The Wireless Business:The Wireless Business:i. How does wireless technology address the limitations of

the fixed Internet.

> from the consumer’s perspective

> from the marketer’s perspective.

ii. Will non-voice-based wireless applications capture the consumer or the corporate market first? Why?

Projected demand for ApplicationsProjected demand for Applications

Projected Revenues per Application

New mobile applications will yield significant new revenue potential

* Across 2G, 2.5G and 3G networks. Applications in parenthesis are expected to be the main revenue generators within each category.Source: DCI Research & Analysis JP Morgan/Arthur Andersen—Wireless Data, October 2005. Nokia,

New Killer Apps

Application Must-Haves

Add. apps from other sources

US$

2005 2006 2007 2008

What is M-Commerce?What is M-Commerce?

M-commerce refers to M-commerce refers to monetary transactionsmonetary transactions conducted via a mobile telecommunications network conducted via a mobile telecommunications network using a using a communication, information, and paymentcommunication, information, and payment (CIP) device such as a mobile phone or a PDA unit.(CIP) device such as a mobile phone or a PDA unit.

Wireless on the RiseWireless on the Rise

Although the U.S. and Canada lag other countries, projected growth in mobile data adoption is extraordinary.

Wireless devices are now more commonplace than wired computers in North America

Mobility is much more than phone calls and e-Mobility is much more than phone calls and e-mail…mail…More than movement…

Mobility is not just about movement of people and goods, but about technology everywhere

Workplace

Home

Leisure

Shopping

Dining

…and more than just peopleMobility is not just about communication between people, but also between machines and devices

Mobility augments the capabilities of people and devices

Sources: DiamondCluster 2001 Senior Executive Survey of 150 companies, InformationWeek

Leading companies have mobility on their Leading companies have mobility on their radar screensradar screens

35%

42%

49%

0% 10% 20% 30% 40% 50% 60% 70%

Supply ChainManagement

Order Entry

Order Status

Sales and Support

42%

42%

65%

0% 10% 20% 30% 40% 50% 60% 70%

Scheduling

CustomerDatabase

Email

Communications

2/3 companies have deployed or are actively exploring mobile solutions

Focus is on service and support functions initially

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

32%

30%

29%

9%

Not Addressing

Actively Exploring

MonitoringAlreadyLaunched

91%

Four characteristics distinguish Mobility:Four characteristics distinguish Mobility:

PresenceMobile devices will be our constant companions, whether we carry them with us or encounter them in devices we use everyday

ImmediacyFreedom from a stationary PC means we can access information or conduct transactions as close as possible to the instant we need it

LocationFreedom from a stationary PC also means we can access information or conduct transactions as close as possible to the place in which we need it

InterestConsumers in a certain location and a specified time can be instantly unified by their common interests

Who Can Identify Killer Apps?Who Can Identify Killer Apps?

Companies/Entrepreneurs who know where the economic value (client side) of wireless technology comes from!

Companies/Entrepreneurs who understand the perceived benefits of wireless technology for the end user!

More Concretely: Market your More Concretely: Market your application (e.g., interactive, location-application (e.g., interactive, location-based game) to Network Operator!based game) to Network Operator!

What do you need to ask What do you need to ask yourself…yourself…Does my application/service Does my application/service increase air time usage increase air time usage (such (such as network gaming or movie as network gaming or movie ticket purchasing)? ticket purchasing)? Does my application/service Does my application/service perform a function that is perform a function that is so so compelling to customers compelling to customers that everyone will want to that everyone will want to use ituse it. .

Identify a wireless service to sell:Identify a wireless service to sell:

What is the value proposition you offer to What is the value proposition you offer to your various stakeholders?your various stakeholders?

Under what ‘P’ does your service fall?Under what ‘P’ does your service fall?

How will money flow?How will money flow?

What are your information needs to What are your information needs to implement this service and where do you implement this service and where do you get it from?get it from?

