How Mobility is Transforming Businesses Industries & the World

8/10/2019 How Mobility is Transforming Businesses Industries & the World

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Mobile Is Changing the World

From How Mobility Is Changing the World, a report by Harvard Business Review Analytic Services. Find more on sap.com/mobile/hbr.

Innovative mobile technologies including machine to machine, location-based services, and

augmented reality improve society everywhere.

AUGMENTED REALITY

SMART LOGISTICS

INTELLIGENT RETAIL

INNOVATIVE HEALTH CARE

CONNECTED HOMES

MOBILE BANKING

2013 Harvard Business Publishing. All rights reserved.


2/15

Innovative mobile technologies improve lives and society inboth developed and developing economies.

A REPORT BY HARVARD BUSINESS REVIEW ANALYTIC SERVICES

How Mobility IsChanging the World

WHEN ANALYSTS FOR the World Bank early in 2012 calculated the global growth in mobile

technology between 2005 and 2010, the results were staggering. Taking into account seven

indicatorsfrom coverage available and subscriptions per capita to mobile broadband sub-

scriptions and mobile Internet use (not just cellular use)its July 2012 Maximizing Mobile

report calculated a 30 percent increase in availability and usage.

Significantly, the report noted that growth was not limited to just a few regions. In 2000,

according to the World Bank, there were 700 million mobile subscriptions, 71 percent of

them in high-income countries and 29 percent in developing countries. Figure 1

By 2010, there were 5.9 billion mobile subscriptions, 23 percent in high-income countries

and 77 percent in developing countries.

And when IDG Global Solutions measured worldwide usage of emerging technologies ear-

lier this year, such as location-based offers and contactless transactions (in which a card is

waved near a receiver, rather than run through a reader), it also found mostly moderate dif-

ferences in the penetration among North America, Europe, and other regions. Figure 2

Whats behind this global boom? Why does mobility span borders so easily? Why have

handheld devices, such as smartphones and tablets, succeeded where computers havent?

And what kind of capabilities has this success brought, both in developed countries and in

emerging markets?

Handheld devices have succeeded globally thanks to a variety of characteristics. With

increasingly powerful processors and storage, they have been able to subsume a lot of the

capabilities of computers without adding complexity. Handheld devices retain their sim-

plicity and ease of use. Simplicity means that even users with limited education can take

advantage of them, which promotes popularity even in underdeveloped countries.

At the same time, handheld devices limited screen size also contributed to their global

utility. It forced developers to be more creative: without space for word-based menus,

developers have turned to iconography. While some symbols may have different meanings

across cultures, enough of them relating to technology remain common.

However, the utility of handheld devices goes beyond their internal capabilities. By defi-

nition, they need a strong infrastructure component. This has benefited emerging markets


Figure 1

Developing CountriesMobile Deployments Soar

nDeveloping countries

nDeveloped countries

2000: 700 million globalmobile subscriptions

2010: 5.9 billion global

mobile subscriptions

Source: World Bank

71%

29%

77%

23%


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as well, thanks to the ease of deployment of wireless networks.

Because they require only cell towers, rather than massive

underground construction, their infrastructure is easier and

faster to deploy. The World Bank report highlighted a number

of countries where mobile broadband penetration far outstrips

fixed broadband. Figure 3

Mobile devices also benefit from economics. Besides being

easier to use, smartphones and tablets are less expensive than

personal computers. Lower costs tend to lead to higher adop-tion. Following the precepts put forth by C. K. Prahalad and Stu-

art L. Hart in their best-selling book, The Fortune at the Bottom of

the Pyramid, companies can benefit by targeting the huge mar-

kets among the worlds poorest citizensand bringing them the

capabilities and potential for economic parity.

A Roundup of Innovative GlobalUse Cases

The result of the mobile device proliferation is an astonish-

ing panoply of cutting-edge applications transforming the way

people work and communicate, ranging from location-based

services and mobile payments to machine-to-machine commu-

nications and augmented reality.

LOCATIONBASED SERVICES. Applications that combine user

location with geographical information are in the forefront of

cool technology. Its not just the ability to find automatic teller

machines on a map; its also the ability to access consumer

reviews of retailers through Yelp or Zagat or other online rating

services whether youre in Berlin or Buenos Aires. Consumers

who have downloaded a retailers app can frequently get an alert

of a discount when they come in the vicinity of a store.

MOBILE BANKING.Bringing the unbanked into the regional and

global economy is providing a boost not only for quality of life in

underserved areas, but also in economic opportunity.

Financial services, for a lot of people in the developing world,

now happen via their mobile phone, notes Andrew McAfee, a

principal research scientist at the Massachusetts Institute of

Technologys Center for Digital Business and the co-author of the

new book,Race Against the Machine. Theres a very well-known

service called MPesa in Kenya that lets people do peer-to-peer

cash transfers. This is a big deal because a lot of the population

there has had no access to financial services. Now were seeing

people get access to credit markets, insurance, microlending,

and other banking services. And some of those applications are

going to be so innovative that they find their way back to the

developed world.

