Tuesday, July 9, 2013

Enterprise App Store: Embracing Consumerization and Mobility into Workplace

With rapid adoption of Smartphones and Tablets by employees, fledgling “Bring Your Own Device (BYOD)” concepts at workplace and consumerization of IT, it becomes imperative for enterprises to embrace the change and enable secure use of enterprise applications on mobile devices of its employees. Using App Store for Corporate applications will provide better user experience while allowing authorized self-service model for its employees to download applications.

Consumerization of Workplace. Smartphones and tablets usage have been growing rapidly where the smartphone penetration had already crossed more than 50 percent in US[i]. Many of these devices which are intended for personal use are being used for business purposes. Companies are accepting this reality and according to a study conducted in 2012 by Good Technology, companies with no BYOD plans have dropped from 9 to 5 percent[ii]. Global mobile worker population is expected to reach 1.3bn by 2015 according to IDC, which represents 37.2 percent of workforce[iii]. To support mobile work styles and BYOD, Enterprises will have to provide custom mobile business apps for its emerging mobile workforce. Spending on mobile enterprise apps is expected to reach $53bn in 2017 from $26bn in 2012[iv], doubling in size.

Playing Catch-up. Consumers are increasingly using downloadable apps from Apps Store with an estimated 70 billion downloads by 2014[v]. Nielsen estimates that average number of apps in a smartphone has gone up from 32 apps in 2011 to 41 apps in 2012[vi]. By 2014, business applications such as CRM which can be downloaded to mobiles from App Stores would have grown by 500 percent[vii].Likely, this trend will extend to other internal and external business applications and it is expected that by 2017, 25 percent of businesses will have some kind of App Store within their network[viii].Many consumer App Stores such as Apple, Google and Windows (with their acquisition of Yammer) are also extending this concept to Enterprise segment. Other players such as SalesForce and SAP are creating their own ecosystem. Enterprises are slowly catching with App Store concept from consumer segment.

An Enterprise App Store. App Store (figure 1) will serve as a repository of all apps required for business purposes and other consumer oriented apps. A single sign-on will enable employees to access and download apps of their choice. This ease of use, accessing apps anywhere anytime, results in increased productivity and greater employee satisfaction. Companies can provide a set of authorized apps on their stores. Other convenience is that App Store provides notification on updates and gives flexibility for its employees to update versions at any time.  It is estimated that 40 percent of global 1000 companies will use gamification for better employee engagement, performance, training and personality development, wellness and other application by 2015[ix]. This App Store could also provide support for game based apps for understanding business operations. Enterprise App Store provides flexibility, better employee experience, enhanced control over access to different group, analyse usage pattern and recommend actions.



Figure 1


Challenges to Adoption. Enterprises would like to have control over the type of applications its employees download and use in the business environment. Security of its key information will be a major challenge. By determining access levels to Apps at different employee bands will be paramount to secure the access/flow of information to intended users. Apart from providing ubiquitous email apps, enterprises should examine what kinds of applications are required for different set of employees. For instance, sales group may require access to CRM app while a business executive may need access to expense sheet app. Major concern for an enterprise would be on developing apps in-house or sourcing apps from other vendors. Many vendors have developed App Store solutions which could be used for faster deployment. Tracking licenses for software based on number of users and managing with wide variety of vendors for licenses is essential to avoid unnecessary usage and compliance costs.

Approaches to Set-up App Store. Consumers have got used to better way of browsing, downloading and purchasing apps in Apple Store/ Google Play. Enterprises will have to extend similar level of user experience on their App Store. As most of the App Store will be a self-service model, it is important for companies to have an interactive help agent that guides employees to choose an appropriate app for their business purpose. Companies could start small with developing/sourcing apps for internal purposes to a smaller group of employees. Intel has adopted liberal BYOD policy and started developing applications for internal purposes such as booking conference rooms that works on different platforms[x]. Companies can then build on initial momentum from smaller deployment and gradually extend to larger audience with wider range of apps. There are many third-party providers such as AppCentral[xi] that enables customizable App Store where apps can be accessed on any platform and usage of apps can also be monitored. Partnering with these third-party vendors enables quick support on deploying multi-platform apps.  

Making it a Success. To enable wider use of Enterprise App Store, companies will have to buy-in acceptance from its employees by providing user experience just like they would feel on Apple Store or Google Play store. App Stores need to have an appropriate portfolio of apps for different purposes. Enterprises can monitor which apps are widely used and accordingly the licensing process can become dynamic as not all the apps will be used by employees. The usage can be enhanced by providing social collaboration tools such as yammer wherein the employee could share experience with his network of colleagues. Companies can also provide recommendations on apps to other employees based on the behavior of existing members of its App Store. Enterprise App Store is a growing trend and companies should assess their demand and supply capabilities to devise appropriate IT strategy for successful implementation.



[i] Nielsen - http://techcrunch.com/2012/05/16/nielsen-u-s-consumers-app-downloads-up-28-to-41-4-of-the-5-most-popular-still-belong-to-google/
[ii] http://www.zdnet.com/consumerization-byod-and-mdm-what-you-need-to-know-7000010205/
[iii] http://www.wipro.com/Documents/the_enterprise_app_store.pdf
[iv] Strategy Analytics - http://www.information-age.com/technology/applications-and-development/2143973/mobile-business-apps-market-to-reach-$53bn-in-2017---strategy-analytics
[v] Gartner - http://www.destinationcrm.com/Articles/Columns-Departments/Insight/Vendors-Grow-Their-Partner-Ecosystems-86700.aspx
[vi] Nielsen - http://techcrunch.com/2012/05/16/nielsen-u-s-consumers-app-downloads-up-28-to-41-4-of-the-5-most-popular-still-belong-to-google/
[vii] http://www.gartner.com/newsroom/id/2421015
[viii] http://www.cio.com.au/article/453613/enterprise_app_store_adoption_rises_gartner/
[ix] http://www.forbes.com/sites/gartnergroup/2013/01/21/the-gamification-of-business
[x] http://www.eweek.com/mobile/enterprise-app-stores-help-users-and-it-get-the-most-from-byod/
[xi] http://www.appcentral.com/wp-content/uploads/2012/06/AppCentral-Solution-Brief-120622.pdf