TOP 10 TRENDS

FOR WINNERS
IN MOBILE 2016

Welcome to the Mobile Trends of 2016

Every year we talk to our customers, partners, employees and analysts about the big trends for the coming year. We focus on things that will
have a real impact on organizations in terms of revenue generation, customer satisfaction and mobile investments. Therefore, most of the trends
are evolutionary rather than revolutionary.

Last year, the biggest discussions were about the explosion of enterprise apps, wearables and smartwatches, privacy, backend as a service
(BaaS) tools, beacons, user testing, small data vs. big data, securing mobile applications and mHealth. Not all trends were applicable to everyone,
but they generated a great debate about how mobility is impacting society and businesses.

This year, we've put Customer First as a theme across most of the trends. With the speed of innovation in mobile including new smartphones,
operating system upgrades, wearables, software platforms and big data, we often forget about the user. In 2016, all organizations should put the
customer first in mobility whether it's consumers, employees or partners.

As usual, we've also attempted to provide practical recommendations and actions on what you can do to be a mobile leader in 2016.

Enjoy the trends and best of luck!

Top 10 Mobile Trends 2016

1

PUTTING CUSTOMER EXPERIENCE FIRST

RE-INVENTING (NOT JUST MOBILIZING) YOUR BUSINESS

SECURITY AND PRIVACY HITTING THE BOARDROOM AGENDA

REAL SOLUTIONS BY THE INTERNET OF THINGS

OMNI-CHANNEL AND MOBILE PAYMENTS BREAKING THROUGH

ACCELERATING INNOVATION THROUGH PARTNERSHIPS

DEVELOPMENT TOOLS AND PLATFORMS EVOLVING RAPIDLY

MOBILE AD FORMATS CHANGING

PUTTING DATA INTO ACTION

10

WEARABLES FINDING THEIR PURPOSE

CIOs who get CX are the

heroes while others watch.
Forrester

1. Putting Customer Experience First

When IT advisors such as Forrester and Gartner highlight customer experience (CX) as

The average organization has less than 1 in 100 employees with CX skills versus e.g.

the top priority, you know it will be on the agenda of every boardroom. But isnt customer

eBay that has 1 in 4. Customer experience must be embedded in every part of the

experience already top of mind for every product, marketing and IT organization you

organization including sales, customer service, development, product management,

might ask? Based on our experience the answer is absolutely not. Companies delivering

marketing, administration and even finance to deliver great results. However, in most

better customer experience and satisfaction have outperformed the S&P 500 by more

organizations its limited to marketing and customer service. In 2016, customers will

than 100% over the past 5 years according to the ACSI index.

demand one consistent cross-channel experience.

Putting Customer Experience First

WHAT DOES IT MEAN FOR YOU?

For most organizations the first step is to map out the customer journey. This starts with
getting a cross-functional team together to describe the customer touch points,
engagements and tools from first hearing about your company through purchasing
decision to getting the service/product, post-delivery feedback and returning
customers. With customers we mean both external and internal users.
Next, identify the projects you already have ongoing, top areas to improve, benchmark
against other leaders in your space and put together an action plan/roadmap based on
priorities and feasibility.
Finally, continuously listen to your customers and measure progress through KPIs such

FURTHER READING:
> Harnessing Mobility In Retail
WHITE PAPER

> Mobile Moments to Drive Retail Sales

WHITE PAPER

> How Mobile Can Transform Your In-Store

Shopping Experience
RESEARCH

as net promoter score and customer satisfaction.

EXAMPLES:
> CEMEX
> Fitness First

By 2020, 60% of existing processes

will be optimized for mobile.
Gartner

2. Re-Inventing (Not Just Mobilizing) Your Business

Enterprise mobility goes from we need mobile device management (MDM), responsive

Very few organizations routinely think about how they can tweak business models to

websites and mobile apps to we need a holistic mobility plan that will change the way

find better, more efficient, greater value-creating business models from their existing

we do business. Organizations are looking to transform their workforce by liberating

products and services.

them from the desktop, re-engineering processes, reinventing products and creating
new business models. Examples of killer mobile solutions include field sales, field
services but also sensors collecting data that enable smarter decisions and
recommendations.

