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Paper Date
June 2011

MOVING TOWARDS A MOBILE ENTERPRISE THE JOURNEY OF INDIA, INC.

EXECUTIVE SUMMARY
Enterprises are increasingly embracing mobility for improved productivity, fully connected operations, and cost savings enabled by wireless data access, enhanced customer service and sales automation, as well as real-time collaboration. In a B2B scenario, mobility facilitates more efficient inventory management, asset tracking, and invoicing, and in a B2C landscape, mobility drives improved customer interaction and engagement for higher sales per employee. At the same time, mobile social networking enables more effective communication in an evolving market place. In India, CXOs are growing more aware of enterprise mobility. The sheer size of Indias mobile subscriber base, coupled with the countrys economic growth will increase smart mobile device penetration among enterprise mobile workers by more than four-fold between 2010 and 2015. As such, Springboard Research believes the era of the mobile enterprise is imminent in India.

INTRODUCTION
A mobile enterprise can be defined as one that enables its constituents to access information, to communicate, and to collaborate in real-time, on an as-needed basis, from any location, at any time. Mobility is generally facilitated by smart mobile devices such as tablets, smartphones, etc. and often delivered using mobile applications. India is one of the worlds fastest growing wireless market, but the adoption of mobile enterprise solutions is still in its nascent stage and set to grow tremendously in the next five years. Springboard Research estimates that Indias mobile subscriber base will reach nearly 1.2 billion by 2015 while the enterprise mobile workforce will grow to 205 million in 2015 (Figure 1A).

Prepared by Springboard Research for Salesforce.com 1

Source: Springboard Research Estimates; May 2011

Figure 1

The smart mobile device penetration rate among mobile workers is expected to rapidly increase from 26% in 2011 to nearly 65% in 2015 (Figure 1B), which means nearly two- thirds of Indias mobile workforce will own a smart mobile device such as a smartphone or tablet. This data builds a strong case for enterprises to deploy mobile applications on a larger scale.

BENEFITS OF ENTERPRISE MOBILITY FOR INDIA

A mobile enterprise can experience a range of business benefits including improved productivity, better operational efficiency, and enhanced customer interaction and engagement. This was also confirmed through a syndicated survey conducted by Springboard Research on enterprise smart mobile devices usage in India. According to the survey, improving productivity is the single most important factor for enterprises to adopt mobility in India, while employee accessibility follows next. The resulting upside in productivity, revenue and marketshare cannot be ignored by Indian CXOs. Figure 2 below provides more details.

Prepared by Springboard Research for Salesforce.com 2

Source: Springboard Research Survey; May 2011

Figure 2

According to our survey, respondents from Indian enterprises perceived the below as the five top benefits of mobility: Improves Productivity: 72% of respondents stated that they had realized productivity gains through mobility. Making corporate resources available anywhere, anytime means time-critical decisions are not delayed. Furthermore, business applications such as sales force automation (SFA) and customer relationship management (CRM) enables mobile workers to complete tasks on-site by eliminating the need to visit the office for paperwork or authorization. Enhances Employee Accessibility: For 40% respondents in the country, the ability to reach employees through mobile devices was a major benefit. This real-time access is generally enabled through applications such as IM, conferencing, social networking, etc. Better Brand Image: 11% of respondents believe that providing smart mobile devices to the workforce helps to enhance the brand image of the company. Lowers TCO: From a CapEx and OpEx perspective, 6% of respondents feel that smart mobile devices have a lower total cost of ownership (TCO) as compared to desktops/laptops. Improves Customer Service: 4% of respondents realized better customer service delivery through mobile devices as the mobile workforce can promptly address customer concerns, provide up-to-date information, and finalize orders without leaving the client.

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ENTERPRISE MOBILITY DRIVERS AND CHALLENGES

With todays consumers becoming increasingly mobile and well informed, enterprises must follow suit. Wireless technology can help enterprises not only improve internal processes, but also enhance customer interaction. Social networking sites such as Facebook and Twitter play a vital role in generating consumer awareness and improving brand image. According to Facebook, there were over 25 million Facebook users in India by Q1 2011. LinkedIn, a social networking site for work professionals, counts nine million users from the country, marking growth of 76% compared to early 2010. Consumers are also increasingly seeking advice and checking reviews of products/services on social networking websites before making purchases. Affordable mobile devices running on economical high-speed 3G/4G connections have further empowered consumers to access sites any time, anywhere. Overall, word-of-mouth is greatly influencing consumers buying behaviour and so it becomes imperative for enterprises to keep abreast of this trend. Mobile device usage marks a paradigm shift where mobility is moving from a luxury to a necessity. However, mobile technology is not without its flaws. One of the major challenges for enterprises is data leakage due to the loss of mobile devices. Furthermore, many devices such as smartphones are manufactured to cater to consumer needs rather than meet business requirements. This makes it more complicated for internal IT teams to support and secure the devices. Chart 1 below provides some of the major drivers and challenges for adoption of mobile technology within enterprises.

