India's Rapidly Evolving Enterprise Mobility Market To Touch Usd 1 Billion By Mid-2015: Zinnov Study

Over the last three years, enterprise mobility in India has seen exponential growth and this trend is likely to continue for the next five years. Enterprise Mobility Market (excluding devices) in India currently stands at USD 244 million. India is expected to have over 100 million active mobile internet users in the next 5 years. End Quote

(1888PressRelease) September 15, 2011 - Key highlights of the Study:

* A combination of factors like innovation, entrepreneurial & start-up activity, better devices penetration and increased acceptance of majority of mobile platforms is the key reason driving the growth of enterprise mobility in India

* Of the 750 digital start-ups in India, around 23.6% are in the mobility space indicating a healthy entrepreneurial trend in this segment

* Companies are now looking at enterprise mobility for functions like ERP, CRM, SCM, sales force automation, unified communication and billing; a move over traditional email and social networking

* As enterprise mobility matures among organizations, departments like HR, retail, customer service, finance and field service too will look to mobilize in the next 24 months. This is over and above the early adopters like marketing, sales, IT, and corporate management.

* OEMs are experiencing a tablet revolution. Almost all OEMs are coming up with innovative tablet offerings to tap the fast growing market e.g. Apple, Blackberry, Samsung, Motorola, Acer, HCL, Beetel, G'Five , Huawei etc.

New Delhi, Zinnov Management Consulting, a leading globalization advisory firm, today launched the first-ever study on enterprise mobility market in India 'The Enterprise Mobility Study - Indian Market Analysis'. The study talks about India's rapidly growing enterprise mobility market and how it is likely to change the innovation landscape over the next five years, highlighting interesting case studies, market trends and challenges.

According to the Zinnov study, the enterprise mobility market in India, which encompasses hardware, network & data, applications and associated services, has grown exponentially over the past three years. This is primarily on account of factors like increased maturity of industry verticals towards adoption, declining costs, increased start-up activity, and ecosystem play in market development.

India already has 840 mn mobile phone subscriber base with 15% smart phone penetration, and the tablet PC market in India sells about 1 lakh tablets per annum. All these point to a good devices penetration that is further fuelling the growth of enterprise mobility.

Add to this a combination of demand side trends and then seems to be no looking back, states the study. Industries leading the way in applying mobility services include banking, manufacturing, retail, hospitality and healthcare while upcoming adopters like automotive, logistics and consumer goods companies are increasingly using mobile supply chain systems to streamline inventory management, replenish stock, track demand, and manage shelf space and storage in an optimal manner. As more and more employees are getting exposed to next generation technologies and devices, the enterprises too are beginning to follow suite.

As part of the study, Zinnov also interviewed 150 key IT decision makers in India to understand the softer issues driving enterprise mobility and they had some interesting points to make. According to them, the key reasons for mobility were push from management, collaboration among employees, get more work time out of employees, pull from end users (customers or employees) and reducing communication costs. And, the business drivers for enterprise mobility were better customer service, productivity advantage, employee satisfaction and competitive advantage in that order.

DEVICES PENETRATION IN INDIA

• There are about 840 Million active mobiles operational in India
• 12.2 Million user base of 3G has been garnered in India
• There is an installed base of 25 Million computers in India
• Smart Phone market share is about 15% in India
• On an average of about 15 Million mobile subscribers are added every month in India
• The tablet PC market in India sells about 1 Lakh tablets per annum
• The PC penetration in urban household has reached 38%
• The laptop market is growing at a CAGR of 50%

According to Praveen Bhadada, Director - Global Consulting, Zinnov Management Consulting, "As enterprise mobility moves from being a concept to reality, a variety of innovative use cases are simultaneously emerging. It is also encouraging to see how the start-up ecosystem is evolving. Many tech companies such as RIM, Qualcomm, etc. are looking to provide seed funding and venture capital to start-ups working in the mobility space in India. Enterprise mobility in India certainly has a billion dollar potential in the next 5 years. We will see over 40% YOY growth for the segment over the next 5 years"

The Zinnov study also found out that increased adoption of majority of the mobile platforms is a key motivation factor for start-ups. As platform adoptability improves along with network penetration and connectivity, more business functions like ERP, CRM, SCM, sales force automation, unified communication and billing too are coming under the enterprise mobility ambit. This is coupled with maturing organizations that are trying to mobilize departments like HR, retail, customer service, finance and field service.

While mobility has a significant cost advantage from a business perspective, another noteworthy fact is the cost optimization within the enterprise mobility ecosystem which acts as a double bonanza for the industry. "Companies today are optimizing their mobility investments with innovative approaches such as pay per use models which will bring down operating costs. Majority of the IT decision makers we spoke to see this happening over the next two years itself, which speaks well for the industry," adds Praveen Bhadada.

NETWORK AND CONNECTIVITY IN INDIA (2010 TO 2015)

• Indian mobile data traffic to grow 4x faster than Indian fixed IP traffic from 2010 to 2015
• 28% of India's total IP traffic to be through mobile in 2015, up from 2.2% today
• Average mobile connection speed expected to reach 1 Mbps by 2015
• Over a billion connected devices by 2015
• Multifold increase in broadband speed

Source: Cisco

Striking a note of caution, the Zinnov study says that while the market is looking up, there are some key challenges that the industry needs to overcome to ensure that the enterprise mobility growth story is intact. Today, the average salary per employee in India is relatively very less and it is difficult for enterprises to give devices more than the salary of the individuals. Hence adoption is restrained to only senior level.

Also, as Indian customers are found to be very demanding, the expectation is to get everything delivered on the phone. Some other challenges are lack of standard supply chain in most industries, vernacular content, absence of key large payers focus making it difficult for core business to move to mobile applications, lack of business centric mobile applications and appropriate back-end integration of applications. And last but the not the least, successful India case studies are not being preached in the market, states Zinnov.

However, sustained initiatives and innovation by all the stakeholders in the ecosystem including hardware vendors, independent service providers, value added re-sellers, system integrators, wireless carriers and middleware players can ensure that the above challenges are easily met. They are only going to gain from the fact that network and connectivity will significantly improve in India over the next 5 years.

About Zinnov Management Consulting
Founded in 2002, Zinnov - meaning Zeal in Innovation - is a leading management consulting company providing advisory services in the area of Global Sourcing, Emerging Markets Expansion and Human Capital Optimization to Fortune 1000 and reputed SMB companies. Zinnov works collectively with clients to tackle prevailing organizational challenges by analyzing the changing dynamics, improving performance, and building institutional capability. The services delivered to its clients through advanced reasoning and analytical techniques, provides solutions that help in integrating organizational vision, business definition and processes.

For more information contact:
Kinjal Chhetri Panwar
Senior Marketing Manager, Zinnov
Email: kinjal ( @ ) zinnov dot com
Phone: +91 9466132313

http://www.zinnov.com

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