The Enterprise Mobility market in India - Study by Zinnov

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The Enterprise Mobility market in India - Study by Zinnov

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The Enterprise Mobility market in India - Study by Zinnov

  1. 1. The Enterprise Mobility Study Indian Market AnalysisThis report is solely for the use of Zinnov client and Zinnov personnel. Nopart of it may be circulated, quoted, or reproduced for distribution outsidethe client organization without prior written approval from Zinnov
  2. 2. Agenda Scope & Definition of Enterprise Mobility Key Enterprise Mobility Trends
  3. 3. The scope of enterprise mobility encompasses hardware, network & data, applicationsand associated services Network & Enterprise Mobility Hardware/ Applications Data Management Platform • Smartphone • LAN • Email • Tablet • WLAN • SFA Asset Lifecycle Management • Handheld • WWAN • Field Service • Feature • GPRS • ERP/ CRM/ BI • • • phone iOS Android Symbian + • • • • Edge CDMA UMTS HSPA + • • • • SCM Social/ Collab HR Finance Expense Management • WebOS • WiMax • Vertical apps • Blackberry • LTE • Others Application Management Help Desk Middleware, hardware components Professional Services, System Integration Security Management Quality & Usability Testing
  4. 4. Agenda Scope & Definition of Enterprise Mobility Key Enterprise Mobility Trends
  5. 5. Certain key themes have emerged in the enterprise mobility market in India a b Accelerated Growth of Increased Start-up Enterprise Mobility Activity in Mobility Ecosystem Play in Key Moving Beyond f c Market Development Trends Email Concerns on Security Declining Costs & and Integration New Opportunities e d
  6. 6. The Indian Enterprise mobility market has rapidly evolved over the last three years a Enterprise Mobility Market (excluding Enterprise Mobility Market Split by Devices) in India, USD Million Service Lines $300 $244.0 $250 10% Average cost of smart 10% $200 devices of USD 125-150 adds over an above the 36% enterprise mobility market $150 16% $94.1 $100 8% 20% $38.6 $50 Apps & Customization Network & Data $0 Prof. Services/ SI Backend HW/ SW Usability & Testing Security & Compliance H1 2009 H1 2010 H1 2011
  7. 7. Unlike developed markets, developing countries are emerging as “mobile first” markets a Mobile Installed PC Country 3G Penetration Internet Users Subscribers Base USA 350 Mn 47% 245 Mn 295 Mn Germany 107 Mn 28% 66 Mn 55 Mn Brazil 215 Mn 10% 76 Mn 42 Mn Russia 221 Mn 5% 60 Mn 50 Mn India 840 Mn 1% 100 Mn 25 Mn China 896 Mn 6% 477 Mn 230 Mn Number of Days to Reach 1 Million Units Sold (Global) iPod Notebooks iPhone iPad 360 180 74 28
  8. 8. Devices penetration in India has been rapidly increasing a There are about 840 12.2 Million user There is an installed base Million active mobiles base of 3G has been of 25 Million operational in India garnered in India computers in India On an average of about The tablet PC market in Smart Phone market 15 Million mobile India sells about 1 share is about 15% in India subscribers are added Lakh tablets per every month in India annum The PC penetration in The laptop market is urban household has growing at a CAGR of One of the fastest reached 38% tablet affinity worldwide 50%
  9. 9. A combination of demand side trends accelerated the acceptance of mobility aexperience in India Key Demand Trends in Enterprise Mobility • Industries leading the way in applying mobility services to their operations include banking, Early Adopter manufacturing, retail, hospitality and healthcare. Eg. HDFC, ICICI, Tata Chemicals, Godrej, Future Industries Group, Dr. Reddy’s Laboratory etc. • Automotive, logistics and consumer goods companies are increasingly using mobile supply chain Emerging Industries systems to streamline inventory management, replenish stock, track demand, and manage shelf for EM space and storage in an optimal manner. Eg. Lucas TVS, Future Groupd, Eureka Forbes, AFL couriers • As more and more employees are getting exposed to next generation technologies and devices, the IT Consumerization enterprises are beginning to follow suite . Eg. SAP India is using more than 200 iPads, Hero Honda as an Enabler gave iPad 2 to its top executives in India, Adobe provided HTC smartphones to all its employees etc. Telecommuting and • The wider acceptance of social media is combining with greater usage of smart phones and tablet PCs to create the mobile office, where well-connected employees can work from virtually “Work from anywhere. As a result, more employers are providing flexible work arrangements for employees, Anywhere” including flexible schedules and telecommuting options. Eg, IBM • The acceptance of social media as a business communication and collaboration tool has gained Social Media as a momentum as more people access Facebook, Twitter, YouTube, and LinkedIn from their mobile Business Tool devices. Moreover, these social networking sites are being used as marketing walls by companies like Flipkart, Healthkart, Yebhi, etc.
