Premium Mobile Apps in North America
-- Enterprise Preferences and Plans --
Jeanine Sterling, Senior Industry Analyst
Mobile and Wireless Communications
June 30, 2009

Today’s Focus Points
• Premium Mobile Apps in the Workplace: A Market
Overview
• Enterprise Preferences and Plans (1Q Survey Results)
Level of Perceived Need
Deployment Plans
Barriers to Implementation
ROI Metrics
• Conclusions
2

Economic Downturn – Impacts Still Raining Down
• Financial crisis continues to strongly influence individual
enterprise wireless strategies and expenditures.
• Companies remain in wait-and-see mode: Consumer sentiment
is improving; however, unemployment figures remain high and
conditions remain volatile.
• Frost & Sullivan Mobile and Wireless Advisory Board feedback:
o Cautious optimism
o Solid ROI a must on any new purchase
o Deployment slow-down remains in place
o SaaS model gaining in popularity
3

On the flip side…
• Mobile worker population is growing.
• A “changing of the guard” is taking place at management levels.
• Strong worker expectations exist re: mobile access to corporate
applications and information.
• Both hard and soft benefits of premium mobile apps are being
recognized and valued.
• IT software typically survives economic downturns in better
shape than hardware.
However…. Is the North American enterprise
really ready to deploy more than just wireless
email and mobile Internet access to its growing
population of mobile workers?
4

Premium Mobile Apps in the Workplace
-- A Market Overview --
5

Mobile Data Services: Continued Growth
Mobile Service Revenues($ Million)
Mobile Data Revenues($ Million)
% of Revenues
200000.0 40
180000.0
35
160000.0
30
Revenues ($ Million)
140000.0
% of Revenues
120000.0 25
100000.0 20
80000.0
15
60000.0
10
40000.0
20000.0 5
0.0 0
2007 2008 2009 2010 2011 2012 2013 2014
Year
• 2009 Mobile Data Services revenues are expected to comprise
~25% -- or $40.9 billion – of total mobile services revenues in U.S.
6

Four Premium Mobile Enterprise Application Categories
Field Asset Mobile Resource Mobile Sales Force
Management (FAM) Mobile Office Management (MRM) Automation (SFA)
Local Field Fleet Wireless push email Worker Track, Locate, Wireless SFA on
Management PIM – Personal Monitor handheld devices
Service Inventory Information Mapping & Navigation Off-line PDA SFA with
Tracking and Management wired synchronization
Exception Alerts and
Management Security and Geo-Fencing to back-end CRM/SFA
Mobile Product/Cargo management support systems
Messaging
Tracking and administration Laptop SFA – wired or
Business Intelligence wireless
Data Capture and Reporting
Technologies: Central repository for:
Barcode scanning, Worker Management
(Time Cards, Job • Accounts
Image capture,
Wireless asset Progress Updates, etc.) • History
tracking devices, Scheduling, Dispatch, • Contacts
RFID, Sensor and Event Confirmation • Calendar
solutions, Location
Data Collection • Tasks
tagging
(Signature/Image
Capture, Barcode • Inventory
Scanning, Wireless • Sales pipeline
Forms)
7

Market Trends and Issues
2008 2009
• Growing traction of location- • Continued quest for optimal
aware services monetization model(s)
• Intensifying verticalization • Appealing to the SMB sector
• Dispersion through the mobile • More intelligent data mining
workforce
• Centralized approach to
• Progress on back-office mobility management
integration
• Growing emphasis on
• Emphasis on ROI as key selling customer satisfaction as key
point selling point
8

Polling Question
Which 2009 trend is most critical to the long-term
success of our four premium mobile applications?
• Finding the optimal monetization model(s)
• Appealing to the SMB segment
• Making data-mining more intelligent
• Implementing a centralized approach to mobility management
• Highlighting the customer satisfaction benefits of these solutions
9

Premium Mobile Apps
-- Enterprise Preferences and Plans --
10

First Quarter 2009 Mobile Apps Survey
• January 2009 online research survey.
• 150 enterprise mobile and wireless decision-makers.
• Sample divided evenly in terms of company size:
• Fewer than 500 employees
• 500+ employees
• Wide range of industries represented, including:
• Business/Professional Services
• Manufacturing and Distribution
• Telecommunications/IT
• Financial/Insurance Services
• Retail
• Healthcare
• U.S. vs. Canada representation.
11

