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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