BYOD Economics (CISCO)

7/27/2019 BYOD Economics (CISCO)

1/39


2/39

HorizonsCisco IBSG

Cisco PublicCisco IBSG 2013 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group 2

IBSG Horizons BYOD Study Waves:Global State of BYOD and Its Implications

Current Wave

September 2012 4,892 IT leaders Midsize + enterprise 8 countries + U.S.

(original survey+ 312 midsize)

IBSG

Horizons:BYODGlobal Trends

May 2013 Financial impact of

BYOD on companies

Maximizing ROI ofBYOD

6 countries

IBSG

Horizons:BYODFinancial Impact

June 2012 600 IT leaders U.S. enterprises

IBSG

Horizons:BYODU.S. Trends

Source: Cisco IBSG, 2013


3/39

HorizonsCisco IBSG


FinancialModel

PrimaryResearch

IBSG Horizons BYOD Financial Impact:Assessment of Typical Firm

BYODFinancialImpact

CiscosBYOD

Experience

ExtensiveLiteratureReview


4/39

HorizonsCisco IBSG


HorizonsCisco IBSG

Overview of Primary Research Scope

2,415 18Mobile Users Industries


Exploration of BYOD benefits from the perspective of mobile users:white-collar employees who use a smartphone, tablet, or laptop forwork at least sometimes

400 surveys in each country: U.S., U.K., Germany, India, China, Brazil 73% enterprise (1,000+ employees), 27% midsize (500-999

employees)

29% executives, 71% knowledge workers (47% midlevel managersand professionals, 24% other individual contributors)


5/39

HorizonsCisco IBSG


HorizonsCisco IBSG

BYOD Devices To Double by 2016

405Million

Total expected number of BYODdevices in all 6 countries by 2016,growing from 198 million in 2013

105%Total growth in number of BYODdevices (27% CAGR), 2013-2016

1.3BYOD devices per mobile employeeby 2016 (1.2 today).

Sources: EIU, 2013; Strategy Analytics, 2012; Cisco IBSG, 2013


6/39

HorizonsCisco IBSG


6371

32

1211 8

166

108

76

2518 12

China U.S. India Brazil Germany U.K.0

25

50

75

100

125

150

175

2013 2016

HorizonsCisco IBSG

Strong BYOD Growth Everywhere, butChina, U.S., India Are Biggest Markets

Sources: EIU, Strategy Analytics, Cisco IBSG, 2013

Estimated BYOD Devices in Global Workplaces,2013-2016 (in Millions)

CAGR 38% 15% 33% 25% 18% 15%

Millions

6-Country Total: 198 million BYOD devices (2013) 405 million BYOD devices (2016) 105% growth (27% CAGR)


7/39

HorizonsCisco IBSG


HorizonsCisco IBSG

Employees Are Bringing Multiple Devices,and Paying To Do So

1.7Average number of personally owneddevices used by each surveyedBYOD employee

$965Average out-of-pocket spending perBYOD employee on personal mobiledevices used for work

Source: Cisco IBSG, 2013 N=1,679 BYOD respondents

$734Average annual data plan spendingfor BYOD employees who use theplan at least partially for work

H iCi IBSG


8/39

HorizonsCisco IBSG


BYOD Devices: Smartphone Leads, butTablets Are Closing the Gap


Average # ofBYOD Devices

N=1,679 BYOD respondents

Percentage of BYOD EmployeesBringing Mobile Devices to Work

1.7 1.8 1.6 1.7 1.7 1.8 1.8

37%40%

33%

41%

32% 34%

43%

81% 81%72%

82% 82%

90%

79%

56%60%

54%49%

53%59% 61%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total U.S. U.K. Germany India China Brazil

Laptop Smartphone Tablet

H iCi IBSG


9/39

HorizonsCisco IBSG


N=1,658 BYOD respondents who knew their device spend; N=1,620 BYOD respondents who knew their data plan spend

Recognizing the Value: Employees ArePaying To BYOD


$965

$809

$901$972

$823

$1,172

$1,099

$734

$1,234

$770

$909

$346

$447

$752

0

200

400

600

800

1000

1200

1400


Device spend (total) Data plan spend (per year)

Average Out-of-Pocket Spending to Date per BYOD Useron Devices, Yearly Spend on Data Plans (USD)

H iCi IBSG

H iCi IBSG


10/39

HorizonsCisco IBSG


Why They BYOD: Efficiency, Flexibility,and Initiative

HorizonsCisco IBSG

#2Want to combine work and personalactivities or access personalapplications

#3 Need device for work, but company doesnot provide it

#1 Can get more done with my own device


H iCisco IBSG


11/39

HorizonsCisco IBSG


45%

47%

25%

24%

22%

19%

13%

56%

46%

23%

23%

22%

18%

14%

46%

44%

29%

26%

22%

20%

14%

N=624 laptop BYODers

BYOD Devices Allow Employees To DoMore, Merge Work and Personal Tasks


Reasons BYOD Employees Bring Their Own Devices(Percentage of Respondents)

N=1,361 smartphone BYODers N=943 tablet BYODers

Get more work done on own device

Combine work and personal lives

Need it, but it is not provided

Prefer the interface / OS

Want to avoid restrictions / scrutiny

Corporate devices lack functionality

Company provides device, but want to use my own

Laptop Smartphone Tablet

H iCisco IBSG

H iCisco IBSG


12/39

HorizonsCisco IBSG


BYOD Makes Employees More Productiveand Innovative

HorizonsCisco IBSG

81Minutes per week saved in U.S.highest of all countries surveyed(37-minute average)

53%Have raised work productivitythrough innovative work practicesenabled by their devices

36%Save at least two hours per weekby using personal mobile devicesat work


H iCisco IBSG


13/39

HorizonsCisco IBSG


BYOD Enables Efficiency and Innovation,but Gains Are Uneven Across Countries

Net employee time gainedper week: 37 minutes


37 min. 81 min. 51 min. 4 min. 35 min. 17 min. 34 min.

23 25 24

12

23 2429

17 16 14

4

17 19

28

8

23

15

1 1 375

9

3 1 15

9

3

14

4

-2

8

2

-9-6

2 0

-3 -5

-13 -14-13

-8 -9 -10 -11

-23

-16

-30

-20

-10

0

10

20

30

40


Improved efficiency New ways of working Additional availability Better collaboration

Reduced administration Downtime More distractions

Minutesperweek


14/39


15/39


16/39

HorizonsCisco IBSG


17/39

HorizonsCisco IBSG


Executives Are Driving Most of CurrentBYOD Productivity Gains


3X

Factor by which the average BYODexecutives productivity gain

exceeds that of the averageknowledge worker (76 vs. 23minutes)

61% Executives with access to corporatemobile apps, compared with 41% ofBYOD knowledge workers


18/39

HorizonsCisco IBSG


19/39

HorizonsCisco IBSG


IT Is Provisioning Executives; Provisioning ofKnowledge Workers Is Less Frequent

73%

65%

72%

62%

61%

43%

65%

50%

61%

50%

41%

32%

Corporate email and calendering

Corporate collaboration applications

Corporate office productivity applications

Corporate security applications

Company-specific mobile "apps"

Applications I bring to work

Executive Knowledge worker

Applications Permitted on Employee-Owned Devices

Source: Cisco IBSG, 2013 N=2,415 respondents


20/39


21/39


22/39


23/39


24/39


25/39

HorizonsCisco IBSG

HorizonsCisco IBSG


26/39

Horizons


Horizons

Comprehensive Improvement: Big Gains,No Matter What the Starting Point


Annual Value per Mobile Employee Derived fromBasic and Comprehensive BYOD Programs

350

950

400

0

400

100300

1,650

3,150

2,250

950 1,050 900

1,600

0%

20%

40%

60%

80%

100%

AVERAGE U.S. U.K. Germany India China Brazil0

500

1,000

1,500

2,000

2,500

3,000

3,500

Value per mobile employee of "Basic BYOD"

Value per mobile employee of "Comprehensive BYOD"

Progress along the value journey (value of Basic BYOD / value of Comprehensive BYOD)

Progressalong the

value journeyU.S. $

Note: Numbers have been rounded to the nearest $50.


27/39


28/39


29/39

HorizonsCisco IBSG


30/39

Horizons


Comprehensive BYOD Pays for Itself,Apart from Productivity Improvements

50 52 5161

40 4553

4557

46

54

3239

44

16

17

14

14

16

17

16

103

101

104

119

86100

110

826

7 9 2 1 20

20

40

60

80

100

120

140

AVERAGE U.S. U.K. Germany India China Brazil

US$

/mobileemployee/year

Hard Cost Savings and Investments fromBasic to Comprehensive BYOD

Hardware / software cost saving

Support cost saving

Net direct benefits

Telecoms cost saving

Costs

HorizonsCisco IBSG

HorizonsCisco IBSG


31/39

Horizons


22%15%

22% 24% 20%28% 23%

13%

12%

14% 7% 15%11% 19%

13%

13%

12%10%

13%11%

19%8%

7%1%

4%

14% 11%

8%13%

14% 14% 16%

11% 11%

10%17%

17% 19% 17%

17% 16%

18%14%

22% 18% 22%9% 12%

3%

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

Sha

reoftotalComprehensiveBYOD

benefits

Productivity Value Realized as Companies Movefrom Basic to Comprehensive BYOD

New ways of working

CollaborationEfficiency

Distractions

Administration

Downtime

Availability

Horizons

Developed Economies and EmergingMarkets Benefit in Different Ways


Innovation

benefits

Reducedbarriers toproductivity

While new ways of working plays a big role in the U.S., U.K., and Germany,the most value for Emerging Markets comes from more basic benefits


32/39

HorizonsCisco IBSG


33/39


Comprehensive BYOD: ImprovedEfficiency, Innovation, Availability

Source: Cisco IBSG, 2013N=1,663 BYOD respondents

Minutes/week

18

108

59

184

23

115

-24

62 51

119

-6

79

4

89

-100

-50

0

50

100

150

200

Basic Comp. Basic Comp. Basic Comp. Basic Comp. Basic Comp. Basic Comp. Basic Comp.

AVERAGE U.S. U.K. Germany India China Brazil

Productivity Impact Sources for Knowledge Workers inBasic and Comprehensive BYOD

Efficiency New ways of working Availability Collaboration Administration Downtime Distractions Total


34/39


35/39


36/39


37/39


38/39


39/39

BYOD Economics (CISCO)

Documents

Transcript of BYOD Economics (CISCO)