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Mobile Enterprise Applications and Business Models Mobile Enterprise Applications and Business Models
Tekes Review
Tekes Review 231/2008
The Finnish Funding Agency for Technology and Innovation Kyllikinportti 2, P.O. Box 69, FIN-00101 Helsinki, Finland Tel. +358 1060 55000, Fax +358 9 694 9196, E-mail:
[email protected] www.tekes.fi
April 2008
ISSN 1239-758X ISBN 978-952-457-415-0
231/2008
Mobile Enterprise Applications and Business Models
Tekes Review 231/2008 Helsinki 2008
Tekes, the Finnish Funding Agency for Technology and Innovation Tekes is the main public funding organisation for research and development (R&D) in Finland. Tekes funds industrial projects as well as projects in research organisations, and especially promotes innovative, risk-intensive projects. Tekes offers partners from abroad a gateway to the key technology players in Finland. Tekes programmes – Tekes´ choices for the greatest impact of R&D funding Tekes uses programmes to allocate its financing, networking and expert services to areas that are important for business and society. Programmes are launched in areas of application and technology that are in line with the focus areas in Tekes’ strategy. Tekes allocates about half the financing granted to companies, universities and research institutes through the programmes. Tekes programmes have been contributing to changes in the Finnish innovation environment for twenty years.
Copyright Tekes 2008. All rights reserved. This publication includes materials protected under copyright law, the copyright for which is held by Tekes or a third party. The materials appearing in publications may not be used for commercial purposes. The contents of publications are the opinion of the writers and do not represent the official position of Tekes. Tekes bears no responsibility for any possible damages arising from their use. The original source must be mentioned when quoting from the materials.
ISSN 1239-758X ISBN 978-952-457-415-0 Cover image: Lehtikuva Page layout: DTPage Oy
Abstract
Mobile Enterprise Applications’ rise in popularity is a result of technology evolution and the appearance of concepts such as SaaS, Software as a Service. This review focuses on SaaS and multitenancy applications. Nevertheless, we should not forget the other activities towards the same enterprise mobility goal. Several software companies have released or are about to deliver their own product or version suitable for mobile use leveraging their existing base and software. The existing offering and most potential new candidates will be studied along with the status of application mobility on different industries.
The purpose of the study is to find out how enterprises can survive the process of going mobile with SaaS and how software and other providers can make business out of it. The pros and cons are discussed in the study as well as the process and quality issues related to the SaaS model as the best base for enterprise mobility. Management of mobile users, applications, and terminals open a new can of worms, which must be carefully handled from the beginning. The review will indicate the key drivers of enterprise mobility and also looks into the technology and usability convergence issues.
Table of Contents
Abstract 1
Introduction . . . . . . . . . . . . . . . . . . . . . . . 1.1 Background . . . . . . . . . . . . . . . . . . . 1.2 Purpose of the Study . . . . . . . . . . . . 1.3 Research Challenge . . . . . . . . . . . . . 1.4 Scope, Assumptions, and Limitations . 1.5 Study Plan and Coverage . . . . . . . . . 1.6 Related Definitions . . . . . . . . . . . . . .
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SaaS and Service Based Applications . . . . . . . . 2.1 Pros . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Cons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Manageability . . . . . . . . . . . . . . . . . . . . . . . 2.4 Deployment of SaaS vs. Traditional Software 2.5 Acquisition of SaaS vs. Traditional Software . 2.6 Mobile SaaS . . . . . . . . . . . . . . . . . . . . . . . .
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SaaS Status and Visions . . . . . . . . . . . . . . 3.1 Application Status . . . . . . . . . . . . . . . . 3.2 Convergence. . . . . . . . . . . . . . . . . . . . 3.3 Usability . . . . . . . . . . . . . . . . . . . . . . . 3.4 Technology . . . . . . . . . . . . . . . . . . . . . 3.5 Connectivity . . . . . . . . . . . . . . . . . . . . 3.6 Mobile Enterprise Enablers and Drivers.
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4. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Tekes Reviews in English . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
1
Introduction
“The enterprise is going mobile. It is no longer a question of if but when and how quickly the business can adapt to the reality of the mobile enterprise,” said Lionel Lamy, research director, European Software and Services, IDC, October 2007. Today, a lot of workflows for the employees on the road are still paper-based or based on off-line materials on one’s laptop, and therefore lack in automated processing and backend integration. With the new small, lightweight and inexpensive mobile devices and the increased coverage of wireless data networks, mobile solutions have become applicable for a broad usage. Real-time access to enterprise data and applications for the mobile work force, such as sales representatives or service technicians, will become a crucial factor for the enterprises in the future.
from the requests coming from the players in the industry. The goal of the study was to find out the offering on the enterprise mobile applications, the most potential areas where the applications were and could be used, the service and business models, and drivers within the industry.
1.3 Research Challenge The mobile industry, and the enterprise mobile industry as a part of it, is in a hectic development phase. New concepts, technologies, and applications are introduced on a daily basis. Therefore, the main focus of the study was kept in the near future. Too long time predictions on a rapidly moving industry like this one are not credible and serve no one.
1.1 Background
1.2 Purpose of the Study
The matter of subject is a combination of both legacy and new technologies. It is not a new technology as such. The various players on industry have introduced their own approach and the actual implementations vary from dedicated clients to streamlined Web interfaces suitable for mobile use. The most opportunistic solutions are made by the marketing department without changes to the applications.
The study was performed in order to provide up-to-date information about the enterprise mobile industry and SaaS concept for both developers and enterprises utilizing the solutions. The focus of the study, service based solutions, resulted
Technology is evolving at the same time. The browsers are becoming more applicable to small screen and mobile use and at the same time mobile devices offer better usability in the form of larger displays and touch screen. The newer tech-
Tekes1 VAMOS programme2 decided to run a study on the subject of “Service based Mobile Enterprise Applications and the related business models”. This report summarizes the subject. The study was carried out in the end of 2007.
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Tekes, the Finnish Funding Agency for Technology and Innovation is the main government financing and expert organization for research and technological development in Finland. VAMOS, Value Added Mobile Solutions program of Tekes focuses on implementing wireless technology solutions widely regardless of business area and helps to launch successful commercial mobile products and generate lucrative businesses in that field.
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nologies such as electronic paper are still under development. Technology development will have a central role in the process of mobilizing the applications. The solutions need to base on standards, industry standards at least.
1.5 Study Plan and Coverage
1.4 Scope, Assumptions, and Limitations
Study was performed mostly as a desktop study utilizing literature, publications, and the Internet. In addition, two interviews6 were made.
