App Development Strategies Top 6 Trends
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1 App Development Strategies Top 6 Trends November 27, 2012 Yankee Group Jason Armitage, Principal Analyst Chris Marsh, Principal Analyst Page 1 Copyright 2012
2 Poll Question In 2013, will your company/organization use apps to interact with: Customers and/or partners Employees Both of the above Not using apps Page 2 Copyright 2012
3 Agenda Market Context Top 6 Trends Rocketing Production and Marketing Costs Force Consumer App Developers To Grow Up or Die Multi Device and Accessibility Put Spotlight Back on User Interface Design Thinking Is the New Black App Shmapp, It s About Long Term Business Impact Vertical Specialism Breeds First Wave of Developer Tools Champions Mobility, Cloud and Analytics Close the Backend Loop Key Findings Q&A Page 3 Copyright 2012
4 Challengers Take Aim at the Mobile Duopoly Apple and Google Combine To Create a Mobile Duopoly at the Point of Sale Apple/Google 88% Amazon 20% BlackBerry 17% Microsoft 13% 2+ Stores 25% 0% 20% 40% 60% 80% 100% Page 4 Base: App downloaders Copyright 2012 Source: Yankee Group s US Consumer Survey, Q3 2012
5 Competition for Third Ecosystem Is Strong Page 5 Base: Asked to those who indicate workforce with smartphones Copyright 2012
6 Enterprises Turn to Cloud SaaS Deployments Page 6 Copyright 2012
7 Mobile and Cloud Top Enterprise Priorities Page 7 Copyright 2012
8 App Development Moves In House Page 8 Base: Enterprise IT decision makers Copyright 2012 Source: Yankee Group s 2012 US Enterprise Mobility: IT Decision Maker Survey, December
9 1 Rocketing Production and Marketing Costs Force Consumer App Developers To Grow Up or Die Casual no more Budgets for the production of games scale by a factor of 10 Playing with the heavyweights The top 10 apps annually are dominated by (traditional) media giants and mid sized specialists Coping with higher user acquisition costs Companies are searching for hires with expertise in monetization and are increasing direct marketing spend The upshot: Developers look more like traditional media companies. The focus is on business planning benefits, dedicated developer tools and app storefronts with streamlined and transparent review policies. Page 9 Copyright 2012
10 2 Multi Device and Accessibility Put Spotlight Back on the User Interface Multi device usage takes off More than 20 percent of U.S. consumers access content through a handset, tablet and PC Developers added at least one platform in 2011 Consoles and connected TVs create greater UI challenge than tablets Accessibility moves up the agenda Companies monitor regulation and a broader user base The upshot: User interfaces get complicated in a multi device setting. In response, tools and managed service providers add design templates for multi device support. Page 10 Copyright 2012
11 3 Design Thinking Is the New Black Design leads development Design now accounts for up to 50 percent of budgets, shifting the focus from PRDs to end user experience Multidisciplinary development Teams will consist of product managers, architects, implementers, data scientists and end users Native multiplatform Multichannel and multiplatform, but not necessarily platform agnostic Enterprise software gets on board Leading companies hail transformative impact of design thinking The upshot: Design thinking is neither a fad nor nice to have. Designled strategies empower the end user and will drive disruptive business models. Page 11 Copyright 2012
12 4 App Shmapp, It s About Long Term Business Impact Focus shifts from tactical to strategic Companies want ROI longevity, less IT fragmentation and more scalability Mobility Centers of Excellence Companies setup end to end mobile factories Agile and open methods grow Agile methodologies and open platform strategies for repeatable and responsible innovation become popular The upshot: Appification life cycle management becomes more industrialized developers, managed service providers and integrators all stand to benefit. Page 12 Copyright 2012
13 5 Vertical Specialism Breeds First Wave of Developer Tools Champions Developer tools champions target specific segments Specialist tools dominate gaming, media, marketing, enterprise and banking Developers choose the tools they know Customer relationships and previous experience matter more than technology Fragmentation shows market for tools is still premature Today s vertical champions create full suites of tools to target new markets The upshot: Tomorrow s winners will help clients manage their app portfolios using back end and support diversity on the front end and sweeten the offer with flexible pricing models. Page 13 Copyright 2012
14 6 Mobility, Cloud and Analytics Close the Backend Loop Businesses look to integrate CRM and ERP Real time inventories and stock optimization drive hard ROI Cloud vendors ease the integration pain Cloud vendors gain over their legacy rivals Still early days for most implementations Tying together the front and backends increases the importance for multi channel device support and collaboration The upshot: Mobility, cloud and analytics accelerate the real time enterprise, closing the backend loop. Page 14 Copyright 2012
15 Key Findings Appification of business spreads from media and retail to all verticals The cross platform tool market will see consolidation: single codebase as commodity App design emerges as a core competence for developers and companies Developer tools prepare for tomorrow s apps: third party API integration, predictive and single sign on capabilities Pendulum swings from hybrid to native and back again Page 15 Copyright 2012
16 Yankee Group s Mobile Application and Cloud Strategies Service Answers Key Questions Page 16 Copyright 2012
17 Thank You and Q&A Jason Armitage Read our insights and sign up for our newsletter at obilenowoptin.html Fan us at facebook.com/yankeegroup Chris Follow us on Read our blogs at blogs.yankeegroup.com Page 17 Copyright 2012
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