  10. 10. The convergence of a variety of drivers is enabling the faster adoption of mobility asolutions in India Key Business Drivers Key Reasons for Mobility Better Customer 50% Push from top Service 69% management Productivity advantage 46% Collaboration amongst 67% employees Employee satisfaction 34% Get more work time Staying competitive 32% 64% out of employees Reducing operating 18% Pull from end users cost (customers or 58% New business employees) 18% opportunities Reducing Supply chain 42% 18% communication costs management 0% 20% 40% 60% 0% 20% 40% 60% 80% *Analysis based on survey responses of 150 IT decision makers in India
  11. 11. As enterprise mobility moves from being a concept to reality, a variety of innovative ause cases are parallely emerging a b c BFSI Pharmaceuticals Construction Financial Inclusion – Central Bank Medical Reps – Dr. Reddy’s Lab Business Intelligence – ISPAT Loan repayments – HDFC Senior Management – Novartis SCM – Ultratech Cement Collections – Bajaj Auto Finance d e f Chemicals Automotive Hospitality & Real Estate Unified Communication – Tata Query & Alerts – Lucas Customer Service – 4 Season’s ERP/CRM – Coromandel Senior Management: Hero group Home Automation – Lodha Grp. Fertilizers Sales - Unitech d e f Transport & Logistics Retail Consumer Durables Store Operations – Pantaloons Order Management – Usha Int. Proof of Delivery – AFL Couriers Customer Service- Shoppers Stop Dealer Sales – Godrej Fleet Tracking – Mag Logistics ERP/CRM – ITC CRM - Voltas
  12. 12. A lot of entrepreneurial/ start-up activity is being observed in the mobility space in bIndia Number of Digital Start-ups in India • Rapid growth of mobile/ smart devices penetration in India has presented a lucrative opportunity Marketplaces • Many tech companies such as RIM, Qualcomm, 39.7% Intel etc. are looking to provide seed funding and venture capital to start-ups working in the mobility space in India Mobility Others 23.6% • National Capital Region (NCR), followed by 9.3% Bangalore are the hubs for mobility start-ups E-Commerce/ • Ojas ventures has funded companies such as Shopping Tyfone in India Media/ Ent. 6.4% 20.8% • JiGrahak, a mobile commerce start-up recently raised USD 10 million from Nexus India Capital Total Digital Start-ups = 750
  13. 13. Increased acceptability of majority of the mobile platforms is a key motivation factor bfor start ups Mobility Platforms Supported by Indian Enterprises Symbian 13% 4% 63% 21% Windows Mobile 28% 21% 41% 10% Blackberry 98% 2% Android 34% 26% 29% 11% iOS 27% 8% 50% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Already supported To be supported in next 2 years Will never be supported Not Sure *Analysis based on survey responses of 150 IT decision makers in India
  14. 14. The relative ease of development and conducive ecosystem are the key drivers for bstart-up activity in this space Ease of Development Apple Android Blackberry Java Symbian Windows Hard Medium Easy • Convergence of ecosystem including end users, telcos, device manufacturers, and developers is providing a conducive environment for mobility solutions • Increase in support forums available across platforms makes it convenient for the entrepreneurs/ developers to build on top of these platforms *Analysis based on survey responses of 200 developers/ start-ups/ entrepreneurs/ freelancers in the mobility space
  15. 15. Case studies of mobility startups b Preludesys Mobien Technologies• Preludesys is a 10 year old company with 3 year • Mobientech was founded in 2006 and is focused on experience in the Enterprise Mobility Front providing Enterprise Mobility solutions• Developed a flagship Enterprise Mobility Platform • “iNotify™ “ is their Mobile Application framework which named “AnB” and offer mobile application development enables enterprises to deploy enterprise CRM and ERP and customization services solutions to the mobile platform• Key customers include Yamaha, Zenstar, Epson etc. • Key customers include Bajaj, Dalmia Cement, ITC ltd.etc.