Mobilizing the Enterprise

Mobilizing the Enterprise Pervasive wireless infrastructure and the proliferation of smart mobile devices are enabling real-time access to e-commerce, payments, communications and information services across devices and application platforms like never before. Spurred by workforce virtualization, early adopters are significantly boosting operational efficiency and enhancing collaboration across silos and with customers and business partners. Enterprises that seize the opportunity will further differentiate themselves from the pack; those that hesitate may find themselves losing out to more proactive and aggressive rivals.| FUTURE OF WORK

Executive SummaryTo understand the pervasive impact that mobility is having onhow we work and live, consider Joe, a quintessential millennial,whose smart device is now the focal point of his personal andprofessional life. He arises at 5:30 a.m. after being awakenedby the alarm on his smartphone. A mobile/social exercise appimmediately activates, informing him of who among his friendsburned the most calories in the gym the day before. On hisway to work, he stops at a local coffee shop and pays for hisdaily dose of high-octane mochachino and a train ticket withhis NFC-enabled1 device. In the subway, he enters a contest towin free tickets to a basketball game by scanning the QR code2on a nearby billboard using his mobile.Joe then uses a discount coupon on his mobile from thenearby Staples store to buy office supplies. Once in theoffice, he punches in by passing his smartphone over anautomated time clock. To get reimbursed for supply purchases,he sends photocopies of the store receipt to the accountingdepartment using his mobile device. While in a meeting,Joe updates a client order just before it shipsby using his iPad to log into the corporate order The devices thatmanagement system; he earns praise from his first mobilized voiceclient for being so diligent. At lunch, Joe reviewshis monthly sales report with his manager on his communications yearsiPad. Before leaving work, he sends a photo of his ago have emerged aspaycheck to his bank, which immediately confirms a pervasive technologythe deposit. Joe closes his workday by passing hismobile over the time clock. that is now compelling enterprises to mobilizeJoe’s workday is not unusual. In fact, it is typical nearly every aspectof how many knowledge workers increasingly relyon smart devices to perform business-critical tasks, of work life.much like they live their personal lives. The numbers tellthe story: Despite stiff economic headwinds, smart devices3are flying off the shelves. Thus, the devices that firstmobilized voice communications years ago have emerged February 2012 MOBILIZING THE ENTERPRISE 2

as a pervasive technology that is now compelling enterprises to mobilize nearly every aspect of work life. Interestingly, the “consumerization” of business technology reveals an incredible role reversal. Historically, businesses were first movers in adopting new technologies. With mobility, however, individuals are leading the charge, and organizations are lagging adopters. Navigating this chasm presents enterprises of all shapes and sizes with major challenges, as well as tremendous opportunities. On the opportunity side of the equation, smart devices come with powerful features that redefine “real-time” business activity. They offer a potent source of operational agility and ever-increasing business value. On the customer front, organizations can use mobility to offer new communication channels and innovative services and products, strengthen their competitive might, and develop new revenue streams. On the operations front, mobility can be deployed to unlock productivity and reduce the cost of operations, while engen- dering a more collaborative and efficient work environment to satisfy a workforce that increasingly craves instant access to information and services similar to those they consume in their personal lives. Sensing this, early adopters across industries are proactively launching innovative, mobility-driven services for a wide swath of users — employees, customers and business partners. Organizations are now coming to terms with mobility’s ascension by allowing employees, with certain restrictions, to use their own devices on the job. Some also see mobility as a function that is forcing companies to rethink their business models, reinvent their organizations and rewire operations. However, the road to enterprise mobility is paved with myriad challenges and risks. These include: Integrating devices with enterprise information systems.3 FUTURE OF WORK February 2012

Overcoming daunting change management challenges, especially in preparing the IT department for disruptive change. Inherent technological volatility in the still maturing mobility space. Striking the right balance by which employees can use their own devices for work while retaining access control and preserving privacy and security.Organizations can architect their mobile future by understand-ing both internal and external requirements for enterpriseapplications and key business processes that need to berevamped. First, a holistic enterprise mobility strategy shouldbe developed to lay the necessary foundation (see page 17).While not an exhaustive list, this strategy should includeformulating the ground rules for identifying business priorities,identifying roles and privileges for accessing data andapplication services, making clear the organizational stance(be it aggressive or gradual), creating a holistic governancepolicy and possibly a mobility center of excellence within theenterprise, and addressing aspects of employee-owned devices.One key question for organizations to resolve is whether toembrace mobility on their own or in partnership with a capableTier 1 provider. When enterprises adopt mobility on their own,they typically incur large upfront capital expenditures, assumethe full risk of implementation failure, accept additional costsassociated with technology obsolescence and take on theburden of maintaining the skills and resources needed tomaintain new and ever-changing systems. An alternativearrangement is to hire a specialist to deliver enterprisemobility as a managed service. This model shifts theinvestment burden from costly capital expenditures tomore flexible operating budgets, since pricing is based on amonthly fee and consumption model. This approach allowsorganizations to reap mobility’s benefits while “variabilizing”fixed upfront costs and effectively transferring the risk oftechnology obsolescence to a partner. February 2012 MOBILIZING THE ENTERPRISE 4

