Winning the Enterprise Mobility Opportunity: Know your customers, or lose them
www.wipro.com
Jan Timothy Woodcock Marc Jacobson
TABLE OF CONTENTS Introduction................................................................................................................................................................................................1 Enterprise Mobility – The Path to Transformation...........................................................................................................1 Enterprise Mobility Delivers Tangible Business Value ....................................................................................................2 Sales Performance Operational Performance Employee Productivity Capturing Enterprise Mobility Market Share.......................................................................................................................4 Excellent Market Potential Core Product Requirements Assessing the Competitive Landscape Optimizing Market Alignment for the Enterprise Segment Market Strategies for CSPs Market Strategies for TEVs Conclusion ................................................................................................................................................................................................6
Just as the combination of the personal computer and the Internet revolutionized business in the past 20 years, enterprise mobility will transform the way we work in the years to come. Wipro recently conducted a survey with 164 business and IT executives who are leading enterprise mobility adoption initiatives within their organizations. The results of our research show that organizations who succeed with enterprise mobility will establish a competitive edge in sales performance, operational efficiency, and employee productivity. Those that fail risk obsolescence in a world of always-on, always-on-the-move business functionality. Enterprise mobility constitutes a tremendous financial opportunity for both Communications Service Providers (CSPs) and Telecom Equipment Vendors (TEVs). But, to capture the full potential of this high-growth market, CSPs and TEVs must ascend upwards from the communications layer into business applications that solve the complex problems faced by clients. To succeed, CSPs and TEVs must assemble a calculated strategy that leverages their innate strengths. These include: Network controls for data security. 70 percent of survey respondents described security as an above average barrier to mobility solutions adoption. Network ownership to guarantee quality-of-service. Latency and downtime, while generally accepted in the consumer market, will not be acceptable for mission critical enterprise solutions. Vertical industry breadth. The communication industry’s presence across every industry vertical leaves it well positioned to sell and deliver industry tailored mobility solutions. Finally, the communications industry may choose to forge partnerships for tactical and strategic positioning that will separate the winners from the losers. For example, the combination of the breadth and strength of a service provider’s field force along with industry domain and application development expertise from a strong IT service provider may prove advantageous for both stakeholders. We explore all of these topics in greater detail in the ensuing sections.
Enterprise Mobility – The Path to Transformation Mobility is at the heart of a transformation that will profoundly change the way business is conducted in the 21st century. There are scores of millions of mobile handsets in use by businesses today, but they are almost exclusively being used for basic voice communication and email access. However, this is rapidly changing due to three key technology enablers. First, 3G, and to an even greater extent 4G, mobile data networks provide data download and upload rates required to support bandwidth hungry mobile business applications. Second, the promise of Cloud computing has become a reality. For enterprise mobility, Cloud will allow for heightened enterprise application control and standardization while reducing compute requirements at the device level. Thirdly, a force referred to as the ‘consumerization of technology’ is generating stunning innovation in mobile compute devices. Tablets and smartphones have placed powerful, small-form compute capabilities in the hands of users, wherever they may roam.
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Figure 1 lays out the three-step path in which this transition will occur. Businesses will move from informational Enterprise Mobility Applications (EMA) to collaborative and ultimately transformational uses. Figure 1: The Path of Enterprise Mobility Application Adoption
Mobile email IT/Finance dashboards Remote ERP, CRM, Human Resources Information Systems, and Supply Chain Management access
Document editing and sharing Document workflow automation Video conferencing Interactive sales presentations
Field workforce automation Dynamic field pricing Integrated business process automation(for instance, medical record access, care response, asset tracking and billing systems integration at hospital bedside)
TRANSFORMATIONAL
COLLABORATIVE
INFORMATIONAL
Source: Wipro Technologies
Informational applications have already been widely embraced, with just about every large- and medium-sized enterprise in the developed business world enabling mobile email access. Investment in collaborative EMAs continues to rise based on early successes – particularly around sales enablement. But, true transformational EMAs, while often talked about, are nearly non-existent. The true transformational EMA will not only automate but will reinvent critical business processes.
Enterprise Mobility Delivers Tangible Business Value
their value? We put that question to our survey participants to measure improvements in sales force productivity, business intelligence, business operations enablement, customer engagement, field operations management, and sales force management.
Sales Performance EMAs will dramatically improve sales force performance, according to our survey participants—and the scope of the projected business impact is stunning. Our survey participants overwhelmingly expect to realize significant reductions in sales touch points and total sales cycle duration, as well as an improvement in win rates and a substantial projected increase in deal size. The responses are summarized in Figure 2.
