Compuware Mobile Center of
Excellence Overview
September 16, 2011
Agenda

             • Compuware Company Overview
             • Mobile Computing Strategy and Case Studies
             • Mobile Center of Excellence Overview
             • Partnerships




2
Compuware Highlights
                                                           History of Success
                                                           • 38 years delivering IT value
                                                           • 80 offices worldwide

                                                           World-Class Customers
                                                           • 7,100+ customers across every
                                                             market
                                                           • 46 of the top 50 Fortune 500
                                                             companies
                                                           • 12 of top 20 U.S. websites

                                                           Rock-Solid Financials
                                                           • $900M in revenue
                                                           • No long-term debt
                                                           • $200M operating cash flow in FY ’11
               Compuware Headquarters – Downtown Detroit




     3

© 2011 Compuware Corporation
Professional Services Organization




                                  SALES                                 SUPPORT

            Geographic Sales
                                          Centers of Excellence             Sales/Delivery
              & Delivery

                       Michigan                  Mobile Computing          Corporate Practice Directors

                       Midwest
                                              Application Performance     Global Delivery Organization
                                                Management (APM)
                      Northeast


                      Southeast


                         West

     4

© 2011 Compuware Corporation
Mobile Computing
Strategy and Case
Studies

5
“What happens if I get it wrong?”
A tale of two companies: Blockbuster and Netflix

Netflix: To become the largest movie
rental service in the world via the Internet

                                                   Netflix
Both were                                          price drop
disruptive
innovators                                                                                           Begins
                                                                                                     running
                                                                                                     original
                                                                                        Streaming    content
                                                                Streaming               goes
                                                                service                 mobile
                                                                launch


                Launched online
                rental service
                                                                                                    Chapter 11
                                               Eliminates
                                               “unprofitable”
                                               online service


                                                    Eliminates late
                                                    fees in stores          Rolls out
Blockbuster: To become the largest                                          kiosks
movie rental service in the world via
brick-and-mortar stores
The next wave of IT is being driven by consumers




7
Mobility is big and complex

    PC and laptop market:                            Smartphone and tablet market:
    Dominated by one standard; driven by business    Highly fragmented; driven by consumers


           Wired
        Homogenous
       Business-driven

        Global Unit Shipments – 2010  2015 (est.)   Global Data Volume – 2010  2015 (est.)


                                    Wireless
                                  Heterogenous
                                 Consumer-driven
8
Mobile Internet Ever More Important
                          • Morgan Stanley predicts global mobile users will outnumber
                            desktop internet users within 3 years

                                Global Mobile vs. Desktop Internet User Projection, 2007 - 2015
                      2000
                      1800                                                                     Desktop Users
                      1600                                                                     Mobile Users
Internet Users (MM)




                      1400
                      1200
                      1000
                          800
                          600
                          400
                          200
                            0
                      9         2007   2008   2009   2010   2011   2012   2013   2014   2015
  Source: Mary Meeker, Morgan Stanley
  Source: Mary Meeker, Morgan Stanley
Mobility is growing at lightning speed

            downloads from
            Apple’s App Store in
            less than three years


            of total global mobile
            data traffic comes
            from YouTube


            users accessing
            Facebook through
            their mobile devices


10
Mobility is expanding
     Machine-to-Machine Communication




                        growth of
                        M2M market
                        2010-2016




     m-Commerce



                                        spent via
                                        mobile
                                        payments
                                        in 2011




11
What is the opportunity?




              Mercatus Study reveals banks can improve
              customer acquisition by up to sixty percent
              “Mobile financial service capabilities were more impactful
              in a consumer's decision to select a bank than availability
              of online banking, access to ATMs, or nearby branches.”


12
What is the opportunity?




     More than three times the mobile gross                  Aberdeen Consulting also found that companies
     merchandise value in 2009 and considerably "Thereal    benefit to ustheir field service improved
                                                             who automated is that mobile banking
     more than its projected total of $1.5 billion.          their SLA compliance by 22.1 percent.
                                               customers are more profitable, they're
                                               stickier, they transact more often, they
                                               become loyal to SunTrust and they migrate
                                               transactions to a lower cost channel.”
                                             — Kristen Rankin, VP and Mobile Channel Manager, SunTrust Banks Inc.




