I D C V E N D O R S P O T L I G H T

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1 I D C V E N D O R S P O T L I G H T I n t e g r a t i n g Mobile Business Workflow s: T h e E vo l u t i o n f r o m D e vi c e s t o E n t erprise S o l u t i o n s August 2012 Adapted from The State of Mobile Enterprise Software in 2011: An IDC Survey of Applications, Platforms, Decisions, and Deployments by Stephen D. Drake and Stacy K. Crook, IDC # Sponsored by Intermec This Vendor Spotlight outlines the growth of the mobile enterprise and the challenges associated with developing and managing applications in this new environment. As key ecosystem players, device manufacturers have the opportunity to offer integrated mobility solutions that bring together several pieces of the mobility puzzle. Intermec, a mobile and automated data capture device manufacturer, is one such vendor that offers a range of mobile applications and management solutions. The document also offers enterprises some guidance with regard to selecting a mobility solution provider. Growth of the Mobile Workforce The results of IDC's Mobile Enterprise Software Survey reveal the strategic importance of mobile enterprise solutions. The survey shows that nearly 80% of organizations plan to spend the same or more on mobility in the next months. Among respondents, the leading expected benefits are improved/enhanced worker productivity and increased sales/revenue. In addition, close to half of the respondents had mobilized three or more applications, such as office applications, productivity applications, and business intelligence. IDC also sees that enterprises are increasingly relying on specialized applications and management systems to help them tackle the sometimes daunting task of integrating mobile devices, data access, and workflow processes. Mobility, thanks to the increased use of intelligent devices such as smartphones, tablets, and ruggedized mobile computers, is now a critical component of virtually every enterprise. IDC predicts that by 2015, more than 37% of the global workforce approximately 1.3 billion workers will be considered mobile in some way, ranging from simply connecting to the enterprise via smartphone to fully working offsite via multiple intelligent mobile devices. Rugged mobile computers, printers, and scanners have been used in the enterprise for decades, starting with industrial and retail applications, such as inventory tracking, order fulfillment, order tracking and supply chain management. Over time, use has penetrated other industries (such as healthcare) and critical business functions (such as sales). However, the biggest driver of mobility in the modern enterprise is the widespread influx of consumer-grade devices, including smartphones and tablets. By the end of 2012, fully 55% of all business-use smartphones will be employee purchased and owned as opposed to enterprise owned. This represents a fundamental shift, where enterprises must integrate consumer-grade mobile devices into the company network and enterprise applications. This does not mean that the need for enterprise-class rugged devices has gone away. Rather, organizations are now challenged to find solutions that work across a changing portfolio of devices. Increasingly, enterprises will need to look for application development platforms that enable them to take advantage of technologies such as HTML5, which lets applications run across a broad variety of device types. But applications are only one part of the puzzle from provisioning devices and IDC 1354