Other banks throughout the developing world are jumping on

the mobile payments bandwagon. The Standard Bank of South

Africa, the largest bank on the continent, uses mobile technol-

ogy not only to help rural citizens establish bank accounts, but

has deployed a mobile wallet application that lets them shop,pay utility bills, add airtime to their mobile devices, and transfer

money to others like MPesa does.

Similarly, the Bangladesh-based Dutch-Bangla Bank Limited

(DBBL) conducted a survey and discovered that 87 percent of its

potential customers in Bangladesh did not have a bank account

of any type due to the lack of any branch office near where they

live. However, the study also revealed that 50 percent of this

market segment possessed a mobile phone. So DBBL deployed a

Applications that combine user location with geographicalinformation are in the forefront. Consumers can get an alert of

a discount when they come in the vicinity of a store.

Figure 2

Becoming Mobile SavvyPERCENTAGE OF RESPONDENTS WHO INDICATED USE OF ADVANCED

MOBILE TECHNOLOGIES

nLocation-based offers nContactless transactions

Western Europe

Eastern Europe

North America

Latin America

Asia-Pacific

Source: IDG Global Solutions

17%8%

12%7%

23%

13%6%

6%

4%

20%


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mobile wallet application capable of multiple financial trans-

actions, and increased its business without investing in new

branches or the resources to staff them.

MACHINETOMACHINE. The so-called Internet of Things has

already begun to proliferate beyond General Motors OnStar crash

sensors. In remote sections of Africa, where it takes days to ship

crucial medical supplies, cabinets and medicine containers can be

outfitted with sensors to transmit when theyre running low.

And the implications for the manufacturing supply chain are

significant. Imagine the ability of vending machines to trans-

mit how much merchandise they still contain, eliminating the

need for truck rolls to replenish machines that arent empty. On

a global scale, imagine sensors on shipping containers coming

from China that transmit their location, enabling customers in

Europe or South America to identify their location immediately.

We are also on the verge of seeing networked home appli-

ances that transmit servicing needs; utility monitors that track

energy usage across smart grids; environmental systems manag-

ing lights, water, and heating and cooling usage; and even home

health care monitoring devices for patients.

AUGMENTED REALITY.The burgeoning field of AR combines com-

puter-generated content with camera-generated views of the

real world. Imagine calling up Google Maps with Street View and

seeing pop-ups indicating which stores are offering bargains.

According to chip vendor Qualcomm, more than 1,800 commer-

cial applications of AR have been developed for Android and iOS.

Developers at Torontos Royal Ontario Museum created an

application visitors can download to iOS devices not only to

envision dinosaurs as they might have actually looked and

moved, but also to snap pictures of themselves standing next to

the dinosaurs.

Whats truly intriguing about these mobile capabilities is the

ability to combine them, along with other new technologies,

such as cloud and big data, to create something greater than

the sum of its parts. Consider the ability to collect information

from road sensors and GPS systems in order to help drivers find

parking spaces in crowded urban areas, or the ability to combine

location-based sensors and customer-relationship management

systems to alert high-value consumers to a sale in their vicinity.

A New World of Mobility and Insight

Never before in the history of technology has there been such

strong development in three key areas: the power of devices,

the plethora of back-end information, and the ability to inte-

grate multiple sources of the latter to display on the former. As a

result, these global deployments of mobile technology represent

only the vanguard of new capabilities. Figure 4

As McAfee notes, Now that we have devices in the hands of

literally billions of people, we have thrown open the door wide

to application innovation. We dont know what all the innovators

and entrepreneurs are going to do with this collection of power-

ful, connected devices, lots of different sensors, and then a brain

connected to each of those devices, but were going to see some

fantastic advances in the future.u

Figure 3

Wireless Broadband Exceeds Wiredin Developing EconomiesPERCENTAGE OF DEVICE SUBSCRIPTIONS IN SELECTED COUNTRIES,

BY MEDIUM

nWired broadband nWireless broadband

Colombia

Kenya

South Africa

Vietnam

Source: TeleGeography, Inc., March 201 1, and World Bank

20%

6%

9%0.1%

13%

2%

5%14%

Figure 4

Global Mobility InnovationsEXAMPLES OF INNOVATIVE USES OF MOBILE DEVICES AND INFRA

STRUCTURE IN DEVELOPING AS WELL AS DEVELOPED ECONOMIES

COUNTRYREGION INDUSTRY EXAMPLE

Canada Tourism Royal Ontario Museum enables

visitors to have an immersive

experience

China Logistics Shipping containers transmit

location and condition information

to recipients

Kenya Banking M-Pesa: peer-to-peer cash

transfers using cell phones

Rural Africa Healthcare Sensors detect impending

supply shortages and automaticallyrequest replenishment

South Africa Banking Mobile wallet from Standard

Bank of South Africa enables billpayment and shopping

Sources: Harvard Business Review Analytic Services, Cognizant


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Mobile devices are everywhere. Before

long, the number of global mobile sub-

scriptions will exceed the number of hu-

mans on the planet.