The challenges and risks associated with mobility, however, aren’t overly onerous; in fact, early adopter experience indicates that despite ongoing technological volatility, difficulties can be overcome with rigorous planning and execution. A more conservative wait-and-see approach can backfire by prolonging implementation and time to value, putting organizations at risk of losing face — or worse, business — to more proactive and aggressive competitors. Peter Drucker, the late management guru, advised executive leadership teams to stop trying to predict the future. In his book Managing for Results, Drucker points out that organizations should prepare for “the future that has already happened” by identifying major events that have already occurred and will have predictable effects in the next decade or two. In this vein, mobility has already established itself as an irrevocable trend. If current mobile usage is any indication, it appears that the mobile future has already arrived. This white paper: Assesses the forces driving enterprise mobility. Reveals the benefits accrued through enhanced agility and new business opportunities. Explores early success stories and more innovative applications. Reveals potential challenges and workarounds. Offers a proven framework for embracing a flexible and fluid approach to contend with ongoing technological volatility, process renovation requirements and build/buy choices.5 FUTURE OF WORK February 2012

Forces Driving Enterprise MobilityFor the first time in the history of organized business, enterprises are compelled toplay catch-up with their customers and employees.For the most part, enterprises have not provided devices, tools and applicationsthat match the latest technologies used by employees in their personal lives. Thisleads to a less-than-ideal Sunday night/Monday morning experience for employees,in which their own personal technology is more enjoyable and productive than thatprovided by their organization. The significant popularity of smart devices (such asmobile phones and tablet computers) is reflected by rapidly rising sales, at a timewhen consumer-dependent industries (such as retail) are suffering from reducedcustomer spend.Rising Demand for Mobile DevicesThree forces — technology convergence, ubiquitous connectivity/computingand increasing affordability — are driving the demand for smart devices. TheInternational Telecommunication Union reports that there are 5.3 billion mobilesubscribers with 3G technologies in 143 countries.4 Forecasts indicate that the totalinstalled base of smart devices will exceed that of PCs and laptops in the next fewyears (see Figure 1).Sales of smartphones alone are expected to reach one billion, overtaking featurephones, and will account for a majority of mobile devices sold by 2015. Cisco saysmobile-connected devices, including machine-to-machine modules,5 will cross theseven billion mark, equaling the world’s expected population by 2015.6Increased use of Mobility by ConsumersWithout a doubt, consumers are at the forefront of the smart device revolution.Their appeal: greater convenience and utility. By allowing access to informationanytime and anywhere for real-time decision-making, mobility has empoweredconsumers in a multiplicity of ways. These devices are indispensible, changingthe way news, music, games and social media are consumed. They are also trans-forming shopping behavior, providing consumers with more information at theirfingertips than retail associates, themselves. A Google and IPSOS OTX MediaCTsurvey concurs: 79% of 5,013 smartphone owners surveyed in the U.S. used aGrowth of the Gadget 800 FORECAST Device shipments (millions) 700 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Devices in use: Smartphones Tablets 100 million 1 billion Desktop PCs Laptop PCs PCs in 1993 PCs in 2008 10 billion mobile connectedSource: The Economist devices by 2020 (forecast)Figure 1 February 2012 MOBILIZING THE ENTERPRISE 6

smartphone to help with shopping, and 74% made a purchase following research conducted on their devices.7 Innovative applications are enabling customers to sync and access their personal data effortlessly through smart devices that make use of near-pervasive bandwidth across the globe. For example, mobile payments and m-commerce are set to garner a significant share of overall e-commerce in the coming years. All this — combined with the convenience and comfort of using one smart device for a multiplicity of functions — is fueling consumer demand and adoption. Increased Use of Mobility by Employees Employee preference to use smart devices at work to access business information is growing rapidly, according to a recent IDC study that surveyed 3,000 workers from nine countries.8 The study adds that half the respondents used their devices to work while on vacation, The use of mobile 29% used them in bed, 20% while driving, and 5% when at a computing in business place of worship. With employees relying more on consumer technology for work and personal purposes, the line dividing today goes far beyond employees’ personal and professional lives is blurring fast. The use of mobile computing in business today goes far beyond e-mail access, messaging e-mail access, messaging services and horizontal applications. The services and horizontal ecosystem now includes access to core enterprise applications, both services and data. Today’s computationally powerful and smart applications. devices with high-resolution screens allow employees to query, access and view business data in an engaging format in real-time, even when they are off-premises. Similarly, operational and field workforces now have the ability to capture and share corporate data in real-time, using smart devices with built-in sensors, thereby improving the ability of employees to collaborate among themselves and with customer and partners. Changing workforce demographics are likely to spur further demand for smart devices in the workplace, especially the growth of millennials, with their penchant for technologies that enable just-in-time information and social networking. Yankee Group notes that 60% of workplace smartphones are selected and bought Devices Used to Access Business Applications Q: Which, if any, of the following devices do you use to access your organizations business applications, such as employee benefits, customer billing, client relationship tools or productivity tools, such as spreadsheets, word processors, etc.? 2010 2011 30.7% Personal PC, 40.7% smartphone Personal PC, smartphone, tablet 69.3% 59.3% Business PC, Business PC, smartphone smartphone, tablet Personally-owned Company-owned Base for 2010: 2,820 responses from enterprises with Base for 2011: Over 3,000 information workers and 500 or more employees from 10 countries. business executives from nine countries. Source: IDC Information Worker Custom Survey, sponsored by Unisys, May 2011 and May 2010. Figure 27 FUTURE OF WORK February 2012

