Are You Measuring or Guessing? Determining Mobile ROI

J.GoldJ.GoldAssociatesAssociates


www.jgoldassociates.com

Delivering on the Promise of Mobile ROI Jack E. Gold

President

[email protected]

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© 2013 J.Gold Associates, LLC J.GoldJ.GoldAssociatesAssociates

J.GoldJ.GoldAssociatesAssociateswww.jgoldassociates.com

What We’ll Cover

- Mobile ROI – Why You Should Care

- 7 Components of Mobile ROI

- Determining and Attaining a Mobile ROI



Why Enterprises Should Care About ROI

Determining mobile ROI is often different than traditional application approaches

Mobile is generally more complex and diverse than conventional client/server PC-based solutions

Reduce complexity and benefit by classifying workers into categories

Keep the number small (3-5)

Implement strategic mobile infrastructure to “leverage” solutions

One-off vs. strategically leveraged

Bottom Line: ROI is not just an exercise. It’s a key determining factor



Are Companies Measuring ROI?

Our recent Enterprise Mobility Study of 270 enterprises found:

Bottom Line: Few enterprises due an adequate job of determining and/or measuring ROI (and TCO). Even fewer do a post mortem to see

if they were correct.

How Did You

Determine ROI?

Estimated 50%

Calculated 11%

Neither 39%



The “Democratization” of IT

The majority of organizations offer at least some support for BYOD

“Democratization” - user preferences as important as IT directives

This will have an effect on ROI (and TCO), including:

Consumerization of personal tools

Doing things securely- App/Content management

Enforcement of BYOD Policy

Mission Critical or just convenient

User boundaries and limitations

Bottom Line: BYOD and democratization requires new view on what TCO includes and how ROI is achieved



Leveraging Mobile Infrastructure

One-off vs. Commonality

Unique solutions or leveraged components

Core Elements of Mobile Leverage

Common core services and integration

Common development environment

Cross platform compatibility

Unified MDM/MAM, security, policy enforcement

Consolidated learning/experience advantage

Support simplification

Bottom Line: Implement enterprise infrastructure solutions providing common mobile elements for maximum leverage and lowest cost



7 Components of Mobile ROI

7 Components of a Mobile

ROI/TCO Model

Copyright 2013 J.Gold Associates, LLC.



Device Acquisition

Cost of device is small component of TCO

About 10%-20%

BYOD does not mean lack of cost to corporation

Requires set up of applications, creating user policies, monitoring and managing the user accounts, etc.

Companies must assess true cost

Not by who buys

But by needed effort to control, manage, secure and support

Bottom Line: Don’t focus solely on acq. cost. It is highly misleading in establishing TCO



Network/Connectivity

Who pays for connectivity?

Some have shifted cost to users

Cost shifting may actually cost more

Companies pay user Stipend

But make no attempt to negotiate “bulk” price

Does this “outsourcing” help or hurt?

Few enterprises due sufficient analysis to find out

Who pays for firewall, access controls, multiple app licenses,

Bottom Line: Organizations must take into account all costs associated with connectivity to find true TCO



App Development and Integration

Where do Apps come from?

Can users get Off-The-Shelf apps in public app stores?

Maybe, but non-optimized for corp. apps

Significant functionality (and productivity) can be lost

Custom apps are optimized, OTS apps are maximized

How do they get enabled to back ends?

Off the shelf apps no always easy to integrate

What if different users pick different apps for same use

Bottom Line: Must weigh tradeoffs for OTS vs. custom apps to minimize cost and maximize productivity



User Training and Support

Does BYOD eliminate cost of support?

No. Users still need support

If company doesn‟t furnish, will get it from each other

Will they still call the help desk?

Yes. But help desk may not be trained in helping them

Can user be productive without app focused training

Yes, but could take a long time

Bottom Line: carefully weigh the benefits of a “laissez faire” attitude on BYOD against the true cost of training and support.



