32
- 1 - Master's Thesis Potential of Mobile Solutions for Improving Business Processes Submitted by Muhammad Zubair Matriculation Number: 28439 E-Mail: [email protected] in Summer Semester 2014 Course of Studies International Business Administration Supervisor: Prof. Dr. Susanne Leist Chair of Business Engineering University of Regensburg Guide: Thomas Falk, M.Sc. Wirtsch. -Inf.

Master Thesis Muhammad Zubair

Embed Size (px)

Citation preview

- 1 -

Master's Thesis

Potential of Mobile Solutions for Improving Business Processes

Submitted by

Muhammad Zubair

Matriculation Number: 28439

E-Mail: [email protected]

in Summer Semester 2014

Course of Studies

International Business Administration

Supervisor:

Prof. Dr. Susanne Leist

Chair of Business Engineering University of Regensburg

Guide:

Thomas Falk, M.Sc. Wirtsch. -Inf.

Table of Content   Abstract  ...............................................................................................................................................  i  1   Introduction  ........................................................................................................................................  1  2   Definitions  .........................................................................................................................................  1  

2.1   APP  ............................................................................................................................................  1  2.2   Business Mobility /Mobile Business Process  .............................................................................  1  2.3   Business Process Management (BPM)  .......................................................................................  2  

3   Research Methodology  ......................................................................................................................  2  3.1   Jurisdictional Focus  ....................................................................................................................  3  

4   Overview  ............................................................................................................................................  4  4.1   History and Development  ...........................................................................................................  5  

4.1.1   Early Mobile Devices  .......................................................................................................  5  4.1.2   Modern Mobile Devices and Apps  ...................................................................................  5  

5      Literature Review  ...............................................................................................................................  6  5.1   Case Studies  ...............................................................................................................................  7  5.2   Cost  ............................................................................................................................................  7  5.3   Cost Concerns and 'Early Adopters'  ...........................................................................................  8  5.4   Employees and Workspaces  .......................................................................................................  9  5.5   Criticisms of Decentralised Workspaces  ..................................................................................  10  5.6   Information Management  .........................................................................................................  10  5.7   High-Tech Mobile Solutions and Safety  ..................................................................................  11  5.8   Mobile Information Management: Overcoming Staff Turnover  ..............................................  12  5.9   Developing World  ....................................................................................................................  12  5.10  Future Suggestions and Changes  ..............................................................................................  15  

5.10.1  Barriers to Adoption of Mobile Solutions  ......................................................................  15  5.10.2  Start Ups and Mobile Commerce Generally  ..................................................................  16  5.10.3  Future Developments: 'The Internet of Things', Machine to Machine and Cloud

Technology  .....................................................................................................................  16  6      Interviews  .........................................................................................................................................  17  

6.1   Interview Methodology  ............................................................................................................  18  6.2   Discussion  ................................................................................................................................  18  6.3   Disadvantages and Areas of Concern  .......................................................................................  20  

7      Conclusion  ........................................................................................................................................  21  References  .............................................................................................................................................  23  Appendix  ...............................................................................................................................................  25   A1: Interview Questions  ...................................................................................................................  25   A2: Interview Responses  ..................................................................................................................  25   A3: List of Abbreviation  ..................................................................................................................  29  

Title: ''Potential of Mobile Solutions for Improving Business Processes''

Abstract Since the turn of the millennium, means of communication and interaction have changed greatly. Facebook, Twitt0.980.98er and high performance smartphones such as the iPhone did not exist 10 years ago, but they are now an integral part of our daily interaction. They have also become an integral part of how a business can interact with existing customers and attract potential new ones. In 2014, having a presence in the mobile sector is integral to business success in almost all sectors. However, a number of businesses have not taken up usage of this technology or have done so in an ineffective manner. Fortunately, these are becoming easier to use and cheaper to use for businesses, so there are few excuses for those who continue to ignore them. This piece will assess the history and development of mobile technologies, before looking at how they are currently used by successful businesses and how they can be applied to all business types. Through a literature review, which takes into account a number of case studies, evaluation of new technological advances throughout the sector and a personalised survey conducted among businesses that use the technology, this piece will lay out the way in which mobile solutions can be used to improve business processes. The piece also relies on research conducted through interviews with three different businesses that have recently adopted mobile solutions, to assess and evaluate their experiences.

- 1 -

1 Introduction Throughout history, businesses that fail to change and keep pace with developments in the sector run the risk of being left behind. Successful businesses have always remained ahead of the curve. Never has this been truer than in 2014 and in relation to mobile solutions and technologies. Since the mobile phone became commonplace throughout the western world, there have been a number of by businesses to incorporate their operations into the mobile world. While there is no one way to implement such changes, those who have managed to do this in a manner which is tailored to their operations have seen a number of benefits in the short and long term. This paper will focus on two aspects of improving business processes with mobile solutions. Firstly, internal processes can be improved through increased use of mobile technologies. A number of communication channels can be improved, and overall internal processes can be made more efficient with adoption of mobile technologies. Secondly, external processes can also be improved. Mobile technologies provide ways of attracting potential customers and clients. They also improve means of communication with existing clients, allowing for companies to maintain their relationships with their clients and ensure their satisfaction. Also, given the personal nature of mobile communication technologies, client to company communication can be enhanced an personalised, meaning a better customer experience. Through an extensive literature review and a survey with three modern, successful businesses that have adopted mobile solutions, this paper will show the need for businesses to invest in mobile solutions as a matter of necessity. 2 Definitions 2.1 App App is the shortened version of 'application software', and became part of the vernacular in 2009. Apps are basically computer programs, which are developed and maintained for mobile devices. The term's popularity grew largely on the back of the opening of Apple's App Store, on July 10, 2008 (cf. Bowling 2012). However, apps had existed in some form, albeit on a less popular basis, since the turn of the millennium - and arguably before with less advanced mobile handsets (cf. Dredge 2013). 2.2 Business Mobility /Mobile Business Process As noted by Gruhn, Koeler and Klawes, business mobility refers to mobility of the business' employees and processes (2007, p. 657). Specifically, business mobility is the degree to which the ''mobility of the concerned employees and...the ability to access data anytime''. Business mobility incorporates aspects of mobile business process in order to achieve business aims. Brodt and Verburg note that definitions and concepts of mobility have been difficult to define due to the rapid change undertaken in the sector (cf. 2009, p. 53). However, concepts of mobility and spatial and temporal flexibility with relation to employees - and a heightened weighting of the concept of work/ life balance - are considered to be within the scope of business mobility. It is important to note that the definition need not be construed too narrowly and can apply to a range of technological improvements in a business context. Falk and Leist note that anything of a technical nature, which has an element of innovation and mobility, will fall within the broader definition of mobile solutions (cf. 2014, p. 3).

- 2 -

2.3 Business Process Management (BPM) While BPM is not referred to extensively throughout the paper, the concept itself is important for laying a foundation for discussion. There are two areas in which mobile solutions can be put in place to improve business processes (cf. Falk, Leist 2014, p. 4). Firstly, through BPM, mobile solutions can be put in place to streamline existing processes. For example, mobile payment methods simply streamline an existing business process - the payment for goods - and do not change the way in which the business operates. Secondly, however, mobile solutions can change the way a business operates as a whole. For example, as implemented by a Dutch energy firm evaluated as part of the literature review, mobile solutions (specifically PDAs) changed the complete way that the business operated. For the purposes of this paper, both types of mobile solutions will be considered. 3 Research Methodology The research for the piece will be comprised of a number of different methodological approaches. Firstly, a literature review formed a key part of the research material. Pieces from a number of publications have been evaluated and assessed. Due to the relative novelty associated with mobile solutions, the majority of the pieces come from recent years and are therefore particularly current. There will however be reference to a number of early pieces discussing the potential of mobile technologies, such as May's Mobile Commerce: Opportunities, Applications, and Technologies of Wireless Business from 2001 and Varshney, Vetter and Kalakota's Mobile Commerce: A New Frontier from 2000. Semi-recent sources, such as Brodt and Verburg's Managing mobile work - insights from European practice, which was published in 2007, will provide a core component of the literature review and the paper's research base. This piece looks at a number of case studies of different companies and organisations across Europe, and their experience with new mobile solutions. While the piece is almost seven years old, it still remains one of the best evaluative assessments of mobile solutions - particularly as a range of different businesses and business types are assessed. The paper has reference to a number of primary sources, particularly with relation to statistics and trend data. With the rapid changes in the sector, statistics are the best guide to see the uptake and participation of different aspects of mobile technology. To this end, primary statistical data was also used to provide extrapolations, such as to indicate where current trends would end up in the coming years. A number of reputable publications, such as MIT's Sloan Management Review and Gartner were consulted when looking at statistical data with one eye on future trends. Secondary sources will of course be an important component of the piece. Unlike a more traditional academic thesis, which takes into account a number of books and journal articles, secondary Internet sources will form a large part of the research for this piece. This is due simply to practical realities. Many books and even journal articles will experience delayed publication and will therefore be out of date in a sector as dynamic as this. Therefore, web sources have the potential to be the most up to date and will form an important part of the piece. Researchers note the rate at which the industry changes and the need for up to date sources (cf. Ngai, Gunasekaran 2007, p. 3). Also, much of the academic discussion that takes place on mobile technologies and related industry takes place online, through e-books and other Internet sources. Therefore, these will form the bulk of the research for the piece. Finally, conference papers have been an important resource. A number of conference papers have been published on the topic and they provide an important resource. For instance, one conference paper presented at a 2014 European conference on information systems

