Enterprise Mobility Barometer
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1 WHITE PAPER Enterprise Mobility Barometer State of Mobility in Manufacturing
2 OVERVIEW Manufacturing enterprises are focused and forward-looking in their preparations for a renewal of consumer demand. Challenges faced by the industry since the third quarter of 2008 have prompted the most comprehensive process reviews in decades; the search for solutions that will empower a leaner workforce, improve customer satisfaction and drive increased revenues has been propelled by shared and unavoidable forces. Decision-makers recognize that agility and responsiveness are critical to gaining or maintaining a competitive advantage and that enterprise mobility solutions can provide differentiation from their competitors by enabling leaner, more profitable operations. The importance of mobility solutions for productivity, quality, and customer satisfaction and their associated impact on cost and profitability is well recognized by enterprise mobility decision-makers. Mobility, by driving integrity, accuracy, and availability of information is an indispensable tool for continually streamlining operations and enhancing the impact of Lean Manufacturing initiatives. According to Motorola research, seven in ten manufacturing companies surveyed view mobility as key to converting downtime into productive time a clear indication of the impact of mobility on overall operations. In addition, findings showed that the mobilization of key applications enables their organizations to save or recover on average 42 minutes per mobile employee per day. Imagine the impact on your organization. The benefits of a leaner, mobile enterprise quickly justify the focus required to address challenges such as security, cost, and integration issues. Across all work environments, including the shop floor, the warehouse and field operations, manufacturers are realizing benefits today and making plans to expand mobility within the next 12 to 24 months.
3 Motorola Enterprise Mobility Barometer In an effort to better identify trends within the Enterprise Mobility market, Motorola regularly conducts independent research among representative constituencies of enterprise mobility decision-makers the chief purchasers of enterprise mobility solutions; and various mobile workers within enterprise and commercial businesses in the healthcare, government, retail, manufacturing, supply chain and utilities industries. The Motorola Enterprise Mobility Barometer provides the industry s deepest view into the IT decision-maker mindset via direct feedback from over 3,300 IT decisionmakers across fourteen countries spanning four continents. The research study was designed to provide a benchmark measurement of the overall perception and usage of mobile and wireless technology solutions across a multitude of commercial and public industries. Motorola s Enterprise Mobility Barometer surveyed IT executives in key manufacturing industries around the world, including aerospace/defense and automotive, consumer packaged goods (including food and beverage), oil/gas and chemicals, high-tech, life science/medical as well as industrial and heavy equipment. Research participants were carefully screened for many key industry, purchasing and decision-maker attributes. The mobility decision-maker participants were required to be knowledgeable about the organization s IT budget or strategy and have knowledge of (or responsibility for) the support/operations of the organization s IT systems. Of the total number of respondents to the 2009 Motorola Enterprise Mobility Barometer study, 437 identified themselves as representing the manufacturing industry in their respective countries. Almost 47 percent of these respondents were identified as management or senior management-level executives (manager, director, CIO) in the organization s IT department, while another 48 percent represented non-it management and senior management. The purpose of this research and market trends study was to better understand the Information Technology (IT) environment and business strategy concerning enterprise mobility systems and applications. Key research areas of focus include: Major strategic mobility issues that concern IT/enterprise mobility decision-makers. Benefits associated with various enterprises and mobile workers utilizing mobility solutions. Mobile workforce investment expectations for 2009 and an understanding of the type of mobile technologies that have penetrated the enterprise. Mobility solution adoption by vertical industry segments and regions and an understanding of both the key drivers for adoption and their respective mobility budgets. Key application deployment and growth. Motorola s Enterprise Mobility Barometer is an independent research study that was conducted with research partners, e-rewards and TNS, to measure attitudinal and behavioral decision-making habits of senior executives. The survey was designed to provide a benchmark measurement of the overall perception and usage of mobile and wireless technology solutions across a multitude of commercial and public industries.
4 Enterprise Mobility Viewpoints Mobile and wireless technologies are more important to manufacturers in 2009 than ever before. As highlighted in Exhibit 1, according to the Enterprise Mobility Market Barometer this year, 80 percent of IT decision-makers within the manufacturing industry recognize the increasing importance of mobility, representing an almost 10 percent increase compared to the Barometer reported in early Q: Mobile technologies are more important to my organization today than they were last year. Exhibit 1. Manufacturing Decision-Makers See Rising Importance of Mobility Able to have data entry done at time of delivery instead of waiting for paperwork to make it s way up to the front office. US Manager IT Department, Automotive Manufacturer employees 4 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
5 As manufacturing enterprises implement their mobile technology strategies, clear benefits emerge to counter the challenges that exist (Exhibit 2). More than one in four manufacturing enterprises surveyed (44%) report that key mobile applications lead to increased employee productivity. More than one in five enterprises (23%) experienced increased inventory and/or order fulfillment accuracy with key mobility applications such as materials management and warehouse management. And 29 percent of manufacturers using field service applications report an increase in customer satisfaction. Measurable benefits provide compelling incentives to offset some of the challenges when implementing Enterprise Mobility solutions. Respondents of the study cited security risks (38 %) and cost (hardware %, software %) as some of the most important issues. Watching the bottom line is, as expected, a heightened concern in today s market. Yet proving ROI is no longer the primary requirement for investment indicating that confidence in the value of mobility investments has solidified. Awareness of security concerns and risk is also a natural development as Enterprise Mobility moves beyond the proving ground of new technology into wide-spread use. Q: What are your organization s key benefits and challenges with regard to the usage of mobile and wireless technologies? Exhibit 2. Enterprise Mobility Key Benefits and Challenges, Manufacturing Industry It has made all the difference in the world, as far as our communication with sales, customers & administration US VP, Automotive manufacturer, 10,000-50,000 employees 5 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
6 Mobility Strategy And Decision-making Manufacturing IT executives view mobility as strategically important today, and no longer as a future initiative. Over 60 percent of manufacturing mobility decision-makers surveyed globally now have a mobility strategy in place for their enterprise, with four out of ten surveyed indicating that they have had a mobility strategy in place for more than 12 months. Close to 20 percent overall have plans to develop such a strategy over the course of the next year an indication of the critical importance that businesses assign to mobility technologies as manufacturing executives look for the solutions that will have the most impact on their bottom line. Q: Does your organization have a corporate-wide mobility strategy and how long has it been in place? Exhibit 3. Enterprise Mobility Strategy, Manufacturing Industry The next several quarters could be game-changing for the manufacturing industry with uncertain predictions of who will be the new winners. The future of emerging economies is hotly debated: what will be the full impact of India and China on the global markets once demand for production rises? From the perspective of mobility, the region appears to be lagging (Exhibit 3). The Manufacturing Barometer reveals that many manufacturers in APAC (which includes respondents from India and China) have not yet developed plans to fully take advantage of mobility solutions 41% do not have plans to put a strategy in place any time in the next 24 months. Faster, more efficient distribution of information in a rapidly changing market UK Manager, Aerospace Manufacturer employees 6 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
7 Mobile Applications And Investment Drivers For manufacturers who are making investments in mobile and wireless technologies, inventory/materials management and sales force applications are the top drivers for mobility overall with 31 percent and 24 percent of decision makers respectively reporting these as highly important to their investment in mobile and wireless solutions. (Exhibit 4). Q: What are the KEY applications driving your mobile device investment in a manufacturing enterprise? Exhibit 4. Key Mobility Application Investment Drivers, Manufacturing The ability to move raw materials and finished products efficiently through the entire supply chain from the receipt of raw materials through the manufacturing process and then on to the customer are fundamental features of a lean manufacturing enterprise. Efficiency throughout the pipeline produces more value with less work and ultimately impacts customer satisfaction as well as revenues. Manufacturing enterprises present unique challenges for the implementation of mobility as they operate in characteristically diverse environments including carpet-to-concrete spaces, warehouses for incoming materials and outgoing products, clean or industrial production areas not to mention large campuses and field-based environments. Today s technology solutions are designed to enable mobility across these environments in manufacturing producing benefits from the shop floor, through warehouse and transportation and in the hands of field employees (Exhibit 5). Focusing on the shop floor environment (exhibit 5), decision makers cited process-oriented applications, such as WIP tracking, inventory/materials management (59%), plant operations (operator interface) applications (35%) and quality assurance/quality control (18%) among the top five applications on mobile devices. In the field environment, standard business productivity applications such as wireless /contacts and calendar applications are widely used, as expected. Sales force automation (46%) and field service applications (24%) are identified for their importance in increasing field worker productivity and making real improvements in customer satisfaction. Nearly 29 percent of surveyed enterprises, who cite the importance of sales force automation or field service applications, also report an increase in business revenues/sales results and 25 percent report an increase in customer/partner satisfaction. 7 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
