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In any other market, a growth of 30% y-o-y would be considered a
good, if not an excellent growth rate. But, in a country with 165 mn mobile
phone subscribers, the fastest growing among all emerging markets, that kind of
growth in the enterprise mobile application solutions market at such a small
base can have only one conclusion: this market has not really crossed the basic
threshold. Indian businesses havent really woken to the benefits of mobile
applications. While a few early adopters have started pilot projects, investment
commitment is still hard to come by.
According to a study by Forrester Research, business
productivity improved by over 60% through the use of mobile applications,
especially mobile email. In fact, according to the same study, there was an
average gain of 55 minutes per employee by using mobile email application like
Blackberry services.
Apart from employee productivity, customer services improve
immensely by the use of such applications. According to the same research
finding, customer service improves by 36% based on more responsive support, and
the entire company operates 20% more efficiently due to smooth flow of the
latest information and real-time communications.
| The
Indian mobile enterprise market is worth only around Rs 200 crore |
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Blackberry is in the process
of formalizing agreements with operators for mobility applications |
Globally, the mobile applications space is really exploding in
terms of innovations and market size. Multinational companies are using the
power of mobiles to automate their sales force or to do real-time tracking of
goods and products. As a matter of fact, many companies are marrying RFID based
applications with cellular technology, and making them more effectual.
Even the Asia Pacific market is increasing quite dramatically.
According to estimates, the mobile enterprise market is currently estimated to
be worth around $23 bn and would grow to around $30 bn by 2010. Much of the
action though is happening in our friendly neighborhood. China accounts for
around 50% of this market, with the manufacturing sector using mobile
applications extensively. A lot of it is also driven by MNCs that bring along
with them applications that have been developed in the US and the Europe.
Australia and Korea also account for a substantial market share. This figure
does not include Japan, which obviously is a big market for mobile applications.
In contrast, the Indian mobile enterprise market is worth only
around Rs 200 crore, according to Dataquest estimates. It grew by about
30% in FY 07. Dataquest includes applications such as field force
automation, customer relationship management, mobile ERP and customized
enterprise applications in this. This figure includes only the investment made
by enterprises on applications and does not include either investment made by
service provider on applications or that made by enterprises on buying services
from the mobile service providers.
The Devices
Across the globe, email is the most popular of all applications. Business
executives have taken up to email like none else. The ability to check, send
emails, and be connected all the time has empowered the workforce. And, the
undisputed leader in this domain is Research In Motion (RIM), the provider of
the Blackberry. Over the last few years, Blackberry has completely dominated the
space in the mobile email segment. RIM accounts for close to 70% of the mobile
email market segment. As of April 2007, there were over 8 mn Blackberry users
worldwide. But, its leadership is under threat from a multiple of quarters,
namely with HP, Nokia, and others launching a slew of PDA phones.
As per estimates the global addressable market for enterprise
mobile e-mail would be around 260 mn subscriptions, while global mobile operator
revenues from mobile e-mail and personal information management are expected to
surpass $600 mn by 2009, over three times those of 2005.
Back home in India, Blackberry has been a recent entrant. It is
in the process of formalizing the agreements with all the operators, it has
already signed up quite a few, the chief ones being Vodafone-Essar and Airtel.
Yet, it is highly unlikely that it will dominate the mobile email market in
India the way it has done in the US and Europe, as there are a lot many options
that are available. RIM also offers Blackberry Services, which can be bundled
with other PDAs.
| The other big factor has
been the low RoI leading to little incentive for application developers
for Indian markets. This results in many vendors targeting the overseas
market rather than the Indian one |
Indian companies are using a variety of methods to let employees
connect to the mail server, While Blackberry is a popular platform, a lot many
are also opting for other GPRS-based push e-mail services. Yet, without an iota
of doubt, mobile email happens to be the most popular of all enterprise
applications even in India.
Logging on to Applications
The insurance and pharma sectors have been the first to adopt mobile
applications. A lot of companies have gone in for ERP-centric applications, like
order management and claim settlement. Companies like Tata AIG and Glaxo
SmithKline have employed the use of mobile phones in a major way. In fact,
ValueFirst, an enterprise mobile solutions vendor, has worked in close
coordination with a plethora of companies from the same vertical. Page(s) 1 2
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