Promoting the information society is not easy. I have been searching for short, crisp and populistic phrases, that tell you in a few words, what the information society is all about and which underline the difficult change we are facing.
One of my most favourite sentences has been (in Finnish) missä "paperi siellä tehotomuus". Translated into English it would be something like "where there is paper, there is inefficiency". The English translation is not as good as the original Finnish. The Finnish wording also points toward the local paper industry, which has been a back bone of the Finnish industry. In recent years the local paper industry has cut about 10 000 jobs and hence underlines the inefficiency of paper.
I have used the phrase to search for new areas where inefficiency might be found. It is surprising that shops still give you a paper receipt and there is no way to get the receipt electronically. Most tickets remain in paper format, although an electronic ticket would be very convenient, when filing ones travel expenses.
Every now and then I come up with real surprises. Todays Helsingin Sanomat (1.7.2011) pointed out that in the Finnish Parliament the members of parliament can not use their lap top computers whilst Parliament is in session. Paper is allowed and mobile phone are allowed. The distinction between a smartphone and a portable computer is already difficult.
Oras Tynkkynen, a member of the green party, recently brought an IPad into the main session room. When looking at the stacks of paper members of parliament bring into the main session room, its is rediculous - as well as - totally inefficient -, that they can not bring a computer into the room. IPads and other portable devices have the potential of replacing these stacks of paper and thus introducing at least some inefficiency.
It will be interesting to see, whether all computers will remain under ban. If the IPad is not allowed and the Nokia smart phone is allowed, we will be facing an interesting discussion....
My assumption is, that we will soon see computers and similar devices in the main sesion room. The next interesting question is what will the members of parliament start to do with their intelligent portable devices.
perjantai 1. heinäkuuta 2011
maanantai 27. kesäkuuta 2011
Who are Nokia´s customers?
I was recently teaching at the Helsinki Summer University and used an article by Harvard Business Review to teach how value can be created and in particular captured in a value net environment (hbr 1995 July August). We went through the cases of the article and the students were fast to learn, but pointed out that these models are not applied in the modern environment. We started to debate how these models could be applied in present business environments.
A very simple question is to ask, who is Nokia´s customer. You can replace the word Nokia with any manufacturer of a mobile phone. One would assume that the customer is the person who buys the phone. This however is only partially true. Every mobile phone comes with a place for the operator Sim card. The phone has been designed in such a way that it really has no major value unless you connect it with an operator. Thus Nokia´s customer is also the operator and here there is a conflict of interest. How can Nokia get as much value as possible from the end user and at the same time optimise the phone for the operator so that the operator can receive as much value as possible.
I have an E7 phone. It´s great, but I am still not 100% sure if I am using wlan or 3 G connection. In particular I would like to use the wlan to download maps and the 3G to show my position on the map - because roaming charges are excessive.
As a consumer I would be wise to try to unbudle the operator from my mobile phone. This can be done by buying an Internet tablet e.g. an Archos. It comes with in built wlan connectivity and also with blue tooth. On the rare occasion that I would actually need operator connectivity (e.g. 3G) I could couple tha Archos device through a bluetooth connection to a mobile network. This needs a little skill, but ensures that it is the consumer who captures value.
The operators and mobile phone manufacturers need to be concerned. However they can also ensure that value creation is made as easy as possible for the consumer. Try for instance taking a photograph and uploading it to upoyr mobile device. Easy, is it?
A very simple question is to ask, who is Nokia´s customer. You can replace the word Nokia with any manufacturer of a mobile phone. One would assume that the customer is the person who buys the phone. This however is only partially true. Every mobile phone comes with a place for the operator Sim card. The phone has been designed in such a way that it really has no major value unless you connect it with an operator. Thus Nokia´s customer is also the operator and here there is a conflict of interest. How can Nokia get as much value as possible from the end user and at the same time optimise the phone for the operator so that the operator can receive as much value as possible.
I have an E7 phone. It´s great, but I am still not 100% sure if I am using wlan or 3 G connection. In particular I would like to use the wlan to download maps and the 3G to show my position on the map - because roaming charges are excessive.
As a consumer I would be wise to try to unbudle the operator from my mobile phone. This can be done by buying an Internet tablet e.g. an Archos. It comes with in built wlan connectivity and also with blue tooth. On the rare occasion that I would actually need operator connectivity (e.g. 3G) I could couple tha Archos device through a bluetooth connection to a mobile network. This needs a little skill, but ensures that it is the consumer who captures value.
The operators and mobile phone manufacturers need to be concerned. However they can also ensure that value creation is made as easy as possible for the consumer. Try for instance taking a photograph and uploading it to upoyr mobile device. Easy, is it?
maanantai 20. kesäkuuta 2011
Smartphones? - Forget the phone and go to tablets
I am sure you all know that language is very important. It is therefore important to consider, how we should name different things and objects.
Petri Sajari, a reporter on the financial pages of Helsingin Sanomat, interviews professor Jukka Manner from the Aalto University who points out that we should really use the name "nettikännykkä" (Internet phone) instead of the word smartphone.
