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A study of Mobile Platform Awareness & Adoption by Enterprises is imperative at a time when there is considerable dearth of information on mobile data services platforms in India and on how these platforms can be leveraged by businesses for their benefit. This is a comprehensive report benchmarking the present state of awareness, use and purpose of use of mobile platform for customer engagement.
Thus far, the mobile industry has focused on aggregating numbers for mobile usage. While Mobile Value Added Services (MVAS) provided consumers with information, entertainment and utility services and generated incremental revenues for operators, the time is now ripe to move beyond MVAS and focus on enterprise adoption of mobile technologies for greater business productivity. A robust and proven mobile data services platform that can act as a bridge between operators and enterprises is needed. Such a platform can drive enterprise adoption of mobiles and open up new revenue streams for operators.
This report is aimed to understand the current state of mobile engagement platform awareness and adoption by enterprises. This study hopes to be a bellwether for the industry, facilitating on one hand, platform providers to recognize the state of the industry, and enterprises to realize the mobility tools available at their disposal for meeting their immediate and latent needs on the other.
The highlight of this report is a sector wise analysis of the state of the mobile platform awareness and adoption. I hope the findings of this study will be useful to all those who are concerned and connected with this company and with the Indian mobile industry.
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COMPANY PROFILE
IMImobile is the leading global specialist provider of cloud-based mobile data infrastructure and mobile technology. IMImobile is a leading global provider of end-to-end mobile engagement software and solutions to mobile operators, enterprises and media companies. Headquartered in Hyderabad, India, we have offices in London, Dubai, Athens, Mumbai, Delhi, Colombo and Dhaka and employ nearly 650 people worldwide. IMImobile is the winner of more than 20 prestigious awards including Cloud Africa Award and World Vendor Award. With a global presence across Asia, Europe, America and Middle East, they are your perfect partner to capitalize on the ubiquity of mobile technologies by driving customer acquisition and retention, increasing employee productivity and driving new channels for revenue.
IMImobile is specialized in providing next generation mobile internet services and enterprise grade CRM solutions. They have extensive experience in designing and building mobile portals as well as mobile and tablet applications that deliver an outstanding user experience. Furthermore, IMImobile provides mobile billing and payment, bulk messaging, content management, mobile advertising, storefront, social media and digital music solutions.
Today, IMImobile is working with over 100 Blue-chip companies and its services reach over 1.2 billion people & 96 operators in over 73 countries worldwide. Their operator customers include Aircel, Airtel, BSNL, Meteor, Mobitel, MTN, Tata, Telefonica, Virgin Mobile and Vodafone. Their media and enterprise customers include BBC, Star TV, Reuters, Yahoo, Google, EMI Music, Universal Music, Sony and Warner Music, The AA, Centrica and E-ON.
WHAT THEY DO
HELP YOU MAXIMISE THE POTENTIAL OF MOBILE.
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They help their customers to use: Mobile as CRM channel - acquire, service, engage and retain customers across mobile and social channels. Mobile as revenue channel - generate revenue by transacting with their customers through the mobile channel. Mobile as productivity tool - mobilise business applications and improve employee productivity through mobile solutions.
Its corporate identity unites everyone at IMImobile to deliver the best service possible. IMImobile operate in multiple markets, delivering customized communication solutions to help their clients to grow their business. To achieve this on a day-to-day basis company created brand values. These brand values are at the foundation of their success today and they are committed to living these values to ensure the success in the future. IMImobiles seven core brand values are: Innovate, Engage, Connect, Deliver, Collaborate, Learn & Motivate
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THEIR HISTORY
Originally, the company was established as IMISoftware in 1998 to develop software for power transmission and telecom towers. It was the year 1999 when Vishwanath Alluri and Shyam Bhat, the two founders of IMImobile, saw an opportunity to offer a richer set of mobile data services in a mobile landscape dominated by voice and SMS.
With entrepreneurial vision Vish and Shyam realised that not only would customers want a full range of mobile services on their mobile devices, but that a broader range of media and enterprises would also want to get involved to reach out to their customers. In 2007, the original business of IMISoftware was sold and the company was renamed IMImobile.
Today the awarded DaVinci Evolved Service Platform, developed by IMImobile, is deeply embedded in the business processes of over 100 mobile operators and blue chip enterprise customers worldwide. The platform represents 600 man-years of investment and development and reaches over 1.2 billion mobile subscribers worldwide.
BOARD OF DIRECTORS
Vishwanath Alluri
Founder & Executive Chairman Vish founded IMImobile in 1999 with a vision of harnessing the intellectual resources of India to develop an IPR centric technology company. While recognising the potential of the rapidly evolving mobile data space, Vish was aware that fast growth needed to keep pace with ever changing technology. Vish therefore set out to build a company which would liberate mobile operators and media companies of technological complexities thus enabling them to realize the huge revenue potential. A pioneer of the 'managed service model', IMImobile delivers turnkey technology solutions allowing customers to focus on their core business development. Today IMImobile has become one of the leading players in the MIT School of Management Page 6
Mobile Value-Added Services market. Vish has extensive experience in the technology domain and was previously involved in setting up an Indian hi-tech consumer services company in the healthcare sector. Vish is a Chartered Accountant and a Company Secretary.
Shyam Bhat
CTO and Founder Bhat has more than two decades of experience in Engineering and new product developments. He is responsible for the creation of all the engineering and mobile products and platforms. Bhat is an Engineering graduate from the highly prestigious Indian Institute of Technology, Bombay.
Jayesh Patel
Chief Executive Officer Jay has been working with IMImobile since its foundation in 2000 and has helped the company grow internationally from its headquarters in Hyderabad, India. Jay has spent the last 20 years in the media, technology and telecom media sector and was part of the founding team and partner at Spark Ventures, a leading early stage digital media investor. Jay has also held executive positions at BSkyB and UBS Warburg and holds degrees from the LSE and INSEAD.
Amish Jani
Director Amish Jani, a Founder and Managing Director of FirstMark Capital, focuses on software and systems investments in the enterprise, communications and digital media sectors, and serves on FirstMark Capital's Investment Committee. Amish also leads FirstMark's investment strategies for the Indian marketplace. Prior to founding FirstMark Capital, Amish was a Partner with Pequot Ventures. Amish has led and sits on the board of seven FirstMark portfolio companies, including IMImobile, Conductor, Boomi and Lumos Labs. Amish has both a B.S. and an M.B.A. from the Wharton School of Business at the University of Pennsylvania.
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Mohit Bhatnagar
Director Mohit is currently a Managing Director with Sequoia Capital India and serves on the board of Prizm Payments, Comviva, Ujjivan Microfinance, IMImobile, Ideacts, Micromax Mobile & One Assist. Prior to joining Sequoia Capital, Mohit served as the Senior Vice President at Bharti Airtel where he helped scale the business from a few states operation into a leading national wireless carrier. Earlier, Mohit co-founded Bright pod, a wireless start-up in the US, by orchestrating a spin off from Ericsson Mobile Systems. Mohit has received an MBA from UNC Chapel Hill and an MSEE from Virginia Tech.
Its Branches:
In APAC region it has branches in New Delhi, Mumbai, Chennai, Kolkata, Dhaka(Bangladesh) and Sri Lanka. In Europe region it has offices in London and High Wycombe. In Middle East & Africa region it has a branch in Dubai. In America it has offices in Atlanta & Panama.
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COMPANY'S OFFERINGS
IMImobile OPENHOUSE unleashes the power of the mobile medium for your business. IMImobile OPENHOUSE is a secure, cloud-based platform that throws open network and web resources. It makes it possible to easily incorporate mobile capabilities into business applications and allows you to develop and launch your own innovative mobile solutions.
BUSINESS APPLICATIONS
I want to interact with my customers
Through our interactive SMS and Voice campaigns and built-in campaign manager, you can promote new products and services, inform loyal customers about special offers and update your employees, all within minutes. We offer two types of interactive services:
SMS broadcast: Communicate with larger audience with our interactive SMS
campaigns. You can use campaigns to promote new products or services, send offers to your loyal customers, share important information with your employees etc. Campaigns are not just for one-way bulk message delivery. A reply path enables your customers to respond back to your communication.
Voice broadcast:
voice campaigns and run within minutes. Voice broadcast helps your business in setting up interactive campaigns that automates bulk voice calls to mobile/telephone users, playing pre-recorded messages. Campaigns can be scheduled to promote new products or services, send offers to loyal customers, share important information with employees etc
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Download our Excel Plugin and start sending SMS messages right from Excel. Our Plugin allows you to personalize the message for each recipient using data available with the Excel file. You can even schedule the SMS messages to be delivered at a pre-defined date and time.