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Drivers and Challenges for Enterprise Mobility

Device and Data Security Complex Management and Support for Multiple Devices and Applications Seamless Integration of Mobile Technology with Existing Enterprise Infrastructure ROI-Driven IT Decisions

Ubiquitous Mobile Devices High-speed 3G/4G Data Connection Rapidly Changing Corporate Culture 24x7 Customer Service Including though Social Networking Sites Mobile Business Applications

CHALLENGES

DRIVERS
Source: Springboard Research; May 2011

Chart 1

Drivers
Ubiquitous Mobile Devices: Smartphones/tablets with dual-core processors/SoC and large RAMs are increasingly becoming as powerful as conventional PCs/laptops. This convergence of computational capabilities and portability is an alternative to PCs/laptops. In addition, the TCO of smartphones/tablets is less than PCs/laptops, so adopting the former can reduce enterprise hardware and maintenance costs. High-speed 3G/4G Data Connection: Widespread availability of 3G/4G connectivity allows enterprise users to access, download, edit, and upload large files on the go. In addition, high-speed connections facilitate real-time communication and collaboration such as video conferencing. Rapidly Changing Corporate Culture: Employees are increasingly leveraging their smartphones to achieve a better work-life balance. Furthermore, the proliferation of smartphones with enterprise-ready features will drive organizations to officially support these devices. This will translate into higher employee satisfaction. 24x7 Customer Service: On-demand client support can be achieved by using mobile solutions. This will help enterprises improve customer service and achieve SLAs.

Mobile Business Applications: Business applications such as CRM, ERP, business

intelligence, inventory management and more can be installed and used efficiently over mobile devices. As such, employees will be able to continue their work even

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when they are away from the office. This mobility helps enhance organizational efficiency.

Challenges
Device and Data Security: Portability, the most profound benefit of mobile devices, is also one of its major drawbacks because it makes devices vulnerable to theft and/or loss, which can seriously jeopardize sensitive corporate data. Furthermore, using these mobile devices for both corporate and personal use may lead to virus/malware attacks, thereby putting corporate data at risk. Therefore, device security is crucial for enterprises. Complex Management and Support for Multiple Devices and Applications: Mobile devices will only add to the heterogeneity of the existing IT environment. Thus, IT staff will have to be adept at supporting multiple device types such as desktops, laptops, smartphones, and tablets. This issue will be further compounded when corporate IT will have to support devices from different manufacturers running different platforms (operating systems in particular) and applications. Seamless Integration of Mobile Technology with Existing Enterprise Infrastructure: To ensure that mobile devices do not act in silos, enterprises will have to invest in seamlessly integrating mobile devices and applications with existing infrastructure, mostly wired, and legacy enterprise systems. The costs and effort involved can be substantial, due to performance and user requirements. ROI-Driven IT Decisions: Although the current global economic outlook seems to have improved over 2009-10, there is still lack of confidence in the financial markets of Europe due to the debt crisis, and uncertainty due to the earthquake and tsunami in Japan. Thus, IT decision makers will closely scrutinize mobility solution spending, and investments will hinge primarily on the ROI gained from these solutions. Enterprises are also carefully evaluating the benefits of mobility applications before large-scale adoption. Given overall market trends and changing paradigms driving enterprises to evolve to better serve its customers, Springboard Research believes mobile enterprises are the new direction, despite the challenges.

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UNWIRING ENTERPRISES THE JOURNEY TO ENTERPRISE M.1

As awareness of the tangible benefits gained from mobility grows, enterprises are actively pursuing the technology. CXOs are realizing that mobility is not just about providing portable communication devices to employees, but also represents a cultural shift with a 360-degree impact on the enterprise. However, many enterprises tend to lag when it comes to adopting mobility throughout the company, which can hinder official implementation. Springboard Research recommends a 5C approach that can help enterprises plan, implement, and sustain a robust, successful enterprise mobile strategy. Chart 2 below provides the essential elements of this approach.

