Mobile Is Changing the World

Innovative mobile technologies including machine to machine, location-based services, and

augmented reality improve society everywhere.
CONNECTED HOMES
AUGMENTED REALITY
SMART LOGISTICS

INNOVATIVE HEALTH CARE

MOBILE BANKING
INTELLIGENT RETAIL

From How Mobility Is Changing the World, a report by Harvard Business Review Analytic Services. Find more on sap.com/mobile/hbr.

2013 Harvard Business Publishing. All rights reserved.

A REPORT BY HARVARD BUSINESS REVIEW ANALYTIC SERVICES

How Mobility Is
Changing the World
Innovative mobile technologies improve lives and society in
both developed and developing economies.
WHEN ANALYSTS2000
FOR the2010
World Bank early in 2012 calculated the global growth in mobile

technology between
and 2010,
the results were staggering. Taking into account seven
mobile subscriptions
700 2005
million
5.9 billion
indicatorsfrom29
coverage
and subscriptions per capita to mobile broadband subeloping countries
percentavailable
77 percent
scriptions
and
mobile
Internet
use
(not
just cellular use)its July 2012 Maximizing Mobile
-income countries
71 percent
23 percent
report
calculated
a
30
percent
increase
in
availability and usage.
k
Significantly, the report noted that growth was not limited to just a few regions. In 2000,

according to the World Bank, there were 700 million mobile subscriptions, 71 percent of

Figure 1

Developing Countries
Mobile Deployments Soar
n Developing countries
n Developed countries

them in high-income countries and 29 percent in developing countries. Figure 1

By 2010, there were 5.9 billion mobile subscriptions, 23 percent in high-income countries
and 77 percent in developing countries.

29%

And when IDG Global Solutions measured worldwide usage of emerging technologies earlier this year, such as location-based offers and contactless transactions (in which a card is
waved near a receiver, rather than run through a reader), it also found mostly moderate dif-

71%

ferences in the penetration among North America, Europe, and other regions. Figure 2
Whats behind this global boom? Why does mobility span borders so easily? Why have
handheld devices, such as smartphones and tablets, succeeded where computers havent?

2000: 700 million global

mobile subscriptions

And what kind of capabilities has this success brought, both in developed countries and in
emerging markets?
Handheld devices have succeeded globally thanks to a variety of characteristics. With
increasingly powerful processors and storage, they have been able to subsume a lot of the
capabilities of computers without adding complexity. Handheld devices retain their sim-

23%

plicity and ease of use. Simplicity means that even users with limited education can take
advantage of them, which promotes popularity even in underdeveloped countries.

77%

At the same time, handheld devices limited screen size also contributed to their global
utility. It forced developers to be more creative: without space for word-based menus,
developers have turned to iconography. While some symbols may have different meanings
across cultures, enough of them relating to technology remain common.
However, the utility of handheld devices goes beyond their internal capabilities. By definition, they need a strong infrastructure component. This has benefited emerging markets
2012 Harvard Business Publishing. All rights reserved.

2010: 5.9 billion global

mobile subscriptions
Source: World Bank

Applications that combine user location with geographical

information are in the forefront. Consumers can get an alert of
a discount when they come in the vicinity of a store.
as well, thanks to the ease of deployment of wireless networks.

people get access to credit markets, insurance, microlending,

Because they require only cell towers, rather than massive

and other banking services. And some of those applications are

underground construction, their infrastructure is easier and

going to be so innovative that they find their way back to the

faster to deploy. The World Bank report highlighted a number

developed world.

of countries where mobile broadband penetration far outstrips

fixed broadband. Figure 3

Other banks throughout the developing world are jumping on

the mobile payments bandwagon. The Standard Bank of South

Mobile devices also benefit from economics. Besides being

Africa, the largest bank on the continent, uses mobile technol-

easier to use, smartphones and tablets are less expensive than

ogy not only to help rural citizens establish bank accounts, but

personal computers. Lower costs tend to lead to higher adop-

has deployed a mobile wallet application that lets them shop,

tion. Following the precepts put forth by C. K. Prahalad and Stu-

pay utility bills, add airtime to their mobile devices, and transfer

art L. Hart in their best-selling book, The Fortune at the Bottom of

money to others like M-Pesa does.

the Pyramid, companies can benefit by targeting the huge mar-

Similarly, the Bangladesh-based Dutch-Bangla Bank Limited

kets among the worlds poorest citizensand bringing them the

(DBBL) conducted a survey and discovered that 87 percent of its

capabilities and potential for economic parity.

potential customers in Bangladesh did not have a bank account

A Roundup of Innovative Global

Use Cases
The result of the mobile device proliferation is an astonishing panoply of cutting-edge applications transforming the way
people work and communicate, ranging from location-based
services and mobile payments to machine-to-machine communications and augmented reality.
LOCATION-BASED SERVICES. Applications that combine user
location with geographical information are in the forefront of
cool technology. Its not just the ability to find automatic teller

of any type due to the lack of any branch office near where they
live. However, the study also revealed that 50 percent of this
market segment possessed a mobile phone. So DBBL deployed a

Figure 2

Becoming Mobile Savvy

PERCENTAGE OF RESPONDENTS WHO INDICATED USE OF ADVANCED
MOBILE TECHNOLOGIES
n Location-based offers
Western Europe

machines on a map; its also the ability to access consumer

who have downloaded a retailers app can frequently get an alert

Eastern Europe

7%

of a discount when they come in the vicinity of a store.

