Overcoming barriers: how Japanese companies can move towards mobility maturity. Accenture Mobility CIO Survey 2013 A Japanese perspective

Transcription

1 Overcoming barriers: how Japanese companies can move towards mobility maturity Accenture Mobility CIO Survey 2013 A Japanese perspective

2 Table of contents Taking big action on small devices 3 Mobile devices versus mobility 4 Seeing the potential of mobility 6 The barriers to mobility 8 A path to mobility maturity 12 Example case study 14 2 Accenture Mobility CIO Survey 2013

3 Taking big action on small devices Over the past five years, we have witnessed major advances in mobile devices. Advances in smartphones, tablets and laptops combined with cutting-edge carriage services such as Wi-Fi, broadband mobile data and 4G/LTE have not just changed the IT environment: they ve changed the way companies do business. Against this backdrop, enterprise mobility is projected to be a key global trend in coming years as companies ramp up their transformation into genuine digital operations. But mobility is about more than just a device. It is an innovation driver that can help boost a company s competitive position. The importance of mobility should not be underestimated. According to the Accenture Mobility CIO Survey 2013, 73 percent of global IT executives say that mobility will have an impact greater than or equal to the Internet on their businesses. In Japan, this figure rises to 84 percent. Companies can use mobility to collect valuable information across their value chain. By then applying analytics to this data, companies can help improve customer engagement, increase the speed and quality of decision making, and refine their business models. Accenture Mobility CIO Survey

4 Mobile devices versus mobility Mobility in the form of devices and applications is highly prevalent in Japan. Further, Japanese IT executives and chief information officers (CIOs) state that developing enterprise mobility is a key priority to help them take advantage of growing trends. For example, on Cisco s analysis, business mobile traffic will grow 13- fold from 2012 to 2017, a compound annual growth rate of 66 percent. However, our research shows that Japanese companies are lagging behind their global counterparts in implementing mobility initiatives. Further, our research shows that Japanese businesses might not fully understand the benefits of mobility, lack the right people to implement mobility solutions, and are only committing limited IT funds to mobility projects during Now is a good time for Japanese companies to capture the potential benefits of mobility including developing applications for smartphones, deploying remote field tools for staff, and using sophisticated analytics to better understand customers. They should see mobility as more than just a communication tool, and use it to enhance business processes and productivity, and help drive new global business models. According to IDC, in 2012 around 28 million smartphones were shipped to Japan (representing an annual growth rate of 42.1 percent), while 4.6 million tablets were shipped (an annual growth rate of 91.3 percent). By 2017, these numbers will rise to 37.7 million smartphones and 9 million tablets, respectively. 2 Japan is one of the most mature mobility device markets we surveyed based on indicators such as smartphone share of mobile shipments, average monthly mobile data traffic per mobile connection, and LTE/WiMAX share of subscribers. The devices in use are also increasingly sophisticated and encompass cloud, big data, and social technologies. These devices are likely to generate huge increases in mobile data traffic. For example, according to Cisco s analysis, in 2017 Japan s mobile data traffic will be 400 times greater than in Accenture Mobility CIO Survey 2013

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6 Seeing the potential of mobility According to our research, Japanese CIOs believe mobility has the power to transform their business. However, Japanese businesses may need to re-evaluate how they go about turning this potential into a reality. We found that Japanese CIOs believed that enterprise mobility could significantly improve interactions with customers (90 percent), have as great an impact on their business as the internet (84 percent), and provide substantial new revenue sources (73 percent) see Figure 1. Figure 1. Japanese and Global CIOs views on the benefits of mobility Help us engage our employees like never before Have an impact similar to the 90s web revolution Significantly improve interactions with customers Provide significant sources of new revenue Have a significant impact on business overall Japan 17% 23% 23% 27% 33% 50% 50% 60% 67% 67% Global 28% 28% 34% 34% 33% Strongly agree Agree Strongly agree Agree 45% 52% 50% 51% 50% Given this potential, they are keen to make mobility initiatives a high priority. For instance, 84 percent of Japanese CIOs considered mobility to be a high or very high priority for the next 12 months the fifth-highest global result behind China (90 percent), the United Kingdom (90 percent), Brazil (87 percent) and India (84 percent) see Figure 2. Figure 2. Where mobility ranks in the priorities of Japanese and global CIOs Very high High Medium Low 3% 3% 13% 21% 27% 34% 42% 57% Japan Global average Note: Very high relates to the top one or two priorities; high is top five; medium is in the top Accenture Mobility CIO Survey 2013