The ways that mobile devices are used

throughout the world vary somewhat

by region, but it is universally true that

mobile technology is transcending

voice communicationtranscending

even web access and applications. We

are on the verge of a whole spectrum of

new ideas that will change lives for the

better, all thanks to mobile technology.

In the developed world, mobile technology already goes well be-

yond the conveniences of personal devices. A wide variety of prod-

ucts as well as vehicles, machines, and electronics are beginning

to use mobile broadband connectivity to transmit information that

puts humans in far greater control over everything from utilization

of the energy grid to setting their alarm clocks. For example, U.K.-

based Anglian Water is using sensor data extensively to improve

their quality of service. Anglian monitors its water treatment equip-

ment to make sure it is operating at peak efficiency, which results in

lower maintenance costs, happier customers, and better environ-

mental sustainability.This intelligent sharing of information between machines and sen-

sors is creating an Internet of Things, and as it matures it will begin

to significantly shape the way we live and do business in the years

ahead. Nearly every industry will find ways to optimize its opera-

tions using real-time data from the Internet of Things, and these ad-

vancements will result in greater profits as well as reduced energy

usage, less waste, better emergency response, and greater expedi-

ency in delivering goods when and where they are needed.

Elsewhere, in developing nations, the growing availabilityand fall-

ing costof mobile network coverage means a far greater percent-

age of the worlds poor have access to computing devices for the

first time. Out of 6 billion total global mobile subscriptions, nearly 5

billion are in developing nations, reports the World Bank. And many

countries are still experiencing double-digit growth.

In these countries, mobile devices are bringing real quality-of-life

improvements via access to services that were virtually unheard of

before. For example, in Uganda, where 80 percent of the population

has no access to traditional financial services, a program to help

people transfer money to family members using mobile phones was

processing 385,000 such peer-to-peer money transfers per month

only 16 months after launching. A similar mobile wallet program

in KenyaSafaricoms M-Pesahas achieved notable success and

profitability there.

The opportunity, both for these mobile device users and for the

businesses that supply them with mobile apps and services, is

very rich indeed. At SAP we are working hard to support organi-

zations across the globe with their mobile technology ambitions.

We provide end-to-end mobile solutions that allow businesses to

bring greater utility and improved quality of life to all stakeholders

employees, customers, and partners. We provide security, manage-

ment, mCommerce, and other solutions to reduce internal risk and

effort as they bring greater utility and quality of life to the worlds

more than 6 billion small screens.

I invite you to learn more about SAPs solutions for taking the worldmobile at sap.com/mobile. With greater understanding of how SAP is

providing the tools to enable greater mobile app choice and reliability,

youll soon understand why SAPs mobile technology leadership is a

critical driver of global transformation, innovation, and philanthropy.

Sincerely,

Sanjay J. Poonen

President and Corporate Officer, Global Solutions, SAP

ABOUT SAP

As the worlds leading provider of enterprise application software, SAP delivers products and services that help accelerate business innovation for its more

than 183,000 customers in more than 120 countries.

Sponsors Perspective

hbr.org

SANJAY J. POONEN

PRESIDENT AND

CORPORATE OFFICER,

GLOBAL SOLUTIONS

SAP

MC175411212


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Mobile Transforms Industries

20%

From How Mobility Is Transforming Industries, a report by Harvard Business Review Analytic Services. Find more on sap.com/mobile/hbr.

Sources: PA Consulting, C

$21.1 billion

A sample of the benefits of mobile access to enterprise applications accrued by utilities, health carand retail organizations.

improvement in fieldforce productivity

potential annual savingsfrom mHealth

increase in onlineretail sales

130%



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Utilities, health care, financial services, retailers and otherleading adopters are reworking their mobile strategies to takeadvantage of the latest technologies.


How Mobility IsTransforming Industries

MOBILITY IS CHANGINGthe way industries operate. Not one industry; all industries. The shift

from a wired to a wireless world is proving to be almost as dynamic as the shift from horses

to automobiles.

Its not just the ability to receive data on mobile devices. These devices have become so

powerful in recent years that they can frequently replicate high-end functions previously

limited to laptops and desktops, such as showing video and other graphics.Those devices are getting more capable every year, and with the proliferation of them we

have opened the door to application innovation, notes Andrew McAfee, principal research

scientist at the Massachusetts Institute of Technologys Center for Digital Business and the

coauthor of the new book Race Against the Machine. Were going to see some fantastic

things, in every area of the organization. This innovation enables industries to leverage

those capabilities in the workplace for executive dashboards, equipment maintenance, and

even training programs.

Its more than the ability to shift employees from being deskbound to being mobile. Its

the ability to transform industries by bringing features that are unique to mobility, such as

location, presence, and routing. That kind of capability can not only increase efficiency and

eliminate additional friction in business processes, but it also has the potential for launching

new products, new services, and even new business models. Both top and bottom lines, as

well as many business processes, are being remade in real time as executives, managers, and

frontline professionals begin to understand the vast opportunities of mobile technology.

