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MOBILITY AT THE ENTERPRISE

Avant-garde companies are embracing mobile technologies to increase revenues, improve the productivity and responsiveness of their field workforce, and boost customer retention. Here are a few examples from the field to illustrate this trend:

MINACS INSIGHT

Broad consumer proliferation of smartphones like iPhone, Blackberry, Android and Windows Mobile devices is compelling IT departments to mobilize their business applications. CIOs are realizing that their current tactical and siloed implementations of mobile applications have to make way for strategic mobile platforms. Ones that support multiple devices, integrate with back end transactional systems to automate business processes and improve employee productivity, tighten integration with the supply chain as well as partner ecosystems, and enable customer acquisitions while building loyalty and retention.

However, the CIO and IT department are faced with new challenges as they navigate the uncharted waters of mobile solution deployments. They have to deal with issues like security of mobile devices, bandwidth limitations on carrier networks over which they have little control, delivering over-the-air updates reliably, providing support for multiple mobile devices and ensuring that those sitting outside their firewalls are consistently managed and controlled.

Texas based bank USAA now permits wireless check deposits. Customers can photograph both sides of the check using the iPhone's built-in camera and send the images for verification and deposit. This application further fortifies USAA's effort to help members access their accounts, on their terms, anytime, anywhere.

Leading retailers like Kroger's, Safeway and Unilever are experimenting with mobile discount coupons. Consumers can download these into their cell phones and redeem them during checkout.

Redemption rates are naturally higher for mobile coupons (10-12% as against 1-2% for paper coupons) because of their easy access.

Leading airlines like American Airlines, KLM, NWA and Delta are offering passengers the convenience of using their mobile phones as electronic boarding passes on select flight routes. The e-boarding pass incorporates passenger travel details on an industry standard bar code that is sent to the mobile. This is scanned prior to boarding at the departure lounge.

Pepsi Bottling Group rolled out a mobile field service application for maintenance technicians of vending machines and soda fountains. This yielded an annual savings of $7 million/ year with significant improvements in the technicians' productivity levels.

A leading beverage manufacturer mobilized its Siebel CRM field service application to streamline field service. Technicians receive work schedules and update the backend Siebel system directly from their mobile devices. Management has much better visibility into cleaning, installation and other services delivered by the company to thousands of pubs, restaurants and hotels selling its products.

KEY DRIVERS FOR ENTERPRISE MOBILITY

There are three key drivers promoting the adoption of mobility applications across enterprises:

MOBILITY MARKET TRENDS

70% of organizations are currently

Deploying at least one mobile application, with more than a third deploying multiple applications. (IDC)

Smartphones will account for a growing

share of total handset sales expanding from 16% in 2009 to 37% in 2014. This is an enormous opportunity for vendors and service providers around the globe particularly in emerging markets. (Pyramid Research)

By 2010, 50% of enterprises will have migrated away from tactical mobile applications silos (supporting single applications) to strategic platforms capable of supporting multiple applications, managing devices and securing data and transport. (Gartner)

The proliferation of smartphones and 3G networks:

Smartphones are the fastest growing segment of the handset market. Rapid adoption of devices like the iPhone Blackberry, Windows mobile, Nokia and the newer Android powered devices has created a new breed of consumers who use their mobile devices for both personal and business purposes. Rapid roll out of 3G and 4G networks ensure that the required bandwidth is available for data intensive applications.

Technologies ready for prime time:

Leading technology companies like IBM, Cisco, Microsoft, RIM and Sybase are rolling out mobile middleware infrastructure and mobile enterprise application platforms to accelerate deployment of mobile applications and address the manageability challenges of mobile devices.

Corporate IT becoming an enabler of business:

Traditionally, corporate IT functions focused on business maintenance. Today, owing to a change in mindsets they see themselves positioned as business enablers. Their focus is shifting to enhancing productivity and operational effectiveness of employees as well as leveraging innovative platforms like mobile technologies to acquire new customers and build competitive differentiation in the marketplace.

