The next generation mobile enterprise opportunity involves the extension of a company’s core data and applications to mobile executives, sales personnel and field technicians via Internet-enabled smart phones, laptops, and PDAs. High levels of business interest in a wide range of mobile data solutions, coupled with advancements in network technologies, have cultivated the development of wireless enterprise applications and created a multifaceted assortment of players, service concepts, and business models.

1. ENTERPRISE MOBILITY
A P P L I CAT I O N S F O R T H E S M B
The Growth of Mobile CRM
A Frost & Sullivan White Paper
Prepared for IBM

2. TA B L E O F
CONTENTS
TABLE OF CONTENTS
Executive Summary 3
Key Market Trends 5
The SMB Opportunity 9
Revenue Analysis 10
Key Drivers for Mobile CRM & FSM 12
Value Proposition of the Mobile CRM Application to SMBs 14
Strategic Recommendations 16
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3. EXECUTIVE SUMMARY
Overview of Enterprise Mobility Applications
The next generation mobile enterprise opportunity involves the extension of a company’s
core data and applications to mobile executives, sales personnel and field technicians via
Internet-enabled smart phones, laptops, and PDAs. High levels of business interest in a
wide range of mobile data solutions, coupled with advancements in network technologies,
have cultivated the development of wireless enterprise applications and created a
multifaceted assortment of players, service concepts, and business models.
In this paper, Frost & Sullivan focuses on the opportunity for mobile enterprise solutions,
as well as the particular applications that the market is demanding. The capability to
mobilize and/or add functionality to an enterprise’s mission-critical application portfolio,
with limited risk and reasonable costs is now a feasible corporate strategy to increase
efficiency, cut operating costs, and maximize return on investment. Success will rely on
the ability to customize products and services while maintaining flexible, open
architectures that can quickly adjust to the rapidly changing technologies and industry
challenges. Flexible application platforms, superior customer service, and customized,
coherent pricing models are anticipated to emerge as the true differentiators, as
coverage, reliability and functionality becomes increasingly commoditized.
Frost & Sullivan believes that is essential to present solutions to businesses, not simply
technology. To build solutions that businesses value, it will be critical for systems
integrators (SIs) and ISVs to work with customers to develop the business case for their
mobile deployments, and then design, implement, and support the solution. Success will be
measured by the ability to seamlessly link the back office to mobile devices so executives,
sales personnel, and field force employees have real-time access to customized, mission-
critical data and applications.
Frost & Sullivan has identified the following customer segments that are likely to drive
adoption of wireless data solutions:
Mobile Executives: The mobile professional segment is largely composed of top executives,
directors, and mid-level managers who travel frequently. This segment is particularly apt
to adopt Mobile Office applications, such as remote access to corporate intranets,
messaging, and PIM tools. Increasingly, the Mobile Professional segment is demanding
more company-specific, specialized solutions that involve higher-volume data levels.
Mobile Sales Professionals: Remote sales employees have emerged as a driving force for
mobile CRM and SFA applications. Mobile sales personnel are increasingly demanding real-
time access to mobile CRM software to manage large amounts of company, customer,
product, and competitor information while away from the desk. Enterprises are
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4. recognizing that for mobile sales professionals to effectively address customer needs, it is
critical that the remote employee has real-time access to customer records and
associated information. Frost & Sullivan expects industries such as Healthcare and
Financial Services to drive the demand for mobile CRM software.
Field Service Employees: Field service employees rely on work applications and devices to
complete their job functions. These employees are not typically tied to a desktop and use
a variety of vertical devices. Large companies such as FedEx have relied on wireless data
solutions to stay in constant contact with dispatched mobile field service employees and
maintain real-time status on field activities. Field service employees operate in a variety
of industries often performing tasks such as service, repair, and delivery. The proliferation
of devices and applications designed for this segment has fueled significant growth for
wireless data services.
For solution providers to effectively serve these customer segments, they must
understand the key issues and needs unique to each segment, and market offerings
accordingly.
