Frost & Sullivan: 71 Percent of Businesses Add More Mobile Apps to

Employee Devices in 2014

Research PREVIEW for the

2013 North American Mobile Enterprise Applications

@FS_ITVision

Research Objectives and Methodology

Research Objectives

The overall research objective is to measure the current use of and future decision-making behaviors toward mobile enterprise applications, specifically mobile asset tracking, mobile sales force automation (SFA), mobile workforce management, and wireless email solutions.

Methodology and Sample

Using a Web-based survey methodology during August 2013, Frost & Sullivan surveyed 308 North American decision makers working in businesses who were responsible for purchasing mobile software applications.

Frost & Sullivan’s survey methodology uses online panels to source only qualified respondents. Respondents must meet requirements set by a screening process prior to full survey participation. Online panels consist of individuals who volunteer to participate in Web-based surveys and typically receive compensation directly from their panel membership for participating in qualified survey research. In general, survey respondents do not receive direct compensation from Frost & Sullivan for participating in research projects.

Note: Percentages in charts and tables may not add to 100 due to rounding.

Source: Frost & Sullivan

Methodology

2010 2012 2013

Country (sampling quotas set)

Canada 33% 33% 34%

United States 67% 67% 66%

Enterprise size by number of employees

1 to 24 37% 38% 33%

25 to 99 6% 9% 10%

100 to 249 5% 1% 4%

250 to 499 4% 2% 3%

500 to 999 17% 7% 8%

1,000 to 9,999 23% 24% 24%

10,000 or more 8% 19% 19%

Total sample n=307 n=300 n=308

Frost & Sullivan conducted decision-maker research in the mobile enterprise applications market since 2010. Where available and appropriate, comparisons to past data points will be made throughout this study. Below are sample details for 2010, 2012, and 2013.

Year-Over-Year Sample Demographics: North America, 2010, 2012, and 2013

Source: Frost & Sullivan

An Expanding Sector

Mobile worker applications continue to expand throughout the North American business sector. Over the next year, the bulk (71%) of businesses plan to add even more software applications on their employees’ mobile handheld devices.Implementations, both current and planned, fluctuated slightly during the past year for three of the four mobile application categories highlighted in this study. Potential problem areas include: 1) wireless email, where the percentage of businesses deploying this solution seems to be shrinking significantly, year-over-year; and 2) mobile sales force automation, where the perceived business need for this solution has decreased markedly.

In summary, while the overall growth picture seems positive for mobile worker apps, specific solution categories continue to expand or contract, each at their own pace. It is imperative that providers monitor customers’ forward-planning in this sector and quickly identify and address the reasons behind any unexpected dips in deployments.

Executive Summary

None One to 10 apps 11 to 19 20 to 49 50 or more apps Don't know

22%

48%

12%7% 6% 5%

23%

52%

11%4% 4% 6%

Current Apps New Apps During Next 12 months

Mobile Worker Software Application Deployment: North America, 2013

Executive Summary (continued)

Impact of Attitudes on Deployment The key to a provider's sales success is convincing them of the business necessity of mobile worker

application solutions. Among businesses with the attitude that a particular mobile app category is “very necessary,” there is a

strong positive impact on their adoption rates. Specifically, among the four mobile apps featured in this research, a “very necessary” attitude positively impacts adoption (current and planned) rates by as much as 41%.

The above chart delineates why customers would view mobile worker apps as necessary to their businesses’ success.

Percent of Respondents that have Deployed App

Type of Apps

Those Who Consider Mobile App Very

Necessary

Those Who Consider Mobile App Somewhat or

Not at All Necessary

Impact of Attitudes on Deployment

Percentage points (ppts) of difference

Wireless email 76% 39% 37 ppts

Mobile SFA 62% 21% 41 ppts

Mobile workforce management 56% 19% 37 ppts

Mobile asset tracking 52% 21% 31 ppts

Impact of Attitudes on Deployment: North America, 2013

Executive Summary (continued)

Pros and Cons of Mobile Worker Apps

Mobile worker apps are being used by a wide range of employee types, from the executive/management suites to the sales and service workers in the field.