Missed Call to SMS: Customers can place a missed call to a given number at
no cost to them, and receive an SMS in response. The response SMS may be static or customized to include personal and dynamic content. This service is usually used to capture potential leads when the target audience doesnt have internet access or Smartphones.
Missed Call to Call: Customers can place a missed call to a given number to
receive an immediate call-back. This service is integrated with Virtual IVRs Call Flow Designer for complete automation. This service can be used in cases where the customer needs to go through a validation process, after which the call can be transferred to a customer service representative.
SMS to Call: A keyword like OFFERS is made available through mass media.
Customers can send an SMS with this keyword to a short code or long code to receive a direct call-back. This is a popular method used to capture potential leads and give a call-back immediately once a customer service or sales representative is
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available. Our Several enterprise customers have used this service during launch of a new product or service.
Click to Call:
voice calls with the click of a button. A web widget can be downloaded and placed on the website where customers browsing the site can enter their mobile number to receive a call-back. Click-to-call widgets enable real-time voice connections from existing websites without additional costs to the customer, which results in greater conversion rates for businesses.
service enables automated voice applications so you can connect with your
customers in a cost-effective and convenient way.
A guided wizard-based interface enables you to quickly set up new polls. You will have the flexibility to configure and manage multiple polls and have access to real-time analytics and detailed reports.
Our poll services are channelled through SMS. MIT School of Management Page 11
Longcodes: Longcodes are ten-digit virtual mobile numbers that can be used for both SMS and voice communication. Longcodes are globally accessible, which means your customers around the world can now reach you. You can either set up an interactive voice application and make it available on a long code or publish your long code to your customers and interact with them over SMS.
Keywords: Keywords allow your business to establish a cost-effective, two-way SMS communication channel while creating a unique identity for your business. Using keywords, you can run contests, quizzes or polls, solicit customer feedback and run surveys to gauge customer satisfaction.
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CUSTOM SOLUTIONS
Field Force Management
Over 40% of all workforce is mobile. How effectively are you managing your field force? Collecting customer data from the field, inspecting field assets, auditing field operations, booking a new sales order are all tasks that routinely happen in the field, but are largely manual even today.
Our Field Force Management solution powered by OPENHOUSE allows you to automate many of these activities. Our solution enhances the credibility of data collected from the field by geo-tagging and time-stamping the activities, allows new tasks to be assigned to field workers, provides checklists to improve service quality and gives management real time visibility into field activities. Our smartphone application and administration consoles can be quickly customized for your unique needs.
Custom IVR
Are you missing customer calls because your live agents are out of office or busy with other calls? Do you want to empower your customers to service themselves? Our IVR solution can help you do these and more.
Setting up these advanced voice services is quick and easy with OPENHOUSE Cloud IVR and visual call flow designer. Once you have defined your call flow, you can setup an inbound IVR or attach the call flow to an outbound voice campaign. You can send SMS messages from the IVR, integrate with your existing business applications, capture input from customers or even connect them with your call center.
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Developer Tools
Messaging APIs
Our Messaging APIs help you establish a two-way communication channel with your customers and employees. Messaging APIs have limitless possibilities: from letting customers look up the nearest branch of their bank to enquiring about the status of an online order.
Voice APIs
A one-to-one dialogue often creates more personalized and effective communication. Through our Voice APIs, you can stay connected to your customers whether they use fixed line or mobile networks. Our voice platform is multi-tenant and cloud-based. That means you dont have to worry about renting PRI lines, buying expensiv e equipment or hiring an army of developers to set up your voice application. Just access our platform, use our call-flow designer to create the entire flow of your voice application, and pay only for what you use.
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Social APIs
The true potential of your business will remain unexplored till you leverage the power of social media. Our Social APIs are integrated with Twitter, Facebook, LinkedIn, MySpace, Bebo, Foursquare, Picassa and Flickr. That means, with one set of APIs, you can build applications that interact with all of these services.
Call-flow Designer
Use our call-flow designer to setup the entire flow of your voice application. Once setup, you can make these applications available to your users through outbound calls or publish a number for your users to call in. Built-in DTMF support allows you to setup rich menu-driven applications quickly.
Engaging in a one-to-one dialogue with your customers and personalizing these interactions have never been easier.
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CHAPTER 3
THEORETICAL BACKGROUND OF THE TOPIC
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Mobile is Masses - reach that no other medium can provide There are going to be more mobile subscribers than people by 2015! Mobile is Ubiquitous - present everywhere, every time And, Mobile is Ease - ease of access
But the path to enterprise mobile solutions is not easy. That's because...
Mobile is also Multiplicity Multiplicity in channels - SMS, MMS, USSD, STK, Voice, Data, Video, Apps Multiplicity in platforms -- Android, iPhone, Blackberry, Windows Mobile, J2ME, Bada and Symbian Multiplicity in protocols -- SMPP, MM7, CIMD, HTTP, Parlay, ParlayX, SS7
That's where service providers like IMImobile come in. Through IMImobile OPENHOUSE, they demystify mobile technologies and power your mobile innovation through open collaboration. They have the right ingredients to mobilize your enterprise solutions.
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Were at the point where mobile phones and apps are an inseparable part of how we live. As we take a gander at the mobile market, its already clear how big the mobile adoption rate is. More than 1 bn smart devices all around, nearly 2 m apps, billions of apps downloaded, high revenues, high demand. People love phones and apps and that love is growing stronger. Enterprises are no different in that regard.
Despite the profits, despite the numbers and despite the benefits, enterprise mobility is still staggering to full adoption, but 2013 shows promise as tablet adoption and shipping is expected to oust laptop sales.
Before we go into the thick of it, employees and businesses agree on one thing. Enterprise apps should function just as well as consumer apps, through elegant design and precise functionality. Just labeling the word, enterprise on the description of an app doesnt cut it.
The second thing to note is the fact that as smartphones and tablets have streamlined into consumer hands, the need for B2B, B2E and B2C mobile relationships is growing every day. From customer support, sale reporting, business planning, strategy meetings, CRM, you name it; enterprises recognize the necessity to augment their business through mobility. The notion of Mobile Business Intelligence isnt new. Its been around for more than a decade. However, until recently, the technology and culture werent yet ready for users to embrace it. In early 2010, few recognized the impact it might have.
However, through the confluence of new technologies (e.g., iPad tablet) and social change, Mobile BI has become mainstreamed. In fact, for some, its the only way they consume Business Intelligence content! In 2012, its impact is now both clear and profound. We see the reach of its impact in various forms.
Now with the benefit of several years of data, there are identifiable trends and an evolution towards a time when Mobile Business Intelligence will simply be Business Intelligence. In this study we explore the many facets of this phenomenon exploring how this market dynamic has evolved and where its likely to head in the future. MIT School of Management Page 18
INDUSTRY PROFILE
OVERVIEW OF THE MOBILE VALUE ADDED SERVICES (MVAS) INDUSTRY
A value-added service (VAS) is a popular telecommunications industry term for non- core services, or in short, all services beyond standard voice calls and fax transmissions. However, it can be used in any service industry, for services available at little or no cost, to promote their primary business. For mobile phones, while technologies like SMS, MMS and data access were historically usually considered value-added services, but in recent years SMS, MMS and data access have more and more become core services, and VAS therefore has beginning to exclude those services.
The Indian telecom industry is one of the fastest growing in the world. This has helped the VAS Industry in India to come out of its infancy. The launch of pocket-friendly Android based Smartphones is helping the cause of VAS services and the launch of 3G is now expected to give the Indian Mobile VAS market a huge boost. The mobile VAS market in India has the potential to generate Rs 55,000 crores by 2015 as reported by PwC.
The mobile VAS market has grown by around 60% year on year. This trend is expected to increase in future, as VAS services will become a major revenue source for telecom operators in India. This becomes critical, as the Average Revenue per User (ARPU) for telecom operators is decreasing despite the overall increase in consumer base. The growth in tier 2-3 cities has helped increase the overall consumer base of mobile services in India but this has created problems of its own. Currently companies working in VAS segment are facing challenges like high cost of VAS, limited availability of content in local language(s) and non-availability of enough high-end mobile phones such as phones in which has Android and windows. These challenges will still not affect the growth of VAS in India due to factors like increase in awareness of VAS, increased subscriber base, introduction of 3G services and increased focus on m-Commerce.
