Premium Mobile Enterprise Applications- What’s Working in North America?

Premium Mobile Enterprise Applications- What’s Working in North America? -

Jeanine Sterling, Senior Industry Analyst

Mobile and Wireless Communications

August 12, 2010

2

Focus Points

• Quick Review: What’s Driving the Spread of Mobile Apps in North American Business Sector?

• 2010 Mobile Enterprise Applications: Survey Highlights

o Deployment Plans

o Purchase Barriers

o Current Users = Real Success

o ROI Metrics

o Additional Findings

• Conclusions

3

The Enterprise Sector: Ripe for Premium Mobile Apps

• Growing mobile worker population

• Fiercely competitive marketplace

• Strong, tangible ROI story

• Powerful technology enablers – phones, OS,

networks

• Mobility platforms – broad device/OS support

• Major ISVs finally joining the fray

• SaaS advantages/flexibility

• More sophisticated support from wireless

carriers

• Increased emphasis on solution

standardization (minimizing customization

requirement)

• Vertical emphasis

• Mobile enterprise application storefronts

• Competitor consolidation

Major Market Drivers

0

2

4

6

8

10

12

2009 2010 2011 2012 2013 2014 2015

Rev

en

ues (

$ B

illio

ns)

Four mobile enterprise application categories* are projected to total $10.9

billion in annual revenues by 2015

Source: Frost & Sullivan

*Mobile Office, Mobile Workforce Management, Mobile Field Asset Management, Mobile Sales Force Automation (SFA). Software

revenue only.

4

2010 Enterprise Mobile Apps Survey -- Current Preferences and Plans

• March 2010 online research survey

• 300 enterprise mobile and wireless purchase decision-makers

• U.S. and Canada

• Sample divided evenly in terms of company size (<500, 500+ employees)

• Wide range of industries represented

• Enterprise apps discussed in detail:

• Mobile Office (email, PIM, etc.)

• Mobile Workforce Management

• Next-Generation Fleet Management

• Mobile Sales Force Automation (SFA)

• Areas of inquiry:

• Level of perceived need

• Plans for deployment

• Barriers to Implementation

• Measures of Success (ROI metrics)

• Brand awareness/loyalty

• Customization requirements

• Customer satisfaction

• Type of mobile device(s) used

• Point vs. platform

• On-premise vs. hosted

5

North American Companies: Deployment Plans

Currently Have Planning to Introduce Not Interested

Mobile Office

Mobile Messaging (SMS, MMS)

Mobile Unified Communications

Mobile Workforce Management

Mobile VoIP

Customer-Facing Apps

Next-Gen Fleet Management

Mobile Sales Force Automation

57% 19% 24%

57% 15% 28%

47% 21% 32%

47% 18% 35%

43% 22% 35%

43% 17% 40%

41% 17% 42%

39% 21% 40%

Source: March 2010 Mobile Enterprise Applications online survey. Base: 300 mobile and wireless purchase decision-makers – U.S. and Canada. Frost & Sullivan.

6

Focus on Four Mobile App Categories

Mobile Office



Mobile Sales Force Automation (SFA)

“Uses mobile email to enable intra-office communication and collaboration.

Drives and delivers day-to-day work processes and ERP applications for

seamless enterprise collaboration. Examples: BlackBerry BES, Good Mobile

Messaging, Microsoft ActiveSync.”

“Uses web-based tracking and GPS-equipped mobile handheld devices

(smartphones, feature phones, mobile computing devices) to locate and manage

mobile field workers and their tasks. Capabilities can include maps, geo-fencing,

wireless timecards, dispatching, and data capture. Examples: TeleNav Track,

Xora TimeTrack, Verizon Field Force Manager.”

“Uses web-based tracking and a cellular/GPS device installed and mounted in

each fleet vehicle. Functions can include vehicle location, geo-fencing, maps,

engine diagnostics, and sensors. These are NOT the older, more expensive

satellite-based systems. Examples: Trimble GeoManager, Air-Trak, Verizon Fleet

Administrator, TeleNav Vehicle Tracker.”