by employees, while 23% of them intend to buy one in the next year. Companieswith a more mobile-savvy workforce are already experiencing this change. Theincreasingly mobile-ready employee base is expected to account for one-third ofthe global workforce of nearly 1.2 billion by 2013, according to IDC.Dawn of BYODEmployees’ demands for permission to use their devices was initially met withcorporate responses that ranged from refusal to denial. However, this is changing,as companies begin to support the BYOD (bring your own device) movement,albeit with carefully drawn limits and controls (see Figure 2, previous page).Various studies corroborate the emerging trend of corporate acceptance of BYOD.A Citrix global survey indicated that nearly all respondents will have a BYOD policyin place by 2013, with the U.S. (56%) leading in BYOD policies and the UK (37%)lagging behind9 (see Figure 3). Companies not supporting BYOD cite security, legaland HR concerns as the reasons. Good Technology’s report on BYOD suggests thatbig companies within the finance, insurance and healthcare industries are leadingthe BYOD movement, even while they operate within stringent security, regulatoryand compliance environments, while other industries are belatedly following suit.10But to be sure, companies are playing their BYOD cards on their terms. They aredefining the devices and applications that will be supported and managed foremployee-owned devices. Companies are limiting the choices for devices, platformsand apps, mainly to save on costs, ensure security and reduce complexity.Agility with MobilityThe foremost benefit of enterprise mobility is the agility that it promotes. Enter-prise mobility deploys the powerful features of smart devices to enable real-timedecision-making and other activities that satisfy both customers and employees.Mobile-enabled agility is a significant source of value. Business benefits can bederived by fortifying the enterprise’s competitive might and/or by facilitatinginnovative new offerings that generate new revenue streams. Also, mobilityWhen First BYO Policy Will Be In Place India Australia Canada U.S. Netherlands Germany UK Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% By mid-2013 (cumulative) Already in placeBase: 700 IT professionals in seven countries, including Australia, Canada, Germany, India, Netherlands, U.S. and UK.Source: Citrix Global BYO IndexFigure 3 February 2012 MOBILIZING THE ENTERPRISE 8

facilitates numerous ways to reduce the cost of operations by eliminating paperwork, empowering customers with self-service apps and remedying long-felt customer and employee pain points. Companies can also tap into the customer insights that are unique to their organizations to customize services and strengthen their competitive position. Opportunities for revenue enhancement within existing streams, as well as new sources of revenue, can be leveraged when mobility is unleashed in thoughtful and innovative ways. For instance, retailers are making use of location-aware technologies to promote their businesses to customers in close proximity to their physical presence, often with customized offers. Sales teams that carry In certain industries, customers are willing to pay for information. mobile devices with access In such cases, commercializing data services represents a new source of revenue. A research study published in Journal of Interactive to enterprise systems Marketing finds that branded mobile apps can help build consumer interest in new product categories and create positive vibes toward are more empowered to these brands.11 Moreover, sales teams that carry mobile devices with access to enterprise systems are more empowered to successfully successfully deal with, and deal with, and perhaps even impress, customers on-site. perhaps even impress, Other areas include improved decision-making by senior executives, as well as better risk and disaster management. Mobility can also be customers on-site. used to maintain and strengthen customer brand loyalty and as a new and unique outbound marketing channel. In addition to customer value, mobility offers abundant scope for improving productivity, thereby driving down operational costs in ways previously not possible. Early-Mover Experiences with Enterprise Mobility With enterprise mobility on the cusp of business criticality, innovative and enterprising early movers across many industries are adopting mobility to drive enhanced customer satisfaction and employee productivity. Some companies have let customers use their smart devices to search for and buy products and services. In the travel and hospitality industry, customers are empowered to take charge of corporate tasks, such as booking airline flights and checking in using mobile passes and tickets. Insurers allow their customers to use mobile apps to file and subsequently check the status of insurance claims and request assistance or member services. In healthcare, mobile apps now allow patients to share their medical records with doctors and other industry professionals. Mobile App Adoption Drivers Operational efficiency 47% needs to improve Belief that mobile apps will provide 44% competitive differentiation Want to accelerate 40% time-to-decision-making Employees demanding it 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Response base: 573 Percent of respondents Source: Aberdeen Group, September 2011 Figure 49 FUTURE OF WORK February 2012