The scope of the study is limited to B2B applications even though the limitation is not always clear. Especially, the SMEs3 may use similar applications to consumers. In addition, some B2B applications, such as community services to enterprises, will have consumer interface as well. B2B2C type of applications may be referenced shortly in this study. The focus is on the service-oriented solutions. The SaaS (Software as a Service, see definition at 2.6) model will most likely offer the best hypothetical concept for the study at present. In case other concepts emerge, they will be handled case by case. Multi-tenancy (see definition at 2.6) is studied as the most viable basis for the service-oriented solution. Other concepts will be respected as well. There are also adjacent technologies such as RFID that have influence in the mobile solutions. The value of these will be studied briefly. Mobility as such produces a lot of added value. As soon as the technologies emerge, the services such as Mobile Positioning4 and Location-based services5, and their applications will play a central role in the development of business opportunities related to Mobile Enterprise.
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The study was planned to be more like a snapshot of the situation than a thorough research on the subject of SaaS Mobile Enterprise Applications and Business Models.
1.6 Related Definitions 1.6.1 SaaS Software as a service (SaaS) is a software application delivery model where a software vendor develops a web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet. Customers do not pay for owning the software itself but rather for using it. They use it through an API accessible over the Web and often written using Web Services or REST. The term SaaS has become the industry-preferred term, generally replacing the earlier terms Application Service Provider (ASP) and On-Demand. [i]
1.6.2 ASP An Application Service Provider (ASP) is a business that provides computer-based services to customers over a network. Software offered using an ASP model is also sometimes called On-demand software or software as a service (SaaS). The most limited sense of this business is that of providing access to a particular application program (such as medical billing) using a standard protocol such as HTTP. [ii]
Small and Medium-size Enterprises Mobile positioning is a technology used by telecommunication companies to approximate where a mobile phone, and thereby also its user, temporarily resides. More properly segregated the term applies more to a locating process rather than a positioning process. Such service is offered as an option of the class of location based services (LBS) [Wikipedia]. Location Based Services (LBS) are wireless ‘mobile content’ services, which are to provide location-specific information to mobile users moving from location to location. [Wikipedia]. Vesku Paananen, Microsoft Oy and Jari Ala-Ruona, Movial Oy
1.6.3 On-Demand On-Demand refers to a service or feature, which addresses the user’s need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front financial investment and instead participates in a “pay as you go” plan - a model which makes on-demand services frequently more affordable for users. An ASP typically delivers the On-Demand software. This type of service offering is also frequently referred to as Software as a Service. [iii]
1.6.4 Multi-tenancy Multi-tenancy refers to the architectural principle, where a single instance of the software runs on a software-as-a-service (SaaS) vendor’s servers, serving multiple client organizations (tenants). Multi-tenancy is contrasted with a multiinstance architecture where separate software instances (or hardware systems) are set up for different client organizations. With a multi-tenant architecture, a software application is designed to virtually partition its data and configuration so that each client organization works with a customized virtual application instance. [iv]
1.6.5 RFID RFID is short for Radio Frequency IDentification, a technology similar in theory to bar code identification. With RFID, the electromagnetic or electrostatic coupling in the RF portion of the electromagnetic spectrum is used to transmit signals. An RFID system consists of an antenna and a transceiver, which read the radio frequency and transfer the information to a processing device, and a transponder, or tag, which is an integrated circuit containing the RF circuitry and information to be transmitted. [v]
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RFID is not mobile as such, but could be used in several mobile applications as an information source.
1.6.6 NFC Near Field Communication or NFC, is a shortrange high frequency wireless communication technology, which enables the exchange of data between devices over about a decimeter distance. The technology is a simple extension of the ISO 14443 proximity-card standard (contactless card, RFID) that combines the interface of a smartcard and a reader into a single device. An NFC device can communicate with both existing ISO 14443 smartcards and readers, as well as with other NFC devices, and is thereby compatible with existing contactless infrastructure already in use for public transportation and payment. NFC is primarily aimed at usage in mobile phones. [vi]. For instance with Nokia 6131 NFC phone you can have your credit card, travel card and loyalty card in your phone and use it as a multi-purpose smart card.7
1.6.7 3G 3G is an ITU specification for the third generation (analog cellular was the first generation, digital PCS the second) of mobile communications technology. 3G promises increased bandwidth, up to 384 Kbps when a device is stationary or moving at pedestrian speed, 128 Kbps in a car, and 2 Mbps in fixed applications. 3G will work over wireless air interfaces such as GSM, TDMA, and CDMA. The new EDGE air interface has been developed specifically to meet the bandwidth needs of 3G. [vii]
http://www.forum.nokia.com/info/sw.nokia.com/id/b4849578-9382-4e6e-b1c5-a1d28d754564/Nokia_6131_NFC_Tech nical_Product_Description.html and http://wiki.forum.nokia.com/images/6/6b/Nokia_NFC_white_paper.pdf
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1.6.8 HSDPA High-Speed Downlink Packet Access (HSDPA) is a 3G (third generation) mobile telephony communications protocol in the High-Speed Packet Access (HSPA) family, which allows networks based on Universal Mobile Telecommunications System (UMTS) to have higher data transfer speeds and capacity. [viii]
1.6.9 Web 2.0 In studying and/or promoting web-technology, the phrase Web 2.0 can refer to a trend in web design and development — a perceived second generation of web-based communities and hosted services (such as social-networking sites, wikis,
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blogs, and folksonomies) which aim to facilitate creativity, collaboration, and sharing between users. The term gained currency following the first O’Reilly Media Web 2.0 conference in 2004. Although the term suggests a new version of the World Wide Web, it does not refer to an update to any technical specifications, but to changes in the ways software developers and end-users use webs. [ix] According to Tim O’Reilly: “Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as platform, and an attempt to understand the rules for success on that new platform.”[x]
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SaaS and Service Based Applications
The following quote from OpSource’s marketing text summarizes the key points of SaaS model both on functional and business levels. SaaS does not only change the way the applications are used but also the earnings logic of the services. The latter will be discussed later in this document. “Software as a Service and Web Companies: Thinking of Managed Hosting? Think Again. Managed hosting and ASP delivery are so yesterday. Today, Software-as-a-Service and Web 2.0 success is all about creating innovative applications and services, and selling and marketing them like a Web company – not about building infrastructure and operation staff.” [xi] “The concept of ”software as a service" started to circulate in 2000/2001 and is most notably associated with Tim O’Reilly’s Essay on the “The Open Source Paradigm Shift”[xii]." [xiii] The predecessors of SaaS are ASP, Web Apps, Client-Server, and even desktop applications. SaaS leverages especially ASP but provides better functionality and management of the customers simultaneously using the software over the Internet. SaaS applications leverage specifically web technologies such as browsers in a way that makes the applications Web-native. SaaS typically relates to B2B software and serves best simple applications whereas more complex applications typically require customized solutions. “SaaS has a distinct meaning that’s essential to understanding its role in your application portfolio. With SaaS there’s just one code base for the software, used by all customers, in what’s called a multi-tenant architecture. While the software might be configurable by users to their individual needs, the code itself is the same for all and is not customizable for any individual customer. Any
enhancements made based on one customer’s requests immediately become available to all customers. So forget competitive advantage or differentiation based on the software itself. The underlying data model and system architecture of SaaS is also not customizable. The advantage for the vendor is that less time is spent managing compatibility and upgrades across several versions of the software. It also spends less to support customers, as they all use the same version and they don’t run it on their own equipment." [xiv] The status of SaaS adoption of software is typically presented by the following maturity levels. The quotation is from Dharmesh Shah [xv]: • Level 0 (Chaos): Every time you add a new customer, you add a new instance of the software. If the customer needs something specific, you change that software instance. Each customer is essentially running on its own “version” of the software. Yuck! • Level 1 (Managed Chaos): Every customer runs on the same version of the software and any customizations are done via configuration. But, you still have different instances for each customer (their own website, their own virtual server, their own physical server, etc.). • Level 2 (Multi-Tenant, High-rise): You’ve got all customers running on a single version of the software, and they’re all running essentially on one “instance”. The good news is that you’re getting the benefits of multi-tenant (sharing resources across customers). Even better is that you’re not writing custom code for each customer — everyone essentially runs on the same version. The big challenge is that as you add more floors to your building (to stretch the analogy a bit), it gets more and more expensive.