Thats why no industry is immune from the impact of mobile devices. Of course, indus-

tries where employees are traditionally mobile, such as utilities, health care, financial ser-

vices, and retailing, are more impacted at first by the rise of smartphones and tablets. Indus-

tries where you wouldnt necessarily expect mobile technology to have an impactsuch as

farming, education, and manufacturingalso are being remade.

Whats so compelling is that the lower costs, usability, and ease of application develop-

ment associated with these devices means that almost any business can take advantage of

their capabilities. Not only is the cost of the devices lower, but the cost of application devel-


Figure 1

Mobile Device UsageGoes Way Beyond Callsand EmailPERCENTAGE OF RESPONDENTS

WHO INDICATED THEY REGULARLY

USE SPECIFIC FUNCTIONALITY

Make phone calls

SMS/text messaging

Browse the Internet

Email

Use mobile apps

Social networking sites

View video content

Source: IDG Global Solutions

94%

84%

69%

69%

59%

31%

42%


8/15

opment is as well; developers are flocking to this virgin territory.

There are millions of apps out there, estimates Jeffrey Kagan,

an independent mobility analyst. The number is growing rap-

idly, and theyre not just gamesthey are apps relating to busi-

ness. Right now, he says, people are delighted with the num-

ber of apps that interest them. But theres also a ton of apps for

things youre not interested in, all the things that other people

do. Its like the wild, wild West out there.

Indeed, 55 percent of more than 21,000 survey respondents,

mostly IT professionals, said they use their mobile phones for job-

related tasks, according to a new survey by IDG Global Solutions.And while email is the most frequently cited business-related use

of a mobile device, professionals and managers are using their

smartphones and tablets to access corporate apps, watch training

videos, review and create documents, and perform other tasks.

Figure 1

The Industries in the ForefrontIndividual enterprise strategies aside, which industries are the

pioneers in the mobility landscape, and what are the early les-

sons learned? Heres a look at some of the leaders as well as some

unique scenarios.

UTILITIES. Given the extensive geographic areas utilities serve,

they face a win-win-win scenario with mobile technology.

By deploying mobile technology to their workforce, they can

improve productivity and transform service delivery in the field.

By deploying it to their customers and partners, they can rapidly

analyze asset and service performance, better track customer

consumption trends, and improve environmental steward-

ship. Combining this information with the fast-growing array

of mobile analytics will enable utility managers to more quickly

target solutions and capital investments.

According to an August 2012 PA Consulting survey, utilities are

already enjoying a 23 percent increase in service-level agreement

compliance and up to a 20 percent improvement in field force

productivity, thanks to mobile technology. Other areas in which

utilities are reaping benefits from mobile reporting include

demand management through the use of smart meters; opera-

tional efficiency by integrating GIS systems with mobile devices;

customer service through the use of service call reminders and

outage notifications; and brand awareness.

By combining multiple applications on a single mobile device,

utility field support workers can boost their productivity, particu-

larly for capital-intensive projects. Consulting firm Cap Gemini

recently reported on the effort of a Toronto utility that needed to

convert 1.2 million conventional electric meters to smart meters.

But mobile devices deployed to the workers allowed them to elec-

tronically gather other important data such as meter numbers,

meter reads, GPS coordinates, and customer premises details,

reducing the projects overall cost. This in turn helped establish a

collaborative partnership between the utility and its customers on

improving energy consumption.

HEALTH CARE. The health care industry has a long history of tak-

ing advantage of mobile technology, from early adoption of Palm

Pilots for ePrescribing to mobile computers on wheels. However,

mobility is transforming this industry even further with the abil-

ity to have in-home medical devices monitor patient data and

transmit it to practitioners. And these devices do not have to

conform to our current ideas about computingsmart medica-

tion bottles now include sensors in the bottle cap that trigger a

wireless notification that a patient has taken medication, and

then request a prescription refill after the appropriate number

of events, or notification if the patient fails to take medications.

Accuracy and speed are also key benefits. Its easier for prac-

titioners to confirm the appropriateness of a drug quickly and

easily; prescribing can also be done based on the most updatedinformation. Physicians carrying smartphones or tablets can

access remote patient assessments and lab reports immediately

upon their completion, as opposed to waiting until they can

get back to their desk or a stationary computer. Consider also

the ability of practitioners to use workflow or social media via

mobile devices for improved collaboration.

Mobile technology can also help address the industrys rising

costs. In the May 2012 report titled Socioeconomic Impacts of

Wireless Technology: A Review of Opportunities and Challenges

in Health Care, Finance, Education and Community Empower-

ment, the wireless industry association CTIA predicted that in-

home wireless health care services and applicationsthe abilityto manage patients and upload health data without a clinical

visitwill become a $4.4 billion industry by 2013, and that the

potential savings to consumers, insurance companies, and gov-

ernment payers resulting from mHealth technology may reach

$21.1 billion per year.

FINANCIAL SERVICES. Mobility can transform financial ser-

vices in its ability to reach the unbanked or underbanked

demographicpeople who have mobile phones but not bank

accounts. A February 2012 article in Bank Systems & Technology

estimated that some 25 percent of the U.S. population (accord-

These leapfrogging technologies mean that were likely to seeinnovation happen in places where were not expecting it.


