Driving Enterprise Mobility Solutions Demand: Understanding End User Requirements & Preferences

VDC Research Webcast
Driving Enterprise Mobility Demand:
Understanding End User Requirements & Preferences

Mobile & Wireless Practice
David Krebs, Director

Frequently Asked Questions

These slides are from a webcast presented on 9/30/2010.

A full audio recording is available at:
http://vdcresearch.com/Landing/webcast93010.aspx

1– 2010 VDC Research Group, Inc.

VDC Research

Complimentary insights and marketing data on the
Enterprise & Government mobility Markets
available at:
www.vdcresearch.com


Today’s Speaker

David Krebs, Practice Director
David has more than ten years experience covering the markets for enterprise and government
mobility solutions, wireless data communication technologies and automatic data-capture research
and consulting. David focuses on identifying the key drivers and enablers in the adoption of mobile
and wireless solutions among mobile workers in the extended enterprise. David’s consulting and
strategic advisory experience is far reaching and includes technology and market opportunity
assessments, technology penetration and adoption enablers, partner profiling and development, new
product development and M&A due diligence support. David has extensive primary market research
management and execution experience to support market sizing and forecasting, total cost of
ownership (TCO), comparative product performance evaluation, competitive benchmarking and end
user requirements analysis. David is a graduate of Boston University (BSBA).


Today’s Agenda

Market Definition & Segmentation
Enterprise Mobility Market Development & Application Opportunity
Market Drivers – Key Device Requirements
Market Drivers – Key Application Requirements
Mobile Application Development & Distribution Trends
Question & Answers


The Evolution of Socialization & Impact
on Enterprise Mobility

1990 2000 2010+
Personal Collective
Productivity Knowledge Distribution
Intelligence

• Custom designed applications • Email attachments, documents • Mobile deployment of enterprise
on purpose-built devices and personal repositories and social software
• Silo approach to solution • One-way knowledge distribution • Distributed learning and
development • Team-based computing collaboration
• Personal computing


Generational Shift may Drive Change to Commercial
Sector Computing and Communication Requirements

Population by Age Segment • Gen Y/Millennial generation has yet to
240 (in millions) make their full impact on the commercial
sector workforce and is just beginning to
enter this workforce
200
• However, by 2020, the majority of the
100 commercial sector workforce is expected to
160 be made up by Gen Y/Millennial Generation
workers
• The current situation is more reflective of an
120 aging workforce as the Gen X workers
begin to replace the Baby Boomer
44
generation – the issue being the smaller
80 size of the Gen X population
• A corollary to the aging/shrinking workforce
and early retirement options is leadership
40 78 crisis
• One key difference is that Gen X typically
utilizes technology/Internet as a means of
0
escape whereby Gen Y uses technology as
United States a social tool
BABY BOOMERS GENERATION X GENERATION Y
(born 1946–64) (born 1965–77) (born 1978–2004)

Mobile & Wireless Solution Requirements Will
Differ by Worker Type
Mobile US Worker Preferred Technical Target
Worker Population Device Requirements Applications
• Mobile browser • Wireless Email
 Road Warriors and • 3G+ GPS • Dashboards
Executives 11.5M • Push email • BI/CI
(Knowledge • Image capture • Mobile CRM
• Device management • Approvals
Workers) • 3rd party apps • Expense Reporting
• Security support • Workflow Management

• Push email • Wireless email
 Mobile Office • Active sync • Time & attendance
Professional 12.6M • Application partitioning • Approvals
(Corridor warrior) • WiFi • Workflow management

• DECT functionality • Wireless email
 Campus Mobile • WiFi • Time & attendance
Worker 16.8M • 3rd party apps • Approvals
• Image capture • Workflow management

• Mobile browser • Time & attendance
 Field Mobile • 3G+ GPS • Dispatching
Worker • Image capture • Workflow management
14.3M • Device management • Vertical applications
(Task/Line • 3rd Party Apps
Worker) • Durability


Enterprises are Extending Anytime, Anywhere
Access to Horizontal Apps & Vertical Solutions

Horizontal Enterprise Solutions
Healthcare Consumer Transpo Public Oil & Gas Insurance
& Industrial Sector

Mobile HR Services
Mobile Workforce Management
Mobile Enterprise Asset Management
Mobile Fieldforce Management
Mobile Salesforce Management
Warehouse Distribution and Logistics

Vertical Market Applications

Consumer &
Healthcare Transportation Insurance Public Sector Oil & Gas
Industrial
• Electronic health • Direct store delivery • Pick-up/Delivery • Claims management • Homeland security • Dispatching
records • Asset management • Telematics • Evidence • Emergency services • Maintenance/repair
• Patient care • Inventory • Dispatching management • Evidence • Asset management
• Service management management • Loss adjusters Management


Enterprise Oriented Development Activities
Data capture applications aimed at asset tracking and the broad ERP category lead

Enterprise Oriented Development Activities • Data capture applications aimed at asset tracking
(Overall) and the increasingly broad ERP category are the
top enterprise applications areas being
Business Intelligence/Analytics 28% 34% 38%
developed.
 Enterprise Asset Management (EAM) mobile applications
Asset Management 48% 13% 39% are vital for large enterprises in heavy-asset industries
where operations and maintenance personnel are
dispersed.
Enterprise Resource Planning 38% 22% 40%
 ERP is an extremely broad application category, and
Quality Control & Quality Assurance 24% 31% 44%
has expanded from the coordination of manufacturing
processes to the integration of enterprise-wide backend
processes – mobilizing these elements is occurring rapidly
Dispatch Management/Scheduling 20% 34% 46%
and will be hastened by the marriage of Sybase on SAP.

Workforce Management
 Mobile BI/Analytics applications have be percolating as
32% 19% 49%
of late with several new notable mobile entrants (most
notably Transpara, Mellmo (Roambi), and QlikView –
Surveillance/Inspection 24% 10% 67%
established players such as IBM/Cognos,
SAP/BusinessObjects, and Oracle have had BI
Security Management 12% 16% 71% applications available on Smartphone platforms for
some time now.
Ticketing/Citations 6% 22% 71%

Command & Control/Comm./Mission
13% 15% 72%
Planning (Gov't)

Crime Scene Imaging/Investigation 6% 14% 80%

Have already/currently dev. Planning No Plans


Organizations Are Moving Beyond Email
to Enterprise Applications on Smartphones

Wireless email

Personalized contacts

Content/employee portal

SMS alerts

IM

Inventory management

Field service managament

Sales force management

Customer interation
management

Logistics management

0% 20% 40% 60% 80% 100%
Fully deployed Rolling out or partial deployment Evaluating or piloting No plans Don't know

10 – 2010 VDC Research Group, Inc.

Mobile Device Adoption Requirements
Common themes in battery life and cost of ownership…new/renewed focus on processing capability

Mobile Device Selection Criteria – Key Requirements

Battery life 42.8%
Broadband wireless functionality 37.2%
Price 32.4%
Total cost of ownership 29.7%
Device weight and ergonomics 22.8%
Processor speed 21.1%
Operating system 20.0%
Level of ruggedisation 18.6%
Integrated GPS/ Location awareness 12.4%
Integrated voice AND data capability 11.0%
Ability to print in the field 11.0%
High local data storage capacity 9.7%
Display daylight visability 9.0%
Touchscreen display 6.2% Source: VDC Research End User Survey
n: 487 (Fielded June/July, 2010)
Integrated RFID interrogator 6.2%


Mobile Device Requirements
More sophisticated I/O requirements emerging

Primary I/O with Most Recent Device • Higher degree of multi-mode data capture
Deployment requirements permeating enterprises
• Imaging is rapidly becoming a critical agility-
Touchscreen/Multi-touch
enabling tool in a number of horizontal
26.8%
applications and vertical markets

Bar Code Scanner/Imager 20.5%

Smartcard Reader/NFC 10.2%

Pen/Stylus 9.4%

VoIP 6.3%

RFID Interrogator 5.5%

Mag Stripe Reader 5.5%

Speech Recognition 4.7%

Other 6.3%


Mobile Form Factor Requirements
Next generation form factors in greater demand

Leading Mobile Form Factors in
Use/Under Evaluation

25.1%
Standard Notebooks
15.7%

23.4%
Smartphones
25.5% Organizations
increasingly evaluating
22.8% emerging form factors
Handheld / PDAs
21.0%
to support their mobility
requirements
11.5%
Vehicle-Mounted Devices
7.4%

