Financial Impact of BYOD Programs
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This document discusses the financial impact of BYOD (bring your own device) programs in enterprises. It notes that consumer technology is increasingly being used in the workplace as employees bring their personal devices. While BYOD can increase productivity and flexibility, it also introduces hidden costs for help desk support and security. The document reports that only about half of enterprises measure the specific financial impact of BYOD separately from other business processes. Common benefits of BYOD include increased worker productivity and decreased device replacement costs, while potential increased costs include mobile security and help desk calls. The presentation recommends that enterprises embrace BYOD but also implement tools to securely manage devices and measure the ROI of their BYOD programs.
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Financial Impact of BYOD Programs
- 1. Welcome! Financial Impact of BYOD Programs June 27th – 11:00am PDT
- 2. 2 A thought leader in enterprise mobility Former VP at Trend Micro, he currently serves as Co-Chair of the Mobile Working Group of the Cloud Security Alliance. Prior to this, he led the development of Oracle’s first cloud application, and held senior positions at iPass, WaveMarket, and Smith Micro Software. Selected as one of the ‘mobile industry’s top 180 influencers’ by VentureBeat in 2013. Cesare Garlati Co-Chair Mobile Working Group Cloud Security Alliance Blog: BringYourOwnIT.com linkedin/in/CesareGarlati twitter/CesareGarlati Financial Impact of BYOD Programs
- 3. 3 Consumerization of IT “Consumerization will be the most significant trend affecting IT during the next 10 years” Gartner New technology emerges first in the consumer market and then spreads into business organizations brought in by the employees IT and consumer electronics converge as individuals rely on the same devices and applications for personal use and work-related activities Overwhelmed by the wave of consumer technology flooding the enterprise, IT managers lose control and struggle to enforce policies
- 4. 4Source: Trend Micro Global Survey IT Managers, 500+ Employees, July 2011 ConsumerizationReport©
- 5. 5 Poll #1 Does your company allow employees to use personal laptops, smartphones and tablets for work? Yes No Not Sure/Don't Know 91% 9% 0%
- 6. 6 Types of Enterprises BYOD Programs 60% Smartphones 47% Tablets Due to the Consumerization of IT trend ... ... enterprises deploy a variety of BYOD programs "What are your firm's plans to implement each type of BYOD program?" Source: Forrester Consulting Survey, February-March 2012 36% Home Desktops
- 7. 7 Key Factors Driving Firms To Deploy BYOD Increasing worker productivity and flexibility ... ... are leading factors driving BYOD programs "Please identify the key factors driving your firm to deploy BYOD programs” Source: Forrester Consulting Survey, February-March 2012 70% Productivity 63% Remote Access 40% Cost Cutting
- 8. 8 Poll #2 Which of the following statements best describes the way your company measures the financial impact of BYOD? Measure BYOD impact separately from other business processes Not measured separately, included in total business process Not Sure/Don't Know 32% 18% 50%
- 9. 9 You Can’t Manage What You Don’t Measure Most enterprises measure the impact of a wide variety of BYOD related items ... ... only half measure specific BYOD impact separately from other business processes Source: Forrester Consulting Survey, February-March 2012 53% Mobile Device 58% Voice Plans 52% Data Plans
- 10. 10 BYOD: The Hidden Costs +8% Help Desk Calls +7% Mobile Security Help desk calls raise significantly Source: Forrester Consulting Survey, February-March 2012 +3% Server Costs Mobile device management software Corporate Email Enterprise Apps
- 11. 11 BYOD: The Benefits +12% Worker Productivity -15% Device Replacement Top benefit is increased productivity Source: Forrester Consulting Survey, February-March 2012 -8% Mobile Data Cost Device replacement costs decrease Reimbursement for employee data expenses shrinks
- 12. 12 Embrace is the optimal approach Consumer technology is invading the enterprise and you won’t be able to resist it – nor should you. BYOD brings real benefits for the business and some hidden costs for the IT organization. The lack of a strategic approach to Consumerization creates security risks, financial exposure and a management nightmare. Embrace Consumerization to unlock its business potential Build a framework to measure the ROI of your BYOD program Deploy new IT tools to secure and manage consumer technology in the enterprise 1 2 3