9/15

ing to the Federal Deposit Insurance Corporation) and 70 percent

of the worlds population (according to several sources) has no

access to financial services.

Some countries are going beyond what were using in the

United States, notes McAfee. These leapfrogging technologies

mean that were likely to see innovation happen in places wherewere not expecting it.

This transformation will manifest in a number of ways. First, the

potential growth in the mobile payment market and the ability to

make payments via mobile phones is stunningthe CTIA projects

it will reach $670 billion annually by 2015. Its likely that the smart-

phone will overtake the wallet just as it has overtaken the camera,

the personal organizer, and other traditional accessories. Figure 2

But equally transformative will be the ability of financial institu-

tions to not only provide a bank in the palm of the hand but also

spur economic activity through granting microloans and offering

consultation to small businesses in developing countries.

RETAIL. Mobile technology works for both customers and sales-

people. Stores can target customers with promotions when

theyre in the store, and salespeople can not only show custom-

ers product videos to answer questions, but they can also check

inventory information and enter the order; the tablet essentially

eliminates the need for the cash register (for credit card cus-

tomers). Este Lauder has installed tablets in department store

kiosks so that customers can input information about their skin

tone and complexion and then get a list of appropriate products.

The inclusion of optics in handheld phones has led to the

explosion in QR codes, codes that the phones can scan to take

the customer to a Web site for more information. The value ofQR codes is that they can be placed anywhere customers or pros-

pects come into contact with advertising: kiosks, store windows,

magazines, and more. In Seoul, South Korea, grocer Tesco placed

electronic billboards in the subway stations, allowing commut-

ers to scan product codes, transmit them to a central server,

and have those items delivered after they arrive home; the store

reports its online sales have increased 130 percent since the cre-

ation of the billboards. In other locations, Tesco has installed

cameras in produce departments to recognize when vegetable

bins are empty and automatically notify shelf stockers via their

mobile devices of what needs to be replaced.

What Other Industries Can Learnfrom Mobility PioneersMobile technology is also expanding beyond the aforemen-

tioned industrieswhich are traditionally technology innova-

torsto less-traditional industries. According to the CTIA report,

farmers are using wireless applications to monitor crop develop-

ment and livestock management. It cites the use of sensorsin

this case, wireless soil monitorsattached to plants to monitor

growth. Wireless data provides farmers with actionable knowl-

edge about more precise and resourceful farming techniques

[that] will affect water and land conservation and reduce use

of fertilizers and pesticides, the report noted.

While schools have been relying on computers in the classroom

for years, they still required printed textbooks. Replacing those

with tablets can potentially reduce the cost of books each year.Other educational applications arent far behind, such as student

testing, or athletic coaches using tablets instead of clipboards to

keep track of plays. In addition, the tablet can help train students

in a wide variety of learning scenarios, showing them videos or

animated demonstrations.

ConclusionAnyone with the imagination to innovate can apply mobile

technology to any industry and find ways to take advantage of

data being uploaded or downloaded faster or more conveniently

than it is currently. But looking at how other companies in lead-ing industries are capitalizing on mobile technology can be both

educational and inspirational toward crafting ideas for a mobile

strategy that can provide greater competitive advantage sooner

rather than later. u

Figure 2

Mobiles as Electronic Swiss Army KnivesPERCENTAGE OF RESPONDENTS WHO INDICATED THAT A MOBILE

DEVICE REPLACED ANOTHER PRODUCT

Clock/alarm

Personal organizer

Music player

Landline phone

Newspapers

Books

Computer

Source: IDG Global Solutions 2012 Mobile Survey

65%22%

55%45%

52%34%

35%

6%33%

62%

14%51%

5%20%

nSmartphone

nTablet


10/15

Mobilitys capacity to accelerate busi-

ness is extraordinary. Moreover, it con-

fers its benefits across every industry,

business function, and job role. From

the corner office to the factory floor,

mobile devicesand the apps that run

on themare providing a better way for

virtually everyone to improve their con-

tribution in the workplace.

The image of the white-collar road

warrior taking meetings in the airport

is a familiar depiction of mobilitys

endowment to business. But by looking

beyond the clich you can begin to

understand just how widely varied

mobile technologys reach has become. Knowledge workers are

merely the tip of the iceberg.

Entire industriessome previously underserved by information

technologyare undergoing a transformation like never before.

Unlike traditional desktop delivery, mobile computing gives

companies in hands-on fields such as manufacturing and

agriculture the ability to transform how people do their jobs,

regardless of whether they ever sit at a desk.

For example, SAP is helping customers such as Tommy Hilfigerdisseminate high-resolution images of its upcoming clothing

lines to employees on their iPads. Employees can see and

discuss important features of the products and speed workflows

in the process.

Similarly, Santiago, Chile-based Empresas Iansa, an agricultural

manufacturer, was able to give workers in the fields, warehouses,

and delivery vehicles access to real-time inventory information

and the ability to participate in quality control procedures.

These improvements have helped them eliminate supply chain

errors that once caused havoc with production.

