Implementing mobile enterprise solutions intelligently

Implementing mobile enterprise solutions intelligently

Guidelines for capitalizing on the opportunities of mobility in business processes while minimizing associated risks Mobile solutions supporting critical business processes are a key differentiating factor in today s competitive environment. A survey conducted by TeliaSonera and Nokia shows that enterprises in the Nordic region are forerunners in the adoption of mobile enterprise solutions. This survey performed from August September 2005 states that 14% of business users in Sweden have mobile email and over 50% of business users are expecting to get mobile email within the next 12 months. The corresponding figure of mobile email penetration for business users globally is approximately 2%. The supply of mobile enterprise solutions has exploded over the past years. Responsible managers are overwhelmed with their choices for mobile extensions to email, CRM, ERP and other systems offered by a wide variety of players like operators, device manufacturers, IT integrators and software houses. Many of the available services and applications can bring considerable benefits to their users; however, it is not obvious how to integrate the mobile solutions smoothly with existing business processes. Business processes can also be changed to increase efficiency when adding mobility. The challenges of deploying mobile enterprise solutions are largely non-technical. Based on many years of hands-on experience in business consulting, the authors conclude that only carefully planned and focused projects lead to successful solutions. Managing mobile implementation projects requires a mix of competencies ranging from knowledge of mobile technologies and corporate IT systems to specific business processes and organizational aspects. Technology is the enabler but the key to success lies in finding the right technologies to improve business processes and implementing these technologies effectively. 2

Utility sector moving into M2M Remote meter reading using M2M (Machine to Machine) solutions is becoming a key component enabling cost reductions in many areas such as electric power, gas, and water. The cost of reading electricity meters in the EU is estimated at 2.5 5 billion annually. The exact cost is difficult to assess since there are hidden costs related to the practice although it is clear that remote metering can reduce costs. The regulatory framework in a country can also accelerate the adoption of remote meter reading solutions. The deregulation of the electricity market in European countries forces power companies to increase the frequency of meter readings, increasing the cost of traditional meter inspection personnel. The more efficient alternative is to deploy remote reading with M2M solutions. Case Vattenfall The leading Nordic energy utility company Vattenfall is currently installing automatic remote readers at customer premises allowing nearly real-time electricity metering. The goal is to install the system for all of the 360 000 customers in Finland by the end of October 2006. Deployment has also started in Sweden. Automated meter readings remove the need for the current complex system of invoicing for estimated usage. It will also be possible to create entirely new electricity services. The benefits to Vattenfall are: Quicker service to customers Accurate data on transmission losses Accurate data concerning power cuts in the distribution network Enables creation of entirely new electricity services Accurate information provides better conditions for competition in electricity sales, since exact consumption information can be used instead of estimates. The electricity usage can measured accurately even for private customers. The operating costs incurred by the new system will be lower than the cost of current methods. The challenges of deploying mobile enterprise solutions are largely non-technical.

What are the benefits of mobile enterprise solutions? Mobility and mobile technologies are tools for supporting business processes and should used to give a competitive advantage. Deployment of new technology requires a clear business justification. The primary reason for mobile solutions is to get a positive effect on the cash flow. There are of course soft values, such as employee satisfaction and branding that may also influence an investment decision. Examples of benefits from mobility: Reduced costs. Increased productivity. Increased revenue. Differentiated company. Improved communications. Improved customer satisfaction. Improved data quality. Increased employee retention. The same solution may have different benefits for different companies. One company may emphasize cost reductions and another can focus on improved productivity when introducing the same mobile solution. One aspect of mobile enterprise solutions is how they integrate with the core business processes. Horizontal solutions integrate less; en example is mobile office enabling remote access to desktop applications such as Microsoft Exchange. Mobile Office solutions normally support real-time access to email, calendars, contact information. This type of solution is quite similar wherever they are deployed. As the TeliaSonera survey shows these solutions are being deployed heavily in the Nordic region. The number of solutions is vast but the implementation can still be challenging. The benefits can be hard to evaluate and quantify since they are not targeted at core business processes. 4