“Extends corporate CRM/SFA backend systems to mobile phones. Allows

mobile sales employees to access product, pricing, inventory, and customer

data in order to perform contact management and order management functions

away from the office. Examples: Antenna AMP SALES, Sybase Sales Anywhere,

Vaultus VMAP.

7

Level of Perceived Need – All Respondents

0%

10%

20%

30%

40%

50%

Mobile Office


49%

Very Necessary

For all respondents:How necessary is the following mobile solution in helping to meet your company’s business goals? (Improving

productivity, customer satisfaction, and/or decreasing expenses, etc.)



Somewhat Necessary

Not at All Necessary

29%

22%

40%

26%

34%

31%

27%

42%

35%

25%

40%

Source: March 2010 Mobile Enterprise Applications online survey. All Respondents.

8

Deployment Plans: U.S. vs. Canada

Mobile Office

Mobile Workforce

Management

Next-Gen Fleet

Management

Mobile Sales Force

Automation

Currently Have

Planning to Introduce

Not Interested

57%

47%

41%

39%

19%

18%

17%

21%

24%

35%

42%

40%

Mobile Office Solutions

Canada U.S.

Mobile Workforce Management Solutions

Canada U.S.

52%

18%

30%

60%19%

21%

38%

21%

41%52%

17%

31%

Source: March 2010 Mobile Enterprise Applications online survey. All Respondents.

9

Poll Question

• They are higher than I expected.

• They are lower than I expected.

• They are about where I anticipated they would be.

*Turn off your pop-up blocker, so you can respond to the next polling question

What is your reaction to the “Currently Have” percentages for the four mobile application categories charted on the previous slide?

10

Not Interested? Why Not?

Secondary Barriers:

22%Cost of implementation

19%Cost of hardware

16%High TCO

12%Lack of internal expertise


20%Cost of hardware

15%High TCO

13%Unclear ROI benefits


16%High TCO

16%Cost of hardware


76%

17%High TCO


16%Cost of hardware


72% 71% 70%No Need:

Mobile Office




Source: March 2010 Mobile Enterprise Applications online survey. Respondents: “We currently do not have this solution and have no plans to introduce this solution.”

11

“No Plans Segment”– Purchase Barriers Can Vary by Organization Level

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

For companies with no plans to deploy a Mobile Sales Force Automation (SFA) solution:Please indicate which of the following are the most significant barriers to implementing a Mobile SFA solution within your

company.

CXO Respondents VP/Directors IT Managers/Staff

No Need

Cost of Implementation

Cost of Required Hardware

No Need

Worker Privacy

Concerns

Not User

Friendly

Cost of Implementation

No Need

Cost of Required Hardware

77%

27%

21%

100%

50% 50%

41%

18% 18%


12

Plan to Introduce? Then Why Not Now?

27%High TCO

25%Integration expense

23%Cost of hardware

21%Security of corporate data


22%Cost of hardware

20%Customization expense

18%Integration expense


26%Cost of hardware


19%Lack of internal expertise


35%Cost of hardware


21%Security of corporate data

Mobile Office




Top 4 Purchase Barriers

• Paramount concern: Cost factors, Unclear ROI

• Secondary concerns: Information Security, Level

of Internal Expertise

• Some variation among app categories

• 3/4 plan to implement within 12 months (lower

for Mobile Office)

• Noticeable U.S. vs. CAN differences re:

inhibitors

Source: March 2010 Mobile Enterprise Applications online survey. Respondents: “We plan to introduce this solution within the next 12 months/2-3 years.”

