Bring Your Own Device It's all about Employee Satisfaction and

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1 Bring Your Own Device Its all about Employee Satisfaction and Productivity, not Costs!

2 Abstract BYOD is becoming more popular globally. For instance, a survey indicated that about 28% of the global workforce in 2011 used personal devices for official purposesi. This growth of BYOD is creating doubts in the minds BYOD questions how of CIOs. Most focus on BYOD has primarily been from a cost savings IT is viewed and perspective, however, our analysis indicates there are more important implemented, and reasons for CIOs to consider. requires significant When employees use personal devices at the workplace, businesses evolution in IT clearly save on capital expenditure of hardware and software, and related IT operational expenses. But cost benefits often get eroded by further organization. investments such as virtualization or security reinforcement to support the BYOD model. With such long-term sustained investments, it appears BYOD doesnt have a significant cost advantage. The business benefits, instead, appear to lie elsewhere one of the major benefits of BYOD is employee satisfaction. In addition, it boosts employee mobility, productivity and is perceived as a strong differentiator in attracting talent. The satisfaction among end users can also be leveraged to strengthen IT departments image. Organizations need to recognize and respond to the BYOD trend quickly to leverage new opportunities presented in terms of increased employee satisfaction, mobility and productivity. However, BYOD is not a simple IT project. It questions how IT is viewed and implemented, and requires significant evolution in IT organization to promote service-oriented models. It is critical for organizations to analyze key factors related to security policies, delivery model, IT solutions and support structure in order to define a successful customized device- agnostic BYOD strategy. 2

3 There is No Clear Business Case for BYOD Bring Your Own Device, or BYOD is been able to reduce expenditure a concept by which organizations by deploying some kind of BYOD allow employees to connect programii (See Figure 1). their personal devices, such as laptop, tablet and Smartphone, Considering basic costs under a to the corporate network, so that BYOD model, our own analysis they can access business and of total cost of ownership collaborative applications. (TCO) has shown that TCO in a BYOD arrangement is only 9.7% The driving belief behind BYOD lower than that of a standard adoption is that companies benefit model (See Figure 2)1. However, by saving capital costs as they no when additional cost heads longer have to provide employees are factored in, BYOD fails to with computing devices or demonstrate a clear cost savings related software. However, a advantage. These cost heads BYOD initiative need not always can vary substantially from one be cost effective, especially since organization to another based additional investments are needed on multiple parameters such as to support the usage of personal existing IT set-up, number of BYOD devices in a business environment. users, type of delivery model For instance, a study found that selected and platforms to be only 9% of organizations have supported. Figure 1: Percentage of Respondents According to Impact of BYOD on Expenditure (2012), North America 9% Only 9% of organizations have been able to cut 24% expenditure by deploying some kind of 67% BYOD program while 67% saw no difference with expenditure. No dierence with expenditure Increased spending Reduced expenditure Source: Xigo and CCMI Research (North America), July 2012 1 The TCO analysis is based on the calculation for 2,500 traveling workforce in a centralized IT organization. The traveling workforce is assumed to work outside the traditional office environment 80% of the time and use unmanaged notebooks. Moreover, full implementation has been considered under BYOD model (device virtualization), wherein employee sources as well as maintains a device and related software. 3

4 Figure 2: Total Cost of Ownership Analysis Indicating Unclear Cost Benefits of BYOD Model Compliance Stipends management under BYOD 0 Network When additional cost Opex Run 760 modications Application Admin. costs heads are factored Opex Engineering 208 354 300 438 testing & migration 191 Software in, BYOD fails to Capex 631 425 redevelopment 298 demonstrate a clear cost savings advantage. End 5,514 user costs 5,090 Standard model Basic costs under Scenario - specic BYOD model BYOD costs Source: Desktop and Laptop Total Cost of Ownership, Gartner, 2011; Capgemini Consulting Note: Cost heads are further explained in the endnote (See Reference section) These cost heads include software when 600 workers at a technology redevelopment to support company joined a BYOD multiple mobile platforms, Smartphone program, expenses application testing and migration, exceeded the budget in the first building wireless and virtual year by over $300,000iv. private network infrastructure, and compliance management. Cost savings are certainly not Take the instance of data plans: the main driving factor for in a BYOD model, companies can BYOD adoption. So, why should no longer negotiate corporate organizations continue to adopt or group discounts for devices, BYOD? Employee satisfaction and services and data plans, and enterprise mobility remain two paying for a large number of of the biggest drivers for BYOD individual subscription plans is adoption. Since enterprise mobility almost always more expensive promises enhanced employee than a bundled service contractiii. productivity, organizations are While they might be nominal costs foreseeing potential for revenues. individually, collectively they have In the next section, we will discuss the potential to adversely impact these benefits in more detail. the realizable TCO benefits from a BYOD arrangement. For instance, 4