I was searching for a word for these new devices already six years ago and came up with the word verkotin (networking device) in a comment published in the Talouselämä magazine (27/2005 p 27). Six years ago I had dropped out the word "phone", but as you can see change is not easy. Letting go of the past is not easy. Why should we stick to the word "phone" - after all it could be called " a personal digital assistant", or "an Internet tablet".
Economists and especially game theorist use the term "utility", with which they mean the value of e.g. a product to the user. What is important to understand is that this "utility" depends on, what the person already owns. For example I already have a cheap mobile phone, worth 20-30 Euros, but good for calling. When searching for a new smartphone, I have no "utility" for the voice service because I already have the service. Hence the first requirement I drop out is voice. I recently bought an Internet tablet for 285 Euro´s.
Helsingin Sanomat, in its article, goes around shops searching for a suitable smartphone. They find out that smartphones are priced between 179 and 675 Euros. The salesmen in different shops recommend different samrtphones. The reporter can not really make sense on what he needs and argues that consumers in general are in a similar position - maybe so.
The reporter however does not understand that he should drop of the word "phone". He could get a great tablet for 300 Euro and a good enough phone for 50 Euro, so why pay 675 Euro for the combination?
Maybe, because the utility is in the fact that you can show others that you are in a position to pay 675.
Petri Sajari, a reporter on the financial pages of Helsingin Sanomat, interviews professor Jukka Manner from the Aalto University who points out that we should really use the name "nettikännykkä" (Internet phone) instead of the word smartphone.
I was searching for a word for these new devices already six years ago and came up with the word verkotin (networking device) in a comment published in the Talouselämä magazine (27/2005 p 27). Six years ago I had dropped out the word "phone", but as you can see change is not easy. Letting go of the past is not easy. Why should we stick to the word "phone" - after all it could be called " a personal digital assistant", or "an Internet tablet".
Economists and especially game theorist use the term "utility", with which they mean the value of e.g. a product to the user. What is important to understand is that this "utility" depends on, what the person already owns. For example I already have a cheap mobile phone, worth 20-30 Euros, but good for calling. When searching for a new smartphone, I have no "utility" for the voice service because I already have the service. Hence the first requirement I drop out is voice. I recently bought an Internet tablet for 285 Euro´s.
Helsingin Sanomat, in its article, goes around shops searching for a suitable smartphone. They find out that smartphones are priced between 179 and 675 Euros. The salesmen in different shops recommend different samrtphones. The reporter can not really make sense on what he needs and argues that consumers in general are in a similar position - maybe so.
The reporter however does not understand that he should drop of the word "phone". He could get a great tablet for 300 Euro and a good enough phone for 50 Euro, so why pay 675 Euro for the combination?
Maybe, because the utility is in the fact that you can show others that you are in a position to pay 675.
torstai 2. kesäkuuta 2011
01062011040.jpg
a word of warning. You should be carefull not to use the mobile operator data connection because the charges are excessively high.
you should fin a picture of big ben attached, but lets see how blogging from a mobile works.
Lähetetty Nokia-puhelimestani
torstai 26. toukokuuta 2011
Paying with your mobile
Paying with your mobile has been around for ages, but the market has never really emerged nor exploded in Finland. This recent example by the Swedes is "practical". You simply add a card reader to your mobile phone and then you can pay with any credit card in your wallet. http://www.taloussanomat.fi/informaatioteknologia/2011/05/26/ruotsalaiskeksinto-tekee-iphonesta-maksupaatteen/20117532/12
The next question is of course why do you need your wallet and why do you need to carry in your pocket a card reader. A brilliant idea would be to omit both the card reader and the cards.
This however has not been easy to implement. NFC http://en.wikipedia.org/wiki/Near_field_communication is one solution, but despite promises e.g. Nokia has not been able to introduce the product on their mobile phones http://www.puhelinvertailu.com/uutiset.cfm/2011/04/20/nokia_lipsuu_nfc-sirujen_lisaamisesta . It is not just about having another technology on your phone. It is all about building a net infrastructure.
I guess sometimes you need to go through a step by step process. For this reason the swedish invention is rather fun. Maybe I should go and get myself one of these new gadgets. Then I will go to the local supermarket and try to pay with my new gadget phone. I am sure that the cashier will not accept my payment method - they will want to use their own. It is all about who has power in the network.
The supermarket chain wants you to have their customer loyalty card, they do not want you to combine your customer loyalty cards on to your phones memory chip. They want you to pay using their cash register. New infrastructure such as electronic payments do not emerge easily, because they need to shift the power balance of existing systems.
One way to adopt e.g. a nfc electronic payment method would be for a major player like the local transport system to adopt it. Then it would be followed by small shops and kiosks. In Japan the railways have adopted the nfc system. In Finland a different system is used in local transportation and hence it is preventing the emergence of the nfc system.
The next question is of course why do you need your wallet and why do you need to carry in your pocket a card reader. A brilliant idea would be to omit both the card reader and the cards.
