the upwardly mobile enterprise 2014_03_05_5616_summary_powerpoint_deck_the_

© 2013 IBM Corporation

The “Upwardly Mobile” Enterprise:Setting the Strategic Agenda

Eric Lesser, Linda Ban, Davon Snipes, Pamela Hurwitch

October 2013

Study Approach and Methodology

Introduction: Why is mobile important to the enterprise?

Chapter 1: Developing a mobile strategy

Chapter 2: Improving the customer experience and driving employee productivity

Chapter 3: Enabling the mobile environment

Table of contents

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The “Upwardly Mobile” Enterprise study was comprised of an online survey completed by over 600 global respondents and 30 interviews

3

Source: Institute for Business Value, Mobile Enterprise Study, QS7. What was your organization’s approximate global revenue in US dollars? For public sector, what was your organization’sapproximate annual budget in US dollars for the last fiscal year?; QS6. Approximately how many people does your company employ?


Demographics

Survey Demographics

� Survey completed by 601 companies (301 mature countries, 300 growth countries)

� Supported by IBM’s research partner, Oxford Economics

� Distributed and administered online

� Geographic representation from 29 countries with a rough equivalence between industrialized and developing economies

� Minimum of 50 respondents from 8 strategic industries: Banking, Insurance, Retail, Travel and Transportation, Telecom, Government, Healthcare, Automotive

Interview Demographics

� In-depth interviews with 30 executives directly involved in setting mobility strategy across multiple industries and geographies

� Interviews conducted between March and May 2013

� Interviews conducted by IBM and research partner, Oxford Economics

Survey Respondents by Annual Revenue

Survey Respondents by Employee Size

A subset of ‘Leaders’ has been derived from the survey results based on the maturity of a company’s mobile practices and mobile strategy

4

Source: Institute for Business Value, Mobile Enterprise Study, QS7. What was your organization’s approximate global revenue in US dollars? For public sector, what was your organization’s approximate annualbudget in US dollars for the last fiscal year?


Defining Mobile Strategy Leaders

� One requirement was that they agreed or strongly agreed with three of the following five statements:

My organization has a well-defined enterprise mobile strategy

The mobile strategy is aligned with the overall business strategy for the organization

There is executive-level oversight for mobile initiatives

My organization has a clear funding mechanism for mobile initiatives

There is an established governance structure for mobile initiatives

� A second requirement was that when asked to compare themselves with their industry peers today, they indicated that they had a superior or leading mobile strategy (4 or 5 on a 1-5 scale)

� Overall 14 percent of companies fell into this leader category

� Further, mobile strategy leaders were more likely to indicate that they outperformed their industry peers in both revenue growth and profitability

Leader Breakdown by Annual Revenue

Leader Breakdown by Location

Mature Growth






Table of contents

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6


Source: Institute for Business Value, Mobile Enterprise Study

A set of functions that allow activities

and transactions to be completed,

untethered by timeand place

Enabled by a device or sensor

(e.g. smartphone, tablet, laptop, accelerometer, camera, scanner, wrist

watch) connected through a wireless network

Opens up opportunities to create new services,

markets, and capabilities, including machine-to-machine functionality

(e.g. remote diagnostics, enhanced transaction

processing)

Includes business-to-business, business-to-

customer, and business-to-employee interactions

What is mobility?

Mobility is becoming ubiquitous, both in the consumer and the enterprise environments

7


Source: 1Singh, Sameer. “When Will Tablet Shipments Overtake PCs?” Tech Thoughts. February 19, 2013. http://www.tech-thoughts.net/2013/02/when-will-tablet-shipments-overtake-pcs.html#.UioWun_3PCY 2 “The Year of the Enterprise Tablet – Infographic.” Industry News, Vertec Blog. Vertec . April 18, 2012. http://www.vertic.com/blog/year_of_the_enterprise_tablet_infographic/ 3Mulpuru, Sucharita. “US Online Retail Forecast, 2012 To 2017.” Forrester. March 13, 2013.. 4eMarketer, http://www.emarketer.com/Article/Smartphones-Tablets-Drive-Faster-Growth-Ecommerce-Sales/1009835 5“Smartphone Adoption Tips Past 50% in Major Markets Worldwide” eMarketer Newsletter. eMarketer.com. May 29, 2013: http://www.emarketer.com/Article/Smartphone-Adoption-Tips-Past-50-Major-Markets-Worldwide/1009923#bKLIS23S3H76qg0F.99; McDermott, John, “A Majority of U.S. Mobile Users are Now Smart Phone Users,” Ad Age, May 28, 2013. http://adage.com/article/digital/a-majority-u-s-mobile-users-smartphone-users/241717/ . 6“Infographic: Smartphones Rule as Shopping Tool” First Data Thought Leadership. First Data. http://www.firstdata.com/downloads/thought-leadership/SmartphonesRule.pdf 7“Insights - JiWire Mobile Audience Insights Report Q4 2012.” JiWire. 8 Ballvé, Marcelo “Wearable Computing: From Fitness Bands To Smart Eyewear, A New Mobile Market Takes Shape” Business Insider Intelligence. April 16, 2013. 9Bhas, Nitin “Wearables - The Next ‘Smart’ Thing.” Juniper Research. November 2012. http://www.juniperresearch.com/whitepapers/Wearables_the_Next_Smart_Thing.

