Market Requirements Doc - defunct startup

7/27/2019 Market Requirements Doc - defunct startup

1/29

Market Requirements Document K!HA SOFTWARE 2008

Product: Galapagos version 1.0 (Kiha Rev 1)

Author: Sr. PM | Ned Hayes

MRD Executive Summary

Smartphones are growth category: forecast of greater than 30% CAGR thru 2012, outpacingmobile market. Smartphone shipments expected to reach 150-241 million units by 2009.

TAM - Interaction Workers are majority of new jobs in the United States. Interaction Workersare driving smartphone growth, with trends in heavy mobile device usage, travel, and meetings.

o Enterprise Interaction Workers segment is not buying smartphones heavily any more.o SMB Interaction Workers strong opportunity 44% SMBs investing in smartphones

Go to Market Purchases: Individual people SMB and Enterprise workers primarily arebuying smartphones for their own (personal/business) use. The point of sale is to the individual,

not the company(iPhone 3G, new Blackberry prosumer and HTC devices aimed here too.)

o IT must absorb new devices purchased by individuals: not strong gate-keeper anymore. Target Segments Interaction Workers break out into five target customer segments:

Tech Omnivores, Productive Pros, Connectors, Mobile Veterans, SMS Addicts

1) Tech Omnivores: use many mobile devices, blog, UGC, high income, lots of travel

2) Productive Pros: 94% buy their own devices, info tech has real productive value

3) Connectors: older, not as productive, but lots of communication & often online

4) Mobile Veterans: used to be productive pros, often online, mobile device angst

5) SMS Addicts: use many entertainment features, text often, highly communicate

Three Mobile Device Functions in the market: Communication, Entertainment, Information. Information management is vital function (based on Kiha user interviews & market research).

Information is notaddressed well by current mobile devices desktop metaphor still there.

Market Need: Information-Centric Smartphone Information processing on the smartphone,esp. of PIM info, along with linked Communication, Logistics, and Location functions.

Market Opportunity for Kiha includes TAM of 24M, narrowed to 1.2M IW workers who needInformation Functions, are dissatisfied with their current smartphone and upgrade annually.

Revenue Forecast: Initial revenue forecast with a 50% penetration rate aimed at only the toptwo of these defined sub-segments (with a $150 per unit profit) provides for a revenue

projection of $53M / first year.

Go to Market: Channel Approaches and Go to Market Options emphasize VAR options as best. Competition & Market Position:Incomplete as of June 2008. Update coming by January, 2009.


2/29

K i h a S o f t w a r e C o n f i d e n t i a l | D r a f t 2 M R D | 2

State of the Market: Mobile Market and Smartphones

The mobile market was on fire. From 2001 through 2007, global shipments of mobile telephones

grew at a 20% CAGR.1 In the U.S., mobile subscribers increased eight-fold to 225 million from 34 million.2

Today, over 3 billion people worldwide have mobile service, and Nokia continues to boast of a million

handset sales per day in the developing world.3

Yet in the developed world, the mobile device

market seems to have already matured. Basic cellphones

have flooded developed nations. In the first world,

estimations for market penetration rates hover at an

incredibly high 90% in some countries penetration

even exceeds 100%, meaning there are more phones

than people.4 In the coming years, the CAGR in these

areas is expected to plummet to 5.8%,5 notably in North

America and Europe, where recent economic uncertaintyand some degree of market saturation has already led to

stagnant year over year growth for mobile devices.6

Mobile phones were once a premium sale, but

they are now commoditized. In the developed world,

this dilemma is perpetuated by handset manufacturers who

have become so desperate to become the phone of the

month that they are willing to devalue even their own new hardware and software products in order to

land a carrier relationship.7 The smartphone category thus represents one of the remaining premium

hardware sales opportunities in a market moving rapidly into a completely services-driven revenue

model.8 In the developed world, increasing data ARPU and handset upgrades are now driving

smartphone market growth.9

In fact, smartphones are already outpacing every other mobile segment in terms of revenue and

volume growth. The sale of more data-capable smartphones has become one of the primary continuing

sources of mobile revenue. The smartphone category is forecasted to grow at greater than 30% CAGR

each year thru 2012, outpacing the market for commoditized mobile phones, which will only grow at 8%

in that time period.10 The smartphone category is

the fastest accelerating category in the mobile space.

Worldwide smartphone shipments are expected to

reach between 150-241 million units by 2009.11 Recent

raw sales numbers reinforce this trend in 2007,

vendors sold 122 million smartphones.12 These numbers

have already doubled since 2006, when only 72M

handsets were smartphones.13 The smartphone

category also provides for one of the few remaining

possibilities for a high-margin mobile product play.

Figure 1: Worldwide Mobile Handset Shipments -

SMARTPHONES GROWSource: ABI Research, 2008

Figure 2 Smartphone Shipments, Worldwide (IDC, Wired)


3/29


Mobile Workers: Smartphone Growth Driver

Driving the growth of the smartphone segment are changes in the way workers use mobile

devices. Formerly leisure curiosities and personal communication devices, mobile phones have now

been fully embraced by business as professional productivity tools. Businesses both large and small have

capitalized on the capabilities of smartphones by allowing users to access online information includingproprietary e-mail and internal data on their mobile devices.

This sea change has moved beyond the enterprise. Nine out of ten small and medium businesses

(SMBs) now enable employees to check email via smartphones and 64% use mobile devices of all classes

(includes laptops) for remote computing.14 The explosion of business information on mobile devices

means that by 2009 there will be nearly 900 million mobile workers (27% of the global workforce),

which combines both enterprise and SMB numbers.15 In the United States, this trend has been extended

by the increasingly global nature of North American corporations, who now emphasize ancillary

organizations in the developed and developing world. Even in SMB organizations, many American

workers must now communicate with far-flung subsidiaries, partners and vendors around the world.

Total Available Market: Interaction Workers

In the past, the majority of the global workforce made things, worked to change one material into

another (such as oil drilling), or engaged in financial transactions that had a straightforward and well-

defined customer (such as retail selling). Routine jobs that do not require workers to master complex

tasks, learn new skills or live in ambiguity are increasingly relics of the 20th century.16 These routine jobs

no longer drive the engine of the economy.

Companies today specialize in core activities. The primary focus of the new workforce is to

interact with other companies, customers, and suppliers. Thus, over the last ten years, the force behindour economic engine has moved away from routine jobs to interaction jobs 70% of the new jobs

created between 1998 and 2004 were in the interaction space. 17 (Figure 3)

Interaction Workers are expected to do

different things than routine workers. This is the

portion of the economy in which people are hired to

communicate to distributed teams, solve complex

and ambiguous problems and design products in

collaborative groups. Today, the largest segment of

the labor pool in the United States 40% of theworkforceare Interaction Workers.

Interaction Workers attend many meetings,

manage complex schedules, handle many

communications per day and make decisions on the

fly.18 Over half of mobile workers now use non-voice

data activities, and want to manipulate information with advanced smartphone capabilities.19

70%

30%

New Jobs in U.S. 1998-2004

Interaction Jobs

Routine Jobs

Figure 3: New Jobs in the United States

Source: US Dept of Labor Stats, McKinsey Analysis, 2005-2007


4/29


Interaction Workers are constantly on the move, often multitasking, and interacting in very social

situations. The information they seek is the most valuable commodity and keeping them connected is

the ultimate goal.20

One might also call this expanding part of the business ecosystem the meeting economy.

