Palo Alto, California. — September 13, 2004 — Sales force automation (SFA) technology has become an indispensable tool for businesses to increase the efficiency of their sales forces. Apart from improving salesperson productivity, SFA applications promise to deliver increased effectiveness of sales functions.

Increased adoption and usage of handheld devices by salespeople will unlock the true potential of SFA investments and will prove to be a key factor contributing to the sustained growth of the Mobile SFA market. “Mobile SFA not only delivers sound ROI, but also extends the life and ROI of initial SFA investments,” says Fred Landis, Program Leader of Frost’s CRM Growth Opportunities program.
 
New Strategic Analysis Service deliverable from Frost & Sullivan (www.commapps.frost.com), Mobile Sales Force Automation Markets, predicts CRM License Revenue from mobile SFA applications to grow from $169 million in 2004 to $293 million by 2008. Its fastest growing segment, Wireless SFA is projected to grow from $20 Million in 2004 to $115 Million in 2008.

"When compared to the flat growth predictions for the SFA market as a whole, the mobile market is certainly of keen interest to vendors that play along the mobile SFA value chain," says Landis.

While mobile SFA applications post impressive rates of adoption in industry verticals such as pharmaceuticals, financial services, hi-tech, and consumer packaged goods (CPG), vendors also need to deal with certain misgivings on the part of end users. These include apprehension about ROI, TCO, integration complexity and security issues.

Vendors can overcome these concerns by developing sound ROI models and documenting winning case studies as proof of claimed product benefits. They also need to cater to the demand for value-added customer interactions.

“Mobile SFA is not a one-size fits all affair – specific sales business processes determine the scope and structure of each solution,” says Frost and Sullivan Industry Analyst, Ashwin Iyer. CRM and SFA vendors can enable easier justification of ROI by providing solutions that align with the sales processes in the respective industries. Such tools grow in importance as sales organizations are increasingly becoming disparate.

The diverse nature of businesses and the need for systems integration is a major challenge to business establishments as they strive to consolidate multiple enterprise applications and information from disparate systems on mobile devices.

The evolution of Wireless technologies will play a vital role in the growth of the mobile SFA market. As various wireless carriers begin adopting high-end network standards such as 3G, demand for wireless applications are set to accelerate and ‘virtual’ SFA seats are moving mainstream.

“SFA vendors will do well to identify niche market areas, recognize current and future selling processes that customers deploy, and tailor their mobile offerings accordingly,” says Iyer. “They can also leverage on improving IT budgets, which are promoting investments in new technologies such as wireless SFA.”

The Mobile Sales Force Automation Markets, part of the CRM Growth Opportunities subscription services, analyzes the Mobile SFA market and provides strategies to develop and maintain market share. Product segments such as wireless, offline PDA, and laptop SFA are researched and valuable information is provided on various products offered by competitors. The research also examines the vertical industries showing maximum demand for mobile SFA, such as pharmaceuticals, financial services, hi-tech, and CPG. Executive summaries and interviews are available to the press.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff spans the globe with offices in every major country.

Mobile Sales Force Automation
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Keywords in this release: mobile sales force automation, SFA, wireless, offline PDA, laptop SFA, 3G, CPG, research, information, market, trends, technology, service, forecast