Vertical solutions on the other hand are highly customized and integrated with critical business processes. An area of growing interest is Mobile Resource Management (MRM), solutions integrating wireless communications; location technologies, software applications, transaction processing and the Internet to help companies better manage mobile resources. Vertical solutions are generally more complex than a horizontal solution. There is a need to integrate between different information architectures as well adapting the solution to the characteristics of mobility with lower bandwidth and a limited form factor of mobile devices. The benefits of successful vertical solutions are high and can be measured in quantitative terms of cost reductions, improved productivity and increased revenues (see case Vattenfall). The awareness for vertical solutions is growing but few companies have the competence to make a professional business assessment of vertical solutions and implement them. Case OMX In 2003 OMX redesigned its telecom solutions while moving into new office premises. OMX is a company that develops integrated marketplace solutions and operates several large securities markets. To OMX mobile communication is very important for the creative environment when developing solutions as well for efficient 24/7 support services to its customers. OMX chose a mobile PBX system specifically designed to provide a complete mobile voice communication solution inside and outside the office premises at a reasonable cost. A design criteria was that the solution should be independent of the telecom service provider. The solution for voice mobility was tailored to suit the specific needs of OMX. It was an upgrade of the old PBX infrastructure, to a new generation supporting IP-connectivity, mobile extensions, as well as analogue, digital and soft phones. The inbuilding solution uses 80 in-building antennas. To enable multiple operator access to the antennas OMX bought an OAS (Open Antenna System) on top of the antenna system. It is a one-number mobile system, routing all outgoing calls including mobile, landline and international calls via the company PBX. All the incoming calls are also routed through the PBX and thus the only caller-id used is the fixed line extension. Even for this mobile voice project, education of the users was a non trivial task e.g. it had to be planned for. Users did not understand that internal call transfer could be done on the mobile phone for example. The VP of Facility Management at OMX states that We now have a 1.5M SEK lower monthly operational expenditure compared to the old system. The organization is very happy with the functionality of the solution and with the new mobile working environment. OMX is a company that owns and operates the largest integrated securities market in Northern Europe and is a leading provider of marketplace services and solutions for the financial and energy markets. OMX employs 1600 people in 11 countries world-wide, while majority of staff (1100) is located in Sweden Stockholm. Over 600 people are working in technology & software development.

Challenges with mobile enterprise solutions The challenges when deploying mobile enterprise solutions are often non-technical. Innovative technology and viable ideas for capitalizing on mobility are vital, but not sufficient alone. Carefully planned and wellexecuted implementation projects are at least as important for the success of a solution. Mobile technology implementation projects are accompanied with the similar challenges as any IT project as well as some challenges particular to mobile technologies. Cost dynamics of mobile solutions The cost dynamics of a wireless solution can be very different from solutions based on fixed line access. Usage can be a much more significant cost driver for example. The cost of mobile devices and maintenance of them also need to be taken carefully in to consideration when modeling the costs of the solution. Conditions of usage are very different in a field force management solution for the utility sector compared to a sales support system for the retail industry. Leveraging existing infrastructure WLAN case The enabling technologies and solutions necessary for successful deployment of mobile enterprise services are available today. Some technologies are already deployed without realizing how they can be used for mobile solutions. An example is WLAN; a majority of the companies in the Nordic region have installed WLAN networks in their offices. A WLAN network could be used to reduce telecom costs. A mobile VoIP solution for telephony could be deployed over WLAN to enhance functionality and reduce costs. Fast developing technology Because of the early stages of the market for mobile enterprise solutions the market is very fragmented. There are many suppliers of components for the solution like devices, access and software but there very few suppliers of turnkey solutions. The lack of common software platforms and fast development of technology and standards is a challenge for 6

many enterprises. A company implementing a mobile solution have to make sure that lifecycle of the chosen solution corresponds to the business cycle of the company. To manage this challenge a project should select technology based on proven and open standards allowing smooth upgrades. Identifying the business case Another challenge is to identify and specify the business case for investing in mobile technologies. The most beneficial opportunities are often found in solutions tailored to support critical business processes. These customized solutions need to be carefully modeled with several aspect in mind to quantify the benefits of the solution. The evaluation has to consider aspects of the solution like the impact on business processes and the cost of integration in existing IT infrastructure. Work process changes have to be sold to the affected employees highlighting the benefits for them. Internal handson education of the new work processes may also be necessary. It is easy to underestimate the effort involved in overcoming organizational resistance to changes in every day tasks. It is essential that this is planned and communicated to the employees prior to launch. Multinational operations Large successful companies are in most cases active in several nations and the maximum benefits of a mobile solution are seen when it is implemented across the whole company. The fragmented market then becomes a more prominent barrier. Several access suppliers have to be managed and in some cases several access technologies as well. The cost dynamics of the solution can also be different depending on the country of deployment. Different types of mobile email solutions Main features Compatibility Push Pull Browser Typically an Always On access to PIM-server providing automatic email, calendar and contacts synchronisation (push) to and from the mobile device Smart phones and some of the latest Java capable phones A remote access to email. Emails downloaded (pulled) into the device manually or scheduled depending on device capabilities Smart phones and some legacy phones with embedded email capabilities A browser based connection to email Any mobile phone with a mobile browser Service provider Operators and IT service houses None Operators and IT service houses Technology vendor Security Data transfer Authentication Device security Visto, Seven (Smartner), RIM (Blackberry), Nokia, etc. High security (end-to-end encryption) Varies depending on what authentication solutions the Service provider can support or provide. Low (messages remain in the device) Device manufacturers Low (Medium - often too complicated) Low Low (messages remain in the device) Visto, Seven (Smartner), Nokia, etc. Medium Varies depending on what authentication solutions the Service provider can support or provide. High (nothing is stored on the device) User benefits - easy to install and use - fast, good user experience - support - cost efficient, optimized data transfer No service fee - wide range of device support - support Challenges - No synchronisation with mobile device s own calendar or contacts. - High data consumption (used protocols not optimized for mobile email) No synchronisation with PIM-server. Costs Service or License fee as well as consumption based data transfer fee Consumption based data transfer fee Service or License fee as well as consumption based data transfer fee 7

