The Upwardly mobile enterprise 2014_03_05_5616_Summary_Powerpoint_Deck_The_

© 2013 IBM Corporation
The “Upwardly Mobile” Enterprise:
Setting the Strategic Agenda
Eric Lesser, Linda Ban, Davon Snipes, Pamela Hurwitch
October 2013

Study Approach and Methodology
Introduction: Why is mobile important to the enterprise?
Chapter 1: Developing a mobile strategy
Chapter 2: Improving the customer experience and driving employee productivity
Chapter 3: Enabling the mobile environment
Table of contents
2

The “Upwardly Mobile” Enterprise study was comprised of an online
survey completed by over 600 global respondents and 30 interviews
3
Source: Institute for Business Value, Mobile Enterprise Study, QS7. What was your organization’s approximate global revenue in US dollars? For public sector, what was your organization’s
approximate annual budget in US dollars for the last fiscal year?; QS6. Approximately how many people does your company employ?
Demographics
Survey Demographics
Survey completed by 601 companies (301 mature
countries, 300 growth countries)
Supported by IBM’s research partner, Oxford Economics
Distributed and administered online
Geographic representation from 29 countries with a
rough equivalence between industrialized and
developing economies
Minimum of 50 respondents from 8 strategic industries:
Banking, Insurance, Retail, Travel and Transportation,
Telecom, Government, Healthcare, Automotive
Interview Demographics
In-depth interviews with 30 executives directly involved in
setting mobility strategy across multiple industries and
geographies
Interviews conducted between March and May 2013
Interviews conducted by IBM and research partner,
Oxford Economics
Survey Respondents by Annual Revenue
Survey Respondents by Employee Size

A subset of ‘Leaders’ has been derived from the survey results based
on the maturity of a company’s mobile practices and mobile strategy
4
Source: Institute for Business Value, Mobile Enterprise Study, QS7. What was your organization’s approximate global revenue in US dollars? For public sector, what was your organization’s approximate annual
budget in US dollars for the last fiscal year?
Defining Mobile Strategy Leaders
One requirement was that they agreed or strongly agreed
with three of the following five statements:
 My organization has a well-defined enterprise mobile
strategy
 The mobile strategy is aligned with the overall business
strategy for the organization
 There is executive-level oversight for mobile initiatives
 My organization has a clear funding mechanism for
mobile initiatives
 There is an established governance structure for mobile
initiatives
A second requirement was that when asked to compare
themselves with their industry peers today, they indicated that
they had a superior or leading mobile strategy (4 or 5 on a 1-
5 scale)
Overall 14 percent of companies fell into this leader category
Further, mobile strategy leaders were more likely to indicate
that they outperformed their industry peers in both revenue
growth and profitability
Leader Breakdown by Annual Revenue
Leader Breakdown by Location
Mature Growth

Table of contents
5

6
Source: Institute for Business Value, Mobile Enterprise Study
A set of functions
that allow activities
and transactions
to be completed,
untethered by time
and place
Enabled by a
device or sensor
(e.g. smartphone, tablet,
laptop, accelerometer,
camera, scanner, wrist
watch) connected through a
wireless network
Opens up opportunities
to create new services,
markets, and capabilities,
including machine-to-
machine functionality
(e.g. remote diagnostics,
enhanced transaction
processing)
Includes business-to-
business, business-to-
customer, and business-
to-employee interactions
What is mobility?