Help Desk and IT Expertise

Help Desk is first line of support

Users will call with any/all questions

Support techs must be trained to support them

Saying no is not an option (especially with Execs)

A large variety is hard to support

Training support techs is critical to minimize support costs

Letting users pick any app they want makes this impossible

Companies need to evaluate TCO

Cost of full end user choice vs. cost of limited choice

Bottom Line: Too much choice is not good for optimizing support and keeping TCO low



Device Enhancement and Management

Are consumer-level devices enterprise ready?

Most will require enhancements

Some just unacceptable

Organization will need to add:

MDM/MAM, encryption, content mgmt, private app stores, etc.

May even require OS enhancements for virtualization and/or containerization

How to determine true ROI of device?

Free is not free if company needs to expend resources

Bottom Line: OTS device require enterprise upgrades that have cost, affecting TCO and ROI



App Portfolio – LOB Opportunities

Not all apps are created equal

Low cost OTS vs. fully customized

Different LOBs and users require (desire) different apps

Low up front vs. high back end costs

Integration is not free

Custom apps have high up front but lower back end costs

Take a portfolio approach to apps

Some will have high payback (50%+)

Some low payback (5%-10%)

Bottom Line: Evaluate portfolio based on apps, devices, user types, LOBs, etc. to find true ROI



Determining ROI

ROI = Productivity Improvement / TCO

• Where TCO = Development + Deployment + Support Cost

But many factors can affect this simple equation

Time to deployment

Lost opportunity costs

Ineffective integration to back end system

Usability and/or UI substitution (for native UI on device)

Device incompatibility in features/functions

Etc.

Bottom Line: Higher initial cost custom apps may have much better ROI than OTS sub-optimum apps



Focus on ROI Attainment

Determine what constitutes acceptable productivity improvement for various classes of workers. General productivity enhancements include:

Improved revenue per employee

Increased sales per visit

Faster service/delivery per employee

Employee enablement to make decisions that matter

Increased customer satisfaction for long term growth

Doing more with less – less need for people and/or capital expense (e.g., trucks, cars, machinery)

Competitive pressures – what others are doing in your industry

Bottom Line: Select achievable and measurable goals to attain a positive ROI.



Negative affects on ROI

Focus on issues that detract from ROI, including:

Security and Compliance Cost/Mitigation

Lost Opportunity Costs for Sluggish or Malfunctioning Apps

Time to production/deployment

Lifecycle Management for Updates, Replacement and End of Life

Ease of Use Challenges that Prove Detrimental to End Users

Support and „Down Time” for Poorly Functioning Apps and/or Integration

Bottom Line: Take a disciplined approach to evaluating the potential problems and challenges in deploying mobile apps and achieving ROI



Prioritize Your Projects

Not all apps and/or ROIs are created equal

Assess in which priority mobile solutions should be deployed

Based on number of users served

Based on strategic vs. nice to have – is it mission critical?

Based on time to deploy

Based on amount of effort - custom/integrated vs. off the shelf

Based on required resources – engineering, support training

Based on type of customer (internal or external) demand

Bottom Line: Determine criteria to evaluate projects so preference for projects can be prioritized



Bottom Line

Attaining Mobile ROI is Imperative, not optional

Enterprise must care about ROI, costs, infrastructure and users

ROI can be maximized with a little effort

But strategy and measurement are critical

Make the right proactive choices

In devices, apps, infrastructure, support

Take a portfolio approach

Don‟t emphasize one-offs when leverage is possible

Enterprise mobility is a still evolving market, but companies must maximize ROI for long term success.



Contact Information

Jack E. Gold President and Principal

Analyst

[email protected]

Twitter: @jckgld

J.Gold Associates, LLC

6 Valentine Rd

Northborough, MA 01532

508-393-5294

www.jgoldassociates.com



Additional whitepapers and research reports are available

at our web site

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Are You Measuring or Guessing? Determining Mobile ROI