Tablet devices rapidly supplanting traditional PCs

� Quarterly shipments of tablets are likely to overtake those of PCs by Q1 20141

� Enterprise tablet adoption is estimated to grow by almost 50% per year2

� The US Mobile retail revenues via smartphone are expected to reach $31 Billion by 20173

� In 2013, 15% of online sales will take place via mobile devices; by 2017 that percentage will rise to 25%4

Mobile commerce continuing to rise as a percentage of total internet commerce

Smartphones playing an increasing role in the purchasing process

� Currently, there are approximately 1.4 billion smartphone subscribers, with Smartphone adoption tipping past 50% in major markets worldwide5

� 45% of consumers use their phone in-store to price compare and 65% have retailer apps on their phone6

� 94% of smartphone owners report using their mobile device while in-store7

Wearable technology is in its nascent stages of growth

� Between 300-485 million devices are predicted to ship by 20188

� The market is estimated to be worth more than $1.5 billion by 20149

� 50% of consumers are not aware of wearable computing8

Mobility is changing how individuals use traditional computing in the enterprise environment

8

Source: Digital Front Office (DFO) Institute for Business Value Study, Q19a. For which of the following do you use your mobile phone? Select all that apply. Q19b. For which of the following do you use yourmobile phone? Select all that apply.


% of Respondents who use their mobile phone for the following activities

62%Internal email

56%

30%

30%

28%

Video conferences

External/client email

Apps related to job function

Apps related to work

% of Respondents who use theirtablet for the following activities

Read/write docs 47%

42%

41%

41%

39%

Research

Apps related to job function

Internal email

Apps related to work

All Respondents

Leading organizations clearly recognize that mobility will fundamentally alter how organizations compete in the near future

9

Source: Institute for Business Value, Mobile Enterprise Study, Q10. To what extent do you agree or disagree with the following statements about your organization's mobile strategy and mobile practices? (percentindicating agree or highly agree)

“Mobility will get to the point where it is a fundamental way we do business. The value proposition for mobile will be that it is embedded in what we do. In 5-10 years, we will look back and wonder what all the fuss was about.”

Director Strategy and Planning, Global IT, Automotive


Mobile is fundamentally changing the way my organization does business

My organization has seen measurable ROI from its mobile initiatives

All OthersLeaders

Mobility impact

73%

34%

81%

39%






Table of contents

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Companies recognize the need for a leading mobile strategy to compete more effectively

11

Source: Institute for Business Value, Mobile Enterprise Study, Q21. Compared with your industry peers, how would you evaluate the current state of your organization’s mobile strategy? Compared with your industry peers, how would you expect to evaluate your organization’s mobile strategy in 3 years?

Current and desired state of mobile strategy in 3 years

Approximately 90% of all companies are looking to sustain or increase their investment in mobile technologies over the next 12-18 months


39% 16%Limited to no mobile strategy

40% 40%Comparable mobile strategy

20% Superior to leading mobile strategy

44%

In 3 YearsToday

An established governance structure, with representation from across the organization, is a key component of a mobile strategy

12


Mobile Strategy and Governance


There are an infinite number of mobile applications that would be complete game changers, and the only way you get there is when everybody at the agency who’s focused on delivering the best agency mission is also looking at using these technologies.

Senior Advisor to CIO, Government

“We made the mistake with the Web of allowing each business unit to operate independently. With mobile, we recognize the need to centralize development around one center.”

