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The first smart mob?

Friday, December 25th, 2009

Wikipedia defines a smart mob as “a form of self-structuring social organization through technology-mediated, intelligent emergent behavior…. A smart mob is a group that, contrary to the usual connotations of a mob, behaves intelligently or efficiently because of its exponentially increasing network links. This network enables people to connect to information and others, allowing a form of social coordination.” and “The concept was introduced by Howard Rheingold in his book Smart Mobs: The Next Social Revolution.”

Roughly two millennia ago we hear of this story involving angelic communications technology:

And in the same region there were shepherds out in the field, keeping watch over their flock by night. And an angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were filled with fear. And the angel said to them, “Fear not, for behold, I bring you good news of great joy that will be for all the people. For unto you is born this day in the city of David a Savior, who is Christ the Lord. And this will be a sign for you: you will find a baby wrapped in swaddling cloths and lying in a manger.” And suddenly there was with the angel a multitude of the heavenly host praising God and saying,

“Glory to God in the highest,
and on earth peace among those with whom he is pleased!”

When the angels went away from them into heaven, the shepherds said to one another, “Let us go over to Bethlehem and see this thing that has happened, which the Lord has made known to us.” And they went with haste and found Mary and Joseph, and the baby lying in a manger. And when they saw it, they made known the saying that had been told them concerning this child And all who heard it wondered at what the shepherds told them. But Mary treasured up all these things, pondering them in her heart. And the shepherds returned, glorifying and praising God for all they had heard and seen, as it had been told them. (Luke 2:8-20 ESV)

and

Now after Jesus was born in Bethlehem of Judea in the days of Herod the king, behold, wise men from the east came to Jerusalem, saying, “Where is he who has been born king of the Jews? For we saw his star when it rose and have come to worship him.” When Herod the king heard this, he was troubled, and all Jerusalem with him; and assembling all the chief priests and scribes of the people, he inquired of them where the Christ was to be born. They told him, “In Bethlehem of Judea, for so it is written by the prophet:

“‘And you, O Bethlehem, in the land of Judah,
are by no means least among the rulers of Judah;
for from you shall come a ruler
who will shepherd my people Israel.’”

Then Herod summoned the wise men secretly and ascertained from them what time the star had appeared. And he sent them to Bethlehem, saying, “Go and search diligently for the child, and when you have found him, bring me word, that I too may come and worship him.” After listening to the king, they went on their way. And behold, the star that they had seen when it rose went before them until it came to rest over the place where the child was. When they saw the star, they rejoiced exceedingly with great joy. And going into the house they saw the child with Mary his mother, and they fell down and worshiped him. Then, opening their treasures, they offered him gifts, gold and frankincense and myrrh. And being warned in a dream not to return to Herod, they departed to their own country by another way. (Matthew 2:1-12 ESV)

Merry Christmas!

Posted in Book, Events | No Comments »

CCM Cover Story: What is 4G?

Thursday, December 17th, 2009

My most recent column for Christian Computing Magazine is the cover story for the December issue. I think the topic is of interest to my loyal blog readers as well!

Check out the full story, but here are a few excerpts. As I’ve noted before, the CCM audience is a bit less wireless-savvy than readers here, so I apologize that this is a bit over-simplified in places:

Now that it seems the whole world has adopted mobility for more than just talking, everyone’s focused on the data network as the critical element for the future. In fact, while most of us are just getting our arms around 3G, you may have started seeing ads for 4G services. So what is 4G and why does it matter?

4G is shorthand for fourth generation cellular services. The first generation of cellular was a simple, analog voice-only network. The Federal Communications Commission (FCC) started auctioning spectrum for 1G networks in 1982 and by 1985 there were 340,000 wireless subscribers. The second generation was digital, which provided significantly better utilization of the radio frequencies (spectrum) to support more calls. 2G also supported data transmissions, roughly at dial-up modem speeds (generally up to 64kbps). The first 2G network was deployed in Finland in 1991. In the U.S., 2G networks eventually evolved to either GSM (based on Time Division Multiplexing or TDMA) or CDMA (Code Division Multiplexing) technology standards.