Mobility is becoming ubiquitous, both in the consumer and the
enterprise environments
7
Source: 1Singh, Sameer. “When Will Tablet Shipments Overtake PCs?” Tech Thoughts. February 19, 2013. http://www.tech-thoughts.net/2013/02/when-will-tablet-shipments-overtake-pcs.html#.UioWun_3PCY
2 “The Year of the Enterprise Tablet – Infographic.” Industry News, Vertec Blog. Vertec . April 18, 2012. http://www.vertic.com/blog/year_of_the_enterprise_tablet_infographic/ 3Mulpuru, Sucharita. “US Online
Retail Forecast, 2012 To 2017.” Forrester. March 13, 2013.. 4eMarketer, http://www.emarketer.com/Article/Smartphones-Tablets-Drive-Faster-Growth-Ecommerce-Sales/1009835 5“Smartphone Adoption Tips
Past 50% in Major Markets Worldwide” eMarketer Newsletter. eMarketer.com. May 29, 2013: http://www.emarketer.com/Article/Smartphone-Adoption-Tips-Past-50-Major-Markets-
Worldwide/1009923#bKLIS23S3H76qg0F.99; McDermott, John, “A Majority of U.S. Mobile Users are Now Smart Phone Users,” Ad Age, May 28, 2013. http://adage.com/article/digital/a-majority-u-s-mobile-
users-smartphone-users/241717/ . 6“Infographic: Smartphones Rule as Shopping Tool” First Data Thought Leadership. First Data. http://www.firstdata.com/downloads/thought-leadership/SmartphonesRule.pdf
7“Insights - JiWire Mobile Audience Insights Report Q4 2012.” JiWire. 8 Ballvé, Marcelo “Wearable Computing: From Fitness Bands To Smart Eyewear, A New Mobile Market Takes Shape” Business Insider
Intelligence. April 16, 2013. 9Bhas, Nitin “Wearables - The Next ‘Smart’ Thing.” Juniper Research. November 2012. http://www.juniperresearch.com/whitepapers/Wearables_the_Next_Smart_Thing.
Tablet devices rapidly supplanting
traditional PCs
Quarterly shipments of tablets are likely to overtake
those of PCs by Q1 20141
Enterprise tablet adoption is estimated to grow by
almost 50% per year2
The US Mobile retail revenues via smartphone are
expected to reach $31 Billion by 20173
In 2013, 15% of online sales will take place via mobile
devices; by 2017 that percentage will rise to 25%4
Mobile commerce continuing to rise as a
percentage of total internet commerce
Smartphones playing an increasing role
in the purchasing process
Currently, there are approximately 1.4 billion smartphone
subscribers, with Smartphone adoption tipping past 50%
in major markets worldwide5
45% of consumers use their phone in-store to price
compare and 65% have retailer apps on their phone6
94% of smartphone owners report using their mobile
device while in-store7
Wearable technology is in its nascent
stages of growth
Between 300-485 million devices are predicted to ship by
20188
The market is estimated to be worth more than $1.5 billion
by 20149
50% of consumers are not aware of wearable computing8

Mobility is changing how individuals use traditional computing in the
enterprise environment
8
Source: Digital Front Office (DFO) Institute for Business Value Study, Q19a. For which of the following do you use your mobile phone? Select all that apply. Q19b. For which of the following do you use your
mobile phone? Select all that apply.
% of Respondents who use their
mobile phone for the following activities
62%Internal email
56%
30%
30%
28%
Video conferences
External/client email
Apps related to job function
Apps related to work
% of Respondents who use their
tablet for the following activities
Read/write docs 47%
42%
41%
41%
39%
Research
Apps related to job function
Internal email
Apps related to work
All Respondents

Leading organizations clearly recognize that mobility will
fundamentally alter how organizations compete in the near future
9
Source: Institute for Business Value, Mobile Enterprise Study, Q10. To what extent do you agree or disagree with the following statements about your organization's mobile strategy and mobile practices? (percent
indicating agree or highly agree)
“Mobility will get to the point where it is a fundamental way we do business. The value proposition for
mobile will be that it is embedded in what we do. In 5-10 years, we will look back and wonder what all the
fuss was about.”
Director Strategy and Planning, Global IT, Automotive
Mobile is fundamentally changing the
way my organization does business
My organization has seen measurable
ROI from its mobile initiatives
All OthersLeaders
Mobility impact
73%
34%
81%
39%

Table of contents
10

Companies recognize the need for a leading mobile strategy to
compete more effectively
11
Source: Institute for Business Value, Mobile Enterprise Study, Q21. Compared with your industry peers, how would you evaluate the current state of your organization’s mobile strategy?
Compared with your industry peers, how would you expect to evaluate your organization’s mobile strategy in 3 years?
Current and desired state of mobile strategy in 3 years
Approximately 90% of all companies are looking to sustain or increase
their investment in mobile technologies over the next 12-18 months
39% 16%Limited to no mobile
strategy
40% 40%Comparable mobile
strategy
20% Superior to leading
mobile strategy
44%
In 3 YearsToday

An established governance structure, with representation from
across the organization, is a key component of a mobile strategy
12
Mobile
Strategy and
Governance
There are an infinite number of mobile applications
that would be complete game changers, and the
only way you get there is when everybody at the
agency who’s focused on delivering the best agency
mission is also looking at using these technologies.
Senior Advisor to CIO, Government
“We made the mistake with the Web of allowing
each business unit to operate independently.
With mobile, we recognize the need to centralize
development around one center.”
Senior Manager Enterprise Architecture
& Innovation, Automotive
Marketing
Human
Resources
Finance &
Accounting
IT
Strategy
Line of
Business

Today, CIOs play a prominent role in mobile activities, with line of
business leaders highly involved in early stages
13
Source: Institute for Business Value, Mobile Enterprise Study, Q9. Please identify the lead participant(s) involved in managing and implementing your organization’s mobile initiatives. Please rank up to three for each activity;
Key: Chief Information Officer (CIO), Line of Business (LoB), Project Manager (PM), Chief Technology Officer (CTO), Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO)
Mobile strategy leaders are more likely to include the Chief Marketing Officer
(CMO) in early stage discussions about mobile
Lead participant(s) involvement in mobile activity phases
Generates new
ideas
CIO
LoB
PM
CEO
COO
Sets / manages
priorities
CIO
LoB
CTO
CEO
PM
Determines
funding
CFO
CIO
CEO
COO
CTO
Acts as lead
sponsor
CIO
CEO
COO
CFO
CTO
Provides
governance
CIO
CTO
COO
CEO
CFO
Ranking
1
2
3
4
5

