STRATEGY ANALYTICS INSIGHT

Enterprise Mobility Requirements 10 November 2009

Three Reasons to Embrace, Not Fear the iPhone

Snapshot
While smartphones, most specifically BlackBerries and Windows Mobile devices, had historically been reserved for the executive suite, Apples iPhone has become in just two years the primary catalyst for widespread adoption of smartphones. This Insight provides three key suggestions on how organizations can reap the most benefits from either allowing employees to use their own iPhones or including it as part of its mobile device portfolio.

Analysis
Theres no question that there is an increased take-up of mobility in the corporate setting, as Strategy Analytics research has shown tangible benefits from the adoption of mobile solutions. While organizations continue to invest in mobile solutions, they are also weighing the perceived need of providing handsets and voice/data plans to their employees. This growing trend of transitioning from purely corporate liable devices towards allowing individually liable devices has been fuelled by the proliferation of powerful, yet consumer friendly devices such as the iPhone also known as the consumerization of enterprise mobility. Figure 1: Work Improvements derived from using the iPhone

Workflowefficiency Workforceflexibility Corporatecompetitiveness Revenues Profitability 0% 10%

16% 14% 26% 25% 27%

31%

37% 37% 42%

31%

20%

30%

40%

50%
AllOthers

CompaniesthathaveemployeeswithiPhones

Source: Strategy Analytics

US Headquarters: 199 Wells Avenue, Suite 108, Newton Centre, MA 02459 USA Tel : 617.614.0700 Fax: 617.614.0799

European Headquarters: 171 Midsummer Boulevard, Milton Keynes, MK9 1EB. UK Tel: +44 1908 423 600 Fax: +44 1908 423 650
Strategy Analytics 2009

While the iPhone remains one of the most sought after devices in the market, IT departments have been reticent to allow these consumer devices into their work environments. Strategy Analytics believes however, that the consumerization of enterprise mobility is a growing and unstoppable trend that should be embraced and not feared. In fact, prior Strategy Analytics research has shown that organizations that have allowed the iPhone to be used by their employees have seen a measurable improvement in a number of key productivity metrics (see Figure 1, above). To that end, organizations and IT departments should consider the following three suggestions:

# 1 Embrace, Dont Fear, the Catalyst of Change

Strategy Analytics research has found that the proliferation of smartphones in the marketplace is increasingly coming from people who chose to purchase their own device for personal use, who secondarily want to have it connect to their corporate email (and other business applications). As this acquisition approach is very different from even just one year ago when smartphones were primarily distributed by a company, IT departments need to realize they must change the way they approach mobility strategy and policy creation. Part of this change in strategy includes a change in fundamental mindset where the IT department becomes more open to the various needs of the workforce as opposed to simply mandating options and forbidding choice. This approach is based upon the notion of IT Service Management the discipline of managing IT systems, philosophically centered on the customer's (i.e., employees) perspective of IT's contribution to the business. This desire for improved employee satisfaction ties to the importance of having a mobility strategy with defined mobility policies. Strategy Analytics research shows that organizations with defined mobility policies are able to reap far greater benefits from their mobility investments as compared to companies with no defined policies and procedures. The iPhone and other consumer-friendly devices create an opportunity for forward thinking IT departments to change their approach to mobility strategy development and policy creation and jump ahead of the consumerization curve. Figure 2 shows how organizations that allow their workforces to use iPhones are in fact more concerned than all others regarding how mobile devices and solutions can help drive workforce flexibility and satisfaction. These organizations consider their workforces ability to create value for their organization a critical success factor for future growth and recognize that the third screen of mobility is key to that success.

US Headquarters: 199 Wells Avenue, Suite 108, Newton Centre, MA 02459 USA Tel : 617.614.0700 Fax: 617.614.0799

European Headquarters: 171 Midsummer Boulevard, Milton Keynes, MK9 1EB. UK Tel: +44 1908 423 600 Fax: +44 1908 423 650
Strategy Analytics 2009

Given the findings, Strategy Analytics believes that the organizations that adapt their mobile strategies to provide best of breed, customer-centric mobile services and solutions to their workforce will ultimately gain the greatest value from their workforce while driving employee satisfaction. Figure 2: Critical Success Factors for Mobile Deployments

Improvementsinworkforceflexibility Improvementsinworkflow Impactofmobilityonprofitability 0% 10% 20%

24% 29%

41% 41% 41%

51%

30%

40%

50%

60%

CompaniesthathaveemployeeswithiPhones

AllOthers

Source: Strategy Analytics Organizations that choose to fight the consumerization of enterprise mobility run the risk of falling behind their competition as they may appear to not care about their employees needs. This can reduce the workforces motivation to succeed and thus have a negative impact on the performance of the company. The iPhone and other consumer friendly devices provide companies the opportunity to define (or refine) their mobility strategy and policies. This new flexible mobility strategy that embraces consumer friendly devices will provide

companies a ground-up competitive edge and avert a top-down rigid policy enforcement concern.

