Mobility is a wonderful thing. As mobility gets built into all products and services, businesses need to learn how to both capture the power of mobility and manage the dangers introduced through mobility. Here are some examples of how the power of mobility is being applied to create competitive advantage:
Complete list here
Bonus: Optimize offers a “how to” on managing mobile dangers
In order to be winners in the new mobile era, businesses will not only need to capture the power of mobility, but also manage the danger. Highlighted below are recent examples of the danger of mobility and how some firms are beginning to manage it:
The most convenient way that mobility is getting built into products is through the convergence into the cellphone of capabilities that previously existed as standalone products. That way, those products are now with you and available for your use whenever you need them wherever you go.
Robert Turner recently wrote an article for AdMap magazine called “Mobile comes of age as a mainstream media channel.”
Near the beginning of the article, Robert makes this set of observations:
“There are macro factors that make mobile marketing a compelling and forceful proposition. Today’s world economy is in the boom phase of a long technology cycle, also called the ‘information age’. This cycle has three phases, of which mobility is the third, current phase.”
“Phase 1 was the ‘microprocessor age’, driven by Moore’s Law – computer chips double in power every 18 months despite getting smaller and cheaper. This enabled computers to move from mainframe to desktop.”
“Phase 2 was the ‘internet age’, driven by Metcalfe’s Law – the value of a network increases exponentially with the number of nodes. The internet was of little value to most people until enough computers, and people, were connected to it. Now you cannot operate without it.”
“Phase 3 is the ‘mobility age’, driven by McGuire’s Law – the value of a product increases with its mobility. I suggest this also means that the value of a marketing campaign increases as mobile is added. People no longer need a PC on their desk, they can use a mobile device to interact with brands.”
He then goes on to warn about the uniqueness of mobility – that it is personal and it is pocketable…
“The mobile channel provides immediacy, engagement, interactivity and instant measurement. But here is the rub: the mobile is intensely private. …so we must tread carefully.”
Along the way he provides some education for his advertising brethren before framing the right questions – how to manage the uniqueness of mobility and capture the value creation promised by the Law of Mobility.
“We must ask two questions: why would consumers accept marketing messages on their mobile, which they guard as an intensely personal device; and how can advertisers harness mobile’s exclusive and unique characteristics to deliver services their targets will welcome?”
This is exactly the thought process each industry will need to explore in determining how to capture the power of mobility.
Robert doesn’t offer any easy answers to these questions, but rather uses a series of examples to help his readers understand the complexity of winning in the new mobile era.
I recommend this article to anyone wrestling with how mobility will change the industry in which they operate!
This morning, MobilityBeat included a link to an interesting post at Seeking Alpha that introduced me to Sramana Mitra.
Sramana appears to write about a bunch of interesting topics and occasionally those topics intersect with my mobility world. One of her recent general threads has been all about the impact of the iPhone.
This morning’s post is on “iPhone and the Future of Cisco“: “Under the terms of the agreement, Cisco and Apple will explore interoperability in their products. Meaning, an ensuing collaboration between Linksys and Apple, I presume? … I wish them good luck. Linksys is truly the world’s most user un-friendly consumer product in the market. … Cisco looking into a mirror would expose so may worts, freckles, gray hair, wrinkles, and dead skin, that a grand spa treatment with Apple may just be what the doctor ordered.”
Yesterday’s post was on “iPhone and the Future of Texas Instruments“: “TI has become one of the top players in wireless chips, closely followed by Qualcomm. It is also a leader in Digital Signal Processing (DSP), important for all video-heavy applications, and if the iPhone is to become a video-phone, we need strong DSP capability. … Finally, hyper-integration and low-power design are two other key design areas that the company understands really well. ” (she then goes on to say TI may be a good choice long term as a chip supplier for Apple).
Wednesday’s post was on “iPhone and the Future of Qualcomm“: “Apple has a great knack for aligning the arrowheads of an industry, and since the global interoperability and standardization problem is already bugging the mobile industry, they just may decide to force the issue to resolution. This would not spell good news for Qualcomm.”
Tuesday, it was “iPhone and the Future of Microsoft“: “This is a very strange perspective, but I think in the mobile world, the iPhone is actually driving the market towards Microsoft’s Windows Mobile OS, and away from the current OS leader Symbian.” She then introduces her logic, leading to… “The above indicates the increasing necessity for a robust and full-scale OS on this convergence device, making the Palm OS, RIM, and even Symbian, gradually irrelevant.”
Monday, it was “iPhone and the Future of ARM“: “Warren East, CEO of ARM, has confirmed that ‘at least three’ ARM processor cores are present within the iPhone from Apple Inc. ” (this post is much more interesting to those that follow the semiconductor industry than it is to me…)
Last Friday, similarly, Sramana wrote on “iPhone and the Future of Marvell“: “Marvell scored the design win to provide the Wi-Fi chip for the iPhone, and if the product and the functionality takes off, could have a nice upswing.”
