Market Research Report :Enterprise Mobility market in India 2012

Enterprise Mobility Market IndiaEnterprise Mobility Market – India

June 2012

Executive Summary

Market

Enterprise Mobility Market in India is currently witnessing a major boom and is expected to grow even further with the advancement of newer and better technologiesMarket size for enterprise mobility was valued at INR xx bn in 2011 and is expected to grow at a CAGR of xyz% to reach INR zz bn by 2015Th k t l i i ifi t t ti f th f SMB h i SMB

MarketMarketMarket

Currently, there is a wide array of mobile technologies available in India which facilitate better, efficient and secured mobility Essential components of enterprise mobility solutions mainly comprise of operating systems,

The market also gains a significant traction from the presence of SMBs, wherein SMBs are expected to hold a share of zz‐xx% during 2011 to 2015

h lp p y y p p g y ,

programming code and relational databases, which provide a platform for the flow of data and information over the internet Protocols and format for data transfer coupled with connectivity tools happens to be equally important aspects as well

Technology Used

Drivers Challenges

Role of Cloud Role of Cloud Drivers &

DriversAbundant Presence of Handheld Devices Continual Replacement of Office PCs with laptops/ Netbooks Roll out of High Speed

Challenges Security ConcernsDevice Compatibility

in Education

i iMajor Enterprise Mobility Players

in Education

i i

ChallengesRoll out of High Speed Connectivity Low Data Access ChargesDeclining Hardware Prices

2ENTERPRISE MOBILITY MARKET ‐ INDIA 2012.PPT

Competitionj p y y

Motorola Mobility Holdings Inc Infosys HCL Technologies Microsoft CorporationCompetition

• Introduction• Enterprise Mobility Market ‐ Overview• Areas of Implementation • Technology Used•Major Solutions & Services• Major Solutions & Services• Drivers and Challenges• Industry OutlookIndustry Outlook• Enterprise Mobility Players• Sales Intelligence• Case Studies• Strategic Recommendation


• Appendix

SAMPLE An example of enterprise mobility architecture

Regional Offices Portable Internet Enabled Devices

Enterprise Servers

Corporate Headquarter

Admin Console

Enterprise Servers

InternetAdmin Console


Warehouses

SAMPLE Enterprise Mobility Ecosystem

SmartphonesBasic Feature Phones

T bl t PCPDAs

Tablet PCsLAN WLAN

E‐mail Sales force Enterprise M t GPRSEDGE

WiMaxLTE

Management Management Applications

Finance & A t

Web 2.0 Apps Human Resource M t

Android BlackberryCDMA 3G/ HSDPA

WiMaxLTE Accounts Management

Symbian iOS

Ph i l I t f


Physical InterfaceConnectivityEnterprise Mobility Applications * The list is not exhaustive

Enterprise Mobility Market (EMM) in India is witnessing strong growth and is poised for massive adoption

• Rising need to access enterprise data on the move and bring about more flexibility so as to gain competitive edge in business, is driving the EMM in India by manifolds

l h b l h l l d b h k

Enterprise Mobility Market – Overview

SAMPLE Extensive evolution in the mobile technology space primarily supports and boosts the market

Handheld devices such as Smartphones, PDAs and Tablets are utilized to access data and other information directly from any location anytime

•Owing to the fruitful characteristics such as increased efficiency and productivity, enterprise mobility finds continual increase in adoption amongst several industries SAMPLE p g Retail and Banking, Financial Service and Insurance (BFSI) industries tops the list of key enterprise mobility adopters followed by Pharmaceuticals, Transportation and Logistics industry

It also holds adoption potential within sectors including Healthcare, Defense, Aviation, Energy Utility and Telecom wherein, technological advancement will further shoot its adoption

Enterprise Mobility – Market Size & Growth

INR bn

a

Enterprise Mobility – Split (2011‐12)

35%

yx

b

c

d

e

xyz

65%

35%


0

2015e2014e2013e2012e2011

SAMPLE Enterprise Mobility Implementation – Business Functions

Organizations looking for EM adoption should primarily focus on the below listed business areas with respect to their priority

Low Medium HighParameters

Function 1

Function 2

Function 3

Function 4

Function 5

Function 7

Function 6


Function 7

Priority

SAMPLE Enterprise Mobility Benefits – Post Implementation

Key drivers boosting mobility adoption amongst organizations can be illustrated as below:

High Priority, High Impact

Benefit 1

Benefit 2e e

Benefit 3

Benefit 4

Benefit 5Organizations implementing

enterprise mobility are subjected to a

wide array of substantial benefits


Low Priority, Low Impact

SAMPLE Enterprise Mobility Demand – Business Function

The enterprise mobility market will witness a strong pull from some key departments within an organization