The interesting thing in the Indian telecom market is that the traditional revenue sources for the operators- voice & SMS (Short Message Service) are at rock bottom. The subscriber churn as a result of Mobile Number Portability has also added to the worries of the operators. Operators are betting on Value added services (VAS) as the next big opportunity to sustain and succeed in the market. With MIT School of Management Page 19
the increasing monthly additions in subscribership, Telecom Regulatory Authority of India (TRAI) reports that there are 919.17 million mobile subscribers in India as of December 2012. Considering that the metropolitan and large urban cities have reached a high level of penetration, Tier I & II cities as well as rural towns seem to be next beneficiaries of this technology. Due to this duality, network providers and other industry stakeholders have to provide advanced services to the existing matured users as well as ensure that financial challenged sectors are provided mobile services at affordable costs.
With mobile penetration expected to go up to nearly 100% by 2015, and the advent of 3G, MVAS revenues are expected to grow to approximately Rs. 48,000 crores. The industry is looking at various means to use MVAS as a growth driver and simultaneously as a key differentiator. While today, nonvoice revenues in India only account for about 10% of an operators revenues, the global average for leading MVAS countries is far higher, pegged at approximately 23%. The focus of the industry, so far, has been infotainment MVAS, but there is much discussion around services which have a greater growth potential and are those in the Utility MVAS category.
(2) Application based services which have a level of interactivity, and require the consumer to play an active role such as checking the status of payments, IVR based language training services, etc. (3) Enablement services which include services forming a close substitute of those provided by a physical infrastructure such as a bank or a school. These services usually involve transactions such as person-to-person payments, travel reservations etc.
All the three types of services mentioned above are present in multiple categories. Page 20
Indias current Mobile Value Added Services (MVAS) industry has an estimated size of US$ 2.7 million as per FY2012-13. MVAS industry expected to grow US$ 10.8 million. Services such as governance, education, and commerce constitute only 20-25% of VAS revenues. IAMAI says though the ARPU has declined over the years, per user spent on MVAS has gone up by 28 percent in the last one year. It is now 27 percent of the ARPU.
As of March 2012, there were 48 million mobile Internet users in India. It has been growing at the rate of 17 percent. Affordable mobile devices and cheaper data subscription rates are the main drivers for this rapid growth. Mobile commerce is expected to experience the highest adoption rates and grow at a CAGR of 55.9 percent, followed by the mobile healthcare and education services. Look at Vodafone India that has tied up with mobile VAS company Handygo Technologies to launch IVR based service called Behtar Zindagi for rural India. Vodafone India has more than 70 million mobile subscribers in rural India and mobile VAS is a major focus area. In Q3 2012-13, Vodafone India posted 44 million revenue from messaging services alone against voice revenue of 785 million. Its data revenue was 94 million. An IVR-based offering from Vodafone has the potential to take the Indian mobile VAS to earn Rs 33,280 crore in 2013 from Rs 26,000 in 2012.
60.00% 56% 50.00% 40.00% 36% 30.00% 20.00% 15% 10.00% 0.00% 2009-10 2010-11 2011-12 2012-13 8.60% 9.30% 6.20% 5.20% 32% India's GDP Growth Rate MVAS Growth Rate
As we can see in the figure, Indias GDP growth is declining as well as MVAS growth. It concludes that GDP has some effect on MVAS Industry. MIT School of Management Page 21
2.
GROWTH DRIVERS
The growth in the market will be propelled by operator initiatives, as well as by the macro-economic factors such as the booming Indian economy, increasing user comfort with basic mobility services, personalization of content and devices, affordability of smartphones and 3G penetration.
The key drivers for Utility MVAS include: (1) Government mandate for inclusive growth (2) Increasing mobile phone, and network penetration (3) Need for differentiation among telecom operators and device manufacturers (4) Increasing consumer demand and awareness, even in non-urban areas (5) Business need of service providers such as hospitals and banks (6) Automation due to Information and Communications Technology (ICT).
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MVAS came into existence in year 2000 and that time many key players entered in MVAS value chain for example Airtel, IMImobile, Hutch, Hutch etc. 1G and 2G were launched at that time. Now as the years passed market size of MVAS has grown, Innovative applications and services and 3G, 4G services launched. MVAS has services like graphics/wallpapers, ringtones, games, M-commerce and video TV. After 2009 Markets of MVAS has been emerged and will be emerging in future.
Figure shows how the market is emerging in terms of Phones, Tablets, TV, Networks, Content/Apps, and Cloud Services.
Figure depicts the revenues from different MVAS segments from 2004 2009. MIT School of Management Page 23
Information services/contests and ringtones/graphics/wallpapers dominated the MVAS market with shares of 65% and 24% respectively, followed by games (6%), Music (4%) and video TV (1%) in 2004.
Ringtones/graphics have the highest market share (34%), followed by games (31%). Information services, video TV and music will account for 25%, 8% and 2% respectively in 2009.
In 2011-2013 MVAS has introduced new category which is mobile Apps and mobile websites. In the world of 3G and 4G.
To address the various recommendations by TRAI and to acknowledge the comments by different stakeholders various recommendations are addresses separately in the consultation document. For better understanding of the aspects a similar treatment is meted out to the same here. The final recommendations given by TRAI after taking into account the comments of the various stakeholders are discussed here.
At present there is no uniformity in the licensing conditions of various telecom service providers with regard to provision of Application Services. There is a need for clearly specifying the scope of Application Services which can be applied uniformly across various licenses. 1. The Authority in its recommendations on Growth of Value Added Services and Regulatory Issues dated 13th February 2009, recommended that the license provisions for value added services be made applicable uniformly across all the access service licenses by amending all the access service licenses inserting the following conditions:-
(i) The licensee may provide value added services and or additional facilities in case of any value addition or up gradation that the technology permits subject to intimation about provision of any value added service or additional facility along with details of provision made for lawful interception and monitoring of these services or facilities at least 15 days in advance before the introduction of these services or additional facilities; (ii) Licensee may provide Value added services such as voice mail, audiotex services, video conferencing, videotex, e-mail, Closed User Group (CUG) facilities over its network to the subscribers falling within its Service Area. (iii)Licensee may provide Internet Telephony, Internet Services; Broadband Services including triple play i.e. voice, video & data and IPTV. (iv) Licensee cannot provide Public mobile trunking service (PMRTS), closed users group domestic 64 kbps data network via INSAT satellites system and GMPCS which require a separate license. (v) All revenue earned by Licensee through these services mentioned in para (i), (ii) and (iii) above shall be counted towards the revenue for the purpose of paying license fee.
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The Authority recommends that following provisions for application services should be included in the terms and conditions of existing licenses as well as in the proposed licenses under unified licensing regime:
(i) The licensee may provide application services and additional facilities in case of any value addition or up gradation that the technology permits subject to intimation to the licensor and TRAI about provision of any application services or additional facility along with details of provision made for lawful interception and monitoring of these services or facilities at least 15 days in advance before the introduction of these services or additional facilities; (ii) The Licensee cannot provide any other application service which otherwise requires a separate license.
(i) For allocation of Short codes to telecom service providers/licensees and licensed application service providers/content providers, a Short Code Council (SCC) will be set up by TRAI. (ii) Short codes will be allotted centrally through an online web based system in accordance with the National Numbering Plan. Short codes will be allotted to both ASPs and TSPs independently. (iii)Short Code Council will also centrally manage the details of short codes allotted, type of service provided under short code, tariff for the service and hosting details for application services, which can be used by customers for discovering the services interactively. (iv) Application service provider can launch the service only after online approval by the SCC. If the ASP/TSP/content provider wishes at a later date to run a new, modified or additional application/content on the same short code, TSP/ASP/ content provider shall update the same online for obtaining revised approval. (v) Appropriate fee, one time and recurring charges, should be charged for allocation of common short code by Short code Council so that only the genuine and serious content provider/ application service provider/entity should seek the same.
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(vi) The service through allocated short code should be made operational within three months of allocation and intimated online about the date of operationalization of the common short code by the concerned Application Service Provider/ entity/telecom access service provider. If no such information is updated online within three months by TSP/ASP/content provider for declaring the service operational, it shall be presumed that the common short code has not been made operational and non-utilization of short code for a period of more than three months will be subject to cancellation of short code and reallocation to other applicants. (vii) Telecom service providers should open the common short code within a fortnight
after the code is approved by the Short Code Council and update this information online with Short Code Council. The orders/ directions/ regulations of DoT or TRAI, from time to time, as the case may be, shall be applicable in this regard.
3. The Authority recommends that for spreading awareness regarding utility application services in rural and remote areas, awareness campaign for NeGP initiated by Department of Information Technology (DIT) should be utilized. (para 2.75)
4. The Authority recommends that development of application services in Indian regional languages should be encouraged through suitable incentives.