While companies are using mobile to pursue multiple innovation
paths, the majority are focused on enterprise model innovation
14
Source: Institute for Business Value, Mobile Enterprise Study, Q25. What type(s) of business model innovation are being driven by the use of mobile capabilities?
Industry model
innovation
Revenue model
innovation
Enterprise model
innovation
Redefining your role in the value chain,
where you collaborate, and how you
operate (e.g. incorporate partner
capabilities)
Enterprise model innovation
Changing the way you monetize value
(e.g. augment products with revenue
generating services, innovate pricing,
innovate who pays)
Revenue model innovation
Redefining existing industries, moving
into new industries, creating entirely
new industries (e.g. displace
intermediaries)
Industry model innovation
Types of business model innovation driven by mobile capabilities
All OthersLeaders
62%
43%
38%
25%
38%
32%

Daimler reinvented itself from a manufacturing and car sales
company to a provider of transportation services
15
Launched a car sharing service in late 2008 in Germany named
‘car2go’, which offers customers a way to customize their short-term
rentals for convenience, reliability, and cost; customers rent two-seat
smart cars for an initial registration fee, pay by the minute instead of
the hour or the day, and have the option of one-way rentals with free
street parking
Created a mobile app which allows customers to detect the
presence of a mobile vehicle near their current location; drivers gain
access to the vehicle based on a sensor affixed to the customer’s
drivers license or integrated in a membership card and a private
access code
Expanded ‘car2go’ in and outside of Germany to seven countries
and 23 cities, including 450,000 registered users worldwide; smart
vehicles have been rented more than 13 million times
Given the density of urban environments and
the associated high real estate expense, the
cost of car ownership is often times
prohibitive
Customers are demanding more flexible
urban mobility options for personal travel
Business Need Solution
Offer customers an economical and flexible
way to rent vehicles for personal travel
Provide a secure way for customers to locate
and reserve cars using mobile devices
Manage a free-floating fleet of several
hundred cars in a fully automatic rental
process
Challenges
Source: Steinberg, Stephanie and Bill Vlasic. “Car-Sharing Services Grow, and Expand Options .” The New York Times. January 26, 2013.
http://www.nytimes.com/2013/01/26/business/car-sharing-services-grow-and-expand-options.htm; http://www.daimler.com/technology-and-innovation/mobility-concepts/car2go
The Daimler Group is a German multinational automotive corporation comprised of multiple divisions
including: Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks, Daimler Buses, and Daimler
Financial Services. Daimler is one of the largest producers of premium cars and the world’s leading
manufacturer of commercial vehicles with a global reach. Daimler sells its vehicles and services in
nearly every country and has production facilities on five continents.

Recommendations
Foundational
16
Identify areas where mobile can fundamentally change business processes and models to
generate new revenue streams, lower costs or redefine the organization’s role in the value chain
Ensure that your enterprise mobile strategy takes into account both external as well as internal
initiatives
Ensure that business cases take into consideration both direct costs as well as benefits that
accrue in areas not directly bearing the cost of the initiative
Pilot new capabilities with selected customers, employees and business partners to gain insights,
reduce risk and make adjustments before rolling out at an enterprise level
Assess the network structure to make sure that new initiatives can scale when needed
Rapidly adjust mobile offerings on an ongoing basis
Make sure that your governance team involves all relevant stakeholders, including Line of
Business, Information Technology, HR and Marketing
Incorporate insights from “digital natives”
Look for opportunities to leverage common technology tools, partnerships, platforms and
development resources across business units
Be comprehensive
and bold
Be targeted and
iterative
Be collaborative
and inclusive

Recommendations
Accelerating
17
Identify opportunities posed by embedding mobile capabilities into devices and sensors
Take advantage of data and insights being generated from these sensors within existing
business processes
Consider new and emerging revenue streams and business models based on the data
Incorporate machine-
to-machine and
sensor-based
capabilities into
the mobile strategy
Bring partners, customers and other third parties early into the strategy development process
Identify opportunities for mutual gain and innovation today and in the future
Work jointly to identify future trends and technologies
Invite trusted
partners into your
mobility strategy
Identify the skills and capabilities that will be needed to be competitive in the next three to
five years
Highlight key investments that will be needed to sustain differentiation over the long-term
Monitor key regulatory and policy developments to ensure that your organization is addressing
future legal requirements
Plan for the future