Re-Inventing (Not Just Mobilizing) Your Business

WHAT DOES IT MEAN FOR YOU?

Think about what you would do if you redesigned your business, product or service from
scratch today for mobile. Dont just mobilize what you have. Look at the bigger business
opportunity of transforming your business through mobility. To reinvent products,
processes and business models look at the key drivers for each one including e.g.

FURTHER READING:
> Dont Mobilize Your Business - Reinvent It
BLOG POST

changes in customer experience/behavior or improvements in quality and reliability,

pricing and offering, distribution and channels, productivity and efficiency. Use Customer
Experience First (see trend #1) as the starting point to identify problems and
opportunities in the interaction with your customers.

EXAMPLES:
> MCH (Art Basel)
> Virgin

The only truly secure system is one that is

powered off, cast in a block of concrete and
sealed in a lead-lined room with armed guards.
Gene Spafford, Professor of Cybersecurity

3. Security and Privacy Hitting the Boardroom Agenda

With a constant flow of news about big corporations being hacked with serious damage

What you can do is implement tools and processes to minimize risk. Therefore, there is

to shareholder value, security is high on the agenda for every CEO. More than a third of

a growing demand for improved physical security, mobile device management, app

UK cyber security pros say their companies were attacked in 2015. And the reported

management, enhanced authentication, security testing and protection as well as

intrusions are just the tip of the iceberg as at least 9 out of 10 cases are never reported.

ongoing monitoring combining analytics with other monitoring tools. At the same time,

The biggest threat to security, however, is usually your employees whether its

organizations are challenged by complex privacy regulation and balancing internal

clumsiness (losing their mobile phone or laptop) or on purpose (revenge for losing their

demand for customer data versus customer privacy.

job or not getting a raise).

Security and Privacy Hitting the Boardroom Agenda

WHAT DOES IT MEAN FOR YOU?

Assume that you will be hacked and plan accordingly. Get your smartest people
together to analyze the risk and come up with a plan. Hire external auditors to test your
systems but also leverage employees and partners for security hackathons to find holes.
Make sure your security systems are not only secure but also user friendly as employees
will find workarounds that might create new risk and holes. Evaluate security monitoring
systems such as Splunk. Combine Dev Ops and Security team expertise to achieve

FURTHER READING:
> Privacy in Pole Position
BLOG POST

> Can Someone Hack Your Banking App?

BLOG POST

security aware application design.

> 5 Ways to Invest in Privacy in 2015

Define your customer data and privacy approach. What data do you ask for? Do you use

BLOG POST

social login for your users/customers? How do you protect your customers data?
Most people use the same passwords everywhere, exposing both the customer and
company. This is not a new problem but companies need to help their customers stay
safe, not just add tougher password requirements. For example this can mean double
authentication from new devices and locations or fingerprint biometrics for low-security
access such as bank balance or loyalty card.

EXAMPLES:
> Lloyds Bank
> WING

4. Real Solutions by the Internet of Things

Did you attend an IoT conference in 2015? Most of them are honestly a waste of time.

In parallel there is a real revolution that is happening in manufacturing, transportation

We found more than 200 IoT software providers in 2015 and 4 out of 5 were solutions

and the consumer space with IoT. Sensors collecting data are improving logistics,

looking for a problem to solve. Too many software and hardware products are

production, product development, efficiency and user experience. Companies such as

opportunistic attempts to do something in the IoT space rather than real products.

Telit, SAP and Salesforce offer working solutions

for this. There is also a revolution happening in the consumer space with
connected devices led by Sonos and Nest and followed by thousands of
crowdfunded start-ups.

Real Solutions by the Internet of Things

WHAT DOES IT MEAN FOR YOU?

