enterprise mobility: unintended consequences of...

© 2004 CCG Group, LLC For Discussion Only

Enterprise Mobility:unintended consequences of technology

David GautschiDirector of Research

CCG Group LLC

University of MaineComputer Science Seminar

16 September 2004

2© 2004 CCG Group, LLC

Outline

• The problem of technology and unintended consequences• Why the problem is important• Consider enterprise mobility

• The quality and implications of market information• How to think of demand for enterprise mobility• Case: assessing marketing of Wi-Fi to the enterprise

market

• Revolutionary solution : TELE• Labshop


Visions conditioned by complex environments

John Elfreth Watkins Predictions for the 20th Century:

Mosquitoes will disappear

Life expectancy to rise to 50

Electrical central heating for all

Air vessels no competition for ships

Automobile main use as hearses

Submarines able to destroy fleets

Phasing out of C, X, and Q

Source: Ladies Home Journal, December 1900


Speaking of Visions…


Why it’s important to try to tell the ‘truth’…

Asset valuation…

V0 = Σt E(Cash in – Cash out)t / ( 1 + r)t

‘E’ and var(E) uncertaintyRisk = uncertainty that matters


Consumption Activity: Accessing information from the Internet and corporate networks

Corporate Network

Cellular Extra-Campus: GPRS, EDGE, 1xRTT, EV-DO

Wireless Local Loop:Connecting Corporate

Network

Wireless Local Loop:Connecting hotspots

Methods for accessing data and the technology chains they involve:

Wireless Extra-Campus: Public hotspots, Home WLAN

Wireless Campus: WLAN private hotspots,

Point solutions

Wired Extra-Campus: Cable, DSL, Ethernet, Dial-up

Technology chain of access dependencies:

InternetConnector

InternetConnector

AccessModes

Devices &Software LocationsInternet

• Coffee shop• Hotel• Airport• Home

• Laptop• PDA• Wireless Card• Cellular Phone• Operating

System• Application

• WiFi Access Point

• Bluetooth• Cell tower• Modem (T-1,

DSL, Cable, PSTN)

• ISP account• CLEC access• Authentication

• Network backbone (X.25, frame relay, ATM)

• Firewall• Authentication• VPN• WLAN access

points• Ethernet cable

• ISP account• CLEC access

Technology Examples:

Consumption Activity: Accessing information from the Internet and corporate networks

Corporate Network

Cellular Extra-Campus: GPRS, EDGE, 1xRTT, EV-DO


Network



Network


Methods for accessing data and the technology chains they involve:

Wireless Extra-Campus: Public hotspots, Home WLAN

Wireless Campus: WLAN private hotspots,

Point solutions

Wired Extra-Campus: Cable, DSL, Ethernet, Dial-up

Technology chain of access dependencies:

InternetConnector

InternetConnector

AccessModes

Devices &Software LocationsInternet

• Coffee shop• Hotel• Airport• Home

• Laptop• PDA• Wireless Card• Cellular Phone• Operating

System• Application

• WiFi Access Point

• Bluetooth• Cell tower• Modem (T-1,

DSL, Cable, PSTN)

• ISP account• CLEC access• Authentication

• Network backbone (X.25, frame relay, ATM)

• Firewall• Authentication• VPN• WLAN access

points• Ethernet cable

• ISP account• CLEC access

Technology Examples:


Finding: the enterprise mobility value chain consists of five essential stages

• Transmission• Switching• Routing / addressing• Clearing• Enhanced functions

(Intelligent Network)

EnterpriseProcesses

• Customer care• Customer analytics• Branding

• Coverage• Access detection• Session initiation• Signal processing• Integration• Service level

management• Compliance

management• User device

management

TransactionProcessing

Customer Management

DeploymentNetworkOperation

•Authorization•Authentication•Encryption / decryption

•Billing

IT•Security•Reliability•Cost

User•Access to service•Simplicity•Flexibility•Reliability


Comparison of Hotspot Location Growth Predictions

0

50000

100000

150000

200000

2002 2003 2004 2005 2006 2007

IDC Gartner Group

Comparison of Hotspot User Predictions (1000s)