Starting in the mid-1990s, people began speaking of advanced mobile communications services that often were referred to as “personal communications services” (PCS). A third-generation cellular architecture, with high-speed packet switching at the core, was expected to support these new services. The FCC began auctioning new spectrum for these services in 1994. However, it took over a decade for 3G networks to actually be ready. In between, most carriers launched networks that were referred to as 2.5G. These interim networks inserted a packet network, but only stepped up the bandwidth to about 144kbps.

Finally, in 2005, Verizon and Sprint started rolling out true 3G services. Today’s 3G services (EV-DO for Verizon and Sprint, HSPA for AT&T and T-Mobile) deliver roughly DSL speeds – typically about 1Mbps downstream and about 400Kbps upstream. 3G coverage is fairly comprehensive for Verizon and Sprint, while AT&T and T-Mobile cover the major metropolitan areas. Outside of 3G coverage areas, most carriers still provide 2.5G services, so you aren’t completely out of luck.

As cellular technology, 1G, 2G, and 3G all operate with a cellular architecture, meaning that a cell site (think of the towers you see alongside the highway, although many cell sites are more discrete these days) covers a given area, typically with a radius of 1 – 5 miles. As you reach the boundary of that cell, your signal is handed off to the next cell. If you’re on a call, the call continues through the handoff. If you aren’t on a call, the network recognizes that you’ve switched cells in order for it to route the call to you when someone dials your number.

So, what is 4G? As you would guess, fourth generation cellular networks take it to the next level. Architecturally, packet switching is more deeply embedded, creating an end-to-end IP network. Technologically, time division multiplexing and code division multiplexing are replaced by orthogonal frequency division multiplexing (OFDM). 4G networks make much better use of spectrum. Individual connections are typically in the 5Mbps range or higher (think cable modem speeds). And the cost to operate is expected to drop to about 20% per megabit compared to 3G networks.

Sprint launched the first 4G network, starting in Baltimore in October 2008. Today, Sprint has expanded the service to about 25 cities covering about 10% of the U.S. population. The company expects to have about a third of the country’s population covered by the end of 2010. Verizon expects to launch its first 4G markets late in 2010 and similarly expects to cover about a third of the country by the end of that year. Sprint is using a 4G technology called WiMax. Verizon plans to use a technology called LTE. They are both OFDM-based technologies. Neither AT&T nor T-Mobile plan to launch 4G during 2010.

So, why would anyone care about 4G? 4G services promise a 5 fold increase in speed at roughly the same price. I believe that unlimited is an important differentiator for 4G, and one that is hard for the carriers to match on 3G because of the significantly higher operating costs.

But moving beyond the immediate “what’s in it for me,” the other reason to care about 4G is the broader picture of available network capacity. In a paper titled “Managing Growth and Profits in the Yottabyte Era,” Chetan Sharma observed that for 2009, the global mobile data traffic will reach one Exabyte (1000 Terabytes). This year, some carriers suffered from not having enough capacity in their networks to keep up with growing mobile data usage. By 2017, Sharma expects the global mobile data traffic volume to reach one Zettabyte (1000 Exabytes). If 3G networks are struggling today, how will they handle a 1000 fold increase over the next several years?

The answer is 4G. The new networks are not only using technology that makes more efficient use of the available radio spectrum, but are being built with big new blocks of that spectrum. For example, Sprint has about 50MHz of spectrum for its 2G and 3G networks. But the company’s Clearwire business holds over 120MHz of new 4G spectrum. That new spectrum with efficient radio technology, combined with new micro-network technologies like picocells and femtocells which offload the needs of users in predictable less-mobile areas like the home and office, will significantly stretch the networks to be able to meet the coming tidal wave of bandwidth demand.

What does that mean for you and me? Most importantly it means that we’ll actually be able to enjoy the speed promised by 4G when and where we need it.

And that’s what mobility is all about! So, I say – bring on the 4G!