Current Scenario Planned for Next 2‐3 Years

DemandDemand

Departments such as xxx and xxx within an organization will bring forth the maximum demand for solutions which can

iggfedcba


Departments such as xxx and xxx within an organization will bring forth the maximum demand for solutions which can mobilize their business processes

SAMPLE The sizeable presence of SMBs infuses tremendous growth in the overall EMM in India

Enterprise Mobility SMB Market – Overview•With a massive presence across key industry verticals, the Small and Medium Businesses (SMBs) provide a significant thrust to the EMM in India

•Off late with the emergence of affordable handheld devices, wireless internet cards, data plans and hosted applications, mobility adoption amongst SMBs has been stimulated further

• Advanced calling features coupled with the instant messaging options makes Smartphones and Tablet PCs the prime choice

• SMBs in India will continually provide splendid opportunities for enterprise mobility vendors in the ensuing years

Custom made products and solutions will find the most demand amongst Indian SMB market

Enterprise Mobility SMB – Market Size & GrowthINR bn

a

b

cXyz%

c

d

0

2015e2014e2013e2012e2011

10

Market size figures for the SMBs have been derived assuming the fact that a SMB has procured at least one smart handheld device

SAMPLE Some trends and challenges identified in the SMB market

Some enterprise mobility trends

Social Media Marketing

Payment & Billing Management]

Some enterprise mobility trends witnessed amongst SMBs are as

follows:

Business AnalyticsBusiness Productivity

SuiteSuite

Cost & Complexity Issues

Management & Employee Problems

Enterprise mobility challenges ‐

Network & Device Failure Issues

Security Factor

Enterprise mobility challenges Small and Medium Business


SAMPLE Current, enterprise mobility market is flooded with a wide range of solutions and services

Major enterprise mobility solutions and services based on its popularity in India

Rank 2 Solution 2

Rank 1 Solution 1

Rank 5 Solution 5

Rank 4 Solution 4

Rank 3 Solution 3

Rank 6

Rank 7 Solution 7

Solution 6

Rank 10 Solution 10

Rank 9 Solution 9

Rank 8 Solution 8


Rank 10 Solution 10

SAMPLE Presence of flourishing handheld devices market is primarily supporting growth of EMM in India

Abundant Presence of Handheld Devices Impact

•The booming Smartphone and Tablet PCs market in India happens to be one of the major drivers for the EMM

Primarily, increasing affordability and consumerism amongst Indians is paving way for Smartphones and Tablets in India

• Smartphones and Tablets are the primary devices used by enterprises for facilitating mobility amongst its employees

Mobile Phone Market – India 2012Smartphone Market – India

2012Smartphone Market – Growth

& Size

• Further developments in the smart handheld devices market will only strengthen the market in India which in turn will fetch in better growth prospects for the overall EMM

Operational MobileConnections Y %X %

SmartphonesNon‐Smart Phones

50%

100%

Units mnxyz

6,000

8,000

10,000

Units mn

abcConnections(2012e)

Yy%Xx%

0%

50%

2012e0

2,000

4,000

,

2016e2015e2014e2013e


•Although the trend of Tablets PCs is still at its nascent stage, it ahs still managed to show an impressive sales figure•As of now, the Indian Tablet PC market has witnessed sales of 1 lakh Tablets PCs / annum

SAMPLE Prevailing issues relating to the security of data happens to be a major challenge for EMM

•Security and data privacy poses as a major hindrance to the upliftment of the market in India

Security Concerns Impact

•Along with great flexibility, enterprise mobility also brings forth some critical areas which can be enlisted as:

Enterprise Mobility – Security Issuesp y y

Security of dataIt becomes mandatory for organizations configure proper security measures so as to handle security of data and information shared or transferred through the internet

P i l Vi /

Misplace/ Damaged devices

Incase of a misplaced or damaged device, there are high probabilities of permanent data loss or manipulation of data, which may hamper the company’s image

H dh ld d i i d l k d h i ll i f

Access control

Potential Virus / Malware attack

Handheld devices are prone to virus and malware attacks and hence installation of proper and valid security applications is a mandate

It becomes critical for organizations to regulate and administer proper access control of data at the end points of the system so as to prevent from any


Access control control of data at the end points of the system so as to prevent from anymalicious practice

SAMPLE Enterprise Mobility Industry Outlook (1/x)

•Common solutions implemented within BFSI (Banking and Financial Services Institutions), Pharmaceuticals and Construction comprise financial inclusion, loan recovery, collections, business intelligence and supply chain management