MOBILE BANKING. Bringing the unbanked into the regional and

Latin America

6%

principal research scientist at the Massachusetts Institute of

Technologys Center for Digital Business and the co-author of the
new book, Race Against the Machine. Theres a very well-known
service called M-Pesa in Kenya that lets people do peer-to-peer
cash transfers. This is a big deal because a lot of the population
there has had no access to financial services. Now were seeing

23%

4%

underserved areas, but also in economic opportunity.

now happen via their mobile phone, notes Andrew McAfee, a

12%

North America

global economy is providing a boost not only for quality of life in

Financial services, for a lot of people in the developing world,

17%

8%

reviews of retailers through Yelp or Zagat or other online rating

services whether youre in Berlin or Buenos Aires. Consumers

n Contactless transactions

Asia-Pacific

6%
Source: IDG Global Solutions

13%
20%

mobile wallet application capable of multiple financial transactions, and increased its business without investing in new

Figure 4

branches or the resources to staff them.

Global Mobility Innovations

MACHINE-TO-MACHINE. The so-called Internet of Things has

EXAMPLES OF INNOVATIVE USES OF MOBILE DEVICES AND INFRASTRUCTURE IN DEVELOPING AS WELL AS DEVELOPED ECONOMIES

already begun to proliferate beyond General Motors OnStar crash

sensors. In remote sections of Africa, where it takes days to ship
crucial medical supplies, cabinets and medicine containers can be

COUNTRY/REGION

INDUSTRY

EXAMPLE

outfitted with sensors to transmit when theyre running low.

Canada

Tourism

Royal Ontario Museum enables

visitors to have an immersive
experience

China

Logistics

Shipping containers transmit

location and condition information
to recipients

Kenya

Banking

M-Pesa: peer-to-peer cash

transfers using cell phones

Rural Africa

Healthcare

Sensors detect impending

supply shortages and automatically
request replenishment

South Africa

Banking

Mobile wallet from Standard

Bank of South Africa enables bill
payment and shopping

And the implications for the manufacturing supply chain are

significant. Imagine the ability of vending machines to transmit how much merchandise they still contain, eliminating the
need for truck rolls to replenish machines that arent empty. On
a global scale, imagine sensors on shipping containers coming
from China that transmit their location, enabling customers in
Europe or South America to identify their location immediately.
We are also on the verge of seeing networked home appliances that transmit servicing needs; utility monitors that track
energy usage across smart grids; environmental systems managing lights, water, and heating and cooling usage; and even home
health care monitoring devices for patients.
AUGMENTED REALITY. The burgeoning field of AR combines computer-generated content with camera-generated views of the
real world. Imagine calling up Google Maps with Street View and

Sources: Harvard Business Review Analytic Services, Cognizant

seeing pop-ups indicating which stores are offering bargains.

According to chip vendor Qualcomm, more than 1,800 commercial applications of AR have been developed for Android and iOS.

envision dinosaurs as they might have actually looked and

Developers at Torontos Royal Ontario Museum created an

moved, but also to snap pictures of themselves standing next to

application visitors can download to iOS devices not only to

the dinosaurs.
Whats truly intriguing about these mobile capabilities is the

Figure 3

ability to combine them, along with other new technologies,

Wireless Broadband Exceeds Wired

in Developing Economies

such as cloud and big data, to create something greater than

PERCENTAGE OF DEVICE SUBSCRIPTIONS IN SELECTED COUNTRIES,

BY MEDIUM

parking spaces in crowded urban areas, or the ability to combine

n Wired broadband
Colombia

6%

the sum of its parts. Consider the ability to collect information

A New World of Mobility and Insight

9%

Never before in the history of technology has there been such

strong development in three key areas: the power of devices,
the plethora of back-end information, and the ability to integrate multiple sources of the latter to display on the former. As a

13%

result, these global deployments of mobile technology represent

South Africa

only the vanguard of new capabilities. Figure 4

2%

Vietnam

location-based sensors and customer-relationship management

systems to alert high-value consumers to a sale in their vicinity.

n Wireless broadband

Kenya

0.1%

from road sensors and GPS systems in order to help drivers find

20%
5%

As McAfee notes, Now that we have devices in the hands of

literally billions of people, we have thrown open the door wide
to application innovation. We dont know what all the innovators

14%

Source: TeleGeography, Inc., March 2011, and World Bank

and entrepreneurs are going to do with this collection of powerful, connected devices, lots of different sensors, and then a brain
connected to each of those devices, but were going to see some
fantastic advances in the future. u

Sponsors Perspective
Mobile devices are everywhere. Before
long, the number of global mobile subscriptions will exceed the number of humans on the planet.

age of the worlds poor have access to computing devices for the
first time. Out of 6 billion total global mobile subscriptions, nearly 5
billion are in developing nations, reports the World Bank. And many
countries are still experiencing double-digit growth.

