Mobile and Social Impacts on Business

Mobility and Social Media (September 2012)
Mart Leepin 1

Mart Leepin 2
Contents
Contents ..................................................................................................................................................2
Introduction.............................................................................................................................................3
The rapid adoption of mobile communications and social media...........................................................3
The impacts of mobile communications and social media on organisations..........................................3
Challenges presented by mobile communications..................................................................................4
Operation ............................................................................................................................................4
Display................................................................................................................................................4
Functionality .......................................................................................................................................5
Connectivity........................................................................................................................................5
Challenges presented by social media ....................................................................................................7
Management of feedback and channels ..............................................................................................7
The rights to and ownership of relationships......................................................................................7
Appropriate use...................................................................................................................................8
Changes required to architecture if mobile communications and social media are adopted ..................8
Security - Basic configuration ............................................................................................................8
Security – Policy.................................................................................................................................8
Use of a unified platform....................................................................................................................9
Changes required to Human Resources if mobile communications and social media are adopted......10
How ERP systems can support the use of mobility and social media ..................................................11
The consideration of business areas that will benefit from mobility ................................................11
How ERP back-ends can be made available to mobile devices........................................................12
Utilising data collected via social media for informative purposes ..................................................13
Conclusion ............................................................................................................................................13
References.............................................................................................................................................15

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Introduction
This essay briefly highlights the expanding use and impacts of mobile communications and
social media in today’s world. The opportunities and challenges that these tools introduce are
described. Where adopted, changes that maybe required within an organisation’s architecture
are examined as well as other potential changes required to Human Resources. How ERP
and related products can support mobile communications and social media are also outlined.
The rapid adoption of mobile communications and social media
The use of mobile communications has spread rapidly since the mid to late 2000s. At present
approximately half of all mobile phones in the United States of America and Australia can
access the internet (Cocotas 2012, Ross 2012). The rapid adoption of such technology is
especially evident in Australia where the market penetration of smart-phones in the mobile
phone market had increased by 40% between 2011 and 2012 (Ross 2012).
It is estimated that mobile devices will shortly overtake PCs and laptops, becoming the
device of choice for accessing the internet. This also indicates a greater cross over between
working and personal lives and shifting expectations and preferences of the workforce toward
the increased use of mobile devices for both personal and working needs (Allen 2010,
Gartner 2010).
The use of popular social media has also increased. Between June 2011 and June 2012
Facebook user accounts in Australia had increased by approximately six hundred thousand to
just over eleven million. As at June 2012 You Tube Unique Australia Visitors totalled
approximately eleven million. Between January 2011 and June 2012 in Australia Twitter
users had increased from one million to almost 2 million (Social Media News 2012).
The impacts of mobile communications and social media on organisations
As mobility gains traction the opportunities for organisations to enhance and differentiate the
configuration of activities and processes emerge. For example a recent survey of businesses
in the United States that utilise mobility / mobile communications highlighted the following
advantages:

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• A greener and leaner operation through reducing the need for utilities;
• An enhanced customer experience through timely provision and recording of
information;
• Streamlining of processes through paperless automation;
• Enhanced communication by enabling cross cultural exchange;
(Kessler 2011).
Social media is evolving from an experimental means of promotion to an extremely powerful,
informative and interactive tool. Social media offers organisations the following:
• Up-to-the-minute exchange of information with the world;
• A foundation for creating widely recognised brands;
• A means to facilitate specific location based marketing strategies;
• Enhanced recruitment and business to business relations;
(Hernandez 2011).
The challenges presented by mobile communications
Users of Mobile devices and PCs have the same fundamental need – to gain access to
corporate information that is stored on a server. However mobile devices differ from
traditional PCs and laptops, which presents challenges to organisations, especially if adopted
on a larger scale to support their strategy. Differences and challenges are outlined as
follows:
Operation
Mobile devices utilise different operating systems from PCs and laptops, which means
software is not interchangeable between the two. Based on this separate software may be
required for both.
Display
Mobile devices are typically smaller than PCs and laptops and some offer intuitive touch
screen display, so information is displayed in a different way. Due to the great range
available there is also a variance in display amongst mobile devices.