EMAs will evolve into more collaborative and ultimately transformational applications, but what will be the scope and nature of
Figure 2: Quantifying the Sales Productivity Impact of EMAs
Quicker Sales Cycle 85% of survey participants indicated an improvement in data mobility would reduce sales cycle duration 24% average projected reduction in sales cycle duration 23% average projected reduction in the number of customer interactions per sale
Higher Win Rate 93% of survey participants indicated an improvement in data mobility would improve the sales win rate The average projected win rate improvement was 28%
Larger Average Deal Size 87% of survey participants indicated an improvement in data mobility would increase average deal size The average projected deal size improvement was 27%
Source: Wipro Technologies
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These results are influenced by two aspects of data mobility. First, the field sales team will have mobile access to insights from historical account data, pricing, and supply chain information—insights that will contribute to a more concise, impactful, and meaningful client dialogue. Secondly, improved product demonstrations and illustrations—particularly with widespread adoption of enterprise tablets—will better communicate product value.
Specifically, 84 percent of participants anticipate “moderate,” “significant,” or “critically strategic” improvements in both internal operations enablement and field workforce management from EMAs. Only 5 percent saw no potential for internal operations while 6 percent saw no potential for field workforce management. Figure 3 summarizes this data. “Our field reps still tote laptops around. Due to a lack of data mobility at our organization, sometimes the reps must ask customers to come into the office to finalize a deal. Improving our mobile CRM and Sales Force Management would allow the sales team to sell anywhere at any time.” -IT Director with a Financial Services organization
Operational Performance Substantial internal and field operations performance improvements will occur with the introduction of the new wave of EMAs, according to our survey respondents.
Figure 3: Potential for EMAs to Positively Impact Internal Operations Enablement and Workforce Management
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Critically Strategic
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Will Enable a Significant Improvement
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Will Moderately Improve
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May Slightly Improve
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Workforce Management Internal Operations Enablement
Percentage of Respondents Source: Wipro Technologies
The greatest contribution to internal operations enablement from EMAs will be powerful new mobile supply chain and logistics applications. New efficiencies in the speed and accuracy of transaction processing in a factory or warehouse setting will be realized. New forms of process automation will be created, resulting in better accuracy of inventory, shipment confirmations, and quality tracking that will delight customers. Moving from business challenges in the warehouse to issues in the field introduces new aspects of complexity. Managing a distributed workforce with limited resources and ensuring they have the tools and information to excel at their job is a difficult task. The next wave of mobile applications in this area will include intelligent scheduling and dispatching, real-time communications, and powerful new forms of data collection and management. The business benefits that adopters will realize include an improvement in the preparedness of field workers and smarter decision-making in the field, ultimately resulting in improved customer service and client retention.
“Due to the nature of our business, mobile document editing would dramatically improve the productivity of our workforce. Although we do not have this capability yet today, it is something we are evaluating and believe it is low-risk, high-upside investment.” -Sales Director with a Media organization
Employee Productivity Survey respondents also expect that enterprise mobility will significantly enhance employee productivity. These gains will be driven by collaborative technologies such as presence, mobile video conferencing, and mobile access not just to data and information, but to business critical processes. In our survey, presence was defined as the ability of a person or device to communicate with others and to display levels of availability—regardless of whether that person is in the office or on the
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go. As workers spend more of their time outside of a traditional office setting, presence will ensure communication between colleagues is seamless and effective. Just 3 percent of survey respondents perceived no business value in presence; to the contrary, nearly 20 percent believe it could become a strategic differentiator for their organization. EMAs also have a strong potential to deliver business intelligence improvements to organizations, as confirmed by the responses of survey participants. Over 20% of participants described the potential of enterprise mobility to improve business intelligence as “critically strategic” with an additional 42% characterizing the potential as “significant.” Only 9% of respondents did not anticipate any potential for mobility to improve business intelligence.
performance for those solutions that are consumed by enterprise customers. The second core product requirement for enterprise solutions is data security. Of all the barriers to enterprise mobility adoption our survey measured, security ranked at the top. In fact, nearly 70% of survey respondents described security as an above average barrier to adoption. Wipro expects that security as a barrier to adoption will decline with the proliferation of “out-of-the-box” data encryption and Mobile Device Management (MDM) solutions. But, addressing security concerns in both product development and marketing efforts is a core requirement of a successful enterprise mobility solution.