Mobile Enterprise Market: Market Segmentation
Mobile Enterprise
Market
Mobile CRM / SFA Applications
Mobile Office Applications Market
Market
Wireless FSM Applications Mobile SFA Applications Other Mobile CRM
Market Market Applications Market
Wireless SFA
Market
Laptop and Tablet Key:
PC CRM – customer relationship management
SFA Market SFA – sales force automation
FSM – field service management
Offline PDA – personal digital assistant
PDA/Applications
SFA Market
Source: Frost & Sullivan
Definition
Mobile CRM/ Sales Force Automation (SFA)
Mobile CRM involves the extension of corporate CRM/SFA systems to mobile devices.
This often allows mobile field sales personnel to access product information, pricing,
inventory status, and customer information on mobile devices enabling users to perform
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5. contact management, calendar entry, opportunity analysis, and order management
functions while away from their office.
Mobile Field Service Management (FSM)
This involves extending relevant components of FSM to a mobile device used by the
service technician to deliver field service to the customer. This typically entails
bidirectional interaction with customer support, scheduling and dispatch, service order
and contracts management, service parts management, and possibly other components of
the FSM application such as knowledge management.
KEY MARKET TRENDS
Mobile CRM
The mobile CRM industry is characterized by high performance pressure on mobile sales
and service professionals. Companies are increasingly looking at avenues to equip their
mobile workforce with state-of-the-art technology to enhance their productivity,
efficiency, and effectiveness on the field. Mobile CRM solutions are providing significant
improvements to the overall performance of the mobile workforce. Furthermore, the
connectivity that mobile solutions provide across the value chain of a company, including
partners and resellers in different regions presents a fine value proposition for
investment. Adoption of mobile CRM solutions in the large enterprise segment has been a
key driver for growth in this market. However, the small and medium enterprises are
likely to increase investment in these solutions in the near future.
The Emerging Breed of SMB Mobile Applications
With more and more SMBs adopting mobility in their organization, this segment will
assist in providing information on how the mobile CRM applications are evolving.
Mobile CRM
Emergence of Mobile Applications beyond Email
The mobile CRM industry has traditionally been characterized by the considerably high
usage of e-mail applications by mobile users. There is a marked shift in this trend with the
emergence of new, broad-based applications beyond tradition e-mail. The increasing
demand for more applications in a mobile environment is helping SMBs provide their
mobile workforce with real-time collaboration and connectivity frameworks. This provides
a platform to bring about greater efficiency in mobile users.
Integration with Back-office Functionality Gains Traction
Mobile SFA solutions are being increasingly equipped with functionality to integrate key
customer details, customer requests, order queries, and other real-time, on-site
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6. functionality into back-office applications. This creates the platform for excellent, real-
time interaction and update with back-office systems and provides the mobile sales
professional with the requisite information while handling customers at various locations.
Expansion in Memory Capabilities in Mobile Devices Creates Room for Robust
Application Development
Mobile devices have so far provided limited memory space to end users. This in turn
created limits on the number of applications that the devices could support. Increase in
memory capacity in mobile devices created avenues to support a wider range of
applications, and the framework to support usage by multiple users.
Mobile FSM
Greater Integration of People and Parts Create a Better Framework for Ticket
Resolution.
Mobile FSM solutions in the past have been affected by lack of strong integration
capabilities with back office systems for faster ticket resolutions. The increasing
integration of various applications in a converged environment that allows access to
information across device types is likely to lead to increased investments from SMBs in
mobile FSM solutions.
Growth of On-demand Solutions Increases Real-time Mobility in Field Services.
With the CRM industry aggressively promoting the on-demand model, mobile field service
is certainly reaping the benefits of this market movement. Greater connectivity, more
real-time information, better access to information, and growth in Wi-Fi spots are
increasingly providing scope for better ticket resolution and improved quality of service
Productivity of field service professionals are subject to the optimal use of time
and information.
Wireless field service applications such as workforce optimisation, portal tools, timesheet
management, project/job management, asset monitoring, CRM functionality are used to
capture progress on service requests/problem tickets, configure orders and capture sales
among others, offer competitive advantage. In the interest of providing high levels of
customer service in a highly competitive environment, SMBs are realizing the necessity of
tracking these critical workflows.
