牛津经济研究院-管理移动战略 MANAGING MOBILE STRATEGY

MANAGINGMOBILESTRATEGY

EXECUTIVESUMMARY

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ManagingMobileStrategy|Executivesummary

Managementprioritizedassmartphonestrategiesmature

Thesmartphonecontinuestobeacrucialtoolforbusinessesinterestedinincreasingtheirflexibility,

improvingproductivity,andencouragingcollaboration—andremainingcompetitiveinahighlydigitizedandconnectedworld.

Infact,thesmartphonehasbecomea“must-have”asdemandshaveincreasedonorganizationsand

theiremployeestostayconstantlyconnectedand

responsivetocustomers,suppliers,colleagues,andpartners.NineintenUSexecutivessaysmartphonesareimportanttoemployeeproductivity,speeding

decision-making,improvingcollaboration,and

enhancingcustomerservice,accordingtoasurveyconductedbyOxfordEconomicsandVerizon

Businesstogainmoreinsightintohoworganizationsareevaluatingandimplementingmobilestrategies.

Itisnotsurprising,then,thataroundtwo-thirdsof

organizationsprovidephonestoemployeesunder

EmployerProvidedDevice(EPD)programs.Butitis

puzzlingthatmanyorganizationscontinuetotake

aBringYourOwnDevice(BYOD)approach,giving

employeesalmostcompletecontroloversmartphoneswithoutanysignificantmanagementoversight—an

artifactoftheearlydaysofmobilitythatexecutivescontinuetoviewasacheaperalternativetoEPD.

Butourresearchshowsthatorganizationalposture

ischanging,perhapsasorganizationsseektoapplymanagementdisciplineandcontroltothesetools

thatarenotonlycrucialtobusinessbutalsothat

provideaccesstosensitivecorporatesystems,apps,anddata.Evenorganizationsthatdon’tcurrently

offersmartphonestoemployeesareexpectedtogetonboard:overhalfofthosewithfullyBYODmobilestrategies(51%)plantostartprovidingdevicesto

employeesinthenearfuture.AndamongEPDand

hybriddeviceprogramsthatblendEPDandBYOD,

aboutthreeinfive(59%)plantodistributedevicestoabroaderrangeofemployeesinthenextthreeyears.

Mostexecutives(60%to70%)considersmartphonestobeparticularlycriticaltojobfunctionssuchas

Marketing,IT,Sales,andHR.Oursurveydatashowsthatcurrentlyorganizationstakeafunction-specificapproachtosmartphonedistribution.

60%to70%ofexecutives

considersmartphonestobeparticularlycriticaltojobfunctionssuchasMarketing,IT,Sales,andHR.

Withalmostallcompaniesrelyingonmobiledevices,ourresearchshowsthatsmartphonestrategiesarematureforsomeorganizations,whoarenowturningtheirfocustomanagementastheylooktoexpand

theirEPDprograms,whicharequicklyemergingasthepreferablemodeltoBYODplans.

Togainmoreinsightintohow

organizationsareevaluatingand

implementingmobilestrategies,OxfordEconomicsandVerizonBusiness

conductedasurveyof500executivesatUScompaniesacross10industries.

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ManagingMobileStrategy|Executivesummary

Expansioncomeswithchallenges

Whileexpansionplansareintheworks,acommonpairoffoes—moneyandtime—dampenthoseefforts.A

largecohort(79%)ofsurveyrespondentssaythatcostisatleastamoderatelyimportantfactorinhowtheysettheirsmartphonepolicy,andjustoverone-third(34%)struggletocomeupwithcapitalforsmartphones—

whichmakessense,consideringorganizationspayanaverageof$609inupfrontcostsperdevice.Executivesareequallyconcernedaboutdisruptingoperations

whendeployingnewdevices,withaboutone-third(34%)reportingtimetoimplementdeviceplansasproblematic.ThisisparticularlytrueforthosewithBYODpolicies,wheremorethanhalf(56%)feeltheydon’thavesufficienttimetoimplementnewmobilestrategies.Asphonedistributionexpandstomore

employees,thosewoescouldbeamplified.

Butthechallengesmagnifiedbyexpansiondonotstopthere.Asmoresmartphonesareputinthehandsof

workers,thepotentialforsecurityproblemsincreases

aswell,oftenstrainingtheresourcesneededtokeep

themsafeandremediateincidents.Thosesamedevicesthatcanprovideadirectlineofcontrolovercrucial

appsandcorporateassetscanopendoorsforthreat

actorswhohaverampedupattacksonmobiletargets—sosmartphonesecuritymustbecomeakeyfocus.

