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

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India's Rapidly Evolving Enterprise Mobility
Market To Touch Usd 1 Billion By Mid-2015 Zinnov
Study
(1888PressRelease) 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. 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.
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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.
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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.
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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.
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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 ( _at_ ) zinnov dot
com Phone [phone] http//www.zinnov.com
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