ENTERPRISE MOBILITYAPPLICATIONS FOR THE SMB

The Growth of Mobi le CRM

A Frost & Sullivan White Paper

Prepared for IBM

TABLE OF CONTENTS

Executive Summary 3

Key Market Trends 5

The SMB Opportunity 9

Revenue Analysis 10

Key Drivers for Mobile CRM & FSM 12

Value Proposition of the Mobile CRM Application to SMBs 14

Strategic Recommendations 16

TABLE OF CONTENTS

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EXECUTIVE SUMMARY

Overview of Enterprise Mobility Applications

The next generation mobile enterprise opportunity involves the extension of a company’score data and applications to mobile executives, sales personnel and field technicians viaInternet-enabled smart phones, laptops, and PDAs. High levels of business interest in awide range of mobile data solutions, coupled with advancements in network technologies,have cultivated the development of wireless enterprise applications and created amultifaceted assortment of players, service concepts, and business models.

In this paper, Frost & Sullivan focuses on the opportunity for mobile enterprise solutions,as well as the particular applications that the market is demanding. The capability tomobilize and/or add functionality to an enterprise’s mission-critical application portfolio,with limited risk and reasonable costs is now a feasible corporate strategy to increaseefficiency, cut operating costs, and maximize return on investment. Success will rely onthe ability to customize products and services while maintaining flexible, openarchitectures that can quickly adjust to the rapidly changing technologies and industrychallenges. Flexible application platforms, superior customer service, and customized,coherent pricing models are anticipated to emerge as the true differentiators, ascoverage, reliability and functionality becomes increasingly commoditized.

Frost & Sullivan believes that is essential to present solutions to businesses, not simplytechnology. To build solutions that businesses value, it will be critical for systemsintegrators (SIs) and ISVs to work with customers to develop the business case for theirmobile deployments, and then design, implement, and support the solution. Success will bemeasured by the ability to seamlessly link the back office to mobile devices so executives,sales personnel, and field force employees have real-time access to customized, mission-critical data and applications.

Frost & Sullivan has identified the following customer segments that are likely to driveadoption of wireless data solutions:

Mobile Executives: The mobile professional segment is largely composed of top executives,directors, and mid-level managers who travel frequently. This segment is particularly aptto adopt Mobile Office applications, such as remote access to corporate intranets,messaging, and PIM tools. Increasingly, the Mobile Professional segment is demandingmore company-specific, specialized solutions that involve higher-volume data levels.

Mobile Sales Professionals: Remote sales employees have emerged as a driving force formobile CRM and SFA applications. Mobile sales personnel are increasingly demanding real-time access to mobile CRM software to manage large amounts of company, customer,product, and competitor information while away from the desk. Enterprises are

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recognizing that for mobile sales professionals to effectively address customer needs, it iscritical that the remote employee has real-time access to customer records andassociated information. Frost & Sullivan expects industries such as Healthcare andFinancial Services to drive the demand for mobile CRM software.

Field Service Employees: Field service employees rely on work applications and devices tocomplete their job functions. These employees are not typically tied to a desktop and usea variety of vertical devices. Large companies such as FedEx have relied on wireless datasolutions to stay in constant contact with dispatched mobile field service employees andmaintain real-time status on field activities. Field service employees operate in a varietyof industries often performing tasks such as service, repair, and delivery. The proliferationof devices and applications designed for this segment has fueled significant growth forwireless data services.

For solution providers to effectively serve these customer segments, they mustunderstand the key issues and needs unique to each segment, and market offeringsaccordingly.

Mobile Enterprise Market: Market Segmentation

Definition

Mobile CRM/ Sales Force Automation (SFA)Mobile CRM involves the extension of corporate CRM/SFA systems to mobile devices.This often allows mobile field sales personnel to access product information, pricing,inventory status, and customer information on mobile devices enabling users to perform

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Mobile Enterprise Market

Mobile Office Applications Market Mobile CRM / SFA Applications Market

Wireless FSM Applications Market

Mobile SFA Applications Market

Other Mobile CRM Applications Market

Wireless SFA Market

Offline PDA/Applications

SFA Market

Laptop and Tablet PC

SFA Market

Source: Frost & Sullivan

Key:CRM – customer relationship management SFA – sales force automation FSM – field service management PDA – personal digital assistant

contact management, calendar entry, opportunity analysis, and order managementfunctions while away from their office.