Thispresentsexecutiveswithnewsecuritychallenges;smartphoneshelpemployeestodotheirjobsbetter,

buttheyalsocreatenewsecurityriskpathways.Today,morethanthree-quartersofrespondentsfeelthese

securityvulnerabilitiesareabarriertosmartphone

expansion—butexecutivesandITstaffwithEPD

programsappearunfazed.Morethanfouroutoffive(83%)seeEPDprograms—wheretheyhavetheir

owndevices—asabetteroptiontocontrolsecurity.

Ingeneral,managingdevicesincreasestheresourcesneededaswellasrequiresmaintainingpoliciesand

employeeattritionthatconflictswithservicecontractenddatesandpayoffdevicecommitments.So,it

followsthatthemoredevicesanorganizationdeploys,themorechallengesitfacesinmanagingthem.

“Thereareseveralareaswhereweareexpandingmore,includingmultiple

buildings,soweneedmoreadvancedcommunication;henceMobile

Management-as-a-Serviceisessential.”

ACFOatalargehealthcaresystem

Themobilestrategyyoupickhasanimpactonyourbusiness—organizationsneedtoconsidertheimpactonresourceswhilebalancingthedesiredproductivitygains

Servicecontracts(e.g.,contractcancellations,payingoffdevices)

ManagementissuesIncreasedsupportresources

Infrastructurelimitations

Enforcingproperuseofdevicesamongtheworkforce

IncreasedcostsIncreasedsecurityvunerability

Q.Challengeswithphoneexpansion

64%

64%

64%

64%

71%

73%

76%

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ManagingMobileStrategy|Executivesummary

ToEPDorBYOD?

Sincesmartphoneshavebecomeanear-mandatoryresourceintheworkplace,iforganizationshopeto

gaincontroloverthesedevices,theywillneedto

establishacomprehensivemobilestrategy.Roughlytwo-thirdsofsurveyrespondentssaytheyhavea

sufficientstrategyinplacetoday,andsofar,they

haveanoticeablypositiveimpact:nearlythreeinfiveagreeitboostscustomerserviceandsatisfaction

(59%),employeeretention(58%),innovationandcollaboration(58%),andperformingeveryday

businessresponsibilitiesquickly(57%).

Thelevelofcontrolanorganizationwantsoveritsdeviceswilldictatewhatthisstrategylookslike.

Whilejustovertwo-thirdsoforganizationsdeploysomephonesunderanEPDinitiative,fullyEPD

programsarescarce—justunderone-fourthprovidedevicestomostlyallemployeesattheorganization(22%).Hybridphonedistributionplansaremuch

morecommon(43%).Organizationswithalarger

headcountareespeciallylikelytofollowthishybridapproach(44%),whileorganizationswithsmaller

workforcesareabletoissuefullyEPDorfullyBYODstrategiesacrossthebusiness.

Determiningwhichemployeesreceiveasmartphone

isacriticalpieceofasuccessfulsmartphonestrategy,andseniorityandjobresponsibilitymostcommonly

drivethisdecision.Ofthoseorganizationsthatprovidesmartphonestoemployeestoday,three-quarters(75%)distributethembasedonseniority,whilealmosthalf

(46%)distributebasedonjobfunction—trendsthatareexpectedtoholdoverthenextthreeyears.

OneCOOatalargeretailconglomerateunderscores

thosetrends.Allemployeesatthecompanyusea

mobiledevice,withhalfreceivingonethroughthe

company.Butseniorityandtenuredeterminewho

getsadevice.“Wehaveroughly1,000physicalretail

stores,andwehirealotofhighschoolandcollege

workers,”theCOOsays.“Theygenerallyworkpart

timeandbringtheirowndevices…onceonegetsintoamanagerialposition,thecompanyprovidesthedevice.”

ThisCOOindicatesthatjobfunctionisakeyfactor

indeterminingphonedistribution.“Merchandise

employees,suchasbuyers,needaccesstosalesreportswhichdivedownintospecificmerchandisecategories,”theCOOsays,“butoperationallyfocusedworkersneedmobiledevices,too.Employeesarerequiredtohave

accesstoessentialbusinessreports,includingvelocityreports,inventoryreports,andotherrelevantdatathatretailerstypicallyrelyon—allinformationthatneedstobeaccessedonamobiledevice.”

Byprovidingsmartphonestotheworkforce,

businessescancontrolwhichappsemployeesuse.

