Digital Transformation Monitor

Mobile and mobility:new opportunities toimprove customerengagementMay 2017

Internal Market,Industry,Entrepreneurshipand SMEs

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Mobile and mobility:new opportunities toimprove customerengagement

Mobile technology and mobility largely adopted in consumers daily life have been brought to the business spheremeeting employees’ requirements to work anytime anywhere from any device in the same conditions as at the office.They drive new ways of working, improving productivity and sales performance. The technologies also givecompanies the opportunity to improve their customer relationship by increasing their interactions.

Mobile technology covers a broad scopeand refers to the use of mobile devices ina mobility situation. Typically, mobiledevices refer to smartphones, tablets,laptops and wearables, and supportdifferent forms of communicationthrough the use of websites andapplications specifically designed formobile devices. Mobility now is about theability to access and to use informationand communications services no matterthe physical location – at home,commuting, or at a customer’s office.

The undeniable increase of interest andthe strong adoption of mobile andmobility by consumers in their privatelifes’ have naturally led to the use ofthose mobile technologies in thecorporate sphere.

Mobility allowing for new ways ofworking

Mobility is seen as a disruptivetechnology for business purposes as itallows new ways of working in anATAWAD (Anytime Anywhere AnyDevice) environment thanks to thecombination of the availability of highspeed wireless networks as well as thedevelopment of cloud computing andfeatured devices.

Mobile technology meets withemployees’ requirements to work awayfrom the desk office while having accessto internal resources.

Mobileconsumerisationserving business

1

Source: IDATE

Corporate applications can be used from anywhere

Being able to connect to the company’sinternal system while outside the officeallows employees to be more efficientand more productive as they can reachand provide corporate informationinstantaneously from anywhere in asecure environment.

Adapting to mobile technologies isbecoming crucial for businesses

Consumers increasingly pushing ITdepartment’s into supporting consumertools in the business environment, ITdepartments are being faced with anincreasing number of challengesregarding the number of devices tomanage and differing IT systems. At thesame time, this push is being furtherinfluenced by the acceptance of BYOD(Bring Your Own Device) in someenterprises which contributes to theevolution of the entreprise’s mobilitystrategy.

Mobile platforms are thus being adaptedto support corporate requirements.Some mobile platforms includecapabilities such as VPN (Virtual Private

Organisations will invest over

in mobile technologies

EUR 1.1 trillion by2019

Source: IDC3

Networks), Mobile Device Management(MDM) and all support for corporateapplications.

The uptake of mobile technology inthe business space

Increasing interest for tablets

The penetration of mobile devices in thebusiness environment has beenincreasing. According to IDC1, more thanhalf of all European companies hadadopted more than one mobile device onaverage in 2012. The use of tablets inbusiness has also increased as they havebeen optimized for business functionsand applications. A IDC Europeanmulticlient study2 found that for 40% ofrespondents, tablets are the onlybusiness devices used for employees andthat this share is expected to increase.

© LD Prod/Shutterstock.com

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Source: Mobility Index Report released by Good Technology

Enterprises are developing custom applications designed for mobile devices

Source: mobientech4

Employee productivity and sales revenus as leading drivers

Mobile and mobility: new opportunities to improve customer engagement

Specific applications to increaseemployee productivity and customerengagement

Basic applications to check corporatemessages and access the Internet werethe first main applications on mobiledevices. With an established approach ofmobile and mobility, companies arefocusing on other applications impactingbusiness performance. Customerbusiness applications are especiallydesigned to mobilise key processesaimed at improving employeeproductivity, accelerate the process andincrease customer engagement.

Mobility benefits for employees andcustomers

Improving employee productivity

Many companies expect to perceiveimportant gains when introducing themobility concept into their business.Process efficiency and employeeproductivity are expected to increasethanks to employees’ access to real timeinformation and accurate data. Mobilityallows employees to be linked to theoffice network when being out of officein order to access customer databases oraccounting systems.

Simultaneously the elimination ofmanual processes (eg. writing reports)helps in increasing productivity whileminimizing human error and reducingpaper consumption. Mobility also leadsto greater work flexibility which favoursemployees’ work-life balance

Improving employee efficiency in thesupply chain

When coming to production and thesupply chain, mobility and mobileapplications are seen as crucial as theyallow employees to access assetinformation in real-time no matterwhere they are. As part of day to dayoperations, mobility also drives the moveaway from paper-based processes to ITtools.

