As of March of this year, half of all US mobile phone subscribers had a Smartphone. This in my opinion is more than just a number. It is a tipping point for applications. It is safe to say that we are now in an app economy as far as mobile phones are concerned. But the number has significance beyond just being a tipping point because it is a tipping point for thinking about applications.

What do I mean by that? Applications designed for the desktop or enterprise environments typically exist in a sandbox. That sandbox can be as small as a user’s desk or the entire enterprise but nonetheless a sandbox. Their function and focus is to provide the tools needed to complete a task within the confines of that sandbox. But these apps for the most part ignore user contexts. For example, a CRM application typically does not take into consideration a user’s location nor does an app like MS Office (other than language localization). But mobile apps need to be different because mobile is different. A mobile phone is not just another device. It is a beacon in your pocket that is constantly aware of where you are, what’s around you. It is also aware of your preferences and social network and what transactions you prefer. And one more thing – mobile identifies the user uniquely, not just from a device standpoint but as an aggregate of all the factors mentioned above. So it follows then that Context must define Content. But what are these contexts that app developers should consider? There are fundamentally three.

• Location

• Contacts/social network

• Calendar/time

Not all apps can take advantage of all three but should take advantage of at least one. It is hard to say that one of the above mentioned contexts is more powerful or more important than the others. Each can be powerful depending upon the app or the content. For example, ecommerce applications benefit significantly from taking advantage of location while for a CRM app, contacts and calendar are more critical than other contexts.

Context = Creative Destruction

The use of contexts in app development is not just about driving new user experience and value for users; it is about driving new business models as well. The use of contexts increases the app’s value to the point where in many instances a new revenue model can be implemented. For example, wireless phone companies that by design are able to capture user locations can monetize this “data” in a variety of ways, advertising being one of them. Similarly apps that used to be sold on a per license basis can shift their revenue models to leveraging contextual data as opposed to per user charges. In that respect, context is not only valuable, it is disruptive. The first wave of context aware apps we see have typically been those that would anyway have been free - Apps such as Instagram, Pinterest and Zoomingo (local shopping application).

Increasingly, I predict that we will see whole industries that shift their business models to take advantage of contexts. Newspapers and media are a prime example. While many newspapers are experimenting with paywalls, I believe that a larger opportunity exists for them to exploit user contexts. News publishing today uses what could be termed as an “in-out” model, that is publishers and editors decide what content should be created, publish it and hope that readers will find it interesting. It is the traditional content first driven approach. But what is relevant to me as a reader depends upon my current context. And what is relevant for me today may not be relevant tomorrow. It calls for a more dynamic approach to presenting content, where content to be presented is selected based on a combination of contexts. In other words, an “out-in” model. Doing so improves their ability to deliver advertising thereby potentially increasing revenue.

The same is true for retail. Most mobile retail websites are mere reproductions of online properties but should they be? Online retail websites suffer from the same contextual ignorance as other apps. For example, a mobile retail app would be much more powerful if it could detect a person’s physical proximity to a store. Imagine how small business retailers could benefit from such capabilities. Think about applications like Endomondo that track your physical fitness activities. Well over 5 million users have downloaded and use Endomondo. Consider how useful that data would be to an outfit like REI for targeting and creating customized offers. Here’s another example and a personal one. I am an avid photographer, but not a very good one. I try to learn about photography but that typically happens before or after I am out taking photographs. But the most appropriate context for me to quickly learn tips is when I am taking photographs. Cameras already track locations and embed them in pictures. They already sense light conditions. But this data is not used to educate the photographer! Could it be used to provide tips at the time the photo was being taken? Or could suggestions be given as to how to improve the photograph with examples of the best possible settings? Would it make amateurs like me to more likely to buy a particular camera brand? Would it facilitate brand loyalty? I believe the answers to all of the above are a resounding yes!

Context = Engagement

Indeed, most websites retail or not suffer from the same issue. Even corporate, customer facing websites are mere one-way information dispensing media rather than a context aware, interactive medium that facilitates two way engagements. In fact the very term “engagement” needs to be redefined in the mobile age.  Engagement was largely defined in terms of giving users the content they want/need. But in the mobile age, I believe that engagement should be about the interaction users want and need. It follows then that if context defines interaction then adding contexts fuels a more powerful engagement that can impact costs and revenue.