2 applications to security and management, enterprises now must figure out ways to ensure that all mobile devices are properly integrated with corporate IT infrastructure. Without this integration, mobile devices cannot deliver the promised benefits of improving the speed, efficiency, and flexibility of the organization. Therefore, businesses are demanding that mobile solutions not only make data access easier but also streamline and accelerate business processes. Integrating mobile applications is complex, so vendors that go beyond offering components to providing a broad spectrum of solutions (i.e., combining devices, applications, and services to integrate mobile applications) will bring greater value to their customers. Challenges of Mobile Environments The rapid growth in the number of devices and applications accessing company data also is a huge concern. Enterprises now have an environment where users link to the enterprise from a variety of devices, through a mixture of networks, and using a range of applications. While the use of employee-owned mobile devices brings capital cost savings, the task of managing end-to-end solutions for many different mobile applications adds another layer of governance for IT. Challenges and considerations include the following: Application access must be balanced with the security needs of the organization and must comply with government regulations and industry standards. Solutions typically need to integrate with multiple back-end systems and support multiple devices on the front end. IT must consider what application types are most appropriate for which mobile workers (i.e., native, Web, hybrid) depending on the environments those employees tend to work in. (As mentioned, the advent of HTML5 may present an important development that simplifies this decision.) For a dispersed workforce, managing connectivity is a key challenge the mobile solution must be able to address. Enterprises must consider whether there are prebuilt solutions for their vertical industry need or whether they have to build them. Additional challenges come in the form of managing mobile devices because this task is typically outside many IT departments' core skill set. For starters, there's a huge administrative challenge associated with the ever-widening mix of users, liability schemes, devices, and operating systems. The two biggest administrative challenges are: Provisioning mobile devices that have short refresh cycles Keeping pace with application sophistication Finally, working with an ecosystem of providers can add to the complexity of implementing and deploying solutions. Enterprise mobility is an emerging technology area, and many different types of companies are offering products across each discipline (hardware, software, services). Just within the software space alone, there are hundreds of players from tiny start-ups to large multibillion-dollar enterprise software companies. Of course, hardware providers, services companies, and mobile operators represent other key stakeholders in the mobile ecosystem. This fragmentation leads to customer confusion as to where to start the mobility journey and who is best positioned to play the role of a trusted advisor along the way. IDC believes that a good place for organizations to start is by talking with mobility providers that they already have a good working relationship with, such as a hardware provider. Increasingly, these companies are one-stop shops for mobility solutions that incorporate hardware, software, and services IDC

3 The Strategic Importance of the Solutions Approach IDC anticipates growth in mobility management offerings combined with specialized applications not only from traditional software vendors but also from mobile device vendors. As vendors become more solutions oriented, there's a shift toward offering task-specific applications that incorporate sophisticated technologies previously not seen in the mobile market. And because the mobile device landscape is constantly evolving, device manufacturers can often take the lead in developing management tools and applications for their devices. Therefore, mobile applications and management solutions from a mobile device vendor may be the best option. These vendors have to keep pace with the changing nature of mobile technology and continually meet the needs of a mobile workforce that expects sleek and streamlined consumer applications. Moreover, the device manufacturer's hardware must integrate with a predetermined application environment and wireless infrastructure. It must be compatible with a preselected mobility application and, possibly, middleware. As a result, hardware vendors must be educated on all these aspects to fit in seamlessly. Some device manufacturers are even able to create specialized, process-focused applications to ensure that mobile devices are delivering the best solutions for the organization. Considering Intermec Intermec is an $848 million provider of mobile and rugged computing devices, printer/media systems, scanners, and voice recognition/voice-enabled solutions. The company has extensive experience in enterprise mobility as a leading provider of handheld, fixed vehicle, portable, and hazardous environment computers used in field service, transportation, direct store delivery, and distribution center operations. Intermec also has significant capability in the mobility life-cycle services arena, which eases the burden and complexity of deploying, managing, and supporting mobility across the enterprise. The Everett, Washington based company has more than 2,100 employees providing products and services worldwide. The company's applications and software support the needs of administrators, developers, and end users, from deploying and supporting Intermec hardware to creating software, enabling integration, and delivering bundled hardware and software solutions. As part of its mission to offer more complete solutions, Intermec not only offers some targeted software solutions to resolve specific customer issues but also develops custom mobile applications used to improve customer business processes and to increase workflow performance. Intermec is using a combination of its software components (emdi, VERDEX, and Skynax) to deliver a variety of customer-relevant solutions directed at the point of data collection activity. Whether it be capturing and verifying an address from a shipment, an image of a check for immediate deposit, or an image of a document to confirm pickup or delivery, Intermec Imaging Software Solutions focus on the capture, management, and transfer of data and information in real time to enhance workflow productivity and the overall profitability of Intermec customers. The following are some of Intermec's Imaging Software Solutions and the industries for which they are intended: Remote Deposit Capture (RDC): Paper checks are scanned and converted into an electronic format for processing by ACH systems. Benefits: Reduces the costs of processing checks by 96%. Can be embedded into existing business processing systems. Finalized check images can be archived for transaction history IDC 3