- 14. 14 www.BitzerMobile.com For a free assessment of your enterprise mobility plan contact info@bitzermobile.com Don’t miss out next webinar, “SharePoint & Mobile” on August 6th 2013 Q & A
Editor's Notes
- a thought leader in enterprise mobility, is an accomplished speaker worldwide and is a frequent industry expert for popular publications.Former VP at Trend Micro, he currently serves as Co-Chair of Cloud Security Mobile Alliance- Mobile Working Group. Prior to this, he led the development of Oracle’s first cloud application, and held senior positions at iPass, WaveMarket, and Smith Micro Software. He holds a BS in Computer Science, and MBA. Cesare was selected as one of the ‘mobile industry’s top 180 influencers’ by VentureBeat in 2013. Cesare Garlati is one of the most quoted and sought-after thought leaders in the enterprise mobility space. Former Vice President of Mobile Security at Trend Micro, Cesare currently serves as co-chair of the CSA Mobile Working Group – Cloud Security Alliance. Prior to Trend Micro, Mr. Garlati held director positions within leading mobility companies such as iPass, Smith Micro Software and WaveMarket. Prior to this, he was senior manager of product development at Oracle, where he led the development of Oracle’s first cloud application and many other modules of the Oracle E-Business Suite.Cesare has been frequently quoted in the press, including such media outlets as The Economist, Financial Times, The Register, The Guardian, ZD Net, SC Magazine, Computing and CBS News. An accomplished public speaker, Cesare also has delivered presentations and highlighted speeches at many events, including the Mobile World Congress, Gartner Security Summits, IDC CIO Forums, CTIA Applications, CSA Congress and RSA Conferences.Cesare holds a Berkeley MBA, a BS in Computer Science and numerous professional certifications from Microsoft, Cisco and Sun.He lives in the Bay Area with his wife and son. Cesare’s interests include consumer electronics in general and mobile technology in particular.Cesare’s biggest prediction for enterprise mobility in the next 12 months:“The odds dictate that there will be a major security case during 2013 due to consumer mobile technology in the enterprise – so called BYOD. Mobile security and mobile malware will become mainstream themes.”*** Selected as one of the “mobile industry’s top 180 influencers” by VentureBeat 2013*** Recognized as one of the “Top 10 Consumerization Thought Leaders” 2011Follow me on Twitter @CesareGarlati
- http://bringyourownit.com/2011/09/26/trend-micro-consumerization-report-2011/Consumerization Report 2011An increasing number of organizations take a strategic approach to Consumerization by providing IT support for personal devices and by deploying new IT tools to secure and manage them.This online survey was conducted in June 2011 in the U.S., Germany and Japan among IT personnel responsible for endpoint operational management and/or messaging and collaboration operations. Respondents needed to be part of an organization with at least 500 employees worldwide. A total of 600 surveys were collected equally distributed across countries and industry verticals.Consumerization reaches the tipping pointData shows that the majority of companies surveyed already allow employees to use their personal devices for work-related activities. On an aggregate, 56% of therespondents say yes to Consumerization as end-users favor personal devices because easier to use, more convenient and allow them to mix personal and work. While the trend is clearly affecting organizations worldwide, not all regions have adapted at the same pace: the U.S. already lead this innovation with 75% of yes, the more conservative Japan is on the raise with 36% and Germany somewhere in between with 59%. From an industry vertical perspective, Education (80%), Health Care (69%) and Business Services (67%) are the most consumerized industries while Manufacturing (48%), Government (39%) and Utilities (36%) are slower at embracing consumer technology. Company size doesn’t seem to be a discriminating factor although mid-large organizations show higher adoption rates, up to 65% for companies with 1,500 employees.