In Conclusion

Successful mobile applications need to score high on relevance. Relevance is a function that takes into consideration not just content but also all the factors that surround and influence the appeal of that content. This means that app developers have to re-think their applications for the mobile age. And not just re-think but they have to get mobile DNA into the entire organization.

 

Every decade or so, the tech industry experiences a tectonic shift. Over the last 40 years, we have seen changes in hardware, software, communications, networking, development tools, languages and platforms. Each has been significant in its own right. Some are incremental and though touted as game changers, they impact a narrow slice of technology users. It is arguable whether the shift to mobile is the most important of all but it has been as impactful as the arrival of the PC, if not more because of the pace at which the change has occurred.

Most readers of this blog are well aware that the most impactful changes in technology are those that ultimately change user behavior and disrupt how people interact with information that affects their daily personal and professional lives. A technology such as that changes the entire eco-system around it. When Apple introduced the world to GUIs and the mouse followed subsequently by Microsoft, it broadened the market for PCs and changed how people interacted with information. The combination of mobile and touch
technologies is having the same impact.

Take Instagram for instance. I must admit that I never gave Instagram a fighting chance of success. When I first heard of it I thought what possessed these guys to build a photo sharing app given the presence of huge success of Flickr and Picasa – both properties of
large companies. Similarly, Pinterest is but a feature of Facebook, right? Wrong! And I am glad to have been proven wrong. These and other apps prove a simple reality – Mobile IS different. What these and other success stories prove that it is possible to reinvent existing applications and indeed markets in an increasingly mobile centric world.

Emerging Mobile Interaction Formula
When one analyzes the characteristics of these apps a few things become evident.

1. Goal completion – Successful mobile apps must be responsive and allow users to complete the task quickly and with the least amount of friction. This seems elementary but is critical in mobile scenarios.

1. Context – Apps must be contextually aware and on the flip side make easily make evident to the user what the context is. Again, elementary but of heightened importance when thinking mobile apps.

1. Relevance – Limitation of screen size means that developers must be clever and super sensitive to how an app communicates relevance. There is no room to explain what an app does or is supposed to do, no room to guide the user in a systematic manner.

1. Entertainment – Even productivity apps must provide some form of entertainment even if it takes the form of simply taking engagement to a new level. Immersive games do this as a matter of necessity but so do apps like Path and Evernote.

1. Communication – Communication is central to all successful mobile apps. People don’t use mobile devices in a vacuum. While apps like Path present a simple elegant UI, its central value lies in being able to share one’s life with others. Regardless of the genre an app might fall into, communication has to be a central tenet of the app whether it is one-to-one or via social networks.

Touch technology is an important component of this and also presents some challenges. It has its advantages but also has limitations. It allows for a more natural interaction with information but for that to happen applications must be redesigned and rethought impacting even the most basic applications used every day.

• What does a spreadsheet optimized for mobile platforms look like?

• Does it (should it) even look like a spreadsheet?

• What about graphics applications?

• What is the best way to create a presentation on a touch optimized mobile platform?

Historically these apps have been designed and optimized for specific operating systems and devices. Compared to successful mobile apps they take on the status of silos, operated by individuals and content created within these apps is shared in the most rudimentary ways (think email). Touch interfaces aren’t just a way to replace mouse clicks and apps that do just that are foregoing the opportunity to drive new value for their users. For example, take a look at the following concept emerging out of MIT’s Fluid Interfaces lab.

This is Swÿp and this is how MIT describes it.



With Swÿp you can transfer any file from any app to any app on any device: simply with a swipe of a finger. Swÿp is a framework facilitating cross-app, cross-device data exchange using physical "swipe" gestures. The framework allows any number of touch-sensing and collocated devices to establish file-exchange and communications with no pairing other than a physical gesture. With this inherent physical paradigm, users can immediately grasp the concepts behind device-to-device communications. The prototype application “Postcards” explore touch-enabled mobile devices connected to the LuminAR augmented surface interface. Postcards allows users to collaborate and create a digital postcards using Swÿp interactions. Swÿp enabled interfaces can support new generation of interactive workspaces possible by allowing pair-free gesture-based communications to and from
collocated devices. (Source: http://fluid.media.mit.edu/people/natan/current/swyp.html)

Another interesting concept is “Sparsh” (means “to touch” in Sanskrit).