                       Mercatus Study reveals banks can improve
                       customer acquisition by up to sixty percent
                       “Mobile financial service capabilities were more impactful
                       in a consumer's decision to select a bank than availability
                       of online banking, access to ATMs, or nearby branches.”
13
So what does this mean to you?


                        Mobility represents a
                    fundamental and irreversible
                      change: Your consumers
                    decide how, when and where
                       they connect with you.



           What’s your strategy for
        addressing this new challenge?

14
Meet your new (global) consumer


                               you to understand my
                               needs, not sell to me.”


     to access my data               to receive information
     anywhere, anytime.”             that’s relevant to me.”


      to use any device                 an engaging, rich
      that I choose.”                   media experience.”


         Independent of geography and demographics

15
End-Users’ Mobile Experience Expectations Are Increasing
Implementing a mobility strategy
                Get in the game
                • Deliver appropriate
                  web-site content to
                  popular mobile devices
                • Develop mobile apps to
                  deliver specific functionality
                • Deliver internal information
                  to employees




       GET IN
     THE GAME




17
Getting in the game
 OPPORTUNITY
     In the wake of decreased tourism, make
     residents and visitors feel comfortable
     and increase their awareness of what
     Detroit has to offer
 MOBILITY STRATEGY
     Create a mobile app that has accessible
     design, key value-add information and
     impressive performance
 BUSINESS VALUE
     Detroit now has an easy way to
     promote tourism and capture contact
     information for repeat promotion


18
Implementing a mobility strategy
Get ahead of the game
                             Get ahead of the game
                             • Look for ways to solve
                               existing problems and
                               differentiate
                             • Location awareness:
                               Integrate with social
                               media, driving directions,
                               driver/truck location
                             • Camera: Check deposit,
                               on-site insurance claims
                             • Real-time Information:
                               Mobile usage models,
                               package status


      GET IN    GET AHEAD
    THE GAME   OF THE GAME




                  19
Getting ahead of the game
 OPPORTUNITY
     EMT drivers were taking patients to the
     closest ER, regardless of wait time

 MOBILITY STRATEGY
     Create a way for EMT drivers to know
     Crittenton ER wait time and provide
     direction/routing services
 BUSINESS VALUE
     Providing capability to EMT drivers
     increased ER traffic, resulting in
     increased hospital revenue




20
Implementing a mobility strategy
 Change the game
                Change the game
                • Leverage mobility
                  to provide a new
                  connection point
                  to consumers




       GET IN     GET AHEAD            CHANGE
     THE GAME    OF THE GAME          THE GAME




21
Changing the game
OPPORTUNITY
     Wanted to create a differentiated service
     for consumers that would improve driver
     safety and vehicle sales

MOBILITY STRATEGY
     Develop M2M infrastructure to get valuable
     information from automobiles wirelessly
     Create value-add mobility apps for remote
     functionality like car start and unlock

BUSINESS VALUE
     Provided consumers a unique capability that
     increased consideration of GM cars in the sales cycle
     Consumer retention/brand loyalty improved due
     to access to this functionality

22
Implementing a mobility strategy - Options

                      Leverage an Industry Leader

                      Partner with
                        smaller firm(s)

     Build In-House




        GET IN           GET AHEAD                   CHANGE
      THE GAME          OF THE GAME                 THE GAME




23
Why Compuware?

                In-House                       Small Firm                           Industry Leader


• Total Control               •      Time to Market                 • Scalability
• Resource Allocation         •      No Investment in               • Early to Market
• Generating Domain Expertise        Resources                      • Multi-Platform Expertise
                              •      Potential Scalability          • Performance Tested
                                                                    • Adaptive Agile
 Can I scale?    Can I keep pace   Can they scale                   • Enterprise Integrator
                with technology?                    Will they be in
                                      to meet
                                                     business in
                                   our demands?
                                                      3 years?




