The Age of Cheap and Cheery Mobile is Over with Forrester

November 14, 2013

The Age of Cheap and Cheery Mobile Is Over John McCarthy, Vice President, Principal Analyst, Forrester

David Rader, CTO, Alliance

2 © Alliance Global Services 2013

About Alliance

Alliance is a software development and testing firm that partners

with software, technology and information-intensive businesses

on their mission critical work. Leveraging agile practices, Alliance

architects and builds software applications, mobile applications,

and products that become primary drivers of innovation and

revenue growth for its clients and their businesses. Alliance is

recognized for driving quality and speed-to-market when

business success depends on the software inside. Founded in

1994, Alliance is headquartered in suburban Philadelphia in

Conshohocken, PA.


Today’s Presenters

David Rader is Alliance’s CTO. He focuses on improving software

development teams and technology strategy for Alliance’s clients. David

has over 15 years of experience in software development and consulting

and is passionate about delivering great customer experiences and

business value. Prior to joining Alliance, David was a Senior Partner at

Fusion Technologies and has worked for a major retail brokerage and a

data analytics consultancy. David has a BA from Northwestern University

in Economics and Integrated Sciences.

As Vice President, Principal Analyst, John McCarthy has 27 years of

experience at Forrester and is a key contributor to Forrester’s work on

predicting the business impact of technology. He covers such topics as

the future of IT services and mobile apps and their impact on IT and

vendors, the impact of cloud computing, the emergence of “platform”

BPO offerings, and implications of SaaS on traditional services. John

also has more than 12 years of insight into the development of a global

delivery model for IT services and product development. John holds a

Bachelor of Arts degree in European history and economics from

Connecticut College.

© 2013 Forrester Research, Inc. Reproduction Prohibited 4 © 2009 Forrester Research, Inc. Reproduction Prohibited

The Era Of Cheap And Cheery Mobile Apps Is Over!

John C. McCarthy, Vice President, Principal Analyst

© 2013 Forrester Research, Inc. Reproduction Prohibited 5

Mobile initiatives are no longer

simple standalone efforts.

Instead they require a level of

spending and organizational

change traditionally associated

with large scale business

systems like ERP

Theme


Perfect storm The perfect storm of technology innovation

Everyone is organized

around individual

silos

Innovation is

at the

intersections


The perfect storm drives whole new technology and business agenda around customer engagement

Mobile apps guide people in

their physical world

Source: November 16, 2012, “Great Mobile Experiences Are

Built On Systems Of Engagement” Forrester Report

Systems of record

host transactions in

the virtual world

Systems of engagement empower people

with context-rich apps that merge the

physical context with virtual intelligence to

take the next most likely action


Systems of engagement with field service

• Tablets in the hands of

field service reps.

• GPS in app knows which

windmill you are standing

in front of . . . before you

climb 350 steps.

• Full content integration

includes maintenance

history, video repair

instructions, diagnostic

tools needed,

• And a video link back to

experts for tough

problems.


Systems of engagement with distributors

• Trane empowers distributors to

upsell and close deals faster.

• An iPad app delivers content,

sales materials, and documents.

• The “ring to ching” close rate is

20% faster, 31%+ in revenue.

• Analytics are built into the platform

to monitor, refine, and reward.

© 2013 Forrester Research, Inc. Reproduction Prohibited


Systems of engagement in financial services

• Deutsche Bank is replacing

250 apps with SAP for core

banking functionality

• This frees up money and

provides agility to focus on new

interfaces with clients

• Embarked on “touch” strategy

and redesign of branches to

better engage clients around

financial planning

• Using Microsoft Surface

technology and iPads to better

visualize results in customer

conversations Source: Deutsche Bank


The key differences

Systems of

record

Systems of

engagement

Key outcome Automate transactions Guide decisions and deliver

services

Intended audience Employees Customers, employees, &

partners

User interaction model Keyboard and mouse Touchscreen, voice control,

sensors, camera, M2M

Integration requirements Fixed, mostly internal

systems

Rapidly changing, with many

internal and external

systems

Design goals Implement a business process

for expert users

Accomplish tasks for

casual and for dedicated

users

Degree of personalization Non-existent or

role-based

Tailored to an individual based

on their immediate context

Role of analytics Operational analytics on

historical data

Experience and outcome

analysis on real-time data

ROI model Cost cutting and efficiency Revenue growth and better

service


The changing importance of the firm’s software assets

Software

is the

brand!


50%

60%

40% 35%

40%

15% 15% 10% 10%

85% 80% 80%

75% 70%

65%

55% 50%

45%

0%

30%

60%

90%

2012 2016

Value of software as a percentage of the brand/customer experience is growing by vertical


Mobile initiatives are no longer

simple standalone efforts.