- 3 -

entitled Effects of Mobile Solutions for Improving Business Processes was crucial in establishing the current trends in mobile solutions. Another issue to consider is the source of the published material. While there is a considerable amount of published case studies on organisations that have adopted mobile solutions, these often have questionable relevance. The issue is principally that these are often published by an organisation, which specialises in mobile solutions. Therefore, the academic relevance of such information may be questionable as it is subject to a commercial agenda. While these pieces no doubt form part of the research base of the piece, materials, which have not come with a particular commercial agenda, will be favoured. It is to this end, why Brodt and Verburg's Managing mobile work—insights from European practice has formed a key part of the research. This piece, published in the Blackwell journal 'New Technology, Work and Employment' takes into account a range of European case studies across a variety of different industries, including food distribution, government agencies and energy concerns. This piece has been referred to extensively throughout the literature review. In order to give a more balanced view of the application of new mobile technologies in business, a range of different businesses will be assessed. Due to the costs and technological know how sometimes associated with adoption of mobile technology, larger businesses have been generally its biggest adopters. Larger organisations, with their global reach and recognisable brands, have long understood the benefits of remaining at the cutting edge of new technologies. For these organisations, the cost of implementing mobile systems is obviously a lower percentage of overall expenditure. However, their use has not been limited to larger organisations, and some smaller businesses and concerns have also implemented mobile solutions. Therefore, businesses of a smaller scale are also an integral part of the research for the project and will be extensively considered. 3.1 Jurisdictional Focus As noted in the thesis application, it is necessary to somewhat limit the focus of the research piece so as to not overstretch it and ensure the data is sufficient to provide an accurate base for conclusions. Therefore, the European Union has become the focus of the piece. Relevant data, such as that in relation to the overall sector and the amount of jobs in the mobile workforce will generally be European wide figures. This is because most of the published data sets that formed the basis for the data of the piece, along with many of the pieces in the literature review, tend to take a wider, international focus. Due to the fluid nature of European borders, which have become even more fluid in reference to the mobile technology industry, few publications or data sets that have been collated as part of the literature review focus exclusively on one country. Additionally, published international works will generally focus on Europe, Asia and North America or the Americas, rather than a country specific basis. On a micro level, data from individual European countries has been taken into account where it can provide a greater insight into the subject matter of the piece. For instance, government initiatives that cannot or have not been taken at a European level and have thus been taken at a national level will be considered. Incentives to encourage interaction with the mobile economy will generally be domestically given; therefore a European focus would be inappropriate in these instances. Also, a number of the case studies that form part of the literature review have been conducted on city-wide or country-wide basis, for instance in relation to a Swiss food company or the Dutch Customs Office. Where comparative analysis between similar European countries is necessary, it has been incorporated into the piece.

- 4 -

Finally, the piece does not exclusively focus on the developed world, due to the very nature of mobile technology and communications. Reference must be had to the developing world and mobile technological changes therein. As is established throughout the piece, the growth of mobile technologies in Asia - principally through increasing smartphone usage - has forced many in Europe (and North America) into a rethink. Borders are continually being erased in the mobile economy, and overseas jurisdictions need to be thought of both as a threat to the existing way of things but also as a potential opportunity for smart operators. Reflecting this jurisdictional approach, the surveys come from three diverse locations. Firstly, a German wide networks. Secondly, a United Kingdom branch of a multi-national franchise organisation. And finally smaller American office, based in Arkansas. 4 Overview Mobile devices are now more integrated with society than ever expected even a few years ago. People are not only greatly interconnected with each other due to mobile devices, but also increasingly connected with businesses and service providers. Mobile technologies provide businesses with a means of contacting customers and potential customers in a direct and personal fashion, and provide a number of ways of personalising the contact so to provide the consumer with a more individualised experience. Also, the potential for using mobile devices is growing, with more and more customers taking up mobile devices, and the capabilities of the devices improving. The potential for change in the sector is also significant, and changes occur so rapidly in the present time - which is both a positive and a negative for businesses. It is a positive in that a business can ride a new wave of change and establish itself against the cutting edge, overcoming larger businesses with more established reputations. However, the same can be a negative. A business that does not position itself well enough for any upcoming changes in the sector will potentially lose whatever advantages and reputation it already had, should it fall behind a trend or a change. While the overall development of mobile technologies in the past 20 years could be seen as an example of this, one recent example is in relation to app technology. App technology was virtually invisible at the turn of the millennium, but since the establishment of Apple's App Store in 2008, apps have become a crucial part of smartphone interaction and a useful tool for business. This is a reflection of the rapid change that can take place in the sector. MIT note that mobile technologies have now become so intertwined with business as to be essential (cf. MIT 2014). Firstly, mobile technologies have positive influences internally in the company. They allow internal restructuring and increased efficiency, particularly in regards to internal communication. Secondly, and most prominently, the new technology opens up a variety of options for accessing and attracting new customers and maintaining contact with existing customers (cf. MIT 2014). Particularly in recent times with the development of low cost and relatively technically simple software – particularly in regards to apps – a number of businesses that would not have had a significant mobile presence have entered the mobile sphere. Mobile technologies are no longer purely the domain of tech companies and communications organisations as they were initially (cf. Gruhn et al. 2007). Today, they are the domain of any company, corporation or organisation that seeks to improve their organisation or spread their reputation.

- 5 -

4.1 History and Development 4.1.1 Early Mobile Devices The technology for mobile phone communications has been around for a considerably long time, however was not thought beneficial or feasible for public use up until recent times. Initial wireless telephony was developed in the early 20th Century in Germany, and was later expanded in the Second World War and beyond. Early public use of mobile phones began in the mid-1980s, with the first mobile phones being large and expensive, and unable of any form of communication other than pure voice calls. While mobile phone technology was popular among the general public even in the early days, many thought they had little practical application. In fact, in the late 1980s, American telephone provider AT and T conducted a review into mobile telephone potential usage, and concluded that the potential worldwide usage of mobile devices would peak at less than one million. Massachusetts Institute of Technology note that this prediction would later prove to be considerably erroneous, with the current rate of uptake of mobile devices around one million every three days (cf. MIT 2014). Now, mobile technology has become increasingly integrated with a number of aspects of society and social interaction, in a manner unforeseen only thirty years ago. 4.1.2 Modern Mobile Devices and Apps Technological advancements such as the improvement of mobile data networks and greater phone storage capacities paved the way for app technology. App technology is only a recent development, but now forms an essential component of smartphone usage and must form an essential part of a business' mobile strategy should that business wish to be successful. As noted by Falk and Leist, ''mobile and wireless applications currently rank among the top priorities of managers around the world'' (2014, p. 1). As an indication of how rapid change can be in the industry, the Apple App Store only opened in the middle of 2008 – a mere six years ago. However since opening, the App Store and apps in general have become a key part of mobile interaction in an almost unforeseen fashion (cf. Bowling 2012). App technology has exploded in recent years. Revenue has increased considerably, and continues to do so, with 2013 figures showing a 50 per cent increase on 2012 figures – from $US18 million in 2012 to $US26 million in 2013 (cf. Dredge 2013). Pure app downloads, whether paid or unpaid apps were an estimated 100 billion in 2013. Significantly, this was approximately 50 per cent higher than the figures of the previous year (cf. Dredge 2013). Even cautious predictions indicate that app downloads will double by the year 2017 (cf. Rowlands 2014). Some less conservative predictions, such as those undertaken by industry body Gartner, have indicated that total app downloads could be in the vicinity of 270 billion in 2017 (cf. Shen, Blau 2013). Researchers note that mobile devices continue to grow as a market percentage share. ''Customers are moving on from relying on their desktops or laptops to regularly using their tablets and smartphones'' with 26 per cent of global search traffic coming from mobile devices - a figure which is growing (Hayzlett 2014, p. 26). Aside from take up and pure revenue, the size of the app industry alone is astonishing – especially considering how recently the industry has grown. Europe as a whole (mainland Europe and the United Kingdom) according to a 2014 report into the 'European app economy' sustains an incredibly large and diverse app network. Apps and the app economy inject approximately $US16 billion into the European economy, up from $US12 billion in 2012 and at an overall growth rate of 12 per cent (cf. Pappas, Voskoglou 2014). Overall, there are