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And, there are limits to how high you can build to accommodate a large number of tenants. • Level 3 (Multi-Tenant, Build-Out): This is when you’ve got multi-tenant, single version of the software model. But, you can scale-out (add buildings at will). This is optimal because instead of letting the architecture decide how many tenants you put into a building, you can let the economics decide. And yes, there is an optimal number of tenants per instance, and this number varies on your situation. • Level 4 (Utopia): This is like Level 3, except you’ve figured out an efficient way to run different versions of the software on different “instances”. You’re doing this not because you’re writing custom code for a customer, but because you want to run different code for different customers — to try things out. The best example is having an “early adopter” instance where customers that want to use your latest and greatest features can do so. Helps them. Helps you. Helps everyone. As long as you’re efficient about release management. (Note: This last one is my own fabrication and wasn’t part of the original framework referenced above)." All technologies and architectures have pros and cons and the same solution really does not fit all. The following pros-cons pondering relates to mobile enterprise and SaaS when applicable. Especially the management issues need to be taken into account when starting to deal with hundreds of users and their mobile equipment. “The rapid increase in businesses adopting hosted software is an indication that the ”Pros" are outweighing the “Cons” for a growing number of companies. To help compete in a global market, SMBs require the resources that have traditionally been available to only enterprise companies. Hosted software—especially integrated accounting/ERP, CRM and eCommerce suites—provides this resource to them at an affordable price. So no longer are we in a wait and see phase—we’re now in a “go for it” stage." [xvi] The comparison is a mixture from several sources without identifying the individual sources.
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2.1 Pros The pros of SaaS collected from various sources are • More flexible approach to acquiring applications • Flexible contracts, possibility to pursue a “try-before-you-buy” strategy • Easy deployment and faster implementation, because there’s no on-premise deployment • Ongoing maintenance, upgrading the software automatically for customers on a regular schedule • Zero in-house maintenance, end user support and administration • Fewer bugs (because having one code base reduces the complexity that can lead to errors) • Managing both the software and hardware components of the application • Easier access to current technology (because changes are made just to the one code base) • Accessibility. Hosted software can be accessed from any Web browser around the world. • Network issues such as redundancy, data backup and disaster recovery planning • Lower total cost of ownership (TCO). Hosted software carries a set price per user per month. It is typically far less than buying, installing and maintaining software on the site • Economy of scale gives SaaS providers the ability to deliver services very cost-effectively • Scalability for large numbers of simultaneous users, maintain performance levels and uptime as your organization grows and the volume of data stored expands over time • Risk mitigation: SaaS vendors theoretically assume the risks of developing, maintaining, and delivering an application. • Predictability: Another big benefit is that cost, staffing requirements, and levels of service all become more predictable • Business focused IT high-impact services that add value to the business.
2.2 Cons The following lists the cons collected from the same sources as the pros above: • Applications that are too close to the core of the business are too critical for the operation of the company • Functions the company is looking for are so key to company’s operations that they must be owned • To much integration to the rest of the systems • Limited extensibility and scalability • Some hosted applications are built on “single-tenant” architecture. They will encounter many of the same cost problems experienced with traditional software • The same standard product for all customers without the possibility to adapt to the company’s business • Outages. The presence or absence of a guarantee based on a good SLA on uptime should be an element considered when selecting an on-demand provider. • Scale, today most SaaS vendors are aiming for the SMB market, and SaaS applications may not scale to tens of thousands of concurrent users. However, this will likely change as SaaS implementations evolve • Product maturity may be questionable.
2.3 Manageability Special attention needs to be paid on the management issues of SaaS solutions. The management plays a central role in the whole setup and use of the SaaS application. A SaaS application may have hundreds or thousands of customers, each of which potentially has a different customer profile parameterized either by the service provider or by the customer itself. Even though the customers are entitled to make their own parameterization to some extent, they need to be supervised and the software needs to provide sufficient functionalities and tools for it.
People i.e. the users of the SaaS application. A typical solution for user management is that the service provider has assigned one or more master users for the customer. The master users have the right to add new users to the system. The system needs to be fault-proof so that the system consistency is not put in danger at any time by adding new users and user rights to the system. Access rights do not only limit access to the system but also act as the basis of the service management allowing and denying access to the parts the customer has paid for or the user has access to. The management of the access rights is of great importance in case the users are mobile and the mobile terminals may be stolen or accessed by a non-authorized person. The security issues need to be covered thoroughly in cooperation with the security specialists. Equipment, user terminals will have differences based on their hardware and software. The terminals need to be identified for to provide correct data in the correct format. The servers will have differences in hardware and software versions, but more important are the access rules and for instance load balancing within the server fleet. Network availability and bandwidth dictate the use of the application. Under good network conditions a large screen terminal standard browser serves well, but as soon as the bandwidth drops down and the mobile phone is not he latest model the simple e.g. SMS based user interface may be the only viable solution. The software needs to be able to dynamically manage and adjust the user interface according to the actual use case.
