How to Assess the ROI of your Mobile App Initiatives

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How to Assess the ROI of your Mobile App Initiatives

Whether you’re a business leader or an IT professional, ensuring that your mobile projects deliver a meaningful ROI is a priority for companies across the globe. In some cases, the focus on the ROI calculations can take longer and cost more than the actual mobile app creation. It's time to assess the ROI of your mobile App initiatives.

The truth is this: you can avoid analysis paralysis with some simple steps.

Join Larry Lauvray, co-Founder of Propelics, as he discusses both the qualitative and quantitative return on your mobile investment, and how to get started with low risk and high-return initiatives.

Download these information packed webinar slides to learn:

-Where to start and how to avoid analysis paralysis
-What are the key dependencies and potential barriers to your mobile app
-Critical privacy and security considerations
-How does BYOD factor into your ROI
-Case studies with both qualitative and quantitative examples

Published in: Technology, Business
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How to Assess the ROI of your Mobile App Initiatives

  1. 1. Welcome. @propelics How to Assess the ROI of Your Mobile App Initiatives! ! ! August 22nd, 2013!
  2. 2. Propelics Background – About Us 2 •  15+ year track record •  Fortune 500 clients •  Global experience •  100% focused on mobile for the Enterprise •  San Jose, Boston, Pittsburgh Propelics creates mobile strategies and world class 
 Apps for the Enterprise.
 
 Trusted by companies like yours:
  3. 3. •  Enterprise Mobile Strategy Services Enterprise Mobile Strategy Mobile App Portfolio Mobile App Scoping & Planning IT Readiness for Mobility BYOD and MDM Strategy Innovation through visualization Center of Excellence Creation •  Mobile Advisory Services Mobile Mentoring Executive Education Speaking Engagements •  Managed Services UX Design Mobile App Architecture Onshore and Offshore App Development Mobile App Support and Administration What We Do
  4. 4. Larry Lauvray: Partner and Co-Founder 4 Larry has the unique ability to translate product plans into industrial grade solutions while making sure that the details don't get "lost in translation". He has used his exceptional analytical abilities to separate hype from reality as he advises companies on execution plans for their product and program roadmaps. larry@propelics.com  
  5. 5. Agenda! 5 •  Defining the Qualitative & Quantitative “Return” of ROI •  Where to start and how to avoid analysis paralysis •  What are the key dependencies and potential barriers to your mobile app •  Critical privacy and security considerations •  How does BYOD factor into your ROI •  Case studies and examples •  Q&A Missed your topic? propelics.com/lets-talk!
  6. 6. Q: What is a typical ROI for a mobile app? 6  
  7. 7. Define the type of “return” you expect from your mobile apps
  8. 8. 8" The Paralyzing Quantitative Return" Regulatory &! Compliance! Satisfaction! ! Customers! Partners! Employees! Brand! Recognition" Cost! ! Cost Avoidance! Savings! ! Customer! Retention! ! Revenue! ! New Revenue! Revenue Retention! Revenue increase! Business! Simplification! The Vague Qualitative Return

  9. 9. Quantitative ROI! ! Numerator = Large Benefit Potential! Denominator = Fixed + Variable Cost! N! D! =! Benefit! Cost to Deliver! **Note: The mobile apps cost << typical enterprise projects"
  10. 10. Qualitative ROI! ! First-order impact: Adoption + Retention! Second-order impact: Revenue + Savings! Ease of Use Improve Adherence Extended Demographic
  11. 11. Q: How do we avoid Analysis Paralysis? 11  
  12. 12. #mobilestrategy" 12   Find areas that are “no brainers” where you can impact the largest numbers – don’t analyze every metric
 
 
 Apps don’t need to be large, expensive, or complex to have a great return….here are 3 steps:!
  13. 13. #1. Understand which large numbers you can easily impact
  14. 14. Understand the Baseline Metrics – Target “Large” Numbers 14 Sales Reps! Total headcount (by role)" Average revenue generated by role" Average # of orders per rep (existing)" Average # of orders per rep (new)" Loaded cost of sales reps" Average cost of sales by order type" Customers! Total number of customers" Average revenue per customer" Existing customer demographics" New customer growth (or attrition)" Revenue and Orders! Total revenue (annuity + new – lost)" Total number of leads" Total number of orders (lead convert)" Lead to order attrition" Revenue and cost per lead " Revenue and margin per order" Time study! Time spent capturing info on paper" Time spent keying-in data (2nd touch)" Key daily activities (% breakdown)" Information created vs. consumed %"
  15. 15. Mobile Opportunity •  Capture data directly into a digital format rather than paper to digital •  Week long process reduced to a day •  Facilitate immediate conversations/review rather than a multi-day delay •  Improve process adherence, higher adoption, and better task completion Benefits •  Quantitative: •  Reduce task time by over 5 hours per week (per user) •  Increase the time spent on critical oversight rather than operational “muck” •  Qualitative: •  Improve compliance for completing the task(s) •  Improved accuracy of the captured information •  Immediate feedback and adjustments before tasks are assigned (no wasted time) •  Time with manager/employee becomes more about coaching Example: Targeting Hundreds of User’s Paper Processes
  16. 16. #2. Identify areas of the business that can be impacted easily
  17. 17. 17   •  The cost of an app is the same – regardless of whether 10 people or 1000 people use the app •  Return accumulates by scaling benefits across similar roles •  Processes that are common across the enterprise are good candidates for sharing the cost of a single app/platform – avoid silo projects •  Processes that can be simplified, shortened, or made available at more convenient times will create efficiencies through a mobile channel What Role and Process Will Provide the Largest Return?
  18. 18. Mobile Opportunity •  Some industries require users to use Enterprise systems to complete approval workflows for Work Orders; however they are either working on the floor, traveling, or not at their desk while in the office. •  Provide mobile access that will reduce workflow delays •  Take advantage of “down time” since the mobile device is always connected and with the users…apply to field service, manufacturing factory floor, retail, healthcare, etc. Benefits •  Quantitative: •  Reduce time of approval for time-critical purchases •  No major enterprise system updates required, only a lite mobile façade was required •  Qualitative: •  Shift the approval task to a more convenient time •  Quicker approvals and preserve “desk time” to more critical tasks •  One-button reject, reason codes, and alerts for exceptions Example: Work Order Effectiveness and Efficiency
  19. 19. #3. Take advantage of the “sunk cost” of existing investments
  20. 20. 20   •  Target devices that are already managed, or will be managed under a corporate use policy •  Corporate Liable, Personal Liable, BYOD/CYOD •  More device types = more app costs to recover •  Identify existing integration or design new integration to be shared across other initiatives, specifically friendly for mobile apps. •  Login, authentication, HR, financials, CRM, ERP, etc. •  Create reusable application technology •  Mobile Libraries, Widgets, Modules, and 3rd party assets Create Reusability and Leverage Existing Investments
  21. 21. Mobile Opportunity •  Leverage the already purchased iPads (sunk cost) •  Prior mobile project justified hardware (pre-planned to spread cost across apps) •  Shorten the sales cycle and improve the win rate (3 à 2) •  Remove the available window that competition can potentially engage •  Address customer objections and provide real-time quoting and customer acceptance Benefits •  Quantitative: •  The average number of sales/calls (visits) was reduced from 3 to 2 •  Cost of sales reduced by over 30%, •  Increased win rate and shortened sales cycle •  No new mobile device purchases were required (cost avoidance) •  Qualitative: •  Customer engagement is more productive (high-value relationship with the customer) •  Shorter sales cycles means more opportunities can be addressed Example: Enhanced Sales Capability
  22. 22. Q: Where do we start to build a high ROI mobile app? 22  
  23. 23. Ensure the benefit exceeds the 
 potential risk compared to other apps in the portfolio
 