8 The value of mobile technologies is further demonstrated in the warehouse, distribution center and transportation environment where Enterprise Mobility solutions are particularly effective in improving the movement of raw materials and finished products. Shipping and receiving applications (cited by 41% of respondents in the warehouse environment) and inventory, warehouse and yard management (38%) are cited as key investments in this space. Q: What are the KEY applications driving your mobile device investment in each environment within a manufacturing enterprise? Exhibit 5. Manufacturing Environment and Key Mobility Application Investment Drivers The benefits of mobility are also evident in the real-people, real-time comments that respondents shared about their experiences with mobile solutions across all environments of the manufacturing enterprise. quick connect with field reps; ability to quickly access the latest company info for PR, ordering, marketing and inter-connectivity between employees and management. US Director of IT, Pharmaceutical Manufacturer employees 8 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
9 Perhaps the most direct measure of the value of mobility in the manufacturing environment today is illustrated in Exhibit 6. Manufacturing employees using key mobile applications are able to save or recover an average 42 minutes per day delivering a dramatic return on investment. Q: How much downtime (minutes per day) do you recover during your working day because of your usage of mobile devices and wireless technologies? Exhibit 6. Cited Productivity Gains, Manufacturing Mobile Applications (Looking at) fixed mobile convergence to lower costs, increase productivity. US Director of IT, Consumer Electronics Manufacturer, > 100,000 Employees 9 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
10 Future Trends Inventory management and sales force applications will continue to grow in importance over the next 12 months (Exhibit 7) highlighting the need for continued focus on customer satisfaction, retention and loyalty in today s competitive economy. Q: Which of the following best describes your company s plans for use and upgrading of each of the following types of mobile applications (within the next 12 months)? Exhibit 7. Current and Future Plans for Key Mobile Applications In addition, respondents within both process and discrete manufacturing environments have indicated that they plan to expand the use of wireless LAN and wireless sensing technologies, allowing manufacturers to achieve process automation, efficiency, and agility without additional wired networking infrastructure investments....accuracy and traceability of warehouse activities. US Director of IT, Computer and Electronics Manufacturer 10,000-50,000 employees 10 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
11 Q: Which of these products is your company currently using /planning to deploy on your Wi-Fi/WLAN (802.11) network? We use our wireless capabilities for safety and functionality of machinery... Exhibit 8. Development of Voice, Rich Media and Sensing technologies on Wireless LAN Companies are moving beyond the typical deployments of notebooks on WLAN and are increasingly adding voice over WLAN (VoWLAN) as manufacturers look to reduce the costs associated with plant communications and the management of multiple devices. Video conferencing, and wireless data capture was also noted as rising in importance. The study found strong support for rich media and video conferencing applications that allow manufacturers to realize additional efficiencies and increase workforce productivity. The WLAN network provides the backbone for true converged voice and data on a single mobile computing device. This mobile computer becomes an indispensible tool handling multiple application interfaces with the efficiency of optimized bar code scanning and/or RFID tag interrogation. Mobility solutions will be used for better access in remote areas Canada, manager Pulp and Paper Manufacturer employees 11 WHITE PAPER: Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
12 Key Takeaways Lean manufacturing practices have never been more important than today as companies strive to demonstrate greater value to both investors and customers. Mobility solutions that enable manufacturers to respond quickly to demand while keeping minimal inventory are seen as vital investments. Inventory management and sales force applications are among the top drivers for mobility for the manufacturing enterprises surveyed. More than one in four companies surveyed (44%) report that key mobile applications lead to increased employee productivity. Sales force, field service and materials management are the primary applications behind this benefit enabling businesses to save or recover an average 42 minutes per day for mobile employees. 29 percent of manufacturers using field-based applications also report an increase in customer satisfaction. More than one in five companies (23%) experienced increased inventory and/or order fulfillment accuracy with key mobility applications such as inventory/materials management and warehouse management. Key solutions on the shop floor include WIP tracking, inventory or materials management (59%), plant operations/operator interface applications (35%) and quality assurance/quality control (18%). Inventory/materials management, warehouse management, and sales force applications will continue to grow in importance as companies tighten their processes to survive current economic pressures. Companies are moving beyond the deployment of notebooks on WLAN, and are increasingly adding voice over WLAN, video, and data capture to their wireless capabilities. Focusing in on regional mobility concerns, businesses in the Americas and Europe have widely adopted mobility strategies in order to take advantage of the benefits offered by wireless technologies within and outside the four-walls of manufacturing facilities. motorola.com Part number WP-EMB-MFG. Printed in USA 09/09. MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. Motorola, Inc All rights reserved. 12 Motorola Enterprise Mobility Barometer - State of Mobility in Manufacturing
2009 Enterprise Mobility Barometer
2009 Enterprise Mobility Barometer State of Mobility in Manufacturing June 2009 Motorola EMS Business and Market Intelligence Overview and Methodology Industry Challenges, Manufacturing Industry Challenges
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