How Work Changed

Interaction Workers function in an

environment that is far from routine, and takes

full advantage of the general business shift

towards more agile, decentralized business

functions that creates a well-traveled, mobile-

device using, problem-solving workforce.

Interaction Workers need a mobile device that

acts as an assistant. Interaction Workers

especially need a smartphone as they are called

increasingly to rely upon on complex IT

systems, fountains of information and

individualized software applications to do their

jobs. Business productivity has become a

primary driver for the smartphone segment

because the global workforce underwent a

comprehensive re-tooling in the last decade. The economic and technology landscape has been re-

shaped under the force of these 21st century business trends:21(Figure 4)

1) Interaction Workers are increasingly mobile. Interaction Workers rely on broadband wireless tobe productive.

2) Distributed teams: Companies must now support a number of branch locations, outsourcingrelationships. Interaction Workers are no longer in the traditional headquarters location, and

connect with workers in many locations.

3) Applications are becoming increasingly complex. A large organization must now supporthundreds if not thousands of unique apps, with disparate data types flowing in and out.

Furthermore, new app types like software-as-a-service (SaaS) enable Interaction Workers to

access information anywhere, and force IT to recalibrate support.22

In order to compete and succeed in business activity, Interaction Workers in the U.S. have been forcedby market pressures to be mobile, and to use mobility to access data, make decisions and respond to

communications while traveling. These new work requirements oftravel, mobilityandIT complexity

have been embraced by Interaction Workers (IW) as attributes that make them more nimble, more

productive and more knowledgeable.

There are two employment scenarios for this worker:

A) IW in the Enterprise, and B) IW in Small/Medium Businesses.

Interaction

Workers in2008 .

Mobility

TravelIT & Info

Complexity

Figure 4 Interaction Worker Environment


5/29


6/29


percent of its workforce working from home one or more days per week. In addition, 90% of SMBs

reported having one or more employees traveling on business at least one day per week. The SMB

workforce is becoming more mobile and that trend is shaping technology spending plans for companies

with 500 or fewer employees. Interaction Worker smartphone need and continued growth seems to be

in SMBs. 29 CompTIA observes: There is a sizeable market opportunity in SMB businesses associated

with productivity-enhancing solutions in smart phones and mobile applications.30

Many small and midsize businesses have found high-value ways to deploy mobile devices well

beyond phone, voicemail, and Web access. In contrast to enterprise organization restrictions, more than

half of SMBs allow employees to access applications and business data via mobile devices. As previously

observed, 9 out of 10 SMB companies enable employees to check email via mobile devices and 64% use

mobile devices for remote computing. In fact, more than half of SMBs are now specifically asking

employees to access applications and business data via mobile devices.31

Small businesses also take full advantage of the characteristic elements of the Interaction

Worker: they use mobility and information access as weapons to compete in the enterprise space.

Smaller companies find that sheer mobility has become a key advantage rather than more

traditional goals such as increased sales or revenue.32 Yet these traditional goals are on the horizon

31% of companies with a bigger-than-average wireless data and network investment report that

mobility yields increased sales or revenue, compared to just 17% of firms with a below-average wireless

network deployment. In other words, greater usage leads to greater returns.33

However, the SMB market is a varied and hard-to-understand market, and the road to reaching

the particular business needs of this segment is littered with broken business models. Instead, the data

here demonstrates that any business seeking to sell a new smartphone device must keep in mind that

those who purchase their own devices tend to work for smaller organizations, and thus have more

power in their device purchase and their use of a device for personal productivity. It is thus vital to note

that in selling smartphones to SMB Interaction Workers themselves, we do not necessarily need to sell

to SMB businesses.

Go to Market Considerations: Individuals Purchase Smartphones

The change in workplace dynamics has also changed who is buying the smartphone. Although

corporate purchasing at the SMB level continues to increase, IDC points out that the largest volume of

smartphone devices will be purchased by individuals.

34

Mobile workers are increasingly willing to payout of their own pocket for these types ofadvanced features on converged devices. Kiha must sell to

individuals, because regardless of whether a smartphone is used for productivity in an enterprise or if it

is used within a smaller organization, the smartphone sale is made to individual buyers. The fact of the

individual purchase also changes the dynamic of the mobile device sale, and the way devices are

positioned and acquired.35


7/29


Task automation, enterprise resource planning or supply chain management is no longer the

point of business technology purchases made by this group. Yet because of the familiarity of Interaction

Workers with customized and highly complex IT solutions, it is impossible to succeed with a standard

one-size-fits-all solution set. As McKinsey notes, the Interaction Worker pool is both the largest

growth sector in our economy, yet it is also the least commoditized, and the hardest to understand or to

manage. 36 This makes it difficult to sell off-the-shelf technology to Interaction Workers.

Today, individuals are buying smartphones the IT department be damned.37 Increasingly, the

corporate firewall has become a minor impediment for individuals who buy the phones and devices they

want, and decides whether or not they will sync their work information officially, or in many cases,

unofficially. Interaction Workers move nimbly between enterprise-class organizations and small

companies, so the particular focus on a corporate environment is less important to our sale than a focus

on usage and individualistic preference within the smartphone domain. Understanding this user

behavior is of paramount importance.

Kiha plans to target those who would find a next generation smartphone device most useful,

and would also be the most likely to purchase the device themselves.

Target Market: Mobile Worker Segments

Usage patterns are varied within the large and expanding group of North American Interaction

Workers. There exist a number of sub-segments that use technology in a limited fashion, along with

segments that use technology but are uncomfortable or unfamiliar with advanced mobile device

features. These segments that have been named such terms as Inexperienced Experimenters,

Connected but Hassled, Indifferents and even Off the Network (by choice) constitute 60% of the

American Interaction Worker category. 38 These non-mobile-using or non technical workers are not

Kihas customer for our first release.

(Figure 6)

The remaining 40% of the

Interaction Worker category can

be grouped into elite tech user

segments who own multiple mobile

devices, are relatively young, and

have much disposable income. Thetop tier targets here are categorized

as Tech Omnivores and

Productivity Pros. Second tier

targets are Connectors, Mobile

Veterans and SMS Addicts.39


8/29


Typology of Interaction WorkersInformation & Communication Tech UsersElite Tech User segments only

Percentage of U.S.

Interaction Workers Median Age Avg # of Devices

Tech Omnivores 8% 28 6

Productivity Pros 8% 40 4.3

Connectors 7% 38 5

Mobile Veterans 7% 40 4.1

SMS Addicts 10% 32 3.9

A Typology of Information and Communication Technology Users

(PEW Internet & American Life Project, May 7, 2007)

These elite groups of mobile-savvy Interaction Workers are the closest near-term target market

for a Kiha smartphone. The first closest opportunity is the mobile tech aficionados who use online

content extensively a group also known as Tech Omnivores. The second closest opportunity are the

Productivity Pros a segment of Interaction Workers who use their mobile device as a primary

professional asset. Tech Omnivores and Productivity Pros are top-tier targets for Kiha.40

The next target segments can be found in a remaining set of customers who regularly use

mobile devices for work, but are not as addicted or entranced by mobile productivity. Together,

these customers constitute 32% of American Interaction Workers. Although they are not as heavy users

of mobile data and services as Tech Omnivores or Productivity Pros, these latter segments do tend to all

be heavy, pragmatic tech adopters they use gadgets to keep up with social networks or be productive

at work, using mobile devices for texting, communication, e-mail, and online data access.41


9/29


Top Target Segments: Tech Omnivores, Productivity Pros

Tech Omnivores own an average of 6 technology devices, which they use voraciously for e-mail

communication, participation in online communities both at work and home. They blog and they

retrieve, process, and publish a lot of work information. Members of this group are confident in their

ability to manage the flow of electronic information. Indeed, their smartphones are at the center of howthey connect to their friends and express themselves to the world. Most Tech Omnivores are in their

late twenties and early thirties. Nearly all have high-speed connections at home and work. Tech

Omnivores are Web 2.0 devotees: 82% of Tech Omnivores have undertaken at least some user-

generated content activity, from posting online comments to remixing online content or blogging. They

are engaged with online content for both work and pleasure, and their mobile devices keep them

constantly connected. Tech Omnivores tend to have both a Blackberry (or 2) along with another couple

smartphones, like the iPhone or a Windows Mobile device.