- 6 -

667, 000 jobs directly related to the app economy, up a considerable 150, 000 from the previous study in 2013 (cf. Pappas, Voskoglou 2014). Including jobs indirectly related to the app economy, there are around one million jobs in total. In positive news however for businesses as a whole, demand still outstrips supply throughout the industry, meaning there is considerable growth potential. Therefore, it is imperative that businesses take the opportunity to become more involved in mobile network solutions otherwise they risk being left behind. 5 Literature Review One of the clearest findings from research into mobile solutions for business is that the technical and academic commentary world has had consistent troubles in keeping up to date with new developments. Well-researched evaluations of 'new' developments will become out of date shortly after publication, a much shorter time frame than most other academic fields. Some books and articles published just over a decade ago have little current reference, other than to provide an indication of the rapid growth and development of the sector on a comparative basis. Also, even articles published within the past two years can be currently outdated, particularly where they have a high degree of speculation. Therefore, it was necessary to identify sources that have a good track record of being ahead of the curve and accurately predicting new technological developments. As indicated as part of the research methodology, reference to traditional academic resources such as books and journal articles will be limited. While they do provide a useful resource, the practical realities associated with publication - mainly the ensuing delays that tend to take place - mean that they can often be quickly outdated. Therefore, a number of reputable Internet sources formed part of the piece. One resource that was particularly useful was conference papers. A number of international conferences have been held in recent years discussing mobile solutions in Europe and elsewhere, and they tend to be at the cutting edge of new mobile developments. A number of conference research papers have been included, particularly a 2008 paper from Botzenhardt and Pousttchi and a 2014 paper from Falk and Leist. May was one of the first to indicate the potential of location-based services in the context of business. Location based services officially became approved by the 12 largest telecommunications providers in 2000, but a patent was not approved for their use in the United States until 2002. In 2001, May indicated the ways in which location based services could be used by businesses. May noted that the potential for the enhanced mobility provided by mobile services to be used by businesses would change the way e-commerce had operated up until that point (cf. May 2001, p. 25). Much of the current use of applications, particularly in relation to mobile-based payment methods, was forecast in his assessment of the future of mobile technologies. Particularly, his comparison of enhanced use of mobile services as comparable to older 'hunter gatherer' style cultures as an indication of the impact changing mobile technologies would have on business and society in general. Some other pieces published around the same time also predicted the integration of business and mobile technology. Varshney et al noted in 2000 that the business community would need to get behind the development of 'mobile commerce' as by 2003 the number of mobile devices would already greatly exceed the number of personal or desktop computers (cf. 2000, p. 38). The growth in wireless technology, as noted by the authors, would revolutionise the way businesses interact, with those who failed to keep up with the changes unlikely to maintain their success. It is important to note that at the time of the report's publication, wireless technologies were generally still emerging and did not have the extensive reach that they have today.

- 7 -

5.1 Case Studies As part of the literature review, a number of case studies were assessed across Europe. As noted earlier, much of the published literature on mobile solutions tends to be either outdated, or has been published by the mobile solution provider, meaning it has a degree of bias and may be unsuited for an academic research base. Many of these came from a published work from Brodt and Verburg entitled Managing Mobile Work -Insights from European Practice, which put together five European case studies across a number of industries (cf. 2007, p. 53). This piece was of considerable value as it was not produced by a mobile solutions company and therefore did not have a vested interest in the outcome. Similarly, a review of 20 case studies undertaken by Falk and Leist was also an important research piece for the same reasons (cf. 2014, p. 4). Throughout the literature review there were a number of companies that have provided a range of reasons why they consider mobile solutions to be a way forward. Most often, these involve increased efficiency and maintaining a certain degree of professionalism or upholding their reputation. Dutch energy company Nuon, which was one of the case studies assessed, gave a range of reasons for their extensive rollout of mobile solutions (Brodt, Verburg 2007, p. 58):

''increasing the safety of employees when solving power failures with improved information supply; centralisation of failure-registration and solving time in order to build problem history per installation; and improvement of response times to increase network quality.''

Companies interviewed as part of the survey process provided many similar reasons. Particularly, it is important to note that many of the responses were similar, regardless of the size or type of the business and the sector in which it operated. 5.2 Cost Cost is listed as one of the most prohibitive factors by a number of organisations as a reason against adopting mobile solutions. Brodt and Verburg note that a number of differently sized organisations have indicated they were initially reluctant to implement mobile systems or overhaul their existing systems due to fear of the financial costs associated with doing so (cf. 2007, p. 62). However, through a number of case studies that have been conducted by researchers, it is clear that - while adopting mobile technologies can be costly - the cost is not an unavoidable. More to the point, companies that had spent considerable amounts of money rolling out integrated mobile systems did not necessarily see comparable financial benefits. Instead, companies that had worked with particular providers who understood their specific needs were able to see financial benefit, often at a fraction of the cost incurred by the other businesses - regardless of business size. Some companies who had spent a considerable amount upgrading their mobile services had yet to see a tangible benefit, showing the need for tailored solutions. It is important to have a long-term vision when assessing costs of mobile solutions. In an assessment of 20 case studies into different companies who had adopted mobile solutions, there was a tendency to take a short-term view when looking at costs, which had negative consequences for the business. As noted by Falk and Leist, businesses that complained about the cost were often looking at it on a quarterly to yearly basis, without realising the future

- 8 -

benefits (cf. 2014, p. 8). In many industries, such costs are inevitable as other businesses in the industry add mobile solutions. To chose to avoid such costs in the short term will have considerable costs in the long term, meaning such solutions are an investment. Also, while actual financial costs may appear quite high, there are a number of non-financial costs that must also be considered (cf. Falk, Leist, 2014, p. 10). Boosts to a company's reputation due to new technologies cannot be adequately quantified by looking purely at a corporate balance sheet. One case study into mobile solutions provided to a customs agency in the Netherlands illustrated that changes need not be expensive for them to be effective. Rather, they need to be tailored to the organisations needs. Previously, the customs agency had operated centrally, despite the customs agents needing to work in four different geographic areas across Rotterdam, Amsterdam and throughout the Netherlands. Researchers note that in the morning the customs officers would report to the central office before receiving their list of daily assignments (cf. Brodt, Verburg 2007, p. 58). They would not return back to the office during the day, but would check in at the end of the day and provide their checklist of the day through filling in a form. The mobile solutions provided to this organisation were simple: a centralised network, better information systems, inexpensive mobile devices or laptops provided to each agent and better understanding of each agent's capabilities. There were only a few instances of more costly, specialised devices being required, for instance in relation to harsh weather conditions, but researchers note that the majority of the devices were commercially available and not particularly costly (cf. Brodt, Verburg 2007, p. 57). Also, because the new system was implemented in the appropriate fashion for the organisation, it did not require a great deal of money or time investment. Much of the changes to the internal information systems were not costly and capitalised on already existing information. While the central office was required to acquire information about the expertise of each agent, this could be done largely anecdotally; agents were required to list areas of expertise and preferred working environments. This positive cost analysis is backed up by three more similar studies in Germany and Italy, in regards to two freight companies (Germany) and a utility company (Italy) (cf. Falk, Leist, 2014, p.12). 5.3 Cost Concerns and 'Early Adopters' There are however some instances where concerns regarding cost have proven to be correct. This has generally been where the technology is particularly new, and investment needs to be made in determining the best manner in which it can work. A case study into Emergency Medical Services, an ambulance and medical services dispatch organisation around the town of Basel in Northern Switzerland (including bordering areas in Germany), showed that there are often additional costs associated when an organisation upgrades newer mobile solutions. In the industry, this is known as being an 'early adopter' (cf. Brodt, Verburg 2007, p. 59). While there are a number of benefits that a company could achieve by being ahead of the curve and staying one step in front of opposition, new technology has its teething problems and from that there are additional costs. EMS noted that while, after the initial problems, its current mobile solutions assist the business greatly in its ability to operate - it would not follow the same path again. Specifically, the project manager of the mobile solutions rollout said overhauling the entire system was difficult, and that while ''the team is proud of the solution but would not risk being an early adopter again'' (Brodt, Verburg 2007, p. 60). Therefore, this places considerable pressure on businesses with a unique quality or operating manner who may seek to adopt a specific mobile solution or solution that is not well tested or established.