Chapter 2: Improving the customer experience and driving employee
productivity
Table of contents
18

19
Companies are looking towards mobile to improve customer service,
with a focus on responding more rapidly to customers
Source: Institute for Business Value, Mobile Enterprise Study, Q2. What are the most important benefits your organization is looking to achieve when using mobile to
enhance the customer experience? (Select up to 3); Q6. What are the most important benefits your organization is looking to achieve when using mobile to improve employee
productivity? (Select up to 3)
48%
58%
38%
30%
28%
27%
26%
Faster response time to
customers
Improved communication
Better collaboration
Easier access to expert
insights
Faster response time to
internal inquiries
Increased availability
Work location flexibility
36%
51%
31%
24%
17%
16%
16%
16%
Improve customer service /
satisfaction
Increase customer retention
Increase market share
Reduce number of customer
service calls
Attract customers
Increase share of customer
wallet
Expand existing products /
services
Reduce cost for customer doing
business with company
Benefits of
enhancing the customer experience
Benefits of
improving employee productivity
All RespondentsAll Respondents

20
Organizations are seeing mobility as an important driver for
employee productivity
Source: Institute for Business Value, Mobile Enterprise Study, Q7. Please estimate the extent to which mobility has improved overall employee productivity today. What do you anticipate in 3 years?
Less than
10%
10-20%
Greater
than 20%
20%
36%
30%
40%
50%
24%
Growth in employee productivity expected from mobility
In 3 YearsToday

Organizations are looking to increase the number of employees that
are working outside the traditional office
21
Source: Institute for Business Value, Mobile Enterprise Study, QS11. Approximately what percentage of your organization's employees are remote / mobile workers (i.e. work from home or other locations)?
What percentage do you anticipate in 3 years?
Percentage of mobile workers today and
expected in 3 years (All Others)
>20% Don’t Know11-20%6-10%< 5%
Percentage of mobile workers today and
expected in 3 years (Leaders)
Don’t Know>20%< 5% 11-20%6-10%
78% of leaders and 44% of all other companies identified ‘enabling employees outside the office’
as an infrastructure investment priority
In 3 YearsToday
20%
18%
22%
14%
1%
22%
16%
34%
50% 38%
30%
22%
17%
3% 4%
32%
19%
17% 18%

22
Organizations are placing greater importance on employees
being more productive in the field
Source: Institute for Business Value, Mobile Enterprise Study, Q5. In considering how mobile can be used to improve employee productivity, how important are the following capabilities? (percent indicating agree or
highly agree)
Monitor and manage
employees
Enable employee self-service
Provide sales force
enablement tools
Improve internal collaboration
Access applications in remote
environments
52%
Importance of mobile capabilities needed to enhance employee productivity
All OthersLeaders
81%
63%
80%
63%
76%
71%
51%
63%
45%

To drive employee productivity, leaders are embracing bring-your-
own-device (BYOD) and providing the needed support
23
Source: Institute for Business Value, Mobile Enterprise Study, Q17. To what extent do you agree or disagree with the following statements about your organization's ability to manage mobile devices? (percent
indicating agree or highly agree)
79%
48%
66%
34%
78%
39%
My organization provides the
necessary training for
employees using mobile devices
IT provides the required support
for BYOD participants
My organization has well-documented
policies and procedures in place for
employees using mobile device.
66%
32%
My organization has
adopted a BYOD
approach for
employees across
the enterprise
Adoption of BYOD Support for BYOD programs
All OthersLeaders

VCC implemented a customer relationship management solution
which reduced the speed of processing customer inquiries by 30-50%
24
Implemented a robust customer relationship management (CRM) solution
to help the company effectively and efficiently manage its contacts, leads,
projects, products, services, documents, marketing campaigns and other
events, sales pipeline, relationships and customer service interactions; the
solution provided VCC seamless integration across both its internal and
external systems
Provided CRM solution to project managers online or off-line and on their
BlackBerry, iPhone or other smartphones
Promoted better collaboration, even greater productivity
improvements, and a lower total cost of ownership
Reduced speed of processing inbound customer service inquiries by
30 to 50 percent with a range of features, such as call tracking and
email help tickets
Provided project managers with key information in real time, allowing
them to make better business decisions – working 5x faster when
away from office
VCC built its business on retail malls and wanted
to proactively seek out new opportunities
VCC had difficulty giving its project managers the
information they needed for RFPs, project issues,
and other business opportunities
Contact and lead information that was deposited in
the company’s home grown customer relationship
management database could not ‘move’ the way the
30 project managers did onsite or when they were
traveling or away from the office at customer
locations
Search capabilities were limited and it was difficult to
share information
Challenges
Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials; www.vccusa.com
VCC is an internationally known construction services provider licensed throughout the U.S. The company
is involved in retail, office, multifamily, hospitality, health care, industrial, and other use projects.