Retailers are at the forefront of mobile innovations to empower customers andenhance their overall shopping experience. Banks offer customers access to theirservices on-the-go. And while mobility has become a gateway to physical worldretailing, it is also fast becoming the electronic wallet, covering the entire shoppingspectrum, combining store and bank in one device.In addition, companies are developing innovative apps12 that make use of thefeatures of smart devices, such as accelerometers, GPS systems, gyroscopesand high-resolution cameras. Such apps enable game-changing services such asaugmented-reality13 and location-aware technologies (see sidebar). For instance,a big automaker plans to offer cars that automatically send critical informationabout their condition, such as low-battery, overdue maintenance checks or adeflated tire, to the user’s smart device. With early movers launching carefullytargeted apps, customers are lapping up these mobile apps (see Figure 4,previous page), as witnessed by download activity that is forecast to exceed18 billion this year.Meanwhile, adoption and use of apps that run on smart devices for socialnetworking, gaming, maps, music, weather and news is surging. Marketers, usingpowerful business intelligence and analytics tools, are gaining valuable insightsfrom the online trails customers leave behind that contain a treasure trove of dataabout their preferences and choices. Armed with these insights, organizationscan precisely target customers to sell personalized products and services throughsmart devices. This has led to the emergence of mobile as a new, robust channeland customer touchpoint that is distinct in many ways from existing ones.Early adopters, such as those in retail, see enterprise mobility as a transformativetechnology that helps them improve on and benefit from the customer interaction.Many customers find location-sensitive mobile coupons very useful and convenient,hence offering retailers the much-desired potential to increase shopper loyalty andoverall share of wallet.Elsewhere, mobility is leading to disruptive change. In the payments space — asegment that has long been the bastion of the banking industry — radical changeis clearly underway. Non-banking players are emerging on the payments sceneand swiftly outmaneuvering traditional institutions, creating a new mobile Innovation, Here and Now When it comes to enterprise mobility, the future is already here. Some examples: Augmented reality: The “monocle” feature in mobile apps from online review site Yelp allows users to point their smartphone or tablet cameras to access digital information and ratings of nearby businesses. Shopping search engine TheFind.com’s free app, Catalogue, allows users to visualize how a product, such as a chest of drawers or a painting, looks against a wall in a room by overlaying the product onto the live view from the built-in camera of smart devices such as the Apple iPad. Location-aware: This approach makes use of hardware components such as GPS, WiFi and other connectivity mechanisms built into smartphones to pinpoint a user’s location. A Japanese family was able to confirm that their daughter was safe after a 9.0 magnitude earthquake struck Japan in March 2011. Using TekTrak, a mobile tracking app, the family knew the girl’s exact location at various times throughout the day and the route she took back home, an ordeal that lasted seven hours. February 2012 MOBILIZING THE ENTERPRISE 10

payments ecosystem à la PayPal on the Web (and now on mobile devices, as well). For example, innovations from companies such as Square are transforming customer smartphones into credit cards to make and receive payments using an app/hardware combination issued for free by the company.14 Additionally, mobility is enabling organizations to reduce costs and improve worker productivity (see Figure 5). For instance, Anheuser-Busch InBev implemented a mobile enterprise application platform (MEAP), a middleware layer that enables disparate devices to access a single set of applications, data and services. MEAP is intended to improve the productivity of the company’s field sales and services team’s direct store delivery (DSD) operations. The app enables more accurate and timely invoicing through the availability of real-time data. As such, end-to-end invoice processing was streamlined, resulting in a 15% reduction in days sales outstanding (DSO), from 45 days to 39 days. In addition, the company achieved ROI in six months and a positive cash flow by the third month.15 In another case, a major pharmaceutical company equipped its 7,000-member sales force — which makes sales calls 240 days a year — with smart devices pre-loaded with customized information for each doctor and his/her specialty practice area. This initiative reduced time for preparing sales pitches from two hours to just minutes, reducing customer acquisition costs and, importantly, allowed sales people to use the saved time to make additional calls to prospective customers, thereby generating additional revenues. Tablets and smartphones are also being used by employees to place orders for inventory, access customer information, capture business orders and customer data and collaborate with internal teams in real-time to provide better service to customers. For instance, insurance agents carrying tablets can customize and effectively present their products, create customized client illustrations on the fly, show comparisons with competing products and complete application forms, replacing inefficient paper-based forms. In retail, shopping aids such as user opinions, competitor prices and reviews are delivering insights to help consumers make smarter purchase decisions at the point of sale. Sales teams dealing with such information-laden customers can be easily overwhelmed or, worse, placed at a disadvantage if their own tools are not Benefits of BYO Improved employee satisfaction Increased worker productivity Greater mobility for workers More flexible work environments for employees Reduced IT costs Attracting/retaining high quality staff Better quality of devices used by workers Better care and/or longevity of devices Reduced device management requirements for IT Faster on-boarding of employees and third parties Improved business continuity Other 0% 10% 20% 30% 40% 50% 60% Percent of respondents Base: 700 IT professionals in seven countries, including Australia, Canada, Germany, India, Netherlands, U.S. and UK. Source: Citrix Global BYO Index Figure 511 FUTURE OF WORK February 2012

