MOBILE SOLUTIONS IN BUSINESS PROCESS

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1 MOBILE SOLUTIONS IN BUSINESS PROCESS Maija-Kerttu Sarvas Helsinki University of Technology Telecommunications Software and Multimedia Laboratory P.O. Box 5400, FIN HUT FINLAND Abstract The aim of this paper is to describe what new applications mobile access to corporate information systems enables and to evaluate business benefits of such services for the end user organizations. First there is a brief look about the evolving enterprise mobile business. Then discussion about the benefits a mobile solution can bring to a company, followed with a closer look of the business value involved. Second an introduction of application needs of a mobile business solution. In the end a brief look of what is available today having Nokia s offer for enterprises as an example case. 1. Introduction As having and using mobile device is part of almost everyone s everyday life in countries with high mobile penetration like Finland. The growth in the business is no more very prominent without something new to offer. it is quite understandable that the companies in the mobile business board their focus and look for new opportunities. Enterprise business market is very attempting and not for the least because it involves big money. Some figures from enterprise IT market to support this declaration. The average enterprise spends c.4 % of its gross revenue on IT, which is c.500 EUR month for employee and from that c.60 EUR per employee per month for mobile services. Highest spending per employee is in IT, telecom and financial sectors. The global enterprise IT market spent c BEUR in Largest part is in system integration and outsourcing services [12]. Logical next step in mobile business is targeting more at enterprises than before and offering mobile solution designed for them. This can be seen for example in Nokia reporting one of its goals to extend mobility to enterprises. Nokia intends to capitalize on the companies the needs for mobile and seamless connectivity. They aim to do it by offering products and services for companies and business people. To be able do it they need to collaborate with leading technology and system integration companies [8]. Enterprise themselves are starting to see the opportunities in mobile solution for business processes. Wireless business solutions can be seen as a way to eliminate the limits of time and space and that way make business processes more efficient. A CIO (Free Newsletter published by CXO Media Inc) research showed that 52% of CIOs (Chief Information Officers) surveyed thought wireless technologies important to their companies business goals. The key drivers to wireless were better productivity, streaming processes and improving user satisfaction. In the same research respondents expect the number of wireless user to more than double in the organization in the next 12 months [2]. 2. Mobile Strategy Companies need to develop a mobile strategy to understand what is the best strategy for them to get best advantage of the mobile business processes and how will they get there To get companies do this they need to be woke-up and get to realize the value of mobility. This can be done by educating stakeholders, securing the environment and deploying the technology [4]. 2.1 Investing in mobile solutions In a research by CIO company CIO s were asked about the ROI (Return of Invest) of their wireless solution. Forty percent replied that they have or will achieve full return within 12 months and other 42% within 24 months. [2]. A mobile workforce can bring new level of productivity and financial success to a company. Enabling mobile processes is an important way IT can bring business value to a company [4]. For example a Intel case study showed that one extra hour of productive work a week justified the additional cost of a notebook PC, bringing the TCO (Total Cost of Ownership) to the same level as with desktops. The same study showed that mobile workers are even more productive with productivity improvements of three to

2 eight hours a week. Did the employees not only work more out of the office the also performed new tasks [4]. A mobile solution to business gives higher Total Benefits of Ownership (TBO). Benefits can be seen in following areas [4]: Faster decision-making. With instant, alwayson access to data faster business decision can be made. It can bring competitive advantage to the company. Sales-force efficiency. Information can be accessed anywhere and sales can faster add value to the customer. Better accuracy. Managers being able to communicate whenever and where ever can prevent or at least minimize mistakes. Higher employee satisfaction. Tools to work productively anytime and anywhere rises satisfaction. This will lower employee turnover and become that way a competitive advantage. Increased productivity. Being mobile and connected can increase employees efficiency of time. The mobility work style can give a dramatic improvement in productivity for business and business users. A Gartner report (2001) showed a 41 percent higher productivity among employees using wireless LAN and notebooks [1].. The view that smartphones and more advanced mobile devices are only for manager level employees is becoming old fashion. The whole workforce might need to be mobile. Equipping warehouse and factory employees with mobile devices can help eliminate mistakes and lower contamination and also increases ROI and productivity [4]. 2.2 Business Value Technology must convert into business value not the other way around. The objective should be where and when business can be executed better, without getting users confused with how [1]. A good way to create mobile business processes is to extend existing business logic with common standards to mobile devices. This way existing skills and tools can be used and less training and learning is needed. All businesses need information for coordinating their resources. Coordinating is the most general use of information in business. It is also the most difficult and most expensive asset [1]. Mobile solutions generate big coordination capacity. They can revoke physical barriers to business coordination. The two most important ways for mobilization to add business value are the ability of an authorized agent to take action and contribute to coordination of intermittent business solutions. [1]. An authorized agents are here seen as the people whom the execution authorization is given. Usually in a fast and complex business environment they need to confirm and check the right actions to take. They need to know what commitments they can and should take. These