measuring roi: build vs buy business apps

Mobilize your Workforce

Measuring ROI: The Decision to Build or Buy Business Apps

Friday, January 18, 13

Drivers for Build vs. Buy

BUILD BUY• Complete ownership

• Exact match to requirements

• Must be written and tested

• Takes time to write

• Maintenance Costs

• Lower capital costs (higher operating cost)

• Ownership dependent on license

• Must evaluate fit (custom tailored apps increase fit)

• Dependent on vendor for support (depends on vendor)

• Quick to deploy and test

• Quick to purchase

• No Support Costs

• Lower operating costs

Each business has one or more drivers that lead the organizational decision to ‘buy’ or ‘build’. However, a flexible mobile partner offers custom-tailored apps and provides professional support that transition some traditional ‘build’ drivers to favor the ‘buy’ decision.


Build: Pros & Cons

PROS CONS• Additional FTEs – Cost to start or grow a mobile

development team within the organization ($120k-$200k per developer)

• Longer Time to Market – Find developers with the right background, onboard & training, and time to ramp up team (4-6 months)

• Supporting Applications & Structure – Additional applications are required that may not be part of the enterprises architecture (i.e., integration platforms, support for high transaction rates – $15K+ per year)

• Maintenance and QA – Routine maintenance and bug fixes across platforms (3-4 releases per year translates to $15K+ per year)

• Feature Request – Translates to additional build cycles ($10K-$40K+ dependent on complexity)

• Delayed Return – Longer time to see a return on investment (6 months+)

• High Failure Rates – 55% success rate for software applications with budgets under 750K*

• Complete Ownership – the source code is your own

• Exact Match of Requirements – Built to meet business requirements (custom-tailored apps can usually match this)

• Lower Capital Costs – Though it is often offset by high operating costs

*Statistics from The Standish Group


Build: Determining Total Cost of Ownership (TCO)

Metric Time Cost

2-3 additional FTEs 4-6 months - to find, train, and ramp up team $120K-$200K per FTE

Support Structure Needed (integration platform, high transaction rates, etc.) 2 months $15K+ annually

Delay in time to market 6 months+ Dependent on organizational values

Upfront

Metric Time Cost

Deployment of New Features Months of valuable technical resources ~5K-40K (dependent on complexity)

Routine Maintenance 1 week of developers time per quarter ~$15,000 annually

Delayed ROI 6 months+ Dependent on organization

Post Deployment

Bottom Line: Case studies for BUY support ROI’s between 21%-24% and shorter payback periods of 6 months+


Buy: Benefits of a Vendor

• Short innovation cycles

• Quick Time to Market

• Specialized Teams – Mobile integration, cloud service teams with experience and knowledge of legacy systems strengthen app structure. UI/UX design teams ensure user adoption.

• Proven Architecture – Proprietary mobile product architecture is flexible, scalable and easily integrates with legacy and current enterprise technology

• New Features – Rolled out continuously on all apps. No cost to stay up-to-date.

• No Maintenance Required – All apps are meticulously maintained and tested by Taptera

Custom-tailored apps provide the benefits of a mobile partner, but are designed to meet all your business requirements


Statistics from TechCrunch Disrupt 2012 Case Study

Cost SavingsColleagues.

• Increase collaboration among business unitsBusiness Value

Mobile Corporate Directory

• Increase Employee Availability• Quickly find the right person by seeing who they work with and where they sit on

the corporate latter

Rooms.Conference and meeting room scheduling

• Simplify bookings by always knowing the capabilities and capacity of each roomBusiness Value

• Ensure visiting employees have a space to be productive with advanced bookings• Increase productivity by tapping to extend meetings, or easily schedule a follow up

Events.Any size, any conference companion app

• In-app engagement with attendees – real-time push notificationsBusiness Value

• Increase duration of reach – 63% of attendees download app 7 days before event*• Receive real-time feedback with in-app speaker and session ratings

Average Cost of App

App Maintenance

New Feature Development

$0

$0

Cost

30 minutes of time savings / per dayIncreased collaboration among business units

Savings

Streamlined work environmentEmpowered employeesMore time spent on core disciplines

Calculate ROI

Buy: ROI through Empowering Employees

Reduce support calls to IT (25%)

• Avg. attendee had 3.5 sessions per day – more than 2X that of other business apps• The Disrupt app was used over 61K times for the tradeshow• There was 2,755 downloads of the app


We create secure business apps that employees love. An empowered mobile workforce is quicker to respond, more nimble, and generally happier.

