Mobile services and its impact on GPDs and Return on Investment


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Mobile services and its impact on GPDs and Return on Investment

  1. 1. Growth of broadband, Mobile services and its impact on nation’s GDP and reach of mobile services to the next billion By Kartik Mehta Under guidance of Dr. Audrey Curtis Stevens Institute of Technology, Hoboken December 2009 It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change1. Charles Darwin 1 Charles Darwin quotes 1
  2. 2. Index 1. Fourth wave of IT, next big thing in IT: Mobile internet, anytime, anywhere. 1.1 The fourth wave, the era of IT everywhere. 1.2 Convergence of Networks, applications and technology. 1.3 Growth trends in Mobile computing. 2. Is social networking – Transforming personal, community and social culture? 2.1 Community, collaboration, sharing as we moved from Web 1.0 to Web 2.0 2.2 Growth of social networking sites. 2.3 Social networking from fixed laptop, desktops to mobile using mobile graphical user interfaces “widgets”. 3. President Barack “blackberry” Obama and rise of election campaign 2.0 and government 2.0, the evolution of era of social intelligence. 3.1 President Obama vs Senator John McCain campaign on Facebook, Twitter, Youtube, Linkedin. Did internet make a difference in favour of young President? 3.2 Popularity of President Obama in Twitter top 10? 3.3 2009 election fund raising and role of Mobile computing. 3.4 From former President Government 1.0 to President Government 2.0, has the government become more open and if so how? 4.0 Decline of Broadcasting and the rise of portable online and streaming media 4.1 Why is the age of business model of Broadcasting vanishing, churning losses? 4.2 Declining revenue of TV, radio broadcasters and rise of social media networks like Twitter, Facebook. 4.3 From Pepsi to McDonald and Ford to Yahoo, are enterprise adopting social networks brand building and for communicating with their communities. 5. Merging of three screens, Television, Laptop and Mobile. 5.1 UnUP, Universal plug and play protocol and its role merging of three screens. 5.2 Growth of online video streaming and hours spend by consumer 5.3 Birth of Mobile TV standard and its impact on Mobile video in future. 6. Education from Lecture in buildings to collaboration anywhere using mobile tools. 6.1 High cost of present delivery system of education. Can Mobile education help in lowering cost of education. 6.2 Education from one sided teacher to pupil communication to collaboration between teachers and students. 6.3 e-Readers, digital books, youtube education channel and the evolution of Education 2.0 – Mobile education anytime, anywhere, at lower cost with collaboration. 7. Mobility, GPS and Location based services. 7.1 Mobile enabling buying and selling of both products and services. 2
  3. 3. 7.2 From travel tickets to nearest restaurant to users feedback of product and service, features increasing going Mobile. 8. Mobile payments 8.1 Mobile payments from myth in 2004 to a reality in 2006 and beyond. 8.2 Simplicity, the name is Mobile payment and lowering of transaction cost. 8.3 Role of PayPal mobile in success of micropayment using Mobile. 8.4 Big banks from Bank of America to Chase, jumping in to encash on growing Mobile payment service as well retain customers and loss of business in long run. 8.5 Mobile payments beginning to go mainstream after success of text based Mobile payments for Haiti donation. 9. Bibliography. 3
  4. 4. Fourth wave of IT, next big thing in IT: Mobile internet, anytime, anywhere Is Mobile internet, mobile services and its impact on gross domestic product, return on investment the next big change for humans? But, first, why we are going are doing this search and then we examine how technological innovations like Mobile internet, are effecting and will continue to have effect on lives of millions in future? Forrester researcher Christopher Mines, in his presentation, “The next big thing for IT” in June 2005 professed about the “The fourth wave of IT”2. Mines visioned four eras of IT and Morgan Stanley in its 2009 Technology consequently named each era as four report at Web Summit stated that waves of Information technology as per “Mobile internet would be bigger than their respective eras. His classification of what most think”. these eras are, first wave, from 1956 to 1976, the era of main frame computers, the second wave , from 1976 to 1992, the era of personal computers, the third wave, from 1992 to 2008, the era of networked computing and fourth wave, the era of IT everywhere3. The Forrester report stated Mobile internet would bring changes and have far reaching implications on in global trade and commerce (Figure 1) 4. 2 Forrester researcher, Christopher Mines, presentation, “The next big thing for IT” mines 3 Forrester report at WITSA, World Information Technology and Services Alliance 4 WITSA, World Information Technology and Services Alliance 5 icPolicyReport08.pdf internet-trends-2009-from-morgan-stanley 4
  5. 5. On examining the hypothesis that mobile handling of data traffic in today’s age of would have a greater than any other network traffic congestion. With advent technological breakthrough in the past, of Wimax specially the Wimax 16e, a we find that. The answer lies in the technology which is compatible with penetration of mobile in hands of the both fixed and mobile Wimax and consumer. technologies like LTE, convergence is taking place amongst the network providers be it Wireless, fixed and broadcast. However, it not just the number game that has led to excitement around the globe for mobile technologies in recent past. Ramjee Prasad in his paper explains why Along with these companies like Intel, we are now seeing rise of Mobile as the Qualcomm developed small and better new client server frontier replacing the processors for mobile, better chips for Laptop and desktop. He mentions that enabling reception of dual technologies there is a convergence of Networks, like GSM, GPRS, WiFi on single chip applications and technology. and software defined radio for military use. Technology and Networks convergence: Coupled with high data rates came the The networks architecture are maturing proliferation of devices from from days of using ATM, to all IP, Smartphones like I-phone to Netbook making things simpler. From days of GPS, E-reader, Mobile internet device best effort service, networking has (MID) based on newer and better moved to Diffserve and MPLS providing operating systems like Apple mobile, control over data control and preference Windows mobile and recently Android in data flow required for efficient operating system has led to better mobile 6 hardware systems. 5
