AG mobile strategy webinar oct2011 c silva

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Altimeter Group WebinarOctober 18, 2011

Chris SilvaIndustry Analyst, Mobile

Getting To Mobile: 3 Paths For Mobile Strategy

© 2011 Altimeter Group

Mobile Is Increasingly Users’ Preferred Computing Platform



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The cost, technology and utility of smartphones drives their majority among

mobile phones. The average Android device owner spends 2x more time on apps than

using the web.


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Barriers To Mobile Adoption Come Crashing Down

* Source: Nielsen** Source: Gartner*** Source: Pyramid Research

$.08 Effective cost/MB

Q1, 2011*


Q1, 2010*


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Q1, 2011*


Q1, 2010*

512MHz processor, single core§

1+GHz processor, dual core


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Q1, 2011*


Q1, 2010*

1.5B Forecast smartphone sales,

2011***

172MSmartphone units

sold, 2009**

512MHz processor, single core§

1+GHz processor, dual core


More capable devices, heavier usage7

The only OS declining in bandwidth

consumption is the one that’s

discontinued


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Mobile interaction becomes deeper, more ingrained

This was 37% in May, 2011, and below 30% in October, 2010


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People can’t buy smartphones fast enough

iPhone 4s: 4M devices in its first weekend, bests Kinect as fastest

selling device ever!


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People can’t buy smartphones fast enough


Holiday will be a big test for mobile strategy as device dependency increases

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Almost half of holiday shoppers in 2011 will be looking for last minute

stores and gifts via mobile, will you be there?


“Getting To Mobile” Isn’t A Strategy



Mobile Strategy Takes One Of Three Paths13

• Target: Buyers• Goal: Drive revenue and transactions• KPIs: Registered Users, Average PurchaseEnrich

• Target: Shoppers, New Contacts• Goal: Drive brand affinity, consideration• KPIs: Engagement, amplification, goodwill

Engage

• Target: Internal constituents and trusted partners

• Goal: Secure use of information on mobile• KPIs: Productivity gains relative to function

Entrust

Christian Silva

Bottom item needs to be de-emphasized, made more transparent.


Customer facing apps, look at the entire experience14


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Enrich: Driving revenue through mobile transactions16



Enrich


Enrichment done right, over 3M have paid with Starbucks mobile app

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The mobile card program was tested in 2009, and found to be

the fastest way for customers to pay. It’s

available at 9000 stores. Customers purchase credit via

PayPal or credit card.


Enrichment done wrong, playing up the limitations of mobile

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Users must download all catalog content, a

situation exacerbated when relying on a carrier

network vs. wifi


Complexity of task increases complexity of rollout, deepens ROI

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Taking data like credit card info from the field introduces more

complexity and security requirements for the mobile

device, how it is managed and how information is transacted.


Com

plex

ity

Return

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Complexity and return mirror feature depth


Com

plex

ity

Return

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• Exploratory• Existing content• Non transactional


Com

plex

ity

Return

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• Interactive, multi channel• Heavily transactional• New content


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Engage: Driving customer interaction via mobile interaction

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Engage

Engage


Engagement: North Face utility app Snow Report (and Trailhead) engage with its target

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Snow Report users view weather and snow

updates, as well as tweets from and about their

favorite resorts.


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Enrich: Driving revenue through mobile transactions29


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Mobile data access model

DataAccess: No local data

Gather: Limited local data

Create: Secure local data

Collaborate: Full function


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Mobile Data Access Model: Access

Enterprise Security

Network Access

CompatiblePlatform


Access: No local data




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Mobile Data Access Model: Gather

VPN

Database Storage

GPS






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Mobile Data Access Model: Create

Device Security

Image/Video









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Mobile Data Access Model: Collaborate

Desktop Access

PersonalApps



Whether deploying new captial to add devices to the workplace

or taking advantage of users’ devices, access is increasingly

easier to solve

Taking communication and access to mobile is ready today

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Sharing and communicating on mobile is the focus of many vertical app strategies

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Epocrates provides “Continuing Medical Education” to

healthcare professionals, who can compare answers with

experts and community members.


What are you seeking to accomplish?

• Reaching customers – are you looking to focus on transaction metrics or softer, engagement metrics?

- Who is the customer?

- Where are their needs not being met?

• Empowering internal users – what are the constituencies you seek to serve?

- Different groups will need differing features.

- Features and complexity will have a tight coupling.

What is the endgame?38


The “three e’s” are not mutually exclusive, but development resources are often scarce.

Be inclusive in platform support, or draw a line to support x, and an alt strategy for all others.

Convergence, what other programs can help?

• Customer-facing: loyalty, ecommerce, social

• Internal-facing: training, networking and communications

Asset sharing and coordinated strategy and hybrid development are hallmarks of strong strategy.

Choosing strategy39


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3 Paths To Mobile Strategy, Which Are Yours?


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Upcoming research

Santa’s Little Helpers: Mobile Retail Strategy For Holiday 2011November, 2011

Entrust: Finding Partners For B2B Mobile SuccessJanuary, 2012

Interaction of Mobile and SocialSpring, 2012

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THANK YOU

Chris Silva

Industry Analyst,

[email protected]

makemobilework.com

Twitter: 802dotchris

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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage.

Visit us at http://www.altimetergroup.com or contact

[email protected].

ABOUT US

http://www.altimetergroup.com/

AG mobile strategy webinar oct2011 c silva

Business

Transcript of AG mobile strategy webinar oct2011 c silva