Senior Manager Enterprise Architecture & Innovation, Automotive

Marketing

HumanResources

Finance &Accounting

IT

Strategy

Line ofBusiness

Today, CIOs play a prominent role in mobile activities, with line of business leaders highly involved in early stages

13

Source: Institute for Business Value, Mobile Enterprise Study, Q9. Please identify the lead participant(s) involved in managing and implementing your organization’s mobile initiatives. Please rank up to three for each activity;Key: Chief Information Officer (CIO), Line of Business (LoB), Project Manager (PM), Chief Technology Officer (CTO), Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO)


Mobile strategy leaders are more likely to include the Chief Marketing Officer (CMO) in early stage discussions about mobile

Lead participant(s) involvement in mobile activity phases

Generates new ideas

CIO

LoB

PM

CEO

COO

Sets / manages priorities

CIO

LoB

CTO

CEO

PM

Determines funding

CFO

CIO

CEO

COO

CTO

Acts as lead sponsor

CIO

CEO

COO

CFO

CTO

Provides governance

CIO

CTO

COO

CEO

CFO

Ranking

1

2

3

4

5

While companies are using mobile to pursue multiple innovation paths, the majority are focused on enterprise model innovation

14


Source: Institute for Business Value, Mobile Enterprise Study, Q25. What type(s) of business model innovation are being driven by the use of mobile capabilities?

Industry model innovation

Revenue model innovation

Enterprise model innovation

Redefining your role in the value chain, where you collaborate, and how you operate (e.g. incorporate partner capabilities)

Enterprise model innovation

Changing the way you monetize value (e.g. augment products with revenue generating services, innovate pricing, innovate who pays)

Revenue model innovation

Redefining existing industries, moving into new industries, creating entirely new industries (e.g. displace intermediaries)

Industry model innovation

Types of business model innovation driven by mobile capabilities

All OthersLeaders

62%

43%

38%

25%

38%

32%

Daimler reinvented itself from a manufacturing and car sales company to a provider of transportation services

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� Launched a car sharing service in late 2008 in Germany named ‘car2go’, which offers customers a way to customize their short-term rentals for convenience, reliability, and cost; customers rent two-seat smart cars for an initial registration fee, pay by the minute instead of the hour or the day, and have the option of one-way rentals with free street parking

� Created a mobile app which allows customers to detect the presence of a mobile vehicle near their current location; drivers gain access to the vehicle based on a sensor affixed to the customer’s drivers license or integrated in a membership card and a private access code

� Expanded ‘car2go’ in and outside of Germany to seven countries and 23 cities, including 450,000 registered users worldwide; smart vehicles have been rented more than 13 million times

� Given the density of urban environments and the associated high real estate expense, the cost of car ownership is often times prohibitive

� Customers are demanding more flexible urban mobility options for personal travel

Business Need Solution

� Offer customers an economical and flexible way to rent vehicles for personal travel

� Provide a secure way for customers to locate and reserve cars using mobile devices

� Manage a free-floating fleet of several hundred cars in a fully automatic rental process

Challenges


Source: Steinberg, Stephanie and Bill Vlasic. “Car-Sharing Services Grow, and Expand Options .” The New York Times. January 26, 2013. http://www.nytimes.com/2013/01/26/business/car-sharing-services-grow-and-expand-options.htm; http://www.daimler.com/technology-and-innovation/mobility-concepts/car2go

The Daimler Group is a German multinational automotive corporation comprised of multiple divisions including: Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks, Daimler Buses, and Daimler Financial Services. Daimler is one of the largest producers of premium cars and the world’s leading manufacturer of commercial vehicles with a global reach. Daimler sells its vehicles and services in nearly every country and has production facilities on five continents.

Recommendations



Foundational

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� Identify areas where mobile can fundamentally change business processes and models to generate new revenue streams, lower costs or redefine the organization’s role in the value chain

� Ensure that your enterprise mobile strategy takes into account both external as well as internal initiatives

� Ensure that business cases take into consideration both direct costs as well as benefits that accrue in areas not directly bearing the cost of the initiative

� Pilot new capabilities with selected customers, employees and business partners to gain insights, reduce risk and make adjustments before rolling out at an enterprise level

� Assess the network structure to make sure that new initiatives can scale when needed

� Rapidly adjust mobile offerings on an ongoing basis

� Make sure that your governance team involves all relevant stakeholders, including Line of Business, Information Technology, HR and Marketing

� Incorporate insights from “digital natives”

� Look for opportunities to leverage common technology tools, partnerships, platforms and development resources across business units

Be comprehensiveand bold

Be targeted anditerative

Be collaborativeand inclusive

Recommendations



Accelerating

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� Identify opportunities posed by embedding mobile capabilities into devices and sensors

� Take advantage of data and insights being generated from these sensors within existing business processes

� Consider new and emerging revenue streams and business models based on the data

Incorporate machine-to-machine and sensor-based capabilities into the mobile strategy

� Bring partners, customers and other third parties early into the strategy development process

� Identify opportunities for mutual gain and innovation today and in the future

� Work jointly to identify future trends and technologies

Invite trusted partners into your mobility strategy

� Identify the skills and capabilities that will be needed to be competitive in the next three to five years

� Highlight key investments that will be needed to sustain differentiation over the long-term