Recommendations
25
Reinvent existing processes to take advantage of mobile capabilities, such as self-service
Provide mobile personnel with tools that can provide rapid answers to customer assistance
Enable employees to collaborate more easily and effectively with experts across the
organization
Identify processes
where mobility can
provide faster,
higher value
customer response
Provide employees with a mobile environment to accomplish administrative tasks at
convenient times
Redesign internal processes, such as expense management and time and reporting to take
advantage of mobile features
Consider adapting employee learning events and process changes to include mobile platforms
Use mobile
capabilities to
facilitate routine
tasks and inquiries
Develop clear rules and processes for mobile device use
Educate employees to minimize potential risks, including security violations, malware and
other IT hazards
Include extended workforce into BYOD guidelines (e.g., contractors/business partners)
Build in security and
privacy safeguards
for employees using
mobile devices for
work-related
activities
Foundational

Recommendations
26
Provide employees with the apps, access and permissions relevant to their specific job needs
Develop app stores that can be configured based on functions and job roles
Incorporate the configuration of personal devices as part of orientation/onboarding processes
Customize the
employee mobile
experience
Recognize differences between traditional PCs and mobile devices
Redesign processes that govern how devices and apps are procured, distributed, updated,
repaired and managed
Provide support outside of traditional office hours and locations
Manage corporate
owned mobile
devices like other
corporate assets
Apply data to customer responsiveness to drive revenue
Identify opportunities to incorporate location data in internal processes such as route planning
and employee scheduling
Identify locations and interaction patterns of employees and customers to better understand
collaborative patterns and behaviors
Consider leveraging
location-based data
Accelerating
26

Table of contents
27

Companies struggle with the design and development of mobile
applications
28
Source: Institute for Business Value, Mobile Enterprise Study, Q11. Please select the top challenges your organization faces today when developing or acquiring mobile applications. Select up to 5.
40%Development platform /
infrastructure
46%Ensuring quality mobile experience /
usability
Quality and functionality 57%
All Respondents
Challenges in developing/acquiring mobile applications
“For the end customer, it is not easy to get the right orientation, look and
feel; usability is the next thing.”
Executive, Automobile company

Interviewees stressed the importance of the user experience within
the design process
29
“We quickly realized that what people called “mobile” today is more than just something about mobility and
having small computers with them all the time. It’s also a new way of distributing software and it’s a
completely new set of expectations and user experiences that users expect to get from software that
they will use all the time.”
Chief Architect, Travel services company
“Don’t do mobile just for the sake of mobile…really need to drive it from the
perspective of the user (e.g., agent, customer, employee).”
CIO, Insurance company
“In governance and decision making…make sure the voice of the customer is
heard by the engineer.”
Senior Advisor, Electronics company
Source: Institute for Business Value, Mobile Enterprise Study.

Roughly half of all companies struggle with mobile integration,
security, and analytics capabilities
30
Source: Institute for Business Value, Mobile Enterprise Study, Q8. How significant are the following mobile challenges your organizations is facing today? (percent indicating agree or highly agree)
48%Ability to use analytics gathered
from mobile data
49%Change management issues associated
with employees using mobile devices
50%
Ability to understand how customers are
interacting with your organization’s mobile
applications / solutions
51%
Ability to react to changes in technology and
mobile devices in a reasonable period of time
53%
Ability to implement end-to-end mobile security
solutions for devices and applications
Ability to integrate mobile applications
with existing systems
54%
All Respondents
Top mobile challenges facing organizations

Mobile strategy leaders have seen greater success in addressing the
integration challenges
31
Source: Institute for Business Value, Mobile Enterprise Study, Q15. To what extent has your organization been successful with the following activities related to integrating mobile applications with other
applications or back-end systems? (percent indicating agree or highly agree)
Success at integrating mobile applications
All Others
LeadersIntegrating existing systems
that were not designed with
mobile in mind
Sharing information among
systems / devices
Leveraging / managing
application program
interfaces (APIs)
Ensuring interoperability
with other systems
Building required internal
technical skills / knowledge
73%
41%
71%
31%
63%
34%
70%
40%
62%
36%

55%
51%
50%
49%
59%
41%
88%
62%
90%
82%
82%
86%
82%
74%
Mobile strategy leaders also recognize the importance of making
sure their mobile capabilities are secure
32
Source: Institute for Business Value, Mobile Enterprise Study, Q14. How effective is your organization at addressing the following mobile security issues? (percent indicating agree or highly agree)
Mobile app security
Threat detection
Device management
Secure connectivity
Protection of data
User security
Use of cloud technologies
and services
Effective at addressing mobile security issues
“Our main challenges are data,
security, privacy, and intellectual
property risk. As vehicles
collect more and more data, we
will be challenged with
determining the owner of the
data and what is personal
versus private.”
Director Strategy and Planning,
Global IT, Automotive
All Others
Leaders