  6. 6. These advancements in the mobile and delivered over the copper wires to now wireless technology has made possible, when Voice is being delivered over the what was impossible a decade ago Data using technologies like UMTS, possible now – emergence of mobile GPRS, CDMA, lately Wimax. applications market. High throughput rates on Mobile due to advent of 2.5G and 3G technologies, smaller form factor of mobile is making it easy to carry. Consumer’s need for applications ranging from instant information to emails to mobile maps to mobile banking to VoIP calls using smartphone to watching favorite video streamed on smartphones, checking weather in morning to train schedules, to meeting alerts, checking balance bank statement. This has made mobile central part of consumer lifestyle. Better browsers for mobile like Opera, better mobile operating systems like Apple, Android, Symbian by Nokia, RIM, Windows Mobile have made mobile experience more easier, faster, for the mobile user. The opening of mobile applications market from the above companies etc have further enhanced the value of Mobile smartphone to consumer resulting in sudden spurt in demand of smartphones and also Netbooks, smartbooks7. This movement of applications from desktop platforms to wireless and mobile configurations may have a significant impact on future daily activities.8 These developments have led to fundamental change in Internet delivery from days of Cable when the Data was 7 TOWARDS MORE USABLE MOBILE APPLICATION DEVELOPMENT Dr. W. M. Lim, Mobile Technology, Applications and Systems, 2005 2nd International Conference on 9 Morgan Stanley Economy + Internet report 8 Comparative study of "functional" mobile October 2009 at Web 2.0 Summit – San applications, Papadopoulos Homer, Francisco Athens, Greece speaking at Personal, Indoor and 10 Mobile Radio Communications, 2008. PIMRC 2008. NTT DoCoMo IEEE 19th International Symposium on 6
  7. 7. and 4G technologies over the next several years. The rollout of LTE will greatly encourage this migration starting in 2011.”11 IDC latest report brings good news for Telecommunications and particularly portable PC (Mobile, Netbook industry). Key IDC findings from this market outlook include: “1. Worldwide cellular chipsets will grow at a 9.3% compound annual growth rate (CAGR) on a unit basis from 2009 to 2014. Given the above mentioned trends it is 2. While cellular broadband applications safe to say that portable PC made up less than 7% of this unit (Smartphone, Netbooks, Slates) would volume in 2009, this market will grow at soon become the new client server for a 35% CAGR to account for over 16% masses, a position once enjoyed by fixed of total chipsets by 2013, far outpacing laptop, desktops, and two, that we are the growth in the mobile phone market. entering the era of “always connected 3. While most cellular broadband with the world via Internet anywhere, chipsets have been consumed by anytime”. industrial/M2M applications prior to 2008, portable PCs and mini-notebooks (also known as netbooks) will drive a majority of the segment growth going forward, followed by a variety of other consumer, health/medical, and automotive applications. 11 Portable PC rise 4. Strong growth in cellular broadband, primarily driven by portable PCs, sessionId=&containerId=prUS22154210&sessio mininotebooks, and mobile Internet nId=AKSDRCJNSHOXYCQJAFDCFEYKBEA VAIWD devices (MIDs)/smartbooks will help accelerate the migration of this segment 12 Morgan Stanley Economy + Internet report from 2G and 2.5G technologies to 3.5G October 2009 at Web 2.0 Summit – San Francisco 7
  8. 8. Social networking – Transforming social cultures This is the front cover of Time magazine If we search for the reason for this shift December 2006 year. we would discover that from internet of 1990, the, bubble era to current Mobile Wireless, the Internet has changed drastically. And that has led web changing from Web 1.0 to web 2.0. The distinguishing features of today’s web are that the consumers, the users like me and you, we are today the creators, the distributors as well as the consumers of the content. Thanks to Web moving from desktop, laptop to mobile, the rate of growth of communication has increased drastically as well from the one lane traffic of 1990s, the internet of today is a two way phenomenon wherein users have donned the role of authors. Thus, there is more 13 explosion of content available for consumers from newspapers, to blogs to images to videos. YOU are the person of the year (2006), says David Carlson, the author of the cover story. The author says though the year 2006 the war in Iraq, Aghanistan, Sudan made headlines, but if we look from a different lens, one will see a different story, “The story about community and collaboration on a scale never seen before. The new web, called 2.0, will change the world forever”. The author goes on to say that source of his motivation is that the social web. “The social made a major break-through with reader content based sites wikipedia, Slideshare, YouTube, Facebook”14. Web 2.0 as a platform has reduced the 13 Front cover of Time magazine Dec 2006 cost of production by publishing houses, the cost of marketing and the cost of content/uploads/2006/12/time.jpg distribution has virtually become zero. 14 Author David Carlson 15 Flick photo of Web 1.0 vs Web 2.0 content/uploads/2006/12/time.jpg 8
  9. 9. This means that the not only the overall institutions, centralized media, today cost of producing the content has gone they are relying on their respective social down tremendously but the distribution network, social media and communities. of content is more spread far and wide. Also the sharing content between families, friends and communities has become lot easier making communities more closely connected as well rise of collective community intelligence. The result is that social networking sites have been seeing phenomenal growth in last three-four years. 18 16 Whether an individual needs to know about performance of sport events they both like, like many fans do on Yankee, or a job seeker’s quest for networking, contacts, jobs postings do on sites like, or seeking latest news in specific field or Or sharing favourite video or TV broadcast on or or seeking review of product to buy on, social networking has changed the way Neilson, the marketing and media rating we interact with rest of the world. agency, in its April 2009 report stated It a nutshell, unlike the past, where that “Time spend on sites like Twitter individuals, communities relied on 17 /ist2_5474170-social-network.jpg 16 David Amano, Harvard Business publishing 18 /10/have-we-come-fu.html 9