� Monitor key regulatory and policy developments to ensure that your organization is addressing future legal requirements

Plan for the future






Table of contents

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Companies are looking towards mobile to improve customer service, with a focus on responding more rapidly to customers

Source: Institute for Business Value, Mobile Enterprise Study, Q2. What are the most important benefits your organization is looking to achieve when using mobile to enhance the customer experience? (Select up to 3); Q6. What are the most important benefits your organization is looking to achieve when using mobile to improve employee productivity? (Select up to 3)

48%

58%

38%

30%

28%

27%

26%

Faster response time to customers

Improved communication

Better collaboration

Easier access to expert insights

Faster response time to internal inquiries

Increased availability

Work location flexibility

36%

51%

31%

24%

17%

16%

16%

16%

Improve customer service / satisfaction

Increase customer retention

Increase market share

Reduce number of customer service calls

Attract customers

Increase share of customer wallet

Expand existing products / services

Reduce cost for customer doing business with company

Benefits of enhancing the customer experience

Benefits of improving employee productivity

All RespondentsAll Respondents


20

Organizations are seeing mobility as an important driver for employee productivity

Source: Institute for Business Value, Mobile Enterprise Study, Q7. Please estimate the extent to which mobility has improved overall employee productivity today. What do you anticipate in 3 years?


Less than 10%

10-20%

Greater than 20%

20%

36%

30%

40%

50%

24%

Growth in employee productivity expected from mobility

In 3 YearsToday

Organizations are looking to increase the number of employees that are working outside the traditional office

21

Source: Institute for Business Value, Mobile Enterprise Study, QS11. Approximately what percentage of your organization's employees are remote / mobile workers (i.e. work from home or other locations)? What percentage do you anticipate in 3 years?


Percentage of mobile workers today and expected in 3 years (All Others)

>20% Don’t Know11-20%6-10%< 5%

Percentage of mobile workers today and expected in 3 years (Leaders)

Don’t Know>20%< 5% 11-20%6-10%

78% of leaders and 44% of all other companies identified ‘enabling employees outside the office’ as an infrastructure investment priority

In 3 YearsToday

20%18%

22%

14%

1%

22%

16%

34%

50% 38%

30%

22%

17%

3% 4%

32%

19%17% 18%

22

Organizations are placing greater importance on employees being more productive in the field

Source: Institute for Business Value, Mobile Enterprise Study, Q5. In considering how mobile can be used to improve employee productivity, how important are the following capabilities? (percent indicating agree orhighly agree)

Monitor and manage employees

Enable employee self-service

Provide sales force enablement tools

Improve internal collaboration

Access applications in remote environments

52%


Importance of mobile capabilities needed to enhance employee productivity

All OthersLeaders

81%

63%

80%

63%

76%

71%

51%

63%

45%

To drive employee productivity, leaders are embracing bring-your-own-device (BYOD) and providing the needed support

23

Source: Institute for Business Value, Mobile Enterprise Study, Q17. To what extent do you agree or disagree with the following statements about your organization's ability to manage mobile devices? (percentindicating agree or highly agree)

79%

48%

66%

34%

78%

39%

My organization provides the necessary training for

employees using mobile devices

IT provides the required support for BYOD participants

My organization has well-documented policies and procedures in place for

employees using mobile device.

66%

32%

My organization has adopted a BYOD

approach for employees across

the enterprise


Adoption of BYOD Support for BYOD programs

All OthersLeaders

VCC implemented a customer relationship management solution which reduced the speed of processing customer inquiries by 30-50%

24

� Implemented a robust customer relationship management (CRM) solution to help the company effectively and efficiently manage its contacts, leads, projects, products, services, documents, marketing campaigns and other events, sales pipeline, relationships and customer service interactions; the solution provided VCC seamless integration across both its internal and external systems

� Provided CRM solution to project managers online or off-line and on their BlackBerry, iPhone or other smartphones

� Promoted better collaboration, even greater productivity improvements, and a lower total cost of ownership

� Reduced speed of processing inbound customer service inquiries by 30 to 50 percent with a range of features, such as call tracking and email help tickets

� Provided project managers with key information in real time, allowing them to make better business decisions – working 5x faster when away from office

� VCC built its business on retail malls and wanted to proactively seek out new opportunities

� VCC had difficulty giving its project managers the information they needed for RFPs, project issues, and other business opportunities


� Contact and lead information that was deposited in the company’s home grown customer relationship management database could not ‘move’ the way the 30 project managers did onsite or when they were traveling or away from the office at customer locations

� Search capabilities were limited and it was difficult to share information

Challenges

Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials; www.vccusa.com


VCC is an internationally known construction services provider licensed throughout the U.S. The company is involved in retail, office, multifamily, hospitality, health care, industrial, and other use projects.

