In Search Of The Mobile Enterprise

The new mobile business model — with anytime, anywhere transactions and a blurring of lines between corporate and individual — can make your IT organization feel like it has lost control. For all the good that comes with mobilizing your workforce, there are challenges: maintaining security and compliance, managing multiple device platforms and addressing complex mobile requirements.

You can’t throw a rock these days without hitting a new smartphone or tablet device.

Last week, it was the iPhone 5 and the new Kindle Fire HD. Tomorrow, HTC’s expected to introduce some new mobile products.

And Apple still has yet to introduce the Apple “mini” iPad, currently expected in October.

The move to mobile computing raises some intriguing questions about the nature of work. What is it? Where does it take place?

As someone who’s worked their entire career at IBM, I can certainly attest to the idea that here, increasingly, work is not a place you go but what you do.

I’ve spent nearly nine full years working from my home, and several of those years, spent at least a week a month living (and working) in airplanes.

As the IBM “Services for the Mobile Enterprise” team recently observed, the new workplace is now undeniably a mobile enterprise.

CIOs On Mobile: 66% Plan To Increase Mobile Investments in 2012

Which makes it no big surprise that 66 percent of CIOs plan to increase investments in mobile services in the next year.

And of course, there’s the “BYOD” movement to contend with (“Bring Your Own Device”), with employees expecting whatever device they have to fit into their corporate environment.

This new mobile business model, with anytime, anywhere transactions and a blurring of lines between corporations and individuals, can send IT folks into a conniption fit.

Despite all the goodness — for employees, management, and most importantly, the bottom line — there are challenges that accompany this mobilization of the workforce.

Issues such as maintaining security and compliance.  Managing multiple device platforms.  Addressing complex mobile requirements.

IBM recently released this interactive infographic that has some interesting statistics I thought worthwhile sharing here.

To start, 35 percent of the world’s total workforce is expected to be mobile by 2013.

Here in the U.S., up to 72.2 percent of workers are already plugged in remotely.

This year, some 43 billion mobile applications are expected to be downloaded.

And yet on average, mobile workers spend only a total of 28 minutes a day on technology distractions…there’s too much work to do, otherwise!

The Mobile Upside: 240 Extra Hours Worked Per Worker Per Year

And here’s the upside bonus for you managers: Such mobile workers work an average of 240 extra hours per year.

But as the infographic observes, with those benefits come expectations.

This new mobile generation of workers demands flexibility. Today’s employees expect to use their own devices and applications at work to access information and social networks at will. They even value this flexibility more than a higher-paying salary (Can you say “Mobile enables work/life balance?”).

Cisco’s Connected World Technology Report in 2011 found that 66 percent of workers said they would take a job with less pay and more flexibility in device usage, access to social media, and mobility than a higher-paying job without such flexibility.

Mobile Presents New Challenges

So, as businesses work to embrace these new productive mobile work habits, they must also face the requisite challenges asscoated with the growing number of devices, networks, and applications. Enterprises need a solution that intertwines cross-platform compatibility, security, cost management, compliance, and the inevitable complexity.

By way of example, 21 percent of mobile workers say they have experienced a security issue related to their smartphone (lost, stolen, hacked, virus) in the last year alone.

Fifty-four percent of enterprises rate security and authentication as one of the two top concerns for their mobile environments.

Seventeen percent say they need to meet compliance/regulatory requirements in mobile environments.

And yet 45 percent of IT departments say they aren’t prepared policy- and technology-wise to handle this more borderless, mobile workforce.

Bridging Your Mobile Gap

To overcome those challenges, enterprises need an experienced partner with a strategy capable of spanning the distance between mobile advances and existing infrastructures.

Those early adopters are leaping ahead: They’re already experiencing 20 percent cost savings and productivity improvements.

And 75 percent of CIOs say mobility solutions are a top priority of theirs for 2012.

On the mobile front, IBM workers are walking their own mobile talk, connecting to 10 different networks located around the world, and with 100K+ of them connecting using their own handheld devices (using at least five supported device platforms).

IBM’s own app store, Whirlwind, offers over 500 applications and was recognized by CIO Magazine with the “CIO 100 Top Innovation Award.”