Posted in Book, Enablers | No Comments »

Voice 2.0

Monday, December 14th, 2009

Last week I participated in a couple of panels at the Telco 2.0 Executive Brainstorm event in Orlando. The first panel was on “Voice and Messaging 2.0.” Excellent stimulus presentations were provided by Thomas Howe and Irv Shapiro. Thomas introduced the concept of Communications Enabled Business Processes (CEBP) and Irv gave examples of how ifbyphone’s customers are implementing them.

I joined the two of them in a panel discussion. I structured my comments around three concepts:

  1. Voice 2.0 has to evolve from Voice 1.0
  2. However, that evolution requires a “leap of faith” to escape the gravitational forces of Big Bell Dogma
  3. Voice 2.0 has got to be about solutions, not technologies

Starting from the Basics
In moving to Voice 2.0, we can’t leave behind the foundational ingredient of Voice 1.0: reliable networks. It may no longer be about circuit-switched voice networks, but delivering great services still requires reliable and adaptable MPLS, scalable and flexible SIP trunking, increasingly wirelessly-connected endpoints with reliable 3G, or (in more and more places) 4G networks.

Breaking Free of Big Bell Dogma
Although, as a carrier, building great networks is what we’re about, to get to Voice 2.0, we have to move beyond the Big Bell Dogma of holding back innovation by claiming 5-9’s reliability is being threatened (when really it’s cash-cow monopoly profits that are at risk). We have to ease the interconnection of voice networks (while avoiding monopoly fees), enable convergence, and stimulate innovation in the broader ecosystem.

Delivering Solutions
But, at the end of the day, Voice 2.0 isn’t about completing phone calls or operating great networks, it’s about creating value by delivering revenue-boosting or cost-reducing solutions. As a carrier, Sprint will never be the best at developing complex solutions, which is why we partner closely with leaders like Cisco, IBM, and Microsoft (instead of trying to compete with them as some do).

However, sometimes delivering a valuable solution is as simple as helping a customer apply an existing solution to a well understood problem. I gave the example of a Sprint customer in the health insurance industry. Their goal is to improve health outcomes while reducing costs. They looked at the childbirth process as an area for improvement in both. A pregnancy resulting in normal delivery costs in the neighborhood of $1,000. A pregnancy resulting in a Caesarian section birth costs in the neighborhood of $10,000. However, a pregnancy resulting in a premature birth typically has costs exceeding $1 million – a thousand times more than a normal delivery. If there were a way to help the baby stay in the safety of the womb for 37 weeks, it would save a tremendous amount of money, but more importantly be a better health outcome for the mother and a tremendously better health outcome for the baby. Sprint worked with this company to apply Nextel Direct Connect push-to-talk technology to address this need. At risk mothers are now given a push-to-talk phone with “the button” programmed to connect directly to a health professional. Whenever she has questions, she can get immediate sound answers and advice. The result has been a meaningful reduction in premature births –

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and an easier road to a healthy, happy life for many babies.

Needless to say, I’m excited about the potential impact Voice 2.0 is already having!

Posted in Big Bell Dogma, Book, Events | No Comments »

The Fight

Wednesday, November 25th, 2009

It all started at the beginning of October, when Verizon launched the “There’s a Map for that” ad. Not long after, AT&T responded with a(n unsuccessful) lawsuit, and ads of their own. And, as if AT&T alone wasn’t enough of a sparring partner, later in October Verizon introduced it’s Android plans with an ad directly aimed at Apple’s iPhone. Of course, Apple has engaged in the fight.

So, what should we at Sprint think of this? On one hand, it’s great to have two Big Bell Dogmatists slugging it out, spending all their energy dragging each other down in the public arena. It makes both of them look ugly.

But, on the other hand, is it good for us to just sit on the sidelines? Sure, we enjoy the same benefits over AT&T and the iPhone that Verizon is making a big stink about, but how many people know that? Our 3G map is much bigger than AT&T’s (looks a lot like Verizon’s), we’re regularly recognized for having the most reliable and fastest 3G network, and of course, we’re the first with 4G. And like Verizon, we have two great Android devices, the HTC Hero and the Samsung Moment.