- 9 -

Specifically, the EMS project manager notes that the best approach in rolling out mobile solutions is to do this in a gradual fashion, as not to cause too much disruption to the core operations of the organisation. In the EMS example, the organisation sought to upgrade two aspects of their mobile technological offerings at once: a central despatching unit and a General Packet Radio Service (GPRS) data transfer directly to vehicles (cf. Brodt, Verburg 2007, p. 60). This caused a number of technical defects and altered the company's core operation. Therefore, while it may mean that the rollout does not happen overnight, it is important to adopt a sequential approach in such instances. There is a range of other advantages in taking time to implement the different mobile solutions. Firstly, the organisation may be able to continue trading for the entire period, with only minimal disruption. Secondly, and most importantly in the long run, it enables more effective staff training and procedures to be put in place (cf. Rez 2009, pp. 145- 6). Introducing staff to new concepts slowly will encourage a better understanding of the new procedures. 5.4 Employees and Workspaces Aside from boosting internal procedures and allowing enhanced communication with potential customers, another area where adoption of better mobile solutions can help a business is in employee recruitment and retention. With the traditional office becoming increasingly integrated with mobile technologies, a number of researchers have noted the need for businesses to adapt to the trend in order to remain attractive to potential employees. Researchers have found that, throughout a number of case studies, ''mobile work environments help to maintain a competitive advantage of a company (Brodt, Verburg 2007, p. 64). Employees, particularly in creative industries but increasingly across all business types, have a greater expectation that they will be able to integrate mobility into their workspaces. Brodt and Verburg note that modern employees increasingly prioritise flexibility as a principal condition to any new work environment (cf. 2007, p. 52). Whereas previous employers would use wages and other conditions to attract the best and brightest employees, the modern workforce is particularly attracted to flexible working conditions - which can be provided best by mobile technological solutions. Malone notes that ''in order to achieve that flexibility, many companies adopt information and communication technologies that support mobility, context and location awareness, networking and ambient interfaces'' (2004, p. 53). One of the adopted mobile technologies in this regard has been virtual workspace. This has been something that, throughout the sector, has largely been driven by employees themselves, but has advantages for businesses also. Brodt and Verbung note that through adopting mobile technologies, many businesses have seen ''a substantial reduction in the need for physical presence and meetings, and therefore a decreasing need for commuting'', which is something seen by many employees as unwanted and has other benefits (2007, p. 52). While scholars maintain that there still needs to be a degree of face-to-face interaction in any organisation - ''due to the fact that personal interaction is driving teamwork and creativity'' - a number of other tasks can be done in mobile workspaces (Connaughton, Daly 2004, p. 56). A study into an Italian utility company noted that the significant reduction in transport undertaken as part of enhanced mobile solutions offset initial employee concerns that they would receive less money due to working fewer hours (cf. Falk, Leist 2014, p. 12). Additionally, as was discovered in the case study of the mobile solutions presented to the Dutch Customs Office in Rotterdam, the mobile enhancements improved the overall image of the company to employees - both prospective and current. Previously, ''the customs agency

- 10 -

was perceived by possible job applicants as a standard administrative governmental organisation'' - after the mobile solutions were rolled out, ''the investments in high tech mobile solutions, the traditional image changed'' (Brodt, Verburg 2007, p. 58). This allowed the office to become a more attractive work destination for new employees, boosting the reputation of the firm and the quality of the services it provided. As noted by Falk and Leist, pure cost analysis does not take into account a range of other important features such as employee satisfaction and better reputation of the company (cf. 2014, p. 8). Also, existing employees found the work environment to be both more attractive and functional, and reported greater job satisfaction and higher degrees of motivation. 5.5 Criticisms of Decentralised Workspaces The increasing roll out of flexible working conditions has been largely successful, particular regarding individualised work, which is linked through a central database. In fact, across a range of different case studies, the most common complaint in relation to decentralisation of workspaces is the social aspect of work, and that ''users miss the informal meetings with colleagues after the implementation'' (Brodt, Verburg 2007, p. 59). While this may have flow on consequences for job satisfaction and eventually job performance, those at the forefront of mobile technology solutions are also devising ways in which workforces can be increasingly connected to build a team environment, even where work is largely individualised. Falk and Leist list a number of examples, for instance in relation larger companies dealing with freight, where social work aspects have been maintained (cf. 2014, p. 7). If more sophisticated mobile solutions are rolled out, there is still the potential for ''real time'' communication between drivers, both on a formal and informal basis (cf. 2014, p. 7). 5.6 Information Management When mobile technologies for businesses are discussed, many consider them to be referring to decentralised workspaces for employees. Decentralised workspaces are often considered to be appropriate only in certain types of industries, for instance industries that do not require a high degree of up and down information sharing - for instance freelance work. While advances in technology has allowed for workspaces to become increasingly decentralised, there are still many within business who consider such moves as having the potential to paint the organisation in an unprofessional light (cf. Brodt, Verburg 2007, p. 55). In one particular case study, on a decentralised Swiss food sales company with an already mobile sales team called 'Hero', there were a number of perceived disadvantages with the decentralised business structure. Customers had reported that the business appeared to be unprofessional and disorganised, and that many of their personal records had been confused or misplaced. It had even led some associated with the organisation to proclaim the business and businesses of its type as ''a dying industry'' and that decentralisation did not suit such an organisation (Brodt, Verburg 2007, p. 62). Other industry analysts had considered the industry to be a ''decreasing market'' (Brodt, Verburg 2007, p. 62). As part of the review process, the researchers were quick to note that it was not mobile or non-mobile factors that had contributed to the poor reputation of the industry. While the organisation had a somewhat mobile staff, it remained poorly organised, particularly in regards to information management. One of the significant review findings was that there was no central information management system of note, with ''most of the customer knowledge being stored in the heads of the salesmen'' (Brodt, Verburg 2007, p. 55). Obviously this was an example of an unsatisfactory organisation rather than a symptom of a decentralised

- 11 -

workforce - such an arrangement would not be appropriate in a centralised, pre-mobile workforce either. As this aspect of the company was understood by researchers, the need to invest in better information systems - not withdraw from a mobile market - became apparent. Enhanced mobile technologies overcame a range of difficulties, which were already being felt by the company. In that sense, the company managed to turn what was one of its apparent disadvantages - its decentralised workforce that was considered to be somewhat unprofessional and unable to present a unified image of the company - to an advantage. Indeed, once the initial effort was expended in collating the raw data, which should have already been compiled but was only known anecdotally by certain staff members, mobile technologies actually provided the technical means to facilitate a better system. As noted by Leonard, the initial work in collating and maintaining an organised, central information systems network was more than offset by the savings and positive customer reviews once the system was established (cf. 2009, p. 88). Mobile solutions encourage connectedness, but at the expense of face-to-face and associated contact. This therefore shows the need for a strong central information management system to be established when mobile networks are adopted. Another case study, that of the Dutch Customs Office, a relatively inexpensive central office monitoring system was put in place to enable mobile interaction (cf. Brodt, Verburg 2007, p. 55). Prior to the establishment of the new mobile solutions, the office was administered on a relatively ad hoc basis. Each day customs agents would attend the office in the morning and choose their assignments. In boosting information systems, the central office came up with a list of each agent's capabilities, allowing the central office to delegate the assignments according to expertise rather than the requirement that each agent choose their own assignment according to their perceptions of their own ability. This saved considerable time in the first instance, by simply delegating tasks, but also saved time in the long run as each agent was organised according to that person's specialities. Researchers noted that the changes led to more appropriate ''task assignment and execution, and a higher probability of discovering frauds. As a result, goods can be cleared much faster for the client with fewer disturbances of client logistics'' (Brodt, Verburg 2007, p. 58). As a body of work grew which could be associated with each agent, the central office gained a better understanding of each agent's area of expertise and therefore who to send in any particular instance. Many in the central management of the organisation already had much of the anecdotal evidence needed to collate the information and much of this just needed to be put together. Additionally, the central information systems office allowed for information to be fed to and from the agent throughout the day, rather than the agent being required to return to the office. Aside from the cost savings of not requiring each officer to attend the office twice a day or more, and the organisational improvements that flowed from having each problem attended to by the person best equipped to deal with the problem, the case study is an example that the establishment of a central information system need not be expensive for it to be extensive and helpful. 5.7 High-Tech Mobile Solutions and Safety In two of the principal case studies already assessed - that of the Swiss food company 'Hero' and the Dutch Customs Office - the changes made to mobile systems have been low tech and have involved simple information management systems and less costly devices. As noted earlier, this reflects the need to tailor mobile solutions in order to make them appropriate for the respective business or entity, and that expensive mobile rollouts of high tech solutions will not be required in many instances. However, a case study into the Dutch energy company 'Nuon' shows the utility of high tech mobile solutions in particular cases. Nuon is an energy company focused on gas and electricity distribution in the Netherlands, and has a multi billion

