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Competitive Advantage from Mobile Applications

in Technology

The mobile commerce revolution, heralded periodically since the late 1990s, has yet to occur in most retail markets. Consumers have shied away from increasingly complex handsets and from bandwidths that are still too slow. As a result, predictions of huge retail profits from m-commerce remain unfulfilled. Yet inside the supply chains of many cutting-edge retailers and their partners, a true mobile revolution has begun. Consumer-focused companies are already using wireless technology to get closer to their customers and improve their efficiency by cutting cycle times and costs.

Nearly three-quarters of the top 40 retailers in the United States have deployed or tested at least one wireless application, although only 10 percent are offering consumer applications. We expect wireless business applications to grow twice as fast as consumer applications: supply chain applications are quickly becoming a requirement for every company. Yet businesses can still differentiate themselves through improved consumer applications.

Organizations that have embraced relatively simple wireless tools for sales force automation or customer relationship management have seen productivity gains ranging from 5 to 30 percent. PepsiCo/Frito-Lay, FedEx, and UPS mobilized distribution processes for a cost savings of 10 to 20 percent thanks to productivity gains, increased asset visibility, and improved decision-making capabilities. The Home Depot is saving $22 million a year by providing floor employees with the ability to check and order inventory using wireless technology. Click here for detail

Source : www.bcg.com

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