enterprise mobility india

8/3/2019 Enterprise Mobility India

1/23

The Enterprise

Mobility Study

This report is solely for the use of Zinnov client and Zinnov personnel. No

part of it may be circulated, quoted, or reproduced for distribution outside

the client organization without prior written approval from Zinnov

Indian Market Analysis


2/23

Agenda

Scope & Definition of Enterprise Mobility

Key Enterprise Mobility Trends


3/23


4/23

Agenda

Scope & Definition of Enterprise Mobility

Key Enterprise Mobility Trends


5/23

Certain key themes have emerged in the enterprise mobility market in India

Key

Trends

Accelerated Growth ofAccelerated Growth of

Enterprise MobilityEnterprise Mobility

Ecosystem Play inEcosystem Play in

Market DevelopmentMarket Development

Concerns on SecurityConcerns on Security

and Integrationand Integration

Increased StartIncreased Start--upup

Activity in MobilityActivity in Mobility

Moving BeyondMoving Beyond

EmailEmail

Declining Costs &Declining Costs &

New OpportunitiesNew Opportunities

a

f

e

b

c

d


6/23

The Indian Enterprise mobility market has rapidly evolved over the last three years a

$38.6

$94.1

$244.0

$0

$50

$100

$150

$200

$250

$300

H12009 H12010 H12011

Enterprise Mobility Market (excluding

Devices) in India, USD Million

Average cost of smart

devices of USD 125-150

adds over an above theenterprise mobility market

36%

8%20%

16%

10%

10%

Apps & Customization Network & DataProf. Services/ SI Backend HW/ SWUsability & Testing Security & Compliance

Enterprise Mobility Market Split by

Service Lines


7/23

Unlike developed markets, developing countries are emerging as mobile first markets

Country

Mobile

Subscribers 3G Penetration Internet Users

Installed PC

Base

USA 350 Mn 47% 245 Mn 295 Mn

Germany 107 Mn 28% 66 Mn 55 Mn

Brazil 215 Mn 10% 76 Mn 42 Mn

Russia 221 Mn 5% 60 Mn 50 Mn

India 840 Mn 1% 100 Mn 25 Mn

China 896 Mn 6% 477 Mn 230 Mn

iPhone

74

Notebooks

180

iPod

360

Number of Days to Reach 1 Million Units Sold (Global)

iPad

28

a


8/23

Devices penetration in India has been rapidly increasing

There are about 840

Million active mobilesoperational in India

12.2 Million userbase of3G has been

garnered in India

There is an installed base

of25 Millioncomputers in India

Smart Phone market

share is about 15% inIndia

On an average of about15 Million mobilesubscribers are added

every month in India

The tablet PC market inIndia sells about 1

Lakh tablets perannum

The PC penetration inurban household has

reached 38%

The laptop market is

growing at a CAGR of

50%

One of the fastesttablet affinity worldwide

a


9/23

A combination of demand side trends accelerated the acceptance of mobility

experience in India

Industries leading the way in applying mobility services to their operations include banking,manufacturing, retail, hospitality and healthcare.Eg. HDFC, ICICI, Tata Chemicals, Godrej, Future

Group, Dr. Reddys Laboratory etc.

Early AdopterIndustries

Key Demand Trends in Enterprise Mobility

Automotive, logistics and consumer goods companies are increasingly using mobile supply chain

systems to streamline inventory management, replenish stock, track demand, and manage shelf

space and storage in an optimal manner.Eg. Lucas TVS, Future Groupd, Eureka Forbes, AFL

couriers

Emerging Industries

for EM

As more and more employees are getting exposed to next generation technologies and devices, the

enterprises are beginning to follow suite . Eg.SAP India is using more than 200 iPads,HeroHonda

gave iPad 2 to its top executives in India, Adobe provided HTC smartphones to all its employees etc.

IT Consumerization

as an Enabler

The wider acceptance of social media is combining with greater usage of smart phones and tablet

PCs to create the mobile office, where well-connected employees can work from virtually

anywhere. As a result, more employers are providing flexible work arrangements for employees,including flexible schedules and telecommuting options.Eg, IBM

Telecommuting and

Work fromAnywhere

The acceptance of social media as a business communication and collaboration tool has gained

momentum as more people access Facebook, Twitter, YouTube, and LinkedIn from their mobile

devices. Moreover, these social networking sites are being used as marketing walls by companies

like Flipkart, Healthkart, Yebhi, etc.