5 Business Agility Drives BYOD, Not Costs Major Benefits of BYOD which improve their job satisfaction levels. According The major benefits from BYOD to a survey, 19% of businesses 19% of businesses include improved employee perceived BYOD as a way to enable convenience and satisfaction, perceived BYOD as a increased employee productivity, employee satisfaction, while way to enable employee 17% felt BYOD could improve greater workforce mobility and productivity at the workplacev. satisfaction, while employee retention as well For instance, by allowing as higher agility in business 17% felt BYOD could operations (see Figure 3). employees to use their personal Smartphones and iPads, Cisco improve productivity at registered a 33% increase in First, in a BYOD environment, the workplace. employees do not have to carry employee satisfaction, even multiple devices or switch though the company did not pay between personal and work for these devices or service plansvi. devices. In addition, employees feel more comfortable while working on personal devices, Figure 3: Major Benefits of BYOD Improved employee convenience and satisfaction Higher agility in Increased business employee operations productivity Attraction and Greater retention tool workforce for talented mobility workers Source: Capgemini Consulting 5

6 Second, a BYOD model leads Further, offering employees describe key factors essential to changes in employee work flexibility in device selection is in drafting an effective BYOD habits. It enables employees to an incentive for existing as well strategy and discuss the related use their devices after work hours as prospective employees. It also implementation roadmap. or during out of office periods communicates the message to the to deal with basic tasks, which workforce that the organization reduces wait times and enables trusts its employees in making quicker resolution of action items. their own decisions about how Shorter turnaround times and they work. Thus, with effective seamless business operations implementation, BYOD can act as Mobile workers who drive business productivity. For an important tool for attracting use mobile devices for instance, a survey among mobile and retaining talented people. workers showed that workers who Also, managed personal devices both work and personal use mobile devices for both work and application virtualization purposes put in 240 and personal purposes put in 240 enable seamless connectivity more hours per year more hours per year than those to corporate data under a BYOD who do notvii. environment, thereby enhancing than those who do not. overall business agility. Third, extended connectivity through mobile devices and So, improved employee remote access to the corporate satisfaction and business agility network offers employees through BYOD is clearly a greater mobility. Moreover, productive endeavor. But without mobile services on employee- a comprehensive strategy, owned devices enable employees policies and technology in place, to collaborate in real time BYOD exposes companies to and efficiently execute tasks increased costs, security risks irrespective of their location or and operational issues. In the time zone. subsequent section, we will 6

7 Roadmap to BYOD Implementation A BYOD implementation entails with crucial factors to roll out an BYOD model, and adopting new procedures, metrics, and effective BYOD strategy. Such a relevant IT and support systems, organizational structures along strategy would involve defining followed by a rollout strategy (see with IT architectural flexibility. a customized BYOD program, Figure 4). We have developed a BYOD establishing a comprehensive implementation framework along BYOD policy, selecting the right Figure 4: BYOD Implementation Framework 1 Dene a Custom - Made BYOD Program Current IT policy and personal device usage User preferences towards BYOD Infrastructure assessment 2 Establish a Comprehensive Select a Relevant Achieve the Regulatory Security Policy BYOD Delivery Model Complaince Address security concerns Opting the right type of Adhere to compliance - Data, network and arrangement standards access - Personal devices issued - Ensure industry specic - Catalog of managed BYOD regulatory compliance Adopt the Right IT and devices 3 Support Solutions - Full BYOD model Draft end-users agreement Finalize device catalog - Managing privacy issues and extent of coverage Adoption mechanism - Payment mechanism - Pilot program Deploy relevant application - Full implementation architecture - Native - Browser-based - Virtual 3 Rollout Strategy Rollout plan design and realization Measurement of BYOD adoption and benets Controlling HR and Legal issues Source: Capgemini Consulting 7