13

For “Plan to Introduce” Segment – Purchase Barriers Can Vary by Country, Size

0%

5%

10%

15%

20%

25%

30%

35%

40%

Mobile Workforce Management- Variations by Company Size -

Mobile Sales Force Automation- Variations by Country -

CAN U.S.<500 Employees 500+ Employees

29%

34%

14%

23% 23%

38%

14%

10%

Cost of implementation

Cost of hardware

Customization expense

Integration expense

Significant differences in Canada vs. U.S. responses exist in each of the four enterprise application

categories

Breakout between SMB and Enterprise responses (in all four solution categories) reveals substantial

variation in reasons for not yet deploying

1. High TCO

2. Integration

expense

3. Customization

expense

4. Lack of internal

expertise

5. Cost of required

hardware

6. Not scalable

1. Cost of

implementation

2. Security of

corporate data

3. Cost of required

hardware

4. High TCO

5. Employee

resistance

6. Integration

expense


14

Poll Question

• Cost of required hardware• Back-end integration expense• Solution customization expense• Lack of corporate data security• Employee resistance• High TCO

*Turn off your pop-up blocker, so you can respond to the next polling question

Which adoption barrier would you rate as the most challenging for vendors and channels to neutralize over the short-term?

15

Current Users = Real Success

0%

20%

40%

60%

80%

100%

Current Application Users

Plan to expand within 12 months

Do not plan to expand within 12 months

% o

f C

urr

en

t U

sers

53% 47% 56% 59%

47% 53% 44% 41%

Mobile Office

Mobile Workforce

Management

Next-Gen Fleet

Management


0% 20% 40% 60% 80% 100%

Expansion Plans Level of Satisfaction

Mobile Office

Mobile Workforce

Management


Mobile Sales Force

Automation

Very Satisfied

Satisfied Neither Dissatisfied Very Dissatisfied

% of Current Users

35% 50% 12%

2%

1%

37% 53% 8%

1%

1%

34% 52% 11% 1%

2%

34% 53% 9% 1%

3%

Source: March 2010 Mobile Enterprise Applications online survey. Current application users.

16

Primary ROI Metrics for Current Users

Mobile Office

44% - Increase in user productivity

37% - Reduced paperwork

37% - Increase in revenues

30% - Decreased expense

30% - Increased customer satisfaction

29% - More employee collaboration



28% - Reduced labor expense

26% - Higher job completion rates

24% - Improved field service response times

23% - More accurate billing

26% - Higher job completion rates

25% - Improved worker response times



21% - Improved competitive advantage

20% - Less employee overtime

38% - Increase in sales



30% - Faster overall sales process


23% - Expedited cash flow

Mobile Workforce

Management



(SFA)

Source: March 2010 Mobile Enterprise Applications online survey. Current application users.

17

Additional Survey Findings

• Premium mobile apps are viewed as business enablers by majority of

companies.

• Caution is the rule of the day: Clear majority prefer to conduct pilots

before actually rolling out their solutions.

• Some level of customization is still required in most cases (at least two-

thirds of implementations, depending on the application category).

o A minority of these cases call for “significant” level of customization.

o Third-party experts are brought in to assist 20%-30% of the time.

• Mobile device utilization remains mixed – with smartphones the

preeminent choice.

• Current implementation is roughly 60/40 on-premise vs. hosted.

18

Conclusions

• Majority of North American companies are already convinced of the business

value of mobile applications.

o Most of these have already deployed, are piloting, or are planning to implement within

three years.

• Current users are prime candidates for add-on sales.

• Planners need to be actively motivated to become Purchasers – by directly

addressing top adoption barriers (cost concerns, unclear ROI impact, corporate

data security)

o Marketing messaging; pricing strategy; solution enhancement.

• “No Need” segment requires customer education program.

• SMB sector can present a significantly different set of priorities and concerns.

• U.S. vs. Canada deltas must be factored into sales presentations and marketing

campaigns.

19

2010 Studies Containing Further Survey Content

• 2010 North American Mobile Enterprise Applications Outlook (N741-65; Published June 2010)

• Adoption of Premium Mobile Enterprise Applications: A Canadian

Perspective (Frost Insight; 3Q 2010)

• 2010 North American Mobile Resource Management (MRM)

Market: Handset-based Solutions (N82B-65; 3Q 2010)

20

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For Additional Information

Jake Wengroff

Corporate Communications


(210) 247-3806

[email protected]

Craig Hays

Director of Sales

Information and Communications Technologies

(210) 247-2460

[email protected]

Jeanine Sterling

Senior Industry Analyst


(586) 263-4454

[email protected]

Technology

Premium Mobile Enterprise Applications- What’s Working in North America?