How & Why Enterprise End Users are Deploying NFC Technology


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During this QuickCast, analyst John Shuster discusses several key findings from VDC’s recent Near Field Communications enterprise end-user survey.

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How & Why Enterprise End Users are Deploying NFC Technology

  1. 1. AutoID & Transaction Automation Practice John Shuster– Analyst WEBCAST How & Why Enterprise End Users areSeptember 2011 Deploying NFC Technology © 2011 VDC Research Webcast AutoID & Transaction
  2. 2. Recording Available A full audio recording is available for download at: © 2011 VDC Research Webcast AutoID & Transaction
  3. 3. About Us Market Intelligence for Technology Vendors & Investors  Direct-Contact Primary Market Research  Deeply Segmented Data  Expert Insights  Validated Results Consulting Services for Your Most Critical Business Decisions  Research-Based Consulting  Transparent Tools & Methodology o Highly Customized Survey Guides & Output Templates o Sophisticated Market Estimate & Forecast Models o Detailed, Flexible Stakeholder Maps & Profiles o Industry Development Scenarios o Market Opportunity Fit Screening, Rating & Ranking © 2011 VDC Research Webcast AutoID & Transaction
  4. 4. Our Core Coverage Areas AutoID & Transaction Automation Embedded Hardware & Systems Mobile & Wireless Industrial Automation & Control Embedded Software & Tools Emerging Technologies © 2011 VDC Research Webcast AutoID & Transaction
  5. 5. Ways to Work With UsOur syndicated research is the basis for the many ways VDC can help you grow your business. We offer a wide variety of services designed to meet help you grow your business.specific tactical and strategic decision support needs. All of our services are built on a foundation of highly skilled professionals applying robustmethodologies to VDC’s large and continuously refreshed datasets. © 2011 VDC Research Webcast AutoID & Transaction Automation
  6. 6. Today’s Speaker John Shuster Analyst John has experience in strategy and research consulting, private equity, and project management. At VDC, John is an analyst for the firm’s Consumer Engagement Technology and Retail Automation coverage. Prior to working as a CET analyst, John was responsible for VDC’s 2010 Land Mobile Radio study in the Mobile and Wireless practice. John has also worked as an Associate at Stax, Inc., a Boston-based strategy consulting firm, focusing on investment diligence and market opportunity assessment engagements. During his post-graduate studies, John completed a year-long corporate residency program at Boston Ventures, a middle-market private equity firm, where he was responsible for supporting operations in the finance and accounting department. John is a graduate of Dickinson College (BA, English) and Northeastern University (MBA, finance).For complimentary insights and marketing data: © 2011 VDC Research Webcast AutoID & Transaction Automation
  7. 7. Today’s Agenda NFC Adoption Drivers Leading Enterprise Applications Barriers to NFC Adoption NFC Budgets Expected to Increase Managed Services a Viable Strategy? © 2011 VDC Research Webcast AutoID & Transaction
  8. 8. NFC Adoption Drivers Driver Respondents Citing  Operational improvement is the most cited adoption driver for NFC among enterprise end-users. Operational Improvement 68%  Deploying enterprises also looking to justify NFC investment via ROI / cost savings. Cost Savings 64.6%  Enterprises also considering NFC as a platform for serving various applications including: Improved Customer o Customer Loyalty 64.0% Experience o Targeted Marketing / Promotions o Security / Access Control New Application 63.4% Development © 2011 VDC Research Webcast AutoID & Transaction
  9. 9. Leading NFC Applications Among Enterprises Security & Access Peer-to-Peer/ Ticketing: Events, Control Pairing Mass Transit, etc. 69.2% of respondents Cited by 53.8% of Nearly 40% of cited security / access respondents. While this respondents cited control as a leading application has overlap ticketing as a key NFC NFC application. with consumer NFC application. NFC Particularly well usage, it has broad tickets can serve a received in verticals appeal across verticals diversity of vertical- where restricted specific applications access is common, including health care and manufacturing © 2011 VDC Research Webcast AutoID & Transaction
  10. 10. NFC Adoption Barriers Barrier Respondents Citing  Relative to more established Auto ID solutions, NFC is a relative newcomer – as a result, lacks consistent recognition. Not Familiar with NFC 22.8%  NFC can serve a variety of applications, but nearly 20% of respondents reported no requirement. Lack of Requirement 18.9%  Suppliers should consider this a call to action and work to inform enterprises about NFC in respect to: o ApplicationsUnclear on NFC Benefits 6.6% o Solution Types o Benefits – both internal and customer-facing © 2011 VDC Research Webcast AutoID & Transaction
  11. 11. NFC Budgets Growing Rapidly Average Annual NFC Budget (N=175)  Average annual NFC spending expected to increase 3X by 2013 as $160,000 reported by respondents (N=175). $140,000  Spending could be accelerated by more rapid consumer level adoption $120,000 of NFC technology, especially with smartphones. $100,000  VDC expects the strongest spending $80,000 gains will be seen in B2C enterprises that can leverage customer-facing $60,000 mobility, including: $40,000 o Retail o Hospitality $20,000 o Transportation / Mass Transit 0 $- © 2011 VDC Research Webcast AutoID & Transaction
  12. 12. Managed Services Gaining TractionKey Drivers  Cost Savings: The clear winner  Low Upfront Costs: Makes the solution more attainable  Speed of Deployment: Customers are using NFC now – is your business?Who is Meeting the Demand?  Systems Integrators  End-to-End, Total Solutions Providers  And to a Lesser Extent…ManufacturersIssues to Bear in Mind:  Security is Key – especially with customer data  Enterprises Fear Loss of Control Over Systems  As Consumer NFC Adoption Scales, More Enterprises Will Go This Route © 2011 VDC Research Webcast AutoID & Transaction Automation
  13. 13. Thank You for Attending this VDC QuickCastFor more information please contact: John Shuster – Analyst | 508.653.9000 x133 Sherrie Nankin – Account Director | 508.653.9000 x119For complimentary insights and marketing data: © 2011 VDC Research Webcast AutoID & Transaction Automation