As the accompanying report relates, retail, health care, utilities,

and financial services are just some of the industries that are

transforming both internal and customer-facing processes

using applications created by SAP. At SAP, we have leveraged

our decades of experience in resolving critical bottlenecks

in virtually every industry and combined it with our mobile

technology leadership to create mobile apps that let businesses

do what they never could before.

For example, SAP Service Manager is an app that gives field

service workers access to customer account data, parts

inventory, and other electronic information wherever they

go. As a result, these workers are achieving a high level of

effectiveness and standard of customer support that was simply

never possible before.

For SAP, the excitement and momentum around mobile

technology has hit a fever pitch, and this is driven by our

excitement at seeing our customers use our mobile apps to

transform how they do businessmobilizing their enterprise.

We invite you to learn more about SAPs mobile app offerings

as well as those from our partner ecosystem by visiting the

SAP Store from here: sap.com/mobile. Youll soon understand

why SAPs mobile apps leadership is a critical driver of mobile

transformation and innovation in a wide variety of businesses.

Sincerely,

Sanjay J. Poonen

President and Corporate Officer,

Global Solutions, SAP

ABOUT SAP




hbr.org

SANJAY J. POONEN

PRESIDENT AND

CORPORATE OFFICER,

GLOBAL SOLUTIONS

SAP

MC175411012


11/15

Mobile Conquers the Enterprise

58%

From How Mobility Is Changing the Enterprise, a report by Harvard Business Review Analytic Services. Find more on sap.com/mobile/hbr.

Source: IDG Research Services, 2

All Industries All Departments

52%

All Roles

INDUSTRY SPECIFIC APPS% of respondents indicating

already deployed

54%

MOBILE INVESTMENT DRIVERS% of respondents indicating

executives need to access critical

business information

Recent survey highlights growing interest in accessing enterprise systems via mobile devices

LINE OF BUSINESS APPS% of respondents indicating

deployment of finance, CRM,

HR, field service



12/15

Forward-thinking enterprises use mobile technology acrosstheir organizations to give employees, suppliers, and customersaccess to appropriate data when and where they need it.


How Mobility Is Changingthe Enterprise

WITH THE BOOM in smartphones and tablets, we are in the vortex of the technological shift

from Mobile 1.0 to Mobile 2.0.

The zenith of the Mobile 1.0 explosion came late in 2008, when the sales of laptops sur-

passed the sales of desktop PCs for the first time. Enterprises had long before begun outfit-

ting what they called road warriors with laptopssalespeople, field support personnel, and

on-the-go executivesgiving them access to inventory, documentation, and other databases.Simple wireless antennas, followed by built-in Wi-Fi, coupled with virtual private network

software, made logging on anywhere and anytime almost as easy as it was in an office.

Later enterprises realized that by outfitting even more employees with laptop computers

instead of desktop computers, even traditional office workers could improve their productiv-

ity. Employees could collaborate in conference rooms, in the offices of partners and suppliers,

and in airports, no matter where their work took them.

History is about to repeat itself. Sometime in 2015, according to a Forrester Research fore-

cast,1the sales of tablets will overtake laptops. If Mobile 1.0 was about the extension of cor-

porate data to mobile devices, Mobile 2.0 is about innovation and transformation. Its all

about wireless data, says independent technology industry analyst Jeff Kagan, who spe-

cializes in mobile technology. Were in the early days of this new way of thinking about all

these new devices. When these devices first came out, they were cool, they were fun. Now

they are the way we work and communicate.

This new evolution is not just about mobility; its also about mobile devices working in con-

cert with back-end corporate systems. The IT industry is in the process of creating a dramatic

and powerful new infrastructure, one where a handheld device has the horsepower to run

many applications and crunch a substantial amount of data offline while relying on wireless

connectivity to access huge data sets using beefy enterprise applications wherever they are.

According to the results of an online February 2012 survey by IDG Research Services,

three drivers are accelerating the demand for mobile access to enterprise apps: executive

demand, the increasingly mobile workforce, and customers demand for real-time informa-

tion and action. Figure 1


Figure 1

Whats Driving MobileInvestment?HOW IMPORTANT ARE THE

FOLLOWING TRENDS AS DRIVERS

OF INVESTMENTS IN MOBILE

TECHNOLOGY AND SERVICES AT

YOUR ORGANIZATION?

Executives need to access critical

business information

Workforce becoming increasingly

virtual and mobile

Employees and/or customers

increasingly demand real-timeinformation

n=140


54%

51%

49%


13/15

These drivers are extending the boundaries of computing, not

only in terms of where computing is done but also in terms of

what computing can be done. The advent of cloud computing, in

fact, is profoundly remaking those boundaries with new applica-

tions, flexibility, and efficiency. And even companies resistant to

the public or private cloud concepts are providing mobile deviceaccess to enterprise applications.