Seventy percent of this group is male. Wages and disposable income are very high for the Tech

Omnivore segment: 41% earn over $75K / year. This is the highest income for any segment except for

Connectors.42

Productivity Pros are older than Tech Omnivores, and they dont have as much fun with

mobility. Instead, they emphasize the use of digital gadgets for professional advancement: they use

mobility to get them information they need, when they need it. Productivity Pros are strong believers

that Internet information and mobile devices give them a competitive edge they get ahead in their

jobs and in family life and in overall personal productivity by being mobile, and by staying connected.

Productivity Pros also like the communicative benefits to information technology; 81% say their mobile

devices help a lot in keeping in touch with family and friends (versus a 59% average). Their use of laptop

computers is 20 percentage points higher than the average American worker, and fully 94% bought their

own mobile device. Over half of them already go online with their phone (59%). Productivity Pros also

have highly positive views on how the internet helps them with their lives: 83% agree that information

technology helps them be more productive (average response is only 33%).

The Productivity Pro is a prime example of an Interaction Worker seeking to improve their own

productivity and performance in communication-intensive environments, so technology that they buy

must have a personal dimension.43 They want technology to complement rather than replace them. The

technology of choice for must provide real personal productivity value, like the Blackberry does today.44

In fact, this task-oriented approach to information technology crowds out deep participation in

the online commons or user-generated content. In fact, only 29% go online just for fun. So they dontreally produce much user-generated content at the present time. (If UGC had proven work or

productivity benefits, they would embrace these online technologies as well.) Productivity enhancers

are consumers and users of business information, not generators of social blarney. They are somewhat

older than Tech Omnivores and the Productivity Pros are the most likely to have a college degree of all

the segments (47% have a BA/BS). This group is just as likely to be male as to be female: 50% are male,

50% female. Wages are high in this segment: 37% earn over $75K / year.45


10/29


Second-Tier Target Segments

Connectors are 7% of the American Interaction Worker population. They tend to be as old as

Productivity Pros, but are not as devoted to productivity on their mobile devices. In fact, they usually have a few

less digital devices than Tech Omnivores or Productivity Pros. Nonetheless, Connectors rate above most Americans

on the number of mobile devices and participation in online activities for work and pleasure. Fully 93% go online

on the typical day. However, this group really emphasizes tools that enable both one-to-one and one-to-many

communications. Some 57% have used instant messaging, and a fifth (22%) uses it on a typical day. Half have used

the text messaging capability on their cell phones. Tech Omnivores are online more and blog more, but it is worth

noting that 15% of Connectors have their own blogs and 24% have their own web pages, figures that are twice the

average (and well above the Productivity Pros).46

Connectors also buy their own devices that help them connect with other people and engage with co-

workers, family, and friends (65% have self-purchased laptop computers twice the American average).

Connectors are a little more likely to be female, and they can purchase laptops and high-end mobile devices

because their wages are the highest of any group: 44% earn over $75K / year.

Mobile Veterans may have once been Productivity Pros, but they have now become a less productive,less positive segment. They are also 8% of the Interaction Worker population, and they are the same age (late 30s,

early 40s). Most are well-educated, financially comfortable men who have bought nearly every generation of

mobile device for the past 10 years. Just one fifth (20%) of Mobile Veterans think that online information make

them more productive anymore; this is less than a third of the figures recorded for Tech Omnivores and

Connectors. This may be because they cannot always get to the information they require for work, and they often

create complex workarounds.

Today, few of these Mobile Veterans like the mobile devices they use for work. Although they have

laptops (92%) and are always online with their broadband connections (90%), their use of the Internet is a

worrisome necessity to them rather than an embrace of productive pleasure. Although they value Internet

connectivity 89% pass free time onlinethey dont embrace new mobile devices anymore, and just 1/3 ofMobile Veterans would find it hard to give up their current mobile phone.

SMS Addicts are the 10% of the Interaction Worker group that are strongly attached to their mobile

phones for personal and professional connections. They are the second wave of younger technology adopters who

use mobile devices primarily for texting, communication and entertainment. Although many do go online regularly,

they are absolutely wedded to their mobile devices. SMS Addict group members have cell phones that are chock

full of features, from text messaging to gaming: 88% have a cell phone that can play a game, 72% surf the Net from

their phones, and 94% send and receive text messages on their phones. More than half (55%) would find it very

hard to do without their phones. This segment often grows into the Connector group as they take on increasing

personal and work responsibilities. The really dedicated members of this group become Tech Omnivores.

But SMS Addicts do not really view information technology and mobility as enhancing their productivity or

personal efficiency. They do not personally purchase their own laptops (only 33% do) and do not go online (only

53% on average) from their desktop or laptop computers. Yet they like how technology connects them to

colleagues and friends (74%) This relatively young (median age is 32) group has a slight majority of men (52%) and

sizable percentages of African Americans (21%) and English-speaking Hispanics (14%). This group is the poorest

and least educated of our mobile-savvy segments. Only 19% have a college degree, and only 21% earn better than

$75K / year.


11/29


Product Category: Information Assistant

Mobile Device Functions

Interaction Workers tend to

segment their use of mobile devicefunctions into three areas:

communication, information and

entertainment.47

(Figure 7)

As can be seen in the diagram to the

right, the target segments weve

examined can be categorized into

these functional categories with

ease with the exception of the

Tech Omnivores (who buy and use

many devices for many purposes).

Workers in the Connectors

segment communicate with colleagues,

vendors, and friends and this includes voice, texting, and e-mail modes of communication. The SMS

Addicts also communicate, but they predominantly view their usage of a device as entertainment-

focused and ancillary activities such as game-playing, music and video is important to this segment.

Finally, Productivity Pros want to receive, parse, and respond to information on their mobile devices.

Kiha User Interviews with a diverse cross-section of smartphone users including many

Interaction Workers provide validation for the fact that although many mobile devices attempt to

deliver the basics of all functional areas, most users predominantly emphasize one type of function.

For example, although a Blackberry Curve includes an MP3 player and a Web browser,

Connectors use the device for communication. SMS Addicts emphasize entertainment, and thus use

Sidekicks or purchase a separate iPod. Productivity Pros, Mobile Veterans, and Tech Omnivores

would like to use Information features.

