~$economic impact of blackberry devices 2

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September 2009

Economic Impact Of A BlackBerrySolution In North AmericanEnterprisesA Study Of The Adoption And Total EconomicImpact (TEI) Of BlackBerry At EnterpriseOrganizations

A commissioned study conducted by Forrester Consulting on behalf ofResearch In Motion (RIM)


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Economic Impact Of A BlackBerry Solution In North American Enterprises

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Executive SummaryIn September 2008 Research In Motion (RIM) commissioned Forrester Consulting to examine thetotal economic impact and potential return on investment (ROI) enterprises can realize by deploying

mobility solutions using BlackBerry smartphones and BlackBerry Enterprise Server software.1

Forrester defines a BlackBerry enterprise solution as consisting of both BlackBerry smartphonesand the BlackBerry Enterprise Server which together deliver a range of benefits to the organization.BlackBerry smartphones are mobile handheld devices that enable companies to deploy a variety ofwireless voice and data applications including push e-mail, wireless calendaring, voice, textmessaging, multimedia applications, and Web browsing. The BlackBerry Enterprise Server ismobile middleware software that provides a secure wireless gateway for BlackBerry devices andconnects to enterprise network software to redirect emails and synchronize information betweendesktop and mobile software. Enterprises are in various stages of deploying BlackBerry enterprisesolutions and mobile applications to improve the productivity of mobile employees within theirorganizations.

To quantify the total economic benefits and impact of deploying BlackBerry solutions in enterprise

organizations Forrester used a multi-faceted research approach including quantitative surveys andqualitative discussions with mobility decision makers to determine the range of economic costs,benefits and ROI impacts of deploying BlackBerry enterprise solutions. Sources of information usedto calculate the TEI ranges included: 1) quantitative interviews with 150 IT and mobile decisionmakers working in enterprises headquartered in North America with a minimum of 1,000employees; 2) qualitative interviews with mobility decision maker stakeholders; 3) in depthdiscussions with enterprises that have deployed BlackBerry smartphones, and 4) Forresterknowledge and expertise related to enterprise mobility trends and initiatives in North America.

Key FindingsForrester used results from this study to categorize enterprises into three BlackBerry mobilesolution maturity stages: reactive deployment, proactive deployment, and integrative deployment.Key factors driving an organizations maturity stage include the breadth of BlackBerry smartphonedeployment across employees in the organization and the range of mobile applications thecompany is deploying. Reactive stage organizations deploy BlackBerry smartphones to CXOs,managers, and sales personnel, and implement basic mobile applications such as email, calendar,and personal information management (PIM). Organizations in the proactive stage deployBlackBerry smartphones and mobile applications to a broader range of employees includingcustomer service and support and IT personnel in addition to the executives and sales personnel.Companies in the integrative deployment stage view mobility solutions as key strategic initiativesand have widely deployed BlackBerry smartphones and mobile solutions to a broad array ofemployees in the enterprise.

Forrester also created a calculator tool to help organizations identify which mobile solution maturitystage they are in and to quantify the key productivity benefits, costs, and ROI analysis associatedwith deploying BlackBerry solutions. Key results from this study include:

Employees in the sales, field service and executive management roles achieve thelargest increases in productivity. BlackBerry solution deployment and mobileapplications enhance the productivity of a wide range of employees in the organization.Results from this study show that sales force personnel, field service workers, andexecutive management achieve the greatest productivity increases each week usingBlackBerry devices. Productivity benefits range from saving 1 to 2 hours per week for sales,field service, and executive managers in reactive organizations, to improving productivity by13 to 21 hours per week for sales personnel in integrative deployment stage enterprises.


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Enhanced business efficiency benefits account for the majority of BlackBerrysolution deployment benefits across all maturity stages. We define business efficiencybenefits as improved employee productivity and increased employee satisfaction. Theseproductivity benefits vary depending on the type of employee using the BlackBerry device,the range of mobile applications deployed over these devices, and the maturity deployment

stage of the organization Business efficiency benefits account for the vast majority ofbenefits associated with BlackBerry solution deployment across all stages of the maturitymodel. More specifically, business efficiency benefits account for more than 75% of thebenefits achieved in reactive stage organizations, 68% of proactive stage benefits, andapproximately 60% of business benefits in integrative stage organizations.

Mobile security benefits are a key benefit enterprises achieve from deployingBlackBerry solutions. Mobile security benefits from BlackBerry solution deploymentincluding better corporate regulatory compliance and reduced cost to maintain mobiledevice security account for 20% to 30% of total benefits. Regulatory compliance benefitsare the result of creating audit trails to adhere to government and industry regulations (e.g.SOX, HIPAA, PCI). Reduced security costs are achieved by avoiding BlackBerrysmartphone security maintenance costs and reducing security breach issues when devices

are lost or stolen.Security benefits are also due to the inherent security components of theBlackBerry Enterprise Server. These security benefits become increasingly important ascompanies evolve to more advanced mobile maturity stages because a greater amount ofproprietary and sensitive corporate information is deployed over BlackBerry smartphones.

Voice and data plan costs account for the majority of total costs across all maturitystages. Interviews with existing BlackBerry customers and surveys of North Americanenterprise organizations show that the monthly price of voice, data, and combined voiceand data plans is standard across enterprise organizations. The majority of costsassociated with owning BlackBerry smartphones are from cellular voice and/or data plans,which account for up to 75% of the total costs in reactive organizations, and at least 58% oftotal costs in integrative organizations.

The ROI range improves dramatically for each BlackBerry solution maturity stage..CXOs in enterprise organizations are putting intense focus on justifying mobile device andsolution investments based on the ROI ratios and timelines. Results of the this TEI studyshow that the three year risk adjusted ROI for each deployment stage improvessignificantly at each stage. The three year risk adjusted ROI for each stage of the mobilematurity model is: 560% to 827% in the reactive stage; 825% to 1,251% in the proactivestage, and 1,589% to 2,829% in the integrative maturity stage. These ROI benefits areachieved as enterprises expand their mobile device usage and application deploymentacross a wider group of enterprises in the organization.

Introduction

In September 2008 RIM commissioned Forrester Consulting to examine the TEI and potential ROIenterprises can realize by deploying BlackBerry smartphones and BlackBerry enterprise solutionsto employees. Forrester defines a BlackBerry enterprise solution as consisting of both BlackBerrysmartphones and BlackBerry Enterprise Server software, which together deliver a range of benefitsto the organization. BlackBerry smartphones enable companies to deploy a variety of wireless voiceand data applications to employees including push e-mail, wireless calendaring, voice, textmessaging, Web browsing, field service applications, customer service and support applications,expense management and others. The BlackBerry Enterprise Server is often a key component ofthese mobility solutions that provides a secure wireless gateway for BlackBerry devices andconnecting enterprise network software to redirect emails and synchronize information between


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desktop and mobile software. Companies are in various stages of deploying BlackBerry solutionsand mobile applications to improve the productivity of mobile employees within their organizations.

To quantify the total economic benefits and impact of deploying BlackBerry devices to employees,Forrester used a multi-faceted research approach including quantitative surveys and qualitative

discussions with mobility decision makers to determine the range of economic costs, benefits andROI impacts of deploying BlackBerry enterprise solutions. Sources of information used to calculatethese ranges include: 1) quantitative interviews with 150 IT and mobile decision-makers working inenterprises headquartered in North America with a minimum of 1,000 employees; 2) qualitativeinterviews with mobility decision-maker stakeholders; 3) in-depth discussions with enterprises thathave deployed BlackBerry smartphones; and 4) Forrester knowledge and expertise related toenterprise mobility trends and initiatives in North America..

BlackBerry Maturity Deployment Stages

Using the combined study results Forrester Research developed the BlackBerry Maturity Modelwhich categorized enterprises into three BlackBerry solution maturity stages: reactive deployment,proactive deployment, and integrative deployment. As a company expands the use of BlackBerrysmartphones and solutions across a wider range of employees in the enterprise and broaden thearray of mobile applications deployed over these devices, the companys BlackBerry maturity stagewill evolve. The maturity stage an enterprise is in depends on how evolved the organizations use ofBlackBerry smartphones and applications are throughout the organization. A brief description ofeach of these deployment stages is included below.

Reactive deployment stage: Enterprises in the reactive stage focus their BlackBerrysmartphone and solution deployments primarily on CXO executives, sales personnel, andmanagers who are road warriors. Mobile applications are primarily focused on email,calendar, and PIM. These reactive enterprises are followers when it comes to deployingnew mobile technology initiatives.

Proactive deployment stage: Organizations in the proactive stage deploy BlackBerry

smartphones and mobile solutions to a broader range of employees including not onlysenior executives, managers, and sales personnel, but also to personnel in the customerservice business units. These organizations are also likely to use more than one type ofmobile operating system platform to address the smartphone device and mobile solutionrequirements of various types of business users in the company.

Integrative deployment stage: Companies in the integrative deployment stage are themost progressive in their smartphone and mobile solution initiatives. These organizationsview BlackBerry smartphones and mobility solutions as key strategic initiatives. BlackBerrysmartphone deployment is wide reaching in these companies with deployment to a widevariety of employees including executive assistants, IT and finance personnel, andcustomer service agents, in addition to CXOs, managers, and sales force personnel.

Additional details showing the profile of the 150 respondents participating in the quantitative surveyare included in Appendix A.

Many North American Enterprises Use BlackBerry Smartphones

Over the past few years, the concept of mobility solutions for enterprises has gained momentum,and many enterprises are revisiting their mobile device and application usage to address the needsof an increasing number of mobile workers who can use these devices and applications to improveworker productivity and efficiencies.


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Enterprises identify expanding mobility support to employees as a top 10 telecompriority for the year. Nearly 35% of all enterprise respondents identified offering moremobility support such as supporting more mobile devices, deploying additional mobileoperating systems, and implementing more mobile applications for employees as a criticalor high priority in the coming year.2 We expect mobile priorities to continue to rise in

importance as new types of mobile devices make their way into the corporate environmentand force enterprises to develop and formalize their corporate strategy for dealing withmobile devices, applications, and the increasing number of employees who want to receivemobile device and application support from the corporation.

More than three quarters of North American enterprises support or manage theBlackBerry operating systems. The smartphone landscape in enterprises is quitefragmented with many different operating system vendors including BlackBerry, WindowsMobile, and Symbian. More recently iPhone, Android and Palm Pre have entered thegame. Most North American enterprises support more than one mobile operating system(see Figure 1). The BlackBerry operating system is the most commonly used in NorthAmerican enterprises, with more than 75% of enterprises supporting or managingsmartphones using the BlackBerry operating system. The Windows Mobile operating

system is also used by many North American enterprises, and approximately 50% of theseenterprises support more than one operating system.

Enterprises are moving beyond mobile email and calendar application deployment.Forresters Enterprise And SMB Networks And Telecommunications Survey results showthat adoption of wireless email or BlackBerry email is well on its way among NorthAmerican enterprises (see Figure 2). Mobile email is a widely available application inenterprises, and 78% of North American enterprises have already implemented or areexpanding their implementation of wireless email or BlackBerry email applications. Emailapplications tend to be deployed to senior-level executives, managers, and sales personnelwho are road warriors or are away from their desks often. We expect the next wave ofmobile application adoption to be driven by addressing the needs of mobile line-of-businessworkers. Examples of line-of-business employees include field service professionals, truck

and bus drivers, and emergency or critical support workers in the government setting.


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Figure 1: BlackBerry Devices Have A Strong Presence In North American Enterprises

Source: Forrester Research, Inc.


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Figure 2: Enterprises Are Broadening Mobile Application Deployment Beyond Email AndCalendaring

10%

15%

17%

18%

20%

21%

24%

25%

25%

62%

82%

Mobile p rinting

Location-based applications (e.g., asset tracking, GIS, AVL)

Enterprise asset management

Logistics applications

Customer-facing applications (e.g., application customers canuse)

Field service applications

Sales force applications

Inventory management

Emergency/critical response applications

Personalized contacts and calendar

Wireless email or BlackBerry

What are your firm's plans to implement or expand its use of thefollowing mobile applications? (implementing or expanding use)

Source: Enterprise And SMB Networks And Telecommun ications Survey, North America And Eu rope, Q1 2009

Base: 302 IT decision-makers with mobile decision au thority at North American en terprises with 1,000+ employees(multiple responses accepted)


Study Approach And TEI Methodology

Study ApproachThe approach to this study included primary qualitative and quantitative research as well asknowledge and expertise from Forrester reports related to enterprise mobility trends and adoptionfactors. The five sources of insight Forrester used for this study were:

1. Data from existing Forrester reports and studies related to overall enterprise mobility trendsand BlackBerry adoption among North American enterprises.

2. Interviews with RIM marketing executives and sales personnel to fully understand thepotential value proposition associated with deploying RIM/BlackBerry solutions.

3. In-depth interviews with eight North American enterprise organizations that have deployedand are currently using BlackBerry devices.

4. Online survey of 150 mobility decision makers in enterprises with 1,000 or more employeesheadquartered in North America. The survey focused on the current and future lifecyclecosts and benefits of BlackBerry device deployment to enterprise employees.

5. Based on results from the in-depth interviews, online survey results, and discussions withRIM executives, Forrester constructed a financial model and an interactive calculator tohelp enterprise organizations determine the ROI and total financial value of deploying


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BlackBerry devices to employees. This financial model identified a range of economiccosts, benefits, and ROI analysis of deploying BlackBerry enterprise solutions based oninput from quantitative surveys and qualitative discussions with mobility decision makers.

TEI MethodologyRIMselected Forrester for this project because of its industry expertise in mobility and ForrestersTEI methodology. TEI not only measures costs and cost reduction (areas that are typicallyaccounted for within IT) but also weighs the enabling value of a technology in increasing theeffectiveness of overall business processes.

TEI is a methodology developed by Forrester Research that enhances a companys technologydecision-making process and helps vendors communicate the value proposition of their productsand services to clients. The TEI methodology helps companies demonstrate, justify, and realize thetangible value of IT initiatives to both senior management and other key business stakeholders.

Using information from the in-depth interviews with enterprise organizations in North America andresults from the quantitative survey of 150 enterprise mobility decision makers in North America,

Forrester constructed a TEI framework to be used by enterprises with 1,000 plus employees thatare considering BlackBerry solution deployment. The objective of the TEI framework is to identifythe cost, benefit, flexibility, and risk factors that impact the investment decision. This framework wasused to model an interactive ROI calculator that can assist RIMs prospects and current customerswith evaluating the financial impact of deploying the BlackBerry solution in the organization. Theresults of this framework and analysis are detailed in this study.

Forrester employed four fundamental elements of the TEI methodology to model the BlackBerrysolution impacts:

1. Costs: Forrester included all direct and indirect costs to acquire, support and maintainBlackBerry smartphones and BlackBerry Enterprise Server solutions.

2. Benefits: Forrester quantified typical hard and soft benefits of deploying BlackBerrysmartphones and solutions among business users and IT executives.

3. Risk: Forresters analysis captures the uncertainty in the cost and benefits estimates toreflect challenges associated with large scale IT investments (e.g. BlackBerry solutiondeployment).

4. Flexibility: Forrester also evaluated potential financial investments in the form of expandeddeployment to gain business agility and other benefits at some additional cost.

Please see Appendix C for additional information on the TEI methodology.

Study DisclosuresThe reader should be aware of the following:

The study is commissioned by RIM and delivered by the Forrester Consulting group.

RIM reviewed the study results and provided feedback to Forrester. However, Forrestermaintains editorial control over the study and its findings, and does not accept changes thatcontradict Forresters analysis of the study results.


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The names and contact information for the eight in depth customer interviews wereprovided by RIM.

Forrester makes no assumptions regarding the potential ROI that other organizations willreceive. Forrester strongly advises readers to use their own estimates within the frameworkdescribed in this report to determine the appropriateness of investing in RIM or BlackBerrydevices.

This study is not meant to be used for competitive product analysis.

Cost and Benefit Definitions

Costs

A key component of the TEI methodology is identifying the costs and benefits associated withdeploying BlackBerry devices across the organization. A detailed description of each of the costsand benefits captured in the TEI analysis and calculator tool is included below (see Figure 3).

Figure 3: Costs Of BlackBerry Solution Deployment Captured In The TEI Analysis

Cost categoryReactive

deploymentstage

Proactivedeployment

stage

Integrativedeployment

stageCost drivers

BlackBerry EnterpriseServer

$48 $100 $45

Variances are d riven by the number of BlackBerryEnterprise Servers, whether the organization hasseparate testing, production, or back-up servers,the co st of each server, and th e maintenance fees.

BlackBerry smartphones $639 $739 $741Costs vary d ue to the n umber of BlackBerrysmartphones supported and corporate liable devicepolicy.

User support $66-$73 $71-$75 $171-$206User supp ort costs increase along with the numberof mobile ap plications deployed.

End user training $52-$77 $231-$254 $240-$289Costs d riven by the n umber of users and thenumber of mobile ap plications available to users.

Voice and data plans $2,363 $2,459 $2,079

Voice and data plans are the key driver of costs

across al l d eployment stages.

Mobility applications $0 $72 $193Costs driven by the number of mobile applicationsbeyond email

.Total three-year costper BlackBerry

smartphone

$3,168-$3,200 $3,672-$3,699 $3,470-$3,552

Average annual cost Per

BlackBerry smartphone$1,056-$1,067 $1,224-$1,233 $1,156-$1,184


Deployment strategies drive total BlackBerry Enterprise Server costs. BlackBerryEnterprise Server costs include the license fees, hardware and software costs for thesolution, the professional service fees, and labor costs related to BlackBerry EnterpriseServer implementation and ongoing maintenance. Companies use various BlackBerry

Enterprise Server deployment strategies which impact these costs. Some firms purchase aback-up server for each BlackBerry Enterprise Server in the production environment, whileother companies purchase separate testing and trial servers. Another option is to use amanaged BlackBerry Enterprise Server solution.

Voice and data plan expenses account for the vast majority of deployment costs.Between 59% and 75% of costs are due to voice and data expenses. These expensesinclude the monthly costs for cellular voice and cellular data plans for each BlackBerrysmartphone. These costs are also driven by the corporate liability policies for smartphones.


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Some companies pay for a certain percentage of these voice and data costs while othersallow employees to expense back these charges to the organization.

BlackBerry smartphone devices account for approximately 20% of total BlackBerrysolution deployment costs. Total BlackBerry solution deployment costs include theBlackBerry Enterprise server cost, the cost to purchase each device, the cost of internallabor or professional services to customize, configure, test, deploy, and train users, and thecost of mobile applications. A key variable driving BlackBerry smartphone costs is thepercent of these costs paid by the enterprise. Some enterprises pay for all of these devicecosts for employees while others are willing to subsidize a portion of these device costs.These smartphone expenses also include the cost of customizing, testing, configuring, anddeploying each of these smartphones.

Benefits

A wide range of benefits are achieved by deploying BlackBerry smartphones to employeesthroughout the organization. These benefits are categorized into enhanced business efficiency,security benefits, cost avoidance benefits, and workflow benefits. Definitions of specific benefitsachieved through BlackBerry smartphone and solution deployment, as well as key drivers impactingthese benefits are identified below (see Figure 4).

Enhanced business efficiencies are the primary benefits achieved throughBlackBerry deployment. BlackBerry devices enable workers to be more efficient andproductive in their daily work activities. These productivity benefits vary depending on thetype of employee using the BlackBerry device, the range of mobile applications deployedover these devices, and the maturity deployment stage of the organization (see Figure 5).For example sales professionals can improve weekly productivity by 1 to 2 hours per weekin a reactive deployment organization, 4 to 7 per week hours in a proactive organization,and 13 to 21 hours per week in an integrative organization. Significant productivity benefitranges are also achieved by field service and executive management personnel.

Addressing security benefits are important drivers of BlackBerry deployment. Manycompanies identify security benefits as key reasons for deploying BlackBerry devices.There are two types of security benefits: regulatory compliance benefits and reducedmobile security costs. Regulatory compliance improvements are calculated based onreducing time spent by employees on ensuring regulatory compliance through audit trailsand adhering to SOX, PCI, and HIPAA regulations. Reduced mobile security costs areachieved by reducing time spent maintaining mobile device security due to usingBlackBerry devices as opposed to other types of mobile operating systems.

Companies can achieve additional workflow benefits as a result of BlackBerrydevice deployment. As companies evolve their BlackBerry deployment initiatives acrossa range of employees in the organization and move to a more integrative deploymentstage, additional efficiency benefits can be achieved in certain workflow processes (see

Figure 6). For example IT personnel can improve performance by using BlackBerry devicesto resolve help desk requests more quickly and to increase the number of help deskquestions each staff member can address. In addition back office benefits are achievedwhen employees use BlackBerry devices to improve the efficiency and timeliness ofbooking, maintaining, and collecting payments on monthly account receivables.


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Figure 4: Business Efficiency, Security, and Cost Avoidance Benefit Definitions

Benefits Definition Key drivers

Enhanced

business

efficiency

Increased employeeproductivity

These benefi ts are determined by the number of hours ofimpro ved productivity each functional employee in the o rganization

achiev es by using BlackBerry smartphones. The benefitcalculati ons are also based on the FTE ho urs for emp loyees ineach empl oyee functional area that achieved these p roductivitygains.

Business efficiencies increaseas mo re mobile devicesand mo bile applications are dep loyed to addr ess the

needs o f various types of wor kers in the or ganization.

Increased employeesatisfacti on leading toreduced employeeturnover

These satisfactionben efits are calculated based on reductions inthe ann ual employee attrition rates. These attrition benefits aredue to the flexi bility that is provided to employees who have theability to work remotely and to access mobile applications throughBlackBerry smartphones.

Asth e number of emplo yees who use BlackBerrysmartph onesinc reases, the attrition rate should declinebecause emplo yees have th e flexibility to stay in contactwith the office while they are away from their d esk.

Security

benefits

Improved regulatorycompliance

Regulato ry compliance benefits are calculated by the reduction intime spen t by employees in en suring regulatory compliance bycreatin g audit trails and adhering to SOX, PCI, and HIPAAregulations.

Regulato ry compliance benefits willvar y depending onspeci fic vertical industry requirements (e.g., SOXrequir ements in financial services and HIPAA regulationsin healthcare).

Reduced mobile securitycosts

Reduced mobile security costs are based on the reduction in timespen t on maintaining the security of mobile devices in anorg anization due to using BlackBerry smartphones as opposed tooth er types of smartphoneo perating systems.

Mobile security benefits are based o n the n umber ofcon fidential corporate and customer records at risk andthe pr obability of a catastrophic event occurring that

jeop ardizes the confidentiality of those records.

Cost-

avoidance

benefits

Savings on hardwareand so ftware fees byusing a single devicevendor

Some enterp rises may standardize on one mobile operatingsystem and will only support employees who use thosesmartph one devices. Cost benefits are achieved because theorg anization does not need to replicate costs of managingmultipl e mobile operating systems or to use mobile d evice

management v endors to support a heterogeneous environment.

Efficien cies are achieved because these companies dono t need to duplicate investments in hardware andsoftware to s upport a multi-operating-system environment

Cost avoi dance of Wi-Fior hotspot connectivity

Benefits are calc ulated by determining the reduction in costsassoc iated with connecting to the Internet via a lapto p orminimi zing Wi-Fi connection costs at hotels or airports.

As more emplo yees use their BlackBerrysmartphones tocommunicate while they are at the ho tel, in airports, or atho t-spot locations, the Internet connectivity costs and Wi-Fi fees will d ecline.

Reduced staff overtimecharges

Some benefits can be achieved by avoiding overtime charges thatare not n ecessary due to employees being able to be moreefficien t during normal work hours.

Impro vements in employee productivity by usingBlackBerry smartphonesd uring normal office hours willhelp enterprises avoid paying overtime fees to workers.


Figure 5: Productivity Hours Achieved Per Week By Employees Using BlackBerry Devices

Functional area Reactive deploymentstage

Proactive deploymentstage

Integrative deploymentstage

Sales 1-2 4-7 13-21

IT 1 1-2 2.5-3.5

Admin/f inance/HR 0.5 0.5 0.5

Field service 1-2 4-6 5-10

Customer service 1 1 2-3

Supply chain 1 1 1

Executive management 1-2 4-5 4-8

Physical plant/security team 1 1 1



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Figure 6: Additional Workflow Benefits Can Be Achieved Through BlackBerry Deployment

Benefits Definition Key drivers

Workflowbenefits

Shorten sales cycle Shortened sales cycle benefits include the time saved through moreeffective in ternal communication and reducing delays in the proposaldevelo pment process. These benefits include the time spentaccessing p roduct experts, p ricing information, and legal review.

With improved communication, the abil ity to c ontactothers on the road, and reservationlessc onferencingcapabilities, the ti me to d evelop sales proposals may bereduced.

Improved IT performance IT personnelcan improve their performance using BlackBerrysmartphones to resolve help desk requests quickeran d increase theefficiency o f resolving issues and the n umber of help desk questionsthe IT staff can address.

The typ e of mobile applications developed for and usedby the IT o rgani zation, beyond email, drive these benefits.

Accelerate back- officesupport

Back-office benefits are achieved when employees use BlackBerrysmartphones to improve the efficiency and timeliness associated withbooki ng, maintaining, and c ollecting payments o n monthly accountreceivables.

Suppo rt staff with BlackBerry smartphonesr educe thetime requir ed for workflow authorization, which leads tofaster bill ing cycles an d quicker expense authorization.

Improv e field serviceManagement

Field service employees can decrease the number of h oursassociated with scheduling and dispatch as a result o f improvedavailability and status trackingthrough BlackBerry device usage.

Employ ees optimize co mmunication processes th atimpro ve the scheduling and dispatching of service staff,minimizing cost an d maintaining good customer service.

Improv ed resolution ofcustomer issues

Reduction in n umber of Level 1 and Level 2 customer service andsupport calls as a result of resolving customer issues more quicklyand efficiently

Enhan ced communication between customer serviceperso nnel and subject matter experts via BlackBerrysmartphones enables customer issues to be resolvedmore qui ckly,an d increases the number of issuesresolved.

Increase customerexperience and retention

BlackBerry smartphonesc an help improve customer experience bydecreasing the r esponse time of r esolving customer concerns anddecreasing the c orporate losses attributable to p oor customerservice.

Improv ed communication between customer service andsubject matter experts, th rough presence awareness, callforward ing, and other tools, enablescustomer issues tobe resolv ed quicklyan d improves customer retention.

Shorten time-to-market BlackBerry smartphones can help shortenthe project completion

time because BlackBerry smartphones improve c ommunicationamong employees in various groups in th e organization.

Improv ed communication among project teams reduces

pro ject completion time, which can decrease time-to-market for new products.

Improv e ability toaddres s and resolvecorp orate issues

Benefits are calculated based on the number of hours saved byusing BlackBerry smartphones to reach senior executives andresolve q uestions affecting revenue g eneration.

Improv ed communication by your o rganization's executiveteam improv es the ability to address and resolve pressingcorp orate issues and reduces the n eed for executives totravel to extern al sites and branch offices.

Hasten resp onse toph ysical security andplant incidents

Plant security benefits are achieved by using BlackBerrysmartphones to quickly identify plant security issues and reach amember of the security team to address physical security and plantincidents.

BlackBerry s martphones deployed to the p hysicalplan t/security team enable a company to shorten th e timeto add ress a plant security incident.


Profile Of Enterprises In Each BlackBerry Maturity

Deployment StageUsing study results Forrester constructed a TEI framework and calculator to help enterprisesidentify the costs, benefits, and ROI to deploying BlackBerry solutions and to determine whichphase of the BlackBerry Maturity Scale they are in. Based on the breadth of BlackBerry smartphoneand solution deployment, as well as on the types of mobile applications used by employees overthese devices, Forrester identified a three stage BlackBerry Maturity Scale. These three deploymentstages are: reactive, proactive, and integrative. For each maturity stage, a range of costs, benefitsand ROI analysis results was identified based on input from quantitative surveys and qualitativediscussions with mobility decision makers. A profile of the BlackBerry solution deployment andapplication initiatives of companies in each of these stages is included below.

Reactive Deployment StageEnterprises in the reactive deployment stage of maturity are in the early stages of BlackBerrysmartphone deployment. These organizations generally take a cautious, conservative view whenimplementing new types of technology (such as mobility solutions and applications) and may waituntil their competitors have deployed a new technology before implementing it in their organization.

The three-year ROI per BlackBerry smartphone in reactive-stage organizations is560% to 827% (see Figure 7). Reactive organizations deploy BlackBerry smartphonesprimarily to CXO-level executives, managers, and sales personnel who are often away fromtheir desks or are road warriors. The mobile applications used by workers in reactive


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organizations are primarily email, calendar, and PIM functionality. Future mobile devicedeployment initiatives will be conservative and driven by competitor activities as thesecompanies are considered to be followers when it comes to implementing new mobiletechnology initiatives.

Figure 7: ROI Analysis For A Reactive-Deployment-Stage Enterprise

Three-Year Risk-Adjusted ROI

560%


827%


Voice and data plan expenses account for a majority of reactive deployment costs.The three-year cost per device of reactive deployment companies is primarily driven byvoice and data plan expenses, which account for nearly 75% of total costs (see Figure 8).

The cost of BlackBerry smartphones account for about 20% of total costs. There are noadditional mobility application expenses included in reactive organization costs becausethese companies do not deploy mobility applications beyond basic email and calendaring.User support and end user training costs are also minimal, each accounting for about 2% ofoverall costs because training expenses and end user support requirements are minimal forthese basic, easy-to-use mobile applications.


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Figure 8: Detailed Cost Breakdown For Reactive Stage Deployment

$77$48$73

$52$48$66

$639 $639

$2,363 $2,363

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Low Range High Range

Voice and Data Plans

BlackBerry Smartphones

End User Training


User Support

Mobility Applications

Cost Category Three-Year Cost Per BlackBerrySmartphone

Percent of Total BlackBerrySmartphone Cost

BlackBerry Enterprise Server $48 1.5%BlackBerry Smartphones $639 20.2% - 19.9%User Support $66 - $73 2.1% - 2.3%End User Training $52 - $77 1.6% - 2.4%Voice and Data Plans $2,363 74.6% - 73.8%Mobility Applications $0 0%Total 3-Year Cost Per BlackBerrySmartphone

$3,168 - $3,200 -

Average Annual Cost Per BlackBerrySmartphone

$1,056 - $1,067 -

0% 0%


Business efficiency benefits account for approximately 80% of total benefits. Total

three-year business efficiency benefits per each BlackBerry device in reactive organizationsare $16,736 to $22,638 (see Figure 9). Employees achieving these business efficiencybenefits are primarily sales executives, field service, and executive managementprofessionals who are on the road or away from their desks most of the time. Employees ineach of these functional areas achieve productivity enhancements of 1 to 2 hours per weekby using BlackBerry devices.


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Figure 9: Benefit Breakdown For Reactive Stage Deployments


Proactive Deployment StageEnterprises in the proactive deployment stage are deploying BlackBerry devices to a broader rangeof employees in their organization. Employees using BlackBerry devices and mobile applications inthese companies include not only CXOs, managers, and sales professionals but also individuals inthe IT and customer service organizations.

The three-year ROI per BlackBerry smartphone for proactive-stage organizations is825% to 1251% (see Figure 10). Proactive organizations enable a wider range ofemployees to use BlackBerry smartphones. These employees include not only managers,CXOs, and sales professionals but also business unit personnel in the IT and customerservice and support organizations. These companies deploy two to three mobileapplications beyond email to address the functional requirements of these mobile businessusers.


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Figure 10: ROI Analysis For A Proactive-Deployment-Stage Enterprise


825%


1,251%


Voice and data plan expenses account for about 67% of proactive deployment costs.Voice and data plan expenses are two-thirds of the total costs associated with BlackBerrysmartphone deployment in proactive organizations (see Figure 11). The cost for BlackBerrysmartphones is 20% of these total costs. These organizations deploy up to two additionalmobile applications beyond email to address the mobility needs of business users. Mobileapplication development expenses are about 2% of total expenses for smartphones. Enduser training expenses increase to about 6% of total costs because proactive organizationsneed to invest more in training business units on how to use these new mobilityapplications.


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Figure 11: Detailed Cost Breakdown For Proactive Stage Deployment

Cost Category Three-Year Cost Per BlackBerry

Smartphone

Percent of Total BlackBerry

Smartphone CostBlackBerry Enterprise Server $100 2.7%BlackBerry Smartphones $739 20.1% - 19.9%User Support $71 - $75 1.9% - 2.0%End User Training $231 - $254 6.3% - 6.9%Voice and Data Plans $2,459 67.0% - 66.5%Mobility Applications $72 1.9%Total 3-Year Cost Per BlackBerrySmartphone

$3,672 -$3,699 -

Average Annual Cost PerBlackBerry Smartphone

$1,224 - $1,233 -


Business efficiency accounts for approximately 70% of total benefits in proactive

enterprises. The three-year business efficiency benefits for each BlackBerry smartphonein proactive organizations are between $23,798 and $33,877 (see Figure 12). Executivemanagement, sales professionals, and field service professionals achieve a minimum of 4hours of productivity benefits per week from using BlackBerry smartphones, with the upperrange of productivity benefits from 5 to 7 hours per week. Security benefits from improvedregulatory compliance and reduced mobile security costs are nearly 28% of proactiveorganization benefits. These significant security benefits are due to mobile applicationsusing proprietary corporate data and customer profile information to support the needs ofbusiness users.


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Figure 12: Benefit Breakdown For Proactive Stage Enterprises

Benefit category Three-Year Benefit PerBlackBerry Smartphone

Percent of Total BlackBerrySmartphone Benefit

Enhanced Business Efficiency $23,798 - $33,877 69.6% - 68.3%

Improved Regulatory Compliance $6,465 - $10,775 18.9% - 21.7%

Reduced Mobile Security Costs $3,157 - $3,946 9.2% - 7.9%

Workflow Benefits $507 - $724 1.5%

Cost Avoidance Benefits $276 0.8% - 0.6%

Total 3-Year Benefit Per BlackBerry Smartphone $34, 203 - $49,598 -

Average Annual Benefit Per BlackBerry Smartphone $11,401 - $16,533 -


Integrative Deployment StageCompanies in the integrative deployment stage are at the forefront of smartphone and applicationdeployment. These organizations view BlackBerry smartphones and enterprise mobility solutions askey strategic initiatives in their organization. They are proactively developing an overarching,corporate mobility strategy that uses one or two mobile platforms to support their mobile applicationrequirements.

The three-year ROI for each BlackBerry smartphone in integrative organizations is1589% to 2829% (see Figure 13). Integrative organizations view smartphones and mobileapplications as important strategic initiatives. The mobile applications implemented bythese organizations go well beyond email and PIM to include applications that addressmany different organizational business units. These companies often deploy mobilesolutions over more than one mobile operating system platform to support mobility solutionrequirements of employees in many business units. BlackBerry smartphones are deployed

broadly to many groups of employees, including executive assistants, IT and financepersonnel, and customer service agents, in addition to CXOs, managers, and sales forcepersonnel.


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Figure 13: ROI Analysis For Integrative-Deployment Stage Enterprises


1589%


2829%


Voice and data plans account for about 59% of integrative-stage deployment costs.In integrative-stage organizations, voice and data plan expenses still account for thegreatest percent of total costs (see Figure 14). These organizations deploy four or moreadditional mobile applications beyond email to address the needs of a variety of businessusers in the organization. Due to the deployment of a wide range of mobile applications, theend user support requirements increase to approximately 5% of total costs per smartphone.End user training expenses increase to about 8% of total costs because integrativeorganizations need to train BlackBerry smartphone users on how to use these various

types of new mobility applications. BlackBerry smartphone device costs are about 20% oftotal costs.


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Figure 14: Detailed Cost Breakdown For Integrative Stage Deployment

Cost Category Three-Year Cost PerBlackBerry Smartphone

Percent of Total BlackBerrySmartphone Cost

BlackBerry Enterprise Server $45 1.3%BlackBerry Smartphones $741 21.4% - 20.9%User Support $171 - $206 4.9% - 5.8%End User Training $240 - $289 6.9% - 8.1%Voice and Data Plans $2,079 59.9% - 58.5%Mobility Applications $193 5.6% - 5.4%Total 3-Year Cost Per BlackBerry Smartphone $3.470 -$3,552 -Average Annual Cost Per BlackBerry Smartphone $1,156 -$1,184 -


Business efficiency accounts for 59% to 64% of total benefits in integrative firms.

The three-year business efficiency benefits for each BlackBerry smartphone in integrativeorganizations are between $35,506 and $64,780 (see Figure 15). A wide range ofemployees from many different business units use BlackBerry smartphones and mobileapplications to improve their productivity. These benefits increase dramatically asenterprises expand the number of mobile applications deployed over BlackBerrysmartphones to address the needs of these business users. For example, salesprofessionals can improve their productivity by between 13 and 21 hours per week, fieldservice professionals can improve their productivity by 5 to 10 hours per week, andexecutive management professionals can improve productivity by between 4 and 8 hoursper week. Additional productivity benefits are gained by IT, customer service, and supplychain personnel. Security benefits also increase to nearly 30% of integrative organizationbenefits.


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Figure 15: Benefit Breakdown For Integrative Stage Enterprises

Benefit category Three-Year Benefit PerBlackBerry Smartphone

Percent of Total BlackBerrySmartphone Benefit

Enhanced Business Efficiency $35,506 - $64,780 59.2% - 63.8%

Improved Regulatory Compliance $13 ,505 - $19,293 22.5% - 19.0%

Reduced Mobile Security Costs $5,112 - $7,303 8.5% - 7.2%

Workflow Benefits $5,310 - $9,697 8.9% - 9.5%

Cost Avoidance Benefits $541 0.9% - 0.5%

Total 3-Year Benefit Per BlackBerry Smartphone $59,974 - $101,614 -

Average Annual Benefit Per BlackBerry Smartphone $19,991 - $33,871 -


Comparison Across Mobile Maturity StagesA comparison of the study results and profiles for each stage of the BlackBerry Maturity Modelhighlights key differences in the ROI, costs, and benefits for each deployment stage (see Figure16).

Figure 16: ROI Analysis Comparison Across BlackBerry Maturity Stages

BlackBerry deployment

maturity stage

Reactivedeployment

stage

Proactivedeployment

stage


stage

Percent of employees with smartphones 19% 47% 89%

Percent of smartphone users withBlackBerry smartphones 48% 57% 73%

Number of functional areas withapplications beyond email

0 to 1 2 to 3 4-plus

Calculated mobility maturity score (0 to100%)

30% 58% 73%

Three-year risk-adjusted ROI 560% to 827% 825% to 1589% to


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1251% 2829%

Three-year net present value (NPV)costs per BlackBerry smartphone

$3,168 to $3,200$3,671 to$3,698

$3.470 to$3,552

Three-year NPV benefits perBlackBerry smartphone

$20,919 to$29,371

$34,203 to$49,598

$59,974 to$101,614


The three-year risk-adjusted ROI range improves for each deployment stage ranging froma low of 560% in the reactive deployment stage to a high of 2829% in integrative-stageorganizations. The variation in ROI is driven mainly by penetration of BlackBerrysmartphones throughout the workforce and the maturity and sophistication of the businessmobility applications running on these smartphones.

The three-year total cost of ownership (TCO) of BlackBerry smartphones increases asenterprises move up the BlackBerry Maturity Model deployment stages (see Figure 17).The three-year total cost per BlackBerry smartphone ranges from $3,168 in the reactivedeployment stage to $3,552 in the integrative deployment stage. Voice and data plan costsare the dominant drivers of costs across all stages of deployment. The cost of BlackBerryEnterprise Servers varies in each stage depending on organizational policies. For example,some organizations require the purchase of a backup server for each production serverwhile other enterprises have separate testing servers.

Figure 17: Costs Category Comparisons Across BlackBerry Maturity Stages

Cost categoryReactive

deploymentstage

Proactivedeployment

stage


stageCost drivers


$48 $100 $45

Variances are d riven by the number of BlackBerryEnterprise Servers, whether the organization hasseparate testing, production, or back-up servers,the co st of each server, and th e maintenance fees.

BlackBerry smartphones $639 $739 $741Costs vary d ue to the n umber of BlackBerrysmartphones supported and corporate liable devicepolicy.

User support $66-$73 $71-$75 $171-$206User supp ort costs increase along with the numberof mobile ap plications deployed.

End user training $52-$77 $231-$254 $240-$289Costs d riven by the n umber of users and thenumber of mobile ap plications available to users.

Voice and data plans $2,363 $2,459 $2,079Voice and data plans are the key driver of costsacross al l d eployment stages.

Mobility applications $0 $72 $193Costs driven by the number of mobile applicationsbeyond email

.Total three-year costper BlackBerry

smartphone

$3,168-$3,200 $3,672-$3,699 $3,470-$3,552

Average annual cost Per

BlackBerry smartphone$1,056-$1,067 $1,224-$1,233 $1,156-$1,184


However, the benefits achieved by deploying BlackBerry smartphones and associatedmobile applications to support the needs of business users far outweigh the costs. Thethree-year benefits per device range from $20,919 in the reactive integration stage to$101,614 in the integrative deployment stage (see Figure 18).


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Figure 18: Benefit Category Comparisons Across BlackBerry Maturity Deployment Stages

Benef it categoryReactive

deploymentstage

Proactivedeployment

stage


stageBenef it drivers

Enhanced business

efficiency$16,736-$22,638 $23,798-$33,877 $35,506-$64,780

Business efficiencies increase as more mobile

appl ications are d eployed across the o rganization.Improved regulatory

compliance$2,336-$4,672 $6,465-$10,775 $13 ,505-$19,293

Regulatory compliance benefits may varydepen ding on v ertical industry requirements.

Reduced mobile security

costs$1,675-$1,861 $3,157-$3,946 $5,112-$7,303

Security benefits are based on number of recordsat risk an d the p robability of a catastrophic event.

Workflow benefits $76-$103 $507-$724 $5,310-$9,697Work flow benefits increase as BlackBerry mobileappl ications are d istributed in mo re business units.

Cost-avoidance benef its $95 $276 $541Cost-avoidance benefits are primarily driven bydecreased In ternet connectivity and Wi-Fi fees.

Total three-year benef itper BlackBerry smartphone

$20,919-$29,371 $34, 203-$49,598 $59,974-$101,614

Average annual b enefit perBlackBerry smartphone

$6,973-$9,790 $11,401-$16,533 $19,991-$33,871


Business productivity and mobile security benefits account for the majority of benefits in alldeployment stages. Business productivity benefits range from 59% in integrativeorganizations to 80% in reactive organizations. These business efficiency benefits varydepending on the number of hours of improved productivity each employee functional areaachieves by using BlackBerry smartphone as well as the number of employees in eachfunctional area who have BlackBerry smartphones. Benefits achieved from security costreductions and regulatory compliance improvements account for between 20% and 31% ofthe total benefits (see Figure 19).


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Figure 19: Detailed Benefits Achieved By BlackBerry Deployment

Benefit categoryReactive

deployment

stage

Proactivedeployment

stage


stageEnhanced business

efficiency

Increased productivit y $16,698-$22,591 $23,748-$33,823 $35,438-$64,712

Increased employee satisfaction $38-$47 $50-$55 $68

Improved regulatory compliance $2,336-$4,672 $6,465-$10,776 $13 , 505-$19,293

Reduced mobile security costs $1,675-$1,861 $3,157-$3,946 $5,112-$7,303

Workflow benefits

Shortened sales cyc le $48-$65 $362-$515 $5,071-$9,261

Improved IT performance $0 $0-$1 $1

Accelerated back-office s upport $0 $7-$11 $2-$4

Improved field service management $27-$37 $41-$59 $108-$197

Improved resolution of customer issues $0 $61-$88 $20-$36

Increased customer experience $0 $24-$34 $60- $110

Shorten time-to-market $0 $10-$14 $42-$77

Improved ability to resolve issues $0 $1 $0-$1

Faster security response $0 $2-$3 $6-$10

Cost-avoidance

benefits

Multivendor cost avoidance $0 $0 $0

Internet connectivity cost avoidance $95 $117 $224

Reduced staff overtime charges $0 $159 $317

Total three-year benefit per BlackBerry smartphone $20,919-$29,371 $34,203-$49,598 $59,974-$101,614


Additional workflow benefits can be achieved as business users implement BlackBerrysmartphones and mobile applications to help them complete their work tasks quicker andmore efficiently. In the reactive deployment stage workflow benefits are minimal becauseBlackBerry smartphones are not widely deployed to employees. However, as enterprisesmove up the mobile maturity stage, workflow benefits are achieved by a variety of differenttypes of business users. For example IT and customer service personnel can completesome of their help desk calls more quickly and efficiently by using their BlackBerrysmartphones, or sales executives may be able to close a deal faster. The workflow benefitof each of these transactions by leveraging BlackBerry solutions varies significantly. Forexample, the monetary benefit of completing an IT call through leveraging BlackBerrysolutions is significantly less than the revenues generated from using BlackBerrysmartphones and mobile applications to shorten the sales cycle timeline and close a newsales deal.

Study Conclusions

Forresters in-depth interviews with current BlackBerry customers and the extensive survey of 150enterprise mobility decision-makers in North American headquartered organizations yielded severalkey study findings:

Enterprise organizations can realize significant benefits in the form of enhanced businessefficiency, improved regulatory compliance, and reduced mobile security costs by deploying


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BlackBerry smartphones and the BlackBerry Enterprise Server to employees. Thesecompanies can also realize various additional workflow benefits, depending on whichfunctional areas within an organization are equipped with BlackBerry smartphones and onthe number of, and sophistication of, mobility applications available over these smartphonedevices. The three stages of BlackBerry device maturity deployment are: reactive,

proactive, and integrative.

The financial analysis included in this study provides organizations with a model andcalculator tool that can be used to evaluate the value achieved from deploying BlackBerrysmartphones. Based on results from this study, Forrester calculated a three-year risk-adjusted ROI for each stage of the BlackBerry deployment model. The ROI achievedthrough BlackBerry deployment ranges between 560% in reactive organizations to morethan 2800% for those integrative-stage enterprises that are leveraging BlackBerrysmartphones and BlackBerry enterprise solutions strategically as a vital businessenablement tool throughout the organization. Within each of these deployment stages,there are ROI ranges that are based on the results from the quantitative and qualitativesurvey results.

Several factors contribute to the difference in ROIs across each deployment stage. Thesefactors include the number of BlackBerry Enterprise Servers needed, time and effort to trainand support BlackBerry smartphone users, and costs to develop, maintain, and supportmobility applications for BlackBerry smartphones. In general, more mature organizationsexperience greater costs in terms of support and mobility applications. Despite this, themajor cost components for all deployment stages are voice and data plan costs, whichaccount for between 59% and 75% of the total costs.

The key benefits achieved by BlackBerry solution deployment are focused on improvingemployee business efficiency. These productivity improvements vary depending on thetype of worker using BlackBerry smartphone devices and the range of mobile applicationsdeployed over these smartphones. More specifically, employees in executive management,sales force, and field service achieve the greatest productivity improvements as a result ofusing BlackBerry smartphones. IT and customer service personnel also achieve significantproductivity benefits from BlackBerry smartphone devices and mobile solutions.


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Appendix A: Profile Of Quantitative SurveyRespondentsA key component of the study conducted by Forrester on behalf of RIM is the quantitative online

survey of 150 IT and mobility decision-makers at enterprises with 1,000-plus employees withheadquarters in North America (i.e., US or Canada). The purpose of this online survey was toexamine the current and future life-cycle costs of a RIM/BlackBerry enterprise environment. Thesesurvey respondents included IT administrators, mobile administrators, and senior IT managementwith a title of director or above (e.g., senior manager, director of IT, SVP of IT, or CIO/CTO).

Survey respondents were personally responsible for mobile device initiatives in their organization,including: recommending smartphones and/or wireless carriers/plans, working with business unitexecutives to identify mobile solutions for employees, developing mobile strategy and policy,managing costs related to mobile devices and service plans, administering mobile servers, anddeveloping or specifying applications for mobile devices. Additional profile details of the onlinesurvey respondents are included in Figure A1 and Figure A2 below.

Figure A1: Profile Of 150 North American Enterprise Survey Respondents

Reactivedeployment

stage

Proactivedeployment

stage


stage

Average number of smart mobile devicessupported

4,155 9,118 17,679

Average number of BlackBerrysmartphones supported

1,981 5,192 12,966

Average number of BlackBerryEnterprise Servers supported*

16 33 41

Average number of functional areasusing mobile applications on BlackBerrysmartphones

1 3 5

Average BlackBerry maturity scorecalculated by the TEI tool

25% 50% 78%

*Note: There is a wide range of BlackBerry Enterprise Servers used because enterprises use a variety ofdeployment strategies. Some have separate servers for test, production, and backup, and some of theseBlackBerry Enterprise Servers have a minimal number of devices on them during certain testing and productiontimes.



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Figure A2: Survey Respondents Are Distributed Across Industry Vertical Markets AndMobile Maturity Deployment Stages

ReactiveDeployment

Stage

ProactiveDeployment

Stage

IntegrativeDeployment

Stage

Total

Chem and petroleum manufacturing 1% 2% 1% 4%

Consumer products manufacturing 5% 6% 1% 12%

Financial services 6% 9% 4% 19%

Government 1% 2% 0% 3%

Healthcare 0% 3% 0% 3%

High-tech products manufacturing 1% 7% 2% 10%

Industrial products manufacturing 1% 1% 0% 3%

Insurance 1% 3% 0% 4%

Media, entertainment, and leisure 1% 5% 0% 6%

Primary products manufacturing 1% 1% 1% 3%

Professional services 1% 8% 3% 13%

Public services 1% 1% 0% 2%

Retail 1% 5% 0% 5%

Telecom carriers 1% 3% 1% 5%

Transportation and logistics services 1% 3% 0% 4%

Utilities 1% 1% 0% 1%

Wholesale 1% 2% 0% 3%

Grand Total 27% 61% 13% 100%



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Appendix B: Total Economic Impact OverviewTotal Economic Impact is a methodology developed by Forrester Research that enhances acompanys technology decision-making processes and assists vendors in communicating the valueproposition of their products and services to clients. The TEI methodology helps companiesdemonstrate, justify, and realize the tangible value of IT initiatives to both senior management andother key business stakeholders.

The TEI methodology used in this study uses four components to evaluate investment value:benefits, costs, risks, and flexibility.

Benefits

Benefits represent the value delivered to the user organization IT and/or business units by theproposed product or project. Often, product or project justification exercises focus just on IT costand cost reduction, leaving little room to analyze the effect of the technology on the entireorganization. The TEI methodology and the resulting financial model place equal weight on themeasure of benefits and the measure of costs, allowing for a full examination of the effect of the

technology on the entire organization. Calculation of benefit estimates involves a clear dialogue withthe user organization to understand the specific value that is created. In addition, Forrester alsorequires that there be a clear line of accountability established between the measurement and

justification of benefit estimates after the project has been completed. This ensures that benefitestimates tie back directly to the bottom line.

Costs

Costs represent the investment necessary to capture the value, or benefits, of the proposed project.IT or the business units may incur costs in the form of fully burdened labor, subcontractors, ormaterials. Costs consider all the investments and expenses necessary to deliver the proposedvalue. In addition, the cost category within TEI captures any incremental costs over the existingenvironment for ongoing costs associated with the solution. All costs must be tied to the benefitsthat are created.

Risk

Risk is the third component within the TEI model; it is used as a filter to capture the uncertaintysurrounding different cost and benefit estimates. For the purpose of this analysis, Forrester risk-adjusts cost and benefit estimates to better reflect the level of uncertainty that exists for eachestimate. If a risk-adjusted ROI still demonstrates a compelling business case, it raises confidencethat the investment is likely to succeed because the risks that threaten the project have been takeninto consideration and quantified.

The TEI model uses a triangular distribution method to calculate risk-adjusted values. To constructthe distribution, it is necessary to first estimate the low, most likely, and high values that could occurwithin the current environment. The risk-adjusted value is the mean of the distribution of thosepoints. The risk-adjusted numbers should be taken as realistic expectations, since they represent

the expected values considering risk.

The components of risk considered in this analysis are:

Implementation risk:the risk that the proposed technology investment may deviate fromoriginal resource requirements needed to implement and integrate the investment into theenvironment. This could occur if the required resources for project implementation areinadequate or the technology causes unforeseen disruption to the environment.Implementation risk generally applies to cost estimates within an investment.


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Impact risk:the risk that the business or technology needs of the organization may not bemet by the technology investment. If the technology is an internal-facing investment, thiscould occur if the end user does not change his or her behavior or if the organization lacksthe political will to change its behavior. If the technology is externally focused, then potentialrisks could include lower than anticipated use by customers or external groups. Impact risk

generally applies to benefit estimates within an investment.

Strategic risk:the risk that the proposed technology investment may not meet thestrategic goals of the organization. This could occur if the strategic goals are not clear orunderstood or if the strategic goals change or evolve after the investment is approved.

Measurement risk:the risk that there is not an effective process for measuring andtracking cost and benefit estimates after project implementation. This could occur if theorganization has not set specific baselines for improvement or it has not been able to tiespecific estimates to the organizations bottom line.

From an implementation perspective, the following risk factors could potentially affect the original

variables used to construct the cost estimates:

Technology:the risk that the project will not fit into the current technology environment. Asa result, an organization may have to incur additional costs in order for the originalinvestment to be realized. For example, an organization decides to implement an assetmanagement solution not realizing that it has inadequate server requirements to fully rollout the investment. This could potentially cause an increase in costs for the portal to meetthe organizations original expectations.

Vendor:the risk that a chosen vendor will fail to deliver needed features and functionalityor components in a usable state in a timely basis. This would also include the possibilitythat the vendor may not support a given technology, leading in turn to additionalmanagement and support costs. For example, an asset management vendor is acquired

forcing organizations to renegotiate their maintenance contracts over time. This wouldcause the potential for management and maintenance costs to increase.

Education:the risk that IT personnel do not have sufficient skills to implement and run theproposed technology. In addition, this risk includes the likelihood that external serviceproviders do not have adequate skills to implement the proposed technology solution. Forexample, an organization decides to implement an asset management solution with theassumption that the existing IT organization has sufficient skills to implement and managethe new technology. If the skills are insufficient, this could cause an increase in theimplementation costs of the new technology.

From animpact perspective, the following risk factors could potentially affect the original variablesused to construct the benefit estimates:

Culture:the risk that users are adverse to change and ultimately do not change theirbehavior. For example, mismatching tools and users will decrease potential benefits.

Training:the risk that the users will be insufficiently trained to derive any benefit from thenew solutions/tools. This would lead to potentially lower adoption of the proposedtechnology solution. For example, an organization may not have adequately providedtraining during the rollout of an asset management solution. Ineffective or inadequatetraining will cause lower adoption of the new system than anticipated.


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Market:the risk that the market will change between project definition and benefitsrealization, decreasing the usefulness of the system or potentially rendering it obsolete.This risk applies primarily to externally facing systems where customer adoption remains akey component. For example, if a pharmaceutical organization designs a portal for itscustomers specifically about a new drug, declining market share could reduce the expected

traffic to the site.

The risk factors for both implementation and impact risk are used as a guide to determine how thecost and benefit assumptions can change from our original estimates.

Flexibility

Within the TEI methodology, direct benefits represent one part of the investment value. While directbenefits can typically be the primary way to justify a project, Forrester believes that organizationsshould be able to measure the strategic value of an investment. Flexibility represents the value thatcan be obtained for some future additional investment building on top of the initial investmentalready made. For instance, an investment in an enterprise-wide upgrade of an office productivitysuite can potentially increase standardization (to increase efficiency) and reduce licensing costs.However, an embedded collaboration feature may translate to greater worker productivity ifactivated. The collaboration can only be used with additional investment in training at some futurepoint in time. However, having the ability to capture that benefit has a present value that can beestimated. For the purposes of this study, the flexibility component of TEI captures that value in theform of direct benefits with a likelihood of occurring greater than 75%.


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Appendix C: GlossaryDiscount rate. The interest rate used in cash flow analysis to take into account the time value ofmoney. Although the Federal Reserve Bank sets a discount rate, companies often set a discountrate based on their business and investment environment. Forrester assumes a yearly discount rateof 10% for this analysis. Organizations typically use discount rates between 8% and 16% based ontheir current environment. Readers are urged to consult their organization to determine the mostappropriate discount rate to use in their own environment.

Net present value (NPV). The present or current value of (discounted) future net cash flows givenan interest rate (the discount rate). A positive project NPV normally indicates that the investmentshould be made unless other projects have higher NPVs.

Present value (PV). The present or current value of (discounted) cost and benefit estimates givenat an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cashflows.

Payback period. The breakeven point for an investment. The point in time at which net benefits(benefits minus costs) equal initial investment or cost.

Return on investment (ROI). A measure of a projects expected return in percentage terms. ROI iscalculated by dividing net benefits (benefits minus costs) by costs.


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Appendix D: TEI and ROI Model DetailsThe data used to inform findings articulated in this report was analyzed using a custom-built TEIfinancial model to calculate the value proposition and ROI of deploying Blackberry smartphones.The financial impact of a BlackBerry solution on an organization is calculated using formulas andmacros that model Forresters well-known Total Economic Impact (TEI) methodology, whichsystematically looks at the potential effects of technology investments across four dimensions: (1)costs; (2) benefits; (3) flexibility; and (4) risks.

Development Methodology

To develop this calculator, known as the BlackBerry Value Calculator, Forrester drew on a numberof resources. First, the team drew on the expertise of Forrester analysts, data, and publishedresearch to develop an understanding of current market conditions and features of mobility ingeneral. Concurrently, Forrester studied materials provided by RIM to establish a background in thespecific features and benefits offered to enterprise organizations that deploy BlackBerry solutions.

In addition, Forrester scheduled interviews with stakeholders from RIM to further understand typical

patterns of deployment and the achievement of commensurate benefits. Stakeholders includedsales, marketing, product management, and professional services personnel who providedperspectives on product positioning and current sales processes. Forrester also conducted in-depthinterviews and quantitative surveys with RIM customers to validate and enhance the data gatheredabout the total cost of ownership and total direct and indirect benefits an enterprise organization canexpect from deploying BlackBerry solutions.

Maturity Analysis

Based on Forresters research, the ROI and value of BlackBerry solution deployment varies greatlydepending on the maturity of an organization in deploying BlackBerry smartphones and solutionsstrategically to employees in the organization to as a valuable business enablement tool. As thisreport highlights, enterprise organizations typically deploy BlackBerry smartphones across their

workforce in three different stages: Reactive, Proactive, and Integrative.

Prior to quantifying the benefits and costs of deploying BlackBerry solutions, the BlackBerry ValueCalculator assesses the current maturity of an organizations BlackBerry solution deployment byanalyzing the answers to a series of questions regarding the users smartphone deploymentinitiatives. Answers to these questions influence 10 different factors of Forresters maturity modeland a raw score is computed which is used to adjust the costs and benefits quantified by thecalculator. The raw score can range from 0 to 100 and is converted into percentage terms todetermine the maturity stage of a particular deployment (see Figure A3).

Figure A3: Factors Influencing The BlackBerry Deployment Maturity Stage Of An Enterprise

Factor Weight

ReactiveDeployment

Stage(Raw Score:

0-35)

ProactiveDeployment

Stage(Raw Score:

36-65)

IntegrativeDeployment

Stage(Raw Score:

66-100)# Mobile smart devices as %of employees (maximum)

28% 0-10% 11-25% 26-100%

# Functional areas with atleast 50 BB devices(maximum)

23% 0-3 4-5 6+

# Functional areas with mobile 23% 0-1 2-3 4+


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applications beyond email(max)

% BB users accessing:

Email/PIM 8% 0-90% 91-95% 96-100%

Productivity/DocumentMgmt/Collaboration/Messaging 8% 0-25% 26-50% 51-100%

Time and Billing 3% 0-5% 6-10% 11-100%

CRM/Sales/FieldService 3% 0-5% 6-10% 11-100%

Location-Based Services 3% 0-2% 3-5% 6-100%

BI/ERP/Help Desk 3% 0-2% 3-5% 6-100%

Industry Specific 3% 0-2% 3-5% 6-100%

100%


Benefit Analysis

Based on the calculated maturity score, the calculator quantifies the total hard and soft financialbenefits deploying BlackBerry solutions across an enterprise organization. Forresters research ofexisting customer organizations with sizable deployments identified the following potential benefits(see Figure A4).

Figure A4: Benefits Achieved From BlackBerry Solution Deployment

Increased ProductivityEnhanced BusinessEfficiency

Increased Employee Satisfaction

Improved Regulatory Compliance

Reduced Mobile Security CostsShortened Sales Cycle

Improved IT Performance

Accelerated Back Office Support

Improved Field Service Management

Improved Resolution of Customer Issues

Increased Customer Experience

Shorten Time to Market

Improved Ability to Resolve Issues

Workflow Benefits

Faster Security Response

Cost Avoidance Multi-Vendor Cost Avoidance


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Internet Connectivity Cost AvoidanceBenefits

Reduced Staff Overtime Charges


Each of these benefits are quantified using responses to targeted questions. The following tableindicates how each of these benefits are computed (see Figure A5).

Figure A5: Factors Driving Calculation of Benefits

Benefit Category Summary Calculations

Increased ProductivityNumber of hours saved per user per weekX Average fully-loaded salary per hour

Increased Employee SatisfactionPercent decrease in attrition rateX #BlackBerry smartphone UsersX Cost ofreplacing an employee

Improved Regulatory Compliance

Decreased number of hours spent oncompliance-related activitiesX Averagefully-loaded salary per hourX Likelihood ofbeing audited and facing penalties if non-compliantX Typical financial penalty

Reduced Mobile Security Costs

Decreased number of hours spent onmobile security-related activitiesXAverage fully-loaded salary per hour XNumber of records available onsmartphones during a catastrophic eventX Average cost of addressing each recordin a catastrophic eventX Probability of acatastrophic event occurring

NOTE: A company avoids these

catastrophic event costs because of thesecurity benefits of implementingBlackBerry Enterprise Servers andBlackBerry smartphones.

Multi-Vendor Cost Avoidance

Number of mobile operating systemssupportedX Hours spent per weekmanaging each systemX Percent timesaved as a result of standardizing on theBlackBerry mobile operating system

Internet Connectivity Cost AvoidancePercent employees that are mobileXAverage cost of internet connectionssaved per month per mobile employee

Reduced Staff Overtime Charges

Number of BlackBerry smartphone userspaid hourlyX Minimum fully-loaded hourly

salaryX Decrease in number of hourspaid overtime

Shortened Sales Cycle

Number of working days per yearXNumber of days for a typical sales processX Percent of time that can be savedthrough using BlackBerry smartphonesXNumber of proposals handled concurrentlyX Percent of proposals resulting in salesXAverage revenue per sales dealX Profitmargin

Improved IT Performance Number of help desk requests solved


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faster per monthX Average time savedper help desk request because ofBlackBerry usageX Duration of each helpdesk requestX Average fully-loadedsalary per hour

Accelerated Back Office Support

Average amount of receivables per daythat could accrue interestX reduced timeto collect receivables because of improvedapproval process from BlackBerry solutionimplementationX prevailing interest rate +average amount of payables per day thatcould accrue interestX increased time toearn interestX prevailing interest rate.

Improved Field Service ManagementNumber of additional calls each FTE canmakeX value of a successfully completedFSM call

Improved Resolution of CustomerIssues

Number of second-level support calls thatcould be avoidedX Cost of successfullyresolving a second-level support call

Increased Customer ExperienceAnnual revenue lost due to poor service

but reclaimed due to BlackBerry usage

Shorten Time to Market

Number of additional projects completedannually due to improved productivity andcommunicationX Average profit marginper project

Improved Ability to Resolve Issues

Number of incidents annually requiringdirect/immediate access to executiveXTime saved in ability to reach quicker withBlackBerryX Average fully-loaded salaryrate per hour

Faster Security Response

Number of incidents annually requiringdirect/immediate security responseX Timesaved in ability to address incident quicklywith BlackBerryX Cost per incident perhour


Cost Analysis

The BlackBerry Value Calculator also quantifies the total direct and indirect costs of deployingBlackBerry solutions across an enterprise organization. The table below identifies costs which needto be taken into consideration when quantifying the total cost of ownership and also provides detailsas to how each cost category is computed (see Figure A6).

Figure A6: Costs Incurred As A Result Of BlackBerry Solution Deployment

Cost Category Summary Calculations

BES

Number of BlackBerry Enterprise Servers in useX annual license fee perBlackBerry Enterprise server+ Cost of professional services fordeployment/support+ Number of days to install/deploy servers by a FTEXNumber of FTEs to install/deploy serversX Daily wage per FTE + additionalacquisition cost for servers + annual maintenance fees for BlackBerry Enterpriseservers + Number of days to maintain servers by a FTEX Number of FTEs tomaintain serversX Daily wage per FTE + Cost of IT BlackBerry Enterprise Servertraining

BlackBerryDevices

Number of devices supportedX Cost of each device paidX percent of devicecost paid by company + cost of professional services to


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customize/configure/test/deploy devices + average annual cost of provisioning +Number of FTEs to customize/configure/test/deploy devicesX Number of hoursspent on customize/configure/test/deployX Hourly FTE salary rate+ Additionalcosts to customize/configure/test/deploy devices and extend warranty

User Support

Annual billable cost of BlackBerry solution T supportX Number of FTEs providingBlackBerry solution supportX Time spent on BlackBerry solution supportX ITFTE salary + Cost to train IT FTEs

End User TrainingCost to train BlackBerry smartphone users + Time spent developing trainingmaterialsX Number of FTEs developing training

Voice and DataPlans

Number of devices with just voice plansX Average annual cost for voice plan+Number of devices with just data plansX Average annual cost for data plan +Number of devices with voice and data plansX Average annual cost forcombined plan + International roaming charges

MobilityApplications

Total cost of initial license fees for off-the-shelf applications + cost of annualmaintenance fees for off the shelf applications + co

~$economic impact of blackberry devices 2

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