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PRESENT SCENARIO
STATE OF THE INDUSTRY
Overall Mobile User Base in India
There are 929 million mobile subscribers in India, with about 597 million urban subscribers and 332 million rural subscribers according to TRAIs press release, dated May 31, 2012. According to the same report, the overall wireless teledensity is about 76%. According to a TRAI report in October 2011, only 71% of the overall subscribers were active. Further according to a report by GSMA, 3G connections are expected to grow more than 100 million by 2014, and India will be the second largest global mobile broadband market. A large portion of this access to broadband is expected to happen through mobiles. Suffice to say that India has leapfrogged from being almost a no-phone nation with minuscule penetration to a mobile nation with nearly a billion subscribers in a country of 1.2 billion people. According to market estimates from AC Nielsen, there are about 27 million smartphone users in urban India and still growing.
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This study will help in benchmarking the present state of awareness, use and purpose of use of mobile platform for customer engagement. Also it will help platforms providers to recognize the current state of the industry and future potential.
Thus far, the mobile industry has focused on aggregating numbers for mobile usage. While Mobile Value Added Services (MVAS) provided consumers with information, entertainment and utility services and generated incremental revenues for operators, the time is now ripe to move beyond MVAS and focus on enterprise adoption of mobile technologies for greater business productivity.
A robust and proven mobile data services platform that can act as a bridge between operators and enterprises is needed. Such a platform can drive enterprise adoption of mobiles and open up new revenue streams for operators.
This study is aimed to understand the current state of mobile engagement platform awareness and adoption in real estate and hospitality industry in Pune.
This study hopes to be a bellwether for the industry, facilitating on one hand, platform providers to recognize the state of the industry, and enterprises to realize the mobility tools available at their disposal for meeting their immediate and latent needs on the other.
The highlight of this report is a sector wise analysis of the state of the mobile platform awareness and adoption. I hope the findings of this study will be useful to all those who are concerned and connected with this company and with the Indian mobile industry.
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TELECOM SECTOR
SECTOR PROFILE
One of the worlds most progressive telecom markets- the Indian telecom industry has seen massive investment by both private and government sectors in the previous decade. The success story and the potential have attached newer players on the canvas due to which the intensity of competition has paced up between domestic and foreign players, which as a result, has benefitted the end user. Increasing network coverage and competitive tariffs- these are the two most prominent catalysts that are contributing to the growth of the Indian Telecom Sector. Mobile telephony continues to fuel growth in the Indian telecom sector with mobile subscriber base projected to grow at a CAGR of around 6.6% during 2011-12 to 2014-15, according to RNCOS new research report Indian Telecom Analysis (2008-2012).
WIRELESS
The wireless subscriber base was 867.08 million as on 31st March 2013 in comparison to the subscriber base of 919.17 million as on 31st March 2012. It reduced 52.09 million subscribers in the financial year 2012-13 registering an annual fall in growth rate of about -5.5%. The total subscriber base of wireless services has grown from 165.11 million in March, 2007 to 867.08 million in March, 2013.
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Number of subscribers
1000 900 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 165.11 261.07 391.76 584.32 Number of subscribers 811.59 919.17 867.8
Number of subscribers
45 40 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 Number of subscribers 40.73 38.42 37.36 36.96 34.73 32.17
30.21
TELEDENSITY
The Tele-density at the end of April, 2013 reached the mark of 73.16 as compared to 78.66 at the end of previous year recording a decrease of nearly 5.50.
Teledensity
90 80 70 60 50 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 18.23 26.22 36.98 52.74 Teledensity 70.89 78.66 73.16
INTERNET SUBSCRIBERS
The Internet subscriber base in the country as on 31st March 2013 stood at 164.81 million. Subscribers who accessed internet through wireless phone are about 143.20 Million. Total narrowband and broadband subscribers (excluding subscribers who accessed internet through
wireless phones) is 21.61 million as compared to 22.86 million as on 31st March 2012, registering a fall in annual growth rate of about -5.78%. The total broadband subscriber base has reached 15.05 million as on 31st March 2013 as compared to 13.81 million as on 31st March 2012 thereby registering a net addition of 1.24 million broadband subscribers during the financial year 2012-13 with growth of -8.23%.
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The Internet Subscriber base consisting of narrowband (<256 Kbps) and broadband (> 256 Kbps) for the last six years is depicted in Figure.
25 22.86 21.61 20 16.18 15 11.1 10 6.93 5 2.34 0 2007 2008 2009 2010 2011 2012 2013 9.27 7.23 3.87 7.32 6.22 8.77 7.41 13.54 11.89 9.05 7.78 6.56 13.81 Narrow Band Broadband Total 19.67
15.05
KEY STATISTICS
REVENUE
The Total Revenue of the Telecom Service Sector went up from Rs.1,95,442 crore in 2011-12 to Rs. 1,22,000 crore in 2012-13 indicating a decrease of -37.57%. Gross revenue during the previous quarter (or the QE Mar-13) was Rs. 54283.78 Crore. And adjusted Gross Revenue (AGR) during the quarter was Rs. 35279.50 Crores.
MAJOR PLAYERS
In terms of subscriber base and market share of GSM services, M/s Bharti with 181.28 million subscriber base remains the largest followed by M/s Vodafone, M/s Idea/Spice, and M/s Reliance with subscriber base of 150.47 million, 112.72 million and 96.99 million respectively. The market Share of various GSM operators as on 31st March 2013 is given in this figure. MIT School of Management Page 35
23 15.7
Figure: Market Share (%) of GSM Operators (as on 31St March 2013)
In Cellular CDMA Services, in terms of subscriber base and market share, M/s Reliance with 56.06 million subscriber base remains the largest CDMA operator followed by M/s Tata and M/s Sistema with subscriber base of 28.97 million, and 15.80 million respectively. The market share of different CDMA operators as on 31st March 2013 is given in this figure.
27.56
53.33
Figure: Market Share (%) of CDMA Operators (as on 31St March 2013)
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MARKET DYNAMICS
The Indian mobile phone market is highly competitive with more than 150 device manufacturers trying to woo the consumers with their offerings. Most of these producers focus their efforts on the low-cost feature phone market, which constitutes over 91 per cent of overall mobile phone sales, offering a huge scope for growth.
"India will add more Internet users than any country in the world over the next three years, as average penetration rises from 10 per cent to 28 per cent," as per McKinsey and Co report. Besides, with increased Internet penetration, 22 million jobs would be created by 2015.
The number of mobile banking transactions in India doubled to 5.6 million worth US$ 114.72 million in January 2013 from 2.8 million transactions worth US$ 35.06 million in January 2012.
For years 2006, 2007, 2008, 2009, 2010, 2011, and 2012, the industry was said to have contributed 1.91, 2.31, 2.92, 3.66, 4.56, 5.67 and 7.05 per cent, respectively to the GDP.
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M-COMMERCE
M-Commerce services consists of payments, banking, and retail transactions over the mobile phone such as person-to-person payments, bill payments etc. Internationally, M-PESA in Kenya is a great success story where remittance services offered by Vodafone and Safaricom are being utilized by approximately 27% of the population, monthly transactions are over $375 Mn. and users save up to $3 per transaction. In India, players such as Spice, Oxicash, MChek, NGPay, ICICIs iMobile are already offering some services in this area but these are mostly restricted to information services, and some basic applications such as bill payments to select billers. However, there is plenty of activity evolving in this area in India, on the regulatory and industry front. The RBI is contemplating regulations to promote M-Commerce, without compromising on security, and also devising a payments infrastructure to enable delivery of banking services to a larger section of society with the help of the National Payments Corporation of India (NPCI). Thus, M-Commerce has the potential to promote financial inclusion and foster economic growth for large sections of the Indian society, if all key stakeholders work together effectively.
M-EDUCATION
M-Education services consists of training and learning related content, both in the sphere of formal education and non-formal and vocational training through mobile applications using SMS, WAP, USSD etc. While most companies in India are largely focused on corporate learning or providing examination alerts for major public examinations, there is tremendous scope for services such as language training (text, audio, and interactive), mobile reading, broader adult literacy and vocational training on specific subjects. In India, Spice, EnableM, Deltics, GCube Solutions, Tata DoCoMo are some of the players in this area. Some countries such as South Africa have also adopted the mobile phone as an integral part of the education system as it provides a platform to support and enable the curriculum, providing self-tutorials, and interactive tutorials to children in subjects such as Maths MIT School of Management Page 38
(for example, the Dr. Math initiative in South Africa, launched on a social networking platform called MXit has seen tremendous popularity with the South African teenage population). In India, education is an area where the Government can take an initiative to put together a large scale mobile education program, and private players can also look at potential areas of key consumer need, especially in non-formal and adult education in order to harness the potential of M-Education in the country.
