1. The Next Killer Mobile Application Kellogg School of Management Northwestern University

2. 2 Agenda l Paper objective and scope l The Wireless Communications Industry Landscape l Wireless Applications l Framework l Next Steps Wireless Industry Wireless Industry Broad Framework Broad Framework Specific Applications Killer App

3. 3 Objective & Scope Objective Perform an in-depth study of mobile wireless applications whether over personal networks in homes and offices or over metro access networks in the outdoors. The study will create a framework that will be used to evaluate these applications and identify a “killer app”. Scope The scope of the paper is limited to current and future applications. The nature of the wireless network is not explored. The applications are limited to those used on mobile devices due to their versatility and market penetration.

4. 4 Agenda l Paper objective and scope l The Wireless Communications Industry Landscape l Wireless Applications l Framework l Next Steps

5. 5 Key Trend – Network Convergence TodayTomorrow Telephone network Mobile radio network IP-Network of tomorrow will run using new protocol IPv6 and provide one network for everything Internet

6. 6 Agenda l Paper objective and scope l The Wireless Communications Industry Landscape l Wireless Applications l Framework l Next Steps

7. 7 Mobile Application Segments Within the mobile applications space, products vary across a wide spectrum. PersonalProductivityPersonalProductivityEntertainmentEntertainmentm-Commercem-Commerce The characteristics of an application differs based on its segment.

8. 8 Personal Productivity – Location based info streamed or on-demand CategoryApplication WeatherCheck the forecast in your area. MapsView street maps around your location MoviesInformation on theatres, movies and times ReviewsRestaurant, movie, attraction reviews Business/Gov’tGet information of interesting places/offices

9. 9 m-Commerce – Location based advertising, mobile purchasing l Phone Bar Code Scanners - allow the user to get information, place an order and pay for products through their phone. l eWallet – Cash values stored in a phone SIM card to pay for goods/services. l New SimPay service (UK) - allows users to make purchases by waving phone over an electronic panel and then typing in a security code. l Money Transfers through SMS – allows users to transfer funds by sending a message to the recipient.

10. 10 Entertainment Applications Vehicle based mobile entertainment l advantage of power supply and screen size allows for more powerful devices. l increases potential of possible applications. l Mobile IP TV –- Movie clips or videos over wireless network l Mobile peer to peer gaming – wireless infrastructure allows users to participate in multi-player games when on the go or at home Hand held mobile gaming – 1bn market worldwide (1/2 in Japan). Downloading games and mobile P2P games

11. 11 Agenda l Paper objective and scope l The Wireless Communications Industry Landscape l Wireless Applications l Framework l Next Steps

12. 12 Evaluation of applications - Framework l User Cost l User Benefit l Resource Requirements l Network Externality l Connectivity w/ other Apps l Connectivity with People l Security Concerns Determine the importance of each measure for the success of the application (100 pts assigned across 7 measures – unique to application). Determine how effectively the app addresses the measure. The framework has 7 measures of utility that are applied to each application: Step 1: Step 2:

13. 13 Evaluation of applications - Framework Importance Of Measure 0 100 Network Externality AddressesIssue 0 % 100% l The Importance of the Measure is mapped on the x-axis. l The Effectiveness of the application to address the measure is on the y- axis. l The application will be assigned a point score based on the quadrant it occupies. l The points for the seven Measures are added together for the total score – highest possible is 100 points Low Value Neutral Wasted Value High Value

14. 14 Importance Score 100 points are allocated among the seven attributes.

15. 15 Effectiveness Score An application is scored for effectiveness on each measure on a percentage scale, indicating how well it executed on that measure

16. 16 Evaluation of applications - Framework Calculation of framework score – example l A fictional application in the m-Commerce Segment receives the following scores for the framework measures: ImportanceEffectiveness Score User Cost 10 70%7 User Benefit 30 20%6 Resource Requirements 15 60%9 Network Externality 10 80%8 Connectivity w/ other Apps 5 40%2 Connectivity w/ People 10 60%6 Security 20 50%10 Total48

17. 17 Agenda l Paper objective and scope l The Wireless Communications Industry Landscape l Wireless Applications l Framework l Next Steps

18. 18 Next Steps l Conduct industry interviews –Complete research on latest technologies/applications –Gather opinions on future of industry/apps l Hone the framework –Use current/past apps to determine appropriate importance factors l Determine next Killer App –What is the next application that will gain mass- market adoption?