2.4 Deployment of SaaS vs. Traditional Software There are several differences between the traditional distribution of applications and the SaaS model. One of the major differences in SaaS is that the software and its maintenance will remain on the premises and on the hands of the provider
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at all times. This results in better management and cost efficiency throughout. The SaaS solutions typically provide a long-term relationship, which results in continuous earnings to the system providers. Even though the customer plans to use SaaS, he needs to do sufficient requirements specification derived form the business strategy and goals. The service provider on the other hand needs to understand the requirements of the whole customer potential in order to be able to provide the standardized solution that can be parameterized for the various needs. The real business value is what matters to the customer. Therefore, it is essential for the service provider to possess knowledge of the line of business in question. The customer expects similar or even better response to their solution than what they already have experienced with the on-premises applications. The software provider that is already on the market with an ASP or packaged software should avoid the danger of selling the same old software under the term of SaaS without making it parameterized and multi-talent in every way. The cost of developing SaaS is definitely higher than providing software on customer’s premises. The cost drivers are more complex programming and testing. The final result will be shared with several customers. The specification and programming differs from the ones of packaged, tailored, or any other single-customer closed application. The keywords are multi-tenant and parameterization. It is a big change of mindset and programming culture. The database design and management of multiple customers and users simultaneously could make the design of the software a challenge. Testing is always crucial but even more so with SaaS. The changes will be available immediately after launch for all customers. So will be the errors. If the software company has already delivered packaged software they are familiar with the strict testing rules. Companies that have provided
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customized solutions have enjoyed a bit more flexible testing standards. Even though a change in the software can always be called back, the quality and service level of a SaaS application with multiple active customers requires extreme care and good practices. Part of the deployment work is moved from customization to parameterization. This requires a set of new skills and especially when moving to mobile applications the dispersion of equipment and operation conditions pose new challenges to guidance and management. The customization is moved from customer specific code to customer specific parameters that have to be tuned according to the needs of the solution. The most advanced SaaS applications leave the parameterization to the customer. That may be the only way if the customer base is hundreds or thousands like for instance with SalesForce.com. The deployment phase consists of specifying the users their right to the system, entering the user data in the system, and training. The users of the software should not see the difference.
2.5 Acquisition of SaaS vs. Traditional Software The business benefits for the customer are for instance faster time-to-value, lower total cost of ownership, better cost management, and increasing value over time through ongoing maintenance and support. From the software acquirer point of view there are differences especially on the cost structures. “Ownership costs are typically less — as much as 30% lower for a typical CRM installation, according to McKinsey & Co analysis. Costs should drop even faster for commodity services such as e-mail and messaging, which may soon be offered at prices so low that the traditional licensing model will be uneconomical.” [xvii] The monthly costs stay on the same or sometimes increasing level throughout the lifetime of the solution. On the other hand, there is no need to lock down to the same solution if the prices or the quality of the service do not
satisfy. Compared to an investment in an on-premises system, which typically are for three to five years, the SaaS model gives more flexibility and a possibility to adjust the services according to the actual needs at any time. The more complex the systems are the more difficult the switch over from one system to another is even if SaaS is in question. Run-time costs are lower for the customer also because most of the operating cost, upgrade costs, and support are for the most part included in the periodically lump sum or transaction based fee, whatever the earning logic of the provider is. Instead of each customer having to pay for these costs separately, the SaaS provider leverages these costs across all customers, significantly reducing the cost of ownership for each customer.
2.6 Mobile SaaS The mobile ecosystem contains a number of moving parts, including carriers, devices, firmware versions, and back-end data sources, and of course, the Internet. A reliable and practical solution to the mobile complexity is the SaaS model. Web-based SaaS has gained significant success during the past few years. Almost every major software vendor now has application versions available to clients for a monthly service fee.
The goal of Mobile SaaS is similar; to remove complexity by providing a service for a flat monthly fee. For businesses running on handheld devices, the value proposition of SaaS is natural. IT executives can concentrate on supporting the right business processes for the mobile worker instead of dealing with software issues. An addition to the existing applications, there is a mobile middleware component that is responsible for managing the applications, users, and message flow. In the SaaS model, that will be the responsibility of the service provider. The device maintenance is one of the most cumbersome issues, which again will remain the responsibility of the provider. Mobile SaaS can provide the mobile middleware and adapter components in a multi-tenant, hosted environment, eliminating the need for enterprises to procure, implement, test and maintain those components. The final component, the client application running on the device, can also be hosted and is available for over-the-air download by the end user. Mobile SaaS can offer enterprises the ability to rapidly test the validity of mobile applications and devices without the need to procure, test and deploy a complicated mobile infrastructure.
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3
SaaS Status and Visions
There are several applications and business areas that are waiting for the technology and practices to mature for mobile use, such as field force management and CRM. Some solution already exists for instance for the internal communication via e-mail and calendar sharing, but due to the lack of standards the solutions are more or less tailored-like although serving individual purposes relatively well.
3.1.1 Vertical Applications
This chapter draws a line from existing application status to technology and practices convergence, to the drivers and enabling of future enterprise mobility.
Horizontal applications are by definition used independent of the industry. Some software packages are listed under several horizontal categories, which makes one wonder what actually has bee mobilized. Is it the browser user interface only or is there some specific mobility innovation in place? The answer lies in a further case-by-case study to which this study couldn’t reach. (Table 2)
3.1 Application Status The application status overview covers three kinds of applications: • Existing Business Applications, which may not yet have been mobilized, but there is potential. • Existing ASP / SaaS Applications. These applications and related business processes have probable need for mobile implementations. An ASP implementation already exists • Mobile Enterprise Applications, applications that already are mobile or have mobile interfaces. The summary is extensive but not fully comprehensive. It shows the various applications on the market as picked up on the Internet. There are no direct links to the applications or their providers. So the reader is welcome to search the Internet for more information on the applications listed.
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Table 1 summarizes the applications categorized on specific industries. Some of the same applications can be found also in the table of horizontal applications. The applications may or may not have industry specific offering.
3.1.2 Horizontal Applications
3.1.3 Development on Different Areas The utilization of mobile equipment and applications will spread out to several areas. This chapter summarizes the most potential areas from both provision and acquisition point of view. The agenda is to point out the most potential business opportunities for the companies wishing to produce software or other mobile enterprise offering. Manufacturing
The SaaS software delivery service has so many potential business advantages that on-demand applications are appearing across the manufacturing business model, coming from companies as small as start-ups all the way up to the sluggers of the software field [xviii]. Many of the ERP software are suitable for manufacturing applications.
Table 1. Vertical applications. Industry
Existing Business Applications
Existing ASP / SaaS Applications
Mobile Enterprise Applications
Manufacturing (supply chain)
Infor CRM Epiphany, Sockeye Solutions – Allegro, i2 Total Supply Management, Lawson M3, IBS, Adonix X3, C3 Solutions
Xactly, GS Innovate, E2Open, Kinaxis Rapid Response, SeeControl, Plexus Online, Sage
Astea, Syclo, Ventyx, Saratoga Pivotal Mobile CRM, Tuppas, Oracle, SAP
Warehousing
IBS, Scancode, Adonix X3, Kingston Development KBS, KCSI – SIMMS, Logistics Software – Warehousing Explorer, Done Logistics – FidaWare
Freedom Series/ ec21, NetSuite, Everest Software, Sage
Datex, SmartTurn
Wholesale Distribution Lawson M3, IBS, Adonix X3, Amplexus Advantage, Distribution One – V2, Activant, Integrated Systems Technology, Logistics Software – Warehousing Explorer
Freedom Series/ ec21, NetSuite, Everest Software, Sage
SmartTurn
Direct sales/ store delivery
i2 Total Supply Management, Lawson M3
MySAP Supply Chain Management, Everest Software
BelTek, IntegraSys, HighJump Software
Construction
Sage Master Builder, Digital Time Capture
Evoco, CTSpace, Causeway, Autodesk Constructware, Meridian Systems, Bricsnet, Zybertech, e-Builder, Lucernex, Project Village, Equipment Pipeline, Plan Express, Asite
@Road, Explorer
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Table 1. continues...