Specific departments are already reaping the benefits of these

expanding boundaries. According to the IDG survey, more than

half of the respondents have deployed industry-specific mobile

applications and half have deployed mobile apps for specific de-

partments, such as finance, human resources, sales, or field ser-

vice. In addition, almost half have deployed dashboards, access

to analytics, and key performance indicator alerts on mobile

devices. Figure 2

However, the advantages of providing mobile device access

to enterprise apps extend beyond employees to customers. The

same IDG survey found that 40 percent of companies are giving

consumers access to actionable information via mobile devices.

While almost everyone is familiar with banks and securities firms

providing updates on account balances and transaction status,

business-to-business access is booming too.

In addition, mobile device interaction through social network-

ing sites provides new ways for customers to communicate and

for companies to offer sales and marketing opportunities. Sup-

porting this kind of interaction between customer and company

increases customer intimacy, and at lower costs than human in-

teraction would require.

The impact of mobility on lines of business has been pervasive;

no department is immune from its effects. Mobility is changing

how things are done, says Daryl Schoolar, a principal analyst for

infrastructure issues at Ovum Research. Its being driven by more

devices and better devices, all of them bringing instantaneous and

convenient computing. Essentially, enterprises are using mobile

technology not only to compress the time it takes for business

processes, but also to provide highly accessible, accurate, and up-to-date information to help employees, partners, and customers

make better decisions.

Indeed, the impact of mobile device access to enterprise appli-

cations is considered transformational by a substantial number of

companies. According to the IDG survey, a majority of senior tech-

nology executives view it as transformational or strategic. Figure 3

Heres how mobility is changing these key functional departments.

FINANCE.The raison detre of any finance department resides in

approvals, checks and balances, and auditsactivities that cant

be left to computers and must happen on a timely basis. Mobile

technology enables finance employees to act on their responsibili-ties quickly. So whether its a purchase order approval or a ques-

tion about a regulatory compliance issue, communication via mo-

bile technology keeps the enterprise moving forward. Enabling

such responsiveness is especially crucial during specific, time-

sensitive periods, such as end-of-quarter closings, or during bud-

geting cycles. The faster results are reported, the more accurate

they are and the more reliable the decisions executives can make

using them. That benefits both those in the finance department

and line-of-business managers.

SALES.The same kind of access to up-to-date, accurate informa-

tion benefits salespeople as well. Salespeople can both download

and upload information during the course of their day, providing

near-real-time inventory, orders, and shipping information to cus-

tomers and the entire supply chain.

Further, by using a tablet or a smartphone rather than a laptop,

salespeople are removing a physical barrier between themselves

and their clients that can diminish intimacy. In fact, salespeople can

more easily hand a tablet over to a client to demonstrate a specific

feature of a product or review a bill of materials. The ease of interac-

tion with a tablet adds an air of transparency to the sales process.

HUMAN RESOURCES.As with finance, a significant portion of hu-

man resources responsibilities relate to approvals and workflow:

vacation requests, hiring, interview applications. Increasingly, itscrucial to make an offer to the right applicants quickly to avoid

losing them to another company. Mobile technology helps with

these functions, but its applicability has far greater potential.

Giving employees access to information about their compensa-

tion and benefits reduces the need for human intervention on

the part of HR and lets employees check that information from

home or on the road. Indeed, mobile devices are radically trans-

forming the arranging and rearranging of travelchanging hotel,

rental car, or airline reservations while on the go provides enor-

mous flexibility.

Figure 2

Mobile Apps Already DeployedWHICH OF THE FOLLOWING TYPES OF MOBILE APPLICATIONS ARE

DEPLOYED BY YOUR ORGANIZATION?

Industry specific (unique to your industry process)

Line of business (finance, HR, CRM, field service)

Productivity (approvals, time and expense)

Analytics (dashboards/KPIs)

Business to consumer (loyalty management, social media)

n=140 respondents who are involved in the purchase process for mobile technologyand services


58%

52%

51%

46%

40%


14/15

At the same time, mobile technology, especially tablets, provides

excellent opportunities for learning and training. A recent IDG

Global Solutions survey and report on mobile device use by more

than 20,000 IT professionals, line-of-business managers, and con-

sumers reported that almost half watched work-related video on

their mobile devices. Interestingly, more of them watched more

technology content after hours (68 percent) and on weekends (57

percent) than during business hours (40 percent).

Mobile technology aids HR in managing the interview process

as well as providing quick access to social networking sites such as

LinkedIn and Facebook to identify potential employees. In addi-

tion, mobile HR apps enable talent management by providing ac-

cess to employee profiles and key performance indicator reports.

OPERATIONS. In the age of globalization, supply chains stretch

around the world, and production managers expect to be kept

apprised of significant issues relating to inventory and logistics.

With mobile technology, manufacturing partners can notify ex-

ecutives through alerts, even if its after normal working hours, to

get instructions on how to proceed. This optimizes supply chain

activities so that communication isnt delayed if it takes place at

night or during the weekend.

Mobile technology has become invaluable across industries.Pharmaceutical companies are using mobile to change the way

they share data, capture orders, and track inventory, says Maribel

Lopez, principal analyst of Lopez Research. Up-to-date drug and

compliance information can be pushed to tablets. Salespeople can

view inventory availability, process sales, and record the dispens-

ing of drug samples on a mobile device.