Managing mobile enterprise solutions There are many aspects that need to be handled when implementing a mobile enterprise solution. The example shows the fragmentation of the market for a relatively simple horizontal mobile email application. For more complex vertical solutions there are more aspects to consider. The system design, sourcing of hardware, internal process reengineering has to be considered to exploit the potential of mobility. The importance of process reengineering and implementation within the enterprise customer should not be underestimated. It is an activity necessary to unleash the full potential of the solution. To do this a good understanding of the core business has to be combined with technology competence specific for the mobile solution. Experienced external help can fill the gap between the tacit business knowledge within the enterprise and the suppliers of the different components of the solution. Fragmented supply of enterprise solution components Mobile Operators Software Developers Mobile Device Suppliers Application Hardware Suppliers Enterprise MVNOs Fixed Line Operators Managed Services System Integrators Process reengineering Customer Process implementation Customer Requirement definition Solution development System Integration Support and Operations Managed Services Supplier examples WM data Cap Gemini Maingate Invivo Tieto Enator Nokia Ericsson Symbol Intermec Tieto Enator IBM Sybase Accenture TeliaSonera Telenor Tele2 Spring Mobil 8

Guidelines for mobile enterprise projects How to gain business value from mobility while minimizing risks given the opportunities and challenges of mobile enterprise solutions. The authors have summarized essential guidelines for mobility projects. Acknowledging these issues can save you from unexpected trouble. Essential rules: Evaluate and identify opportunities with a proven method. Use experienced professionals to evaluate mobile business opportunities based on your company s business environment prior to project launch. A professional evaluation process saves your money, time and resources. Make sure that your mobile project has a clear business value measured with metrics suitable for the case. Start with focused and functionally limited scope. Large projects tend to be delayed and get complicated. Correctly sequenced projects lead to results sooner. Choose solutions and vendors carefully. Be prepared to sacrifice time and resources in choosing the right solution and vendor. Use experienced persons and proven processes in qualifying solutions and vendors. Ensure management commitment for the implementation process. Make sure that you have middle-level and top management support and commitment for your mobile project. Use proven technologies Do not underestimate the effort required to train personnel. A new solution is worthless unless it has skilled users. In fact, one should include training of personnel in the original implementation plan. 9

Conclusions and next steps Mobility is a key component in today s competitive business environment and the opportunities are many. However, there are several challenges when implementing mobile enterprise solutions, as discussed in this paper. Yet true benefits are available for those who acknowledge and address these challenges. How do you provide better customer service, reduce cost or increase your sales by implementing a mobile channel? Mobile Quickstart is designed to help companies analyze how they can improve their business with the mobile channel. During the process the goals for the mobile effort will be set and aligned with the company overall vision and strategy. 1. Analysis of business functions will identify how the mobile channel could support the business. The identified opportunity will be described, evaluated and prioritized based on business value, uniqueness and implementation cost. 2. Gap analysis will verify that there is no gap between the identified mobile opportunities and the current IT environment or with company goals. This will give input to business case calculation justifying the needed investment. 3. Mobile Quickstart provide our client with a solid vision and understanding how the mobile channel could support the daily business. Our customer is aware of the costs for implementing the mobile channel as well as the potential process savings as well as having an action plan to follow. 10

Take the opportunity to contact our experienced consultants in the field and discuss how to take the next step. In the Nordic market, Prisma Consulting works in co-operation with incode delivering mobile wireless strategies and solutions to enterprise customers. Jussi Lystimäki Joonas Merenheimo jussi.lystimaki@prismaconsulting.fi www.prismaconsulting.fi Mobile: +358 40 549 3218 jmerenheimo@incodewireless.com www.incodewireless.com Mobile: +46 702612599 Introduction workshop Mobility need analysis Process reengineering Customer Process implementation Customer Business case development Requirement definition Solution development System Integration Support and Operations Managed Services About Prisma Consulting Prisma Consulting is a partner for corporate executives in demanding wireless, information and communication technology projects. We typically act as project leaders or advisors for corporate management of major corporations, telecom operators or government bodies. With industry leading experts and market analysts, Prisma helps corporations to beat challenges and make the change. For more information visit us at: www.prismaconsulting.fi Prisma has experience in making the change and delivering results inside large enterprises. We re positioned among the client s internal organization. With experienced team and leading market analysts we can help you to make the difference. We can start with an introduction meeting with you. About incode incode acquired the Nordic wireless expert advisory Northstream in august 2005. incode provides highimpact strategic technology and business advice to the wireless industry. incode is a multinational company with some of the world s best experts and analysts on wireless communication and technology that supports many of the industry s leading companies in their strategic and tactical challenges towards continued growth. For more information please visit us at: www.incodewireless.com incode has all the skills and experience to help you implement mobile solutions successfully. We can analyze the specific needs of your company and implement a mobile solution that will bring your company a competitive edge in the market. incode can also help you with introductory management workshops around mobile enterprise solutions. 11