Definition. Mobile apps market history. Business apps types:

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1 J son & Partners Consulting presents market research of the mobile business apps market. In this research the specificity of world and Russian market has been reviewed and dynamic of its development. It gives full information about key market players, market projects, ways of mobile business apps monetization, main trends and barriers of development of this branch and market development forecast until Increasing popularity of smartphones and Tablet PCs in the world is the key point for mobile business apps market growth. Definition Mobile business apps type of apps that oriented for corporate use. Mobile business apps have functional usability oriented on business tasks of the company. Such apps are usually analogues or additions to corporate software (CRM, ERP, communicative software). They can be distributed via apps shops (Apple Apps Store, Google play) or directly from manufacture to company employees. Mobile apps users are company s employees. Apps could be distributed via SaaS model or via Custom software module. Mobile apps market history In the research J son & Partners Consulting studied the apps market history starting from the beginning until nowadays, all key market players and indicators are provided. Business apps types: Apps that can provide help to the smartphone holder or Tablet PC in work, study, business are belonging to business apps category. It means business apps are such utilities that make easier different office work: Communicative business apps (working day management, manage meetings, projects, making corrections in the documents via mobile apps (Adobe Reader, Word, Power Point, Excel etc.) CRM (systems to manage the relations with clients) ERP (enterprise resource planning) BPM (Business project management system) Electronic Document Management System Business Intelligence system (business analytics) Case Management system (case management)

2 Business rules management system ECM (corporate content management) Manufacturing Execution System MES There are business apps that are available in apps shops (such as communicative apps or more complicated: CRM, BI, ERP) and apps that distributed only inside the company and are aiming for specific goals. J son & Partners Consulting research consists not only theoretical description of business apps but examples of successful decisions. Based on this information it is possible to choose a suitable apps for business, that will help a dynamic and sustainable company development. Analyzing the effective methods of business apps monetization J son & Partners Consulting experts looked at 2 largest apps shops and concluded that paid apps share in Apple Apps Store is higher than in Google Play Market in the business sector. This is due to the fact that the share of paid mobile apps in general in Apple Apps Store is higher than in Google Play Market. Fig. 1. Share of paid and free business apps, % Average price for business apps is $8,04 for ipad and $3,62 for iphone. In the meantime the average price for apps is $3,29 and $1,86 accordingly. As a result business apps developers counting for solvent audience as average price for business apps is the highest among other apps. Mobile apps global market In the research you can find the detailed change in structure of mobile business apps market players and its differences from the classic business-scheme of apps market. Most categories of apps have been selling in apps shops, business apps usually distributed by other means: developing and adjusting to the particular client and are selling to the client directly without shop.

3 Fig. 2. Volume of the world mobile business apps market, bln. USD, 2012, 2016 According to J son & Partners Consulting, world business apps market volume in 2012 was $250 mln. For the next four year mobile business apps have very good perspectives for growth. In 2012 business apps share on the market for all mobile apps in money value was a little more than 3%. J son & Partners Consulting estimates this indicator will reach 4,5% in According to J son & Partners Consulting business apps market volume in money value will increase 14 th times and will be 3,55 bln.usd. It would happen due to the appearance of global mobile business systems, that will force the developers of business apps go to the shops rather than directly to the client. Fig. 3. Business apps market drivers and barriers Basic drivers: Barriers: Comfortable use of mobile apps for business tasks Expansion of 3G, LTE, NFC. Increase capacity of channels Smartphones expansion, icnreasing penetration rate of mobile devices Not understanding by the companies the possibilities of business apps and how to use them High costs for business apps development Lack of public awareness about the benefits of mobile business applications Increase in number of Tablet PCs Low quality of mobile internet Improving the efficiency of the company Drivers for business apps market development: increase in sales of existed park of smartphones and Tablet PCs, expansion of 3G, LTE, development of operational systems, ease use of mobile apps for business tasks

4 Russian Mobile business apps market overview Fig. 4. Russian Mobile apps market, mln USD, average annual growth rate of the market (CAGR), %, 2012, ,9 3,2 2012A 2016F According to J'son & Partners Consulting data Russian mobile business apps market volume was $3,2 mln at the end of J son & Partners Consulting estimated that Russian business apps market in 2016 will be $62,9 mln. Annual average market growth for the following four years will be 110%, be ahead of the world indicator - 94%. Russian mobile business apps market trends Business apps are also market apps trend Business apps in Russia just start to gain popularity despite the fact that exactly they can help smartphone user in work, study, business development. Nevertheless this business branch is expanding rapidly and according to J son & Partners Consulting is being the most appealing for investors. Changes in market demands Business apps market will influence the future organization of the business. In the future for 3-5 years business systems will actively migrating to mobile platforms. Development of customized apps is available for large companies Nowadays not all companies are ready to transmit some their business tasks on the mobile devices, and only few Russian companies have their own business apps for corporate use. Mobile market growth It is worth to mention that this market is just starts its development, as a fact share of smartphones and Tablet PCs in Russia just start to growth, together with mobile internet penetration, LTE networks, and expansion of 3G covered territories. As a result more and more companies are willing to use business apps for incorporate goals. Considering the trends of the Russian mobile business apps market J son & Partners Consulting experts marked that business apps are market trends itself. Business demands

5 in getting access to different functions outside the office are increasing. Customized development are available mostly to the large companies, but Russian mobile market is growing fast and in the future this segment will be popular among the wide range of business organizations. Apps developers rating Analyzing the Russian business apps market the rating of developers in this sector was prepared. Following companies were included: Enterra, «InfoShell», MobileUp, Hint Solutions, e-legion, Unreal Mojo. REDMADROBOT etc. Interviewing the Russian mobile business apps users In terms of this research, was made an interview with the Russian mobile business apps users and were indicated the actual preferences in this market apps on the Russian territory. Interview helped to receive the answers to the following questions: How many people are already using business apps nowadays? What types of business apps do they prefer? What is the time of use of business apps? Who gives an idea to mobile device holder to use mobile business apps for working tasks or apps are used in the free time? According to J son & Partners Consulting interview that was in March 2013, the number of active business apps users on mobile devices nowadays are 56% users male population. The main interviewed age category years (33% ) and also (28% ). Fig. 5. General demographic characteristics of the business applications user's on mobile device, Russia, March 2013 Age Gender It is important to note that companies are compensating the costs for cellular communication for half of the mobile business apps users.