So what do you think? Is Sprint best served by sitting on the sidelines as Verizon dukes it out with AT&T and Apple, or would we do better by jumping in the ring ourselves?

Posted in Big Bell Dogma, Book | 11 Comments »

Does 99 cents work for location-based apps?

Monday, November 23rd, 2009

Last week I was a judge in the Location category at Under the Radar. I was really impressed with the event as a whole, the quality of participating companies, and specifically all four of the companies in the Location category. I was most encouraged by a company called SimpleGeo. They’ve developed a cloud-based service providing location infrastructure for mobile apps. What I like about this is that it accelerates innovation, which accelerates the mobility revolution, which is great for all of us in the mobile ecosystem (except maybe those that have fixed assets at the heart of their economic engine, or those lacking a clear path to support the kinds of bandwidth the mobility revolution will drive…).

But, as much as I liked the company and the service, their pricing model really raised some issues for me. They have three tiers of service. They have a free service, a $399/month service, and a $2,499/month service. The breakpoints are driven by the volume of queries, and Matt explained that the free service could support an application with up to 5,000 or maybe even 10,000 users. I asked if that pricing would support someone with a 99 cent app, and Matt explained that the pricing was based on a tremendous cost savings compared to a company operating their own location infrastructure rather than using SimpleGeo’s cloud-based services.

So, let’s do some math. Taking the middle of the range number, let’s say that when we get to having 7500 users, we’ll need to step up to the $399/month SimpleGeo service. That works out to $4,788 per year in SimpleGeo services. If I charged 99 cents for the app (and I got to keep 70% of that price), then my total revenue from app sales is $5,197.50, leaving $409.50 to cover all of my other costs (assuming that my users stick with the app for no longer than a year).

Bottom line, I’m not sure that sophisticated location-based apps work at 99 cents, and I don’t think the problem is SimpleGeo’s pricing model – the alternatives are likely more expensive.

What do you think?

Posted in Book, Events | 2 Comments »

Carrier Speed vs. Valley Speed

Friday, November 13th, 2009

Last week, I participated in the Open Mobile Summit in San Francisco. It was a very impressive event. My favorite session was probably the keynote panel on day 2 with Walt Mossberg (The Wall Street Journal) moderating (sort of), John Donovan (AT&T), Kevin Lynch (Adobe), Michael Abbott (Palm), and Vint Cerf (Google). It was a great demonstration of “Big Bell Dogma” vs. Internet innovation.

My panel was the “Fireside chat: Future of the carrier deck.” Again, I think the contrasts in perspective and approach were pretty apparent.

For my intro, I explained that I think there are three fundamental truths that shape how we’re thinking about the deck and app stores:

  1. Customers just want to do what they want to do, when they want and where they want. We need to let that happen.
  2. App developers just want to get their great ideas to market as fast as
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    possible. Carriers can’t figure out what will succeed and what won’t, we need to let the market decide.

  3. However, mobile operators still hold a unique place in the ecosystem. We can take steps that create value for customers and developers.

With those truths in mind, we’re focused on what one of my teammates (Brian Huey) phrased as “Do you want innovation to happen at carrier speed or valley speed?” We want it to happen at valley speed, which means that the carriers need to stop being a chokepoint and instead focus on how to add value without slowing down the process of bringing innovation to market. We don’t add value by trying to determine which apps are worthy of appearing in our “stores.” We do add some value by allowing customers to choose to pay for apps and content through their wireless bill. We do add some value by helping with marketing so that customers don’t have to wade through an endless supply of similar apps. We really add value when we open up our assets (network, location, etc.) so that developers can expand their creative limits.

Carriers are great at operating network assets, and we manage an existing relationship with the end customer. We aren’t great at writing consumer software or developing consumer-facing interfaces. In those areas, we need to get out of the way and let the highly capable players (startups and established players) who specialize in those areas to do what they’re great at. (Needless to say, not all carriers share this perspective.)