While roughly half of companies indicate that the ability to leverage
analytics is a challenge, leaders have truly focused on this area
33
Source: Institute for Business Value, Mobile Enterprise Study, Q16. To what extent is your organization effective in the following capabilities (listed above). Percent indicating agree or highly agree)
36%
36%
37%
30%
33%
Taking action based on
mobile data
Analyzing mobile data
Addressing structured and
unstructured mobile data
Handling large volumes of
mobile data
Using cloud infrastructure for
mobile data insight
development
Applying analytics to mobility
71%
73%
71%
70%
69%
“It’s not about collecting
the data. It's about what
is the question you want
to answer.”
VP Group IT, Media
All Others
Leaders

Air Canada developed an integrated multi-channel solution to deliver
a more engaging and seamless experience for customers
34
Created one app where customers can check flight status and get
their electronic boarding pass
Delivered an integrated multi-channel solution across kiosks, web,
and mobile that can tie together customers, agents, and call centers
– adding intelligence so that the app can anticipate the end users’
needs
Provided a real-time experience, so the information is delivered to the
mobile device at the same time it is delivered to Air Canada agents
Reduced per-check-in cost by 80%
Resulted in the ability to push out new releases within 72 hours (prior
6-8 weeks); reduced the time of development and test by 50%
Received more than 1.5 million iPhone app downloads and ranked #1
in the Travel Category (#2 overall) in App Store Canada
Improved traditional web site based on insight from the mobile user
experience, thus increasing customer satisfaction (added benefit)
Air Canada wanted to expand its mobile
reach to transform the way it interacts with
its customers, deliver a more engaging
experience, and provide greater customer
value
Air Canada is Canada's largest full-service airline and provider of scheduled passenger
services in the Canadian market, the Canada-U.S. trans-border market, and the international
market to and from Canada. Together with its regional partners, Air Canada serves close to
35 million passengers annually and provides direct passenger service to more than 175
destinations on five continents.
Lack of a multi-channel platform (across
kiosks, web, and mobile) integrated with Air
Canada’s back-end system
Inability to deliver a seamless multi-channel
experience to customers
Six to eight week timeframe to push out
new releases
High check-in cost per passenger
Challenges
Source: Nicol, Dirk. Mobile Strategy: How Your Company Can Win by Embracing Mobile Technologies. IBM Press; 1st edition. 2013; Air Canada – Smarter Planet Leadership
Series Video” http://www.youtube.com/watch?v=dyXuheNcJDs); http://www-01.ibm.com/software/ucd/gallery/aircanada_services_ravereviews.html); www.aircanada.com

Create with the
omni-channel
experience in mind
Evaluate your
mobile solutions
development
capabilities and
challenges
Incorporate
mobility into
your existing
security
environment
Recommendations
Ensure all of your channels are able to access the current state of customer/employee
transactions
Understand how, and where, interactions are taking place with the customer
Develop the ability to evaluate the overall customer experience within and across channels
Evaluate and benchmark the firm’s current tools, development methods, and skills to
develop case for change
Consider opportunities for consolidating resources and standards development within a
center of excellence (COE)
Determine appropriate balance of internal and external resources to deliver needed mobile
capabilities
Apply the same rigor and advanced approaches to security as in traditional IT environments
Use predictive analytics to review previous breach patterns and provide ongoing evaluation of
the external environment for possible threats
Ensure mobile transactions are secure
Foundational
35

Recommendations
36
Identify opportunities to consume third-party APIs to improve mobile applications
Attract and educate third-party developers to use APIs
Develop competencies in API development, promotion and platform management to create new
revenue streams
Tap into the
value of APIs
Evaluate cloud capabilities to increase engagement through notifications or location-based
services
Consider cloud delivered mobile lifecycle solutions if they meet requirements for security and fit
with existing business constraints
Examine potential for cloud-based collaboration among mobile dev-ops teams
Monitor emerging
cloud services for
opportunities to
increase mobile
engagement
Use mobile data to yield contextual information regarding the timing and location of mobile
transactions
Apply analytics to understand how individuals are using their mobile applications and how these
apps can be made more effective
Combine mobile data with transaction data to determine next best offers and actions
Use analytics to
provide end users
and consumers with
contextually relevant
actions
Accelerating

