ECT 589

Mobile Enterprise

Part I

Agenda

• Components of Mobile Enterprise

• Mobile Enterprise Applications for CRM and SFA

• Case: Marriott International

• RFID Trends and Issues

Components of Mobile Enterprise

Planning Issues on Mobile Enterprise

1. What are the key mobile investment decisions an enterprise must make to support business process fusion and real-time enterprise in 2008?

2. What rules can enterprises employ to correctly invest in the coming mobile adoption wave?

3. What is the technology “sweet spot” for mobility that makes the biggest impact on the enterprise workforce?

Business Process Fusion and MobilityMobile components are key because:

– Multiple end-to-end processes involved – Boundary crossing

– Span operational and management processes

– Agility ⇒ explicit process definition (design time)+ BPM (runtime)

– Process improvable– Creation of new states/statuses — higher levels of

visibility– Application composition (⇒ system integration)– Handle structured and unstructured data

– Strategic — to gain business advantage

SuppliersServices

Perform Planning

DevelopProducts

ProduceProducts

DeliverProducts

ManageCustomers

Customers

• New and improved products

• New channels and markets

• Reduced inventory

• Faster to market• New product

functionality• Easier regulatory

compliance• Better design

• Faster orders

• Better information

• Lower costs

• Higher productivity

• Lower costs• Reduced inventory

• Improved quality

•Lower costs•Faster delivery•Reduced inventory•More responsive

• Lower costs• Better cross-selling

• Easier customer acquisition

• More profitable customers

• Better service

• Faster service

• Better information

• Lower costs

Provide Support Services

• Easier communications• Lower costs• Faster decisions• Improved recruitment• Better staff development

• Faster reports• Shared knowledge• Easier regulatory compliance• Better staff development

Corporate Performance Management

Business Process Fusion Spans Processes

Mobility affects all processes in value chain

Value Chain

U.S. Adoption of Mobile Applications Fall 2003

0% 20% 40% 60% 80% 100%

Mobile IM/SMS

Mobile E-Mail/PIM

RFID

CRM — SFA

CRM Field Service

ERPII/EAM

SCM/Logistics

ERP Manufacturing

ERP Inspections

Video/Imaging

ApplicationCategory

% of Enterprises

Production/Pilot

Assessing

Inactive

Enterprise Adoption of Mobile Applications

Four Classes of Mobile and Wireless Investment

Lower impact, scaled with difficulty

Higher impact, scaled with difficulty

Higher impact, easily scaled

Lower impact, easily scaled

E-mail, voice, SMS, machine-to-machine, group voice

Class RecommendationApplicationsPlan for enterprisewide mobile e-mail by 2007, pilot machine to machine in 2004

Field service, fleet mgmt., supply chain (visibility, routing, tracking),warehouse, predictive and preventative maintenance, healthcare point of care Instant messaging, enterprise WLAN (horizontal applications), WLAN hot spots, business to consumer

Sales force automation, hospitality, healthcare operations

Prioritize investment in 2004; increase investment in integration brokers and other architectural enablers

Treat as tactical, and continue measured investment through 2005

Treat as tactical investments, place more scrutiny on technology and ROI

Terse data expanded on useGUI processing at clientLocal copies of dataConsumer location mattersDistributed centersApplication on few, big servers

Full images storedThin is in!Central copies of dataCentralization for scale advantageConsolidatedApplication on many, little servers

Compute cheaper than bandwidth Bandwidth cheaper than compute

1

10

100

1,000

10,000

100,000

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Processor Frequency

Equivalent Software Load

Wired Bandwidth More Cost-Effective Than Computing, Wireless Closing the Gap ...

Speed of adoption,technologies (e.g., broadband, fiber,WWAN, WLAN) varies by country, region!

The Trade-Offs of Mobile Computing

Portability Functionality

Blackberry

High Availability Voice and/or data Viewing/reviewing Light response Query

“Sit Down” Computing Data-centric Content generation CPU-driven Screen required

Pager

PIM

Phone

Mininotebook

Notebook

Smart-phone

PDA

Compromise Zone

Tablet PC

Professional Desktop Migration Paths:

Diversity Abounds!

pre-1998

90+%

2005

65%

5%

20%

10%

35%

3%

5%

55%

2%

2008

2nd- Generation

WAGs

Offline Platforms

E-Mail SyncDB

Sync

PIM Sync File Sync

Online Platforms

Browsing

Scripting Voice

Development Platforms

Management Platforms

Transformation

Link Management

Profile Management

Simulation Tools

Composite Applications

Collaboration

MultimediaManaged Diversity

Business Process

Modeling

Thin Client

Portal Servers

3rd-GenerationMultichannel

Access Gateways

Transaction SyncPush

1stGen.