... and more productive(We spend more time using apps we like)


About Taptera.

Featured Clients

Taptera builds fast, beautiful, and secure mobile apps for large companies across a diverse range of industries. We solve simple and complex enterprise problems with business apps used for micro-mobile moments.

San Francisco HQ for Top ManagementKey Engineering, Design,and Product Teams

Warsaw, Poland Engineering and Development

24 Full-time Employees

300 Local and global resources

5 Years of iOS andAndroid experience

We specialize in the following:

• Deliver off-the-shelf sales, general productivity and experiential native apps

• Create custom-tailored apps using flexible and scalable enterprise product architecture

• Build unique native apps to solve common and complex organizational problems


Data Protection and SecurityOur top priority is keeping your data secure. All of our apps utilize the iOS Data Protection API and carry all traffic over SSL. We also leverage your existing systems to allow users to access our apps with their existing username and password. So you can rest assured that your information is always protected.

Mobile Optimization EngineMOE is at the heart of our product offering. It lies at

the intersection of app, Admin Console and your enterprise systems. It takes the slow, complex data

from your internal systems and optimizes and accelerates it so that it works seamlessly over the

cellular network.

Tapkit FrameworkEach app we create starts with TapKit. It is the underlying framework that provides authentication, theming and the security infrastructure within all our apps.

Our Technology.We build beautiful, secure and fast consumer-like mobile apps on technology platforms that cater to the BYOD and enterprise workforce. Taptera technology eliminates the huge expense of developing your apps in-house with world-class design and top-notch engineering quality in half the time.


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Strategic Partnerships.

We build on enterprise platforms used by large companies to power,

protect and grow their business.

Taptera creates and delivers elegant, functional and secure business apps

to make data accessible across business functions in mobile micro

moments.

ABOUT TAPTERA OUR APPROACH THE PRODUCTS CUSTOM SOLUTIONS FEATURED CLIENTS CONTACT US TAPTERA COMPANY PROFILE 2012OUR PARTNERS OUR INVESTORSTHE TEAM

MOBILE DEVICE MANAGEMENT & SECURITY

INTEGRATION & IT SERVICES

INNOVATIVE ENTERPRISE SYSTEMS

NEW BUSINESS SOLUTIONS


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The Management Team.

Chris O’ConnorCo-Founder & CEO• 15 years' experience bringing innovative IT

solutions to Fortune 500 companies • At Genentech, Inc., Chris held senior roles as

Associate Director of Cloud and Mobile Solutions and Principal Systems Architect

• Holds a BSc. in Nuclear Engineering from the University of Illinois.

Mike JansonChief Technology Officer• Oversees the technical direction for Taptera’s

services and products. • More than 20 years of technical leadership

experience • Previously worked at salesforce.com where he

directed teams that developed Chatter• Has also served as Genentech's Cloud and

Collaboration architect and technical team lead.

Bernetta StewartVP of Customer Success• Responsible for solution delivery and support • Obsessed with customer experience• 15 years' experience working in tech industry• 8 years leading technical solution delivery at

Genentech

Jessica ValenzuelaVP of Growth and Innovation• Leads growth and innovative market

categories at Taptera• Over 12 years of product marketing and

digital media experience • Previously held positions at Kaplan, Inc.,

Accenture, Young & Rubicam, Ogilvy and Tribal DDB and founder of Mavin Digital, Inc.

Ian FisherPrinciple Mobile Engineer

• Oversees the development teams• Combines engineering practices with app

development experience to build impeccable mobile applications

• Holds a B.S. in Computer Science from California Polytechnic State University, San Luis Obispo.


Led by a proven mobile management team with expertise in legacy and innovative enterprise systems, Taptera is a team of experienced creative technologist that build productivity, sales and marketing solutions for a mobile workforce.


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Contact Us.JESSICA VALENZUELAVP OF GROWTH & INNOVATION+1 (312) [email protected]

Follow us on Twitter: @taptera

http://taptera.com


“Mobile apps are essential tools for a sales person to be more productive. Businesses that aren't providing mobile solutions for their salesforce are going to find themselves losing ground to faster moving, more forward thinking competitors. Sophia from Taptera is a great example of an application that delivers a competitive edge to its users. With Sophia, salespeople can cut the time it takes to update an opportunity within the Salesforce system via voice-to-CRM capabilities. By cutting down time spent on the business critical act of maintaining proper records salespeople can increase the time spent selling."

Paolo BergamoSr. Director, Project Management


mailto:[email protected]

mailto:[email protected]

http://taptera.com

http://taptera.com

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