- 12 -

euro per annum turnover. The stated goals of the company, aside from increasing internal efficiency and presenting a higher degree of professionalism to customers and the general public, was to enhance safety in relation to its employees (cf. Brodt, Verburg 2007, p. 58). Specifically, field agents were provided with upgraded devices - tablet personal computers (PCs) with in built global positioning systems (GPS) - which provided more utility than their previous PDA systems. Unlike the previous situation where employees would discuss with the central office a range of the specifications of a job, through the new devices ''the field service employees can check for power grid layouts or installation schemes themselves'' (Brodt, Verburg 2007, p. 58). The GPS allows for field service engineers to find the correct switch or power board in complicated, often crowded, areas. This saves considerable time and in an emergency situation has the potential to save lives. The device also provides detailed blueprints of the relevant system, plus a range of other information that allows the field agent to fully understand the system - even if the service agent was previously unfamiliar with it. Researchers noted that this ''reduced the risk of accidents due to possible failures of the field service employees who may rely on the wrong information when fixing a particular power switch'' (Brodt, Verburg 2007, p. 58). There are also a range of features of the new devices that could not previously be provided, particularly in relation to information systems. Each switch is accompanied by a detailed service history, which will allow the service agent to better understand the system - making it both safer and easier to repair. Reports from employees were positive, ''[The new system] takes much less time than before to do the actual registration of a problem but it is even better that there is an immediate update of the problem history of the installation.'' 5.8 Mobile Information Management: Overcoming Staff Turnover Central information management networks, whether in a highly mobile institution or not, are necessary for any form of business - but not only for efficiency or organisational reasons. They are necessary in order to retain essential client information. All organisations, particularly larger organisations with a higher staff turnover and a larger staff network, benefit from having a centralised information network that is not associated with the anecdotal knowledge of a few staff. The above case study, in relation to the 'Hero' food company, most of the organisational knowledge, particularly in relation to clients, was contained in the heads of sales representatives only (cf. Brodt, Verburg 2007, p. 54). While this may have made for a pleasant staff and customer interaction while that employee continued to work for the organisation, all organisational knowledge was lost upon that employee leaving the organisation or being moved internally. Mobile technological information management systems, if implemented successfully, can achieve the said aims. Leonard notes that changes of this type provide not only standard efficiency benefits that a regular corporation would achieve through changing its information systems, but they actually represent a beneficial strategic change of direction (cf. 2009, p. 52). Such a change shows that a company prioritises the particular characteristics of its customers and that it is willing to spend money to ensure that these are retained - regardless of staff turnover. Not only will mobile solutions help record formalised information such as central files, they also record ''employee to customer communication'' (Falk, Leist 2014, p. 7). This means that previous communications between customers and the organisation can be referred to in order to allow a greater picture to be developed of how the organisation can best help the customer. 5.9 Developing World Access to new customers is one of the key advantages of mobile technologies, particularly in

- 13 -

the ways in which contact can be built. Using aspects of mobile technology such as apps and SMS or MMS - as well as existing technologies such as email and web browsing but in a mobile platform - allows a new form of access to customers that were previously inaccessible with older means, such as traditional forms of advertising. This means that many previous boundaries can be overtaken. App technology allows communication and commerce across borders - sometimes literally across actual state borders. Communication can take place within an instant to the other side of the globe, opening up potentially billions of customers. One area where there are additional customers can be found is in the developing world, where smartphone and overall mobile device rates are increasing rapidly. In a study into world wide app and smartphone usage, it is clear that developing markets such as Asia are the next area of importance in the global market. Smartphone take up in the developing world has maintained ''unprecedented'' levels of growth in recent years, and an area which ''EU developers should be well positioned to extend their reach into'' (Pappas, Voskoglou 2014, p. 5). Asia sells roughly three times more smartphones than the combined European Union on average. Significantly, these are mainly new users. China and India alone are expected to contribute 400 million users to the smartphone market in 2014 – more than one million users per day (cf. Pappas, Voskoglou 2014, p. 5). Pappas and Voskoglou note that, unlike expansion throughout the European Union and Northern America, there will be a number of additional language and cultural issues faced by EU entities wishing to expand into the Asian market. To that end, it is necessary that ''local partnerships be built in order to compete successfully'' (2014, p. 3). Overall, the app economy in Asia is growing at a rapid rate. Pappas and Voskoglou note that in the two years from 2012 to 2014, the European market share of the app economy - while having grown itself - fell as an overall percentage of the total. In 2014 the European market share of the app economy revenue was approximately 19 per cent, down from 26 per cent in 2012 (cf. Pappas, Voskoglou, 2014, p. 3). All of this percentage loss, plus other losses from North America, has been picked up by Asia; despite overall European growth ''the European Union has a growing app economy but is losing ground to Asian giants'' (Pappas, Voskoglou, 2014, p. 5). Finally, the European app economy is also growing at a much slower rate than the worldwide market, which should be a concern for those in the EU zone. As a whole, while the European App Economy grew from 2012 to 2014 from $US13.2billion to $US16.2billion, this growth was dwarfed by the worldwide markets. The worldwide market, across the same time period, grew from $US40.4billion to $US69.8billion - a considerable drop in market share

- 14 -

Fig. 1: Growth of European and Worldwide Economy Due to the increasing affordability of smartphone technology, a new market has opened up which was previously not targeted - clients from a lower socio-economic background. Studies into the income of smartphone users shows that developing strong mobile business solutions will open up new customers across a range of markets. 2014 research indicates that just under half (48 per cent) of smartphone users are classified as having an income in the low-income range (cf. Pappas, Voskoglou, 2014, p. 7). Further, middle income earners account for over a quarter of smartphone users (28 per cent), meaning that three quarters of total smartphone users are in the lower to middle income categories. While early smartphones may have been the domain of wealthier phone users and were perhaps considered to be out of reach of many customers, recent trends show that is not the case. Smartphone usage has therefore levelled out considerably, and is a tool that can be used by a range of business sectors. While these figures are limited to European studies and do not take into account the global market place, they can easily be applied to developing markets, such as in in Asia and Africa. Smartphone use in the developing world has increased significantly, especially in regards to those in lower income brackets (cf. Pappas, Voskoglou, 2014, p. 5). With the breaking down of these physical and metaphorical borders, literally billions of new customers have become available to businesses - provided they have done the necessary restructuring in relation to their mobile processes.

2012 20140

10

20

30

40

50

60

70

80

90

100

Growth of European and Worldwide App Economy

European Market ShareWorld Market Share

- 15 -

Fig. 2: Socio-Economic Breakdown

5.10 Future Suggestions and Changes 5.10.1 Barriers to Adoption of Mobile Solutions Critics have pointed out there are a number of barriers to the development of mobile solutions, particularly for smaller organisations. Some of these are obvious, such as the financial costs and expertise associated with setting up mobile technologies, although some others are structural and must be changed at a government level. For many organisations, expertise is lacking and many simply do not know where to start should they attempt to overhaul their mobile technological processes. Pappas and Voskoglou note there are a number of alterations that can be made at a government level, both in individual nations and on a supranational level by the European Union (cf. 2014, p. 5). Firstly, they point out the high risk and financial cost of developing such systems needs to be shared – with a number of domestic governments implementing early moves in this direction. For instance, there are a number of initiatives by the German, French, Irish and Danish Governments to provide assistance in the development of mobile technologies and processes for business, although these are so far in their initial stages (cf. Pappas, Voskoglou 2014, p. 7). There also needs to be considerable investment in education in the mobile sector, which has so far been heavily funded by the private sector. In the current climate, a good understanding of mobile processes development is a novelty rather than the norm - which will provide a number of problems for businesses down the track. Peak bodies and businesses themselves must do more to lobby governments to boost their efforts in the sector, or risk being left behind. As noted earlier, a greater percentage of market share is being shifted from Europe to developing nations, principally in Asia, but also to the United States. If governments do not take steps now to deal with this 'brain drain', it may be too late for many European businesses to catch up.

Socio-Economic BreakdownEuropean Smartphone Users

Low Income Range 48%Middle Income Range 28%Upper-Middle Income Range 19%High Income Range 6%

- 16 -

5.10.2 Start Ups and Mobile Commerce Generally Further suggestions were made that apply principally to the start up sector itself, but which would have flow on consequences for existing businesses that wished to improve their mobile processes. Firstly, researchers cite the numbers of European web developers who have moved either part of or their entire operations offshore to the United States (principally the San Francisco Bay area). This is due to a number of US and Californian Government incentives and changes that have made setting up much easier, through removing much of the risk. Researchers note that tax regimes should be simplified for start-ups who wish to provide mobile solutions to the business sector, and that tax incentives should be introduced (cf. Pappas, Voskoglou 2014, p. 6). They also note that labour laws, particularly with regards to visas and making easier to attract expertise from overseas, are particularly strict in most European nations (when considering potential visa applicants outside the Schengen area). Changes to these restrictions would build European expertise by opening up EU markets to the experiences of those across the globe. Similarly, incentive programs to smaller operatives, such as those in other nations outside the Schengen zone such as the United Kingdom, would further encourage talent (cf. Heber 2014). 5.10.3 Future Developments: 'The Internet of Things', Machine to Machine and Cloud