Analysis of the Mobile CRM Opportunity
A New Outlook to Mobile CRM
Mid-market companies are looking beyond their traditional CRM solutions and are
incorporating workflows, while extended them into their mobile solutions. Incorporating
sales processes and functionality into a mobile environment has given the mobile CRM
market a huge fillip during the year. Mobile sales professionals are therefore provided
with a solution that is customized to enable higher productivity. Other elements such as
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7. speed of connectivity, ability to push data back and forth across databases, real-time
connectivity with back-office applications, and integration of the mobile sales cycle into
the DNA of sales operations has increased traction in this market.
Impact of Market Consolidation
The increasing focus on inorganic growth is one of the characteristic features of the
mobile CRM market. Several solution providers are seeking to acquire expertise in the
mobile environment through the inorganic growth model. Furthermore, with competitive
product and price differentiation being a key element of this market, the inorganic route
of growth offers a wide variety of options for the small and medium sized businesses to
choose from – which is now being recognized as a strong potential market segment.
These factors are providing the thrust for the mergers and acquisitions in the mobile
CRM market.
Price Movements
Most device manufacturers are competing to create greater mind space among business
users. However, traditionally, the exorbitant price points of mobile devices have restrained
the device manufacturers from penetrating the market. Changes in the price points of
various mobile devices lead to increased interest in investment for mobile solution
providers and create avenues to explore a wider installed base. Furthermore, carriers,
whose support is essential in the functioning of mobile solutions, are stable in their
tariffs. These two market operators that are an integral part of the mobile CRM solutions
space are increasingly positioning their value in terms of greater affordability to SMBs.
The growth of next-generation wireless networks in North America also increases good
connectivity and accessibility for the mobile CRM professional.
Workflow Approach and Multiple Functionality
There has been a significant advancement in the ‘S’ curve with the adoption of the new
breed of mobile CRM applications. Integration of workflows into mobile solutions is one
of the trends in the mobile CRM space. Several SMBs are realizing the value in embedding
functionality that both enables and empowers sales professionals- including sales
management and field sales forces - in converting a high number of leads into tangible
business opportunities. This also helps the customers in adapting quickly to the mobile
technology. The new breed of CRM applications also interact wirelessly with other
enterprise mobility applications such as Enterprise Asset Management (EAM) and Supply
Chain Management (SCM). Furthermore, the inclusion of functionality beyond basic e-mail
functionality on mobile devices has given the mobile SFA industry a huge fillip during the
year. These new functionalities are creating scope for sales professionals to use databases
and live links to deliver better solutions to their customers in a mobile environment.
Speed of connectivity, and increase in the memory spaces of mobile devices also
contribute significantly to enhancing user productivity, efficiency, and effectiveness from
the mobile sales function.
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8. Enable the Field Professionals Including Mobile Sales Force
Certain functions and roles need the professional to be away from the campus. For
instance, a sales force need to be customer facing, as do field service professionals in the
utility vertical. Large portions of logistics need connectivity on the move and access to
information while being away from campus.
Analysis of the Mobile FSM Opportunity
The North American mobile FSM segment is one of the most exciting markets in the
North American mobile CRM industry. Clear mandates of service resolution and
equipping the mobile workforce with information on the field to resolve customer service
requests continue to be the most important issues that need to be addressed in this
market. The growing need for improving customer service for SMBs and the need for
immediate resolution of various service tickets are the basis for interest in mobile FSM
solutions.
Integration of People, Parts and Workflows
The integration of people and parts is continuously increasing the value proposition to be
derived from mobile FSM solutions. This is contributing to optimization of the mobile
workforce, better location tracking, easier access to information in a mobile environment,
and helps in the performance management of the mobile workforce. Furthermore, the
element of convergence is critical in offering real-time solutions to the customer in a
highly competitive environment. One of the significant shifts in the mobile FSM market is
the increasing emphasis on better utilization of mobile FSM solutions toward better
service delivery. Earlier protocols of authority, approvals, and related workflow engines in
service resolution are increasingly embedded into mobile FSM solutions, thus providing
the customer with a quicker turnaround in service. This inclusion of workflows into the
mobile FSM solutions is also constantly helping organizations in improving their service
quality. The speed of ticket resolution as a metric of measurement can now be measured
in a methodical and more efficient manner.
