NIMS 2011 Session3 Chandra G

8/2/2019 NIMS 2011 Session3 Chandra G

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Perspectives on EnterpriseMobility

CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited


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McKinsey & Company 1|

Key messages

Mobility is a game changer for largeenterprises; companies need to monitor

major discontinuities

Real-world adoption growing andcompanies beginning to deploy this at scale,healthcare, and fin services leading the way

For CIOs, decision on the mobility stackis the most critical


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What is enterprise mobility?

3. Debottleneckmobileapplicationspace

$2bn 19%

3. Vertical-specificmobile solutions

2. Mobilizingexisting enter-prise softwareapplications

1. Mobile enablingcommunicationand collaborationapplications

Largely field force productivityapplications that mobile-enable

enterprise backend (e.g. CRM,ERP, SCM)

Data and voice plans and othercommunications apps

FMC, mobile e-mail, mobile PIMs

Emerging technologies (e.g.

M2M/sensors) transformingverticals/industries (e.g., Smart grids)

Target big and inefficient spendpools and transform using mobility

Improve productivity/quality/

outcomes


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Enterprise mobility is gaining momentum

1 Does not include connectivity2 HW, SW & SVCs

US Estimates

# of Ent. Subs 30-40M

# of M2M Sensors 100M+

2015 Ent. Mobility Rev1 ~$50-75B2

EBITDA for Players 30-45%


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McKinsey & Company 4|SOURCE: Apple, Archos, HP, Lenovo

Key features driving enterprise adoption

High mobility (lessthan 3 poundsweight) and battery

life (full work day)

Touch-based input(no keyboard)

Wireless, always-onconnectivity

Immediate startup

time, always-on


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7 major disruptions that will shape Ent. mobility adoption in next 12 months

Evidence Data use rising rapidly (e.g., ~50MB/mo on BB going to ~1GB/mo on iPhone/Android) Telcos rapidly investing in new capacity and tech (e.g., 3G -> 4G) to meet requirements

Data connectivitymargins underpressure

Today >70% of US enterprise mobile devices are sold through / by carriers Over-crowded device OEMs have increasingly large challenge to be preferred in carrier

sales

Carriers wont be theonly route to market

for devices

End-users demand shift to iPhone / Android CIOs say BB share falls >50% within 2 years to 60% of CIOs plan unified collaboration on desktop in next 1-2 years

RIMs leadership isgetting challenged

Unified collab willreinvent mobileskiller app


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Key messages






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Businesses across all industries are using mobile apps to enhancecustomer interaction

Early adoptersHow it is changing the game

Banking Enables customer banking transactionsusing mobile apps (e.g. account check).

Verticalspecific

Horiz

ontal

Marketing 2D barcodes that link to advertisements,coupons etc.

2D barcodes as substitutes for paper gift-cards

Apps that provide product information,specific campaigns

Pharma /Healthcare

Remote monitoring of patients with chronicconditions by pharma companies.

Prescription adherence apps by pharma

companies and pharmacies

Transportation Mobile check-in and boarding passes

Insurance Filing auto-insurance claims

Sales channel Enabling customers to make purchasesusing mobile apps (e.g. insurance policies,hotel rooms etc)

NOT EXHAUSTIVE


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1 Includes education, awareness, vaccinations, health checks, etc.

SOURCE: Team analysis

In healthcare, mobile solutions can impact patients from prevention /wellness to end-of-life support

Preventive1 DiagnosisAcute/emergencycare

Chroniccare

Rehabilita-tion

End of lifesupport

Stages of healthcare needs

Keystakeholders

Mobile payment and insurance claims

Compliance monitoring

PatientsPatients

PayorsPayors

ProducersProducers

ProvidersProvidersInventory monitoring

Workflow management

Sales support

Remote healthcare monitoringWellness

& lifestyle

Tele-emergency

Chronicillnesstreatment Drug

compliance

Remoteconsultation

Imaging &EHR RFID Tracking


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User experience - Mobile health solution for wellness froma consumers view

Episodic alerts sent tocare provider

Consumer can track

biometrics on any screen

Resulting glucose levelsmeasured by glucose meter

Diet & activity tracked

by mobile phone

Data aggregated,correlated,and stored in the cloud

Cross-device measurement Cloud aggregation of metricsMulti-screen, multi-audience visualization


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Mobility applications are increasingly adopted by corporations

SOURCE: AT&T; Mobile Health News; Silicon.com; RIM; Otto Bock; WellDoc

EXAMPLES

Pfizers Mon KronoSant app is a memoryaide for consumers,offering a health recordfor chronic diseasesufferers

Application allows toshare self-reportedinformation withphysicians

Novo Nordisks CoagsUncomplicated iPad /iPhone helps physiciansdiagnose medicalconditions based on labtest results

The app is part of acampaign to promote thedrug NovoSeven

Medtronic launched aninternal App store foriPads in 2011 with morethan a dozen apps

Example apps includemStar, a sales reps toolthat automates productordering and registration

Currently iPad-only


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McKinsey & Company 11|SOURCE: Literature search; team analysis

The iPad has gained popularity in hospitals based on its easeof use, portability, and low cost

Description of use

Cedars-Sinai hospital was given early access by Apple to iPadbefore official release to experiment with enhancing thephysician patient relationship

Deployed 1,000 iPads for mobile access to EHR within thehospital, iPhone support planned in early 2010

Developed in-house app for EHR access allowing use ofcalendars, hospital e-mail and contacts, as well as patientsresults and charts which can be accessed inside and outsidehospital. Was referenced as case study on Apples web site.

