Thursday, August 20, 2009

Orion Security LSP


I recently ended my tenure at a small GPS Fleet Management & Tracking Technology company and accepted an exciting opportunity to become VP of Sales at another one. The industry is populated with a lot of very small players, few with much market share or name recognition. At the same time, the concept of "GPS tracking" is becoming mainstream in all walks of life -- vehicles and other assets, loved ones, employees, pets, to name a few. However, the space I have been focused on has primarily involved vehicle fleets.

In m first month with my new organization, Orion Security LSP, I have learned a great deal about the obstacles I faced in the industry prior to being here. Many potential customers said to me that they had a hard time seeing the return on investment concept. The reason is, most providers have some sort of web-based user interface (some good, some not so good) where the customer can log on and see their vehicles and some basic associated location information. They can also obtain a variety of canned reports that they must "pull" from the available data. What often results is a busy manager becoming overwhelmed with piles of data that don't mean that much to him or her and an overwhelming feeling that obtaining it and trying to understand it can become another full time job. They therefore tend to shy away from the project and the technology becomes nothing more than an occasional "we can see where our vehicles are". It is no wonder that in those cases the business owner/manager looks at the hardware and monthly service costs and questions the value proposition.

The reason I came to Orion is because they take a completely different approach. They spend a lot of time up front gathering information from the client -- what are their issues/problems that they hope to solve?, what do they expect the information to provide to them?, what is the most efficient way to deliver useable information to the appropriate people?, etc. Orion then goes to work developing custom tailored reporting solutions that are prepared FOR the client that are "pushed" across to them in a seamless manner so they can operationalize them into the running of their daily business. This drives maximum ROI in terms of cost savings, incremental revenue from increase productivity, and reduced risk from driver compliance programs. It is not unusual to see $200-$300 in cost reduction per vehicle per month and dramatic increases in revenue per vehicle per month from the routing optimization efforts.

The bottom line is that clients already have their plates full in this economy just running their own businesses -- they don't need another job running their GPS technology systems. Orion solves that issue every time.

Monday, August 10, 2009

Retail sales


Spend or Save?
Last week it was announced that retail sales dropped 5.1% in July, sending yet another mixed message on the economy. All indications are that the recession has ended, but it is clear that the rebuild may be very slow.

Two-thirds of U.S. economic activity are derived from consumer spending. I do not see how that can continue in the wake of layoffs, declining home values, and all of the other negative economic news of the last year. A shift is going to need to happen, and one would assume that the massive amount of governement spending going on will accomplish that.

But it raises a question. During the easy-credit-fed economic boom of the previous 8 years, experts expressed concern that the U.S. savings rate was among the lowest of the industrialized nations. So which is it? If we are supposed to be better savers, how can it be that we also need to be spenders to drive the economy? U.S. Government seems to be speaking out of both sides of its collective mouth when it preaches need for increased savings while at the same time issuing checks to everyone and asking us to go buy TV's, cars, appliances, home improvements, etc.

If we do a better job of saving, who is going to do the spending?