19 Aug To App or not to App- CEO Steve Terry on the future of apps in the enterprise space
Digital Stakeholder Engagement
We hear so much about so many new apps, almost every day there’s a new player with a new idea and it’s getting funded in some form.
Sometimes these are the, wow! “that’s a good idea” moment. However…
is there a practical application for the functionality? How do you monetize it enough to sustain the ongoing support and development of the initial product? Most people don’t understand that the development of an app with any real level of complexity in the enterprise space runs at between $150 to 500K, depending on the functionality. This is prior to any real integration to existing enterprise systems.
Don’t take my word for it, here’s an example of some data published in 2015.
“Apps built by the largest app companies, the “big boys”, likely cost anywhere between $500,000 to$1,000,000. Apps built by agencies like savvy apps cost anywhere between $150,000 to $450,000. Apps built by smaller shops, possibly with only 2-3 people, likely cost anywhere between $50,000 to$100,000 (Feb 4, 2015, Savvy Apps).
For example at OMT we’ve seen a number of apps around the stock market, all very good apps and sometimes with unique functions providing shareholders or stock market enthusiasts with great news feeds. Some also have deep algorithms providing something further unique.
The problem is that the ASX app in its own right is an outstanding product. It provides the same if not better functionality in some circumstances. The OmniLoop product which is now available as a privately branded public company product from OMT has the ability to provide a live AGM. That’s unique but we are under no illusions that others will soon be able to provide the same functionality. The current limitations are access to the ASX listed entities registry provider. That will change and commoditize over time as well, demand from listed entities wanting to choose their own app developer will apply pressure to allow that developer access to what is fundamentally the enterprises own data within these registries.
This will take time and there will be a process that will unfold, but this is a market space ripe for disruption and in the end that’s generally what happens. It’s those best placed in understanding that process that will be best positioned. Further, demand from sophisticated investors not wanting a device with a hundred apps on it will drive a common platform for these listed entities to be part of, likely on an annual subscription basis allowing the usual news, information, alerts, but with the ability to meet the compliance requirements of the AGM in a significantly more cost effective way.
The Enterprise and the Stakeholders within!
Omni Market Tide has developed a strategy for servicing the needs of stakeholders in large complex organisations. Listed companies, unlisted companies, member organisations, complex employee environments and communities. These all have significant stakeholder engagement requirements often driven by constitutions and a need to meet some compliance, regulatory or legal requirement. Training, on-boarding and sharing of information needs to be real time and in a fully engaging environment.
The enterprise apps space is one of the most significant growth opportunities through the next few years. Although most large enterprises have their own capabilities, they also have bureaucracy which can interfere with the development of more complex apps. In particular where there are requirements to integrate with existing systems within the enterprise. (ERP systems for example).
In fact Gartner stated the following at their Application Architecture, Development and Infrastructure Summit in Sydney, 20-21 July 2015.
“By the end of 2017, market demand for mobile app development services will grow at least five times faster than internal IT organizations’ capacity to deliver them, according to Gartner, Inc. Gartner forecasts mobile phone sales will reach 2.1 billion units by 2019, which will fuel demand for apps in the enterprise that meet the high performance and usability of consumer apps”
This is supported by commentary from James Bourne from Strategy Analytics: “Enterprise mobile app market to hit $63bn by 2020”
This will create enormous opportunity for app developers who understand the enterprise space. Recognising the challenges enterprises face in maintaining legacy systems and how to best help augment those systems with mobile products that create real value and outcomes in markets where stakeholders are key. The ability to understand how to extend the existing investment in the enterprise with apps that integrate with finance, asset, HR, payroll, document management and other deeply imbedded systems will offer a whole new layer of value, ease of use, greater efficiencies and lower costs.
At OMT we have developed a new range of products specifically focused on the key stakeholder space due for release in coming weeks. We believe they will offer immense value to a range of stakeholders in key and well defined market spaces. In conjunction with these product releases we are currently working on a full service strategy aimed squarely at deeper and more complex engagements in the enterprise space. Service that will assist in the process, delivery, training and compliance areas.
Kevin Spain from Emergence capital said “But what may not be so obvious regarding the allure of mobile for the enterprise is the degree to which it will democratize the use of technology for business in underserved sectors”.
At Omni Market Tide we are clear on what that vision looks like and have begun to position for these emerging markets and opportunities.