Last Thursday, Sramana was back in my world with “iPhone and the Future of Samsung“: “Interestingly, Samsung has multiple businesses and skill-sets that position them as a potential threat and a possible supplier to Apple … In many ways, the iPhone plays to Samsung’s strengths and versatility, offering it the opportunity to come in as the somewhat lower-priced alternative to the iPhone, and win market share, if it chooses to position itself as an iPhone competitor.”
Early last week she was back in the semiconductor world with “iPhone and the Future of Intel“, “iPhone and the Future of Broadcom“, and “iPhone and the Future of Nvidia“: “The iPhone, if successful, will drive all the computer and handset vendors towards a convergence device, including most of Intel’s top customers: HP, Dell, Lenovo. Remember, I said, the iPhone is positioned against the laptop, not the cell phone, and therefore, Intel can pose the most important challenge to Apple, by powering all its competitors with a low-power, high-performance, mobile-ready chip that leapfrogs the market.”
Going back another week, Sramana was back in the mobility industry. “iPhone and the Future of Palm“: “Analysts tend to agree that Smartphones is where the growth is. … On the OS side, Symbian dominates, but its market share is eroding, with Microsoft Windows Mobile and Linux gaining ground. … Palm has a lot of relationships, and a good implementation of Windows Mobile phones. This makes it the most valuable as an acquisition target for those laptop vendors trying to defend themselves against this positioning in the long term, and those who do not have any existing mobile carrier relationships to get into this game easily. … I do believe going at it alone will be extremely difficult for them at this point, unless they really change their strategy and go for a hardcore enterprise play as I explored earlier, or go for the lower-priced emerging market killer app strategy.”
On April 26, it was “iPhone and the Future of Motorola“: “Like other top handset vendors, Motorola’s cellular handset business is thriving around the world, but is suffering under tremendous margin pressure. They need more products in the highend. Translation, they need a better position in the SmartPhone / Convergence Device segment.”
Before that, it was “iPhone and the Future of Laptops“: “I wrote in an earlier piece, that the iPhone is most likely to be positioned against laptops, as a convergence device that eliminates the need to have to carry around multiple devices. …The branding of this Laptop replacement as a Phone is a clever marketing move. “Here, look, we have a phone that can replace your laptop …” Never mind that it is a VERY EXPENSIVE PHONE.”
Back on April 24, it was “iPhone and the Future of Nokia“: “Overall, it seems to me that only a very small sliver of Nokia’s business will get impacted by the iPhone in the foreeable future. However, as Nokia and other handset makers struggle with the atrociously low margin business they’re in, they will all try to move up the value chain, and get more of the high-end, higher margin products into their mix. This is where, iPhone is a threat to Nokia’s future, because that small sliver of the market is a rather critical piece of Nokia’s equation.”
And she kickied the series off with “iPhone and the Future of RIM“: “RIM and Apple are by and large not competing for the same customer base. RIM, in its segment (Prosumer SmartPhone), is the second most popular vendor, behind Nokia, having overtaken Palm. … The longer term story may, therefore, become very different, as Apple expands out of the Consumer segment, and uses its ‘Ultimate Convergence Device’ positioning to go after small laptops, NOT just the SmartPhones. This would require them to address issues like an enterprise class messaging system, the core differentiating function for the RIM Blackberry lines.”
Whew…
How have I been missing this? And how much longer can she keep it up?
I, for one, am going to stay tuned to find out. Thanks Sramana for all the insights!
(Now, if Sramana could just apply her ample brainpower to consider how the value created by mobility factors into all of this…)
The Law of Mobility talks about value increasing with mobility. The impact of this law is being felt because the barriers to building mobility in are being obliterated week after week. Here are examples of technology advances enabling this to happen:
More and more, the world around us reflects the growing assumption of the law of mobility. Each week we will track indicators of Mobility’s growing importance in our businesses, our lives, and our society:
Full list here.
I’m really excited.
I had asked my good friend, Danny Briere, to write the foreword to The Power of Mobility. He agreed and I just received a copy of what he’s written. His comments are insightful and flattering and I’m proud that they’ll be part of my book.
Here’s just a snippet of what he’s said:
…
Moore’s Law was one of these early suggested hypotheses that gained strength with time and therefore proofpoints. Moore’s Law explained the era of plummeting costs and bursting processing capabilities in the early days of computing. It provided an ability to cull from the rapidly changing technology landscape some stability of purpose, and allow for solid planning, expectations, and in some cases, hope.