Wireless E-BusinessWireless E-Business

Identifying the Next Killer Application in M-Identifying the Next Killer Application in M-CommerceCommerce

Two Examples of Potential Killer Two Examples of Potential Killer Apps:Apps:

1) Wireless Medicine

2) Mobile Asset Management (ex. Cars)

Wireless MedicineWireless Medicine

Wireless MDWireless MD

Problem:• 98,000 Americans die

each year as a result of medical mistakes – Institutes Of Medicine

• Regulations, complexities increasing

• Pressures to achieve quality, cost, and care standards

• New medications, methods introduced daily

• Physicians increasingly pressed for time

Information Flow and General Information Flow and General Business ModelBusiness Model

FamilyContact

Hospital

Patients

PrimaryPhysician

Notification

WAP, HTTP Interface Central database management

AmbulanceCrew

Scan Bar Code

Wireless MDNotification

Patient’s

Condition

Patient’s

Record

Bar Code

Information

Instant Communication

Revenue ModelRevenue ModelMost likely Subscription-based!Most likely Subscription-based!

PharmaceuticalCompanies

Hospital,Ambulance

Patients

Enrollees(Employers)

$

Wireless MD

Communication

Devices

InsuranceServices

$ Services

SmartCards

Service via

24/7 Web

Interface

Advertising

Mobile Asset ManagementMobile Asset Management

Location-based Location-based ServicesServices

Enforce Restricted Areas

Locate Overdue Vehicles

Disable Stolen and

Overdue Vehicles

Access Historical Route Information

Monitor Driving Behavior

Identify Underutilized Vehicles

Source: www.airiq.com

Acme Rent-a-carAcme Rent-a-car

A They told me that I was caught speeding on three separate occasions, and I never saw a state trooper

B How did they catch you?

A They said they had a GPS system installed in the car, and they tracked me across seven states without me knowing it

B Acme fined him a total of $450…Acme says they decided to start using GPS to track speeders because too many of their rental cars were ending up in traffic accidents

Acme Speeding causes accidents; speeding kills people. We think we have a right to protect our property, that's why--it's our property.

Exp. …as time goes on these practices are likely to become more and more invasive.

Exp. It's scary to think that--that some point down the line, after the fact, we will all discover that there are very detailed dossiers on our physical whereabouts…

Source: NBC Today Show, 2005

Progressive leverages mobility in the Progressive leverages mobility in the development of new service offeringsdevelopment of new service offerings

Industry leader in technology innovation…

#4 auto insurer, up two spots since it launched its digital strategy four years ago

Revenue has grown 22 % annually since in 1996 vs. an industry average of 3.3%

First to bind policies and offer comparative quotes online

Industry leader in technology innovation…

#4 auto insurer, up two spots since it launched its digital strategy four years ago

Revenue has grown 22 % annually since in 1996 vs. an industry average of 3.3%

First to bind policies and offer comparative quotes online

…to create a platform for differentiated service offerings

First to field test metered insurance for fleet applications

25% reduction in premium costs

Awarded two patents for usage based insurance system

…to create a platform for differentiated service offerings

First to field test metered insurance for fleet applications

25% reduction in premium costs

Awarded two patents for usage based insurance system

…that wants to integrate mobility into existing service offerings…

Allows the consumer to manage accounts and interact with the company remotely

Integrated accident response with emergency repair services

Result: resolves claims 21% faster than the industry avg.

…that wants to integrate mobility into existing service offerings…

Allows the consumer to manage accounts and interact with the company remotely

Integrated accident response with emergency repair services

Result: resolves claims 21% faster than the industry avg.

Source: NYTimes, Progressive

What They Have in Common:What They Have in Common:

Mobile Communication is the key!Mobile Communication is the key! They could not exist in the hard-wired world.They could not exist in the hard-wired world. They representThey represent

either NEW TO THE WORLD VALUE either NEW TO THE WORLD VALUE

or UNLOCK EXISTING VALUE (by exploiting new or UNLOCK EXISTING VALUE (by exploiting new efficiencies).efficiencies).

Now you: Wireless BrandingNow you: Wireless Branding

Evaluate the potential for mobile advertising and campaigns to drive brands.

What are its strengths and weaknesses relative to other branding techniques?

What do you consider most appropriate strategic goals for mobile advertising? Why?