Industry
Existing Business Applications
Existing ASP / SaaS Applications
Mobile Enterprise Applications
Transportation
i2 Total Supply Management, RedPrairie – DigitaLogistix, Sterling Transportation Management System
CTSpace, LeanLogistics, Descartes, MarineCFO
Sybase iAnywhere, @Road, Syclo, Ventyx, Saratoga Pivotal Mobile CRM, Datex
Logistics
i2 Total Supply Management, Kingston Development KBS, KCSI – SIMMS, C3 Solutions, Appian Logistics, Done Logistics – FidaWare, RedPrairie - DigitaLogistix
Descartes, Amphire Solutions, Emerge Logistics
Sybase iAnywhere, Fujitsu mProcess
Traveling
WebSource Europe, Datalex, Juniper, OpenJaw Technology
RightNow Technologies, CyberShift EzRez Software, Avani Cimcon Technologies – CARMA, Concur, EtapOnline – Ulysse Travel & Expense
Other
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Autodesk Constructware (healthcare), Lucernex (healthcare), PointCross (upstream energy, pharmaceuticals)
Table 2. Horizontal applications. Existing Business Applications
Existing ASP Applications
Mobile Enterprise Applications
Communication
MS Office, Numerous other solutions
Google Apps, Apptix, Kyliptics Solutions - KiBS Business Suite
MS Office Mobile, Google Apps, Apptix, Kyliptics Solutions - KiBS Business Suite, Seven, Visto Mobile, RIM Blackberry Connect, GoodLink, Oracle Collaboration Suite, IBM WebSphere Everyplace Access, Sybase iAnywhere / Extended Systems, ProfiMail
ERP
Numerous companies and products including Microsoft - Navision, Oracle, Infor, IBS
Lucernex, BScaler, GS Innovate, NetSuite, RightNow Technologies, Plexus, Expandable, Bluewolf, Glovia Services, QAD
SAP Mobile Asset Management, (NetSuite), WM Data V10, Visma L7, Sysopendigia Enterprise, TietoEnator Lean System, Lemonsoft, MechSoft Matfox, Tuppas, Symbian S60 and Hansa World Enterprise for ERP
CRM
Microsoft Dynamics CRM 3.0 SAP Business ByDesign, NetSuite CRM+ Netsuite, Infor – Epiphany Salesboom.com, Infusion, RightNow Technologies, BScaler, Sage CRM, MySAP Customer Relationship Management, Oracle, GoXSell, Microsoft Dynamics CRM
Pivotal, NetSuite, Maximizer CRM -10, Saratoga Pivotal Mobile CRM, Tuppas, Entellium CRM - Entellium eMobile, Sage SalesLogix - Mobile Solutions, Salesforce.com - Mobile Accessibility, Onyx Software CRM
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Table 2. continues...
Sales Force Automation
Existing Business Applications
Existing ASP Applications
Mobile Enterprise Applications
Siebel CRM (Oracle), Microsoft Dynamics, SAP, FrontRange – Goldmine, Infor – Epiphany, Onyx, Pivotal, ACT!, Microsoft Dynamics CRM
Entellium, RightNow, Infusion, BScaler, Xactly, Oracle Siebel On Demand, Sage CRM
NetSuite, S60 mobile and Hansa World Enterprise for CRM, Sybase iAnywhere, Salesforce.com - Mobile Accessibility, Maximizer CRM 10, Saratoga Pivotal Mobile CRM
Corrigo, TOA Technologies, Service Power
Sybase iAnywhere, Click Software, Oracle Siebel Systems, Oracle E-Business Suite, SAP Mobile Asset Management, @Road, Astea, Syclo, Ventyx, BelTek, Abakus
Causeway, E2Open, GXS, Kinaxis Rapid Response, MySAP Supply Chain Management, Lawson M3, InfinityQS, Lean Logistics
Tuppas, Datex, Motorola Asset Management Solution
Field Force Automation
Supply Chain Management
Sockeye Solutions – Allegro, Infor, n.SKEP, Radcliffe – Synchronity, i2 Total Supply Management
Asset Inventory Management
i2 Total Supply Management, SeeControl, BScaler, Lawson M3, TriActive, Axxerion, Xassets, IBS, Freedom Series/ ec21, Adonix X3, Everest Software, KCSI – SIMMS Sage
Other
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NetSuite, Motorola Asset Management Solution, Datex, SmartTurn
For mobile applications, the challenge is to generate real value to the user of the manufacturing process. Manufacturing is not mobile as such, but the network and logistics related to the process relies on accurate timing and flawless availability of materials and parts. Warehousing
RFID of NFC technology and its applications provide probably the biggest changes in the warehousing technology in the near future. RFID brings a number of wireless solutions to logistics and warehousing. While these applications are wireless, they are not necessarily handled by mobile phones but rather by smart phones such as Blackberry or small computers providing a better user interface. Wholesale Distribution
Wholesale distribution software saves time and increases efficiency by automating the invoice process and tracking accounts receivable so that orders no longer slip through the cracks. It also allows customers to get current information in real time on their laptop screens. Company personnel are also seeing a reduction in the number of questions they have to address, since most potential questions are addressed on the order itself, which can be called up in its entirety with just a few keystrokes [xix]. Some of these applications can be delivered to mobile devices. Direct sales store delivery
When dealing with direct store delivery (DSD), time spent is of big importance. The key to a good system is allowing field representatives to deliver a maximum amount of products in the shortest time. There are two categories of consumer-packaged goods (CPG) manufacturing: perishable (or produce to order) and non-perishable (produce to inventory). Produce to order manufacturers, typically in the food and beverage sector, are dealing
with inventory that must be delivered immediately (such as bread, fresh fruit juice, milk or doughnuts) due to a very short shelf life. Many CPG/F&B manufacturers are implementing enterprise mobility solutions to address the specific issues they are facing. They are also improving data collection processes, wishing to reduce errors and to improve overall accuracy. In addition, they look forward to squeezing out any remaining inefficiencies inherited from paper based processes. [xx]. Data collection and data analysis can be directed to mobile devices. Construction
The software for construction industry deals typically with the following applications: accounting, project management, materials handling, document management and human resources. There is a need to mobilize at least some of these applications like project parts management and data collection. A small device is preferred to a large laptop on the construction site. There is potential for mobile enterprise applications for the field personnel. Transportation and logistics
Navigators and applications tied to the navigation help the companies optimize their transportation. The applications include real time traffic information, fleet management, and route optimization in real-time with the connection to the company database and computers. However, this is not necessarily done through mobile phones but through in-vehicle computers or navigators, which should be seen as a part of the enterprise mobile concept. These navigators also serve security purposes, as stolen cars can be traced through the navigators inside the vehicles. There is a real need for communication in transportation between the fleet of vehicles and the office. This communication can be handled through mobile phone with either speech, data, or as an M2M transaction.
