Enterprise Mobility Budgets & Return on Investment
Mobility investments are rising and, while budgets will inevitably vary in size, practitioners are certainly ready to invest. Here, we cover the prospective budget spends of those who are planning to invest in mobile solutions over the next 12-18 months.
Over 150 Enterprise Mobility professionals contributed information towards our recent report, with almost a quarter of respondents revealing they have financial resources of up to $250,000 to spend on mobility solutions. Additionally, 20% plan to invest between $250,000 and $500,000, while just over 17% have allocated more than $1.5m for mobile solutions.
We then used this information to look at the average deal sizes that solution providers typically see at this point, and compared the two. For 36% of solution provider respondents, the average deal size is between $100,000 and $500,000, while just fewer than 30% see deals of between $50,000 and $100,000. Whilst budgetary decisions for an organisation's technology were once made almost universally by IT, this is beginning to change, with other departments starting to take more control of investments in mobile solutions.
A recent survey by App Central saw 67% of respondents indicate that the budgets funding mobile apps were coming from business units, such as marketing or executive leadership, outside of IT's remit. This telling information was pointed out by Mike Jennett, Senior Program Manager, Enterprise Mobility App Deployment at HP IT.
Furthermore, when it comes to understanding ROI, GE Capital's Senior Enterprise Architect Tim Hundt states: "You can generate ROI by implementing the right mobility strategy. It is key to have the correct security in place, or your ROI will be affected. Consider your user and assess what it is they really need, and try to understand how to engage your user and empower them to do more."
While many CFOs look to the difference between value and cost, ROI is no longer just about financial gain. Determining ROI has become a complex process. More than anything, an ROI exercise needs to be aligned to business objectives. It is equally critical that enterprise leaders include the employee perspective - what it is, and what it may not be. ROI isn't just about money saved, or new revenue generated, ROI should also be about employee acquisition, retention and morale.
"Good return on investment is seeing the strong results that come from thinking outside the box and investing in tools and resources to innovate your organisation", says Bob Egan, Executive Advisor on Mobile Business Strategies and Technologies, Founder of the Seraphim Group.
It is believed by some experts that new metrics need to be put in place by many organisations to measure the impact on the business success of continuous investments, and evaluate what can be used to measure the return. Chris Marsh, Principal Analyst at the Yankee Group said: "In this more agile cycle of product and service development affecting this shift, it requires a new, more agile middleware. It is crucial for both vendors and procuring enterprises to demonstrate the Return on Mobility (RoM) that these platforms can provide."