  24
Mobile Center of
Excellence Overview


25
Mobile CoE
     Leadership Team

Governance
                                         Sponsor
                                      Bob Kennedy



       Business    Enterprise      User       Technical   Delivery &    Program
     Development    Mobility    Experience    Solution    Operations   Management

        Allan         John         Jeff        James        Glen         Nailesh
       Techko      Kinnamon     Von Buskirk    Brown      Goldman         Shah




26
Mobile Computing Overview                  Adaptive Agile
                                                     Development
            M2M                         Enterprise
                                          Data          Cloud
                                                       Services



                             Security



                                          Mobile
                                         Platforms
           Emerging
         Technologies

                        Social Networking Media and Applications

     Performance

27
Adaptive Agile Development              Evolving Design
                Predictive Design Map
     v1    v2              v3             v4                 Final   Predicted




                     Behavior and Usage
                               Performance
                                      Security
                                            Technology
                                                 Market Climate




                                                                      Actual
            Evolving Design Map

28
Adaptive Agile Development
         Mobile Solution Approach
                                                               Timeline
    Approach           Foundational                                                                 Aspirational
Mobile Architecture                                          Maturity
    Security                                      v1               v2                   v3                    v4
  Performance
Back End Systems
                        Mobile Innovation
       Process            Framework
                                        Basic                Dedicated             Enhanced          Enhanced
Client Solution                        Services               Services             Services I        Services II
  Mobile Readiness                                                                              •   Advanced UI
    • Assessment
                                •   UX Brand           •   Unique User    •   Advanced UI
                                    Design                 Data           •   Functions         •   Functions
    • Optimization
    •     Data Management       •   Adoption           •   Proprietary    •   Security          •   Security
            •    Cleansing      •   Translation            Systems        •   Performance       •   Performance
    •     Business Process      •   Functions
          Absorption




  29
Adaptive Agile Development
                  Mobile Innovation Network


             Idea Management                  Innovation Planning
                                           Innovation Planning                   Innovation Proof
                                                                                 Innovation Proof                  Idea Fulfillment
                                                                                                                  Idea Fulfillment


              •   Mobility Objectives           •   Usability Alternatives        •   Proof Definition               •   Acceptance Criteria
Assessment




                                                                                                                                                 Release
              •   Business Benefits             •   Technology Alignment          •   Build Proof                    •   Architecture Approval
              •   Establish Metrics             •   Performance Measures          •   Analytics Established          •   Service Deployed
              •   Risk Mitigation               •   Identify Cost Drivers         •   Evaluate & Measure             •   Service Management
              •   Innovation Initiatives        •   Prioritize Initiatives        •   Deployment Plan                •   Analytics/Reporting


                      5-10 days                         5 -15 days                       2 – 4 Weeks                        8+ Weeks

                    Business Alignment                          Prioritization                         Approval                       Production

                                                          Customer Stakeholders


             30
Partnerships



31
Partnerships are Essential for Success
                               Marketing Firms
                               •Branding
                               •Campaigns
                               •Social Networking
                               •Platforms




                                                    Mobile Device
          Wireless Providers
                                                    Management
          •Network
          •Solutions
                               Compuware            (MDM) Providers
                                                    •Device Management
          •M2M Framework
                                                    •App Stores




                               Customers
                               •Mobile Strategy
                               •Requirements
                               •Funding