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Traveling
Many of the SaaS travel software applications are on-line travel sites. For individual users the positioning and different services tied to it will be a major market in the future. These services can include city guides, maps, locations of restaurants, offices, sights, etc. The modern navigators already contain most of these functions but many users do not carry navigators with them whereas they always carry mobile phones. Communication
Google Apps is a new challenger for the MS Office in SME (Small and Medium Enterprise) communication software. It is a service from Google for using custom domain names with several Google products. It features several Web applications with similar functionality to traditional office suites, including: Gmail, Google Calendar, Talk, Page Creator, and Docs. The users also have access to GMail, Maps and Google calendar through their mobile devices. Windows Mobile 6 allows users to edit MS Office applications on their mobile devices. Symbian S60 is used for email and calendar, also for Oracle file systems and directories. Several companies are offering communications software with mobile connections. Typically these products allow the user to read email and handle calendar functions through mobiles. ERP
The SaaS ERP solutions are growing rapidly; even SAP has joined these suppliers. Microsoft will likely bring their ERP as SaaS to the market through partners, such as BT and NTT. There is a need to have a mobile connection to the company ERP systems and many ERP manufacturers already provide this connection. CRM
CRM is apparently the largest SaaS market at the moment. The CRM and ERP markets have simi-
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larities and many suppliers have products for both categories. The SaaS benefits and market developments are similar for both categories. ZDNet online magazine from UK predicts that SaaS CRM markets will grow over 100 % in 2008. Similar to ERP systems, many manufacturers understand the customers’ needs and provide a mobile connection to the company CRM system. With both ERP and CRM, the solution cannot be a straightforward copy of the system used on PCs. The mobile needs are most likely dedicated to selected functionalities providing real added value through mobile use. On the other hand, there will be providers that offer browser based solutions that do not satisfy the needs of use and utilization in practice. Sales Force Automation
In this market, SaaS vendors, fueled by strong usability and well-rounded SFA features, have closed the gap with traditional on-premise competitors and make up half the Leaders group [xxi]. There is a real need for mobile connectivity between the sales personnel and company office. The solutions generated for this market should not be too simplistic. There needs to be true value, such as provision of information related to the next customer or access to product information suitable for the customer in an easy and efficient way. The access should be made easy as well as the presentation of the data in a format manageable by the mobile device. Field Force Automation
According to Gartner’s Magic Quadrant for Field Service Management, 2007 the key vendor trends in the field service management (FSM) business applications market will be: “The migration of 30% of key application components (for example, workforce optimization, technician portal, asset monitoring) to SaaS sub-
scription model, rather than bought and deployed on premise, will happen by 2012. At least 50% of vendors will pursue a dual approach to wireless: offering their own wireless or multi-channel access gateways (WAG/MAG) in addition to more tactical partnerships with third-party providers. By 2010, the percentage of technicians with wireless access to a formal packaged FSM solution will increase from 5% to 18%. The addition of CRM functionality to field service solutions will be used as a way to enable field service technicians to capture sales leads, configure orders and market while on-site. A shift will move toward functionality to record, through a handheld device, customer satisfaction with products and services, in user demands of FSM products by 2010. Vendors will be forced to dramatically expand capabilities in the area of field service analytics to optimize the use of parts and adhere to service-level agreements." FSM has been almost the first mobile enterprise application area. The solutions have been simple, which actually is the requirement when thinking about the working conditions on the field. There is a need for new, innovative functionalities on that area. The integration to ERP or other services will most likely be needed.
chain), and distribution. They also need to share data with supply chain partners at an ever-increasing rate. While products from large ERP vendors like SAP’s Advanced Planner and Optimizer (APO) can perform many or all of these tasks, because each industry’s supply chain has a unique set of challenges, many companies decide to go with targeted best of breed products instead, even if some integration is an inevitable consequence.” [xxii] This fractured market provides possibilities for separate niche market applications for mobile connectivity. Asset Inventory Management
RFID technology will cause changes to the asset inventory management applications by bringing new wireless solutions to a wide range of industries. In order to track, maintain and improve systems that may be under-performing, the employees need to be connected to an accurate flow of continuous relevant information on the very machines that keep the company’s business moving. The technologies used in this field include bar codes and RFID, wireless infrastructure, and mobile computing. The goal is to relay information to and from the field force at the point of activity. This process results in improved productivity, reduced errors and validated work processes. All of which lead to further improvements in asset performance for the organization.
Supply Chain Management
“Supply chain management software is possibly the most fractured group of software applications on the planet. Each of the major supply chain steps composes dozens of specific tasks, many of which have their own specific software. … Some vendors have assembled many of these different chunks of software together under a single roof, but no one has a complete package that is right for every company. For example, most companies need to track demand, supply, manufacturing status, logistics (i.e. where things are in the supply
Other
The coming business slowdown can actually increase the adaptation of SaaS, as SaaS provides services that are cheaper than the traditional. For small companies software services are easier to introduce and keep, than buying new software. With faster adoption of SaaS, the organizations can avoid additional load on the IT department. On the other hand, enterprise mobile solutions may have to wait for both more mature technologies and a more stabile economic situation.
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3.2 Convergence Laptops are not hand-held, tablets are close to that, PDAs can be held with one hand. Phones have a small screen and a tiny keyboard. The situations on the field vary, one sits in a limousine with both hands free for viewing and typing, whereas the other is standing in the rain with a shovel in the other hand trying to answer questions posed by the field force system. The same solution for the equipment and user interface will not serve all. No matter what the use case is, the existing technology and usability are not sufficient for real enterprise mobile use, except for specific, tailored solutions. The term convergence is used to describe the process, which leads to the solution. The best parts of existing technologies must be leveraged to obtain the best practices and technologies for mobile enterprise. The following illustration describes in a simplified way the different variables related to the scope of the mobile enterprise applications.
The functioning mobile enterprise requires for several pieces to fit together. The winners on the mobile enterprise business are the ones that read the signals right and are patient enough to focus on solving the challenges piece by piece while waiting the industry to mature. The big players will dominate the game, but there definitely is room for several niches for Finnish companies, potentially in cooperation with the big ones.