In the spirit of getting out of the way, the week before OMS, at our developers conference Sprint announced three pretty significant changes in how we view the carrier deck and app stores:

  1. We don’t believe that carriers are the best at operating app stores. Since Palm’s App Catalog and the Android Market are both well designed app stores, we’ve never included our carrier deck on the Palm Pre (and soon Pixi) nor on any of the Android devices we’ve launched – and we never will. However, as Microsoft’s Windows Marketplace and RIM’s Blackberry App World are establishing similar credibility, we will be removing our deck from Windows Mobile and Blackberry devices. There’s no need to confuse customers with multiple ways to get apps and there’s no need to force developers to submit to multiple stores.
  2. Similarly, feature phone users (those that don’t have a smartphone like Android, Palm, or Blackberry) still need an easy way to find, buy, and download apps and content. This is where the carrier deck still makes sense. But we don’t believe that the carrier is the best to run this app store, nor
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    to figure out where it can go in the future. So, we are issuing an RFP to outsource the operation of our deck to someone who specializes in app stores, can do it faster and better for developers and customers, and can take it all to the next level.

  3. We also know that there are already lots of applications out there that haven’t bothered fighting through the gauntlet of carrier approvals. Instead, they’re distributing their apps through independent mobile app stores. Probably the best of these (at least the most successful) is GetJar. At our developer conference we also announced that we’re opening up our deck so that when our customers search in our deck, they’ll also be able to find and download everything that’s in GetJar.

I’d love to hear what you think? Is Sprint heading in the right direction, or should carriers continue to insert themselves more in the process? Please leave your comments below.

Posted in Apps, Book, Carriers, Events | 6 Comments »

Enterprise Mobility Matters

Tuesday, November 10th, 2009

Philippe Winthrop, an analyst with Strategy Analytics, recently interviewed me for his blog “Enterprise Mobility Matters.” I believe the discussion reflects where the industry is heading and particularly the opportunities ahead of us in the Business space. If these are topics of interest to you, you may enjoy

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reading it.

To give you a sense, here’s my answer to the first question:

Enterprise Mobility Matters: Hi Russ. Thanks for taking the time to chat with me today. I know you must be swamped, so let’s get to it. Where do you see the greatest opportunity for growth in enterprise mobility?

Russ McGuire: I think the magnitude of opportunities almost can’t be fathomed. I believe we are on the early side of the Mobility Revolution, which will have as big of an impact on how business is conducted as the Internet Revolution and the PC Revolution. I believe the outcome of the Mobility Revolution is that mobility becomes integrated into virtually every product that has a power source, into every service that businesses offer, and into every process that exists within business – just as microprocessors/PCs and IP connectivity have been completely integrated into businesses. This revolution will redefine how we, as individuals, interact with the world and how businesses compete across industries. Bottom line, it’s huge.

I would specifically point to three areas of huge growth within the enterprise space. The first is pure bandwidth – mobile broadband. Mostly today that means 3G data cards, but 4G is coming on very rapidly. The second area of huge growth is in mobile business applications – software that runs on the handset that employees use to do their jobs. The third area is in machine-to-machine – the embedding of wireless connectivity into devices that businesses use to more efficiently and effectively operate core processes.

You can read the entire interview here.

Posted in Apps, Beyond the Phone, Book | 1 Comment »

What About Android?

Sunday, November 1st, 2009

For the November issue of Christian Computing Magazine, I’ve written the below column. As I’ve noted before, the readers of this publication tend to be less aware of mobile technologies and trends than the readers of this blog and are focused on getting up to speed on new technologies and how they can apply to their churches. Even so, I thought y’all might find this article interesting.

For the past couple of years, the Apple iPhone has dominated the attention of mobile phone commentators and enthusiasts. And for good reason. The iPhone redefined how a mobile device can be used to access the Internet and how it can support a vibrant developer community. The downside, as many iPhone fans have lamented, is that the device is only available on one of the four nationwide mobile networks in the U.S., and similarly has been exclusive on a single carrier’s network in most countries around the world.