Instead they require a level of

spending and organizational

change traditionally associated

with large scale business

systems like ERP

Theme


The age of cheap and cheery mobile is over!

Skill

s

Re

facto

rin

g

Scale and scope of

mobile investments Reengineering


What changes when the enterprise becomes as ISV

UX becomes an absolute requirement, not a nice to have

Velocity of customer feedback immediately damages the brand

The Tsunami of releases requires agile

The backend apps, security paradigms, middleware constructs,

and data models need to be redesigned/rebuilt

ROI models shift from cost cutting to revenue generation and risk

reduction/service improvement

Firms create a separate software engineering group with a

product development mindset

Firms need to rely on a broader ecosystem

New hybrid skillsets are required


The atomization of business processes will cascade through your entire technology stack …


Changing focus and value of the technology stack

Network

Hardware/infrastructure

Software

Data

Systems of record

UXP

Design Infrastructure

Software

Data

Systems of engagement

UXP

Design


33%

16%

33%

11%

2%

8%

14%

20%

1%

10%

2%

5%

5%

21%

10% 9%

0%

20%

40%

60%

80%

100%

Systems of record Systems of engagement

Mgmt.

Project mgmt.

Vendor mgmt.

UXP

Bus. Analysts

Architects

Infrastructure

Programmers

The shifting make up of IT skills

Blue

Collar

IT

White

Collar

IT


Mobile and smart drive backend simplification

PC world Mobile/smart world

Front-end

Back-end

High complexity and high innovation rarely co-exist


The Tsunami of releases requires an elastic infrastructure and composite apps

Year

1 Year

2

Year

3

Year

4

Year

5

Year

6

Imp

act

High

Low

Traditional release/implementation cycles

Emerging service cycles (mobile apps/cloud)

Salesforce.com does 7 + releases/year

Google does a release every 2 weeks

Amazon does a release every 11 seconds across 10,000 servers


The CIO’s migration to IT-as-a-service

New public

cloud projects Private cloud

Legacy systems

Now

Internal

CIO Buyer

System of record

External

Business buyer

Systems of engagement

As-a-service attributes

Private cloud Legacy systems

New public

cloud-based

systems

2016

Private cloud Legacy systems

2019 New public

Cloud-based

systems


Mobile engagement requires new four-tier engagement platform


How important is each of the following initiatives in your firm's mobility strategy for supporting your customers over the next 12 months? (High and Critical Priority)

Source: Forrsights Mobility Survey, Q2 2013

38%

38%

48%

48%

58%

60%

64%

70%

Create a set of standard APIs or services

Expand machine-to-machine (M2M) or 'Internet of things'initiatives

Re-architect our middleware to better support mobilefront-end applications

Re-architect traditional or back-end apps to make it easierto interface with and support mobile front-end apps

Expand or enhance data center infrastructure to handleincreasing volume of customers' mobile interactions

Improve or modernize our mobile app(s) to deliver moreinformation or transaction support

Support a wider variety of mobile devices and platforms(e.g., tablets, iOS, Android)

Update our security technologies and processes to bettersupport mobile interactions

Base: 1480 North American mobility decision-makers


Changing face of IT spending (Forrester estimates)

45%

79%

41%

18%

14%

3%

0% 20% 40% 60% 80% 100%

2017

2012

Systems of record investments

Systems of engagement spending

Mobile/tablet front-end apps budgets


Summary

The perfect storm of technology change is driving a

whole new class of systems of engagement

Software and UXP drive customers’ brand experience

and product/service differentiation

The role and the value of the technology stack changes

in the “software-is-the-brand” world

The makeup and skills of IT will evolve dramatically


Related research

October 18, 2013, “Mobile Needs A Four-Tier Engagement Platform”

August 6, 2013 “Wanted: Mobile Engagement Providers”

August 5, 2013, “New Dynamics Shape IT Services Spending”

November 16, 2012: “Smart Products Will Require A Hybrid CTO/CIO Skill Set”

August 30, 2012, “Cloud Mobile Development: Enabled By Back-End-As-A-

Service”

August 13, 2012, “Mobile's Ascendance Will Accelerate IT Services Restructuring”

May 16, 2012, “Business Execs Increase Direct IT Spend To Support Mobile and

Systems Of Engagement”

February 13, 2012, “Mobile Is The New Face Of Engagement”

August 8, 2012, “Mobile Management Takes A 180 Degree Turn”

June 10, 2011, “The Re-Invention Of Product Development Services”

April 21, 2011, “Sizing The Cloud”

February 28, 2011, “Mobile App Internet Recasts The Software And Services

Landscape”

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

John C. McCarthy

+1 617.613.5710

[email protected]

www.forrester.com

Gen 2 Mobile Apps

8-Nov-2013


Enterprise Mobile Applications

Examples:

• Field Service

• Sales

• Agents

• Medical

• Retail

• Shipping / Logistics

Customers

Employees

Supply Chain / Sales

Channel

In House Enterprise Systems


REAL WORLD EXAMPLES


HealthCare Line of Business iPad App

CLIENT Life saving provider of remote cardiac monitoring and medical telemetry enabling rapid diagnosis of heart attacks and arrhythmias.

