MOBILE COMPUTING Mobile Computing and the New Sales Force THE SPRINT E| SOLUTIONSSM WHITE PAPER SERIES A comprehensive look at the impact of wireless technology on sales and productivity. JOB#: SPRD2184 PREV OP: DATE SIGN OFF K PANTONE Proof Reader: SAVED: 6/5/02 - 2:13 PM PREV MAC: 425 CV PRINTED: 6/5/02 - 2:13 PM FILE: AGaramond, AGaramond Semibold, Art Director: PANTONE Copy Writer: FILE: PDF_SPRD_MobilComp_WhitePap2 Univers 57 Condensed 485 CV DESC: ECommerce white papers PATH: 1_1/4SprintLogo_485425_2CHR.eps @ Production Mgr.: PROOF#: 1 113% Account Exec.: PATH: Macintosh HD:Desktop PREV OP: PANTONE 425 CV, PANTONE 485 CV Studio Folder:PDF_SPRD_MobilComp_WhitePap2 CLIENT: Sprint Legal: LINE SCREEN: Phone/Fax/E-mail: OPERATOR: tchristy This mechanical was created by MRM New York Spell Check MOBILE COMPUTING THE SPRINT E| SOLUTIONS WHITE PAPER SERIES Wireless technology is creating new opportunities for businesses to reinvent internal processes while finding new ways to interact with customers and employees. In this time of corporate downsizing and changing economic environments, accessibility is critical to keeping a competitive advantage. The ability to interact with customers virtually anywhere through convenient and easy-to-use Web and wireless services can play a vital part in a company’s business processes. Wireless devices can have a considerable impact on today’s mobile, aggressive sales force through Sales Force Automation (SFA). Cellular Phone Usage According to the most recent version of the Cellular Telecommunications Industry Association’s (CTIA) wireless industry survey, there are almost 110 there are almost 110 million wireless subscribers million wireless subscribers in the United States.1 This in the United States. this represents a represents a 27% increase 27% increase since the 1999 total of 86 million since the 1999 total of 86 million. While the economy has experienced a tremendous slowdown during this period, industry analysts predict that the wireless subscriber rate will continue to grow at a steady pace. Gartner Group has predicted that 500 million cell phones will be sold worldwide in 2001 alone.2 As the number of wireless subscribers has grown, so has the market opportunity for hardware manufacturers, applications developers, and service providers. 1“Cellular Telecommunications & Internet Association,”Semiannual Wireless Industry Survey, Washington, DC, December 2000. 2“Gartner Dataquest Says Worldwide Mobile Phone Sales Exceeded 96 Million Units in First Quarter 2001,” Gartner Group, May 31, 2001, www.dataquest.com/5_about/press_room/pr20010531a.html. PAGE 1 JOB#: SPRD2184 PREV OP: DATE SIGN OFF K PANTONE Proof Reader: SAVED: 6/5/02 - 2:13 PM PREV MAC: 425 CV PRINTED: 6/5/02 - 2:13 PM FILE: AGaramond, Univers 45 Light, Univers 45 Art Director: PANTONE Copy Writer: FILE: PDF_SPRD_MobilComp_WhitePap2 LightOblique, Univers 57 Condensed, Univers 65 485 CV DESC: ECommerce white papers Bold Production Mgr.: PROOF#: 1 PREV OP: PANTONE 425 CV, PANTONE 485 CV Account Exec.: PATH: Macintosh HD:Desktop CLIENT: Sprint Studio Folder:PDF_SPRD_MobilComp_WhitePap2 Legal: LINE SCREEN: This mechanical was created by MRM New York Phone/Fax/E-mail: OPERATOR: tchristy Spell Check MOBILE COMPUTING THE SPRINT E| SOLUTIONS WHITE PAPER SERIES Handheld Devices A broad array of handheld devices, such as Compaq’s iPAQ,TM Hewlett-Packard’s Jornada series, Palm,TM and Handspring,TM are currently available on the market. These devices can connect to the Internet through corporate systems and online services using wireless modems (the Aircard) and high-speed wireless LANs, such as the popular 802.11b standard. These increasingly robust devices are capable of running native applications as well as custom programs built in numerous languages (Java,TM Windows® CE, and Palm OS). According to the Consumer Electronics Association (CEA), an estimated 6.1 million PDAs were sold in 2000. This is almost a 50% increase over the previous year, and sales are expected to grow by another 57% to a total of 9.6 million units in 2001.3 Wireless Internet The mobile communications industry has developed various consumer and business data solutions, but has steadily moved its efforts towards the Internet. Cahners In-Stat Group predicts that sales of Internet-ready wireless phones will surpass one billion annually by 2004.4 Technologies, such as Wireless Application Protocol (WAP), Wireless Markup Language (WML), and Short Messaging Service (SMS), as well as broader technologies, such as Extensible Markup Language (XML) and Java, are being used to build applications geared towards these next-generation devices. Emerging communication standards, such as Bluetooth,TM provide the ability to capture data from various sources, including other