Functional Use Target Segments

The top two segments of Tech Omnivores and Productivity Pros both emphasize

Information activities on their mobile devices, as do Mobile Veterans, as seen in the Functional Use

charts (Next Page Figures 8, 9, 10, 11, 12)

Figure 7: Mobile Device Functions & Target SegmentsSource: Kiha Analysis, Diagram Concept from MikeMace.com


12/29


SMS

Addicts

Functional Use by Interaction Worker Segment

Source: Kiha User Interviews, Ned Hayes April, May, June 2008

Connectors

Communication Information Entertainment Other

Tech

Omnivores

Productivity

Pros

Figure 8, 9, 10, 11, 12 Functional Use by Interaction SegmentSource: Kiha Analysis, User Interviews, April, May, June 2008

Mobile

Veterans


13/29


The Missing Function Information

Today, there are a number

of functions that exist on

smartphones to serve customers

interested in Communication. Thereare also a number of features

provided in the Entertainment area.

However, the only truly Information-

focused features are old-school

hold-overs from the Windows folder

environment, e-mail filing

hierarchies or online searching

facilities. There are no current

devices that are specifically targeted

at delivering value in theInformation quadrant. (Figure 13)

In the past 24-36 months, the Communication and Entertainment functional categories have

had numerous device deliveries. Today, there are many communication-focused devices, from basic

mobile voice phones to more complex devices that put various communication modes all in a single

place, much like the iPhone and the RIM Blackberry. In fact, one could even argue that the

Communication functional area is an overpopulated domain, which would explain many of the device

die-offs in an overpopulated ecosystem serving a defined and mature market with a variety of

messaging and communication options. There are also a variety of sub-segments in the entertainment

area, ranging from game-players like the GameBoy and

PSP to the iPods domination of

the media market and the

Sidekicks text-messaging cross-

over between communication

and entertainment.48

Nokia

smartphones also deliver heavy

Entertainment functions (Nokia

attempted to capitalize on this

success with the failed NGage).Both Communication and

Entertainment are well

established functional

categories with known leaders

(Figure 14). Figure 14: Mobile Devices Deliveries By FunctionSource: Kiha Analysis, MikeMace.com

Figure 13 Sample Device Functions on Smartphones TodaySource: Kiha Analysis, Diagram Concept from MikeMace.com


14/29


The Information function, however, has not been well served since the demise of the non-phone

version of the Palm and the traditional Windows Mobile PocketPC. A smartphone device that provides

powerfully effective information management may be a very valuable mark of seniority, status or

prestige for targeted Interaction Workersand provide the marked deferential differential requiredfor the success of a new device.49

As the Kiha User Interviews demonstrate, Productivity Pros live in a constant flood of

Information processing, and Mobile Veterans would like to be effective with information as well. Both of

these segments have a great and pressing need for better information parsing and availability. Other

segments Tech Omnivores and Connectors need better solutions in Information as well.

Yet in 2008-2009, no device is focused on this area as a primary value. There have been several

classes of device that have lived on the border between communication and information management:

the Palm Treo, SonyEricsson p900 line, and touchscreen Windows Mobile products. Each of these

smartphone devices have touch screens and a lot of information management features, but also

attempt to deliver robust e-mail.50 As of 2008, each of these devices is being outsold in the Interaction

Worker area by the much more communication-specialized RIM Blackberry line. Only the iPhone, among

the newer devices, succeeds in being both an information presentation tool and a communication tool,

yet information collection and presentation works on the iPhone only in terms of Web-browsed

information and Web-siloed information (Traffic, Weather, the like). Even the upcoming iPhone 3G does

not deliver comprehensive Information functions for management of PIM data, and delivers nothing in

office document management, syncing of field notes or other vital information workflows.51

Information needs are not met by the current generation of smartphone devices. Early PDAs did

specifically target information gathering, collation, analysis and some limited publication features, butthe device features were extremely limited, and the market fell apart. Palm and Microsoft early

leaders in this nascent market have now moved on to the communication functions of mobile

devices.52 As a result, information manager innovation has ceased.

Today, Interaction Workers who want Information solutions must invent incredible work-

arounds to find the siloed and information they need and manage that information to be effective both

personally and professionally. Kihas user interviews have included discussions with business-driven

Productivity Pros like Martin and Peter, who log into online apps like Salesforce.com thru their mobile

device to capture information, while our user interviews with home-driven Productivity Pros like

Christine and Ian demonstrate the use of a combination of paper workflows and online sites to find theinformation these users need.53

These frustrating and broken workflows are how Productivity Pros turn into Mobile Veterans.


15/29


Market Opportunity: Total Market, Penetration Rates, Revenue

Kiha plans to deliver essential value in the Information quadrant for the Tech Omnivore, Productive

Pros, Connector, Mobile Veterans and SMS Addict segments. Instead of delivering a broadly defined

device that is all things to all users, Kiha will deliver a very specific tool that meets well articulated

information consumption and processing needs in the smartphone workflow.

The Market Opportunity section currently contains a bottoms-up (customer-centric) outline of the

available market opportunity, both in terms of installed customer base and in terms of revenue

potential. Note that this analysis does not yetinclude a top-down analysis of the overall smartphone

market and what percentage of the growing market Kiha hopes to take. This approach to market

segmentation is in line with recommended practices for an innovative version 1.0 product without

clearly defined competitors and without an existing pool of customers.

(Note thatKihas upcoming Product Requirements Document outlines the precise feature set required for

any smartphone device to meet the needs of these demanding Interaction Worker segments.)

Workforce Segmentation

The entire workforce in the United States, as outlined by

U.S. Census is approximately 152 M in 2008. According to

McKinseys analysis of new and emerging job types,

Interaction Workers constitute 40% of this workforce,

which is 60.8 M individuals. Of workers that fit this broad

definition, 60% apparently do not purchase or use

technology in productive ways to facilitate their

workflows and/or do not conduct their meetings with thebenefit of smartphone or mobile devices as primary productive or personal tools.54 In brief, over 36 M of

these IW workers are considered non-technical for our purposes. There are thus approximately 24 M

individuals who are viable target customers. Our smartphone user typology helps to divide this large

pool by function and segment, and each of these segments breaks into about 8% to 10% of the U.S.

working population forming groups that constitute between 4M and 6M potential customers.55

Cross-Check on Segmentation

The approximate sizing of this large category of potential customers can be validated by reference to the

U.S. Dept of Labor studies of Knowledge Workers (many of whom are also Interaction Workers). It is a

given that in order for an individual to purchase a smartphone themselves, they need to have both a

workflow / communicationpain point(a broken workflow) and sufficient disposable income to allow

them to make a purchase.

As a cross-check, the Dept of Labors 2007 Cross-Industry analysis demonstrated that there were

approximately 23 M individuals earning greater than $60,000 / year in these technology-intensive

employment categories: senior management, business/finance, senior medical professionals (MDs, etc),


16/29


computer industry, legal and research/dev in the physical and biological sciences. This cross-check is

valuable as a further proof point of the existence and viability of a sufficiently large target market for

our product offering.

Information Needs within the Segments

Kiha is delivering an information-centric

smartphone. If we therefore refine our focus to

customer workflows that emphasize information

consumption and processing, we can deliver a

device and system that is precisely aimed at real

customer needs. Not all customers need

information to the same degree. So if we only

target the customers within that overall 24M who

use /process information on their mobile phones,

we can derive down a first tier target total group

of 5.94M. The slicing of our target down by only

information-centric users is a conservative

approach to market segmentation, but one that

emphasizes Kihas unique value proposition.