4 Mobile Document Imaging: A form scanned in the field can be automatically synchronized back to the host and central document management system, such as SharePoint. Benefits: Documents are scanned at the point of activity and then automatically synchronized with a centralized document store, including relevant metadata. Flatbed scanners are not needed. Speeds up information flow. Industries served: Field Service, Transportation and Logistics Credit Card Capture: Credit cards are scanned and converted into electronic format for processing by the approval systems in real time or in batch. Can be embedded into existing business processes. Benefits: Eliminates the requirement for a mag-stripe reader. Data is extracted and forwarded to an approval system quickly and securely. Shipment Address Verification: Shipment labels are scanned to identify the address from a label, match the address to a known address database, and confirm that the address is correct. Corrected labels can be printed even if the address is incorrect. Benefits: Incorrect and partial addresses are identified and corrected at point of package receipt, preventing costly exception process handling. License Plate Verification: A mobile handheld computer scans license tags and extracts details; supplements in-car scanners. Benefits: Stolen vehicles can be quickly identified; complements in-vehicle scanning. Industries served: Government Federal, State, and Local VIN Verification: VIN is scanned directly from either the windshield or the door post. A database lookup identifies and extracts key information about a vehicle and the vehicle's history and specs immediately. Benefits: Information can be used for fleet servicing and tracking by vehicle dealers, along with government agency use such as law enforcement and DMV. Industries served: Retail Auto Dealer, Government Federal, State, and Local Identity Verification: All forms of ID, as well as application forms for ID, can be captured as an image. Benefits: Capturing an image of the full ID, in addition to the mag stripe or barcode, adds an extra layer of security when trying to confirm the authenticity of the ID. Industries served: Government Federal, State, and Local Challenges Intermec does face market challenges. First, as the company changes its focus from just offering components to offering solutions, it will need to aggressively articulate the benefits of integrated applications and management solutions. In addition, Intermec needs to make sure its solutions are appropriate for the new reality of mixed mobile device environments versus just being right for rugged device type environments. Intermec's recent addition of an HTML5 browser to several of the company's most popular mobile computers, as well as support for ios and Android in Intermec's Skynax Mobility Management software, demonstrates the company's awareness of and readiness for this new market reality. Intermec needs to make sure the market knows this because more horizontal market companies may think of Intermec as a provider of only rugged device solutions IDC

5 The company also will face increased competition from tablet and smartphone manufacturers and their software partners, which are continually looking for new markets. Many organizations will have other mobile devices in addition to Intermec's, and the pressure to consolidate will be constant. Intermec will have to maintain its market share and specialized technology advantage in the face of this pressure. Conclusion The dramatic explosion in the use of consumer-driven smartphones and tablets has taken enterprise mobility to a new level. While mobile devices offer significant advantages for the enterprise, they also are creating a greater demand for sophisticated applications and management solutions that are compatible across a plethora of device types. It's imperative that enterprises consider the changes needed in the organization to support and manage a growing number of mobile devices, applications, environments, and users. While some enterprises are capable of managing mobility in-house, many will need to look outward for expertise. IDC recommends that businesses engage with a trusted mobility provider that can offer assistance in shaping the direction of the mobility strategy as well as the implementation, deployment, and ongoing management of the chosen solution. Working with a provider that has specialized expertise in mobility not only will ease the burden on IT but also can help ensure that companies achieve the fastest ROI possible. A B O U T T H I S P U B L I C A T I O N This publication was produced by IDC Go-to-Market Services. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC, unless specific vendor sponsorship is noted. IDC Go-to-Market Services makes IDC content available in a wide range of formats for distribution by various companies. A license to distribute IDC content does not imply endorsement of or opinion about the licensee. C O P Y R I G H T A N D R E S T R I C T I O N S Any IDC information or reference to IDC that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For permission requests, contact the GMS information line at or Translation and/or localization of this document requires an additional license from IDC. For more information on IDC, visit For more information on IDC GMS, visit Global Headquarters: 5 Speen Street Framingham, MA USA P F IDC 5

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