The Financial Impact of BYOD Full Presentation

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The Financial Impact of BYOD A Model of BYOD’s Benefits to Global Companies May 2013

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IBSG Horizons BYOD Study Waves: Global State of BYOD and Its Implications

Current Wave

•  September 2012 •  4,892 IT leaders •  Midsize + enterprise •  8 countries + U.S.

(original survey + 312 midsize)

IBSG Horizons:

BYOD Global Trends

• May 2013 •  Financial impact of

BYOD on companies • Maximizing ROI of

BYOD •  6 countries

IBSG Horizons:

BYOD Financial Impact

•  June 2012 •  600 IT leaders •  U.S. enterprises

IBSG Horizons:

BYOD U.S. Trends

Source: Cisco IBSG, 2013

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Financial Model

Primary Research

IBSG Horizons BYOD Financial Impact: Assessment of Typical Firm

BYOD Financial Impact

Cisco’s BYOD

Experience

Extensive Literature Review

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Overview of Primary Research Scope

2,415 18 Mobile Users Industries


  Exploration of BYOD benefits from the perspective of mobile users: white-collar employees who use a smartphone, tablet, or laptop for work at least sometimes

  400 surveys in each country: U.S., U.K., Germany, India, China, Brazil   73% enterprise (1,000+ employees), 27% midsize (500-999

employees)   29% executives, 71% knowledge workers (47% midlevel managers

and professionals, 24% other individual contributors)

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Horizons Cisco IBSG

BYOD Devices To Double by 2016

405 Million

Total expected number of BYOD devices in all 6 countries by 2016, growing from 198 million in 2013

105% Total growth in number of BYOD devices (27% CAGR), 2013-2016

1.3 BYOD devices per mobile employee by 2016 (1.2 today).

Sources: EIU, 2013; Strategy Analytics, 2012; Cisco IBSG, 2013

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63 71

32 12 11 8

166

108

76

25 18 12

China U.S. India Brazil Germany U.K. 0

25

50

75

100

125

150

175

2013 2016

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Strong BYOD Growth Everywhere, but China, U.S., India Are Biggest Markets

Sources: EIU, Strategy Analytics, Cisco IBSG, 2013

Estimated BYOD Devices in Global Workplaces, 2013-2016 (in Millions)

CAGR 38% 15% 33% 25% 18% 15%

Millions

6-Country Total: •  198 million BYOD devices (2013) •  405 million BYOD devices (2016) •  105% growth (27% CAGR)

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Horizons Cisco IBSG

Employees Are Bringing Multiple Devices, and Paying To Do So

1.7 Average number of personally owned devices used by each surveyed BYOD employee

$965 Average out-of-pocket spending per BYOD employee on personal mobile devices used for work

Source: Cisco IBSG, 2013 N=1,679 BYOD respondents

$734 Average annual data plan spending for BYOD employees who use the plan at least partially for work

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BYOD Devices: Smartphone Leads, but Tablets Are Closing the Gap


Average # of BYOD Devices

N=1,679 BYOD respondents

Percentage of BYOD Employees Bringing Mobile Devices to Work

1.7 1.8 1.6 1.7 1.7 1.8 1.8

37% 40% 33%

41% 32% 34%

43%

81% 81% 72%

82% 82% 90%

79%

56% 60% 54%

49% 53% 59% 61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

Total U.S. U.K. Germany India China Brazil

Laptop Smartphone Tablet

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N=1,658 BYOD respondents who knew their device spend; N=1,620 BYOD respondents who knew their data plan spend

Recognizing the Value: Employees Are Paying To “BYOD”


$965

$809 $901

$972

$823

$1,172 $1,099

$734

$1,234

$770

$909

$346 $447

$752

0

200

400

600

800

1000

1200

1400


Device spend (total) Data plan spend (per year)

Average Out-of-Pocket Spending to Date per BYOD User on Devices, Yearly Spend on Data Plans (USD)

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Why They BYOD: Efficiency, Flexibility, and Initiative

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#2 Want to combine work and personal activities or access personal applications

#3 Need device for work, but company does not provide it

#1 Can get more done with my own device


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45%

47%

25%

24%

22%

19%

13%

56%

46%

23%

23%

22%

18%

14%

46%

44%

29%

26%

22%

20%

14%

N=624 laptop BYODers

BYOD Devices Allow Employees To Do More, Merge Work and Personal Tasks


Reasons BYOD Employees Bring Their Own Devices (Percentage of Respondents)

N=1,361 smartphone BYODers N=943 tablet BYODers

Get more work done on own device

Combine work and personal lives

Need it, but it is not provided

Prefer the interface / OS

Want to avoid restrictions / scrutiny

Corporate devices lack functionality

Company provides device, but want to use my own


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BYOD Makes Employees More Productive and Innovative

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81 Minutes per week saved in U.S.— highest of all countries surveyed (37-minute average)

53% Have raised work productivity through innovative work practices enabled by their devices

36% Save at least two hours per week by using personal mobile devices at work


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BYOD Enables Efficiency and Innovation, but Gains Are Uneven Across Countries

Net employee time gained per week: 37 minutes


37 min. 81 min. 51 min. 4 min. 35 min. 17 min. 34 min.

