Survey says executives don't understand wireless

NEW YORK -- Senior business executives don't understand wireless technology, which is preventing adoption in organizations globally, according to a new survey by Deloitte Consulting. According to the survey, which polled 650 business executives across Europe, North America, and Australasia, 51% of respondents do not understand the benefits and uses of wireless technology, and that is the primary reason for the slow adoption of wireless. 

Some 20% of those surveyed blame the maturity of wireless technology, saying that companies are not confident it is developed sufficiently for business yet.

"Business users are catching on to the benefits of wireless technology faster than their leaders in the boardroom," said Martin Dunsby, leader of Deloitte Consulting's global wireless initiative. 

No need to wait

"Wireless technologies available now can bring major benefits to organizations. There is no need to wait for 3G. The few forward thinking organizations that are already using available wireless technologies are achieving a quick return on investment (ROI)," Dunsby said. "At Sears, the US department store chain, a radio frequency ("RF") system beams orders for bulky items to wireless devices on the belts of storeroom staff. This means that products are waiting for the customer at the goods collection point in store. Sears has removed the need for the job of shuttling between till and storeroom in more than 700 stores."

The online survey revealed that while senior executives have limited understanding of what wireless can do for their business, employees have a good knowledge and welcome the benefits it could bring. Three out of four said they thought wireless technology could help their organization increase revenues and productivity, and looking forward, 79% felt their role could be improved by wireless technology. 

To date however, wireless technology has made few inroads into organizations. Thirty% said that wireless technology only had a minor impact within their organization. The majority of business executives surveyed only use wireless technology for voice calls (93%). When asked why, 24% said their employer does not provide or support wireless technology beyond a wireless phone for voice calls. This suggests that management has not yet woken up to the developments in wireless technology or the benefits that it can bring to their organizations.

Mobile phones for work

Surprisingly, some business users are even finding wireless so beneficial at work they are prepared to pay the bills out of their own pockets. Despite the fact that 93% of respondents said they use wireless phones for work calls, 28% of employees foot the bills themselves and a further 21% only receive a partial contribution from their employer. 

Looking to the future, 51% of respondents said they expect to be using Wireless PDAs and a further 49 percent, wireless local area networks ("LANs") within four years. Furthermore, 44% expect to be using wireless data for email and information exchange. 

Deloitte Consulting identified the following top 10 benefits of wireless for business:

1. Gaining competitive advantage: wireless technology can speed the flow of information that improves productivity.

2. Fast payback: forecast break even periods of less than two years.

3. Cost savings: cost reduction through time reduction.

4. Improved cash flow: faster information speeds cash flow.

5. Customer centricity: improving customer interaction.

6. Empowering your employees: knowledge sharing and improved front line access to data.

7. Meaner and Leaner: impact on the supply chain.

8. Get Agile: more timely and more accurate reporting for management.

9. Available now: the technology is ready now, no need to wait for 3G, the next generation high-speed wireless transmission standard.

10. Everyone can be a winner: most organizations can benefit from wireless. 

"Wireless does have major benefits for most organizations," Dunsby said. "To identify how they can benefit, companies need to develop a top-down corporate policy on wireless. Indeed, with employees choosing their own wireless technology for work purposes, they could find that they are not only missing out on the benefits to be gained but could also be courting unrecognized risk." 

So, as asked by the Deloitte survey, who should be responsible for educating business on the benefits of wireless? Respondents cited wireless network operators as the key proponents followed closely by software suppliers and businesses. 

Guide for managers

To help senior executives understand key wireless technologies, Deloitte Consulting has produced a guide for business managers on the top five wireless technologies most likely to generate business benefit in 2002. 

Deloitte Consulting focuses on the wireless strategies, business processes, and organizational designs that take advantage of the latest technologies and deliver value to clients. Dunsby said that in developing this integrated approach to mobile solutions, Deloitte Consulting avoided the hype of much touted consumer applications like digital coupons beamed to your cell phone as you pass a coffee house. Instead, the firm developed a broader vision — a vision of the entire enterprise and of new ways to leverage wireless technology that cut right to the bottom line. 

"From wireless devices that track parts all along the supply chain to mobile customer relationship management, we are delivering world-class enterprise solutions with world-class clients and alliances," Dunsby said. "These days, no one can afford to pursue a business solution that doesn’t recoup its investment in a short period of time. Because our approach addresses the business imperative — and payback — rather than just the hottest new technology, clients recognize its value and are increasingly looking to team with us on integrated mobile enterprise solutions."