Today,mostusersengagewithjustahandfulofappsforwork;theytypicallycenteraroundadministrative

functions(e.g.,email,contacts,andcalendars).But

fouroutoffivesayemployeesaccessatleastonecorebusinesssystemfromtheirphones(83%)—andthe

overallnumberofappsused(onaverage)remainslow,withjustsixlicensedappsandthreeproprietaryappsperdevice.EmployeeswithEPDstendtouseslightlymoreproprietaryapps,with53%makinguseofatleastthree(vs.41%hybrid,34%BYOD),sobusinesseswithmultiplecustom-developedappsmaywanttoconsideranEPDapproach,whichwouldgivethemincreased

securityandcontroloverwhatisloadedondevices.

“Wehirealotofhighschoolandcollegeworkerswhogenerallybringtheirown

devices…onceinamanagerialposition,thecompanyprovidesthedevice.”

COOatalargeretailconglomerate

Butwhiledistributingsmartphonestoemployees

removesthehazesurroundingBYODbehavior,

increasedcontrolcancomeatacostwithoutcarefulplanning.Oneofthebiggestchallengestodayaretheresourcesrequiredtomanagemobiledevices.The

moreemployeesandphonesanorganizationhas,themorepeoplethatareneededtomanagethem.

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ManagingMobileStrategy|Executivesummary

Smallercompanies(lessthan5,000employees)

averagebetweenthreetosixfull-timeemployeestomanagedevices,whilelargercompanieshaveatleastsevenandoftenmorethan15full-timeemployeestomanagedevices.Interestingly,thereportednumberofITstaffdoesnotmateriallychangeregardlessof

companiesusinganEPDonlymodel—orahybridmodelwithsomeEPDandsomeBYOD.

Thetimeandcostimpactofmobilemanagement

Q.Inyourestimation,whatisthecostofmanagingthefollowingelementsofemployer-providedandBYODsmartphonesperdeviceeachyear?

$175

$120

$463

$162

EPD$1,091

$57BYOD

$643

$466

$101

$190

Devicemanagement(e.g.,security,kitting,support)Insurance(includingphonereplacements)

Softwarelicenses

MaintainingdeviceEmployeestipendCarrierserviceplans

Whatisevenmoresurprising,isthatcompanies

with100%BYODreporthavingasmanydedicatedemployeesmanagingdevices,insomecasesslightlymore.Onlyaverysmallnumberinthisgroup,

reportedhavingnoemployeesmanagingdevices.

Clearly,organizationsthatthinktheyaresavingon

laborcostsmaynotbesavingasmuchastheythink.

WhenchoosingbetweenanEPDandBYOD

strategy,thereareotherconsiderationsbeyondcost.OrganizationsoftentakeanEPDapproachinpursuitofbettersecurity(80%),easiermanagement(68%),andimprovedproductivity(63%).Morethanone-third(36%)saytheirBYODpolicyisinadequate—perhapsbecausetheydonothaveasmuchcontroloverthe

devicesandappsthattheiremployeesuse.BYODprogramsalsoislesslikelytohavedeviceinsurance.

Forexample—nearlyallcompanieswithBYOD

programsdonotprovideinsurance,whileonly22%ofthosewithEPDprogramssaytheirphonesgo

uninsured.OrganizationswithanEPDorBYOD

programhaveencounteredlostproductivityand

downtimeasaconsequenceofsecurityrisks,

highlightingtheneedforrobustsecuritymeasures.Nearlytwo-thirds(64%)saytheirorganization’s

reputationwouldsufferafterasecurityincident.Acrossnearlyallindustries,lostproductivityisthesinglegreatestconsequenceofamobiledevice

incident,costingonaveragejustunder$10,000.

Q.Inyourestimation,whatistheamountoftimespentmanagingthefollowingelementsofsmartphonesperdeviceeachweek?EPDandBYODIThourscombined(average);bycompanysize.

250–499employees268

500–999employees279

1,000–1,999employees423

2,000–4,999employees312

5,000–9,999employees491

10,000–19,999employees461

20,000+employees576

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ManagingMobileStrategy|Executivesummary

Thetotalcostofasecurityincidentis

about$62,000,withreputationalharmcostingjustover$13,000.

Overall,theresearchshowsthatthetotalcostofasecurityincidentisabout$62,000,withreputationalharmcostingjustover$13,000.And,executives

mustrealizethatunderaBYODprogram,repairingaphoneisuptotheemployee,whomaynotwanttospendmoneytodoso,leavingdevicesbrokenornon-functional.

Ourresearchalsoshowsthatsecurityincidents

increasesupporteffortsby75hoursonaverage,

resultingin60hoursoflostproductivity,andcausing63hoursofresourcestobedivertedfromotherIT

efforts.AnothercommoncomplaintissueforITstaffisdealingwithbrokenandoutdatedphones—theserichrepositoriesofdatathatcouldbevaluableto

cybercriminalsmustbehandledappropriately.