$500,000 pilot project for physicians in Victoria, Australia toallow them to access any web-enabled application run by theirhospital, as well as to tap into health information resources

The Internal Medicine Residents at the Univ. of ChicagoMedical Center are now equipped with iPads as their primarydevice for clinical use (115 devices deployed in late 2010)

EXAMPLES


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Apple is building a healthy eco-system to drive adoption of mobilesolutions in healthcare

SOURCE: Experts interviews; literature search; team analysis

Solution types Solutions provided Customers QuotesPartners

Solutions for medicaldocumentationcovering billing,dictation, SOAP notes,

and prescription

EHRmanagement

EHRmanagement

With iPad, I no longer haveto type or use multiple checklists for my patient exams.

Very easy to use and navigate- Anonymous,

www.appcomments.com -

Service providers

Solutions for 2D/3Dimage processing and

display (e.g., MRI,X-ray)Image viewImage view

Service providers

iPad is ideally suited to visual

conversation The patient andI can flip through the x-raysand clinical photos together

- Dr. Jonathan L. Ferencz,www.apple.com -

Personal healthcaresystem through digitalrecord and print outof personal health-related symptomsand history

Personalwellness/healthmanagement

Personalwellness/healthmanagement

Individual patientsI can access to my health record

easily I feel like thatI have myown health manager in myhand- Wayne LeFevre,itunes.apple.com -


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Mobile Financial Solutions can be broadly split into 3 major categories

Detailed further

SOURCE: Federal Reserve Bank of Boston; E&Y analysis; team analysis

Typical vendor and other

transactional payments

Merchandise purchases

Ticketing

Bill payment

Transfer of moneybetween accounts /

people

Money transfers

Person-to-person International remittance

Prepaid top-ups

Typical bankingtransactions

Bank balance enquiry Stock trading

Deposits and withdrawals

ATM branch locator

Account balance

Account alerts Transaction alert

Description Typical use cases

Payments

3

Remittance

2

Basic banking

1


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Developing markets have more widely adopted services but also include alot of market players

SOURCE: Gartner; team analysis

Trends Recent examples

ChinaChina Extensive availability of mobile banking

services such as money transfer and billpayment offered by commercial banks

Payment services being adopted byoperators with fairly un-standardized

usage of technology

China mobile adopted RF SIM withintegrated NFC radio for payments infast food chains, retail andtransportation services

China mobile taken equity share in

a regional bank to support its mobilepayment initiatives

China Unicom expected to deployNFC payments

IndiaIndia Third party service providers take on

more active role in deploying mobile

financial services because of guidelinesimposed on banks

Common technologies include SMS,USSD, WAP client and IVR

mCheck most popular service with over1 million registered users

Paymate has launched money transferservices in collaboration with Tata usingIVR technology

NGpay setting up a market place onmobile by signing up multiple agents

AfricaAfrica Widely adopted mobile payments

players with over 30 deployments Money transfer is most widely supported

and used service Majority of deployments championed by

mobile careers with some recententrants from banking

SMS and USSD preferred technologies

M-Pesa in Kenya one of the mostsuccessful launch of mobile serviceswith over 9 million users

Standard Chartered in South Africaoffering Instant Money and Mdinar byBanque Internationale Arabe deTunisia in Tunisia


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Innovative IT investing insurers are starting to provide consumer-facingmobile applications

SOURCE: Literature search

Mobile payment forinsurance bill

Customer services (e.g.,

tow services, nearby gasstations, repair shops,rental cars)

iPhone/iPad

Android

BlackBerry

Windows Phone 7

Customers integratedfinancial accountinformation (USAAs

insurance, bank,investment accounts)

Mobile banking (e.g.,money transfer)

iPhone/iPad

Android

BlackBerry

Windows Phone 7

Self-claim reportservices (e.g., photoupload, guide nearby

repair shops, claimprogress check)

Policy quotationgeneration with car typewith year and self-policycontract

iPhone

Android

Keyfunctions

Mobileplatforms


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McKinsey & Company 16|SOURCE: Literature search

RIM is providing mobility solutions for insurance industryby partnering with solution providers and insurers

Recent movements Partners

Offers a mobility solution for insurance industrypartnering with solution provider

All-in-One Agent Solutions for customers to access theirinsurance info

Brokers and Brokerage Mobility to deliver seamlessCRM service to customers

Verticalsolution

Verticalsolution

Type

B2B appB2B app Launched CSCs new app for insurance agents and

policyholders mobile access to insurance services oninsurers life/P&C systems

Recently Introduced tablet PC, PlayBook and it attractsmany financial service institutions including TD and SunLife Financials

