/531_ca_technologies_wp_mobile_economic_time_0911 by Interbrand

A CA TECHNOLOGIES SURVEY | JULY 2011

WHITE PAPER September 2011

Mobile Economic Time The new business opportunity resulting from the increased adoption of mobile devices Follow us on Twitter at #CA_MET

Professor Chanaka Jayawardhena BSc, PhD, MCIM, Professor of Marketing

Kobi Korsah, Marketing Director Service Assurance, CA Technologies EMEA

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Contents

Foreword............................................................................................................................................................................................................................. 4 Executive summary........................................................................................................................................................................................................ 5 Section 1: Mobile Economic Time (MET)............................................................................................................................................................ 6 Section 2: Identifying trends which contribute to the MET phenomenon............................................................................................ 9 Section 3: European snapshot.............................................................................................................................................................................. 12 Section 4: The challenge and opportunities of MET to businesses........................................................................................................ 17 Section 5: The future................................................................................................................................................................................................ 19 Section 6: Ensuring a positive and secure mobile online experience with MET............................................................................... 20 Section 7: Conclusions............................................................................................................................................................................................. 22 Section 8: CA Technologies can help.................................................................................................................................................................. 23 Section 9: About the authors................................................................................................................................................................................ 24 Section 10: Definitions............................................................................................................................................................................................... 25 Section 11: Country summaries.............................................................................................................................................................................. 26 Section 12: References............................................................................................................................................................................................... 30

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Foreword

The use of Smartphones and Tablet PCs across the globe is increasing as more people than ever use them to shop, work, network and play anytime and anywhere. Today, it is commonplace to find consumers and knowledge workers using their mobile device to check email, manage their finances, download applications and network on their way to work on a train or bus. Two decades ago, such a scenario would have been science fiction.

Smartphones and Tablet PCs represent the convergence of information and communication technologies. This convergence is creating opportunities and challenges for both business and technology vendors. In this context MET provides for growth provided they adapt to the new environment quickly enough, capture the attention of the mobile device users and meet (and hopefully exceed) their expectations. However, the indications are that many businesses are not best positioned to take advantage of the emerging opportunity. Real world Smartphone user experience is fraught with problems. With greater adoption of Smartphones and Tablet PCs, and increasing sophistication of these devices, it is highly likely that users will become more discerning and adopt a zero tolerance attitude towards the brands they engage with. Therefore, satisfying consumer demand in the future may prove to be a harder task than it currently is. Those businesses who partner with the competent IT vendors to deliver exceptional experience to mobile device users will grow and flourish as MET becomes more relevant to business success.

Smartphones and Tablet PCs have enabled users to convert “dead time” into “mobile purchasing, working, networking, and play moments.” This new time zone has been christened “Mobile Economic Time (MET),” and it has the potential to make Smartphone and Tablet PC users more productive, and hopefully better decision makers with the wealth of information they can now quickly and safely access. A conservative annual estimate of Mobile Economic Time (Twitter hashtag: #CA_MET) is calculated to equal almost 38 working days for every Smartphone user (see page 6). By anyone’s imagination, this is a huge part of one’s working life in any year. Mobile Economic Time illustrates that empowered Smartphone and Tablet PC users will be able to make better use of their dead time to do more in their day-today lives—from routine work related tasks to online shopping, banking and networking.

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Executive summary

Challenge

• Ensure a positive and secure online customer experience to enhance brand loyalty, increase productivity and generate sales

The growing use of Smartphones and Tablet PCs across Europe has enabled consumers and knowledge workers to convert their dead time into “mobile purchasing, working, networking moments.” This is what CA Technologies defines as “Mobile Economic Time” or MET, a new “time zone” which presents a wealth of opportunities for businesses to better engage with customers who use Smartphones and Tablet PCs during their dead time to engage with brands whilst at cafés, airports or on a train for example. The challenge is simple: How do businesses or brands embrace this new Mobile Economic Time to drive revenue and growth, whilst meeting expectations and maintaining an excellent and secure customer experience?

• Proactively assure and manage their mobile presence at a time when many Smartphone and Tablet PC users have no limits on their data consumption and appetite for mobile applications, particularly during MET

Benefits Mobile Economic Time is no longer restricted to Smartphone users just texting, making phone calls, playing music or social networking. Over the next few years, more Smartphone and Tablet PC users than ever will be using their “always-on” devices to transform the way they interact with brands and businesses. The benefits for nearly every kind of organization are endless—from increased customer retention and acquisition to enormous revenue generating and market growth opportunities.

Opportunity Positioned as a “wake-up” call to business, this report explores the phenomenon of Mobile Economic Time (MET) and what businesses must do to ensure a positive and secure mobile online customer experience. From retailers, banks and airlines to price comparison sites and social networks, the challenge and opportunity for brands to better engage with customers across all segments has never been more profound. With the growth in Smartphones and Tablet PCs, more people than ever can now shop, work, play and network anytime and anywhere. According to Gartner Press Announcement1, `Worldwide Media Tablet Sales to End Users’, October 2010: “Worldwide media tablet sales to end users are forecast to reach 19.5 million units in 2010, according to Gartner, Inc. Media tablets are poised for strong growth with worldwide end user sales projected to total 54.8 million units in 2011, up 181 percent from 2010 and surpass 208 million units in 2014.” With just over a fifth2 of all mobile phone units shipped falling into the Smartphone category, brands must:

#CA_MET ca.com/gb/metstudy

• Manage the risks associated with a poor customer experience that will threaten revenue and growth opportunities

Mobile Economic Time 5

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Section 1: Mobile Economic Time Calculating Mobile Economic Time

The pressure in our private and working lives to do more with less time has fuelled the rapid adoption of Smartphones and Tablet PCs. Businesses are tapping into this phenomenon like never before, engaging with their customers and employees—using Location Based Service to track goods and staff, sell and advertise goods and services anytime, anywhere knowing that their captive audience is no longer restrained by a traditional fixed point PC experience.

To illustrate the significance of Mobile Economic Time we have identified three instances when a Smartphone or Tablet PC user is most likely to use their device: 1) During commercial breaks while watching TV 2) Leisure “me time” with the Smartphone or Tablet PC having coffee, relaxing, etc.

Individuals can now manage their finances, access their corporate intranet and shop while commuting or waiting for friends in a cafe. They can make an impulse purchase— perhaps of a product whose advertisement they have just seen on a billboard right across the street while waiting at a bus station.

3) Commuting via public transport A study3 by the Organisation for Economic Co-operation and Development (OECD) concluded that, on average, individuals spend just over five hours a day on leisure activities, including two hours watching TV. With respect to commuting, the World Bank estimated (in 2005) that on average, people spend 40 minutes commuting, one-way, each day and 35% of these people used public transport4. These three activities were deliberately chosen for their simplicity, and to demonstrate that our calculations are conservative. To put MET into context, we express it in “working days.” According to the aforementioned OECD study a working day is 7.38 hours and people work for 41.6 weeks in a year.

Knowledge workers are able to attend to their email or write a blog during Mobile Economic Time (MET), thus increasing employee productivity. The possibilities and opportunities for businesses and consumers are almost endless. Until the advent of Smartphones and Tablet PCs, commuters were limited to working on their laptop, reading a book, a magazine or a newspaper or listening to music.