up to snuff. Elsewhere, mobility is also leading to more efficient supply chains. Littlewonder, then, that the majority of respondents to an IDC survey believe that tabletcomputers will replace enterprise PCs in the next two to five years (see Figure 6).Mobility solutions can help sales teams to: Enable faster customer checkouts. Ensure availability of products with timely replenishment orders to warehouses. Access data and information using smart devices to answer customer queries. Enhance the customer buying and shopping experience.Barriers Make Enterprise Mobility a Tightrope WalkThe proliferation of smart devices in the workplace is creating some friction,especially within corporate IT departments. Among IT’s primary worries: Security concerns and compliance issues (due to lack of control over employee- owned devices). Complexity involved in supporting a heterogeneous device ecosystem. Costs involved in developing mobile apps and creating or implementing and subsequently integrating a middle layer (MEAP) with the existing infrastructure. Limited IT budgets and qualified professionals, as well as dealing with the diverse array of smart devices (Apple iOS, Android, BlackBerry and Windows). Contention with PCs and laptops as the preferred workplace tool of choice.Add in enterprise integration challenges and the rapid pace of mobile technologyadvancement, and it’s no wonder that IT departments are feeling the heat(see Figure 7, next page).Security ConcernsSecurity reigns as the top concern for IT in implementing enterprise mobility.In June 2011, Trend Micro surveyed 600 decision-makers at medium- and large-sized businesses across countries and industry verticals and found that 64% ofrespondents cited security, 59% data loss and 43% compliance as their majorconcerns in allowing personal devices to be used in the workplace.16 As the BYODtrend accelerates, IT departments are becoming wary of the tradeoffs they needto make in allowing mobile devices into the enterprise while ensuring employeesatisfaction, reduced support costs and enforcement of data security policies.Media Tablets: PC Replacements?Q: When do you believe media tablets will be fully capable to replace PCs as an enterprise computing platform? 35 (Percent of respondents) 30 25 20 15 10 5 0 18-23 24-35 36-47 48-59 60+ months months months months monthsResponse base: 53Source: IDCs North American IT Enterprise Buyers and Device Life-Cycle Management Practices Survey, 2011Figure 6 February 2012 MOBILIZING THE ENTERPRISE 12

Lack of standardization makes it tough for companies to enforce enterprise security policies and exert their control over employee-owned devices. Moreover, employees preferring to use their own devices for both personal and work purposes raise issues in the areas of compliance, data security and privacy, particularly if devices are lost or stolen. Companies face unique challenges in such cases as tracing and wiping them clean of sensitive corporate data. Heterogeneity Already prohibitive, the cost of managing and supporting heterogeneity is steadily increasing, with numerous device models, six to eight mobile operating systems, device-specific features and usage patterns. Meanwhile, IT budgets are under con- stant pressure, and the job of finding qualified professionals to support the expanding universe of devices and operating systems is an increasing chal- As the BYOD lenge in and of itself. As more employees request mobile access to enterprise data and applications, support costs and the burden on IT trend accelerates, staff rises. IT departments Another heterogeneity challenge is preventing the use of low-end mobile devices that reduce productivity in BYOD-supported archi- are becoming wary of tectures. The rapid adoption by customers of smart devices and different mobile platforms increases management complexity, the tradeoffs they inexorably. In such a scenario, developing apps and supporting device-platform-app combinations for both employees and customers need to make in allowing forces organizations to incur significant expenditures. A lack of coor- dination and communication among key support functions, as well as mobile devices into the a reluctance on the part of IT departments to support these devices, enterprise while ensuring can severely undermine enterprise mobility. Getting IT departments to cede and share control of technology with the business units is a employee satisfaction, daunting change management challenge, to say the least. Integration of Enterprise Information Systems reduced support costs with Devices and enforcement of data Another big concern for companies is ensuring seamless integration of enterprise mobility solutions with their existing infrastructure. An security policies. IDC survey attributes this to a gap in skills required to lead integration initiatives. The report notes that 20% of companies found it hard to Mobile Technology Deployment Issues Q: Which of the following mobile deployment issues has your organization experienced (select all that apply)? Security and compliance issues Issues in linking mobile platform to existing database Cost overruns and budget issues Took longer to deploy than anticipated Project scope extended or changed leading up to or during deployment Version control issues between mobile OSs and other applications Too complicated to install, manage and support Minimal interest and adoption by mobile workers in the organization Vendor or provider did not have necessary expertise to deliver project Other (please specify) None Dont know 0% 10% 20% 30% 40% 50% 60% Percent of respondents Source: Worldwide Mobile Security 2010-2014 Forecast and Analysis, IDC, March 2010. Figure 713 FUTURE OF WORK February 2012

