Businesses must contend with the growing app universe

Kelvin Rowlette , President and General Manager

The app Internet – the growing universe of mobile applications – is dramatically changing the face of the Web and is forcing today’s leading technology vendors to adapt to a new business environment, according to Forrester Research. Apps are also affecting every job function in business technology organizations.

Forrester estimates that the app Internet market was $2.2 billion in 2010 and projects a compound annual growth rate of 85 percent through 2015.

The app Internet is having a profound impact on the business technology organization, per Forrester Research. CIOs must prove they can embrace current trends through the adoption of the customer-centric applications, and security and risk professionals will take on greater importance as companies are challenged with how to protect their enterprises in this new app-dominated universe.

In addition, a growing number of retailers are launching mobile initiatives in an effort to better serve multi-touchpoint, always-connected consumers — some that are paying off right away and some that are more long-tail focused.
According to a Forrester survey, 91 percent of retailers currently have a mobile strategy in place or in development, compared to 74 percent a year ago.

A little more than a year after the launch of the iPad, retailers report that 21 percent of all mobile traffic is coming from tablets, an incredible growth trajectory.

Still, the overall amount of mobile traffic and revenue has not increased dramatically, suggesting that investment levels in site optimization may still be inadequate, per Forrester.

For example, the survey found that 48 percent of retailers have a mobile-optimized website; 35 percent report having an iPhone app; and 15 percent have launched an Android app, the same percentage that have an iPad app.

Challenges that retailers struggle with include differentiating the consumer experience on a tablet versus a smartphone and figuring out features and functionality in fragmented app and mobile Web ecosystems.

After spending the last few years learning how to capitalize on new mobile technology, retailers are focusing on leveraging the tremendous popularity of tablet devices such as the iPad. As sales channels continue to blur in retail, companies are creating mobile apps that make their brands seem current, entertaining or fun, while at the same time creating a unique opportunity to connect with more shoppers than ever before, according to Shop.org.

Forrester data indicates that significant investments in mobile tactics will be in place this year.
The research firm advises retailers to increasingly integrate mobile features and functionality into the bricks-and-mortar store experience.

Basic store information such as hours and location, transparent pricing and easy checkout capabilities are likely to be the most pressing opportunities for most mobile sites and apps in the near future. Consumers are also increasingly exploring product information using their smartphones and tablets.

The bottom line is that retailers and merchants of all kinds must have best-in-class mobile Web sites and applications, or they will get left in the dust by competitors.