01000020000300004000050000600007000080000

2002 2003 2004 2005 2006 2007 2008

Gartner Group Rutberg


Hotspot Revenues per User

$-$20$40$60$80

$100$120$140$160$180$200

2002 2003 2004 2005 2006 2007

Western Europe ($/user) United States ($/user)Asia/Pacific ($/user) Rest Of the World ($/user)

Correlation of Hotspot Locations to Users(2002-2007)

0

10

20

30

40

50

60

70

80

90

100

0 2000 4000 6000 8000 10000Users

Loca

tions

Western Europe United States Asia/Pacif ic Rest Of the World


Respondents by industry

Respondents by Industry1%

22%

1%

9%

3%

5%6%12%

2%

3%

27%

2%3%

Distribution

Education

Energy

Finance

Health Care

Manufacturing

Media

Professional Services

Real Estate

Retail

Technology

Transportation

Travel


Mobility taxonomy

Activity conducted presuming ubiquitous accessCity, Highway, “Anywhere”(Always On)

extensively,actively mobile

Activity conducted at designated access points beyond the defined locale

Hotel, Airport, Business center(Road Warrior)

extensively, portable office

Activity conducted presuming ubiquitous access within a delimited and defined locale

Delivery truck, Gas stations(Windshield Warrior)

locally, actively mobile

Activity conducted at designated access points within a delimited and defined locale

Coffee shop, Bookstore (Nomad)

locally, portable office

Activity conducted at an access point exclusive to the userHome (Telecommuter)

stationary

Beyond the physical boundaries of the enterprise facility and IT infrastructureOutside Campus

Whole Campus(Facilities Maintenance)

Conference Rooms

Office Desk

Example

Activity conducted presuming ubiquitous access within a defined locale

actively mobile

Activity conducted at designated access pointsportable office

Activity conducted at an exclusive access pointstationary

Within the physical boundaries of the enterprise facility and IT infrastructureWithin Campus

DefinitionActivity Conditions

Activity conducted presuming ubiquitous accessCity, Highway, “Anywhere”(Always On)

extensively,actively mobile

Activity conducted at designated access points beyond the defined locale

Hotel, Airport, Business center(Road Warrior)

extensively, portable office

Activity conducted presuming ubiquitous access within a delimited and defined locale

Delivery truck, Gas stations(Windshield Warrior)

locally, actively mobile

Activity conducted at designated access points within a delimited and defined locale

Coffee shop, Bookstore (Nomad)

locally, portable office

Activity conducted at an access point exclusive to the userHome (Telecommuter)

stationary

Beyond the physical boundaries of the enterprise facility and IT infrastructureOutside Campus

Whole Campus(Facilities Maintenance)

Conference Rooms

Office Desk

Example

Activity conducted presuming ubiquitous access within a defined locale

actively mobile

Activity conducted at designated access pointsportable office

Activity conducted at an exclusive access pointstationary

Within the physical boundaries of the enterprise facility and IT infrastructureWithin Campus

