Study Finds 13.4 Percent Increase in Worker Productivity From Use of Mobile Data Services
OMNI Consulting Group Teams with Cisco on Quantitative Study
SAN JOSE, Calif., February 9, 2005 - Cisco Systems Inc. today announced the results of a new sponsored study conducted by independent economist firm OMNI Consulting Group LLP, which shows that use of mobile data services increases global workforce productivity by 13.4 percent total factor productivity (TFP) per week on average for a full-time worker.
The quantitative study entitled "Affirming the Mobility Quotient: How Wireless Connectivity and Services are Shaping Worker Productivity" shows the substantive, positive impact of mobile data services on worker productivity. TFP is the economic method for how well a business utilizes its capital, labor and mobile technology resources to produce its goods and services.
The study also observes that use of mobile data services by U.S. workers contributed 1.9 percent to the Gross Domestic Product (GDP) of approximately US$10.4 trillion in calendar year 2003. This is a 23.6 percent increase over the impact of mobile data services on GDP for the years between 2001 and 2002 and an overall improvement of 42.7 percent increase from five years ago in 1999. Conforming to normal economies of scale, OMNI expects similar increases worldwide in the acceleration of mobility's impact on economic performance.
"For quite some time, the general business population has contemplated the tangible value of mobile data services and how this offers a competitive advantage," said Frank J. Bernhard, technology economist and managing principal with OMNI Consulting Group LLP. "The scope of this research breaks new ground in quantifying the net impact of mobility and its associated productivity gains by examining business and worker performance under many different scenarios."
Businesses worldwide are increasingly realizing the competitive advantages that mobile data services can bring to their bottom-line. By applying a rich cross-section of data that spans numerous macroeconomic and microeconomic categories including global mobile operators, the U.S. Bureau of Labor Statistics, the U.S. Federal Reserve Bank, numerous university consortiums and individual company information provided to OMNI Consulting Group through its ongoing Network Economics Study (NES), to an entirely new collection of models and statistics, this is the first study that quantifies the positive correlation between the investment of these mobile data services and increased global workforce productivity.
The following benefits and value-proposition for mobile data services in key industry verticals were also highlighted in the study:
- Insurance field claims adjusters handled an additional 7.4 claims per worker per week and improved payout ratios by an annual yield of 6.4 percent per adjuster using mobile devices and wireless networks.
- In hospitality services, guests were more likely to select a hotel with broadband connectivity 7.2 times out of 10, when given a comparable option. As a result mobile business professionals will spend approximately 6.9 percent more per room per night for hotel rooms that enable connectivity to business critical applications while on the road.
- Public safety law enforcement agencies utilizing mobile data services in the apprehension of suspects resulted in 3.7 percent more arrests in 2003-2004.
- The use of RFID wireless technology in the manufacturing and logistics industries eliminates 5.9 percent of logistics errors for any given warehouse operation.
- Financial services agents executed approximately 11.4 percent more trade options on an annualized basis with wireless data services and achieved an average nominal improvement of 3.1 percent in overall portfolio performance.
- Healthcare and pharmaceutical field sales representatives conducted an additional 8.3 physician briefings per week due to mobile data and voice access.
Since 2003, businesses continue to show strategic investments in mobile services as noted by an adjusted annual increase of 11.8 percent adjusted gross spending for the first half of calendar year 2004. This signifies that mobility is sharply rising as businesses and workers continue to recognize the long-term benefit on workforce productivity, empowerment and access to real-time mobility data.
"This study shows that with mobile data services, workers are not only more productive, but they also develop new business processes that yield increased customer and job satisfaction as well as competitive advantage," said Steve Hoch, Director of Service Provider Mobility for Cisco. "This research shows businesses that the rewards of investing in mobile data services are real and compelling."
The OMNI study reflects Cisco's growing involvement with leading mobile network operators around the world, as they add advanced mobile data services. In addition to Cisco Mobile Exchange technology, these operators value Cisco's experience with making technology relevant to business. This study shows why mobility makes these business solutions even more powerful. For a downloadable copy of the study, entitled "Affirming the Mobility Quotient: How Wireless Connectivity and Services are Shaping Worker Productivity," visit www.cisco.com/go/mobile.
About OMNI Consulting Group LLP
Founded in 1989, OMNI Consulting Group LLP is the premiere source for empirical knowledge behind today's fast moving technology marketplace. With an impressive global network of economists and research practitioners, the firm serves many of the world's largest technology organizations and offers an unbiased approach of quantitative standards that address client-focused initiatives. OMNI Consulting Group fosters the understanding of market dynamics through an application of econometric solutions in a wide array of advisory and management research functions. Practice units within the firm concentrate on merger and acquisition support, technology audit and assurance, and intellectual asset valuation. Discover the insight of technology economics at www.omniconsultinggroup.com or call (530) 750-5199.
About Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, this year celebrates 20 years of commitment to technology innovation, industry leadership, and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.
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