•People generally using EM amongst the aforesaid industries are sr. management and medical representatives

Industry 1

Sl. No. User Solutions / Business Functions / Users

1 User 1 Xxx, xxx,

2 User 2 Xxx

3 User 3 Xxx

Industry 2

Sl. No. User Solutions / Business Functions

1

2

Industry 3

Sl. No. User Solutions / Business Functions

1


2

* The list is not exhaustive

SAMPLE Firms opting for enterprise mobility can select from a wide range of hardware and software players in the market•EMM in India is flooded with players and manufacturers of both these devices and applications which run on them, some of them are enlisted as below:

Smartphone / Tablet PC Manufacturers

X X X X

X X X X

Major Hardware Vendors

Middleware Players

X X X X

X X X X

Major Middleware

PlayersX X X X

Major ISVs / SIs / VAR and Professional Service providers

X X X X Key ISVs/SI/VAR & Professional

S i P id

Players

X X X X

Key Network and Telecom Support Providers

X X X X

Service Providers

Major Telecom


X X X X

Major Telecom Players

SAMPLE Major Public Companies ‐ Summary

110,000

120,000

130,000

Net Profit/Loss

Size of the Bubble represents Market Capitalization in INR mn

70 000

80,000

90,000

100,000

0,000

1,268,326.8

262,912.8998,516.1

30 000

40,000

50,000

60,000

70,000

9,673.1262,089.7

0

10,000

20,000

30,000

262,089.7‐10,000

‐100,000 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000

Total income

edcba


Note: All figures are in INR mn and are based on the latest financials available

SAMPLE Public: Domestic Company – Player A (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

f i

Noida

Year of Incorporation

Ticker Symbol

Stock Exchange

Key People

Products and Services

Category Products/Services

Head Office

Name Designation


SAMPLE K ii i l S h

Public: Domestic Company – Player A (2/3)

Key Ratios

Net Profit / Loss

Total Income

INR bn

4

INR bn

150 2.42.43.0

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin ‐0.76 2.13% 2.89% 3.42% 3.76%

Financial Snapshot

3

2

1

0

100

50

02011

1.7114.8

2010

120.9

2009

122.7

2008

122.7

Net Margin ‐0.54 1.46% 2.00% 1.96% 2.47%

Profit Before Tax Margin ‐0.87 2.00% 2.86% 2.86% 3.53%

Return on Equity ‐4.01 8.80% 12.81% 21.39% 30.24%

Return on Capital Employed ‐4.91 9.71% 14.62% 31.25% 45.82%

Return on Working Capital ‐3.70 7.89% 11.59% 20.81% 36.18%

Return on Assets ‐1.35 3.58% 4.94% 7.14% 9.89%

Financial Summary

• The company incurred a net profit of INR 1.7 bn in FY 2011, as compared to net profit of INR 2.4 bn in FY 2010

• The company reported total Income of INR 114.8 bn in FY 2011, registering a decrease of 5 05 per cent over FY 2010

Return on Fixed Assets ‐32.13 56.83% 88.97% 132.15% 187.21%

Cost RatiosOperating costs (% of Sales) 0.76 97.86% 97.10% 96.57% 96.24%

Administration costs (% of Sales)

1.47 7.00% 5.53% 4.83% 4.49%

Interest costs (% of Sales) 0.37 0.70% 0.33% 0.36% 0.39%registering a decrease of 5.05 per cent over FY 2010

• The company earned an operating margin of 2.13 per cent in FY 2011 a decrease of 0.76 percentage points over FY 2010

• The company reported debt to equity ratio of 1.46 in FY 2011, a decrease of 8.66 per cent over FY 2010

Interest costs (% of Sales) 0.37 0.70% 0.33% 0.36% 0.39%

Liquidity RatiosCurrent Ratio 8.12% 1.98 1.83 1.57 1.41

Cash Ratio 26.98% 0.17 0.14 0.25 0.27

Leverage RatiosDebt to Equity Ratio ‐8.66% 1.46 1.59 2.00 2.06

b lFinancial Summary

Indicators Value (dd/mm/yyyy)

Market Capitalization (INR) 9673.1

Total Enterprise Value (INR) 10022.3

Debt to Capital Ratio 27.95% 0.24 0.19 0.17 0.26

Interest Coverage Ratio ‐65.48% 3.08 8.92 9.40 9.68

Efficiency RatiosFixed Asset Turnover ‐12.75% 38.59 44.23 67.48 75.76

Asset Turnover ‐0.88% 2.43 2.45 3.64 4.00

Current Asset Turnover 1.37% 2.65 2.61 3.86 4.24


EPS (INR) 3.67

PE Ratio (Absolute) 11.44Working Capital Turnover ‐7.04% 5.36 5.76 10.63 14.64

Capital Employed Turnover ‐6.15% 5.98 6.37 10.92 12.24

Improved Decline

SAMPLE Public: Domestic Company – Player A (3/3)