7 Japanese companies are looking to pursue different mobility goals based on business-toconsumer (B2C), business-to-employee (B2E) and machine-to-machine (M2M) segments. B2C: Japanese CIOs are incorporating greater mobility into their organizations, driving revenue by engaging customers on their mobile devices and providing new marketing channels. With mobility, companies can engage their customers more effectively through personalized time- and locationbased recommendations that build on basic preferences and demographics (see Figure 3). B2E: Here, the focus is on improving field and customer service delivery through instant data access, capture and processing, in addition to incorporating mobility across operations. Companies can harness mobility to collect fresh and valuable insights from the front line in real time to improve decision making at all levels (see Figure 4). M2M: In this segment, deploying sensors and distributing connected devices to expand data collection processes are the top priorities (see Figure 5). Figure 4. Japanese CIOs mobility priorities: enterprise Improve field service and customer delivery Experiment with mobility Improve decision making Streamline operations Empower workers to collaborate remotely Facilitate knowledge sharing 10% 20% 20% 23% 33% 47% Figure 3. Japanese CIOs mobility priorities: consumers Figure 5. Japanese CIOs mobility priorities: M2M Experiment with mobility 33% Deploying sensors 13% Drive revenue by engaging customers on mobile devices 23% Design, develop and distribute connected devices 10% Provide a new marketing channel 23% Improve field service and customer delivery 10% Drive revenue through transactions on mobile devices 13% Experiment with mobility 7% Develop mobile apps 7% Monetize M2M products and services 7% Accenture Mobility CIO Survey

8 The barriers to mobility We found a disconnect between the mobility goals of Japanese CIOs and the actions of companies. CIOs concede that their operations are behind the curve in adopting enterprise mobility. According to our survey, 33 percent of Japanese IT executives state their companies lack an understanding of the benefits of mobility, compared with the global average of 24 percent (see Figure 6). So why do Japanese companies that operate in a highly mobile environment lag behind the world in delivering mobility initiatives? In our survey, Japanese CIOs offered two possible reasons: a lack of engagement from senior leadership, and a shortage of skilled employees to deploy mobility projects. For example, only 23 percent of Japanese IT executives say they will have dedicated mobility-related employees in place within the next 12 months, compared with a global average of 38 percent (see Figure 7). Japanese respondents are less likely to have mobility performance indicators in place over the next year, perhaps reflecting their uncertainty over whether mobility offerings will be introduced. Ten percent of Japanese CIOs said they would have key performance indicators in place and the ability to measure and analyze these compared with a global average of 16 percent. Figure 6. The barriers CIO face in implementing mobility solutions Security concerns Cost concerns Lack of understanding of mobility s benefits Lack of interoperability with current systems Lack of engagement from senior leadership Lack of required skill set Don t know how to get started or what to do next Fractured ownership of mobility within organization Not applicable/no barriers Japan Global average 7% 7% 6% 12% 12% 17% 19% 17% 24% 27% 27% 33% 30% 31% 41% 47% 45% 47% 8 Accenture Mobility CIO Survey 2013

9 Figure 7. Components of mobility strategy Prioritized list of mobile initiatives Changes in processes, workflow and roles Dedicated mobile budgets Standard list of supported platforms and devices Application lifecycle management Dedicated mobility employees Defined KPIs and the ability to measure and analyze them None of the above 3% 5% 10% 16% 23% 33% 29% 38% 37% 35% 38% 50% 50% 46% 47% 57% Japan Global average Accenture Mobility CIO Survey

10 In addition, while Japanese CIOs are willing to invest in mobility, they are only prepared to allocate a limited part of their budgets to such initiatives. For example, Japanese companies are among the least likely to spend 30 percent or more of their IT budgets on mobility projects (see Figure 8). Part of the problem may also stem from Japanese companies highly centralized approach to enterprise mobility. Seventysix percent of Japanese businesses operate centralized mobility strategies, compared with a global average of 59 percent. Some Japanese companies take a primarily topdown approach to mobility initiatives, which are led by IT departments. This approach typically focuses on deploying infrastructure to support mobile devices, but it may not incorporate key functionalities such as analytics. Through our research, we found that many global companies have chosen a combination of centrally driven and division-based mobility strategies that are tailored to the needs of business units. Japanese companies also typically have a high saturation of desktop PC and other fixed legacy products. This can make it more time-consuming for Japanese businesses to transition to being digital businesses that harness mobile devices. Figure 8. Proportion of companies spending 30 percent or more of their overall IT budget on mobility projects India Italy Australia and New Zealand Spain Brazil 63% China Germany Finland France 48% 53% 57% 57% 65% 68% 80% 83% USA 48% Japan 47% Mexico 47% UK 40% 10 Accenture Mobility CIO Survey 2013

