the exploding, intriguing opportunity of mobile worker apps

The Exploding, Intriguing Opportunity of Mobile Worker Apps

How, When and Why Businesses are Arming Their Employees with Powerful Mobile Applications

Jeanine Sterling, Principal Analyst

Mobile and Wireless Communications

October 2, 2014

© 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of

Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

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Today’s Presenter

Sterling currently monitors and analyzes trends, technologies, and market

dynamics in the North American mobile and wireless sector. Mobile enterprise

software is a particular area of focus, including the following solution categories for

smartphones, tablets and/or ruggedized devices: Mobile Workforce Management

(for field service workers), Mobile Sales Force Automation (for field sales

personnel), Mobile Supply Chain Management.

Jeanine Sterling, Principal Analyst


Frost & Sullivan

Follow me on:

www.linkedin.com/in/jeaninesterling

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Today’s Mobile Worker Apps Market

• A growing level of interest -- mobile worker apps promise impressive benefits to all sizes and types of businesses.

• A fragmented market – multiple players, deployment issues, technology choices.

• Today’s snapshot – company decision-makers describe their preferences and plans.

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Focus Points

How pervasive are mobile worker apps in the North American business sector – and what accounts for this level of interest?

Who are today’s favored mobility partners and why have they been singled out by customers?

Which mobile employee apps seem to hold the greatest near-term growth potential?

What are current customer preferences around cloud vs. on-premise, packaged vs. customized, mobile form factors, native apps, etc.? Are they expected to change?

What stands in the way of even greater levels of adoption?

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Survey Design and Coverage

• 300 enterprise mobile and wireless purchase

decision-makers.

o USA = 200

o Canada = 100

• Country samples divided evenly in terms of

company size (<500 vs. 500+ employees)

• Wide range of industries.

• Objective: Measure current and future

decision-making behavior regarding mobile

enterprise applications, including deeper

exploration of four specific app categories.

• Margin of error: +/- 5.66 at 95% confidence.

2014 Mobile Enterprise Applications Survey

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Mobile Worker Applications Are Becoming Ubiquitous

7%

16%

10%

26%

17%

23%

50 or more

20-49

11-19

6-10

1-5

None

Don’t know

N=300 Source: 2014 Mobile Enterprise Applications Survey, Frost & Sullivan

Number of Current Mobile

Worker Applications

Percent of surveyed

North American

businesses that

have deployed at

least one employee-

facing mobile

application:

82%All Respondents

1%

7

No Letting Up on Plans to Expand

6%

21%

10%

15%

6%

31%

N=300 Source: 2014 Mobile Enterprise Applications Survey, Frost & Sullivan

Number of Planned New Mobile Worker Applications

Percent of surveyed

North American

businesses that plan

to add one or more

new employee-

facing mobile

applications by Late

2015:

79%All Respondents

50 or more

20-49

11-19

6-10

1-5

None

Don’t know

11%

8

Broad Mobile App Usage Within Companies

% o

f Re

sp

on

de

nt C

om

pa

nie

s%

of R

es

po

nd

en

t Co

mp

an

ies

Manager/Supervisor

67%

Field Sales Personnel

44%

VP/Director

57%

C-level Executive

60%

Field Service Or

Delivery Personnel

51%

100%

Users of Mobile Worker Apps

Source: 2014 Mobile Enterprise Applications Survey, Frost & SullivanN=300

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A Fairly Controlled Environment

~85% of respondent companies have employees using

company-approved apps on their mobile devices.

Mobile employees in 57% of respondent companies are able

to access and download company-approved apps via their

business’ own private app store or catalog.

26% of respondent companies consider employee use of

unauthorized mobile apps to be a problem.

40% of respondent companies report having an EMM platform in

place – while another 36% plan to introduce one within 1-3 years.


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Enhanced Efficiency and Productivity Gains Are Just the Tip of the Benefits Iceberg

69%

69%

60%

56%

54%

49%

42%

48%

79%

75%

72%

70%

69%

68%

67%

65%

More productive employees

More efficient business processes

To enhance customer engagement

More employee collaboration

Results in cost savings

To establish a competitiveadvantage

To make more money

To keep up with competition

Reasons for Providing Mobile Apps to Employees—Percent Very or Somewhat Important, North America, 2013 and 2014

2013 2014

Base: All respondents (2013 N=308; 2014 N=300)

Growing sophistication in user expectations

Hard-dollar impacts:Companies anticipate real,

quantifiable business

benefits.

Soft-dollar expectations:

More macro goals

(customer engagement, employee collaboration,

competitive advantage)

enjoy nearly same levels of intense expectation.

Source: 2014 Mobile Enterprise Applications Survey, Frost & Sullivan

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Anticipation Meets Actuals in Our Targeted Application Categories

Wireless Email Mobile SFA

Increase in worker productivity: 81% Improved competitive advantage: 84%

More employee collaboration: 76% Enhanced customer engagement: 83%

Increase in customer satisfaction: 76% Increase in customer satisfaction: 81%

Mobile Workforce Management

Improved response times: 78%

Improved competitive advantage: 76%

Enhanced customer engagement: 76%


Current Users: % Rating “Significant” and “Somewhat Significant”

Top Three Business Impacts, by Application Category

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The Result? Consistently High Levels of Customer Satisfaction

Satisfied

<1%

2%

1%

Wireless

Email

Mobile Sales

Force Automation

Mobile Workforce

Management

Dissatisfied

93%

91%

89%


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Highest Growth Potential Lies in a Mix of Horizontal and Tailored Solutions

