Study finally shows takeoff in wireless data applications market

After years of forecasting enormous growth in the wireless data application market, the prediction finally came true in 2006—and this growth isn't slowing any time soon, says a report from Scottsdale, Ariz.-based research firm In-Stat.

The report—Wireless Data in the Enterprise: The Hockey Stick Arrives, available at www.in-stat.com—shows 86 percent of 505 organizations surveyed are using wireless data technology or are in the planning stages, with 75 percent of organizations using at least one application.

This is a far cry from only a year ago. "The number of total users increased 20 percent from 2005 to 2006," says Bill Hughes, a principal analyst at In-Stat. "The primary reason for this growth is that it's now easy enough for an end user to implement without any effort or training, and by themselves," says Hughes.

In addition, the wireless industry overcame end-user reluctance to adopt wireless technology by lowering costs, maintains Hughes.

In manufacturing, inventory management and warehouse operations applications top the list of the most-used wireless applications, with 38-percent and 29-percent use, respectively.

Wireless implementations in manufacturing, claims Hughes, result in "better inventory information and control, which reduces the need for excess inventory." In turn, capital is reduced, and customer service improves. Other benefits, as the report details, include increased field productivity and better real-time dispatching.

While horizontal applications—like a company's intranet or Web-based applications—are generally the most popular, Hughes predicts the vertical applications market will grow as more users discover the benefits of wireless in ERP.

Vertical applications are more difficult to implement since they integrate with an organization's operations, such as salesforce automation, ERP, and CRM. Yet, says Hughes, these are the most valuable.

"Once users get a little more comfortable with the idiosyncrasies of wireless, they will demand more and more. There will be many more implementations," says Hughes.

In a follow-up report specific to the manufacturing sector, the top two wireless priorities for manufacturers in the future are inventory management and production scheduling, with 32 percent of those surveyed planning to adopt wireless applications in the coming months.

"The trend is there for more widespread use of wireless data technology, but there is an understandable reluctance," says Hughes. "But at this point, there are enough options and participants that if you do run into problems, there are other solutions out there that will help a company get through them. At this rate of adoption, I can't imagine that any manufacturer—besides the very smallest—wouldn't benefit from this adoption."