32
A World of
 Opportunity




33

Compuware Mobility Presentation Overview

  • 1.
    Compuware Mobile Centerof Excellence Overview September 16, 2011
  • 2.
    Agenda • Compuware Company Overview • Mobile Computing Strategy and Case Studies • Mobile Center of Excellence Overview • Partnerships 2
  • 3.
    Compuware Highlights History of Success • 38 years delivering IT value • 80 offices worldwide World-Class Customers • 7,100+ customers across every market • 46 of the top 50 Fortune 500 companies • 12 of top 20 U.S. websites Rock-Solid Financials • $900M in revenue • No long-term debt • $200M operating cash flow in FY ’11 Compuware Headquarters – Downtown Detroit 3 © 2011 Compuware Corporation
  • 4.
    Professional Services Organization SALES SUPPORT Geographic Sales Centers of Excellence Sales/Delivery & Delivery Michigan Mobile Computing Corporate Practice Directors Midwest Application Performance Global Delivery Organization Management (APM) Northeast Southeast West 4 © 2011 Compuware Corporation
  • 5.
  • 6.
    “What happens ifI get it wrong?” A tale of two companies: Blockbuster and Netflix Netflix: To become the largest movie rental service in the world via the Internet Netflix Both were price drop disruptive innovators Begins running original Streaming content Streaming goes service mobile launch Launched online rental service Chapter 11 Eliminates “unprofitable” online service Eliminates late fees in stores Rolls out Blockbuster: To become the largest kiosks movie rental service in the world via brick-and-mortar stores
  • 7.
    The next waveof IT is being driven by consumers 7
  • 8.
    Mobility is bigand complex PC and laptop market: Smartphone and tablet market: Dominated by one standard; driven by business Highly fragmented; driven by consumers Wired Homogenous Business-driven Global Unit Shipments – 2010  2015 (est.) Global Data Volume – 2010  2015 (est.) Wireless Heterogenous Consumer-driven 8
  • 9.
    Mobile Internet EverMore Important • Morgan Stanley predicts global mobile users will outnumber desktop internet users within 3 years Global Mobile vs. Desktop Internet User Projection, 2007 - 2015 2000 1800 Desktop Users 1600 Mobile Users Internet Users (MM) 1400 1200 1000 800 600 400 200 0 9 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Mary Meeker, Morgan Stanley Source: Mary Meeker, Morgan Stanley
  • 10.
    Mobility is growingat lightning speed downloads from Apple’s App Store in less than three years of total global mobile data traffic comes from YouTube users accessing Facebook through their mobile devices 10
  • 11.
    Mobility is expanding Machine-to-Machine Communication growth of M2M market 2010-2016 m-Commerce spent via mobile payments in 2011 11
  • 12.
    What is theopportunity? Mercatus Study reveals banks can improve customer acquisition by up to sixty percent “Mobile financial service capabilities were more impactful in a consumer's decision to select a bank than availability of online banking, access to ATMs, or nearby branches.” 12
  • 13.
    What is theopportunity? More than three times the mobile gross Aberdeen Consulting also found that companies merchandise value in 2009 and considerably "Thereal benefit to ustheir field service improved who automated is that mobile banking more than its projected total of $1.5 billion. their SLA compliance by 22.1 percent. customers are more profitable, they're stickier, they transact more often, they become loyal to SunTrust and they migrate transactions to a lower cost channel.” — Kristen Rankin, VP and Mobile Channel Manager, SunTrust Banks Inc. Mercatus Study reveals banks can improve customer acquisition by up to sixty percent “Mobile financial service capabilities were more impactful in a consumer's decision to select a bank than availability of online banking, access to ATMs, or nearby branches.” 13
  • 14.
    So what doesthis mean to you? Mobility represents a fundamental and irreversible change: Your consumers decide how, when and where they connect with you. What’s your strategy for addressing this new challenge? 14
  • 15.
    Meet your new(global) consumer you to understand my needs, not sell to me.” to access my data to receive information anywhere, anytime.” that’s relevant to me.” to use any device an engaging, rich that I choose.” media experience.” Independent of geography and demographics 15
  • 16.
    End-Users’ Mobile ExperienceExpectations Are Increasing
  • 17.
    Implementing a mobilitystrategy Get in the game • Deliver appropriate web-site content to popular mobile devices • Develop mobile apps to deliver specific functionality • Deliver internal information to employees GET IN THE GAME 17
  • 18.
