A Frost & SullivanWhite Paper

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50 Years of Growth, Innovation and Leadership

Mobile Solutions for Today’s Small Business: The Need for Affordable, Easy-to-Use Products and Support

Introduction .................................................................................................... 4

Today’s Small Business Sector: Sink or Swim.................................................. 4

Understanding the Unique Needs of Small Businesses ................................... 5

Mobile Solutions for Today’s Small Business ................................................... 6

Mobile Devices ................................................................................................ 6

Mobile Applications ......................................................................................... 7

Network Connectivity Solutions ...................................................................... 8

Service and Support ........................................................................................ 8

Choosing a Mobility Partner ........................................................................... 9

Sprint Biz 360: Watching Out for Small Businesses ........................................ 12

Frost & Sullivan

CONTENTS

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INTRODUCTION

In today’s rough-and-tumble world, U.S. small business owners are praised as gutsyentrepreneurs whose achievements and ongoing vigor are essential to the successof the American economy. However, the small business experience is a precariousone, with high failure rates and constant pressures. Financial success is based on theability to control expense, maximize productivity and revenues, and keep customershappy. Mobile technology can help accomplish every one of these objectives.

TODAY’S SMALL BUSINESS SECTOR: SINK OR SWIM

The impact of small businesses in the U.S. cannot be overemphasized. Smallbusinesses represent more than 98 percent of U.S. employer firms, or approximately5.8 million businesses (2008 Census). In addition, there are 21.3 million non-employer firms—typically small, single-person businesses.1 The small employer firmsalone hire more than half of all private sector employees and generated 64 percentof net new jobs over the most recently researched 15-year time period.2 Clearly,small business success is essential to overall U.S. economic success.

Source: U.S. Census Bureau, “Employment Size by Firms,” http://www.census.gov/econ/smallbus.html

Employment Size of Employer and Non-Employer Firms, 2008

(Summary of U.S. Census Bureau Table 2a)

Employment Size of Enterprise Number of Firms

Non-Employer Firms

Employer Firms

Firms with 1 to 4 employees

Firms with 5 to 9 employees

Firms with 10 to 19 employees

Firms with 20 to 99 employees

Firms with 100 to 499 employees

Firms with 500+ employees

21,351,320

5,930,132

3,617,784

1,044,065

633,141

526,307

90,386

18,469

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Mobile Solutions for Today’s Small Business

Unfortunately, small business failure rates are not for the timid. Exact failurehistories remain a strongly contested topic, given the difficulty of obtaining andinterpreting good data on small companies. However, generally accepted estimatespoint to about two-thirds of small business startups surviving their first two yearsand about half making it to four years. About one-third survives 10 years.

The three central success imperatives for smaller entities are:

• Cost management—controlling and reducing expense

• Profitability—boosting revenues, productivity, and market share

• Customer satisfaction—satisfying and retaining customers

These objectives require sacrifice, risk-taking, and focus. For an increasing numberof small businesses, they also require a willingness to deploy and utilize mobilecommunications solutions. While members of the small business sector tend to laglarger businesses in technology adoption, it is time to recognize that today’sgeneration of mobility solutions can be a means to quickly become morecompetitive, profitable, and productive.

UNDERSTANDING THE UNIQUE NEEDS OF SMALL BUSINESSES

Small business establishments face a number of challenges when it comes toadopting new technology:

• Reduced funds: Frugality and sacrifice are key requirements for small businesssuccess. Any new expenditure must offer a quick, clear return on investment. Ina 2011 small business survey conducted by Frost & Sullivan, the top barriers tomobility purchases focused on cost. Respondents pointed to both generalconcerns (“total cost of ownership”) and very specific worries (“cost ofrequired hardware,” “integration expense,” “customization expense”). Themessage is clear: Affordable pricing is a must; fast, hard-dollar ROI is a given.

• Limited technological expertise: It is a rare small business that has adedicated IT staff, so a low level of internal knowledge regarding mobilityvendors and solutions can act as a natural brake on adoption decisions. Aknowledgeable purchase will typically require third-party assistance during thereview, purchase, implementation, and even ongoing management phases. In theprocess, both expense and control issues can surface.