Mobile Field Service Management (FSM)This involves extending relevant components of FSM to a mobile device used by theservice technician to deliver field service to the customer. This typically entailsbidirectional interaction with customer support, scheduling and dispatch, service orderand contracts management, service parts management, and possibly other components ofthe FSM application such as knowledge management.

KEY MARKET TRENDS

Mobile CRM

The mobile CRM industry is characterized by high performance pressure on mobile salesand service professionals. Companies are increasingly looking at avenues to equip theirmobile workforce with state-of-the-art technology to enhance their productivity,efficiency, and effectiveness on the field. Mobile CRM solutions are providing significantimprovements to the overall performance of the mobile workforce. Furthermore, theconnectivity that mobile solutions provide across the value chain of a company, includingpartners and resellers in different regions presents a fine value proposition forinvestment. Adoption of mobile CRM solutions in the large enterprise segment has been akey driver for growth in this market. However, the small and medium enterprises arelikely to increase investment in these solutions in the near future.

The Emerging Breed of SMB Mobile Applications

With more and more SMBs adopting mobility in their organization, this segment willassist in providing information on how the mobile CRM applications are evolving.

Mobile CRM

Emergence of Mobile Applications beyond EmailThe mobile CRM industry has traditionally been characterized by the considerably highusage of e-mail applications by mobile users. There is a marked shift in this trend with theemergence of new, broad-based applications beyond tradition e-mail. The increasingdemand for more applications in a mobile environment is helping SMBs provide theirmobile workforce with real-time collaboration and connectivity frameworks. This providesa platform to bring about greater efficiency in mobile users.

Integration with Back-office Functionality Gains TractionMobile SFA solutions are being increasingly equipped with functionality to integrate keycustomer details, customer requests, order queries, and other real-time, on-site

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functionality into back-office applications. This creates the platform for excellent, real-time interaction and update with back-office systems and provides the mobile salesprofessional with the requisite information while handling customers at various locations.

Expansion in Memory Capabilities in Mobile Devices Creates Room for RobustApplication DevelopmentMobile devices have so far provided limited memory space to end users. This in turncreated limits on the number of applications that the devices could support. Increase inmemory capacity in mobile devices created avenues to support a wider range ofapplications, and the framework to support usage by multiple users.

Mobile FSM

Greater Integration of People and Parts Create a Better Framework for TicketResolution.Mobile FSM solutions in the past have been affected by lack of strong integrationcapabilities with back office systems for faster ticket resolutions. The increasingintegration of various applications in a converged environment that allows access toinformation across device types is likely to lead to increased investments from SMBs inmobile FSM solutions.

Growth of On-demand Solutions Increases Real-time Mobility in Field Services.With the CRM industry aggressively promoting the on-demand model, mobile field serviceis certainly reaping the benefits of this market movement. Greater connectivity, morereal-time information, better access to information, and growth in Wi-Fi spots areincreasingly providing scope for better ticket resolution and improved quality of service

Productivity of field service professionals are subject to the optimal use of timeand information.Wireless field service applications such as workforce optimisation, portal tools, timesheetmanagement, project/job management, asset monitoring, CRM functionality are used tocapture progress on service requests/problem tickets, configure orders and capture salesamong others, offer competitive advantage. In the interest of providing high levels ofcustomer service in a highly competitive environment, SMBs are realizing the necessity oftracking these critical workflows.

Analysis of the Mobile CRM Opportunity

A New Outlook to Mobile CRMMid-market companies are looking beyond their traditional CRM solutions and areincorporating workflows, while extended them into their mobile solutions. Incorporatingsales processes and functionality into a mobile environment has given the mobile CRMmarket a huge fillip during the year. Mobile sales professionals are therefore providedwith a solution that is customized to enable higher productivity. Other elements such as

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speed of connectivity, ability to push data back and forth across databases, real-timeconnectivity with back-office applications, and integration of the mobile sales cycle intothe DNA of sales operations has increased traction in this market.