8 1. Define a Custom- to be considered while framing Made BYOD Program an effective BYOD strategy are whether the organization has The definition phase involves real-time control of content and infrastructure assessment and user activity, which applications evaluation of current states. A and data are potentially exposed review of current IT policy is to security risk, and if existing crucial to determine types of infrastructure is capable of personal devices allowed and handling increasing personal levels of access provided for device usage. business applications from these devices. Segmentation of End Users Moreover, internal surveys Organizations need to identify conducted across an employee eligibility towards a organization can reveal aspects BYOD model after assessing risks such as employee opinions pertaining to sensitive corporate and interest towards BYOD information. While some groups programs, expectations such as of employees have a strong BYOD compensation and support from requirement, other groups may the organization, and device- not necessarily be well-suited to specific preferences. This will a BYOD model. For instance, as result in a realistic assessment many as 62% companies actively of the feasibility of the BYOD target the mobile workforce when program in the organization, implementing a global BYOD and of end-user expectations model viii. during the initial stages of BYOD adoption. Infrastructure Assessment As many as 62% A review of current network companies actively architecture, including arrangement of firewalls, network target the mobile policies, datacenter scalability, workforce when network and end-point visibility, is essential to understand implementing a global BYOD associated risks. Key BYOD model. infrastructure-related questions 8

9 2a. Establish a can be implemented through Further, the risk of data being Comprehensive Security specific action points. compromised from a lost or stolen device is one of the major Policy Since sensitive organization data security challenges faced by The freedom to use personal are stored on employee-owned organizations when dealing with devices at work alters the devices, BYOD brings its own a BYOD program. Businesses traditional structure and scope security concerns. So device need to chart a clear plan and of control of the IT department. security management needs to be use relevant mobile device and Understanding the modified strictly enforced. Moreover, BYOD application management solutions environment will provide requires a new control framework to deal with lost or stolen devices. organizations with greater clarity as security enforcement is The plan need to include clear on what to consider when drafting not just limited to devices. notification process, necessary BYOD policies. The organization Organizations need to adopt a steps to be taken to remove access also needs to clearly prescribe systematic globalized security to the corporate network and specific courses of action in the approach that encompasses procedure to remotely erase local event of policy guideline violation. data, hardware, software and data stored on the missing device. network. Security rules based on Mobility and IT consumerization device management or container present evolving, complex security policies have to be defined for threats that require redesigning each category (laptop, tablet, existing security strategies. As Smartphone) of BYOD devices. Figure 5 illustrates, this strategy Figure 5: Major Action Points to Overcome Security Concerns Presented by BYOD Dene the security environment of BYOD - Identifying responsibility if the device is lost or stolen Dene a stringent security Design processes and rules to manage the future security threats protocols to protect corporate data - Based on the security lifecycle for a BYOD device Identify KPIs and quality criteria to track security assurance - Key indicators to measure results of security policies Segregate personal and professional data on user devices Secure data on devices based on Secure all devices used on - Device management or Container policies the corporate network Provide remote assistance for devices - Mobile Device Management tool is useful due to heterogeneous security rules on devices Classify risks and dene security protocols based on wired/ wireless connections - Standard 802.1x (security layer), UAG Gateways (access management) Review network access and Deploy data protection measures like IPSec and RMS services usage to identify sources of risk based on corporate network or web Dene the scope of usage of each service provided - Virtualized applications (VM Ware), web-based services (password management) Source: Capgemini Consulting 9