All of that experience IBM has had with its own mobile enablement has informed and shaped the company’s customer-facing mobile initiatives, both through product development and through the introduction of its mobile services offerings.

IBM can help your staff develop the right strategy and governance and deliver a wide range of mobile enterprise services to create a more productive, connected workplace.

You can read about some of those offerings here.

Back To School Goes In For Analysis

Jay Henderson told us in his recent interview that IBM would soon be building upon its Holiday Benchmark e-commerce trend analysis for the holiday shopping period with the addition of a “back-to-school” analysis.

Alas, Rodney Daingerfield is no longer with us, but the IBM Benchmark can be your roommate this go ’round, the only analytics-based, peer-level benchmarking solution that measures online marketing results from the web sites of more than 500 leading U.S. retailers.

Here’s a snapshot of the back-to-school trends:

• July and August Online Sales: Overall sales for July increased more than 11 percent over July 2011 while August slowed with sales up 3.9 percent compared to last year.
• Social commerce: In July, shopper referrals to retailer sites from social networks generated 1.6 percent of all sales, an increase of 25.1 percent over last year. This trend continued in August reaching 1.8 percent, an increase of 69.7 percent over the previous year.
• Mobile commerce: Mobile commerce remains strong with sales from mobile devices reaching 15.7 percent in July and 15.4 percent over the month of August.

As for vertical industries the following categories experienced success over this timeframe:

• Home goods: In July online sales grew by just over 30 percent and 25.5 percent in August with consumers shifting some back to school purchases toward the home. Over this period mobile sales also thrived, reaching 19.1 percent in July and topping out at 20.1 percent in August.
• Department stores: Online sales grew 22.1 percent in July and 28.7 percent in August. Over this period mobile sales were strong, hitting 19.2 percent in July and 18.9 percent in August
• Apparel stores: Online sales were up 9.2 percent in July and 9.8 percent in August. Over this period mobile sales reached 15.1 percent and 16.4 percent in August. Apparel stores also experienced strong social commerce with shoppers referred to their sites from social networks generating 1.4 percent of all sales in July and 2.2 percent in August, up more than 113 percent over 2011, more than any other industry.
• Office Supplies/Electronics: Online sales grew by 6.3 percent in July while dropping by .92 percent in August. Mobile sales reached 5.7 percent in July remained steady in August a 5.9 percent.

Part of IBM’s Smarter Commerce initiative, the IBM Benchmark provides intelligence on how consumers are responding to the products and services being offered to them.

With these insights CMOs and teams gain deeper insight into each customer which they can use to present personalized recommendations, promotions and other sales incentives across the wide variety of channels—including social networks and mobile devices.

What’s It All Mean?

While U.S. consumers shopped this July and August, they were not buying clothes and notebooks for their children but rather items for the home.

According to findings, the biggest retail gains this back to school shopping season came from home goods purchases which increased 30 percent in July and more than 25 percent in August over their respective months in 2012.

While experts speculate that consumers were holding off on back to school purchases to eye the choices of their peers, social networks appeared to drive purchases with social sales increasing 69.7 percent. 

The social influence was especially apparent when it came to apparel, where shoppers referred to online stores through social networks generated a 2.2 percent of all sales in August, an increase of more than 113 percent over 2011.

Mobile commerce also continued to grow with sales increasing 15.7 percent in July and 15.4 percent in August. For home goods mobile sales reached a high of 20.1 percent.

The growing influence of both mobile and social media further validates the need for a Smarter Commerce approach that helps retailers attain, understand, and act — in real-time — on deep insights about their customers in order to meet the unique needs of each.

“When I speak to executives at the leading companies, one of the discussions that continues to come up most frequently is around harnessing big data and their efforts to try and understand how to take all the noise and word of mouth that is being generated and make sense of it,” explained W. “RP” Raghupathi, Professor of Information Systems, School of Business, at Fordham University.

“Today, with so many consumers shopping and sharing their opinions online, we are seeing more and more retailers tap into the power of sophisticated analytics technology to help them react faster to evolving trends and customer needs.”

Read this blog post from IBM’s Mike Rhodin (or better yet, watch the video interview we conducted with him in Madrid this past May) to learn more about “insight-driven” computing and IBM’s Smarter Commerce initiative.