Archive for March, 2009

The Great Divide

Thursday, March 19th, 2009

One of the more enjoyable things I get to do in my job is talk to the folks who are actually using mobile technology to better their businesses.  No big marketing studies, no polls, no government statistics, just me and one person sitting down to talk about how mobile technology is affecting them.  It’s not that polls and statistics don’t have their place, they do.  But I have been in sales and business development for over 20 years, and there is nothing that substitutes for speaking directly with a business person to get a real feel for what works and what doesn’t.

construction-worker-cell-phoneRecently I decided to make it a point to schedule a few lunch appointments each month with various Small and Medium Business owners to talk about mobile technology.  Some of them are people I know well, and some are folks I have just been introduced to.  The approach is the same in all cases.  We sit down for lunch and talk about their business, how they use mobile technology, how they locate technology, how they acquire it, and what additional mobile solutions they would like to get their hands on.  These are business discussions, not technology discussions. 

While this is not a scientific approach to gathering statistics, the information gathered during these discussions provides a huge amount of insight into what works, and what doesn’t with regards to getting mobile technology into the hands of Small and Medium Business.  As I run across findings I think will interest a larger audience, I’ll take the time to blog about them here on MobileBizBuzz.  (more…)

Blackberry: Rockin’ the Smartphone Market

Tuesday, March 17th, 2009

Blackberry SmartphoneThe Smartphone market is one of the areas we closely watch as it serves as a bellweather for trends on how businesses are adopting mobility.  Within this market is Nokia, RIM/Blackberry, iPhone, Windows Mobile devices, HTC, Palm and others.  What makes these devices ’smart’ as compared to a cell phone?  In simple terms they have an operating system that allows applications to be downloaded, a wireless data connection and usually a keyboard that accomodates a lot of typing.

A leading research firm, Gartner, just released its annual report on this market.  Of the 138 million devices sold in 2008, Nokia owns 40% of the market, followed by Blackberry (~20%) and then iPhone (~10%).  Nokia is losing market share, Blackberry is up 84% (quarter over quarter) and iPhone, a new entrant, is up 111%.   What is interesting here is that Blackberry is now a $12Billion company and this growth rate is incredible for a company that size.  Blackberry’s niche is serving the business customer, which are typically email fanatics.  iPhone serves a completely different segment, entertainment driven customers.

My take on this development is that businesses can cost justify a Blackberry as a business tool.  With a new application store called App World, we will likely see this trend continue.

If you would like more detailed information on the subject, Michael Mace’s blog has some very good statitistics and observations.

Carrier Based App Store

Monday, March 16th, 2009

Telstra, an Australian carrier, recently announced their intent to launch the app store concept for their subscriber base.  Russ McGuire provided a link to an article over at GigaOM on this topic.  The article is worth a quick read, but I think the comments are even more interesting.  Basically the comments reflect people mulling over what is really different in this announcement than what happens already.

In today’s world most, if not all, carriers have a web store that allows their users to download content.  This includes ring tones, wallpaper, music, video, and applications (generally games).  A user purchases the content through the carrier storefront, and they are billed for that content by the carrier.  I too am not sure what is really different here.  It seems to me Telstra is simply trying to capitalize on the buzz surrounding app stores right now.  There certainly isn’t anything wrong with this, but I don’t see it as a game changer in any way.

What we are witnessing right now is a huge rush for many companies to take advantage of Apple’s success with their App Store.  Basically all of the device manufacturers are jumping in.  In the case of Android and Microsoft, the organizations responsible for the operating systems are jumping in as well.  This is good in that folks will now be able to find applications for their devices.  This will help the shift to devices becoming more than just phones.

I expect we will see more carriers ride the wave in the near term.  I would if I were them.  However, consolidation will come. It has too.  I’d be curious what others think about this.

Wireless Households on the Move

Friday, March 13th, 2009

A friend of mine, Gavin Manes, has not had a home telephone since 1999.  This seemed kind of odd, but now we are learning that a growing percentage of ‘wireless-only’ individuals is reaching critical mass.  The Centers for Disease Control and Prevention just issued a report which caught national and local media attention. 

We are truly in a wireless world when you look at some of these statistics.  The State of Oklahoma has the most ‘wireless only households’, a staggering 26.1%.  This is followed by Utah, 25.5%,  and trailing close behind are Nebraska, Arkansas and Idaho.  These are more rural states where wireless coverage is thought to be less than average.

Novel Mobile Apps

Tuesday, March 10th, 2009

student-smartphonesI was perusing Russ McGuire’s blog today and ran across a link he posted about using mobile technology in the classroom.  The full article discusses a program where Qualcomm provided a grant to schools to use smartphones and service at no charge.  The idea is to leverage new ways of encouraging kids to learn.

The reason I found this article interesting is it illustrates some novel, out-of-the-box thinking about how mobile technology and applications can be leveraged.  It’s all too common for companies to put up a mobile website and leave it at that.  There is nothing wrong with mobile websites, but real innovation is coming from applications that use mobile technology in ways that are not really possible with fixed PCs.  For instance, using a mobile application to fill out an onsite inspection form, while capturing the GPS coordinates so you know the inspector was actually there.

We are continuing to see more creative uses of mobility in the business realm.  I for one am very interested in seeing how we collectively steer and advance the use of mobile technology for business.