10 2b. Adopt the Right IT The second step is to deploy the are for new software installation, and Support Solutions relevant application architecture, and it is estimated that a ranging from virtualization corporate store can potentially A cross-analysis of the end-user software such as VMWare and save over $8.6 million a year in IT segmentation, type of personal XenApp, to browser-based access, helpdesk costsix. device used and business to server-based computing and application accessed, allows hosted virtual desktops. Further, organizations to develop a relevant creating a central repository of IT solution. It is important to enterprise software under the finalize device catalogs and deploy BYOD arrangement would enable A study found that 12% the relevant application strategies employees to easily access and of IT helpdesk ticket to develop an agile infrastructure download the software, as and for a BYOD environment. The when needed (see Needham requests are for new first step is to finalize the device Banks Case Study). software installation, catalog and extent of device coverage. A BYOD model entails and it is estimated that Finally, a corporate app store a transformation of the device under a BYOD environment can a corporate store can catalog list from a limited number offer employees the freedom to potentially save over of supported platforms to a select the software they require much wider list. Companies need on their device without the typical $8.6 million a year in to decide if they would allow service desk intervention. The IT helpdesk costs. all personal devices or specific creation of a corporate app store device categories such as laptop, will also reduce IT helpdesk costs. Smartphone and tablet on the For instance, a study found that corporate network. 12% of IT helpdesk ticket requests 10

11 Needham Banks Case Study Needham Bank deployed remote desktop solution to enhance worker productivity through BYOD Background their office devices from any significant increase in productivity device to access key applications. due to streamlining of operations, Needham Bank, a US-based eliminated the potential of data community bank, needed to To address security concerns, leakage and enabled employees to provide its employees an access to the bank uses mobile device use their device of choice for work. range of banks applications from management solution and train For instance, Banks accounting mobile device to increase banks workers on following safe practices team can quickly access financial overall productivity levels during while using own devices. The bank data remotely while the business evenings and weekends. Meeting also blocks its employees from development team can access security and compliance norms set downloading apps like Dropbox, core banking applications to get forth by government regulations a cloud storage service, and from relevant account and relationship were the key considerations in using iCloud, Apples storage information right before going evaluating a feasible solution. service. The banks IT also restricts into client meetings. Since, printing and clipboard functions to implementation of this initiative, Initiative prevent data leakage. In addition, Bank has recorded increase in In order to enable mobile access, the remote access solution keeps number of remote and mobile Needham Bank provides some the data off-the-network and no users by 11 times while time employees iPhones and iPads data or files are stored on iPad spend working remotely has (based on eligibility-criteria), or remote devices, so there is no grown by 120 times, driving overall which the company manages. threat to sensitive data in case business productivity of Needham Other employees, who do not these devices are lost or stolen. Bank. qualify for company-owned devices, are allowed to use their Benefits personal devices for work. Using Through remote and mobile single sign-on credentials bank access, Needham Bank achieved employees can remotely log into Source: Banks May Not Be Able to Resist BYOD, InformationWeek, April, 2012; Array Networks, March 2012 11

12 2c. Select the Relevant regulatory guidelines in the region of these delivery models depends BYOD Delivery Model of operation. Figure 6 illustrates on employees needs in terms of three types of BYOD delivery security, access to applications, The BYOD delivery model needs to models, with corresponding device preferences and need for be selected based on the industry, infrastructure layouts and support mobility. IT maturity level, organization structures, based on end-user structure, partner ecosystem and device ownership. Selection out Figure 6: Three BYOD Models Based on Computing Device Ownership, Infrastructure Set-Up and Support Policies Personal Catalog of managed Full BYOD devices issued BYOD devices model Corp Corp Corp End Users Work with the company owned Own their workstation sourced from Source and own their workstation workstation and their personal device within a company service catalog and Applications Partially virtualized Well virtualized Well virtualized Infrastructure - IT sources workstations without - IT oers a device catalog and lets - IT may oer allowances to employee involvement employees choose their devices employees for purchasing the device - Emails and some business apps are - All services and apps are available - All services and apps are available made accessible on personal devices on the employees own workstation on the employees own workstation IT supports company workstation IT supports employees own IT only supports business apps and and corporate services available on workstation including all exchange services (collaborative personal devices services on it tools) Helpdesk /Support Support for the hardware, device and basic services (OS, oce apps and browsers) is the employees responsibility Source: Capgemini Consulting 12