  10. 10. has grown by 3700%, while Facebook by 700% on a April 08 to April 09, year-over-year basis. While in terms of unique visitors, Twitter saw increase of 1,382 % year-over-year”, between 2008-09, making it the fastest growing site in the Member Communities category for the month”. are today not just limited to desktop, laptops but it can also be seen anywhere, anytime using Smartphones like I-phone, HTC CEO of Nielsen Online, John Burbank, Android, Blackberry etc. stated that “Social networking has 22 become a fundamental part of the global online experience. While two-thirds of the global online population already accesses member community sites, their vigorous adoption and the migration of time show no signs of slowing.”20 “Time spent viewing video on social networking sites increased 98 percent year-over-year, according to Nielsen. In the past, TV networks had variety of TV channels, catering to genres like News and Politics, Sports, Entertainment, Children, Comedy. Today, similar, channels are coming to Video portals like youtube, Video streaming using sites like 19 Twitter, the fastest growing site 21 22 e/twitters-tweet-smell-of-success/ 20 Social network, the new global footprint. 23 -networking-new-global-footprint/ 10
  11. 11. And, that explains the sudden rush of TV web portals like Facebook, Twitter, Networks to Web, from NBC to CNN to youtube are aggregating the intelligence ABC, in last couple of years. No one and making it collective intelligence wants to loose business and hence TV done not by humans as in the past but by networks are adapting to new medium of machines. web with changing times. However, the bigger growth is expected in coming year and years ahead as more and more consumers are accessing their social networks via Smartphones, netbooks. Morgan Stanley report stated that 20MM plus active Mobile users of facebook and that the Mobile Facebook users on average are 50% more active than non-Mobile users. The report also cited that 1MM users commented on their friends status changes on Mobile within the first 24 hours of this features launch. Given the above shift in medium of communications, it is safe to say that we have entered the era of Mobile social networking and instant communications. One of the biggest gainers has been the consumers. While, the Social networks gaining ground over email, once thought to be as killer application, marks coming of age for social networks. It also marks beginning of Intelligent web. In case of Web 1.0, the intelligence was locked inside the Personal computers of individual authors of content. But, with Web 2.0 it is available on Web. And, 24 ss-the-old-news-feed-use-facebook-for-iphone/ 11
  12. 12. President Barack “Blackberry” Obama, US Elections 2.0 and US government 2.0 “Were it not for the Internet, Barack Obama would not be president. Were it not for the Internet, Barack Obama would not have been the nominee,”25 Arianna Huffington, editor in chief of The Huffington Post, at “The Web and Politics” panel at the Web 2.0 Summit 2008 in San Francisco. However, the Huffington Post editor was not alone in her assessment. Then Sen. Barack Obama was named “Advertising Age's marketer of the year for 2008”26 indicating that well before he entered the White White house, he's already won over the nation's brand builders. Linda Clarizio, president of AOL’s Platform A, said of Barack Obama, “I think he did a great job of going from a relative unknown to a household name to being a candidate for president”.27 On Facebook, if we look at Facebook The many faces of Obama profile of President Barack Obama, we find the President has a supports base of 6,943,604 supporters28, while Senator John Mc Cain has supporter base of 512,774 supporters 29. SMS Management & Technology On Twitter, if we see President’s Twitter profile we find, people whom President is following, people following the President’s tweet message and his listed friends on Twiiter they are 747,742following, 2,791,076followers, Consulting | Technology | Enterprise Solutions 27,256listed 30 as compared to Senator John McCain profile page that shows 25 Web summit 2.0 in 2008, SFO 28 Barack Obama,US President on Facebook hedule/detail/5066 26 Advertising Age magazine q=barackobama&ref=ts 29 Senator John McCain on Facebook 27 President of AOL’s Platform A 30 Barack Obama,US President on Twitter marketer-of-the-year/ 12
  13. 13. 66following, 1,622,312followers and 3,768listed 31respectively. On Barack Obama has 1889889 friends and 130449 comments 32 implying a President Obama MySpace profile generates a good amount of interaction between the President’s followers and target audience while if we look at Senator John McCain profile page on had no details of friends or comments by followers33. The extent of popularity of President Barack Obama could be seen on The, the site that tracks top White House on youtube, Twitter, 100 Twitterholics based on number of Facebook provides feeds of events followers. Site says President Obama is involving White House as they happen, the Twitter fifth most popular user with making information available for CNN above him fourth position and masses, creating communities and Britney Spears on number 2, Orpah political debates but with greater winfrey on number six, New York participation of masses than in the past. Times on number 18 to give the big picture of President’s popularity on Twitter while Senator John McCain not figuring in the list34. The methods of online presence then Senator Barack Obama used for creating history and winning the Presidency, the use of online tools like Twitter, Facebook, youtube as medium of information dissmentaion continues. Not, only is information updated on White House website, but information is also available Twitter, Facebook, youtube, something that not be done in the past. 31 Senator John McCain on Twitter 32 Barack Obama,US President on 33 Senator John McCain on 35 White House on Twitter 34 Barack Obama,US President ranking Twitter 13