M-HEALTH
M-Health is the services which use mobile devices to deliver health solutions such as health alerts, updates, and patient monitoring systems. M-Health is in a very nascent stage in India today but some of the healthcare service providers and telcos such as AIIMS, Maestros Mediline Systems, Apollo Hospitals, Aircel see a tremendous opportunity in the use of mobile applications for service delivery as powerful applications can help to increase productivity and efficiency of their staff members, and also increase their ability to reach patients. For example, an initiative being undertaken on a small scale currently is teleradiology which enables physicians to view high resolution X-Ray reports on their smart phone screens and instantly send back reports. This is an example of a relatively advanced application based service. Even simpler services such as information based services which spread education and awareness around chronic diseases using simple IVR or SMS technology have been found to be tremendously effective in countries such as South Africa (for AIDS), Mexico (for heart disease). Governments such as the UAE government have a Health Authority which focuses on using technology to collect data, send out reports, and provide instructions and health guides to all citizens. As public health is a key development indicator for the Indian government, it could also similarly look at an overarching M-Health initiative.
M-GOVERNANCE
M-Governance is the services which involve the strategy and utilization of all kinds of wireless and mobile technology services, applications, and devices for improving the delivery of effective government services for all citizens. In India, Bihar and Kerala are pioneers in the field of MGovernance. The Bihar Government is using an SMS based system to monitor performance of various schemes across districts. Kerala is planning to use mobile technology as an enhancement to its existing e-Governance platforms. Other governments such as Goa are also planning to deploy MMIT School of Management Page 39
Governance services. Globally, governments in countries such as China, Dubai, Hong Kong, Singapore, and Malaysia have deployed M-Governance services from basic information based services such as natural disaster alerts to enabling polls through mobile phones. There are many global examples of effective M-Governance services and India can draw from these examples to devise an always-on governance system, which has the ability to connect and provide services to all citizens more effectively, efficiently, and on a real time basis. Thus, there is plenty of scope to develop and deploy Utility MVAS services in the country.
Figure depicts the share of different categories which comes under MVAS.
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MOBILE VAS MAKET POTENTIAL (INR BN) & ITS SHARE OF TELECOM REVENUE
CRBT will decline in revenue contribution due to poor per unit economics for carriers and end user affordability.
SMS penetration is expected to stabilize at the current levels due to consumer behaviour and literacy issues unless local language can be introduced
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Growth is driven primarily by a forecasted 534 mn data users in 2015 across 2.5G, 3G and 4G, contributing 54% of total mobile VAS revenue.
Opportunities
Experts claim that Mobile ramping would be faster than desktop Internet and bigger than what most think. The five trends converging would be 3G, Social Networking, VoIP, Video and Impressive Mobile Devices.
Amongst the major MVAS services, Communication VAS services comprising of SMS, Video Calls, MMS and Email is expected to cross Rs 20,000 crores by 2015 with a majority contribution by SMS. Information VAS services comprising news and alert based services are expected to cross Rs 7,900 crores by 2015. Entertainment VAS services comprising of Caller Tunes among other things are expected to be the most profitable VAS segment and are expected to reach Rs 25,000 crores by 2015. Multilingual content, application support around languages, killer applications and readiness of handsets will drive this growth.
Among the factors that will affect future growth, is rising demand for regional and multi-lingual content; medical advice VAS; video calling and m-commerce leaving a large scope of growth. Online gaming on mobile is expected to be a favourite among students. Growing Subscriber base. Evolving VAS users Availability of Smart phones. Innovative offerings. 3G rollout.
Challenges
The adoption rates are expected to remain low for m-commerce. SMS as a percentage of mobile VAS revenue is expected to decline to around 25% by 2015 from current levels of around 60% according to PwC Regional Entertainment based VAS services are expected to be in big demand and localization and multi-lingual capabilities require more focus Revenue Sharing. Consumer education and awareness. Devices and Technology. Dominance of prepaid subscribers Page 43
This is one of the reasons enterprise app adoption has stayed at medium levels at best. One crucial argument is the fact that level of individualization or customization cant be met by generic app store apps, which dont take target specific and unique enterprise needs. Currently in Q1 2013, enterprise mobility solutions are fragmented and enterprises are looking for a holistic answer to fit unique needs. But things arent so bleak as they seem, for one major trend in 2013, is an increased awareness and use of PaaS - which will enable non IT enterprise personnel to more effectively manage and build apps for both employees and executives.
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The second trend affecting enterprise mobile apps adoption will be enterprises setting up their own private app stores that will provide better security, app control and increased agility in solving issues or achieving business objectives. When looking at needs were also seeing the benefits they expect of enterprise mobile apps. A key note that enterprise apps need to deliver is improved communications and efficiency to create tangible business value. Generic apps that arent tailored to this idea will fail to help companies in securing a competitive advantage and pioneer new ways of doing business.
Weve seen the needs; now lets see one effective solution that has changed the business culture by redefining the B2E relationship, namely the BYOD approach. BYOD, or bring your own device, basically means encouraging employees to bring their own devices, in this case smartphones and tablets in the workplace. Coupled with enterprise apps, BYOD strategies have proven to be an effective tool in fulfilling real enterprise needs and goals.
In a survey by Dell Quest Software, 56% of enterprise respondents said that BYOD had effectively changed their business culture and organization. One of the key advantages of BYOD is that instead Page 45
of investing in the (costly) purchase of new hardware and devices, companies can leverage the very tools employees bring to the workplace. Namely, smartphones and tablets.
Coupled with effective MDM (mobile device management), BYOD strategies working side by side with objective-tailored enterprise apps lead not only to reduced costs, but it changes the face of how employees interact and work within companies themselves. Imagine a situation where a company doesnt have to enforce a device-centric approach and can take advantage of multiple mobile platforms to improve efficiency, business agility and be at a competitive advantage. Instead of investing in devices, companies should focus on investing in getting the apps and data to the mobile devices already present to their own employees and execs. As Dell Software Group CIO Carol Fawcett stated: We found this approach allowed us to be much more strategic and enabled us to focus on our biggest BYOD problems; security, access rights and data leakage. The results of this latest BYOD survey reinforce the importance of putting users first in order to develop the most effective policies and turn BYOD into a long-term, sustainable business benefit.
Over the next five years, 65 percent of enterprises will adopt a mobile device management (MDM) solution for their corporate liable users, according to Gartner, Inc. With the increased functionality of smartphones, and the increasing popularity of tablets, much of the network traffic and corporate data that was once the primary domain of enterprise PCs is now being shifted to mobile devices. "The era of the PC has ended. Employees are becoming more mobile and looking for ways to still be connected wherever work needs to be done," said Phil Redman, research vice president at Gartner. "The convenience and productivity gains that mobile devices bring are too tempting for most companies and their employees. Securing corporate data on mobile devices is a big challenge, but one that companies must embrace. Enterprises are struggling with how to support and secure this dynamic workforce." CONCLUSION AND RECAP - Its a buyers market as they say for enterprise apps. The need and demand is there, the benefits and competitive advantages are rich and enterprises are looking for ways to augment their businesses. 2013 promises big leaps in the proliferation of better hardware especially tablets which are more used in enterprises than smartphones which, coupled with the awareness of PaaS and BYOD integration, enterprise app adoption can grow to a greater key strategic differentiator in enterprise mobility. MIT School of Management Page 46
However, in spite of the growth prospects, businesses are facing challenges around platform integration and mobile fragmentation which hinder the quick adoption of effective mobile enterprise strategies. These challenges bring forward the pressing need of skilled mobile application developers and innovative solutions that can cater to the needs of the mobile enterprise market. The increased demand for mobile engineers, which affects large companies and fast-growing start-ups alike, is emerging as a key bottleneck as companies struggle to capitalize on the fast growth of smartphones and other mobile devices.
Early this year Google announced its plans to hire top mobile application development talent while recruiters reported a record demand for mobile engineers with vacancies for Android developers rocketing by 424% in the space of a year. As enterprises are increasingly looking to take advantage of enterprise mobility, it becomes clear that most of the companies are not prepared to deal with the challenges on their own.
Mobile computing is fundamentally different from traditional enterprise computing models and enterprises need to adopt solutions and business strategies which are specifically tailored to the mobile platform.
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"While it won't be easy, to do this successfully, consider four main steps that could make the process a little more organized and mitigate some of the potential risks and pitfalls," Crompton wrote. "The steps include: choosing a partner, building a strategy, creating use-case scenarios, and building a roadmap for deployment."
Enterprise mobility solutions have changed the way that organizations use their communications system and how workers approach their jobs. With more remote work opportunities and custom business applications, companies can better utilize personal devices for overall success.
occasional custom mobile app. It is time to take the next step. A new generation of mobile technologies is helping enterprises to reimagine entire business processes from a mobile-centric standpoint. This movement is starting to be known in the industry as the mobile-first enterprise.