    Getting in thegame OPPORTUNITY In the wake of decreased tourism, make residents and visitors feel comfortable and increase their awareness of what Detroit has to offer MOBILITY STRATEGY Create a mobile app that has accessible design, key value-add information and impressive performance BUSINESS VALUE Detroit now has an easy way to promote tourism and capture contact information for repeat promotion 18
  • 19.
    Implementing a mobilitystrategy Get ahead of the game Get ahead of the game • Look for ways to solve existing problems and differentiate • Location awareness: Integrate with social media, driving directions, driver/truck location • Camera: Check deposit, on-site insurance claims • Real-time Information: Mobile usage models, package status GET IN GET AHEAD THE GAME OF THE GAME 19
  • 20.
    Getting ahead ofthe game OPPORTUNITY EMT drivers were taking patients to the closest ER, regardless of wait time MOBILITY STRATEGY Create a way for EMT drivers to know Crittenton ER wait time and provide direction/routing services BUSINESS VALUE Providing capability to EMT drivers increased ER traffic, resulting in increased hospital revenue 20
  • 21.
    Implementing a mobilitystrategy Change the game Change the game • Leverage mobility to provide a new connection point to consumers GET IN GET AHEAD CHANGE THE GAME OF THE GAME THE GAME 21
  • 22.
    Changing the game OPPORTUNITY Wanted to create a differentiated service for consumers that would improve driver safety and vehicle sales MOBILITY STRATEGY Develop M2M infrastructure to get valuable information from automobiles wirelessly Create value-add mobility apps for remote functionality like car start and unlock BUSINESS VALUE Provided consumers a unique capability that increased consideration of GM cars in the sales cycle Consumer retention/brand loyalty improved due to access to this functionality 22
  • 23.
    Implementing a mobilitystrategy - Options Leverage an Industry Leader Partner with smaller firm(s) Build In-House GET IN GET AHEAD CHANGE THE GAME OF THE GAME THE GAME 23
  • 24.
    Why Compuware? In-House Small Firm Industry Leader • Total Control • Time to Market • Scalability • Resource Allocation • No Investment in • Early to Market • Generating Domain Expertise Resources • Multi-Platform Expertise • Potential Scalability • Performance Tested • Adaptive Agile Can I scale? Can I keep pace Can they scale • Enterprise Integrator with technology? Will they be in to meet business in our demands? 3 years? 24
  • 25.
  • 26.
    Mobile CoE Leadership Team Governance Sponsor Bob Kennedy Business Enterprise User Technical Delivery & Program Development Mobility Experience Solution Operations Management Allan John Jeff James Glen Nailesh Techko Kinnamon Von Buskirk Brown Goldman Shah 26
  • 27.
    Mobile Computing Overview Adaptive Agile Development M2M Enterprise Data Cloud Services Security Mobile Platforms Emerging Technologies Social Networking Media and Applications Performance 27
  • 28.
    Adaptive Agile Development Evolving Design Predictive Design Map v1 v2 v3 v4 Final Predicted Behavior and Usage Performance Security Technology Market Climate Actual Evolving Design Map 28
  • 29.
    Adaptive Agile Development Mobile Solution Approach Timeline Approach Foundational Aspirational Mobile Architecture Maturity Security v1 v2 v3 v4 Performance Back End Systems Mobile Innovation Process Framework Basic Dedicated Enhanced Enhanced Client Solution Services Services Services I Services II Mobile Readiness • Advanced UI • Assessment • UX Brand • Unique User • Advanced UI Design Data • Functions • Functions • Optimization • Data Management • Adoption • Proprietary • Security • Security • Cleansing • Translation Systems • Performance • Performance • Business Process • Functions Absorption 29
  • 30.
    Adaptive Agile Development Mobile Innovation Network Idea Management Innovation Planning Innovation Planning Innovation Proof Innovation Proof Idea Fulfillment Idea Fulfillment • Mobility Objectives • Usability Alternatives • Proof Definition • Acceptance Criteria Assessment Release • Business Benefits • Technology Alignment • Build Proof • Architecture Approval • Establish Metrics • Performance Measures • Analytics Established • Service Deployed • Risk Mitigation • Identify Cost Drivers • Evaluate & Measure • Service Management • Innovation Initiatives • Prioritize Initiatives • Deployment Plan • Analytics/Reporting 5-10 days 5 -15 days 2 – 4 Weeks 8+ Weeks Business Alignment Prioritization Approval Production Customer Stakeholders 30
  • 31.
  • 32.
    Partnerships are Essentialfor Success Marketing Firms •Branding •Campaigns •Social Networking •Platforms Mobile Device Wireless Providers Management •Network •Solutions Compuware (MDM) Providers •Device Management •M2M Framework •App Stores Customers •Mobile Strategy •Requirements •Funding 32
  • 33.
    A World of Opportunity 33