Technology The mobile technologies sector is subject to rapid change on a consistent basis. Businesses who choose to engage in this sector must remain up to date with all new developments and cannot rest on their laurels once they have established a sufficient or better than sufficient mobile network. One of the key ways to do this is to be aware of upcoming trends, allowing businesses to be at the head of the curve rather than playing catch up. While there are obviously a number of upcoming trends to watch, many of which are may become essential for managing business processes, it appears the next integral moment for businesses and mobile solutions will be machine to machine communications (M2M), also known part of 'the internet of things' (Barnaghi et al. 2012, p. 3). This is considered by many to be the next stage in the evolution of Internet and mobile communications, and has the potential to revolutionise the way companies do business (cf. Barnaghi 2014, p. 1). At this stage, researchers are split on this upcoming development, with some considering it to be largely hype, and others considering it ''the next technology revolution after the computer and the internet'' (Wu et al. 2011, p. 36). Even if reality falls short of many of the predictions, it is likely to have significant impacts for businesses of all size, both on an internal and external basis. M2M communications allow a number of devices to communicate with each other through a central portal. Whether the devices be pure mobile devices such as tablets and smartphones or more inanimate mechanical devices such as refrigerators or microwaves, or even sensors placed on non-mechanical devices allowing them to be readable, they will be able to communicate with each other and have their usage logged and assessed. This will be either through a central portal, or through improved cloud technology. Cloud technology itself has been seen as a potentially revolutionary for business for some years now, and the hardware solutions provided by M2M could potentially provide the link to make this a reality (cf. Xu 2012, p. 78). The potential to link literally billions of devices is significant, and has the potential to change the way companies do business in a way not seen since the advent of the internet (cf. Wu et al. 2011, p. 40). While some of the suggested outcomes may seem particularly space age, such as interconnected cars that react as to avoid accidents or body sensors that advise of upcoming medical ailments, the realistic and comparatively soon

- 17 -

benefits will have application across business types. They would have significant benefits to boost internal business procedures, allowing the usage of every aspect of the organisation to be tracked and assessed. For instance, internal device usage could be tracked in order to boost business efficiency. There are also simple benefits such as providing information on stock levels and the need to replenish warehouses, which will save many labour hours. Similarly but on a larger scale, comparative analysis and reviews of similar businesses could be done in an instant, saving considerable amounts of money on internal and external reviewing. A successful enterprise in the future must have a thorough understanding of such devices and the potential improvements for mobile solutions they could provide. However, as noted earlier through the case study into Emergency Medical Services (EMS), there are often heightened costs with being at the cutting edge of new technologies. Many businesses are reluctant to be the experimental guinea pigs with new technological advances, expending considerable money and resources finding out exactly how new technologies can be adapted to the workplace. As noted by Brodt and Verburg, this is known in the industry as being an 'early adopter' and can mean additional costs as you pave the roads for those who follow (cf. 2007, p. 54). This puts more pressure on the time before mobile solutions are adopted, so that the business can correctly assess what solutions it needs and not overreach (cf. Gruhn, Koeler 2007, p. 657). While EMS indicated that they would not again go down the path of being an early adopter, it is important to recognise that their rollout contained a number of structural deficiencies that contributed to their higher costs. The reason they expended such a great deal of resources was not purely because they were an early adopter. In examples such as Nuon, the Dutch energy company, similarly new mobile solutions were adopted, however the rollout was better managed and the devices were correctly tailored to the needs of the business. Again, while there are additional risks with being an early adopter, the main focus for businesses must not be the time at which they are adopting the technology, but whether they have done so in a sensible manner and whether their chosen mobile solution is right for them (cf. Rez 2009, p. 147). Finally, there are also considerable risks for those companies who wait to have the road paved for them. They miss out on a variety of new discoveries and by choosing not to sit at the cutting edge of new mobile technologies they are choosing to accept the risk of being left behind in the industry. 6 Interviews The research for the piece also includes an interview, which was distributed among businesses that use mobile technologies. Those who were selected to participate in the survey had a variety of different characteristics, for example in relation to the size of the business, the country in which the business operates and the type of industry or sector in which the business operates. In total, there were three interviews conducted. The first was from a building/architecture firm in the United States called My Doctors Chart. The second was from a regional dispatch centre of a large, multinational pizza company in the United Kingdom (Dominos Pizza). The third is a German based medical healthcare company called CompuGroup Medical Deutschland. Each person interviewed held a position high in the company, with the minimum being a person from manager level. Interviews were conducted during September, and participants were provided with a nine-question form, which discussed a range of aspects of adopting mobile solutions. The form was designed to get an understanding of the respondents' history with their mobile solutions, whether they were initially difficult to implement and whether there was some internal resistance in the organisation. The interview questions focus on the current experiences with mobile solutions,

- 18 -

but also gives space for an assessment of the future direction of the company with regard to mobile solutions. 6.1 Interview Methodology The interviews were largely successful, with participants not reluctant to be involved and answer the questions. The main problem encountered as part of the interview process was in relation to the detail provided in the responses. For instance, when the interview questions were initially distributed, the questions were in part answered with yes or no answers. This is despite the request that questions be answered in detail. The questions were detailed, however some questions were worded as such to give rise to the potential for yes or no answers. In two examples, the surveys were redistributed with a request for more information and greater detail to be provided. Also, the questions were slightly broadened, so as to encourage more of a discussion. When participants were told of the need for them to provide greater detail, they were responsive to the request. While this did cause a number of time-related problems, these were not prejudicial to the outcome of the study. Finally, so as to see the mid to long-term impacts of the mobile solutions, a minimum time frame of two years was necessary (since the mobile solutions were applied).

Fig. 3: Duration in Year(s) (since how long Mobile Solutions were implemented) 6.2 Discussion The first major finding of the survey was that all participants felt that the mobile solutions were a success. There were a number of benefits for companies, both on an internal and external basis. Internally, there were a number of processes that were streamlined which provided short and long-term benefits. Respondents indicated they had used mobile solutions to allow for centrally held data to be made available on mobile devices, ensuring important information was correct and always updated. My Doctors chart noted that while customers might not have seen many of the changes, for instance a brand new app or mobile payment methods, they still felt the benefits of the enhanced internal processes. When asked whether new customers were one of the benefits of mobile solutions, My Doctors Chart noted that ''most of our mobile tech was implemented internally, so customers don't see it directly - they do however feel the benefits of our improved internal organisation.'' All respondents indicated that not only would they maintain their mobile solutions into the future, but they had already developed plans to increase their mobile presence in the coming years.

Years Since Implementation

0 1 2 3 4 5 6

How long have you had Mobile Technologies Implemented?

CGM DeutschlandDominos Pizza (UK)My Doctors Chart

- 19 -

External benefits were also reported by all of the respondents. Each respondent noted that they had access to new customers and new markets through their adoption of mobile solutions and that they had gotten new customers as a result. Dominos noted that their apps and mobile ordering systems enabled them to achieve new customers: smartphone users. There were also a number of cost benefits as customers were not talking to staff over the phone but were perusing on their own apps. Also, the potential for reminders and daily deals through the app encouraged these new customers to become repeat customers and maintained better contact and relations between them and the organisation. CGM Deutschland also said they had acquired new clients through their mobile solutions rollout, but gave few specific details on how this was achieved. When asked to nominate the main benefit of their mobile solutions, responses were split. My Doctors Chart said that improvement of internal processes was the best advantage. Dominos said that 24-hour access was the biggest benefit. Finally, CGM Deutschland said that their adoption of mobile solutions had allowed them to communicate better with their clients.

Fig. 4: Advantages of implementing Mobile Solutions CGM Deutschland noted that a key benefit of their mobile solutions was the ability for customers to access the site on a 24-hour basis, which is essential for almost any industry in the modern business world. CGM Deutschland noted ''Modern customers want to access their details and accounts on an around the clock basis so we felt this was a necessary step. This is also good for encouraging repeat customers.'' Moves towards online technologies mean that customers want to access and research businesses around the clock, and those without a 24-hour presence will be left behind. Also, as indicated in the literature review, the opportunities presented by mobile technical solutions enables worldwide customer potential. Without a 24-hour presence, there will be some problems for those in different timezones, so this is a practical necessity. Finally, all parties indicated that it was in the interests of any type or size of business to invest in mobile solutions, whatever the sector. CGM Deutschland indicated expressly that

Biggest Advantage of Mobile Solutions

Streamline internal information systems (My Doctors Chart)Better communication with clients/customers (CGM Deutschland)24-hour customer access (Dominos)

- 20 -

businesses must adopt mobile solutions ''for sure''. Specifically, CGM Deutschland noted the need to keep pace with the market, ''The next world is of mobile business, and if any company wants to remain in the market should get into that. Initial worries like cost and technical worries must be overcome.'' My Doctors Chart noted that businesses without a global reach should not be concerned about investing in mobile technologies, saying ''yes...even smaller businesses will benefit from (mobile solutions)''. While all businesses found that mobile solutions were necessary, there were initial issues that needed to be ironed out and that businesses were required to have a long term vision for their direction. Further developing that point, Dominos noted that businesses must not expect an initial success or financial reward.

''It is good but not cost effective immediately. Anyone who wants to implement mobile solutions must think about the budget before implementing the new technology. The changes are worth it in the long run, both financially and for the reputation, but they are not cheap.''