Recommendations

25



� Reinvent existing processes to take advantage of mobile capabilities, such as self-service

� Provide mobile personnel with tools that can provide rapid answers to customer assistance

� Enable employees to collaborate more easily and effectively with experts across the organization

Identify processes where mobility can provide faster, higher value customer response

� Provide employees with a mobile environment to accomplish administrative tasks at convenient times

� Redesign internal processes, such as expense management and time and reporting to take advantage of mobile features

� Consider adapting employee learning events and process changes to include mobile platforms

Use mobile capabilities to facilitate routine tasks and inquiries

� Develop clear rules and processes for mobile device use

� Educate employees to minimize potential risks, including security violations, malware and other IT hazards

� Include extended workforce into BYOD guidelines (e.g., contractors/business partners)

Build in security and privacy safeguards for employees using mobile devices for work-related activities

Foundational

Recommendations



26

� Provide employees with the apps, access and permissions relevant to their specific job needs

� Develop app stores that can be configured based on functions and job roles

� Incorporate the configuration of personal devices as part of orientation/onboarding processes

Customize theemployee mobile experience

� Recognize differences between traditional PCs and mobile devices

� Redesign processes that govern how devices and apps are procured, distributed, updated, repaired and managed

� Provide support outside of traditional office hours and locations

Manage corporate owned mobile devices like other corporate assets

� Apply data to customer responsiveness to drive revenue

� Identify opportunities to incorporate location data in internal processes such as route planning and employee scheduling

� Identify locations and interaction patterns of employees and customers to better understand collaborative patterns and behaviors

Consider leveraging location-based data

Accelerating

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Table of contents

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Companies struggle with the design and development of mobile applications

28

Source: Institute for Business Value, Mobile Enterprise Study, Q11. Please select the top challenges your organization faces today when developing or acquiring mobile applications. Select up to 5.

40%Development platform / infrastructure

46%Ensuring quality mobile experience / usability

Quality and functionality 57%

All Respondents


Challenges in developing/acquiring mobile applications

“For the end customer, it is not easy to get the right orientation, look and

feel; usability is the next thing.”Executive, Automobile company

Interviewees stressed the importance of the user experience within the design process

29


“We quickly realized that what people called “mobile” today is more than just something about mobility and having small computers with them all the time. It’s also a new way of distributing software and it’s a completely new set of expectations and user experiences that users expect to get from software that they will use all the time.”

Chief Architect, Travel services company

“Don’t do mobile just for the sake of mobile…really need to drive it from the perspective of the user (e.g., agent, customer, employee).”

CIO, Insurance company

“In governance and decision making…make sure the voice of the customer is heard by the engineer.”

Senior Advisor, Electronics company

Source: Institute for Business Value, Mobile Enterprise Study.

Roughly half of all companies struggle with mobile integration, security, and analytics capabilities

30

Source: Institute for Business Value, Mobile Enterprise Study, Q8. How significant are the following mobile challenges your organizations is facing today? (percent indicating agree or highly agree)

48%Ability to use analytics gathered from mobile data

49%Change management issues associated with employees using mobile devices

50%Ability to understand how customers are

interacting with your organization’s mobile applications / solutions

51%Ability to react to changes in technology and

mobile devices in a reasonable period of time

53%Ability to implement end-to-end mobile security

solutions for devices and applications

Ability to integrate mobile applications with existing systems

54%

All Respondents


Top mobile challenges facing organizations

Mobile strategy leaders have seen greater success in addressing the integration challenges

31

Source: Institute for Business Value, Mobile Enterprise Study, Q15. To what extent has your organization been successful with the following activities related to integrating mobile applications with otherapplications or back-end systems? (percent indicating agree or highly agree)


Success at integrating mobile applications

All Others

LeadersIntegrating existing systems that were not designed with

mobile in mind

Sharing information among systems / devices

Leveraging / managing application program

interfaces (APIs)

Ensuring interoperability with other systems

Building required internal technical skills / knowledge

73%

41%

71%

31%

63%

34%

70%

40%

62%

36%

55%

51%

50%

49%

59%

41%

88%

62%

90%

82%

82%

86%

82%

74%

Mobile strategy leaders also recognize the importance of making sure their mobile capabilities are secure

32

Source: Institute for Business Value, Mobile Enterprise Study, Q14. How effective is your organization at addressing the following mobile security issues? (percent indicating agree or highly agree)

Mobile app security

Threat detection

Device management

Secure connectivity

Protection of data

User security

Use of cloud technologies and services


Effective at addressing mobile security issues

“Our main challenges are data, security, privacy, and intellectual property risk. As vehicles collect more and more data, we will be challenged with determining the owner of the data and what is personal versus private.”