 The ideal app candidate will fall into the following categories:! 23 1. Low Risk (data, access, devices)
 2. High Business Value / Readiness
 3. Low Technical Complexity!
  24. 24. #mobilestrategy" Risk Analysis Within The App Portfolio 24   Use Case Articulation across Stakeholders Business Value untrusted Restricted SEMI - Trusted Trusted Risk Business   Value   Assets   Accessed   Risk  of   Breech   Scoring   Use  Case   Classifica:on   Use Case Categorization: Risk: Types of Exposure (e.g. User data, customer information, financial, etc.), Impact of Exposure (e.g. Public perception, legal exposure, financial) Business Value: Alignment with drivers
  25. 25. Q: What are the key dependencies or potential barriers for mobile ROI? 25  
  26. 26. Key ROI Dependencies (top line benefit) •  Well defined roles and user experience •  Day-in-a life analysis (not a “requirement” list) •  Devices that are already a “sunk cost” •  Low risk data with highly mature processes Key ROI Dependencies (below the line cost) •  High-impact roles (large number of users) •  Invest in a prototype •  Device focus (select key devices and OS types) •  Reuse existing integration (if available)
  27. 27. Q: How does BYOD affect your ROI? 27  
  28. 28. Numerator = Large Benefit Potential Denominator = Fixed + Variable Cost N D = Benefit Cost to Deliver BYOD Fixed Cost to deliver (+ or -)! + Ongoing Stipend " + Additional device types " + Additional operating systems " - Capital cost reduction" - Telecom Expense Management and overhead" - Support and device maintenance" BYOD Variable Cost to deliver (+ or -)! + Reimbursable component of device usage costs" + App costs rise for each additional device type" + App costs rise for each additional operating system" + Security Architecture (App & data containers)" - Device replacements (Depot)"
  29. 29. Innovative Use Cases Lead to Higher ROI
  30. 30. Mobile Opportunity •  Need a better way to communicate driving route instructions/changes •  Tribal knowledge not easily translated to substitute route drivers •  Overtime hours incurred, low customer satisfaction, and incomplete deliveries Benefits •  Quantitative: •  270,000 overtime hours billed due to extended work days related to confusion •  Fuel and vehicle maintenance costs reduced through better coordination •  Qualitative: •  Customer satisfaction and first-call service statistics improved •  Employee/driver efficiency and satisfaction improved •  Central management for directions eliminates confusion Innovation: Net-New Capability Through Mobile Mobile app cost < $100k Financial savings over $3 Million in operational costs
  31. 31. One Last Consideration: Use a mobile prototype to validate the scenario Adoption drives ROI
  32. 32. Business Drivers Market Opportunity Envisioned mobile Scenarios High Level Requirements Step I: Benchmarking Step II: Visualization, Roadmapping & App Planning Step III: Planning and Budgeting Build & Deploy Scope Finalized Competitive Analysis App Prototype App Roadmap Ongoing Support Technical Approach Development Approach, Budgeting, & Release Plan Customer Feedback Step IV: App Creation
  33. 33. #mobilestrategy" Propelics Kickstarts Propelics Special Offer Free 1 Hour Mobile Advisory Call info@propelics.com 888-405-2820 33   Mobile App Scoping & Planning Kickstart Mobile App Roadmap Mobile Center of Excellence Mobile App Rapid Prototyping IT Readiness for Mobile Kickstart Prototype Factory
  34. 34. #mobilestrategy" Thank you (Q&A)
  35. 35. •  Innovation Focus •  Engaging Process •  Mobility Centric •  Experience Across Industries •  Enterprise Solutions •  Advisors, Strategists, Implementers •  Strategy at the Pace of Mobility

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