Typically, the combination of mobiledevices combined with sensors orbarcoding can help in asset andinventory management reducing thepossibility of mistakes as well as the imeeffort needed to complete an accuratestock status.

According to a Motorola report,enterprise mobility solutions canincrease inventory turns by 15% andemployee productivity by 25%. Mobiledevices allow for the easy updating ofinventorits as a real-time view of the

inventory can be captured so thatcompanies know in real time where theirproducts are.

Mobility can also improve collaborationbetween supply chain players, allowingfor a quick exchange of relevantinformation between the variousstakeholders in the process and thusallowing for a smooth work flow, real-time access to data and accuratemonitoring.

Improving customer engagement

The use of mobile systems increasesbusinesses’ interaction with the finalclient providing them with a better levelof customer service, reducing their timeof service delivery and improving theirdegree of personalisation.

Indeed, mobile applications can helpbusinesses deliver an innovativeexperience to their customers. Whenobserving consumers behavior, theirsmartphones are often their closestchannel of incluence. Is its thusbecoming necessary for enterprises todevelop mobile applications and mobilewebsites in order to interact withcustomers. Push notifications, emails orSMS rank among the top customerengagement forms offered by mobile andmobility technologies.

The downsides of the mobility trend

Security and privacy remain majorconcerns for customers and employees

Many are worried that companies mightget access to customers’ or employees’private information, thus violating theirprivacy. This concern is becomingincreasingly central with the growingBYOD trend which mixes personal andcorporate information. Some informationmight simply be considered too personalfor consumers to want to share it (eg.information relating to one’s healthcare).

50%

time reduction to draft contractsusing mobile custom apps

Source: Verisure by Securitas Direct

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Source: HP

Customers can interact with all automotive ecosystem stakeholders

Mobile and mobility: new opportunities to improve customer engagement

Companies need to provide a bettercustomer experience to increase value totheir clients by offering moreinformation and services as well as fasterprocesses5.

Changingcustomerinteraction

Business opportunities - sales

Investment in mobile technology –crucial to increasing sales

Mobile technology has become a newway to interact with customers assmartphones and tablets become theirpreferred communication channels.Indeed, as customers change theirbehaviour with the development ofdigital technology, there is a clearopportunity for enterprises tostrengthen the relationship with theircustomers through mobile applications.In order to do so effectively, enterprisesneed to invest in applications andwebsites designed for mobile devices.

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Mobile applications could be developedto:• share corporate information and

companies’ solutions,• sell companies’ products,• Provide access to the customer

service support, etc.

As illustrated in the figure above, theautomotive industry provides a myriadof mobile applications aimed atinteracting with the customer regardingthe vehicle production, sales,maintenance, insurance and evenentertainment.

In the retail sector as well the use ofmobile technology to interact withconsumers is becoming critical forconventional players to provide an omni-channel offer and thus increase theirsales.

Employees might require some training

While companies implement mobile andmobility in order to improve employees’productivity some may requireadditional IT training in order topromote the effective use of mobiledevices. Especially SMEs might find thattheir employees lack the necessary ITskills to easily implement mobilitysolutions.

Mobile technologies adapted to theneeds of sales representatives

Mobile devices are especially useful tosales representatives as they providethem with greater flexibility and allowthem to save time as well as costs relatedto their business activity.

Salespeople spend most of their timeoutside the office on the road.Smartphones allow them to easily checktheir messages, find their way, accesstheir schedule and check customer data.Tablets on the other hand are veryconvenient to present services orproducts to customers, and tosimultaneously check the inventory.

Applications Examples

Pricecomparison

Leclerc Qui est le moinscher ?

