Enhancing Technician Productivity Online: A Look One Year Later

1. Enhancing Technician Productivity via the Internet -- One Year LaterSAE Service Technicians SocietyMarch 2, 1999 Mike Baird Chief Technology Officer -- Snap-on Diagnosticsemailmikebaird@snaponcto.com or mikebaird@mikebaird.comweb sites http://www.snaponcto.comhttp://www.snaponsolutions.com * http://www.mikebaird.com * (*This presentation is posted on the above sites) Snap-on Diagnostics1920 Zanker RoadSan Jose, CA 95112 (408) 954-0343 x301 Mike Baird, Snap-on

2. What’s Changed? • 50% of all US households now have a PC, up from 43% in 1997*, and 27% in1995*Dataquest, San Jose, CA • 23%* to 30%** of households regularly use the Internet, and that will soon be 50%-70% (in 2-3 years)* Ladenburg Thalmann **Oppenheimer’s Henry Blodget • Technician use of the Internet has increased about 50% from 1997 to 1998 Mike Baird, Snap-on

3. What’s Changed? (cont.) • Joe, the tow-truck driver recently bought an island (actually, it’s a country) for his home -- by trading stocks online, yet he remains a service technician because he “likes to help people”Courtesy, TV commercial by Discover Direct Brokerage Mike Baird, Snap-on

4. New Things Technicians do Online • Buy tools http://www.toolsource.comhttp://www.kobalttools.com/ • Seek advise http://www.mymechanic.net/ , get TSBs... http://www.alldata.com/pro/TSB/yr.html • Buy re-furb, used, hard-to-find parts http://www.allnone.com/yards.htm • Learn new skills http://www.asecert.org/ • Find new jobs http://autocareernet.com/ • Communicate with customers (e-mail) • Participate in their technical community http://www.i-atn.com/interactive forums, live conferencing, technical resources Mike Baird, Snap-on

5. ServiceCustomer Parts Supplier Technician Shop Scheduling RemoteHelp The Internet continues to become a means of essential communication -- more than just a source of technical information... Web Sites: http://www.i-atn.com/ http://www.snapondiag.com/ ... Mike Baird, Snap-on

6. Technicians are Getting More Connected • PC Usage in Repair Shops continues to rise • 57% to 60% of repair shops owned a PC Q1 1997 vs. 49% in 1994* • PC literacy is high among technicians • 45% to 48% of technicians used a PC on the job* in 1997 • 72% of technicians used a PC at home or at work** in 1997 • 23%*** to 26%** of technicians used the Internet**,*** and 33% had web access*** in 1997; in 1998 50% had web access • 17% used e-mail*** in 1997; 25% in 1998 * Snap-on phone survey of 2000 repair shops across U.S., including all eight major customer segments, conducted Jan-Mar 1997 ** Babcox, Publishers of Brake & Front End, BodyShop Business, Underhood Service *** Survey of 500 Snap-on ADS customers, Oct. - Dec. 1997 Mike Baird, Snap-on

7. PC utilization in repair shops Shops thatown a computer 60% Shops that do not own a computer 40% Techniciansuse the PC on the job 80% Technicians do notuse the PC on the job 20% How is the PC used by the technicians? “Problem-solving” 50% Information system 42% Parts lookup 8% Invoicing 9% Repair orders 4% 1998 Phone survey conducted by Snap--on for Mitchell, 1500 random nationwide general repair shops, specialty repair shops, tire dealers, and gas stations Mike Baird, Snap-on

8. Technicians are Getting Connected (cont.) • Internet access is growing, but not yet pervasive in repair shops • Up from 4 %*** earlier, 15%* of shops had Internet web access in 1997; 22% in 1998 • 8% - 12.5% of technicians used the Internet (either at work or home) in work related activity** in 1997; 38% in 1998 • 51% of technician Web users use the Web to access automotive information***; 55% in 1998 Mike Baird, Snap-on

9. PC technology and connectivity 1998 Phone survey conducted by Snap--on for Mitchell, 1500 random nationwide general repair shops, specialty repair shops, tire dealers, and gas stations Shops thatown a computer 60% Shops that do not own a computer 40% Shop computersconnected by a network 30% Shop computers not networked 70% Shop has internet access 25% Shop doesnot have internet access 75% Mike Baird, Snap-on

10. Becoming Available... • Automatic software and data updates for service equipment • Alignment, Analyzer specifications • Technical Service Bulletins • Model Year updates • Remote control of Analyzers, Aligners, Shop Management Workstations (ReachOut, PCAnyWhere, NetMeeting, HipBONE…) • Automated CD updates (Marimba, “Push”) Mike Baird, Snap-on

11. In the Pipeline... • Remote diagnostics via Internet (of both service equipment and vehicles being serviced) • Application sharing, robust remote control • Video conferencing • “Whiteboarding” and other electronic collaboration • Computer-in-the-car initiatives (many) Mike Baird, Snap-on

12. Q1 1999 Survey Resultsof 416 customers • The following slides are courtesy of Jeff Ellis at Snap-on Diagnostic’s TechCenter (ADS) • jeff.ellis@snapondiag.com • 1-800-758-5853 Mike Baird, Snap-on

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22. Conclusion The trend for the future should be clear… there will be hiccups along the way, but the Internet is growing faster than anything before… and will continue to impact our lives more than any other influence in history. Mike Baird, Snap-on