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Mobile Economic Time calculation Our calculation shows that MET is significant for the user and presents a growing opportunity for businesses to tap into this new time zone by offering a first class online customer experience via a mobile device application or browser.

Watching TV [1] • Number of hours watching TV hours per day........................................................................................................................................................... 2 • Annual commercial breaks, in hours [assume 12 minutes of commercial breaks per program hour]: (2*12/60*365)................................................................................................................................................................................................................ 146 • Annual MET during commercial breaks, in hours (assume 25% of commercial break time is used by a Smartphone user): (146 * 25%)..................................................................................................................................................................... 36.5

Leisure “Me-Time”: Having coffee, relaxing, etc. [2] • Number of hours other leisure time (me time) per day........................................................................................................................................ 3 • “Me time” with Smartphone [assum 20% of other leisure time in a day] in hours: (3*20%)........................................................... 0.6 • Annual MET—me time with Smartphone in hours: (0.6*365)..................................................................................................................... 219

Commuting [3] • Time people spend commuting [minutes].............................................................................................................................................................. 80 • MET in minutes [assume Smartphone usage for 25% commuting time]: (80 *25%)............................................................................ 20 • Number of working weeks in a year ..................................................................................................................................................................... 41.6 • Annual commuting MET, in hours : (20/60*5*41.6)...................................................................................................................................... 69.33 • Proportion of people using public transport [assume same proportion of Smartphone users using public transport]............................................................................................................................................................................................... 35% • Annual commuting MET, hours: (69.33 *35%)................................................................................................................................................ 24.27

Total Annual MET hours (Watching TV, “Me Time” and Commuting): [Add 1 + 2 + 3]................................. 279.77 Annual MET expressed as working days (as per OECD Average working hours): (279.77/7.38)................... 37.91

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Device and service performance issues— the implications for MET

brands are compelled to use social media to “crowdsource” input to product development and customer loyalty efforts. Optimum performance of services delivered to smartphones is business critical. Currently the real world Smartphone user experience is fraught with problems. The real issue is that delivering a business service to a smartphone relies to large degree on the coordinated performance of complex and dynamic technologies which live outside the device. Feature rich as smart phones and tablets are, they are interfaces to a “supply chain” which goes much deeper than the capabilities of the device (or device OS) or mobile applications through which interaction with a service occurs. Any weaknesses in that chain directly impact service quality, performance and the user experience. The potentially negative implications for MET are clear.

As consumers decrease time with traditional touchpoints and increase engagement with newer and emerging ones, innovation is driving dramatic changes in consumer and business behaviours. For example in February 2011 David Smith, Managing Director at IMRG (Interactive Media in Retail Group), said: “Developments in mobile commerce have led to the phenomenon of the ever-connected consumer, who can access multiple retailer channels concurrently, while instantly comparing and contrasting with similar offerings on competitor sites. Although only 7% have provided immediate feedback to the store, people do update their friends on Facebook about being stuck in a long queue, receiving negative customer service or poor hygiene conditions. The need for high standards is more important than ever, as any individual retailer store is now a potential showroom for millions.”

The growth in Smartphone and Tablet PC adoption by consumers and knowledge workers has led to heightened expectation in terms of service and user experience. Why should online services differ in quality from a traditional PC to Smartphone? Consumers using Smartphones or Tablet PCs will apply the same zero tolerance attitude towards any business or organization with which they choose to engage with via their hand-held device or as they do with their PC. Satisfying consumer demand in the future will become even more challenging.

In October 2010 David Smith also said the growing trend of using mobile phones to surf the Web is causing the mobile channel to become a more prominent avenue for retailers. He argued that mobile applications and websites optimised for mobile phones would become more important for retailers than any other access methods. These new consumer and business behaviors driven by mobile access affect every business sector. Manufacturers must now respond to fluctuations in commodity cost and availability in real time and alert mobile sales teams; media companies have to deliver “market of one” offerings; and leading

In addition to issues with connection speeds, many Smartphone users are reluctant to make online purchases with their device because of security concerns, poorly designed mobile Web user interfaces and an unsatisfactory user experience.

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Section 2: Identifying trends which contribute to the Mobile Economic Time phenomenon Growth in Tablet PCs

A recent news article5 in the US reported that the time spent surfing the Web via mobile devices now exceeds Web browsing time on a PC. Europe is about six months behind the US in terms of mobile technology trends, so it would be safe to assume that this wave of mobile device (Smartphones and Tablet PC) usage is about to explode in Europe. But what is driving this?

The evolution of the tablet PC is similar to that of the laptop computer, the netbook, and the Smartphone: hardware vendors are selling consumers and knowledge workers new ways to use computers. However, consumers want something more portable than a laptop, more powerful than a netbook, and more comfortable than a Smartphone—and a new tablet PC could very well fill all of those needs, in many different ways across the MET zone.

Growth in Smartphones Strategy analytics6 estimates that almost 300 million Smartphones were sold worldwide during 2010. It is estimated that the cumulative effect of this sales growth meant that by the end of 2010, 1.6 billion people from all four corners of the earth had access to the mobile Internet.

According to Gartner Press Announcement, ‘Worldwide Media Table Sales to End Users’, October 2010: “Per Policy, product references are not permitted, worldwide media tablet sales to end users are forecast to reach 19.5 million units in 2010, according to Gartner, Inc. Media tablets are poised for strong growth with worldwide end user sales projected to total 54.8 million units in 2011, up 181 percent from 2010 and surpass 208 million units in 2014”.

ABI research7 estimates that this number will grow to 3.3 billion by the end of 2015, or 53% of all mobile subscribers. Taking a snapshot of specific regions, Comscore8 reports that the five major European economies (UK, Germany, France, Spain and Italy) commonly referred to as the EU5, recorded a 32% growth of Smartphone ownership from 2009 to 2010. This study shows that currently 22.6% of all mobile phones fall into the Smartphone category representing 58.3 million users.

Although that is still relatively small, the PC industry has every reason to worry because of how quickly the Tablet PC sector is growing. Goldman Sachs9 calls tablets “one of the most disruptive forces in computing in nearly three decades.” It predicts that as many as 21 million people will buy tablets instead of laptops this year, jumping to 26.5 million next year.

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What are consumers using Smartphones for?

they are already doing. More than 50% of respondents claim they have used their mobile for research in the last year, while 88% say they have used desktop computers for the same purpose.

In the UK, 85%10 of Smartphone users have used their devices in the process of shopping. This survey reports that Smartphones are used to find out further information about a product or a service from an online retailers website (36%) or to compare prices of a potential purchase across retail outlets (34%). Mobie Stats11 survey estimates that Smartphones are responsible for nearly 11% of all traffic to a website.

mCommerce Using a Smartphone to shop online is often referred to as â&#x20AC;&#x153;mCommerceâ&#x20AC;?. In this report, we use the term mCommerce to define a range of activities including mobile online shopping, mobile payments, software-based proximity payments, Locations Based Services (LBS) and Near Field Communication (NFC). mCommerce barely made a ripple until 2008 which coincided with the opening of the App store by Apple Inc. This event saw an avalanche of online retailers, banks and IT vendors launch their own applications to drive consumers to use their Smartphones to access online services. The growth of eCommerce has in turn fuelled mCommerce, making up roughly 5%-6% of all retail and is growing worldwide, with significant growth in the Asia-Pacific region and in Europe. This growth has had a major influence on Smartphone user behaviours, particularly their shopping strategies. An early trend that emerged was the use of Smartphones for comparison shopping.

This survey also reports that 52% of all social media interaction is from a Smartphone. Due to the ever increasing functionality of Smartphones, they are replacing a number of single-use devices, including PDAs, GPS, digital cameras, portable videogames, MP3 readers and personal radio players.

Customers are actively comparing products in bricks-andmortar retail stores versus online shopping prices using their phones. The speed of consumer adoption and the resulting behaviour has prompted many to argue that Smartphone enabled eCommerce sites are a logical extension of familiar PC-based online eCommerce experiences. Therefore, online shopping using Smartphones can be considered to be a complimentary subset of general eCommerce and, as a consequence will expand as eCommerce develops further. that an increasing proportion of Smartphone users13 are opting to shop via their Smartphone, even when a PC is readily available, perhaps due to the convenience and the uniquely personal experience that only a Smartphone can offer.

According to UK research by consultancy Simpson Carpenter12, as reported exclusively by Marketing Week, 27% of people say they have used their mobile to make an online purchase and nearly 50% say they would consider buying goods in this way in the next year. Hotels and travel will see the highest percentage increase in purchases by mCommerce (see explanation in the next section) in the next 12 months, followed by white goods, then groceries. Currently, just 11% of the 1,200 research respondents say they pay for hotel rooms and travel tickets on their Smartphones, but this figure is set to treble in the next 12 months. Meanwhile, 7% say they buy large appliances like refrigerators via their Smartphones, but the report predicts a 187% increase in people buying these products via mCommerce. This is a trend seen by booking website Hotels.com where consumers use mobile and desktop internet in different ways. They book on their mobiles when they need a hotel room imminently, or use mobile to search for rooms, and then make final bookings on a desktop PC. The research highlights that people are not necessarily moving away from one buying method towards another, but are using Smartphones and Tablet PCs to complement what

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The contribution of mobile network operators to the use of Smartphones by consumers cannot be underestimated. Having spent extraordinary large sums of money in acquiring 3G licences in some markets (£22bn in the UK), most mobile operators needed their customers to utilize capacity and the facilities offered by their networks. As a result, mobile operators have offered attractive data packages to Smartphones users encouraging them to use mobile data. More recently, the Smartphones themselves have become a commodity, only a useful incentive to entice consumers to sign up to certain tariffs depending on the handset they can get. The network operators have made it cheap for the consumer to surf, purchase, game, check email and update their Facebook pages during their down time.

development is a partnership by American Express who is offering discounts to its cardholders when they check-in on their Smartphones whilst in certain shops or restaurants. The checking-in behaviour is driving consumers to use their Smartphones, and we will see how that development will evolve into potential purchasing power in our next chapter.

Payment systems Payment systems are another area that offers exciting potential. Smartphones can be utilised for micro payments. Micro-payments are the concept of billing for small purchases, typically under €5 (or even under €1) or equivalent. Purchase of digital content (especially in online gaming) is a good example of an instance where micro payments are necessary. Mobile network operators are well placed for micro payment billing since they have the systems in place for collecting and billing small payments in large quantities. Software-based payment systems are another Smartphonebased payment system that is gaining momentum. These systems have the potential to dramatically lower transaction fees compared to transactions that rely on credit cards. The adoption of software-based payment systems is likely to be rapid as the payment systems normally only require some software modifications for the vendor requiring no significant capital investment for any types of point-of-sale readers or terminals. There have been a number of payment system trials around the world. According to ABI15 research, what is extremely encouraging is that nearly every payment trial that has been concluded has met with very positive response by consumers as long as the use is simple. This signifies that consumers are both ready and willing to accept mobile payment solution in significant numbers when given the opportunity.

“The platform wars” have also had a role to play in the growth of mCommerce, with vendors making it as easy as possible to develop applications for Apple, Android, Symbian and Blackberry’s OS. Consumers’ surfing and purchasing power has been enhanced by the simple array of choice in terms of who they use to do what. MCommerce is being integrated into the shopper’s journey and is used as an additional tool to research and buy across the MET zone.

Location Based Services The proliferation of Location Based Services (LBS) to identify the location of a person or object, such as discovering the nearest cash machine or the whereabouts of a friend or employee via a Smartphone is also driving the explosion of MET and the opportunities for business during this time. The New York start-up Foursquare14 launched in 2009, and the idea of “checking in” became popular despite the potential security risks. Recent figures estimate ten million users globally. E-tailers and other online businesses have been quick off the mark to embrace this trend. One recent

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Section 3: European snapshot Smartphone adoption

In most European markets, the Smartphone is subsidised as part of a package by the network provider and this has contributed to rapid uptake of devices. However, in countries such as the Czech Republic, the network operators do not subsidise the Smartphones to the extent of the UK for example. It is also relatively expensive to buy a Smartphone as a standalone unit in these countries. Where the subsidy is lower, Smartphone adoption is reduced and the devices that are available are normally only entry level Smartphones.

CA Technologies has identified MET as a global phenomenon, with varying adoption rates and different behaviours which will impact how businesses tackle these trends. By the end of 2010, the French (45.6%)16 along with the Italians (45.9%)17 led Europe in Smartphone adoption. The French in particular have had a long tradition of adopting innovative solutions in this area. This is best exemplified by the Minitel, a Videotext online service, launched and used for online ordering almost 30 years ago. Germany, Europe’s biggest economy, reported that in 2010, 5.1 million consumers became Smartphone users for the first time (recording a healthy growth of 65% over 2009). Currently 23% of all German consumers are Smartphone users18. By the end of 2010, one in four German households “owned” a Smartphone—double the amount compared to 2009. Expectations are that the rate of growth will accelerate so that by the end of 2011 ten million new Smartphones will be sold in Germany19. Spain (37.6%) and UK (34.3%) are other European countries with relatively high adoption rates20, while Belgium (16%)21 shows the potential for growth.

The next two years will fuel Smartphone adoption as 4G begins to rollout across Europe with faster and more reliable data transfer enhancing the Smartphone experience. However, due to the prevailing economic outlook, it is expected that there will be a significant slowdown, perhaps a contraction in the Smartphone uptake in markets like Portugal. Another potential concern is that projected growth may be hindered due to network provider practices. It has been observed that in some markets, network operators appear to be developing a less transparent subscription model. For example, in the Netherlands, it has been reported that there will be an extra charge for certain conflicting services such as WhatsApp and Skype.

In Germany one in twelve employees owns a Smartphone for professional purposes (work mobile), provided by the employer22. This is a low figure compared to other developed Smartphone markets, and unsurprisingly, Smartphones are a type of status symbol amongst executives. In fact whether or not a Smartphone is part of the package has become such an important aspect, that in the negotiations of the contract of employment they are explicitly mentioned. This is all the more surprising, as there is a widespread acceptance that Smartphones enhance employee productivity.

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Smartphone Adoption Across Europe 50% 40% 30% 20% 10% 0% Italy France Spain

UK Germany Belgium

*Data based on desk researchâ&#x20AC;&#x201D;see Section 12

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Smartphone user behaviour

The argument could be made that Smartphone users make better shoppers, irrespective of whether they are shopping via their mobile or shopping on the high street, as they make purchase decisions in light of better and more information.

Clearly, the enhanced capabilities of the Smartphone and Tablet PC have meant that European users are able to do more with their devices. Not only has individual user behaviour changed, individuals are carrying out more activities and experiencing more as a direct result of Smartphone ownership. Smartphones and Tablet PCâ&#x20AC;&#x2122;s have enabled their users have become more productive and efficient.

Amongst UK Smartphone users, popular categories of shopping included hotel rooms, clothes, groceries and entertainment, but only a few buy large appliances like refrigerators via their Smartphones27. This pattern is repeated elsewhere in Europe. The ThinkMobile study shows that amongst the more frequent and low value items that consumers buy include train tickets, cinema, and theatre tickets.

At a very basic level, a Smartphone allows the user to connect to the Internet. A survey by ThinkMobile shows that 59% of French Smartphone users connected to the Internet on a daily basis, a figure that is higher than both the UK (55%) and Germany (45%)23. This survey also shows that on average the French are more adept at using the functionalities of Smartphones compared to their European cousins. Apart from browsing the Web, Smartphones users connect to the Web to engage in social networking24 and shopping. At the other end of the spectrum, Smartphone users in Israel keep Web surfing to a minimum, as the cost of doing so is prohibitively high. They confine their online activities to downloading emails, which is usually part of an inclusive package.

As more consumers and knowledge workers realise the power and usefulness of their devices, they are expected to conduct an increasing number of their day to day activities via their Smartphone or Tablet PC, particularly during MET. For example, more users will shop as a greater number of brands make mobile applications available for their (online) stores and make their website more Smartphone and Tablet PC friendly. Consumers have higher expectations of mobile websites in terms of functionality, development, ease of use, security and speed. Higher network reliability brought about by the arrival of 4G will undoubtedly boost a userâ&#x20AC;&#x2122;s reliance on the device in their day to day activities. However, the prevailing economic conditions are likely to influence mobile device led shopping in a number of markets. Following the expected slowdown of Smartphone adoption in Portugal, a corresponding slow down in Smartphone shopping can be expected.

A salient aspect of Smartphone driven shopping is the degree to which shopping processes have changed. Research indicates25 that a typical French consumer will compare prices in real-time while shopping, consult blogs or experts about products and services. They will also use their Smartphones to search for alternative sources for the same products and services at a more attractive price, download vouchers for sales promotions, consult usersâ&#x20AC;&#x2122; guides and recommendations, and as much as 73% of consumers seek advice from other customers.

Another concern revolves around payment systems, and their adoption by users. In France, in spite of higher adoption, a significant bottleneck to mCommerce appears to be lack of mobile payment systems in place. The primary impediment to mobile payments appears to be the lack of an agreement between the banks and the mobile operators who are keen on preserving the status quo for the fear of losing money to the other.28

Research26 from the UK reveals that 81% of Smartphone users have used their device for one or more elements of the shopping process. What we are observing is that Smartphone users are seeking, collating and digesting more information compared to the traditional shopper.

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forward with the auctioning of 4G spectrum, as well as the re-farming of 2G spectrum so it can be used for 3G services. The UK is to auction 250 megahertz of bandwidth in the first half of 2012, ready for 4G services to start in 2013. The new frequencies are split between 800 megahertz, freed by the planned end of analogue TV services in 2012, and 2.6 gigahertz. It is worthwhile to consider potential impediments to the rate of adoption. Faster and more reliable data transfer augurs for a more positive Smartphone experience.

The readiness of businesses Increasing Smartphone and Tablet PC adoption across Europe is good news for businesses. As with most opportunities, this growth also presents a large number of problems and challenges for brands in attempting to seamlessly integrate the multitude of platforms and channels. As observed above, users expect a consistent reliable service experience.

There is a collective anticipation that Europe-wide initiatives, such as the European digital agenda32, which maps Europeâ&#x20AC;&#x2122;s strategy for a flourishing digital economy by 2020 would provide finances and strategic vision through national governments will drive the industry forward. A good example of this can be found in the German context. Here, there is a strong emphasis being placed by the government to drive the country forward by defining tasks, projects and providing focus for the industry. To aid the process and help the industry the legislature is taking an active role in supporting R & D initiatives and is committed to the improvement of media competence for all citizens. The government is working towards efficient data exchange between the business and the government. Looking into the future, the German government has set targets and specific programs that aim to foster economic growth through the development of the Smartphone led ICT-industry, and a cornerstone of this is the nationwide introduction of high performance networks. Such support and vision is extremely important and necessary for the industry to grow.

It would not be an exaggeration to state that brands across Europe have a long way to go before they can claim to be offering an adequate service experience to customers. In France, where the Smartphone penetration is the highest across Europe, it has been estimated29 that only 16% of online brands had a dedicated Smartphone specific website and only 39% had incorporated mobile applications. In Germany, the largest European market, almost four-fifths30 of Smartphone users have problems with their applications. Online brands working alongside network providers have to identify problems and find solutions before the end user is affected. In fact, very few organisations have reached a level of sophistication in their mobile access strategy, except perhaps in the gaming industry which has adapted its business model to mobile platforms31. There is optimism that with the rollout of 4G across Europe user problems related to network reliability and consistency will improve substantially. For instance, UK communications regulator Ofcom has been given the go ahead to move

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Currently Smartphones have a 25% market share By 2013, 9 out of 10 mobile phones will be a Smartphone

Smartphone ownership increased by 70% between 2009 and 2010 Smartphone access accounted for about a quarter of time spent online by UK web users in mid-2010

55% of French adults will use a Smartphone by 2015 72% of Smartphone users go to clothing shops after having been connected to the web

In 2010 there were 5.1 million new users, an increase of 65 % over 2009 49% of “Smart-Native” prefers the mobile web to the internet access via a stationary computer

In 2010, Smartphone sales represented 27% of all mobile phone sales 64 out of 100 Portuguese users access the Internet on their Smartphone

20 million Smartphone users, an increase of 52% compared to the same period of 2010 73% prefer to use their Smartphone to access internet when they are at home, in spite of having a home computer

Smartphones have a 37.6% market share 27% growth in Smartphone penetration from 2009 to 2010

Mobile Economic Time

ca.com/gb/metstudy

*Data based on desk research—see Section 12

Twitter: #CA_MET

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Section 4: The challenge and opportunities of MET to businesses In a study carried out by Vanson Bourne on behalf of CA Technologies in November 2010, it was found that more than 80% of business and IT leaders had suspicions that the online experience delivered to their customer was inadequate. These businesses paid a heavy price for their lapses, with a third losing employee productivity and an almost similar proportion was of the view that they had lost revenue. It was found that most of the organisations interviewed were suffering from productivity issues and only 27% actually have service level agreements (SLAs) relating to the user experience. This is further substantiated by the revelation that more than 60% of the organisations questioned were unable to get to the root cause of lost revenue or reduced employee productivity.

Please see Appendix for Country by Country Summary

Mobile Economic Time and learnings from CA Technologies Web Stress Study The CA Technologies Web Stress Study identified that poor online shopping experiences contributed to increased consumer stress levels. It was observed that shoppers had to concentrate more when using badly performing websites leading to greater agitation and stress. Three quarters of shoppers blamed the organisation they were interacting with when an online application failed. Consequences of such failures were significant: two-fifths went to a competitor and almost an equal proportion abandoned the transaction. Only a fifth would go on to report the problem to the retailer. As part of a scientific experiment and in partnership with Glasgow Caledonian University, CA Technologies was also able to prove that many consumers experience “Web Stress” when trying to make an online purchase.

These findings suggest that organisations need to have their own measures in place to understand how their mobile Web and associated applications are performing from the customer’s point of view.

If despite two decades of development businesses are still finding it a challenge to provide their customers with a positive online experience, how will they assure the quality of the mobile online experience driven by wide scale adoption of Smartphones?

CA Web Stress Index, Accessed July 21, 2011, http://www.ca.com/gb/content/ campaign.aspx?cid=212132 It’s Official—‘Web Stress’ is Bad for Business, Accessed July 21, 2011, http:// www.ca.com/gb/content/campaign.aspx?cid=229165 Accelerating Growth through and Exceptional Customer Experience, Accessed July 21, 2011, http://www.ca.com/gb/content/campaign.aspx?cid=245719

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Risks of poor user experience

the purchase from a competitor, and less than a tenth attempted to complete a transaction second time round.

Following The CA Technologies Web Stress Study, we already know that the cost to business and the economy of not being able to provide a positive user experience is high. Not only does a negative experience influence brand reputation and loyalty, but it also has a significant impact on sales with three quarters of consumers leaving the online business altogether.

The picture that is emerging shows that the Smartphone user experience is best described as well below par. However, in spite of these shortcomings mCommerce has grown rapidly. It then stands to reason that the growth in mCommerce has been in spite of unmet user expectations. It is likely that with the widespread adoption of Smartphones, users are likely to be more exacting and selective as they become more knowledgeable.

Furthermore, as many as two-fifths of consumers who have had a poor user experience will go to a competitor and an equal proportion of consumers will abandon the transaction entirely. Only as little as a fifth would go on to report the problem to the business. These findings are corroborated by a Brandbank33 study, where it was observed that slightly over a third of dissatisfied customers sought to make

Organisations that best understand changes in consumer behaviours and expectations, those that respond to macro-economic pressures and those that recognize the significance of MET will be best placed to benefit. Those organisations that do not grasp these emerging trends will simply fail to keep up with customers.

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Section 5: The future Sextuple play

Advances in mobile technology are already having a massive impact on how consumers and knowledge workers are engaging with brands and increasing their productivity during MET, and the trend is likely to increase with further developments.

Dr. Hossein Eslambolchi34, Chairman & CEO of 2020 Ventures and former chief scientist, CTO and CEO of AT&T thought provoking piece Top 10 Trends for the Next 15 Years—And Why They Matter Urgently was featured in TeleManagement Forum’s inside leadership magazine earlier this year. Eslambolchi highlights what he describes as sextuple play as his top future shaping trend. Sextuple play is phone calls, broadband, IPTV and mobile, plus sensory-based services (for example, applications in medicine and construction), plus financial services. He goes on to say that “these two new categories cannot tolerate latency in the networks, nor packet loss. Real-time and reliable are the key words here. We need to be thinking now how we change the Internet to support these types of functions.” We would have to agree.

Near Field Communication The incorporation of Near Field Communication (NFC) technologies presents further positive developments for mCommerce. Admittedly, NFC is a more sophisticated technology that will have a lot more uses than as a facilitator of mCommerce. NFC can facilitate payment systems, and enable Smartphones to act as a credit card, act as a receipt or a ticket, a boarding pass, a coupon and so on. While the consumers in general will gain from this development, there are likely to be a number of players that will lose out. Mobile network operators who would have benefited from the payment system itself or generated revenue through the flow of data could be omitted from transactions altogether. Just as hardware is a commodity, the network service with data passing through it, will become a commodity, service providers will need to negotiate a fee for monetary transactions which a user completes whilst using the network, in this way, a service provider will protects its margins. Similarly, credit card companies such as Visa, MasterCard and Amex will observe their involvement with such transactions diminish considerably. Also as in many countries Smartphones are now used for paying parking etc, Israel see that transactions won’t take place over the web, but as barcode readers— phones will automate payment that way.

He also highlights Advanced Simultaneous Speech Recognition and Translation—where innovation is most rapidly accelerating—as major source of traffic on the horizon. “After more than a century of heavily text-based communications, we’re moving into a new era of speech communications propelled by huge advances in speech recognition. It’s an area where the rate of innovation is five times that of any other area of IT and communications, and it’s going to transform the way we talk to each other.” This area in particular will be far less tolerant of user experience issues caused by application slowdowns or latency, jitter or packet loss in networks.

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Section 6: Ensuring a positive and secure mobile online experience with Mobile Economic Time Given the rapid pace of change in today’s global markets— and the central role that IT is playing in this change—IT must be able to do things it never had to do before, such as:

3) If every risk turns into an outage, you will find your organization continuing to function reactively. By proactively managing service quality risk, you can offer predictable IT services and maintain the robustness you expect of your infrastructure.

• Handle rapid business and technology change with relative ease;

Managing untamed complexity

• Assimilate new enabling technologies and service delivery models as they become available, while also extending existing investments; and

The complexity within existing service delivery environments is already beyond human scale. Smartphones, Tablet PCs, mobile applications, mobile Web and cloud computing—are all by-products of convergent advances across communications and information technologies. Whist they incline toward one another, they continue to add to the complexity. The mobile cloud is emerging and will be hugely beneficial but it also poses difficult questions about the complexities of reliance on multiple service providers in the delivery of a business service as a priority.

• Empower employees and customers to use new devices and access new services with confidence, uninhibited by worries about risk. Failing to secure and manage end-to-end service availability and the 24/7 services you deliver to your target audience across all channels, including mobile, means that you risk frustrating your customers and loosing revenue and growth opportunities—especially with those customers passing through the MET zone.

As organisations look to take full advantage of MET and these game-changing tools they need a powerful lens through which the quality of real end-user experiences, interactions and transactions together with the performance of applications can be viewed and managed as a single entity.

By only managing aspects of services and not the glue that holds them together, you will find yourself throwing resources at problems, not quite sure what will work. This is costly to your business as it creates wasted effort. More importantly it will impair your organization’s ability and readiness to exploit sizeable new opportunities such as MET.

1. Gain comprehensive real-time performance insight: Capture and analyse data from applications, devices, and the network itself to provide visibility and control across a variety of computing platforms from mainframe to physical and virtual to cloud. Passively leverage existing instrumentation to eliminate overhead and maintenance cost.

1. Invest in a service assurance management tool that paints a clear picture of your infrastructure and aligns components and applications to services. Not only will you be able to quickly correct service impacting issues, you will be able to prioritize which fixes will relieve the largest service impact. 2. Invest in a service assurance management tool that manages, security, service quality and risk to service delivery. It is important that issues affecting service quality and security be fixed immediately, but it is just as important that issues posing risk to your ability to deliver services are also fixed quickly.

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2. Turn data into actionable service risk intelligence: Broad and deep real-time analysis of performance data is essential for service assurance. It reveals baseline deviation, trends, thresholding, anomalies, and alert conditions—across data sources, applications, traffic, devices and unified communications. This is invaluable for both pre-emptive and forensic optimisation.

4. Finally consider the downside of not dealing with the problem: In order to understand the causes and consequences of business complexity, Warwick business School recently created the Global Simplicity Index™35. This insightful study compiled by world-renowned academic Simon Collinson, Professor of International Business at Warwick Business School, revealed how complexity already impacts business profits to a tune of over $237 billion for the Forbes top 200 firms.

3. Eliminate disparate data sets and constant finger pointing: Required is a “single-source” of truth for all stakeholders with granular drilldown navigation along with a portal that coordinates reporting across data sources, centralizes administration, and provides role-based views into performance to drastically reduce mean-time-to-repair and link network performance data directly to SLAs.

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Section 7: Conclusions 21st century business— unplugged and always on

The pursuit of (customer) happiness

It has been reported that within the next five years up to 3.3 billion people across the globe could be in a position to regularly engage with brands, retailers and publishers via Smartphones and Tablet PCs—an enormous opportunity for nearly every kind of organization to take advantage of MET to accelerate their business.

Mobile Economic Time is very much in tune with yet another emerging trend. In recent years the Chief Customer Officer (CCO) has emerged in a variety of organisations as a focal point for everything relating to “customer happiness.” The rise of the CCO is in response to the need to adapt as markets rapidly evolve in the face of new challenges and opportunities fuelled by higher customer expectations and the advent of new technologies. In a world shaped by digital interaction, business success and preparedness depend on astute, timely (often inspired) reaction to evolving customer and market needs. Anticipating and adapting the organization to ‘survive’ threats in service levels and to rapidly exploit new and emerging customer acquisition opportunities are a number one priority for the CCO.

Is your organisation agile enough to secure a slice? Without a profound focus on delivering superior end-user experiences and first class and secure service quality, lost revenue, diminished customer satisfaction, or damage to the brand is the prices businesses will pay for failing to acknowledge the importance of MET. Delivering superior and secure end-user experiences and first class service will boost revenue, enhance customer satisfaction, and build brand equity. In the earlier sections of this report you have seen compelling evidence for the existence of the MET zone. You have also read guidance on how organizations can ensure a positive and secure mobile online experience. To take real advantage of MET organisations must focus on delivering optimal customer experiences across multiple channels all of the time.

Could your brand capture the imagination in the MET zone? The fact is that world beating businesses are fuelled by customer happiness. Great products captivate customers BUT it is flawless execution of innovative service that keeps them coming back and telling others. Get these things right and you can turn delighted customers into avid fans and secure a reputation that captures legions of future customers. Without a fanatical focus on delivering optimal customer experiences across multiple channels anywhere and at any time someone else will be keeping your customers happy in Mobile Economic Time.

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Section 8: CA Technologies can help The Service Assurance solution from CA Technologies enable IT to proactively and reliably meet and exceed the service expectations of the business regardless of IT environment. It is comprised of Application Performance Management, which uses end-to-end transaction visibility to allow applications to deliver improved end-user experiences; Infrastructure Management, which improves your ability to predict and solve service-impacting problems rooted in systems, networks and databases; and Service Operations Management, which delivers real-time, end-to-end views across technology domains that let you understand the health of all the services you deliver to customers and what impacts those services.

For more information please visit: ca.com/gb/service-assurance.aspx

#CA_MET ca.com/gb/metstudy

Mobile Economic Time

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Section 9: About the authors Professor Chanaka Jayawardhena, BSc, MPhil, PhD, MCIM is an expert in services marketing, specifically in services delivered over Internet and mobile channels. As a consultant and adviser Chanaka has worked with a number of private and public organisations including the British and Sri Lankan governments. With more than 15 years experience in teaching and research, Chanaka has authored over 70 works and made over 50 presentations and contributions to learned academic conferences around the world. Chanaka is Professor of Marketing at University of Hull.

Kobi Korsah Marketing Director CA Technologies EMEA, is a recognised advocate in Business Service Assurance with 15 years of experience in software product marketing. He helps guide strategic messaging, and develops content illustrating the real value of application, infrastructure and network, and service operations performance management as tools for business acceleration. Before joining CA Technologies Kobi led product marketing for leading enterprise knowledge management (KM) solution vendors and co-founded a KM practice.

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Section 10: Definitions Smartphone

Mobile Online Shopping

A term used to collectively identify Smartphones, tablet PCs and ultra-portable computers.

The situation when a Smartphone is used to purchase products (physical, digital or service) or content. For mobile online shopping to take place, vendors need to develop specialized websites that contain mCommerce shopping carts, checkout, and payment capabilities and be compatible with Smartphones. Initial mobile online shopping initiatives were SMS, however in the present day context these incorporate downloadable application elements.

MET—Mobile Economic Time A concept to recognise the value of mobile time. Smartphones have given their users “new” time. Before the introduction of Smartphones, commuting to work, coffee breaks and so on could have been considered “dead” time. To recognise the advent of this new time, and to appreciate that we are empowered to do more during this time zone, we advance the notion of Mobile Economic Time (MET) zone. We formally define MET zone as the economic value of time that Smartphone technologies have enabled individuals to convert their previously dead time into mobile purchasing/working/play moments.

Mobile payments The use of a Smartphone and (mobile) phone number to purchase products (physical, digital or service) or content from a vendor. Typically payments are enabled through the Smartphone and the phone number as an authentication element, tying the Smartphone to a debit card, credit card, bank account, or mobile phone account. Mobile payment initiatives include pay by mobile, micro-payments/virtual goods, and mobile gift cards.

mCommerce Mobile Commerce, also known as M-Commerce or mCommerce, is the ability to conduct commercial transactions through mobile devices such as mobile phones, personal digital assistants and other mobile devices with a wireless connection36. The Mobile Marketing Association37 defines mobile commerce as “Mobile Commerce is the transaction of goods, services, vouchers, stored value credits or other currency equivalents such as loyalty points and mobile airtime initiated or completed via mobile interfaces or mobile networks”

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Section 11: Country summaries Germany The Smartphone market

• 23 % of all consumers are Smartphone users. • In 2010 there were 5.1 million new users, an increase of 65 % over 2009. (Both above statements attributed to http://www.comscore.com/ger/Press_Events/Press_Releases/2011/1/ Google_Android_Shows_Fastest_Growth_Among_Smartphone_Platforms_in_Germany) • 10 million Smartphones will be sold in 2011 (http://www.techbanger.de/2011/03/23/internet-mit-demhandy-nutzerzahlen-fast-verdoppelt/)

Smartphone user behaviours

• More than third of the Smartphone owners do not use the internet even once per month to gain online access. (http://www.techbanger.de/2011/01/15/23-prozent-Smartphone-nutzer-in-deutschland/) • 35 % of Smartphone-users use search engines • 50 % of these users gain Internet access via browsers, 50 % via applications. (Both statements attributed to Survey by TNS Infratest, Trendbüro for Google and Otto Group “GO SMART 2012: ALWAYS-IN-TOUCH. Studie zur Smartphone-Nutzung 2012”) • German users spend 12 Euros on average per month for applications and digital content (http://www. goldmedia.com/presse/newsroom/mobile-monitor-2011.html) • 49% of “Smart-Native” prefers the mobile web to the internet access via a stationary computer

The readiness of businesses

• 20 % of German Smartphone users have often or always problems with internet searches • 77 % of them have problems when using multimedia applications (both statements attributed to: http://www.businesswire.com/news/home/20110309005311/de/ & Video http://www.empirix.com/news/media/video/UCMsurvey_video.asp)

UK The Smartphone market

• 34.3% penetration rate (http://www.comscore.com/Press_Events/Presentations_ Whitepapers/2011/2010_Mobile_Year_in_Review) • 15 million Smartphone users in the UK (September 2010). (Emarketer) • Smartphone ownership increased by 70% between 2009 and 2010. (Ofcom’s International Communications Report)

Smartphone user behaviours

• 55% of Smartphone users went online on a daily basis (http://googlemobileads.blogspot.com/2011/06/ global-perspectives-france-leads-europe.html) • 37% of males said they used their mobile phone to go online, compared to 25% of females. (Office for National Statistics (ONS) • Google and Facebook remain the most popular mobile Websites among UK users. (comScore’s MobiLens) • Smartphone access accounted for about a quarter of time spent online by UK web users in mid-2010. (Internet Advertising Bureau) • 27% of people say they have used their mobile to make an online purchase (Research from consultancy Simpson Carpenter)

The readiness of businesses

• UK communications regulator Ofcom has finally been given the go ahead to move forward with the auctioning of 4G spectrum, as well as the re-farming of 2G spectrum so it can be used for 3G services. • The UK is to auction 250 megahertz of bandwidth in the first half of 2012, ready for 4G services to start in 2013. The new frequencies are split between 800 megahertz, freed by the planned end of analogue TV services in 2012, and 2.6 gigahertz.

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France The Smartphone market

• Smartphone penetration reached 45,6% (27.9 million Smartphones, March 2011) (http://www.arcep.fr/index.php?id=10865) • Smartphone growth estimated at 18.1% on a yearly basis (March 2011) (www.arcep.fr) • 55% of French adults will use a Smartphone by 2015. (http://googlemobileads.blogspot.com/2011/06/ global-perspectives-france-leads-europe.html)

Smartphone user behaviours

• 59% of Smartphone users connected to Internet on a daily basis and 73% use a search engine on their Smartphone (http://googlemobileads.blogspot.com/2011/06/global-perspectives-france-leads-europe. html) • Video consumption on mobile phones has doubled over one year and now reaches 2.2% of mobile users (http://www.mediametrie.fr/internet/communiques/annee-internet-2010-mobilite-reseaux-sociaux-lemedia-internet-bascule-dans-la-connexion-permanente.php?id=421) • 72% of Smartphone users go to clothing shops after having been connected to the web (https:// advertising.microsoft.com/WWDocs/User/en-us/ForAdvertisers/2011-Microsoft-France-MoAd-InsightsStudy.pdf )

The readiness of businesses

• 41% of merchants have a mobile web site or a mobile application • 39% of merchants have a several mobile applications • 16% of merchants have a mobile web site (all statements attributed to http://www.itrnews.com/articles-top10-mois/120403/smartphone-va-devenircanal-vente-part-entiere.html)

Italy The Smartphone market

• 46.5% of all mobiles are Smartphones • 20 million Smartphone users, an increase of 52% compared to the same period of 2010 (both statements attributed to Nielsen, Mobile Media, trend Q1 2009 – Q1 2011)

Smartphone user behaviours

• In the first quarter of 2011 about 13 million people used their Smartphone to search the web. About 26.6 million people per month go to internet, so 50% use their Smartphone to do it. (statement attributed to the country spokesperson) • 73% of Italians preferred to use their Smartphone to access internet when they are at home, in spite of having a home computer. (Doxa research)

The readiness of businesses

• Only few applications are considered really useful and downloaded • Some merchants are working on contents and no more on applications • In the banking sector, San Paolo IMI (but also other enterprises of the same sector) is offering an app for home banking that could be installed on Smartphone

Spain The Smartphone market

• Smartphones have a 37.6% market share (http://www.comscore.com/Press_Events/Presentations_ Whitepapers/2011/2010_Mobile_Year_in_Review) • 27% growth in Smartphone penetration from 2009 to 2010 (http://mashable.com/2010/08/26/ Smartphone-adoption-trends/)

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Poland The Smartphone market

• Smartphones sales growth increased over 140% from Jan 2010 to Aug 2010. (GfK Polonia, 2011) • Smartphones will represent 30% of total mobile market in 2011 (vs. 19.9% in 2010) • 5.4 million Smartphones in 2010 rising to 8 million by 2011. Fastest growing Smartphone market in Central and Eastern Europe. (Internet Standard Report, May 2011) • The prices of Smartphones are steadily falling, and the operators themselves will aim to subsidise the most attractive models. Last year the average price of a Smartphone offered by the operators was 159 PLN. The same devices on the retail market were worth approximately 1,317 PLN. (GfK Polonia, 2011)

Smartphone user behaviours

• Up to 5.3% of Internet activity is generated using Smartphones. (Akamai) • Gaming very popular

Netherlands The Smartphone market

• 3.3 million have a Smartphone. • 350,000 tablets were sold in 2010 • Over 50% of every new mobile phone subscription is a Smartphone.

The readiness of businesses

• The ABN AMRO bank has huge success with their app • The Dutch government supports cloud computing and open source initiatives. Access to information and digital services has high priority

Belgium The Smartphone market

• Smartphones have 16% of the mobile market • Between July 2009 and July 2010, the sale of Smartphones grew 115.7% • (both statements attributed to http://www.digimedia.be/pdf/Inside-120-NL/120smartphonesNL.pdf ) • 50% of Belgians will have a Smartphone by 2013 (http://www.belgiancowboys.be/mobile/1600)

Smartphone user behaviours

• Due to the economic crisis, 1 out of 6 consumers spent less money on telecommunications (phone, mobile phone, and internet). (http://www.oivo.be/NL/doc/communiques/all/document-5061. html?idsmenuleft=127)

The readiness of businesses

• Much is expected from the amendments to the consumer protection law, and from the announced auction of a fourth 3G licenses and of 4G licences. (DG INFSO European Digital Agenda, Country profile

Czech Republic The Smartphone market

• 200.000 Android registrations on the CZE market since the beginning of 2011 • Czech operators do not subsidise Smartphones (top products costs around 850 USD) • Smartphone users use their devices for a long time—for example very old Windows Mobile devices

Smartphone user behaviours

• We don´t see many differences between CZE and EU user´s habits • There is a significant influence on user behaviour from Smartphone manufacturers • Your Smartphone determine your social status

The readiness of businesses

• Taxi drivers are using Smartphones for managing its orders and clients

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Portugal The Smartphone market

• The traditional mobile phone market registered a 8% fall in sales while the Smartphone market grew by 15% (http://www.idc.pt/press/pr_2011-06-14.jsp) • In 2010, Smartphone sales represented 27% of all mobile phone sales (http://www.idc.pt/press/ pr_2011-03-16.jsp) • The Smartphone market grew 110% in 2010 compared to 2009

Smartphone user behaviours

• 64 out of 100 Portuguese users access the Internet on their Smartphone (http://www.oecd.org) • The economic crisis will lead to a slowdown in the next two years. This will not only affect the sales of devices, but the average data and call consumption

Sweden The Smartphone market

• More than one in four Swedes has a Smartphone today (http://www.dagensmedia.se/nyheter/dig/ article2511053.ece) • It is predicted that by 2013, 90 percent of the Swedes will own a smartphone (http://isolve.se/events)

Smartphone user behaviours

• Expectations on corporate presence in social media have increased. Companies, as well as individuals, are expected to be available via social media and phone at all times (CA desk research) • Compared to other smartphone users, Swedes take fewer pictures with their mobile phones. Generally integrity is seen as important in Sweden and individuals are prone to “untagging” rather than “tagging” pictures of themselves on Facebook. (http://nyheter.nokia.se/press/svenskar-blyga-i-sociala-medierinternationell-undersoekning-om-mobilfotografering-646133)

The readiness of businesses

• A particularly good example of business use of smartphones is a Taxi Company (Taxi Stockholm) with whom you can book taxis through an app in which you give your exact position by simply pointing it out on an application.

Israel The Smartphone market

• Adoption ‘really high’, probably reached ‘full penetration’

Smartphone user behaviours

• Very little Web surfing, due to prohibitively high cost.

The readiness of businesses

• There is an expectation software based proximity payments will take off

• There is hope that Web surfing costs will come down in the near future

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Section 12: References 1

Gartner Says Worldwide Media Tablet Sales on Pace to Reach 19.5 Million Units in 2010, Accessed July 21, 2011, http://www.gartner.com/it/page.jsp?id=1452614

Brandbank 2010 mCommerce Content Report, Accessed July 1, 2011, www.brandbank.com/docs/BrandbankReport. pdf

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Mobie Stats, Accessed July 2, 2011, http://mobie.co/ mobie-stats/

Consumers use smartphones to make tills ring, Accessed July 18, 2011, http://www.marketingweek.co.uk/trends/ consumers-use-smartphones-to-make-tills-ring/3025476. article 12

OECD, “society at a glance 2009: OECD social indicators”, Accessed July 8, 2011. http://www.oecd.org/ dataoecd/36/43/42675407.pdf 3

Beccue, Mark and Neil Strother (2010), Mobile Commerce: Mobile Online Shopping, Software-based Proximity PaymentsMobile Commerce, ABI Research NY, USA. 13

Yingling Liu, “Public Transport”, Accessed July 7, 2011. http://www.worldmapper.org/display.php?selected=142# 4

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https://foursquare.com/

Beccue, Mark and Neil Strother (2010), Mobile Commerce: Mobile Online Shopping, Software-based Proximity PaymentsMobile Commerce, ABI Research NY, USA. 15

Global Smartphone Shipments Reach Record 94 Million Units in Q4 2010, Accessed July 9, 2011, http://www. strategyanalytics.com/default.aspx?mod=pressreleaseview er&a0=5000 6

Observatories / Services mobiles, Accessed July 18, 2011, http://www.arcep.fr/index.php?id=10865 16

Nielsen, Mobile Media, trend Q1 2009—Q1 2011

Google Android Show Fastest Growth Among Smartphone Platforms in Germany, Accessed July 02, 2011, http://www. comscore.com/ger/Press_Events/Press_Releases/2011/1/ Google_Android_Shows _Fastest_Growth_Among_ Smartphone_Platforms_in_Germany 18

Beccue, Mark and Neil Strother, Mobile Commerce: Mobile Online Shopping, Software-based Proximity Payments. New York: ABI Research, 2010. 7

comScore, The comScore 2010 Mobile Year in Review, Accessed July 12, 2011, http://www.comscore.com/ Press_Events/Presentations_Whitepapers/2011/2010_ Mobile_Year_in_Review, 2011, PDF e-book. 8

BITKOM (Federal Association for Information Technology, Telecommunications and New Media), Accessed July 11, 2011, http://www.techbanger.de/2011/03/23/internet-mitdem-handy-nutzerzahlen-fast-verdoppelt/ 19

Mobile ArcGIS on the IPad—Part 1, Accessed July 21, 2011, http://www.webmapsolutions.com/ipad-mobile-arcgispart-1 9

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comScore, The comScore 2010 Mobile Year in Review, http://www.comscore.com/Press_Events/Presentations_ Whitepapers/2011/2010_Mobile_Year_in_Review, 2011, PDF e-book.

Xerfi—survey “Le m-commerce, nouvel eldorado de la distribution ?”. Accessed July 17, 2011, http://www. slideshare.net/RFONNIER/le-m-commerce-nouveleldorado-de-la-distribution-xerfi-juin-2011

GFK Retail and Technology, Accessed July 11, 2011, http:// www.digimedia.be/pdf/Inside-120-NL/120smartphonesNL. pdf

Umfrage zeigt, dass fast die Hälfte von SmartphoneBenutzern ihren Mobilfunkanbieter für Service-Probleme verantwortlich macht, Accessed March 9, 2011, http:// www.businesswire.com/news/home/20110309005311/de/ & Video http://www.empirix.com/news/media/video/ UCMsurvey_video.asp

Nur jeder zwölfte Berufstätige hat ein Diensthandy, Accessed July 6, 2011, http://www.bitkom.org/de/ presse/8477_68502.aspx 22

Developer Economics 2011, Accessed July 11, 2011, http://www.visionmobile.com/rsc/researchreports/ VisionMobile-Developer_Economics_2011.pdf 31

ThinkMobile, Google, Accessed July 11, 2011. http:// googlemobileads.blogspot.com/2011/06/globalperspectives-france-leads-europe.html 23

Europe’s Digital Agenda, Accessed June 28, 2011, http:// ec.europa.eu/information_society/digital-agenda/index_ en.htm 32

Facebook and Twitter Access via Mobile Browser Grows by Triple-Digits in the Past Year, Accessed July 11, 2011, http://www.comscore.com/Press_Events/Press_ Releases/2010/3/Facebook_and_Twitter_Access_via_ Mobile_Browser_Grows_by_Triple-Digits 24

Brandbank 2010 mCommerce Content Report, Accessed July 1, 2011, www.brandbank.com/docs/BrandbankReport. pdf 33

L’ouverture aux influences très marquée aux Etats-Unis, Accessed July 11, 2011, http://www.journaldunet.com/ ebusiness/commerce/comportement-consommateurs/ ouverture-aux-influences.shtml 25

The Top 10 Trends for the Next 15 Years—And Why They Matter Urgently, Accessed July 21, 2011, http://www. tmforum.org/TheTop10Trendsfor/10613/home.html?utm_ campaign=inside_leadership&utm_medium=pem&utm_ source=the_top_10_trends_for_the_next_15_ years_4412_170411 34

BrandBank 2010 mCommerce Content Report, Accessed July 1, 2011, http://www.brandbank.com/docs/ BrandbankReport.pdf 26

More about The Global Simplicity Index™, Accessed July 21, 2011, http://www.simplicitypartnership.com/what-wedo/how-we-simplify-your-business/diagnosing-your-, complexity-problems/more-about-the-global-simplicityindex/ 35

Analyst speak: Shopping with your smartphone is becoming a common practice, Accessed July 12, 2011, http://www.nma.co.uk/opinion/industry-opinion/analystspeak-shopping-with-your-smartphone-is-becoming-acommon-practice/3025712.article 27

The essentials of mobile marketing and m-commerce, Accessed July 21, 2011, http://www.businesslink.gov.uk/ bdotg/action/layer?topicId=1075386889 36

Le paiement sur mobile peine à décoller en France, Accessed July 11, 19, http://www.lefigaro.fr/ conso/2011/01/05/05007-20110105ARTFIG00359-lepaiement-sur-mobile-peine-a-decoller-en-france.php 28

Mobile Marketing Association, Proposed Mobile Commerce Definition, Accessed July 21, 2011, http:// mmaglobal.com/node/12138 37

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