So, are there any competitors to the iPhone emerging?

The clear answer is yes – in the form of Android. According to the Open Handset Alliance (OHA) website, “Android™ delivers a complete set of software for mobile devices: an operating system, middleware and key mobile applications.” The OHA “is a group of 47 technology and mobile companies who have come together to accelerate innovation in mobile and offer consumers a richer, less expensive, and better mobile experience. Together [they] have developed Android™, the first complete, open, and free mobile platform.”

The prime mover behind the OHA is Google. The Internet giant contributed most of the software in Android. But unlike the iPhone, Android is not controlled by a single company and is not constrained to a narrow set of products exclusively running on a single carrier’s network.

I am currently using the Samsung Moment, Sprint’s second Android handset (the first was the HTC Hero). T-Mobile also already has two Android handsets on the market, the MyTouch and the G1, both from HTC. Verizon is about to introduce their first Android handset, the Motorola Droid. AT&T is also expected to introduce an Android handset in 2010.

That last paragraph speaks volumes to the difference between the Apple approach and the Android approach. Just in the U.S., there will soon be at least five different Android handset models (Moment, Hero, MyTouch, G1, and Droid) from three different major manufacturers (Samsung, Motorola, and HTC) running on three different wireless carriers (Sprint, T-Mobile, and Verizon). Meanwhile, there are only two models (3G and 3Gs) of iPhones, from one manufacturer (Apple) running on one wireless carrier (AT&T).

For anyone who has been around technology for long, it’s not hard to see the parallels to the PC revolution. Apple was the early leader in personal computers with the Apple II, followed by the Apple IIe. Apple really moved the PC industry forward with the ground breaking Macintosh, which introduced a truly graphical mouse-based user interface. Many would still argue that the Macintosh operating environment stands head and shoulders above its Windows-based competitors. However, for the most part, Apple refused to enable other companies to manufacture Macintosh computers, believing that a vertically integrated business model was critical for producing the highest quality product. In large part, I think they’re right.

However, Microsoft worked with Intel to enable lots of companies to produce DOS and then Windows-based computers. Companies like Dell and Compaq flourished and Windows-based PC sales quickly surpassed Macintosh sales. The Mac is still a profitable business for Apple, but primarily serves a niche market.

Most importantly, software developers needed to decide whether to invest their time in writing for Microsoft or Apple operating systems. Before long, it became clear that Windows was the larger market opportunity, usually creating a greater revenue opportunity for roughly the same level of investment. Bill Gates refers to it as a virtuous cycle – the more Microsoft-based PCs that sold, the more attractive the PC was for developers. The more developers wrote software for Microsoft-based PCs, the more attractive the PC was for computer buyers.

Apple appears to be repeating the same set of decisions in the mobile space, and Android appears positioned to be the beneficiary of those decisions. Flurry Analytics, a mobile application analytics company, reported a 94% increase in application project starts by Android developers between September and October of this year. In other words, the number of applications being developed for Android nearly doubled in one month.

Already, there are over 10,000 applications available for Android. That’s only about one-tenth as many as the iPhone, but still more than any single individual could ever comprehend. And I believe it won’t be long before the gap closes and there are more Android apps than iPhone apps.

I’m sure that the iPhone will always have its die-hard loyal fans, and I expect that it will continue to be a very profitable business for Apple. But I also believe that the iPhone’s days are numbered as the leader in the smartphone space. As already noted, all wireless carriers are looking to Android to be an important part of their mobile device portfolio, and Verizon is being especially caustic in their attack of the iPhone with their “iDon’t” ads.

The types of folks that fill our pews every Sunday are starting to wake up to the benefits of Android. What does it mean for our technology ministries?