actions create latency in the process, which gives an opportunity for competition to attack. Execution speed is the coordination problem here. Mobile solutions give distributed resources way to act faster while still remaining under control. Mobile solutions do not just automate business process they change them [1]. People are the most valuable and least reliable components of the business process. A process that does not misuses peoples time and reduces the need for human touch point creates business value. The right mobile solutions can drive effectiveness in the following areas user efficiency, network efficiency and enterprise efficiency. Better user efficiency can be achieved through offline functionality, application choices and integration of solutions. Network efficiency can be proved by reducing network s impact on applications, protect users against network inefficiencies and optimizing information flow. This can be done with optimized bandwidth and latency and seamless connectivity. Enterprise efficiency can be proved by enabling offline user applications and eliminating needless human labor associated with many applications [1].. Re-defining business process is a good point also to think of mobilizing the process. It is also good to keep in mind that just adding mobility to a process does not make it self-evidently better. Changes in business value are almost associated with people. Technology deserves little credit for creating value, and also for destroying it. [1]. 2.3 Concerns of the companies Even the benefits of mobile solutions can be seen and notices by many companies, there still are some concerns moving into them. Two CIO researches should that security, integration with existing infrastructure, management and user support are seen as biggest challenges in moving to mobile solutions. One research among 250 IT executives showed the greatest concerns about implementing wireless were security (66%), user support (37%), privacy (32%) and cost restrictions (29%). [2] Another research among CIOs asked to list the 3 top challenges in supporting and managing wireless

3 technologies. They were integration with current infrastructure (43%), security (38%) and real time technical support (35%). [3]. Later in this paper I ll go through what mobile solutions that now available. The issue about security is understood and variety of solutions is available. Technical support for the middleware is on place, but the support of the end-user is not clear. Also the concerns about integration with current systems are in understandable. There is no one answer or solution that works for all to it. 3. The applications needs of mobile solution In a research CIOs were asked about wireless applications already in use. They answered that most used were (86%), access to company data (80%), scheduling information (75%), company intranet (58%) and Internet (57.5%). The research also asked what will be supported in future a growing number will support , calendar/scheduling, personal productivity and transaction-based applications [3]. I would like to point out that this research does not really point out what applications are used (except ), it shows in what type of processes and areas the applications are most used on or will be used on. is the most common and best supported application on mobile devices. Is it more a personal messaging tool or part of business application is a good question. Coordinating information flow through can be seen as part of a business process. The use of other more obvious business processes through wireless applications inventory management and sales automation is growing [2]. Some general guidelines of what a mobile business application is and what criteria should it meet is discussed in the following. For the application to be usable, taken into use and effective it should resemble the applications already in use in the company. Connection-oriented application and ones demanding a lot of interactivity from the user are most challenging to integrate into the mobile solutions. A new architecture is needed to meet the requirements [1]. A mobilized computing architecture is based on clientside applications that continue working whether or not a connection is available [1]. Applications for content management are easier to use and more efficient when the power of the local devices is used rather than depending on a network connection [1]. The applications should take most advantage of the benefits of each mobile device. That way the users get the most out of their devices. This to be possible a mobile solution should put minimum requirements on the device, maximize openness and be based on standards [1]. If the mobile solution depends only on the existence of files, all the mobile application needs to do is to read and write files. The files are then forwarded to the companies network, where a server executes them [1]. Intel has found that three application architecture patterns represent 80% of all mobile business solution needs and opportunities [1]: Offline database synchronization for CRM, HR, SCM and ERP systems. Offline document/forms synchronization for supporting collaboration between employees. Offline portals for access to content catalogs. Intel also identified four critical capabilities for any mobile solution. These are offline data management, seamless connectivity, multiple platform support and power and performance optimization. Offline data management in needed to enable the same user experience regardless of the connection status. This calls for the mobile solution to asynchronously store and manage data from the client to server. Seamless connectivity requires the application capability adapt to the networks state changes and behave appropriately. Multiple platform support asks for the applications to be written using open specifications and standards. Power and performance optimization requires mobile applications to deliver fast computational and I/O performance to save battery life [1]. 3.1 Security Security being one of the issues that worries companies in mobile solution an application needs to safe to use from this aspect also. In wireless solution middleware plays a critical role. It sits between the public network and the private corporate network. It needs to fulfill the security demands. More transparent it is, easier it is to maintenance. The security solution can be a VPN client that is optimized for wireless networks and provides cryptography, a VPN gateway for tunnels to serve wireless clients and authentication services. 3.2 Usability Mobile devices are smaller with smaller screen display and limited or different keyboard than computers.

4 Applications built for computers might not be that usable on a mobile device. To get people to use an application it needs to give a least acceptable user experience. Applications user logic and UI may need modification to fit the needs of the user and limitations of the mobile devices. 4. Mobile Business Solutions today To give a view where the industry is today and what is available a mobile solution from Nokia is described here in more detail. Sony-Ericsson is in the market with similar products and solutions. Both companies work with IBM to offer and develop business applications to their mobile devices. Also other similar alliances around the business can be found for example Plam i705 providing Sibels Sales force automation software integrated 4.1 Nokia s mobile solution for enterprises Nokia paints out a user scenario where with mobile solutions people are able to make full use of idle moments in everyday life. There are two ways to doing it. First one is to support services needed by mobile professionals with applications like , calendar and the Internet. The other one is to implement company specific applications to support working. For example sales and filed force automation applications. Nokia provides mobile devices for individual business users and a middleware solution for enterprise to enable mobile process. They also develop applications to connect the individual users into the business process. Nokia divides business user to different profiles according on three key features. What is the sufficient size of the screen for the user, need for input mechanisms and need to have compatibility with office applications. Direct Messaging devices (Nokia 6820i), meant for person-to-person messaging and Communicators (Nokia 9500), for access to back-office applications, to knowledge workers and Smartphones (Nokia 6600) for skilled and professional workers. [7]. They all offer personal information management with calendar and contacts database, access, back-up, synchronization, connectivity to IT infrastructure, device security and development tools [7]. Nokia s middleware solution is Secure Mobile Connectivity Solution. It works transparently and does not require any changes to existing content or applications. It includes the following components. Nokia One Business Server a solution for mobile . It leaves the company freedom to use select and integrate any environment to the mobile device. It reforms the content within the corporate network to fit on small screen. There is no need to change existing applications. [444] Nokia Secure Access system SSL-based VPN solution which enables secure access to corporate , applications and resources for mobile employees and partners. browser based remote access solution. [10] Nokia Wireless Accelerator can be used on client-server and server-only mode. The server- only access does not require any installation in the client. It allows access with any device with a web-browser having Nokia Wireless Accelerator set as a proxy. In the client-server mode a client is installed on the mobile device or laptop [11]. Nokia phones support open standards and protocols. They are based on the Symbian operating system. This allows and makes easier the developing of services and applications [6]. Apart from this Nokia has co-operation with different software vendors to provide software business applications. For example a push based on open standards (Push-IMAP and SyncML) was developed with Oracle Consilient Software [5]. Nokia works with Computer Associates International to provide e-management applications to its mobile devices. CA s Unicenter provides solutions for inventory management, software distribution and data protection. [7]. With IBM Nokia plans to integrate functionality of IBM WebSphare product family to provide end-to-end mobile solutions [6]. Nokia also has The Nokia Channel Accreditation Program to educate partners to sell Nokia mobile solution for enterprises. [9] Nokia provides assistants for it customers Nokia Support Web for its resellers and network software users. The help for end-users, the ones using the mobile device, is more open question. It can be available from the carrier, from the application provider or the company provides it to its own employee. 4.2 Business Model On the private mobile phones market and voice services the players are the mobile device provider, the network operator to provide the connectivity and services and the subscriber. Service operator can have a role, but it is still unclear. The enterprise market brings more players involved. The application provider is also involved. Here the need for a service provider is more obvious. Apart from the applications enterprises need support, training and maintenance services for there mobile solution.