Director Strategy and Planning,

Global IT, Automotive

All Others

Leaders

While roughly half of companies indicate that the ability to leverage analytics is a challenge, leaders have truly focused on this area

33

Source: Institute for Business Value, Mobile Enterprise Study, Q16. To what extent is your organization effective in the following capabilities (listed above). Percent indicating agree or highly agree)

36%

36%

37%

30%

33%

Taking action based onmobile data

Analyzing mobile data

Addressing structured and unstructured mobile data

Handling large volumes of mobile data

Using cloud infrastructure for mobile data insight

development


Applying analytics to mobility

71%

73%

71%

70%

69%

“It’s not about collecting the data. It's about what is the question you want to answer.”

VP Group IT, Media

All Others

Leaders

Air Canada developed an integrated multi-channel solution to deliver a more engaging and seamless experience for customers

34

� Created one app where customers can check flight status and get their electronic boarding pass

� Delivered an integrated multi-channel solution across kiosks, web, and mobile that can tie together customers, agents, and call centers – adding intelligence so that the app can anticipate the end users’ needs

� Provided a real-time experience, so the information is delivered to the mobile device at the same time it is delivered to Air Canada agents

� Reduced per-check-in cost by 80%

� Resulted in the ability to push out new releases within 72 hours (prior 6-8 weeks); reduced the time of development and test by 50%

� Received more than 1.5 million iPhone app downloads and ranked #1 in the Travel Category (#2 overall) in App Store Canada

� Improved traditional web site based on insight from the mobile user experience, thus increasing customer satisfaction (added benefit)

� Air Canada wanted to expand its mobile reach to transform the way it interacts with its customers, deliver a more engaging experience, and provide greater customer value


Air Canada is Canada's largest full-service airline and provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market, and the international market to and from Canada. Together with its regional partners, Air Canada serves close to 35 million passengers annually and provides direct passenger service to more than 175 destinations on five continents.

� Lack of a multi-channel platform (across kiosks, web, and mobile) integrated with Air Canada’s back-end system

� Inability to deliver a seamless multi-channel experience to customers

� Six to eight week timeframe to push out new releases

� High check-in cost per passenger

Challenges

Source: Nicol, Dirk. Mobile Strategy: How Your Company Can Win by Embracing Mobile Technologies. IBM Press; 1st edition. 2013; Air Canada – Smarter Planet Leadership Series Video” http://www.youtube.com/watch?v=dyXuheNcJDs); http://www-01.ibm.com/software/ucd/gallery/aircanada_services_ravereviews.html); www.aircanada.com


Create with the omni-channel experience in mind

Evaluate your mobile solutions development capabilities and challenges

Incorporate mobility into your existing security environment

Recommendations

� Ensure all of your channels are able to access the current state of customer/employee transactions

� Understand how, and where, interactions are taking place with the customer

� Develop the ability to evaluate the overall customer experience within and across channels

� Evaluate and benchmark the firm’s current tools, development methods, and skills to develop case for change

� Consider opportunities for consolidating resources and standards development within a center of excellence (COE)

� Determine appropriate balance of internal and external resources to deliver needed mobile capabilities

� Apply the same rigor and advanced approaches to security as in traditional IT environments

� Use predictive analytics to review previous breach patterns and provide ongoing evaluation of the external environment for possible threats

� Ensure mobile transactions are secure

Foundational


35

Recommendations

36



� Identify opportunities to consume third-party APIs to improve mobile applications

� Attract and educate third-party developers to use APIs

� Develop competencies in API development, promotion and platform management to create new revenue streams

Tap into the value of APIs

� Evaluate cloud capabilities to increase engagement through notifications or location-based services

� Consider cloud delivered mobile lifecycle solutions if they meet requirements for security and fit with existing business constraints

� Examine potential for cloud-based collaboration among mobile dev-ops teams

Monitor emerging cloud services for opportunities to increase mobile engagement

� Use mobile data to yield contextual information regarding the timing and location of mobile transactions

� Apply analytics to understand how individuals are using their mobile applications and how these apps can be made more effective

� Combine mobile data with transaction data to determine next best offers and actions

Use analytics to provide end users and consumers with contextually relevant actions

Accelerating

Conclusion

37

Summary Key Questions to Consider

Developing a mobile strategy

� To what extent does your company have a well-defined enterprise-wide mobile strategy? How does your mobile strategy compare to your competitors?

� Who is involved in your mobile governance structure (e.g. IT, marketing, line of business, HR, finance and accounting) and how effectively do the functions work together on mobile strategy and execution?

� How does mobility drive business model innovation at your company?