The ways that mobile devices are used

throughout the world vary somewhat
by region, but it is universally true that
mobile technology is transcending
voice communicationtranscending
even web access and applications. We
are on the verge of a whole spectrum of
new ideas that will change lives for the
better, all thanks to mobile technology.

In these countries, mobile devices are bringing real quality-of-life

improvements via access to services that were virtually unheard of
before. For example, in Uganda, where 80 percent of the population
has no access to traditional financial services, a program to help
people transfer money to family members using mobile phones was
processing 385,000 such peer-to-peer money transfers per month
only 16 months after launching. A similar mobile wallet program
in KenyaSafaricoms M-Pesahas achieved notable success and
profitability there.

In the developed world, mobile technology already goes well beyond the conveniences of personal devices. A wide variety of products as well as vehicles, machines, and electronics are beginning
to use mobile broadband connectivity to transmit information that
puts humans in far greater control over everything from utilization
of the energy grid to setting their alarm clocks. For example, U.K.based Anglian Water is using sensor data extensively to improve
their quality of service. Anglian monitors its water treatment equipment to make sure it is operating at peak efficiency, which results in
lower maintenance costs, happier customers, and better environmental sustainability.

The opportunity, both for these mobile device users and for the
businesses that supply them with mobile apps and services, is
very rich indeed. At SAP we are working hard to support organizations across the globe with their mobile technology ambitions.
We provide end-to-end mobile solutions that allow businesses to
bring greater utility and improved quality of life to all stakeholders
employees, customers, and partners. We provide security, management, mCommerce, and other solutions to reduce internal risk and
effort as they bring greater utility and quality of life to the worlds
more than 6 billion small screens.

SANJAY J. POONEN
PRESIDENT AND
CORPORATE OFFICER,
GLOBAL SOLUTIONS
SAP

This intelligent sharing of information between machines and sensors is creating an Internet of Things, and as it matures it will begin
to significantly shape the way we live and do business in the years
ahead. Nearly every industry will find ways to optimize its operations using real-time data from the Internet of Things, and these advancements will result in greater profits as well as reduced energy
usage, less waste, better emergency response, and greater expediency in delivering goods when and where they are needed.
Elsewhere, in developing nations, the growing availabilityand falling costof mobile network coverage means a far greater percent-

I invite you to learn more about SAPs solutions for taking the world
mobile at sap.com/mobile. With greater understanding of how SAP is
providing the tools to enable greater mobile app choice and reliability,
youll soon understand why SAPs mobile technology leadership is a
critical driver of global transformation, innovation, and philanthropy.
Sincerely,

Sanjay J. Poonen
President and Corporate Officer, Global Solutions, SAP

ABOUT SAP
As the worlds leading provider of enterprise application software, SAP delivers products and services that help accelerate business innovation for its more
than 183,000 customers in more than 120 countries.

hbr.org
MC175411212

Mobile Transforms Industries

A sample of the benefits of mobile access to enterprise applications accrued by utilities, health care,
and retail organizations.

20%

improvement in field
force productivity

$21.1 billion
potential annual savings
from mHealth

130%

increase in online
retail sales
Sources: PA Consulting, CTIA

From How Mobility Is Transforming Industries, a report by Harvard Business Review Analytic Services. Find more on sap.com/mobile/hbr.

2013 Harvard Business Publishing. All rights reserved.

A REPORT BY HARVARD BUSINESS REVIEW ANALYTIC SERVICES

How Mobility Is
Transforming Industries
Utilities, health care, financial services, retailers and other
leading adopters are reworking their mobile strategies to take
advantage of the latest technologies.
MOBILITY IS CHANGING the way industries operate. Not one industry; all industries. The shift
from a wired to a wireless world is proving to be almost as dynamic as the shift from horses
to automobiles.
Its not just the ability to receive data on mobile devices. These devices have become so
powerful in recent years that they can frequently replicate high-end functions previously
limited to laptops and desktops, such as showing video and other graphics.
Those devices are getting more capable every year, and with the proliferation of them we
have opened the door to application innovation, notes Andrew McAfee, principal research
scientist at the Massachusetts Institute of Technologys Center for Digital Business and the
coauthor of the new book Race Against the Machine. Were going to see some fantastic

Figure 1

Mobile Device Usage

Goes Way Beyond Calls
and Email
PERCENTAGE OF RESPONDENTS
WHO INDICATED THEY REGULARLY
USE SPECIFIC FUNCTIONALITY
Make phone calls

94%

things, in every area of the organization. This innovation enables industries to leverage
those capabilities in the workplace for executive dashboards, equipment maintenance, and
even training programs.
Its more than the ability to shift employees from being deskbound to being mobile. Its
the ability to transform industries by bringing features that are unique to mobility, such as