install, manage and support mobility, while more than 40% faced integration chal-lenges with existing databases and mobility platforms.17 As CIOs look to unleashmobility to achieve long-term business goals, they will need skilled and mobility-savvy IT workers to ensure successful deployments.Amid persistent economic uncertainty, many companies remain laser-focusedon using existing IT resources to contain costs and power new businesscapabilities. However, they will need to invest heavily in upgrading their skill sets andadding experts with proven pedigrees in enterprise mobility to tap into existing andlonger-term business opportunities, be they driven by revenue, productivityor cost-containment.Technology ObsolescenceBecause of its relative immaturity, the risk of technology obsolescence andvolatility is high in the enterprise mobility market. Shorter technology refreshcycles — due to rapid advances in mobile technologies, device capabilities andfeature sets, operating systems and application software — are big barriers fororganizations looking to invest in enterprise mobility solutions.Adding to the risk of technology volatility are challenges such as a fragmentedmobile technology market with software interoperability issues and thestill-evolving nature of mobile standards.Resolving the BYOD ConundrumAs with any disruptive change, BYOD brings to the forefront challengingcorporate issues such as a lack of control over employee-owned devices, regulatorycompliance, security and privacy concerns, data governance and monitoringissues and increasing complexity of IT environments, application management andassociated costs. Additionally, there is a need to involve and gain buy-in from manydepartments on BYOD policies, in areas such as HR, IT, legal, finance and facilities.For now, companies can look at implementing well-thought-out device policies thatallow organizations to limit, control and manage devices; prevent low-end devicesthat reduce productivity; and account for upgrades, with periodic reviews of devicepolicies that are communicated to employees and customers.Shaping a Mobile FutureEarly adopters of enterprise mobility are realizing significant business benefitsand envisioning new and creative ways to extend competitive advantage. Manyorganizations, however, are employing a wait-and-see strategy to learn from theimplementation experience of others before developing mobility roadmaps.Getting enterprise mobility right is all about prioritization, striking appropri-ate balances and making delicate tradeoffs. A good starting point is gaining anunderstanding of the way customers and employees are using (and want touse) mobility, as well as the likely ways that it can be introduced. The realiza-tion that mobility is not merely about technology is of paramount importance. Acritical next step is developing a holistic mobility strategy that lays the founda-tion and ground rules for enterprise mobility implementation and evaluating thealternatives of either hiring a third party or doing it yourself. Introducing changemanagement efforts to inculcate a mobile mindset is essential for gaining enter-prise mobility acceptance and adoption, a situation that is hyper-critical in organi-zations with a preponderance of older and technologically challenged employees. February 2012 MOBILIZING THE ENTERPRISE 14

Understanding Mobile Behavior After developing better visibility and insight into the adoption of consumer technologies by customers and employees, organizations must gain a clear understanding of business processes, customer interaction processes and how employees work. This will enable them to first leverage the capabilities of mobile devices to optimize how they work across functional silos and then maximize business The realization that benefits with customers and partners. mobility is not merely The competition’s use of mobility across industries could be another avenue for understanding the magnitude of unmet needs and the about technology is possibility of creating new go-to-market features. Such understanding should also guide the need to redesign select business processes, as paramount. A critical well as organizational roles and data/app services access privileges, for reaping mobility’s benefits to the fullest. next step is developing a Mobility Strategy holistic mobility strategy The strategy should focus on creating a comprehensive mobility agenda that defines the objectives and ground rules for screening competing and evaluating the business areas that demand attention for mobility enablement. The criteria could include the potential for creating or strengthening the alternatives of either competitive ability to create new revenue streams by remedying long- hiring a third party or felt customer and/or employee pain-points. Further, companies should optimize investments by closing the gap between business unit demand doing it yourself. for mobility and deployment readiness. The strategy should steer clear of the issue of organizational stance, whether it’s aggressive or gradual or a mix of both. A governance policy should be instituted that lays out with strategic clarity all corporate imperatives, including the BYOD policy. A guiding body should be formed to drive the agenda, à la a mobility center of excellence. Mobile Apps Business areas that pass through the filter of enterprise mobility strategy become prime candidates for initial app development. A strong focus on usability and the ability to strengthen the brand should guide the process. A one-size-fits-all approach to apps can be counterproductive. Apps that perform a specific function mapped to the role of an employee improve effectiveness and incur lower costs for deployment across the organization.18 Deployment should be based on how users will interact with mobility solutions and devices to derive maximum mileage. Organizations should not ignore the installed base of feature phones, which still account for a majority of the mobile devices sold worldwide, as this poses a major business opportunity. Dealing with the Devices Organizations need to implement mechanisms to deal with a rapidly evolving consumer technology world. Important areas that require attention include governance, which determines the decision criteria for which devices and apps are supported; a BYOD strategy that sets the management and monitoring policies for devices and determines which types are allowed and for what purposes; and security policies to alleviate concerns from external threats, enforce privacy considerations and detail robust security procedures. Provide Freedom within a Framework We believe that organizations should consider providing the freedom of choice demanded by the wave of technology consumerization, albeit within an overall15 FUTURE OF WORK February 2012

