Thursday, January 31, 2008

Google and Dell tipped to reveal iPhone rival plans

Speculation is mounting that Google is plotting the launch of a mobile phone in partnership with computer giant Dell.

Senior industry sources claim the two companies will reveal their plans at next month’s 3GSM telecoms conference in Barcelona, al-though Google insiders deny an announcement is due in the near future.

But the rumours will once again throw the spotlight on Google’s mobile strategy, which has been the subject of much conjecture over the last year.

There had been widespread talk of Google launching its own handset, known as the “Gphone”, to go up against Apple’s iPhone, which launched in November last year.

But the world’s largest search engine surprised the industry by announcing an operating system for mobile phones called Android. The software makes it easier for developers to create mobile applications that run on many different handsets.

Android, which will be available this year, will bring all of Google’s online services to mobile users.

At present, mobile phones use a variety of operating systems to access the internet, including systems from Microsoft and London-based Symbian.

Marketing Week revealed last year that Dell was also planning a move into mobile phones after poaching Motorola executive Ron Garriques to run its new global consumer group (MW March 1, 2007).

Dell already produces personal digital assistants (PDAs) and strategy analytics director Neil Mawston says: “It makes sense for Dell to have a high-profile entry back into the market because its last effort with PDAs pretty much flopped.”

Author:
By Robert Lester
Publisher:
Marketing Week
Date:
30-Jan-08
Categories:
Sections:
Home , News

Monday, January 28, 2008

CIOs Uncensored: The Cause Effect: Motivated Workers

Younger IT workers are looking for socially responsible employers.


An IT organization's success is predicated on being able to attract and motivate the brightest minds. Unfortunately, in most organizations, policies and practices to attract and motivate the workforce were established with older generations, the Traditionalists and Baby Boomers, in mind. The mind-sets of the younger generations, Generation Xers and Millennials, are markedly different. The problem is exacerbated for IT organizations because projections are that there will continue to be a dearth of technically competent employees.

One evolving organizational attribute that's being used to motivate employees is a company's dedication to providing a valuable service for society in a socially responsible manner. Millennials are far more socially minded than any previous generation because they've been the most exposed to social issues. They understand global issues because they've witnessed terrorist attacks on American soil, and they understand environmental issues because they see the impact of global warming. Because they're socially minded, they want to work for companies that are socially responsible.

At the same time, older generations are becoming financially secure and have begun to search for deeper meaning in their work. Studies show that employees increasingly want to fulfill a personal need for meaning and they will work more passionately when they know their energies are making positive contributions to society.

Employees have the highest intrinsic motivation for their jobs when their company's purpose and practices reflect their own values and desires. Extrinsic motivators, such as money, can satisfy employees' external needs but don't make them passionate about their jobs and can never generate as much motivation. Intrinsic enthusiasm results in employees willingly devoting time and energy beyond what they're being paid for.

Like most companies, we at Con-way provide a valuable service for society. For Con-way, it's transporting heavy freight around the world, and this is motivating to employees when they see it from the perspective of benefiting society. In addition, we're actively pursuing many socially responsible initiatives, including helping a local community center pay off its mortgage, making our data center more green, and finding ways to decrease our utilization of materials such as fuel.

We aren't pursuing these initiatives for the purpose of motivating employees, but that has certainly been one of the most significant impacts. The majority of candidates I've interviewed recently have asked what Con-way's doing to benefit society, and I can see these people light up when I describe these initiatives. I've had numerous employees tell me that they feel more connected because of these initiatives, and I know that translates into higher intrinsic motivation.

Most companies provide a valuable service to society; leaders should emphasize this and explore other methods to strengthen the value they provide to society. It will pay off in many ways, including a higher-performing workforce.

Jacquelyn Barretta is the CIO of Con-way, the No. 1 company on the 2007 InformationWeek 500 list of technology innovators. Share your thoughts at our blog, CIOs Uncensored.

Zodiac Interactive Announces Zodigo

First Mobile Content Search and Discovery Engine for TVs and Browsers Zodigo Debuts at the Famous DEMO 08 Conference for Emerging Technology, January 28-30 in Palm Desert, Calif.

