Mobilizing the Enterprise: A Conceptual Model of Transformational Value and Enterprise Readiness
Abstract:
Mobile enterprise initiatives are evolving from small projects focused on productivity improvements and cost savings to large-scale enterprise-wide strategic implementations that enable companies to gain and sustain competitive advantages.
Despite its many potential benefits, however, widespread enterprise adoption of mobile solutions has not been as extensive as anticipated.
This article explores the salient factors that lead to an enterprise’s decision to adopt mobile solutions and suggests their transformational impact.
This research illustrates the importance of understanding the level of mobile enterprise readiness and provides a basis for future mobile enterprise oriented studies.
Managerial and strategic implications are discussed.
Introduction:
Recent advances in mobile information and communication technologies (ICT) have led to an increasing demand for enterprise mobility solutions.
Mobile enterprise initiatives are evolving from small projects focused on productivity improvements and cost savings to large-scale enterprise-wide strategic implementations that enable companies to gain and sustain competitive advantages (Kornak et al., 2004).
Despite its many potential benefits, however, widespread enterprise adoption of mobile solutions has not been as extensive as initially anticipated (Daley, 2005).
Commonly cited reasons for the slow speed of enterprise adoption are often technology-related, such as concerns regarding security and privacy, evolving technology maturity, and a lack of compelling mobile enterprise applications.
However, other equally significant reasons are of strategic and organizational nature and include a lack of understanding of the value and impact of mobile enterprise solutions, the economic risks and uncertainties involved in mobilizing the enterprise, and the complexity of when and what to mobilize (Basole, 2004).
Some studies suggest that a good starting point for emerging technology decisions - such as enterprise adoption of mobile ICT - is to understand where the organization is right now, and what benefits you can harvest today and anticipate for the future given the current state of the technology (Rouse, 1996).
Similarly, practitioners have called for a structured and measurable approach to technology adoption decisions, one that can aid decision makers in quantifying the value of emerging technologies and making objective judgments (Kalakota and Robinson, 2001).
To this extent, researchers have developed scorecards, techniques, and tools that help identify technology opportunities and align technology with strategic objectives (Hartman and Sifonis, 2000, Kaplan and Norton, 1996, Ward and Peppard, 2002).
Hartman and Sifonis (2000), for example, introduced the concept of net readiness and developed a structured approach that aids companies in exploring e-business strategies.
Rouse et al. (2000) developed a technology decision advisor that navigated users through the complex decision space and provided technology recommendations.
Others have used economic valuation and decision-theoretical techniques to elicit the value of adopting emerging technologies (Fichman, 2004, Kauffman and Li, 2005).
Empirical studies on technology decisions identified critical success factors and provided case studies and anecdotal evidence (Cooper and Zmud, 1990).
While there is a plethora of research related to technology decisions, surprisingly little research has focused on mobile ICT in enterprises.
This research attempts to fill the theoretical and practical gap by exploring the transformational value and impact of mobile ICT in enterprises and introducing the novel concept of mobile enterprise readiness.
The remainder of this article is organized as follows and is shown in the mobile enterprise adoption framework in Exhibit 1.
The research first explores the salient factors that lead to an enterprise’s decision to adopt mobile solutions.
Drawing on theories from the engineering management, enterprise transformation, and information systems literature, the article then identifies the salient dimensions that determine an enterprise’s mobile readiness and provides a comprehensive investigation of the value propositions, associated costs and benefits, and transformational impact of mobile enterprise solutions.
The research concludes by highlighting managerial implications and providing future research directions.
Conclusions:
Successful mobile transformations require a long-term vision and support from all the stakeholders.
This research argues that mobile enterprise solutions have a value and impact far beyond today’s applications.
In fact, it is argued that mobile solutions will transform enterprises in several significant ways.
Mobile transformations occur in four distinct, but not necessarily sequential, phases.
Between each phase, enterprises will experience transition barriers.
This research also identified some of the most critical factors associated to adoption of mobile enterprise solutions.
Having an understanding of their influence and impact, decision makers can make a more objective judgment on why and when to adopt mobile ICT.
This research also argued that a critical ingredient to adoption is a careful evaluation of mobile enterprise readiness.
Only when these factors are considered and evaluated, enterprises will experience a smooth adoption process and can harvest the benefits of mobile enterprise solutions in the most effective and efficient way.
The mobile enterprise adoption framework presented in this research provides an overview and suggestive structured approach to organizational decision-making with respect to mobile ICT and a basis for future mobile enterprise oriented studies, enhances our understanding of mobile application opportunities, and facilitates the development of appropriate mobility strategies.
Future research directions of particular interest will include an in-depth investigation of the dimensions and development of an instrument for mobile enterprise readiness, empirical examination of the factors during inter- and intra-phase transitions, and a qualitative case study approach to studying successful and failed mobile transformations.