- http://bringyourownit.com/2012/12/11/the-financial-impact-of-consumerization-you-cant-manage-what-you-dont-measure/The Financial Impact of Consumerization – You can’t manage what you don’t measureThe Consumerization of IT is a trend even the most parochial IT manager has surely heard of by now. It’s sweeping through enterprises across the planet with no regard for legacy, tradition or order and can be seen as either the most exciting or terrifying thing to happen to IT in the past decade, depending on where you stand.For many IT managers, unfortunately, the prevailing attitude is still “why should I allow it?”. They are clinging on to the old paradigm whereby IT controlled and dictated the purchasing and ongoing management of technology used by employees. This attitude just will not stand any longer – consumerization is happening, and it needs to be managed in as financially efficient a manner as possible.The problem with this is that, up until now there has been virtually no data with which IT leaders could start constructing their ROI frameworks. Not only did they not know for sure what the biggest cost impacts on BYOD programs and IT consumerization were, but they had little idea on how to start measuring them.This is why Trend Micro commissioned analyst house Forrester Consulting to carry out a comprehensive study into the financial impact of consumerization. Forrester surveyed 202 IT decision-makers in enterprises in the US, the UK, France, and Germany, and conducted eight in-depth interviews lasting 45 minutes each. All participants in this study were C-level execs or IT leaders who’ve worked on BYOD programs and understood the financial impact of such trend on their organizations.Make no mistake, this is an industry first – a rigorous scientific study designed to discover at last the financial impact of IT consumerization. And guess what we found? Most companies just aren’t measuring. In virtually all categories – from mobile security, to helpdesk, to legal fees, to staff training – around 40% of respondents said they currently weren’t measuring the cost/benefit impact. How can they improve their programs, or even build a business case, if there is no measurement? The answer is they can’t.All IT leaders should be clear that consumerization is unlike any other IT technology ‘investment’ in that in cannot be easily tracked and accounted for. CRM, ERP, and office productivity software, servers and desktops, routers and switches can all be very clearly audited and the return on investment calculated in a relatively straightforward manner, but not for example with BYOD – the enterprise mobility incarnation of the consumerization trend. The devices are not owned by IT, the trend is not driven by IT and the tech vendors are from the consumer sphere – no product release roadmaps or volume license deals here.In this new world, IT leaders should learn to create a dual accounting ledger whereby traditional investments are accounted for alongside separate costs relating to the technologies owned by staff. It’s the only way to gain meaningful insight into the true cost of IT consumerization. IT bosses, for example, need to be able to measure the real cost of helpdesk calls related to employee-owned mobile devices, software OS licensing costs for employee-owned laptops, and VDI investments needed so staff can use their own desktops at home. This will require a new way of thinking about budgeting, but that’s vital if IT is to ensure all technology is used and managed in the most efficient way possible – even if it is owned by the staff.Consumerization is disruptive and inevitable. But many IT leaders are slow to realize it – and apparently unable to fully identify its business potential. Like dinosaurs of a previous IT era, they are likely headed for extinction.