Palm Desert, CA - DEMO 08 (January 28, 2008) - Zodiac Interactive, a multiple Emmy-nominated and Emmy award-winning developer of software for interactive television, today launched a new mobile content search engine, Zodigo. Much like a Movies-On-Demand service from cable operators, Zodigo is navigated either by remote control or by keyboard and mouse and includes revolutionary features that make it easy for consumers to discover and download mobile content instantly to their mobile phones. Zodigo is also the first and only software platform built for release on digital TV systems (cable, satellite, & telco), Blu-ray & HD-DVD players, all next-gen gaming consoles (Wii™, Xbox 360™, and the Playstation® 3), as well as at Zodigo.com and many other Web distribution partners. Perhaps most importantly, Zodigo is an intelligent system that quickly and automatically learns about users’ preferences, as well as their exact mobile phone type, and recommends only content that works for that phone.

Parks Associates’ Director of Broadband & Gaming Michael Cai, comments “The breadth and depth of mobile content will increase significantly over the next few years, and the ability to easily discover and download this content from the TV and Web gives consumers a much better mobile phone shopping experience. Today, consumers typically turn to their mobile phone/operator for new content, but the phone deck features a poor merchandising environment for content discovery and purchase. We are pleased to see Zodiac leveraging its years of experience in developing interactive TV applications for some of the largest U.S. cable and satellite operators to make mobile content shopping an easy, on-demand service for consumers.”

Matt Johnston, Zodiac’s SVP of strategy and the CEO of the new Zodigo operating company, comments, “Consumers are beginning to experience an explosion in the breadth and diversity of content and applications available for the mobile phone, and, until today, have not had an adequate content discovery solution. Part of the problem is that content directories, for the most part, have only been available either on the mobile phone through existing mobile operators, through cluttered teen-targeted Web sites or directly from individual, fragmented publishers. Zodigo was developed with a better shopping experience in mind and the result is an easy-to-use search experience that helps create a truly long-tail of mobile content discovery.”

Zodigo allows consumers to channel and Web surf to discover great content for their mobile phones. Whether it’s games, applications, ringtones, movies, podcasts, coupons, mobile manga, tickets, alerts, or full songs, Zodigo helps consumers easily find and download interesting stuff recommended by like-minded people.

Johnston continued, “To be selected by Chris Shipley and the DEMO 08 conference team is a wonderful validation of our team’s vision and hard work. DEMO remains the industry’s premier launch pad for emerging technology and consumer-facing products and we couldn’t be more pleased with the opportunity to launch and showcase the power of Zodigo at DEMO 08.”

About DEMO
Produced by Network World Events and Executive Forums, the semi-annual DEMO conferences focus on emerging technologies and new products, which are hand-selected from across the spectrum of the technology marketplace. The DEMO conferences have earned their reputation for consistently identifying tomorrow's cutting-edge technologies, and have served as launch pad events for companies such as Palm, E*Trade, Handspring, and U.S. Robotics, helping them to secure venture funding, establish critical business relationships, and influence early adopters. Each DEMO conference features approximately 70 new companies, products and technologies. For more information, visit www.demo.com.

About Zodiac Interactive
Zodiac Interactive, the Interactive TV 2.0 Company™, is a multiple Emmy-nominated and Emmy award-winning developer of software for interactive television. The company also runs one of the world’s premier studios for interactive television games. For more information, visit www.zodiac.tv.


ZODIAC INTERACTIVE
Editorial Contact:
Terry May
321-632-1690
terrymay@hightechpr.net

Nokia to acquire Trolltech to accelerate software strategy

ESPOO, Finland and OSLO, Norway, January 28 /PRNewswire-FirstCall/ -- Nokia and Trolltech ASA today announced that they have entered into an agreement that Nokia will make a public voluntary tender offer to acquire Trolltech (http://www.trolltech.com), a company headquartered in Oslo, Norway and publicly listed on the Oslo Stock Exchange. Trolltech is a recognized software provider with world-class software development platforms and frameworks. In addition to the key software assets, its talented team will play an important role in accelerating the implementation of Nokia's softwarestrategy.

Nokia will offer NOK 16 per share in cash. The board of directors of Trolltech has unanimously recommended that its shareholders accept Nokia's Offer. Holders of 35,024,830 shares, representing approximately 66,43 % of Trolltech's issued shares and votes have as of January 27, 2008 irrevocably undertaken to accept the Offer. Haavard Nord, Vuonislahti Invest AS (controlled by Eirik Chambe-Eng), Teknoinvest and certain funds managed by Index Ventures are among the shareholders who have agreed to tender their shares to Nokia.

The acquisition of Trolltech will enable Nokia to accelerate its cross-platform software strategy for mobile devices and desktop applications, and develop its Internet services business. With Trolltech, Nokia and third party developers will be able to develop applications that work in the Internet, across Nokia's device portfolio and on PCs. Nokia's software strategy for devices is based on cross-platform development environments, layers of software that run across operating systems, enabling the development of applications across the Nokia device range. Examples of current cross-platform layers are Web runtime, Flash, Java and Open C.

"The technology landscape evolves and, for Nokia, software plays a major role in our growth strategy for devices, PCs and the integration with the Internet. We continue to focus on areas where we can differentiate and add more value. Common cross-platform layers on top of our software platforms attract innovation and enable Web 2.0 technologies in the mobile space," said Kai Oistamo, Executive Vice President, Devices, Nokia. "Trolltech's deep understanding of open source software and its strong technology assets will enable both Nokia and others to innovate on our device platforms while reducing time-to-market. This acquisition will also further increase the competitiveness of S60 and Series 40."

Nokia aims to continue the development of Trolltech's products and support of new and existing customers. Nokia strives for an open approach to technology that will encourage and support innovation in the industry, enable fast adoption of new technologies and advance healthy competition. Nokia embraces open source technology and will take further the open source development culture found in Trolltech.

"Trolltech and Nokia share the goal of accelerating the adoption of Trolltech's Qt based technology in the commercial market and in the open source community," said Haavard Nord, CEO and founder of Trolltech. Eirik Chambe-Eng, Chief Troll and co-founder of Trolltech continues "We are thrilled to join forces with Nokia. The company's innovative culture and resources will give our employees new and exciting possibilities and fulfill our vision of "Qt everywhere"."

Nokia intends to continue to enhance Trolltech products through active and ongoing development, for both desktop and mobile. To further stimulate industry innovation based on Trolltech's products, Nokia plans to continue to license Trolltech technology under both commercial and open source licenses.

The acquisition is subject to customary closing conditions, including acceptance by shareholders representing more than 90 % of the fully diluted share capital, and the necessary regulatory approvals. The complete details of the offer, including all terms and conditions, will be set forth in an offer document expected to be sent to Trolltech shareholders within two weeks. The offer is expected to be open for acceptance for a period of four weeks and to be completed in the second quarter of 2008. If the conditions to the offer are satisfied or waived, Nokia will have a legal duty to make a mandatory cash offer for or compulsory acquisition of the remaining shares.

About Nokia

Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries. Nokia makes a wide range of mobile devices and provides people with experiences in music, navigation, video, television, imaging, games and business mobility through these devices. Nokia also provides equipment, solutions and services for communications networks. http://www.nokia.com

About Trolltech

Trolltech provides cross-platform software development frameworks and application platforms. Trolltech's Qt is used in popular software such as Skype, Google Earth, Adobe Photoshop Elements, Lucasfilm and by more than 5000 customers worldwide. Trolltech's Qtopia has enabled a new generation of exciting consumer devices such as mobile handsets, video-phones, set-top boxes and media players. Trolltech's software has shipped in more than 10 million devices.

Trolltech's products enable companies to easily build and deploy software across a wide range of operating systems and electronic devices. The company serves desktop and embedded application providers, as well as consumer electronics and mobile vendors, who face challenges in delivering user-friendly and differentiated software. Trolltech enables customers to accelerate innovation, shorten time to market and increase revenues. Trolltech's software improves the user experience by increasing the appeal and quality of customer's applications on desktop and devices. The future proof Qt software allows developers to code less, create more and deploy anywhere.

Trolltech supports open source and commercial customers. The company has offices in California, U.S.A.; Brisbane, Australia; Beijing, China; Berlin and Munich, Germany; Oslo, Norway. It is listed on the Oslo Stock Exchange under the ticker symbol TROLL. For more information about Trolltech, please visit http://www.trolltech.com.