The opportunity across industries is enormous, so monitor what others are doing and get
inspired by the best ideas. You dont need to be an innovator to be successful.
Start with the problems you need to solve rather than an IT solution for IoT. Prioritize the
biggest opportunities and use rapid prototyping to test them in smaller pilots. Test, test,
test and then find the best scalable solution once youve figured out what you need.

FURTHER READING:
> How the Internet of Things Will Change Everything
WHITE PAPER

> How & Why the IoT is Transforming Manufacturing

WHITE PAPER

Dont let existing products, services and business models be a limitation when scoping
out your IoT and wearable opportunities. The most successful projects involve product
and service reinvention. If security is a blocker for 2-way communication, then start with
data collection which is more manageable.
For more inspiration, read our white paper on industrial IoT (see links).

EXAMPLES:
Consumer space
> Sonos, Nest, Philips
Enterprise space
> CEMEX, London Heathrow, Tennant

By 2017, 50% of all online

transactions will be from
mobile devices so get ready.
DMI Research, 2015

5. Omni-channel and Mobile Payments Breaking Through

Last year we talked about how other retailers and brands can replicate the success of

payment services but also redesigning bottom up for mobile. The same thing applies

Starbucks by focusing on simplicity and loyalty. We also observed how Amazon got 50%

to the mobile commerce with mobile driving in-store sales as well as mobile

of their revenue from mobile at the end of the year. So why do other companies find this

commerce sales. According to a recent survey by DMI, about 86% of customers are

so hard? Most commerce players simply took the existing desktop experience and

willing to pay more for a better customer experience. Nearly 75% of millennials

adapted it for mobile from the start. With the majority of online commerce now coming

surveyed indicated theyd purchase more from retail stores that offer great mobile in-

from mobile devices we see a growing need to redesign the omni-channel user

store shopping tools and over 80% of high income shoppers ($100K income) believe

experience including payments. It's not just about enabling Apple Pay, or other

they would improve the overall in-store shopping experience.

Omni-channel and Mobile Payments Breaking Through

WHAT DOES IT MEAN FOR YOU?

Omni-channel needs to become business as usual for every retailer and customer
centricity needs to be at the center of all online businesses. Customers expect you to
speak to them with one voice across all channels with a single view of the customer.
Start by understanding what your customers want across the channels and interaction
points.

FURTHER READING:
> Quick Guide to Mobile Payments
BLOG POST

Dont wait for the next big software upgrade to provide a better customer experience.

> How Mobile Can Transform Your In-Store

Shopping Experience

Take smaller steps to achieve what customers want on the front-end while you wait for

RESEARCH

back-end solutions to be omni-channel enabled. Ask your business intelligence

analysts to report on multi-channel analytics such as mobile impact on in store,
conversion rates across channels and customer satisfaction scores of each channel.
Be careful about investing in digital store displays that will quickly become obsolete.
Customers prefer to speak to the store staff (with support from technology) or use their
own device.
Review your payment experience for mobile users, remove steps whenever possible and
replace your existing payment provider for mobile if they dont live up to customer
experience expectations.

EXAMPLES:
> Shoe Carnival
> Target

The API is actually the

driving force behind most
of the digital disruption.
Mark ONeill, Axway

6. Accelerating Innovation through Partnerships

The enterprise turns to APIs and partnerships to innovate. Big companies such as Bank of
America, Unilever, Coca Cola and Nike struggle to innovate by themselves. Therefore,
we see a growing trend in opening up internal APIs and partnering with companies of all
sizes to bring more innovation to your customers. Sometimes also referred to as frontend integration, it allows new services to be created in less than a months time by
innovative partners without major investments in legacy systems once the APIs are up
and running.

Accelerating Innovation through Partnerships

WHAT DOES IT MEAN FOR YOU?

Think about what others could do with the data, online services and capabilities from
your organization. Could they create new products and services that you can benefit
from? Can they innovate faster? Look at what you really do. Examine the business model
and infrastructure at your core.

FURTHER READING:
> Top 3 Tips to Accelerate Mobile Innovation
BLOG POST

Define an initial MVP plan and try hackathons and competitions for your employees and

> Innovation through Hackathons A 3-Step Guide

partners to drive innovation. Start small. If the opportunity is big enough then set up a

PRESENTATION

team whose only objective is partnerships and monetization of your APIs.

EXAMPLES:
> Addison Lee
> Pernod Ricard

Web Apps vs. Native?

Its complicated!
Forbes

7. Development Tools and Platforms Evolving Rapidly

This year has been extremely exciting in terms of trends in software development

For next year we believe that a mix of Java, Microsoft C#/.Net and Java script will

languages and tools. We saw (1) Objective C drop out of the top 10 as Swift is rapidly

continue to dominate development generally and Swift taking over iOS entirely. Web

growing; (2) Angular.js and Node.js continuing to grow in popularity; (3) Browser

apps and app wrapping using PhoneGap/Cordova will make up the bulk of enterprise

performance improving, which means that web apps do better; (4) BaaS platforms

application development with Xamarin as the fastest growing cross-platform tool

continuing to grow with Google and Amazon in the lead and with Microsoft catching up;

leaving the others behind. Native app development continues to be the first choice for

(5) NoSQL seemingly taking over from MySQL; (6) Microsoft Surface gaining traction in

consumer apps.

the office which means that C#/.Net continues to play an important role.

Development Tools and Platforms Evolving Rapidly

WHAT DOES IT MEAN FOR YOU?

Dont jump on the latest trends, but also dont stay behind. Many developers like sticking
to the languages and tools they are familiar with as it gives them an edge. Make sure you
experiment and train people on the new tools that have now gone mainstream. New
programming languages and tools can provide short-term advantages in speed and cost,
but make sure to consider the long-term effects. Make sure you can find enough people
with skills on whatever platform you choose.

FURTHER READING:
> Scorecard for Choosing Mobile Technology
BLOG POST

> The Key to Successful Hybrid Apps

BLOG POST

On the 5+ year old debate of web vs. native vs. hybrid, be scientific about your choice.
Check out our technology scorecard or use Gartners or Forresters guidelines. The
winning cross-platform development tools at the moment are PhoneGap and Xamarin,
but this will also change over time so make sure you stay informed. For consumer apps,

> The Only Mobile App Cross-Platform Solution That Works

BLOG POST

don't duplicate existing web functionality through native apps if it's already well
optimized. Even Apple now supports the use of webview where the user experience is
good.
Developers embedding a myriad of SDKs, APIs and tags in their services including
e. g. analytics, A/B Testing, push notifications, bug reporting, payments, content feeds,
advertising, attribution tracking, performance monitoring, social networks, translation and
customer service. Remember: reliability is degraded with the number of processes,
network calls and memory usage. Consolidate if you can!

EXAMPLES:
> CEMEX (hybrid)
> Warburtons (native)

Mobile ads suck.

Steve Jobs, 2010

8. Mobile Ad Formats Changing

Mobile ads still mostly suck despite bigger screens, better performance and improved
targeting. When was the last time you intentionally clicked on a banner ad on your
mobile? Probably not recently. With ad blockers, more ad dollars shifting to mobile and
differences in user behavior on mobile, it's time for change.
Companies that embrace the change such as Facebook, Google, Vice and Quartz are
growing despite ad blockers while others are seemingly struggling.

Mobile video advertising has now reached mass market penetration and delivers the
most engaging format on Facebook, Instagram and, of course, YouTube.

Mobile Ad Formats Changing

WHAT DOES IT MEAN FOR YOU?