Sun Life Financial Inc, an insurance company is planningto buy 1,000 units of PlayBook

Devicesales

Devicesales

Novaricas research found that 52% of all insurancecarriers support Blackberries for their claims adjustersin 2010


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A rich eco-system of solution providers provide mobility solutionsin Insurance


Potential partners

Claims solution providersClaims solution providers

Sales solution providers

(agent portal/CRM)

Sales solution providers

(agent portal/CRM)

Pin point enablingsolution providers(document creation/E-signature/virtual desktop)

Pin point enabling

solution providers(document creation/E-signature/virtual desktop)


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Key messages






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McKinsey & Company 19| 19

Top trends from McKinseys survey of 250 CIOs of large enterprises

Marketgrowth

Marketgrowth

Smartphones

Smartphones

TabletsTablets

ApplicationsApplications

Key findings from peer group

A Mobility spend expected to increase ~5% over the next year.

B 56% of companies see strong demand to support a wide range of mobileOss..

C Most organizations prefer BlackBerry smartphones and Apple tablets.

D Most restrict personal use in some way (primarily web restrictions). 60-70%allow personal apps, email and personal media/data.

E Enterprise tablet penetration is growing. ~25% penetration in 2 years,

F CIOs expect limited laptop replacement due to tablets.

H All major application types (e.g., productivity, CRM) expected to be offeredon mobile platforms

G Companies plan to significantly expand mobile applications in the next 2years (by 2013, 90% peers will have 25+ apps)

I Primary application challenges include security and productivity apps


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Most critical decision the CIO needs to makeis on the mobile stack

1 In many countries, device exclusivity agreements dictate connectivity options. Subset of global carriers displayed.

SOURCE: Team Analysis 20

Application

Model

Application

Model

InfrastructureInfrastructure1 1

OS PlatformOS Platform

Device &connectivity1Device &

connectivity1

Web-basedapps

Web appsWeb apps Web apps

Client/server

apps (e.g.,productivity)

Four major stacks in market today

Local apps

PRELIMINARY


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StrongAndr

oid

challenger

s

Wildcards

Price

challengers

21

On devices, many entrants in the space, with little differentiation betweenthem; PC OEMs competing on price

Channelexpertise

Company2 Tablet

Gross Margin1

1 Green indicates gross margin

35%, blue 25-35%, and orange < 25%2 Where available, gross margin of business unit that produces smartphones/tablets is used3 Based on Interbrand brand value; green indicates valuation

$15 billion, blue $5-15 billion, and orange < $5 billion

SOURCE: Company financial statements; lit. search; Interbrand; team analysis; PD 781490 Tablet Market Dynamics

ReleasedTablet?

Brandstrength3

Manufac-turer/OEM

Price (3G,32 GB)

729

N/A

799

599

N/A

599 (no 3G)

749

In linewith iPad

449 (16 GB,no 3G)

~800-1000

N/A

OSIndustrialdesign

Softwarecapabilities

-

-

-

-

-

-

38%

43%

40%

64%

24%

30%

46%

23%

10%

23%

26%

32%

29%

39%

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Retail

Carrier

Compo-nentadvantage

-

-

-

-

-

-

-

Devices


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On app model, very little to differentiate between the 3 stacks

SOURCE: McKinsey (Autumn 2010); PD 777935 Virtual Desktop Infrastructure Market Overview

Microsoft has currently released a mobile office package only for Windows Phone,however many third-party options fill this gap.

SecuritySymantec have so far announced a mobile security suite only for Symbian phones

CRM

Availability only via mobile CRM 3rd party providers

Messaging

IBM Traveler as an independent app.or Ultralite on the browser

CRM

Business Objects applicationsupported since 2009

Processes

LiveCycle available as app

CRM

App in pilot phase available

Accounting

Available on the browser in betamode

CRMAvailable as app

CRM, ERP

Implemented on BES

SAP CRM supported via app

LiveCycle available as app

App in pilot phase available

Available on the browser in betamode

Available as app

Siebel CRM supported on thebrowser Numerous mobile apps such asSales Assistant, Business indicators

Plans to implement throughout 2010

Availability only via 3rd partyproviders

N/A

Available via 3rd party apps such asCompanionLink

N/A

N/A

Siebel CRM supported on thebrowser

Application Model


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On infrastructure, mobile enabling apps requireadditional infrastructure


Infrastructure cost driver Support cost driver Device cost driver

Infrastructure

BASIC EXCHANGEACTIVESYNC SCENARIO

iOS or Android device(using built-in email/contacts/calendar apps)

ActiveSync component requires both additional Exchange client-accessservers and mailbox servers to handle increased transaction load

Mobile devicemanagement (MDM)

StorageFirewall

Helpdesk

ExchangeInfrastructure

Internet

VDI(optional)

Apps

(optional)

Separate MDM service recommended to managesecurity and control of devices (e.g., remote wipe)

BES may serve this function once Ubitexx addssupport for non-RIM devices


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In Conclusion





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NIMS 2011 Session3 Chandra G