Conclusion
37
Summary Key Questions to Consider
Developing a
mobile strategy
To what extent does your company have a well-defined enterprise-wide mobile strategy? How does
your mobile strategy compare to your competitors?
Who is involved in your mobile governance structure (e.g. IT, marketing, line of business, HR,
finance and accounting) and how effectively do the functions work together on mobile strategy and
execution?
How does mobility drive business model innovation at your company?
Improving the
customer
experience and
driving employee
productivity
How can employees with mobile devices enable faster response time to customers and improve
overall productivity?
Which existing internal processes could be modified to take advantage of mobile capabilities?
To what extent does your organization have a BYOD strategy? How effective are your policies and
procedures in place for employee use of mobile devices?
Enabling the
mobile enterprise
How effective is your mobile design and development process in understanding customer needs
and rapidly developing solutions that fill those needs?
To what extent are legacy systems a barrier for your organization in connecting mobile systems?
How do you think mobile analytics can help you in providing a measureable return?
Conclusion

AMRC
Global Banking Company
Rohde & Schwartz
VAEB
Mobile Services Operator
CEMEX
Appendix – Additional Business Cases
38

The AMRC created a maintenance, repair and operations prototype
that transforms the role of manufacturers and field engineers
39
Created a mobile maintenance, repair and operations (MRO)
prototype designed to help manufacturers and companies supplying
and maintaining high-value machinery in sectors such as aerospace,
shipping, and oil and gas
Used a combination of augmented reality and robotics to bring critical
information and remote expertise directly to field engineers
Helps field engineers accurately locate equipment, obtain critical
information, and receive real-time visual support from supervising
experts based remotely
Decreases CAPEX (extends asset life) 3-7%, increases production
(asset utilization, unplanned downtime) 8-15%, decreases annual
operating cost savings average 10-25% (labor costs, MRO inventory)
Allows businesses to become more competitive through the
application of new techniques, services, technologies and processes
Captures and recycles information; offers ‘up-skilling’ solution for just-
in-time knowledge transfer
Provide a way for manufacturers to reduce
costs, provide just-in-time knowledge
transfer, and reduce the personal risk to
engineers working in difficult environments
The University of Sheffield Advanced Manufacturing Research Centre (AMRC) with Boeing
identifies, researches, and resolves advanced manufacturing problems. AMRC partners with
industry to solve problems for manufacturing businesses. Beginning in February 2011,
researchers with AMRC and IBM collaborated on a new system to put ‘smart mobility’ into
maintenance, repairs and operations.
Aging population of field engineers with the
expertise to manage maintenance, repair and
operations (MRO)
Inefficient onsite repair and maintenance
Recognition that with a global supply chain,
companies need global support and a way to
have bi-interactional communication
Challenges around turning of inventory assets,
cost of labor, and unplanned down time
Challenges
Source: IBM Research and The University of Sheffield Advanced Manufacturing Research Centre (AMRC) joint partnership; http://www.amrc.co.uk/

A global banking company created a BYOD program that reduced
costs and improved employee satisfaction and flexibility
40
Implemented a bring-your-own-device (BYOD) program that
improved employee satisfaction and enhanced recruiting capability
Received a 108% ROI and payback in less than one month
Improved workforce flexibility and productivity with secure ‘anytime,
anywhere’ access for employees
Increased sales revenue from quick, reliable access to business-
generating applications on BYOD devices
Reduced costs for acquiring, provisioning, and replacing corporate-
liable devices
Decreased overhead and administrative costs for an on-site device
depot program
Reduced complexity and costs from internally maintaining the mobile
infrastructure
Decreased help desk support costs with a reduction in the number of
inbound calls for corporate-liable devices
Bring-your-own-device (BYOD) program that
met internal (e.g. employee satisfaction,
business productivity) and external (e.g.
recruiting, competitive differentiation) needs
A large European bank serving retail, private, and commercial merchant banking clients with over
25,000 employees and $150B in assets under management. The bank’s bring-your-own-device
(BYOD) program was initially piloted and then launched in 2011.
A large European bank serving retail, private, and commercial merchant banking clients with over
25,000 employees and $150B in assets under management. The bank’s bring-your-own-device
(BYOD) program was initially piloted and then launched in 2011.
Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials
“With the BYOD program underway, we are now
more flexible in terms of where we work and how
we work, and people are getting more productive
time out of the workday. The BYOD program is
innovative, which is good for internal marketing
and impressive to our peers.”
Senior IT Manager

Rohde & Schwartz cut the cost of multiplatform development by 60%
while supporting five different platforms
41
Implemented a third party mobile platform solution to integrate with
enterprise systems and securely reuse the integration layer in
multiple applications; created a unique, branded user interface
library to serve as a standard for all future mobile application
development initiatives
Created a tablet application version of the company’s magazine to
allow customers to access technical articles
Created a Sales Web Mobile application to enable employees to
access the company’s product background, inventory, and marketing
information using their mobile devices
Created a Sales Circular application to provide just-in-time product
information to sales personnel
Reduced cost of multiplatform development by 60% while supporting
5 platforms
Shortened time to market with hybrid development of applications
across multiple mobile operating systems
Create a mobile enterprise infrastructure
that supports multiple devices and creates
applications for customers, partners, and
employees within a short timeframe
Rohde & Schwarz, an independently, family-owned company based in Germany, is one
of the world’s leading manufacturers of wireless communications technology,
electromagnetic compatibility (EMC) test and measurement equipment, and broadcasting
equipment for digital television. The company has approximately 8,700 employees,
including 5,500 in Germany and 2,500 at the company’s Munich headquarters.
Lack of a mobile infrastructure / platform
that supports multiple devices
Inability to develop and deploy HTML 5
applications to deliver content across
multiple mobile platforms in a timely
manner
Challenges
Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials; http://www.corporate.rohde-schwarz.com/en/about/company_profile/