This communication is no offer to acquire shares or options in Trolltech. Such offer will be made only in accordance with an offer document approved under the Norwegian securities trading act and to such persons who may lawfully receive the offer.

It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product, service and solution deliveries; B) our ability to develop, implement and commercialize new products, services, solutions and technologies; C) expectations regarding market growth, developments and structural changes; D) expectations regarding our mobile device volume growth, market share, prices and margins; E) expectations and targets for our results of operations; F) the outcome of pending and threatened litigation; G) expectations regarding the successful completion of contemplated acquisitions on a timely basis and our ability to achieve set targets upon the completion of such acquisitions; and H) statements preceded by "believe," "expect," "anticipate," "foresee," "target," "estimate," "designed," "plans," "will" or similar expressions are forward-looking statements. These statements are based on management's best assumptions and beliefs in light of the information currently available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) competitiveness of our product portfolio; 2) our ability to identify key market trends and to respond timely and successfully to the needs of our customers; 3) the extent of the growth of the mobile communications industry, as well as the growth and profitability of the new market segments within that industry which we target; 4) the availability of new products and services by network operators and other market participants; 5) our ability to successfully manage costs; 6) the intensity of competition in the mobile communications industry and our ability to maintain or improve our market position and respond successfully to changes in the competitive landscape; 7) the impact of changes in technology and our ability to develop or otherwise acquire complex technologies as required by the market, with full rights needed to use; 8) timely and successful commercialization of complex technologies as new advanced products, services and solutions; 9) our ability to protect the complex technologies, which we or others develop or that we license, from claims that we have infringed third parties' intellectual property rights, as well as our unrestricted use on commercially acceptable terms of certain technologies in our products, services and solution offerings; 10) our ability to protect numerous Nokia patented, standardized, or proprietary technologies from third party infringement or actions to invalidate the intellectual property rights of these technologies; 11) our ability to manage efficiently our manufacturing and logistics, as well as to ensure the quality, safety, security and timely delivery of our products, services and solutions; 12) inventory management risks resulting from shifts in market demand; 13) our ability to source quality components and sub-assemblies without interruption and at acceptable prices; 14) Nokia's and Siemens' ability to successfully integrate the operations, personnel and supporting activities of their respective businesses as a result of the merger of Nokia's networks business and Siemens' carrier-related operations for fixed and mobile networks forming Nokia Siemens Networks; 15) whether, as a result of investigations into alleged violations of law by some current or former employees of Siemens, government authorities or others take actions against Siemens and/or its employees that may involve and affect the carrier-related assets and employees transferred by Siemens to Nokia Siemens Networks, or there may be undetected additional violations that may have occurred prior to the transfer, or ongoing violations that may occur after the transfer, of such assets and employees that could result in additional actions by government authorities; 16) the expense, time, attention and resources of Nokia Siemens Networks and our management to detect, investigate and resolve any situations related to alleged violations of law involving the assets and employees of Siemens carrier-related operations transferred to Nokia Siemens Networks; 17) any impairment of Nokia Siemens Networks customer relationships resulting from the ongoing government investigations involving the Siemens carrier-related operations transferred to Nokia Siemens Networks; 18) developments under large, multi-year contracts or in relation to major customers; 19) general economic conditions globally and, in particular, economic or political turmoil in emerging market countries where we do business; 20) our success in collaboration arrangements relating to development of technologies or new products, services and solutions; 21) the success, financial condition and performance of our collaboration partners, suppliers and customers; 22) any disruption to information technology systems and networks that our operations rely on; 23) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the Chinese yuan, the UK pound sterling and the Japanese yen, as well as certain other currencies; 24) the management of our customer financing exposure; 25) allegations of possible health risks from electromagnetic fields generated by base stations and mobile devices and lawsuits related to them, regardless of merit; 26) unfavorable outcome of litigations; 27) our ability to recruit, retain and develop appropriately skilled employees; and 28) the impact of changes in government policies, laws or regulations; as well as the risk factors specified on pages 12-24 of Nokia's annual report on Form 20-F for the year ended December 31, 2006 under "Item 3.D Risk Factors." Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to update publicly or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

http://www.nokia.com

http://www.trolltech.com

Verizon Caps Successful Year With Strong 4Q Results

NEW YORK - Verizon Communications Inc. (NYSE:VZ) today reported continued strong quarterly financial and operational results, as the company again produced significant gains in strategic growth areas such as wireless, broadband, data, video and global IP.