Today’s businesses point to increased efficiency and productivity as their top reasons for providing mobile apps to their employees. However, softer benefits — including enhanced customer engagement and improved collaboration — also rate highly as reasons for implementation.

Concerns regarding the security of company and customer data and the potential high cost of implementation tend to be the major barriers to deploying mobile worker applications.

Vendors and their channels must take both these benefits and barriers into consideration to effectively market their solutions.

More efficient business processes

More productive employees

To enhance customer engagement

More employee collaboration

Results in cost savings

To establish a competitive advantage

To keep up with our competition

Provide new revenue streams

69%

69%

60%

56%

54%

49%

48%

42%

Security concerns

A high cost

No real business need

Lack of internal expertise

Lack of IT personnel support

Back-office integration concerns

Lack of a dependable mobility partner

Worker resistance

50%

46%

36%

36%

36%

29%

25%

23%

Reasons For Providing Mobile Apps to Employees—Percent Very or Somewhat Important: North America, 2013

Reasons For Providing Mobile Apps to Employees—Percent Very or Somewhat Important: North America, 2013

Executive Summary (continued)

Impacts on Customer Satisfaction

Overall, about two-thirds of current users report being very or somewhat satisfied with the mobile worker apps spotlighted in this study. Outright satisfaction has decreased during the past 3 years, which may be due to a variety of factors, including the market expanding beyond first-adopters or a lack of clarity regarding these solutions’ capabilities. An important fact to emphasize is that the proportion of “dissatisfied” customers has not grown significantly during this time.

Specific benefits noted by the actual users of this study’s spotlighted apps are consistent with mobile worker solutions as a whole: 1) increased productivity and efficiency both in the field and at the office, and 2) enhanced customer engagement and satisfaction. Incremental revenue generation is not yet a significant influence. Using regression analysis, specific business effects can be directly linked to the overall customer satisfaction with an application. For example, a more accurate billing process has a direct positive impact on overall satisfaction with mobile sales force automation solutions. With mobile workforce management users, enhanced customer engagement is expected to have a positive impact on overall satisfaction.

Wireless Email Mobile SFA

Increase in worker productivity: 72% Faster overall sales process: 71%

More employee collaboration: 63% Improved competitive advantage: 71%

Increase in customer satisfaction: 60% Increase in sales visit rates: 69%

Mobile Workforce Management Mobile Asset Tracking

Reduced paperwork: 66% Reduced paperwork: 64%

Increase in customer satisfaction: 64% Quicker asset recovery: 61%

Enhanced customer engagement: 63% Reduced labor expense: 59%

Top Three Business Impacts of Selected Mobile Apps—Percent of Significant and Somewhat Significant Ratings: North America, 2013

Source: Frost & Sullivan

Executive Summary (continued)

Evolving Technology Preferences

As this market continues to mature, customer preferences are evolving in a number of areas.

For example, the proportion of current user companies that are opting for prepackaged solutions seems to have decreased compared to 2012, while fully customized implementations are becoming more common.

In addition, mobile applications are moving steadily toward the cloud, as businesses rely less on purely on-premise server solutions and more on exclusively hosted or hybrid environments.

In terms of mobile devices, smartphones and tablets are clear favorites, as basic feature phones continue to fade.Overall, fewer companies believe it is important for mobile apps to exploit their devices’ native capabilities although a majority of larger firms still prefer a native approach.

These trends point to a more sophisticated set of expectations (requiring custom work and smart devices), while at the same time companies are trying to find an approach to mobile worker apps that is flexible and cost-effective (hosted, non-native).

Source: Frost & Sullivan

Executive Summary (continued)

Choosing a Mobility Partner

The importance of indirect distribution channels in this market cannot be overstated.

Small- and medium-sized businesses (SMBs) continue to prefer wireless carriers as their partners in selecting, purchasing, and implementing mobile software applications.

Larger companies, on the other hand, have an expanded set of preferred mobility partners, which includes the wireless carriers, systems integrators, and major corporate software vendors, who are mobilizing their traditional desktop products.

Partner selection criteria can be segmented into 3 relevant categories:

• Basic: This remains an extremely cost-sensitive sector. The minimum entry requirements in this market are the provider’s cost of doing business.