SMS/text messaging
Browse the Internet

location, presence, and routing. That kind of capability can not only increase efficiency and
eliminate additional friction in business processes, but it also has the potential for launching
new products, new services, and even new business models. Both top and bottom lines, as
well as many business processes, are being remade in real time as executives, managers, and
frontline professionals begin to understand the vast opportunities of mobile technology.
Thats why no industry is immune from the impact of mobile devices. Of course, industries where employees are traditionally mobile, such as utilities, health care, financial services, and retailing, are more impacted at first by the rise of smartphones and tablets. Industries where you wouldnt necessarily expect mobile technology to have an impactsuch as
farming, education, and manufacturingalso are being remade.
Whats so compelling is that the lower costs, usability, and ease of application development associated with these devices means that almost any business can take advantage of

Email

84%
69%
69%

Use mobile apps

59%

Social networking sites

42%

View video content

31%

Source: IDG Global Solutions

their capabilities. Not only is the cost of the devices lower, but the cost of application devel 2012 Harvard Business Publishing. All rights reserved.

These leapfrogging technologies mean that were likely to see

innovation happen in places where were not expecting it.
opment is as well; developers are flocking to this virgin territory.

recently reported on the effort of a Toronto utility that needed to

There are millions of apps out there, estimates Jeffrey Kagan,

convert 1.2 million conventional electric meters to smart meters.

an independent mobility analyst. The number is growing rap-

But mobile devices deployed to the workers allowed them to elec-

idly, and theyre not just gamesthey are apps relating to busi-

tronically gather other important data such as meter numbers,

ness. Right now, he says, people are delighted with the num-

meter reads, GPS coordinates, and customer premises details,

ber of apps that interest them. But theres also a ton of apps for

reducing the projects overall cost. This in turn helped establish a

things youre not interested in, all the things that other people

collaborative partnership between the utility and its customers on

do. Its like the wild, wild West out there.

improving energy consumption.

Indeed, 55 percent of more than 21,000 survey respondents,

mostly IT professionals, said they use their mobile phones for jobrelated tasks, according to a new survey by IDG Global Solutions.
And while email is the most frequently cited business-related use
of a mobile device, professionals and managers are using their
smartphones and tablets to access corporate apps, watch training
videos, review and create documents, and perform other tasks.
Figure 1

The Industries in the Forefront

Individual enterprise strategies aside, which industries are the
pioneers in the mobility landscape, and what are the early lessons learned? Heres a look at some of the leaders as well as some
unique scenarios.
UTILITIES. Given the extensive geographic areas utilities serve,
they face a win-win-win scenario with mobile technology.
By deploying mobile technology to their workforce, they can
improve productivity and transform service delivery in the field.
By deploying it to their customers and partners, they can rapidly
analyze asset and service performance, better track customer
consumption trends, and improve environmental stewardship. Combining this information with the fast-growing array
of mobile analytics will enable utility managers to more quickly
target solutions and capital investments.
According to an August 2012 PA Consulting survey, utilities are
already enjoying a 23 percent increase in service-level agreement
compliance and up to a 20 percent improvement in field force
productivity, thanks to mobile technology. Other areas in which
utilities are reaping benefits from mobile reporting include
demand management through the use of smart meters; operational efficiency by integrating GIS systems with mobile devices;

HEALTH CARE. The health care industry has a long history of taking advantage of mobile technology, from early adoption of Palm
Pilots for ePrescribing to mobile computers on wheels. However,
mobility is transforming this industry even further with the ability to have in-home medical devices monitor patient data and
transmit it to practitioners. And these devices do not have to
conform to our current ideas about computingsmart medication bottles now include sensors in the bottle cap that trigger a
wireless notification that a patient has taken medication, and
then request a prescription refill after the appropriate number
of events, or notification if the patient fails to take medications.
Accuracy and speed are also key benefits. Its easier for practitioners to confirm the appropriateness of a drug quickly and
easily; prescribing can also be done based on the most updated
information. Physicians carrying smartphones or tablets can
access remote patient assessments and lab reports immediately
upon their completion, as opposed to waiting until they can
get back to their desk or a stationary computer. Consider also
the ability of practitioners to use workflow or social media via
mobile devices for improved collaboration.
Mobile technology can also help address the industrys rising
costs. In the May 2012 report titled Socioeconomic Impacts of
Wireless Technology: A Review of Opportunities and Challenges
in Health Care, Finance, Education and Community Empowerment, the wireless industry association CTIA predicted that inhome wireless health care services and applicationsthe ability
to manage patients and upload health data without a clinical
visitwill become a $4.4 billion industry by 2013, and that the
potential savings to consumers, insurance companies, and government payers resulting from mHealth technology may reach
$21.1 billion per year.

customer service through the use of service call reminders and

FINANCIAL SERVICES. Mobility can transform financial ser-

outage notifications; and brand awareness.

vices in its ability to reach the unbanked or underbanked

By combining multiple applications on a single mobile device,

demographicpeople who have mobile phones but not bank

utility field support workers can boost their productivity, particu-

accounts. A February 2012 article in Bank Systems & Technology

larly for capital-intensive projects. Consulting firm Cap Gemini

estimated that some 25 percent of the U.S. population (accord-

ing to the Federal Deposit Insurance Corporation) and 70 percent

edge about more precise and resourceful farming techniques

of the worlds population (according to several sources) has no

[that] will affect water and land conservation and reduce use

access to financial services.

of fertilizers and pesticides, the report noted.