Enterprises need to take a strategic view of mobility and determine how it can help them enhance productivity, provide differentiated services and improve customer loyalty. There are multiple potential areas for mobile deployments within an enterprise:

APPLICATIONS

Analytics

CRM solutions

Mobile marketing

Mobile commerce, including payments

Workflow approvals

Real time data capture/ alerts

Requisitions.

Automating key business workflow can improve the productivity of information or knowledge workers at the enterprise. Processes like approvals and requisitions can be easily mobilized to reduce cycle time and ensure more timely response. Analytics is another area of opportunity. Operational metrics and KPI data can be made available in real time to decision makers as dashboards on the mobile devices for increased business agility.

Enterprises with a large mobile workforce should consider deploying a vertical line of business applications to improve productivity. Field technicians can have real time access to parts inventories. Their work orders and routing information can be directly delivered to the mobile devices. By mobilizing enterprise applications, the management will have incisive insights into supply chain and field support logistics. Mobile CRM solutions for the field sales force lead to shortened sales cycles, improved customer interaction, better opportunities and pipeline management.

Evaluate mobile marketing as a channel to reach out to new customers and increase existing customer loyalty. The mobile phone enables one-to-one communication with targeted customers. Marketers can solicit inputs about specific customer needs for targeted messaging. If primary demographics comprises of young, hip customers who are never without their cell phones, mobile SMS marketing may be an attractive channel to target them and ensure high conversion rates.

The mobile platform can also be used for building increased customer loyalty. Furniture retailer IKEA utilized monthly member exclusive SMS offers to draw customers. Campaigns averaged a high 5-10% coupon redemption rate. Customers with mobile coupons spent 50-150% more than customers without coupons.

Mobile commerce is another promising application reflecting strong momentum, especially in emerging markets. Evaluate opportunities for deploying mobile commerce applications for competitive differentiation. Many banks now offer mobile banking solutions. Mobile payments and remittances have gained rapid acceptance in Japan and many emerging markets around the world.

CHALLENGES FOR IT DEPARTMENTS

IT departments have done an excellent job of managing the IT infrastructure residing within the firewall. They are now confronted with an increasingly mobile workforce that needs to be supported remotely. However building and deploying mobile solutions is a new challenge for most IT organizations. CIOs need to take the lead role in defining a mobile platform strategy to support mobile initiatives for various lines of business. They need to worry about delivering enterprise class security and ensuring compliance while supporting multiple mobile devices. The multitude of operating platforms (iPhone, Android, Symbian and Windows Mobile, etc) add to the complexity of field deployments, e.g.:

Provisioning and software upgrades of mobile applications on the devices.

Remote enforcement of corporate IT policies including back-ups and application of patch and security updates.

Forced upgrade of virus protection and other security applications.

Assigning group membership and policies.

Encrypting data in the mobile device and the SD card.

Remote troubleshooting and diagnosis of mobile devices.

Disabling or remotely killing a lost or stolen mobile device to ensure corporate assets and IP are not compromised.

THE WAY FORWARD

Rapid proliferation of mobile devices around the world is driving a paradigm shift in the way people work and live. The increased bandwidth available on new 3G and 4G wireless networks coupled with the explosive growth in smartphone devices is going to drive demand for business mobile services. Employees expect to use their mobile devices for both personal and business purposes.

Enterprises need to look at mobility as a strategic platform to increase collaboration within the organization, enhance the productivity of its mobile workforce and improve customer service and retention. Mobile marketing can be an effective channel for targeting and acquiring new customers as well as increasing brand awareness and loyalty. However, as enterprises begin to mobilize their business applications, they need to pay careful attention to security and manageability aspects of their solutions. Mobile technologies provide an opportunity to transition to an intelligent mobile enterprise that is agile and context driven with analytical data.

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