Altimeter Group webinar on October 18, 2011 with mobile analyst Chris Silva. Slides from "Three Paths To Mobile Strategy" webinar.

1. 1 Altimeter Group Webinar October 18, 2011 Chris Silva Industry Analyst, Mobile Getting To Mobile: 3 Paths For Mobile Strategy

2. Mobile Is Increasingly Users’ Preferred Computing Platform © 2011 Altimeter Group

3. 3 The cost, technology and utility of smartphones drives their majority among mobile phones. The average Android device owner spends 2x more time on apps than using the web.

4. 4 Barriers To Mobile Adoption Come Crashing Down $.08 Effective cost/MB Q1, 2011* $.14 Effectivecost/MB Q1, 2010* * Source: Nielsen ** Source: Gartner *** Source: Pyramid Research

5. 5 Barriers To Mobile Adoption Come Crashing Down $.08 Effective cost/MB Q1, 2011* $.14 Effectivecost/MB Q1, 2010* 1+GHz processor, dual core 512MHz processor, single core§ * Source: Nielsen ** Source: Gartner *** Source: Pyramid Research

6. 6 Barriers To Mobile Adoption Come Crashing Down $.08 Effective cost/MB Q1, 2011* $.14 Effectivecost/MB Q1, 2010* 1+GHz processor, dual core 512MHz processor, single core§ 172M Smartphone units sold, 2009** 1.5B Forecast smartphone sales, 2011*** * Source: Nielsen ** Source: Gartner *** Source: Pyramid Research

7. More capable devices, heavier usage 7 The only OS declining in bandwidth consumption is the one that’s discontinued

8. 8 Mobile interaction becomes deeper, more ingrained This was 37% in May, 2011, and below 30% in October, 2010

9. 9 People can’t buy smartphones fast enough iPhone 4s: 4M devices in its first weekend, bests Kinect as fastest selling device ever!

10. 10 People can’t buy smartphones fast enough

11. Holiday will be a big test for mobile strategy as device dependency increases 11 Almost half of holiday shoppers in 2011 will be looking for last minute stores and gifts via mobile, will you be there?

12. “Getting To Mobile” Isn’t A Strategy © 2011 Altimeter Group

13. Mobile Strategy Takes One Of Three Paths 13

14. Customer facing apps, look at the entire experience 14

15. 15

16. Enrich: Driving revenue through mobile transactions 16

17. Customer facing apps, look at the entire experience 17 Enrich

18. Enrichmentdone right, over 3M have paid with Starbucks mobile app 18 The mobile card program was tested in 2009, and found to be the fastest way for customers to pay. It’s available at 9000 stores. Customers purchase credit via PayPal or credit card.

19. Enrichment done wrong, playing up the limitations of mobile 19 Users must download all catalog content, a situation exacerbated when relying on a carrier network vs. wifi

20. Complexity of task increases complexity of rollout, deepens ROI 20 Taking data like credit card info from the field introduces more complexity and security requirements for the mobile device, how it is managed and how information is transacted.

21. Complexity and return mirror feature depth Complexity Return 21

23. Existing content

24. Non transactionalReturn 22

26. Heavily transactional

27. New contentComplexity Return 23

28. 24

29. Engage: Driving customer interaction via mobile interaction 25

30. Customer facing apps, look at the entire experience 26 Engage Engage

31. Engagement: North Face utility app Snow Report (and Trailhead) engage with its target 27 Snow Report users view weather and snow updates, as well as tweets from and about their favorite resorts.

32. 28

33. Enrich: Driving revenue through mobile transactions 29

34. 30 Mobile data access model Access: No local data Gather: Limited local data Create: Secure local data Data Collaborate: Full function

35. 31 Mobile Data Access Model: Access Access: No local data Enterprise Security Gather: Limited local data Create: Secure local data Network Access Compatible Platform Collaborate: Full function

36. 32 Mobile Data Access Model: Gather Access: No local data Gather: Limited local data VPN Create: Secure local data Database Storage GPS Collaborate: Full function

37. 33 Mobile Data Access Model: Create Access: No local data Gather: Limited local data Create: Secure local data Device Security Image/Video Collaborate: Full function

38. Access: No local data Gather: Limited local data Create: Secure local data 34 Mobile Data Access Model: Collaborate Desktop Access Personal Apps Collaborate: Full function

39. Taking communication and access to mobile is ready today Whether deploying new captial to add devices to the workplace or taking advantage of users’ devices, access is increasingly easier to solve 35

40. Sharing and communicating on mobile is the focus of many vertical app strategies 36 Epocrates provides “Continuing Medical Education” to healthcare professionals, who can compare answers with experts and community members.

41. Choose your goals, then your strategy © 2011 Altimeter Group

42. What are you seeking to accomplish? Reaching customers – are you looking to focus on transaction metrics or softer, engagement metrics? Who is the customer? Where are their needs not being met? Empowering internal users – what are the constituencies you seek to serve? Different groups will need differing features. Features and complexity will have a tight coupling. What is the endgame? 38

43. The “three e’s” are not mutually exclusive, but development resources are often scarce. Be inclusive in platform support, or draw a line to support x, and an alt strategy for all others. Convergence, what other programs can help? Customer-facing: loyalty, ecommerce, social Internal-facing:training, networking and communications Asset sharing and coordinated strategy and hybrid development are hallmarks of strong strategy. Choosing strategy 39

44. 40 3 Paths To Mobile Strategy, Which Are Yours?

45. 41 Upcoming research Santa’s Little Helpers: Mobile Retail Strategy For Holiday 2011 November, 2011 Interaction of Mobile and Social Spring, 2012 Entrust: Finding Partners For B2B Mobile Success January, 2012

46. 42 THANK YOU Chris Silva Industry Analyst, Mobile csilva@altimetergroup.com makemobilework.com Twitter: 802dotchris

47. 43 ABOUT US Altimeter Group is a research-based advisory firm that helps companies and industries leverage disruption to their advantage. Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.