• Ranked as one of the fastest growing company based on • Deployment of iNotify in Nagarjuna Fertilisers for the recognitions from Deloitte, Inc. 500 consecutively for supply chain automation was chosen as one of the Top the last 6 years 50 IT implementations in 2007 by PC Quest AccelTree iPath Technologies• AccelTree software is a 8 year old company • iPath Technologies is an 8 year old company providing• Designed their own MEAP by investing 3 years in R&D. mobilization solutions for business and consumer The platform was specifically developed for the India application market • Developed “iAllWays™ Enterprise Mobilization• Key customers : Not revealed Platform” to serve the Enterprise Mobility in India• Have developed innovative mobile application • They are currently working with a large SI for deploying deployment offerings in the form of pay-by-use, own- Enterprise Mobility Solutions and are doing a POC for the-license and mobility-by-demand model companies in FSI space
  16. 16. While e-mail is the most commonly used mobility applications, IT decision makers are calso starting to look at other application segments Applications Already in Use or to be Used in the Next 24 Months Global Positioning System/Location Based Services 14% 39% 47% Consumer Instant Messenger 6% 43% 51% Field Service 25% 25% 49% Time Management/Billing 33% 20% 47% Unified Communication 12% 47% 41% Supply Chain Management 20% 37% 43% Enterprise Resource Planning 24% 45% 31% Customer Relationship Management 31% 41% 27% Sales Force Automation 49% 25% 25% Professional Instant Messenger 41% 39% 20% Social Networking 35% 41% 24% Corporate e-mail 98% 2% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Deployed In the next 24 months Not sure *Analysis based on survey responses of 150 IT decision makers in India
  17. 17. As enterprise mobility matures among organizations, lot of internal departments will clook to mobilize in the next 24 months Mobility Status of Various Functions at Indian Enterprises Retail 16% 10% 18% 57% HR 31% 24% 10% 35% Customer Service 31% 6% 18% 45% Field Service 37% 6% 12% 45% Finance 37% 18% 14% 31% Marketing 73% 10% 4% 14% Operations/Facilities Management 49% 10% 16% 25% Sales 78% 4% 4% 14% Executive/Corporate Management 90% 2% 8% 0% IT 84% 10% 2%4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Already mobilized To be mobilized in the next 24 months No plans to mobilize Not sure *Analysis based on survey responses of 150 IT decision makers in India
  18. 18. As companies optimize their mobility investments with innovative approaches, the doperating cost is expected to come down in the future (1/2) Operating Spend of Enterprise Change in Mobility Operating Mobility/ Person/ Year Spend in the next 2 years 2% 2% Decrease 40% Increase by 0-5% 22% Increase by 5-10% 22% 34% 61% Increase by 10-15% 2% Increase by more than 4% 15% Not Sure 10% INR 0 to INR 2,500 INR 2,500 to INR 5,000 INR 5,000 to INR 10,000 INR 10,000 or more 0% 10% 20% 30% 40% 50% *Analysis based on survey responses of 150 IT decision makers in India
  19. 19. As companies optimize their mobility investments with innovative approaches, the doperating cost is expected to come down in the future (2/2) • Established companies as well as • Cost of mobile start-ups phones and tablets experimenting with decreasing rapidly capex models Managed Reduced Services & Hardware Pay Per Use Costs Models Business Cloud Based Policies for Applications Mobility Usage • Cloud ready backend • Tighter expense infrastructure. Cloud management application access policies to control through mobile mobility expenses
  20. 20. While enterprise mobility adoption is increasing, there are certain key challenges eenterprise are struggling with (1/2) Intensity of Issues with Enterprise Mobility Supporting work & personal devices 12% 8% 24% 29% 22% 4% Device downtime 6% 2% 20% 32% 26% 14% Usability 0%6% 2% 50% 34% 8% Data Breaches 0% 10% 2% 14% 35% 39% Support Cost 4%2% 24% 28% 24% 18% Security policies 0%6% 24% 35% 35% Remote helpdesk 12% 4% 14% 31% 31% 8% Device Life cycle Management 12% 4% 31% 29% 20% 4% Software license conformance 8% 6% 8% 20% 33% 25% Locate/track devices 12% 10% 22% 25% 20% 12% 0% 25% 50% 75% 100% Very Low Low Medium High Very High Very Very High