'SPARSH' lets one conceptually transfer media from a digital device to one’s body and pass it to another digital device by simple touch gestures. The digital world -- laptop, TV, smart phone, e-book reader and all are now relying upon the cloud, the cloud of information. SPARSH explores a novel interaction method to seamlessly transfer something between these devices in a real fun way using the underlying cloud. Here it goes. Touch whatever you want to copy. Now it is saved conceptually in you. Next, touch the device you want to paste/pass the saved content. SPARSH uses touch based interactions as just indication for what to copy, from where and where to pass it. Technically, the actual magic (transfer of media) happens on the cloud.
(Source: http://fluid.media.mit.edu/people/pranav/current/sparsh.html)

What this means for businesses – Embrace “Mobile First” Approach

Businesses Should Embrace "Mobile First" Approach
IT departments are already dealing with an onslaught of devices that their constituency is asking them to support. The so called BYOD (Bring Your Own devices) trend has stressed IT managers and many resist the trend citing security concerns. But any platform shift causes some pain for some amount of time. Progressive IT managers should look at this as an opportunity to add new and more value to employees. The shift to mobile and touch platforms will eventually force IT departments to embrace a “Mobile First” approach to IT strategy and the sooner IT managers do it the better because ultimately, the growth in mobile isn’t about devices or software or networks. Those will continue to evolve. It is about how we interact with information in a way that enriches our individual experiences and productivity.

I used to watch with interest, the commercials of Neat, a scanning and digital filing solution. My interest turned to amazement when we actually installed one in our office. It is a perfect product for SMBs to transform expense receipts, business cards and all types of documents (legal, purchase orders, invoices, brochures and many other types) into an organized digital filing system.

For a small business, a paperless office is sometimes more a dream than a reality. Paper documents are being handled daily by these businesses, whether it is a healthcare provider, a CPA, a legal professional, a retailer or a manufacturing unit or another industry. These paper documents have a way of mysteriously vanishing when one requires them the most and that is because no matter how meticulously they are filed physically, paper documents are not searchable.

With the increase in mobility and work from anywhere, anytime culture, employees within SMBs have become more frequent travelers and telecommuters. Especially with traveling sales and customer support personnel there is a manifold increase in paper documents. Each traveling employee generates many different receipts which in most businesses have to be meticulously filed with accounting/finance departments.   Neat, with its two different products, NeatDesk and NeatReceipts, helps a small business organize its paper clutter efficiently, effectively and seamlessly.  Above all, there is no learning required.

Using Neat, small businesses can:

• Scan expense receipts – Neat product automatically parses, identifies the information and populates the items and amounts in the right fields. The expense reports can be emailed or exported into a reporting system

• Simplify tax preparation – scanned items and amounts from receipts can be assigned tax categories allowing for creation of pdf tax reports

• Develop a contact database – scan business cards and export to outlook or other contact management solutions

• Manage documents – invoices, purchase orders, legal signed paperwork and other documents can be easily scanned and filed into appropriate folders

• Search across documents – and when the time comes to look for a paper, Neat makes it really simple to search across documents

Information, after all, is critical for making informed, timely, relevant and strategic business decisions to drive growth and achieve overall business success. And Neat aids in that objective by screening and digitizing information for the small business professional. Neat calls it “information activation”.

NeatDesk sits quietly in a corner of an office desk, elegantly, ready to perform its task with one touch operation – scan or scan to pdf. It has three different feed-trays with do not allow for any confusion or paper mess - one for receipts, second for business cards and third for all other documents. The intelligence of the solution lies in Neat’s software which has been built to recognize type of document and content on the document. A rare feat indeed.