Social Media as a

Business Tool

a


10/23

The convergence of a variety of drivers is enabling the faster adoption of mobility

solutions in India

18%

18%

18%

32%

34%

46%

50%

0% 20% 40% 60%

Supply chain

management

New business

opportunities

Reducing operating cost

Staying competitive

Employee satisfaction

Productivity advantage

Better Customer

Service

Key Business Drivers

42%

58%

64%

67%

69%

0% 20% 40% 60% 80%

Reducingcommunication costs

Pull from end users

(customers or

employees)

Get more work time

out of employees

Collaboration amongst

employees

Push from top

management

Key Reasons for Mobility

*Analysis based on survey responses of 150 IT decision makers in India

a


11/23

As enterprise mobility moves from being a concept to reality, a variety of innovative

use cases are parallely emerginga

BFSI

Financial Inclusion Central Bank

Loan repayments HDFC

Collections Bajaj Auto Finance

Pharmaceuticals

Medical Reps Dr. Reddys Lab

Senior Management Novartis

Construction

Business Intelligence ISPAT

SCM Ultratech Cement

Chemicals

Unified Communication Tata

ERP/CRM Coromandel

Fertilizers

Automotive

Query & Alerts Lucas

Senior Management: Hero group

Hospitality & Real Estate

Customer Service 4 Seasons

Home Automation Lodha Grp.

Sales - Unitech

a b c

d e f

Transport & Logistics

Proof of Delivery AFL Couriers

Fleet Tracking Mag Logistics

Retail

Store Operations Pantaloons

Customer Service- Shoppers Stop

ERP/CRM ITC

Consumer Durables

Order Management Usha Int.

Dealer Sales Godrej

CRM - Voltas

d e f


12/23

A lot of entrepreneurial/ start-up activity is being observed in the mobility space in

India

Number of Digital Start-ups in India

Total Digital Start-ups = 750

Rapid growth of mobile/ smart devices penetration

in India has presented a lucrative opportunity

Many tech companies such as RIM, Qualcomm,

Intel etc. are looking to provide seed funding and

venture capital to start-ups working in the mobilityspace in India

National Capital Region (NCR), followed by

Bangalore are the hubs for mobility start-ups

Ojas ventures has funded companies such as

Tyfone in India

JiGrahak, a mobile commerce start-up recently

raised USD 10 million from Nexus India Capital

Marketplaces

39.7%

Mobility

23.6%

E-Commerce/

Shopping

20.8%

Media/ Ent.

6.4%

Others

9.3%

b


13/23

Increased acceptability of majority of the mobile platforms is a key motivation factor

for start ups

Mobility Platforms Supported by Indian Enterprises

b


27%

34%

98%

28%

13%

8%

26%

21%

4%

50%

29%

41%

63%

15%

11%

2%

10%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

iOS

Android

Blackberry

Windows Mobile

Symbian

Already supported To be supported in next 2 years Will never be supported Not Sure


14/23

The relative ease of development and conducive ecosystem are the key drivers for

start-up activity in this space

Apple Android Blackberry Java Symbian Windows

Easy

Medium

Hard

Ease of Development

Convergence of ecosystem including end users, telcos, device manufacturers, and developers is providing aconducive environment for mobility solutions

Increase in support forums available across platforms makes it convenient for the entrepreneurs/ developers

to build on top of these platforms

*Analysis based on survey responses of 200 developers/ start-ups/ entrepreneurs/ freelancers in the mobility space

b


15/23

Case studies of mobility startups b

Preludesys

AccelTree

Mobien Technologies

iPath Technologies

Preludesys is a 10 year old company with 3 year

experience in the Enterprise Mobility Front

Developed a flagship Enterprise Mobility Platform

named AnB and offer mobile application development

and customization services

Key customers include Yamaha, Zenstar, Epson etc.

Ranked as one of the fastest growing company based on

recognitions from Deloitte, Inc.500 consecutively for

the last 6 years

Mobientech was founded in 2006 and is focused on

providing Enterprise Mobility solutions

iNotify is their Mobile Application framework which

enables enterprises to deploy enterprise CRM and ERP

solutions to the mobile platform

Key customers include Bajaj, Dalmia Cement, ITC ltd.etc.

Deployment of iNotify in Nagarjuna Fertilisers for the

supply chain automation was chosen as one of the Top

50 IT implementations in 2007 by PC Quest

iPath Technologies is an 8 year old company providing

mobilization solutions for business and consumer

application Developed iAllWays Enterprise Mobilization

Platform to serve the Enterprise Mobility in India

They are currently working with a large SI for deploying

Enterprise Mobility Solutions and are doing a POC for

companies in FSI space

AccelTree software is a 8 year old company

Designed their own MEAP by investing 3 years in R&D.

