Whereís the Payback in Wireless Applications?

Information Technology (IT) is an essential part of every successful enterprise, connecting both the internal and external information flow of virtually every vital business function. Whether data for sales, marketing, accounting, product development, supply chain management, distribution, manufacturing or human resources -- continuous improvements in the handling of data and use of enterprise information has justified enormous investments in enterprise IT in recent years. This trend is sure to continue over the long run.

Surprisingly, however, few enterprises have extended their IT investment into wireless IT, even though there is little doubt that emerging wireless technologies will play an increasingly important role in empowering a highly mobile workforce.

Uncertainty about the technology, and the potential for return on investment, are key reasons that many enterprises are reluctant to jump on board with wireless technology. However, with a clearer understanding of the risks associated with this decision and sound strategies to manage the risks, your enterprise will be better equipped to decide how to set sail in these waters.

The Deep, Uncertain Waters of Wireless Technology

Objections to wireless technologies come from many different sources but most are related to the industryís lack of maturity. With wireless application development still in itís infancy (also see Outr.Netís Top Ten Pitfalls to Wireless Application Development), you and your colleagues may be reading articles that suggest wireless ìisnít ready for prime-time yetî or that wireless devices ìare just nice toysî and that this technology is ìnot secureî. In fact, the seemingly endless over-hype of wireless technologies may have you uncertain what to believe at this point!

In many cases, these objections of uncertainty are caused by the rapid rate of change that the evolving wireless industry is experiencing. Consequently, you may be afraid of paddling the wrong direction while the currents of technology are still changing. Do you find yourself waiting for 3G / Bluetooth / Java / ìmagic pillî technology? Are you wary about investing in a device or platform or middleware solution that could go obsolete in a few months? Or, like many others, are you simply taking a ëwait and seeí approach and watching to see what your competitors do first?

In other cases of wireless uncertainty, there may be a lack of awareness of what is possible with programmable wireless devices. Perhaps you feel your internal technical teams are resistant to wireless solutions and still need time to figure out this new technology, understand the scope of ëprogrammableí wireless devices and define what this platform can do for your business. You may also simply be unsure of end-user acceptance, thinking your users arenít very technology savvy or are resistant to change.

The reality is, you DO have a right to be uncertain - - there is some merit to each of these concerns. But can your business afford to ignore an opportunity to improve your bottom-line? Probably not ñ so keep in mind that developing a wireless implementation strategy that addresses each of these concerns will lessen your anxiety and ensure that you swim, not sink, as these technologies sail into your core IT strategies.

Navigating the Choppy Waters of Wireless Payback

Sometimes there is a strategic initiative in place to specifically invest in a new technology. Unfortunately, this is pretty rare in these tough economic times. In most cases, a new technology is adopted only if it helps increase market share, cut costs, or achieve a tangible competitive advantage for the enterprise. There needs to be at least the intent of payback on investment and a plan to appropriately manage risks. Right?

There is an abundance of reference material that covers calculations for IT Return on Investment (ROI) and IT Internal Rate of Return (IRR). There is however much less information to identify payback opportunities specifically in wireless IT. The following basic steps can be used to help with this process.

Document Data and Information Flow: An essential first step to calculating wireless payback is to create a map or flowchart that details the flow of all your current enterprise data and information. This seemingly obvious and essential step is often overlooked. Helpful hint: rather than restricting yourself with preconceived notions of the technical limitations of current wireless technologies, assume that all things may be possible. Donít be afraid to think outside the box!

Identify Flow Inefficiencies: The next step is to identify inefficiencies in your current business processes before applying new wireless technologies in those areas. It is almost always a bad idea to layer new technology on top of bad processes.

