In the last year, we have seen several factors contribute to the slow adoption of LBS:
1) Collapse of the Telco Market. Our target customers are under severe economic pressure from debt created by mergers/acquisitions and 3G license auctions. This has created massive scrutiny on all aspects of their business, particularly capital investments. MapInfo is addressing this issue by working with the operators to develop and prove their business cases and offering innovative business models that share the risk/reward with operators.
2) Competing Investment Priorities. As mentioned above, operators must prioritize investment like never before. Most operators are focused on MMS which is the logical evolution of SMS and, as such, has a proven business case. We have been focused on educating the market on the complimentary aspects of LBS to both SMS and MMS. I am convinced that this is the way forward and will ultimately lead to greater success in both categories.
3) Lack of Compelling Applications. The business case for LBS is highly dependent on a suite of applications that a wireless operator can offer their subscribers. Over the past year, MapInfo has invested in working closely with our customers and prospects to deliver these applications through our Mobile Location Suite. From a consumer perspective, I believe that the mobile concierge (miGuide) applications and friend finder (miFriends) applications will be the most effective. To date, the slow adoption has been due to the poor execution of these applications rather than the market demand for them. MapInfo is addressing this issue by integrating our applications with SMS and MMS. MapInfo is also focused on the commercial market place and will offer businesses applications that make their mobile professionals more productive and enable them to manage their fleets more efficiently. MapInfo has a legacy of success with business customers. We will leverage this success and our partnerships to develop new business applications and enhance existing applications.
2.Concierge services link Wingcast
have gone sour, but other types of in-vehicle LBS applications for businesses
seem to be flourishing.What is your perspective on the use of LBS technology
for fleet or field service management? Will MapInfo focus on these applications?
Please see above. This is
definitely an area of focus for MapInfo.
3.What consumer applications
appear to have the most promise for acceptance? How do you differentiate
the markets in U.S., Europe, and Asia?
As I noted, our initial focus will
be on friend finder applications and applications that provide subscribers
with location relevant information - like a mobile concierge application.
We will also employ our expertise in demographic analysis to profile customers
and provide information that is relevant to both their location and
their specific interests.
4.In order for LBS, for either
consumer or business services, to gain acceptance, it appears to need a
catalyst to "jump-start" the market.Do you think this will come in the
form of a low price point or a service that demonstrates a powerful ROI?
I firmly believe that it is the
latter. I have had several direct conversations with operators in
Europe and North America that are taking a tentative approach. However,
without exception these operators intend to respond as quickly as possible
to any competitive launch of LBS. I also believe that we are on the
brink of this occurring. Here in the UK, Vodafone has launched Vodafone
live with national television advertising featuring maps on phones.
It is this kind of marketing investment that will educate the market.
5.The telecommunications industry
has been obviously hurt by the worldwide economic downturn leading to a
retrenchment of investment in LBS.What services, like "friend finder"
are likely to be offered when the economy provides the necessary positive
incentives?
Applications like friend finders
and mobile concierge applications will provide the initial impetus to launch
LBS. Perhaps more importantly, these applications will educate the
market to the existence of LBS and what is possible. This is when
we will see real innovation.
6.Where does MapInfo see its
product strengths? Has this vision changed during the last 6-9 months?
MapInfo's product strengths are
derived from 16 years of experience in providing geospatial software and
data. This legacy, combined with the emphasis we placed over the
last several years on delivering enterprise applications, enables MapInfo
to deliver a reliable, scalable solution to wireless operators. This
may sound cliché, but should not be discounted. LBS will take
geospatial away from being an analytical tool employed by experts to a
mainstream service utilized by millions. Operators must be absolutely
confident in a vendors ability to service this demand. To the best
of my knowledge, MapInfo is the only vendor that has proven the ability
to do so. Our experience with Siemens and Vodafone is unique in the
LBS Market. This partnership, and the credibility it delivers, may
be our greatest competitive advantage.
7.Going forward, when do you
see the market for LBS turning?
This will be a year for decision
making and initial investments in trials. However, I firmly believe
that this market will take off in the next 18 months and when it does there
will be a flurry of activity, and revenue for those companies that can
effectively deliver. I believe that MapInfo is uniquely positioned
to do so.