Packaged Soln’s

Mobile Component Building Blocks

Technology Trigger

Peak of Inflated

Expectations

Trough of Disillusionment

Slope of Enlightenment

Plateau of Productivity

Maturity

Visibility

As of May 2003

Wireless and Mobile Application Hype Cycle

Key: Time to Plateau

SMS

VoIP Wi-Fi

Wireless E-Mail

Wireless IM

WirelessNumber Portability

Java 2 Platform, Micro Edition

Smartphones

Less Than Two Years

Location-Aware Services

MMS

MultichannelGateways

SIP-BasedPush to Talk

Wi-Fi Hot Spots

Wireless Local Loop

BREW

Two to Five Years

VoIP Wireless WAN

Wireless Audio/ Video Streaming

Five to 10 Years

Smart Dust

More Than 10 Years

Wireless Application Gateway

WirelessWeb/Portals

Obsolete Before Plateau

Wireless Metropolitan-Area Networking

Multiple Channels, Multiple Client Architectures: A Continuum of Choices

Online User InterfaceIntermittently Connected

Ad Hoc Online/Offline Rich Local, Offline Capability

Thin Thick

Full OS and Full Apps.,Distributed Local Data,File System/LAN Access,Multipoint Data Sync

Server-Based Apps., Remote Display

.NET(cf) ODADSHTMLand

LegacyGraphic Terminal

3290, VT240

Java J2ME, BREW

PersistentApplets

HTML+WAP

xHTML

Media Plug-Ins/Applets

WTS* ConventionalApplicationse.g., MS Office* Full OS & Full Apps.

Configured as Server

Dynamic Network Splitting and Component Distributionof Full Applications

SlimSlim

Citrix

Thin-Client

Complexity

Increasing Over Tim

e

Delivery Technology Continuum of Change

2000 2004Pre-1988 200819961992

32745150

VT240

NCSAMosaicMotifneWS

ANSI

ODADS ISVs

PC Remote Control

MS Remote Assistant

Function-ality

Thin-Client Frame ofReference Is Moving

Apps.Server

WebServerApp.

StreamingServer

ODADS Client

On-Demand Application Delivery System (ODADS)

Weaknesses• Scalability unknown• Vendor viability• MS commitment• Requires ODADS client• Cost of deploying

ODADS platform

Strengths• Delivered as needed• Central management• Client-side execution• Works over 56 Kbps to 128 Kbps

bandwidth• Rich experience• Can support Java, Windows, WTS

and .NET

Thick + Thin = Slim

Technology Trigger

Peak of Inflated Expectations

Trough of Disillusionment

Slope of Enlightenment

Plateau of Productivity

Maturity

Visibility

Less than two yearsTwo to five yearsFive to 10 yearsMore than 10 yearsObsolete before Plateau

Key: Time to Plateau

4G Wireless Technology

802.15.4

CDMA2000 1xRTT

CDMA2000 1x EV-DO

CDMA2000 1x EV-DV

Enhanced Data Rates for Global Evolution

General Packet Radio Service

Ultrawideband

Wideband Code Division Multiple Access

Wi-Fi 802.11a

Wi-Fi 802.11bWi-Fi 802.11g

Wireless PDA

Wi-Fi Protected Access

Ad Hoc Networking

BroadbandWireless Access

Mesh Networks

Bluetooth Cable Replacement

Bluetooth Networking

As of May 2003

Wireless and Mobile Networking Hype Cycle

WWAN

MAN

WLAN

PAN

Adjacent Near Field, Active RFID

Passive RFID

1M10M

100M1 KM

1,000 KM

GSM-CSD, Motient, Mobitex, CDPD

GSM-GPRS 1xEVDOCdma 1xRTT

W-CDMA

GSM-EDGE 1xEVDV

PMR

TETRA

ProprietaryFixed Mesh 802.16, WiMAX

802.11b802.11 a,b,e,g,h,i,f,n

Bluetooth

802.15.4

UWBProprietary

PAN Range

(Cellular)

(Metropolitan)

(Personal)

(Campus)

Key Wireless Networking Protocols: 2004 to 2008

Mobile Worker Locality Profile

Percentageof TimeSpent Mobile

Mobile Worker Class

TravelingWorker

DayExtender

CampusWorker

Teleworker0

20

40

60

80

100%

Mobile Worker Location Profiles

At Home

On the Road

On Campus

At Desk

Mobile Workers in the Real-Time Enterprise: Cog or Clog?