Some countries are going beyond what were using in the

While schools have been relying on computers in the classroom

United States, notes McAfee. These leapfrogging technologies

for years, they still required printed textbooks. Replacing those

mean that were likely to see innovation happen in places where

with tablets can potentially reduce the cost of books each year.

were not expecting it.

Other educational applications arent far behind, such as student

This transformation will manifest in a number of ways. First, the

potential growth in the mobile payment market and the ability to
make payments via mobile phones is stunningthe CTIA projects
it will reach $670 billion annually by 2015. Its likely that the smartphone will overtake the wallet just as it has overtaken the camera,
the personal organizer, and other traditional accessories. Figure 2
But equally transformative will be the ability of financial institutions to not only provide a bank in the palm of the hand but also
spur economic activity through granting microloans and offering
consultation to small businesses in developing countries.
RETAIL. Mobile technology works for both customers and salespeople. Stores can target customers with promotions when
theyre in the store, and salespeople can not only show customers product videos to answer questions, but they can also check
inventory information and enter the order; the tablet essentially
eliminates the need for the cash register (for credit card customers). Este Lauder has installed tablets in department store
kiosks so that customers can input information about their skin
tone and complexion and then get a list of appropriate products.
The inclusion of optics in handheld phones has led to the
explosion in QR codes, codes that the phones can scan to take
the customer to a Web site for more information. The value of

testing, or athletic coaches using tablets instead of clipboards to

keep track of plays. In addition, the tablet can help train students
in a wide variety of learning scenarios, showing them videos or
animated demonstrations.

Conclusion
Anyone with the imagination to innovate can apply mobile
technology to any industry and find ways to take advantage of
data being uploaded or downloaded faster or more conveniently
than it is currently. But looking at how other companies in leading industries are capitalizing on mobile technology can be both
educational and inspirational toward crafting ideas for a mobile
strategy that can provide greater competitive advantage sooner
rather than later. u
Figure 2

Mobiles as Electronic Swiss Army Knives

PERCENTAGE OF RESPONDENTS WHO INDICATED THAT A MOBILE
DEVICE REPLACED ANOTHER PRODUCT
Clock/alarm

QR codes is that they can be placed anywhere customers or prospects come into contact with advertising: kiosks, store windows,
magazines, and more. In Seoul, South Korea, grocer Tesco placed

65%

22%
Personal organizer

55%
45%

electronic billboards in the subway stations, allowing commuters to scan product codes, transmit them to a central server,
and have those items delivered after they arrive home; the store

Music player

reports its online sales have increased 130 percent since the cre-

34%

ation of the billboards. In other locations, Tesco has installed

cameras in produce departments to recognize when vegetable
bins are empty and automatically notify shelf stockers via their
mobile devices of what needs to be replaced.

What Other Industries Can Learn

from Mobility Pioneers
Mobile technology is also expanding beyond the aforemen-

Landline phone

Newspapers

tioned industrieswhich are traditionally technology innovatorsto less-traditional industries. According to the CTIA report,
farmers are using wireless applications to monitor crop development and livestock management. It cites the use of sensorsin
this case, wireless soil monitorsattached to plants to monitor
growth. Wireless data provides farmers with actionable knowl-

35%

6%

Books

52%

33%

14%

62%
51%

Computer

5%

20%

n Smartphone
n Tablet

Source: IDG Global Solutions 2012 Mobile Survey

Sponsors Perspective
Mobilitys capacity to accelerate business is extraordinary. Moreover, it confers its benefits across every industry,
business function, and job role. From
the corner office to the factory floor,
mobile devicesand the apps that run
on themare providing a better way for
virtually everyone to improve their contribution in the workplace.
The image of the white-collar road
PRESIDENT AND
warrior taking meetings in the airport
CORPORATE OFFICER,
is a familiar depiction of mobilitys
GLOBAL SOLUTIONS
endowment to business. But by looking
SAP
beyond the clich you can begin to
understand just how widely varied
mobile technologys reach has become. Knowledge workers are
merely the tip of the iceberg.
SANJAY J. POONEN

Entire industriessome previously underserved by information

technologyare undergoing a transformation like never before.
Unlike traditional desktop delivery, mobile computing gives
companies in hands-on fields such as manufacturing and
agriculture the ability to transform how people do their jobs,
regardless of whether they ever sit at a desk.
For example, SAP is helping customers such as Tommy Hilfiger
disseminate high-resolution images of its upcoming clothing
lines to employees on their iPads. Employees can see and
discuss important features of the products and speed workflows
in the process.
Similarly, Santiago, Chile-based Empresas Iansa, an agricultural
manufacturer, was able to give workers in the fields, warehouses,
and delivery vehicles access to real-time inventory information
and the ability to participate in quality control procedures.
These improvements have helped them eliminate supply chain
errors that once caused havoc with production.