Assessing the Competitive Landscape Enhanced business intelligence will be driven by an improvement in data capture and information distribution enabled by EMAs. For example, a global commodities organization deploys field workers to areas where crops are being grown, gathering real-time data on crop production. This data is then fed in real time into a model that predicts corn, wheat, and soy bean supply. Survey participants anticipate that mobility will deliver tangible business benefits in sales performance improvements, operational efficiency and employee productivity. In aggregate, these benefits will allow early adopters to establish a potentially lethal edge over their competitors. Enterprises have an imperative to invest in mobility today or risk being left behind. What must participants in the communications industry do to position themselves as the partner of choice for the mobility transformations of their clients?
Capturing Enterprise Mobility Market Share Excellent Market Potential Good news abounds for communications industry players who crack into the enterprise mobility market. Unlike the consumer space where Apps costing more than a dollar or two are rare, enterprises are accustomed to much higher price points. In addition, enterprises are increasingly receptive to software-as-a-service licensing models which provide lucrative, recurring revenue to service providers. In 2011, Gartner predicted that the enterprise software market was worth more than $250 billion, while IT services generated greater than $800 billion in enterprise spending1. Enterprise mobility software and services spending is just a fraction of that market today, but the total available market demonstrates the enormous financial potential.
Core Product Requirements There are two core product requirements that will form the foundation a successful enterprise mobility solution. The first is that from a network performance standpoint, the solution must offer a very high quality-of-service. Latency experienced during a free video call over a smart phone between family members is tolerable. But, video and voice integrity during an important client meeting must not be compromised. To deliver on this expectation, providers will need to invest in redundant infrastructure that will guarantee uptime, availability and a high-level of 1
The communications industry will not dominate the enterprise mobility market in the same way they have controlled the consumer mobility market. The primary reason for this is that competition will occur across a broader range of participants, but for a smaller number of deals. For instance, in the consumer mobility solutions market the boundaries of competition are quite clear – operators compete against other operators while device vendors battle it out with each other. But the competitive landscape will be more complex in enterprise markets where software vendors attempt to layer mobility functionality on top of their installed base of solutions already in use at the organization. Concurrently, systems integrators will pitch more holistic approaches that tie disparate IT systems together through a common interface designed for mobile consumption. Adding to the challenge is that this fierce competition will take place across thousands of large deals, not billions of consumer subscriptions. Further complicating the competitive landscape in the enterprise mobility solutions market is the strong “do-it-yourself” attitude of enterprise businesses. In fact, nearly 90% of Wipro’s survey respondents believe that proprietary mobile application development has “strategic importance.” Compare this attitude to the consumer who is more than happy to select a piece of software from an App Store that meets most of his or her needs, as long as it comes at a very low price. In-sourcing may prove to be the strongest form of market competition.
Optimizing Segment
Market Alignment
for
the
Enterprise
Competition for large enterprise mobility deals will be fierce and more complex than consumer markets requiring a more nuanced sales and partnership approach. Market participants with a communications-centric legacy will be wise to carefully consider their organizational strengths and weaknesses as they aim to capture market share. Technology competencies, sales execution capabilities and brand credibility are all important variables that will contribute to success or failure. For instance, we previously examined the importance of network quality of service for enterprise mobility solutions. This is an area that communications service providers can promote their unique strengths to differentiate against competitors coming from an IT heritage (see Figure 4).
http://m.zdnet.com/blog/btl/gartner-raises-it-spending-forecast-for-2011/43316
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Figure 4 – The Communications Industry Must Promote Its Unique Strengths to Differentiate in the Enterprise Mobility Market
Network Quality- of-Service
Vertical Tailoring
70% of survey respondents described security as an above average barrier to mobility solution adoption
Network QoS expectations for enterprise solutions are extremely high. Latency or downtime that consumers will accept will quickly become a barrier to adoption in enterprise markets.
Tailored industry vertical solutions critical for impactful mobile applications
Data integrity guaranteed by the network owner
Network ownership improves accountability for QoS. Ability to deliver more robust and meaningful performance guarantees.
Service provider’s presence across verticals leaves them well positioned to offer industry solutions.
Data Security
Strategic Importance
Communications Companies’ Unique Strengths
Source: Wipro Technologies
The same can be said for data security – who better to ensure data integrity than the companies who designed and built the infrastructure and are responsible for operating the network? The services oriented network becomes a service provider advantage when delivering enterprise mobility, from presence to security the network is critical end to end. Finally, communications companies should carefully consider their vertical strategy in the enterprise mobility market. Wipro expects that the Mobile applications that add the most client value will be tailored to the needs of a particular industry. Some examples include straight through claims processing for the insurance industry or remote patient diagnostics solutions for medical care. On the one hand, this market dynamic presents an excellent opportunity for communications companies that maintain client relationships across all industries. On the other hand, communications companies must be realistic about their ability to develop solutions outside of their industry domain expertise areas. This is where a carefully constructed partnership with an IT services company that possesses vertical industry development experience can be particularly powerful for both entities.