57% Wireless email55% Mobile workforce management (field svcs)54% Mobile access to internal corporate database(s)52% Mobile collaboration50% Mobile sales force automation (field sales)50% Mobile conferencing49% Mobile asset tracking 49% M2M remote monitoring and diagnostics47% Mobile supply chain management46% Mobile standalone corporate instant messaging46% Mobile employee-to-employee social media46% Local fleet management and tracking


Percent of Companies Planning to Introduce or Expand Deployment Within 3 Years

N=300

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Current Implementations: Cloud vs. On-Premise vs. Mix

On-premise

server

solution only

Hosted or

cloud solution only

Hybrid: Both on-premise

and cloud

31%

31%

38%


Strongest Barrier to Cloud-based

Mobile Apps

SMB: Cost

Enterprise: Loss of internal control

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Strong Preference for Prepackaged Solutions

All Respondents

26%

40%

14%

13%

7%<500 Employees 500+ Employees

Prepackaged; Out of box with no integration/customization

Prepackaged; Some in-house integration/customization

Prepackaged; Some 3rd party integration/customization

Fully customized; Created in-house

Fully customized; Created by 3rd party

34%

33%

10%

14%

9%

19%

46%

18%

12%

5%


80%

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A Lengthy Checklist for Aspiring Mobility Partners


All Respondents: % Rating “Very Important”

47% 46%43% 42% 40% 38% 38% 38%

Post-salesservice and

supportcapability

Professionalservicescapability

Cost of doingbusiness

Quality ofmobile app

portfolio

Number ofmobile devicesand OS types

supported

Experienceintegratingapps with

back-officesystems

Experiencecustomizingmobile apps

Industryreputation

Top Criteria Used to Select a Mobile Business Applications Partner (Very Important Rating): North America, 2014

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Wireless Carriers Remain Preferred Mobile Apps Partner .. For Now

0 20 40 60

Wireless carrier

Major corporate software vendor

Systems integrator or prof services firm

Mobile device manufacturer

Mobile application developer

Mobile platform vendor

Prefer not to use a partner

50%

40%

33%

32%

30%

27%

12%

Businesses with <500 Employees

• Wireless carrier – 40%• Major corp software

vendor – 25%• Prefer no partner – 23%• Mobile device

manufacturer – 22%

Businesses with 500+ Employees

• Wireless carrier – 59%• Major corporate software

vendor – 55%• SI or Professional

service firm – 48%• Mobile device

manufacturer – 42%

N=300 Source: 2014 Mobile Enterprise Applications Survey, Frost & SullivanAll Respondents

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93%

53%

17% 14%

82%

61%

28%19%

2013 2014

90%

44%

19%8%

77%59%

31%15%

89%

55%

26%14%

78%60%

28%17%

Smartphone Tablet Ruggedized Mobile Computing Device

Basic feature phone

Wireless Email

Mobile SFA

Mobile Workforce

Management

Tablets Are Surging as Companion Devices

Source: 2013 and 2014 Mobile Enterprise Applications Survey, Frost & Sullivan

Current Users

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Who’s Making the Purchase Decision?

62%58%

40%

33%

23%

11%8%

6%

44%

24%

12%

4%7%

2% 1%

6%

IT C-levelexecutives

Operations Finance Sales andmarketing

End users Other LOBheads

Other decisionmakers

Decision Makers of Mobile Business Apps Deployment: North America, 2014

Organizations involved in approving apps Primary interface with vendors

IT remains the primary interface … but the approval decision can involve multiple departments.


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Complication is Perilous: Customers Want Apps That are Easy to Implement and Use

80% 79% 79%

76% 76%

74%73%

Easy for ouremployees to

use

Affordablepricing

Offers a highlevel of data

security

Integrates easilywith our back-office systems

Easy toadminister

Provides anexcellent ROI

Requires littletechnical

expertise oreffort on our part

to deploy

Top Criteria Used to Select a Specific Prepackaged Mobile Business Application (Very important/important), North America, 2014

Why some vendors have gained traction … and others have not:

N = 300Source: 2014 Mobile Enterprise Applications Survey, Frost & Sullivan

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What Stands in the Way of Further Adoption?

0 20 40 60 80

Security concerns

High cost

No real business need

Introduces mobile device issues

Back-office integration concerns

Lack of a dependable mobility partner

Lack of internal resources to

manage/maintain apps

67%

51%

49%

49%

46%

46%

55%

N=300Source: 2014 Mobile Enterprise Applications Survey, Frost & Sullivan

All Respondents: % Rating “Very” or “Somewhat Important” Barriers

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Takeaways

• An expanding market with significant revenue potential.

• An array of hard and soft dollar benefits that capture the interest of increasingly sophisticated business customers.

• Very high levels of customer satisfaction.• Looming changes in distribution channel mix.• Growing popularity of prepackaged solutions.• Customer preferences coalescing on a range of

implementation issues.• An increasingly democratic purchase approval process.

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For Additional Information

Clarissa Castaneda

Corporate Communications


+1.210.477.8481

[email protected]

Brent Iadarola

Global Research Director


+1.210.481.0752

[email protected]

Jeanine Sterling

Principal Analyst


+1.586.263.4454

[email protected]

Craig Hays

Sales Manager

Information & Communication Technologies

+1.210.247.2460

[email protected]

the exploding, intriguing opportunity of mobile worker apps

Mobile

enterprise mobile

mobile enterprisesoftware

mobile employee apps

mobile form factors

mobile sales force automation

mobile supply chain

native apps

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