Impact of Market ConsolidationThe increasing focus on inorganic growth is one of the characteristic features of themobile CRM market. Several solution providers are seeking to acquire expertise in themobile environment through the inorganic growth model. Furthermore, with competitiveproduct and price differentiation being a key element of this market, the inorganic routeof growth offers a wide variety of options for the small and medium sized businesses tochoose from – which is now being recognized as a strong potential market segment.These factors are providing the thrust for the mergers and acquisitions in the mobileCRM market.

Price MovementsMost device manufacturers are competing to create greater mind space among businessusers. However, traditionally, the exorbitant price points of mobile devices have restrainedthe device manufacturers from penetrating the market. Changes in the price points ofvarious mobile devices lead to increased interest in investment for mobile solutionproviders and create avenues to explore a wider installed base. Furthermore, carriers,whose support is essential in the functioning of mobile solutions, are stable in theirtariffs. These two market operators that are an integral part of the mobile CRM solutionsspace are increasingly positioning their value in terms of greater affordability to SMBs.The growth of next-generation wireless networks in North America also increases goodconnectivity and accessibility for the mobile CRM professional.

Workflow Approach and Multiple FunctionalityThere has been a significant advancement in the ‘S’ curve with the adoption of the newbreed of mobile CRM applications. Integration of workflows into mobile solutions is oneof the trends in the mobile CRM space. Several SMBs are realizing the value in embeddingfunctionality that both enables and empowers sales professionals- including salesmanagement and field sales forces - in converting a high number of leads into tangiblebusiness opportunities. This also helps the customers in adapting quickly to the mobiletechnology. The new breed of CRM applications also interact wirelessly with otherenterprise mobility applications such as Enterprise Asset Management (EAM) and SupplyChain Management (SCM). Furthermore, the inclusion of functionality beyond basic e-mailfunctionality on mobile devices has given the mobile SFA industry a huge fillip during theyear. These new functionalities are creating scope for sales professionals to use databasesand live links to deliver better solutions to their customers in a mobile environment.Speed of connectivity, and increase in the memory spaces of mobile devices alsocontribute significantly to enhancing user productivity, efficiency, and effectiveness fromthe mobile sales function.

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Enable the Field Professionals Including Mobile Sales Force Certain functions and roles need the professional to be away from the campus. Forinstance, a sales force need to be customer facing, as do field service professionals in theutility vertical. Large portions of logistics need connectivity on the move and access toinformation while being away from campus.

Analysis of the Mobile FSM Opportunity

The North American mobile FSM segment is one of the most exciting markets in theNorth American mobile CRM industry. Clear mandates of service resolution andequipping the mobile workforce with information on the field to resolve customer servicerequests continue to be the most important issues that need to be addressed in thismarket. The growing need for improving customer service for SMBs and the need forimmediate resolution of various service tickets are the basis for interest in mobile FSMsolutions.

Integration of People, Parts and WorkflowsThe integration of people and parts is continuously increasing the value proposition to bederived from mobile FSM solutions. This is contributing to optimization of the mobileworkforce, better location tracking, easier access to information in a mobile environment,and helps in the performance management of the mobile workforce. Furthermore, theelement of convergence is critical in offering real-time solutions to the customer in ahighly competitive environment. One of the significant shifts in the mobile FSM market isthe increasing emphasis on better utilization of mobile FSM solutions toward betterservice delivery. Earlier protocols of authority, approvals, and related workflow engines inservice resolution are increasingly embedded into mobile FSM solutions, thus providingthe customer with a quicker turnaround in service. This inclusion of workflows into themobile FSM solutions is also constantly helping organizations in improving their servicequality. The speed of ticket resolution as a metric of measurement can now be measuredin a methodical and more efficient manner.

Key Usage Areas of FSM SolutionsWhile the majority of the mobile FSM solutions are directed at addressing the needs ofinventory, spare parts, and service resolution, there is considerable interest in a new setof applications in the FSM space. Some of these usage areas include asset management,improvement in the maintenance of asset uptime, more prudent asset tracking includingemerging areas of GPS and internal tracking, effective repair systems, fallback options oninventory and so on. These new usage areas are helping vendors enhance the range ofaddressable issues with the customer. It is equally important to note that several of theseproducts are device-agnostic and operate on multiple operating environments.

