Wednesday, May 23, 2012

Thoughts on Mobile vs Native App Debate


In my last (&first) post, I commented on the exciting developments in Mobile Technology that allow health care companies to develop a mobile strategy that can help drive down administrative costs,  and add value to our customers. 

In this post, I’d like to dig a little deeper and discuss a central question that all IT organizations must answer when developing a mobile strategy: What type of app to build – native or mobile?

A google search on the topic will return a wealth of material from supporters and naysayers for both. Here is a collection of polemics from experts. Below I will summarize this debate and offer some thoughts on how to think through a strategy for healthcare companies (and other industries as well).

This Worklight webinar offers an excellent overview of the pros and cons for both native and mobile apps, and “hybrid” models. 

Native Apps

 

Simply put, native apps are those that you typically buy/download from an app store or market-place such as iTunes, Google Play, Windows Phone store, etc. They are built uniquely for a mobile device (iPhone, Droids, Blackberry, etc.) and the app’s functionalities are contingent on the device’s API environment.  A native app built on iOS is not portable/usable in an android phone and vice versa.

Native apps have several advantages:

-apps can utilize other device functionalities such as cameras, geo-location, address book, etc. to offer a more enhanced, immersive user experience.
-apps can be run offline, not requiring a wifi connection. Content data can be cached and re-used.
-apps get a lot more market exposure being part of the app store; will show up in search results and can gain traction from user ratings. This also allows the developers to get instant feedback and improve their apps based on user needs.
-apps can include revenue generating advertising. 

There are also several disadvantages:

-they’re costly to develop and deploy, requiring a diverse mobile architecture.
-they require resources trained in the various platforms.   
-they require approval from third party store owners before deployment, and involve a vendor fee.

Mobile Apps

 

Mobile apps are those that require a browser app-shell to run on. They’re designed using web languages (java script, html5) and can be run on any device using any browser (Safari, Dolphin, Opera, etc.). Mobile apps are accessed through a URL or hyperlink.

The disadvantages we saw with native apps are all advantages for mobile apps:

-they’re not dependent on the device, and therefore only require a single development team.
-they can be updated and modified faster, cheaper, without relying on third-party, store approval.

On the flip-side, mobile apps cannot provide the same level of functionality and user experience as native apps. They are typically only accessed by those already familiar with your site by typing the URL or clicking on the hyper-link to get there. They are also dependent on a wifi connection to execute.

Given these benefits and downsides to both native and mobile apps, what direction should health care organizations choose?

Mobile Strategy

I don’t have a specific answer (and will be shot if I revealed the thinking within my company :)) but I believe the answer must start with (1) an understanding of who is in our customer base and what they want. (2) We must also look ahead and understand how our business and technology will evolve in the future. (3) What the return-on-investment (ROI) from each will be.

Market research of mobile users, and customer segmentation specific to the industry will provide the data we need to understand how our customers prefer to relate to our business. Currently, several studies show a dead heat between mobile app vs native app users. I have reviewed several case studies (not available online) that show customers are split in terms of their preference. There’s a clear advantage when it comes to the number of native app offerings (400,000+ according to one study) as opposed to mobile apps (48,000+ or 10% of native apps). But this number is misleading as several native apps are quickly designed games and catalogs pushed to the market, as opposed to more robust applications.

Secondly, as we look ahead to the future, both the demographic shifts and the individual mandate coming into effect, we can expect an influx of younger customers entering the health care market. Younger people tend to prefer native apps but consumers generally prefer to shop using a web browser (mobile sites and apps). As browsers and web languages develop further (like html 5) some of the functionalities of native apps can now be incorporated into mobile apps (such as geo-location, connecting to google contacts, etc.). 

The third determination, ROI, is the toughest to measure, given the relative newness of this technology. A survey of use-cases I have seen makes a strong case for both, with a slight edge to mobile apps, given their low cost of development. However, the higher visibility of Native Apps help generate more revenue over-time, even if immediate ROI is smaller.

In the final analysis I believe what’s important in choosing the right strategy is flexibility. An initial go with mobile apps might be cost effective and provide an easy transition for customers already familiar with our web portals. But as we move into the world of health-exchanges and individual buyers, native apps can attract new business and provide cost-effective services in a much better way than mobile apps. But as mobile app/browser technology evolves and hybrid apps become more common, an adjustment in strategy might again be necessary.

Lie Luo of Global Intelligence Alliance, based on an extensive study of trends concludes:

So far we have been mainly discussing the choice between native and Web apps for mobile devices. It is important to recognize that we are increasingly moving toward a ‘multi-screen’ world, where brands will want to engage their users across a variety of media touch points. In that light the same debate will carry on to tablet devices and now Web-connected TVs, thanks to the expansion of Android and iOS platforms.
Personally I believe Web apps will take on a larger mind share among both publishers and consumers, as hardware complexity grows and the desire for immediacy increasingly dominates modern media consumption behavior.

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