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


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Frost & Sullivan analysis of the North American market for premium mobile enterprise applications.

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  • This is great info on Enterprise Mobility
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  • Thanks for the comment. I have forwarded it on to Jeanine. Would you mind sending me an e-mail with your phone number so I can have her follow up with you?
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  • Jeanine,
    Would be interested in your view re: what's truly different today versus a decade ago in mobile enterprise software. I understand how the underlying devices (from iPAQs and Palm PDAs to iPhone and Android smartphones) and networks (from 2.5G to 3G) have improved considerably. But the software for enterprise (mobile email, mobile CRM/SFA, mobile fleet mgmt etc.) doesn't seem to have gone through a corresponding improvement/transformation. What are the real large-scale opportunities for mobile enterprise companies - I see security/device management (e.g. Mobile Iron, Lookout) and email being fairly productizable, horizontal and scalable but everything else seems to be highly customized/verticalized/requires lots of professional services.

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

  1. 1. Premium Mobile Enterprise Applications - What’s Working in North America? - Jeanine Sterling, Senior Industry Analyst Mobile and Wireless Communications August 12, 2010
  2. 2. Focus Points • Quick Review: What’s Driving the Spread of Mobile Apps in North American Business Sector? • 2010 Mobile Enterprise Applications: Survey Highlights o Deployment Plans o Purchase Barriers o Current Users = Real Success o ROI Metrics o Additional Findings • Conclusions 2
  3. 3. The Enterprise Sector: Ripe for Premium Mobile Apps Major Market Drivers Four mobile enterprise application categories* are projected to total $10.9 • Growing mobile worker population billion in annual revenues by 2015 • Fiercely competitive marketplace • Strong, tangible ROI story • Powerful technology enablers – phones, OS, 12 networks 10 • Mobility platforms – broad device/OS support Major ISVs finally joining the fray Revenues ($ Billions) • 8 • SaaS advantages/flexibility 6 • More sophisticated support from wireless carriers 4 • Increased emphasis on solution 2 standardization (minimizing customization requirement) 0 2009 2010 2011 2012 2013 2014 2015 • Vertical emphasis Source: Frost & Sullivan *Mobile Office, Mobile Workforce Management, Mobile Field Asset • Mobile enterprise application storefronts Management, Mobile Sales Force Automation (SFA). Software revenue only. • Competitor consolidation 3
  4. 4. 2010 Enterprise Mobile Apps Survey -- Current Preferences and Plans • March 2010 online research survey • 300 enterprise mobile and wireless purchase decision-makers • U.S. and Canada • Sample divided evenly in terms of company size (<500, 500+ employees) • Wide range of industries represented • Enterprise apps discussed in detail: • Mobile Office (email, PIM, etc.) • Mobile Workforce Management • Next-Generation Fleet Management • Mobile Sales Force Automation (SFA) • Areas of inquiry: • Level of perceived need • Customization requirements • Plans for deployment • Customer satisfaction • Barriers to Implementation • Type of mobile device(s) used • Measures of Success (ROI metrics) • Point vs. platform • Brand awareness/loyalty • On-premise vs. hosted 4
  5. 5. North American Companies: Deployment Plans Currently Have Planning to Introduce Not Interested Mobile Office 57% 19% 24% Mobile Messaging (SMS, MMS) 57% 15% 28% Mobile Unified Communications 47% 21% 32% Mobile Workforce Management 47% 18% 35% Mobile VoIP 43% 22% 35% Customer-Facing Apps 43% 17% 40% Next-Gen Fleet Management 41% 17% 42% Mobile Sales Force Automation 39% 21% 40% Source: March 2010 Mobile Enterprise Applications online survey. Base: 300 mobile and wireless purchase decision-makers – U.S. and Canada. Frost & Sullivan. 5
  6. 6. Focus on Four Mobile App Categories “Uses mobile email to enable intra-office communication and collaboration. Mobile Drives and delivers day-to-day work processes and ERP applications for seamless enterprise collaboration. Examples: BlackBerry BES, Good Mobile Office Messaging, Microsoft ActiveSync.” “Uses web-based tracking and GPS-equipped mobile handheld devices Mobile (smartphones, feature phones, mobile computing devices) to locate and manage Workforce mobile field workers and their tasks. Capabilities can include maps, geo-fencing, wireless timecards, dispatching, and data capture. Examples: TeleNav Track, Management Xora TimeTrack, Verizon Field Force Manager.” “Uses web-based tracking and a cellular/GPS device installed and mounted in each fleet vehicle. Functions can include vehicle location, geo-fencing, maps, Next-Gen Fleet engine diagnostics, and sensors. These are NOT the older, more expensive Management satellite-based systems. Examples: Trimble GeoManager, Air-Trak, Verizon Fleet Administrator, TeleNav Vehicle Tracker.” Mobile Sales “Extends corporate CRM/SFA backend systems to mobile phones. Allows Force mobile sales employees to access product, pricing, inventory, and customer data in order to perform contact management and order management functions Automation away from the office. Examples: Antenna AMP SALES, Sybase Sales Anywhere, (SFA) Vaultus VMAP. 6