Empower the Mobile Professional Studies indicate that professionals are increasingly less desk-bound. Mobility in-campus aswell as out-of-campus is a growing trend. These results are corroborated by studies of

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office space usage. A growing number of SMBs now have an increasing number of peopleworking on the field, or working from alternate working environments such as homeoffices. This trend is further supported by the technology that encourages mobileworkers. Currently, the majority of these rely on the use of the laptop that links back tothe back-end enterprise application. A mechanism to push and synchronize dataautomatically is a significant value addition.

Field Service Automation Solution (mobile tasks)

THE SMB OPPORTUNITY

While the end-user space was widespread across verticals, good traction was seen in theenterprise segment. Small and medium-sized enterprises are skeptical about mobile SFAdeployments, given the constraints on their IT budgets and limitations in usage. In therecent past, this phenomenon has had a snow-balling effect on the SMB segment, with anincreasing number of companies favorably looking at adding mobility to their ITstrategies. The momentum in the enterprise segment is expected to gradually penetratethe small and medium business segment in the future.

Recent innovations in the areas of collaboration and interaction have created strongtraction amongst mid-sized and large organizations. Businesses are facilitating a markettransition by tapping into the value of new technologies and services. The openness toreview the IT infrastructure has created significant opportunities for vendors to explore.

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Basic dispatch and scheduling

Data collection (signature, image, barcode)

Work order status

Basic back-office integration

Navigation (text)

Wireless forms

Richer dispatch

Richer integration options

Event confirmation/Customer notification

Audible navigation

Route optimization

Weather alerts

Integrated demand forecasting and analysis tools

Field Service Automation Solution (mobile tasks)

Basic Capabilities Additional Functions Premium

Today’s SMB Sector

Return on Investment (ROI)

While there is considerable increase in the interest levels and adoption of mobile CRM,end users are still skeptical about the return on investment from these products, from atotal cost of ownership standpoint. Issues of scalability, flexibility, scope to enhance thefunctionality to include emerging business models and customer requirements, extensionof service capability using the mobile CRM solution across partners in remote locations,service optimization, and such other parameters continue to be the key decision points inmobile CRM investment decisions for the SMBs. However, given the nature of thesesolutions, end users in the small and medium businesses are willing to adopt thesesolutions in a phased manner and have started to realize positive ROI as well. This is goodfor the solution providers as well, in terms of their learning and constant upgrades oftheir technology framework, based on the feedback from end users.

REVENUE ANALYSIS

Mobile CRM Revenue Forecasts

The North American mobile CRM revenues are expected to grow at a CAGR of 15.2percent to reach a size of $673.6 million in 2013. The mobile CRM market is segmentedinto three categories, namely, Wireless CRM, Laptop/Tablet PC CRM and Offline CRMsegment.

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Defining SMB: <500 employees• ~90% have fewer than 20 employees

Central business imperatives• Control and reduce expense

• Boost employee efficiency

• Increase market share and revenues

• Satisfy and retain customers

Purchase decision-maker• Smaller SMB: Owner or Operations Manager

• Larger SMB: IT Manager, Dept. Heads, Management Committee

Still-strong preference for traditional channels• Looking for: Expertise; Track Record of Service and

Support; Initial Costs

• Gravitate to channels that are local, that they know, that they trust

• Will lean hard on their channel

Top purchase criteria• Reliability• Ease of deployment• Ease of use• Scalability• Features and functions

Major barriers to sale• Lack of financial resources• Fears re: reliability• Lack of internal technical expertise• No clear compelling need

The ideal SMB offer• Clear, fast ROI• Hosted, monthly pricing• Simple entry point• Instant connectivity• Modular add-ons; Tiered packaging• Easy demo capability• Vertical-specific capabilities (if necessary)

The revenues forecasted for each of these segments are as follows:

• Wireless CRM is likely to be the fastest-growing segment. This segment is expected toreach a size of $442.8 million in 2013, at a CAGR of 23.7 percent.

• The laptop and tablet PC CRM segment is expected to grow at a CAGR of 7.7 percent,to reach a size of $210.8 million in 2013.