Key Business Segments Key Geographic Segments

cbac

b

d

a

0.7%31.2%

68.2%

0.6%29.1%

70.3%

0.4%27.7%

71.9%

0.3%26.3%

73.4%

4 7%13 2%

27.0%

55.0%

15 3%28.3%

56.5%

%29.2%

54.4%

15 9%30.2%

53.9%

Key Recent Developments

Description News

20112010200920082011

4.7%13.2%

2010

15.3%

2009

16.4%

2008

15.9%

Description News

Overview

New business


SAMPLE Major Private Companies ‐ Summary

1,000,000

1,200,000

Net Profit/Loss

Size of the Bubble represents Total Assets in INR mn

5,875,457

43 056 862

2,724,500

400,000

600,000

800,000

43,056,862

200 000

0

200,000

52,4375,513

11,825

14

‐600,000

‐400,000

‐200,000

‐800,000

‐4,000,000 ‐2,000,000 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000

Total Incomecb gfeda


Note: All figures are in INR mn and are based on the latest financials available

SAMPLE Private: Foreign Company – Player B (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.


Website

Year of IncorporationHead Office

Bangalore

Key People


Category Products/Services

N D i ti

Bangalore

Name Designation


Note: The list of products and services is not exhaustive


i i l S h K iFinancial Snapshot Key Ratios

Particulars y‐o‐y change (2010‐09)

2010 2009 2008 2007

Profitability RatiosOperating Margin ‐5.76 6.47% 12.23% 11.66% 18.53%

Net Profit/LossTotal Income

20880 920821.825000 1500

INR mnINR mn

Net Margin ‐0.32 6.27% 6.59% 6.25% 7.77%

Profit Before Tax Margin ‐5.80 6.27% 12.07% 11.51% 18.39%

Return on Equity ‐1.35 11.37% 12.73% 9.61% 7.58%

Return on Capital Employed ‐6.85 50.11% 56.96% 28.84% 23.46%

Return on Working Capital 9.74 34.31% 24.57% 15.31% 8.96%

Return on Assets 0.34 11.07% 10.73% 8.22% 6.56%

20880.920821.8

5000

10000

15000

20000

25000

500

1000

1500

14462.18316.8

Financial Summary

Return on Fixed Assets ‐5.08 20.95% 26.02% 20.62% 47.94%

Cost RatiosOperating costs (% of Sales) 5.76 93.53% 87.77% 88.34% 81.47%

Administration costs (% of Sales)

0.00 0.00% 0.00% 0.00% 0.00%

Interest costs (% of Sales) 0.04 0.20% 0.16% 0.15% 0.14%

0

5000

02010200920082007

• The company incurred a net profit of INR 1309 mn in FY 2010, as compared to net profit of INR 1371 mn in FY 2009

• The company reported total income of INR 20880.9 mn in FY 2010, as compared to INR 20821.8 mn in FY 2009

Interest costs (% of Sales) % % % %

Liquidity RatiosCurrent Ratio ‐15.18% 1.42 1.67 2.15 3.20

Cash Ratio 29.15% 0.04 0.03 0.02 0.02

Leverage RatiosDebt to Equity Ratio 13.25% 0.03 0.02 0.02 0.02

b i l i• The company earned an operating margin of 6.47 per cent in FY 2010 a decrease of 5.76 percentage points over FY 2009

• The company reported debt to equity ratio of 0.03 in FY 2010, an increase of 13.25 per cent over FY 2009

Debt to Capital Ratio 12.90% 0.03 0.02 0.02 0.02

Interest Coverage Ratio ‐57.69% 32.24 76.21 78.42 134.27

Efficiency RatiosFixed Asset Turnover ‐15.45% 3.34 3.95 3.30 6.17

Asset Turnover 8.37% 1.77 1.63 1.32 0.84

Current Asset Turnover 7.59% 1.61 1.50 1.31 0.79


Working Capital Turnover 46.66% 5.47 3.73 2.45 1.15

Capital Employed Turnover ‐6.13% 1.81 1.93 1.54 0.98

Improved Decline


Business Highlights

Description News

Overview

Clientele


SAMPLE Strategic Recommendations

Being completely technology oriented, implementation of enterprise mobility requires immense xyz and demands constant abc

xxx xxx

• xxx • xxx

xxx

• xxx


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