If youre an advertiser, then make sure your media buyers understand and embrace the
changes that are happening. Offer great content or utility rather than selling people
something, make it location and context aware, encourage engagement/interaction, go
for quality rather than quantity and make sure the size is right for each device. Follow

FURTHER READING:
> Geo-Targeted Mobile Ads: Creepy or Convenient?
BLOG POST

new best practice and monitor your ad spend and ROI closely with a good attribution
platform.
Publishers need to work with their end users and the media buyers to find the right mix
of use of ad space, frequency, targeting and formats.
Ensure that mobile video is part of your marketing mix and experiment with more
engaging formats such as VR 360 recently launched by YouTube in partnership with
Samsung.

EXAMPLES:
> Quartz

We dont have better algorithms.

We just have more data.
Peter Norvig, Google

9. Putting Data Into Action

For several years its been all about big data but the tide is changing. The focus for 2016

monitoring, smart buildings and cities, smart cars, manufacturing, finance, healthcare

will be what we do with all the data. How do we make smarter recommendations? How

and home electronics where they learn through behavior and make better

do we provide better customer service, better products, increased productivity and give

recommendations and decisions than humans can.

customers what they need?

Algorithms and smart machines have redefined how humans will interface with
Algorithms are of course nothing new in software development and analytics. The

technology in the coming years, according to Gartner and others and will be a hot

difference, however, is that they will play a much bigger role in real-time service

topic at IT conferences throughout 2016.

Putting Data Into Action

WHAT DOES IT MEAN FOR YOU?

Analytics and big data tools are great to segment, analyze trends, measure effect of
multi-channel sales and campaigns and provide intelligence back to the business.
However, the next step is to experiment with and later commercialize implementations
where the data is leveraged through machine-based optimization leveraging artificial

FURTHER READING:
> Leveraging Big Data, Big Time
BLOG POST

intelligence and beautiful algorithms.

The incentives for getting this right are big - early movers should be able to speed up the
quality and pace of decision-making in a wide range of tactical and strategic areas and
gain new insights from analysis of unstructured data, such as e-mails between sales
representatives or social media discussions.
As with all new trends it will begin with understanding what data you have access to,
defining the desired outcome and testing, testing, testing. But before you even consider
smart algorithms and big data, make sure you get the basics right to understand your
customers and their behavior.

EXAMPLES:
> Tennant
> Victorias Secret

10. Wearables Finding Their Purpose

2015 was supposed to be the year of the smartwatch after a breakthrough year for

Addison Lee and Uber got great PR from being first out on Apple Watch, but how

wearables in 2014. Apple Watch delivered on the high expectations, but smartwatches

many people actually used them? There are success stories. Wearables have become

have by no means reached mass market yet. Most wearables and smartwatches end up

useful devices for health, safety and security in the workplace and at home. They are

in the drawer after 3-6 months showing that the demand is not there year. Market

being used by professional athletes and enthusiasts. 2016 will be all about delivering

penetration of actively used devices will be less than 10% in North America and Europe in

great products to serve these niche target segments and for service providers to

2016. In 2015 wearables apps were all about experimentation and PR.

deliver great services for these devices. Athena, a crowdfunding project on safety
jewelry for women, is a great example of this.

Wearables Finding Their Purpose

WHAT DOES IT MEAN FOR YOU?

Make sure that you immerse your team with the latest devices including Apple Watch,
Fitbit Surge and Moto360. Think about what problems these devices can solve for your
company and customers. If you cant, then dont worry. You wont be left behind unless
you work with athletics or healthcare.
If you work in spaces where there is real disruption happening in wearables then
experiment a lot. Make sure that your product serves a real need and doesnt end up

FURTHER READING:
> My First Date with the Apple Watch
BLOG POST

> Apple Watch - Flip or Flop?

BLOG POST

with the sports wristband in the drawer. For companies in the health, beauty or pharma
space look at what wearables including patches can do for you. There are a lot of
exciting things happening in this space.

EXAMPLES:
> Addison Lee
> Lloyds Bank

DMI helps businesses and government organizations

reinvent themselves through mobility.
Contact us for more information.

THE FIRST INTEGRATED

END-TO-END MOBILITY
COMPANY IN THE WORLD.
www.dminc.com