  14. 14. news organizations reported about his determination to hold on to his blackberry and have a similar device with him in White House. The wired magazine reported that “Many agree that stripping Obama of his BlackBerry would make his transition into office extremely rough. Obama is recognized as the most tech-savvy president to date. Using the internet as a fundraising and organizing tool, Obama’s presidential campaign was the most digitally sophisticated organizing apparatus of any presidential campaign in history39”. John Podesta, co-chairman of the Obama-Biden Transition Project wrote in LA Times that “An off-line Obama isn't just bad for Barack. It's bad for all of us. The president's ability to reach outside his inner circle gives him access to fresh ideas and constructive critics”40; Lets examine if Internet, Mobile internet using his Blackberry, has played a role in boosting then Senator Barack Obama to President Barack Obama. For the same, we do a comparison of the traditional modes of information dissemination versus Internet and more specifically Mobile internet. 1. The service provided by Broadcast TV, Radio, newspaper advertisement is Popular commentator at O’Reilly radar, spreading of information about the Joshua-Michéle Ross, says that “FDR was our radio president, JFK was our television president and Barack Obama mean-to-be-an-internet-president.html will be our Internet President”38. Many 39 President Obama determination for having 36 White House on Blackberry in White House blend=1&ob=4&rclk=cti -my-blackb/ 37 40 White House on Facebook President Obama determination for having Blackberry in White House 38 What does it mean to be Internet President ry/la-oe-podesta20-2009jan20,0,2226079.story 14
  15. 15. candidate. Internet and mobile internet In contrast life of campaign message is provide the same service. 24x7 that enables the volunteer of a political party, target voters to view the 2. Unlike Broadcast TV, Radio, information anytime 24x7, anywhere. newspaper advertisement, internet video is virtually free. Hence, same service at 7. Internet allows campaign message to virtually zero cost can be provided by respond to opponents in an agile manner Internet with sites like youtube, unlike a phased manner of software dailymotion, metacafe. Yahoo video, development life cycle in TV, Radio, newspaper advertisement. An event occurs, an candidate to write a 3. Unlike Broadcast TV, Radio, reply or record a video and post on video newspaper advertisement which is a one portal or website in no time, while in way communication from the candidate TV, Radio, newspaper advertisement to the target voter, the Internet based candidate might have to look to raise campaign is two way communication money for buying a spot and then look from the candidate to the target voters for space, if available, in next morning and from voters to the candidate via or evening TV broadcast or newspaper blogs, postings on web, social publication. networking sites like facebook, myspace. Hence, internet provides room for 8. And, use of Internet for political interaction and collaboration between discourse was not limited to election the candidate and the voter, other public campaign alone. President Barack figures which enables better informed Obama and his team has brought discussion. government on internet and more specifically using social media making 4. Internet and more specifically mobile his government set standards of internet audience is huge and growing Government 2.0. specially the undecided young voters. And, it is not just White House that has 5. In political campaigns, media often adopted Government 2.0, other Federal filters out candidates views and presents governmental agencies, State the TV channel’s version of candidate government agencies are catching up views. But, with internet video too, making Government 2.0 a trend information is passed in direct manner rather than an isolated case of existence. without any third party in between adding the authenticity value missing in traditional means like TV, radio. 6. Life of a campaign message is more longer in Internet as video on Video portal or message on a website as against a TV or Radio broadcast or newapaper ad which happens on a particular day and time and vanishes. 15
  16. 16. And, in State government’s Twitter site, right from 1. Government of Massachusetts, “ massgov Massachusetts Libraries -- There's something for everyone!” to 2. “GovernorRiley We have jumpstart job growth in Alabama now - not next year, not two years from now - but right now. Here's our plan:”, to 3. Government of Arkansas “Arkansasgov Gov. Beebe's Weekly Column - Challenging our Students in Science, Math and the Real World: 45”, On searching popular social media sites Facebook,, Twitter one finds that apart from White House presence there other federal and state agencies are catching up with ideas, choice of communication medium favorite to President Obama. And, presence on social media space is not just being present for sake of presence. t President Obama led White House has 1,691,994 Followers and his team has sent 175 Tweets on Twitter42, White House 445,844 fans on Facebook43 and a separate dedicated channel called WhiteHouse channel on youtube.com44 Even the RecoveryDotGov is on twitter 41 Various state government, state Governors giving updates about Federal funds now on Twitter spending and details about the spending. White House on 42 White House on Twitter blend=1&ob=4&rclk=cti 43 45 White House on Facebook State government on Twitter 44 16
  17. 17. While Federal Communications Commission is on Facebook. 48 Government agencies announcements, gazettes that were in past releases as press release, in newspapers for dissemination of information to the FCC is just one of the many agencies of masses, now happens in much faster the Federal government and less than manner, with greater degree of public one year of its existence it has 1,612 participation, with sense of community, fans47 while state department like at a lower cost, less amount of effort on Department of education, New York has part of government agencies. as many as 2912 fans on Facebook. More importantly, Facebook, Twiiter have brought information for use of average citizen and thus making it a fan club where two way discussions can take place and hence greater degree of scope of participation. However, the latest in trend has been the Widgets of white House that has caught the attention of masses. Launched in January 2010, this widget enables getting information instantly on I-phone. The vision of open Government, President Obama led White House has 46 Federal Communications Commission on 48 Facebook Department of education, New York fans on Facebook 47 FCC fans on Facebook ref=search&sid=521114188.1511237012..1 17
  18. 18. started, other governmental agencies are passengers travelling via Amtrak to get now following or catching up. instant information about train schedules with switch of a button on their Amtrak recently released its Widget, Blackberry, I-phone. making it possible for thousands of Decline of Broadcasting and the rise of portable social media Eight decades after pioneering the But, is this something new unseen event concept of broadcasting, NBC, the or was it coming for years. leader in the broadcasting industry and In an article way back in July 2004 after having influenced the lives of edition of Business week, the magazine millions of people in US and round the ran front cover story about “The globe, NBC, is on the verge of a startling Vanishing Mass Market”51. This itself move. gave clear of things to come in future, that is, the decline in traditional media ad spend while rise of Online media. As, NBC, prepares for a takeover by a Cable operator, Comcast, the move illustrates broadcast television's decline writes David Bauder in Business Week49". David writes that “Broadcast What Business week reported in 2004 people, the folks who remember when about decline of the mass media has now television was ABC, CBS, NBC and further glorified this year by the fact that little else, used to look down upon mass media advertising revenue declined cable”. “This is highly symbolic," said Tim Brooks, who had worked at NBC for 20 years and now writes books on television history in the article. David writes that a Comcast takeover is largely symbolic now, though practical reality ultimately may overshadow that as NBC and other broadcasters face declining audiences50. 49 Broadcast pioneer NBC prepares for cable takeover ialnews/D9BVPUKO0.htm 51 ialnews/D9BVPUKO0.htm The Vanishing Mass Market 50 Broadcast pioneer NBC prepares for cable takeover /04_28/b3891001_mz001.htm 18
  19. 19. as per Morgan Stanley report. workers will lose their jobs”52. Starbucks was reportedly losing edge and was facing increased competition from McDonald’s and Dunkin’ Donuts. The company decided to retrain employees and self innovate. Starbucks took steps to engage its customer and discuss suggestions to improve the coffee store. The same year, 2008, Starbucks launched a new website to engage its customer community online to get, share and discuss suggestions from the customers to improve Starbucks. Called the My Starbucks Idea, it has already generated 70,000 ideas by its first birthday in March 200953. “Your Ideas. Your Starbucks. A web blogger writes that “In years to come, broadcasting won't be broad and it won't be casting. The dominance of one way, passive media consumption is over”. It is said no revolution is bloodless. If traditional media, TV, Newspapers, radio are making big losses, players like Nintendo Wii, Microsoft X Box, Amazon-on-demand, TiVo are making money out of the market lost by traditional media players. But, why is there a decline in age old Broadcasting model of media? What would make your Starbucks experience perfect? We know you've got The answer is can be found searching on ideas - big ideas, little ideas, maybe even Social media sites and searching for totally revolutionary ideas - and we want Corporate America presence in Social media channels. 52 Starbucks Corporation in 2008, echnology/2008028854_starbucks02.html announced “It's closing 600 53 underperforming stores in the United starbucks-idea-generates-70000-ideas-in-its-first- States. As many as 12,000 Starbucks year/ 54 ?lsi=0 19
  20. 20. to hear them all. Together, we will shape the future of Starbucks”55. Based on customer feedback, Starbucks deployed free WiFi and started frequent buyers bonus beverage program amongst others ideas. However, it is not Starbucks alone that has taken the Social media route to build community, get customer engagement and participation in improving company’s performance. And, it is not just Starbucks that has embraced social media as channel for building its brand, connecting with consumers and making communities. Competitors food chains like Subway, McDonalds have quickly jumped in the social media bandwagon. Even big time players like the beverage maker, Pepsi, Coke have joined this new medium. Given that young audience is likely to be more social media savvy, Pepsi, Coke, car makers like Fod, Toyota, have all jumped in to encash the 55 virtues of social media in their attempt to ?lsi=0 56 catch the attention of their customers. 20
  21. 21. These development show that social media for business has matured and has gone main stream for the business and enterprise. Social media for improving enterprise productivity. 21
  22. 22. Starbucks Corporation in 2008, announced “It's closing 600 underperforming stores in the United States. As many as 12,000 Starbucks workers will lose their jobs”57. Starbucks was reportedly losing edge and was facing increased competition from McDonald’s and Dunkin’ Donuts. The company decided to retrain employees and self innovate. Starbucks took steps to engage its customer and discuss suggestions to improve the coffee store. The same year, 2008, Starbucks launched a new website to engage its customer community online to get, share and discuss suggestions from the customers to improve Starbucks. Called the My Starbucks Idea, it has already generated 70,000 ideas by its first birthday in March 200958. “Your Ideas. Your Starbucks. What would make your Starbucks experience perfect? We know you've got ideas - big ideas, little ideas, maybe even totally revolutionary ideas - and we want to hear them all. Together, we will shape the future of Starbucks”. Based on customer feedback, Starbucks deployed free WiFi and started frequent buyers bonus beverage program amongst others ideas. 57 echnology/2008028854_starbucks02.html 58 starbucks-idea-generates-70000-ideas-in-its-first- year/ 22
  23. 23. Education: From Lecture in Buildings to collaboration on Podcast, E-reader. “College May Become Unaffordable for The gravity of the problem can be gauzed Most in U.S.”, according to New York from the fact that US is one the highest Times report published in December 200859. spends round the world on education and innovation. According to the biennial report from the National Center for Public Policy and Higher Education, “the rising cost of college Hence, it is not just the Healthcare that — even before the recession — threatens to needs reform, close on heels education is put higher education out of reach for most vying for attention of society. Americans”. The report found, published college tuition and fees increased 439 Today, lectures from Harvard, MIT, percent from 1982 to 2007 while median Duke school, Caltech on family income rose 147 percent. Student and there is a separate youtube channel borrowing has more than doubled in the last decade. “If we go on this way for another dedicated to education. 25 years, we won’t have an affordable Distance is no longer a hindrance in system of higher education”, Patrick M. getting service of education as lectures Callan, NCPPHE President in NYT article. both video and real time classes can happen on web. This has resulted in rise to Distance and online learning. 59 New York Times report 60 3college.html .pdf 23
  24. 24. 4.Education is now not dependent on brick-and-mortar buildings and can now be hosted on the web. This will in long run help in reducing the cost of education. 5. Abundance of information available on the web, both students and teachers can have better informed resources for pursuing studies. This has made Education as a service just like Software as a service. But, for benefits to occur in long run, some fundamental changes in education structure, governance and delivery of education would need change. Areas like Library resources management need to be improved by making resources available online and not just in the brick and mortar libraries but online libraries, investment in online class rooms. Books are long gone and instead power point presentations on Slidesshare,, Podcasting are the in thing. These web tools have made life easier for both students and teachers. Advantages of web tools in education at Corporate offices, College-University and continued education are the following: 1. Learning has become collaborative 2. Two way communication and exchange of ideas between the teacher and pupil giving room for feedback, an important criteria for learning. 3. 24
  25. 25. two way exchange of ideas, duplex. This ill considerable bring don costs of education. Books are dated, teachers knowledge is dated while power point presentations by people round the world is constantly changing, when we are awake and also when we are asleep. Digital books, youtube lecture on mobiles. Google bringing digital books on Smartphones. Apple introduces application for digital books on i-phone. 61 Created by author. 62 6. Live google during the class is slowing becoming are norm rather than just one isolated case. Education like TV Broadcasting has come of age where a teacher broadcasts lecture to student and students listen. Rather it has become a 62 Reader in Library with e-reader 61 Google images a-gadget/rex_798432e.jpg 25
  26. 26. 26
  27. 27. Mobility, GPS and Location based services “ Inside the GPS revolution it's more Hotel, airlines and tourism: However, if than maps and driving directions: apart from finding destination maps you location-aware phones and apps now deliver the hidden information that lets are also interested in booking airlines users make connections and interact with tickets, hotels, can you get the service the world in ways they never imagined. while being mobile? Yes, widgets like The future is here and it's in your Travelocity.com64 ,, pocket63” – writes The Wired magazine’s if you also looking to Eric Baba in January 09 issue. Lets negotiate the best price then examine author’s thesis.’s negotiator widget is for you but Priceline.com65 , would do it for you on your I-phone or android smartphone66. Driving directions: If you have a GPS, you can say good bye to your Tourist guide, the bulky and costly maps books However, if you a new resident in a if you are a tourist wanting to travel locality you can search the nearest distant places. Mobile applications, restaurants, cinema houses, malls, popularly know as Widgets, like Google schools, hospitals, not to say the nearest grocery shop, books store, services like maps, yahoo maps, Garmin, TomTom carpenter, cleaner for which one had to could provide you easy depend upon bulky yellow pages way for traveling to a new destination, directories send by local chambers for easy routes. 64 Travelocity widget for hotels, travel 65 on mobile for hotel search 63 Inside the GPS revolution - h 66 e/17-02/lp_10coolapps?currentPage=all for mobile 27
  28. 28. commerce to houses in the past. Now, 4 million reviews written and 15 million one can get all that information on touch visitors a month, Yelp is a growing force of a button in your moving vehicle in the food-obsessed corners of the thanks to widget like Poynt.com67 on Web”70. The reason for popularity of Blackberry and recently the leader in this Yelp lies in the fact that it not only does field Craigslist came up with Mobile it provide information but also gives version68. reviews by the customers who have availed the services and so it adds authenticity and confidence for the customer who is about to avail the service. Real Estate deals Shopping However, if you are in Japan then you can even buy product and services over your phone. Application named ShopSavvy makes it easy for impulse buyers to find a best deal. Shoppers in Japan can scar the barcode with the camera on their smartphone and this Mobile widget will show how much the products costs online as well as other But, it is another widget, that nearby stores. One can even get product has been news as one of the most in reviews right on Smartphone. demand application and has been featured in Time magazine as well as New York time. Times says Yelp has outdone popular sites like Yahoo Local “If it's a restaurant, shop or business, it's probably been reviewed on Yelp — an independent site with millions of user- submitted evaluations. Yelp's got a gaggle of rivals — most notably Yahoo! Local 69”. Yelp has been profitable as local business post their ads on Yelp. The effect of Yelp could be gauged from the fact New York Times said “But with 67 Mobile yellow pages - 68 Craigslist mobile widget 70 New Times on Mobile widget Yelp 69 Yelp widget review by Time magazine elp.html?_r=1&scp=1& 0,28804,1812202_1812206_1812475,00.html 28
