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Northrup Grumman, Boeing, and Others: Employee Connectivity Trumps ROI for Mobile Devices and Wireless Technologies

t isusually the case that chief information officers (CIOs) need to be concerned with the return on investment (ROT) associated with the decision to deploy a particular technology solution. When it comes to wireless technologies usedto empower a mobile workforce, the ROI seems to be a minorissue. Such technologies have become so ingrained in companiesthat return-on-investment concerns are often deemedless important than total connectivity of the workforce. For example, Northrop Grumman Corp. CIa Keith Glennan said the aerospace company views Research in ,\lotionLtd.'s BlackBerry hand-held systems as essential to its global operations. At a CIa forum sponsored by the IlirelessInternet for the Mobile Enterprise Consortium at theUniversityof California, Los Angeles, Glennan said that theLosAngeles-based company has rolled out 5,500 BlackBerryunits to its employees, making it one of the largest users of the wireless devices. In fact, every time Research in Motion releases a newmodel, Northrop Grumman tests the technology in a corporate jet to ensure that it can provide mobile services to executives while they're in transit. Cost isn't the issueconnectivity is. The BlackBerry appears to be the current product of choicefor wireless devices, and a review of its capabilities reveals why.BlackBerry wireless devices provide users with phone, e-rnail, text messaging, Web browser, and organizer applications in a compact and intuitive handheld. Features

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that most attract corporate users include the large, highresolution screen and 65,000+ color display. In addition, integrated e-rnail attachment viewing, the brightly backlit keyboard, and a battery life unrivaled among hand-held wireless devices all contribute to BlackBerry's popularity. Scott Griffin, CIa at The Boeing Co. in Chicago, said his company also uses BlackBerry devices extensively with seemingly little regard to cost. Boeing does not do an ROI on mobility, he noted. "Some people simply must be connected, and then we figure out how much mobility they need." Griffin said that because Boeing seems to move each of its workers to new locations on an annual basis, building wireless connections into company facilities makes sense. It's easier and less expensive to hook up transplanted employees via wireless links than by installing new Ethernet jacks, he said. But Griffin added that IT managers also have to think through how to deliver all of Boeing's applications so they can be used on small LCD screens. That includes the applications now used by Boeing's engineers on high-end scientific workstations. The major challenge with this requirement lies in the fact that to fully port an application to a smaller screen, a large portion of the application's interface must be re-created. Often, this can be more costly than the original application. Companies all over the world are moving to large-scale wireless solutions for their employees. Lance Perry, vice president ofIT infrastructure at Cisco Systems Inc., said the networking vendor has about 30,000 remote users in 100 countries. "Even 9-to-5 workers have mobility needs when they go home," he pointed out. Corporate IT executives can't afford to ignore or dismiss mobility requirements because of ROI concerns, Perry advised. Mobile computing capabilities have become "a critical component of a company's success," he said. But Perry added that companies can better manage their costs by using wireless technology to its fullest. For example, they could give end users IP-based "soft phones" built into PCs for use in making international calls over public-access wireless networks. Long a popular gadget for lawyers and businesspeople, the BlackBerry wireless hand-held device has even been drafted into the U.S. war on terrorism. Massachusetts State Police officers patrolling Boston's Logan International Airport are using BlackBerry devices to perform background checks on suspicious individuals, according to LocatePlus Holdings Corp., which makes the AnyWhere RIM BlackBerry product used by police for the

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Module II I Information

Technologies

more than 200 million U.S. residents, according to a statement attributed to Massachusetts State Police Lt. Thomas Coffey. The LocatePlus database integrates data from a wide variety of public and private sources, such as motor vehicle records. Using proprietary data-mining technology, LocatePlus analyzes the data and assigns a security rating to individuals. All information is encrypted. In addition, individual BlackBerry devices must be registered with LocatePlus to access the information, he said. Since earning ignominious distinction as the point of departure for two of the four hijacked planes used in the September 11, 2001, terrorist attacks, Logan has been an early adopter of technology that could be used to thwart future attacks. Another example can be found at British Nuclear Fuels Limited (BNFL) , a $4 billion provider of products to the nuclear energy industry. Operating in 16 countries with over 23,000 employees, BNFL recognizes that better management of e-mail and improved access to corporate data can have a dramatic impact on employee productivity. Part of BNFL IT Manager Steve Davies's role is to keep abreast of the latest technology developments that could cut costs, maximize efficiency, and improve service.

Davies saw immediately the potential of the BlackBerry wireless solution, which would enable "downtime" to be converted into productive time. With the ability to integrate existing applications onto the BlackBerry, employees are not only able to receive and send e-mails, they can also manage their diaries instantly regardless of their physical location. "A lot of our mobile employees are frustrated with the time it takes for a laptop to power up and dial in just to reo trieve their mail. Timely communications do not just improve general communications; they are absolutely critical in some situations such as bids for major international projects or even in keeping our press officers up to speed," explains Davies. Ken Venner, CIO at Broadcom Corp., an Irvine, California-based semiconductor maker, sees the growing ubiquity of public-access networks as a boon to laptop-toting mobile workers. He said it's up to IT departments to ensure that business users have access to solid, secure connections, no matter where they're working.
Source: Adapted from Bob Brewin, "CIOs Say ROI on Mobile Devices Not a Big Concern: See Wireless Technology as a Must-Have," C01llpltterworid, February 23,2004, and Paul Roberts, "Logan Airport Using BlackBerries for Background Checks," Computertsorld, june 22, 2004. Copyright 2004 by Computerworld Inc., Framingham, MA 01701. All rights reserved.

CASE STUDY QUESTIONS

1. What are some of the benefits that organizations could realize by connecting all of their employees by mobile devices? 2. Are the CIOs in the case saying that ROI is not important when deploying mobile computing devices? Explain your position. 3. The case suggests that an increasingly popular mobile device is the BlackBerry. What is it about the BlackBerry that makes it so popular? Check out the Research in Motion website at www.rim.net to help with your answer. 1. The BlackBerry mobile device, while extremely popular, is but one of several devices available for mobile communications and messaging. Using the Internet, see if you can find out who the major competitors are and what strategies they are using to advance their products into the marketplace. Is it features, price, brand, or something else? Is BlackBerry really the leader? 2. One user of wireless, mobile technologies described in the case is the Massachusetts State Police. Their ability to quickly gain information about suspicious persons is intended to thwart terrorism. Can you think of other ways that law enforcement could use such technologies to fight crime and increase public safety? What are some of the potential problems that may arise with these practices? Break into small groups with your classmates to discuss these issues.