WHITE PAPER November TechInsights Report: Enterprise Mobility It s All About the Apps

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1 WHITE PAPER November 2013 TechInsights Report: Enterprise Mobility It s All About the Apps

2 2 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Executive Summary It s time for IT to turn the tables. Instead of having end users smuggle in the apps they want to use despite what IT supports, IT can become the originator of creative, functional, enterprise-ready mobile apps for internal and external customers. IT is the source, not simply the supporter or supervisor. The BYOD trend opened enterprise end users eyes to a new world of apps, but consumerization also forced IT into reactive mode, in some cases scrambling to keep up with employee demand. With the know-how of consumerization now under their belts, IT leaders can make the latest mobility push work for them by anticipating the apps customers want before they know they want them. Now is the time for IT to take control and work proactively with the business to understand their needs and deliver apps that solve real business problems, wow customers and generate revenue. New research commissioned by CA Technologies and conducted by Vanson Bourne in May-July 2013 shows the majority of 1,300 senior IT decision-makers surveyed already have or intend to implement an enterprise-wide mobility strategy. The data also revealed that while external customer initiatives are now outpacing internal BYOD projects on IT priority lists, both still need to be addressed. And for those already taking charge of mobility, the benefits are tangible: between 17% and 24% improvement in time-to-market, revenue, increased customer satisfaction, better employee productivity and retention/recruitment, and lower costs. While the benefits of mobility are great, concerns over security and privacy, multiple platform support, as well as budget constraints and lack of appropriately skilled personnel could slow mobility efforts. This research paper will help IT leaders: Drive mobility projects to meet the needs of internal and external customers; Identify the need to build a strong, enterprise-wide mobility strategy; Mitigate concerns over securing mobile apps and environments to protect end-user privacy; Understand the investments needed in training, technology and talent to support successful mobility initiatives; and Recognize the benefits a successful mobility strategy can bring.

3 3 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Big Opportunities Lie in Delivering Mobile Apps Employees and customers have already embraced mobile devices, but the opportunity to introduce them to unique, task-specific mobile apps is now in the hands of IT organizations worldwide. And the majority of those polled recently agree that in addition to internal BYOD projects and mitigating security risks, customer-facing apps and customer-driven mobility projects are now among their highest mobility priorities. Some 42% indicated an increased demand from customers, another 33% want to improve the overall customer experience and 26% pointed to a need to improve customer support all as reasons to implement mobility projects. It is clear customer demand and, ultimately, the desire to remain competitive have IT organizations putting mobility first when considering new or updated applications (see Figure A). Figure A. Why is your organization looking to implement mobility projects? Total: 1270 What Drives the Need For Mobility Projects? An increased demand from customers using mobile devices A need to formalize how our employees access our infrastructure through mobile devices Need to increase security of mobile access to critical data and applications Improve the overall experience of our end customers Increased demand from employees using their own personal devices at work Improve customer support Ability to move into new/emerging markets or channels Increase our customer base and grow revenue 16% 42% 39% 39% 33% 30% 26% 25% Keep up with or out-pace competitors 10% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

4 4 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com When asked to weigh their priorities, senior IT decision-makers worldwide all place the greatest importance on customer-facing mobile apps and device support. But, internal employee-facing mobile apps is a close second on the list of priorities, reinforcing the need for IT organizations to not only deliver innovative apps to external customers, but to also continue to offer cutting-edge technology to employees that consumer IT services (see Figure B). Figure B. What of your mobility projects is given the greatest priority? Total: 1270 Top Priority Mobile Projects 24% 39% Customer-facing mobile apps and device support Internal BYOD and managing employee devices 37% Internal employee-facing mobile apps The research detailed in Figure B also proves the era of the device is giving way to an increased focus on mobile apps, which can provide businesses a means to differentiate themselves from the competitors and draw new customers with creative and efficient mobile app related approaches to existing problems. Developing truly unique mobile apps enables an IT organization to flex their creative muscles, help outpace competitors and impress current and new customers. Mobile apps are now the means for IT organizations to effectively deliver new services and distinguish their companies from the competition.