- http://bringyourownit.com/2013/02/04/the-financial-impact-of-consumerization-the-hidden-costs/The Financial Impact of Consumerization – The Hidden CostsExecutives and IT leaders are struggling to understand the true costs and benefits of IT consumerization and it’s not difficult to see why. Even a cursory Google search on the subject throws up as many questions as it does conflicting answers. The reason is that no comprehensive research has been conducted into the financial impact of such programs before.That’s why Trend Micro recently decided to take the bull by the horns and commission Forrester Consulting to conduct a rigorous, scientific study – interviewing over 200 IT leaders in the US, UK, France, and Germany. With the results we have begun to build an accurate picture for the first time of what organizations are measuring in their BYOD programs and the cost impacts, in order that IT leaders can go away and begin to formulate for themselves an effective cost benefit analysis.One of the most interesting effects of the research has been its ability to dispel some common myths around BYOD and prove empirically that, at least for the respondents questioned, IT consumerization leads to cost increases in various key areas. These include: helpdesk, software licensing, mobile security, mobile device management and regulatory compliance.Helpdesk is an area where some may expect costs to fall, given that employees are using their own devices, but T1 and T2/3 call costs increased for 60% and 50% of respondents respectively. The reality, as articulated by these stats, is that consumer tech companies and mobile operators cannot simply deal with the kind of helpdesk inquiries that most corporate staff will need answering, so the problems boomerang back to the corporate helpdesk, except this time the number of devices and operating systems they have to deal with has snowballed.Similarly, licensing costs for employee-owned laptops or home desktops could be expected to fall. However, the research showed costs increased for more people (48%) than it decreased. The key here is to understand that companies are effectively complicit in fraud if they allow their staff to use software applications licensed for home-use for work related purposes – another important note for risk adverse IT managers.Nor can IT wash its hands of expenses associated with compliance, security and mobile device management, the research found. Security in particular was singled out by respondents as the biggest challenge of BYOD, with 63% saying associated costs increased.The caveat to the research of course is that not all respondents have been adept at measuring the impacts of consumerization effectively, as I discussed in a previous blog, but this is the first report of its kind and hopefully things will improve. Nonetheless it’s a start, and the research should give IT leaders some valuable actionable information and recommendations to help them begin measuring and improving programs.At the same time, the research unequivocally points out that Consumerization does bring in real business value. My advice for organizations facing an increasingly consumerized IT world is to realize that Consumerization is happening and they can’t stop it – and in fact they shouldn’t. Embrace consumerization is the optimal approach: create a plan that spans the whole organization, say yes but not for everything to everyone and put the right new infrastructure in place to secure and manage consumer-grade technology in the enterprise.Rather than resist it, organizations should embrace Consumerization to unlock its business potential.
- http://bringyourownit.com/2013/01/16/the-financial-impact-of-consumerization-byod-boosts-productivity/The Financial Impact of Consumerization – BYOD boosts productivity.IT strategists and commentators alike have been talking about the cost impacts and benefits of the Consumerization of IT for years. However, no-one seems to agree on what’s actually going on out there from a financial perspective. Why? Because no one has managed to formulate an effective framework for measuring the financial impact of consumer-grade technology on the enterprise. IT managers are effectively flying blind with only a vague notion of what to measure and how to measure it.That is until now. Thanks to comprehensive research commissioned by Trend Micro and recently carried out by analyst Forrester Consulting, we have for the first time collated an invaluable set of rigorous scientific data on the subject. So what does it tell us? Well, as discussed in the last post, it clearly shows that not enough businesses measure BYOD programs in the correct way. But what it also highlights is that an overwhelming number of enterprises find that allowing staff to use their own technology for work increases productivity – in fact quite a lot.In total, 82% of respondents said they thought BYOD programs increased staff productivity, with the largest group (52%) claiming it increased by 10-20%. In many ways this seems like a no-brainer. Consumer technology is widely accepted to be more exciting, user-friendly, innovative and just easier to use than its enterprise equivalent. Employees want to use their mobile devices, laptops and home PCs for work, and are also likely to get more out of the technology because they’ll be more familiar with it. The employee will usually be multi-tasking in front of the TV on their iPhone long after the corporate BlackBerry has been switched off, for example.But it’s important for IT managers reading this to understand that these results need to be viewed in the context of their particular industry vertical or individual organization. It’s certainly not the case that all firms will see such a potentially dramatic impact on their bottom line. Yes, if your organization is a service-oriented business with a large number of white collar personnel then there are likely to be big gains to be made from allowing staff to use their own technology for work. However, if you work in manufacturing, for example, there is likely to be limited impact on staff productivity. The assembly line worker will gain little productivity-wise from being able to check work emails from their own smartphone, for example.The lesson here is that although productivity gains may offset many of the costs and risks associated with BYOD programs, as with most things in life, there’s no one-size-fits-all approach. IT leaders would do well to think very carefully about their own circumstances when reading the research and building an ROI framework specific to their organization.Companies that are questioning whether or not to allow workers to bring personal devices into the workplace should just stop asking. Thanks to this authoritative independent study, it is now scientifically demonstrated that you can get a competitive edge when you put the right precautions in place. The BYOD phenomenon gives companies that allow it a competitive advantage as it enhances innovation and creativity in the workplace while reducing overall costs for the entire organization. The key to not being overwhelmed by this trend is that all these consumer-grade technologies need to be secured by implementing the proper BYOD policies and procedures.