  29. 29. In era of smartphone, from gps to location based services to yellow pages are available via mobile widgets and are available on push of a button without even your presence in that area. What does this mean for a tourist, a new resident, a busy officer goes? Convenience of locating new location and distant places for sight seeing, nearest hotels, school, stations. Last minute alerts about traffic congestion & alternate routes. Ease of use Smartphone making GPS a low cost utility rather luxury. Use of augmented reality in future that can reduce long cues at the museum, historical places of interest. Pin-pointed location based advertising as against high cost and mass hoarding that could enable growth of location based services. 29
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  31. 31. Merging of three screens, TV, Laptop and Mobile Neilsen, the marketing and media agency, in report Three Screen examples of companies activelt involved Report reported shows considerable year in developing software for UnUP. over year growth in terms of time spent for DVR (up 21.1%) and online video (up 34.9%) in Q3 2009. Channels on play on with touch of 71 button on remote. If broadcasting companies like NBC, CBS, ABC in US; BBC in UK, Channel 9 in Australia, were the big movers and shakers of the 1970’s and 1980’s decade it is the Youtube, Hulu, Facebook, Qualcomm, which are the drivers of change in the 2010 era. What we all knew that the Online video is growing what took many by surprise A TVersity Media Server and we bring was the growth of DVR. If we examine you support for Premium Web Content recent research done in this area, one (including full TV episodes) from names protocol that has been a game changer like Hulu, BBC iPlayer, Joost, CBS, for consumer watching content at home, NBC, The WB,, ESPN, NFL, it is the UnUP, the Universal plu and Comedy Central, South Park, Marvel, play protocol. Players like Roku, The Discovery Channel, National Tversity, Playon, established players like Geographic Channel, and more.72 Amazon-on-demand video, Netflix are This is the culmination of an almost 5 year effort, to bridge the world of 71 Internet Video with the TV. content/uploads/2009/05/nielsen_three_screen.p ng 72 31
  32. 32. However, it is not just on TV that we watch videos. Portable devices like I- phone, I-pods, Sony playstation are others. Youtube Hulu 75 Myspace Netflix and Tversity76 77 78 79 74 Morgan Stanley Economy + Internet trends report March 2009 75 Morgan Stanley Economy + Internet trends report March 2009 76 Morgan Stanley Economy + Internet trends report March 2009 77 73 Morgan Stanley Economy + Internet trends report March 2009 78 Morgan Stanley Economy + Internet trends report March 2009 79 Morgan Stanley Economy + Internet trends report March 2009 73 32
  33. 33. Mobile payment comes of age pioneered by Paypal and now tussle to retain customers by retailers like, banks like Bank of America, Chase begins "Pay for stuff with your mobile80”, ran goods and services like car parking and tagline for Simpay, a mobile payment vending machines84”. scheme founded by Orange, Telefónica Móviles, T-Mobile and Vodafone in However, in 2005, New York Times 2004. reported that the venture had collapsed. NYT said in report that “the complexity Then (2004) CEO of the Simpay, Tim of instituting a service bringing together Jones, said, “We intend to focus initially sometimes bitter rivals plagued Simpay. on under-ten euro on-line mobile Its collapse highlights the difficulties payments for digital content. This lower that rivals in any industry have in value payment space is a huge coming together to promote a service or opportunity for revenue generation and a standard that could potentially benefit is yet largely untapped. We believe all sides”85. Simpay will be a catalyst in bringing The 2005 NYT report stated that over 1billion of extra industry “Mobile phone companies and transactions by 200781. Simpay focused merchants have long dreamed of having on scheme for micropayments that customers use their cellphones to make would have microcharges. It was to have purchases of anything from its technical launch by the end of 2004 downloadable songs and ring tones to and be commercially available in early concert tickets. In Europe, so-called 2005.82 Simpay was meant to provide a mobile commerce remains a niche single platform to deal with the routing, industry at best, in part because the clearing and settling of payments made services used to facilitate purchases have with mobile phones.83 proved to be too complicated for most consumers86”. Using Simpay, “Consumers will be billed and pay for these via their Just one year after the collapse of mobile operator account. In the future Simpay, March 2006, Pay Pal launched Simpay expects to offer products its Mobile payment system, Pay Pal optimised for higher value items like mobile in UK reported MobileEurope87. flowers and tickets as well as physical 80 84 04-simpay_mobile_payment_platform_a.htm 04-simpay_mobile_payment_platform_a.htm 81 85 04-simpay_mobile_payment_platform_a.htm y/27iht-simpay.html?_r=1 86 82 y/27iht-simpay.html?_r=1 Standards-Watch-Simpay-Reaching-an- 87 Untapped.html 111909/PayPal_to_launch_mobile_payments_ser 83 vice_in_the_UK.html y/27iht-simpay.html?_r=1 33
  34. 34. According to PayPal, the service will immediately. enable people to buy goods by sending money through their mobile phones. It will also enable PayPal users to send money to each other via their mobile phones using the company's person-to- person payment service. Using PayPal Mobile's "Text to Buy" service, consumers will be able to make instant purchases, such as CDs, DVDs, shoes and clothes, by sending product codes via text message. Items will then be delivered to home addresses already saved in the buyers' PayPal accounts. Pay Pal says that the merchants who have signed up to PayPal's new mobile service will be able to open new direct sales channels to buyers, while consumers will be able to see an advertisement - in a magazine, or on TV for example - and purchase products Then Chief executive of PayPal Europe, Geoff Iddison, in interview in 2006 said "The system will kick-start mobile payments in the UK and globally, and revolutionise the way people pay, as well as how companies can track advertising effectiveness”88. Iddison had added that "The system is password protected, so even if an account holder's phone is lost or stolen, the PayPal account remains secure. Like all transactions with PayPal, mobile payments are safe for all our users and customers' financial details are not shared with merchants: they remain within the PayPal network at all times". 88 111909/PayPal_to_launch_mobile_payments_ser vice_in_the_UK.html 34
  35. 35. With more than 78 million active accounts in 190 markets and 19 currencies around the world, PayPal enables global ecommerce89. And, now it is m-commerce. Management consultancy firm, Arthur D. Little, in its 2009 report cited that “In the last five years, markets with mobile payment offers have matured with a variety of players entering the industry value chain and new services being launched. The key issues now being addressed include cross border interoperability and standardization. While the prevailing financial crisis poses challenges to value chain players, we still believe that m-payment services will significantly develop over the coming years with the rise of mobile internet, the continuous improvement of mobile handsets and the younger generation’s preference for mobile Arthur D. Little forecasts global m- services90”. payment transaction volume to reach approximately USD 250 billion by 2012, an increase of 68% p.a M-payment transaction volume in developed markets is expected to grow at 56% p.a., representing 35% of the total transaction volume in 2012, compared to emerging markets with a 76% p.a. growth, accounting for 65% of the total volume in the same year M-payments are unlikely to substitute existing payment. Despite the current hype, Arthur D. Little does not expect to see a massive Near-Field- Communication (NFC) adoption in a majority of developed countries until 2011 at the earliest In emerging countries, Arthur D. Little expects m-payments to become the first widespread cashless payment system. 89 90 35
  36. 36. And, it is not Paypal alone. s/ ID=CitiMobile&Promo_ID=CH34&Pro spect_ID=901CA46B29B740318E9544 773040393F 36
  37. 37. content/uploads/2006/12/time.jpg Bibliography 14. Author David Carlson 1. Charles Darwin quotes content/uploads/2006/12/time.jpg arles_darwin.html 15. Flick photo of Web 1.0 vs Web 2.0 2. Forrester researcher, Christopher Mines, presentation, “The next big thing for IT” 16. David Amano, Harvard Business publishing mines /10/have-we-come-fu.html 3. Forrester report at WITSA, World Information 17. Technology and Services Alliance st2_5474170-social-network.jpg 4. WITSA, World Information Technology and 18. Services Alliance 19. Twitter, the fastest growing site icPolicyReport08.pdf e/twitters-tweet-smell-of-success/ 5. internet-trends-2009-from-morgan-stanley 20. Social network, the new global footprint. 6. -networking-new-global-footprint/ 7. TOWARDS MORE USABLE MOBILE 21. APPLICATION DEVELOPMENT Dr. W. M. Lim, Mobile Technology, Applications 22. and Systems, 2005 2nd International Conference on 23. 8. Comparative study of "functional" mobile applications, Papadopoulos Homer, -the-old-news-feed-use-facebook-for-iphone/ Athens, Greece speaking at Personal, Indoor and Mobile Radio Communications, 2008. PIMRC 2008. IEEE 19th International Symposium on 24. Web summit 2.0 in 2008, SFO 9. Morgan Stanley Economy + Internet report October 2009 at Web 2.0 Summit – San hedule/detail/5066 Francisco 25. Advertising Age magazine 10. NTT DoCoMo 11. Portable PC rise 26. President of AOL’s Platform A sessionId=&containerId=prUS22154210&sessio marketer-of-the-year/ nId=AKSDRCJNSHOXYCQJAFDCFEYKBEA VAIWD 27. Barack Obama,US President on Facebook 12. Morgan Stanley Economy + Internet report q=barackobama&ref=ts October 2009 at Web 2.0 Summit – San Francisco 28. Senator John McCain on Facebook 13. Front cover of Time magazine Dec 2006 37
  38. 38. 29. Barack Obama,US President on Twitter 43. starbucks-idea-generates-70000-ideas-in-its-first- year/ 30. Senator John McCain on Twitter 44. content/uploads/2009/05/nielsen_three_screen.p 31 Barack Obama,US President on ng 45. Morgan Stanley Economy + Internet trends 32 Senator John McCain on report March 2009 33 Barack Obama,US President ranking Twitter 46. Morgan Stanley Economy + Internet trends report March 2009 47. Morgan Stanley Economy + Internet trends 34 Broadcast pioneer NBC prepares for cable report March 2009 takeover D9BVPUKO0.htm 48. Morgan Stanley Economy + Internet trends report March 2009 35 Broadcast pioneer NBC prepares for cable takeover 49. Morgan Stanley Economy + Internet trends D9BVPUKO0.htm report March 2009 36 The Vanishing Mass Market 50. Morgan Stanley Economy + Internet trends /04_28/b3891001_mz001.htm report March 2009 37 Decline of Starbuck’s revenue 51. New York Times report chnology/2008028854_starbucks02.html 3college.html 38 My Starbuck ideas generate 70000 ideas 52. idea-generates-70000-ideas-in-its-first-year/ df 39 My Starbuck ideas 53. Google images lsi=0 54. Reader in Library with e-reader 40 My Starbuck ideas a-gadget/rex_798432e.jpg deaList?lsi=0 55. Inside the GPS revolution - 41. e/17-02/lp_10coolapps?currentPage=all 42. 56. Travelocity widget for hotels, travel chnology/2008028854_starbucks02.html 57. on mobile for hotel search h 38
  39. 39. 58. for mobile 72. 73. 59. Mobile yellow pages - 4-simpay_mobile_payment_platform_a.htm 60. Craigslist mobile widget 74. 4-simpay_mobile_payment_platform_a.htm 61. Yelp widget review by Time magazine 75. 0,28804,1812202_1812206_1812475,00.html 27iht-simpay.html?_r=1 62. New Times on Mobile widget Yelp 76. elp.html?_r=1&scp=1& 4-simpay_mobile_payment_platform_a.htm 63. 77. 4-simpay_mobile_payment_platform_a.htm 27iht-simpay.html?_r=1 64. 78. 4-simpay_mobile_payment_platform_a.htm 27iht-simpay.html?_r=1 65. tandards-Watch-Simpay-Reaching-an- Untapped.html 66. 27iht-simpay.html?_r=1 67. 4-simpay_mobile_payment_platform_a.htm 68. 27iht-simpay.html?_r=1 69. 27iht-simpay.html?_r=1 70. 11909/PayPal_to_launch_mobile_payments_serv ice_in_the_UK.html 71. 11909/PayPal_to_launch_mobile_payments_serv ice_in_the_UK.html 39