If you’ve been pursuing any iPhone-centric mobile initiatives, I recommend you pause and consider what will happen when the iPhone becomes a niche solution compared to Android’s market position. How much of what you’re developing is directly applicable to Android? (Web pages optimized for the iPhone may work perfectly for Android since both devices use Webkit-based browsers.) How much can easily be repurposed for Android? And how much is completely focused on the iPhone? (iPhone app development is primarily in Objective-C, while Android is primarily Java and XML.)

It will likely be at least a year (and probably even longer) before Android becomes more dominant than the iPhone. Given that timeframe, it may make sense to continue investing in iPhone-specific development. Or it might not.

Finally, start thinking about what will become possible if Android becomes as common for mobile devices as Windows has for PCs. Notice I still used the word “if” in that sentence, so don’t rush off and act rashly. Still, start considering what will become possible, and identifying the foundational building blocks you can start laying to prepare for an Android future. Are you ready for Java development? Have you started using Android yourself?

Act wisely! Vive le revolution!

Posted in Book, Devices | 1 Comment »

New CC Mag Article: Using Smartphones to Serve?

Friday, October 30th, 2009

Two months ago I teed up two questions in a column for Christian Computing Magazine:

In this month’s column I seek to answer the second of those questions.

Posted in Book, Uses | No Comments »

A Revolutionary Tale

Wednesday, October 21st, 2009

In many of my recent talks, I’ve been telling a story about the impact of the microprocessor revolution on a specific business transaction. I believe this story paints a picture of the benefits in how we personally interact with the world and how businesses operate that can come from a technology revolution. I believe the mobility revolution is having the same kinds of impact – and will even more as it continues to unfold.

Let me share the story here:

If you’re old enough, think back to 1979 and imagine buying gas and paying for it with a credit card.

The first “a-ha” difference you’ll remember is that you might not have pumped your own gas, but that’s not the focus of my story. It really starts when it comes time to pay and you need to walk into the dark little office with your credit card. The attendant takes your card, grabs this brick like device, slaps your card down in it, puts in a paper form (in triplicate, with two carbon sheets in between) and (ka-chunka, ka-chunka) manually makes an imprint of your card. He fills in the amount of the sale and has you sign. He gives you one copy (and maybe the carbons, if you’re worried about someone stealing your credit card number), and you’re on your way.

Having taken that mental time travel, it’s now easy for you to understand the huge improvement in the customer experience that came from microprocessors being built into the gas pumps. Today, we “pay at the pump” and are immediately on our way as soon as our tank is full. I’m sure you can remember, like I can, after first experiencing “pay at the pump”, driving into a gas station, realizing that they didn’t have pay at the pump, and driving off to find a station that did. The customer experience improvement was so great that it changed consumer behavior and forced virtually all gas stations to follow suit. In short, the microprocessor revolution changed the rules of competition in this industry.

But, I’ve only told you a third of the story so far.

The second part of the story begins when the customer walks out of the office. The gas station attendant takes the two remaining copies of the credit card transaction and files them away. Sometime within the next week, the gas station owner/manager will bundle up all the bank copies of those transactions and send them off to their merchant bank for processing and payment. About a week later, those payments would be credited to the station’s account.

Today, the electronic transaction dramatically accelerates the payment cycle, radically changing the cash flow cycle for the small business owner and enabling her to think differently about her business.

The third part of the story begins when those credit card transactions arrived at the processing center. The merchant bank would have rooms full of clerks, trying to decipher the greasy fingered handwriting of thousands of 16 year old gas station attendants from across the country, and entering the data into mainframe-based systems.

The microprocessor revolution radically changed the core processes, systems, and organizational structures around which this credit card processing business operated. The automated systems radically changed the risk profile of the business (does anyone remember the books full of printed lists of canceled credit cards?) and, of course, the cash flow and transaction volumes accelerated dramatically. With the automation enabled by the microprocessor came significant increases in credit card use, not only at gas stations, but everywhere people spent money.

So, one simple transaction, impacted by a technology revolution, dramatically improves our personal interaction with the world, improves the cash flow for a small business owner, and redefines an entire industry.

Look around your industry for the opportunities to drive the same level (or greater) impact of the mobility revolution. What do you see?

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