Identify Wireless Opportunities and Payback: With your information flows clearly defined and opportunities for improvement identified, itís time to consider the impact of wireless and associated payback opportunities by asking yourself some of the following questions:

• Improved business processes: Are there opportunities to eliminate work associated with the redundant handling of data? Consider how much extra effort is required to reenter forms-based data into a back-office system and confirm an order or check inventories in front of a customer. Since a wireless application can capture data input once and pass it over-the-air for electronic processing, how can this increase efficiency for your field workers?
• Data timeliness: Which enterprise information is most volatile? What is the value and lifespan of this information? What are the losses associated with information that isnít accessed (or accessible) in a timely manner? What are the opportunities to reduce these losses with wireless applications that give mobile workers access to IT information anytime and anywhere?
• Data accuracy: What is the level of accuracy of information that originates from your field workers? Consider all kinds of data such as hand written forms, voice messages or faxed materials. Now calculate the cost of a single error that could be caused by, say, poor penmanship or a garbled message or low toner. Is there potential to reduce these errors with a mobile application that utilizes data features like pre-defined selections and verification of data entries?
• Mobility of workforce: How much of your workforce (executives, salespeople, field technicians, drivers, vehicle drivers, warehouse associates, health-care professionals, etc.) are mobile at least part of the time? You may be surprised to uncover the gains in efficiency that are possible if these people can do their field jobs without being tethered to a desktop to interact with business critical information.
• Reduced costs of capital equipment and maintenance: What are the capital expenditures and maintenance costs associated with PCs and peripherals for your mobile workforce? Be sure to take a look at cell phone usage, pagers, PDAs or interactive voice response systems. Are there opportunities to effectively supplement or replace these with less expensive, consolidated wireless IT solutions?
• Competitive advantages: Is there an opportunity to use wireless technology to achieve an advantage over your competition? A wireless application can enable your enterprise to be more responsive to your customers, improve the accuracy of customer interactions and make your proposals more timely and professional. All potential market growth opportunities!

Smoother Sailing for Wireless Technology

Once you have determined if launching a wireless IT program makes good strategic and financial sense, the risks and concerns pointed out earlier must be addressed. Here are some suggestions to help you keep your head above water:

• Phased implementations: Wireless IT is not simply ëunplugged ITí. Buying into suggestions of ìdevice-agnostic wireless browsingî is a simplification of the environment that often overstates the capabilities of a wireless application while at the same time ignoring other opportunities for return. Never shortchange yourself on a ìPhase 1î period that allows for familiarization, experimentation, prototyping and planning. Extra time during the implementation (Phase 1) will ensure that you do not underestimate the human, technical, operational and logistical challenges involved in a major wireless IT deployment. Far too many wireless IT projects run aground because the importance of the end-user experience was underestimated, alpha and beta testing was shortchanged, or deployment and upgrade strategies were not sufficiently thought through.
• Focus on process, not equipment: During the early stages of the voyage, locking yourself into a device, network, or other wireless technology selection intended to carry your wireless IT for the long haul may be impossible. It is probably more realistic to assume that these components of your implementation are likely to change over time. Instead, focus on long-term business processes, user experiences, and deployment strategies that can accommodate these changes during technical implementation. You will find as your journey progresses that the established usage patterns among end-users often dictate specific devices and networks anyway.
• Donít overlook last yearís technologies: If the goal of your wireless IT initiative is to amaze and astound, some of the latest wireless devices will certainly do so. However, if the priority is to provide reliable and cost-effective functionality, some of the technologies that no longer enjoy the limelight have evolved into durable workhorses that consistently get the job done.
• Enlist the experts: Even if youíve decided that wireless technologies will be core to your business, enlist outside expertise until you come up to speed. These technologies are evolving so quickly that even those who spend 100% of the time in the business are challenged to keep up. Take advantage of the expertise thatís available from the providers of devices, networks and wireless middleware, but also consider enlisting the services of an independent expert that isnít motivated to sell you a specific technology.

Set Sail!

There are legitimate reasons to be cautious about wireless IT. Successfully navigating these deep waters is all the more reason to get started as soon as possible with at least a ìfamiliarizationî phase. Now is the right time to allocate resources to become familiar with wireless devices, networks, and prototype applications. Use these experiences to develop and refine a long-term roadmap that accommodates both the risks and potentials of wireless IT.

Those enterprises who wait, and then try to catch up later with a big leap, may well find that the wireless IT ship has already set sail with their competition onboard.

Written by:

Jane Somerville and Kim Spitznagel
President
Outr.Net, Inc.



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