- http://bringyourownit.com/2013/03/11/the-financial-impact-of-consumerization-does-byod-make-business-sense/The Financial Impact of Consumerization – Does BYOD make business sense?March 11, 2013 1 Comment(Edit) 1 VoteOne of the less understood aspects of Consumerization is its financial impact on the business. Is your BYOD program in the money?Studies* show that an increasing number of organizations allow their employees to use personal devices to connect to corporate networks and data for work related activities – the so called Bring Your Own Device phenomenon. However, a recent study conducted by Forrester Reserach reveals that only a few companies measure the actual financial impact of this new IT model and that even fewer have a clear sense of whether Consumerization actually makes good business sense.To help C-level executives articulate the business case for Consumerization, Trend Micro has partnered with Forrester Research to develop the first industry study on the financial impact of consumer technology in the enterprise. The research was conducted in January 2012 in the U.S. and Europe and includes 200 organizations that offer formal BYOD programs to their employees. Respondents include CXOs and senior IT managers with an understanding of the impact of the program on their business unit or organization.According to the study, the key factors driving the majority of the firms to define BYOD programs are increased worker productivity (70%) and providing access to corporate information for employees who are away from the office (63%). Contrary to common misconception, only a minority of companies look at device (40%), voice (20%) and data (23%) costs reduction when considering BYOD.Most enterprises measure the impact of a wide variety of BYOD related items. However, approximately only half of them measure the specific impact achieved by BYOD separately from other types of business processes. Among the most scrutinized items are bottom line revenues (59%), software license costs (60%), corporate reimbursements for employee devices (53%), voice (58%), data (52%) and device replacement costs (51%).In terms of overall business impact, respondents point out that BYOD mainly benefits worker productivity (66%) and flexible work environment (66%) while negatively affects mobile device management cost (41%), helpdesk support calls (36%) and helpdesk costs (33%).The actual financial impact of BYOD varies widely across the sample. For the first time however, this study offers an aggregate estimate of the most relevant items quantified in terms of weighted averages***.Here are some revealing pros and cons:12% increase in worker productivity (n=27)15% decrease in device replacement costs (n=17)8% decrease in reimbursement for employee data expenses (n=21)5% decrease in training and education costs (n=11)3% increase in bottom line revenues (n=22)8% increase in the number of help desk calls (n=20)7% increase in mobile device management costs (n=17)3% increase in corporate liable data costs (n=20)3% increase in server costs (n=15)2% increase in regulatory compliance expenses (n=14)To answer the key question whether BYOD is in fact saving or costing money to a specific organization, the cost benefit analysis above needs to be applied to the specific business model of the company. Generally speaking, service oriented verticals with higher administrative personnel costs are poised to gain most from BYOD – due the sizable increase in worker productivity – while manufacturing and capital intensive verticals may see less of an impact on the bottom line.Organizations may therefore look at BYOD as an opportunity to gain competitive advantage or as mere cost of doing business. Regardless from any financial consideration however, one thing is certain: Consumerization is real and here to stay. The lack of a strategic approach to Consumerization creates security risks, financial exposure and a management nightmare for IT. Rather than resist it, organizations should embrace Consumerization to unlock its business potential. This requires a strategic approach, flexible policies and appropriate security and management tools.