400 Stores in the Palm of Your Hand

Friday, March 6th, 2009
Kum & Go Convenience Store

Kum & Go Convenience Store

The local Kum & Go convenience store down the street from the office is usually manned with a couple of college aged kids.  They are at the register, refilling the coffee pot, cleaning the parking lot and doing lots of tasks throughout the day.  Each store must have 1,000 items in inventory.  So how do they keep track of all of the gum, chips and cigarettes and keep the supply chain efficient while managing all of the other tasks?

Dave was running the register this morning.  As soon as he gave me change for my coffee purchase, he pulled out a Symbol handheld device and was quickly in the automotive section counting quarts of oil and ice scrapers.  Kum & Go has a slick system where Dave can count his inventory in a short amount of time on a mobile computer, then take this to the PC behind the counter, dock it and then the device downloads all of the information to headquarters in Iowa.

Kum & Go is not a Fortune 1000 company with a huge staff of I.T. people running systems, but they have discovered the value of mobility.

Small Company, Big on Mobility

Wednesday, March 4th, 2009

Intermec CN3 with Oneil PrinterI was at a local convenience store today and noticed a delivery man standing with the store manager, looking at a little black box, about half the size of a desktop keyboard.  All of the sudden, two pieces of paper pop out of it, the manager signs it as if he was closing the tab at a restaurant.

The delivery driver works for Solaray and I stopped him and asked him about his little machine.  What he was holding was a small mobile printer with an Intermec (they make some of the best rugged mobile handhelds in the world) wireless device imbedded in it.  The driver was delivering sunglasses, lighters and other trinkets to stock the convenience store shelves.  He just consummated the transaction and notified headquarters without a single piece of paperwork, instantly, with this little marvel.

Solaray is a small, privately held company based in Sapulpa, OK.   Sapulpa is known for Frankoma Pottery, not leading edge technology development.  Solaray recognized the importance of mobile technology and had a company develop the platform for them, then purchased the company!   No wonder they can manage 15,000 delivery locations across the United States.

App Store Analysis

Tuesday, March 3rd, 2009

Global Intelligence Alliance Group has just released an analysis of several app stores for mobile applications.  By this time we are all very familiar with the iPhone App Store, and the fact we are so familiar with it is pretty amazing.  It was launched only eight months ago, but currently boasts over 15,000 applications and surpassed 500 million downloads back in January of this year.  About all you can say is “Wow!”  But since that isn’t very enlightening, I’ll try to provide some observations on app stores in general. 

app-storeFirst of all it’s important to remember that only two app stores actually exist.  These are the iPhone App Store and the Android Marketplace.  All the others you may have heard about like Ovi from Nokia, Skymarket from Microsoft, BlackBerry Apps Storefront, and the webOS Software Store from Palm are all just announcements right now.  That’s right.  You can buy any software you want from an app store as long as your smartphone is an iPhone or the G1 phone.  That’s it.  There are not any other choices right now today.

So why all the noise about what are essentially download sites for only two devices?  Because until the iPhone App Store, if you wanted a mobile application for your smartphone, you had to either go through a carrier storefront (which tend to be limited and difficult to navigate) or hunt around the Internet for software to download from sites that may or may not be legitimate.  So being able to go one trusted place for software for your device is a big deal.  Add to that the fact that one of the devices has sold like no other mobile device before and you see why app stores are getting so much press.

But for all the positive press, and it is certainly well-deserved positive press, there are still some issues that need to be addressed to really free users.  In no particular order some of the biggest issues are:

  1. Searching has to be improved - In some cases even if you know the name of the application it can be difficult to find in the iPhone App Store.  This problem will only get worse as the number of applications grows, and as business applications begin to populate the store.
  2. Many more devices must be supported - With the announcement of several new app stores this problem should improve over time.  I still wonder how useful it will be if you are a small business and have to go to the iPhone App Store for one person, the BlackBerry Apps Storefront for another, and the webOS Software Store for another.  That’s not a very effective way for a small business user to find what they need for their business.  And that brings me to the third point.
  3. Business applications have to be supported - Right now all of the app stores that exist, and the ones that are coming all cater to consumer applications.  There is nothing wrong with providing consumer applications, but who is going to provide applications for small and medium business personnel?  After all, there are over 120,000,000 of them in the US alone.

We are early on in this new world of app stores, and we are off to a great start.  But to really unlock the potential of mobility for business users, the app store landscape will need to change to address these and other issues.

WinMo & RIM Hit 50MM in Device Sales

Monday, March 2nd, 2009

SourceL Tjeerd

At the recent World Mobile Congress, Microsoft rather quietly announced that the company has sold more than 50MM Windows Mobile devices (the operating system) over it’s 10 year lifetime.  RIM also recently announced achieving a 50MM in BlackBerry device sales milestone over the same 10 year timeframe.

In comparison, Apple has sold a total of 17MM iPhone as of January 2009. But to put that in perspective, the milestone was achieved in only two years. Projections for iPhone sales have been trending downward for the past several months, but (depending on the source) could still go as high as 30MM units in 2009.

Can it be possible that the iPhone can reach the same 50MM milestone in less than 3 years? The smartphone market is only now becoming mainstream, and overall sales have been increasing around 40% a year. This opens the field for hundreds of millions of new smartphone sales, from iPhone, WinMo, RIM, Palm, Android, etc., etc.

In fact, the third largest phone maker in the world, LG, which sells about 20x times as many handsets a day as iPhone, has just signed a deal with Microsoft to put Windows Mobile on 50 LG phones over the next 5 years. I have to believe that’s going to have a big boost for WinMo. And whatever you do, don’t forget about the new Pre – now scheduled for a May-June launch.

These sales milestones are impressive, but they will pale in comparison to what the next couple of years brings.