The platform was specifically developed for the Indiamarket

Key customers : Not revealed

Have developed innovative mobile application

deployment offerings in the form of pay-by-use, own-

the-license and mobility-by-demand model


16/23

While e-mail is the most commonly used mobility applications, IT decision makers are

also starting to look at other application segmentsc

98%

35%

41%

49%

31%

24%

20%

12%

33%

25%

6%

14%

2%

41%

39%

25%

41%

45%

37%

47%

20%

25%

43%

39%

0%

24%

20%

25%

27%

31%

43%

41%

47%

49%

51%

47%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Corporate e-mail

Social Networking

Professional Instant Messenger

Sales Force Automation

Customer Relationship Management

Enterprise Resource Planning

Supply Chain Management

Unified Communication

Time Management/Billing

Field Service

Consumer Instant Messenger

Global Positioning System/Location Based Services

Deployed In the next 24 months Not sure

Applications Already in Use or to be Used in the Next 24 Months



17/23

As enterprise mobility matures among organizations, lot of internal departments will

look to mobilize in the next 24 months

84%

90%

78%

49%

73%

37%

37%

31%

31%

16%

10%

2%

4%

10%

10%

18%

6%

6%

24%

10%

2%

0%

4%

16%

4%

14%

12%

18%

10%

18%

4%

8%

14%

25%

14%

31%

45%

45%

35%

57%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

IT

Executive/Corporate Management

Sales

Operations/Facilities Management

Marketing

Finance

Field Service

Customer Service

HR

Retail

Already mobilized To be mobilized in the next 24 months No plans to mobilize Not sure

Mobility Status of Various Functions at Indian Enterprises


c


18/23

As companies optimize their mobility investments with innovative approaches, the

operating cost is expected to come down in the future (1/2)d

61%

34%

2% 2%

INR 0 to INR 2,500 INR 2,500 to INR 5,000

INR 5,000 to INR 10,000 INR 10,000 or more

Operating Spend of Enterprise

Mobility/ Person/ Year

10%

4%

2%

22%

22%

40%

0% 10% 20% 30% 40% 50%

Not Sure

Increase by more than

15%

Increase by 10-15%

Increase by 5-10%

Increase by 0-5%

Decrease

Change in Mobility Operating

Spend in the next 2 years



19/23

As companies optimize their mobility investments with innovative approaches, the

operating cost is expected to come down in the future (2/2)d

Tighter expensemanagementpolicies to controlmobility expenses

Cloud ready backendinfrastructure. Cloudapplication accessthrough mobile

Established

companies as well asstart-upsexperimenting withcapex models

Cost of mobilephones and tabletsdecreasing rapidly

ReducedHardwareCosts

ManagedServices &

Pay Per Use

Models

BusinessPolicies for

Mobility

Usage

Cloud BasedApplications


20/23

While enterprise mobility adoption is increasing, there are certain key challenges

enterprise are struggling with (1/2)

12%

8%

12%

12%

0%

4%

0%

0%

6%

12%

10%

6%

4%

4%

0%

2%

2%

6%

2%

8%

22%

8%

31%

14%

6%

24%

10%

2%

20%

24%

25%

20%

29%

31%

24%

28%

14%

50%

32%

29%

20%

33%

20%

31%

35%

24%

35%

34%

26%

22%

12%

25%

4%

8%

35%

18%

39%

8%

14%

4%

0% 25% 50% 75% 100%

Locate/track devices

Software license conformance

Device Life cycle Management

Remote helpdesk

Security policies

Support Cost

Data Breaches

Usability

Device downtime

Supporting work & personal devices

Very Low Low Medium High Very High Very Very High

Intensity of Issues with Enterprise Mobility

e


21/23

While enterprise mobility adoption is increasing, there are certain key challenges

enterprise are struggling with (2/2)e

The average salary per employee in India is relatively very less and it is difficult for enterprises to give

devices more that the salary of the individuals. Hence adoption is restrained to only senior level

Indian stakeholders are not very well informed about the advanced solutions being employed in other

emerging geographies. There is also a lack of successful Indian case studies being preached

Indian customers are found to be very demanding. The expectation is to get everything delivered on the

phone. Customers want out of the box (OOB) solutions

Most of the industries lack a standard supply chain. Also vernacular content is a huge challenge

Absence of key large player focus and lack of confidence with niche players is restraining large

enterprises to move to mobile applications for core business

Lack of business centric mobile applications as well as back end integration of applications is a challenge

and hence adoption is currently at the dashboard, reporting level

In case of full functionality applications, manageability is challenging. Security, compliance,

provisioning, wireless management, lifecycle management, asset management are a additional costs


22/23


23/23

These ecosystem stakeholders seem to be converging towards a few strategic bets with

respect to the enterprise mobility solutions in India

Hardware/ OEMs

Flux of low cost tablets with

touch screen UI

Aggressive enterprise pushby OEMs

enterprise mobility india

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