Mobile Instant Messaging

Time TrackingLocation Awareness

Paging

MobileVoice

Mobile E-Mail

VoiceMail

“Geo-Fencing?”

Job Stress, Job Security, Decreasing Paid Time Off

““Always Always On”On”

1. Identification and Justification• Use RTE Framework• Adopt Metrics Now

2. Business Process Change• Business Process Fusion• End-to-End Process Mapping• Business Process Outsourcing

3. Integration Competency Center• Investment in SOA, Integration Brokers• Investigate On-Demand App. Delivery• Reconsider Distributed Computing Model

4. Workforce Preparedness• Mobile Work Style Management• Policies

5. Networking Evolution• Real-Time Infrastructure• Model New RTE Bottlenecks

RecommendationsLink Mobile Investment to Five Key Business Unit & IT Activities

Mobile Enterprise Applications for CRM and SFA

Impact of Mobile and Wireless Applications

Per User Customization Effort and Support CostsLow/Moderate

SMS/paging

Mobile E-Mail(PDA, Phone)

M2M: Fixed OperationsMobile E-Mail

(Notebook)

Parcel Delivery

WarehouseSupply Chain: Visibility,

Routing, Tracking

Manufacturing

Delivery

Fleet Mgmt.

Construction Mgmt.

HealthcareCaregiver

B2G: InspectionsB2C: Field

Service

Public Safety

B2B: Field Service

EAM: Prevent Maint.

High

Sales Force AutomationHealthcare Operations

ROI-Driven

VOI-Driven

VOI- and ROI-Driven

B2C:Browsing

Campus WLAN

Hospitality

Financial Services

CommercialWLAN Hot Spots

Mobile IM

B2C: MMS Imaging

B2C:Transactions

B2C:MMS Imaging

Enterprise-GradeMobile Messaging

B2C:Mobile LocationServices

300+%

200

100

50

40

30

20

10

0

BusinessImpactAnnualized ROI

WWAN Voice 1:1WWAN Voice

1:Many

WLAN VoIP

Insurance: Claims Adjustment

Utility Field

Service

Lower impact,scaled with difficulty

Higher impact, scaled with difficulty

Higher impact, easily scaled

Lower impact, easily scaled

Critical Issues

• What mobile foundation technologies will have the greatest impact on CRM?

• How can organizations assess the benefits of mobility and make wise application choices accordingly?

• How should applications be designed to adapt to the proliferation in choices?

Consumer

Corporate

Market Trends Fashion is still key Annuity handset revenue Nokia N-Gage console Asian manufacturers

Technology Trends Color, polyphonic sound Imaging, video, cameras Game technology M-commerce hardware

Java everywhere Form-factor proliferation Slow Bluetooth deployment

Greater competition (e.g., Dell Computer, Microsoft)

Fragmentation, not convergence

Integrated WLAN Microsoft .NET grows 1GHz, PDA by 2005 Tablet PC

Microsoft and Symbian battle for corporate “mind share”

No single standard corporate device

Mobile Device Innovation

Alerts

Message

Forms

KnowledgePower

Mapping Devices to Work Styles

Worldwide PDA OS Market as of 3Q03

Symbian

RIM

Win CE

Palm OS

Platform Comparison 1Q04

= Strong = Weak

E-Mail Capability

Manufacturer Diversity

Device Diversity

Enterprise Application

Platform0 20 40 60

Others

RIM

Win CE

Palm OS

PDA Platform Wars

Hot-Spot Type Session Usage, Offering?

Unauthorized 0 No QOS, risks

Public, free 0 No QOS

Commercial venue $2.50-$10 Selective

Premium venue $10-$30 Selective

Private campus $10 Review partners

Neighborhood ? Unproven model

--

Hot Spot or Not?