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Functionality
Mobile devices are not driven by standard applications as seen with PCs and laptops. Mobile
devices are more often utilised to access certain information or to complete very specific
functions within a process. This will eventually result in an organisation having to manage
complex role based user administration and also manage exclusive applications that support
specific business functions.
Connectivity
Mobile devices rely upon access to a public telecommunications network for connectivity,
whilst traditionally PCs and laptops rely upon access to an internal corporate network.
Mobile devices that have been implemented piece by piece in a home grown, loosely
governed environment without a common platform may only suit a smaller organisation. On
the contrary in larger or expanding organisations the quantities of mobile applications,
operating and back-end systems increase and without a common platform issues may arise
such as security, privacy and high costs of development and ownership.
Security and privacy
Sensitive and classified information that can be accessed remotely poses security risks for an
organisation. Misplaced or lost mobile devices can be difficult to find or trace. According
to a study of 1500 participants undertaken internationally, 4 in 10 organisations had mobile
devices lost or stolen, half of these lost or stolen devices contained critical or sensitive
information and a third of these losses resulted in adverse financial impacts to organisations
(Cylab, Mcafee 2011).
There is also an emerging trend of Bring Your Own Device / Service (BYOD / BYOS)
particularly in Asia where professional’s personal device preferences override standard
device options provided by organisations. Where devices are used for both personal and
business purposes there are potentially greater security risks including data loss and the
introduction of malware to an organisation’s network (Cylab, Mcafee 2011). The use of a
mobile device for work and personal purposes may also raise privacy issues such as personal
information leakage and knowledge of a person’s whereabouts (Kaneshige 2012).

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The potentially high costs of development and ownership
Where there are multiple devices operating independently on separate point to point
connections a chaotic environment may develop where maintenance and development of
infrastructure becomes complex. This chaotic environment of numerous point to point
connections is pictured below:
(Sybase 2011c).
Within such an environment pictured above maintenance of databases or back-ends may be
difficult where a developer is not aware of which external applications and devices have
access or should be sharing information. Adding new applications or changing features on
the various devices within an organisation may also become time consuming and costly as the
potential for the reuse and sharing of features may be reduced in a heterogeneous
environment (Mobile World of SAP: MEAP 2011, Sybase 2011a).
Administration and accountability
The use of BYOD is expected to increase in the future. In BRICs countries (Brazil, Russia,
India, China and South Africa) there is a greater use of BYOD with a level of concern mostly
focused on technical / functional aspects. In non BRICs countries the use of BYOD is less
widespread but where present there is a greater concern for governance / control in addition
to technical aspects. The use of BYOD creates a large “grey area” where questions of
accountability arise i.e. who should be responsible for costs associated with use and
maintenance? What proportion of costs associated with the use and maintenance should be
covered and by whom? The provision of mobile devices by an organisation to employees

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also raises issues such as levels of data access, and required features and functions (Gartner
2012).
Challenges presented by social media
Management of feedback and channels
Social media offers instant interactivity with the wider world and in return large volumes of
and varieties of data are generated. This raises the following areas of consideration:
• Is the media through which the data is captured appropriate? For example a Facebook
page may invite a range of open comments which may need to be actively managed,
whilst an online survey collects specific data only.
• Is the data captured relevant? For example open comments left on a Facebook may
lack relevance when compared to a survey that can directly capture required data.
• Can the data be utilized for informative purposes? Comments by customers may
require greater analysis to become informative, whilst targeted surveys may directly
capture data that can be promptly utilized for informative purposes.
Social media that customers interact with can present the opportunity to openly praise or
defame an organization. For instance a well-known Australian retailer recently went into
damage control where one customer’s negative comment on the retail organization’s
Facebook page rapidly snowballed into widespread online criticism of a the retailer’s
clothing range (Bourke 2012).
The rights to and ownership of relationships
Social media presents organizations with a “grey area” concerning right to and ownership of
relationships and social capital. For instance it may not be clear who has the right to a
business relationship developed via social media when an employee moves on from an
organisation. A particular example outlined how an employee in the United States of
America developed an online profile whilst working for a particular company and continued
to leverage this online profile and relationship after this employee had left their original
employer. This resulted in the employee’s liability for damages to the previous employer
(Gross 2012).