5 To get a full mobile solution to business process today enterprises can contact a service provider like TietoEntator and Accentur. Applications can be integrated and modified from exciting office solutions. New ones can be applied from the variety of mobile applications available, though there is not available a mobile solutions for all needs and all mobile devices. The service providers do provide the support needed. Also network operators like TeliaSonera and Elisa offer services for enterprises. Network operator needs to be involved in a way or other to provide the mobile network. An enterprise can also choose to build their mobile solution in house from the components available at the market. Who is involved and what are the roles and the earning logic in the enterprise mobile market is still evolving. Many players see the lure possibilities of the marketplace. 5. Conclusion The value of the mobile enterprise business is easy to see. The benefits and improvements mobility brings to business processes are easy show. TCO and ROI figures look promising. The market is still in it early stages. What are the solutions needed and how they should be implemented? This paper discussed some of the features that can be critical for mobile applications. The solutions now available, like the one from Nokia, do not seem to fulfill the criteria. They are connection-oriented, based on same logic than used for computer based applications and dependent of the network connection. Network connection and network usage bring the value and money to network operators. In there view the best applications would use the network as much as possible. Their interest might be very different from the application users point. A connection-oriented application is good business for the network operator. One could argue that in future when 3G networks are available and quality of services is better the connection is no more an issue. Probably in the future also the network roaming increases. Not only between different mobile networks, but also switching from mobile network, to LAN or company network on the move. This all should be as transparent as possible to the user. An application that is not dependent on the connection supports this view better. Will the role of software developers increase, with more applications coming available on mobile devices? The variety of available mobile devices is large today, leading operation systems in them being Symbian, Palm OS and Windows Mobile. Usage of platform independent development tools like Java, might be an answer to some of the problems. Or will companies buy services from service providers that will build the solutions by integrating exciting application to the mobile devices. Small and medium size business may not have the money invest in an integration project. Services providers can build and host mobile solutions, renting the service to S&M business. The way the value of mobility and the growth of employee efficiency is presented to companies raises the question what is our work style in the future? One can work anytime, anywhere or is one demanded to work anytime, anywhere? The boarder between work and leisure has been narrowing. Will the availability of an employee anytime anywhere make it vanish? Idle time needs to be made productive. Or that is at least what we are told as marketing message from the vendors of this business. Markets today are complex and move fast the role on innovation in business is getting more important. To be innovative and creative idle time and a level of freedom is needed. The business model and earning logic of the enterprise mobile business is still evolving. The role of the service provider is more critical than in the individual mobile market. The division between network operator and services provider can be seen more clearly. There are alliances working towards the markets. Relationships come more important, sharing and combining the knowledge of this marketplace. New solution alliances and channel programs will evolve. A packaging of total solution is not in place. Questions like end-user support and billing need answers and solutions. References [1] P.Burris The Business Value Roadmap to Mobilized Software Solutions. freemarketpress. [2] CIO Research Reports. W ireless Intentions. m?id=15 [3] CIO Research Reports. The payoff of Wireless IT Investments. m?id=68 [4] Intel Information Technology With Paper: Building the Foundation for Anytime,

6 Anywhere Computing How the strategic coupling of notebook computers and wireless networks makes a business more successful. /intel_whitepaper.pd [5] Nokia Press Release: Push for Oracle Collaboration Suite to be offered on Nokia 9500 Communicator and Nokia 9300 enterprise smartphone with Consilient Software. November /pressreleases/ES_Push% 20 _Oracle.pdf [6] Nokia datasheet Integrated IT for mobile management. tsrefcases/ca_final.pdf [7] Nokia white paper Small Change, Big Impact tepaper_v3_ _bitpipe.pdf [8] Nokia Form 20-F KIA_MAIN_18022/CDA/Categories/AboutN okia/financials/_content/_static_files/nokia_ form_20f.pdf [9] Nokia Channel Program. [10] Nokia SSL VPN [11] Nokia Wireless Accelerator l [12] Slides from course Networking Business (S ) given by prof. H. Hämmäinen. html