However, if this is not exciting enough, Neat is busy rolling out its NeatCloud and NeatMobile offerings. When available in Spring, the two offerings will allow small businesses to:

• Backup and sync their scanned documents securely to the cloud

• Access their documents from anywhere using any device

• Share files and folders with workgroups or departments

NeatDesk is priced at US$399.95 and NeatReceipts is priced at US$199.95 and believe me they are worth the money.

Neat is a neat product. Try it.

Anurag Agrawal
Techaisle

On Feb 29^th, 2012, Microsoft officially unveiled its new operating system, Windows 8 at the World Mobile Congress in Spain (the Beta version is now available for download by end users). We feel that Windows 8 will lay the foundation for not just Microsoft’s survival in the mobile devices space but also help it grow in the face of intensifying competition from other operating systems (e.g. Apple’s iOS and Google’s Android).

The first thing to remember is that Windows 8 is not just a desktop or a notebook operating system and, given Microsoft’s dominance in the PC operating systems, the primary objective of Windows 8 would not be to defend its share on the PC market but rather to extend its reach to the ARM chips and various mobile devices.

The immediate demand for Windows 8 will come from the large proportion of Windows XP users who were so satisfied with that older OS that they never even bothered to upgrade their PCs to Windows 7, in spite of its substantial enhancements over Windows XP and Vista. Windows 8 further enhances the capabilities of previous versions of Windows, making it an attractive upgrade for PCs.

However, Microsoft is intensely focused on the mobile market and has designed Windows 8 to work with both x86 and ARM processors and has also designed it to work with a multitude of mobile devices, (e.g. notebooks, tablets, etc.), making it highly attractive to business users as well as consumers who want to access not just the Internet and various mobile apps available for Apple and Android but also their traditional PC-based apps
including, and especially productivity applications like Microsoft Office.

In the last few years, we have seen exponential growth in mobile devices (e.g. smartphones and tablets) based on Apple and Android.

1. While iOS has primarily been seen as a premium brand targeted at early SMB adopters, it is now expanding its base to price-conscious SMB users by offering its older versions at lower prices.

1. Android-based devices come at a multitude of price points from various vendors. This is especially important among SMBs in price-conscious emerging markets.

1. Given the rapidly evolving market conditions, Windows 8 should ideally start at the low-to-medium end of the SMB price segment to prevent further expansion by Apple’s iOS and Android and then steadily move up the value chain by offering products with more features/ functionalities at comparatively higher price points to intensify competition against iOS and Android.

There are essentially four key areas that will be critical for Microsoft’s success in mobile market: operating system, mobile devices, applications and service providers (carriers).

Mobile Operating System

After several years of lagging significantly behind other vendors, Microsoft’s Windows 8 is a significant improvement over its predecessor mobile operating systems. The current version will not give it the kind of dominance it has in the PC market. However, if it halts, or slows the rapid growth of Apple and Android devices, it would be a major success. Even as it releases the current version, we can be sure that the company is already planning new future versions with significant improvements that would help it grow its share vis-a-vis Apple and Android.

It is important to highlight a couple of differences between Microsoft Mobile and its key competitors. While Apple’s iOS is available only on Apple’s devices, Google goes to the opposite extreme and allows limited OS customization to device vendors to help them differentiate their products. While the device manufacturers may like this idea initially, this is likely to create tremendous variety in the market, causing much confusion for the app developers as well as customers. Microsoft, on the other hand, specifies the hardware requirements for its operating system and app developers and customers will know exactly what they get when they buy a Microsoft-based device.

Mobile Devices

One of the greatest requirements for success in the mobile space, and where Microsoft has an advantage is the ecosystem of OEMs, ISVs and other channel partners.

1. Microsoft has the largest number of OEM partners for PCs (e.g. HP, Dell, Lenovo, Acer, LG, etc.), who will be very quick to offer mobile devices based on Microsoft’s new operating system. In addition, many of the OEMs who currently offer Android-based devices will hedge their bets by offering Microsoft-based mobile devices also (rather than focus on just one OS like Android).

1. Nokia (Microsoft’s strategic partner) has the largest subscriber base of mobile phones, especially outside the US. In addition, other phone vendors like Samsung and LG also have significant subscriber bases and are well-regarded in  select markets. They will also be quick to offer Windows-based devices, enlarging the potential base of Windows Pone users.