Kiha as an Upgrade Purchase

Kiha has also endorsed the idea that we will be a smartphone upgrade purchase for our first release,

rather than a first purchase device. This assumption is based on current market trends and customer

familiarity with the smartphone as a product category within our first ship timeframe. The upgrade

purchase necessitates conversion of users from their existing smartphone. With this as a given, analysis

of customer satisfaction rates and dissatisfaction rates with existing smartphone provides crucial insight

to potential buyers of the Kiha device and system. It is also a useful constraint to limit the analysis of

customer issues to focus on corporate users only as these customers are the most likely to be

Interaction Workers and to fit our Tech Omnivore and Productive Pro top tier segments.


17/29


Dissatisfaction Rates with Existing Smartphones

ChangeWave analyzed customer

satisfaction rates in 2008, and found

that up to 70% of Palm users were

dissatisfied or highly dissatisfiedwith their current smartphone, and

other smartphone users had gradually

lower dissatisfaction rates, until we

reach the iPhone, which has the

highest satisfaction rates of any

existing smartphone.56

This research cannot be applied point

blank to our segments, as the research

was not targeted specifically at Interaction

Workers and the sample set contains

consumer and enterprise segments that are

not within the Kiha market set. However,

some basic knowledge about the space does

assist in parsing the market.

Tech Omnivores generally buy the most up-to-

date device, and most of them own an Apple

iPhone. Most Productive Pros operate their

business workflow on a Blackberry device.57

Other segments also generally prefer one kind

or class of device over another.

If we apply this ChangeWave Research (specific to each type of phone or device class) to our segments,

we can therefore elect to target ONLYthose individual Interaction Workers in our segments, with

significant information processing needs, and who are dissatisfied with their current smartphone.

Upgrade Cycles

Further clarity on the market segments thatwe can reliably target can be found in upgrade

cycles. IDC and Canalys studies demonstrate

that 80% of users who describe themselves as

Tech Omnivores upgrade a phone on

average once every 12 months, while only 50%

of Productive Pros upgrade annually, and


18/29


65% of Connectors are on this annual upgrade cycle. (Only 15% and 25% of the other segments upgrade

annually.)58 A conservative assumption is that Kiha targets only users who do upgrade annually. This

narrows the market further, so that we target onlyworkers in our segments who are:

A) Information Needy

B) Dissatisfied with Current SmartphoneC) Upgrade Annually

Market Penetration Rates

A tight focus on current information-

heavy users dissatisfied with their

smartphones, who need a new upgrade

will allow Kiha to deliver a highly

focused solution and spend ourmarketing budget with clear objectives.

Because of this narrow focus on a

defined sub-segment of the overall

smartphone market, we can reliably

project a relatively high penetration

rate of 50% (just within this sub-segmented group). Using this projected penetration rate, in our top

two target segments, Kiha can expect to get 186K Tech Omnivores, and 242K Product Pros with our first

release. If all segments buy at expected rates, we should have over 600K units nationwide in our first

year. If we target more narrowly to specific sub-segments or to a specific region, less penetration and

less unit sales would obviously be expected.

Revenue

Smartphones are a high-margin item within the

mobile ecosystem. Current estimates of

Blackberry per unit profits range between $50-

200 per unit, while Helio managed to record

ARPU of $100 per user during its tenure

(customer acquisition costs were, unfortunately,out of par with their ARPU revenue).59 Given these average market numbers, it is reasonable to expect

that Kiha will be able to sustain an average per-unit-profit of $150. Revenue projections based on our

market penetration estimates can provide for up to $64M in profit in just our top two segments in the

first release. This estimate does not include other possible revenue streams such as software-as-services

fees, enterprise server sales, data revenue, carrier shared revenues or any other possible revenue.


19/29


DRAFTMORE TO COME FOR THIS PAGE

Competition

Going Forward: iPhone Has Momentum

Among Interaction Workers planning to buy a

new smart phone in the next 90 days, better than

one-in-three (35%) say they'll purchase an Apple

iPhone - a whopping 12-point jump in planned

purchases since January 2008.

RIM (29%) comes in second - down 3-points from

previously, while Palm (3%) has taken yetanother big hit, falling 5-points.

The Apple uptick may be at least partially

attributable to the recent flurry of announcements regarding the iPhone's Software Development Kit. A

total of 10% of respondents say this new development has made them More Likelyto buy an iPhone in

the future.

However, based upon the quickly evolving RIM vs. Apple competitive landscape - and the fact that both

companies have high customer satisfaction ratings - the likelihood of Google's new smartphone

software competing against either the Blackberry or Apple iPhone operating systems seems farfetched

at this point.

Rather, the Android's potential niche market would appear to lie within a handful of second tier players

such as HTC. But with top-rated smart phone manufacturers RIM and Apple sucking up all the oxygen in

this extraordinarily competitive market, the current survey suggests that Google's entry into the space

will be anything but easy.

In addition to the RIM vs. Apple battle, there is also a two-horse race among cell phone providers - with

Verizon (VZ) (31%; up 1-pt) and AT&T (T) (29%; up 1-pt) jockeying for the top spot in current market

share.

In terms of planned buying going forward, AT&T (28%; up 3-pts) appears to be getting a bump-up based

upon Apple's recent flurry of announcements. When Apple planned buying goes up among consumers,

so does AT&T by virtue of their exclusive carrier agreement with Apple. Verizon (22%), on the other

hand, shows a 1-pt uptick in planned buying.

Consumer and business users are increasingly dissatisfied with phone platforms that have not evolved to

meet current Web-application needs, as can be seen in the accompanying ChangeWave Dissatisfaction


20/29


Chart. Palm and Nokia suffer by comparison to newer smartphone platforms such as the iPhone. Note

however that Android and the Palm Pre are not yet accounted for in this ranking.

The leading players Blackberry and the iPhone have a combined total of 62% of the US smartphone

market as of the last calendar year (Q207 thru Q208). Apples market share is rapidly expanding.

Yet our interviews with customers demonstrate that Kiha has an opportunity specifically in information

management on the smartphone. Neither of these companies are adequately fulfilling small business

and pro-consumer information management needs.


21/29


Go to MarketStrategies and Channel Approaches

A variety of strategies are still being evaluated for taking our product to market.

HIGH-LEVEL STRATEGIES

Option 1: Free Web Client, Upsell Device

Stagger our delivery of clients: Deliver early web-based (free) datamining solution to build market

awareness, to get users, to build a base, a brand, a message, and refine our product. (This helps if we

deliver additional devices later on, or different clients -- ie. a desktop client, an UMPC, car GPS, etc)

Solve part of the problem (for free), testsolution, refine offering

Launch closed device that delivers alldatamining features, plus more:1. Premium device delivers ALL of the

datamining features BUILT-IN

2. PLUS instant syncing, location capabilities,etc

3. Brand and Message are consistent:Device is an upsell

Option 2: Complete Device Solution to Smaller Market

Deliver complete solution (for pay) to small sub-segmentie. California first

1. Test and refine solution on smaller scale before broad delivery

2. Go US nationwide (and global) later on

Option 3: Mobile Clients and Upsell Premium Device

Multiple Clients: Deliver sub-set of services for lower end deviceso Location Serviceso Mobile Syncing for personal information (gMail, gCal, iCal, OpenID, etc)

Deliver premium device with ALL the featureso Datamining / Semantic Intelligenceo Enterprise Connectivity


22/29


Option 4: Premium Device with free mobile service

Reverse staggered delivery. Premium device is delivered BEFORE online service, and online service is

used to upsell lagards on buying the device. Possiblity is great that online service would take some time

to develop its own user base, and we might not want this to happen at all.