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Appropriate use
The fact that social media offers instant interactivity with the wider world calls for
responsible use. What may seem to be an appropriate use of social media for promotion by
an organization may be considered inappropriate by others or by the customer. For instance
to commemorate the death of a popular musician a company distastefully offered
condolences via social media by trying to sell fans more of this artist’s music. Also a
particular fashion label inappropriately promoted their upcoming clothing range by joking via
social media that the recent political uprising in the Middle East was an indication of a
growing sense of excitement concerning the fashion label’s upcoming new collection (Gross
2012).
Changes required to architecture if mobile communications and social
media are adopted
Security - Basic configuration
In order to mitigate the security risks such as unauthorized access, data leakage and the
introduction of external threats a thorough risk assessment is required followed by
implementation and enhancement of basic technical security configurations. These should
extend beyond updated Antivirus software and firewalls. Other important actions required to
ensure an effective basic security configuration could include:
• Strong passwords to gain initial access;
• Encryption to protect data files in case of unauthorised physical access;
• Virtual Private Networks to isolate remote and mobile users from users on a main
network;
(Zhang 2009).
Security – Policy
To ensure accountability and effective administration of mobile devices, security policy must
consider the management of and the appropriate usage of the types of devices and the needs
of users. To ensure control, users should be distinctly segregated by business needs and
corresponding functionality. The availability of functionality and information should be
limited only to what is required when the employee is mobile (Jogani 2006).

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In addition to the technical aspects effective security policy should also focus on proactively
educating users and raising individual awareness of the importance of security. The
individual sense of responsibility of employees should be clearly stated. Therefore an
effective security policy that raises awareness should be enforced within an organisation lead
by unit managers and Human Resources. According to a study of 1500 participants
undertaken internationally, only 30% of participants were highly aware of mobile security
and data backup policies. This suggests a strong need for proactive security related training
and information provision, which will increase as mobile device adoption continues to grow
(Cylab & Mcafee 2011).
A proactive approach to education compliments risk and security management, for example
in China it has been stated that security risks are potentially higher due to the greater use of
BYOD, but at the same time training and awareness of security are also more thorough. For
instance it is the common practice of organisations in China to provide instructional videos
and training to raise security awareness. Compared to the United States where it may be
more common for employees to be generally expected to read over lengthy hard copy policies
(Kaneshige 2012).
Use of a unified platform
In order to reduce the likelihood of siloed, disparate mobile devices and to reduce the high
costs of development and ownership associated with maintaining a variety of mobile devices
and back ends, a unified platform known as a Mobile Enterprise Application Platform
(MEAP) may be required by an organization. A MEAP is illustrated below:

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(Sybase 2011a).
A MEAP enables flow of data from a back-end to a mobile device and vice versa via
middleware. A MEAP also provides toolsets that enable scalable development of integrated
mobile applications. Mobile applications interact with the middleware and drive both the
interface and process logic. Applications developed on a MEAP may run on more than one
type of device and can access more than one type of back-end / database, therefore flexibility
and sharing of information across device types is made possible (Sybase 2011a).
A guideline for organizations has been provided by Gartner, known as the Rule of Three.
This suggests that it may be beneficial in terms of cost and strategy to consider a MEAP
where one of the following scenarios applies:
1/When there are three or more mobile applications;
2/When there are three or more targeted operating systems or platforms;
3/When there is integration of three or more back-end systems;
(Jow 2012).
Changes required to Human Resources if mobile communications and
social media are adopted
As previously outlined education is paramount to security, therefore Human Resources
should play an active role in the development of education policy concerning appropriate use