• The Of-line PDA segment is expected to experience a declining trend to $20.1 millionin 2013, at a negative CAGR of 3.1 percent.

Mobile CRM Market Growth

Mobile FSM Revenue Forecasts

The mobile field service management (FSM) packaged software segment of the NorthAmerican mobile CRM market is projected to grow at a CAGR of 18.9 percent to reach asize of $372.0 million in 2013.

Mobile FSM Market Growth

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Mobile CRM Revenue Forecast

0

200

400

600

800

Year

Reve

nues

($ M

n)

Revenues ($ Mn) 250.2 294.6 344.3 399.8 462.1 529.6 599.4 673.6

2006 2007 2008 2009 2010 2011 2012 2013

Mobile FSM Revenue Forecast

0

100

200

300

400

Years

Reve

nues

($ M

n)

Revenues 110.9 136.0 165.3 199.2 237.7 280.0 325.1 372.0

2006 2007 2008 2009 2010 2011 2012 2013

KEY DRIVERS FOR MOBILE CRM & FSM

Reduction in Prices of Mobile Devices Boosts Adoption of Mobile CRM SolutionsFor many organizations, especially in the mid-market category, the barrier to entry formobile solutions has been the high cost of mobile devices. The reduction in prices ofmobile devices over the recent past is likely to lead to an increase in adoption of mobileCRM solutions. This helps companies enable mobile capabilities at cost-effective rates andtranslate their mobile solutions to these devices toward achieving better productivity andefficiency from their mobile workforce.

Steady Tariff Plans from Carriers Creates Considerable Scope for Control inOperating Expenses for Mobile CRMWhile the reduction in device prices helped decrease expenditure on devices, theoperating expenditures on mobile solutions received a huge fillip with the standardizedtariff plans from various operators. This has helped companies in better estimating theircash flows and working capital needs for mobile CRM investments.

Expansion in the Number of Applications on Mobile Devices Provides GreaterBenefits to Mobile CRM UsersE-mail applications have been the most prevalent applications on mobile solutions. Theintroduction of various other applications into the mobile CRM framework significantlycontributed to a growth in adoption of these solutions. The wider choice of applicationsprovided users with greater functionality options and better choice of solutions inaddressing the various sales or service issues.

New Versions of High Powered Devices Creates Platforms for High Impact MobileCRM Usage, thus Driving AdoptionMobile device manufacturers are building more robust devices that support higherbandwidth, scale, and operational needs across platforms. The thrust on developing highimpact mobile devices that help in better decision-making for the mobile workforce hascontributed to greater interest in these solutions during the year.

Convergence of Mobile Devices in the CRM Environment Spawns Market GrowthDevice compatibility across platforms has created many a bottleneck in the effectivenessof mobile solutions. However, there has been a marked increase in the number ofsolutions that are device and platform agnostic and work across a varied choice ofdevices. This has particularly helped SMBs, as they can afford to have their existingdevices, without having to introduce a specific type of device or platform. This has led tosubstantial increase in the adoption of mobile solutions.

Higher Traction in the On-Demand CRM Market Has a Positive Impact on theUptake in Mobile CRMThe move by the CRM industry at large towards adoption on-demand solutions has had apositive influence on the mobile CRM industry. An increasing number of mobile

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applications are supported in the on-demand framework that creates significant room fora more efficient and productive mobile workforce.

Incorporation of Functional Workflows of Sales and Service into Mobile CRMSolutions Improves Ease-of-Use, thus Boosting AdoptionMobile CRM solutions are now incorporating workflows from sales and service into theapplications. With better application design, end users are benefiting from a more robust,function-driven application. This is creating considerable scope for buy-in from an end-user perspective.

Rising Competitiveness Creates Demand for Faster Decision-makingGlobalization in many cases has resulted in intensifying the competition. In the ‘flatworld’, competitiveness has increased manifold. The demands on decision making arestricter than before. With such high stakes, SMBs are exploring ways to improveprocesses, including decision making.