3.3 Usability Usability and user interface are very important to the users. The usability of a terminal has several viewpoints. The simple one-hand one-key solutions may serve well in simple questions and answers interface such as SMS based solutions. The more functionality and choices are needed the higher the requirements for the design of the user interface. The standard browsers potentially equipped with the latest add-ons and graphics, function and serve well in complex applications. The users of the smart phones and PDAs need to
Two – hands needed – One – None SMS Client Dedicated HW
Fat Client Tuned-up Browser Standard Browser
Java
Flash
Laptop – Internet Tablet – PDA Smart Phone – “S60” – “S40”
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carefully pick the paths that are most essential for the operation in question. Actually, those paths should be specified for the user upfront. For software applications good usability saves money: it takes less time for the users to learn the functionality and use the applications. In some cases, applications are so difficult to use that they are disregarded by the user. If some team members do not use the standard application, the benefits of that application for the company drop dramatically. iPhone is a good example of new lucrative innovations. It is not the final solution but it is a move to the right direction in mobile handset user interface. You may argue that iPhone is not the world’s best mobile phone, but the users are happy with its usability and user interface. Other mobile phone manufacturers are already matching its usability and functions. There are other solutions under development by the major players such as the Nokia Internet Tablet and Windows Mobile Professional. The solutions directly inherited from PCs and laptops do not work in mobile use due to the limited size display and small keyboard. In order to get mobility to work there has to be a point where PC and mobile usability meet. “Handheld devices cannot be designed simply as copies of their desktop counterparts; they have smaller displays, trickier input mechanisms, less memory, reduced storage capacity, and less powerful operating systems. Understanding the specific challenges of technology on the move is the first step towards designing great products for handheld devices.” [xxiii] “Many usability problems related to developing Web resources for handheld devices are similar to those identified during the early days of Web development for PC computers.”8 Most of the challenges were related to the bandwidth, but overall performance was also a constrain that affected the design principles. Simplicity throughout was the best advice to all designers. 8
Mobility should not be seen as a separate island. It will solve some parts of the business processes and thus serves a wider context. All application should be easy to use and proactively guide the user through the paths of the application. With mobile applications this is even more important. The user must get as much context related support, semi-automated action, and for instance data push, instead of the need or browsing and searching for data. For instance the sales force automation might have a feature that provides information for the next customer meeting instead of the salesperson having to browse the intranet or CRM to collect the information.
3.4 Technology The technology is one of the enablers of mobile enterprise applications. New hardware brings faster processors with lower power requirements, more memory, faster data rates and better displays. New software applications bring out new services that can be easily used only with the new hardware innovations once carefully designed. These enablers and product ideas feed each other and when the time is right a new application emerges. The horizontal fields have their own needs and technologies, too. When these develop, for example through new applications using the Internet, there are always possibilities for additional mobile enterprise applications supporting the new functionalities. It is possible, even likely that within the mobile phone industries, new and innovative technologies and enablers emerge. The companies producing mobile applications should follow the new trends in mobile technology. The early adopters can gain important first mover advantages in learning and adopting the technology and developing applications before the competition. Naturally, there is always a risk when a company is choosing new unproven technology that has not been adopted or standardized.
Ramsay M. and Nielsen, J. (2000). WAP Usability: Déjà Vu: 1994 All Over Again. Report. Nielsen Norman Group, 2000. Updated in February 2003. X
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3.5 Connectivity A crucial element for mobility to work is the bandwidth. The fastest available 3G networks are already there if you are in the right location, but as soon as you have to go outside the range, the available speed gets lower. Laptop computers connect to WLAN9 if one is available at the location of use. If that is not the case, the connection can be made by pairing the laptop with a mobile phone, which supports 3G or other connection providing sufficient transfer speed. The newest laptop computers already contain the required communication support. Acquisition of suitable equipment should be a part of the mobilization plan. Most modern PDAs have Bluetooth wireless connectivity. Many mid-range and high-end PDAs have Wi-Fi10/WLAN/802.11-connectivity, used for connecting to Wi-Fi hotspots or wireless networks. Smart phones have a natural GPS connection up to 3G. In addition, the newest ones have built-in high speed 3G, HSDPA, or WLAN connection. Besides the specific applications, the widespread use of mobility is delayed until the 3G coverage has expanded. Some application, such as mobile e-mail, work sufficiently even on a lower bandwidth, assuming that you do not expect too much or need to have big files transferred.
3.6 Mobile Enterprise Enablers and Drivers This chapter presents some of the key providers in the mobile enterprise area. The group is far from comprehensive - more like handpicked examples. Most of the enterprise business software players have something they call mobile enter9 10
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prise, but in most cases it is only a browser interface that can be used in mobile like any other application.
3.6.1 Concept Providers Nokia
It would be encouraging to say that Nokia is one of the mobile enterprise leaders. Unfortunately that is not the case. Nokia Enterprise Solutions was not a success. Nokia is a technology company and that is the message they still strongly deliver. The situation is changing, though. The company is introducing term Business Mobility, based on which the following summary is collected [xxiv]: Today’s business workforce is more mobile than ever - and they are demanding access to corporate data, documents and email - wherever, whenever." Nokia’s holistic approach to business mobility, comprising: • Mobile software - Wireless Email, Workforce Management and Mobile Voice • Phones for business - business features include wireless email compatibility, data synchronization and Wireless LAN, easy to use, deploy and manage over-the-air • Security products - Firewalls and Mobile VPNs for encrypting data and making remote access secure • Professional services and support to help at every stage. Microsoft
“With Windows Mobile powered devices, your workforce gets advanced messaging and collaboration capabilities through software they already know and access to the business-specific applications they need to help them stay connected and productive while mobile.” [xxv]
A wireless LAN or WLAN is a wireless local area network, which is the linking of two or more computers without using wires. Wi-Fi is a wireless technology brand owned by the Wi-Fi Alliance intended to improve the interoperability of wireless local area network products based on the IEEE 802.11 standards. Common applications for Wi-Fi include Internet and VoIP phone access.
Microsoft’s approach to the mobile enterprise concept is enterprise wide, based on mobile with Windows Mobile robust communication and collaboration capabilities like advanced calendar control, HTML e-mail, SharePoint access, and genuine Microsoft Office Mobile functionality. While Microsoft has not gained the success they wanted in mobile phones and mobile applications, the company is known to win many markets after successive failures. Windows Mobile powered phones have the important advantage of having good connectivity to the standard MS Office software and its applications. This is more important to the majority of business users, rather than the name of the software or the mobile phone company. SAP
SAP is the world’s largest business software company focusing on ERP type applications. The following is a collection of quotes from SAP [xxvi]. “SAP NetWeaver Mobile is the technical foundation for enterprise mobility within SAP NetWeaver – and provides the technology that powers SAP xApp composite applications for mobile business. SAP NetWeaver Mobile comprises three mobile client technologies to enable standardized mobile business solutions as well as customer-specific developments. These clients are optimized for specific user roles and target devices. • Mobile Java client – Optimized for personal digital assisted (PDA) or handheld devices that display occasionally connected applications, such as mobile asset management • Mobile .NET client – Designed for Microsoft Windows-based devices that display occasionally connected CRM field applications with a rich function set • Mobile browser client – Designed for mobile devices that are always connected to a Web server using a technology such as WAP, wireless LAN, Bluetooth, and GPRS
Features and functions of SAP NetWeaver Mobile include: • Mobile business in both connected and disconnected modes – provides a local run-time environment so employees can perform their jobs whether disconnected or connected to the systems at their main office. • Synchronization – employees can store data offline on their mobile device and then synchronize information on back-end systems as needed. • Development of mobile solutions – provides a mobile development kit that helps developers build and customize mobile solutions that are tightly integrated with the back-end system. • Central administration and deployment – provides a console that enables system administrators to centrally manage mobile solutions and infrastructure." As SAP is such a widely used technology, there are potentially huge markets for applications that can be connected to SAP systems. Salesforce.com
Salesforce.com is a prime example of a new breed of SaaS companies. In a short time – since 1999 – it has developed to be the main force in SaaS CRM, challenging even the giants of the industry. Salesforce Mobile mobilizes the company’s CRM, custom, and AppExchange applications. That way, mobile professionals are always connected to their critical information – including contacts, accounts, tasks, leads, opportunities, cases, solutions, and other CRM information. Since users can update information immediately after completing a task, phone call, or email, management can stay on top of important customer developments as they happen. [xxvii]. Salesforce Mobile is integrated with email and calendar. The users can view and update company data from the field, providing real-time access to data.