While Dominos is a larger organisation and no doubt spent a larger amount of money on mobile solutions, their comments are a lesson for businesses of any size thinking about adoption of mobile solutions. They are a long term investment and businesses hoping to make money in the short term will generally be disappointed. Also, this reinforces the point raised in the literature review, specifically that there must be extensive research and consulting conducted by organisations before they chose to undertake mobile solutions. Merely spending money on a problem will not be sufficient and it will be necessary for organisations to tailor the specific solutions they require in order for them to be successful and to prevent overreach. 6.3 Disadvantages and Areas of Concern By and large, the areas of concern for interview respondents were similar to those that were uncovered as part of the case studies in the literature review, in all but one area - security. Few of the case studies had indicated security concerns at all, which was one of the most interesting findings of the interviews conducted. Two of three respondents (Dominos and

Fig. 5: Disadvantages of Mobile Solutions

Main Disadvantages of Mobile Solutions

Security Threats 66%Cost (Ongoing and Implementation) 33%

- 21 -

CGM Deutschland) indicated that they were confronted by some initial reluctance to invest in mobile solutions, but that it was necessary to have an open discussion and note the benefits of investment. Dominos noted that ''People always resist the change, so it was a little difficult at first. But it is important to adopt these solutions, as they are the way of the future. To convince people in the organisation, you need to tell them the advantages of the implementation of the new technology.'' My Doctors Chart noted that they had no reluctance, primarly because everyone in their staff was aware of the need to make such investments. This is an indication that those who are technically savvy and know of the trends understand the value of making these investments. Cost, both initial and long term was viewed as barriers to the implementation of mobile solutions by all survey respondents. This was both in the early stages as mobile solutions were implemented, and the ongoing costs that form part of the pressure to constantly keep up with a changing industry - and the associated cost - was also viewed as a problem, particularly by My Doctors Chart. On that point, technical know how was also a relevant discussion item. My Doctors Chart noted that they were fortunate ''to have a staff that understands modern trends and can implement some of the technologies ourselves'' but thought the cost and need to acquire knowledge would be much higher for companies who did not have such a technical know how. While other companies did not expressly indicate the technical know how concerns, they are larger organisations, particularly Dominos, and so have a greater capacity to employ technical staff. As the smallest organisation that formed part of the study, My Doctors Chart showed that there may be a number of initial and ongoing technical requirements that will be difficult to fulfil. However, aside from these concerns, the greatest concern of respondents was in relation to security issues. Both Dominos Pizza and CGM Deutschland indicated outright that security concerns were their biggest worry in relation to mobile technologies. As both indicated they had invested in information systems, which held both company and personal data, they thought that the danger of hacking and release of such information was significant. Dominos specifically noted that there were dangers to the reputation of the company and even directly the company itself. Dominos responded to a question on disadvantages of mobile solutions saying that security was the biggest concern as ''Companies who adopt mobile solutions need to put their details online, even if only some (details), so you have to be careful that no-one accesses your data.'' While the concerns were apparent, as yet both organisation noted that they had not experienced any degree of security breach. CGM Deutschland noted that ''so far there have been no problems with the security of the data, but this is something we are working to prevent''. Dominos similarly indicated that they had, so far, not been the subject of a security breach but were working to remain vigilant. Also, CGM Deutschland indicated that there were a few technical issues regarding compatibility with different devices that needed to be addressed, and that this had the potential to be a disadvantage. CGM Deutschland noted that these were not unforeseen, and ''with any online or mobile rollout there are also issues with compatibility'' however had not provided significant difficulties for the organisation who was ''working to address them.'' 7 Conclusion Whether it is telegram, post, telephone or the Internet, technological changes have had serious implications for businesses throughout history. Much like these previous advances, failure to alter your business plan and operations to incorporate them is a recipe for failure. While many

- 22 -

of the necessary changes may appear difficult to those involved with businesses, it is clear from the above experiences that widespread changes do not need to be made in every example. Much of the research that was established throughout the literature review showed the necessity with which companies must treat upgrading to mobile solutions. Aside from providing greater internal and external processes and more convenience, upgrading mobile technologies is essential due to the extent to which mobile solutions have changed the game. Businesses are now expected to adapt to new technologies - and adapt quickly. Should there be any reluctance on the part of the organisation to modernise their services, they will quickly become bettered by the competition. While the reputation aspect of mobile solutions is important, customers will notice the changes, such as more organised information systems and the ability to better maintain an ongoing relationship despite staff turnover and organisational changes. There are obviously also a range of other internal benefits, which will improve business processes and increase employee and customer satisfaction. There will however be a number of difficulties, particularly in the early stages. As indicated in the interviews, many businesses will experience a degree of reluctance which will need to be overcome as all within the organisation must be on the same page and need to be supportive of the company's direction. Using the information above, it is clear that through informing staff of the benefits of mobile technological solutions, fears and concerns will diminish. The most important consideration for businesses is to assess their size and the exact benefits that can be attained through modernising their operations. While initial investment may be costly and there may be a number of difficulties in the early stages, the long term consequences - both financial and otherwise - are far more significant. The potential for a business to grow and succeed through using mobile technologies is endless. While businesses were forced to adapt or wilt with previous technological advances such as the telephone, one of the main differences with mobile solutions is the pace at which the game is changing. Organisations who still have fear about modernising their internal and external processes with mobile solutions must be aware that while some fears are well intentioned, a company's worst fears will be played out should they fail to act at all.

- 23 -

References Barnaghi, P, Semantic Technologies for the Internet of Things, Speech presented at SenZations Summer School, Biograd na Moru, Croatia, September 2014. Barnaghi, P, Wang, W, Henson, C, Taylor, K, Semantics for the Internet of Things: early progress and back to the future, International Journal on Semantic Web and Information Systems, IGI Global, September 2012. Bowling, D, The History Of The Mobile App Marketplace Get ready to step up your trivia about smartphone app stores, WebProNews, 2012 [Accessed on: August 12th, 2014]. Available at: http://www.webpronews.com/the-history-of-the-mobile-app-marketplace-2012-02 Botzenhardt, T. and Pousttchi, K. (2008). Analyzing the Benefits of Mobile Enterprise Solutions Using the Example of Dispatching Processes. 7th International Conference on Mobile Business, pp. 260-269. Connaughton, S and J Daly Leading from Afar: Strategies for Effectively Leading Virtual Teams, Hershey, Idea-group Publishing, pp 49–75. Dredge, S, Mobile apps revenues tipped to reach $26bn in 2013, Guardian Online, [Accessed on: August 12th, 2014]. Available at: http://www.theguardian.com/technology/appsblog/2013/sep/19/gartner-mobile-apps-revenues-report Falk, T, Leist, S, Effects of Mobile Business Solutions for Improving Business Processes, Paper presented at 22nd European Conference on Information Systems, Tel Aviv, 2014. Gruhn, V and Koehler A, Modelling and Analysis of Mobile Business Processes, Journal of Enterprise Information Management, Vol 20, No 6, 2007. Hayzlett, J, Agents of Change: Mobile Mobile Mobile, Marketing News, March 2014, pp 26-29. Heber, A, The British Government Is About To Launch A Raid On Australian Startup Talent, Business Insider Australia, June 2014, Available at: http://www.businessinsider.com.au/the-british-government-is-about-to-launch-a-raid-on-australian-startup-talent-2014-6 Heijden, H. v. d. and Valiente, P. (2002). The Value of Mobility for Business Process Performance: Evidence from Sweden and the Netherlands European Conference on Information Systems (ECIS). Gdansk, Poland, 1144-1153. Leonard, K, Critical Success Factors Relating to Healthcare’s Adoption of New Technol- ogy: A Guide to Increasing the Likelihood of Successful Implementation, Electronic Healthcare, Vol 4, pp 72-81. Malone, T, The Future of Work, Boston, Harvard Business School Press, 2004.

- 24 -

Massachusetts Institute of Technology, Five Myths of Innovation, Sloan Management Review, 2014. May, P, (2001). Mobile Commerce: Opportunities, Applications, and Technologies of Wireless Business, Cambridge University Press. Ngai, E, Gunasekaran, A, A review for Mobile Commerce Research and Applications, Decision Support Systems, Vol 43, 2007, pp 3-15. Pappas and Voskoglou, The European App Economy 2014, 2014, Vision Mobile, 2014. Pousttchi, K. and Habermann, K. (2009). Exploring the Organizational Effects of Mobile Business Process Reengineering. In X. Hu, E. Scornavacca and Q. Hu, (eds.): Proceedings of the 8th International Conference on Mobile Business (ICMB 2009). IEEE Computer Society, Los Alamitos, California, USA: Dalian, Liaoning, China, pp. 353-358. Rez, T, Mobile Solutions For Improving Business Processes, Paper, presented at 'Knowledge-Based Technologies and OR Methodologies for Strategic Decisions of Sustainable Development', September 30–October 3, 2009, Vilnius, Lithuania. Rowlands, S, Consumer Spend on Apps to Reach $75 Billion by 2017, as In-App Purchases Prevail, 2014, Press Release Juniper Research, [Accessed on August 14th, 2014]. Available at: http://www.juniperresearch.com/viewpressrelease.php?pr=394 Shen, S, Blau, B, Forecast Mobile App Stores, Worldwide 2013, September 2013, Gartner Inc. Varshney, U., Vetter RJ. and Kalakota, R, (2000) Mobile Commerce: A New Frontier, Computer Magazine, 2000, pp 32-38. Wu, G, Talwar, S, M2M: From Mobile to Embedded Internet, IEEE Communications Magazine, April 2011, pp 38-43. Xu, X, From cloud computing to cloud manufacturing, Robotics and Computer-Integrated Manufacturing V 28, Iss 1, February 2012, pp 75–86.

