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January 18th, 2016

90% Of Companies Will Increase Mobile App Investment In 2016

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Not investing in apps is a bad idea.

Just a few years ago, many large companies did not know what to do with mobile. In 2016, app development has become an imperative.

A survey of IT decision makers in 2013 by mobile app development platform FeedHenry (bought by open source software provider Red Hat in 2014) said that only 7% of companies had a fully implemented mobile app strategy in place, with 51% having absolutely none.

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Fast forward two years and those numbers have changed somewhat … 52% of companies now have a fully implemented mobile strategy and only 11% have their heads in the sand. According to Red Hat’s Mobile Maturity Survey 2015, the majority of companies have accepted that a mobile app strategy is not just something to talk about by the water-cooler but also the fastest way to grow.

 

app_implementation

Source: Red Hat Mobile Maturity Survey 2015

Around 90% of survey respondents said that investment in mobile apps would increase in 2016, with the average amount of investment rising by as much as 24%. Fewer than 10% of respondents said that they had no plans to either increase investment or invest at all, while 2% said they would be doubling investment in the next 12 months.

Companies Want To Invest In Apps

The 2015 survey, conducted by global market researcher Vanson Bourne on behalf of Red Hat, polled 200 IT decision makers from American and European Union-based companies with over 2,500 employees to gauge just how serious they were about mobile apps.

Cathal McGloin, Red Hat’s vice president of mobile platforms, said in a press release that the survey proved that attitudes towards mobile app development had changed. Companies were more committed to investment and were tracking demonstrated value through key performance indicators.

McGloin said:

There are some positive signals of greater mobile maturity, demonstrated by the number of respondents who are not only using KPIs to track the success of their mobile investments, but reporting positive return on investment as well. It is also revealing to see that this responsibility for KPIs is expected to shift towards lines of business, confirming to us the trend that we see in the market as the business comes together with IT, playing a bigger role in mobile decision-making.

The survey highlighted three good reasons why companies were demonstrating levels of mobile maturity—business transformation, the chance to automate certain business processes and the ability to make Web-based processes more mobile friendly.

app_investment_red_hat

Source: Red Hat Mobile Maturity Survey 2015

About 35% of IT decision makers said that mobile apps were the perfect way to evolve the business, while 37% cited automation as the prime focus. Upgrading Web-based processes to mobile was the reason for 24% of people, with the remaining 5% refusing to develop apps at all.

Regular reviews of a mobile app strategy are becoming key indicators of a growing mobile maturity, said Red Hat. Almost 90% of people interviewed for the survey said that their company has a fully or partially implemented mobile app strategy and 60% take the time to review it and tweak where necessary.

See Also: Outsourcing Mobile App Development May Be Worth The Money

Once again, the number of companies that have not introduced a mobile app strategy into their business practices was tiny—6% would be doing so in the next year, 3% in a few years and 2% said that they had no plans to enter the mobile app economy.

Mobile Apps Give Provide Value

Companies that rely on a mobile workforce are more likely to embrace the benefits of a dedicated mobile app strategy, the report noted. People using tablets and smartphones to deal with customer-facing requests have become a common sight throughout the private sector, one very good reason why mobile apps should be a priority for any company that works on-the-go.

app_investment_company_red_hat

Source: Red Hat Mobile Maturity Survey 2015

Over 50% of chemical, pharmaceutical and bio-tech firms are using mobile apps to change their business practices, while 58% of construction, mining and oil companies are doing the same. Logistics-centric companies are integrating mobile apps to automate existing processes, with 50% of people saying that mobile first is now the preferred option.

Fully 74% of all IT decision makers interviewed for the mobile maturity survey said that the ROI from mobile app integration proved the value of implementation, with 79% of all U.S. companies saying that mobile apps contributed to their success. Out of the 200 people polled for the survey, only 4% said that ROI was not worth the time or money, while 16% claimed that they had seen no change as a result of introducing a definitive mobile app strategy.