Editor's Notes

  • #12 Tesco, the S. Korean grocery chain that places QR codes in subways to shop instead of having any physical stores.
  • #15 Immediacy
  • #16 Every company will be different in their strategic commitment to mobility, depending on their corporate ‘DNA’ (innovators, fast followers, etc) and the extent to which they believe that mobility will help them achieve their overall corporate objectives. Competitive Survival: At this stage, the company does not perceive mobility as a strategic imperative, but understands that a minimum level of investment is required to meet customers’ (and employees’) new expectations. Mobility investments are confined to effective ‘mobile enablement’ of existing systems and processes to maximize usability on mobile devices. Examples are: Delivering appropriate website content to popular mobile devices. (ie Support for mobile browsers) Development of mobile apps to deliver specific functionality (ie A retail bank provides account lookup and bill pay, but not a full mortgage application) Delivering internal information to employees (mobile email, etc) Because they are only effectively providing a new user interface (with no new features), investment is relatively low, and time-to-value (albeit limited) is quick. Overall objective is to keep existing customers (and employees) happy, rather than to increase ‘stickiness’ or attract new customers. This may sound very basic, but the key strategic issue here is making sure you do it right with an impressive, high-performing experience or else it could have a negative impact on revenue. If the consumer has to wait 10 secs to get to your mobile site or your app is slow to respond, they’ll move on and will not return to your brand. Significant differentiation: The company understands that mobility can provide competitive differentiation by adding new, mobile-specific features to its existing products and services or solving an existing business problem with mobility. This requires a more significant and extensive investment since these new features will also require updated functionality on the back-end systems to support them. Examples include: - Location awareness: Integration with social media (Foursquare), driving directions to nearest branch/store (retailers, banks), driver/truck location (delivery companies) Camera: Check deposit (Chase Bank), insurance claims (upload pictures of accident site & vehicles). Real-time Information: Mobile usage models (telcos), package status (delivery companies) Time-to-value is longer and more investment is required, but the potential for revenue growth is much higher. The overall objectives are to increase existing customer satisfaction and ‘stickiness’, improve existing operational processes, and incremental acquisition of new customers. Disruptive Innovation: The company views mobility as a strategic imperative and an integral part of achieving its corporate objectives. Mobility becomes their key ‘game changer’ … a way to provide its customers with an entirely new way of doing business with them. Examples include: Provide real-time, actionable information from beyond the boundaries of the device itself that was previously unavailable to either the company or their customers (ie auto industry – OnStar, Insurance trackers, etc.) Investment is high: New systems and processes have to be implemented and significant sales and marketing effort is required to educate customers and prospects and encourage adoption. This often means the creation of a new business unit dedicated to the strategy. However, the ROI is very significant. Overall objective is a significant increase in market share, new revenue streams, and increased brand awareness. Typically, companies will move through these levels until it gets to its desired level. These phases are therefore components of a mobility journey. Now, let’s make this real by talking about some examples of how companies today are executing on mobile strategies in each of these phases . . .
  • #18 Every company will be different in their strategic commitment to mobility, depending on their corporate ‘DNA’ (innovators, fast followers, etc) and the extent to which they believe that mobility will help them achieve their overall corporate objectives. Competitive Survival: At this stage, the company does not perceive mobility as a strategic imperative, but understands that a minimum level of investment is required to meet customers’ (and employees’) new expectations. Mobility investments are confined to effective ‘mobile enablement’ of existing systems and processes to maximize usability on mobile devices. Examples are: Delivering appropriate website content to popular mobile devices. (ie Support for mobile browsers) Development of mobile apps to deliver specific functionality (ie A retail bank provides account lookup and bill pay, but not a full mortgage application) Delivering internal information to employees (mobile email, etc) Because they are only effectively providing a new user interface (with no new features), investment is relatively low, and time-to-value (albeit limited) is quick. Overall objective is to keep existing customers (and employees) happy, rather than to increase ‘stickiness’ or attract new customers. This may sound very basic, but the key strategic issue here is making sure you do it right with an impressive, high-performing experience or else it could have a negative impact on revenue. If the consumer has to wait 10 secs to get to your mobile site or your app is slow to respond, they’ll move on and will not return to your brand. Significant differentiation: The company understands that mobility can provide competitive differentiation by adding new, mobile-specific features to its existing products and services or solving an existing business problem with mobility. This requires a more significant and extensive investment since these new features will also require updated functionality on the back-end systems to support them. Examples include: - Location awareness: Integration with social media (Foursquare), driving directions to nearest branch/store (retailers, banks), driver/truck location (delivery companies) Camera: Check deposit (Chase Bank), insurance claims (upload pictures of accident site & vehicles). Real-time Information: Mobile usage models (telcos), package status (delivery companies) Time-to-value is longer and more investment is required, but the potential for revenue growth is much higher. The overall objectives are to increase existing customer satisfaction and ‘stickiness’, improve existing operational processes, and incremental acquisition of new customers. Disruptive Innovation: The company views mobility as a strategic imperative and an integral part of achieving its corporate objectives. Mobility becomes their key ‘game changer’ … a way to provide its customers with an entirely new way of doing business with them. Examples include: Provide real-time, actionable information from beyond the boundaries of the device itself that was previously unavailable to either the company or their customers (ie auto industry – OnStar, Insurance trackers, etc.) Investment is high: New systems and processes have to be implemented and significant sales and marketing effort is required to educate customers and prospects and encourage adoption. This often means the creation of a new business unit dedicated to the strategy. However, the ROI is very significant. Overall objective is a significant increase in market share, new revenue streams, and increased brand awareness. Typically, companies will move through these levels until it gets to its desired level. These phases are therefore components of a mobility journey. Now, let’s make this real by talking about some examples of how companies today are executing on mobile strategies in each of these phases . . .
  • #20 Every company will be different in their strategic commitment to mobility, depending on their corporate ‘DNA’ (innovators, fast followers, etc) and the extent to which they believe that mobility will help them achieve their overall corporate objectives. Competitive Survival: At this stage, the company does not perceive mobility as a strategic imperative, but understands that a minimum level of investment is required to meet customers’ (and employees’) new expectations. Mobility investments are confined to effective ‘mobile enablement’ of existing systems and processes to maximize usability on mobile devices. Examples are: Delivering appropriate website content to popular mobile devices. (ie Support for mobile browsers) Development of mobile apps to deliver specific functionality (ie A retail bank provides account lookup and bill pay, but not a full mortgage application) Delivering internal information to employees (mobile email, etc) Because they are only effectively providing a new user interface (with no new features), investment is relatively low, and time-to-value (albeit limited) is quick. Overall objective is to keep existing customers (and employees) happy, rather than to increase ‘stickiness’ or attract new customers. This may sound very basic, but the key strategic issue here is making sure you do it right with an impressive, high-performing experience or else it could have a negative impact on revenue. If the consumer has to wait 10 secs to get to your mobile site or your app is slow to respond, they’ll move on and will not return to your brand. Significant differentiation: The company understands that mobility can provide competitive differentiation by adding new, mobile-specific features to its existing products and services or solving an existing business problem with mobility. This requires a more significant and extensive investment since these new features will also require updated functionality on the back-end systems to support them. Examples include: - Location awareness: Integration with social media (Foursquare), driving directions to nearest branch/store (retailers, banks), driver/truck location (delivery companies) Camera: Check deposit (Chase Bank), insurance claims (upload pictures of accident site & vehicles). Real-time Information: Mobile usage models (telcos), package status (delivery companies) Time-to-value is longer and more investment is required, but the potential for revenue growth is much higher. The overall objectives are to increase existing customer satisfaction and ‘stickiness’, improve existing operational processes, and incremental acquisition of new customers. Disruptive Innovation: The company views mobility as a strategic imperative and an integral part of achieving its corporate objectives. Mobility becomes their key ‘game changer’ … a way to provide its customers with an entirely new way of doing business with them. Examples include: Provide real-time, actionable information from beyond the boundaries of the device itself that was previously unavailable to either the company or their customers (ie auto industry – OnStar, Insurance trackers, etc.) Investment is high: New systems and processes have to be implemented and significant sales and marketing effort is required to educate customers and prospects and encourage adoption. This often means the creation of a new business unit dedicated to the strategy. However, the ROI is very significant. Overall objective is a significant increase in market share, new revenue streams, and increased brand awareness. Typically, companies will move through these levels until it gets to its desired level. These phases are therefore components of a mobility journey. Now, let’s make this real by talking about some examples of how companies today are executing on mobile strategies in each of these phases . . .
  • #25 This is an illustration of the mobile system
  • #31 Tesco, the S. Korean grocery chain that places QR codes in subways to shop instead of having any physical stores.