To BYO or not to BYO?
The BYOD (Bring-Your-Own-Device) trend is well underway and seems unstoppable. According to IDC, employee-owned smartphones will represent more than half (56%) of the business smartphones shipped in 2013. Enterprises and government entities are scrambling to adapt to this reality, often not realising the full extent of employee purchased technology in the workforce and unable to grasp the ramifications quickly enough to be proactive.
The BYO trend exposes companies to a number of new risks and this article outlines a few of the essential considerations when considering a BYO Mobile strategy; implications on cost, security and the mobile policy.
Security
The predominant concern for most IT departments when it comes to BYOD is the issue of security. Most IT departments are witnessing a rapid shift from a fleet of centrally-controlled and company-owned (traditionally BlackBerry) devices to Apple and Android products. There is a perception that Apple and Android devices are mainly targeted at the consumer market and lack the depth of security features IT departments have come to rely on from BlackBerry. We can look back at that era with wistful nostalgia as the simplicity and ease of management was probably not appreciated at the time.
If employee owned devices are connected to the company’s email, wireless or storage infrastructure or any other business applications, they need to be secured. According to the Australian Mobile Telecommunications Association, 200,000 devices are lost every year in Australia alone. In addition there are employees connecting to unsecured Wi-Fi networks when they are out of the office, creating security risks for the company. Therefore, the first challenge is managing the rapid influx of Apple and Android devices and securing the information passing through them.
Meet us half way
The good news is that MDM (Mobile Device Management) technology is rapidly developing and a wide variety of solutions is now available. The starting point is a well-defined mobile use policy, which defines the user groups and their security settings, recommended apps and spend allowances. The mobile policy defines the rules of engagement between the employee and the company, and the MDM platform helps to enforce this policy and monitors the device like any other end-point on the company network. Most employees are happy to meet the company half-way and accept that their smartphone or tablet will be secured and managed by the company if that means they can use their device of choice.
User Support
Smart devices (smartphones and tablets are collectively considered as ‘smart devices’) are increasingly being purchased by employees on the weekend and brought to work on Monday -with an expectation that the IT service desk is willing and able to assist with configuration, connectivity and support. This was relatively easy during the BlackBerry era; however the variety of hardware models on different operating systems with different versions is creating an exponential increase in the number of combinations. The fragmentation of the Android platform is adding to this problem. The rate of change seems to accelerate each year and the industry continues to undergo massive changes each year (just think about the rapid demise of RIM, Nokia, Motorola and the incredible rise of Apple, Samsung and HTC).
Unless the IT service desk is constantly investing in the tools, skills and practical experience to support the full range of devices, there will be a growing mismatch between user expectations and service provided by the IT service desk.
BYO hardware on a corporate plan
On the surface BYOD implies that employees purchase the hardware, reducing the employer’s investment in hardware. In the past the hardware was provided ‘free’ by the mobile operator as part of a corporate plan, but in the BYO scenario the company can negotiate cheaper mobile rate plans without hardware subsidies factored into the price. However, in spite of these financial benefits employee-owned devices on corporate plans bring some new issues.
The first issue is called time-shifting. Over the past 10 years employers were happy to see staff doing email out of hours but now employers are less happy to see staff on Facebook during work hours. It works both ways but not everyone is happy about it so the policy needs to reflect a fair balance in the employer – employee equation.
Secondly, the new law on copyright infringement presents a new risk as the party at risk is the owner of the connection. Therefore an employee who illegally downloads the latest U2 album or a pirated movie using a company paid mobile plan, is potentially putting the company at risk of a copyright infringement lawsuit.
BYO hardware with a personal plan
For some companies, the mobile plan is owned by the employee rather than the company and a portion of the costs are claimed as expenses. BYO appears to transfer some of the risks to the employee but comes with some hidden costs to the company.
Firstly, each employee has purchased an individual plan as a consumer and is paying consumer rates rather than corporate rates. This can mean the price per minute, message and megabyte is significantly higher (often double) the price paid for a corporate plan.
Secondly, there is no free calling plan between employees and all calls are charged. To make matters worse, employees will eventually be spread across different networks and mobile calls are charged at the highest rates between networks.
Thirdly, the lack of a corporate plan means that there is no integration between mobile and landline services. Calling rates distributed landline and mobile networks are even higher than between mobile networks.
Taken together, these 3 hidden costs can mean the company is worse off than having a corporate plan which has competitive rates, free calling between employees and integration with landline services.
In addition to the hidden costs, there is an IP risk associated with employee plans. When an employee leaves and keeps their mobile number, there is a risk that clients will follow the individual. This is especially important for companies where business is based on relationships.
The HR Angle
For many progressive companies, technology is becoming part of the company’s image and employment brand and this is forcing a decision around BYO. Are we going to resist the BYO trend and insist on company-provided devices or will we embrace the shift and allow staff to use their preferred technology?
BYO technology provides the ability to offer flexible working conditions especially to parents working part-time, staff in remote locations and part-time contractors. In fact, flexibility is often part of the employment brand and is seen as a way to attract and retain skilled staff.
It is of vital importance that HR participates in the mobile policy process and determines whether mobile is simple a tool for communication or rather a platform for empowerment. This goes to the heart of the company’s strategy. In the same way that companies made decisions about their internet strategy 10 years ago, they now need to make decisions about their mobile strategy and how staff will use mobile as a platform for productivity and empowerment.
Innovating from the bottom up
In addition to the obvious benefits of reduced CAPEX and staff motivation there is another benefit which may be controversial and that is related to the speed of innovation in the business. Many CIO’s are frustrated by the slow pace of innovation in their business and ironically the bottle neck is often IT.
BYO technology turns the traditional model upside down. Rather than IT selecting and deploying solutions top-down, BYO permits employees to bring the latest products and services into the organisation from the bottom up. Staff will quickly find the applications and services that enhance productivity, often for free or perhaps the premium version for the princely sum of $2.99. This is where the consumerisation of IT really comes to the fore.
Creating and enforcing a balanced policy
Clearly there are a number of significant issues to overcome when making the shift to BYO but for most companies it is probably worth the effort. An effective way to mitigate this risk is through a balanced policy which represents the interests of IT, Finance, HR and the employee and will stand the test of time.
With the arrival of device management tools, stakeholders now have visibility as to whether the policy is adhered to and in some cases can actively enforce the policy.
So to BYO or not to BYO? According to a recent CIO Magazine (US) study, 49% of CIO’s already allow their employees to do work on personal devices from home or the office. We imagine this figure will only go up as device management solutions become more sophisticated.