This is an attractive concept for most organizations. But, building the mobile-first enterprise is far from an easy endeavour. Based on our experience, this type of transformational movement is a longterm process that requires various foundational components from both the technological and organizational standpoint.
What are the elements that can help to enable the mobile-first enterprise? Some of the ideas listed below might help.
However, most organizations are still building the required security, management and compliance infrastructure to enable a BYOD environment. To evolve, organizations must realize that BYOD by itself is just a starting point to build the mobile-first enterprise. Not the end result.
Enabling mobile-first enterprise applications and business processes that access corporate data from personal devices in a secure and efficient manner is the true end goal of the mobile-first enterprise.
Beyond MDM
Mobile Device Management (MDM) has been at the centre of the first generation of enterprise mobile. The ability to manage and secure smartphones/tablets has been seen as a key element of any enterprise mobile infrastructure. Consequently, in recent years, the market is experiencing an explosion on the number of MDM technologies claiming to be the silver bullet to enable an enterprise mobile infrastructure.
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Managing connected devices is not enough to implement mobile-first enterprise applications. Expanding beyond MDM and focusing on managing the enterprise mobile applications and the corresponding business data in your infrastructure are, arguably, more relevant capabilities to enable the mobile-first enterprise.
In order to enable a mobile-first enterprise experience, organizations need to build the infrastructure to contextualize business data so that it can be effectively consumed on enterprise mobile applications. While technologically challenging, building the infrastructure to effectively mobilize data from corporate systems can drastically simplify the experience of incrementally building enterprise mobile applications.
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As the adoption of mobile technologies increases in the enterprise, we are starting to witness a new generation of mobile-first business apps that are redefining both horizontal and vertical business capabilities. Enabling the infrastructure to adopt those new mobile business apps in an efficient, secure approach tailored to your enterprise can improve the journey to the mobile-first enterprise.
In Wave 1 enterprises focused on making common internal productivity applications available for mobile users. Personal Information Management (PIM) including email, calendar, and contacts became the killer applications driven mainly by the BlackBerry universe. Much of the enterprise world is still in this wave but moving rapidly forward to the next wave.
The iPhone, iPad, and the Google Android devices ushered in Wave 2. Enterprises realized that they can reach their customers (particularly in the B2C world) by developing user-friendly and rich applications.
In Waves 1 and 2 of the enterprise mobility spectrum, enterprises made their existing applications available in a mobile context and also experimented to see what value would come out of mobility. MIT School of Management Page 51
We are now at the cusp of Wave 3, where some forward-looking enterprises innovate to discover that the greatest value of mobility is in enabling them to be more competitive in their markets so they can gain new customers and improve existing customers satisfaction. The 16 use cases and 6 case studies in the report clearly demonstrate that some companies are innovating their way to a significant competitive advantage.
Sales and marketing field activities Customer support through real-time information Supply chain management Executives on the road
A lot of work these days is not tied to a desk or a desktop computer. Work also takes place in meetings, HR training sessions, collaborative team sessions, and lunch with customers. Its obvious that these employees need instant access to the most important company data, presentations, and documents to be effective.
This hypothesis was validated by our survey results. When asked What was your companys most important reason for moving to enterprise mobility solutions? (Select all that apply), the majority of the online survey respondents said it was faster access to company data followed by improved collaboration among employees.
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Unlike other enterprise technologies, driven by the IT group, employees are driving the pace of mobile adoption, wanting the same user-friendly computing at work that they enjoy outside of work. Importantly, our interviewees stated that a sizeable number of these employees are actually top executives. They were immediately attracted to the competitive benefits of iPads when they were first launched into the market.
Our online survey respondents also indicated that senior executive roles heads of business units and executive management are driving the use of mobile solutions in their companies. Study interviewees shared these examples: When a financial services companys competitor showed up with an iPad at a mutual clients office, the financial executives reaction was that he had to have an iPad in order to compete. When an airline pilot heard that another airline replaced paper flight plans with iPads in order to cut down on paper and increase efficiency, he looked into how to do the same thing at his company. At the U.S. Open, a bank used mobile devices to demonstrate the banks new deposit system to people waiting in line. MIT School of Management Page 53
Survey respondents identified functional areas in their company that currently use mobile devices the most. Almost half identified sales / sales support and information technology as the top areas. By far, corporate email, contacts, and calendar are the most available enterprise applications/services used in the survey participants companies. This indicates that many enterprises are still in Wave 1 of the enterprise mobility adoption spectrum.
Executives identified three areas among the other areas where mobile devices are most used in respondents companies: inpatient care, service delivery and management personnel for approvals and across disciplines.
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SUMMARY
Based on the sector profile of telecom sector, sector size and growth trends, key statistics like revenue, market dynamics, contribution of telecom sector towards GDP we can conclude that there is great scope for the growth of companies like IMImobile and various other such companies that provide enterprise mobile solutions. There is hope that if enterprises are made aware of how they can leverage the mobile platform, they would adopt the same readily.
Literature review also brought to our notice the significance and need of mobile value added services. Current needs of our country in this regard are m-commerce, m-education, m-health, mgovernance. Also we learnt the various services included in MVAS, mobile VAS market potential, its share in telecom revenue, opportunities and challenges faced by it.
Analysts forecast the Global Mobile VAS market to grow at a CAGR of 10.67 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing adoption of smartphones and tablets. The Global Mobile VAS market has also been witnessing an increasing adoption of m-Commerce. However, the lack of awareness among mobile VAS users could pose a challenge to the growth of this market.
Report on enterprise mobile apps showed that one of the reasons enterprise app adoption has stayed at medium levels is the fact that level of individualization or customization cant be met by generic app store apps, which dont take target specific and unique enterprise needs. Currently enterprise mobility solutions are fragmented and enterprises are looking for a holistic answer to fit unique needs.
We saw that one effective solution that has changed the business culture by redefining the B2E relationship is the BYOD approach. Coupled with enterprise apps, BYOD strategies have proven to be an effective tool in fulfilling real enterprise needs and goals.
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Over the next five years, 65 percent of enterprises will adopt a mobile device management (MDM) solution for their corporate liable users. Much of the network traffic and corporate data that was once the primary domain of enterprise PCs is now being shifted to mobile devices. Its a buyers market as they say for enterprise apps. The need and demand is there, the benefits and competitive advantages are rich and enterprises are looking for ways to augment their businesses. 2013 promises big leaps in the proliferation of better hardware especially tablets which are more used in enterprises than smartphones which, coupled with the awareness of PaaS and BYOD integration, enterprise app adoption can grow to a greater key strategic differentiator in enterprise mobility.
In spite of the growth prospects, businesses are facing challenges around platform integration and mobile fragmentation which hinder the quick adoption of effective mobile enterprise strategies. These challenges bring forward the pressing need of skilled mobile application developers and innovative solutions that can cater to the needs of the mobile enterprise market.
Enterprise mobility has evolved from being a fancy requirement to become one of the top priorities of most organizations. Enterprises are starting to create new business processes to enable new business capabilities using a mobile-first paradigm. Mobile point-of-sale (POS) or mobile customer relationship management (CRM) systems are some of the best examples of mobile-first business processes being enabled in todays enterprises.
It is important for organizations to invest in the infrastructure required to adopt domain-specific mobile business apps available in the marketplace. As the adoption of mobile technologies increases in the enterprise, we are starting to witness a new generation of mobile-first business apps that are redefining both horizontal and vertical business capabilities.
The how of enterprise mobility adoption showed how enterprise mobility adoption evolved over the last 10 years. Enterprises realized that they can reach their customers (particularly in the B2C world) MIT School of Management Page 56
by developing user-friendly and rich applications. Enterprises made their existing applications available in a mobile context and also experimented to see what value would come out of mobility. Now some forward-looking enterprises innovate to discover that the greatest value of mobility is in enabling them to be more competitive in their markets so they can gain new customers and improve existing customers satisfaction. The why of enterprise mobility adoption showed why enterprises are adopting mobility. Most enterprises now operate in a 24/7 global environment and depend on mobility as key to timely, effective communications in such areas as sales and marketing field activities, customer support through real-time information, supply chain management, executives on the road. By survey results, most important reason was faster access to company data followed by improved collaboration among employees. The who of enterprise mobility adoption showed who is driving the adoption of mobility within the enterprise. Employees are driving the pace of mobile adoption, wanting the same user-friendly computing at work that they enjoy outside of work. A sizeable number of these employees are actually top executives. Online survey respondents indicated that senior executive roles heads of business units and executive management are driving the use of mobile solutions in their companies. The what of enterprise mobility adoption showed what applications and functional areas are adopting mobility in the enterprise. Survey respondents identified sales / sales support and information technology as the top areas. By far, corporate email, contacts, and calendar are the most available enterprise applications/services used. Other areas where mobile devices are most used: inpatient care, service delivery and management personnel for approvals and across disciplines.