  7. 7. Level of Perceived Need – All Respondents For all respondents: How necessary is the following mobile solution in helping to meet your company’s business goals? (Improving productivity, customer satisfaction, and/or decreasing expenses, etc.) 50% 49% 42% Mobile Office 40% 40% 40% 35% Mobile Workforce 34% Management 30% 31% 29% 27% 26% 25% Next-Gen Fleet 22% Management 20% Mobile Sales Force Automation (SFA) 10% Source: March 2010 Mobile Enterprise Applications online survey. All Respondents. 0% Very Somewhat Not at All Necessary Necessary Necessary 7
  8. 8. Deployment Plans: U.S. vs. Canada Mobile Office Solutions Currently Planning to Not Have Introduce Interested 21% 30% Mobile 52% Office 57% 19% 24% 19% 60% 18% Mobile Canada U.S. Workforce 47% 18% 35% Management Next-Gen Fleet 41% 17% 42% Management Mobile Workforce Management Solutions Mobile Sales 31% Force 39% 21% 40% 41% 38% Automation 52% 17% Source: March 2010 Mobile Enterprise Applications online 21% survey. All Respondents. Canada U.S. 8
  9. 9. Poll Question What is your reaction to the “Currently Have” percentages for the four mobile application categories charted on the previous slide? • They are higher than I expected. • They are lower than I expected. • They are about where I anticipated they would be. *Turn off your pop-up blocker, so you can respond to the next polling question 9
  10. 10. Not Interested? Why Not? Mobile Mobile Workforce Next-Gen Fleet Mobile Sales Force Office Management Management Automation (SFA) No Need: 76% 72% 71% 70% 17% 22% 19% 25% Cost of implementation High TCO Cost of implementation Cost of implementation Secondary 16% 19% 16% 20% High TCO Cost of implementation Cost of hardware Cost of hardware Barriers: 16% 16% 16% 15% Cost of hardware Cost of hardware High TCO High TCO 13% 12% 10% 13% Unclear ROI benefits Unclear ROI benefits Lack of internal expertise Unclear ROI benefits Source: March 2010 Mobile Enterprise Applications online survey. Respondents: “We currently do not have this solution and have no plans to introduce this solution.” 10
  11. 11. “No Plans Segment” – Purchase Barriers Can Vary by Organization Level For companies with no plans to deploy a Mobile Sales Force Automation (SFA) solution: Please indicate which of the following are the most significant barriers to implementing a Mobile SFA solution within your company. CXO Respondents VP/Directors IT Managers/Staff 100% 100% 100% 100% 77% 80% 80% 80% 60% 60% 60% 50% 50% 41% 40% 40% 40% 27% 21% 18% 18% 20% 20% 20% 0% 0% 0% No Cost of Cost of No Worker Not No Cost of Cost of Need Implementation Required Need Privacy User Need Implementation Required Hardware Concerns Friendly Hardware Source: Frost & Sullivan 11
  12. 12. Plan to Introduce? Then Why Not Now? Mobile Mobile Workforce Next-Gen Fleet Mobile Sales Force Office Management Management Automation (SFA) 40% 27% 39% 32% Cost of implementation High TCO Cost of implementation Cost of implementation Top 4 35% 25% 26% 22% Cost of hardware Integration expense Cost of hardware Cost of hardware Purchase Barriers 23% 23% 22% 20% Unclear ROI benefits Cost of hardware Unclear ROI benefits Customization expense 21% 21% 19% 18% Security of corporate data Security of corporate data Lack of internal expertise Integration expense Source: March 2010 Mobile Enterprise Applications online survey. Respondents: “We plan to introduce this solution within the next 12 months/2-3 years.” • Paramount concern: Cost factors, Unclear ROI • 3/4 plan to implement within 12 months (lower • Secondary concerns: Information Security, Level for Mobile Office) of Internal Expertise • Noticeable U.S. vs. CAN differences re: • Some variation among app categories inhibitors 12
