During this QuickCast, analyst John Shuster discusses several key findings from VDC’s recent Near Field Communications enterprise end-user survey.

1. AutoID & Transaction Automation Practice
John Shuster– Analyst
WEBCAST
How & Why Enterprise End Users are
September 2011 Deploying NFC Technology
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2. Recording Available
A full audio recording is available for download at:
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6. Today’s Speaker
John Shuster
Analyst
John has experience in strategy and research consulting, private equity, and
project management. At VDC, John is an analyst for the firm’s Consumer
Engagement Technology and Retail Automation coverage. Prior to working
as a CET analyst, John was responsible for VDC’s 2010 Land Mobile Radio
study in the Mobile and Wireless practice. John has also worked as an
Associate at Stax, Inc., a Boston-based strategy consulting firm, focusing
on investment diligence and market opportunity assessment engagements.
During his post-graduate studies, John completed a year-long corporate
residency program at Boston Ventures, a middle-market private equity firm,
where he was responsible for supporting operations in the finance and
accounting department. John is a graduate of Dickinson College (BA,
English) and Northeastern University (MBA, finance).
For complimentary insights and marketing data:
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7. Today’s Agenda
NFC Adoption Drivers
Leading Enterprise Applications
Barriers to NFC Adoption
NFC Budgets Expected to Increase
Managed Services a Viable Strategy?
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8. NFC Adoption Drivers
Driver Respondents Citing  Operational improvement is the most
cited adoption driver for NFC among
enterprise end-users.
Operational
Improvement
68%
 Deploying enterprises also looking to
justify NFC investment via ROI / cost
savings.
Cost Savings 64.6%  Enterprises also considering NFC
as a platform for serving various
applications including:
Improved Customer o Customer Loyalty
64.0%
Experience o Targeted Marketing / Promotions
o Security / Access Control
New Application
63.4%
Development
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9. Leading NFC Applications Among Enterprises
Security & Access Peer-to-Peer/ Ticketing: Events,
Control Pairing Mass Transit, etc.
69.2% of respondents Cited by 53.8% of Nearly 40% of
cited security / access respondents. While this respondents cited
control as a leading application has overlap ticketing as a key NFC
NFC application. with consumer NFC application. NFC
Particularly well usage, it has broad tickets can serve a
received in verticals appeal across verticals diversity of vertical-
where restricted specific applications
access is common,
including health care
and manufacturing
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10. NFC Adoption Barriers
Barrier Respondents Citing  Relative to more established Auto ID
solutions, NFC is a relative newcomer –
as a result, lacks consistent recognition.
Not Familiar with NFC 22.8%  NFC can serve a variety of applications,
but nearly 20% of respondents reported
no requirement.
Lack of Requirement 18.9%
 Suppliers should consider this a call to
action and work to inform enterprises
about NFC in respect to:
o Applications
Unclear on NFC Benefits 6.6% o Solution Types
o Benefits – both internal
and customer-facing
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11. NFC Budgets Growing Rapidly
Average Annual NFC Budget
(N=175)
 Average annual NFC spending
expected to increase 3X by 2013 as
$160,000 reported by respondents (N=175).
$140,000  Spending could be accelerated by
more rapid consumer level adoption
$120,000 of NFC technology, especially with
smartphones.
$100,000
 VDC expects the strongest spending
$80,000 gains will be seen in B2C enterprises
that can leverage customer-facing
$60,000 mobility, including:
$40,000 o Retail
o Hospitality
$20,000
o Transportation / Mass Transit
0
$-
© 2011 VDC Research Webcast
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12. Managed Services Gaining Traction
Key Drivers
 Cost Savings: The clear winner
 Low Upfront Costs: Makes the solution more attainable
 Speed of Deployment: Customers are using NFC now – is your business?
Who is Meeting the Demand?
 Systems Integrators
 End-to-End, Total Solutions Providers
 And to a Lesser Extent…Manufacturers
Issues to Bear in Mind:
 Security is Key – especially with customer data
 Enterprises Fear Loss of Control Over Systems
 As Consumer NFC Adoption Scales, More Enterprises Will Go This Route
© 2011 VDC Research Webcast
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13. Thank You for Attending this VDC QuickCast
For more information please contact:
John Shuster – Analyst
jshuster@vdcresearch.com | 508.653.9000 x133
Sherrie Nankin – Account Director
snankin@vdcresearch.com | 508.653.9000 x119
For complimentary insights and marketing data:
http://blog.vdcresearch.com/autoid
© 2011 VDC Research Webcast
AutoID & Transaction Automation
vdcresearch.com