Forrester’s recent research shows that, while Asia Pacific lags developed regions like North America and Europe in terms of smartphone penetration, the growth of smartphones will be highest in APAC between 2012 and 2017. As indicated in our recently published report, Forrester Research World Smartphone Adoption Forecast, 2012 To 2017 (Global), by end of 2013, Forrester estimates that smartphone penetration in North America will be 57%, followed by Europe with 42% and APAC with 21%. But in terms of the compound annual growth rate during the same period, smartphone penetration in APAC will grow by 20%, followed by Europe with 11% and North America with 10%.
The sharp increase in the number of smartphone users will greatly affect both the consumer and enterprise landscapes. Building on Forrester’s deep research on the Asia Pacific mobility opportunity, we will be holding a series of complimentary quarterly webinars to help our clients make sense of this rapidly changing landscape and position for success. Starting in March and covering the consumer and enterprise mobility markets, the webinars will bring together Forrester analysts from around the world to present a global and Asia Pacific perspective.
On March 5, 2013, I will present a mobile trends and summary webinar with my colleagues Thomas Husson and George Lawrie. This session will cover our key findings from this year’s Mobile World Congress in Barcelona, share our view of key 2013 mobile trends, and share best practices for building a successful business case for mobile initiatives. You can register for the webinar here.
Data from Forrester’s Forrsights Budgets and Priorities Tracker Survey, Q4 2012 highlights that a total of 53% of IT organizations interviewed in India plan to increase their software spending on mobile applications in 2013. Among all the countries, India ranks second only after Australia/New Zealand and considerably higher than the regional average:
It’s encouraging to see Indian CIOs start to give a high priority to mobility software spending, but our research shows that the majority of mobile application initiatives are skewed toward employees and BYOT (and, to some extent, partners) with little focus on mobile customer engagement. Forrester research findings indicate that mobile applications will be a more critical channel to reach consumer markets in Asia Pacific in the future compared to more developed western markets. This is especially true in India, where the population is younger (according to the UN, 27% of the population is between the ages of 15 and 29), the mobile Internet user base is growing at the rate of more than 30% annually, and sub-$100 smartphones are further fueling mobile Internet growth.
What It Means For CIOs:
Put customers at the center of your mobile strategy. If you’re not establishing the architectures and capabilities to reach these mobile customers now, you won’t be positioned for success three years from now. CIOs have an opportunity to lead their organizations by leveraging technology in strengthening customer relationships.
Is it me or my expectations? My mobile travel applications have only improved over the past 12 months (and I mean this sincerely), but my disappointment has never been so acute. Why? My expectations have never been higher. I access information more frequently (see Ted Schadler's and John McCarthy's Engagement report -- they quantify this), and I expect more accuracy. In the absence of tethering my computer or tablet to to my mobile-phone-turned-hotspot (difficult on the move), I turn to my mobile phone for services. "Immediacy" is what makes mobile so valuable. If I can't get real-time, accurate information on the go, then how useful are the mobile services?
11. (an extra) When I use the mobile app to add the boarding pass to Passbook, why does only one of two boarding passes go there when I have a connecting flight?
10. I uploaded an update to the loyalty program from the hotel chain. It deleted all of my account information. Awesome. Really guys?
9. I searched the mobile app, mobile web, and full web for a way to recover my account number - not possible in my 10 minutes of searching. Only possible to get password.
8. I called customer service (hotel brand) while sitting on the plane to get my account number. They asked me to state my password out loud (while on the crowded plane). I gave them the password, and they told me it was incorrect. They proceeded to ask for all of my additional security information (e.g., mother's maiden name). "We have these rules in place to protect your privacy and ensure the security of your account." I'm thinking, "My hotel frequent stay account??? It's easier to get my user name and password from my bank!!" Terrible user experience.
The Forrester team of Asia Pacific (AP) analysts has just published its 2013 IT industry predictions. Below is a sneak peek at some key regional trends I wanted to highlight.
2013 will be a transformative year for IT adoption in AP, as multiple IT trends converge to drive industry disruptions and help spur renewed growth in IT spending. Forrester expects IT spending in AP to rebound in 2013, with regionwide growth of 4% — rising to 8% when the large but slow-growing Japan market is excluded. While India IT spending growth will remain sluggish, the 2012 economic slowdown in China will be short-lived as government stimulus policies take effect in 2013. The Australia, New Zealand, and ASEAN markets will all remain resilient, with Vietnam, Indonesia, and the Philippines leading the way in IT spending growth.
Below are some other key predictions shaping the Asia Pacific IT industry in 2013:
End user computing strategies will be limited to mobile device management (MDM). AP organizations are feeling the pressure to deliver applications and services across multiple devices, including traditional desktops/laptops, smartphones, and tablets. But lack of skills will hinder bring-your-own-technology (BYOT) policies, which will remain limited to MDM, including basic device control and security/identity management.
Engaging with users via mobile is now unavoidable - no surprise there. By 2016, smartphone subscriptions in the US will likely outnumber people and in Europe, almost 70% of the population will own smartphones. Consumers want simple, immediate, and contextual mobile services.