7.4%
Slate Tablet
15.4%

3.1% Current
Convertible Notebook
6.1%
Planned Source: VDC Research End User Survey
n: 487 (Fielded June/July, 2010)


Next Generation Form Factor Adoption
Substantial interest in iPad and other slate tablet solutions

Adoption/Evaluation of iPad for Enterprise • Much of the groundwork developing
Mobility Applications support frameworks for the iPad
enterprise have been done with the
iPhone over past two years
Yes, have evaluated iPad and
decided to deploy
13.6% • Approximately 500 of the 11,000 plus
apps built specifically for the iPad (to-
date) are for business purposes
• Adoption occurring across a variety
Yes, plan to evaluate iPad 30.0% of sectors and application
environments, including:
 Hospitality (Check-in/out)
 Field Sales (Mercedes Benz Financial; Bausch
& Lomb)
Yes, have evaluated iPad and
8.6%  Healthcare (X-ray/CT Scan reviews)
decided NOT to deploy
 Financial/ Legal Services
• However, some critical issues remain:
 Application distribution through
iTunes/AppStore
No plans to evaluate or deploy
47.9%  Lack of ability to image an iPad
iPad
 Carrier billing for the 3G version


Individual Liable Support Models
Some embracing of individual liable support models in core enterprise mobility markets

Enterprise Mobility Application • Level of support for employee liable devices will
vary:
Design/Deployment Approach
 Full support (technical support; break-fix; unlimited
network access; etc.): 35.5%
Company purchased only
 Limited support (email integration; calendar synch; etc.):
Both company and employee purchased: Approved list 24.2%

Both company and employee purchased: Any device
 No support: 40.3%
• Although overall Smartphone purchase decisions
Employee purchased only: any device remain a centralized function or decision within
corporations, the degree to which personal
1.4%
devices enter the enterprise – and are supported
by the enterprise – is driving change to this
12.1% process.
• This shift from corporate to individual liable
solutions continues, however, potential risks
surrounding security could reverse or slow this
17.1%
trend
 New hybrid model emerging whereby all devices are CL,
however, individuals will have to what portion of expense
69.4% is personal and what portion is for business use


Important Selection Criteria When Evaluating
Mobile Applications
No surprise that cost leads in an uncertain economic environment …

Important Selection Criteria • Cost will always be a primary factor in the decision
When Evaluating Mobile Applications: making process around any large technology investment –
(Overall) while mobile solutions aimed at enterprise environments
Overall cost (license; maintenance;
are increasing, vendors will still need to demonstrate
deployment)
66% important integration, security, and manageability
features to continue to gain ground.
User friendliness 45%  Companies are continuing to run lean and IT budgets have
not opened up.
Integration with existing enterprise
applications 45%  Mobility has become more strategic, and is increasingly on the
radar of C-suite executives as a transformative technology.
Ability to customize 40%  SaaS based solutions will help the mobile applications market
thrive regardless of the tough economic environment due to
lower up front costs and rapid ROI potential.
Ability to scale functionality 29%

Level of pre/post implementation
support 24%

Ability to scale users 21%

Trusted partner recommendation 15%

Hosted options 13%

Vertical market design 2%

0% 25% 50% 75%

Multiple response question


End Users Generally Satisfied with Mobile Application
Pricing…However, Pricing Benchmarks Have Yet
to Be Established
Evaluation of Enterprise Mobile • Perceived value of existing mobile workforce
Application Value applications varies greatly.
• Lack of established or consistent pricing
policies for mobile applications remains a
Their value exceeds their price
key issue.
• Price points of more sophisticated mobile
workflow applications reach $10-$15 per user
They are priced just right
per month or more. However, price remains a
critical concern for broader adoption of
mobile solutions.
They are priced too high by 10%
• Pricing for more complex workflow
applications that require more backend
integration add an additional professional
They are priced too high by 25% service burden. These take on a more typical
enterprise SW pricing model including
license and maintenance costs.
They are priced too high by over
25%

Not sure

0% 10% 20% 30% 40%


Native vs. Cross Platform Development
Each approaches has unique advantages and disadvantages…

By using cross platform development tools, developers can effectively build a single mobile application to
work across multiple OSes. Currently many vendors are coming to market with solutions – most of these
solutions do not support all of the primary OS / platforms and only a subset. In addition, there are constraints
to be considered in selecting a native platform compared to the cross platform.