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To understand the present state of adoption of mobile platform by enterprises to engage with various stakeholders
To conduct a study that can provide a holistic picture combined with detailed analysis of the adoption of mobile technologies by enterprises. To help platforms providers to recognize the current state of the industry and future potential.
Based on the findings, MVAS providers, that provided consumers with information, entertainment and utility services and generated incremental revenues for operators, can move beyond MVAS and focus on enterprise adoption of mobile technologies for greater business productivity.
Knowledge gained from the research can enable the development of a robust and proven mobile data services platform that can act as a bridge between operators and enterprises.
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A robust and proven mobile data services platform can drive enterprise adoption of mobiles and can open new revenue streams for operators.
This study can be a bellwether for the industry, facilitating on one hand, platform providers to recognize the state of the industry, and enterprises to realize the mobility tools available at their disposal for meeting their immediate and latent needs on the other.
Findings of this report can be useful to all those who are concerned and connected with the Indian mobile Industry.
The study was conducted mostly on small medium enterprises (SMEs) and small offices home offices (SOHOs)
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RESEARCH APPROACH
The approach is that of a mixed research i.e., qualitative and quantitative research.
Deductive Reasoning
The chosen data source is primary data and secondary data. For primary data gathering method is survey.
A mailed questionnaire/telephonic interview is conducted of 200 people over 2 months during cold calling and emailing to promote the companys services.
This method was adopted due to nature of the job which was as follows:
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START
SELECT A SECTOR
INFORMATION SEARCH
NO
IF LEAD IS INTERESED
YES
STOP NO
ASK TO SEND A MAIL
YES
STOP
YES
YES
SOLVE IT OR ASK WITH TRAINNER IF SOLVED
IF ANY QUERIES
NO
STOP
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But the prime focus is on small medium enterprises (SMEs) and small offices and home offices (SOHOs)
Practical consideration in determining sample size is used and the sample size decided upon is 200. This is because the time period is two months and the lead generation target through cold calling and emailing is given by the company as 200 prospective enterprises.
Stratified Random sampling - A probability sampling technique in which the population is divided into different sub-homogeneous groups or strata and samples are randomly selected from such sub-groups or strata.
Data collection method adopted for primary data source is mailed questionnaire/telephonic interview.
Secondary source of data are the reports by various research organizations as well as a joint study on Mobile Platform Adoption by Enterprises by Internet and Mobile Association of India (IAMAI) and IMImobile.
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STATE OF AWARENESS
Level of Awareness of Services, Expectation from Services
After observing this data of business users and correlating it with web analytics, it is seen that search engines like Google, Yahoo and Bing are the most prevalent way of discovering m-Engagement platforms, followed by traditional phone call based lead generation, promotional E-mails and SMS finally through customer references.
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50%
40%
30%
Online Ads
Received Email
17% 11% 10%
20%
10%
6%
Others
0%
The figures show the relative distribution of means through which users discovered the mEngagement platform, during the duration of the study. It is observed that proportion of users discovering these platforms through references has continuously increased, indicating a chain adoption in the industry. When one business adopts it, other businesses have been observed to adopt it in a similar manner. Adoption is highest through references across functions within the same business. In the SME segment, previously it was observed that businesses preferred calling into a call centre and talking with a live agent for gaining confidence in the platform before deciding to use it. However, it is now observed that self-discovery through internet is a sustainable means of platform discovery.
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Search Engine Phone Call Reference Received SMS Online Ads Received Email Call Centre Conference Promotion Card Friend
3% 2% 1% 1% 2%
Search Engine Phone Call Reference Received SMS Online Ads Received Email Call Centre Conference Promotion Card Others
10% 6% 6% 1% 1% 1% 2%
Search Engine Phone Call Reference Received SMS Online Ads Received Email Call Centre Conference Promotion Card Others
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Additionally, increasing number of users are discovering m-Engagement platforms through online search on their mobile devices. Feedback from m-Engagement platform users conveys a strong requirement from the market for not only discovering but also accessing such m-Engagement Platforms from mobile devices.
STATE OF ADOPTION
Expectation from Platform Providers
Businesses per se want platform providers who will satisfy important conditions of vendor viability They require financially sound suppliers who have stable long term plans and platform roadmaps. Such m-Engagement platform providers must have a successful working relationship with operators, MIT School of Management Page 69
own their intellectual properties and have a history of complying with SLAs. Point vendors can only provide restricted number of services. However, customers with evolving needs would require the use of more than one channel to engage with their customers. Services across channels and across resources must be available at a one-stop shop to continuously cater to their needs without having to switch service providers. Consequently, providers who fulfil these expectations will find greater traction for their platforms.
Mobile adoption amongst Enterprises and SMEs in India is still at a nascent stage, predominantly for promotions, transaction alerts and communication using Inbound Messaging Services. As businesses benefit more and more from existing services, they use more evolved services to increase reach or to obtain greater lead conversion. For instance, a simple text broadcast evolves into a Voice message broadcast, which supports better local and rural reach.
While this is so, telecom providers are allowing traffic on their network such as text messaging, voice and interactive messaging. However, network intelligence and CRM data remain untapped. Highest levels of benefits for enterprises can be leveraged from these assets. Operators can monetize these assets for increasing their Business ARPU. Such usage of their assets is expected to be more beneficial for enterprises and businesses.
In the past, SMBs and SMEs were unable to discover these services first due to lack of awareness and then were unable to use them due to lack of infrastructure such as connectivity. So, adoption was happening only in Tier-1 cities. Moreover, business functions like Marketing, HR, Sales, etc. within an organization were dependent on IT teams for any technology requirements. Exacerbating this situation was that there was a dearth of useful information on the appropriate m-Engagement platforms available or on how they could be leveraged by SMEs and Enterprises.
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m-Innovation network partners are expected to champion these platforms geographically and across different business verticals. Increasing internet penetration and cloud services bring these platforms within the ambit of these businesses, hitherto uninitiated to mobile engagement services. Self-serve platforms render these services simple to use for actual users in various business functions and eliminate the need for the dependency on IT teams and developers. From a platform providers perspective, enterprises and SMEs are discovering the power of mobile data services to engage better with their customers and employees. Exposing Mobility as a Service allows enterprises to use bearer channels like SMS, USSD, Voice, and Data in innovative ways, though application logic to build engaging means to reach and interact with the mobile users. In fact, m-Engagement has shown to bring a clear advantage to enterprises and SMEs, such as increased lead conversion, increased customer satisfaction, increased employee engagement, leading to higher revenues and profitability. While messaging services are highly adopted, enterprises are exploring other channels such as Voice, USSD, Data, etc. as well as a combination of these channels to find interesting ways to engage with customers.
STATE OF USE
The use of m-Engagement services is increasing. Consumption is evolving visavis a year ago. The NCPR regulations from TRai affected broadcast messaging in the short term. Businesses dicovered innovative ways such as encouraging end-users to subscribe to permission based marketing. A marked increase is observed in the use of m-Engagement services through APIs. Application Developers and BFSI continue to be the largest consumers, as individual verticals, for API adoption.
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BFSI Software Development Media & Entertainment Education Marketing Services FMCG Travel & Hospitality
IT - Ecommerce
HR Logistics Construction & Real Estate Others
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BFSI Software Development Media & Entertainment Education Marketing Services FMCG Travel & Hospitality IT - Ecommerce HR Healthcare Others
10%
8% 5% 5% 5%
7% 3% 3%
5%
2% 2% 2% 2%
1%
Hyderabad NCR Mumbai Bangalore Chennai Surat Pune Kolkata Jaipur Aurangabad Ahmedabad Chandigarh Kanpur Hubli Others Page 76
0%
The number of new registrations is seen to be the highest from Hyderabad followed by Mumbai and NCR. However, the number of registrations, apart from metros and Tier-1 cities has been found to be more than a third from other smaller cities. The explosion pie chart shows a further breakdown of others category into the next 10 largest cities by number of new registrations. Note that these 10 cities only represent less than 30% of new users. Clearly, a lot of users are known to be small local businesses.
The Short Code hits (in %) indicates the number of short code hits coming in from a circle vis-a-vis the total number of hits coming in from all circles for nation-wide promotional campaigns. On the other hand, the per capita hits indicate the ratio of the number of hits to the number of subscribers in that circle, indicating the percentage of the subscriber population engaging in such services. As enterprises plan their customer communication strategies, these data points indicating the propensity of consumers to respond to mobile engagement services feed into their strategy. For places where promoting through inbound messaging is high, the return on investment will be high. As businesses figure out their communication mix, they can factor these regional variations into consideration.