As the accompanying report relates, retail, health care, utilities,

and financial services are just some of the industries that are
transforming both internal and customer-facing processes
using applications created by SAP. At SAP, we have leveraged
our decades of experience in resolving critical bottlenecks
in virtually every industry and combined it with our mobile
technology leadership to create mobile apps that let businesses
do what they never could before.
For example, SAP Service Manager is an app that gives field
service workers access to customer account data, parts
inventory, and other electronic information wherever they
go. As a result, these workers are achieving a high level of
effectiveness and standard of customer support that was simply
never possible before.
For SAP, the excitement and momentum around mobile
technology has hit a fever pitch, and this is driven by our
excitement at seeing our customers use our mobile apps to
transform how they do businessmobilizing their enterprise.
We invite you to learn more about SAPs mobile app offerings
as well as those from our partner ecosystem by visiting the
SAP Store from here: sap.com/mobile. Youll soon understand
why SAPs mobile apps leadership is a critical driver of mobile
transformation and innovation in a wide variety of businesses.
Sincerely,

Sanjay J. Poonen
President and Corporate Officer,
Global Solutions, SAP

ABOUT SAP
As the worlds leading provider of enterprise application software, SAP delivers products and services that help accelerate business innovation for its more
than 183,000 customers in more than 120 countries.

hbr.org
MC175411012

Mobile Conquers the Enterprise

Recent survey highlights growing interest in accessing enterprise systems via mobile devices

58%
INDUSTRY SPECIFIC APPS
% of respondents indicating
already deployed

All Industries

52%
LINE OF BUSINESS APPS
% of respondents indicating
deployment of finance, CRM,
HR, field service

All Departments

54%
MOBILE INVESTMENT DRIVERS
% of respondents indicating
executives need to access critical
business information

All Roles
Source: IDG Research Services, 2012

From How Mobility Is Changing the Enterprise, a report by Harvard Business Review Analytic Services. Find more on sap.com/mobile/hbr.

2013 Harvard Business Publishing. All rights reserved.

A REPORT BY HARVARD BUSINESS REVIEW ANALYTIC SERVICES

How Mobility Is Changing

the Enterprise
Forward-thinking enterprises use mobile technology across
their organizations to give employees, suppliers, and customers
access to appropriate data when and where they need it.
WITH THE BOOM in smartphones and tablets, we are in the vortex of the technological shift
from Mobile 1.0 to Mobile 2.0.
The zenith of the Mobile 1.0 explosion came late in 2008, when the sales of laptops surpassed the sales of desktop PCs for the first time. Enterprises had long before begun outfitting what they called road warriors with laptopssalespeople, field support personnel, and
on-the-go executivesgiving them access to inventory, documentation, and other databases.
Simple wireless antennas, followed by built-in Wi-Fi, coupled with virtual private network
software, made logging on anywhere and anytime almost as easy as it was in an office.
Later enterprises realized that by outfitting even more employees with laptop computers
instead of desktop computers, even traditional office workers could improve their productivity. Employees could collaborate in conference rooms, in the offices of partners and suppliers,
and in airports, no matter where their work took them.
History is about to repeat itself. Sometime in 2015, according to a Forrester Research forecast,1 the sales of tablets will overtake laptops. If Mobile 1.0 was about the extension of corporate data to mobile devices, Mobile 2.0 is about innovation and transformation. Its all
about wireless data, says independent technology industry analyst Jeff Kagan, who specializes in mobile technology. Were in the early days of this new way of thinking about all
these new devices. When these devices first came out, they were cool, they were fun. Now
they are the way we work and communicate.
This new evolution is not just about mobility; its also about mobile devices working in concert with back-end corporate systems. The IT industry is in the process of creating a dramatic

Figure 1

Whats Driving Mobile

Investment?
HOW IMPORTANT ARE THE
FOLLOWING TRENDS AS DRIVERS
OF INVESTMENTS IN MOBILE
TECHNOLOGY AND SERVICES AT
YOUR ORGANIZATION?
Executives need to access critical
business information

54%

Workforce becoming increasingly

virtual and mobile

51%

Employees and/or customers

increasingly demand real-time
information

49%

n=140
Source: IDG Research Services, 2012

and powerful new infrastructure, one where a handheld device has the horsepower to run
many applications and crunch a substantial amount of data offline while relying on wireless
connectivity to access huge data sets using beefy enterprise applications wherever they are.
According to the results of an online February 2012 survey by IDG Research Services,
three drivers are accelerating the demand for mobile access to enterprise apps: executive
demand, the increasingly mobile workforce, and customers demand for real-time information and action. Figure 1
2012 Harvard Business Publishing. All rights reserved.

