2013 Budget Planning for Mobile

This presentation from Propelics reviews:
- Trends in mobile budgets for 2013
- Individual line items to include in your mobile budget (like app development, MDM / Mobile App Platform software, device procurement and telecom expense management, mobile help desk support, as well as many more…)
- What to include as a capital expense vs. an operational expense
- How to build an accurate and defensible budget for mobile for FY2013

Transcript

1. Welcome. @propelics Questions, Comments
 to #mobilebudget Budget 
 Planning for Mobile September 27th, 2012
2. #mobilebudget 2   •  15+ year track record •  Fortune 500 clients •  Global experience •  100% focused on mobile for the Enterprise •  San Jose, Boston, Pittsburgh Propelics Background – About Us Propelics creates mobile strategies and world class 
 Apps for the Enterprise.
 
 Trusted by companies like yours:
3. #mobilebudget Larry Lauvray: Propelics Co-Founder 3 •  Mobile Mentor •  Mobile experience starting in 1990 •  Custom applications since 1995 •  Utility and Communications Industry ~9 years •  Lead both business and technology segments •  Enterprise Background •  Enterprise solution architect ~22 years •  Global application strategy and project delivery •  Served over 30 industry verticals •  Hundreds of custom and packaged application implementations
4. Q: What are the key considerations for an Enterprise Mobile Budget? 4
5. Key Considerations - Enterprise Mobile Budget Planning •  What are the big-ticket items I will need to include? •  How will mobile impact my capital and expense budgets? •  What are my enterprise mobile priorities for next year? •  What are other companies doing about mobile expenditures? •  How do some of the new mobile acronyms impact my budget? •  BYOD, MADP, MDM? •  What are the key strategic decisions that will impact my budget? ….and many more 5
6. Training and change management As-a-service vendors Mobile devices (byod) Voice and data (carrier) Apps & Development efforts App maintenance Expense budget Enterprise Mobile budget Capital budget Mobile device management Mobile Development platforms Infrastructure Strategy and planning Corporate Mobile devices network Asset management POC & Pilot efforts Mobile applications Integration and security
7. #mobilebudget 7 of Fortune 1000 CIOs are expecting to deploy mobile applications to their workforce in the next 12 months. Source:(Kelton(Research,(2011 90%
8. #mobilebudget 8 Top 10 CIO Business and Technology Priorities
 Source:  Gartner  Execu0ve  Programs  (January  2012)       Cisco  Wireless  Product  Manager,  Mark  Denny:   •  By  2015,  15  billion  new  networked  mobile  devices  (projected)   •  75%  of  employees  use  mul0ple  devices  at  work        Mobile  expecta0ons  are  high  -­‐  whether  inside  the  office  or  on  the  road.  
9. #mobilebudget 9 0 25 50 75 100 Jun-10 Dec-10 Jun-11 Dec-11 US Mobile Apps vs. Web Consumption, Minutes per Day Mobile Apps Web Browsing Source:(Flurry(Analy/cs,(2011 43 Minutes 64 Minutes 66 Minutes 70 Minutes 81 Minutes 74 Minutes 94 Minutes 72 Minutes Increased expectations for rich experience
10. #mobilebudget Year Over Year: Mobile Budget Increases 10 1990’s   2000’s   2010’s   Cell  phone   Voice  Plans   PDA   Voice  Plans   Data  Plans   Smart  Devices   Voice  &  Data   Phone  &  Tablet   Apps  &  Web   Mobile  Everything   Voice  &  Data    (3G,  4G)   Phone  &  Tablet  (>  100  types)   Enterprise  Apps     Consumer  Apps     Enterprise  Integra0on     MADP  (cross  pla\orm  apps)   MDM  (device  management)   IAAS  (infrastructure)   PAAS  (Pla\orm)   Governance     3-­‐5%   5-­‐7%   7-­‐10%   <  1  %   %  increase  in  yearly     Mobile  budget  alloca0on  
11. #mobilebudget Capital & Expense Budgeting Methods 11 •  Capital Budget Methods •  Net Present Value (NPV) •  Payback Period •  Depreciated Investment •  Internal rate of return •  Corporate asset base •  Operational Expense Budget •  Forecast of ongoing expenses •  Historical expenses * inflation rate •  New expense items projected •  Depreciated capital items •  Cash-flow driven by disbursements