PROBLEM STATEMENT Need to enable medical providers to enroll new patients, access patient information, and receive notifications of diagnosis results while on-the-move in hospital and care settings. Providers are demanding mobility and require data security.

SOLUTION

• Analyzed physician work styles to design a

task-oriented workflow UX

• Implemented native iPad app to provide

fastest possible responses

• Extended Enterprise authentication,

entitlements and data services to enable

mobile integration

• Encrypted offline HIPAA compliant patient

data

• Implemented Push Notifications

• Implemented and consumed WCF and

.NET server components


What’s it take to makes workflow Easy?

Client

Novus System

ASP. Net MVC 3 Application

Workflow Manager (WPF)

Entity Framework (calling

Stored Procedures)

Ap

plic

ati

on

s

Ra

w D

ata

exp

ose

d a

s

Se

rvic

e

Da

tab

ase

an

d

Me

ssa

gin

g

WCF Service Layer

Service Interfaces Data Contracts Service Agents

Business

Components

Windows Workflow

Task Library

Workflow Tracking

and PersistenceBu

sin

ess

, W

ork

flo

w

an

d S

ecu

rity

Novus DB

Patient

SchemaOthers

Request

Schema

Inventory

Schema

MSMQ/RabbitMQ

ServiceBus

WCF Data Services

XAML, Meta-data

and

Configuration

Reports

JQuery UI Components

Da

ta

Acc

ess

an

d

Se

rvic

e

Bu

sNo

vus

Pla

tfo

rm

Workflow

Components

POCO Entities

Au

the

nti

cati

on

, A

uth

ori

zati

on

, S

ecu

rity

, C

ach

ing, E

xce

pti

on

Ma

na

ge

me

nt,

Lo

ggin

g a

nd

In

stru

me

nta

tio

n, S

tate

Ma

na

ge

me

nt

an

d V

alid

ati

on

Cro

sscu

ttin

g C

on

cern

s

Incoming Orders

External

Modules

Inventory

Management

Module

Billing Partner

Document

Storage Partner

Reporting

Partner

Monitoring

Partner


Holistic View

Business Strategy

(Functionality)

User Experience

(What You See & How You Use It)

Technology

(Application Development & Integration)


Simple Complexity?

Data Driven Dynamic Forms

Data Merge, Cleanse, Migration

Configurable Workflow

Robust Offline Replication Support


Nalco Industrial Field Service App

CLIENT $11B provider of water services to industrial and utility customers with 25,000 global field service & sales team members

PROBLEM STATEMENT Need to enable field sales & service team to collect sensor readings in demanding industrial settings with a BYOD culture. Desire to leverage existing .NET server code and skillset. Need for pure native apps to support offline and native device capabilities.

SOLUTION

• Cross-platform native app developed using

C#/.NET and Xamarin mobile tools

• Published to iTunes and Android Play app stores

• Enterprise authentication & entitlements

integration

• Enterprise JSON API implemented

• Offline support and automatic sync

• Location based data context

• 80% code reuse across 2 different device

platforms and shared code with ASP.NET server

applications


“Simple” Apps Require Back-End Integration

Mobile Field Service App Directory Services

CRM

ERP / Master Data

Transactional


IT Investments Required Investments Needed!

Security Compliance

MDM

Replication Security

Data

Mobile SSO Entitlements

Auth & Auth

Cloud Services Scalability

Queue

Technology


CardioReady Field Service Tracker

CLIENT Largest servicer of Automated External Defibrillators (AED) in North America

PROBLEM STATEMENT Changing regulations require public spaces to provide AED’s that require regular service and certification. Field service team needs an app to optimize their routing and daily activities and customers require seamless access to maintenance logs

SOLUTION

• Multi-device hybrid HTML5 app implemented

with native gesture support

• iTunes, Android Play, Blackberry, and

Windows Phone app stores

• Integrated with NetSuite cloud based ERP

• Web portal and API developed with automatic

sync between device and web.

• Enables field techs and customers to view

dashboards online and offline

• Improves technician’s workflow with maps,

bar code scanning, and camera access

• Single code base across 4 different device

platforms and desktop browsers


Integrated Front-End Requires Integration

Mobile REST API

Service Items


QUESTIONS AND ANSWERS

The Age of Cheap and Cheery Mobile is Over with Forrester

Technology

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