Mosthavemadedisposalofthesedevicesacommonpractice(69%saytheydeletedataorperformafactoryreset)—butwithorganizationsdealingwithamedianof25brokenphonesannually,thehoursaddup.

Howhandilythoseincidentsareaddressed—andthedamagetheycando—dependonthescaleofmobiledeploymentandtheconsistencyofmobilepolicy.

ThecomplexityofsmartphonemanagementdoubleswhenseparatesecuritypoliciesexistforEPDand

BYODplans—arealitythatroughlyhalfofthosewithahybridpolicy(49%)face.

Securityincidentsincreasesupporteffortsby75hoursonaverage,resultingin

60hoursoflostproductivity,andcausing63hoursofresourcestobedivertedfromotherITefforts.

Thebenefitsofanas-a-servicemodel

Withthecostofmanagingdevicesontherise—andtheburdenonITresources—manycompaniesare

lookingforalternativestotheircurrentmanagementapproach(orlackthereof).

Fromsecuritytodeviceinsuranceandday-to-dayplanmanagement,therearemultipleopportunitiestoimprovemanycriticalaspectsofsmartphone

management—ourresearchshowsthatmoving

awayfromaBYODapproachandtappingexpertstooverseetheseresponsibilitiesmayalleviate

smartphoneheadaches,improvesecurity,andreducethebusiness’riskexposure.Andmanyorganizations

arereadyandwillingtoturnoveradditionalresponsibilitiestoproviders.

Regardlessofwhethersmartphonemanagementis

doneinternallyoroutsourced,executivesareleveragingthebenefitsofMobileDeviceManagement(MDM)plans.

Mostexecutivesadoptedthesepolicieswithinthelasteightyears(roughlytwo-thirdshaveimplementedanMDMafter2015),butnewapproachesarepoppingup.Forexample:Theas-a-servicemodelhasemerged

asthenewestformofoutsourcing.Similartoother

modelsfordeployingandmanaginghardware—thinklaptops—companiesarebeginningtooutsource

mobilephonemanagement.Twelvepercentofsurveyrespondentsreporthavingsometypeofmobileasaservicemodelinplacetoday,andanadditional60%plantoadoptone.

12%reporthavingsometypeofmobileasaservicemodelinplacetoday,andan

additional60%plantoadoptone.

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ManagingMobileStrategy|Executivesummary

As-a-servicemodelsprovidebusinesseswiththe

mostflexibility.Notonlydotheyscalewiththe

businessasthenumberofdevicestobesupportedfluctuates—soorganizationsarenotcommittedto

payformanagingmoresmartphonesthantheyhaveinuse—buttheyalsomovemuchoftheexpense

associatedwithmobilestrategiesfromthecapextoopexcolumn.Thatcansavecompaniesconsiderablemoney,consideringtoday’shighinterestrates.

As-a-servicemodelsmovemuchofmobilestrategiesexpensesfromthecapexto

opexcolumn.Thatcansavecompaniesconsiderablemoney.

Executiveswhohavenotyetmadethejumpmay

bewisetoreassesstheirpositionwiththeproven

benefitsofas-a-serviceinmind.Thosewithanas-a-serviceagreementinplacetodaysayithasimprovedtheirappmanagementcapabilities(57%),resulted

inlessdowntime(53%),andreducedstressontheir

internalITfunction(47%).Eventhosewhohavenot

yetmadethemovetoas-a-servicefeelstronglyaboutitspotential;executivesbelieveas-a-serviceplanswill

eventuallyfreeupresources(82%agree),offermoreflexibilityinthephonechoicesemployeescanmake(80%),andrecoupmoneyfromrecyclingphonesthatcouldbereinvestedintothebusiness(70%).

ACFOatalargehealthcaresystemdescribed

thevaluepropositionindetail.“Everybodyneeds

toengageandinteractwiththeirrespective

departments.Alongwiththat,wehavebeengrowingtremendouslyovertime,thereareseveralareaswhereweareexpandingmore,anditalsoincludesadditionofmultiplebuildingsinourset-up,”hesays.”And,byhavingnumerousbuildingstructures,wewouldneedmoreadvancedcommunication;andhenceMobile

Management-as-a-Serviceisessential.”