  21. 21. While enterprise mobility adoption is increasing, there are certain key challenges eenterprise are struggling with (2/2) The average salary per employee in India is relatively very less and it is difficult for enterprises to give devices more that the salary of the individuals. Hence adoption is restrained to only senior level Indian customers are found to be very demanding. The expectation is to get everything delivered on the phone. Customers want out of the box (OOB) solutions Most of the industries lack a standard supply chain. Also vernacular content is a huge challenge Absence of key large player focus and lack of confidence with niche players is restraining large enterprises to move to mobile applications for core business Lack of business centric mobile applications as well as back end integration of applications is a challenge and hence adoption is currently at the dashboard, reporting level In case of full functionality applications, manageability is challenging. Security, compliance, provisioning, wireless management, lifecycle management, asset management are a additional costs Indian stakeholders are not very well informed about the advanced solutions being employed in other emerging geographies. There is also a lack of successful Indian case studies being preached
  22. 22. All ecosystem stakeholders are starting to play a key role in influencing the decision ftowards mobility solutions adoption Illustrative List of Ecosystem Players Ecosystem Category Illustrative Players Hardware Vendors HTC, Motorola, Apple, RIM Microsoft, Google, Oracle, SAP, McAfee, ISVs SFDC SI/ VAR/ Professional Services TCS, Infosys, Wipro, HCL Network Provider Airtel, Vodafone, Aircel, Tata DoCoMo Middleware Provider Sybase, Antenna Software, Rhomobile
  23. 23. These ecosystem stakeholders seem to be converging towards a few strategic bets with frespect to the enterprise mobility solutions in India Hardware/ OEMs Service Providers/ ISVs Telecom Operators/ ISPs Flux of low cost tablets with Acquisitions & partnerships Primary collection agents touch screen UI towards EM solutioning Aggressive enterprise push Focus on professional Forging existing relationships by OEMs services/ customization with enterprise customers Increased focus from tier 2 Security & compliance Focus on cloud based/ on OEMs from India/ China related architectures demand mobility solutions Partnerships with application ME Application platform Email as the primary & service providers focus workload
  24. 24. Network and Connectivity in India will Drastically Improve in Next Five Years (from2010 to 2015) 9x increase in IP traffic 10x increase in IP traffic 114x increase in mobile per capita to reach 1.0 data traffic to reach 339 to reach 1.2 Exabyte per Gigabyte per capita in Petabyte per month in month in 2015 2010 2015 Indian mobile data traffic 56x growth in average In India, there will be 1 to grow 4x faster than mobile connection speed, billion networked Indian fixed IP traffic from reaching 1,037 kbps in devices in 2015, up from 2010 to 2015 2015 570 million in 2010 4.1x growth in average 7% of broadband 28% of India’s total IP connections to be faster traffic to be through broadband speed to than 5 Mbps in 2015, up mobile in 2015, up from reach 4 Mbps in 2015 from 4% today 2.2% today Source: Cisco
  25. 25. As a result, the enterprise mobility market will reach about USD 1 billion by mid of2015 Enterprise Mobility Market (excluding Devices) in India, USD Million$1,200 • A multi-fold growth expected in the enterprise mobility space going forward $964.4$1,000 • ERP, CRM, SCM, SFA along with email solutions to fuel the growth of the market $800 • Application maturity increase from the current dash boarding level to complete backend integration $600 • Declining costs of mobility solutions along with $400 innovative business models would enable smaller $244.0 companies to join the EM bandwagon as well $200 $94.1 • Supply side investments towards addressing the $38.6 challenges of security & data breaches to encourage rapid adoption of EM solutions $0 H1 2009 H1 2010 H1 2011 H1 2015
  26. 26. Thank You 69 "Prathiba Complex", 4th A Cross, Koramangala Ind. Layout 5th Block, Koramangala Bangalore – 560095 Phone: +91-80-41127925/6 11, Paras Downtown Centre, Golf Course Road, Sector 53 Gurgaon – 122002 Phone: +91-124- 4378211/13 575 N. Pastoria Ave Suite J Sunnyvale CA – 94085 Phone: +1-408-716-8432info@zinnov.comwww.zinnov.com 21, Waterway Ave, Suite 300 The Woodlands TX – 77380 @zinnov Phone: +1-281-362-2773

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