wireless devices, and seamlessly transmit information between them. While these technologies are in their infant stages, the ultimate outcome will be a user 3“Digital America 2001: U.S. Consumer Electronics Industry Today,” Consumer Electronics Association, www.ce.org/digitalamerica/hnit/hnit6.asp. 4“Wireless Becoming Preferred Net Access Method,” Wireless Week, Cahners In-Stat, www.instat.com/rh/wirelessweek/md0006md_story.htm. PAGE 2 JOB#: SPRD2184 PREV OP: DATE SIGN OFF K PANTONE Proof Reader: SAVED: 6/5/02 - 2:13 PM PREV MAC: 425 CV PRINTED: 6/5/02 - 2:13 PM FILE: AGaramond, Univers 45 Light, Univers 45 Art Director: PANTONE Copy Writer: FILE: PDF_SPRD_MobilComp_WhitePap2 LightOblique, Univers 57 Condensed, Univers 65 485 CV DESC: ECommerce white papers Bold Production Mgr.: PROOF#: 1 PREV OP: PANTONE 425 CV, PANTONE 485 CV Account Exec.: PATH: Macintosh HD:Desktop CLIENT: Sprint Studio Folder:PDF_SPRD_MobilComp_WhitePap2 Legal: LINE SCREEN: This mechanical was created by MRM New York Phone/Fax/E-mail: OPERATOR: tchristy Spell Check MOBILE COMPUTING THE SPRINT E| SOLUTIONS WHITE PAPER SERIES experience that provides a strong level of Internet connectivity molded to the unique features of wireless devices. Wireless and the Enterprise The majority of business executives, middle management, field-workers, and outside sales personnel are using some type of mobile communication tool. Most are either using a handheld device or mobile phone. Thus, although they already have the tools, they still require integrated applications that they can use on any device. This sort of “application roaming” is essential to user acceptance of wireless technologies. Just why are companies adopting wireless for business use? There are several key reasons. For instance, laptops can be cumbersome and costly to support. They also tend to be ineffective for quick approvals, planning meetings, or executing transactions. On the the majority of business executives, middle wireless front, on the other hand, management, field-workers, and outside mobile service providers have rapidly expanded their networks, sales personnel are using some type of mobile and device manufacturers have communication tool developed a variety of products geared towards enhancing the experience in accessing data. Horizontal applications include: 1. Alerts and alarms 2. E-mail and calendaring 3. Short Messaging Service (SMS) 4. Finance (including invoicing and payments) PAGE 3 JOB#: SPRD2184 PREV OP: DATE SIGN OFF K PANTONE Proof Reader: SAVED: 6/5/02 - 2:13 PM PREV MAC: 425 CV PRINTED: 6/5/02 - 2:13 PM FILE: AGaramond, Univers 45 Light, Univers 57 Art Director: PANTONE Copy Writer: FILE: PDF_SPRD_MobilComp_WhitePap2 Condensed, Univers 65 Bold 485 CV DESC: ECommerce white papers PREV OP: PANTONE 425 CV, PANTONE 485 CV Production Mgr.: PROOF#: 1 CLIENT: Sprint Account Exec.: PATH: Macintosh HD:Desktop Studio Folder:PDF_SPRD_MobilComp_WhitePap2 This mechanical was created by MRM New York Legal: LINE SCREEN: Phone/Fax/E-mail: OPERATOR: tchristy Spell Check MOBILE COMPUTING THE SPRINT E| SOLUTIONS WHITE PAPER SERIES The core incentives for implementing wireless applications in an enterprise are: • Improving supply chain efficiency by integrating various levels of corporate activity • Improving productivity and lowering costs by increasing efficiency in everyday work processes • Improving cash flow by accelerating payments from customers—increasing the efficiency of gathering the data needed to create and deliver invoices to the customer • Reducing paperwork by using wireless interfaces to capture data and immediately store it in back-office systems • Improving response time and coordination between mobile workers and those at fixed locations to maximize efficiency According to research by Bear Stearns, companies can reap great benefits from mobilization. They estimate that adopting and integrating mobile applications into an enterprise can generate a 10%–30% increase in produc- tivity. This, in turn, can yield a return-on-investment of 60%–500% per year.5 Despite the upside of the business use of wireless, there are also barriers to widespread adoption. Wireless phones and handheld devices are an inherently different medium than desktop adopting and integrating mobile or laptop computers. The vast applications into an enterprise can generate majority of wireless devices a 10%–30% increase in productivity have monochrome displays, small touch pads, and no capacity for multimedia. Applications for these devices have to be tailored to the medium to be effective. However, after several years of both successful and failed experimentation, developers are now providing exciting and useful 5 Fieler, Jeffrey R.,“Mobile Internet and Applications”, Bear Stearns, New York, NY, June