5C Model Critical Elements to Achieve M.1

Source: Springboard Research; May 2011

Chart 2

Combine: Enterprises need to consider mobility as an integral component of their business strategy, service delivery, information exchange, and client/partner engagement model in order to maximize their ROI. Mobility should drive internal

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process and workflow changes so that it can be seamlessly integrated with existing enterprise infrastructure, systems and applications. Control: Enterprises should religiously manage the following to ensure their IT ecosystem does not become too complex to support: o Devices: Currently, a plethora of handheld devices including smartphones, tablets, and PDAs, are available from many different manufacturers. However, enterprises should use devices from a specific list of manufacturers for standardization across the company. The list should, however, include major manufacturers so that most employee- owned devices are supported. o Platforms: Device manufacturers are introducing their own operating systems, such as iOS, Android, BlackBerry, Bada, Windows Phone, and WebOS, and associated applications, to dominate the mobile revolution. This heterogeneous OS and OS-dependent application landscape is expected to grow further in the future. Thus, in addition to selecting a list of supported manufacturers, it is imperative that enterprises decide which platforms to support so that their IT departments can specialize in those areas. o Updates and Back-up: Enterprises should assume the onus of rolling out software and firmware updates and not leave it to the employees. This is critical to ensure all devices run the same software version and are thus compatible with each other. This can be facilitated using over-the-air (OTA) transfer technology. Similarly, remote application provisioning and remote automatic back-up can be carried out using OTA. Compliance: Enterprises need to enforce strict policies and procedures to ensure appropriate and ethical use of mobile devices. They need to educate their employees that mobile devices are corporate IT assets and misuse can adversely impact business and the financial health of the company. Furthermore, enterprises need to continually and proactively analyze, enforce and revise their policies for data and device protection, software and application compliance, and security. Enterprises should roll out policies around the following: o o o Virus and malware protection Remote device lock/data wipe capabilities (including from the flash memory card) Data and access protection through biometrics, passwords, encryption, and VPN

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Customize: An application store ecosystem is the lifeline for the fast-changing mobile industry. Although these stores provide a rich repository of business applications, enterprises need to develop customized software to ensure tighter integration and simpler applications management. Such an enterprise application/software store can be achieved through any of the following development strategies: o o In-House: Developers can be hired to create software/applications/tools per the evolving needs of the enterprise and its clients/partners Outsourcing: Enterprises may choose to contract software development to a third-party independent software vendor (ISV) such as Salesforce.com o Hybrid: Enterprises may choose to use both the above models for their software development requirements

Costs: While the above elements prepare an enterprise to extend mobility to employees, its indiscriminate use can lead to exorbitant telecom bills, which can put CXOs in a dilemma over long-term sustainability. Thus, enterprises need to closely monitor, preferably in real-time, employee telecom bills. Enterprises need to select the optimum mobile plan based on employee requirements and usage. Moreover, implementing an enterprise-wide mobility plan from the onset can allow organizations to negotiate a more cost-effective telecom contract.

APPLICATIONS FOR ENTERPRISE M.1 AND BEYOND

The true power of enterprise mobility is realized only when enterprise devices are coupled with the most relevant business applications. These software solutions enable enterprises to achieve tangible benefits in terms of cost, employee productivity, and enterprise efficiency. In India, e-mail is currently the most used mobility application in enterprises, followed by collaboration tools (mainly instant messaging and conferencing applications) and other traditional applications. Advanced applications such as unified communications and mobile point-of-sale (MPOS) solutions have still not become a priority for enterprises in India. Figure 3 below shows the most used mobile applications by enterprises in India at the current time.

Prepared by Springboard Research for Salesforce.com 9

Figure 3
Source: Springboard Research Survey; May 2011

Going forward, enterprises will require that more than just e-mails, instant messages, contacts, and calendars be available via mobile devices. However, costs and decision on which applications to mobilize hinders implementation of the enterprise mobile strategy. Springboard Research suggests the below roadmap to help enterprises achieve mobility while keeping upfront investments under control. Always Connected Automated Workforce
M.1
Conventional SFA ERP CRM M.1 UC LBS BI

Mobility Roadmap Towards Pervasive Mobility

Pervasive Mobility
M.3

M.2

Conventional

M.2 MPOS SNS FMS HRMS

E-mail DMS Messaging Calendar Corporate Address Book

*An illustrative model for informational purposes only; may not be applicable to every enterprise Source: Springboard Research; May 2011

Chart 3

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Conventional Mobility
These are the most prevalent and basic applications that have been mobilized to date. Although these are essential, enterprises need to look beyond them to business process applications. This leads us to the Enterprise M.1 phase.