Verizon reported fourth-quarter 2007 earnings of 37 cents in fully diluted earnings per share (EPS). This compares with fourth-quarter 2006 earnings of 48 cents per share before income from discontinued operations that have since been divested.

On an adjusted basis (non-GAAP), fourth-quarter 2007 earnings were 62 cents per share from continuing operations. This is a 19.2 percent increase, compared with 52 cents per share from continuing operations in the fourth quarter 2006.

On an annual basis, Verizon reported 2007 EPS of $1.90, compared with $1.88 per share from continuing operations. On an adjusted annual basis, 2007 EPS was $2.36, a 14.6 percent increase, compared with 2006 EPS of $2.06 from continuing operations.

Special items reflected in fourth-quarter 2007 EPS are: 16 cents per share for severance and other related expenses recognized as a result of workforce reductions that began in the fourth quarter and will continue throughout 2008; 5 cents per share for taxes and expenses associated with an increase in the distributable earnings from the company's Vodafone Omnitel N.V. investment, including cash distributions received in December 2007; 2 cents per share for merger integration costs; and 1 cent per share for costs related to the spinoff of wireline access lines in Maine, New Hampshire and Vermont. Further detail on earnings adjustments is provided later in this release.

Delivering Value to Shareowners

"In the fourth quarter, the momentum of revenue growth and margin expansion continued to drive double-digit earnings growth, and we once again reported strong growth in sales of all our strategic products," said Verizon Chairman and CEO Ivan Seidenberg.

"Throughout 2007 Verizon's results consistently showed success in what we set out to do: grow revenue, capture market share, improve margins, increase productivity and provide the best customer experience," he said. "In 2008 we are focused on these same strategic imperatives, and we are confident that our performance will continue to deliver value to shareowners. We see significant opportunities to grow revenues and expand our leadership in wireless and broadband markets, while reducing operating expenses."

Revenue Growth, Cash Flows Highlight Consolidated Results

Verizon's consolidated operating revenues grew 5.5 percent in the fourth quarter 2007 and 6.0 percent in the full year, compared with fourth-quarter and full-year 2006. Total 2007 revenue was $93.5 billion, an increase of $5.3 billion over 2006. On an adjusted basis (non-GAAP), 2007 revenue increased 6.1 percent over 2006, and on a pro-forma basis (non-GAAP, calculated as if Verizon and MCI had merged on Jan. 1, 2006), this increase was 5.8 percent, or $5.2 billion.

Verizon's operating income declined 0.6 percent to $3.4 billion, compared with the fourth quarter 2006. On an adjusted basis (non-GAAP), operating income grew 18.5 percent to $4.3 billion, compared with the fourth quarter 2006.

Operating income margin was 14.4 percent for the fourth quarter 2007 and 16.7 percent for the full year, compared with 15.2 percent in both the same periods in 2006. On an adjusted basis (non-GAAP), Verizon's operating income margin rose to 18.2 percent in the fourth quarter 2007 and 17.9 percent for the full year, compared with 16.2 percent and 16.1 percent, respectively, for the same periods in 2006.

Cash flows from continuing operations totaled $26.3 billion in 2007. This is an increase of 14.2 percent, compared with $23.0 billion in 2006. Capital expenditures in 2007 totaled $17.5 billion, compared with $17.1 billion in 2006.

Verizon's Board of Directors increased the quarterly dividend 6.2 percent beginning with the November 2007 payment, reflecting confidence in the company's ability to sustain strong cash flows. Verizon also repurchased more than $1.1 billion of its shares in the fourth quarter 2007, for a total of more than $2.8 billion for the year and $4.5 billion over the past two years.

Year-end total debt was less than $31.2 billion. The company paid down more than $5 billion in debt during 2007.

Wireless Strength Continues for Quarter, Full Year

Verizon Wireless continues to be the most profitable domestic wireless company and the largest in terms of retail customers. In the fourth quarter:

  • Total customers increased to 65.7 million, up 11.3 percent year-over-year.

  • 1.6 million of a total 2.0 million (retail and wholesale) net customer additions were retail post-paid customers.

  • