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Topics

- Making Strides in Consumer Electronics for Optional In-Car Mobile Phone Navigation

- Local Search Industry Channels Ad Profit into the Gutter

- Venture Capital Review on Operational Strategy

- The Future of Virtual Currency

- Digital Out-of-Home Marketing Benefits from Context Aware Location-Based Mobile Devices

- Portable Navigation Devices (PND) for After-market Service for the Car Rental Industry

- App Stores Fail in Their Offering of Social Location-based Navigation Applications



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Making Strides in Consumer Electronics for Optimal In-Car Mobile Phone Navigation by Ritesh Gupta, May 2011

 

Consumers want to use their smartphones wherever they are  including their cars.

 

The industry has been looking at ways to better integrate mobile devices and content into cars while keeping drivers focused on the road. For their part, stakeholders from the automotive, telecom and navigation industries have been focusing, independently or jointly, on improving upon the usability of services such as telephony, navigation, social networking and music in an automotive environment while keeping drivers focused on the primary driving task.

 

Companies are trying to work on options that would enable drivers and passengers to seamlessly connect, display and control mobile phone applications via an in-vehicle dashboard display. Also, consumers intend to use their mobile phone applications -- like free in-vehicle navigation -- while inside their car. The industry has been considering an enhanced in-vehicle experience by providing access to mobile applications via an automotive enabled HMI.

 

Panasonic Automotive Systems Company's Director, Product Planning & Innovation, Hakan Kostepen, believes that the smartphone and in-car infotainment industries can co-exist. He says the real challenge lies in integrating personal devices safely and intuitively into the vehicle.

 

In the case the industry witnesses a widespread adoption of smartphone integration in the vehicle, Kostepen feels one would continue to see the lines blur as navigation apps reside in many places, with user preferences and lifestyle being integrated at all times through connectivity.

 

Our expectations are around an open world. The days of closed systems are almost gone. We are on the breaking point. Shift will continue to happen. You will see much more collaborations across industries and open systems evolving around consumer demands and expectations, said Kostepen, talking about expected developments over the next 12 months.

 

Kostepen, who is scheduled to speak at the Navigation Strategies Europe 2011 conference, to be held in Berlin (15-16 June) this year, spoke to TheWhereBusiness Correspondent Ritesh Gupta about product integration. Excerpts:

 

Smartphones are being considered to be a complementary opportunity in addition to in-car offerings. Last year you mentioned that your company has embraced the opportunity of consumer electronics and automotive infotainment electronics convergence. Considering the popularity of smartphone applications, how do you think the emerging applications and content are shaping up as far as phone-vehicle integration is concerned?

 

We have just launched a connected display audio system with a major OEM with portable devices interface and applications. This product line trend will continue to grow. 

 

Emerging portable devices in automotive domain is today's reality. We must enable portable devices safely in automotive environment to enhance the in-car user experience.

 

Over the last couple of years it has been highlighted that automotive OEMs are expected to lose control over the in-car experience unless they incorporate mobile devices. They will also lose all their margins on navigation, radio, etc. in case they don't make progress this arena. What do you make of the situation today? 

 

At the end, consumers will push their choices and we all have the listen the consumer's voice.

 

We believe just like the consumer electronics, this will be a push and pull process and it will balance itself with time. We are just launching another major OEM product with an integrated navigation system from a major PND maker product integrated into an in car navigation system. If you play the margin and volume game, we expect the take rate on this system will be much higher than previous models, which is a win for everybody.

 

Considering that the focus of your company is on offering total-life solutions, how has Panasonic Automotive Systems Company banked on smartphones to improve the overall in-vehicle experience of consumers? Can you expand on some of the initiatives taken by your company?

 

We work with our Panasonic systems company closely and our product roadmap integration is an ongoing process. Smartphones and other emerging devices such as tablets, pads will continue to evolve and another side of the equation is: today's car keyless entry will also continue to shift to a much more intelligent emerging device in the near future. So our initiatives will include all Panasonic domain company segments.

 

How do you assess some of the industry-wide initiatives in this sector and which according to have you been the major developments? For instance, the industry has been in news for a new concept that would enable drivers and passengers to seamlessly connect, display and control mobile phone applications via an in-vehicle dashboard display. How do you think is going to improve the usability of services such as navigation?

 

Unfortunately industry-wide initiatives are still fragmented. So called terminal mode�or you can pick your favourite term is still a work in progress. We have to consider all the players with these initiatives. In the US, wireless carriers play a key role with these types of initiatives and sometimes they have the final say.

 

Can you provide an insight into the viability of in-car mobile phone navigation and issues of multi-tasking, screen size and safety?

 

In US, regarding screen size; bigger is better. We see 8-10-16 inch multi displays for various vehicle segments. Electric vehicles/ hybrid electric vehicles also play on bigger multi display vehicle infotainment system architectures. Panasonic Automotive Systems philosophy is around our e-cockpit vision which is a total system solution integration of all Panasonic components, sensors, HMI elements and displays.

 

It is being highlighted that one of the critical issues for vehicle manufacturers has been related to how much access to the in-car human machine interface they are ready to share with smartphones. How do you think smartphone applications are being presented in existing automotive human machine interface?

 

Most of the current solutions have much room to improve. User interface is fragmented and it lacks system approach from both angles.  But, things will continue to get better. Certain OEMs are paying more attention to total user experience more than ever. This is all good.

 

One of the major issues for manufacturers is related to automotive development cycles as manufacturers are working on reconciling the development- and lifecycles of their vehicles and the lifecycles of the rapidly becoming ubiquitous smartphone. What's your viewpoint regarding this?

 

This about architecture, which we at Panasonic spent much time and effort.

 

Flexibility and upgradability are key for vehicle infotainment systems to keep up with consumer electronics and automotive electronics product development cycles.  We have to get there as an automotive industry and Panasonic is playing a big role in this shift and committed to this shift with our OEM partners.

 

 

______________________________________________

Local Search Industry Channels Ad Profit into the Gutter

 

Why is the mobile local search ignoring the government pages and the

associated Ad opportunities?

 

So far electronic yellow page directories lead the way with restaurants,

hospitals, gas stations, and retail shops. Success has been enhanced

beyond associated display and banner Ads to include coupons, particularly

mapping of coupons and aggregation of purchases to achieve maximum

discount through group buying.

 

As for electronic white pages, competitors Facebook, LinkedIn, MySpace,

CyWorld, and Orkut are obsolescing personal directory listings.

All one needs to do is look at WhitePages.com to see they need to

include business listings to provide a platform for display advertisers

to consider the website as a channel.

 

Now is the time for R&D to focus on building government search.

Consider the predicament of needing to visit the DMV. It is an infrequent

adventure on the travelogue and usually the unremarkable facility is

located in an unremarkable neighborhood with few landmarks does not

trigger navigation memories.

 

Ideally, mobile local government search would locate and provide directions

and navigation. Also, car dealerships nearby the DMV location would be

displayed - Chevy, Audi, and Hyundai - along with the daily sales deal.

That's just one example of many. It's time to explore.

-------------------------------------------------------------------------------------------------------------------

Analyzing Rutberg

 

The Rutberg July Industry Newsletter covered the mobile advertising market,

cloud services across both consumer and enterprise markets, and a cross-carrier

payments initiative by AT&T, Verizon Wireless, and T-Mobile USA.

 

As usual, the Rutberg team provided solid analysis of current events and

their financial implications [if you would like Rutberg's indepth financial

analysis, please visit http://www.rutbergco.com/equity-research/].

 

I will now add analysis from a business management perspective and the impact

that executives would be wise to consider.

 

Mobile Advertising

Millennial Media reported in June that ad requests through the Apple OS grew

the most globally - 36%; ad requests over Android grew 23%.

 

Rutberg 10 Second Review: Momentum for the overall market and for certain

private company leaders.

 

EquisGlobal 1 Minute Review: Whether you build an Andoid OS device or

develop an app on the Android platform, Google will take a cut of the ad service.

Since most searches start at Google, the tracks connect directly to Google

ad partners regardless of who is managing the middle including Millenial,

AdMob, etc...

 

Cloud computing for enterprises

LG Uplus partners with Microsoft for cloud computing.

 

Rutberg 10 Second Review: Cloud services continue to be a material discussion

topic and opportunity for wireless and integrated carriers.

 

EquisGlobal 1 Minute Review: Cloud service, cloud computing, and cloud apps -

these are new names for old businesses known as enterprise services,

over-the-air (OTA), remote computing, Internet storage, and many more. So, why is 

- life in the cloud - compelling now?


Cloud is a term that common computer users now understand in concept,

even if they cannot fully articulate the associated solutions in technical language.

 

1. Storage is cheap.
2. Telecommuting workers can account for 80% of all workers at some large enterprises.
3. North America is losing its status in R&D to become a sales and marketing

service economy dependent on profit during good cycles and mitigating costs

during depressing cycles. In most companies, sales roles are designed for

out-of-office, constant travel with home office remote access into the corporate servers.

 

U.S. operator consortium on payments

U.S. operators take on credit cards with contactless payment trial via smartphones.

 

Rutberg 10 Second Review: In our view, the use of smartphones for point-of-sale

purchases remains a significant and untapped opportunity. Questions include:

1) who will pay for the costs within the device and at the merchant,

2) how will revenues be shared among players across the ecosystem, and

3) will consumers be willing to pay more, to subsidize the revenue requirements

for the new players in the ecosystem.

 

EquisGlobal 1 Minute Review: Banks have tried to build out a mobile wallet system,

but the consortiums did not understand the concept of  intellectual property,

thus when they invited telecom to participate, they were surprised no one

accepted the invitation to share knowledge and participate in trials.
Companies such as Firethorn and Obopay attacked the challenges, however,

the only success they achieved was acquisition and investment by device and

component builders in telecom.

 

Now, we have carriers pursuing a unified solution. North American carriers, in

addition to building out networks, act as banks/financial institutions with deep

access into customers.  The big operational questions are: will the carrier be

the banker, the billing agent, and/or quality assurance (collection of debt) through

service insurance to the business?
__________________________________________________________

The Future of Virtual Currency

 

How the future of virtual currency will affect buying and selling online 

Transactions using virtual currency will soon be executed in the cloud. 

What else is computing in the cloud?  Games including social networking

games - specifically MMORPGs are changing altitude. 

 

Additionally, the old financial models for virtual currency in games - earn or

buy are spreading beyond the fantasy worlds into the real world.   Let us

first review the old model: earning virtual currency to spend in virtual worlds

running on virtual economies is free.  Buying is not; yet, thousands of

game players use real cash to buy fake money mostly to satisfy their fan-girl

and fan-boy needs to be in the fantasy.How does cloud computing fit in? 

This is the new model. 

 

Cloud computing enables greater blowout of an ecosystem built on partnerships. 

Thus, cloud computing provides gamers, game developers, currency providers,

and bankers the opportunity to more easily come together than when storage

and processing occurred locally at the site of each participant.  The driving forces

of cloud computing are unified security and system management.

 

Additionally, in the real world, the evolution of security and system

management is raising the confidence level of online shoppers that desire to

buy real-world products. 

 

Combining new security technologies, cloud computing, and virtual currency

enable more robust ecommerce sites giving shoppers and vendors the opportunity

to come together and transact more easily.  Add innovative uses for virtual

currency earning and spending the value of the shopping experience increases. 

Buyers get more for their time and their real-world cash.

 

Security, cloud computing, and virtual currency are also going mobile. 

Consumers are beginning to see the benefits of using mobile wallets integrated

with PayPal, bank accounts, or carrier billing accounts to shop on mobile websites. 

Shopping on-the-go is becoming safe and easy.Shopping on ecommerce sites

mobile or cable enabled using virtual money can enhance any purchase. 

Virtual money can take the form of credits, coupons, gift certificates, and products. 

Consider exchanging five bowling balls for two water-skis.  Or, what about

exchanging four credits for five pizzas? And, how are the credits obtained? 

Consider credits as the free gift with purchase a shopper gets at the retail counter,

but better.  Better because a free gift with purchase is limited to a specific

product that a shopper may or may not want.  However, a credit can be

used to purchase a variety of products that a consumer desires.

 

What are some brands that could benefit by turning their products and services

into virtual money/credits to be earned by shoppers and how can those

shoppers earn credits for free? 

 

Here are a few examples:

-         AT&T shoppers earn credits by watching YouTube product demo video-        

Weight Watchers new members earn credits to shop for new clothes at Macys.com-        

Match.com new subscribers earn credits for downloading audio books on dating

from Amazon or iTunes

 

Virtual money buying real world products is easy and secure; ready for

shoppers today.  

__________________________________________________________________________________

Digital Out-of-Home Marketing Benefits from Context Aware Location-Based Mobile Devices

That which is convenient does not always make life better – junk food drive-thru, big box stores, mortgage banks on every corner – these come to mind.

So, what happens when two industries couple to delivery an ideal convenient experience?  Well, if that experience is derived from a Bluetooth enabled smart phone matched with a Digital Out-of-Home (DOOH) display that delivers proximity broadcasts, life can be better, much better.

Let us look at what is possible now.

Possible

Destination: Gaslamp Quarter, Downtown San Diego, California

Transport to Destination: Auto

Transport at Destination: Foot travel

Group: Bachelorette party

Group Objective: Consume a lot of alcohol on little cash

Commercial Objective: Bars want buyer traffic on their floor

Commercial Solution: A DOOH display company builds stand-alone poster-size boards that can also attach to sides of buildings – similar to movie poster art – enabled with Bluetooth reception of data; a smart phone manufacturer integrates a smart chip that can support WiFi, Bluetooth, and RFID; an application developer designs an app that allows the handset user to input all their favorite restaurants and bars in all their favorite cities.

So, the bar owners, application developer, and outdoor display company come together to partner and orchestrate a solution to drive traffic into the bars to increase alcohol sales. 

The solution is based upon proximity.  As the group of gals walk by the DOOH display, the handset/app transmits to the board the bar favorites for all cities.  The board recognizes those bars coded for San Diego’s Gaslamp Quarter, calculates the number of entries per bar per the bachelorette party and ranks the bars to display.  The top ranked bar is displayed on the DOOH board along with a code for discounted drinks.  A coupon could then be sent to the handset for display to the bartender or perhaps a password displayed on the DOOH board such as “America’s Finest City” for the gals to repeat to the bartender.

Here is a solution that generates sales, sends money through the economy, and perhaps, makes life or at least a bachelorette party better.

June 2010 � Partnering to Consumer Expectations by Tina Whitfield

The Gist:     

-Garmin and Avis need to reconsider their marketing partnership

-Garmin nuvi takes driver on unnecessary time-consuming and unsafe route

-Avis did not invest financially in providing a basic level of customer             support for the navigation device and users of the device