6 Fig. 6. Compensation of cellular communication services, Russia, march % 39% Full compensation Partial compensation No compensation 34% Resource: J`son & Partners Consulting Less and less companies are compensating mobile internet to the employees who are working with business apps for business tasks 53% of users receive compensation, 47% pay for mobile data transfer services. Fig. 7. Compensation of mobile access to the Internet services, Russia, March % 47% Full compensation Partial compensation No compensation 32% Resource: J`son & Partners Consulting For working with business apps the access to internet is needed. If companies want to transfer some business tasks to the business apps and initiate its use, the costs for internet must be covered by these companies. The fact that half of business apps users should pay for mobile internet themselves is a constraining factor for the business apps development at all. Cellular communication services are being compensated by the users of mobile business apps, much less compensation is being received for the mobile internet that is influencing directly on the use of mobile business apps in general. Average number of installed business apps - 5 business apps. As usual if person is using business apps for working tasks, this person usually installs several apps. (3 6 apps are usually installed on the smartphone/tablet PC of the mobile business apps users).

7 Fig. 8. Number of installed business apps, Russia, March 2013 Conclusions Mobile business apps type of apps that oriented for corporate use. Mobile business apps have functional usability oriented on business tasks of the company. Such apps are usually analogues or additions to corporate software (CRM, ERP, communicative software). They can be distributed via apps shops (Apple Apps Store, Google play) or directly from manufacture to company employees. Mobile apps users are company s employees. Apps could be distributed via SaaS model or via Custom software module. In the research J son & Partners Consulting studied the apps market history starting from the beginning until nowadays, all key market players and indicators are provided J son & Partners Consulting research consists not only theoretical description of business apps but examples of successful decisions. Based on this information it is possible to choose a suitable apps for business that will help a dynamic and sustainable company development. Average price for business apps is $8,04 for ipad and $3,62 for iphone. In the meantime the average price for apps is $3,29 and $1,86 accordingly. As a result business apps developers counting for solvent audience as average price for business apps is the highest among other apps. According to J son & Partners Consulting business apps market volume in money value will increase 14th times and will be 3,55 bln.usd. It would happen due to the appearance of global mobile business systems that will force the developers of business apps go to the shops rather than directly to the client. Drivers for business apps market development in Russia: increase in sales of existed park of smartphones and Tablet PCs, expansion of 3G, LTE, development of operational systems, ease use of mobile apps for business tasks. According to J'son & Partners Consulting experts mobile apps market at the end of 2012 was $137,3 mln. and it is expecting to reach $1159 mln. at Analyzing the Russian business apps market the rating of developers in this sector was prepared. Following companies were included: Enterra, «InfoShell», MobileUp, Hint Solutions, e-legion, Unreal Mojo. REDMADROBOT etc. At the end the interview helped to receive the answers to the following questions: How many people are already using business apps nowadays? What types of business apps do they prefer? What is the time of use of business apps? Who gives an idea to mobile device holder to use mobile business apps for working tasks or apps are used in the free time?

8 Content of the Report Resume 1. Sources and methodology 2. Definition and classification of mobile business apps and services 2.1. Establishing of mobile business apps and services market 2.2. Mobile business apps and services market appearance 2.3. Types of mobile business apps 2.4. Business models, monetization 2.5. Market structure, participants 3. Overview of the world mobile business apps market 3.1. Mobile business apps market volume and dynamic in the world, Mobile business apps market volume and dynamic in the world, Development of the mobile business apps and services in different regions of the world 3.4. Industry leaders of the mobile business apps developers 3.5. Examples of the popular business apps. 4. Overview of the Russian mobile business apps market 4.1. Mobile business apps market volume and dynamic in Russia, Mobile business apps market volume and dynamic in Russia, Market drivers and barriers 4.4. Trends of the mobile business apps market Examples of the popular business apps. 5. Rating of the Russian business apps developers 6. Parameters for business apps use on the mobile devices 6.1. Use of business apps on smartphones 6.2. Active users of mobile business applications on smartphones, demographics, parameters: 6.3. Type of device used for work with business apps 6.4. Operational system, pre-installed on the mobile devices 6.5. Types of using business apps 6.6. Types of using business apps depending upon age categories 6.7. Types of using business apps depending upon gender diversification 6.8. Types of using business apps depending upon type of education 6.9. Types of using business apps depending upon sphere of activity Number of installed business apps Frequency of business apps use Closest plans for business apps use The initiative of business applications Satisfaction of the use of business apps Reasons of non-satisfaction of the use of business apps The use of business apps in the non-working hours Compensation for cellular communication Compensation for mobile internet access 7. Adjacent market 7.1. Smartphones market in Russia and worldwide 7.2. Tablet PCs market in Russia 8. Summary and conclusions

9 The newsletter was prepared by the J'son & Partners Consulting Company. We exert every effort to provide actual and forecasting data representing the situation in full and available at the time of the publication of the material. J'son & Partners Consulting reserves the right of revising the data after publication of some new official information by individual players. CONTACT FOR MORE INFORMATION: Pavel Yermolich Commercial Director

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