Four Areas of Questioning
Field Asset
Management (FAM) Mobile Office
Local Field Fleet Wireless push email
Management PIM – Personal
Service Inventory Information
Tracking and Management
Management Security and
Mobile Product/Cargo management support
• Level of Perceived Need Tracking
Data Capture
Technologies:
and administration
Barcode scanning,
Image capture,
Wireless asset
tracking devices,
RFID, Sensor
• Plans for Deployment solutions, Location
tagging
Mobile Resource Mobile Sales Force
• Barriers to Implementation Management (MRM) Automation (SFA)
Worker Track, Locate, Wireless SFA on
Monitor handheld devices
Mapping & Navigation Off-line PDA SFA with
Exception Alerts and wired synchronization
Geo-Fencing to back-end CRM/SFA
• Measures of Success Messaging
Business Intelligence
systems
Laptop SFA – wired or
wireless
and Reporting
Central repository for:
Worker Management
(Time Cards, Job • Accounts
Progress Updates, etc.) • History
Scheduling, Dispatch, • Contacts
and Event Confirmation • Calendar
Data Collection • Tasks
(Signature/Image
Capture, Barcode • Inventory
Scanning, Wireless • Sales pipeline
Forms)
12

Level of Perceived Need – All Respondents
Question: How necessary is this solution in helping
to meet your organization’s business goals?
50
North America
45
40
35
Percent of Respondents (%)
30 Field Asset Management
25 Mobile Office
20 Mobile Resource Management
15 Mobile Sales Force Automation
10
5
0
Very Necessary Somewhat Not Necessary
Necessary at All
13

Level of Perceived Need -- U.S. vs. Canada
Mobile Resource
Management (MRM) Mobile Office
Question: How necessary is this solution in
helping to meet your organization’s
Very
Necessary
business goals? Very
18% Necessary
Not at All 30%
Not at All
Necessary Necessary
Somewhat 46%
56% Necessary • U.S. companies significantly Somewhat
26%
more likely to see value in Necessary
24%
Premium Mobile apps
Canadian Respondents • Most valued app – Mobile Canadian Respondents
Office – still shows wide
divergence in U.S. vs. Not at All
Not at All Canada perceptions Necessary
Necessary Very 15%
25% Very
Necessary
Somewhat Necessary
41%
Somewhat Necessary 54%
Necessary 31%
34%
U.S. Respondents U.S. Respondents
14

Deployment Plans – All Respondents
Question: Please indicate your organization’s current plans for
implementing this solution.
50
North America
45
40
Percent of Respondents (%)
35 Field Asset Management
30
Mobile Office
25
20 Mobile Resource Management
15
Mobile Sales Force Automation
10
5
0
Have app, Have app, No plans Plan to intro app No app, No plans to
Expanding within 12 to expand within 3 years deploy
months
15

Deployment Plans -- U.S. vs. Canada
Mobile Sales Force
Automation Mobile Office
Question: Please indicate your
organization’s current plans for
14% implementing this solution. 16%
12% 40%
56% 22%
8% • Striking difference in
10% willingness to deploy premium
12% 10%
mobile apps
Canadian Respondents • Most deployed app in Canada Canadian Respondents
sample – Mobile Office – still
shows wide delta between
U.S. and Canada 13%
4%
27% actions/plans
31% 37%
16%
6%
Have app, Expanding within 12 months
17% 19% 30%
Have app, No plans to expand
Plan to intro within 12 months
U.S. Respondents Plan to intro within 2-3 years U.S. Respondents
No app, No plans to deploy
16

Implementation Barriers – For Those With No Plans to
Deploy
Question: Please indicate which of the following are the most significant barriers to
implementing this solution within your company.
No perceived need 79.5%
Cost of implementation 22.7%
High TCO 19.2%
ROI benefits are unclear 9.5%
Other 9.0%
Security concerns 7.2%
Lack of internal expertise 6.5%
Lack of knowledge re: vendors/solutions 5.7%
Difficulty integrating into back-office systems 4.5%
Employee resistance 4.5%
Privacy concerns 4.0% North America
0 20 40 60 80 100
Average Percentage of Respondents (%)
17