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of mobility. Policy should clearly highlight the individual’s sense of responsibility and also
cover aspects such as BYOD. As mobility becomes more widespread individual employment
contracts should also address appropriate use of mobile devices. As social media presents
potential legal issues concerning appropriate use, Human Resources should also actively raise
awareness concerning the appropriate use social media, and address issues such as the right
of / to relationships where an employee’s role is reliant upon social media channels. To
compliment effective security configuration and policy Human Resources should participate
in developing a role based structure and approach within an organisation when mobility is
deployed.
How ERP systems can support the use of mobility and social media
Mobility and social media offers opportunities for organisations to enhance and differentiate
the configuration of activities and processes. ERP systems can support the use of these tools
by:
• Considering the functions of the business that will benefit from mobility and social
media;
• Making the ERP business processes and back-end data available to people centric
devices and environments;
• Utilising data collected via social media for informative purposes.
The consideration of business areas that will benefit from mobility
Ideally, businesses running ERP systems that are considering leveraging mobile solutions
should consider a business case approach. This will ensure that mobility is aligned with
business objectives and strategy. This approach should specifically consider where mobility
will provide the greatest value because particular business areas and roles will benefit more
than others.
Where there is a need for urgent responsiveness to customer requests or if information is
required when interacting with customers externally whilst travelling, mobility may provide
benefits. For instance, Tellabs a US based company introduced iPads as enterprise devices
in the supply chain area of the business. This provided a more timely response for customers
who were urgently seeking orders and support. By utilising the iPad processing and response
time was almost three times faster than using a regular desktop or laptop (Tellabs Delivers a

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Better Solution to Customers Using the iPad, n.d.). However mobile technology should not
be seen as a quick fix solution. It can be effective only when paired with efficient processes
and functions, so business areas that will benefit from mobility when their processes are first
examined and adjusted (Sybase 2011b).
How ERP back-ends can be made available to mobile devices
In order to leverage the potential of mobility and social media, back-end data and business
processes of ERP systems require external connectivity to a mobile platform and devices. In
order to access back-end data and processes substantial development effort and knowledge
has typically been required to create connections by web services or portals. An example of
how an ERP system is now providing efficient access to its back-end data and business
processes for mobile devices is SAP providing a product called SAP Netweaver Gateway
(Bernard 2012). SAP Netweaver Gateway and its relationship within mobile architecture is
illustrated below:
(Thirakul 2012).
SAP Netweaver Gateway can be described as open and flexible technology that enables
applications to be extended to people centric devices and scenarios. Gateway is adaptable to
any device or platform as it exposes the back-end and business processes as Open data
(Odata). This means that a SAP ERP system can be exposed to and accessed by any device
that utilises a browser. Gateway does not interfere or impact business applications. One of
it’s main advantages is that it allows developers open connectivity between ERP systems and

Mart Leepin 13
interfaces that have been developed in a range of development languages without requiring
knowledge of SAP's own ABAP language (Bernard 2012).
Utilising data collected via social media for informative purposes
By paying attention to information generated by social media, businesses gain rapid and
intelligent insight into their customers, products and markets. Specifically insight gained
could include the changing preferences of customers and highlight the need for specific and
innovative actions to be undertaken (Powel 2011). Data gathered by social media could be
treated as a data source within Business Intelligence (BI) and Customer Relationship
Management (CRM) systems. The sheer volume of data collected via social media can be
overwhelming if an organisation plans to utilise this as part of its BI and or CRM strategies.
To overcome this, reporting and metrics should be clearly defined to ensure relevant and
specific data is being collected. This will reduce the need for filtering and complex analysis.
However, in some cases a third party or specialised tools may even need to be utilised to
perform analysis and interpretation of this data (Chouffani 2012, Powel 2011).
Conclusion
There is certainly no doubt that mobile communications and social media has rapidly grown
in popularity in recent years and it seems likely that they will continue to do so. These tools
present organisations with new opportunities including: the enhanced ability to differentiate
activities and added insight and intelligence concerning the business environment. Where
adopted challenges arise due to: the inherent differences in between mobile and traditional
forms of technology and the vast, open channel that social media offers organisations.
Specific challenges include: security risks, high costs of development / ownership,
accountability and effective administration, how to interpret and manage feedback, the grey
legal areas concerning rights to and ownership of business relationships and the appropriate
use of chosen media. In order to effectively leverage mobile communications and social
media and to overcome these challenges, changes to an organisation’s architecture and
Human Resources are required. These changes include: enhancements to infrastructure and
security, choice of appropriate media / ways of effectively interpreting data and the strong
need for raising awareness through the education of the workforce. As ERP systems form the

Mart Leepin 14
core foundation for business functionality they play an important role in supporting the use of
mobile communications and social media. The support that ERP systems may provide
include: integrating suitable ERP functions with these tools, enhancing connectivity between
ERP systems and people centric devices and environments and leveraging data gained via
social media for informative purposes.

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