• TREND MICRO
  • ABOUT
Search:
  • Latest Posts
  • Categories
    • Android
    • AWS
    • Azure
    • Cloud
    • Compliance
    • Critical Infrastructure
    • Cybercrime
    • Encryption
    • Financial Services
    • Government
    • Hacks
    • Healthcare
    • Internet of Everything
    • Malware
    • Microsoft
    • Mobile Security
    • Network
    • Privacy
    • Ransomware
    • Security
    • Social Media
    • Small Business
    • Targeted Attacks
    • Trend Spotlight
    • Virtualization
    • Vulnerabilities
    • Web Security
    • Zero Day Initiative
    • Industry News
  • Our Experts
    • Ed Cabrera
    • Rik Ferguson
    • Elisa Lippincott
    • Mark Nunnikhoven
    • Jon Clay
  • Research
Home   »   Mobility   »   The Financial Impact of Consumerization – Is your BYOD program in the money?

The Financial Impact of Consumerization – Is your BYOD program in the money?

  • Posted on:December 17, 2012
  • Posted in:Mobility
  • Posted by:
    Trend Micro
0

One of the less understood aspects of Consumerization is its financial impact on the business. Studies* show that an increasing number of organizations allow their employees to use personal devices to connect to corporate networks and data for work related activities – the so called Bring Your Own Device phenomenon. However, a new research** commissioned by Trend Micro reveals that only a few companies measure the actual financial impact of this new IT model and that even fewer have a clear sense of whether Consumerization actually makes good business sense.

To help C-level executives articulate the business case for Consumerization, Trend Micro has partnered with Forrester Research to develop the first industry study on the financial impact of consumer technology in the enterprise. The research was conducted in January 2012 in the U.S. and Europe and includes 200 organizations that offer  formal BYOD programs to their employees. Respondents include CXOs and senior IT managers with an understanding of the impact of the program on their business unit or organization.

According to the study, the key factors driving the majority of the firms to define BYOD programs are increased worker productivity (70%) and providing access to corporate information for employees who are away from the office (63%). Contrary to common misconception, only a minority of companies look at device (40%), voice (20%) and data (23%) costs reduction when considering BYOD.

Most enterprises measure the impact of a wide variety of BYOD related items. However, approximately only half of them measure the specific impact achieved by BYOD separately from other types of business processes. Among the most scrutinized items are bottom line revenues (59%), software license costs (60%), corporate reimbursements for employee devices (53%), voice (58%), data (52%) and device replacement costs (51%).

In terms of overall business impact, respondents point out that BYOD mainly benefits worker productivity (66%) and flexible work environment (66%) while negatively affects mobile device management cost (41%), helpdesk support calls (36%) and helpdesk costs (33%).

The actual financial impact of BYOD varies widely across the sample. For the first time however, this study offers an aggregate estimate of the most relevant items quantified in terms of weighted averages***.

Here are some revealing pros and cons:

  • 12% increase in worker productivity (n=27)
  • 15% decrease in device replacement costs (n=17)
  • 8% decrease in reimbursement for employee data expenses (n=21)
  • 5% decrease in training and education costs (n=11)
  • 3% increase in bottom line revenues (n=22)
  • 8% increase in the number of help desk calls (n=20)
  • 7% increase in mobile device management costs (n=17)
  • 3% increase in corporate liable data costs (n=20)
  • 3% increase in server costs (n=15)
  • 2% increase in regulatory compliance expenses (n=14)

To answer the key question whether BYOD is in fact saving or costing money to a specific organization, the cost benefit analysis above needs to be applied to the specific business model of the company. Generally speaking, service oriented verticals with higher administrative personnel costs are poised to gain most from BYOD – due the sizable increase in worker productivity – while manufacturing and capital intensive verticals may see less of an impact on the bottom line.

Organizations may therefore look at BYOD as an opportunity to gain competitive advantage or as mere cost of doing business. Regardless from any financial consideration however, one thing is certain: Consumerization is real and here to stay. The lack of a strategic approach to Consumerization creates security risks, financial exposure and a management nightmare for IT. Rather than resist it, organizations should embrace Consumerization to unlock its business potential. This requires a strategic approach, flexible policies and appropriate security and management tools.

 

PREVIOUS:  New independent research uncovers the hidden costs of Consumerization

 

* “IT Executive and CEO Survey”, Decisive Analytics for Trend Micro, January 2012

** “The Value Of Consumerization”, Forrester Research for Trend Micro, March 2012

*** Conservative estimates, range capped at ± 50%, details available upon request

Related posts:

  1. The Financial Impact of Consumerization – It’s official: BYOD boosts productivity
  2. The Financial Impact of Consumerization – The Hidden Costs
  3. The Financial Impact of Consumerization You can’t manage what you don’t measure
  4. The Consumerization University – Day 3: BYOD challenges for corporate IT

Security Intelligence Blog

  • XLoader Android Spyware and Banking Trojan Distributed via DNS Spoofing
  • XTRAT and DUNIHI Backdoors Bundled with Adwind in Spam Mails
  • Ransomware XIAOBA Repurposed as File Infector and Cryptocurrency Miner

Featured Authors

Ed Cabrera (Chief Cybersecurity Officer)
Ed Cabrera (Chief Cybersecurity Officer)
  • The Role That IT Security Teams Need to Play in Connected Hospitals
Elisa Lippincott (TippingPoint Global Product Marketing)
Elisa Lippincott (TippingPoint Global Product Marketing)
  • TippingPoint Threat Intelligence and Zero-Day Coverage – Week of April 16, 2018
Jon Clay (Global Threat Communications)
Jon Clay (Global Threat Communications)
  • This Week in Security News: Warnings and WannaCry
Mark Nunnikhoven (Vice President, Cloud Research)
Mark Nunnikhoven (Vice President, Cloud Research)
  • Drupal Latest Platform To Be Hit With Critical Vulnerability
Rik Ferguson (VP, Security Research)
Rik Ferguson (VP, Security Research)
  • Today’s Predictions for Tomorrow’s Internet
William
William "Bill" Malik (CISA VP Infrastructure Strategies)
  • GDPR vs Blockchain: Technology vs the Law

Follow Us

Trend Micro in the News

  • The connected workforce: The importance of protecting home and corporate networks
  • NIST Cybersecurity Framework Series Part 5: Recover
  • NIST Cybersecurity Framework Series Part 4: Respond

Trend Micro Blogs

  • Internet Safety for Kids
  • Countermeasures
  • Home and Home Office
  • |
  • For Business
  • |
  • Security Intelligence
  • |
  • About Trend Micro
  • Asia Pacific Region (APAC): Australia / New Zealand, 中国, 日本, 대한민국, 台灣
  • Latin America Region (LAR): Brasil, México
  • North America Region (NABU): United States, Canada
  • Europe, Middle East, & Africa Region (EMEA): France, Deutschland / Österreich / Schweiz, Italia, Россия, España, United Kingdom / Ireland
  • Privacy Statement
  • Legal Policies
  • Copyright © 2017 Trend Micro Incorporated. All rights reserved.