1. User-friendliness of hardware devices will also be critical to Microsoft’s success in the mobile space. OEMs like Nokia and Samsung have shown significant potential for innovation in design and incorporating user-friendliness in their     devices that we feel quite optimistic about their ability to accelerate acceptance of Microsoft as a mobile operating system. Collectively, these OEMs (in Microsoft’s ecosystem) account for bulk of the market and they will undoubtedly find it easier to sell Windows Phones to their existing customers instead of phones based on alternative operating systems.

Mobile applications

Apple and Android have had a head start in getting apps for their devices due to their early expansion. Their relative advantage in applications will diminish in the next 2-3 years very significantly.

1. Most ISVs who currently develop Windows-based applications will be quick to port their apps to Windows–based mobile devices also.

1. Similarly, developers who have already invested significant amounts in developing new apps for Apple and Android will be unable to resist the urge to supplement their revenues by adapting their apps for Windows Phones with minimal incremental investments and tapping into the expanding base of Windows users.

1. Already, many applications are available for use on Windows phones from the Windows Phone applications store and the number of these applications will increase significantly in the future.

1. These developments will be possible if and only if Microsoft encourages and provides incentives for its own ISVs as well as ISVs of Apple and Android-based apps to migrate to Windows 8. Given that this may be the last major window (pun unintended) of opportunity for Microsoft to gain market share in the mobile space, it is reasonable to assume that it will allocate adequate resources for this     (it has already made senior-level leadership changes in this regard.)

1. All these developments, which might take a few years to implement, will result in a very large number of mobile apps for Window 8-based mobile devices, reducing the app gap with Apple and Android and vastly reducing the ISVs developing apps for WebOS and RIM’s Blackberry.

Service Providers

The final key element that will determine Microsoft’s success are the service providers (or the wireless carriers). Many of the OEM vendors like Samsung and LG, who are likely to develop Microsoft-based mobile devices already have long-established relationships with carriers in local markets, making it easier for them to sell Windows-based devices to or through them. In addition, if the carriers see significant adoption among the end customers, they may not need much convincing at all.

Other Considerations

1. Considering that SMBs use different devices to access same apps and data, the display should adapt to the device being used automatically. VDI vendors are already offering such capabilities and Windows 8 should not be left behind in this race. Microsoft could even consider buying Citrix for this (and selling off its online division, with which Microsoft has significant overlaps).

1. Automatic synching of apps and data on various data used on various devices. Microsoft already has the SkyDrive to help in synching up the data. VDI would help its users synch their apps also and reduce the maintenance and support costs for businesses and hosting companies

1. Small Business users and consumers are somewhat similar in terms of their needs, motivations and budgets. Since Windows 8 is in the best position to bridge the gap between notebooks/ desktops and tablets by offering its range of business applications, it should go all the way and also offer consumer apps that Small Business users might want on their mobile devices, including integration with     social media.

1. SMB Users carry their mobile devices wherever they go and, if the experience of cell phones is any guide, they will lose these mobile devices. Microsoft, along     with its service providers should provide remote locations/lockout/wipe-out capabilities as a standard feature. This will be especially important for security conscious users.

1. Microsoft Office should be available on all versions including mobile devices.

1. Battery life will be an important consideration for SMBs.

Many customers have been waiting eagerly for the launch of Windows 8. Techaisle’s latest Ultrabook study (completed in January 2012), SMBs cite the availability of Windows 8 as the 2nd most desired feature which will spur the demand for new client devices.

Microsoft and Nokia were among the first ones to identify the mobile device market and Microsoft launched its first tablets nearly a decade back while Nokia launched its Communicator even earlier than that. While their vision was ahead of the market practicalities, they lost their focus when the requisite technologies and customer work styles did ripen up, allowing first Apple and then Android devices to grow rapidly. But given Microsoft’s vast and resourceful ecosystem, a few years from now, all past rumors of its death in the mobile space might seem premature. With the launch of Microsoft 8 and its strategic partnership with Nokia, it has taken first concrete steps to gain its rightful place in the mobile market.