This however has not been easy to implement. NFC http://en.wikipedia.org/wiki/Near_field_communication is one solution, but despite promises e.g. Nokia has not been able to introduce the product on their mobile phones http://www.puhelinvertailu.com/uutiset.cfm/2011/04/20/nokia_lipsuu_nfc-sirujen_lisaamisesta . It is not just about having another technology on your phone. It is all about building a net infrastructure.
I guess sometimes you need to go through a step by step process. For this reason the swedish invention is rather fun. Maybe I should go and get myself one of these new gadgets. Then I will go to the local supermarket and try to pay with my new gadget phone. I am sure that the cashier will not accept my payment method - they will want to use their own. It is all about who has power in the network.
The supermarket chain wants you to have their customer loyalty card, they do not want you to combine your customer loyalty cards on to your phones memory chip. They want you to pay using their cash register. New infrastructure such as electronic payments do not emerge easily, because they need to shift the power balance of existing systems.
One way to adopt e.g. a nfc electronic payment method would be for a major player like the local transport system to adopt it. Then it would be followed by small shops and kiosks. In Japan the railways have adopted the nfc system. In Finland a different system is used in local transportation and hence it is preventing the emergence of the nfc system.
tiistai 17. toukokuuta 2011
Forget your PC, switch to a smartphone
I spent last week in Poland as a visiting professor at the Budcoszcz University of economy (http://www.uk.wsg.byd.pl/index.php?id=53&submenu=1). I flew from helsinki to Warsaw by plane and then traveled four hours on the train to Bydgoszcz. I decided to experiment and travel lightly with a backpack and no pc, just my Nokia E7 smartphone.
I was very carefull with the data roaming and continuously monitoring the log file to see how much data I had used. The Nokia map application was not practical. Downloading the map required so much data and was actually rather expensive. I turned to using sports-tracker.com. On the return trip I walked around the old town of Warsaw with the sportstracker on and taking pictures. These were easy to upload onto my facebook profile and hence share my route and pictures. I also tried to attach the link here, but sportstracker is presently not available (I wonder what is happening).
During my stay in Poland and whilst lecturing, I made a YouTube video of an experiment I wanted to show my students. this video is available at http://www.youtube.com/user/Villesaar?blend=7&ob=5. The size of the video is c 380 Mb. Uploading this by a mobile connection whilst roaming in Poland would have been very expensive c 400 Euro´s. Hence I believe the Eu comission will still have to do something more to ensure that dataroaming prices will become more reasonable http://ec.europa.eu/information_society/activities/roaming/data/index_en.htm . In the airport I saw people switching sim card on their I phone. I also heard that there are good applications which will allow you to switch of 3 g and allow wlan only whilst abroad. I did not find this application on my NokiaE7 (yet), but I am sure there is a strong market need for it.
I also used my mobile phone as a memory stick. However when connecting it to a computer in Poland the computer did not recognise the phone. This was a pitty and means that in practice I can not rely on the mobile phone as my only datastorage device whilst travelling.
All in all, I was satisfied having left my pc at home, when travelling. Will also do the same when travelling abroad next time round. I am sure the data-roaming tarrifs will come down or my ability to choose wlan only will become better. I am sure service focusing on a traveller with a mobile device (mobile tailored pages) will become more common. there is a huge market opportunity, which the operators and service providers could tap into, if they get their act right (i.e. data roaming prices and mobile tailored pages and services).
I was very carefull with the data roaming and continuously monitoring the log file to see how much data I had used. The Nokia map application was not practical. Downloading the map required so much data and was actually rather expensive. I turned to using sports-tracker.com. On the return trip I walked around the old town of Warsaw with the sportstracker on and taking pictures. These were easy to upload onto my facebook profile and hence share my route and pictures. I also tried to attach the link here, but sportstracker is presently not available (I wonder what is happening).
During my stay in Poland and whilst lecturing, I made a YouTube video of an experiment I wanted to show my students. this video is available at http://www.youtube.com/user/Villesaar?blend=7&ob=5. The size of the video is c 380 Mb. Uploading this by a mobile connection whilst roaming in Poland would have been very expensive c 400 Euro´s. Hence I believe the Eu comission will still have to do something more to ensure that dataroaming prices will become more reasonable http://ec.europa.eu/information_society/activities/roaming/data/index_en.htm . In the airport I saw people switching sim card on their I phone. I also heard that there are good applications which will allow you to switch of 3 g and allow wlan only whilst abroad. I did not find this application on my NokiaE7 (yet), but I am sure there is a strong market need for it.
I also used my mobile phone as a memory stick. However when connecting it to a computer in Poland the computer did not recognise the phone. This was a pitty and means that in practice I can not rely on the mobile phone as my only datastorage device whilst travelling.
All in all, I was satisfied having left my pc at home, when travelling. Will also do the same when travelling abroad next time round. I am sure the data-roaming tarrifs will come down or my ability to choose wlan only will become better. I am sure service focusing on a traveller with a mobile device (mobile tailored pages) will become more common. there is a huge market opportunity, which the operators and service providers could tap into, if they get their act right (i.e. data roaming prices and mobile tailored pages and services).
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