Key Usage Areas of FSM Solutions
While the majority of the mobile FSM solutions are directed at addressing the needs of
inventory, spare parts, and service resolution, there is considerable interest in a new set
of applications in the FSM space. Some of these usage areas include asset management,
improvement in the maintenance of asset uptime, more prudent asset tracking including
emerging areas of GPS and internal tracking, effective repair systems, fallback options on
inventory and so on. These new usage areas are helping vendors enhance the range of
addressable issues with the customer. It is equally important to note that several of these
products are device-agnostic and operate on multiple operating environments.
Empower the Mobile Professional
Studies indicate that professionals are increasingly less desk-bound. Mobility in-campus as
well as out-of-campus is a growing trend. These results are corroborated by studies of
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9. office space usage. A growing number of SMBs now have an increasing number of people
working on the field, or working from alternate working environments such as home
offices. This trend is further supported by the technology that encourages mobile
workers. Currently, the majority of these rely on the use of the laptop that links back to
the back-end enterprise application. A mechanism to push and synchronize data
automatically is a significant value addition.
Field Service Automation Solution (mobile tasks)
Navigation (text)
Basic dispatch and scheduling Audible navigation
Wireless forms Route optimization
Data collection (signature,
Richer dispatch
image, barcode) Weather alerts
Work order status Richer integration options Integrated demand forecasting and
Basic back-office integration Event confirmation/Customer analysis tools
notification
Basic Capabilities Additional Functions Premium
THE SMB OPPORTUNITY
Field Service Automation Solution (mobile tasks)
While the end-user space was widespread across verticals, good traction was seen in the
enterprise segment. Small and medium-sized enterprises are skeptical about mobile SFA
deployments, given the constraints on their IT budgets and limitations in usage. In the
recent past, this phenomenon has had a snow-balling effect on the SMB segment, with an
increasing number of companies favorably looking at adding mobility to their IT
strategies. The momentum in the enterprise segment is expected to gradually penetrate
the small and medium business segment in the future.
Recent innovations in the areas of collaboration and interaction have created strong
traction amongst mid-sized and large organizations. Businesses are facilitating a market
transition by tapping into the value of new technologies and services. The openness to
review the IT infrastructure has created significant opportunities for vendors to explore.
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10. Today’s SMB Sector
Top purchase criteria
Defining SMB: <500 employees
• Reliability
• ~90% have fewer than 20 employees
• Ease of deployment
Central business imperatives • Ease of use
• Control and reduce expense • Scalability
• Boost employee efficiency • Features and functions
• Increase market share and revenues Major barriers to sale
• Satisfy and retain customers • Lack of financial resources
• Fears re: reliability
Purchase decision-maker
• Lack of internal technical expertise
• Smaller SMB: Owner or Operations Manager
• No clear compelling need
• Larger SMB: IT Manager, Dept. Heads, Management
Committee The ideal SMB offer
Still-strong preference for traditional channels • Clear, fast ROI
• Looking for: Expertise; Track Record of Service and • Hosted, monthly pricing
Support; Initial Costs • Simple entry point
• Gravitate to channels that are local, that they know, • Instant connectivity
that they trust • Modular add-ons; Tiered packaging
• Will lean hard on their channel • Easy demo capability
• Vertical-specific capabilities (if necessary)
Return on Investment (ROI)
While there is considerable increase in the interest levels and adoption of mobile CRM,
end users are still skeptical about the return on investment from these products, from a
total cost of ownership standpoint. Issues of scalability, flexibility, scope to enhance the
functionality to include emerging business models and customer requirements, extension
of service capability using the mobile CRM solution across partners in remote locations,
service optimization, and such other parameters continue to be the key decision points in
mobile CRM investment decisions for the SMBs. However, given the nature of these
solutions, end users in the small and medium businesses are willing to adopt these
solutions in a phased manner and have started to realize positive ROI as well. This is good
for the solution providers as well, in terms of their learning and constant upgrades of
their technology framework, based on the feedback from end users.
REVENUE ANALYSIS
Mobile CRM Revenue Forecasts
The North American mobile CRM revenues are expected to grow at a CAGR of 15.2
percent to reach a size of $673.6 million in 2013. The mobile CRM market is segmented
into three categories, namely, Wireless CRM, Laptop/Tablet PC CRM and Offline CRM
segment.
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11. The revenues forecasted for each of these segments are as follows:
• Wireless CRM is likely to be the fastest-growing segment. This segment is expected to
reach a size of $442.8 million in 2013, at a CAGR of 23.7 percent.
• The laptop and tablet PC CRM segment is expected to grow at a CAGR of 7.7 percent,
to reach a size of $210.8 million in 2013.
• The Of-line PDA segment is expected to experience a declining trend to $20.1 million
in 2013, at a negative CAGR of 3.1 percent.
Mobile CRM Market Growth
Mobile CRM Revenue Forecast
800
Revenues ($ Mn)
600
400
200
0
2006 2007 2008 2009 2010 2011 2012 2013
Revenues ($ Mn) 250.2 294.6 344.3 399.8 462.1 529.6 599.4 673.6
Year
Mobile FSM Revenue Forecasts
The mobile field service management (FSM) packaged software segment of the North
American mobile CRM market is projected to grow at a CAGR of 18.9 percent to reach a
size of $372.0 million in 2013.
Mobile FSM Market Growth
Mobile FSM Revenue Forecast
400
Revenues ($ Mn)
300
200
100
0
2006 2007 2008 2009 2010 2011 2012 2013
Revenues 110.9 136.0 165.3 199.2 237.7 280.0 325.1 372.0
Years
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12. KEY DRIVERS FOR MOBILE CRM & FSM
Reduction in Prices of Mobile Devices Boosts Adoption of Mobile CRM Solutions
For many organizations, especially in the mid-market category, the barrier to entry for
mobile solutions has been the high cost of mobile devices. The reduction in prices of
mobile devices over the recent past is likely to lead to an increase in adoption of mobile
CRM solutions. This helps companies enable mobile capabilities at cost-effective rates and
translate their mobile solutions to these devices toward achieving better productivity and
efficiency from their mobile workforce.
Steady Tariff Plans from Carriers Creates Considerable Scope for Control in
Operating Expenses for Mobile CRM
While the reduction in device prices helped decrease expenditure on devices, the
operating expenditures on mobile solutions received a huge fillip with the standardized
tariff plans from various operators. This has helped companies in better estimating their
cash flows and working capital needs for mobile CRM investments.
Expansion in the Number of Applications on Mobile Devices Provides Greater
Benefits to Mobile CRM Users
E-mail applications have been the most prevalent applications on mobile solutions. The
introduction of various other applications into the mobile CRM framework significantly
contributed to a growth in adoption of these solutions. The wider choice of applications
provided users with greater functionality options and better choice of solutions in
addressing the various sales or service issues.
New Versions of High Powered Devices Creates Platforms for High Impact Mobile
CRM Usage, thus Driving Adoption
Mobile device manufacturers are building more robust devices that support higher
bandwidth, scale, and operational needs across platforms. The thrust on developing high
impact mobile devices that help in better decision-making for the mobile workforce has
contributed to greater interest in these solutions during the year.
Convergence of Mobile Devices in the CRM Environment Spawns Market Growth
Device compatibility across platforms has created many a bottleneck in the effectiveness
of mobile solutions. However, there has been a marked increase in the number of
solutions that are device and platform agnostic and work across a varied choice of
devices. This has particularly helped SMBs, as they can afford to have their existing
devices, without having to introduce a specific type of device or platform. This has led to
substantial increase in the adoption of mobile solutions.
Higher Traction in the On-Demand CRM Market Has a Positive Impact on the
Uptake in Mobile CRM
The move by the CRM industry at large towards adoption on-demand solutions has had a
positive influence on the mobile CRM industry. An increasing number of mobile
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13. applications are supported in the on-demand framework that creates significant room for
a more efficient and productive mobile workforce.
Incorporation of Functional Workflows of Sales and Service into Mobile CRM
Solutions Improves Ease-of-Use, thus Boosting Adoption
Mobile CRM solutions are now incorporating workflows from sales and service into the
applications. With better application design, end users are benefiting from a more robust,
function-driven application. This is creating considerable scope for buy-in from an end-
user perspective.
Rising Competitiveness Creates Demand for Faster Decision-making
Globalization in many cases has resulted in intensifying the competition. In the ‘flat
world’, competitiveness has increased manifold. The demands on decision making are
stricter than before. With such high stakes, SMBs are exploring ways to improve
processes, including decision making.
Changing Work Patterns Create a Natural Demand for Communication On-the-
move
There has been a gradual evolution of employee work patterns. One reason for such
change is the advancement in technology, enabling alteration of working style. The effects
of advances in technology have definitely played a role in shaping the early adopter
conditions. In addition, restricted supply of key skill sets in certain sectors, such as the
contact centre industry, has created an urgency to implement home-worker type
solutions. The twin base of field-service professionals and home workers has created a
significant market audience. The pressures of competition have forced organizations to
improve the operational efficiencies of their employees. Mobile applications increase the
reach of the enterprise and help build the critical efficiency. This in itself is creating a shift
in work patterns.
Efficiency Gains through Increased Availability Helps Improve Profitability
While the core proposition of mobility in businesses is increased availability, this alone is
not compelling for the decision makers of the buying organization. Solution providers
need to demonstrate utility through increased availability to gain mindshare. The
manufacturing sector has clearly demonstrated the value of mobile applications in
improving decision making on the shop floor. The FMCG companies have seen a marked
efficiency by a factor of three in inventory management. Greater flexibility and time
savings in the SMB sector, with field service organizations, such as freight, logistics and
on-site professional services, help them gain efficiency. SMBs need to create case studies
and success stories to demonstrate how critical applications deployed through mobile
devices can positively contribute to the balance sheets and overall competitiveness of the
organization.
Lower Operating Costs through Alternative Wireless Access Technologies Increase
Attractiveness of Mobile Data Solutions
One of the largest components of costs is the operational cost of access. Despite the
pressure from competition and scrutiny of regulators, licensed operators with large
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14. geographical coverage continue to charge a premium for data services. This causes many
organizations to re-think their mobile application strategy. Broadband access technologies
such as WiMAX and WiFi – and the foray of compatible devices will boost the uptake of
mobility with SMBs.
Top Market Drivers for Mobile CRM/FSM
Mobile Enterprise Market: Market Drivers Ranked in Order of Impact
Ran
Driver 1-2 Years 3-4 Years 5-6 Years
k
Downward revision in prices of mobile devices boosts adoption of
1 High High High
mobile CRM solutions
Steady tariff plans from carriers creates a good room for control in
2 High High High
operating expenditure for mobile CRM/FSM and sustains interest
3 Rising competitiveness creates demand for faster decision-making High High High
Efficiency gains through increased availability help improve
4 High High High
profitability
Expansion in the number of applications on mobile devices
5 provides greater benefits to mobile CRM/FSM users, thus boosting High High Medium
market traction
Lower operating costs through alternative wireless access
6 Low Medium Medium
technologies increase attractiveness of mobile data solutions
Growing ecosystem of independent application developers
7 Medium Medium High
increases the utility of the platform
Source: Frost & Sullivan
VALUE PROPOSITION OF THE MOBILE CRM APPLICATION TO SMB S
Availability Cost Influence
Opportunity Play Time Influence
Utilisation
of
Back-end
Applications Source: Frost & Sullivan
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15. Availability
The key value proposition of any mobile application is ‘availability’. Availability of key
resources improves the overall business performance significantly. Mobile applications
enable the availability of structured and relevant information, in addition providing to a
mechanism for resolving issues away from the desk. It improves efficiency and reduces the
total cycle time. This has a net positive effect not only on business continuity, but also on
the confidence level of employees, both of which affect the top-line favorably.
Cost Influence
In a business where time is money, lost time is lost money. ‘Availability’ in such an
environment helps address contingency situations with greater ease. This ultimately affects
cost. For example, cost of inventory management can be reduced at every level by better
connectivity between the decision-makers and the inventory. A tighter supply-chain can
minimize dead times in a production cycle. A real example is the use of mobile
applications in a national railway organization. Analysis suggests that when the drivers
were equipped with mobile applications for date-time entry and checking travel schedules,
the operators’ efficiency in service continuity improved by 35 per cent.
Time Influence
One of the biggest advantages of mobile application is time savings. Higher levels of
availability and access to applications empower personnel to perform their roles more
effectively, thereby saving time. For instance, field personnel in the professional services
industry enjoy greater flexibility with their schedules, helping them reduce idle time. Sales
force, logistics personnel and the retail industry can also benefit from time efficiency by
the use of some of these applications.