The table below shows the advantages and disadvantages of using native platform versus cross platform
environments:

Native Cross Platform

• Library update
• Direct technical support
• Open Source solution
• Code size
• One programming language family for all
Advantages • Stable
• Common UI design can be implemented for multiple OSes
• App store and device portal solution
• Rapid development
• Existing UI standard for mobile users
• Better UI design result, can take full advantage of display

• Library update
• Technical support somewhat limited (must rely on dev. community)
• Not all have Open Source solution
• Library is limited
• Different programming languages
Disadvantages • Code size
• Different UI design patterns
• Potentially unstable
• Lengthy development time
• Not suitable to adopt one UI guideline for all
• UI design depends on the platform and is somewhat limited

Source: VDC Research


Next Generation Application Deployment
Level of investment in SaaS-based enterprise mobility solutions reaching scale

• A key issue for organizations today is the lack of internal
Enterprise Mobility Application resources to support mobile solutions.
Design/Deployment Approach  End users are demanding increased access to a more
comprehensive suite of enterprise applications on a
broader collection of mobile devices.
SaaS/Hosted solution  However, IT organizations do not have the resources
capable of supporting these requirements. As a result
Application resides behind corporate firewall demand for third party managed mobile services is
expected to ramp.
Other • Many operators and evaluators of enterprise mobility
5.7% solutions have significantly downsized their IT
departments over the past 18 months. As a result, the
demand for outsourced services and hosted application
business models is heightened.
 Moreover, organizations are increasingly consolidating
40.6% their mobile and wireless investment decisions within a
broader IT function and are moving away from dedicated
mobile and wireless teams. This transition is only
elevating the need for outsourced services as
organizations frequently lack the dedicated expertise they
53.7% used to have in this function.

• As organizations consolidate their approach to mobile
and wireless services, they are consolidating their
service contracts as part of their broader IT managed
service contracts.


Mobile Software Developers & The Channel

• The app store model is in turmoil and evolving – but thriving.
 There exists a plethora of application store participants from a broad range of vendors including hardware
OEMs, carriers, and mobile specialists.
 Apple remains the pace setter, and continues reap solid revenues quarter after quarter from its App Store.
 Entities such as the Wholesale Applications Community (or WAC) an open global alliance formed from the world’s
leading telecoms operators will help with the necessary evolution
 Emerging new business model from vendors such as GetJar, Apprupt, and Ondeego present important signals and point
to the future direction of the evolution of the increasing complex app store space – while the proliferation of app stores
seems to be reaching its climax, the likely next phase will be rapid consolidation – however, there is also opportunities
for verticalization at the same time.
 Carriers are cultivating developer communities and provide app stores to support of one or more mobile platforms
used on the handsets they sell – examples included V Cast (Verizon), AT&T MEdia Mall, and Vodafone’s 360.
 Enterprise mobility vendors are incorporating app store functionality into their offerings giving their customers the
ability to maintain their own internal self-service app provisioning capability.

• The key issues with most App Store current enterprise portal distribution platform that
vendors will need to address include:
 Lack of any means to enforce/guarantee employees install the application (push-based distribution of the application).
 Lack of control over where the application goes. Once the application and provisioning profile are out, they can be
installed on any device.
 The ability to push custom mobile applications through an enterprise portal is expected to represent a viable distribution
strategy for large and mid-sized organizations.


Mobile App Distribution:
Balancing Scale / Reach & Target Audiences

• More market-oriented carriers and vendors understand that successfully selling premium mobile
solutions into the workplace will have several attractive benefits.
 Compared to the consumer segment, the enterprise segment offers less price elasticity, which eases the pressures on
vendors to discount prices.
 Mobile billing and near field communications will be a signification driver for new mobile applications for carries.