Changing Work Patterns Create a Natural Demand for Communication On-the-moveThere has been a gradual evolution of employee work patterns. One reason for suchchange is the advancement in technology, enabling alteration of working style. The effectsof advances in technology have definitely played a role in shaping the early adopterconditions. In addition, restricted supply of key skill sets in certain sectors, such as thecontact centre industry, has created an urgency to implement home-worker typesolutions. The twin base of field-service professionals and home workers has created asignificant market audience. The pressures of competition have forced organizations toimprove the operational efficiencies of their employees. Mobile applications increase thereach of the enterprise and help build the critical efficiency. This in itself is creating a shiftin work patterns.

Efficiency Gains through Increased Availability Helps Improve ProfitabilityWhile the core proposition of mobility in businesses is increased availability, this alone isnot compelling for the decision makers of the buying organization. Solution providersneed to demonstrate utility through increased availability to gain mindshare. Themanufacturing sector has clearly demonstrated the value of mobile applications inimproving decision making on the shop floor. The FMCG companies have seen a markedefficiency by a factor of three in inventory management. Greater flexibility and timesavings in the SMB sector, with field service organizations, such as freight, logistics andon-site professional services, help them gain efficiency. SMBs need to create case studiesand success stories to demonstrate how critical applications deployed through mobiledevices can positively contribute to the balance sheets and overall competitiveness of theorganization.

Lower Operating Costs through Alternative Wireless Access Technologies IncreaseAttractiveness of Mobile Data SolutionsOne of the largest components of costs is the operational cost of access. Despite thepressure from competition and scrutiny of regulators, licensed operators with large

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geographical coverage continue to charge a premium for data services. This causes manyorganizations to re-think their mobile application strategy. Broadband access technologiessuch as WiMAX and WiFi – and the foray of compatible devices will boost the uptake ofmobility with SMBs.

Top Market Drivers for Mobile CRM/FSM

VALUE PROPOSITION OF THE MOBILE CRM APPLICATION TO SMBS

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MediumMediumLowLower operating costs through alternative wireless access technologies increase attractiveness of mobile data solutions

6

MediumHighHigh Expansion in the number of applications on mobile devices provides greater benefits to mobile CRM/FSM users, thus boostingmarket traction

5

HighHighHigh Downward revision in prices of mobile devices boosts adoption ofmobile CRM solutions

1

7

4

3

2

Rank

HighHighHighEfficiency gains through increased availability help improve

profitability

HighHighHigh Rising competitiveness creates demand for faster decision-making

HighMediumMediumGrowing ecosystem of independent application developers

increases the utility of the platform

HighHighHighSteady tariff plans from carriers creates a good room for control in operating expenditure for mobile CRM/FSM and sustains interest

5-6 Years3-4 Years1-2 YearsDriver

Source: Frost & Sullivan

Mobile Enterprise Market: Market Drivers Ranked in Order of Impact

Cost Influence

Time Influence

Utilisation of

Back-end Applications

Opportunity Play

Availability

Source: Frost & Sullivan

AvailabilityThe key value proposition of any mobile application is ‘availability’. Availability of keyresources improves the overall business performance significantly. Mobile applicationsenable the availability of structured and relevant information, in addition providing to amechanism for resolving issues away from the desk. It improves efficiency and reduces thetotal cycle time. This has a net positive effect not only on business continuity, but also onthe confidence level of employees, both of which affect the top-line favorably.

Cost InfluenceIn a business where time is money, lost time is lost money. ‘Availability’ in such anenvironment helps address contingency situations with greater ease. This ultimately affectscost. For example, cost of inventory management can be reduced at every level by betterconnectivity between the decision-makers and the inventory. A tighter supply-chain canminimize dead times in a production cycle. A real example is the use of mobileapplications in a national railway organization. Analysis suggests that when the driverswere equipped with mobile applications for date-time entry and checking travel schedules,the operators’ efficiency in service continuity improved by 35 per cent.

Time InfluenceOne of the biggest advantages of mobile application is time savings. Higher levels ofavailability and access to applications empower personnel to perform their roles moreeffectively, thereby saving time. For instance, field personnel in the professional servicesindustry enjoy greater flexibility with their schedules, helping them reduce idle time. Salesforce, logistics personnel and the retail industry can also benefit from time efficiency bythe use of some of these applications.