5 5 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Mobility Success Requires an Enterprise-wide Strategy As with most facets of IT, the less siloed the approach, the better. The same holds true for enterprise mobility. Traditionally, IT operated within segmented areas of expertise, but that model doesn t stand up to today s disruptive trends and driving technologies. Mobility is just one of many areas that now require a holistic approach across IT domains to achieve the most success. This study uncovered the impact mobility has had on IT organizations worldwide and revealed how the effects of mobility will run through every aspect of an enterprise environment. Mobility has already affected security, budgets, development, organizational structure, staff and more (see Figure C). Figure C. Has your organization had to make any changes in the wake of the increased adoption of mobile devices in general (please select three)? Total: 1300 The Impact of Mobile Adoption Redesign our security strategy and policies Change the structure of the organization and realign roles Realign budgets and/or shift funding to mobile initiatives Change how IT interacts with other departments Support more platforms Train staff on supporting mobile platforms 34% 34% 32% 31% 27% 40% Rethink our IT strategy 22% Recruit new employees that understand mobile platforms 20% The dev and ops have had to work better together (DevOps) 17% Mobility has no impact 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

6 6 TENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Mobility impacts the overwhelming majority of IT organizations ( just 4% reported no impact at all) and therefore requires both tactical and strategic plans to address the immediate needs (such as developing mobile-ready apps) as well as anticipate long-term needs (such as training staff on multiple mobile platforms). Organizational changes, such as more collaboration between development and IT operations known as DevOps, also require significant time and resource commitments from an organization. Reasons such as these and more covered in the responses in Figure C demonstrate why it is critical IT organizations and the companies they serve begin to develop enterprise-wide mobility strategies now. This study shows that 38% of respondents worldwide have already adopted this approach, and 22% expect to do so within a year (see Figure D). Figure D. Does your organization have a single, company-wide mobility strategy in place? Total: 1270 Adoption of Enterprise-wide Mobility Strategies 10% 12% 38% Yes Will have in 1 year Will have in 2 years 18% 22% Will have sometime >2 years Never will have Still many do not have enterprise-level plans for mobility in the coming months, potentially putting them at competitive risk. Forty percent of respondents have designated a mobile team that handles issues as they arise, while more than one-third concedes they could be doing more with mobility. Nearly 30% recognize the need to bring mobility projects into one cohesive whole, but find it too difficult (see Figure E).

7 7 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Figure E. Even though you do not have a company-wide mobility strategy, which of the following describes your organization s mobility activities at present (select all that apply)? Total: 810 The State of Mobility in the Enterprise We have a single team that undertakes mobility projects as and when they arise We feel that we could be doing more with mobility We are working on many different mobility projects We want to bring our mobility projects together into one cohesive whole but find it too difficult We outsource the majority of our mobility work to an external provider Mobility projects are driven by the business departments and IT supports them 20% 40% 34% 29% 29% 28% Mobility projects are not of interest to us at all 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Security, Skills and IT Spend Remain Sticking Points The absence of an enterprise-wide strategy among respondents most likely isn t for lack of consideration. But, inserting mobility into multiple IT domains requires technology adoption, updated security approaches, and also cultural changes that are often the most challenging. The rapid uptick in mobile device use, now driving the demand for more mobile apps, took some IT organizations off guard and many likely resolved issues tactically on a one-off basis, without formalizing a strategy. Now as the opportunity to deliver mobile apps presents itself to many in this study, there isn t one single challenge presenting a roadblock to developing an enterprise-wide strategy; there are several. Just 7% said they would anticipate no challenges in implementing mobility initiatives. The majority of survey respondents identified many challenges they would experience as a result of a mobility implementation (see Figure F).