Mobile offers additional contact options that go beyond the traditional touchpoints you have with a consumer, further embeds your brand into your customers' lives, and, perhaps most importantly, can serve as the central connector between all your touchpoints. The flexibility and immediacy mobile provides enables you to drive customers across and within channels and, at the same time, comes with greater complexity and more need for speed.
eBusiness professionals are at the forefront of this evolution. In order to drive value for your business and your customer, it is critical that you have a systematic, end-to-end approach to support and connect with customers through this critical touchpoint.
iPad has exploded onto the scene. Who could have imagined that a tablet (a category introduced in 2001) would capture the imagination of employees and IT alike? But it did, and it's kicked off an arms race for smart mobile devices. Every day, a new tablet appears: Cisco Cius, Dell Streak, Samsung Galaxy Tab, RIM PlayBook, HP Windows 7 Tablet, the list goes on. These post-PC devices will find a place in your company, but where?
We've had over 200 conversations with IT customers about iPads and other tablets since January. The interest is incredible. And IT is ahead of the curve on this one, determined not to be playing catchup as happened with employee and executive demand for iPhones. We talk to people every day who are deploying iPads in pilots or experiments.
In a new report for Forrester clients, we categorize the ways in which we see tablets entering the workplace:
Displace laptops. This is the classic executive and mobile professional scenario. While it will be some time before tablets replace laptops completely, iPads have proven their value in meeting rooms, on the go, and of course as personal devices. But for now, it means tablets are a third device alongside smartphones and laptops.
Replace clipboards and other paper. This is the scenario for a construction manager using an application by Vela Systems whocan now carry an iPad instead of a tube full of construction drawings. It also applies to clinical testing in the pharma industry, facilities inspections by quality assurance pros, and insurance brokers writing business out in the field.
Mature market telecom operators can learn from many of their fellow service providers in emerging markets. Recognizing that contexts differ – and they certainly do – there is still a sharp contrast in approaches to their markets. Ellen Daley and I just returned from India where we met with Indian telecom operators and services firms, and conducted an interactive session with telecom product and service providers – Forrester TelecomNext 2010. Both were an opportunity for us to listen and learn as well as share our observations on the industry.
With well over 500 million subscribers and a growth rate of more than 11% a quarter in 2009, the Indian mobile market is certainly attractive. But, Indian telecom operators face a tough competitive environment with some “circles” having upwards of a half dozen or more service providers (there are 23 telecom regions in India, known as “circles”), and the overall market packed with thirteen competitors. ARPUs are low and shrinking, with an average of about $2/month in March 2010. And, the price tag for 3G licenses in India added additional pain, with some vendors paying almost $3 billion in the spectrum auction. High costs and low revenues do not make for an easy road ahead.
HP acquired Palm for $1.2 billion in cash, ending recent speculation over who would purchase the struggling handheld device manufacturer. On the surface, this acquisition appears to bolster HP’s mobility strategy with Palm’s webOS mobile operating system, carrier relationships, experienced mobility personnel, and intellectual property.
However, if you look under the hood, this acquisition has a key flaw. HP currently offers iPAQ PDAs and handsets that use Microsoft’s Windows Mobile operating system, but these devices have had limited success among enterprise users. Will acquiring Palm put HP in a strong position against other competitive mobile operating systems vendors? Not necessarily. In Forrester’s survey of over 1,000 IT decision makers in North American and European enterprises, only 12% of firms officially support or manage Palm devices. In comparison, 70% of enterprises support BlackBerry smartphones, and 29% support Apple iPhones. Android devices, the newest entrants in the mobile OS wars, have strong momentum and are officially supported by 13% of firms.
HP did gain some important assets as part of the acquisition. Palm's carrier relationships are a plus, and HP can leverage its strong international distribution channel to expand the reach of these mobile devices on an international level. Palm’s highly skilled employees, mobile operating system R&D expertise, and intellectual property are also a benefit. In the short term, HP’s acquisition gave Palm a new lease on life, but given the intensely competitive mobile device landscape, HP’s $1.2 billion investment may not pay off in the long term.
Apple yesterday announced OS 4.0, it's latest iPhone and iPad operating system. This release confirms what we believed last year: that Apple is actually listening to what enterprise IT needs from iPhones. Let's review the history:
July 2007. Apple launches iPhone with OS 1.0 as a consumer device without anything that companies require.
July 2008. Apple releases iPhone 3G with OS 2.0 and introduces Exchange support, including remote wipe, but little else that companies need. Even so, some firms allowed their employees to bring their own iPhones and get email support.
July 2009. Apple releases iPhone 3GS with OS 3.0 and hardware encryption and enough policy-based control to give IT professionals the ability to more comfortably support the devices, particularly in non-regulated industries. The big remaining gaps in 3.0 from our 100+ conversations with IT pros? The inability to distribute applications wirelessly, to push software and policy updates to the device, and to manage iPhones or iPads in the same way that BlackBerry Enterprise Server (or Server Express, the $0-cost version) does.
July 2010. Apple will release OS 4.0 that includes wireless app distribution, better data encryption, more APIs for device management, and a significicant number of enterprise features that are outlined below. For other details, check out these Forrester posts on consumer functions and on mobile advertising.