Market Strategies for CSPs The enterprise mobility solutions market offers great potential to CSPs (Communication Service Providers) – particularly those with a robust enterprise business. The best positioned will have trusted business relationships in place already today in areas such as network services, managed services and communications infrastructure outsourcing. These
CSPs should employ an account-centric approach that leverages these existing client relationships to get some wins under their belt that will improve market credibility and positioning. As discussed earlier, the key technologies that are enabling enterprise mobility are Cloud, 3G/4G and the proliferation of tablets and smartphones – these are all uniquely communications-centric areas. In crafting marketing and sales messages, CSPs should stress that these enabling technologies are part of their DNA, bolstering their ability to design, build and deliver enterprise mobility solutions. Beyond the sales and marketing messages, CSPs have two major choices when crafting their go-to-market strategy. The first is a horizontal approach, such as building a world-class, real-time field force management solution. This approach will avoid battle in the vertical solutions area where competition from the IT players may be stronger. The second option is to partner with an IT services leader who can bring domain competency and marketing credibility to an industry specific solution.
Market Strategies for TEVs TEVs (Telecom Equipment Vendors) should consider focusing on building the infrastructure and Service Delivery Platform (SDP) to support Enterprise Mobility Applications. The focus should be on ensuring quality-of-service, reliability and customer experience management for the mobile work force.
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The network is no longer just a channel for delivering services, but has become a critical mechanism for service differentiation. When we apply this concept to enterprise mobility, TEVs should consider the following aspects. Enablement of the SDP to provide ubiquitous network access and enable rapid porting of applications. Seamless hand over of sessions across multiple devices, for example hand over of sessions from mobile devices to fixed line devices. Integrated Service Management Infrastructure for rapid deployment of new services, integrated services across multiple devices, integrated billing and monitoring of service quality based on class of services. Customized telecom networks for vertical markets for example, to meet unique industry requirements across banking, education, hospital, media and entertainment. Connected device solutions for multiple devices in homes and enterprises. Analytical engines to gather intelligence and support customer profiling.
Conclusion Enterprise customers have a strong incentive to invest in mobility solutions today, or risk being left behind by their competition. Just think of what happened to ‘big-box’ retailers that dragged their feet in developing an e-commerce strategy – the impact of mobility will be just as strong for many industries. In turn, the provision of enterprise mobility solutions offers excellent financial opportunities for the communications industry. But, success is not guaranteed – competition will be stiff and in some cases, communications players will be running up-hill in technology and branding areas where they lag IT services leaders. To win, CSPs and TEVs must hone a calculated market strategy built upon their unique communication-centric assets and strengths.
There are tremendous opportunities for TEVs to monetize infrastructure investments as enterprises adopt more applications. IT and telecom infrastructure are blurring as enterprise applications become available on multiple access devices, anytime, anywhere and data is made available on a secure cloud infrastructure.
About the Authors: Jan Timothy Woodcock Jan Timothy Woodcock is a Business Transformation Practice Partner in the North America Practice delivering management consulting solutions in strategy, operations, and technology . Mr. Woodcock has more than 20 years of consulting experience with global Telecommunications and Media clients. He specializes in the areas of strategy and operations, with experience spanning the major players of the telecommunications and media industries. He is a specialist in customer and product analytics, financial management, operational efficiency, and strategy. His industry experience encompasses the major telecom equipment, wireline, and wireless companies as well as the major media conglomerates, networks, publishers, and cable companies. Prior to joining Wipro, Mr. Woodcock was senior partner at Deloitte Consulting, LLC. who held key leadership roles in building their Telecom, Media, and Technology practice. Jan has published numerous articles and has spoken extensively on Telecom and Media issues.
Marc Jacobson Marc currently serves as the Senior Manager of Strategy for the Global Media and Telecom business. He is responsible for refining, enhancing and communicating the group’s market position and business strategy. Previously, Marc was a member of Wipro Consulting’s Product Strategy Group and was responsible for selling, structuring and leading consulting engagements that focused on improving client go-to-market strategies and sales performance. Prior to joining Wipro, Marc worked for industry analyst firm Ovum where he was a founding member and key contributor to the company’s first web-based advisory service E-Services@Ovum.
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