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EVOLUTION OF USE
Permission Based Marketing as a growing means of targeted marketing
It is a given that businesses need a well-defined target audience to promote their products to. In the past, before NCPR regulations came into effect, marketers broadcasted promotional messages to a wide untargeted audience. However, post NCPR regulations, marketers can only send such messaged to those customers who are not in NCPR list. However, amongst such subscribers, some voluntarily opt to receive such messages from specific businesses. Customers, through such permission based marketing, have self-selected themselves into a qualified target audience. Marketing managers can target this audience for higher lead conversions.
Subscribers are no longer bombarded with unsolicited messages, but only relevant and meaningful information chosen by them. The new regulation has accorded subscribers with the freedom to choose what they opt-into. This increases their engagement and response levels to enterprise communication.
SaaS based solutions will help the mobile applications market thrive regardless
of the tough economic environment due to lower upfront costs and rapid ROI potential.
consistent pricing policies for mobile applications remains a key issue. Price remains a critical
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The increased use of mobile devices has led some organizations to undertake a corporate mobile strategy and reap the benefits of mobility. There are 3 key considerations to establishing corporate mobility: establishing an application development approach, taking advantages of all benefits of mobile devices, and reinforcing mobile security. As a result, the mobile platform should be: monitored and managed centrally, highly automated, device ubiquitous, integrated within the pre-existing corporate infrastructure, scalable, and secure.
Such an initiative is certainly worth the effort, as it enhances return on investment (ROI) by providing more confidence to mobile users, increasing performance from a management and user point of view, and encouraging the use of mobile best practices. With the increased use of mobile technologies in the workplace, establishing a corporate mobile strategy may soon not be an option, but a necessityand organizations that are prepared for it will be well on their way to having a workforce that is mobile, and can work from anywhere, anytime.
Our study reveals that enterprises are increasingly adopting mobile data service platforms to engage better with their employees and end-customers.
The report emphasizes that businesses need a holistic and well-coordinated strategy for mEngagement which complements their other marketing medium. In the past, mobile data services platforms had largely focused on messaging as the means of engagement. We notice that as businesses benefit more and more from existing services, they will use more evolved services to increase reach or to obtain greater lead conversion. Therefore a robust and proven mobile data services platform that can act as a bridge between operators and enterprises is needed. These mEngagement platforms expose mobility as a service that can be used by enterprises and SMEs (Small and Medium Enterprises) for reaching out to their employees and their end-customers. At the same time, telecom operators and platform providers are joining hands to provide such platforms where businesses can create enterprise-grade mobility services to reach their end-customers. Such SelfMIT School of Management Page 82
Serve platforms allow users in various business functions to configure and setup their own mobile engagement services thus eliminating the dependency on external vendors, or the need for long-lead, expensive internal IT projects. These Self-Serve platforms also provide businesses the flexibility to modify their live services based on the usage and engagement with end customers.
RECOMMENDATIONS
Less Relevant is the one of the major factor which stops enterprises from availing these services. So, promotions should be designed in such a way that the enterprise find value in it and hence avail it. If the company wants to increase revenue from the existing services, then it should give more customized services. Promotional calls, e-mails should be more encouraged to make enterprises more aware of their offerings as they are the most effective medium.
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APPENDICES
QUESTIONNAIRE
Dear Sir/Madam,
I, Anu Om Alreja, student of MIT School of Management, Pune and summer intern at IMImobile Pvt. Ltd.; am working on a project to study the awareness and adoption of mobile platform by enterprises. I am forwarding you a questionnaire in this regard and request you to kindly oblige by answering the same. Your genuine response will help me immensely in making a good report and giving recommendations to my company on improving its services to more effectively cater to your needs.
I assure you that information provided by you will remain confidential. It will be used only for the purpose of study and will not be shared with anybody else.
1. Are you aware of enterprise mobile solutions? Indicate your level of awareness on a scale of 1 to 7; 1 being not aware and 7 being well aware. Not Aware 1 2 3 4 5 6 7 Well Aware
2. What is your expectation from service? (Select i.e., tick all that apply) ______ CRM Profile & Network Intelligence ______ Ready to use services (Generic solutions) ______ Customized Solutions (APIs)
3. What is your source of platform discovery? (Select i.e., tick all that apply) ______ Search Engine ______ Phone Call ______ Reference ______ Other MIT School of Management Page 84 ______ Received SMS ______ Online Ads ______ Received E-mail ______ Call Centre ______ Conference ______ Promotion Card
4. Which of the following roles are driving the use of mobile solutions in your company? (Select i.e., tick all that apply) ______ Heads of business units ______ IT Department ______ A committee of senior executives ______ Sales & Marketing ______ Executive management ______ No one in particular
5. Important selection criteria when evaluating mobile applications? Overall cost: Less Important 1 2 3 4 5 6 7 More Important User friendliness: Less Important 1 2 3 4 5 6 7 More Important Integration with existing enterprise applications: Less Imp. 1 2 3 4 5 6 7 More Imp. Ability to customize: Less Important 1 2 3 4 5 6 7 More Important Level of pre/post implementation support: Less Imp. 1 2 3 4 5 6 7 More Imp.
6. Please indicate how important each of the following business benefits are for mobile computing: Reduce cost of doing business: Somewhat 1 2 3 4 5 6 7 Extremely Important Gain competitive advantage: Somewhat 1 2 3 4 5 6 7 Extremely Important Increase sales: Somewhat 1 2 3 4 5 6 7 Extremely Important Improved customer relations: Somewhat 1 2 3 4 5 6 7 Extremely Important Reduce time to accomplish business tasks: Somewhat 1 2 3 4 5 6 7 Extremely Imp. Increase efficiency: Somewhat 1 2 3 4 5 6 7 Extremely Important
7. Type of messaging service you use or would be interested in using? (Select i.e., tick all that apply) ______ Promotional ______ Transactional
8. Have you been using any enterprise mobile solution? ______ Yes ______ No
If yes, which mobile solutions? (Select i.e., tick all that apply) ______ Push SMS ______ Inbound Messaging MIT School of Management ______ Transactional ______ Voice Messaging ______ Contest Polls ______ Other Page 85
If yes, which mobile solutions? (Select i.e., tick all that apply) ______ Push SMS ______ Inbound Messaging ______ Transactional ______ Voice Messaging ______ Contest Polls ______ Other
10. What was your companys most important reason for moving to enterprise mobility solutions? (Select all that apply) ______ Faster & ubiquitous access to company data, services & applications ______ Improve collaboration among employees ______ Improve sales & sales support ______ Improve customer interaction & service ______ Richer user experience ______ Provide analytics data to executives ______ Consolidate multiple devices into mobile one
11. Your opinion of enterprise mobile application value? (Select any one) ______ Their value exceeds their price ______ They are priced just right ______ They are priced too high by 10% ______ They are priced too high by 25% ______ They are priced too high by over 25% ______ Not sure
Student Catalyst IMImobile Pvt. Ltd. Email: Cat_412008@in.imimobile.com MIT School of Management Page 86
REFERENCES
Sivarthina Mohan. R and Aranganathan. P, Conceptual framework of Mobile Marketing: Spamming the consumer around the world, Indian Journal of Marketing, Feb 2011, Vol.41, Annual report of TRAI 2011-12, 2012-13 www.thehindubusinessline.com www.trai.gov.in www.voicendata.com www.deloitte.com www.telecomlead.com www.iamai.com www.coai.in www.auspi.in www.onmobile.com www.imimobile.com http://vdcresearch.com/Landing/webcast93010.aspx http://www.wipro.com http://www2.microstrategy.com/download/files/whitepapers/open/Mobile-BI-Market-Study2012-Dresner-Advisory-Services.pdf http://appscend.com/blog/how-enterprise-mobility-isnt-so-mobile-but-2013-shows-a-changeof-pace/ http://www.prnewswire.com/news-releases/global-mobile-vas-market-2012-2016217740801.html http://www.pwc.in/publications/publications-2011/mobile-value-added-services.jhtml http://www.gartner.com/newsroom/id/2213115 http://mobileapplicationtestingtimes.wordpress.com/2011/04/27/mobile-enterprise-arebusinesses-prepared-to-take-advantage-of-this-opportunity/ http://readwrite.com/2013/06/17/enabling-the-mobile-first-enterprise http://www.shoretel.com/about/newsroom/industry_news/More_BYOD_businesses_adopting _enterprise_mobility_solutions.html http://sandhill.com/article/the-what-why-who-and-how-of-enterprise-mobility-adoption/ Page 87