23 25 24

12

23 24 29

17 16 14

4

17 19

28

8

23

15

1 1 3 7 5

9 3 1 1

5 9

3

14

4

-2

8 2

-9 -6

2 0

-3 -5

-13 -14 -13 -8 -9 -10 -11

-23

-16

-30

-20

-10

0

10

20

30

40


Improved efficiency New ways of working Additional availability Better collaboration

Reduced administration Downtime More distractions

Min

utes

per

wee

k

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Horizons Cisco IBSG

Only 30% of Mobile Users Prefer Corporate Devices

60% Use a corporate device because they must**

30% Would prefer to work in a corporate-provisioned environment*

Source: Cisco IBSG, 2013 *N = 2,415 respondents; **N = 736 corporate users

51% Use a corporate device for better network access **

$2,200 Value placed on having a workplace with a preferred mobile policy

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Strong Preference for BYOD in Most Places, Especially in Asia


Percentage of Respondents

49% 44%

41%

32%

63% 66%

46%

30% 32% 32% 37%

28%

16%

38%

21% 24%

27% 31%

10%

18% 16%

0%

10%

20%

30%

40%

50%

60%

70%


Prefer BYOD Prefer corporate provisioning No preference

N=2,415 all respondents

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41%

35%

34%

31%

30%

19%

19%

16%

Company requires company-issued devices

Better access to company network

Better access to IT support

Better access to company applications

Better access to company collaboration tools

Cheaper to use company device

Better, faster device than I would get on my own

Allowed to use company device for personal use

34%

33%

34%

38%

31%

23%

26%

15%

40%

28%

31%

27%

26%

29%

20%

18%

Why Employees Use Company-Issued Devices Instead of Their Own


Percentage of Corporate Employees Who Use One or More Company-Issued Devices for the Following Reasons

N=707 corporate laptop users

N=628 corporate smartphone users

N=440 corporate tablet users


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Executives Are Driving Most of Current BYOD Productivity Gains


3X Factor by which the average BYOD executive’s productivity gain exceeds that of the average knowledge worker (76 vs. 23 minutes)

61% Executives with access to corporate mobile apps, compared with 41% of BYOD knowledge workers

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Executive BYOD Productivity Gains Are Three Times Those of Knowledge Workers

Productivity Gains for BYOD Executives and Knowledge Workers, in Minutes per Week


76

99 84

62

18

101 82

23

73

33

-18

37

2 16

-40 -20

0 20 40 60 80

100 120


Executives Knowledge workers

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IT Is Provisioning Executives; Provisioning of Knowledge Workers Is Less Frequent

73%

65%

72%

62%

61%

43%

65%

50%

61%

50%

41%

32%

Corporate email and calendering

Corporate collaboration applications

Corporate office productivity applications

Corporate security applications

Company-specific mobile "apps"

Applications I bring to work

Executive Knowledge worker

Applications Permitted on Employee-Owned Devices

Source: Cisco IBSG, 2013 N=2,415 respondents

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Reactive, Not Strategic: Most Companies Have Implemented BYOD on Ad-Hoc Basis

Reactive Strategic   Basic BYOD

enabled “as demanded”

  Policies of pushback and containment

  Partial productivity gains

  Comprehensive BYOD viewed as strategic advantage

  Employees informed and encouraged to work their way

  Fuller productivity gains

vs.


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Horizons Cisco IBSG

Getting Strategic: The “Comprehensive BYOD” Concept


Comprehensive BYOD includes:   Ability to monitor and remotely “wipe” corporate data   Automatic enforcement of corporate access and usage policies   Dual persona and device configuration   Ability to move between networks seamlessly and securely   Ability for users to log in using multiple devices simultaneously   Corporate collaboration tools that work on all end-user devices   Simple and user-friendly authentication for all device types

and brands   Secure access to corporate network through wired, Wi-Fi,

remote, and mobile means

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Nearly Three-Quarters of BYOD Respondents Have Only Basic BYOD

74% 61%

77% 75% 72% 74% 83%

26% 39%

23% 25% 28% 26% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Basic BYOD Comprehensive BYOD

N=1,679 BYOD respondents

Percentage of Respondents Who Have Basic and Comprehensive BYOD


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For Many, BYOD Is Harder than Expected, but Leaders Are Seeing Cost Benefits

Source: Cisco IBSG, 2013 N=135 IT decision makers, U.S. firms only.