12. #mobilebudget Capital Budget Components 12 •  Hardware (~20%) •  Mobile devices (corporate liable assets) •  On-premise server installations (App, Web, SOA, Database, Proxy, etc.) •  Internet, WiFi, Network, and Infrastructure installations •  Software (~20%) •  Development and Device Management Platforms (non-hosted) •  Testing and Online training platforms •  Internal Application Development and Support Labor (~30%) •  Initial application (asset creation), Proof of Concepts, Pilot projects •  Resource Training (Materials are assets) •  Consulting (~20%) •  Mobile Strategy, Application Strategy, and Application Roadmap •  Business Case Creation •  Training Materials to Capitalize (~5%) •  Instructor Lead and Online materials (assets) •  Licensing Costs (~5%) •  Integration connectors, Developer licenses, Database (non-hosted)
13. #mobilebudget Expense Budget Components 13 •  Subscription Expenses (~20%) •  Carrier monthly expenses (voice & data) •  Hosted Services (“as-a-service” vendors: MADP, MDM, IAAS, PAAS, etc.) •  Mobile Apps - Ongoing Application Enhancements (~20%) •  Mobile Project initiation, design, and deployment (split between capital) •  Mobile application enhancements (expense of the capitalized application) •  Staffing Expense - new FTE hires and subcontracted roles (~30%) •  Mobile Architect, Developer, and User Experience SME •  Mobile strategy and governance oversight •  Ongoing Maintenance/Support (apps, devices, network) (~20%) •  Extensions of existing support capabilities, additional staff for mobile •  Mobile Devices (device reimbursements) •  Change Management, Training, and Communication (~5%) •  Planning for change management and communication •  Training delivery •  Retirement of Existing Assets (~5%) •  Device decommission, disposal, battery recycling, etc.
14. Enterprise Mobile Budgets:
 Approach to Budget Creation
15. Historical Budget justification And Detail gaps As-a-service plan New Mobile Line items Mobile Budget Straw-man Gap analysis for new mobile items Mobile Budget: Approach Vendor comparisons Enterprise Items Device Plan (CL & BYOD) Mobile / App Strategy Staff plan (int. vs. ext.) Department & LOB items Step I: History Review Step II: Assess missing details and create the justification Step III: Budget submission and adjustments
16. #mobilebudget Mobile Budgeting: Defining Mobile Charter 16 •  Determine goals for mobile Applications and use cases •  Identification of scenarios •  Determine primary business value driver and actors for each scenario •  App Identification & Prioritization •  Determine IT Needs •  Device Plan (Multi-Platform) •  Understand Risks and Mitigation •  Determine Development Approach and Vendors •  Understand Infrastructure Needs
17. #mobilebudget Mobile Budgeting: Mobile App Portfolio 17 •  Horizontal:  Business   Value   •  Ver0cal:  Risk   •  Color:  Readiness   •  Size:  Ease  of   Implementa0on  
18. #mobilebudget Mobile Budgeting: IT Readiness and Actions 18 Stage 4 Stage 3 Stage 2 Stage 1 Stage 5 Mobile  Strategy Channel strategy Enterprise Info. Mgmt. IT Delivery & Support Policy Definition Policy Governance Network Infrastructure Security Infrastructure App development platform Mobile Device Mgmt. Platform Telecom Expense Mgmt. Wireless Svc. Mgmt. Maturity Ranking IT Readiness for Mobile
19. #mobilebudget 19 Legacy  Web   Web  Apps.   Na0ve  Apps   Intermediate  Language     and  Na0ve  Run0me   Na0ve  Code   Generator   JavaScript,  CSS3,  HTML5   Web-­‐to-­‐NaHve  RunHme   NaHve  Cross-­‐Compile   MADP: Mobile Application Deployment Decisions
20. #mobilebudget MDM/MAM: Mobile Device and Application Management 20 •  Key decisions and considerations •  MDM hosted/managed or installed: Recurring expense vs. capital purchase •  Sizing: Number of managed devices, types of devices, geography •  Configuration: Remote control, Self service portal, Alerts and Reporting •  Security: Data encryption, selective wipe, data leak prevention, jailbreak detect •  Features: Whitelist, App store (enterprise and managed vendor storefronts) •  Applications: Containerization for applications and VPN micro-tunnel controls •  Platform: mobile OS, Service integrations, globalization, and expense management •  Disaster Recovery: Redundancy, failover options, performance history •  Vendor Maturity: Statement of Direction, viability, market size, customer trend
