The Mobile Marketing Disconnect

Posted: Aug 12, 2014

Source: Bulldog Reporter, Daily Dog

Mobile Marketing Disconnect: Most Businesses Lack an Enterprise-Led Mobile Strategy, Says Industry Research Report—New IDC Study Finds Only 16 Percent of Businesses Have One

To explore how companies are leveraging mobile technology to realize business benefits, IDC recently released a new report, Creating Business Value from Mobile-First Development Practices. Sponsored by enterprise mobility leader Kony, the survey demonstrated that companies that make strategic investments in mobility are achieving significantly more meaningful business results than those that do not. However, only 16 percent of these companies have an enterprise-led mobile strategy.

The mobile revolution is underway: According to IDC, the number of smartphones and tablets shipped worldwide will reach over 2 billion units by 2017. With this explosive growth, mobility presents a new set of challenges for organizations. It also, however, presents a key opportunity to drive business transformation. According to the survey, an enterprise-led strategy that aligns with key stakeholders drives a range of benefits, including increased sales, better brand awareness, competitive advantage and decreased costs.

“With the number of mobile applications downloaded from app stores expected to increase by a 31.7 percent by 2017, enterprises are realizing that a mobile strategy is no longer a nice-to-have but a must-have,” said Thomas E. Hogan, chief executive officer, Kony Inc., in a news release. “But bringing the goals of IT and the business into proper alignment is difficult when it comes to a mobile strategy. The results of the survey are further proof that those organizations that practice a mobile-first business model will improve business performance while engaging customers, business partners, and employees in new ways. Developing a clear mobile strategy is not something enterprises can ignore any longer.”

“To capitalize on mobile opportunities, organizations need a mobile-led strategy with support from the top,” said Stacy Crook, research director at Mobile Enterprise Software IDC, in the release. “Modern mobile application design asks for a fast and flexible model that engenders communication across the key stakeholders in the organization. By creating a cross-functional mobile center of excellence within their organization, enterprises are best positioned to build a cohesive strategy that marries line of business wishes to IT requirements.”

Key findings from the survey include:

  • Companies that make enterprise-led strategic investments in mobility are realizing significantly higher levels of meaningful business benefits than those that have just business unit-led or departmental-led mobile approach.
  • Only 16 percent of companies take a clear, enterprise-led approach to mobility. However, 93 percent of companies with an enterprise-led approach rated their success with mobile deployments higher than companies with a business unit-led or departmental-led approach.
  • Nearly 50 percent of organizations using a mobile solution named the following benefits as critical for impacting their business: smarter, faster decision making, improved organizational efficiency, cost savings, better customer interaction and increased revenue.
  • 41 percent of companies have an ongoing enterprise-wide mobile budget. These companies have the highest allowance for mobile budget, which tends to provide for strategic investments in mobile staff or to augment that staff with outside support.
  • 31 percent of companies have a comprehensive mobile technical staff augmented with external support and another 30 percent have a mobile development/architect group.
  • Nearly 40 percent of respondents cite security and compliance issues as a challenge, the most of any other response choice.

The study used survey responses from more than 400 IT decision makers who are responsible for influencing or directing mobile strategy at enterprises in the United States.