8 8 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Figure F. What challenges do you see from an organization like yours implementing mobility initiatives (please select up to 3)? Total: 1300 Mobility Challenges Security or privacy concerns Lack of sufficient budget for mobility initiatives Developing apps across different platforms simultaneously Lack of in-house mobile development talent and skills Getting support from all relevant departments within the org Lack of interest or commitment from the top management Meeting time to market and quality requirements Consistent user experience across platforms and devices Legal or compliance issues Testing and managing apps across different platforms/devices Integrating mobile apps with existing systems and processes 33% 30% 27% 24% 24% 22% 19% 19% 18% 16% 15% 0% 5% 10% 15% 20% 25% 30% 35% As with many disruptive technologies, securing the new apps, environments or platforms becomes a top concern for adopters. For this study, one-third of respondents not only identified security or privacy concerns as the primary challenge for their organization, about a fifth (18%) also noted legal of or compliance issues, both of which can be considered a subset of security in some many cases. New technologies can help organizations secure the mobile back-end infrastructures, mobile apps, mobile data and the APIs applications use to enable mobility. Mobile identity and access management move the security controls to focus on the end user, meaning regardless of the device used to access the app or the data it holds, the same policies would apply. IT organizations must consider updating their current security approaches to those that would build security into new mobile applications or wrap security around legacy apps now being designed for mobility. Applying these new approaches and technologies will no doubt require new skills in IT organizations. That means there will be a mandate for training existing staff or funds to attract and retain new talent. About one-quarter (24%) of respondents identified the lack of in-house mobile development talent and skills as a challenge to implementing mobility initiatives. The need to invest in mobility technology and talent will cause a re-allocation within IT budgets as well, the research revealed. According to this study, IT spending on mobility will increase 50% over three years from an average of 12% of the overall IT budget today to 18% (see Figure G).

9 9 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Figure G. What percentage of company-wide IT budget is being spent on mobility projects this year and in three years time? Total: 1300 Percent of IT Budgets Spent on Mobility Now and in Three Years Average % of IT spending on mobility today 12% Average % of IT spending on mobility in 3 years 18% 0% 5% 10% 15% 20% Some of the investment in mobility initiatives will happen outside of IT in individual business departments which will put more pressure on IT to become the leader in mobility innovation for their businesses. Respondents see the average percent of spending on mobility outside the IT department will increase 55% in three years, from 9% to 14% (see Figure H). Figure H. What percentage of spend on mobility comes from departments other than the IT department both now and in three years time? Total: 1300 Percent of Spending on Mobility Outside the IT Department Now and in Three Years Average % of mobility spending outside IT today Average % of mobility spending outside IT in 3 years 9% 14% 0% 5% 10% 15% The Payoff of Mobility: Quantifiable Business Benefits As mobility drivers increasingly center on the customers, so do the benefits. Tackling mobility initiatives will require IT organizations to establish enterprise-wide strategies and secure new platforms and applications, but it will also deliver improved customer satisfaction, more customers using mobile software and increased revenue. Benefits are both external and internal, including both customer experience as well as employee productivity. For the respondents of this survey, more than 75% have already seen or anticipate seeing a wide range of these mobility benefits, but it is notable that the #1 benefit seen or anticipated by 86% of respondents is an increase in customer satisfaction (see Figure I). It is clear that enterprises today recognize how critical a mobile strategy is to ensuring that their customers are happy and motivated to continue doing business with them.