13 Ford Motors Case Study Ford Motors adopted a user community-driven approach to control support costs under BYOD program Background users and to control capital costs, they clearly understand their roles company decided to launch and responsibilities, what is the Ford Motors, a leading US- an alternative individual-liable support model, who pays what based automaker, started a program (ILP). Termed as email costs and other conditions of the program called Digital Worker on Personally Owned Devices program. back in 2007, which looked at or ePOD, the program enabled all collaboration tools to drive employees to access corporate Benefits increased capability globally. Out emails on personal devices. The of the four core areas identified The BYOD program resulted in structure of this program is that for this program, mobility solution increased flexibility for Ford employee pay for the device including BYOD was a key focus employees with seamless and data plans. The support area. The company then created integration of personal and work model is self and user community a cross-functional team consisting activities as well as reduced driven, wherein a group of BYOD of managers from the IT, legal, HR, costs associated with enterprise users interact on common online accounting and other departments mobility functions. From initial platform to resolve BYOD related to examine the risks and rewards 2,700 subscribers under BYOD queries and issues. The company of BYOD. (ILP), the program has been bears the back-end costs of expanded to include over 70,000 servers and software licenses such Initiative as Mobile Device Management. employees in 20 countries. The company recently deployed In 2009, Ford rolled-out a new mobile security system corporate-liable program (CLP) to The employees would fit into a and included other business enhance employee convenience corporate-liable (company-owned applications in addition to access and productivity. Under CLP, devices) or individual-liable to corporate email through company provides devices, pays (personal devices) program based Smartphone, tablets and other for the service and offer help desk on their job requirement and mobile devices. support to the employees for business criticality. Employees whom mobility is critical. However, under BYOD would sign a with the increasing number of participation agreement, so that Source: How Ford Motors Deployed BYOD, Forbes, July 2011; SearchCIO.com, August-September 2011 13

14 2d. Achieve the 3. Rollout Strategy of BYOD program to individual Regulatory Compliance The rollout strategy entails business units. We believe that designing the plan, guiding BYOD model should be considered Organizations devising a BYOD for creating business value that framework should not only ensure employees about BYOD to help them decide whether to join goes beyond cost savings. that the policies are acceptable to employees but also that they BYOD program, understand cost Growing expectations around address all statutory requirements subsidies, if any, as well as how usage of employees personal regarding compliance and tax data would be accessed, used and devices at the workplace indicate legislations. The BYOD model stored on personal devices. The clearly that the BYOD trend is should be regulatory compliant organization can choose to adopt here to stay. By encouraging with norms such as Health a company-wide BYOD rollout employees to use personal Insurance Portability and mechanism or approach it in a devices, BYOD policies not only Accountability Act (HIPAA) for phased manner. boost employee satisfaction and healthcare segment, and Payment drive business productivity, they Card Industry Data Security Conducting regular audits of personal devices ensures that also help organizations become Standard (PCI DSS) for financial nimble. An effective BYOD policy services sector, regardless of the employees abide by the BYOD policy. Measuring benefits of can help organizations integrate, device on which data is stored. It is and encourage, greater usage also important to draft guidelines BYOD, such as improvement in productivity and employee of digital tools. As digitization and agreements pertaining to and the imperative to digitally end-user privacy issues since satisfaction, enables organizations to alter the BYOD program transform become more critical, professional and personal tasks BYOD policies can be leveraged would be carried out on a accordingly. BYOD presents risks in managing work conditions, successfully to gain employee same employee-owned device. acceptance and buy-in for large- Employees eligible for BYOD need device warranty, taxation impact, and support desk usage by an scale transformation programs. to accept and sign an agreement. The agreement explains how employee. While implementing the organization intends to treat a BYOD model, all associated corporate and personal data and social and legal risks need to be communications on the employee- analyzed to avoid potential HR A survey across 17 owned device along with device and legal issues. Further, the implementation of BYOD model countries reported that and support compensation terms. needs to have a strong review and 55% of employees pay Further, organizations need measurement process to keep track of the benefits, challenges for at least one device to have tiers of compensation policy (no compensation, and future actionable points. they use for work limited compensation or full purposes. reimbursement) for expenses The funding responsibility to towards devices, data plans promote BYOD initiative can and support. A survey across 17 be transferred to the business countries reported that 55% of units instead of corporate IT employees pay for at least one budgets. Such arrangement would device they use for work purposesx distribute the cost burden as (see Ford Motors Case Study). well as accountability for success 14