• Lack of targeted solutions: So-called small business solutions are often largebusiness products with half of the bells and whistles turned off. Smallercompanies need more focused functionality and solutions that are tailored tomeet their unique communications needs. This calls for innovative thinking onthe part of the provider.

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• Erratic attention from vendors: Especially in the mobility sector, pastvendor attention has largely been dedicated to satisfying big company needs.This resulted in a limited selection of product alternatives and a lower level ofsales and technical support for the small business owner. Fortunately, anincreasing number of mobile solution vendors are now expanding their focus toactively support small business mobility needs.

MOBILE SOLUTIONS FOR TODAY’S SMALL BUSINESS

Savvy providers are building mobile solution portfolios that are truly targeted tosmaller company needs. Mobile products and services naturally segment into foursolution categories:

Mobile Devices

Small businesses face a plethora of mobile device alternatives. While basic featurephones are still used by a number of workers, it is the smartphone and the tabletthat are receiving increased attention in the workplace. Smartphones oftenbelong to the employee (not the company) and typically include the Apple® iPhone®,RIM® BlackBerry®, and/or assorted Android models. These devices are equal partshandheld computer and mobile phone, and offer touch screens, increasinglypowerful processors, and rapid Web browsers. Graphics are crisp, and locationawareness has become a standard feature.

The new, feature-packed tablets are also entering the small business workplace.Weighing about 1 pound, less than half-an-inch thick, and offering 7- to 10-inchdisplays, these devices are extremely portable. They also deliver speed, performance,and high-resolution displays. Screen size is their primary advantage oversmartphones—a benefit that can be especially attractive in certain industries. Thedisadvantage? A comprehensive library of mobile business applications for tablets isstill under construction—although developers are working hard to create newsoftware solutions specifically designed to leverage the tablet’s unique capabilities.

A third device category is the ruggedized mobile handheld computer,designed to operate in even the most extreme work environments. Intermec® andMotorola® are two major manufacturers of these tough, water- and temperature-resistant devices. While their comparatively high price points would seem destinedto frighten off cost-conscious businesses, Frost & Sullivan’s 2011 survey revealedthat a significant percentage of small businesses that are using mobile applications(19 to 33 percent) are using them on ruggedized mobile computing devices. Theintroduction of more consumerized, less expensive versions of these ruggedhandhelds has undoubtedly increased their popularity, especially in companies thathave mobile service and/or sales personnel.

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Mobile Solutions for Today’s Small Business

Mobile Applications

Mobile software solutions in the workplace are becoming increasingly popular, in nosmall part because of employees’ familiarity with mobile consumer apps on theirsmartphones. Application developers have strengthened and expanded their smallbusiness options in recent months, offering easy-to-use software products thatstreamline work processes and increase employee productivity. Depending upon theapplication, mobile phones and tablets can track workers, take credit cardpayments, provide wireless forms, push e-mail, or organize documents andcustomer data for easy access. And these solutions are often priced on anaffordable per-user/per-month basis.

Not surprisingly, small businesses have signaled a high level of enthusiasm for thesetypes of software solutions. In fact, in the 2011 Frost & Sullivan survey, more thanhalf of small business respondents already consider mobile applications as beingvery or somewhat necessary to business success.

These small businesses realize that mobile applications can exert a significant andpositive impact on employee productivity levels. Current users report being highlysatisfied with these solutions, and the reasons are readily apparent. Hard-dollar ROIimpacts include reduced paperwork, higher job completion rates, less employee

Mobile Device

Feature Phone

Smartphone

Tablets

Rugged Devices

Strengths

Less expensive

Touchscreen; crisp graphics; powerful processors; rapid Web browsing; location awareness; large collection of applications

Large, sharp displays; powerful processors; portable size; rapid Web browsing; dual cameras

Temperature, water, and drop resistant

Vulnerabilities

Fewer features and capabilities

Small screens; easy to lose; may require after-market casing to protect from drops