42
Developed an in-home diabetes monitoring program that uses
telemedicine to allow physicians to closely follow their patients’ at-
home compliance
Linked medical devices, such as blood pressure and blood glucose
monitors and scales, to a cell phone which automatically sends the
patient’s data to a diabetes diary database
Expected to achieve a 20,000 member participation in a “health
dialog” program, with resulting healthcare cost savings in the tens of
millions by 2015
Enabled the insurance company to identify at-risk patients and plug
them into the program, improving care and helping further reduce
insurance costs
Helped to transform the treatment paradigm for widespread diseases
like diabetes from traditional care to prevention-based care without
adding costs
Support its insurance customers and work
more closely with their doctors to manage
their diabetes
Versicherungsanstalt für Eisenbahnen und Bergbau (VAEB) is a public insurance company
in Austria. VAEB insures health, pension and accident risks for railway workers and miners.
VAEB increased their focus on health and health prevention three years ago. About 260,000
clients get insurance services from VAEB.
The Austrian healthcare system is incredibly
burdened by an increasing number of people
suffering from diabetes
A single person with diabetes costs VAEB
€150,000 on average and the disease can
become extremely painful for the patient,
severely compromising their quality of life
Challenges
Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials, published March 20, 2012, last updated May 13, 2013; http://www.vaeb.at
Versicherungsanstalt für Eisenbahnen und Bergbau (VAEB) created a
telemedicine solution that captures key patient data via cell phone

Mobile services operator harnesses its data to predict churn, enable
more effective campaigns, and improve the customer experience
43
Implemented an information management and analytics solution to
synthesize and analyze streams of data from call detail records, text
messages and customer location information from GPS-enabled cell
phones
Analyzed usage data, subscriber trends and services mixes against
delivery costs to identify the most profitable product lines and
customers
Created additional revenue stream through new offerings based on
data analysis
Boosted business intelligence and analysis window for business
users by 100 percent, 12 hours to 24 hours
Increased revenue as a result of higher customer conversion rate
through targeted marketing campaigns
Process detailed records based on mobile
transactions in near real-time and perform
data analysis to predict which customers
might leave for a competitor
Identifying, developing and delivering
innovative and relevant offerings as rapidly
as possible to retain and attract customers
The company's existing system limited its
ability to synthesize and analyze the growing
volumes of data rapidly and prevented it from
gaining deep insights on KPI
Challenges
Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials, published October 24 2012, last updated August 2, 2013; http://www.ideacellular.com/

CEMEX transformed its value chain by putting the customer at
the center of the transaction and charging for delivery delays
44
Implemented an electronic delivery-scheduling and tracking system
where drivers use mobile devices to optimize their delivery
schedules, electronically track waiting times, and confirm deliveries
Integrated mobile devices with the company’s central system so that
wait times automatically initiate an added customer charge
Implemented the ability to generate an electronic invoice as soon as
the customer provides an electronic signature on the mobile device
and the central system receives the confirmation
Reduced fuel costs while enabling delivery drivers to make 68
percent more shipments per day, from 2.5 to 4.2 shipments; the
increased driver productivity was realized by charging for delays,
which helped reduce delay frequency and duration, and by taking
advantage of the system’s delivery scheduling feature
Received payments more quickly with faster invoicing abilities
Provide an efficient way to record delivery
times and account for delays caused by
customers
CEMEX UK is a subsidiary of the building-materials enterprise CEMEX S.A.B. de C.V., which
employs more than 40,000 people worldwide. The company manufactures and distributes cement
and concrete, asphalt, roof tiles, mortar, masonry and railway sleepers. CEMEX sells its products
in more than 500 locations nationwide and generates more than GBP 1 billion in sales revenue
each year.
Company’s drivers had to wait at customer
facilities before unloading their shipments;
CEMEX UK estimated that it lost $5,000
USD for every 45-minute delivery delay
Customers often withheld payment until
the company provided an invoice with
proof of delivery
Challenges
Source: Institute for Business Value, Mobile Enterprise Study. IBM client reference materials, published July 6, 2012, last updated January 7, 2013; http://www.cemex.co.uk/

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