These drivers are extending the boundaries of computing, not

how things are done, says Daryl Schoolar, a principal analyst for

only in terms of where computing is done but also in terms of

infrastructure issues at Ovum Research. Its being driven by more

what computing can be done. The advent of cloud computing, in

devices and better devices, all of them bringing instantaneous and

fact, is profoundly remaking those boundaries with new applica-

convenient computing. Essentially, enterprises are using mobile

tions, flexibility, and efficiency. And even companies resistant to

technology not only to compress the time it takes for business

the public or private cloud concepts are providing mobile device

processes, but also to provide highly accessible, accurate, and up-

access to enterprise applications.

to-date information to help employees, partners, and customers

Specific departments are already reaping the benefits of these

make better decisions.

expanding boundaries. According to the IDG survey, more than

Indeed, the impact of mobile device access to enterprise appli-

half of the respondents have deployed industry-specific mobile

cations is considered transformational by a substantial number of

applications and half have deployed mobile apps for specific de-

companies. According to the IDG survey, a majority of senior tech-

partments, such as finance, human resources, sales, or field ser-

nology executives view it as transformational or strategic. Figure 3

vice. In addition, almost half have deployed dashboards, access

to analytics, and key performance indicator alerts on mobile
devices. Figure 2
However, the advantages of providing mobile device access
to enterprise apps extend beyond employees to customers. The
same IDG survey found that 40 percent of companies are giving
consumers access to actionable information via mobile devices.
While almost everyone is familiar with banks and securities firms
providing updates on account balances and transaction status,
business-to-business access is booming too.
In addition, mobile device interaction through social networking sites provides new ways for customers to communicate and
for companies to offer sales and marketing opportunities. Supporting this kind of interaction between customer and company
increases customer intimacy, and at lower costs than human interaction would require.
The impact of mobility on lines of business has been pervasive;
no department is immune from its effects. Mobility is changing

Heres how mobility is changing these key functional departments.

FINANCE. The raison detre of any finance department resides in
approvals, checks and balances, and auditsactivities that cant
be left to computers and must happen on a timely basis. Mobile
technology enables finance employees to act on their responsibilities quickly. So whether its a purchase order approval or a question about a regulatory compliance issue, communication via mobile technology keeps the enterprise moving forward. Enabling
such responsiveness is especially crucial during specific, timesensitive periods, such as end-of-quarter closings, or during budgeting cycles. The faster results are reported, the more accurate
they are and the more reliable the decisions executives can make
using them. That benefits both those in the finance department
and line-of-business managers.
SALES. The same kind of access to up-to-date, accurate information benefits salespeople as well. Salespeople can both download
and upload information during the course of their day, providing
near-real-time inventory, orders, and shipping information to customers and the entire supply chain.
Further, by using a tablet or a smartphone rather than a laptop,

Figure 2

Mobile Apps Already Deployed

salespeople are removing a physical barrier between themselves

WHICH OF THE FOLLOWING TYPES OF MOBILE APPLICATIONS ARE

DEPLOYED BY YOUR ORGANIZATION?

more easily hand a tablet over to a client to demonstrate a specific

Industry specific (unique to your industry process)

58%

Line of business (finance, HR, CRM, field service)

52%

Productivity (approvals, time and expense)

51%

Analytics (dashboards/KPIs)

46%

Business to consumer (loyalty management, social media)

40%

n=140 respondents who are involved in the purchase process for mobile technology
and services
Source: IDG Research Services, 2012

and their clients that can diminish intimacy. In fact, salespeople can
feature of a product or review a bill of materials. The ease of interaction with a tablet adds an air of transparency to the sales process.
HUMAN RESOURCES. As with finance, a significant portion of human resources responsibilities relate to approvals and workflow:
vacation requests, hiring, interview applications. Increasingly, its
crucial to make an offer to the right applicants quickly to avoid
losing them to another company. Mobile technology helps with
these functions, but its applicability has far greater potential.
Giving employees access to information about their compensation and benefits reduces the need for human intervention on
the part of HR and lets employees check that information from
home or on the road. Indeed, mobile devices are radically transforming the arranging and rearranging of travelchanging hotel,
rental car, or airline reservations while on the go provides enormous flexibility.

By combining context and real-time analytics, mobility will

truly transform the way we do business.
At the same time, mobile technology, especially tablets, provides
excellent opportunities for learning and training. A recent IDG
Global Solutions survey and report on mobile device use by more
than 20,000 IT professionals, line-of-business managers, and consumers reported that almost half watched work-related video on
their mobile devices. Interestingly, more of them watched more
technology content after hours (68 percent) and on weekends (57
percent) than during business hours (40 percent).

Figure 3

ITs Perception of Mobile Technology

WHICH OF THE FOLLOWING BEST DESCRIBES THE
PERCEPTION OF SENIOR IT AT YOUR ORGANIZATION
REGARDING MOBILE TECHNOLOGY?
Transformational (a way to change how things are done)

42%

Mobile technology aids HR in managing the interview process

as well as providing quick access to social networking sites such as
LinkedIn and Facebook to identify potential employees. In addition, mobile HR apps enable talent management by providing access to employee profiles and key performance indicator reports.
OPERATIONS. In the age of globalization, supply chains stretch

Strategic (a way to get things done while advancing

organizational goals)

29%

Tactical (a way to get things done faster through

productivity improvements)

around the world, and production managers expect to be kept

25%

apprised of significant issues relating to inventory and logistics.