40-500MB

WWAN Voice and Data

Monthly Mobile Data Needs ChoicesWLAN Hot Spots

Managed Service Providers

2-15MB

0.2-5MB

<200KB

15-60MB

Mobile CRM Data Costs

Frozen Data,Delays,Information Shadows

Availability,Value of Collected

Information

Time

Partial,Unformatted Information

Context-Awareness

Accurate Synthesis

Accurate, Efficient Capture

Skills- BasedRouting

Shortened Cycle Time

Location

Mobile-Supported Customer Interaction

Customer Interaction

Inefficient, Inaccurate Capture

Mobilized Customer Interactions:The Value of Real-Time Information

Before AfterBefore After Before After

Before AfterBefore After

Before After Before After

Before After Before After

Before After After Before After Before After

Errors

Data CaptureEffort/

Cycle TimeOmissions

Information Dissemination

OmissionsTime Lag

Time Lag Frozen Data

Collaboration

Inaccuracies Redundancies

Time LagResponsiveness/

CustomizationEffort/

Cycle TimeRisk

• Reduced cycle times for SCM, ERP business apps.

• CRM in real time• Reduced labor

collection costs

• Reduced CRM SCM, ERP, cycles and cost

• Improved customer service

• Reduced project execution times

• Improved customer service

• Better decision inputs

Assessing Mobile Productivity Gains

Before

Your request: [___________] GO

Accounts Contacts Events

Opportunities Tasks Inventory

$

iAvenue Wireless

GOShow all deals wShow all deals with Union Bank for scanners > 50% closing this qtr

Information-Rich

Video

Digital ImagesLocation

Personalized

Immediate

Presence Synchronized

Info Push

Always-On

Offline

One-to-ManyEnablement

Cost-Effective

Remote DiagnosticsRemote Updates

Session-SecureDevice-Secure

Network-Cost- Appropriate

“AAA”

OTA-Programmable

Easy to Use

"Clickable"Discoverable

ActionableUntetheredPeripherals

"Bookmarkable"Voice-Capable

Input-Appropriate

Localized

Unified Messaging

Nice to Have

Must HaveLegible

Context-Aware

Session-Persistence

MultimodalSecure

Mobile Enterprise Applications:Key Characteristics

AAA Authentication, Access, Authorization

• ISV/WAG

• Customized field service application

• 4GL workbench

• Mobile application life cycle management

First-generation solution:

• Technicians used four devices: HP Jornadas 720 Pocket PC with Verizon CDPD

• Project break-even: Eight months, 239 percent increase in worker productivity

Second-generation solution:

• Converged Samsung i700, migration to Verizon 1xRTT network

• Utilization up with better WWAN performance/coverage

• Extension of application to include versioned, marked-up digital images

• Anticipate $75,000 per month in additional networking savings

• 200 field service technicians

• 3,000 properties

• Averaging 11,000 work orders monthly

Mobile CRM Case Briefs: Field Service

Situation: • U.S. operational presence• More than 250 sales representatives,

two product lines• More than $750 million in sales• Clipboard-based solution

with batch synchronization, 40 days between sales visits• Key issues: stale inventory; inventory combination;

collection is tedious, costly and error-proneSolution: • WAN: CDMA 1xRTT, GSM/GPRS $80/month• Offline, caching capabilities• Ruggedized Pocket PC PDA with barcode (in store)• Standard Pocket PC PDA (sales office)

Justification Case Study: Consumer Goods Mobile SFA

Total Benefit of Ownership Accuracy (greater than 20

percent) Increased 3.5 sales calls/day to

five, leading to partner/customer satisfaction (value on investment)

Order fulfillment cycle:30 percent reduction

Inventory replenishment:further back-end application adjustments needed

Fulfills competitive necessityin top regions

Initial Project Cost:$1.1 million

Total Cost of Ownership Application server System integration and

development of business application connectors

Wireless application gateway Devices Network management Security Provisioning and training Monthly airtime

Break-even:13 months,

Two-year IRR: 21%

Justification Case Study: Consumer Goods Mobile SFA

Monthly Net Benefit:$123,000

APS WithMobile PointExtensions

Carrier Service Delivery Platforms

Complexity of Development and Deployment

Flexibility

ISVs WithWAGs

Simple Difficult

SystemIntegrationMobilityToolkits

MobileASPs

ThinE-Mail/Groupware

MobilePortals Packaged

MobileSolutions Mobile

MiddlewareMobilePoint

Solutions

MultichannelMultitier

Multimodal

Architectural

TacticalMultichannelAccess Gateways

Mobile Enterprise Application Platforms: Flexibility vs. Complexity

ApplicationTool Suites