Price; may require after-market casing to protect from drops; still-growing selection of applications

Price; heavier form factor

Mobile Device Categories:Current Strengths and Vulnerabilities

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overtime, and an overall decrease in labor expense. The survey responses from users ofmobile workforce management apps (solutions that track mobile worker location) arerepresentative of current small business feedback regarding mobile software solutions:

Network Connectivity Solutions

Small businesses are starting to follow the example of consumers and have begununplugging their landline phones. When the owner and/or employees are spendinglarge amounts of time outside of the business establishment and are regularlyhanding out their cell phone numbers to customers and partners, a wireline phonebegins to make less financial sense. Some wireless carriers are trying to make thistransition as smooth as possible with reasonably priced voice plans, easy numberportability, and popular White Pages listings. Wireless routers, mobile broadbandcards, and affordable data plans make it possible for workers to access wireless 3Gand 4G network coverage indoors and out.

Service and Support

When asked to rank the top criteria their firms use to evaluate potential mobilitypartners, small businesses included post-sale service and support as one of their topfour considerations. In fact, 71 percent of SMB respondents specifically point to 24x7contact center support as a service they expect their mobility partner to provide.

MobileWorkforceManagementApplication

Q: Please select the top three ROI impacts your business or organizationhas experienced while using a mobile workforce management solution.

Reduced labor expense 38%

Higher job completion rates 31%

% of Small Business Respondents Citing Impact

Top Return on Investment Impact

Reduced paperwork 46%

Source: Frost & Sullivan, 2011 Mobile Enterprise Applications Survey

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Mobile Solutions for Today’s Small Business

Small businesses typically do not have the internal resources to address day-to-daytechnical concerns. And, as mentioned earlier, they also tend to lack real expertiseregarding today’s mobile vendor and solution options. Savvy vendors are providingmore support during the needs assessment stage, more handholding during initialimplementation, and regular follow-up once the solution has been up and runningfor a period of time. They also provide 24/7 tech support via phone or online.

CHOOSING A MOBILITY PARTNER

Selecting the correct mobility partner is a critical first step toward choosing theright solutions and implementing them in a supportive, efficient manner. Smallbusinesses have an assortment of potential partners available to them and shouldtake their time in evaluating their alternatives.

Today’s potential mobility partners tend to fall into five major categories:

1. Wireless carriers2. Major corporate software vendors3. Mobile application vendors4. Mobile device manufacturers5. Value-added resellers

*1–99 Employees

All SMB Survey Respondents*

Source: Frost & Sullivan, 2011 Mobile Enterprise Applications Survey

Service and Support Expectations

Q: What types of service and support do you expect to be made available by yourpreferred mobile partner? (Please check all that apply.)

0% 20% 40% 60% 80%

71%

54%

46%

35%

27%

25%

22%

24x7 call center support

Application customization

On-site support

Implementation/deploymentproject management

Needs/ROI analysis

Back-end integration

Process mapping

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Wireless carriers continue to rank first as the small business owners’ preferredmobility partner—far outdistancing the other choices in today’s mobile enterpriseapplications ecosystem.

The reasoning behind this continued preference is straightforward:

• Wireless carriers are unique in the long-standing, direct touch relationship they have builtwith smaller businesses. This has resulted in a rare level of familiarity and trust.

• Many carriers have sharpened their focus on satisfying small business needs,forestalling any major move toward alternative providers.

• Many carriers are comfortable acting as a single source for mobile businesssolutions. By partnering with other stakeholders and acting as the single pointof contact, they can make the purchase and implementation process significantlyeasier for the small business owner.

Q: Please indicate the one party you prefer to have as your strategicpartner when it comes to mobile enterprise applications.

