Mobile Device Management

TEMIA: BYOD Dos and Donts

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Copyright © 2013 TEMIA P a g e | 6 Don't Expect to Save Money The business case for BYOD programs usually starts with cost savings from shifting expenses to employees for devices, carrier service charges, applications, management of security and help desk functions. Savings from these areas are proving to be elusive. As highlighted earlier, after implementing a BYOD program, 69% of enterprises find that their costs rise or are about the same. There are several reasons why few enterprises attain cost savings. First, in most organizations, only a select group of employees is eligible for corporate liable or employer paid services and devices. These are typically executives, field service personnel, sales people and other road warriors that need mobile devices to do their jobs. With BYOD, people who previously were not eligible to have a corporate paid device are receiving reimbursements or stipends for their expenses. When more people are eligible for the program, it costs more to manage it. A second reason for rising costs with BYOD programs is an increase in the charge per employee. Many employees are selecting more expensive plans with unlimited or bigger allotments of voice and data services to avoid overage charges. These plans are more costly compared to corporate pooled plans and plans with smaller allotments, which are more appropriate for employees' business needs. Employers are also likely to incur higher expenses when employees travel internationally because they may not proactively obtain the best service plans or they don't have the knowledge to do it ahead of time. For enterprises that implement a BYOD strategy, TEMIA members report that only 5% of firms do not reimburse employees for their monthly service fee expense. The majority, 95% either provide a fixed stipend (63%) or allow employees to be reimbursed through an expense report (32%). A third development is the shift of charges back to employers on expense reports. Since the monthly charge is small, no one questions the charge when employees slip it into an expense report. Finally, mobile expenses in BYOD programs do not have the oversight of a TEM or WEM program. Corporate managers that sign off on expense reports lack the tools, expertise and time that are needed to effectively scrutinize mobile charges. 63% 32% 5% Employee receives fixed stipend Employee is reimbursed via expense report Employee is NOT reimbursed for monthly service fees 95%

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