  13. 13. For “Plan to Introduce” Segment – Purchase Barriers Can Vary by Country, Size Mobile Sales Force Automation Mobile Workforce Management - Variations by Country - - Variations by Company Size - CAN U.S. <500 Employees 500+ Employees 40% 38% 1. Cost of 35% 1. High TCO 34% 2. Integration implementation 30% 2. Security of 29% expense 3. Customization corporate data 25% 3. Cost of required 23% 23% expense 20% hardware 4. Lack of internal 4. High TCO 15% expertise 14% 14% 5. Cost of required 5. Employee 10% resistance 10% hardware 6. Not scalable 6. Integration 5% expense 0% Cost of Cost of Customization Integration implementation hardware expense expense Significant differences in Canada vs. U.S. responses Breakout between SMB and Enterprise responses (in exist in each of the four enterprise application all four solution categories) reveals substantial categories variation in reasons for not yet deploying Source: Frost & Sullivan 13
  14. 14. Poll Question Which adoption barrier would you rate as the most challenging for vendors and channels to neutralize over the short-term? • Cost of required hardware • Back-end integration expense • Solution customization expense • Lack of corporate data security • Employee resistance • High TCO *Turn off your pop-up blocker, so you can respond to the next polling question 14
  15. 15. Current Users = Real Success Current Application Users Expansion Plans Level of Satisfaction Plan to Do not plan to expand within expand within 12 months 12 months Very Satisfied Neither Dissatisfied Very Satisfied Dissatisfied 100% 53% 47% 56% 59% 2% Mobile 35% 50% 12% 1% 80% Office % of Current Users Mobile 1% Workforce 37% 53% 8% 1% 60% Management 2% 40% Next-Gen Fleet Management 34% 52% 11% 1% 47% 53% 44% 41% 20% Mobile Sales 3% Force 34% 53% 9% 1% Automation 0% Mobile Mobile Next-Gen Mobile Office Workforce Fleet Sales Force 0% 20% 40% 60% 80% 100% Management Management Automation % of Current Users Source: March 2010 Mobile Enterprise Applications online survey. Current application users. 15
  16. 16. Primary ROI Metrics for Current Users Mobile Mobile Sales Workforce Next-Gen Fleet Force Automation Mobile Office Management Management (SFA) 44% - Increase in 29% - Increased 26% - Higher job 38% - Increase in user productivity customer satisfaction completion rates sales 37% - Reduced 28% - Reduced 25% - Improved 37% - Reduced paperwork paperwork worker response times paperwork 37% - Increase in 28% - Reduced labor 23% - More accurate 37% - Increased revenues expense billing customer satisfaction 30% - Decreased 26% - Higher job 22% - Increased 30% - Faster overall expense completion rates customer satisfaction sales process 30% - Increased 24% - Improved field 21% - Improved 25% - More accurate customer satisfaction service response competitive advantage billing times 29% - More employee 20% - Less employee 23% - Expedited cash collaboration 23% - More accurate overtime flow billing Source: March 2010 Mobile Enterprise Applications online survey. Current application users. 16
  17. 17. Additional Survey Findings • Premium mobile apps are viewed as business enablers by majority of companies. • Caution is the rule of the day: Clear majority prefer to conduct pilots before actually rolling out their solutions. • Some level of customization is still required in most cases (at least two- thirds of implementations, depending on the application category). o A minority of these cases call for “significant” level of customization. o Third-party experts are brought in to assist 20%-30% of the time. • Mobile device utilization remains mixed – with smartphones the preeminent choice. • Current implementation is roughly 60/40 on-premise vs. hosted. 17
  18. 18. Conclusions • Majority of North American companies are already convinced of the business value of mobile applications. o Most of these have already deployed, are piloting, or are planning to implement within three years. • Current users are prime candidates for add-on sales. • Planners need to be actively motivated to become Purchasers – by directly addressing top adoption barriers (cost concerns, unclear ROI impact, corporate data security) o Marketing messaging; pricing strategy; solution enhancement. • “No Need” segment requires customer education program. • SMB sector can present a significantly different set of priorities and concerns. • U.S. vs. Canada deltas must be factored into sales presentations and marketing campaigns. 18
  19. 19. 2010 Studies Containing Further Survey Content • 2010 North American Mobile Enterprise Applications Outlook (N741-65; Published June 2010) • Adoption of Premium Mobile Enterprise Applications: A Canadian Perspective (Frost Insight; 3Q 2010) • 2010 North American Mobile Resource Management (MRM) Market: Handset-based Solutions (N82B-65; 3Q 2010) 19
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  23. 23. For Additional Information Craig Hays Jake Wengroff Director of Sales Corporate Communications Information and Communications Mobile and Wireless Communications Technologies (210) 247-3806 (210) 247-2460 Jeanine Sterling Senior Industry Analyst Mobile and Wireless Communications (586) 263-4454 23