Source: Frost & Sullivan, 2011 Mobile Enterprise Applications Survey

� Wireless carrier� Major corporate software vendor� Application vendor� Mobile device manufacturer� A VAR (value added reseller)� Other

Preferred Small Business Mobility Partner, North America, 2011

48%

19%

14%

13%

5%

1%

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Mobile Solutions for Today’s Small Business

Criteria to consider when selecting a mobility partner include:

Features and functionality: The communications needs of smaller businesses maynot be as complex as those of their larger enterprise counterparts; however, it isimperative that they be clearly defined and addressed. Prospective customers must avoidbeing sold an over-featured solution that was designed to be used by larger companies.

Quality and reliability: The U.S. mobility sector remains fragmented, with anabundance of vendors competing for market share. While vulnerable participants arestill shaking out, it is imperative for customers to conduct due diligence—and searchfor only high-quality, highly reliable solutions. This expectation of quality applies toall components of a mobile solution—including hardware, software, and the wirelessnetwork utilized. The vendor must also be financially stable, have established apositive brand reputation, and be willing to provide reference customers.

Ease of implementation/deployment: Many vendors are offering “out-of-the-box”solutions that require little customization on the customer’s part. According to the2011 Frost & Sullivan mobility survey, 25 to 35 percent of current small business userswere able to implement their mobile application solutions directly out of the box.Another 58 to 67 percent encountered a need for limited customization and werecomfortable handling that need in-house. In addition to simple start-up, the workermust be absolutely comfortable and confident using the solution on a day-to-day basis.

Scalability: Ideally, solutions will be able to grow with the business’s needs.Prospective customers should look for modular or tiered offerings that can add onnew capabilities as company requirements evolve.

Affordability: “Cost of doing business” is the #1 criterion used today by smallbusinesses to choose their mobility partners. Solutions can include multiplecomponents (software, hardware, wireless network connectivity, professionalservices, etc.), and the customer should understand exactly what it is paying for.When possible, small businesses should give serious consideration to implementinghosted solutions that charge on a per-user/per-month basis. This avoids capexspending. The mobility provider may also be willing to work with other partners tooffer hardware discounts, waive certain upfront costs, or incorporate some of thetraditional upfront expenses into the monthly fee.

Service and support: Without an internal IT staff, small businesses feeltechnologically vulnerable. Mobile solutions are only effective if they operateproperly and dependably. A single source for care and support across all of thesolution’s elements should be required. The savviest providers will work closely(and directly) with customers during the initial post-deployment period in order tominimize and address any launch difficulties. In addition, ongoing 24/7/365 technicalsupport should be available by phone and online.

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Using these criteria to choose a mobile solutions partner can positively impact thesmall business’s ability to increase productivity, enhance profits, and satisfy customers.

SPRINT BIZ 360: WATCHING OUT FOR SMALL BUSINESSES

Frost & Sullivan views Sprint as an excellent example of an end-to-end mobilesolution provider for the small business sector. The carrier has identified and vettedtop-tier mobility partners, and has assembled a “Biz 360” portfolio of networkconnectivity options, devices, applications and support that are tailor-made toaddress small business needs. Small companies can combine the elements that willoptimize their business operations, and know that the solutions are well-designedand thoroughly supported.

Sprint Biz 360 solutions start with customizable wireless voice and data options.The carrier is the only major U.S. service provider that offers an unlimited mobiledata plan—an option that can provide a significant level of savings for smallbusinesses on tight budgets.

Selection Criteria for Mobile Solutions Partner

�

�

�

�

�

�

FEATURES AND FUNCTIONALITY:

Does the device include the optimal mix of capabilities and features to meet yourcurrent mobile communications requirements?

QUALITY AND RELIABILITY:

Does the vendor have a reputation for high-quality products? Is the vendor financiallystable and willing to provide reference customers?

EASE OF IMPLEMENTATION AND DEPLOYMENT:

Is the solution deployable right out of the box, with little or minimal customizationrequired? Is the solution easy to understand and use?

SCALABILITY:

Can the solution grow with your business needs?

AFFORDABILITY:

Will your mobility partner offer per user/per month pricing? Are discounts available?

SERVICE AND SUPPORT:

Does the vendor act as the single point of contact for service? Will the vendor workclosely and directly with you during initial post-deployment? Is 24/7/365 technical supportavailable via phone and online?