• Strategic: Overt criteria that must be satisfied include the provider’s post-sales service capability, financial stability, customization and integration expertise, and overall industry reputation.

• Secret: Two factors that can be unexpected differentiators are the provider’s solutions portfolio and overall experience in the mobility sector.

Market Overview

North American firms continue to deploy an expanding array of mobile worker software applications. The immediate goals are typically to improve employee productivity and collaboration. In addition, mobile apps are increasing the level of engagement with end customers and enhancing overall customer satisfaction. Once a competitive differentiator, these software solutions are now a competitive requirement. During the coming months, customers are expected to also begin paying more attention to these solutions’ revenue generation capabilities.

This is a fragmented market with many stakeholders. Mobile application developers tend to be small and scattered, so direct sales is an insufficient strategy on its own. The correct channel partners are a key requirement for success. A subset of top-tier wireless carriers were forward-thinking and staked an early claim, with a vetted assortment of best-in-class mobile apps, appealing especially to small and medium-sized business customers. Other large entities then began entering the fray, with traditional corporate software vendors and systems integrators now presenting themselves as mobility experts to their embedded customer bases and applying competitive pressure on the carriers.

Prepackaged applications reached a technological plateau during the past 12 months, with most developers fine-tuning and enhancing current capabilities, rather than launching new and revolutionary advancements. These enhancements have focused on enriching data capture capabilities, expanding analytical reach, adding tablet support, and beginning to modularize certain elements of the feature set. More exciting advancements are expected to start appearing in 2014.

Pricing strategy has also remained stable, with minor tweaks, but perhaps a greater willingness to offer discounts for contractual commitments. SLAs (service-level agreements) are receiving more attention.

Marketing messaging remains an area needing improvement. Stakeholders must continue to clarify the business benefits of these mobile solutions, especially the hard- and soft-dollar return on investment (ROI) being experienced by current users.

Market Definitions

Wireless Email: Delivers business email and PIM (personal information management) capabilities to an employee’s handheld device and enables intra-office communication and collaboration. Examples include BlackBerry BES, Good Mobile Messaging, and Microsoft ActiveSync.

Mobile Sales Force Automation (SFA): Extends SFA and sometimes customer relationship management (CRM) capabilities to employee smartphones and tablets, and allows mobile sales employees to access calendars, contacts, and customer data to perform contact and order management functions away from the office. Examples include Antenna AMP SALES, Sybase Mobile Sales for SAP, and SalesNOW from Interchange Solutions.

Mobile Workforce Management: Uses GPS and other location technologies on mobile handhelds— smartphones, feature phones, tablets, and rugged devices—to locate and manage mobile field workers and their tasks. Capabilities can include worker tracking, wireless forms, geo-fencing, wireless timecards, and dispatching. Examples include TeleNav Track, Xora TimeTrack, and Verizon Field Force Manager.

Mobile Asset Tracking: Uses wireless tracking devices to remotely locate mobile and semi-stationary assets. These assets can include portable equipment in the field or consumer goods in transit, but do not include fleet management solutions. The tracking devices can be attached to the asset or included in the shipping container. Examples include Omnilink Asset Locator and Telenav Asset Tracker.

Source: Frost & Sullivan

Respondents by Country

S0. What country do you reside in?Base: All respondents (n=308).

Canada, 34%

United States, 66%

Respondents by Country Breakdown: North America, 2013

Source: Frost & Sullivan

Number of Employees in the Entire Organization

Base: All respondents (n=308).S1. How many employees are there in your entire organization, including all plants, divisions, branches, and subsidiaries?

One to 24 employees

25 to 99 100 to 249 250 to 499 500 to 999 1,000 to 9,999

10,000 or more

employ-ees

33%

10%

4% 3%

8%

24%

19%

Number of Employees in the Entire Organization: North America, 2013

Source: Frost & Sullivan

Role in Organization’s Decisions to Provide Mobile Apps to Employees

Base: All respondents (n=308).S2. Which of the following best describes the role you currently have in your organization’s decision to provide mobile apps to employees?

35%

31%

17%

17%

Role in Organization’s Decisions to Provide Mobile Apps to Em-ployees: North America, 2013

A primary decision makerOne of a few (2–3) decision makersOne of many (4 or more) de-cision makersA key influencer

Source: Frost & Sullivan

Industry Representation

Base: All respondents (n=308).S3. Which of the following industries best describes your organization?

Pro

fess

ion

al s

erv

ice

s

Hig

h T

ech

Ma

nu

fact

urin

g a

nd

dis

trib

utio

n

Re

tail

an

d c

on

sum

er

go

od

s

Fin

an

cia

l se

rvic

es

En

erg

y a

nd

util

itie

s

He

alth

care

an

d li

fe s

cie

nce

s

Tra

nsp

ort

atio

n

Co

nst

ruct

ion

Re

al e

sta

te

Ho

spita

lity

an

d tr

ave

l

Insu

ran

ce s

erv

ice

s

Ed

uca

tion

Oth

er

17%14%

10%8% 8%

6% 5% 4% 4% 3% 3% 2% 1%

15%

Industry Representation: North America, 2013

Details of the Full Analysis

Contents of Full Analysis

Section Slide Number

Research Objectives and Methodology 4

Executive Summary 7

Market Overview and Definitions 14

Overview of Mobile Solutions 17

Mobile Enterprise Applications Usage Details 22

Insights for Mobile Business Application Partners 38

Barriers to Future Adoption Among Current Non-users 59

Appendix 63

The Frost & Sullivan Story 163

Associated Multimedia

GIL TalksFrost & Sullivan Thought Leadership Videoshttp://www.gilcommunity.com/gil-talks

Analyst BlogsInformation & Communication Technologies http://bit.ly/1e7xG3R

Analyst BriefingsComplimentary ICT Webinarshttp://bit.ly/1f9CZV6

SlideShareFrost & Sullivan’s Technology Presentations http://slidesha.re/1oMWgy4

Market Insight ArticlesComplimentary ICT Analyst Insightshttp://bit.ly/KqH4Xp

Visionary IT PortalFrost & Sullivan's Interactive ICT Communityhttp://visionary-it.gilcommunity.com/

Interested in Full Access? Connect With Us

Clarissa CastanedaCorporate Communications

(210) 477-8481

clarissacast325@frost.com

Research Authors

Lead Analyst:

Karolina OlszewskaResearch Analyst,

Customer Research, Frost & Sullivan

Contributing Analyst:

Tonya FowlerGlobal Director,

Customer Research, Frost & Sullivan

Research Director:

Jeanine SterlingPrincipal Analyst,

Mobile and Wireless,Frost & Sullivan Facebook

https://www.facebook.com/FrostandSullivan

LinkedIn ICT Grouphttp://linkd.in/1kS4C7c

SlideSharehttp://www.slideshare.net/FrostandSullivan

ICT Twitterhttps://twitter.com/FS_ITVision

Frost & Sullivan Eventshttp://bit.ly/MvPRbQ

Global Perspective40+ Offices Monitoring for Opportunities and Challenges

What Makes Us Unique

All services aligned on growth to help clients develop and implement innovative growth strategies

Continuous monitoring of industries and their convergence, giving clients first mover advantage in emerging opportunities

More than 40 global offices ensure that clients gain global perspective to mitigate risk and sustain long term growth

Proprietary Team Methodology integrates 7 critical research perspectives to optimize growth investments

Career research and case studies for the CEOs’ Growth Team to ensure growth strategy implementation at best practice levels

Close collaboration with clients in developing their research based visionary perspective to drive GIL

Focused on Growth

IndustryCoverage

Global Footprint

Career Best Practices

360 Degree Perspective

Visionary Innovation Partner

Industry ConvergenceComprehensive Industry Coverage Sparks Innovation Opportunities

Automotive&

Transportation

Aerospace & Defense Measurement &Instrumentation

Information &Communication Technologies

HealthcareEnvironment & BuildingTechnologies

Energy & PowerSystems

Chemicals, Materials& Food

Electronics &Security

Industrial Automation& Process Control

AutomotiveTransportation & Logistics

ConsumerTechnologies

Minerals & Mining