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Frost & Sullivan: 71 Percent of Businesses Add More Mobile Apps to Employee Devices in 2014

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  • 1. Frost & Sullivan: 71 Percent of Businesses Add More Mobile Apps to Employee Devices in 2014 Research PREVIEW for the 2013 North American Mobile Enterprise Applications @FS_ITVision
  • 2. Research Objectives and Methodology Research Objectives The overall research objective is to measure the current use of and future decision- making behaviors toward mobile enterprise applications, specifically mobile asset tracking, mobile sales force automation (SFA), mobile workforce management, and wireless email solutions. Methodology and Sample Using a Web-based survey methodology during August 2013, Frost & Sullivan surveyed 308 North American decision makers working in businesses who were responsible for purchasing mobile software applications. Frost & Sullivan’s survey methodology uses online panels to source only qualified respondents. Respondents must meet requirements set by a screening process prior to full survey participation. Online panels consist of individuals who volunteer to participate in Web-based surveys and typically receive compensation directly from their panel membership for participating in qualified survey research. In general, survey respondents do not receive direct compensation from Frost & Sullivan for participating in research projects. Note: Percentages in charts and tables may not add to 100 due to rounding.
  • 3. Source: Frost & Sullivan Methodology 2010 2012 2013 Country (sampling quotas set) Canada 33% 33% 34% United States 67% 67% 66% Enterprise size by number of employees 1 to 24 37% 38% 33% 25 to 99 6% 9% 10% 100 to 249 5% 1% 4% 250 to 499 4% 2% 3% 500 to 999 17% 7% 8% 1,000 to 9,999 23% 24% 24% 10,000 or more 8% 19% 19% Total sample n=307 n=300 n=308 Frost & Sullivan conducted decision-maker research in the mobile enterprise applications market since 2010. Where available and appropriate, comparisons to past data points will be made throughout this study. Below are sample details for 2010, 2012, and 2013. Year-Over-Year Sample Demographics: North America, 2010, 2012, and 2013
  • 4. Source: Frost & Sullivan An Expanding Sector Mobile worker applications continue to expand throughout the North American business sector. Over the next year, the bulk (71%) of businesses plan to add even more software applications on their employees’ mobile handheld devices. Implementations, both current and planned, fluctuated slightly during the past year for three of the four mobile application categories highlighted in this study. Potential problem areas include: 1) wireless email, where the percentage of businesses deploying this solution seems to be shrinking significantly, year-over-year; and 2) mobile sales force automation, where the perceived business need for this solution has decreased markedly. In summary, while the overall growth picture seems positive for mobile worker apps, specific solution categories continue to expand or contract, each at their own pace. It is imperative that providers monitor customers’ forward-planning in this sector and quickly identify and address the reasons behind any unexpected dips in deployments. Executive Summary 22% 48% 12% 7% 6% 5% 23% 52% 11% 4% 4% 6% None One to 10 apps 11 to 19 20 to 49 50 or more apps Don't know Current Apps New Apps During Next 12 months Mobile Worker Software Application Deployment: North America, 2013
  • 5. Executive Summary (continued) Impact of Attitudes on Deployment  The key to a provider's sales success is convincing them of the business necessity of mobile worker application solutions.  Among businesses with the attitude that a particular mobile app category is ―very necessary,‖ there is a strong positive impact on their adoption rates. Specifically, among the four mobile apps featured in this research, a ―very necessary‖ attitude positively impacts adoption (current and planned) rates by as much as 41%.  The above chart delineates why customers would view mobile worker apps as necessary to their businesses’ success. Percent of Respondents that have Deployed App Type of Apps Those Who Consider Mobile App Very Necessary Those Who Consider Mobile App Somewhat or Not at All Necessary Impact of Attitudes on Deployment Percentage points (ppts) of difference Wireless email 76% 39% 37 ppts Mobile SFA 62% 21% 41 ppts Mobile workforce management 56% 19% 37 ppts Mobile asset tracking 52% 21% 31 ppts Impact of Attitudes on Deployment: North America, 2013
  • 6. Executive Summary (continued) Pros and Cons of Mobile Worker Apps Mobile worker apps are being used by a wide range of employee types, from the executive/management suites to the sales and service workers in the field. Today’s businesses point to increased efficiency and productivity as their top reasons for providing mobile apps to their employees. However, softer benefits — including enhanced customer engagement and improved collaboration — also rate highly as reasons for implementation. Concerns regarding the security of company and customer data and the potential high cost of implementation tend to be the major barriers to deploying mobile worker applications. Vendors and their channels must take both these benefits and barriers into consideration to effectively market their solutions. 69% 69% 60% 56% 54% 49% 48% 42% More efficient business processes More productive employees To enhance customer engagement More employee collaboration Results in cost savings To establish a competitive advantage To keep up with our competition Provide new revenue streams 50% 46% 36% 36% 36% 29% 25% 23% Security concerns A high cost No real business need Lack of internal expertise Lack of IT personnel support Back-office integration concerns Lack of a dependable mobility partner Worker resistance Reasons For Providing Mobile Apps to Employees— Percent Very or Somewhat Important: North America, 2013 Reasons For Providing Mobile Apps to Employees—Percent Very or Somewhat Important: North America, 2013
  • 7. Executive Summary (continued) Impacts on Customer Satisfaction Overall, about two-thirds of current users report being very or somewhat satisfied with the mobile worker apps spotlighted in this study. Outright satisfaction has decreased during the past 3 years, which may be due to a variety of factors, including the market expanding beyond first-adopters or a lack of clarity regarding these solutions’ capabilities. An important fact to emphasize is that the proportion of ―dissatisfied‖ customers has not grown significantly during this time. Specific benefits noted by the actual users of this study’s spotlighted apps are consistent with mobile worker solutions as a whole: 1) increased productivity and efficiency both in the field and at the office, and 2) enhanced customer engagement and satisfaction. Incremental revenue generation is not yet a significant influence. Using regression analysis, specific business effects can be directly linked to the overall customer satisfaction with an application. For example, a more accurate billing process has a direct positive impact on overall satisfaction with mobile sales force automation solutions. With mobile workforce management users, enhanced customer engagement is expected to have a positive impact on overall satisfaction. Wireless Email Mobile SFA Increase in worker productivity: 72% Faster overall sales process: 71% More employee collaboration: 63% Improved competitive advantage: 71% Increase in customer satisfaction: 60% Increase in sales visit rates: 69% Mobile Workforce Management Mobile Asset Tracking Reduced paperwork: 66% Reduced paperwork: 64% Increase in customer satisfaction: 64% Quicker asset recovery: 61% Enhanced customer engagement: 63% Reduced labor expense: 59% Top Three Business Impacts of Selected Mobile Apps—Percent of Significant and Somewhat Significant Ratings: North America, 2013
  • 8. Source: Frost & Sullivan Executive Summary (continued) Evolving Technology Preferences As this market continues to mature, customer preferences are evolving in a number of areas. For example, the proportion of current user companies that are opting for prepackaged solutions seems to have decreased compared to 2012, while fully customized implementations are becoming more common. In addition, mobile applications are moving steadily toward the cloud, as businesses rely less on purely on- premise server solutions and more on exclusively hosted or hybrid environments. In terms of mobile devices, smartphones and tablets are clear favorites, as basic feature phones continue to fade. Overall, fewer companies believe it is important for mobile apps to exploit their devices’ native capabilities although a majority of larger firms still prefer a native approach. These trends point to a more sophisticated set of expectations (requiring custom work and smart devices), while at the same time companies are trying to find an approach to mobile worker apps that is flexible and cost-effective (hosted, non-native).
  • 9. Source: Frost & Sullivan Executive Summary (continued) Choosing a Mobility Partner The importance of indirect distribution channels in this market cannot be overstated. Small- and medium-sized businesses (SMBs) continue to prefer wireless carriers as their partners in selecting, purchasing, and implementing mobile software applications. Larger companies, on the other hand, have an expanded set of preferred mobility partners, which includes the wireless carriers, systems integrators, and major corporate software vendors, who are mobilizing their traditional desktop products. Partner selection criteria can be segmented into 3 relevant categories: • Basic: This remains an extremely cost-sensitive sector. The minimum entry requirements in this market are the provider’s cost of doing business. • Strategic: Overt criteria that must be satisfied include the provider’s post-sales service capability, financial stability, customization and integration expertise, and overall industry reputation. • Secret: Two factors that can be unexpected differentiators are the provider’s solutions portfolio and overall experience in the mobility sector.
  • 10. Market Overview North American firms continue to deploy an expanding array of mobile worker software applications. The immediate goals are typically to improve employee productivity and collaboration. In addition, mobile apps are increasing the level of engagement with end customers and enhancing overall customer satisfaction. Once a competitive differentiator, these software solutions are now a competitive requirement. During the coming months, customers are expected to also begin paying more attention to these solutions’ revenue generation capabilities. This is a fragmented market with many stakeholders. Mobile application developers tend to be small and scattered, so direct sales is an insufficient strategy on its own. The correct channel partners are a key requirement for success. A subset of top-tier wireless carriers were forward-thinking and staked an early claim, with a vetted assortment of best-in-class mobile apps, appealing especially to small and medium- sized business customers. Other large entities then began entering the fray, with traditional corporate software vendors and systems integrators now presenting themselves as mobility experts to their embedded customer bases and applying competitive pressure on the carriers. Prepackaged applications reached a technological plateau during the past 12 months, with most developers fine-tuning and enhancing current capabilities, rather than launching new and revolutionary advancements. These enhancements have focused on enriching data capture capabilities, expanding analytical reach, adding tablet support, and beginning to modularize certain elements of the feature set. More exciting advancements are expected to start appearing in 2014. Pricing strategy has also remained stable, with minor tweaks, but perhaps a greater willingness to offer discounts for contractual commitments. SLAs (service-level agreements) are receiving more attention. Marketing messaging remains an area needing improvement. Stakeholders must continue to clarify the business benefits of these mobile solutions, especially the hard- and soft-dollar return on investment (ROI) being experienced by current users.
  • 11. Market Definitions  Wireless Email: Delivers business email and PIM (personal information management) capabilities to an employee’s handheld device and enables intra-office communication and collaboration. Examples include BlackBerry BES, Good Mobile Messaging, and Microsoft ActiveSync.  Mobile Sales Force Automation (SFA): Extends SFA and sometimes customer relationship management (CRM) capabilities to employee smartphones and tablets, and allows mobile sales employees to access calendars, contacts, and customer data to perform contact and order management functions away from the office. Examples include Antenna AMP SALES, Sybase Mobile Sales for SAP, and SalesNOW from Interchange Solutions.  Mobile Workforce Management: Uses GPS and other location technologies on mobile handhelds— smartphones, feature phones, tablets, and rugged devices—to locate and manage mobile field workers and their tasks. Capabilities can include worker tracking, wireless forms, geo-fencing, wireless timecards, and dispatching. Examples include TeleNav Track, Xora TimeTrack, and Verizon Field Force Manager.  Mobile Asset Tracking: Uses wireless tracking devices to remotely locate mobile and semi-stationary assets. These assets can include portable equipment in the field or consumer goods in transit, but do not include fleet management solutions. The tracking devices can be attached to the asset or included in the shipping container. Examples include Omnilink Asset Locator and Telenav Asset Tracker.
  • 12. Source: Frost & Sullivan Respondents by Country S0. What country do you reside in? Base: All respondents (n=308). Canada, 34% United States, 66% Respondents by Country Breakdown: North America, 2013
  • 13. Source: Frost & Sullivan Number of Employees in the Entire Organization Base: All respondents (n=308). S1. How many employees are there in your entire organization, including all plants, divisions, branches, and subsidiaries? 33% 10% 4% 3% 8% 24% 19% One to 24 employees 25 to 99 100 to 249 250 to 499 500 to 999 1,000 to 9,999 10,000 or more employees Number of Employees in the Entire Organization: North America, 2013
  • 14. Source: Frost & Sullivan Role in Organization’s Decisions to Provide Mobile Apps to Employees Base: All respondents (n=308). S2. Which of the following best describes the role you currently have in your organization’s decision to provide mobile apps to employees? 35% 31% 17% 17% Role in Organization’s Decisions to Provide Mobile Apps to Employees: North America, 2013 A primary decision maker One of a few (2–3) decision makers One of many (4 or more) decision makers A key influencer
  • 15. Source: Frost & Sullivan Industry Representation Base: All respondents (n=308). S3. Which of the following industries best describes your organization? 17% 14% 10% 8% 8% 6% 5% 4% 4% 3% 3% 2% 1% 15% Professionalservices HighTech Manufacturingand distribution Retailandconsumer goods Financialservices Energyandutilities Healthcareandlife sciences Transportation Construction Realestate Hospitalityandtravel Insuranceservices Education Other Industry Representation: North America, 2013
  • 16. Details of the Full Analysis
  • 17. Contents of Full Analysis Section Slide Number Research Objectives and Methodology 4 Executive Summary 7 Market Overview and Definitions 14 Overview of Mobile Solutions 17 Mobile Enterprise Applications Usage Details 22 Insights for Mobile Business Application Partners 38 Barriers to Future Adoption Among Current Non-users 59 Appendix 63 The Frost & Sullivan Story 163
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  • 19. Interested in Full Access? Connect With Us Clarissa Castaneda Corporate Communications (210) 477-8481 clarissacast325@frost.com Research Authors Lead Analyst: Karolina Olszewska Research Analyst, Customer Research, Frost & Sullivan Contributing Analyst: Tonya Fowler Global Director, Customer Research, Frost & Sullivan Research Director: Jeanine Sterling Principal Analyst, Mobile and Wireless, Frost & Sullivan Facebook https://www.facebook.com/FrostandSullivan LinkedIn ICT Group http://linkd.in/1kS4C7c SlideShare http://www.slideshare.net/FrostandSullivan ICT Twitter https://twitter.com/FS_ITVision Frost & Sullivan Events http://bit.ly/MvPRbQ
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