Metcalfe’s Law followed. Metcalfe’s Law provided a solid extension of Moore’s Law into the Age of the Internet. Building on the decades of experience with other networks, from railroads to telephones, Metcalfe’s Law provided a basis to value and exploit the Internet and all the businesses and concepts derived from it. Metcalfe’s Law paved the way for all sorts of corollaries, from those that claimed “First To Market” advantages in riding the Metcalfe curve, to those that pursued M&A to obtain multiples on the market valuations from the resulting high subscriber numbers. “The Network Effect” was born, and the industry had its next big layer of stability to anchor its development.
Then came wireless to mix everything up again. “The Law of Mobility” is what it’s been called for the past few years, posited more as a hypothesis at first, gaining steam recently as more and more industry data support the core facets of the Law, and providing yet more ability to craft sense from the chaos that accompanies the wireless onslaught. We’ve gone from custom military-grade communications, to $3,000 “bricks” offered to the few, to clamshell innovations like Motorola’s StarTec, through to TREOs, Blackberries and the iPhone. We’ve gone through hundreds of “A” and “B” carriers, through flaming Iridium satellites, through cellular carrier consolidation and logo changes on trucks (bye bye, McCaw, Bell Atlantic Mobile, Cingular…) through GSM versus CDMA versus Wi-Fi versus lots of other technology battles. We’re witnessing a total and fundamental paradigm shift from staid, anchored landline phones and computers, to totally untethered, anywhere-in-the-world instant communications. There’s no torch passing here, but rather a whole new flame in a new generation that is growing up on “always on” connectivity, constant network presence, and immediate satisfaction. We’re seeing total abandonment of prior decades-refined habits, in favor of whole new approaches to not only technology and work, … but life itself.
Computing. Internet. Wireless. These disruptive changes have forever changed our landscape like the railroads, airlines, and telephone before them. Wireless enables Mobility, Mobility changes all around us. Those who are true strategists in their firms have no choice but to quickly make sense of all this dramatic change and plot the best path through. For many, from the landline-focused telephone companies to the historically lagging Postal Service, this is the Perfect Storm of their time – a time where fundamental industry tenets, technological capabilities and user habits all change overnight.
Russ McGuire’s Power of Mobility hits this new age face on. He explains, with almost matter-of-fact simplicity, what’s going on, where it’s going, and what you need to do to 1) not be blindsided and 2) capture the situation to your benefit. The Power of Mobility prepares you, in a step-by-step fashion, to interpret the opportunity presented by mobility into your firm’s environment. He provides a literal roadmap for strategic planning and execution. Where he can’t give you the answer, he leads by example.
…
You can read the rest of his foreword when the book comes out this fall. Or keep up with some of his columns here and here.
Thanks Danny!
Mobility is a wonderful thing. As mobility gets built into all products and services, businesses need to learn how to both capture the power of mobility and manage the dangers introduced through mobility. Here are some examples of how the power of mobility is being applied to create competitive advantage:
Complete list here
Intel introduced a new Linux-based ultra-mobile PC form factor at a conference in Beijing last month. MobileLinuxInfo has a nice video showing the user interface, which, admittedly, is pretty cool.
But, does this new class of device overcome the challenges associated with the UMPC?
Back in December, I identified a list of things that a successful ultra-mobile computer would need to achieve:
Well, if we think about it, the UMPC obviously falls between a laptop (or tablet) computer and a Windows Mobile device. For the UMPC to be a hit, it will need to combine the computing power of the laptop with the mobility power of the Pocket PC.
What does that look like?
A laptop (or tablet) has more computing power than a mobile device because:
- It runs “real” Windows and supports the seemingly infinite array of Windows-based apps.
- It is very usable, with reasonable input, meaningful screen real estate for output, and a big enough screen to comfortably read.
- Our price/performance expectations have been effectively managed by manufacturers.
A Windows Mobile device has more mobility power than a laptop because:
- It’s small enough to conveniently take with you everywhere (high availability).
- It’s likely that you’ll want to use it anywhere, anytime, so you DO take it with you. (Unlike, for example, your digital camera.)
- Mobile devices are always connected, so their value is multiplied by what’s available across the network.
- They are becoming increasingly aware of their context (location, proximity, presence, network strength, relevant data such as traffic and weather, etc.) enabling their value to increase exponentially as the context drives increased relevance to where I am, what I’m doing, who I’m with, what situation I’m in, etc.
- Battery life lasts for hours of use and days of non-use standby.
- Pricing is generally less than $500, making a mobile device an affordable investment.
Does the MID meet these requirements?
In a word: No.
The MID has two things going for it: It runs a version of Linux (specifically the version endorsed by the Chinese government, thus the introduction of the devices in China), and it has a better user interface than Windows.
I’m guessing it will also have a lower price than the original UMPCs, will likely have better battery life, will likely have better connectivity, and will boot faster. That’s all good. But, as described, the device lacks enough of the advantages of a “real” laptop and of a cellphone that I doubt it will have any meaningful impact on the market.
I’m still waiting.