Improving the customer experience and driving employee productivity

� How can employees with mobile devices enable faster response time to customers and improve overall productivity?

� Which existing internal processes could be modified to take advantage of mobile capabilities?

� To what extent does your organization have a BYOD strategy? How effective are your policies and procedures in place for employee use of mobile devices?

Enabling the mobile enterprise

� How effective is your mobile design and development process in understanding customer needs and rapidly developing solutions that fill those needs?

� To what extent are legacy systems a barrier for your organization in connecting mobile systems?

� How do you think mobile analytics can help you in providing a measureable return?

Conclusion

� AMRC

� Global Banking Company

� Rohde & Schwartz

� VAEB

� Mobile Services Operator

� CEMEX

Appendix – Additional Business Cases

38

The AMRC created a maintenance, repair and operations prototype that transforms the role of manufacturers and field engineers

39

� Created a mobile maintenance, repair and operations (MRO) prototype designed to help manufacturers and companies supplying and maintaining high-value machinery in sectors such as aerospace, shipping, and oil and gas

� Used a combination of augmented reality and robotics to bring critical information and remote expertise directly to field engineers

� Helps field engineers accurately locate equipment, obtain critical information, and receive real-time visual support from supervising experts based remotely

� Decreases CAPEX (extends asset life) 3-7%, increases production (asset utilization, unplanned downtime) 8-15%, decreases annual operating cost savings average 10-25% (labor costs, MRO inventory)

� Allows businesses to become more competitive through the application of new techniques, services, technologies and processes

� Captures and recycles information; offers ‘up-skilling’ solution for just-in-time knowledge transfer

� Provide a way for manufacturers to reduce costs, provide just-in-time knowledge transfer, and reduce the personal risk to engineers working in difficult environments


The University of Sheffield Advanced Manufacturing Research Centre (AMRC) with Boeing identifies, researches, and resolves advanced manufacturing problems. AMRC partners with industry to solve problems for manufacturing businesses. Beginning in February 2011, researchers with AMRC and IBM collaborated on a new system to put ‘smart mobility’ into maintenance, repairs and operations.

� Aging population of field engineers with the expertise to manage maintenance, repair and operations (MRO)

� Inefficient onsite repair and maintenance

� Recognition that with a global supply chain, companies need global support and a way to have bi-interactional communication

� Challenges around turning of inventory assets, cost of labor, and unplanned down time

Challenges

Source: IBM Research and The University of Sheffield Advanced Manufacturing Research Centre (AMRC) joint partnership; http://www.amrc.co.uk/

A global banking company created a BYOD program that reduced costs and improved employee satisfaction and flexibility

40

� Implemented a bring-your-own-device (BYOD) program that improved employee satisfaction and enhanced recruiting capability

� Received a 108% ROI and payback in less than one month

� Improved workforce flexibility and productivity with secure ‘anytime, anywhere’ access for employees

� Increased sales revenue from quick, reliable access to business-generating applications on BYOD devices

� Reduced costs for acquiring, provisioning, and replacing corporate-liable devices

� Decreased overhead and administrative costs for an on-site device depot program

� Reduced complexity and costs from internally maintaining the mobile infrastructure

� Decreased help desk support costs with a reduction in the number of inbound calls for corporate-liable devices

� Bring-your-own-device (BYOD) program that met internal (e.g. employee satisfaction, business productivity) and external (e.g. recruiting, competitive differentiation) needs


A large European bank serving retail, private, and commercial merchant banking clients with over 25,000 employees and $150B in assets under management. The bank’s bring-your-own-device (BYOD) program was initially piloted and then launched in 2011.

A large European bank serving retail, private, and commercial merchant banking clients with over 25,000 employees and $150B in assets under management. The bank’s bring-your-own-device (BYOD) program was initially piloted and then launched in 2011.

Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials

“With the BYOD program underway, we are now

more flexible in terms of where we work and how

we work, and people are getting more productive

time out of the workday. The BYOD program is

innovative, which is good for internal marketing

and impressive to our peers.”

Senior IT Manager

Rohde & Schwartz cut the cost of multiplatform development by 60% while supporting five different platforms

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� Implemented a third party mobile platform solution to integrate with enterprise systems and securely reuse the integration layer in multiple applications; created a unique, branded user interface library to serve as a standard for all future mobile application development initiatives

� Created a tablet application version of the company’s magazine to allow customers to access technical articles

� Created a Sales Web Mobile application to enable employees to access the company’s product background, inventory, and marketing information using their mobile devices

� Created a Sales Circular application to provide just-in-time product information to sales personnel

� Reduced cost of multiplatform development by 60% while supporting 5 platforms

� Shortened time to market with hybrid development of applications across multiple mobile operating systems

� Create a mobile enterprise infrastructure that supports multiple devices and creates applications for customers, partners, and employees within a short timeframe


Rohde & Schwarz, an independently, family-owned company based in Germany, is one of the world’s leading manufacturers of wireless communications technology, electromagnetic compatibility (EMC) test and measurement equipment, and broadcasting equipment for digital television. The company has approximately 8,700 employees, including 5,500 in Germany and 2,500 at the company’s Munich headquarters.