Source: IDG Research Services, 2012

With mobile technology, manufacturing partners can notify executives through alerts, even if its after normal working hours, to
get instructions on how to proceed. This optimizes supply chain
activities so that communication isnt delayed if it takes place at

immediately. The ability to reach a trained engineer in the field,

night or during the weekend.

who has access to detailed engineering drawings and other back-

Mobile technology has become invaluable across industries.

ground information, can help resolve the issue in real time. Such

Pharmaceutical companies are using mobile to change the way

service not only reduces customer downtime and support costs but

they share data, capture orders, and track inventory, says Maribel

also usually strengthens the bond between customer and supplier.

Lopez, principal analyst of Lopez Research. Up-to-date drug and

compliance information can be pushed to tablets. Salespeople can
view inventory availability, process sales, and record the dispensing of drug samples on a mobile device.
The result is faster receivables turnover, improved regulatory
compliance, and more accurate data collection. But there are
even more potential capabilities for operations, combining inventory information and customer data. Imagine a retailer with excess
inventory at a specific location. The retailer could, via a tablet in
the warehouse, send out a time-and-geography-based coupon to
customers within a specific radius offering deals on that merchan-

What Will Happen Next?

Its almost impossible to measure the ways in which mobile
technologies might continue to affect the enterprise. Consider
the increasing trend of employees bringing their own devices
and the effect on IT budgets and capital expenses. Consider the
ability of manufacturers, such as consumer products companies, that have traditionally been shut off from their end users
because of their distribution methodsthey can offer coupons
to shoppers at the points of sale.
This is only the beginning. Sales, HR, finance, and service are

dise within the next 24 hours.

just a few of the functional areas that are about to be transformed

SERVICE. Another strategic integration point is mobile unified

by mobile technologies. Virtually all departments across the en-

communications, which incorporates features such as the ability to know the availability of employees (presence) and contact
them no matter where they are, using various methods (text message, phone call, or email).
Consider the scenario of a company selling highly complex equipment receiving a frantic call from a customer who needs assistance

terprise can benefit by incorporating mobile technologies into

their processes and workflows.
What excites me most about mobility is the ability to inject
context, such as location, time of day, and sensor data into business
processes, notes Lopez. By combining context and real-time analytics, mobility will truly transform the way we do business. u

END NOTE 1 http://www.mobilemarketingwatch.com/tablets-to-surpass-laptop-sales-in-2015-one-third-of-us-consumers-will-own-one-12356/

Sponsors Perspective
Enthusiasm for mobile technology in
the workplace is at an all-time high. This
trend began several years ago as eager
consumers brought personal devices
to work, and today it is businesses that
are driving a faster-than-ever pace of
mobile innovation in the enterprise.

SANJAY J. POONEN
PRESIDENT AND
CORPORATE OFFICER,
GLOBAL SOLUTIONS
SAP

Gone are the days when fears of

security risks and unrecoverable IT
effort kept companies from embracing
mobile enterprise apps or limiting
their investment to only email and
calendars. Today, more than 70
percent of senior IT execs say mobility
is transformational, strategic.

To reap the greatest advantage from mobility, organizations

need to reach beyond productivity enhancement. Our
customers are using SAP technology, not just to help employees
do more in their downtime, but also to actually transform
processes, experiences, and transactions at the very heart
of their businesses. These applications improve customer
engagement and create a tight feedback loop that leads to
better decisions in less time. For example, Boston Scientific, a
manufacturer of medical devices, is providing salespeople with
video- and graphics-enhanced data about their products in the
field, making it possible to give doctors a more accurate and
in-depth understanding of how the products can help them
save lives.
Some of the most startling transformations are happening within
discrete lines of business. Sales, human resources, operations,
and finance are among the internal organizations that are using
mobile devices to make better decisions and create happier

customers, employees, suppliers, and partners.

SAP mobile apps are fueling these transformations within many
leading organizations. We leveraged our decades of experience in
helping lines of business streamline their processes and paired it
with our mobile technology leadership to create dozens of mobile
apps that are changing businesses for the better.
Take SAP Manager Insight, for example: This app, which lets
managers easily surface the individual talents, attributes, and
personnel files of every employee on a mobile device, improves
the efficiency of strategic meetings and helps make sure the
right people are placed in the right roles quickly. Likewise,
finance officers can use SAP EPM Unwired while visiting job sites
to gain critical, real-time insights into issues influencing profits
and losses.
For SAP, the excitement and momentum around mobile technology
has hit a fever pitch, and this is driven by our excitement at seeing
our customers use our mobile apps to transform the effectiveness
of their lines of business.
We invite you to learn more about SAPs mobile app offerings as
well as those from our partner ecosystem by visiting the SAP Store
from here: sap.com/mobile. Youll soon understand why SAPs
mobile apps leadership is a critical driver of mobile transformation
and innovation in a wide variety of businesses.
Sincerely,

Sanjay J. Poonen
President and Corporate Officer,
Global Solutions, SAP

ABOUT SAP
As the worlds leading provider of enterprise application software, SAP delivers products and services that help accelerate business innovation for its more
than 183,000 customers in more than 120 countries.

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