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Case History : Maximizing SFA Asset Utilization

Case History : Maximizing SFA Asset Utilization. Presented by Greg Umstead Senior Partner Everest Field Technologies. Situation. Large Pharmaceutical Customer experiencing loss of field productivity due to: High notebook failure rate—near 14%/month

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Case History : Maximizing SFA Asset Utilization

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  1. Case History : Maximizing SFA Asset Utilization Presented by Greg Umstead Senior Partner Everest Field Technologies

  2. Situation • Large Pharmaceutical Customer experiencing loss of field productivity due to: • High notebook failure rate—near 14%/month • Excessive break-fix turnaround time with current Asset Management vendor

  3. Additional Complications • 25% Field force expansion in progress • Complete notebook Refresh in Planning to replace aging notebooks • Existing Asset Management Vendor abruptly declared bankruptcy!

  4. Presentation Summary • The following presentation reviews • Background Information • SFA ROI & Opportunity Cost • Everest Program details • Economic benefits provided

  5. Technology Refresh Definition • 3000 Compaq™ Notebooks at end of useful service life • Out of Warranty • High Failure Rate • Nearing Lease End • Initial estimate of 12 months to complete replacement with Dell™ Notebooks

  6. Calculating SFA ROI • US Revenue = $7 Billion (R) • US Field Consultants = 3000 (c) • Workdays = 240 (w) • Sales/Rep/Day = $9,700 (R/(c*w))

  7. SFA ROI For what % is SFA Technology Responsible?

  8. SFA ROI Dependencies • ROI depends on hardware performance & reliability • ROI depends upon currency of installed software • ROI depends upon accuracy of distributed data • …Field depends on SFA

  9. Opportunity Cost vs. ROI • Not “What Value Added by…” • But “What Opportunity lost due to outage?” • Impact of unplanned SFA outage (notebook failure) on daily sales? • Heuristic = 50-60%

  10. Opportunity Cost • Productivity impact of surprise laptop failure? • Lost SFA usage cost = $4,850 per day • Annual opportunity costs were $25M • 371 events/mo X 12 mos X $4850/day • 86% 1 day outage • 12% 2 day outage • 2% 3 day outage

  11. Everest Solution—Part 1 • Retrieve Asset Inventory (2 days) • Establish Temporary Build Facility to meet Expansion Demands (4 days) • Establish Temporary Break-Fix Services (5 days) • Reestablish All Baseline Services (3 weeks) • Eliminate Service Interruption Backlog (8 weeks)

  12. Everest Solution—Part 2 • Initiate program to minimize time out of field for Break/Fix Services • Initiate program to minimize time out of field and Project Duration for Refresh

  13. Service Components • Asset Retrieval • Inventory Management • Standard & Ad Hoc Reporting • Warranty/Non-Warranty Repair • Configuration & Customization • Extensive QA/QC Processes • Field Deployment

  14. Everest Service Results • Turn around time was reduced for each task as follows: • Break/Fix • Was ~ 86% 1 day, 12% 2 day, 2% 3 day • Now ~ 95% 1 day, 5% 2 day • Refresh • 3000 Notebooks completed in 10 weeks vs. 12 months • 9.5 months of reduced failure rate

  15. Comparison – 12 Month Refresh

  16. Comparison – 10 Week Refresh

  17. Opportunity Cost • Given SFA failure cost of $4,850/day • Annual Cost: $25MM • 4455 annual notebook days out-of-field • Annual Cost—12 mo Refresh: $14.8MM • 3072 annual notebook days out-of-field • Annual Cost—10 wk Refresh: $8.7MM • 1809 annual notebook days out-of-field

  18. Summary • Everest reduced annual notebook failures by accelerating refresh • Everest reduced time-out-of-field by shortening turnaround time • Everest simultaneously minimized service Interruption due to vendor bankruptcy

  19. Opportunity Cost Savings • Accelerated Refresh • Reduced notebook Days Out-of-Field from 3052 to 1809 • Shorter Time Out-of-Field • 95% Same Day Turnaround vs. 86% • Total Opportunity Cost Savings • $6MM over 12 month refresh • $16.2MM over CANCELLED refresh

  20. Message • Your SFA Investment is large • Calculating SFA ROI is complex • Don’t lose sight of “parasitic” losses of ROI • Maximize Potential ROI through • Faster break-fix turnaround • Expedited technology refresh

  21. Summit Sherpa Expedition Lifeline Basecamp Everest SFA & CRM Services • Basecamp™ Asset Management Services • Expedition™ Roll-Out & Field Deployment Services • Lifeline™ Help Desk Services • Sherpa™ SFA/CRM Technical Experts • EverestSummit™ Integration & Project Management Services

  22. Contact Everest www.everestcrm.com Solutions@ucmnet.com John Hess Business Development Mgr 610-565-9806 Taking SFA & CRM Services to New Heights

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