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12 A path to mobility maturity Many Japanese businesses see mobility as a communication tool. This can be considered stage one of enterprise mobility, as it focuses on elements such as integration and introducing new ways to engage with customers (see Figure 9). However, to harness the potential of mobility, we believe Japanese companies should move towards using mobility to help drive business improvements (stage two) and create new global business models (stage three). This would allow businesses to better understand their customers, deliver services more efficiently and remotely, and reform operating and cost structures. How can Japanese companies refine their mobility initiatives? First, we recommend that Japanese businesses shift away from centralized approaches driven by IT departments. An effective mobility strategy requires IT departments and company executives to work together to align business and mobility objectives. Mobility needs to be about more than purchasing devices; it should actively contribute to business objectives. Second, Japanese enterprises should consider a deeper use of analytics. Only one in 10 Japanese CIOs say analytics and customer relationship management are critical to their mobility strategy. On their own, mobile and machine-to-machine devices are just tools. To truly benefit from mobility, companies need to combine mobilityenabled devices with business services such as customer relationship management. We suggest businesses apply analytics in a number of ways. In terms of mobile devices, companies can track business management and operational key performance indicators, including how employees operate in the field, and how customers think and act. They can then use this information to more rapidly and effectively respond to changing business conditions. Further, we see a key role for application program interfaces (APIs) in linking legacy systems to mobile technologies. According to our survey, two-thirds of Japanese CIOs have a formal API strategy in place one of the highest results in the world. But this means one-third of companies have not acted in the API space, and there may be substantial opportunities for them to harness API platforms and build mobile applications that can access legacy systems. Finally, Japanese CIOs and company leaders should better define how mobility projects can help their business. As more consumers use digital channels, mobility offers ever-increasing opportunities for global businesses. We believe Japanese companies should consider what cutting-edge applications they could put in place to help drive new revenue streams and stronger customer relationships. To help achieve this, we suggest that Japanese companies establish an executive committee to examine digital channels and mobile strategy across the entire enterprise. It should include representatives from key departments and business units, to help ensure new silos are not created. Companies should also take advantage of their ability to collect and process massive amounts of real-time data input by employees and customers via mobile devices. They can use this data to analyze trends and activities to help improve business efficiency and the customer experience. 12 Accenture Mobility CIO Survey 2013

13 Figure 9. The maturity model for enterprise mobility Stage 1: Mobility as a communication tool Stage 2: Using mobility to drive potential business process improvements Stage 3: Harnessing mobility to help enhance business models integration Improving sales productivity Establishing new global business management models Calendar integration New touch points with customers Replacing paper-based sales materials with electronic tools Capturing customers reactions using qualitative and quantitative methods Accelerating operating and cost structure transformations Using field information to transform business functions Redefining corporate security standards Source: Accenture analysis Accenture Mobility CIO Survey

14 Example case study Ramping up high-quality content NTT DOCOMO is a leading Japanese mobile operator serving over 59 million customers. In 2011, the company wanted to introduce a new smartphone system to enable third-party software vendors to develop high-quality content and applications. The company teamed with Accenture to establish and operate a remote test center at the University of Aizu in Fukushima. This allowed the parties to test multiple devices and smartphone operating systems simultaneously on a cloud-based system. The facility allowed NTT DOCOMO to operate a cost-effective, easily accessible testing environment for content providers Accenture Mobility CIO Survey 2013

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16 References 1. Cisco, VNI Mobile Forecast Highlights, , vni/vni_mobile_forecast_highlight/index.html. 2. Yorifuji, Y. Japan IT Services Forecast and 2012 Review by Vertical Segment, IDC, April Cisco, VNI Mobile Forecast Highlights, , vni/vni_mobile_forecast_highlight/index.html. 4. NTT DOCOMO, Accenture and NTT DOCOMO to offer remote testing for smartphone content providers, Jan. 19, 2012, www. nttdocomo.co.jp/english/info/media_center/ pr/2012/ html; Accenture, NTT DOCOMO: Remote Test Center, www. accenture.com/us-en/pages/success-nttdocomo-leverages-remote-test-center.aspx. Contact Us overview/pages/japan-over-facts.aspx Methodology From December 2012 through January 2013, Accenture conducted an online survey with 413 IT professionals (CIOs, chief technology officers, directors of technology or IT, and chief mobility officers) across 14 industries in 14 countries: Australia, Brazil, China, Finland, France, Germany, India, Italy, Japan, Mexico, New Zealand, Spain, the United Kingdom and the United States. Fiftythree percent of those surveyed work for companies that generate US$1 US$5 billion in annual revenues; 42 percent work for companies that generate US$500 million US$1 billion; and 6 percent for companies that generate US$250 US$500 million. About Accenture Mobility Accenture is focused on enabling its clients to achieve breakthrough growth throughout the rapidly changing mobile ecosystem. The Accenture Mobility group offers five mobility services including consulting, software services applications, software services devices and platforms, managed services, and business integration services. These are designed to help organizations embrace business to employee (B2E), business to consumer (B2C), business to business (B2B) and machine to machine (M2M) business opportunities. Accenture offers mobility and embedded software services across a wide range of industries and platforms, including Android, Apple ios, Blackberry, Linux, Meego, Symbian, Windows Phone and Windows 8. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 266,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, Its home page is About Accenture Japan Accenture has conducted business in Japan for more than 50 years. Today, it has about 5,000 people working in Japan. With a proven track record, Accenture is focused on leveraging local best practices and successes, and is dedicated to delivering premium client value and results. Accenture helps clients define strategy, streamline business processes, integrate systems, promote innovation and enhance overall competitive advantage to ultimately attain high performance. For more information about Accenture, please visit its corporate homepage and its Japan homepage Copyright 2013 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative