technology›forecast A quarterly journal

06 20 36 Issue 1 Handheld power for Mobile tech from Wielding CIO 2011 enterprise clout peril to promise mobile influence

Unleashing enterprise mobility

Tom Conophy, CIO of InterContinental Hotels Group › Contents ›

Features › Interviews › Departments ›

16 02 06 Getting to your best Acknowledgments Turning handheld mobile strategy power into enterprise clout Tom Conophy of 03 InterContinental Hotels The smartphones, tablets, Subtext Group describes the and other handheld devices importance of a sound your employees already own cultural and management are productivity drivers. 04 foundation for mobile Seize the opportunity. Message from the editor 06 innovation. 20 32 Mobile technology’s Blending work and journey from peril life on smartphones to promise Todd Schofield of Standard App-centric handhelds are Chartered makes enterprise maturing rapidly, and the application platforms from path to secure adoption is consumer smartphones. more straightforward than it may seem. 44 36 Anticipating the next phase of enterprise How to exert leadership mobility on enterprise mobility 20 Srini Koushik of Nationwide CIOs need to acknowledge thinks out loud about how that the IT capabilities of handhelds are influencing employees’ own smartphones enterprise computing threaten the status quo. overall.

48 The new power of the cybernetic employee Mark Pesce of FutureSt Consulting considers how work gets done differently in 36 the new mobile enterprise. Acknowledgments ›

Advisory US studio Industry perspectives Sponsor & Technology Leader Art Director During the preparation of this Tom DeGarmo Jacqueline Corliss publication, we benefited greatly from interviews and conversations US thought leadership Designers with the following executives: Partner-in-Charge Suzanne Lau Tom Craren Diana Lira Tom Conophy, CIO, InterContinental Hotels Group Center for technology Illustrators & innovation Donald Bernhardt David Goldschlag, VP, mobile Tatiana Pechenik technology, McAfee Managing Editor Bo Parker Photography Chris Hazelton, research director, mobile and wireless, the451 Editors Cover, Jen Rosenstein Photography Vinod Baya Felipe Dupouy Larry Herrmann, manager, global IT Alan Morrison Corbis customer support, DJO Getty Contributors Ed Jimison, systems engineer, Intel Online Galen Gruman Nathan Kelly, VP, global operations & IT, Larry Marion Managing Director, Palm Global Business Unit, HP Bud Mathaisel Online Marketing Bill Roberts Jack Teuber Srini Koushik, SVP, CTO, and CIO shared applications, Nationwide Editorial advisors Designer and Producer Larry Best Scott Schmidt Srinivas Krishnamurti, senior director, Brian Butte mobile solutions, VMware Reviewers Gary Delooze Aaron Levie, CEO, Box.net Terry Retter Ahmed El Adl Joe Tagliaferro Philip Garland Andi Mann, VP of virtualization product Christine Wendin Oliver Koderman marketing, CA Tracey Riley Copyedit Mark Pesce, founder, FutureSt Consulting Lea Anne Bantsari Marketing Thomas Reid, SVP, Sun Life Financial Natalie Kontra Todd Schofield, global head, enterprise Special thanks to mobility, Standard Chartered Vicky Huff Steve Subar, founder and CEO, Dimpsy Teckchandani Open Kernel Labs Kim Woodward, VP of corporate marketing, Citrix Systems

02 PwC Technology Forecast 2011 issue 1 Subtext ›

Cybernetic era A change in individuals caused by an information system that is always present and accessible, in which the individuals and the system begin to blend.

Autonomy, mastery, Dan Pink’s list of intrinsic motivating factors and purpose (AMP) for employees in the 21st century, which contrasts with extrinsic motivating factors such as financial incentives that were more effective in the previous century.

Context-aware Computing that benefits from human-assisted, computing sensor-rich mobile handhelds for timely location, personalization, and environmental input.

Client virtualization On mobile devices, a runtime environment that mobile applications and their resources can operate in. In the case of thin-client virtualization, all the data resides on the server, and the mobile device merely acts as a display.

Native app An application developed to take advantage of the specific functionality and interfaces of a device’s operating system.

Unleashing enterprise mobility 03 Message from the editor › Tom DeGarmo, Principal & Technology Leader [email protected]

they have figured out how to manage applications and information on employee-owned devices in a secure way. How did we get here? And why would a company offer to support many different kinds of handhelds? You might think this is just a case of being nice to Millennial employees (those born after 1980). If we don’t let them have their way, we’ll have to deal with a disgruntled staff, some say. The reality is far more interesting. Yes, Millennials are likely to be “digital natives” who have strong, even obsessive, attachments to the handhelds of their own choosing. But a broader industry trend is in play. Smart- handheld users now have more choice and hold the power of the cloud in each device. And that makes all the difference. When technology converges the way it has in the desktop and laptop domain, the opportunities for innovative and creative new uses of the technology To every thing there is a season. As this verse1 poetically are diminished. It is quite rational to standardize, control, captures, matters that at one point in time seemed settled and buy in bulk. There’s no upside to flexibility when may at another time be open again for debate. When it choices and capabilities are limited. comes to smart handhelds, this is one of those times. In a world of divergent choices, new capabilities, and a Enterprises are accustomed to standardizing and more mobile-sensitive Web, control has a big downside. controlling the devices their employees use. But the It kills innovation. season is changing. The relationship of mobile devices to What makes today’s divergence even more important, enterprises—more importantly, the relationship of mobile though, is its cybernetic quality. It’s the commingling devices to individuals who also happen to be employees— of the human adjustment to engaging with information is undergoing a fundamental transformation. More than everywhere, at any time, with anyone, and the rapid any other factor, the rapid innovation in smart handhelds innovation in mobile computing devices. This issue of the is responsible for this transformative development. Technology Forecast examines the underpinnings of these What does this new world look like? Some leading-edge twin disruptions in the business world. It suggests that companies are saying to new hires, “Bring your own companies that are stuck in control mode are being smartphone; we’ll support it.” They’re offering $50 penny-wise and pound-foolish. The opportunity here isn’t monthly subsidies and allowing employees to choose the just to give the digital natives the shiny new gizmo they’ve data plan that works best for them. These companies say been craving. Smart handhelds imply more opportunities for enterprises than might be obvious at first glance.

1 Ecclesiastes 3:1

04 PwC Technology Forecast 2011 issue 1 The article, “Turning handheld power into enterprise This issue also includes interviews with four executives clout,” on page 06 explores how enterprises can turn at companies on the leading edge of smart-handheld what has been a consumer trend in smart handhelds to management and mobile application development: their advantage. The first step here is to understand how • Tom Conophy of InterContinental Hotels Group places the workforce is changing. What digital natives are doing smart-handheld trends in the context of an innovative with their handhelds and the information cloud they tap IT culture he’s established and led. into represents a different collaboration model—a more interactive and information-rich path to productivity. • Todd Schofield of Standard Chartered outlines They depend on personalized access to a cloud of relevant the bank’s strategy for supporting smart handhelds information. Rather than bucking this trend, business and building an application development organization should embrace it. to support that strategy. “Mobile technology’s journey from peril to promise” • Srini Koushik of Nationwide describes how to begin on page 20 details the ways that security for smart supporting employee-owned smart handhelds and the handhelds is improving. As information becomes more value of “bring your own device” from an insurer’s point pervasive and easily accessible, the potential to mix of view. enterprise and personal information increases. Control • Mark Pesce of FutureSt Consulting paints a big-picture over corporate data on mobile handhelds is a major view of how organizations can face the challenges of concern, but security models to manage this data are personal IT, as well as a view of the leading mobile already established, and mobile device management application development trends. software and major operating systems are evolving to embrace and extend those models. Some of the more Please visit pwc.com/techforecast to find these articles innovative enterprises have taken advantage of the security and other issues of the Technology Forecast online. that already exists and, seeing the potential for process If you would like to receive future issues of this quarterly and productivity improvement, have committed themselves publication as a PDF attachment, you can sign up at to in-house mobile application development. For them pwc.com/techforecast/subscribe. and for others, now is the time to explore the new process We welcome your feedback and your ideas for future improvement paradigm that’s emerging in smart- research and analysis topics to cover. handheld applications. “How to exert leadership on enterprise mobility” on page 36 establishes that, as a first step, CIOs need to acknowledge that employees have their own IT capabilities now. Whether by conveying an understanding of the device Tom DeGarmo, Principal choice options to the rest of the C-suite, establishing new Technology Leader governance approaches, or formulating new business process models, CIOs have ample opportunity to lead, especially considering the new power of smart handhelds connected to the cloud. Otherwise, someone else will.

Unleashing enterprise mobility 05 06 PwC Technology Forecast 2011 issue 1 Turning handheld power into enterprise clout The smartphones, tablets, and other handheld devices your employees already own are productivity drivers. Seize the opportunity.

By Bo Parker and Alan Morrison

D7, a construction consulting firm in Southern California, • By using smart handhelds and the cloud, employees can › threw its hat in the ring when it heard that Box.net, a cloud improve business processes in ways they couldn’t before. storage provider, was seeking a partner to test business • Consumer-grade tablets, smartphones, and supporting applications on the Apple iPad. Before long, about 20 field technologies are more powerful than ever and are now workers at D7 were using smart tablets to diagnose quality becoming secure and reliable enough for enterprise use. assurance issues on-site; to relay audio, documents, and digital photos; and to store and share the material via Box.net. • Applications don’t need to be sophisticated to produce immediate business results. By using this approach, D7 has accomplished something • With the help of mobility, the knowledge economy is that had previously eluded it: digital workflow from expanding to include more traditional industries. customer sites. In the past, workflow involved paper documents “that weren’t very usable,” says Aaron Levie, Enterprise mobility is clearly a growing resource for CEO of cloud collaboration company Box.net. Joseph enterprise agility, giving organizations access not only to Daniels, D7 president, says tasks that took a week or standard cell phone communications, but also to wide- longer can now be done the same day. “That’s what ranging collaboration capabilities at low cost. Many of the people want. They want it now or yesterday,” he says. newest mobile applications are relatively simple, but the With a mobile digital workflow, the D7 team eliminated collaboration they enable is at a higher, more complex a major bottleneck.1 level, because it cuts across organizational boundaries. Yet this new resource presents a challenge unfamiliar to This modest example illustrates several trends related business executives who are accustomed to controlling to enterprise mobility that PwC has identified for this enterprise technology: how do you take advantage of issue of the Technology Forecast. Among them: an asset that most of your employees already have in

1 Ian Hamilton, “Construction firm tests iPads: Company pairs cloud software with Apple tablet their pockets? to try to boost productivity,” The Orange County Register, July 16, 2010, Factiva Document OCR0000020100717e67g0001h; Mike Schramm, “Box.net’s 20 iPads arrive at D7 Consulting,” The Unofficial Apple Weblog (TUAW), http://www.tuaw.com/2010/07/08/ box-net-ipads-arrive-at-d7-consulting/; PwC interview with Box.net CEO Aaron Levie, August 18, 2010; and “Box.net’s iPad campaign: Real-world tests,” Box.net YouTube video, http://www.youtube.com/watch?v=YzQZmzFZ1UM, accessed October 7, 2010.

Unleashing enterprise mobility 07 The answer to that question has many At this stage of enterprise mobility, and their devices, wherever they are, layers. It requires an understanding of the biggest risk for many companies are part of a more integrated whole. what drives knowledge workers— would be inaction. especially Millennials, those digital As Figure 1 points out, traditional natives born after 1980—and of knowledge management hearkens A phone in your pocket, or an the implications for attracting and back to an era in which the enterprise enterprise IT asset? retaining talent. It involves innovative information system was all that was organizational change to manage the online. Employees had access to only Knowledge workers want nothing flat, sprawling network of individual internal IT resources. Now, in the era less than perpetual connection to nodes defined by workers and their of the smart handheld, employees the information they need, and devices. And it requires more have anytime access to external today more of that information is imaginative uses of IT resources, resources. Not only that, but those increasingly accessible via handhelds. sourced internally and externally, to resources change in response to an The smartest of these devices, as move closer to where the action is—the employee’s input. As information in futurist and interactive media edge of the enterprise—and to deliver the cloud becomes more adaptive, the consultant Mark Pesce points out, application and information power result will be a cybernetic system, a offer the same power as a 1980s Cray that’s been elusive until recently. This symbiosis, and an interworking of supercomputer2 and are optimized first article examines the business man and machine that’s been theory to work on wireless networks suited implications of these issues. for a long time but is now finally to high-volume data exchange. becoming reality. Smartphone subscribers account for The article, “Mobile technology’s more than 60 percent of US mobile journey from peril to promise,” on The new smartphones and tablets application use and more than 55 page 20 examines the issues of take advantage of new classes of percent of mobile Web browser use, application development, the limits of applications that allow easier use of according to comScore.3 Early these devices in replacing PCs, and the knowledge and information sources adopters are using their phones to security risks of handhelds—which on the public Web. The best of these become an integrated part of the turn out to be not as insurmountable applications can improve processes information landscape. This is the as many say. The article, “How to incrementally in areas such as field beginning of the realization of a exert leadership on enterprise support and sales with the help of cybernetic vision in which humans mobility,” on page 36 offers insight small, agile collaboration tools suited into governance and other risks. to the new handhelds. What has 2 See the interview with Mark Pesce on page 48. 3 “Smartphone Subscribers Now Comprise Majority of emerged is a form of cloud-based Mobile Browser and Application Users in U.S.,” collaboration and file sharing that comScore press release, October 1, 2010, http://www. comscore.com/Press_Events/Press_Releases/2010/10/ emphasizes ease of use rather than Smartphone_Subscribers_Now_Comprise_Majority_of_ expansive feature sets. Mobile_Browser_and_Application_Users_in_U.S, accessed October 5, 2010.

Figure 1: The trend in cybernetic employees

Interaction through devices and real-time Traditional approaches to knowledge context management (KM) surround the employee with corporate information. Smart handhelds Web Web Web simplify access to external information and feed real-time context to the system. The Employee system uses that input to filter what it Employee retrieves for the employee. Enterprise Employee Enterprise Enterprise KM KM KM The employee moves more to the edge in this scenario, straddling the boundary between internal and external information. PC era Today Future

08 PwC Technology Forecast 2011 issue 1 Few IT departments are currently in Too often, though, IT is slow to Web. (See Figure 2 for a comparison the decision loop for acquiring the capitalize on the mobility opportunity. of network intelligence between mobile devices and applications for And as a result, individual executives, laptops and smart handhelds.) The enterprise use. When IT departments business units, and employees do symbiosis mentioned earlier happens are in the loop, they clear a path for what they want with smart handhelds with the help of a constant flow sales forces and other knowledge and the myriad mobile applications between these nodes and the workers to use leading-edge available in the cloud. The individual changing information in the cloud. smartphones and tablets. “When the results may be useful, but a potentially Blend that capability with social CEO shows up with an iPad, you [the powerful enterprise IT asset is not yet networking, and you get an emerging CIO] are forced to look at it whether being tapped organization-wide. form of large-scale, contextually you want to or not,” says Larry aware mobile networking that many Herrmann, manager of global IT enterprises have dreamed of—the Smart worker, smart device customer support at DJO, a medical kind that research and development symbiosis device manufacturer. Herrmann (R&D) labs such as the Palo Alto compares the current trend to what Research Center (PARC) are exploring.4 Mobile phones aren’t just more happened with BlackBerry devices in powerful; broadband connectivity, the mid-2000s. “We got our first 3-D sensors, and enhanced BlackBerry devices about six or seven geolocation capability have turned 4 See a description of PARC’s focus area “Context-aware years ago, and the CEO at that time the devices into intelligent, human- computing & mobile interaction” at http://www.parc.com/ said there will never be more than 25. work/focus-area/context-awareness/, accessed October assisted network nodes on the public 27, 2010. Now we’ve topped 900 globally.”

Some IT organizations are building on Figure 2: Smart handhelds enable cybernetic systems recent technology improvements to refine efforts they had already started. SMART “We are sought after by the business LAPTOPS HANDHELDS and are viewed as consultants,” says Tom Conophy, CIO of InterContinental Low High Hotels Group (IHG). “We profess the personalization personalization art of the possible.” His team offered mobile applications in the past and is enthusiastic about capabilities that Less Much more frequent frequent began to appear at the end of the usage usage decade. “IHG was one of the first companies to actually put out a mobile app that did booking, but it was pretty Not always Always there as work ? accessible lame,” he admits. is happening

Conophy’s point: The technology has only recently become enterprise ready. “The phones themselves were not that great, and the infrastructure was lacking,” he says. “The rendering N capabilities were not super.” Conophy S … describes the current environment Fewer sensors and context Many more sensors and context as “a perfect storm.” After lagging for years, more of the capabilities IHG and others need have at CONNECTED INTELLIGENT WORKSTATION NETWORK NODE last materialized.

Smart handhelds provide features that laptops do not, including quick, always-on access to applications and a multitude of sensors. The result is that a human with a smartphone or tablet becomes a de facto human-assisted network node—part of a cybernetic system and the overall information flow.

Unleashing enterprise mobility 09 The problem for the enterprise is that adoption of this powerful but The art of the possible in enterprise mobility in the 2010s unfamiliar networking capability What is an “intelligent network node” meeting down the hall, or indicate is happening on the consumer Web and why is it important to enterprise what printer is closest to them. and then bleeding over into the mobility? An intelligent node is enterprise. Enterprises are having basically Nova Spivack’s “human as Faster networking: 3G is finally difficulty deciding what to allow sensor” concept, with each human commonplace, although the average and what to curtail. They also need carrying and interacting on the speeds US users experience on mobile substantial organizational flexibility to Web via a smartphone filled with a devices are sometimes as low as take advantage of this new capability. Global Positioning System (GPS), one-quarter of the average speeds Remnants of command-and-control sensors, a powerful processor, and advertised, according to the Federal or even carrot-and-stick approaches, lots of memory.* These nodes and the Communications Commission (FCC). which exist in many organizations, networking that connects them create This implies downloads in less than are not supportive of this capability. the opportunity for applications to optimal circumstances of 100 to 500 Because the idea of participating in learn more about you and others in Kbps or lower. In the best conditions, the cloud is so compelling, many your business network in real time and users get from 1 to 1.5 Mbps in the companies are conducting pilot provide more of the information you United States. Network upgrades projects and pondering what policies need in your context at the moment. (to the Long-Term Evolution [LTE] they might need to change, but they For example, a salesman about to standard, for example) promise haven’t gone much further. Others visit a prospect’s headquarters office improvements two or three times that have managed some degree of can learn about mutual friends and what users are experiencing with comfort in a somewhat more flexible connections before walking in the 3G. That’s network throughput. On organizational structure have door. Some of the main enablers the data throughput side, back-end embraced the new medium. for this kind of contextually aware storage system speeds are improving computing include the following: substantially, with higher-speed solid- It’s not just organizations that are state storage becoming available and changing; the individuals in them Better locating capability: caching performed more cleverly now are changing, too, especially the Smartphones and cellular networks than ever. Overall, users experience younger, more adaptive generations. that are GPS enabled are more precise better performance than they did It’s not news that the workforce has about location these days. Together three years ago, and they can expect changed in response to technological with other sensors and details about an additional cycle of improvement improvements, but it’s worth pondering each person, applications will be able to occur during this decade. what specific changes have resulted. to make educated guesses about what information will be relevant. During the next three to five years, Take manufacturing as an example. intense development activity and Factory output per worker in More capable sensors: Smartphones experimentation will continue. industrialized countries has risen already have sensors that detect Look for lots of targeted applications dramatically since the 1970s. This motion. That’s how Apple iPhone intended to solve practical problems. productivity boost is a primary factor devices can have displays that respond The end result will be a different behind factory employment declines.5 to the device tilting, or games that kind of application environment for take advantage of the phones’ motion enterprises—one where business The need for fewer workers in detection capabilities and build that units are more closely involved in industries that previously required into a user interface. New barometers development or even doing some more physical labor is one of the in phones will add to motion detection development themselves, not to reasons today’s economy is and geolocating capabilities, making mention a rich but rather confusing characterized as a knowledge economy. it possible for applications to learn and difficult-to-navigate application A significant share of that increased what floor a person is on in a building, environment externally. The first productivity is due to the improved tell them someone they know is in a few years will be a time to focus ability to generate, retain, share, on the fundamentals and to capture and—most importantly—leverage information. More workers will do * Nova Spivack, “Nowism,” TTI Vanguard Shifts Happen what’s most essential from an conference, San Francisco, CA, February 23, 2010. application perspective. 5 Jay Bryson and Tim Quinlan, What Really Drives Growth in the Industrial Sector? Wells Fargo Fixed Income Research, July 2010, https://www.wellsfargo.com/ downloads/pdf/com/research/special_reports/What ReallyDrivesGrowthintheIndustrialSector_ July2010.pdf, accessed October 5, 2010.

10 PwC Technology Forecast 2011 issue 1 more knowledge work, even if their Several companies interviewed for become more sophisticated (as job category remains otherwise this issue focus on smartphone and in the D7 example) and the need steady and stable. tablet innovation precisely because for precision increases, more effort of the growing influence of digital shifts to planning, measuring, Handhelds are becoming powerful natives. Their development groups calculating, resourcing, machine at precisely the same time that the exemplify how the workforce as a setup, maintenance, and quality knowledge economy is becoming whole is changing in response to the control, where each worker now predominant. One implication: need for accelerated innovation. IHG’s has management responsibility and enterprises must make more room Conophy has set up informal R&D autonomy over an important part for the creative nature of a handheld- groups to hash out ideas. “You have of what can be, in essence, a small, wielding workforce. This is especially to give people outlets,” he says. “They ad hoc, on-site building factory. true in an environment that requires have their day jobs, and then they enterprise agility. have their passions. The idea is to try That’s because the iPad, the iPhone, to turn on some of those passions.”8 Android-based handhelds, and similar devices have opened up a new Enterprise agility’s demand In job categories where workers category of interaction with digital for workforce creativity traditionally have used their hands content for companies such as D7. (construction trades, for example), Before, that interaction essentially The most knowledge-intensive the information component is was limited to content creation (with segments of the workforce already increasing and more creative a desktop or a laptop) or consumption understand the value of fostering approaches are emerging. As (also with a laptop, but more recently creativity in this new environment. construction tools and techniques with a smartphone or an e-reader). Standard Chartered, for instance, Now, a category for engagement has is setting up a mobile applications 8 See the interview with Tom Conophy on page 16. emerged. (See Figure 3.) development unit that emulates a Silicon Valley startup, to the point that it is located in San Francisco’s Figure 3: The role of new mobile handhelds in engaging with content South of Market new media district and staffed by a small group of locals. High Never mind that Standard Chartered is degree of functionality Desktops headquartered in London and most of and its branches are in Asia, Africa, and laptops the Middle East. Todd Schofield, who heads the unit, says the idea is “to stay very small and nimble, and be able to bring in new ideas, deliver quickly, Tablets and then move on to the next thing.”6 and smartphones The unit’s approach reflects the way digital natives tend to operate and underscores why they are capable of contributing to enterprise agility. Because they are accustomed to the Low Feature tools that allow agility, digital natives degree of phones and are more apt to iterate quickly and to functionality e-readers continually refine their access to information via handhelds. And because they collaborate so readily on an ad hoc basis, they’re accustomed to Consumption Engagement Creation participating in change efforts—an Degree of interaction aspect of their character that enterprises need to take greater advantage of.7 Content engagement splits the difference between creation (which requires a precise and elaborate interface, such as a mouse and keyboard) and consumption (which requires only a 6 See the interview with Todd Schofield on page 32. simple interface). Multi-touch and gesture interfaces on smart handhelds allow new ways to 7 See Michael S. Hopkins, “The Digital Natives, and You,” MIT Sloan Management Review, April 1, 2010, http:// interact with the content, and that level of interaction should increase as developers become sloanreview.mit.edu/the-magazine/articles/2010/ more familiar with the capabilities of these relatively new interfaces. spring/51317/the-digital-natives-and-you/, accessed October 27, 2010. Unleashing enterprise mobility 11 Sun Life Financial Canada is close to Sun Life developed the first PlayBook Construction is just one industry rolling out a new application to run enterprise application to support example. Car dealerships, insurance on the forthcoming Research In enrollment in the company’s companies, and hospitals, among Motion (RIM) PlayBook tablet that retirement products. Soon, retirement many others, are all poised to could be described as an engagement counselors will bring with them Sun incorporate more tablets into their application. In the past, Sun Life has Life–outfitted PlayBook tablets that workflow. This trend is consistent used a paper-based approach to enroll are preloaded with the enrollment with how mobile workflow is participants in Sun Life retirement application. “By using engaging becoming more information rich plans that employers offer to their software to encourage enrollment and has ramifications for how employees. However, the employees while simplifying the complex business leaders choose to manage. of Sun Life’s client companies have investment choices facing employees, many options to choose from in the we expect much higher enrollment All of the fastest-growing job retirement plans, and paper forms rates in retirement programs,” Reid categories over the next decade will have proven too complex for some says. “Our research has pointed to have a heavy information component, employees to complete. The industry enrollment rates as high as 90 percent. judging by information from the average for enrolling in retirement When we recently told our 50 top U.S. Bureau of Labor Statistics. programs hovers between 50 and clients about this, they were thrilled (See Table 1.) Today’s skilled jobs are 60 percent. In companies where and are eagerly anticipating the already information rich; tomorrow’s employees are not normally outfitted rollout of the PlayBook app in jobs will be more so considering the with laptops—oil services or their organizations.” power of collaboration using mobile manufacturing, for example— devices and the cloud. The two job enrollment by computer has not The latest handhelds are squarely in sectors the Bureau of Labor Statistics been effective. Security concerns the middle of engagement, but they predicts to grow fastest are surrounding employee information has have the ability to expand outward. professional (including science, also kept enrollment a paper process. Although large numbers of smart engineering, law, and teaching) devices probably will not replace PCs and services (including healthcare Thomas Reid, senior vice president soon, in some cases, tablets already workers, firefighters, detectives, and for Group Retirement Services at Sun do substitute for laptops—for some cooks). Each will feel the impact of Life, heard about the ease of use and doctors, for example. (See the article, the emerging Web-based collaboration potential of the PlayBook. Working “Mobile technology’s journey from environment that the networked closely with RIM on prototype devices, peril to promise,” on page 20.) intelligent nodes noted in the sidebar will enable.

Table 1: US employment by major occupational group, 2008 and projected 2018

Employment, millions 2008 2018 % change 2008 – 2018 Professional and related 31 36 +16.8 Service 30 34 +13.8 Construction and extraction 8 9 +13.0 Management, business, and financial 16 17 +10.6 Office and administrative support 24 26 +7.6 Installation, maintenance, and repair 6 6 +7.6 Sales and related 16 17 +6.2 Transportation and material moving 10 10 +4.0 Farming, fishing, and forestry 1 1 -0.9 Production 10 10 -3.5 Total 151 166 +10.1

Source: U.S. Bureau of Labor Statistics, 2009. See “Employment Projections: Occupational employment and job openings data and worker characteristics” at http://www.bls.gov/emp/ep_table_106.htm, accessed October 6, 2010.

12 PwC Technology Forecast 2011 issue 1 Empowering the knowledge- As pointed out in the article Pink’s studies, and those of others, driven workforce “Embracing unpredictability” suggest strongly that research has (Technology Forecast 2010, Issue 1, proven something that businesses What should business leaders do to pages 6–10), organizations are haven’t taken consistent advantage empower digital natives and others so complex systems that create value of yet: the better way to motivate they can succeed in the knowledge- in two ways: incremental and helps employees to achieve three driven workplaces of the 21st century? fundamental innovation. Incremental personal goals: The first thing is to remove obstacles innovation can benefit from a • Autonomy—The urge to to motivation, including limitations conventionally managed approach, direct our own lives on access to tools and networks that but fundamental innovation demands knowledge workers need. In general, that organizations protect and nurture • Mastery—The desire to get knowledge workers are not as the unpredictable, creative effects of better and better at something motivated by traditional reward complex interactions that increasingly that matters systems as by an environment that take place on informal networks made • Purpose—The yearning to do ensures their autonomy and ability to possible by smart handheld devices. what we do in the service of make a creative impact. Knowledge something larger than ourselves10 workers are also motivated by the In an earlier era, 3M’s Post-it notes opportunity to develop their talent. became a success after an engineer Pink elaborates on the previous work It’s primarily talent that creates career in one group suggested the note of others, of course. For example, in security today—jobs and companies application for what started as an 2007, author Gary Hamel addressed come and go. adhesive invented by an engineer in the issue of developing an innovative, a different group. Without a culture creative corporate culture to attract Business leaders also need to that fostered the freedom to invent talent.11 Culture is at the core of the recognize that digital natives are the and collaborate in what constituted a issue Pink addresses, and culture most engaged knowledge workers marketplace of ideas, 3M would have certainly has been the focus of online, more so than knowledge missed an opportunity that turned out executive concern generally. workers as a whole. Digital natives to be crucial to its long-term success. Companies that already embrace need autonomy and creative channels these values will have a far easier time that extend outside the enterprise. With the Post-it note innovation, the with enterprise mobility than others. The extended, virtual organization 3M engineers demonstrated in the they work within is a patchwork quilt 20th century what Dan Pink calls a st 9 10 Ibid. of internal and external resources. 21 -century style of motivation. 11 Gary Hamel, The future of management (Boston: Instead of using carrots and sticks, Harvard Business School Press, 2007), p. 182. Take the example of a new sales leaders of the most-effective executive who uses his personal knowledge enterprises motivate smartphone for work. He’s by allowing autonomy and by accustomed to using Foursquare encouraging mastery and purpose and other social media to find (AMP). This was true for 3M then, opportunities to meet prospective and it is more so for all in this new era. clients and build personal relationships Business executives who foster mobile with them. He depends on the handheld freedom will encourage consumer applications his friends employees to reach out through their and acquaintances are using. That own networks to innovate and get phone is part and parcel of his things done, and in the process workspace. He creates value with it reinforce an enterprise’s support in significant ways that his managers of Pink’s AMP principles. may not recognize and do not directly measure. 9 “Dan Pink on the surprising science of motivation,” TEDGlobal 2009, July 2009, http://ca.ted.com/talks/dan_ pink_on_motivation.html, accessed November 19, 2010.

Unleashing enterprise mobility 13 From Pink’s standpoint, a broader Figure 4: Autonomy, mastery, and purpose as today’s motivators compensation model is central to effective cultural change. Enterprises Intrinsic motivation: should pay employees fairly, but Pink’s AMP enterprises also need to understand that what drives many knowledge 2020s workers goes beyond monetary compensation. A work environment that fosters self-actualization (psychologist Abraham Maslow’s term Cybernetic era for AMP) can ensure effectiveness and solid results. In contrast, the carrot-and-stick method may have worked well during the industrial age, Less flexible Smart More flexible enterprise handheld personal when consistent output from labor- apps era apps intensive mass-production lines was more important than agility. But it’s not well suited for the current age, when rapid knowledge creation and PC era its application provide the competitive advantage necessary for agility. Even more knowledge sharing in the future implies a greater need for AMP-style motivation, particularly in the 1980s cybernetic era, as Figure 4 illustrates. Extrinsic motivation: Financial, status, etc. Conclusion: 21st-century work The way work will get done in the cybernetic era will depend heavily on rapid and frequent as cybernetic craft knowledge sharing. That kind of knowledge-intensive environment, as Dan Pink notes, implies an even larger demand inside enterprises for AMP motivators. Work styles will be more Consider what AMP implies for the individualized than ever. Enterprises will have even more porous boundaries, as more teams 21st-century workforce armed with are created or disassembled and as employees behave more like independent contractors. smart handhelds. Digital natives, as Kim Woodward, vice president of corporate marketing at Citrix “A couple of banks that we talked “In the past, you had the one-size-fits- Systems, points out, “aren’t used to said it’s actually a recruiting all sort of mentality. Now companies to being as constrained as older tactic for them. They can tell fresh are starting to break down services so generations were.” They assume graduates that they are hiring, that they can access almost all of their the ability to reach out to other ‘You can bring in whatever device capability through an application geographical areas for talent. you want and we will support it,’” store,” says systems engineer When it’s possible with the help says Srinivas Krishnamurti, senior Ed Jimison of Intel. of virtualization to do work on director for mobile solutions any device in any location, the at VMware. Futurist and interactive media recruitment model opens up. Mobile consultant Mark Pesce12 underscores device freedom is emblematic of this With these new capabilities, work is the fact that application development open recruitment model, not to becoming more of a craft again. is becoming simpler, which empowers mention a direct recruitment tool. Businesses are enjoying a renewed business units and allows IT to play ability to craft solutions for the the role of craft master training the challenges they face, tapping a larger apprentice. “When you get tools like percentage of their employees, now Titanium (for the iPhone) or App that application development and mashups are easier. 12 See the interview with Mark Pesce on page 48.

14 PwC Technology Forecast 2011 issue 1 Inventor (for Android), you Smartphones extend IT to the edge significantly decrease the barriers to of the enterprise because they are entry,” Pesce says. “Over the next 10 mobile, and they are always with the years, those tools are going to become employee when the important work is more pervasive, the quality will go up, happening. But the most significant and the ease of use will go up.” “edge of the enterprise” is the individual employee, seeking the In essence, work itself has changed autonomy to contribute to enterprise because what constitutes the goals through mastery of ever- workforce is more a blend of changing knowledge and processes. individual and social networks Increasingly this is happening through mediated by highly personalized personalized mobile devices. devices, bound together by software. The work itself has become more Resistance to the organizational cybernetic. This cybernetic capability flexibility that enterprise mobility offers enterprises a built-in feedback- requires and IT prohibition of device response loop of the kind that Gap use will inhibit the value-creating recently discovered when it launched variability, because they reduce a new brand identity and had to react autonomy, self-directed mastery, and to a negative response on Facebook. commitment to enterprise purpose.

The Gap example suggests an opportunity for companies to solicit “Over the next 10 years, [application development] feedback publicly on initial ideas, tools are going to become more pervasive, the which will reduce the risk inherent in high-cost initiatives such as a brand quality will go up, and the ease of use will go update. Particularly when it comes to up.” — Mark Pesce of FutureSt Consulting consumer goods and services, the customer community is a much more frequent and active participant in enterprise workflow. The youngest generations in the workforce can help executives anticipate and respond to this kind of change. The rise of the smartphone ecosystem and its challenge to IT traditions of company- issued standard devices and company- dictated controls over applications must be understood in this context.

Unleashing enterprise mobility 15 Getting to your best mobile strategy Tom Conophy of InterContinental Hotels Group describes the importance of a sound cultural and management foundation for mobile innovation.

PwC: You have been doing some I knew this all coming in, because › really interesting things with IHG. the chairman told me what was How did you get started? going on. So I not only started to TC: I’ve been in technology for 30 establish myself with the business years now. I was approached by the teams, but also started to form the chairman of the board to consider core of what is now a pretty powerful IHG about four and a half years ago. technical group. The company was going through a significant transformation of its core We’ve established a little bit of Tom Conophy has been CIO brands as well as its corporate entrepreneurial fever by changing at InterContinental Hotels Group structure. It had been without a the cultural attitude. We got rid of (IHG) since 2006. Before joining technical leader for a few years, some of the Luddites, brought in IHG, he was executive vice and the chairman and the new CEO some new blood, and just changed president and CTO of Starwood wanted to reestablish IHG as a leader. things around. Resorts. In this interview, Conophy So I was brought on board to help debunks the notion that too many drive a technical direction and an We have built up an enterprise CIOs have their hands tied when overall strategy for the company computing platform following an SOA it comes to innovation, and he as it relates to technology. [service-oriented architecture] model, uses the example of the mobile and the services that we’ve created applications evolution to make With that mandate, we embarked on have enabled us to turn on some his point. a back-end refinement of all our core great mobile applications rapidly. systems. We have a booking engine that does between $20 and $25 billion If you don’t have the back-end a year in revenue. We have a Web suite capabilities, it’s hard to have a fairly of tools—a Web complex that books intuitive device that somebody can about $4 billion in revenue per year. use as a small pane of glass to look A logical extension for all of that was through to what that back end can into the mobile space. display. You are not going to type a novel on the phone, but we do book What’s at the core of your almost $3 million a month now on mobile strategy? mobile phones. We expect it to be toward $5 million by the end of the When I came on board at IHG, year. This time next year, I’d be the technical community was shocked if bookings are not over pretty demoralized. They were $10 million a month. disenfranchised, and the business really didn’t view them as value-add.

16 PwC Technology Forecast 2011 issue 1 Interview conducted by Alan Morrison and Bo Parker

So what did you do to get to We gave it an overhaul from a look- were downloading 4,000 apps a day that point? and-feel point of view, streamlined or something like that. The ratings the booking process to make it were very high, and we then We had a mobile app out there for a simpler, and leveraged inferencing surpassed the earlier players that long time. IHG was one of the first capabilities—we knew data about you had products out there already. companies to put out a mobile app for based on your phone, so we would not Ours was rated higher because we booking, but it was pretty lame. It need to ask you mundane questions took the time to make it pretty didn’t do too much. We recognized as part of a booking process. From a intelligent in terms of richness of that the device had a nontraditional human factors point of view, we ate capability without necessarily making browser, and so we changed the our own dog food, so to speak, and we the user interface complicated. format and would send out were critical of each other relative to appropriately rendered screens for how it worked. We translated some of the learnings the phones. It had usage, but not very from our overhaul of our mobile apps much. I think we might have been We targeted it for loyalty members in general into the iPhone apps. And lucky to break $200,000 a month in first. That helped significantly. That we took feedback from our early bookings, not very much. was October 2009. We went from adopters. We reached out and asked $200,000 a month in bookings to them what’s working or what’s not The early adopters tolerated an $1 million, and that was due to working, and what would you like it environment that didn’t work that well people using it on iPhone and to do? We had people internal to the because the phones themselves were BlackBerry devices. It wasn’t a business using it. We would set it up in not that great and the infrastructure specific iPhone app yet. lunchrooms and have people play and was lacking. The rendering give us feedback on the spot. That’s capabilities were not super. Then we built an iPhone app and not super sophisticated or scientific, released in May 2010. Right away, but it tends to work pretty well. Then the perfect storm scenario it was well adopted by the traveling happened. You had a higher adoption public. It was rated very highly—we of smartphones. You had better resolution, better capabilities. You had the advent of 3G and better networking, and then the applications “We recognized that the device had a non- themselves became much more traditional browser, and so we changed the intelligent. So we first revitalized our mobile offering, which was the format and would send out appropriately standard mobile booking application. rendered screens for the phones.”

Unleashing enterprise mobility 17 And this is all in-house development? competitors. It is the leader by far. Your interaction with your phone or That one is equally well received through some other form of access Yes, all in-house development. and getting a lot of presence, and should be as simple as asking an We had a small team of guys who that’s helped to kick our bookings to assistant to get you to Seattle on were really deep into it, and so we just $3 million a month and climbing. The Thursday, and the assistant runs turned them loose and then did a lot adoption has been extremely high. I away and does all the stuff. of whiteboarding. I have a human- have some guys in the group working factors passion. I’d come in and we’d on another twist for the latest cut of If mobile devices become dominant project all of the wireframes onto the new Android 10. by 2012, are we entering a world large whiteboards and just basically of ubiquitous docking stations at rip them apart. But it was healthy; We are looking at how to extend some point? the culture supports that. It’s not beyond booking. Think about a uncommon to be critical and at the For most executives and most business concierge in your pocket. Say it same time make suggestions. It’s a types, it’s about quick access to doesn’t matter if you are booking or very collegial, very collaborative information. There may be producers not. If you are part of our family and environment—one that might not of that data, and they may be sitting in you have a need, for whatever it might work well at all corporations, but it centers in the Philippines or India or be, our concierge services help with works well within the technical wherever else cranking out systems ideas for places to go, and the app community that we have established support capabilities. But the links to Yelp and other services that inside of IHG. executives are more knowledge people use more frequently now. workers, and they are taking data in I have about 800 employees across small bites and small formats or We’re trying to make sure that IHG the globe. I’ve always been a strong dashboards. With the use of color and has a small position there in terms of believer that you have to give people graphics, you can translate lots and your mind share, and it’s not just outlets. They have their day jobs, and lots of information, and you can set up about, “I have a business trip and I then they have their passions. The filters to avoid needing to zip through need to think about where I’m going idea is to try to turn on some of those a lot of stuff. to stay in Prague.” The concierge for passions. So we’ve established these IHG can maybe answer this hotel labs, and we let anybody with Our viewpoint is that the smartphone choice question for us and then send reasonable ideas come in. I have two will evolve to a hybrid between it and the message that way. rules. One, don’t burn down the hotel, a tablet of some kind. We are looking and two, don’t electrocute the guest. at these Droid tablets. They may be We are also doing some things with It’s all based on giving knowledge too big to put into a coat pocket, but instant messaging. Instant messaging workers the freedom to experiment they are going to be smaller than the has more than 350 million daily users, and then giving them the tools and laptops that people have today and and we are thinking, “Why not enable the resources to make that happen. there’s going to be a certain form a very simplified booking process factor that people will settle on. This is through instant messaging as opposed It sounds like you are tapping into because finger sizes are the way they to a traditional Web site or some other the increased ability to interact with are, and eyesight is what it is. Unless navigation?” It’s just another non- the guest in some form or fashion. you issue monocles with your devices, traditional access method. With And as the guest gains an online you can’t expect corporate computing template-based booking, you can turn presence, you can tap into that to be done only on small-glass devices. that thing into a template, and then online presence more and more, you can instant message it very simply and extract the information you If you take the average size laptop and with just a couple of parameters, such need to respond to the guest’s maybe take that to three-quarter size as a new date, as long as the system personal needs. or maybe even smaller, that’s what we knows your profile and preferences think people will end up using. The Exactly. We have the ability now to behind the scenes. It takes all that into traditional desktop is for all intents send alerts and things like that account, does the searches, puts and purposes gone in most companies. through the application itself. The together some potential itineraries, We think people will use a personally standard mobile app is still humming and comes back and says, would you owned device, and with it they will on nicely, and the iPhone app has like option one or two or three? have access to corporate content done fairly well. I think it’s done great, that most likely will be shifted into relative to our sector and our the cloud.

18 PwC Technology Forecast 2011 issue 1 Several of the CIOs we have talked to over the years say they’re “What I call ‘traditional CIOs’ usually came out of not able to do what you are doing. the data center world. They just don’t have what You really focus squarely on R&D [research and development] and I call the killer instinct, and they certainly don’t the leading edge. They say, well, have a software-centric background. Every time I we have to keep the lights on and we need to X, Y, and Z, and just come across a CIO like that, I can tell you exactly those things consume all our time how they came up in the organization.” and budget. Those guys just don’t get it. Whenever someone like that talks like that, the What I call “traditional CIOs” usually But personal information CEO should automatically just fire came out of the data center world. would remain. them. They are not doing their job. They just don’t have what I call the Within the last four years, That’s right. We really don’t killer instinct, and they certainly don’t I have reduced my overall operating want to cross that line. So we’re have a software-centric background. cost by 20 percent, but yet we focused right now only on our Every time I come across a CIO like probably do 200 percent more than corporate information, working that, I can tell you exactly how they we ever have. We do something called through our legal teams to make came up in the organization. Those Fuel for Fire. We create operating sure we have all of our bases covered. that are really out there firing on all efficiencies and savings that turn The bottom line is that we want to pistons have tended to come out of the around and enable us to put more communicate to the staff, “Here’s software side. The rest either don’t monies toward investments. I carve what we are doing, and here’s what know how to do it, or they are so risk out what we call a CIO fund, and I this all means.” And then if they opt averse they would never, ever risk pitch it whenever I submit my budget. in, that’s great. If they don’t, they can their position by even attempting to It’s about a million dollars a year now. just get a standard corporate-issue do it, and they have established the I have earned it through our track device they get today and be happy culture of losing, frankly. records. Remember, when I came about it. to the company, the place was a IHG is forward looking, but as of shambles, and we were able to today, you still issue enterprise- turn around the whole mind-set. owned devices, correct? The gulags [IHG’s development labs] Today we issue a BlackBerry, and then don’t cost me jack. We just took a we have a series of laptops. By the first couple of big conference rooms and quarter of 2011, our goal is that you changed them. I have done things like can have what we call a CP, a bring in free soda, juices, and water. corporate phone, or an individual This is not rocket science. We phone. And regardless of which way renamed all the meeting rooms after you go, you will sign a document that mathematicians and scientists. We put says that should you move, IHG will in stress-relieving rooms, where other blank the device and all corporate things can be dealt with, foosball information will be scrubbed. tables.... That doesn’t sound like a lot, but it is a big corporation. You have to establish the environment, but that doesn’t cost very much money.

Unleashing enterprise mobility 19 20 PwC Technology Forecast 2011 issue 1 Mobile technology’s journey from peril to promise App-centric handhelds are maturing rapidly, and the path to secure adoption is more straightforward than it may seem.

By Galen Gruman

Given the passion for mobile computing among users are discovering they’re not yet familiar enough with the › and the tech industry, it is easy to get swept up in the technologies they need to understand and exploit. This excitement and see mobile as the solution for everything. article sorts them out. It’s also not hard to write off the technology as a fad that will run its course. We’re betting the first camp is more on There are also shifts in the interaction between businesses target, given the rapid adoption of mobile technology by and their employees and customers that will affect the business users and consumers with fervor reminiscent of design and management of mobile enterprise applications. the early PC days. This shift involves the acceptance—even the embrace—of a certain amount of device heterogeneity; that is, employees In conversations with CIOs and other IT leaders, PwC and customers use their preferred tools and businesses sees a sea change in attitude toward mobile devices. Once seek to exploit the special characteristics of the more viewed as an oddity to be kept at arm’s length, they’re now popular devices while providing a baseline of enablement seen as a platform for enterprise value through their existing for the others. functions and ones not yet invented. Heterogeneity extends to each individual device, which The key reason for this change in attitude? The new due to its personal nature will mix personal and business generation of devices, represented by the Apple iPhone data and functionality, and will require a different and handhelds that use Google’s Android operating management mentality by IT. Technologies now under system, is evolving from a messaging platform into an development may ease efforts to support this heterogeneity. application platform, making the devices more versatile for business needs—that is, more like a PC. So much so The big issue has been control: Can the business ensure that Standard Chartered recently switched to the information security in mobile devices if they are used for applications-oriented iPhone. both business and personal matters? This is a real concern, especially because the platforms igniting the most passion— As the mind-set shifts from “containing the newfangled Apple’s iOS and Google’s Android operating system—have devices” to “getting business value from them,” enterprises been slow to provide control mechanisms. Recent changes to

Unleashing enterprise mobility 21 both indicate the control issue will be resolved in the next year or two. As “The iPhone changed the whole world, because all control issues are resolved, IT will be of a sudden the people within the enterprise were able to focus on value-creating efforts, exploiting the emerging mobile demanding that the iPhone be used. And then it technologies along the way. became the CFO’s job or the CIO’s job to say yes, rather than to say no.” — David Goldschlag Solving the control requirement with new technologies of McAfee

When businesses began to use BlackBerry devices (and later began to use it for business e-mail if TouchDown and Good Technology’s Windows Mobile, Nokia Symbian, they weren’t restricted from doing so. Good applications for Exchange and Palm OS devices), IT realized messaging, and the forthcoming the need to secure the messaging Now enterprises are taking the IBM Lotus Notes Traveler for Notes and server access they provided. next step. messaging. Google is likely to develop Management tools similar to those competitive management and security used for PCs were soon available, “Everybody wants to tell their employees, capabilities soon. Microsoft’s new along with on-device capabilities ‘You don’t have to carry a corporate Windows Phone 7 does not yet have such as at-rest and in-motion data phone and a personal phone,’” says such third-party tools to fill in some of encryption, remote management, David Goldschlag, vice president of its security deficiencies, but Microsoft and policy-based administration. mobile technology at McAfee. “The has said it will enhance its security iPhone changed the whole world, capabilities in 2011. For enterprises Because the focus was messaging, because all of a sudden the people within that have the highest security mail servers were the main conduit the enterprise were demanding that the requirements—such as the Pentagon— between the device and the data iPhone be used. And then it became the BlackBerry and Windows Mobile are center, which simplified the CFO’s job or the CIO’s job to say yes, the two options, due to their military- deployment and management rather than to say no.” grade encryption and support for effort. Mail servers also tapped into two-factor device-based authentication. Active Directory and other policy- Security was the stumbling block. management servers, allowing IT to Apple was slow to add enterprise-class Another shift easing the control burden extend those services to mobile usage. security capabilities, but it did so in is broad adoption of the Microsoft the summer of 2010, providing Exchange ActiveSync (EAS) protocol Most companies viewed mobile devices operating system–level services and for managing and enforcing device as messaging clients and standardized application programming interfaces permissions. Microsoft’s devices and on the BlackBerry, giving themselves (APIs) that let the mobile management servers support it, of course, but so just one platform to manage. Some vendors—AirWatch, BoxTone, Good do Apple’s devices and mail clients, companies used the ability of Technology, MobileIron, Symantec, Google’s corporate Gmail service, and, Windows Mobile to run specially the Afaria unit of SAP Sybase, Tangoe, to lesser extents, the Google Android, built applications, such as for field Trust Digital, and Zenprise, among Hewlett-Packard/Palm webOS, forces, and added that platform as others—deliver management tools Microsoft Windows Phone 7, and Nokia the standard for certain classes of similar to those for BlackBerry and Symbian operating systems. IBM’s Lotus users. Microsoft made it easy to do Windows Mobile. Notes recently adopted EAS, and Novell so by extending its widely deployed has released a beta mobile server Windows Server applications to Four of the six major platforms can add-on based on EAS for GroupWise. manage these devices. now be managed to the standards of This near-universal adoption of EAS most businesses; in order from most should allow consistent policy definition This situation remained stable until capable to least, they are BlackBerry, and management for IT. The “Mobile about 2007, when the debut of the Apple iOS, Windows Mobile, and device management products” sidebar iPhone redefined mobile computing to Nokia Symbian. Although, as Forrester compares the mobile device encompass more than messaging and Research has noted, Google has not yet management options—EAS and field force applications. It first skewed focused on security management, and otherwise—the main vendors have toward personal use, with its tie to the there are tools to give IT assurance over made available. Apple iTunes service, but users quickly Android devices—such as NitroDesk

22 PwC Technology Forecast 2011 issue 1 Mobile device management products As smartphones and tablets become common set of policies, ensuring These tools use one of two commonplace, and as employees make consistent policy enforcement and approaches, and sometimes both: the case to bring various kinds of providing auditing capabilities as they use policy profiles, typically devices into the workplace, IT faces well. Common capabilities include based on the widely used Microsoft the challenge of managing access, remote wipe and lock, password Exchange ActiveSync (EAS) protocol, usage, and security across multiple enforcement, device encryption and they use a client application on mobile devices. To address that need, enforcement, restricted access to each supported device to provide the many vendors have developed mobile designated virtual private networks managed, secured workspace and device management (MDM) tools that (VPNs) and Wi-Fi networks, and additional policies. Those that support provide a central console to manage remote policy installation. the BlackBerry work with Research In multiple devices over the air with a Motion’s own tool, BlackBerry Enterprise Server (BES).

MDM support by operating system and specific capabilities

Operating system supported BlackBerry Windows Symbian Android webOS Mobile iOS Product / vendor Specific capabilities

AirWatch     Provides content-filtering policies, data-roaming policies, and allows (on iOS 4) AirWatch selective wiping of business data (leaving personal data intact for employee- owned devices)

BoxTone     Provides tools for troubleshooting user devices, user self-registration, and asset BoxTone tracking (including carriers used)

Good for Enterprise and     Permits control over application installation, allows (on iOS 4) selective wiping of Good for Government business data (leaving personal data intact for employee-owned devices), and can Good Technology be set to allow only specific device/operating-system combinations

Trust Digital EMM      Provides tools for troubleshooting user devices and user self-registration McAfee

MobileIron Server       Permits control over application installation, allows (on iOS 4) selective wiping of MobileIron business data (leaving personal data intact for employee-owned devices), and provides telecom expense management capabilities

Afaria      Provides control over application installation, lets IT set up an internal “app store,” SAP Sybase and permits asset tracking of mobile devices

Mobile Management     Provides application update management, asset management, and endpoint Symantec security capabilities such as anti-malware

Source: InfoWorld, 2010

Unleashing enterprise mobility 23 Differential management in August 2010, brings the same TouchDown, can encrypt their supports mixed devices approach to Research In Motion’s sandboxes and allow themselves to newest smartphones. Mobile be managed by IT-controlled servers The July 2010 release of Apple iOS 4 management vendor MobileIron says (Lotus Domino and Microsoft (for iPhone, iPod touch, and iPad) the operating system for Google’s Exchange, respectively). also untied iOS management from Android is likely to have similar the natively supported mail server capabilities in the next year or so. The differential management (POP, IMAP, Microsoft Exchange, approach pioneered by iOS and Google Gmail, and Apple MobileMe), Even without differential BlackBerry OS is a major step in so devices could be managed management at the asset level, most ensuring security and compliance— according to user sign-on—for smartphone operating systems use and it’s more than a corporate laptop example, in a hospital where devices the concept of sandboxing, in which or home PC can do today. Although are shared but e-mail accounts are applications have private space for technologies such as client not necessarily issued to users. their data. Thus, the applications can virtualization were proposed in 2006 control access to that data by other to give PCs the same level of safe iOS 4 also introduced differential applications, and management tools business/personal dual use, they management in which applications can apply greater controls to such haven’t been productized. Mobile’s and data are tagged so each server applications than the operating much more intense personal nature owns whatever it provisions. Thus, system might provide. This is the case and corporate IT’s concerns have on an iOS device that had corporate in Google Android, which currently pushed mobile ahead of desktop in and personal assets, the corporate has no on-device encryption and does this area. Table 1 compares specific server could reach into the device not have a management API outside security and management capabilities and lock, restrict, or delete the assets of support for a limited set of EAS by operating system. it provisioned, leaving other assets policies. But individual applications, untouched. BlackBerry OS 6, released such as Notes Traveler and

Table 1: Mobile security and management capabilities compared

Hewlett- Packard Microsoft Microsoft Nokia RIM Apple Google webOS Windows Windows Symbian BlackBerry Capability iOS 3.x, 4.x Android 2.x 1.x, 2.0 Mobile 6.x Phone 7 2.x, 3.x5 5.x, 6.x On-device encryption Yes Yes No Yes6 Yes Over-the-air data encryption Yes Yes Yes Yes Yes Yes Yes Complex passwords Yes Yes Yes No Yes Yes Enforce password policies Yes1 EAS (2.2 only, EAS TPS, EAS EAS TPS, EAS BES requires PIN only) Support VPNs Yes Yes Yes (2.0 only) Yes No Yes Yes Disable camera Yes1 TPS, EAS BES Restrict/block application stores Yes1 TPS, EAS BES Restrict/block wireless LANs Yes1 TPS, EAS BES Remote lockout Yes1 TPS (2.2 only) EAS TPS, EAS EAS BES EAS (2.2 only) Remote wipe Yes1 TPS (2.2 only) EAS TPS, EAS EAS TPS, EAS BES EAS (2.2 only) Selective wipe of business TPS (4.x only) BES applications and data only (6.x only)

Enforce and manage policies TPS (4.x only) EAS (2.2 only) EAS TPS, EAS EAS TPS, EAS BES EAS EAS policies supported 14 9 (2.2 only)2 5 293 7 Not available None4 Manage over the air TPS (4.x only) TPS EAS TPS, EAS EAS TPS, EAS BES EAS EAS (2.2 only) Second-factor authentication Some device Some device (RSA SecurID) models models

EAS = via Microsoft Exchange ActiveSync 2 Some third-party e-mail client applications support 4 BES supports more than 400 policies of its own BES = via BlackBerry Enterprise Server 5.x additional EAS policies within those applications only 5 TPS = via third-party server Select Nokia Eseries and Nseries devices only 3 Exchange Server Enterprise license is required for 6 1 Via choice of Apple iPhone Configuration Utility (no over- support of all 29 EAS policies, lower-tier licenses Storage cards not encrypted the-air confirmation or auditing), EAS, and 3PS support 15 EAS policies Source: InfoWorld, 2010

24 PwC Technology Forecast 2011 issue 1 Virtualization for enhanced application, says Srinivas The flaw with the thin-client approach security and app delivery Krishnamurti, VMware’s senior is that most applications are designed director for mobile solutions. Client for desktop screens and are difficult to Vendors are working on virtualization virtualization also could be used to use on a smartphone. That’s why technology to let enterprises partition run native applications in their own Citrix reports most of its mobile usage business assets from personal ones environment. Doing so would isolate is on a tablet, the iPad, a trend it on the same smart device. These their data and services from other expects will accelerate when other approaches could also enable IT to applications and services on the tablets begin to appear in 2011, deliver single-application instances device, thus providing a high level of Woodward says. to multiple mobile operating systems security and data protection, he says. rather than re-creating the application Web-based applications can more for every supported device. The thin-client approach runs the easily auto-reconfigure to fit the user application using the data from a interface of a smartphone, because There are many virtualization server; the mobile device is just the dynamic HTML, JavaScript, and approaches, but for mobile vendors screen and input medium for the related technologies provide for such the focus is on client virtualization computing performed in the data contextual interfaces. As previously (VMware), thin clients (Citrix center. Data and application noted, such applications and their Systems), and hypervisors (Open components may be temporarily data are not as fully separated from Kernel Labs). These approaches loaded to the mobile device in a the rest of the device as a thin-client separate applications and their data cache for processing efficiency, but session is. at a deep level on the device, so that they are never stored beyond the barriers are harder to breach than session. Thin-client applications The mobile hypervisor approach is with sandboxing and source tagging. are already widely used in financial similar to client virtualization, except services and other industries that that it doesn’t run on a host operating Client virtualization creates a require a strong separation and system; it runs underneath the host runtime environment for applications protection of resources. Typically, operating system, communicating and their resources—similar to Windows applications are run directly with the device hardware. Adobe AIR, Adobe Flash, Microsoft remotely from a desktop PC that That approach offers the greatest Silverlight, and Oracle Java, which never stores the information being possible separation of resources, can run applications on Windows, used. Citrix is hearing from such firms because the guest operating systems Mac OS X, and sometimes Linux. that they want to extend the use of and the applications that run on them Thus, users don’t need to switch from thin clients to iPad tablets and the are isolated from each other—and one environment to another as they coming set of new tablets, says Kim from the host operating system and its did in early desktop virtualization Woodward, vice president of applications. Figure 1 illustrates the products. Instead, they can launch an corporate marketing at Citrix. main differences between the three application that happens to run in its types of mobile device virtualization. own virtual environment, using the host operating system’s user interface and shared services. Users don’t need to switch from one environment Client virtualization could be used to to another as they did in early desktop develop VMware applications that run natively on iOS, BlackBerry, Android, virtualization products. Instead, they can launch and Windows Phone 7 (assuming an application that happens to run in its own operating system vendors and wireless carriers permit it), so IT would need virtual environment. to create just one version of the

Unleashing enterprise mobility 25 Figure 1: Three types of mobile device virtualization User User User

App App App App App App Thin- VM #1 client app App App App App App App App App App

App App App App App App App App App App App App VM #2 App App App App App OS #1 OS #2 App App App

Hypervisor OS OS

Hardware Hardware Hardware

Mobile hypervisor (Type 1) Virtual machine (Type 2) Thin client A hypervisor sits directly on top of the In Type 2–style virtualization, virtual A thin client relies on the server for storage hardware, allowing multiple virtualized machines run within a host operating and computation. It merely acts as a display, operating systems to run above it. This is system. In essence, they virtualize the host or a “pane of glass,” for the end user to see also known as “bare-metal” virtualization. OS, not the hardware directly. what the back end serves up.

The virtualization types can be used in a variety of combinations.

Open Kernel Labs notes that Motorola All three vendors say current applications and data; the Citrix has shipped the Evoke, which runs smartphones have the processing Receiver thin-client application is the Binary Runtime Environment power and memory to support already popular among mobile users, for Wireless (BREW) and Linux these technologies. But they’re not the company reports. cell phone operating systems yet implemented because mobile simultaneously. Users see a unified operating system makers are The path to broad adoption of the interface because the Open Kernel deciding to what extent they want other forms of virtualization is less Labs technology allows the device to support alien operating systems obvious. As the next section explains, maker to integrate user interface (UI) and whether they want to add the Web-based applications can provide elements, deciding at a granular level extra layer. PCs don’t have this level similar universality without the the degree of separation across the of internal safeguard, so adding it overhead of virtualization. It’s also not operating systems, notes Steve Subar, to mobile has not proven urgent. certain that mobile platform providers the company’s CEO. Like client will support the VMware or Open virtualization, the hypervisor Of the three approaches, the thin Kernel approaches; today, for approach could be used to run client most likely will soon be widely example, Apple prohibits the use of multiple operating systems, multiple available for segregating applications non-native runtimes such as Adobe instances of the same operating from the mobile device’s other AIR and Flash and Oracle Java on system, or a combination of the its iOS. two on the same device.

26 PwC Technology Forecast 2011 issue 1 Extending corporate apps to the mobile environment “It would be my preference as a developer that we will do this all in HTML5, and everything is Virtualization could help IT tap legacy applications and create new going to be much more Web-based across all “write once, run all” applications these platforms.” —Aaron Levie of Box.net for a heterogeneous environment, but there’s a simpler approach in many instances: Web-based applications, including cloud The networking infrastructure also is Although HTML5 is several years from applications. Using Web-based improving and can support the need final status and ratification, major applications has several advantages. most Web applications have for components are already implemented continuous network connectivity. Wi-Fi in most popular mobile and desktop First, they require no new technology networks are increasingly available in browsers, providing an opportunity on the mobile device: the browsers public and private buildings, and 3G for IT to test and use the capabilities all support HTML and JavaScript. and emerging 4G cellular technologies over time. Box.net CEO Aaron Levie are approaching availability and speeds summarizes the ideal scenario: Second, IT can adapt many Web that reliably fill most gaps between “It would be my preference as a applications created for desktop Wi-Fi networks. The issue of not having developer that we will do this all in users, including front ends to reliable connectivity is fast receding. HTML5, and everything is going to enterprise resource planning (ERP), On the provisioning side, higher- be much more Web-based across all human resources (HR), order-entry, capacity servers and storage media for these platforms.” and other enterprise applications. general uses, such as thin-client access, The user interfaces will require and specialized uses, such as video HTML5 is not a prerequisite for redesign to fit the mobile screen and streaming, allow the back-end capable Web applications. Today’s to accommodate the touch interface’s infrastructure to handle provisioning mobile Web applications typically lack of fine input positioning of the to hundreds of millions of data-capable use the HTML4 specification and cursor. Using existing dynamic mobile devices already deployed. add-on technologies such as JavaScript, HTML techniques, IT could establish but HTML5’s adoption will allow automated layout re-rendering on Third, in many instances, IT can developers to offer applications the basis of device detection, so IT avoid native application development with additional capabilities and would need to support only one on multiple mobile platforms by richer user experiences. core application rather than develop using the draft HTML5 specification, several versions. Differences among which Apple, Google, Hewlett- Futurist and interactive media mobile browsers will require custom Packard/Palm, Nokia, and Research consultant Mark Pesce figures exceptions in the HTML and In Motion have adopted in their that 90 percent of mobile application JavaScript code—much as the case mobile browsers. Microsoft has not development could take place in for various versions of Internet joined the HTML5 bandwagon, but HTML. “HTML is your low-hanging Explorer, Firefox, Chrome, and says it will add HTML5 support to fruit,” he says. “So you’ll think about Safari desktop browsers. its new Windows Phone 7 operating how to farm out your 10 percent to a system at some point. tiny little app that’s not going to take The supporting infrastructure is much development time to deploy, but improving rapidly, as solid-state The local storage facility in HTML5 does just this one thing that you can’t storage, processing, compression, and can help Web applications continue do in HTML5.” Figure 2 considers that bandwidth improvements make Web to function even when disconnected scenario, associating application types applications richer. These advances, from the Internet, at least using the with the kind of development needed plus advances in virtualization and data cached on the device before for that type. According to those such user-interface mapping between the connection is broken. HTML5 as Pesce who are close to the topic, mobile devices and desktop-oriented also supports location data, which HTML5 methods can cover the vast server applications, also make the use lets Web applications tap into majority of application needs. of thin-client computing—such as one of mobile devices’ key through Citrix, Microsoft, or Wyse information streams. terminal services—more attractive where the Web application approach is ill suited.

Unleashing enterprise mobility 27 Figure 2: Enterprise mobile application development circa 2012

Common smart handheld services Texting, Bluetooth, Wi-Fi, camera, accelerometer

Mass-consumption applications HTML5 only Content applications (news, books, video…) airline boarding passes, cloud storage

Employee horizontal HTML5 only Common corporate applications such as ERP, applications CRM, MRP, cloud-based office productivity tools

Competitive HTML5 + Mobile payments with device-based applications native SDKs authentication navigation, visual analytics

Device-dependent Native SDKs Games, environmental monitoring applications, applications chemical analysis tools

Mark Pesce estimates that 90 percent of mobile applications developed during the forecast period could be handled by HTML5. Only the remaining 10 percent need be native to the device.

Current and future HTML But screen size is not the only user As an interim step, IT can use such technologies are likely to be used interface mismatch. These client clients to make existing applications by vendors of software as a service. technologies as yet do not support available to compatible mobile Salesforce.com, SAP, Netflix, Box.net, the rich gesturing capabilities of devices. After all, mobile users are and others have already created smartphones and tablets. As a result, familiar with using regular Web sites mobile applications with such interactivity generally consists of on their devices and adjust their technologies. So IT can likely extend mouse-style actions, which usually expectations accordingly; the same any cloud service effort to include are more limited than gestures and principle applies to using Flash or mobile users. require more precise motions than other client applications. finger-based gestures allow. Other Web-style application Web-style applications are particularly approaches include client Thus, PwC does not expect such suited for information consumption environments such as Adobe AIR, clients to be a significant mechanism and for lightweight content creation Adobe Flash, Microsoft Silverlight, for providing multiplatform and transactions, what PwC calls and Oracle Java. However, these applications, at least not until they “engagement”—the same kinds of use clients are not universally supported. better handle the gesture approach cases for which Web and cloud services And none of these clients has of mobile interfaces. Adobe Systems make sense. Because mobile devices facilities for re-rendering the user has said it is working to revise Flash are best suited for such information interface automatically for the client to support such standards, whereas consumption and engagement, we device, so such applications will Microsoft has built such capabilities expect most businesses to focus on require significant redevelopment into Silverlight for Windows Phone 7 these Web-based application for mobile, even if the underlying but not for the desktop version of development and delivery technologies process logic can be used. (The Silverlight that would play on a to support most mobile users. user-interface issue is less acute on Web site. tablets, due their larger screen sizes.)

28 PwC Technology Forecast 2011 issue 1 The new breed of mobile applications “A native mobile app should provide a user experience that is difficult or impossible to provide HTML5 and client environments are useful for porting existing services to via the Web.” —Mark Pesce of FutureSt Consulting mobile devices and for enabling content-consumption and engagement applications, but they are less useful with mobile-specific attributes. One of technology,” Koushik says. “When I Early adopters already see advantages reason for this is that each mobile started working with my application in such novel uses. For example, operating system has unique functional developers to put out mobile apps on InterContinental Hotels Group (IHG), and/or interface capabilities that the these devices, a key question was, which manages 45,000 hotels more generic Web technologies can’t ‘How do I make sure that the globally, has provisioned iPad tablets take advantage of. Another is that experience—and the customer’s to concierges so they can help clients existing technologies don’t have perception of Nationwide—is a get information or book reservations mechanisms to handle common sensor good one?’” anywhere quickly, and not be tied to data from the devices—such as a kiosk while doing so. Another IHG acceleration, spatial orientation, PwC sees two additional rationales for application allows guests to book and ambient light levels, and proximity developing native mobile applications: manage their hotel accounts while on the go, increasing mobile bookings detection—that could be used for new • People have their mobile devices by 500 percent in less than a year, classes of services and applications. in situations where they don’t says CIO Tom Conophy. And IHG is have their PCs, creating the testing an application that uses the Thus, developers will also need to opportunity to apply technology smartphone’s speaker to emit an audio create native applications on mobile in new domains for employees, code to unlock a guest-room door, so platforms that users or customers partners, and customers. Current guests don’t even need to check in to favor. That support means more examples include scanning bar get a key. than simply having a “skinned” Web codes of products to look up more application for the devices. Users form information or check pricing Conophy says IHG is using different strong allegiances to the way their elsewhere, providing maintenance devices for different purposes, smartphones work, and they expect the staff current status on work based on fit for the job for internal key applications they use to follow the requests when they’re in the field, applications and customer demand same approaches and tap into what and acting as remote controls for for external ones, which in turn they consider special about the devices. Wi-Fi-enabled devices such as requires a more flexible planning “A native mobile app should provide a TVs, building automation systems, and deployment process than has user experience that is difficult or and security cameras. impossible to provide via the Web,” been typical. says Pesce of FutureSt Consulting. • Mobile devices have built-in sensors—cameras, microphones, Nationwide has also deployed several To go native means to honor each location detectors, accelerometers, mobile applications. A popular one platform’s user experience even ambient light sensors, compasses, for its agents lets them take photos if it means providing different and proximity sensors—that of an accident site and upload them functionality, says Srini Koushik, provide the opportunity to tap to the claims management system, CTO of Nationwide. In some cases, into contextual information for which speeds claims processing, such as Apple iOS, the operating new types of applications. Current says Koushik. system creator enforces adherence to examples include pedometers such standards, while in others, the that calculate energy use, routing creators promulgate but do not tools to direct drivers to their enforce design guidelines. “There’s a destinations based on current lot of benefit to that, especially when conditions, and visual heart-rate you get into the customer market, monitoring. Sensors can be added where people use technology but they via near-field wireless networking don’t want to worry about the details for continual blood pressure and glucose monitoring.

Unleashing enterprise mobility 29 Standard Chartered is now In some cases, multiplatform software Conclusion investigating what applications development environments, such as would benefit its staff. “We don’t the one by the Eclipse Foundation The rise of mobile device usage by want to create an app just because and commercial products from employees and customers has the it’s neat; we want it to be something Appcelerator and Rhomobile, will ease potential to introduce transformative that will add value to the bank and the development of multiple native capabilities into business, but at a cost make people’s lives easier,” says versions of an application. But PwC of accepting platform heterogeneity Todd Schofield, who leads a mobile believes that the richest applications and sharing ownership of devices development unit for the bank. will need to be developed on the with employees. His unit is looking at the use of native development tools provided by location-based services to tell what’s each mobile operating system creator. Although the current stable of mobile going on in an office or a city, and Even today, a mix of applications operating systems is daunting, at the bar-code-reading feature of exists depending on the degree of PwC expects the number of viable the iPhone for asset-management desired nativeness, and PwC sees platforms will shrink to a manageable tracking of PCs and to track no reason why that fact will change. four to six, and most companies bar-coded paperwork. could focus on perhaps three.

Figure 3: Milestones on the mobile technology road map

In just the last two years, every major smartphone platform has undergone significant change in response to the leading example of the iPhone. In the process, vendors have added unique value on top. The pace of change will remain swift, but the future rarely unfolds as anyone predicts. Directionally, businesses should be on the lookout for these predictions.

Mobile wallets become High-speed, near-field LTE penetration in standard; 3D gesture communications North America interfaces and displays becomes commonplace becomes widespread come to market

2011 2012 2013 2014 2015 2016 2017 2020

Smart tablet is used Device management capabilities Voice recognition and noise Sensors on a chip Image miniaturization in unexpectedly extend to all major smart cancelling become useful; become cost-effective and projection, productive ways handhelds; APIs surface for sensor HTML5 specification gains wearable device data and controls; extensions to approval, with extensions still in adopted HTML5 emerge the review phase; smartphones and tablets pass laptops in usage away from home

30 PwC Technology Forecast 2011 issue 1 Still, that reality will mean being Applications—both client and Above all, experimentation is more focused on application back end—need to be modifiable important because users are just functionality, rather than trying to take advantage of new mobile starting to figure out what they can to deliver Swiss army knife–style capabilities as they appear, without do with these versatile devices that “do it all” applications. And it will massive reprogramming. are always at hand, and technologists require knowing when using a keep inventing additional capabilities. common technology such as HTML5 User interface expertise will become PwC does not expect this opportunity- is a workable approach versus critical, because mobile devices are providing instability to settle down for creating native applications for fundamentally different from PCs on some time yet. In fact, as the timeline your target platforms. this score. Also, because users and in Figure 3 points out, the series of platform developers are still figuring developments we anticipate over The heterogeneity of mobile devices out what works best, best practices the next decade will likely provide and the rapid change in enabling are unclear, requiring more ongoing plenty of opportunity, not to technologies such as HTML5 mean attention on UI issues than is typical mention instability. that companies will need to rethink for corporate application development. how they adopt and deploy them. Application development and platform adoption time frames need to be flexible and short.

In just the last two years, every major smartphone platform has undergone significant change in response to the leading example of the iPhone. In the process, vendors have added unique value on top. The pace of change will remain swift, but the future rarely unfolds as anyone predicts. Directionally, businesses should be on the lookout for these predictions.

Mobile wallets become High-speed, near-field LTE penetration in standard; 3D gesture communications North America interfaces and displays becomes commonplace becomes widespread come to market

2011 2012 2013 2014 2015 2016 2017 2020

Smart tablet is used Device management capabilities Voice recognition and noise Sensors on a chip Image miniaturization in unexpectedly extend to all major smart cancelling become useful; become cost-effective and projection, productive ways handhelds; APIs surface for sensor HTML5 specification gains wearable device data and controls; extensions to approval, with extensions still in adopted HTML5 emerge the review phase; smartphones and tablets pass laptops in usage away from home

Unleashing enterprise mobility 31 Blending work and life on smartphones Todd Schofield of Standard Chartered makes enterprise application platforms from consumer smartphones.

PwC: What’s your role currently What’s the strategy behind › at Standard Chartered, and what the plan? were you doing before you came We want to be more application to the company? driven than e-mail driven, which is TS: I’ve been with Standard Chartered why we chose to convert to 8,000 for a couple of years now. I moved into iPhones. We want to move from a new role about a year ago to do a an e-mail-centric device to an transition to the iPhone. I also recently application-centric device that relocated from Singapore to the San also does e-mail. Todd Schofield is the global Francisco Bay Area to set up a small head of enterprise mobility at innovation technology office for What we are really after is how we can Standard Chartered, a bank Standard Chartered. Our plan is to do business more effectively with an headquartered in London with tap the Silicon Valley and the San application-centric platform. In our 1,700 branches in 70 countries. Francisco Bay Area resources that case, the bank is buying each iPhone, In this interview, Schofield outlines can really help ensure that we deliver and so it’s considered a corporate the bank’s innovative approach very rich content. device—not something the individual to standardizing on an application- owns. The bank owns the iPhone and centric smartphone platform, Before taking on this role, I was in the data plan for it. And we are and he describes how smart charge of the client systems at Standard building the infrastructure to be able handhelds have opened new vistas Chartered—all of the various platforms to support that. We have already for enterprise applications. that have to do with end users. This written our own internal suite of included our 80,000 desktops and applications for the iPhone, and laptop PCs, BlackBerry devices, Active those are being rolled out now to Directory, e-mail, and SharePoint. our iPhone users.

What’s the scope of your conversion What have you been doing to plan to the iPhone platform? implement the plan? We are geared up to continue This is uncharted territory in terms to produce iPhone apps and iPad of device controls; we’ve made some apps, and we also will look at other decisions to see that essential controls platforms for both internal and are put in place. For example, we are external use. This includes our not allowing users to install iTunes on customers for the retail bank, which their work computers, although we we call our consumer bank, as well are encouraging people to install it as our wholesale bank and what kind on their home computers. of value we can help add there.

32 PwC Technology Forecast 2011 issue 1 Interview conducted by Alan Morrison, Bud Mathaisel, and Terry Retter

That means when they want to upgrade the OS [operating system] “We encourage people to load apps that they like or add a patch, they will need to do it or find useful, as well as the Standard Chartered from their home PC. We don’t allow them to install it on their work PC applets that we can push and pull to their screens.” because we don’t want to give admin rights to everyone or open ourselves up to bandwidth utilization issues. So we are moving away from How can we do things better? How Even though only 8,000 people will traditional extremely tight control. can we do things differently? We have have iPhones, we expect that number But from another viewpoint, we some very good support from Peter to grow to between 13,000 and also need to maintain control. We Sands, who is the CEO of the bank 15,000 by the end of 2010. We don’t need to make sure that development that Jan directly reports to. Peter want these users’ media libraries to standards are adhered to, that really buys into this vision also, as live on corporate PCs. hardware standards are adhered to, far as wanting us to be a technology- that there’s compatibility with our driven organization as opposed to just That being said, we have been Exchange systems, VPN [virtual a technology-supported organization. positioning the iPhone as a blended private network] systems, or the work/life device. We encourage interface back into our enterprise He sees the iPhone as having the people to load apps that they like or systems. All that stuff can be very potential and the capability as well find useful, as well as the Standard delicate. If people were trying to use as the critical mass in the consumer Chartered applets that we can push all sorts of different devices, we’d world to be able to make that and pull to their screens. spend so much time and effort just transition to overlap into that trying to make it work — that’s enterprise base. He doesn’t expect This model moves away somewhat one reason for standardizing on this to ever become a fully corporate from the traditional controls approach the iPhone. device. He understands that this is a that we have for our PCs. For the consumer device, but it is something iPhone, we don’t have the same kind How did you come to a decision that is strong enough now to be of visibility because it’s not connecting to offer the iPhone and support used in the enterprise world. to the corporate network in the way a it this way? Windows PC is. The user is responsible for upgrading the OS on their own This was the brainchild of Jan home computer’s iTunes. That’s a Verplancke, who is our CIO. Jan was bit of a mind shift. very interested in moving to a more dynamic platform. He wants to see how can we move to this next phase? How can we move to a new stage?

Unleashing enterprise mobility 33 The traditional laptop with a VPN For instance, we could use location- What best practices or innovations and message-centric mobile devices based services to tell what’s going have you developed to roll out the become very limiting. When on in an office or in a city, or use the iPhone environment? salespeople, for example, need to bar-code-reading feature to do asset A lot of it links to back to the security. update sales files, they wind up doing management tracking of our PCs For example, we use unique digital that long after the fact through their or paperwork that’s bar coded as certificates for access to the VPN, as laptops. If we can offer instant access it flows through our systems. well as to the wireless itself. If I’m an through an iPhone, then updating iPhone user, a certificate is generated sales files is something that we can And as we are doing that, we are for me in a configuration profile, and I make easy. We can do a whole variety looking to see where we can add then put it on my iPhone. It will install of things both with stuff that we write value. We don’t want to create an app only on my iPhone. If something internally as well as third-party apps. just because it’s neat. We want it to be happens to my phone, we can revoke something that will add value to the access to that certificate immediately. The other piece of this—which some bank and make people’s lives easier. We can remote-wipe the phone. organizations see as a negative, but we see as a positive—is the Apple In this issue of the Technology Another new thing we’re doing is that SDK [software development kit]. To Forecast, we’re contrasting content we are not blocking any content from many people, that means Apple has creation and content consumption. the iPhone that we do block from the the control and you can’t deviate There is an emerging category in PCs, and this is because the folks who from what they do. We see that as a the middle we call engagement— have iPhones are, generally speaking, positive thing rather than something interacting with the content to the folks who are working like crazy. that’s limiting. some extent, say on an iPad, but We don’t want to disrupt what they not doing something as involved as are doing. We want them to be able We want applications that are going building spreadsheets. Can we talk to take full advantage of the device to be written in a very standard way a bit about that third category? in both their personal lives as well as using the SDK and that are going to be An example of “engagement” might their work life. We are using this as a there for more consistency and more be the acronym directory app we’ve benefit for employees, so they can take reliability. If we do something that’s a created that’s available through care of some of their personal things bit more open source, then it winds up the iPhone. So if I see “CB” [for as well as take care of their work in the different flavors of open source commercial bank] all over the place, things, all through one device. and can wind up being nonstandard. when I go to that commercial bank, But because Apple is so focused and and I look it up, I discover that CB We expect and require users to tightly controlled on the way that actually means consumer bank, and so be professional and follow the rules. development works for this platform, I can add that definition for CB. We’ve But we also need to change the we think it will allow us to provide done that for a little iPhone applet control mind-set in which we are better applications to our users and now. Also, if I try to look up wholesale accustomed to being in full control, will allow us ultimately to provide bank for “WB” and it’s not there, I can with PCs and the networks locked better service to our customers. add in “WB,” and that abbreviation in down. We have to break ourselves turn will show up on everyone’s of that mentality. Instead, we trust You’re responding to a mix of iPhone. It becomes a collaborative our users and assume that they will different demands, both internal effort and something that is a bit more behave responsibly. and external, yes? like a wiki, so that we can collaborate Definitely. We expect to start to get and share information. We definitely more ideas from the staff, and that’s wanted apps for folks to be able to where we think a lot of the great ideas consume content, but we also want will come from. The staff is on the the ability for our people to add value front lines, looking at what the and add content, because that’s where possibilities are as people become we think that the space needs to go. more familiar with the iPhone platform and what it can do.

34 PwC Technology Forecast 2011 issue 1 One of the principles that Jan is really after is that we don’t want to punish “A lot of the return in the long run is going to be the 99.9 percent of people who about employee efficiency and effectiveness— behave for the 0.1 percent of people who misbehave. We would rather deal how they can be more proactive, have better and with that 0.1 percent appropriately, faster access to information, and can hold these and we have the normal policies you would expect about being a unlimited possibilities in the palm of their hands responsible corporate user and wherever they happen to be in the world.” representing the bank in a professional manner—all this is part of an employment contract. But as offenders come along, we will certainly deal with them in the appropriate way. We really try to make sure that we are empowering users to do more in both their personal life as well as their professional life.

You are investing a good deal of money in this. What do you think the payoffs are going to be? How did you convince management to make these extensive investments? There must have been some expectation of a return. What do you think that return is going to be? A lot of the return in the long run is going to be about employee efficiency and effectiveness—how they can be more proactive, have better and faster access to information, and can hold these unlimited possibilities in the palm of their hands wherever they happen to be in the world.

We don’t know what limits we will hit with the iPhone or iPad. We see it as kind of limitless. We could push it in so many different ways.

Unleashing enterprise mobility 35 36 PwC Technology Forecast 2011 issue 1 How to exert leadership on enterprise mobility CIOs need to acknowledge that the IT capabilities of employees’ own smartphones threaten the status quo.

By Bud Mathaisel

Enterprise mobility isn’t happening the way we thought the next two years promise substantially more access to › it might. We assumed the IT department would be in the corporate information through the use of smart handhelds. driver’s seat, executing a carefully mapped plan to take There might be no independent trial within the enterprise, the enterprise where it wants to go. That scenario isn’t nothing for the CIO to eventually take over and make entirely absent, but in many cases IT is slow to capitalize robust for everyone. To stay engaged, the CIO must on the opportunity. When IT does not provide solutions, influence mobility from the start. impatient business unit managers turn to the myriad opportunities outside, including services offered in the Influence this time around begins with acknowledging cloud by third parties. the new power of personal IT. “The CIO has to come to terms with the fact that everyone’s walking around with Executives embrace powerful new mobile technology significant IT capabilities,” says futurist and interactive from third parties and ask employees to use it. Or media consultant Mark Pesce. employees themselves seize the opportunity and do what they want with handhelds and mobile applications As noted in the PwC white paper The situational CIO,1 available for download. Rather than following a carefully it is a given that a CIO must balance the multiple and mapped plan, enterprise mobility is going viral. sometimes conflicting demands of providing information access and IT services to the organization. Now, because CIOs can’t just watch and wait this time. Mobile technology individuals are bringing their own IT assets and is unlike the earlier technologies adopted independent of infrastructure with them, the CIO and the IT team need IT. With the personal computer, the Internet, and others, a strategy for managing this phenomenon, including how the CIO had some level of confidence that the chickens to choose and what to enable. would come home to roost—inevitably, the CIO did gain control at some later stage. Enterprise mobility is different

because the applications in use are likely to be in the cloud, 1 See http://www.pwc.com/us/en/technology-innovation-center/cio-operations-strategy- professionally written and run. As Figure 1 underscores, sourcing-budget.jhtml.

Unleashing enterprise mobility 37 Figure 1: Corporate information types accessible via smart handhelds workers and computer scientists. I’ve always been a strong believer E-mail 84% 16% that you have to give people outlets. Sales reports 45% 30% They have their day jobs, and then

Financial performance 40% 31% they have their passions. The idea is to try to turn on some of those Customer order status 35% 32% passions. So we’ve established these Budgets and forecasts 34% 32% labs, which we call gulags, and we Payroll and benefits information 33% 33% let anybody with reasonable ideas Inventory or other operational data 31% 35% come in.”2 Workforce status 27% 36%

Supplier status 25% 37% Unlike any previous IT initiative sponsored by headquarters, mobile Talent management 24% 36% and workforce analytics devices are ubiquitous and designed 0 20 40 60 80 100 to provide independence. Some CIOs Now In two years have invented a few things in their Based on a survey of 1,004 director-level and above respondents at companies of all sizes digital labs, but other CIOs are sourcing

Source: Bloomberg Businessweek Research Services, 2010 ideas from end users. For example, Standard Chartered is investing in a special applications development environment in San Francisco’s Through research, PwC has identified This cross-functional approach has media district, South of Market. several best practices any enterprise at least two benefits: mobility strategy should include: • Because many employees are “We plan to have our San Francisco • Enable grassroots research and knowledge workers, they will have entity stay very small and nimble, and development (R&D) capabilities insights, experiences, and passions be able to bring in new ideas, deliver you can leverage. quickly, and then move on to the next • Understand device choice options thing,” says Todd Schofield, head of • When you give people an official • Assess the payback potential a new mobile development unit at enterprise channel for their ideas, Standard Chartered. His strategy is • Establish new governance word gets around and you help influenced by the creative environment approaches make your organization a place associated with the South of Market where more people, especially • Formulate new business neighborhood in San Francisco. Millennials (those born after process models However, great inspirations can come 1980), will want to work. from anywhere, and the best advice to • Provide new infrastructure CIOs is to give knowledge workers the and skills Some organizations have sponsored tools and the resources to make innovation prizes to encourage idea mobility work well. generation and sharing, but the setup Enable grassroots R&D and management of that process can capabilities The CIO needs to ensure that the be tricky and could work against those R&D teams adhere to development who are most inspired to share their Don’t expect or insist that IT is the and hardware standards, especially ideas. It is likely that many mobility only wellspring of ideas. Although IT for the interfaces among enterprise ideas will come from the younger may have already identified some systems. As CIO, the other important workforce—the Millennials—but mobility opportunities, it is likely that contribution is to put the infrastructure it is inappropriate to be exclusive. new applications will be developed in place to enable the R&D, including from the ideas and initiatives of wireless access, security, help desks, Tom Conophy, CIO of InterContinental employees. Sponsor internal R&D and so forth, as discussed in the Hotels Group (IHG), encourages an activities for mobility across the article, “Turning handheld power enterprise-wide approach: “I sponsor whole organization, not just in IT. into enterprise clout,” on page 06. R&D-type activities across my team. I have about 800 employees across the globe, most of them knowledge 2 See the interview with Tom Conophy on page 16.

38 PwC Technology Forecast 2011 issue 1 Understand device choice options system, and applications in these Cost reduction could come from circumstances. It is wise to apply this two approaches, depending on the Providing IT devices to end users is restriction sparingly and to let BYOD organization. One path reduces the nothing new, but mobile devices be the default. Providing the devices number of devices to a manageable create a dilemma for organizations: at no cost to selected end users is a few and provides complete help desk, to provide a standard device to every helpful catalyst to reduce clutter and security, and support for those fewer user, or to accept users choosing their ensure focus on a mobility strategy. devices. Another path exploits the own—known as “bring your own A variation on BYOD that might be fact that many mobile applications device” (BYOD). The first option gives best for many enterprises is to limit and data could reside in the cloud IT the kind of control it is accustomed employee choice to a few of the more and leverages cost-effective to having over enterprise technology popular consumer devices that can be economies of scale in the cloud. assets, while BYOD embraces the more easily integrated and supported, personal empowerment that has ensuring a first-class approach to Whether an organization achieves helped make these devices so that support. improved productivity depends on powerful in the first place. the organization and the nature of its Applications integration is another business. For a consumer-oriented PwC research suggests that limited argument for providing every user business, the opportunity to reach out BYOD will become the rule more with the same device, or at least to end customers through applications than the exception, in part for reasons limiting the choices. “We previously that they would want is considered expounded in the article,“Turning had message-centric devices and we an eventual benefit. For other handheld power into enterprise clout,” are converting those to iPhones,” organizations, enabling mobility is a on page 06. For some organizations, Schofield says. “The intent is to be a way to attract and keep the best and BYOD is perfectly appropriate more application-driven company brightest of younger workers. right now; for example, when the rather than an e-mail-driven one. We organization is quite diverse or in a want to move from an e-mail-centric Standard Chartered is counting on stage of experimenting. In other cases, device to an application-centric improved productivity through the diffuse nature of BYOD might device that also does e-mail.” benefits to employees. “A lot of the require the CIO to spread the return in the long run is going to applications and infrastructure To enable this conversion, Standard be about employee efficiency and teams too thinly. Chartered is launching an enterprise effectiveness,” Schofield says. “We applications store roughly equivalent really want decision making to be It is true that the shift from an to the Apple App Store, from which able to happen faster. As everyone enterprise choice to an individual user applications can be downloaded that knows, e-mail is a horrible form choice adds a great deal of complexity, fit the specific purpose and parameters of communication.” and the shift could result in a of Standard Chartered. patchwork of devices with varying PwC research suggests that, for the capabilities. For some organizations, foreseeable future, enterprise mobility Assess the payback potential this is no issue and actually supports devices will be used in addition to the broader move to create a more the PC. However, as more computing CIOs usually have an investment employee-empowered culture. For activity occurs on mobile devices payback mind-set. Because enterprise others, it is a problem for two reasons: and more applications are based in mobility is relatively early in its security and applications integration.3 the cloud, PCs may be used less adoption cycle, many organizations often, allowing enterprises to keep approach the investment as either For security reasons, limited choice employees on older models longer. a means for cost reduction or for might be appropriate in areas where a It is also likely that companies will improved personal productivity. high degree of rigor and consistency eventually be able to invest in a set Although the justification may be are required, such as in regulated of wireless peripherals, including quantifiable, many organizations take environments, finance, protected full-size keyboards and computer as a matter of faith that their mobility data, and physical safety. At least for screens that would allow the mobile investments and initiatives will now, some organizations are limiting device to become the “hub” in a produce a payback. the choice of device, operating docking-as-you-need-to approach for desktop computing chores, giving 3 See the interview with Srini Koushik on page 44. employees even greater flexibility.

Unleashing enterprise mobility 39 Establish new governance • Minimize the use of company time outside the enterprise to customers approaches to do this work and business partners. • Share what you learn Even more than with previous Some organizations address the technologies, mobility is about people customer side through focus groups Perhaps most usage policies reflect the and their use of the device, which can and structured marketing initiatives enterprise’s awareness of data privacy be a very personal matter. The IT around mobility. Others approach this and other legal matters. But the more organization often underestimates less formally through social networks, that mobile devices are used for both the cultural change needed to employ monitoring what customers say about personal and business applications, technology, and this challenge is the company and do on their own. the more diligence CIOs, legal especially true for a technology with Mobility is a great opportunity to counsels, and human resource roots in the personal domain. The connect with the customer base, executives will need to exert over wise CIO will seize this opportunity especially if your customers are unresolved legal standards. The realm to establish a culture around mobility. among early mobility adopters. of data privacy, particularly regarding Establish and publish the code of mobile devices, has not been fully Current best practices suggest conduct for the enterprise and for resolved by the courts.4 establishing a culture appropriate for those who connect to the enterprise, this stage of evolution—a culture that much as you already have done with Rules that are too restrictive could aligns with the reality of the workforce privacy and security standards. be a problem for new employees, today. Right now, excessive controls presumably hired because of their could stifle the creativity needed for Mobility is also a great opportunity accomplishments in previous jobs. enterprise mobility. Early adopters to leverage partner ideas and buy-in. But what if those results were aided are—by nature—likely to be among In the same way some lean and abetted by a mobile device and a the most creative users, and you don’t manufacturing organizations number of applications that—under want to squelch them. The “feel” of encourage partners to contribute your policy—the new hire can’t use? this culture is about experimentation to the design of products or You run the risk of “cutting off half and early adoption, but with improvements in distribution, of the value that you are hiring important boundaries. Balancing the collaboration could work well when the person for,” notes Srinivas two will take persistent leadership creating mobility applications. This Krishnamurti, senior director for and frequent, open communications. collaboration could be especially mobile solutions at VMware. important in industries that have The PwC white paper The value- unique security requirements or Celebrate the creative ideas and creating CIO makes the case for regulations that affect everyone breakthroughs of those who produce balanced controls in situations such in the ecosystem. useful results. PwC’s The situational as enterprise mobility. Establish CIO white paper emphasizes that basic rules of behavior, but not too The Health Insurance Portability and communication is an essential skill restrictive, given this early stage. The Accountability Act (HIPAA) and the and a crucial part of the CIO’s job. rules of behavior for IT professionals Health Information Technology for This is especially important in may not need to change, but because Economic and Clinical Health Act mobility because of its very broad the value-creating team now expands (HITECH) “forced us into data range of participants. to include many non-IT professionals, encryption for our remote sales force,” the rules of behavior must says Larry Herrmann, manager of While specific approaches to fostering accommodate the broader base. global IT customer support at DJO, the right culture will depend on For this broader base, the rules of a medical device manufacturer. the organization, the digital labs behavior could include: referenced earlier can be a convenient Most IT organizations have worked • Continue to strictly follow the and visible way to organize mobility diligently to secure their wired enterprise security policy initiatives. It is important also to reach networks and data to meet regulatory (updated for mobility) and compliance standards. Mobility 4 The closest the US Supreme Court has come is its • Avoid any potential unanimous decision in Ontario vs. Quon, in June 2010, will challenge the traditional involving the privacy of the personal use of an embarrassment, especially given employer-issued digital pager. For many reasons, not approach to imposing security the potential for social networks to least of which is the majority opinion stating the ruling standards on end users. Because they was narrowly based on the particulars of the case, the be a source of embarrassment issue of data privacy in mobile devices still appears to be consider these devices their property wide open. For more on the case, see http://www. rather than a corporate asset, end supremecourt.gov/opinions/09pdf/08-1332.pdf and http://www.nytimes.com/2010/06/18/us/18scotus.html, users will likely balk at the centralized accessed November 2, 2010.

40 PwC Technology Forecast 2011 issue 1 controls now available and resources that are available—not Provide new infrastructure appropriate for devices containing just what the enterprise owns or and skills corporate and client information. can procure, but a broad view of the CIOs should begin the education capabilities employees bring with Mobility requires some new skills in process early, since there is benefit them, and how those capabilities the organization and changes to the to early cooperation and buy-in can lead to IT as a “competitive basic infrastructure. Even when ideas from users and business partners. differentiator,” in the words of and applications are developed in Srini Koushik, CTO of Nationwide. a grassroots lab, the CIO and IT organization will be responsible for Formulate new business The CIO’s leadership of mobility integrating the innovations into the process models entails simultaneous focus in IT infrastructure. While the specifics co-dependent areas: will vary by organization and its Those who have adopted business legacy, some important new process reengineering as a continuing • Redesigning business processes; elements must be addressed. endeavor will find mobility to be customer-facing processes are a another opportunity to rethink first priority There are two fundamental workflow, touches, and information • Establishing R&D centers for integration issues for enterprise exchanges. The fundamentals of in-house development of leading mobility. The first is browser business process reengineering, applications capability or enabling the mobile postulated in the early 1990s by device for the same screens that Tom Davenport, Michael Hammer, • Reducing procurement barriers to appear on the laptop or desktop. The and others, are perhaps even more device adoption; this is clear CIO second is to use the capabilities native relevant with mobility because one leadership territory to the device to augment previous of the fundamentals is to start with applications or new ones. Under the the customer experience and work CIO’s leadership, the technology backward to envision how the plans for each must be inherent in IT customer experience might be improved.

Tom Conophy of IHG observes that Figure 2: CIO focus for mobility “a perfect storm” of new capabilities is converging. The example of D7 Actions Focus Consulting described in the article, Strategy “Turning handheld power into Redesign business Customer enterprise clout,” on page 06 processes facing underscores how nagging process bottlenecks finally can be alleviated with the help of the current generation Sourcing and of smartphones and tablets. orchestration R&D centers In-house development In contrast with an R&D effort, which is more about sourcing product line innovation, business process IT operations improvement implies a strategic focus Prepare Buy devices on any potential enablers of that infrastructure improvement, as Figure 2 illustrates. Procurement of the devices, by contrast with the other two activities, The CIO’s leadership of mobility entails simultaneous focus in co-dependent areas: would seem to be straightforward. • Redesigning business processes; customer-facing processes are a first priority The value a CIO adds will come from • Establishing R&D centers for in-house development of leading applications considering each of these elements in • Reducing procurement barriers to device adoption; this is clear CIO leadership conjunction with the others. Much territory and could be part of the R&D effort described in the article depends on a holistic approach to the

Unleashing enterprise mobility 41 strategy and budgets. Knowledge of tipping point that encourages the use During interviews with PwC, many the emergent technologies is essential of cloud services. CIOs indicated that a major enabling to develop a coherent plan; developing factor to mobility is the ability to or hiring those with that knowledge is Another critical issue is mobility wipe devices of content if they are the CIO’s responsibility. security, which requires a rigorous lost or stolen, which most approach to asset management. For smartphone platforms now support. Specific skill sets, of course, are example, to know which devices are The IT organization needs to choose important. Because HTML5 is likely to being used by whom and to be able the tools to do that and be able to be crucial to mobility, it would be wise to update the information, IT must respond immediately when it is to have at least a few people in your IT monitor device activity and manage required. (The article, “Mobile organization acquire or update those the contents of the devices. As Figure 3 technology’s journey from peril to skills. This is also a time for CIOs to illustrates, the current generation of promise,” on page 20 explores the update their portfolio of vendors. smartphones makes good use of the security issue in greater depth.) The IT organization needs to lead security model that evolved during in researching, identifying, and the e-mail messaging generation. IT leaders have two new security contracting with providers that will approaches to mobile devices: be the future suppliers of choice. Technology has followed a cyclical • The capability to restrict mobile pattern three times with enterprise device information and network A related challenge is modification at mobility. Each time, the technology access; devices configured with the front end to integrate devices with arrives and enterprise adoption lags a unique IP address have a enterprise applications and data in the while the enterprise voices security distinct ID. current architecture. Many of the concerns. Then vendors address executives interviewed for this issue of the concerns. In the case of third- • The capability to remotely wipe the Technology Forecast suggested they generation application-centric phones, and completely clear any device would handle this integration through good security is becoming available lost, stolen, or compromised. the cloud, provisioned internally or and should be broadly adopted soon. externally. Mobility could become the

Figure 3: Three generations of enterprise mobility

Voice Messaging Applications 1980–90s 1990s–2000s 2007–… Generations 1st 2nd 3rd

Technology Voice-only mobile Mobile messaging capability Application-centric development phones arrive (1983) emerges on cellular phones phones arrive (2007)

Enterprise demand Better security against Better security and access Better security and eavesdropping and fraud, to corporate messaging, access to corporate better performance server-based PIM applications

Vendor Introduced digital Introduced enterprise Upgraded security response cellular (1991) wireless e-mail and (2009–10) calendaring (1999)

Features Subscriber-based ID • End-to-end data encryption Security model derived and authentication (via SIM • Remote wipe from the features of the card in GSM, for example) • EAS policy support second generation, but on all major OSes (2011–12)

Technology has followed a cyclical pattern three times with enterprise mobility. Each time, the technology arrives and enterprise adoption lags while the enterprise voices security concerns. Then vendors address the concerns. In the case of third-generation application-centric phones, good security is becoming available and should be broadly adopted soon. “Mobile technology’s journey from peril to promise” on page 20 considers the security prospects for smart handhelds in more detail.

42 PwC Technology Forecast 2011 issue 1 So, while enterprises can allow some flexibility in the choice of devices, “We use unique digital certificates for access any device must comply with the to the VPN as well as to the wireless itself. Based security standards. As Todd Schofield of Standard Chartered states, “We use on the unique serial number of my iPhone, a unique digital certificates for access to certificate is generated for me that restricts the VPN [virtual private network] as well as to the wireless itself. Based access to data and applications.” —Todd Schofield on the unique serial number of my of Standard Chartered iPhone, a certificate is generated for me that restricts access to data and applications.” offices, so that if I got to Hong Kong Conclusion: The mobility The cost of wireless communications or London or Shanghai, or wherever, imperative will be another challenge. Many cell my iPhone will see that [a wireless phone users have experienced the network is available] and it will Timing may differ by organization, nasty surprise of an unexpectedly transfer me from roaming on a but eventually mobility will play a large phone bill. That problem was 3G network. It will move me over and significant part of any enterprise eventually addressed through fixed- make my data connection go through information services—both internally price plans and by negotiating wireless Internet, so now I’m not to the organization and externally attractive rates from carriers. PwC roaming anymore,” Schofield says. to customers. Some people see the research indicates awareness of this opportunity to create a specialty issue and some early discussion with Another big challenge is to provision position: chief information telecommunications carriers, which more robust input and output mobility officer. are offering no new programs yet. capabilities than are possible with the mobile device itself; for example, In some organizations, CIOs have “Telecom is going to be an issue for the ability to input or output large decided to free themselves from their all of us. We see that the unlimited amounts of data, especially from current responsibilities and focus on is going away,” Herrmann says. The spreadsheets and presentations. enterprise mobility and new IT best approach may be to begin service This challenge relates to the wireless strategies. To a CIO, mobility at this contract discussions with carriers now telecommunications challenge, stage can be frustrating. It may seem and to ensure that users have access to but is internal to the enterprise. a contradiction to lower costs and their usage costs. In the meantime, to improve security and controls while provide a direct incentive for cost Apple enabled wireless printing simultaneously encouraging the control, many companies are capability for the iPhone and iPad in innovation mobility can provide. In reimbursing employees a fixed or its iOS 4.2 update in November 2010. one organization, the CIO named capped rate for smartphone More such features are coming from himself the chief technology officer communications usage. mobile vendors themselves, although and appointed someone else to be the internal IT organization can do a the CIO. Patience and a balanced Besides working with carriers, some great deal to prepare and enable this control approach would be the main enterprises are preparing internal capability by choosing display and attributes of the IT leader of mobility, facilities to accommodate a broader printing facilities that work wirelessly. because the rewards will come. use of wireless within the enterprise, Once this input/output piece is which can help control costs. “We are addressed, the “mobile mainframe” The CIO has an opportunity to building Wi-Fi networks in our major is in the hands of the users. lead; otherwise, someone else will. Enterprise mobility is either the next CIO leadership opportunity, or the next missed opportunity.

Unleashing enterprise mobility 43 Anticipating the next phase of enterprise mobility Srini Koushik of Nationwide thinks out loud about how handhelds are influencing enterprise computing overall.

Interview conducted by Vinod Baya and Philip Garland

PwC: What’s your role at We know about your mobile › Nationwide? applications on the customer side, but we’re also curious about other SK: I have what you would consider kinds of applications you’ve the traditional CTO functions of R&D developed. What sort of mobile introduction of new technology into workforce do you support? the company, governance over the enterprise architecture, and We were the first insurance company architecture in general. My functions to come out with an app on the Srini Koushik is senior vice also encompass information risk iPhone. That was primarily aimed at president, CTO, and CIO of shared management, which includes security our insureds, our policyholders. applications at Nationwide. He and compliance. Then there’s shared Over the last year and a half that we previously held three other services and shared applications, have offered the application, we have executive roles at Nationwide in the which include applications such as enhanced the features to do a lot more area of IT over the span of eight Nationwide.com. My team consists things such as paying bills and other years. Before Nationwide, Koushik of about 1,400 people. capabilities. That app was very focused was CTO of business innovation on B2C [business to consumer]. services at IBM Global Services. What’s notable about Nationwide from an IT perspective? The B2B [business to business] In this interview, Koushik ponders component of our mobile strategy is From an IT standpoint, the cool thing the state of mobile security, sheds all about how we enable our exclusive about working at Nationwide is light on Nationwide’s broad mobile agents, suppliers, and wholesalers. that—from the board downward— constituency, and considers where We provide tools for lookup and sales they absolutely recognize IT as a new interface modes may open effectiveness. We have a mobile app differentiator. We are probably more new application opportunities. that many of our agents use—they heavily in-sourced than most of our can take a picture of a car, for competitors. Over the past eight years, example, and they can upload it and we have needed to get very good at store it on our cloud storage through managing and supporting our shared their BlackBerry. infrastructure and introducing new technologies.

44 PwC Technology Forecast 2011 issue 1 Interview conducted by Alan Morrison, Galen Gruman, and Bud Mathaisel

From a workforce standpoint, our The remote management capabilities Today we have support for people who claims operation is a pretty big of these devices are important. When can bring their laptops and their own operation. Claims has always been somebody loses a device, the ability to device, whether it’s a Mac or any PC. at the forefront when it comes to do a remote wipe is important. As a Some people also bring iPad tablets. using emerging technology, so that financial services company that’s very A variety of Android tablets and workforce is always going to be at highly regulated, it is absolutely smartphones are in. With a selected the top of our list internally. We important that we try—to the extent set of individuals who have a variety are increasingly trying to make possible—to avoid putting data on a of these devices, we are working with capabilities available to our device. We have seen a lot of progress these technologies to determine what associates, primarily to in that space. One of the big things the experience looks like. What are employee-owned devices. that has really helped us, especially some of the challenges we will need to in the last eight months, is desktop overcome before a large-scale roll-up? How did you start with employee- virtualization. owned devices? We have about 100 people on the With virtualized desktops and pilot, including the CEO. It’s going When I was a consultant at IBM a few on-demand applications, all of your very well. Initially, it was just access years ago, we used to talk about data stays on our servers and you just to e-mail and calendar. Then the pilot pervasive anytime, anywhere access. access it from a screen. That allows us provided a virtual desktop where It’s taken a few years, but it’s getting to truly jump into this base and start users could bring up different content there. We started to look at the enabling. We have a carefully and review it. We gradually started variability in the marketplace. How thought-through pilot that allows giving them different capabilities. much and how far do we want to go individuals to bring in their own We’re trying to establish what types with supporting the devices? The devices. We are giving them access to of users need what types of functions. iPhone and the iOS operating system our core applications via personally From that we can establish a support we definitely have to pick up, and also owned devices. model. We absolutely think that in the enable support for Android. We are next 18 months, our entire desktop still evaluating whether we want to and client computing environment is do BlackBerry or Windows Mobile 7 going to change significantly because as a platform. of this.

“I believe that the days of the keyboard and mouse might be gone. You will get to a point where you flip the monitor and make it horizontal to the table surface, and then the interface behaves more like a multi-touch interface.”

Unleashing enterprise mobility 45 How are you dealing with Android When it comes to claims application I believe we will get to the point where being a bit behind security-wise? design, what would the front end look you will look for visualization of data like? How would you build that same in such a way that these devices Good [Good Technology] Web-based app as a native app, so that become the natural way to use things. fundamentally allows us to put a when the claims adjuster is walking Apple’s Keynote is an example. I have protected space on the device. It through a house after a hurricane to built a few presentations using allows us to secure and encrypt the establish the damages, how do they Keynote on the iPad, and you can do data access. But it’s not entirely what use the multi-touch and the GPS to some pretty decent presentations at we need it to be. We’ve been pretty start pulling in specific coordinates? this point in time. Apple hasn’t careful to not dive in head first. We Can they use the device to measure addressed all of the issues yet, but the did the Good pilot. Even though we the size of the hole on the roof? Can company will revise as it goes forward. were happy with those results, we they use a device like this to make thought maybe an even better way to the job easier? It sounds like there are two do the pilot is first to provide just a different camps of users that you virtual desktop instance. For us to do I’ve been proven wrong several times are supporting: the people such that, we need to make sure that things in the past, but I believe that the days as the claims adjusters who are like the SSL VPN [Secure Sockets of the keyboard and mouse might be obviously on the road a lot, Layer virtual private network] gone. You will get to a point where definitely using the mobile device capabilities are strong enough. you flip the monitor and make it most of time, with certain kinds of horizontal to the table surface, and input that they need to provide; Once the security issues get then the interface behaves more like and then finance and accounting, resolved, what do you think the a multi-touch interface. for example, who might be on the implications will be of different older-style mouse-and-keyboard interface modes that might be Does this also have implications interface for quite a while. Could possible on an iPhone or the iPad, for rethinking data visualization? you pretty much treat them for example, versus a Windows PC separately? or Mac? Any idea what direction When it comes to spreadsheets, trying that might be headed in? to do the same thing a mouse and a Yes. It will take a while to change that keyboard do with a multi-touch Right now, it’s all driven by an event- second population, but the first one is interface is going to be very difficult. driven interface, primarily through really looking for convenience. The But you can do it by looking at visual a mouse and keyboard. Once you biggest part for our claims reps is the representations of data. embrace a different interface mode, interaction with the insured. When you can rethink how much data you somebody has a loss, the face-to-face I will give you an example. Newsmap want people to type in. If you look at interaction is a big deal. To the extent (http://newsmap.jp/) brings up a most apps that are getting rolled out that the device or the computing screen, and the visual interface is very on an iPhone or that type of device, infrastructure that you give them is indicative of what story has been you really don’t have to use the seamless to the way they interact with viewed. It’s all represented as squares keyboard as much. people, it’s very useful. Contrast that on the box, and the size of the squares with somebody who is sitting and describes how many people have And then the mouse starts becoming looking at spreadsheets and creating accessed this page and stayed on it. less necessary, so what do you use the PowerPoint presentations. We are It uses screen real estate to show the mouse for? If you need to click on a looking at the opportunities for us to importance and the relevance of the precise spot, a mouse is pretty useful. continue to figure out how to use story. A Newsmap-type of site works But if it’s a multi-touch interface, and mobile devices there. much better on a multi-touch interface. I can now start using one finger to do something, or two fingers to do something else, that becomes powerful. This is what most of the iPad devices look like. I think it starts challenging the way we build user interfaces.

46 PwC Technology Forecast 2011 issue 1 What kinds of mobile vendors are approaching you and your “The device vendors are pretty serious about the company most frequently and business marketplace. They are bringing a lot of with what kind of messages? their thought leadership and showing how you can It’s been the small players, a carrier because of the two-year contract that build applications. They are just trying to get mind we signed with them, and the device share in this space.” vendors wanting to talk about where they see mobile heading. The device vendors are pretty serious about the business marketplace. They are bringing a lot of their thought leadership and showing how you can build applications. They are just trying to get mind share in this space.

It’s been helpful because we are able to let them know our requirements from a product standpoint. For example, we tell them our camera is going to be critical for claims, here are the reasons why, here are the things that our claims reps do, and it’s important that we have this type of camera. These vendors are getting used to working with the enterprise environment.

Unleashing enterprise mobility 47 The new power of the cybernetic employee Mark Pesce of FutureSt Consulting considers how work gets done differently in the new mobile enterprise.

PwC: One of the main points around with significant IT capabilities. › we’re making in this issue of the People don’t think of these as Technology Forecast is that the significant IT capabilities, but they are. enterprise workforce is really a cybernetic system, with workers That then changes the equation. becoming inseparable from the What is the CIO doing? The CIO was devices and the personalized responsible for protecting, preserving, information clouds they bring with and defending the corporate data them. How should enterprises adapt and for providing a way for the Futurist Mark Pesce heads his to accommodate these cybernauts? corporation to access that data. He or own consultancy called FutureSt, she still needs to do that, but in some MP: What’s happening is that the lectures at the Australian Film ways that’s become significantly less cybernauts are bringing their own Television and Radio School, important because everyone walking mind-set. If you took away the device, and is an honorary associate at into the organization is bringing their the mind-set would persist, and it the University of Sydney. He own IT infrastructure and all of the does. You can think of Web sites as co-invented the Virtual Reality powers and capabilities that that devices. Corporations can block Web Modeling Language (VRML). gives them. sites, but that doesn’t actually change In this interview, Pesce sheds light the way people are thinking. on how enterprises are adapting There will be arguments between to the way workers in a cybernetic these various IT capabilities. One Cybernauts don’t really respect the system do their work. set of IT capabilities will tend to layout of the information flows as inhibit another set of IT capabilities. dictated by a hierarchy. That is the We don’t really have any good core first principle that you need to mechanism in place for arbitrating work from. The information flows that. Maybe that’s where the CIOs they use probably don’t have need to start thinking. How do you anything to do with the hierarchy arbitrate? When an employee of information flows that have comes in who is better connected been established over the than anyone else in your entire organization’s lifetime. organization, how do you arbitrate with that person’s capabilities? How Toffler called this the adhocracy do you allow them to deploy those 40 years ago. We’re now seeing what capabilities meaningfully without the adhocracy looks like and how impacting your own organization? it has been facilitated, because everyone is now walking around We find this now with Twitter. Twitter with the equivalent of 1980s Cray has been the paradigmatic example of supercomputers in their pockets. how organizations can spring holes in Everyone now has tools to manage their fabric because people will just that. The CIO must come to terms start Twittering about all sorts of stuff. with the fact that everyone is walking

48 PwC Technology Forecast 2011 issue 1 Interview conducted by Alan Morrison

Some organizations have still not going to use external resources. where Apple and [Steve] Jobs think established social media policies, I had to show the department this it is. By 2020, after we’ve had 10 which to my mind is almost an conversation was happening without years to evolve how we manipulate impeachable offense. The ABC here them, because they were not providing that interface, we’re going to think in Australia has basically gotten it a place for that conversation to take of tablets as consumption and down to four lines: place. The IT department strictly creation devices. controlled the Web sites that could • Do not mix the professional and be handled through the university. How should the CIO think about the the personal in ways likely to bring We did a survey and found that 60 mobile applications environment as the ABC into disrepute. subterranean Web sites were being run it is changing? • Do not undermine your by different programs in the university, The easy way out is to grasp the effectiveness at work. because they needed a wiki so they HTML5 bull by the horns, because could share their work with colleagues • Do not imply ABC endorsement then you have something that will on the other side of the world. of your personal views. be cross-platform and that will work on your PC, your tablet, • Do not disclose confidential When the IT department is not your smartphone…. information obtained through work.1 providing the solutions to people’s problems, people will immediately Is that the default if you don’t But of course, just tell people this. go outside because such a wealth have a lot of resources to dedicate These are rules of thumb. They are of things is available. People are to this? common sense, but people need to constantly saying, “Oh, look at this know it, and the organizations need great cool Web site! That solves my I would think so. How many examples to know it. And a lot of times when problem.” And they’ll start using it. of amazing HTML5 applications are this doesn’t happen, the organizations we going to have to see before we get in huge amounts of trouble. So the IT department now isn’t just understand that, yes, you do lose managing for itself—it’s competing something if you’re developing an Organizations have spent a against all of the rest of the Internet app that’s platform specific versus tremendous amount on for its users, the same as any normal HTML5? Generally, for mobile collaboration tools, but aren’t portal Web site would be. applications, what you lose by employees just going on the Web developing for a specific platform will and using what’s there, because How should we think of tablets like not be significant because the devices those tools are simpler and more the Apple iPad? Are they primarily have locative capabilities and they powerful? for data consumption? have full HTML/HTTP capability, which is basically what you’re going to One time I was brought in to persuade We’re just at the beginning. need. You might not need fancy access a vice chancellor of a university to In 10 years’ time, we will not be to the camera, for example, although embrace Web 2.0, because the thinking about the tablet primarily you might need some access to the university’s own IT department was as a consumption device, which is camera. There are tagged images you not taking advantage of social media and the students themselves were

1 See ABC News, “The ABC of social media use,” http:// www.abc.net.au/news/stories/2009/11/05/2733929.htm, accessed October 26, 2010. Unleashing enterprise mobility 49 Some Web designers have “The IT department now isn’t just managing for definite biases toward particular itself—it’s competing against all of the rest of the technologies. Should enterprises be selective about what development Internet for its users, the same as any normal tools they offer? portal Web site would be.” There’s no one right way. You need to offer multiple methodologies. This is the part where the CIO becomes might need, for example, but you can So HTML5 will take care of, perhaps, involved. Rather than saying that this send people out to the field with a 80 percent of enterprise needs? is the right way to do it, offer the data simple app to take photos that they up and allow the communities that Perhaps it’s 90 percent. HTML is your will upload to a database. That stuff use that data to project that data as it’s low-hanging fruit. So you’ll think is easy. But for data entry and data best for them. That’s a policy decision, about how to farm out your 10 percent analysis activities, I think the not a design decision. That’s the to a tiny little app that’s not going to organization should be looking at essence of mashup culture. Google has take much development time to HTML5. That’s the foundation for been very good about that. Behind deploy, but does just this one thing the next 10 years. that simple interface is a whole set of that you can’t do in HTML5. APIs [application programming One reason the Apple iPhone app interfaces] that allows you to use the The nice thing about the app culture is culture developed was because data almost any way you like. that it has radically rethought what the HTML had become rather retarded app should do. It can do one thing. It and stultified, in that there were no Are mashups a leading indicator of does it well, and you’re out. As opposed major improvements from 1996 on. how work might change given these to Battleship Word, which has grown The app culture on the iPhone was kinds of developments? More and grown and grown and grown? It’s the real kick in the pants. It was the people able to do more kinds of the exact opposite methodology. competition HTML needed to go to reporting, with less need to go to IT the next level. But now that it’s there, for reports? People who don’t have Will native apps silo the data it would be wise for people to think developer skills but are able to step and inhibit sharing in the process? about their deployment strategies in that direction? around HTML5. Native apps use HTTP. They may use I’d love to see something like Google a socket, but probably not. Here’s the App Inventor or a similar tool for Srini Koushik of Nationwide [see way to think about an app. An app is iPhone like Titanium that allows you the interview on page 44] thinks basically a really well-engineered UX to write an application in HTML or the mouse and keyboard interface [user experience] in front of Web- JavaScript and then compiles it into is going away and being replaced accessible data. An app does one thing Objective-C. When you get tools like by the multi-touch interface. Is it? really well. An app is the front end, that, you significantly decrease the rather than anything that has to do Gestural interfaces will evolve over barriers to entry. App Inventor allows with the ontology of a data set. It the next 10 years. I don’t see gestural you to program Android by dragging will become problematic if everyone interfaces as being fundamentally block components into place. They use thinks about an app as a silo of its own incompatible with HTML5. It will take it as a teaching tool, but with it, an IT stuff, rather than a nicely engineered some time for them to become fully department could say, “Here’s the UX to a set of data. blended. In 2015, we won’t be having corporate data, and here’s a couple this conversation, because they will be of blocks. Put the blocks together the When does it become necessary to fully blended. We already have some way you want for your division.” Over develop native apps? of the JavaScript hooks in HTML5 for the next 10 years, those tools are gestural interfaces. We’ll just see more An app provides a user experience going to become more pervasive, the of them. Apple, Google, and HP will be that is difficult or impossible to quality will go up, and the ease of use pushing very hard to do that because provide via the Web. The temptation will go up. that’s going to be a core foundation for with the app is to remove functionality Android, iOS, and webOS. rather than to increase it. Consumers It won’t be a weird decision or a hard will reject that. They expect any app to decision for an IT department to make. have the same functionality that the IT can say, “Here’s the data. We’re not Web does plus what the Web can’t going to mandate how to use it. do—not less.

50 PwC Technology Forecast 2011 issue 1 Here are some tools. Here’s what our What’s the implication for well, because they feel they have a set designers think you want to do with talent here? What kind of people do of skills that’s broader than what they it, but you folks can go make them.” organizations need to attract, given are engaging by playing with Excel all the trends you’ve just described? day, or whatever it might be. And so Will this lead to more app sprawl it’s almost the strategy for employee We’re getting to the point now where and a more pressing need for app retention more than anything else. If more and more people—for example, rationalization? you want to retain them, the more you those coming out of university—have can keep them entertained with tasks Because the app itself is generally just a smattering of Web skills. If that that challenge them, the better. the viewing controller, the model [in means they can get a better job in a Model-View-Controller, or MVC, accounting, that opens up the doors One thing we didn’t touch on that’s scheme] doesn’t change. Even if an in ways we weren’t thinking of before. relevant: the quality or nature of IT app ages, the data that the app is It allows us to tweak the requirements policy as it addresses what’s outside manipulating is in the corporate data a little bit. It does mean that the organization. What happens center, and it’s fine. So if an app ages organizations need to communicate when employees are going more out, you’re not losing anything, even the new requirements to the exterior than interior for their if you discontinue support for that education sector, so that students are information? app or if there’s an operating system getting the necessary credentialing revision and that app no longer works. before they come out and work. What that means is that those chains of authority and hierarchy inside The more a company can hew to that But often the students are picking up the organization are bypassed [as idea, the safer it’ll be. You’re never these skills informally as much as discussed earlier]. It also means those going to be completely safe. Of they are from formal coursework. employees are building chains of organizations running Windows, 60 to authority for themselves that exist only Absolutely. They’re picking it up on 65 percent are still running XP, even partially inside of the organization. the street. But teaching someone the though Microsoft said the company Organizations as we’ve known them MVC model? That’s not rocket science. will stop supporting it. It’s that same aren’t at all prepared for that. Implementing it beyond a certain problem, but I think it’s proliferating Everything becomes much more fluid point requires some training, but much more broadly. The problem and fungible in that environment. But teaching people how to build being, of course, that a data migration that’s part and parcel of what happens something that doesn’t break when from XP to Windows 7 is difficult, and in 2010 when your 22-year-old college you start changing things—that’s a there will be losses. But if you’ve done graduate walks into work and whips course that someone could easily get your app strategy right, it shouldn’t be out his smartphone. That’s who that in their college education. It’s a course a lossy transition. But again, that person is now. They’ve got chains of that could be called something like requires policy—architectural policy, connection that are inside and “Corporate Data Systems.” If people not so much design policy—around outside—on Facebook and LinkedIn, are going into finance or administration “Here’s how we expect you will work as well as inside the building. or marketing, then this course should with the corporate data. If you don’t be part of their curriculum, just to give do this, it will be bad.” The way that the organization them that background. Then, when counters that is through digital social they’re exposed to this stuff at the Is the big shift really entrusting networks inside the organization. office, they know what they’re doing. more power to more people, which Inside the organization, those are implies the need for policy changes networks of expertise. The CIO needs Should enterprises look for people and more training? to get on top of that, to be one of the who are different from the kinds of key catalysts for that transition. That Review policy will be important. You people they’re used to looking for? data is immensely valuable to the do still want to say, “Hi, send us your It’s going to be a bit of both. Those organization because it’s creating a code. We’d like to look at it because different people are starting to come force to pull employees in, even as we just want to see if you’re doing through the door. There’s a bit of a they’re intent on building outward. things that aren’t going to come back mismatch, because in some ways It provides the internal force that to bite us in two years.” There will those employees aren’t being fully employees will need, because need to be a review process. But you’re utilized. And that’s probably leading otherwise they’re going to tip the empowering users to work with the to some dissatisfaction on the job as ship over. corporate data as they want to. Yes, it requires more training and trust, and it requires more policy.

Unleashing enterprise mobility 51 pwc.com/us

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