1. Deliver premium device

2. Deliver online service later to build out market, base, and brand

Option 5: Premium Device Goes Global

Not Recommended as Strategy

1. Deliver premium device nationwide and go BIG first

2. Deliver for Prosumer and "Consumer" customers first

3. Go after Productivity / Enterprise customer later

CHANNEL APPROACHES

Potential sales channels for Kiha fall into three categories. The first is an indirect strategy driving sales

through either traditional Wireless Carriers or Value Added Resellers (VARs). The second way to drive

Kiha product and services sales is through carriers. The third possibility would drive more directly into aVAR channel. All these approaches have strengths and weaknesses that I will highlight in each section.

This is a cursory analysis at best. At this point we can either do a deeper dive into all of the available

channels or we can prioritize and focus on a subset of options.

Indirect Channels

Leverage other peoples sales and support infrastructure. The obvious benefit here is taking advantage

of the Carrier or VARs sales and support organizations. The Carrier model is better understood so I have

spent more time evaluating the VAR approach. Below, Ive described three VARs in the market today.

Not only do you get the benefit of their infrastructure, but you get their customer relationships and

industry expertise. You can fill their pipeline with your products and services and get to market quickly.The downside is prioritizing your product and services with the VAR. A considerable amount of time,

energy and money must be spent to keep Kiha products top of mind with the VAR sales people. This

will require a sales organization consisting of VAR channel managers and industry/segment Evangelists.

VAR Channel Managers carry quotas specific to a particular VAR or VARs and they can be measured on

both unit volume and margin. The Evangelists carry quota related to their industry or segment (Legal,

Real Estate).


23/29


Carrier model

Align with one or more carriers, submit to their certification process and work with their distribution and

sales models. Training for the carrier sales teams and marketing dollar support for in store promotions

and spiffs as well as advertising to drive consumer traffic. From Lamars discussions with device

manufacturers it sounds like Samsung and others maintain their own device sales force. T-Mobilemaintains an enterprise sales force that compliments their retail store sales channel. To get enterprise

or national account support you can request information and you will be contacted by a T-Mobile

business sales person.

Value Added Reseller (VAR) model

There are a number of VARs who will perform channel roles from fulfillment all the way to end to end

VAR services. Three examples are provided. Next step would be a deep dive into each of their

capabilities and limitations.

Brightpoint, Inc Brightpoint Web site $4.3B B to B device wholesaler. They provide distributionservices to second and third tier mobile retailers. (Carrier stores, major retail chains and other

businesses large enough to purchase direct from the mfg. are excluded) I do not believe this

model is optimized for enterprise sales, but I will ask them how they would support sales into

corporate environments.

Enterprise Mobile EM Web Site - Watertown, MA distributor provides end to end mobilesolutions to corporations. Augments corporate IT organizations and allows for the deployment

of mobile solutions that comply with corporate standards.

For the Enterprise

GTSI GTSI Web Site Distributor to Federal state and local government agencies. GTSI is atrusted supplier to government agencies. OEMs pay for the experience selling into the agencies

and compliances with government procurement rules and regulations. GTSI was the first

Distributor to gain government approval to sell RIM BlackBerry devices to agencies.

Other Potential Channel Models

These models are not preferred as ideal for our device model, our customers, or our potential market

segments. However, these are other available models:


24/29


Direct Channel

Develop Kiha channels to provide sales and support directly to businesses and consumers. In this model

Kiha makes the investment to build their own Enterprise and Prosumer sales and support organization.

This strategy would require a transactional website designed to support B to B and B to C customers.

The sales organization would need to scale from an Inside Telesales organization to a sophisticatedOutside Enterprise sales team. The support organization can be Kiha employees or outsourced. The

number one benefit that drives organizations to a direct model is control of their own destiny. All of the

experience and learning from the sales organization is fed directly back into the company and you do

not have to compete for mind share with your sales people. In this model Kiha owns the relationship

with the end user. In the indirect model you are paying to access a VARs relationships theyve

developed with their customers. The direct model allows the company to intimately understand the

needs of their customers and to quickly make adjustments to products and strategies as necessary. The

downside is the cost to build and maintain a direct sales organization. Telesales organizations can be a

highly leveraged asset, but they still have considerable operating expense associated with them.

Enterprise sales organizations are expensive and the sales cycles are typically eight to twenty-fourmonths. Time and money are needed to develop the trusted relationships necessary to win large

corporate deals. The payoff can be worth it in the case of long term agreements or winning a position on

the corporate standards lists.

Enterprise model

Kiha would recruit top Enterprise sales and sales management talent. In addition, it is accepted practice

that these sales people are supported by Pre-sales Engineers or Solutions Architects. These teams of

sales and product experts would be focused on selected Enterprise accounts and given the time and

resources necessary to win the business. These are complex sales and require a considerable amount of

support from Kiha management and Product Development.

Telesales model

Many companies are leveraging the Telesales model today. Customers have become accustomed to

webinars and email campaigns. They expect a high degree of professionalism from their telesales reps

and expect them to efficiently guide them into the right solution. They expect to be able to fulfill their

order over the web and handle any service and support issues the same way. The Telesales model

provides a number of potential benefits. Productivity can be tracked closely through metrics and the use

of a CRM tool like Salesforce.com. The team can quickly pivot from one market to the next as trends are

identified. The team can be located in a favorable economic environment where facilities costs arelower and there is a plentiful population of educated sales candidates. Today, companies locate their

Telesales organizations in locations such as Coeur dAlene, Idaho, Richland, WA and Salt Lake City, UT.


25/29


Additional Channels

These are additional "blue sky" channels that may or may not be suitable for reaching our customers.

Amazon.com they can serve as a sales channel, a partner and a source for fulfillment globallyKiha can work directly with the Consumer Electronics team to sell Kiha products and services

through the CE store at Amazon.com. There is another opportunity to work with the Amazon

Anywhere team to tie into their mobile initiatives.

Costco the can serve as a distribution channel through their warehouses and their website.There may be additional opportunity to work with their business members. This approach may

require custom work.

Facebook.com work with the Facebook business development and product developmentteams to create a compelling offer for higher education. Universities, Colleges, Junior Colleges,

Community Colleges.

Community sales develop an agent bases sales organization focused on: PTA & School organizations

REMAINDER OF DOCUMENT UNDER REVISION

OUTLINE OF REMAINDER OF DOCUMENT

- Competitive Matrixo Blackberry RIMo iPhoneo Symbian / Nokiao Other

- Kiha Position in the Market Ecosystem- Product Value and Pricing

o Comparative Value of Producto Pricing Analysis - Projected Price Pointo Billing Relationship with Customer


26/29


END NOTES

1IBM Institute for Business Value analysis based on Deutsche Bank Global Markets

Research on Nokia. October 19, 2007. As seen in Go mobile, grow report from IBM.

2

CTIA Statistics, CTIA Semi-Annual Wireless Industry Survey. As reported in Forbes.com. June 16, 2008http://www.forbes.com/home/2008/06/15/cellphone-addict-iphone-tech-wireless08-cx_wt0616addict.html

3Global Mobile Market Hit 289 Million Devices in Q1. (ABI Research 2008) ChannelWeb Report 4-25-08

4Information Economy Report 2007-2008: Science and Technology for Development - The New Paradigm of ICT United

Nations, United Nations Conference on Trade and Development. Released in February 2008.

5Worldwide Mobile Phone 2008 -2012 Forecast and Analysis: Continued Growth IDC and IBM Institute for Business Value

analysis based on IDC Document #211441, March 2008. As seen in Go mobile, grow IBM report.

6Dataquest Insight: Market Share for Mobile Devices, 1Q08. Gartner May 28, 2008

Data shows comparatively lackluster sales in mature markets like North America, where sales totaled 41.9 million, an increase

of just 2.4 percent, and Western Europe, which experienced a sharp decline of 16.4 percent. It was the first drop in Western

Europe since Gartner, an information technology research and advisory company, began tracking mobile device sales in 2001.

7In 2008, we are faced with the possibility that the majority of consumers will assume they can receive a phone (or any mobile

device) for free as long as they have a relationship with a carrier. Blackberry initially bucked this trend by emphasizing

enterprise value and making large-volume sales to businesses that placed a value on security and productivity. In recent

months, this value has eroded as Blackberry is beginning to chase the prosumer and consumer markets with products like the

Pearl and a touch-screen clamshell that may ship next year. Apple also pushed against the commodization pressure, by creating

an exclusive premium category with the iPhone and emphasizing a direct-from-Apple purchase route. However, with the

iPhone 3G, the price reductions and AT&T activation plans have begun to commoditize the value of this premium and AT&T

activation plans have begun to commoditize the value of this premium product as well.

8Go mobile, grow. IBM Institute for Business Value 21 May 2008 (Quoted in IBM Study Finds Consumers Want More Control

and Choice on Mobile Web)http://www-03.ibm.com/press/us/en/pressrelease/24291.wss To take advantage of the

opportunities offered by the mobile Internet, the study says many MDMs may need to transform from device-driven to service-

driven. This may require changes in marketing and brand perception, partnership strategies, content delivery and management,

as well as revenue models. Handset sales have reached saturation point in emerging markets therefore compelling MDMs to

move to higher end devices that enable more services. This could bring a double boost to earnings and revenue as it raises the

average device price point and provides MDMs a cross sell opportunity to high margin services.

9Worldwide Mobile Phone 20072011 Forecast and Analysis IDC May 2007

http://www.idc.com/getdoc.jsp?containerId=206583

10Worldwide Mobile Phone 2007 -2011 Forecast Update IDC and IBM Institute for Business Value analysis based September

2007. As seen in Go mobile, grow IBM report. Also see In-Stat: Worldwide Smartphone Market to Grow More Than 30

Percent Each Year Through 2012 CIO.com Nov 14, 2007 Worldwide, smartphone shipments jumped 60% in the last three

months of 2007 over same period in 2006.

http://www.cio.com/article/155001/In_Stat_Worldwide_Smartphone_Market_to_Grow_More_Than_Percent_Each_Year_Through_/1

11Dialing up the killer app for mobile Internet. Susquehanna Financial Group Report on Google Android. November 6, 2007.

12This is 11.5% of the market for that time period. Blackberrys Quest: Fend Off the iPhone (NY Times Technology Section,

April 27, 2008) Article cites: Market Share: Smartphones, Worldwide, 4Q07 and 2007 Gartner March 2008.

13This was 7.5% of the market during that time period, according to Gartner.

Market Share: Smartphones, Worldwide, 4Q07 Gartner. March 2008
http://www.forbes.com/home/2008/06/15/cellphone-addict-iphone-tech-wireless08-cx_wt0616addict.htmlhttp://www.forbes.com/home/2008/06/15/cellphone-addict-iphone-tech-wireless08-cx_wt0616addict.htmlhttp://www-03.ibm.com/press/us/en/pressrelease/24291.wsshttp://www-03.ibm.com/press/us/en/pressrelease/24291.wsshttp://www-03.ibm.com/press/us/en/pressrelease/24291.wsshttp://www.idc.com/getdoc.jsp?containerId=206583http://www.idc.com/getdoc.jsp?containerId=206583http://www.cio.com/article/155001/In_Stat_Worldwide_Smartphone_Market_to_Grow_More_Than_Percent_Each_Year_Through_/1http://www.cio.com/article/155001/In_Stat_Worldwide_Smartphone_Market_to_Grow_More_Than_Percent_Each_Year_Through_/1http://www.cio.com/article/155001/In_Stat_Worldwide_Smartphone_Market_to_Grow_More_Than_Percent_Each_Year_Through_/1http://www.cio.com/article/155001/In_Stat_Worldwide_Smartphone_Market_to_Grow_More_Than_Percent_Each_Year_Through_/1http://www.cio.com/article/155001/In_Stat_Worldwide_Smartphone_Market_to_Grow_More_Than_Percent_Each_Year_Through_/1http://www.idc.com/getdoc.jsp?containerId=206583http://www-03.ibm.com/press/us/en/pressrelease/24291.wsshttp://www.forbes.com/home/2008/06/15/cellphone-addict-iphone-tech-wireless08-cx_wt0616addict.html


27/29


14Research Report: Mobility in Small and Midsize Companies Oct 2007 CMP Technology bMighty.com

15Demonstrating the Business Value of Mobile Device Management in the Enterprise. IDC Study, Sponsored by Nokia.

Stephen D. Drake. October 2006.

16The Next Revolution in Interactions McKinsey Quarterly 2005 Number 4



19Mobile Access to Data and Information PEW Internet & American Life Project March 5, 2008

"When asked how hard it would be to give up a specific technology, respondents are now most likely to say the

cellphone would be most difficult to do without, followed by the Internet, TV, and landline telephone," the report said. "This

represents a sharp reversal in how people viewed these technologies in 2002," when the landline telephone was the favorite

technology, he said. About 10% have watched videos, while 58% have sent or received text messages. Nineteen percent have

used the devices for email or to access the Internet. The study appears to confirm that text messaging is important for younger

technology users. Sixty percent of those aged 18-30 send or receive text messages on a typical day, compared with 32% for

those in the 30-49 age group and 14% in the 50-64 age bracket.

20Engaging mobile experiences Adobe Systems, 2006. Matt Millar

21 Optimizing Users And Applications In A Mobile World October 2007 Forrester Consulting / Riverbed

22 Optimizing Users And Applications In A Mobile World October 2007 Forrester Consulting / Riverbed

23See the Kiha Wiki:http://linux.kiha.local/index.php5/Mobile_Device_Management

24Mobile Business Application Usage to Surge by 2009, Driving Need for Device Management BNet.com Business Wire

Mformation Technologies in partnership with independent research firm Coleman Parkes. October 2007.

http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445

25Who really gains from iPhone - Apple, BlackBerry or Microsoft? Rob Bamforth. IT Director.com June 16, 2008.

http://www.it-director.com/business/content.php?cid=10552

26Mobile Business Application Usage to Surge by 2009, Driving Need for Device Management BNet.com Business Wire

Mformation Technologies in partnership with independent research firm Coleman Parkes. October 2007.

http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445

27SMB Workforce Goes Mobile, Creating New Opportunities for Technology Sales, CompTIA Research Reveals CompTIA Oct

2007http://www.comptia.org/pressroom/get_pr.aspx?prid=1288

28DigiWorld2007: Telecom, Internet, Media - the digital worlds challenges. IDAT Foundation European forum on the digital

world. Book-length report published in 2007.