MRM Implementation Barriers – U.S. vs. Canada
Question for companies with no plans to deploy MRM: Please indicate which of the following are the
most significant barriers to implementing an MRM solution within your company.
72%
No perceived
80%
need
64%
24%
Cost of 23%
implementation
25%
14%
High TCO 13%
14%
10%
ROI benefits 0%
are unclear 21%
0 20 40 60 80 100
All respondents
Canadian respondents Percent of Respondents (%)
U.S. respondents
Source: Frost & Sullivan Online Survey, January 2009
18

MRM Implementation Barriers – By Company Size
Question for companies with no plans to deploy MRM: Please indicate which of the following are the
most significant barriers to implementing an MRM solution within your company.
<500 Employees 500+ Employees
100 100
90 90
Percent of Respondents (%)
80 79% 80
70 70
60 60
50 50
40% 40% 40%
40 40
30 30
21%
20 20
13%
10 10 57%
0 0
No Cost of High No Cost of Unclear
need implementation TCO need implementation ROI
Source: Frost & Sullivan Online Survey, January 2009
19

MRM Implementation Barriers – By Organizational Level
Question for companies with no plans to deploy MRM: Please indicate which of the following are the
most significant barriers to implementing an MRM solution within your company.
CXO Respondents VP Respondents IT Mgr/Staff Respondents
100 100 100
90 90 90
Percent of Respondents (%)
80 79% 80 80
70 70 70
60 60 57% 60
50%
50 50 50
43%
40 40 40 38%
30 30 29% 30
26% 25% 25%
20 20 20
10 10 10
0 0 0
No Cost of No Unclear Cost of No Security High Lack of
need implementation need ROI implementation need Concerns TCO Expertise
Source: Frost & Sullivan Online Survey, January 2009
20

Implementation Barriers – For Those Planning to Deploy
Within Next Three Years
Question: Please indicate which of the following are the most significant barriers as to why your
organization has yet to implement this solution.
Cost of implementation 50.0%
Security concerns 32.0%
High TCO 31.5%
ROI benefits are unclear 29.7%
Privacy concerns 24.5%
Lack of knowledge re: vendors/solutions 15.5%
Lack of internal expertise 13.2%
Technology not ready 11.7%
Difficulty integrating into back-office systems 11.0%
Employee resistance 9.7% North America
0 20 40 60
Average Percentage of Respondents (%)
21

Polling Question
If you’re a vendor or channel for enterprise mobile
apps, which is your biggest challenge at this time?
• Creating the right product
• Selling through the right channels
• Pricing the solution appropriately
• Identifying key target markets
• Crafting effective marketing messages
22

Primary ROI Metrics for Current Users
Field Asset Mobile Resource Mobile Sales
Management Mobile Office Management Force Automation
43% - Improved 46% - Increase in 41% - Reduced 39% - Increase in
service response customer paperwork customer
times satisfaction satisfaction
41% - Increase in
29% - Faster 41% - Improved customer 34% - Increased
trouble ticket service response satisfaction sales
resolution times
36% - Increased 30% - Improved
29% - Increase in 40% - Increased job completion service response
customer sales rates times
satisfaction
30% - More 28% - More 28% - Increased
29% - Decrease in accurate billing accurate billing job completion
overtime hours rates
24% - Reduced
paperwork 22% - Reduced
paperwork
23

Conclusions
• Premium mobile applications are already viewed as business
enablers by a sizeable percentage of companies.
• Current users are ready to expand.
• Fence-sitters present a manageable array of concerns.
• Adoption barriers focus on lack of need, cost concerns, and
security/privacy issues. These barriers vary in intensity by
geography, company size, and organizational level.
• Marketing strategy is critical.
• These apps provide a competitive advantage now; but will soon
morph to become a competitive requirement.
24

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For Additional Information
Craig Hays
Naylor Gray Director of Sales
Global Marketing Information and Communications
(210) 247-24376 Technologies
ngray@frost.com (210) 247-2460
chayes@frost.com
Jeanine Sterling
Senior Industry Analyst
Mobile and Wireless Communications
(586) 263-4454
jeanine.sterling@frost.com
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