10 10 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Figure I. What benefits have you seen or do you anticipate seeing from implementing mobility initiatives? Total: 1270 Mobility Benefits Increase in customer satisfaction More customers using our software/services Increase in employee productivity 34% 52% 86% 32% 51% 83% 36% 47% 83% Acceleration in time-to-market for delivering new apps and services Increase in employee retention or recruitment 36% 45% 81% 35% 42% 77% Revenue increase from customer-facing mobility apps Cost savings from BYOD programs 26% 50% 76% 34% 42% 76% Already seen Anticipated to see For those organizations in this study already reaping the rewards of mobility initiatives, the results are quantifiable and tangible. Senior IT decision-makers worldwide report: customer satisfaction improvements of nearly 24%; employee retention and recruitment efforts improving by more than 21%; and employee productivity increases of 21%, just to name a few (see Figure J). Figure J. What has been the percentage improvement, increase or reduction for each of the quantifiable benefits you have seen? Asked of those who have experienced benefits, number varies by option. Mobility Improvement Results Metric Percent Improvement Increase in customer satisfaction 24% Increase in employee retention or recruitment 21% More customers using our software/services 21% Increase in employee productivity 21% Revenue increase from customer-facing mobility apps 20% Cost savings from BYOD programs 17% Acceleration in time-to-market for delivering new apps and services 17%

11 11 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS ca.com Mobility Next Steps and Advice If you haven t already acted, the time to take control of mobility is now. The opportunity to proactively develop, deliver, manage and support innovative mobile apps and securely manage multiple platforms and devices is too big to ignore. Here CA Technologies offers guidance based both on the findings of this research as well as the experience our experts have gathered from customers currently achieving great success with mobility in real-world environments. There will be challenges, but the rewards will outweigh them tenfold. Establish an enterprise-wide mobility strategy. History doesn t lie. Companies don t achieve success with disruptive trends with one-off, siloed approaches. The mobility strategy must encompass everything from development to operations to business processes and more to truly be successful. Otherwise efforts could be lost to pockets of innovation not fully realized by the entire organization. Identify team players from key IT domains for input. An enterprise-wide strategy won t happen overnight. Cull input from experts across IT domains who can weigh in on the tools, technologies and talents already in place and those still needed to support the strategy. All this should tie to the larger business goals and objectives of the individual businesses and other corporate mandates like employee and customer satisfaction. Use these players to get an inventory of what you already have and what you still need to make mobility happen. Adopt DevOps principals to increase collaboration among disparate teams. Collaboration among teams is critical to the success of enterprise mobility initiatives. Consider the tenets of DevOps to help break down the cultural walls that could hinder mobility efforts. For more insight on how leading businesses are succeeding with DevOps, see the companion report titled TechInsights Report: What Smart Businesses Know About DevOps. Invest in mobile-specific security tools to mitigate risks. Mobile is a new environment for many, and with any new environment, also come unknown (at least to you) risks. Invest in tools to help secure not only mobile applications and devices, but also the data residing within them. Investigate API management technology to better understand how it could boost your mobile security and development efforts. Train and recruit mobile development talent to accelerate internal efforts. It s no surprise mobile development skills are in demand today; companies are creating new and revamping legacy apps to perform in this new, highly mobile world. Discover the hidden mobile talents you may have in your organization and earmark budget dollars for training and new talent if you are lacking the needed skills.

12 12 ENTERPRISE MOBILITY IT S ALL ABOUT THE APPS Methodology This global study was conducted online by Vanson Bourne in May-July 2013 with 1,300 senior IT decision-makers at enterprise organizations across five industry verticals of financial services, healthcare, manufacturing, public sector and telecommunications. The survey was conducted in the following geographies: Americas: United States, Brazil Europe: U.K., France, Germany, Italy, Switzerland, Iberia (Spain/Portugal), the Netherlands, the Nordics, Israel APAC: Australia, China, India, Japan, Singapore, South Korea Respondents were required to hold IT executive, management, project lead or enterprise architect titles at enterprise organizations with revenues (or equivalent) of at least $100M. For More Information For further information on this TechInsights Report as well as the latest news and research on other key technology trends, visit ca.com/rewrite. Connect with CA Technologies at ca.com CA Technologies (NASDAQ: CA) creates software that fuels transformation for companies and enables them to seize the opportunities of the application economy. Software is at the heart of every business, in every industry. From planning to development to management and security, CA is working with companies worldwide to change the way we live, transact and communicate across mobile, private and public cloud, distributed and mainframe environments. Learn more at ca.com. Copyright 2014 CA. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. CS _0814

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