1. The Wireless Business: i.How does wireless technology address the limitations of the fixed Internet. > from the consumer’s perspective > from the marketer’s perspective. ii.Will non-voice-based wireless applications capture the consumer or the corporate market first? Why?

2. Projected demand for Applications Projected Revenues per Application New mobile applications will yield significant new revenue potential * Across 2G, 2.5G and 3G networks. Applications in parenthesis are expected to be the main revenue generators within each category. Source: DCI Research & Analysis JP Morgan/Arthur Andersen—Wireless Data, October 2005. Nokia, New Killer Apps Application Must-Haves Add. apps from other sources US$ 2005 2006 2007 2008

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

4. Wireless on the Rise Although the U.S. and Canada lag other countries, projected growth in mobile data adoption is extraordinary. Wireless devices are now more commonplace than wired computers in North America

5. Mobility is much more than phone calls and e- mail… More than movement… Mobility is not just about movement of people and goods, but about technology everywhere Workplace Home Leisure Shopping Dining …and more than just people Mobility is not just about communication between people, but also between machines and devices Mobility augments the capabilities of people and devices

6. Sources: DiamondCluster 2001 Senior Executive Survey of 150 companies, InformationWeek Leading companies have mobility on their radar screens 35% 42% 49% 0%10%20%30%40%50%60%70% Supply Chain Management Order Entry Order Status Sales and Support 42% 65% 0%10%20%30%40%50%60%70% Scheduling Customer Database Email Communications 2/3 companies have deployed or are actively exploring mobile solutions Focus is on service and support functions initially 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 32% 30% 29% 9% Not Addressing Actively Exploring Monitoring Already Launched 91%

7. Four characteristics distinguish Mobility: Presence Mobile devices will be our constant companions, whether we carry them with us or encounter them in devices we use everyday Immediacy Freedom from a stationary PC means we can access information or conduct transactions as close as possible to the instant we need it Location Freedom from a stationary PC also means we can access information or conduct transactions as close as possible to the place in which we need it Interest Consumers in a certain location and a specified time can be instantly unified by their common interests

8. Who Can Identify Killer Apps? Companies/Entrepreneurs who know where the economic value (client side) of wireless technology comes from! Companies/Entrepreneurs who understand the perceived benefits of wireless technology for the end user!

9. More Concretely: Market your application (e.g., interactive, location- based game) to Network Operator! What do you need to ask yourself… Does my application/service increase air time usage (such as network gaming or movie ticket purchasing)? Does my application/service perform a function that is so compelling to customers that everyone will want to use it.

10. Identify a wireless service to sell: What is the value proposition you offer to your various stakeholders? Under what ‘P’ does your service fall? How will money flow? What are your information needs to implement this service and where do you get it from?

11. Wireless E-Business Identifying the Next Killer Application in M- Commerce

12. Two Examples of Potential Killer Apps: 1)Wireless Medicine 2)Mobile Asset Management (ex. Cars)

13. Wireless Medicine

14. Wireless MD Problem: 98,000 Americans die each year as a result of medical mistakes – Institutes Of Medicine Regulations, complexities increasing Pressures to achieve quality, cost, and care standards New medications, methods introduced daily Physicians increasingly pressed for time

15. Information Flow and General Business Model Family Contact Hospital Patients Primary Physician Notification WAP, HTTP Interface Central database management Ambulance Crew Scan Bar Code Wireless MD Notification Patient’s Condition Patient’s Record Bar Code Information Instant Communication

16. Revenue Model Most likely Subscription-based! Pharmaceutical Companies Hospital, Ambulance Patients Enrollees (Employers) $ Wireless MD Communication Devices Insurance Services $ SmartCards Service via 24/7 Web Interface Advertising

17. Mobile Asset Management

18. Location-based Services Enforce Restricted Areas Locate Overdue Vehicles Disable Stolen and Overdue Vehicles Access Historical Route Information Monitor Driving Behavior Identify Underutilized Vehicles Source: www.airiq.com

19. Acme Rent-a-car AThey told me that I was caught speeding on three separate occasions, and I never saw a state trooper BHow did they catch you? AThey said they had a GPS system installed in the car, and they tracked me across seven states without me knowing it BAcme fined him a total of $450…Acme says they decided to start using GPS to track speeders because too many of their rental cars were ending up in traffic accidents AcmeSpeeding causes accidents; speeding kills people. We think we have a right to protect our property, that's why--it's our property. Exp.…as time goes on these practices are likely to become more and more invasive. Exp.It's scary to think that--that some point down the line, after the fact, we will all discover that there are very detailed dossiers on our physical whereabouts… Source: NBC Today Show, 2005

20. Progressive leverages mobility in the development of new service offerings Industry leader in technology innovation… © #4 auto insurer, up two spots since it launched its digital strategy four years ago © Revenue has grown 22 % annually since in 1996 vs. an industry average of 3.3% © First to bind policies and offer comparative quotes online Industry leader in technology innovation… © #4 auto insurer, up two spots since it launched its digital strategy four years ago © Revenue has grown 22 % annually since in 1996 vs. an industry average of 3.3% © First to bind policies and offer comparative quotes online …to create a platform for differentiated service offerings © First to field test metered insurance for fleet applications © 25% reduction in premium costs © Awarded two patents for usage based insurance system …to create a platform for differentiated service offerings © First to field test metered insurance for fleet applications © 25% reduction in premium costs © Awarded two patents for usage based insurance system …that wants to integrate mobility into existing service offerings… © Allows the consumer to manage accounts and interact with the company remotely © Integrated accident response with emergency repair services © Result: resolves claims 21% faster than the industry avg. …that wants to integrate mobility into existing service offerings… © Allows the consumer to manage accounts and interact with the company remotely © Integrated accident response with emergency repair services © Result: resolves claims 21% faster than the industry avg. Source: NYTimes, Progressive

21. What They Have in Common: Mobile Communication is the key! They could not exist in the hard-wired world. They could not exist in the hard-wired world. They represent They represent either NEW TO THE WORLD VALUE or UNLOCK EXISTING VALUE (by exploiting new efficiencies).

22. Now you: Wireless Branding Evaluate the potential for mobile advertising and campaigns to drive brands. What are its strengths and weaknesses relative to other branding techniques? What do you consider most appropriate strategic goals for mobile advertising? Why?