DefinitionActivity Conditions


Sub- Markets with Associated Technology Choices

GPRS1xRttWi-FiWLAN campusRFBluetooth

Customized versions of SFA, CRM, ERP, forms,industry-specific apps

SFACRMERPForms

FormsKnowledge

Portable office, actively mobile

Rich data and medium to heavy transfer

(3)Specialized User Process or Activity

Wi-FiWLAN campus

SFACRMFormsDatabase inquiry

InternetIntranetEmailDocuments

MessageFormsKnowledgePower

Portable officeMedium to heavy data transfer

(2)ExtendedOffice

GPRS1xRTTWi-Fi

SFAService dispatch

EmailSMSIMPagingAlertsMinimal file transfer

AlertsMessage

Actively mobileLight or limited data transfer

(1)General, Diffuse Enterprise

VerticalHorizontalPrimary Information

Needs

Primary Location

Conditions

Data Intensity

Needs

Technology

Choices

Typical ApplicationsUser Segmentation CharacteristicsRoutes to Market


Venue assessment cities

86Total

3Washington DC

10Seattle WA

10San Francisco, San Jose, Menlo Park CA

33Total6Raleigh, Chapel Hill NC

2York, England3Portland OR

4Paris, France2Phoenix AZ

1Oxford, England2Philadelphia PA

4London, England5Paterson, Hoboken, Jersey City NJ

6Lisbon, Portugal15Manhattan, Brooklyn NY

3Lille, France8Los Angeles CA

2Leuven, Belgium2Greenwich CT

2Fontainebleau, France5Dallas, Plano TX

2Düsseldorf, Germany4Chicago IL

4Cologne, Germany3Boston, Cambridge, Winchester MA

1Cambridge, England4Billings, Bozeman MT

1Brussels, Belgium1Bangor ME

1Birmingham, England3Baltimore MD

VenuesEuropeVenuesU.S.


Venue types

1Office building

1Truck stop

2Shopping center

21Municipal Office

13College/University

2Public Park

52Train Station

8Copy Shop

17Airport

710Hotel

2Library

29Bookstore

45Restaurant/pub

1433Coffee shop/café

EuropeU.S.Venue Type


Finding 1: pricing of Wi-Fi does not reflect value delivered

Finding 2: Wi-Fi service is poorly defined for prospective users

Finding 3: technical performance is not a differentiator

Finding 7: venues are conducive to only a few benefit segments

Finding 6: there is more than one business case for Wi-Fi

Selected Findings from Wi-Fi Venue Deployment Assessments


The problem of troubleshooting systemic solutions

A self-employed worker purchases the following services, software, and equipment for her home office:

A laptop computer from Dell with Windows XP and an Intel CentrinoTM

processor with integrated Wi-Fi (802.11g card)A Broadcom 570x Gigabit Integrated ControllerAn Intel PRO/Wireless LAN 2100 3A Mini PCI AdapterA Sony CDROM playerAnti-virus software from MacAfeeMicrosoft Office Professional editionLocal telephone service from VerizonLong distance telephone service from AT&TDSL service from COVADA Cisco routerA wireless access point from Netgear

After installing the equipment and services, she accomplishes her workwith no significant problems for about two weeks. On a late Sunday afternoon, she experiences a problem reading a file from the Internet. She cannot determine for herself if the issue is one of the connection (hence the DSL service), the computer, its operating system, or the application program she is using.

What should she do? Which technology vendor will solve the problem with her system?


Marketing Problems Abound

Decision makers aware of complex IT project failures

Economic pressures retard decision-making

Technology vendors oversell their products as solutions

Enterprise technologies are

RISKY

Standish Report

Fixation on ROI

Cannot easily try the technology


TELETechnology Experience Laboratory for the Enterprise

Behavioral simulation

Experimental Method

Virtual Enterprise

Environment

TELEGenerates Reference Case Evidence from

prospective technology users in a realistic enterprise context

1. Participants run businesses2. Technologies introduced as treatments3. Scenarios challenge the performance of

the virtual businesses4. Virtual + realistic mean SAFE!

Return on Technology

1. Faster and better than conventional needs analysis

2. Faster and better than a pilot3. Faster and better than a conventional

systems integration plan


Enterprise Mobility Enterprise Mobility LabshopLabshop

Ayers Island, Maine 8 Ayers Island, Maine 8 –– 12 November, 200412 November, 2004

Laboratory: experience marketing and using enterprise mobility solutions

Workshop: explore and discuss industry applications with experts, complementary vendors and enterprise users.

Market Reports: CCG Group Market Reports on Enterprise Mobility

www.ccggroup.net