Opportunity Play
Timely information is directly related to business opportunity. Reuter’s effort in creating
financial value through timely ticker news is relevant in the mobile enterprise world.
While the core value proposition still revolves around increased availability, the increased
scope of business opportunity can be a competitive differentiator in many situations.
Utilization of Back-end Applications
Certain information-based systems are better utilized when they can be accessed on
mobile devices. For instance, it is often found that the accuracy and timeliness of sales
information in a mobile CRM application increases when field professionals make on-the-
spot entries in the system. As the information available in the back-end improves, it helps
the front-line professionals with better information the next time. In effect, this forms a
virtuous cycle.
In addition to the above, mobile applications can improve several business functions such
as sales, marketing and decision making.
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16. STRATEGIC RECOMMENDATIONS
Adoption of Mobility Applications is Essential for Competitive Differentiation
• Most mobile solution providers have been successful in targeting the established
markets and the top end of the value chain. Vendors are identifying the potential
opportunities available in SMB segment and map their business strategies to align with
the specific field service needs. There is a strong case for SMBs to adopt mobility in their
organizations so as to create a competitive edge for themselves in an effort to increase
productivity, provide higher levels of customer services and as a result, boost revenue
potential.
Usability is a Key Factor that Needs to be Accounted in System Design
• One of the key factors in a successful deployment of mobile enterprise is its ‘ease of
use’. Frost & Sullivan recommends user organizations to involve their users in the
system design process. It is important for system designers and architects to gain
feedback from several business users so that they understand the workflow, the
processes and the fields that are important to the users.
• Ease-of-use, “pocketability”, and instant-on convenience offered by mobile CRM can
significantly improve outside sales force usage rates. Exposure should be provided to
only that much of the system that the user will need in their daily use. Abstraction is
very essential. It is to be made sure that the users can access to at least 80 per cent of
their requirements within three clicks. Optimising real-estate on the screen is crucial.
Decision makers in the organization need to work closely with the solution providers
to be able to drive this objective in the best manner.
Streamline Vendor-customer Management
• SMB decision makers indicate their frustration with having to deal with multiple parties
to resolve issues. It is important to realise the intangible value of a simplified vendor-
customer contract and relationship. RIM has been very effective in this space. It has not
only eliminated most, if not all, sources of channel conflict, but also ensured that the
customers do not have to deal with multiple parties. IBM’s ecosystem of solution
vendors provide different skills that build and address critical business drivers across the
value chain. Using this model, the user organization will rely on IBM for the complete
set of infrastructure requirements of mobile enterprise solutions. IBM and IBM’s
Industry Solution Vendors (ISVs) deliver innovative business value and growth in the
market through internal operational efficiency and sharper focus on customers by
transforming business processes across the extended enterprise.
Cost Predictability is Essential to Grow Installed Base
• Though surveys indicate substantial growth opportunity for business mobility, the
growth rate in reality has not been very high. Despite the presence of a ‘pull component’
in the market, user organizations appear cautious. One of the key reasons for this
behavior is the unpredictability of TCO.
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17. • For instance, when scaling a pilot deployment, it is seen that costs tend to rise
disproportionately. This puts a lot of unplanned budgetary pressure on the user
organization and makes previously approved ROI models redundant.
• The industry participants need to develop pricing models to reduce the unpredictability
to manageable levels. Indeed, there has been some noteworthy progress. For instance,
several tier-1 carriers offer flat tariff for wireless e-mail/PIM subscribers within the
country.
• It is to be understood that the market is not looking for a pre-packaged solution, but
rather want to be able to manage and predict the costs associated.
Need to Transform the Solution from ‘Nice to Have’ to ‘Must Have’
• One of the key objectives for the SMBs is to help organizations acknowledge the true
value of mobile enterprise applications. It is crucial for early adopters to ensure that
deployments are not only successful, but also the value they get out of the deployment
justifies the cost. SMBs should work closely with solution providers to build cutting edge
solutions that render them highly competitive. Unless competitive differentiation from
the use of mobile enterprise applications is strong enough to spur a drive for technology
parity, vendors will have to strongly rely on push marketing rather than the pull effect.
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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their
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