Selecting the Right Mobility Partner

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Mobile Solutions for Today’s Small Business

Sprint’s Biz 360 portfolio also includes:

Phone Solutions: Sprint offers a focused and innovative mobile device portfoliothat stays current with market developments.

• 3G and 3G/4G smartphones include models from Apple, Samsung®, Motorola,HTC®, RIM and others.

• Tablets include the BlackBerry PlayBook™, Motorola Xoom™, and HTC Evo View 4G.

• Rugged phones include the Motorola ES400S, a ruggedized model that scansbarcodes, accepts credit cards, and captures signatures—and can survivemultiple hard-contact drops.

• A selection of notebooks is being created, with the Dell™ Inspiron™ as the firstultra-mobile option available.

• The carrier also offers Sprint Phone Connect, which allows small businesses toplug their existing phone hardware into an adapter that connects to Sprint’s3G/4G wireless network. The adapter can be used anywhere, porting thewireline number over for seamless presentation to customers.

Another element of the Sprint Phone Solutions portfolio is the carrier’sWhitePages™ Verified Listings offer. This solution ensures that a listing of thebusiness’s wireless phone number(s) is included on sprint.whitepages.com (a top 50Internet destination) with featured placement in search results.

Productivity Solutions: These software and hardware products enhance theproductivity of mobile employees and capture revenue-generating opportunitiesright at the point of sale. Current offerings include:

• Sprint Workforce Locator—Using locationing technology, this application keepstrack of employees in the field and issues an alert if a designated boundary iscrossed. With this kind of real-time visibility, businesses can maximize workerproductivity and optimize gasoline usage by mapping out the most direct routes.

• Actsoft™ Mobile Business Forms—This solution allows employees to fill out formsright on their smartphones or tablets, and then transmit the informationdirectly to their office or business establishment. This decreases the number ofsteps and the time required to capture important data. It also minimizes dataentry errors and easily integrates with Quicken® financial software. “Reducedpaperwork” is the top ROI impact of today’s mobile applications, and thiswireless form’s capability is one of the reasons why.

• AirCharge® AirBlue Mini—AirBlue Mini is a small piece of hardware that turns themobile phone into a wireless credit card machine. Workers can swipe customer creditcards, get real-time authorizations, and print receipts—all on the customer’s doorstep.

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Connectivity and Back-Up Solutions: For mobile employees, networkconnectivity difficulties can be especially frustrating—especially when they happenin front of customers. Sprint provides a focused set of connectivity tools thatincludes both mobile hot spot devices and broadband cards for portable Wi-Fi and3G/4G network connections.

In addition, Sprint recognizes the small business’s critical need for networkredundancy. If primary Internet service is interrupted for any reason, the carrier offersa back-up solution that automatically kicks in and keeps the business connected.

Customer Support Solutions: The carrier has designed programs specifically toassist small businesses in choosing, deploying, and managing their mobile solutions.These include the Sprint Business Advocate Program. As part of this program, Sprintspecialized care representatives proactively monitor solution set-up and circle backfor periodic account reviews to make sure needs are being met. 24/7/365 techsupport is available online or by phone.

Simply put, the Sprint Biz 360 program offers a focused portfolio of mobileproducts and support that small businesses desperately need in today’s complextechnology environment. At the same time, discounts and device upgrade deals havebeen designed to keep small business mobile solutions affordable.

Mobile technology should be viewed by smaller businesses as the solution, not as astruggle. Properly implemented, mobile offerings can help save money, increaseproductivity and revenues, and simply make customers happier.

To learn more about how the Sprint Biz 360 program can help small businessesthrive in today’s marketplace, please visit www.sprint.com/biz360.

1 U.S. Census Bureau, “Statistics About Business Size (Including Small Businesses) from the U.S. CensusBureau,” http://www.census.gov/econ/smallbus.html

2 U.S. Small Business Administration, “How important are small businesses to the U.S. economy?”http://www.sba.gov/advocacy/7495/8420

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