ShopSavvy

Prixing

GeoCompareCouponing Walmart Scan & Go

Shopmium

SnipSnapLoyaltyprogrammes

Tesco Clubcard

Carrefour

Passbook

FidMe

FidAll

Shoppinglist

TargetList

Indoortracking

Price Chopper

Schnucks

WinCo

Mobile apps in retail

Source: TLT Retail Growth Strategies Survey

Mobile sites, key investment priorities for retailers

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Source: disruptivedigital6

Mobile and mobility: new opportunities to improve customer engagement

Improving sales performance

With the increased use of mobiletechnologies by companies, businesseshave to adapt their CustomerRelationship Management (CRM). Assales people gain access to keyinformation anywhere and at any time,they can increase their salesperformance by accessing productinformation and availability quickly, aswell as by keeping track of orders,updating sales information, and verifyingclient details.

An innovative store can providebusinesses with a high degree of servicepersonalisation for customers. A digitalshowroom initiative has been launchedby Audi, for example, displaying fourmodels and providing customers withthe option to personalise their car in amillion different ways throughapplications interacting between tablets,video walls and tablet surfaces. This newapproach has increased the company’ssale of new cars by 60% to 70%.

been developed providing technical andnavigation information as well asinfotainment in order to providecustomers with relevant services. Opel isone of the automakers supplying such awide range of applications with itsMyOpel app, a mobile assistant appincluding an interactive manual,maintenance service reminders,emergency procedure descriptions,connections to social network, as well asapplications dedicated to the monitoringof the driving performance, energyconsumption and battery usage.

In the healthcare industry, where mobiledevices have also a strong influence onthe relationship between the doctor andthe patient, smartphones and tablets canbe used as interfaces for healthcaremonitoring of different indicators relatedto chronic diseases. Patients increasinglymay become active participants or evenapprentices in their own health.

Customer purchase behaviour analysis

The multiplication of communicationchannels has significantly expanded thecompany’s interaction with thecustomer. This greater connectivityprovides businesses with a better

1https://ec.europa.eu/growth/tools-databases/.../mobility_v1.1.pdf2

https://www.idc.com/getdoc.jsp?containerId=prUK257190153https://www.idc.com/getdoc.jsp?containerId=prUS259436154http://www.gennet.com/sharepoint-2/impact-mobile-technologies-ecm/5http://www.orange-business.com/files/media/ppobs-commercial-2016-en-v3_0.pdf6https://disruptivedigital.wordpress.com/2015/05/19/mobilefirst-marketing-automation-is-hot/

References

Tablets and sales persons

Source: Orange Business Services

Customer satisfaction due to higherinteraction

Mobility not only increases the visibilityof industries through corporateapplications, but it also creates manynew opportunities for companies toimprove customer satisfaction.

In the automotive industry for example,many mobile apps have

analysis of customer purchasebehaviour, information crucial tocompanies’ sustainability. Thisinformation allows businesses to adapttheir offerings to their customers’ needsand gives them the opportunity to beproactive. In the retail industry forexample, geo-fencing is the keytechnology for customer interactiveservices. The concept relies on the use ofmobile applications that trigger an alertwhen the customer passes through anarea. The detection of a customer’spresence can be used by a retailer topush advertisements and discountswhile tracking their habits.

Path to purchase scenario has evolved around mobile devices

About the Digital Transformation MonitorThe Digital Transformation Monitor aims to foster the knowledge base on the state of play and evolution of digital transformation inEurope. The site provides a monitoring mechanism to examine key trends in digital transformation. It offers a unique insight intostatistics and initiatives to support digital transformation, as well as reports on key industrial and technological opportunities,challenges and policy initiatives related to digital transformation.

Web page: https://ec.europa.eu/growth/tools-databases/dem/

This report was prepared for the European Commission, Directorate-General Internal Market, Industry, Entrepreneurship and SMEs;Directorate F: Innovation and Advanced Manufacturing; Unit F/3 KETs, Digital Manufacturing and Interoperability by the consortiumcomposed of PwC, CARSA, IDATE and ESN, under the contract Digital Entrepreneurship Monitor (EASME/COSME/2014/004)

Authors: Vincent Bonneau, IDATE and Laurent Probst, Bertrand Pedersen & Jill Wenger, PwC

DISCLAIMER – The information and views set out in this publication are those of the author(s) and should not be considered as theofficial opinions or statements of the European Commission. The Commission does not guarantee the accuracy of the data included inthis publication. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use whichmight be made of the information contained in this publication. © 2017 – European Union. All rights reserved.