Enterprise M.1 Automated Workforce

An Enterprise M.1 will need to mobilize with the following key applications: Document Management Systems (DMS) Field Force Automation (FFA) Salesforce Automation (SFA) Customer Relationship Management (CRM) Enterprise Resource Planning (ERP)

These are critical applications that integrate internal processes and client-facing resources. They allow mobile workers to minimize paperwork, reduce back-to-office visits, improve productivity, and achieve higher sales closing ratios by simplifying and automating their day-to-day processes.

Enterprise M.2 Always Connected

An Enterprise M.2 will need to mobilize with the following key applications: Unified Communications (UC) Location-based Services (LBS) Business Intelligence (BI)

These applications extend anytime, anywhere, any device real-time communication and collaboration capabilities to employees. Enterprises can leverage LBS to track vehicles and employees in real-time, while information can be extracted, analyzed and reported using BI. This will help to break organizational silos and enterprises will eventually benefit from increased synergies.

Enterprise M.3 Pervasive Mobility

An Enterprise M.3 will need to mobilize with the following key applications: Mobile Point-of-Sale (MPOS) Social Networking Services (SNS) Financial Management System (FMS) Human Resource Management Systems (HRMS)

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This is the advanced stage of a mobile enterprise, which integrates function-specific applications. These applications enhance brand image and facilitate efficient administration of internal operations such as finance and human resources. Incorporating these applications into the enterprises implementation strategy will achieve enterprise- wide mobility. Also, the impact of social networks cannot be understated. As mentioned earlier, social networking sites such as Facebook and LinkedIn have more than 25 million and 9 million users respectively from India as of early 2011. Springboard Research estimates that the number of online social network users in India will grow to 55 million by the end of 2011, while the number of mobile social network users in India is expected to reach around 62 million by 2014 due to reduced smartphone costs and 3G broadband availability. Thus, enterprises need to encourage their employees to increasingly expand their presence on these sites while implementing a formal social networking policy.

INDIA, INC. AND ENTERPRISE MOBILITY FROM INDIFFERENCE TO AWARENESS AND MASS ADOPTION BY 2015
Traditionally, Indian enterprises have not been proactive in embracing mobility, due to limited budgets, knowledge and awareness. Enterprises have been indifferent about including mobility as part of their strategy, planning, and processes. In 2009, less than 7% of mobile workers in India used a smart mobile device. However, due to dynamic economic conditions and rigorous business requirements, CXOs are increasingly becoming aware of mobility and are even willing to implement it within their organizations. We expect nearly one-fourth of Indias mobile workforce to use a smart mobile device by 2011. Furthermore, although enterprise mobility usage is improving, currently mobility in India is restricted to e-mails and messaging. Thus, using our Roadmap to Pervasive Mobility, India lies between the phases of conventional mobility and M.1. Going forward, this trend will change rapidly and Springboard Research believes that India, Inc. will undergo a mobile revolution over the next four years and move steadily toward M.3. Furthermore, smart mobile devices will find their way to nearly two-thirds of the countrys mobile workforce by 2015.

FINAL TAKEAWAYS
Springboard Research recommends the following areas for CXOs in India to consider for their migration path to a mobile enterprise:

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Embrace mobility within the organization as it is increasingly becoming a part of the new de-facto working culture. In India, long working hours are exposing employees to various lifestyle diseases such as heart attack, depression, and insomnia at an early age. Also, divorce rates have rapidly risen in the country among enterprise workers. Thus, employees will eventually start leveraging mobile enterprise solutions to achieve a better work-life balance. This will have a positive impact for companies too as employees become more responsive and productive.

Extend enterprise mobility to employee-owned devices as well, albeit, with formal policies and regulations in place. The boundary between enterprise-liable and employee-liable mobile devices has blurred, especially due to the burgeoning increase of smart mobile devices in India. We estimate that nearly 65% of Indias enterprise mobile workers will own a smart mobile device by 2015, nearly a four-fold increase over 2010.

Formalize a holistic enterprise mobility strategy to ensure timely implementation. This can be achieved by following Springboard Researchs 5C approach (chart 2 above). Currently, the majority of enterprises in India do not have a formal strategy in place and thus are not able to fully realize the benefits of enterprise mobility.

Select the right set of applications to be mobilized as this will determine the success of mobility for the organization. CXOs can leverage Springboard Researchs phased implementation plan to achieve pervasive mobility (chart 3 above). Currently in India, most enterprises are still in the conventional mobility phase with e-mail as the most used mobile application.

Constantly evolve the enterprise mobile strategy to encompass new devices, applications, and requirements of employees/partners/clients. This will also be required as enterprises grow in size and expand around the world. Thus, CXOs must view mobility strategically from a long-term perspective.

Prepared by Springboard Research for Salesforce.com 13


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