Freedom Within A FrameworkOur approach to enterprise mobility enables IT to offer an ecosystem within which solutions can be built in a standard fashion. Gove t rnanc por e Sup Innovation User Experience y rit cu Design Se Tec Business hno & log Objective e y nc ia Use Cases pl m Co Business drives market-driven solutions within this framework. IT builds and owns the framework.Figure 8framework that strikes a balance between the forces craving independence and theorganizational need to maintain appropriate control.Organizations must be cognizant of the diversity present in the mobile ecosystem,which poses unique move-forward IT and business process challenges. Factors thatwill be paramount to the success of mobility deployment in anyenterprise include scalability, reigning in support and development IT departments needcosts, extending existing security structures and operationalprocedures. IT departments need to play the crucial role of to play the crucial rolemarrying business needs with technology requirements, whileproviding business units with the freedom to extend mobility to of marrying businessbusiness solutions that meet business and customer requirements.A framework that is structured, well-defined and scalable will needs with technologysupport this freedom, which we term “Freedom within aFramework.” Four components that constitute the framework are: requirements, while Technology: Components (hardware, software and services) providing business required to support new devices owned by employees and customers. units with the freedom Governance: Policies that govern the device lifecycle, use of business networks and data. to extend mobility to Compliance and Security: Tools, policies, data containment, device strategies, and organization and industry-specific business solutions that mandates that need to be met. Support: Skilled personnel to manage mobility and its related meet business and applications for employees and customers. customer requirements.By using this framework, it is possible to provide customers with innovativeservices through native19 and mobile Web apps20 that enhance the user experience,productivity and utility. The framework provides business units with the necessarycomponents for the development of market-driven solutions in a standardizedfashion. The framework (as illustrated in Figure 8) helps organizations prescribeguidelines for app design, development, testing, usability and security. February 2012 MOBILIZING THE ENTERPRISE 16

Build or Buy Dilemma A key decision point is whether to embark on embracing enterprise mobility with in-house resources or buy these through an arrangement with an external service provider. Pursuing the in-house path to mobility requires organizations to have the wherewithal to bear significant upfront Cap-Ex investments and be willing to contend with technology volatility and a lack of skilled resources, among other issues. Sourcing: The Case for Cloud and Managed Services Cloud-enabled, mobility managed services enable enterprises to enjoy the rewards of enterprise mobility without the risks of infrastructure ownership or the burden of supporting the resources required to develop and maintain the applications. One of the advantages of this approach is to convert the fixed costs associated with providing enterprise mobility services to variable costs that best align with demand levels. Organizations are also better positioned to address device and operating system heterogeneity, as well as other complexities, including the continuous need for upgrades to remain in sync with ever-evolving device, software and network advancements. Organizations should consider entering into strategic partnerships with Tier 1 companies capable of extending support to mobile transformation efforts by offering advice and a range of services under one roof, including cloud- based mobile infrastructure and mobile app development, through testing and optimization. This arrangement also effectively transfers the risk of technology obsolescence to the provider. Experimenting first with pilot programs can provide much-needed insights for a larger deployment. Doing so allows organizations to gain the transformative experience required to be better prepared for organizational change. The Road Ahead Enterprise mobility is no longer an option, but rather a critical business require- ment. Winning the future will require companies across industries to embrace mobility platforms that unlock productivity and competitive advantage and optimize ongoing process changes that span the core operating model. Whether organizations are expanding existing architectures or starting fresh by building or acquiring new IT infrastructure via managed services, they will need to tread carefully by making tradeoffs that balance the aforementioned risks and rewards that co-exist with today’s business constraints and tomorrow’s demands for anywhere, anytime information access. Organizations that delay embracing the inevitable proliferation of enterprise mobility may find themselves hamstrung by inflexible legacy systems environments that put them at a severe disadvantage compared with more adventurous and risk-tolerant competitors. By taking a gradual and measured path, organizations can more effectively rewire their operations and survive ongoing business challenges, while embracing tools and techniques that power new organizational structures and facilitate more collaborative and real-time ways of working. Keep in mind that Joe and all the other millennial workers of today and tomorrow not only see mobility as integral facets of their professional and personal lives; they outright demand it. So, when it comes to enterprise mobility, tread carefully, but tread!17 FUTURE OF WORK February 2012

Footnotes Near Field Communication-enabled smartphones use radio communication to1 exchange data when brought into close proximity with other such devices.2 Quick Response code is a popular two-dimensional barcode with large storage capacity that allows its contents to be decoded at high speed.3 Smart devices include smartphones, tablet computers and on-the-go devices.4 “The World in 2010: ICT Facts and Figures,” International Telecommunication Union, Oct. 20, 2010. www.itu.int/ITU-D/ict/material/FactsFigures2010.pdf5 Devices such as energy meters, medical devices, mobile POS terminals and vending machines use M2M mobility to allow other machines to monitor and read their states using “embedded connectivity.”6 “Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015,” Cisco, Feb. 1, 2011. http://www.cisco.com/en/US/solutions/collateral/ ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.html7 “The Mobile Movement: Understanding Smartphone Users,” Google, April 2011. http://www.gstatic.com/ads/research/en/2011_TheMobileMovement.pdf8 “IDC Unisys Study: 2011 Consumerization of IT Study: Closing the Consumerization Gap,” IDC, 2011. http://www.unisys.com/unisys/ri/report/ detail.jsp?id=11200009700167101789 “IT Embraces Bring-Your-Own Devices,” Citrix, 2011. http://www.citrix.com/lang/ English/lp/lp_2314315.asp10 “Good Technology State of BYOD Report,” Good Technology, Dec. 2, 2011. http://www.good.com/resources/Good_Data_BYOD_2011.pdf11 “Dialing for Dollars with Phone Apps,” Strategy+Business, Oct. 21, 2011. http://www.strategy-business.com/article/re00164?gko=3acde&cid=20111110rr12 These applications are lightweight mobile applications that offer simplified inter- faces to search, shop, play and pay, providing instant gratification to customers.13 Augmented-reality apps allow users to point their phone’s camera and pull up relevant information about it from various sources.14 Square provides an app/hardware combo that lets people accept payments through a compatible smartphone, such as the iPhone. Its Card Case app allows individuals to make location-based payments, as well, https://squareup.com/15 Anheuser-Busch InBev implemented a mobile enterprise application platform for its field sales and services team, “AB InBev Award-Winning Mobile Solution Accel- erates Growth And Innovation,” Spring Wireless, 2010. http://media.redclaycms. com/sites/344/documents/InBev_Case Study_Spring Wireless.pdf16 Cesare Garlati, “Trend Micro Consumerization Report 2011,” Trend Micro, Sept. 30, 2011. http://consumerization.trendmicro.com/talking-with-the-first- director-of-consumerization/17 “Worldwide Mobile Security 2010–2014 Forecast and Analysis,” IDC, March 2010. http://www.idc.com/research/viewdocsynopsis.jsp?containerId=222348 February 2012 MOBILIZING THE ENTERPRISE 18