# 2 Embrace, Dont Fear, the Revolution of Choice

Today, we take for granted the ability to not only make calls, but also send/receive text messages or email on our mobile devices. The continued mass market adoption of smartphones and improved mobile browsing

experiences, speaks to how society is now transitioning from the general need for data and information, to an expectation of, and requirement for, constant access to knowledge and content. This shift towards an era of constant knowledge also means that the distinction between personal and professional personas is blurring. While some will argue that these lines must remain strictly separated, the Mobile Life is upon us and society should instead focus on the What as opposed to the How and When. Employees should be able to choose the device that will make them most effective in their role, regardless of the platform. Just like

organizations must stop fearing change, forward thinking organizations should recognize that the benefits that

US Headquarters: 199 Wells Avenue, Suite 108, Newton Centre, MA 02459 USA Tel : 617.614.0700 Fax: 617.614.0799

European Headquarters: 171 Midsummer Boulevard, Milton Keynes, MK9 1EB. UK Tel: +44 1908 423 600 Fax: +44 1908 423 650
Strategy Analytics 2009

come from this freedom of personal choice are outweighed by the challenges and potential risks that come from having to support and manage multiple mobile platforms. The real opportunity for organizations is in fact to broaden a workforces productivity outside the workplace by allowing them to use mobile devices that they personally identify with as opposed to mandating certain platforms. Providing employees a device they enjoy for personal use will provide the halo effect that they will be more likely to use it more frequently and effectively for work regardless of the time of day. This notion of the OnDemand Workplace will be driven by the workforce that wants to use the mobile device(s) they love for personal use - for work during their personal time.

# 3 - Embrace, Dont Fear, User Responsibility

Organizations must understand that enterprise mobility is very different from other corporate IT implementations. While most employees dont bring their own laptops to their workplace, the consumerization of enterprise mobility changes the game. That said, while employees do have greater flexibility and choice, they must also take on greater responsibility in terms of being good mobile corporate citizens. They must agree to follow corporate policies regarding self-enrolment, as well as self-governance for expense management and general mobility policy compliance. While the IT department must still be responsible for setting the guidelines for appropriate use of mobile devices, the onus must not be solely on the IT department to ensure employee compliance of these mobility policies. In fact, if the IT department must control mobility with an iron fist, mobility will not deliver on its promise to the organization. In the employee-driven world that is at the core of the consumerization of enterprise mobility, traditional commandand-control no longer works. IT departments and employees together share the responsibility of security, policy, and cost compliance. This changes the IT departments role from mobile police officer to mobility guide, which is both a much more efficient and customer-centric mindset per the notion of ITSM.

One More Thing: Embrace, Dont Fear, the App Store

Apples App Store provides by far, the largest breadth of mobile applications. While some organizations are concerned that this poses a potential security threat (because of the wide variety of consumer-centric applications), this should not be the case. In fact, Apples App Store currently houses over 2,000 applications under the Business category from companies including Cisco, Salesforce.com and QuickOffice. With the wealth

US Headquarters: 199 Wells Avenue, Suite 108, Newton Centre, MA 02459 USA Tel : 617.614.0700 Fax: 617.614.0799

European Headquarters: 171 Midsummer Boulevard, Milton Keynes, MK9 1EB. UK Tel: +44 1908 423 600 Fax: +44 1908 423 650
Strategy Analytics 2009

of work-centric applications, as well as other applications that can provide value to a mobile workforce (e.g.: flight schedule applications), IT departments actually have the opportunity to think strategically about the App Store. Specifically, organizations should consider developing a list of approved or recommended applications from the App Store. This provides a number of benefits in terms of minimizing the variety of applications that employees may choose to install, as well as a way to reduce the amount of time employees spend to find the best applications available. To this latter point, IT departments can also benefit from polling their own employees regarding which applications they find to be of greatest value. This bottom-up approach can help improve user compliance in terms of what they are installing on their smartphone. This type of catalogue can be a communication mechanism that bridges the chasm between IT and the workforce to provide greater value for employees. This is a prime example of how IT departments can leverage the concept of ITSM in Point #1.

Conclusion
Whether considering the iPhone or other mobile platforms in the era of the On-Demand Workforce, IT managers must realize that the consumerization of enterprise mobility has already changed the IT landscape permanently. Platform heterogeneity, app stores, social networking, and other real-time phenomena are the new paradigm. As opposed to trying to prevent the groundswell from invading their walled gardens, IT managers should instead accept the unavoidable and turn it to their advantage. Much like a traditional IT environment, IT professionals must learn to manage multiple mobile platforms, be adept at understanding what their application portfolio can do. The mobile/social web has made employees become more productive and nimble both in and out of the office. Tomorrows most successful organizations will have equally, nimble and forward thinking IT staffs today. Contact Information To explore this topic in more detail or to hear how our solutions (Workshops, Presentations, Consulting engagements, annual multi-client services) can support you please contact us www.strategyanalytics.com/solutions.html The author of this Insight, Philippe Winthrop, can be reached at pwinthrop@strategyanalytics.com

US Headquarters: 199 Wells Avenue, Suite 108, Newton Centre, MA 02459 USA Tel : 617.614.0700 Fax: 617.614.0799

European Headquarters: 171 Midsummer Boulevard, Milton Keynes, MK9 1EB. UK Tel: +44 1908 423 600 Fax: +44 1908 423 650
Strategy Analytics 2009