21. #mobilebudget Labor and Resource Skills: In-House or 3rd Party 21 •  Key Decisions for Planning Labor Costs (examples) •  Identify in-house skills and availability (Mobile architect, Integration, developer, UX) •  Project Sizing (Small POC Apps @ 200 hours - through large applications) •  Coding skills: What OS platforms, and how many platforms will need to be coded •  User Scenarios: What users and devices will be targeted •  Ongoing support: Geography, user maturity, and critical SLA considerations •  Considerations for Internal Staff: •  Skills: Either have the right skill profiles, or need training •  Availability: Ability to focus on the “day job” and/or mobile projects •  Missing skills need to be hired with ramp-up considerations •  Considerations for 3rd Party Staff: •  Cost: Determined by level of seniority and geography •  Locations: Expectations for onsite, offsite, or offshore •  Accountability: Fixed-cost, deliverables based 
 agreements Provisioning   Performance  Management   OperaHons  and  Support   Compliance  and  Security   Expense  Management   Decommissioning  
22. #mobilebudget Budgetary Application Costs 22   Basic  Consumer  Mobile  App  Development  Cost:          $10,000  (+/-­‐  20%)   No  integra0on,    Standard  controls,    Minimal  Design  and  project  management     Simple  Enterprise  Mobile  App  Development  Cost:          $50,000  (+/-­‐  20%)   Limited  footprint,  Single  integra0on   Design  for  architecture,  security,  and  user  experience   Lite  screen  personaliza0on     Medium  Enterprise  Mobile  App  Development  Cost:          $100,000  (+/-­‐  20%)   Department  /  Division  footprint   Branding  to  support  customer-­‐facing  interac0on   Integra0on  leverages  exis0ng  enterprise  capabili0es   Enterprise-­‐class  Standards,  security,  and  scalability   Highly  tuned  user  experience     Complex  Enterprise  Mobile  App  Development  Cost:          $150,000  (and  up)   Enterprise  footprint   Highly  tuned  branding  and  user  experience  (include  customer-­‐facing)   Custom  Integra0on  (batch  and  real-­‐0me  within  the  Enterprise)   Enterprise-­‐class  Standards,  security,  and  scalability   Mobile  device  and  applica0on  management  infrastructure  (MDM,  MAM)  
23. #mobilebudget Infrastructure Considerations 23 •  Key Decisions for Planning Infrastructure (examples) •  Identify proposed or ongoing enterprise infrastructure projects (add mobile factors) •  Server planning: Databases, Data Integration, Web Services, SOA •  Network planning: WiFi bandwidth and coverage, WiFi usage (remote, retail, etc.) network planning (VLAN use, etc.) •  Security: Web Proxy, Reverse Proxy, Device Certificates, SSL VPN, Authentication •  Ongoing support: Help Desk(s), Self Service •  Service Management: Device & App Monitoring, Service Catalog, Supplier Management, Change Management, Knowledge Management, Event Management, etc.
24. Historical Budget justification And Detail gaps As-a-service plan New Mobile Line items Mobile Budget Straw-man Gap analysis for new mobile items Mobile Budget: Approach Vendor comparisons Enterprise Items Device Plan (CL & BYOD) Mobile / App Strategy Staff plan (int. vs. ext.) Department & LOB items Step I: History Review Step II: Assess missing details and create the justification Step III: Budget submission and adjustments
25. #mobilebudget 25
26. #mobilebudget 26 3-5 Weeks Step I: History Review 0.5 Week Step II: Gap Analysis and Budget justification details Step III: Budget review and submission 2-4 Weeks 0.5 Week Kickoff Executive Readout Mobile Budgeting: Typical Timeline
27. Enterprise Mobile Budgets
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28. #mobilebudget Next Steps Mobile App Roadmap Kickstart Webinar Special: 20% off all services if contracted in October! Budget Planning for Mobile
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29. Thank You. @propelics