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OHA, Open Handset Alliance and Android
The technology of Android is in such an early phase that information about the applications is quite limited. Open Handset Alliance seems to be happy to let the joining companies develop applications on the Android platform. This is an opportunity to mobile enterprise applications companies. Together with iPhone, Android is an example of the sudden discontinuities that sometimes appear in the technological field. It is not clear yet how successful Android will be, but it provides a new possibility for companies to develop mobile enterprise applications. Android breaks down the barriers to building new and innovative applications. For example, a developer can combine information from the web with data on an individual’s mobile phone – such as the user’s contacts, calendar, or geographic location – to provide a more relevant user experience. With Android, a developer could build an application that enables users to view the location of their friends and be alerted when they are in the vicinity giving them a chance to connect. [xxviii]
3.6.2 SaaS Mobility Drivers SaaS and mobility form a good marriage. The following aspects can be seen as drivers for the Mobile SaaS adoption: • Almost everyone has a mobile unit, either a laptop or a mobile phone. Some mobile phones may have limited capacity. • People are used to using mobile phones also for other purposes than calling. Installation of new software and for instance connection management may be difficult.
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• The SaaS applications are standardized to
•
•
•
•
•
some extent. The exceptions need further effort and potentially tailored client software. SaaS application providers can have access to international markets. This is true especially if the providers are capable of adopting Internet business rules. SaaS systems are reliable enough for serious business computing. The problems reside more on the mobile device side. Typical problems are related to bandwidth, display size, and keyboard. Security issues are solved as soon as the systems have been implemented and the rules are followed. Ease of use easy to implement. The better these two are handled, the better the opportunities for the service provider and the enterprises wishing to benefit from mobility are. Wide Area Network’s bandwidth has grown drastically and 3G technologies have matured to the level of proper use. The coverage of 3G networks grows rapidly.
SaaS mobility matures along with the concept in general. The additional challenges are in the management of the mobile users and terminals, as well as in the security aspects. SaaS will most likely be the way to making enterprise mobility a business commodity.
4
Conclusions
SaaS provides a flexible concept for enterprises to acquire mobile enterprise applications and for software developers an opportunity for new business. The majority of the mobile applications at present are related to business communication, CRM, and ERP. Field force and sales force have introduced tailored solutions for several years already. In addition, there are industry specific applications, some of which are extremely sophisticated.
Industry knowledge is crucial for successful software business in the mobile enterprise applications provision. Skilled programmers are capable of providing the code required, but the customers need applications most suitable for their actual purposes. Understanding of the industry’s business rules, understanding of technology, and the way the applications are used on the field, make the difference. New innovations are always appreciated. A lot of possibilities open up as a result of cooperation with the major players on the market already.
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Endnotes
i ii iii iv v vi vii viii ix x xi xii xiii xiv xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii
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Wikipedia Wikipedia Wikipedia Wikipedia Webopedia Wikipedia Webopedia Wikipedia Wikipedia Tim O’Reilly (2006-12-10). Web 2.0 Compact Definition: Trying Again. Retrieved on 2007-01-20 OpSource, Web site Tim O’Reilly - The Open Source Paradigm Shift, June 2004 Wikipedia Galen Gruman, May 21, 2007, CIO Magazine Smallbusiess News, 01/24/2008 Lightwave Consulting Group, Web site McKinsey, May 2007 Industry Week, Sept. 1, 2007, A Sampling of SaaS Distribution Software, Web site Motorola showcase Web site The Forrester Wave: Sales Force Automation, Q2 2007 CIO New Zealand, Supply chain management: A quick guide, August 9, 2007 Handheld Usability, Scott Weiss, 2002 http://usa.nokia.com/A4179190 Microsoft, Windows Mobile Enterprise Overview Web site SAP NetWeaver Web site Salesforce.com Mobile Platform, Web site Open Handset Alliance Web site
Tekes Reviews in English
231/2008 Mobile Enterprise Applications and Business Models. 24 p. 228/2008 MASI Technology Programme 2005–2009. Yearbook 2008. 227/2008 Social challenges as the basis for foresight – Cooperative project between NISTEP (Japan) and Tekes (Finland). Mikko Syrjänen and Alina Pathan (Eds.) 127 p. 224/2008 Nanosafety in Finland – a summary report. Tuomas Raivio, Piia Pessala, Mari Hjelt, Pirita Mikkanen, Hanna Kahelin. 17 p. 219/2007 VICTA – Virtual ICT Accelerator. Final Report. 25 p. 214/2007 Universities, industrial innovation and regional economic development. A report of local innovation systems. Editors: Richard K. Lester and Markku Sotarauta. 231 p. 213/2007 Trends and Opportunities in Packaging R&D in the US. Niels Hauffe, NWV Market Discovery, Inc. 54 p. 212/2007 Consumer Packaging in Poland, Czech Republic and in Moscow Area. 50 p. 207/2007 MASI Technology Programme 2005–2009. Yearbook 2007. Eija Alakangas & Pekka Taskinen (eds.) 206/2007 Update of GIGA-VAMOS – Technology Roadmap. Mikael von Hertzen, Juhani Timonen, Pekka Huuhka. 93 p. 205/2007 Seizing the White Space: Innovative Service Concepts in the United States. Peer Insight. 76 p. 202/2007 Five Steps for Finland’s Future. Pirjo Ståhle (ed.). 42 p. 200/2007 Innovation, Journalism and Future. Erkki Kauhanen and Elina Noppari. 88 p. 196/2006 E-Business Logistics Visions, Innovations and Research. ELO – E-Business Logistics Technology Programme 2002–2005. Heikki Kekäläinen (editor). 91 p. 191/2006 MASI Technology Programme 2005–2009. Yearbook 2006. Eija Alakangas & Pekka Taskinen (eds) 184/2005 Globalisation of R&D. Part 1. R&D in a Global World. Part 2. R&D in a Global Economy. 126 p. 182/2005 Research training and national innovation systems – Finland compared to Australia and the USA. Sandra Haukka. 154 p. 179/2005 Pharma development in Finland today and 2015. Updated version of 163/2004. 78 p. 177/2005 Best Practices in Innovation Policies. Heikki Kotilainen. 93 p. Subscriptions: www.tekes.fi/english/publications
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Tekes Review 231/2008
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