15 References i IT Organization Embrace Bring Your Own Devices, Citrix, 2011 ii Mobility Temperature Check: Just How Hot Is BYOD?, Xigo and CCMI, July 2012 iii Asian companies resisting BYOD due to cost, ZDNet, November 2012 iv BYOD Planning and Costs: Everything You Need to Know, CIO.com, December 2012 v Survey of telecommunication professionals in North America, Xigo CCMI, July, 2012 vi What is the business value in employees bringing their own device into the workplace?, Cisco Service Dynamics, 2011 vii 5 Things You Need to Know about BYO Tech, CIO.com and iPass, December 2010 viii Global BYO Index, Citrix 2011 ix Corporate App Stores: Harness The Power Of BYOD, Forbes and 1E, March 2012 x Charting the Rising Tide of Bring-Your-Own-Technology, Forrester, June 2012 Note on Cost heads considered for TCO analysis of BYOD and standard model Capex: Cost of ownership for hardware (laptop, server) and software (OS) decreases as employees bring their own device. However centralized architecture such as server-based computing or hosted virtual desktop would require additional investment in server infrastructure. Opex Engineering: Security management costs would increase in the BYOD arrangement and desktop management (fleet deployment, replacements, outsourcing) expenses will reduce moderately or remain constant. Admin. Costs: Although IT disposal costs decreases under BYOD environment, IT training cost increases with new device management and application access processes. Opex Run: Virtualization and transformation into web based application decreases hardware and software maintenance costs under BYOD. But cost of ownership and maintenance for IT-specific software, Tier 1 IT support (password issue, application access issue) and data center storage costs would increase due to complex security deployment in the BYOD arrangement. Tier 2 and 3 IT support will come down as devices are owned by employees. Stipends under BYOD: Grants for purchase of end user device and its support based on the BYOD model and compensation policy adopted by the company. End-user Costs: End-user training decreases as employees are familiar with their devices and software as well as extra costs due to downtime of end-user IT equipments reduces. 15

16 Authors Benjamin Alleau Johann Desemery Vice-President Principal [email protected] [email protected] The authors would also like to acknowledge the contributions of Jerome Buvat and Vishal Clerk from the Digital Transformation Research Institute of Capgemini Consulting. For more information contact DACH Netherlands Spain Guido Kamann Eric Kruidhof Christophe Jean Marc Mario [email protected] [email protected] [email protected] France North America Sweden/ Finland Cyril Francois Martin A Hanlon Ulf Larson [email protected] [email protected] [email protected] Middle East Norway UK Jawad Shaikh Gunnar Deinboll Stephen Pumphrey [email protected] [email protected] [email protected] About Capgemini Capgemini Consulting is the global strategy and transformation With around 120,000 people in 40 countries, Capgemini is one consulting organization of the Capgemini Group, specializing in of the worlds foremost providers of consulting, technology advising and supporting enterprises in significant transformation, and outsourcing services. The Group reported 2011 global from innovative strategy to execution and with an unstinting revenues of EUR 9.7 billion. Together with its clients, Capgemini focus on results. With the new digital economy creating creates and delivers business and technology solutions that significant disruptions and opportunities, our global team of fit their needs and drive the results they want. A deeply over 3,600 talented individuals work with leading companies multicultural organization, Capgemini has developed its own and governments to master Digital Transformation, drawing on way of working, the Collaborative Business ExperienceTM, and our understanding of the digital economy and our leadership in draws on Rightshore, its worldwide delivery model. business transformation and organizational change. Learn more about us Find out more at: at www.capgemini.com. http://www.capgemini-consulting.com/ Rightshore is a trademark belonging to Capgemini Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. 2013 Capgemini. All rights reserved.

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