0

5

10

15

20

25

30

35

TCO Savings IT Leaders Expect, by BYOD Maturity Level

1-2 3-5 6-8

Perc

ent s

avin

gs o

n TC

O

BYOD maturity level (# of capabilities)

High hopes

Reality check Operational efficiency

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Overview of Financial Model and Analysis

Survey Results

Financial Analysis

Company Has Basic BYOD

Company Has Comprehensive BYOD

Company Has No BYOD

Survey •  29% executives •  71% knowledge workers •  70% BYOD •  30% non-BYOD

Typical Enterprise •  10,000 employees •  5% executives •  50% knowledge workers •  45% other

18% of respondents

12% of respondents

70% of respondents

Key Metric: Annual value created per mobile employee

(= value per BYOD user x BYOD adoption among mobile employees)


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$350

$1,650

Basic BYOD Comprehensive BYOD

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Room for Improvement: Typical BYOD Implementation Only 21% Along “Value Journey”


$1,300 still on the table

Annual Value per Mobile Employee Derived from Basic and Comprehensive BYOD Programs

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Comprehensive Improvement: Big Gains, No Matter What the Starting Point


Annual Value per Mobile Employee Derived from Basic and Comprehensive BYOD Programs

350

950

400 0

400 100 300

1,650

3,150

2,250

950 1,050 900

1,600

0%

20%

40%

60%

80%

100%

AVERAGE U.S. U.K. Germany India China Brazil 0

500

1,000

1,500

2,000

2,500

3,000

3,500

Value per mobile employee of "Basic BYOD" Value per mobile employee of "Comprehensive BYOD" Progress along the value journey (value of Basic BYOD / value of Comprehensive BYOD)

Progress along the

value journey U.S. $

Note: Numbers have been rounded to the nearest $50.

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Migrating to Comprehensive BYOD: Where the Gains Are


$1,300 of Annual Value per Mobile Employee

Impact of Moving from Basic to Comprehensive BYOD

0 200 400 600 800

1,000 1,200 1,400 1,600 1,800 2,000

Basic BYOD Corporate Migrations

Current BYODers

New Users* Cost Savings Investments Comprehensive BYOD

$ / m

obile

em

ploy

ee /

year

Start and end states Positive impact Negative impact

*“New Users” refers to non-mobile employees going mobile for the first time due to BYOD

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Migrating to a Comprehensive BYOD Strategy Yields Significant Gains


$ / m

obile

em

ploy

ee /

year

359

943

392 425 125 277

111

127

111

129

88

100 113

204

407

388

167

70

38 151

115

175

206

96

49

54

109

970

1,605

1,226

690 544

709

1,048

$1,656

$3,156

$2,219

$956 $1,189

$925

$1,588

AVERAGE U.S. U.K. Germany India China Brazil

-86

6

-100 -110

Impact of Moving from Basic to Comprehensive BYOD

-103 -101 -104 -119

Comprehensive BYOD Current BYOD users New users

Corporate migrations Cost Savings

Basic BYOD Investments

Note: Exact figures. In other slides, value of BYOD is rounded to the nearest $50.

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37%

19%

26%

4% 14%

Typical Cost Distribution of Upgrade to Comprehensive BYOD

Policy & Security:

Support & Training

Comprehensive Investment Portfolio: Software, Operations, and Policy/Security

Actual investments needed will vary according to current network capabilities


Software:

Telecoms:

Network & Operations:

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Comprehensive BYOD Pays for Itself, Apart from Productivity Improvements

50 52 51 61 40 45 53

45 57

46

54

32 39

44

16

17

14

14

16 17

16

103

101

104 119

86 100

110

8 26

7 9 2 1 2 0

20

40

60

80

100

120

140


US

$ /

mob

ile e

mpl

oyee

/ ye

ar

Hard Cost Savings and Investments from Basic to Comprehensive BYOD

Hardware / software cost saving Support cost saving Net direct benefits

Telecoms cost saving Costs

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22% 15% 22% 24% 20% 28% 23%

13% 12%

14% 7% 15% 11% 19%

13% 13%

12% 10%

13% 11% 19% 8%

7% 1%

4%

14% 11% 8% 13%

14% 14% 16%

11% 11% 10% 17%

17% 19% 17%

17% 16% 18%

14% 22% 18% 22%

9% 12% 3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

Sha

re o

f tot

al C

ompr

ehen

sive

BY

OD

ben

efits

Productivity Value Realized as Companies Move from Basic to Comprehensive BYOD

New ways of working

Collaboration

Efficiency

Distractions

Administration

Downtime

Availability

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Developed Economies and Emerging Markets Benefit in Different Ways


Innovation benefits

Reduced barriers to productivity

While “new ways of working” plays a big role in the U.S., U.K., and Germany, the most value for Emerging Markets comes from more basic benefits

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Horizons Cisco IBSG

88% Percentage of productivity gains that will come from knowledge workers in a typical firm

90 Minutes of expected productivity gain per week by knowledge workers by moving from Basic to Comprehensive BYOD, versus 41 for executives

Knowledge Workers Gain Most from Comprehensive BYOD


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Comprehensive BYOD: Improved Efficiency, Innovation, Availability


Min

utes

/ w

eek

18

108

59

184

23

115

-24

62 51

119

-6

79

4

89

-100

-50

0

50

100

150

200

Basic Comp. Basic Comp. Basic Comp. Basic Comp. Basic Comp. Basic Comp. Basic Comp.


Productivity Impact Sources for Knowledge Workers in Basic and Comprehensive BYOD

Efficiency New ways of working Availability Collaboration Administration Downtime Distractions Total

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“BYO-Laptop” Needs To Be Core Part of Comprehensive BYOD Strategy

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37% Percentage of BYOD employees who bring their own laptop


$750 Expected annual value per employee from “BYO-laptop” component of Comprehensive BYOD strategy

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750

1,350 1,100

250 650

350 700

1,650

3,150

2,250

950 1,050 900

1,600

0

500

1000

1500

2000

2500

3000

3500


Value of BYO-Laptop in Comprehensive BYOD

BYO-Laptop Value (None Comprehensive BYOD) Total Comprehensive BYOD Value

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“BYO-Laptop” Is Important Component of BYOD Strategy Globally

US

$ /

empl

oyee

/ ye

ar


Horizons Cisco IBSG


IBSG Horizons “Economics of BYOD” Study: Top Findings

  Employees are just getting started bringing their own devices to work. By 2016, nearly a half-billion BYOD devices will be in use in across the six countries surveyed.

  Less than one-third of respondents prefer corporate devices. Forty-nine percent chose a fully self-provisioned work environment.

  Mobile users are willing to invest in BYOD. BYOD users have spent an average of $965 on BYOD devices, plus $734 annually on voice and data plans used at least in part for work.

  BYOD is delivering productivity gains around the world. Even with the limitations of current BYOD deployments, employees save an average of 37 minutes per week of productive work time—but gains are uneven across countries.

  Most companies have been reactive, rather than strategic, in enabling BYOD, reacting to employee demands with a patchwork of BYOD.


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IBSG Horizons “Economics of BYOD” Study: Top Findings   Companies can gain an additional $1,300 annually per mobile user as they

move from Basic to Comprehensive BYOD.

  Moving from Basic to Comprehensive BYOD sparks employee-led innovation in developed countries, and reduces productivity losses in emerging markets.

  Comprehensive BYOD pays for itself. Hard-cost savings are posted in hardware, service, and telecom.

  More choice, better network access could convert corporate device users to BYOD. 36% of corporate device users would rather BYOD. The top reasons corporate users do not BYOD already is that they are not permitted to do so (51%) and because of limited network access and support for BYOD devices (49%).

  “BYO-Laptop” should be a core part of a Comprehensive BYOD strategy. IBSG estimates that laptops contribute nearly half of the estimated $1,650 of potential value per mobile user.


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Call to Action


Develop a strategic, comprehensive BYOD approach

Encourage experimentation and best-practice sharing

Employee empowerment requires high information security

Develop new policies and approaches (cloud, virtualization)

Secure an executive sponsor from outside the IT organization

BYOD is all about productivity gains and the future of work

BYOD suggests that technology adoption can be reimagined

Basic BYOD is just the beginning of the real opportunity

BYOD can enable hard-cost savings

Use BYOD as a trigger to rethink entitlement, support approaches

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For More Information…

Jeff Loucks [email protected]

Richard Medcalf [email protected]

Lauren Buckalew [email protected]

Fabio Faria [email protected]

…Contact Cisco’s Internet Business Solutions Group

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The Financial Impact of BYOD Full Presentation