• Premium mobile enterprise applications can present a win-win scenario, enabling vendors and
channels to create more mobile connections and drive up data ARPU.
 Business customers leverage and optimize their previous investment in critical back office systems by extending this functionality
into the field and onto the mobile worker's handset. However, few best practices surrounding pricing and distribution for enterprise
mobile software exist today with significant variance occurring on most mobile development projects being commissioned.

• Apple’s App Store is currently supporting more mobile applications (225K+) than any other
in the market today.
 However, the majority of these applications target consumers - enterprises making mobile solutions available through the App
Store have had difficulty gaining traction.
 Historically, the challenge with the app stores has been the reaching the enterprise market with a viable interface for enterprise
applications (not only is navigating for the appropriate applications a challenge, but the interface provides a company with little
control) – this is changing rapidly with the incorporation of many of these elements within MDM vendors application stacks,
and recently released offerings from mobile specialists such as Ondeego – RhoMobile is moving in this direction as well.

• Different application store models may be circumvented by cloud based solutions and hosted
applications, where applications will be available directly through mobile websites, and not
necessarily through proprietary company owned application stores.
 Today, these models are beginning to gain acceptance, whereby mobile devices with access to the internet
can easily either download their mobile apps with access to proprietary content or use the mobile Internet itself.


Mobile Channels Offer Varied Opportunities
& Challenges

Various distribution channels are emerging for mobile applications, each with their own benefits and
challenges. Key capabilities, issues and consideration for each channel are summarized below:

Device Vendor
Category Carrier Distribution Mobile Web ISV / Systems Integrator
Mobile App Stores

• Permission required by • Open to any who sign
Openness • Completely open • Partner development
carrier agreement

• Substantial (including
• Limited cost (~$100-$200) to
Entry cost and resources to manage
introduce applications • None • NA
Revenue Split relationship)
• 70/30 revenue split
• 60/40 revenue split

• No consistent options • Strong micropayment options
• Lack of strong or consistent • Professional service contracts
Payment Options • Carriers beginning to • Limited options for enterprise
solution with partners
integrate with billing wide deployments

Enterprise
• Improving capabilities • Poor • Improving • Strong
Integration
• Improving - however, need • Limited to uneven. Large volume
• Uneven – support by
Discoverability separation between consumer • Uneven of small specialized solution
different business units
and enterprise providers.

Value Chain
• Low, but moving up • High / Broad • Low / Variable • Moderate
Impact
• Improving strength of • Strong for less sophisticated • Long term viability. However,
• Primary model for more
Considerations carrier professional service point solutions with limited serious limitations for current
sophisticated native applications
teams integration requirements enterprise requirements.

Source: VDC Research


VDC Research, Mobile & Wireless Practice

• VDC Research was founded in 1971.
 Continuous, profitable operation since.
 Staff of about 30 located in Boston, Chicago, Los Angeles.
 Focus on a number of different technology areas including: Mobile & Wireless, Embedded
Hardware & Systems, Embedded Software & Tools, Industrial Automation & Control,
AutoID & Transaction Automation, Power Management and a number of niche IT markets.

• Over 14 years covering the Mobile & Wireless Market.
• Syndicated & Custom engagements with clients in the Embedded Software & Tools Market.
• Practice Team Members
 David Krebs, Director
 Eric Klein, Senior Analyst
 Balca Korkut, Analyst


Q&A Session

Thank You for Attending this VDC Webcast.
For more information about VDC Research coverage of the global markets
for the enterprise & government mobility markets – please contact:
David Krebs – Director
davidk@vdcresearch.com | 508.653.9000 x136
Gerrald Smith – Senior Account Executive
gsmith@vdcresearch.com | 508.653.9000 x113


Driving Enterprise Mobility Solutions Demand: Understanding End User Requirements & Preferences

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Driving Enterprise Mobility Solutions Demand: Understanding End User Requirements & Preferences

Ähnlich wie Driving Enterprise Mobility Solutions Demand: Understanding End User Requirements & Preferences (20)

Mehr von VDC Research Group

Mehr von VDC Research Group (12)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Driving Enterprise Mobility Solutions Demand: Understanding End User Requirements & Preferences