� Lack of a mobile infrastructure / platform that supports multiple devices

� Inability to develop and deploy HTML 5 applications to deliver content across multiple mobile platforms in a timely manner

Challenges

Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials; http://www.corporate.rohde-schwarz.com/en/about/company_profile/

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� Developed an in-home diabetes monitoring program that uses telemedicine to allow physicians to closely follow their patients’ at-home compliance

� Linked medical devices, such as blood pressure and blood glucose monitors and scales, to a cell phone which automatically sends the patient’s data to a diabetes diary database

� Expected to achieve a 20,000 member participation in a “health dialog” program, with resulting healthcare cost savings in the tens of millions by 2015

� Enabled the insurance company to identify at-risk patients and plug them into the program, improving care and helping further reduce insurance costs

� Helped to transform the treatment paradigm for widespread diseases like diabetes from traditional care to prevention-based care without adding costs

� Support its insurance customers and work more closely with their doctors to manage their diabetes


Versicherungsanstalt für Eisenbahnen und Bergbau (VAEB) is a public insurance company in Austria. VAEB insures health, pension and accident risks for railway workers and miners. VAEB increased their focus on health and health prevention three years ago. About 260,000 clients get insurance services from VAEB.

� The Austrian healthcare system is incredibly burdened by an increasing number of people suffering from diabetes

� A single person with diabetes costs VAEB €150,000 on average and the disease can become extremely painful for the patient, severely compromising their quality of life

Challenges

Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials, published March 20, 2012, last updated May 13, 2013; http://www.vaeb.at

Versicherungsanstalt für Eisenbahnen und Bergbau (VAEB) created a telemedicine solution that captures key patient data via cell phone

Mobile services operator harnesses its data to predict churn, enable more effective campaigns, and improve the customer experience

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� Implemented an information management and analytics solution to synthesize and analyze streams of data from call detail records, text messages and customer location information from GPS-enabled cell phones

� Analyzed usage data, subscriber trends and services mixes against delivery costs to identify the most profitable product lines and customers

� Created additional revenue stream through new offerings based on data analysis

� Boosted business intelligence and analysis window for business users by 100 percent, 12 hours to 24 hours

� Increased revenue as a result of higher customer conversion rate through targeted marketing campaigns

� Process detailed records based on mobile transactions in near real-time and perform data analysis to predict which customers might leave for a competitor


� Identifying, developing and delivering innovative and relevant offerings as rapidly as possible to retain and attract customers

� The company's existing system limited its ability to synthesize and analyze the growing volumes of data rapidly and prevented it from gaining deep insights on KPI

Challenges

Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials, published October 24 2012, last updated August 2, 2013; http://www.ideacellular.com/

CEMEX transformed its value chain by putting the customer at the center of the transaction and charging for delivery delays

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� Implemented an electronic delivery-scheduling and tracking system where drivers use mobile devices to optimize their delivery schedules, electronically track waiting times, and confirm deliveries

� Integrated mobile devices with the company’s central system so that wait times automatically initiate an added customer charge

� Implemented the ability to generate an electronic invoice as soon as the customer provides an electronic signature on the mobile device and the central system receives the confirmation

� Reduced fuel costs while enabling delivery drivers to make 68 percent more shipments per day, from 2.5 to 4.2 shipments; the increased driver productivity was realized by charging for delays, which helped reduce delay frequency and duration, and by taking advantage of the system’s delivery scheduling feature

� Received payments more quickly with faster invoicing abilities

� Provide an efficient way to record delivery times and account for delays caused by customers


CEMEX UK is a subsidiary of the building-materials enterprise CEMEX S.A.B. de C.V., which employs more than 40,000 people worldwide. The company manufactures and distributes cement and concrete, asphalt, roof tiles, mortar, masonry and railway sleepers. CEMEX sells its products in more than 500 locations nationwide and generates more than GBP 1 billion in sales revenue each year.

� Company’s drivers had to wait at customer facilities before unloading their shipments; CEMEX UK estimated that it lost $5,000 USD for every 45-minute delivery delay

� Customers often withheld payment until the company provided an invoice with proof of delivery

Challenges

Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials, published July 6, 2012, last updated January 7, 2013; http://www.cemex.co.uk/

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