Thecost-reducingpotentialofas-a-servicealready

maybeinfluencingmobilepolicy,asoverhalfof

executives(57%)plantoenteranas-a-service

agreementwithinthenextyear.However,executiveswanttoseeprogressacrossotherareasiftheyare

goingtomaketheleap;nearlyhalf(49%)saythatifanas-a-serviceplangivesthemtheabilitytomixand

matchdeviceswithphoneplansinaccordancewiththeirneeds(49%)orreducestheburdenonIT(47%),theywouldbemorelikelytoenterintoanagreement.

Executivesalreadyoutsourcesomemanagementtoproviders,primingthemtoadoptan‘as-a-service’model

Q.Whichelementsofmobiledevicemanagementdoesyourmobiledevicepartner(s)currentlymanage?

44%

updatesdeployment

Security

44%

Operatingsystem

42%

Devicedelivery

40%

App

management

39%

Devicedisposal

36%

35%

Permissions

Devicerepairs

34%

Device

replacement

32%

Tech

support

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ManagingMobileStrategy|Executivesummary

Manyexecutivesmaybemoreopentoas-a-servicebecausetheyaregrowingmoreaccustomedto

outsourcingresponsibilitiestoproviders,andthey

fullyrealizetherisksassociatedwithcontinuingto

relyonemployeestobring—andmanage—whateverdevicetheywanttowork.Manycompaniesare

outsourcingthemanagementofmobilephones—sixin10outsourcesomeoralltheirmobilemanagementfunctions.CompaniesthatownthedevicesinanEPDmodelaremorelikelytooutsourceallmanagement(72%),likelybecausetheyownthedevicesandhavemorecontroloverhowtheyaremanagedthanwithaBYODdevice.

Organizationscanrealizesignificantbenefitsfrom

outsourcing.Forexample,ithasagreaterpositive

impactacrossmostbusinessgoals,includingreducingsecurityrisk(54%vs.40%in-housemanagement),

retainingandrecruitingemployees(56%vs.47%),andincreasingsales(53%vs.45%).

Outsourcinghasapositiveimpactonbusinessgoals

Q.Towhatextentdoesyourcurrentmobilephoneenablementstrategyallowyoutoaccomplishthefollowinggoals?

In-house

Outsourced

56%

47%

53%

45%

54%

40%

Increasingsales

Reducingsecurityrisk

Retainingandrecruiting

employees

Outsourcingmanagement,too,canhelpprevent

companiesfromleavingobviousmoneyonthe

tablewhenitcomestotrade-ins.Bynottradingin

phones—asnearlytwo-thirdsofexecutivesadmit

theydon’twhencontractsexpire—organizationsareessentiallythumbingtheirnosesat“foundmoney”

thatcouldbereinvestedintootherareasoftheir

businesses.Consideringtheaveragereturnper

deviceis$51—andthatmostorganizationswithEPDprogramsupgradephoneseverytwoorthreeyears—thesetrade-inrebatescanaddtosubstantialdollars.

Evenwithobviousbenefitsofoutsourcing—mitigatingsecurityproblems,ensuringphones,andconsistent,

comprehensivemanagement—organizationsare

hesitanttoturnoverallresponsibilityformanagementtovendors.Forexample,lessthanhalfofthosethat

entirelyoutsourcesmartphonemanagementdelegateappmanagement(47%),operatingsystemupdates

(43%),andsecurityresponsibility(43%).

Thathesitanceamongexecutivesstemsfroma

fearthatassigningmobileresponsibilitytoexternalentitiesreducesvisibility—twooutoffivefeartheywouldlosecontrolovermobilepoliciesunderan

as-a-serviceagreement.Butthesefearsdonot

preventthemfromoutsourcing.Atleastone-thirdofexecutivesexpecttoexpandtheresponsibilitiesof

theirpartners,includingfromsecurity(53%)toapp

management,devicerepairs,andpermissions(around46%each).

Selectingtherightvendorcanbethecriticalfactor

indecidingwhethertooutsourcesmartphone

management.ThatsamehealthcareCFOpraiseshiscompany’ssmartphonepartnerfortheirabilityto

adapttothecompany’sspecificneeds.“Vendorsaregettingtoknowourbusinessbetter,whichisacrucialaspect,”hesays.“Ifourvendordevelopsnewoptionsandcapabilities,theycanalwaysbringthemtous;

thecommunicationisimportantbecauseupdatingusandgivingusanideaofwhatisouttherehelpskeepusinformed.”

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ManagingMobileStrategy|Executivesummary

Conclusion

Theimpactofsmartphonesonbusinessproductivityisclear,soputtingthesepowerfultoolsinthehandsoftheworkforcemustbecomethestandard.But

executivesmustnowshoreuptheirmanagement

policies,applyingthesamerigorgiventolaptopsandothercritical