- 25 -

Appendix A1: Interview Questions Q1: How long have mobile solutions been incorporated as part of your business plan? Q2: Would you describe your company's adoption of mobile solutions as a successful move? What was the most significant advantage to your business of your adopted mobile solutions? Q3: Was it difficult to convince some within the company that the adoption of mobile solutions was necessary? If you did encounter difficulties, can you please describe these difficulties and how they were overcome? Q4: Has your adoption of mobile technologies as part of your business plan made you available to new customers, customers that previously may not have been accessible? Can you describe how the mobile solutions opened up these new markets to you? Q5: What would you describe to be the best advantage provided by mobile solutions? How is this different than your previous way of operations? Q6: Are there any disadvantages associated with greater integration of mobile solutions? Please describe them in detail, and indicate how you overcame the disadvantages. Q7: Having already integrated aspects of your business with the mobile sector, do you plan further mobile solutions for your business, for example apps, mobile payment options or SMS/ mobile advertising? Please describe them in detail, noting the potential advantages they may provide your company. Q8: Would you recommend to other businesses in your sector that they should integrate mobile solutions into their business model? Do you feel that businesses can remain competitive without adopting mobile solutions? Q9: Is there anything you would like to add regarding your business and adoption of mobile solutions? Please provide an anecdote or story about how your organisation has benefited from mobile solutions. A2: Interview Responses

Interview 1 Organization: CGM Deutschland (CompuGroup Medical) Website: http://www.cgm.com/de/index.de.jsp Person Name: Muhammad Ali Malik Job Title: Quality Assurance Manager Email Address: [email protected] Q1: How long have mobile solutions been incorporated as part of your business plan? We incorporated mobile solutions into our business in 2012 (two years).

- 26 -

Q2: Would you describe your company's adoption of mobile solutions as a successful move? Yes, the company's move towards mobile technology was a clever and very important move. It has enabled us to stay up with the competition and to save money in the long term. Q3: Was it difficult to convince some within the company that the adoption of mobile solutions was necessary? No, in fact it was easy. There was a cost involved but it has paid off, within a year of adopting the new technologies. Q4: Has your adoption of mobile technologies as part of your business plan made you available to new customers, customers that previously may not have been accessible? Yes, mobile adaptation has made the life of our customers easier, which ultimately resulted in winning new customers. Also, the benefit provided by integrating mobile contact systems and information data means that we get more repeat customers and build a good relationship (with our customers). Q5: What would you describe to be the best advantage provided by mobile solutions? 24x7 availability. Modern customers want to access their details and accounts on an around the clock basis so we felt this was a necessary step. This is also good for encouraging repeat customers. Q6: Are there any disadvantages associated with greater integration of mobile solutions? I think security threat is the biggest threat to mobile solutions and compatibility with different devices is also a big issue. So far there have been no problems with the security of the data, but this is something we are working to prevent. As with any online or mobile rollout, there are also issues with compatibility but we are working to address them. Q7: Having already integrated aspects of your business with the mobile sector, do you plan further mobile solutions for your business, for example apps, mobile payment options or SMS/ mobile advertising? Yes we are already making apps (for IOS and Android), developing more into mobile integrated business. Customers access the internet more and more through their smartphones and apps so it is necessary for us to keep pace. Q8: Would you recommend to other businesses in your sector that they should integrate mobile solutions into their business model? Yes for sure. The next world is of mobile business, and if any company wants to remain in the market should get into that. Initial worries like cost and technical worries must be overcome. Q9: Is there anything you would like to add regarding your business and adoption of

- 27 -

mobile solutions? Just keep the whole market in your reach with integrated mobile rollouts. Get in the IOS, Android stores or whatever is the appropriate sector in your product range. (Mobile solutions can) provide stable solutions to the customer which otherwise can result in customer loss. Interview 2 Organization: Domino's Pizza, Birmingham, UK Website: www.dominos.co.uk Person Name: Ramzan Majeed Job Title: Marketing Manager Email Address: [email protected] Q1: How long have mobile solutions been incorporated as part of your business plan? Just under three years. Q2: Would you describe your company's adoption of mobile solutions as a successful move? Yes. Customers can place their orders by mobile phones, it is more convenient for them to order the product of their own choice easily. They can browse and answer any questions they may have, and we do not need to spend time on the phones etc. Android phone (users) can scan our barcodes and order directly, plus customers can direct go to the latest offers. Q3: Was it difficult to convince some within the company that the adoption of mobile solutions was necessary? People always resist the change, so it was a little difficult at first. But it is important to adopt these solutions, as they are the way of the future. To convince people in the organisation, you need to tell them the advantages of the implementation of the new technology. You need to explain it to them to make it easy to understand the (benefits of the) adoption of new solutions. Q4: Has your adoption of mobile technologies as part of your business plan made you available to new customers, customers that previously may not have been accessible? Yes. Q5: What would you describe to be the best advantage provided by mobile solutions? Information can be accessed anywhere and anytime - even by someone in bed! It is a hassle to spend time on the phone or to start up on the laptop or PC, but (with a) mobile phone application the same job can be done in less time with less headaches. Q6: Are there any disadvantages associated with greater integration of mobile solutions? Security threat. Companies who adopt mobile solutions need to put their details online, even if only some (details), so you have to be careful that no one accesses your data.

- 28 -

Q7: Having already integrated aspects of your business with the mobile sector, do you plan further mobile solutions for your business, for example apps, mobile payment options or SMS/ mobile advertising? We are using SMS services for advertising and updating our customers with new offers. Also we will encourage more usage of our apps in Android or IOS. Other changes like mobile Pay wave are possibly also in the future. Q8: Would you recommend to other businesses in your sector that they should integrate mobile solutions into their business model? It is good but not cost effective immediately. Anyone who wants to implement mobile solutions must think about the budget before implementing the new technology. The changes are worth it in the long run, both financially and for the reputation, but they are not cheap. Q9: Is there anything you would like to add regarding your business and adoption of mobile solutions? Not answered Interview 3 Organization: MyDoctorsChart Website: www.mydoctorschart.com Person Name: Ali Raza Job Title: UI/UX Program Development Lead/Architect. Physical Address: A7481, Warden Road Sherwood, Arkansas 72120, USA Q1: How long have mobile solutions been incorporated as part of your business plan? Five years.

Q2: Would you describe your company's adoption of mobile solutions as a successful move? Yes. The move was successful and it has helped our operating. We put together internal databases, which has helped keep record of our operations, and made things easier. Q3: Was it difficult to convince some within the company that the adoption of mobile solutions was necessary? No. Most in our company are technically savvy and needed little convincing. They know that you must stay up to date in this area. Q4: Has your adoption of mobile technologies as part of your business plan made you available to new customers, customers that previously may not have been accessible? Yes. Having an online mobile presence opened up a range of new customer sources. However most of our mobile tech was implemented internally, so customers don't see it directly - they do however feel the benefits of our improved internal organisation.

- 29 -

Q5: What would you describe to be the best advantage provided by mobile solutions? Internally, we used PDAs and information management systems to help us keep track of our data. Externally, I would say apps are the most important now. Having a presence in app stores, including advertising and purchases, helps the company's reputation and attracting customers. Q6: Are there any disadvantages associated with greater integration of mobile solutions? Keeping pace with the new platforms. This can cost money and for a business of our size it is a bit worrying. All in our organisation know the need to keep pace or die out, but this can be costly. Q7: Having already integrated aspects of your business with the mobile sector, do you plan further mobile solutions for your business, for example apps, mobile payment options or SMS/ mobile advertising? Yes. We are still only really beginning to streamline our online operations. We would like to have a greater external presence with mobile technologies. Q8: Would you recommend to other businesses in your sector that they should integrate mobile solutions into their business model? Yes, I think so. Even smaller businesses will benefit from this. Q9: Is there anything you would like to add regarding your business and adoption of mobile solutions? Nothing to add, other than it is necessary to keep pace in modern business (to implement mobile solutions). We are lucky to have a staff that understands modern trends and can implement some of the technologies ourselves, but even for all kinds of businesses this is necessary. A3: List of Abbreviations APP Application Software BPM Business Process Management GPS Global Positioning System GPRS General Packet Radio Service EMS Emergency Medical Service EU European Union M2M Machine to Machine MMS Multimedia Message Service SMS Short Message Service PDA Personal Digital Assistant