29

SMB Workforce Goes Mobile, Creating New Opportunities for Technology Sales, CompTIA Research Reveals CompTIA Oct2007http://www.comptia.org/pressroom/get_pr.aspx?prid=1288

30SMB Workforce Goes Mobile, Creating New Opportunities for Technology Sales, CompTIA Research Reveals CompTIA Oct

2007http://www.comptia.org/pressroom/get_pr.aspx?prid=1288


http://linux.kiha.local/index.php5/Mobile_Device_Managementhttp://linux.kiha.local/index.php5/Mobile_Device_Managementhttp://linux.kiha.local/index.php5/Mobile_Device_Managementhttp://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445http://www.it-director.com/business/content.php?cid=10552http://www.it-director.com/business/content.php?cid=10552http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://www.comptia.org/pressroom/get_pr.aspx?prid=1288http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445http://www.it-director.com/business/content.php?cid=10552http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445http://linux.kiha.local/index.php5/Mobile_Device_Management


28/29




Stephen D. Drake. October 2006.


Stephen D. Drake. October 2006. Converged mobile devices as a whole continue to be driven by individual users buying

devices rather than corporate purchases. This becomes a particular thorn in the side of IT management seeking to get a hold of

devices that they do not own, control, or may not even know are connected to the corporate network and accessing corporate

data. Over the next several years, although corporate purchasing increases, the largest volume of converged mobile devices will

be purchased by individuals.



Stephen D. Drake. October 2006. What is a given is that smartphone sales today live or die on the individual purchase decision.

RIM was an exception to this mantra, with highly methodical targeting of enterprise-class customers and large volume sales,

and one can legitimately argue that both their technology base and their sales model is an artifact of their origin as a pager

company. RIMs current push towards prosumers and consumers emphasizes the importance of the broader market, and the

iPhones largest success has been selling direct to individuals. (Obviously, this has become a particular thorn in the side of IT

management seeking to corral and manage devices that they do not own that are accessing corporate data.) Yet increasingly,

the corporate firewall has become a minor impediment for individuals who buy the phones and devices they want, and decides

whether or not they will sync their work information officially, or in many cases, unofficially.

38A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John

B. Horrigan, Associate Director for Research)

39Note that throughout our use of this typology, Kiha has changed several of the names of the PEW Typology for greater clarity

on work functions and device usage. Omnivores has become Tech Omnivores, Lackluster Veterans has become Mobile

Veterans, and Mobile Centrics has become SMS Addicts. A Typology of Information and Communication Technology

Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)







43A Tool to Organize Our Many Organizers (about Scrybe) - New York Times 09/02/2007

http://www.nytimes.com/2007/09/02/technology/circuits/02proto.html

44A Tool to Organize Our Many Organizers (about Scrybe) - New York Times 09/02/2007

http://www.nytimes.com/2007/09/02/technology/circuits/02proto.htmlThe nature of work has changed, and so has the

technology that matters to businesses, said James M. Manyika, a senior partner at McKinsey. Youre not trying to automate

the task a human does; youre trying to complement what the human is doing, he said.




http://www.nytimes.com/2007/09/02/technology/circuits/02proto.htmlhttp://www.nytimes.com/2007/09/02/technology/circuits/02proto.htmlhttp://www.nytimes.com/2007/09/02/technology/circuits/02proto.htmlhttp://www.nytimes.com/2007/09/02/technology/circuits/02proto.htmlhttp://www.nytimes.com/2007/09/02/technology/circuits/02proto.htmlhttp://www.nytimes.com/2007/09/02/technology/circuits/02proto.html


29/29


47The Shape of the Smartphone and Mobile Data Markets Mike Mace. Jan 2007

http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.html

Also see Kiha User Interviews.http://linux.kiha.local/index.php5/User_Interviews



Kihas recent User Interview data validates a standard finding for technology products that include elements that are

mere check box items, rather than fully fleshed feature sets. Many products claim to deliver one comprehensive solution, in

one device, and few actually deliver functionality in more than one area. Mike Mace, former VP of Product for Palm, calls the

all-in-one-device category the zone of death, as no device has succeeded here in being all things to all users.48

Such a

finding would not be worth mentioning except for the user interest in the neglected area of Information, as no mobile devic e

today adequately meets the expressed market need.

49Who really gains from iPhone - Apple, BlackBerry or Microsoft? Rob Bamforth. IT Director.com June 16, 2008.

http://www.it-director.com/business/content.php?cid=10552



51See recent critique of the fact that the iPhone doesnt even sync the basic notes on the device.



53Kiha User Interview Ian, June 08.http://linux.kiha.local/index.php5/User_Interview_22-Ian

Kiha User Interview Christine, June 08.http://linux.kiha.local/index.php5/User_Interview_21-Christine





56 ChangeWave Research 2008

57Dataquest Insight: Market Share for Mobile Devices, 1Q08. Gartner May 28, 2008

Also see: Demonstrating the Business Value of Mobile Device Management in the Enterprise. IDC Study, Sponsored

by Nokia. Stephen D. Drake. October 2006.

58Mobile Device Upgrade Strategy Feb 2008 Search Mobile Computing

http://searchmobilecomputing.techtarget.com/generic/0,295582,sid40_gci1298366,00.html

59Helio information athttp://en.wikipedia.org/wiki/Helio_%28wireless_carrier%29

At the end of December 2006, Helio announced it had 70,000 customers with an average monthly revenue per user

(ARPU) of nearly $100. An estimated 25 percent of those revenues come from data services (Well above the industry average of

about 11 percent).[citation needed] On September 21, 2007 EarthLink announced that SK Telecom would be increasing their

investment in Helio by $270 million and adjusting ownership positions in the company accordingly, effectively giving

operational control to SK Telecom.
http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://linux.kiha.local/index.php5/User_Interviewshttp://linux.kiha.local/index.php5/User_Interviewshttp://linux.kiha.local/index.php5/User_Interviewshttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://www.it-director.com/business/content.php?cid=10552http://www.it-director.com/business/content.php?cid=10552http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://linux.kiha.local/index.php5/User_Interview_22-Ianhttp://linux.kiha.local/index.php5/User_Interview_22-Ianhttp://linux.kiha.local/index.php5/User_Interview_22-Ianhttp://linux.kiha.local/index.php5/User_Interview_21-Christinehttp://linux.kiha.local/index.php5/User_Interview_21-Christinehttp://linux.kiha.local/index.php5/User_Interview_21-Christinehttp://searchmobilecomputing.techtarget.com/generic/0,295582,sid40_gci1298366,00.htmlhttp://searchmobilecomputing.techtarget.com/generic/0,295582,sid40_gci1298366,00.htmlhttp://en.wikipedia.org/wiki/Helio_%28wireless_carrier%29http://en.wikipedia.org/wiki/Helio_%28wireless_carrier%29http://en.wikipedia.org/wiki/Helio_%28wireless_carrier%29http://en.wikipedia.org/wiki/Helio_%28wireless_carrier%29http://searchmobilecomputing.techtarget.com/generic/0,295582,sid40_gci1298366,00.htmlhttp://linux.kiha.local/index.php5/User_Interview_21-Christinehttp://linux.kiha.local/index.php5/User_Interview_22-Ianhttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://www.it-director.com/business/content.php?cid=10552http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.htmlhttp://linux.kiha.local/index.php5/User_Interviewshttp://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.html

Documents

Market Requirements Doc - defunct startup