OpenMarket Survey Reveals Siloed and Unstructured Mobile Messaging Initiatives Are Limiting Enterprise ROI

-- 75% of Organizations Expect an ROI on Mobile Messaging within 6-12 Months, Yet a Majority Have Numerous Active Initiatives Powered by Multiple Vendors

SEATTLE, Feb. 25, 2015 /PRNewswire/ -- OpenMarket, a leader in enterprise mobile engagement, today released key findings from a commissioned study conducted by the International Data Corporation (IDC). The IDC White Paper, sponsored by OpenMarket, titled "Enterprises Adopting Mobile Messaging to Enhance Communications and Improve Business Operations," examines how global enterprises are leveraging mobile messaging technology for employee and customer communication use cases across key business functions such as customer service, IT and security, human resources, operations and logistics, and sales and marketing. The findings revealed the ad hoc approach that organizations are taking with mobile messaging, as 62% of businesses have more than one messaging platform deployed, and 78.5% have more than one of the same use case active across different departments. This disjointed strategy is especially problematic for today's enterprises, as 75% demand payback on these initiatives in less than a year.

The IDC survey indicates that in order to achieve desired ROI, enterprises must transition from investments "one problem at a time," to a flexible mobile messaging platform that supports multiple use cases across business functions. Specifically, IDC's large enterprise clients voiced a future desire to consolidate platforms, particularly for mobile messaging technology like SMS or MMS. According to IDC, it will be critical for enterprises to implement a streamlined platform with global reach that can be leveraged for use cases company-wide. To do this, 29.7% of enterprises are looking to partner with a mobile messaging specialist, and a majority desires a global provider.

"With mobile devices in the hands of employees and customers who show a preference for messaging- based communications, businesses should focus on proven mobile communication formats such as SMS and MMS," said Robert Parker, Group Vice President, IDC Insights. "Enterprises must avoid deploying single use case products, and should seek comprehensive solutions that improve customer and employee communications across the business. To do so, they should select providers that have domain expertise, service flexibility, optimal professional services, and a knowledgeable customer service staff to ensure they are getting the proper support for all their mobile messaging initiatives."

According to IDC, 70% of enterprises use mobile messaging for internal communications. However, the largest area for future growth in the adoption of SMS and MMS is customer experience-focused initiatives such as customer surveys, opening up SMS channels for customer support and providing valuable, time-sensitive alerts and reminders. The research also identified key attributes for how specific business functions are leveraging mobile messaging to increase productivity.

IDC conducted in-depth surveys with enterprise technology and mobile decision makers from 600 global organizations in different industries and geographies. Key findings across business functions include:

• Customer Service1: Consolidation is an underlying need for these departments according to the research, as 62%² of all customer service organizations leverage at least two mobile messaging vendors, and 65%³ have two or more messaging initiatives planned or underway in 2015. Additionally, nearly half must meet a specific ROI requirement to justify mobile messaging investments, including 39% who require a payback calculation.
• IT and Security4: This function holds large opportunity for growth, as the IDC study found 46.8%⁵ of IT and security organizations do not currently utilize or deploy mobile messaging. This gap is likely a result of technology leaders evaluating other mobile solutions while overlooking SMS. The report calls out that the benefits and simplicity of SMS should not be ignored and IT executives should be considering messaging technology for some of their more pressing operational and security concerns since it is the most frequently used and ubiquitous mobile communication tool available.
• Human Resources6: Respondents found that SMS messaging was more effective than push notifications. The global reach of SMS is also a key differentiator, as 56%⁷ believe it is important for reaching employees that travel for both work and leisure. Additionally, the IDC research points out that when compared with push notifications via mobile apps, which can incur high charges during international employee travel or may not be accessed if data services are turned off, SMS is a more cost-effective mobile messaging tool for this business function.
• Operations & Logistics8: Although mobile messaging deployments are immature for this business function, IDC highlights mobility as one of the top two investment areas for manufacturing supply chains. The report also suggests that the inherently distributed nature of operations and logistics can benefit significantly from effective mobility and mobile messaging.
• Sales and Marketing9: IDC points out SMS and MMS messaging are important marketing tools for companies seeking to distinguish themselves from competitors. The findings also determined that over 60%¹⁰ of these departments are using more than one vendor for their mobile messaging needs, and that those not yet running mobile messaging technology enterprise-wide have a tremendous opportunity to work toward a mobile messaging platform strategy that is based on the least number of vendors possible.

"This research validates the importance of traditional mobile messaging like SMS within the enterprise, while highlighting adoption and investment pitfalls that have limited ROI for far too long," said Jay Emmet, General Management of OpenMarket. "With billions of mobile subscribers across the globe, it is now the exception to see someone without a messaging-capable device, and enterprises must capitalize on this opportunity."

To download the summary report, visit http://www2.openmarket.com/idc-cross-functional-white-paper.

About OpenMarket
OpenMarket, a division of Amdocs, helps enterprises use mobile to transform their business. OpenMarket provides mobile engagement solutions for organizations to optimize their operations and enhance relationships with their customers and employees. Major enterprises choose OpenMarket for our domain expertise, service flexibility, demonstrated performance and reliability, global scale, and corporate maturity. We provide smart, interactive connectivity to more than 200 countries, enabling businesses to engage with nearly every mobile user around the world. Our clients trust us to power their mobile business. For more information, visit www.openmarket.com.

About Amdocs
For more than 30 years, Amdocs has ensured service providers' success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control and optimization product portfolio with value-driven professional services and managed services operations. With revenue of $3.6 billion in fiscal 2014, Amdocs and its more than 22,000 employees serve customers in over 80 countries.

Amdocs: Embrace Challenge, Experience Success.

For more information, visit Amdocs at www.amdocs.com.

Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2014 filed on December 8, 2014 and our quarterly 6-K form furnished on February 9, 2015.

¹ IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to Enhance Customer Service and Improve Customer Experience," December 2014.
² IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to
Enhance Customer Service and Improve Customer Experience," December 2014.
³ IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to Enhance Customer Service and Improve Customer Experience," December 2014.
⁴ IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to Enhance Communications and Improve IT and Security Administration," December 2014.
⁵ IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to Enhance Communications and Improve IT and Security Administration," December 2014.
⁶ IDC White Paper, sponsored by OpenMarket, "How HR Organizations Can Leverage Mobile Messaging to Improve Employee Engagement," December 2014.
⁷ IDC White Paper, sponsored by OpenMarket, "How HR Organizations Can Leverage Mobile Messaging to Improve Employee Engagement," December 2014.
⁸IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to Enhance Operations and Logistics and Improve Customer and Employee Engagement," December 2014.
⁹ IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to Enhance Sales and Marketing and Improve Customer Experience," December 2014.
¹⁰IDC White Paper, sponsored by OpenMarket, "Enterprises Adopting Mobile Messaging to Enhance Sales and Marketing and Improve Customer Experience," December 2014.

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