18 “Enterprise Mobile Apps: How Role-Based Apps Will Drive Productivity and Transformation in Manufacturing Companies,” Cognizant Technology Solutions, July 2011. http://www.cognizant.com/InsightsWhitepapers/Enterprise-Mobile- Apps-How-Role-Based-Apps-Will-Drive-Productivity-and-Transformation-in- Manufacturing-Companies.pdf A native app is a software application written specifically to work with a 19 device’s operating system and functionality and is usually managed through an app store. 20 Mobile Web apps use a mobile browser, with access to the Internet to display a Web application or mobile URL customized for devices. References Kamesh Pemmaraju and M.R. Rangaswami, “Tug of War Between Business Value & Risk,” SandHill Group, 2011. “Techbits Package, BusinessWeek, Nov. 23, 2011. http://www.businessweek.com/ap/ financialnews/D9R6GSL00.htm “Beyond the PC,” The Economist, Oct. 8, 2011. http://www.economist.com/ node/21531109 Andrew Borg, “Enterprise Mobility Management Goes Global: Mobility Becomes Core IT,” Aberdeen Group, July 27, 2011. http://www.aberdeen.com/Aberdeen- Library/7282/RB-enterprise-mobility-management.aspx “Motorola Solutions: Market Barometer 2011 Hospitality,” Motorola, Q2, 2011. http://mediacenter.motorolasolutions.com/imagelibrary/downloadmedia. ashx?MediaDetailsId=1570 “TekTrak Customer in Japan Locates Daughter After Earthquake,” TekTrak, April 12, 2011. http://blog.tektrak.com/2011/04/12/tektrak-customer-in-japan-locates-daughter-after-earthquake/ “Mobility: Its Impact, Opportunities, And Challenges,” SAP, 2011. http://www.sap. com/campaigns/2011_04_mobility/assets/Mobility-Its_Impact_Opportunities_and_ Challenges.pdf “Enterprise Mobility Guide,” Sybase, 2011. http://www.sybase.com/mobilityguide19 FUTURE OF WORK February 2012

CreditsAuthorsAala Santhosh Reddy, Senior Research Analyst, Cognizant Research CenterRajeshwer Chigullapalli, Head, Thought Leadership Practice, Cognizant Research CenterHarold Albo, Jr., Director, Cognizant Business Consulting, Strategic ServicesJeffrey Wallace, Assistant Vice President, Cognizant Mobile Services PracticeDesignHarleen Bhatia, Design Team LeadSuresh Sambandhan, DesignerAbout CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out ourcing services, dedicated to shelping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passionfor client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodiesthe future of work. With over 50 delivery centers worldwide and approximately 130,000 employees as of September 30, 2011, Cognizant is amember of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastestgrowing companies in the world.Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.

World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 inquiry@cognizant.com European Headquarters 1 Kingdom Street Paddington Central London W2 6BD Phone: +44 (0) 207 297 7600 Fax: +44 (0) 207 121 0102 infouk@cognizant.com Continental Europe Headquarters Zuidplein 54 1077 XV Amsterdam The Netherlands Phone: +31 20 524 7700 Fax: +31 20 524 7799 Infonl@cognizant.com India Operations Headquarters #5/535, Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 inquiryindia@cognizant.com Australia Cognizant Technology Solutions Australia Pty Ltd Level 15 14 Martin Place Sydney, NSW, 2000 Australia Phone: +61 2 9223 3988 Fax: +61 2 9233 5315 inquiryaustralia@cognizant.com Hong Kong 62/F, Suite 6201, The Center 99 Queen’s Road Central, Hong Kong Phone: (852) 2273 5393 (852) 2273 5395 Fax: (852) 3965 3222 inquiryhk@cognizant.com© Copyright 2012, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject tochange without notice. All other trademarks mentioned herein are the property of their respective owners.

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