Opportunity PlayTimely information is directly related to business opportunity. Reuter’s effort in creatingfinancial value through timely ticker news is relevant in the mobile enterprise world.While the core value proposition still revolves around increased availability, the increasedscope of business opportunity can be a competitive differentiator in many situations.

Utilization of Back-end ApplicationsCertain information-based systems are better utilized when they can be accessed onmobile devices. For instance, it is often found that the accuracy and timeliness of salesinformation in a mobile CRM application increases when field professionals make on-the-spot entries in the system. As the information available in the back-end improves, it helpsthe front-line professionals with better information the next time. In effect, this forms avirtuous cycle.

In addition to the above, mobile applications can improve several business functions suchas sales, marketing and decision making.

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STRATEGIC RECOMMENDATIONS

Adoption of Mobility Applications is Essential for Competitive Differentiation• Most mobile solution providers have been successful in targeting the established

markets and the top end of the value chain. Vendors are identifying the potentialopportunities available in SMB segment and map their business strategies to align withthe specific field service needs. There is a strong case for SMBs to adopt mobility in theirorganizations so as to create a competitive edge for themselves in an effort to increaseproductivity, provide higher levels of customer services and as a result, boost revenuepotential.

Usability is a Key Factor that Needs to be Accounted in System Design• One of the key factors in a successful deployment of mobile enterprise is its ‘ease of

use’. Frost & Sullivan recommends user organizations to involve their users in thesystem design process. It is important for system designers and architects to gainfeedback from several business users so that they understand the workflow, theprocesses and the fields that are important to the users.

• Ease-of-use, “pocketability”, and instant-on convenience offered by mobile CRM cansignificantly improve outside sales force usage rates. Exposure should be provided toonly that much of the system that the user will need in their daily use. Abstraction isvery essential. It is to be made sure that the users can access to at least 80 per cent oftheir requirements within three clicks. Optimising real-estate on the screen is crucial.Decision makers in the organization need to work closely with the solution providersto be able to drive this objective in the best manner.

Streamline Vendor-customer Management• SMB decision makers indicate their frustration with having to deal with multiple parties

to resolve issues. It is important to realise the intangible value of a simplified vendor-customer contract and relationship. RIM has been very effective in this space. It has notonly eliminated most, if not all, sources of channel conflict, but also ensured that thecustomers do not have to deal with multiple parties. IBM’s ecosystem of solutionvendors provide different skills that build and address critical business drivers across thevalue chain. Using this model, the user organization will rely on IBM for the completeset of infrastructure requirements of mobile enterprise solutions. IBM and IBM’sIndustry Solution Vendors (ISVs) deliver innovative business value and growth in themarket through internal operational efficiency and sharper focus on customers bytransforming business processes across the extended enterprise.

Cost Predictability is Essential to Grow Installed Base• Though surveys indicate substantial growth opportunity for business mobility, the

growth rate in reality has not been very high. Despite the presence of a ‘pull component’in the market, user organizations appear cautious. One of the key reasons for thisbehavior is the unpredictability of TCO.

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• For instance, when scaling a pilot deployment, it is seen that costs tend to risedisproportionately. This puts a lot of unplanned budgetary pressure on the userorganization and makes previously approved ROI models redundant.

• The industry participants need to develop pricing models to reduce the unpredictabilityto manageable levels. Indeed, there has been some noteworthy progress. For instance,several tier-1 carriers offer flat tariff for wireless e-mail/PIM subscribers within thecountry.

• It is to be understood that the market is not looking for a pre-packaged solution, butrather want to be able to manage and predict the costs associated.

Need to Transform the Solution from ‘Nice to Have’ to ‘Must Have’• One of the key objectives for the SMBs is to help organizations acknowledge the true

value of mobile enterprise applications. It is crucial for early adopters to ensure thatdeployments are not only successful, but also the value they get out of the deploymentjustifies the cost. SMBs should work closely with solution providers to build cutting edgesolutions that render them highly competitive. Unless competitive differentiation fromthe use of mobile enterprise applications is strong enough to spur a drive for technologyparity, vendors will have to strongly rely on push marketing rather than the pull effect.

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