The result is faster receivables turnover, improved regulatory

compliance, and more accurate data collection. But there are

even more potential capabilities for operations, combining inven-

tory information and customer data. Imagine a retailer with excess

inventory at a specific location. The retailer could, via a tablet in

the warehouse, send out a time-and-geography-based coupon to

customers within a specific radius offering deals on that merchan-

dise within the next 24 hours.

SERVICE. Another strategic integration point is mobile unified

communications, which incorporates features such as the abil-

ity to know the availability of employees (presence) and contact

them no matter where they are, using various methods (text mes-

sage, phone call, or email).

Consider the scenario of a company selling highly complex equip-

ment receiving a frantic call from a customer who needs assistance

immediately. The ability to reach a trained engineer in the field,

who has access to detailed engineering drawings and other back-

ground information, can help resolve the issue in real time. Suchservice not only reduces customer downtime and support costs but

also usually strengthens the bond between customer and supplier.

What Will Happen Next?Its almost impossible to measure the ways in which mobile

technologies might continue to affect the enterprise. Consider

the increasing trend of employees bringing their own devices

and the effect on IT budgets and capital expenses. Consider the

ability of manufacturers, such as consumer products compa-

nies, that have traditionally been shut off from their end users

because of their distribution methodsthey can offer coupons

to shoppers at the points of sale.

This is only the beginning. Sales, HR, finance, and service are

just a few of the functional areas that are about to be transformed

by mobile technologies. Virtually all departments across the en-

terprise can benefit by incorporating mobile technologies into

their processes and workflows.

What excites me most about mobility is the ability to inject

context, such as location, time of day, and sensor data into business

processes, notes Lopez. By combining context and real-time ana-

lytics, mobility will truly transform the way we do business. u

By combining context and real-time analytics, mobility willtruly transform the way we do business.

Figure 3

ITs Perception of Mobile TechnologyWHICH OF THE FOLLOWING BEST DESCRIBES THE

PERCEPTION OF SENIOR IT AT YOUR ORGANIZATION

REGARDING MOBILE TECHNOLOGY?

Transformational (a way to change how things are done)

Strategic (a way to get things done while advancing

organizational goals)

Tactical (a way to get things done faster through

productivity improvements)


29%

25%

42%

END NOTE1 http://www.mobilemarketingwatch.com/tablets-to-surpass-laptop-sales-in-2015-one-third-of-us-consumers-will-own-one-12356/


15/15

Enthusiasm for mobile technology in

the workplace is at an all-time high. This

trend began several years ago as eager

consumers brought personal devices

to work, and today it is businesses that

are driving a faster-than-ever pace of

mobile innovation in the enterprise.

Gone are the days when fears of

security risks and unrecoverable IT

effort kept companies from embracing

mobile enterprise apps or limiting

their investment to only email and

calendars. Today, more than 70

percent of senior IT execs say mobility

is transformational, strategic.

To reap the greatest advantage from mobility, organizations

need to reach beyond productivity enhancement. Our

customers are using SAP technology, not just to help employees

do more in their downtime, but also to actually transform

processes, experiences, and transactions at the very heart

of their businesses. These applications improve customer

engagement and create a tight feedback loop that leads to

better decisions in less time. For example, Boston Scientific, a

manufacturer of medical devices, is providing salespeople withvideo- and graphics-enhanced data about their products in the

field, making it possible to give doctors a more accurate and

in-depth understanding of how the products can help them

save lives.

Some of the most startling transformations are happening within

discrete lines of business. Sales, human resources, operations,

and finance are among the internal organizations that are using

mobile devices to make better decisions and create happier

customers, employees, suppliers, and partners.

SAP mobile apps are fueling these transformations within many

leading organizations. We leveraged our decades of experience in

helping lines of business streamline their processes and paired it

with our mobile technology leadership to create dozens of mobile

apps that are changing businesses for the better.

Take SAP Manager Insight, for example: This app, which lets

managers easily surface the individual talents, attributes, and

personnel files of every employee on a mobile device, improves

the efficiency of strategic meetings and helps make sure the

right people are placed in the right roles quickly. Likewise,

finance officers can use SAP EPM Unwired while visiting job sites

to gain critical, real-time insights into issues influencing profits

and losses.

For SAP, the excitement and momentum around mobile technology

has hit a fever pitch, and this is driven by our excitement at seeing

our customers use our mobile apps to transform the effectiveness

of their lines of business.

We invite you to learn more about SAPs mobile app offerings as

well as those from our partner ecosystem by visiting the SAP Store

from here: sap.com/mobile. Youll soon understand why SAPs

mobile apps leadership is a critical driver of mobile transformation

and innovation in a wide variety of businesses.

Sincerely,

Sanjay J. Poonen

President and Corporate Officer,

Global Solutions, SAP

ABOUT SAP




hbr.org

SANJAY J. POONEN

PRESIDENT AND

CORPORATE OFFICER,

GLOBAL SOLUTIONS

SAP

MC175411012
http://sap.com/mobilehttp://sap.com/mobile

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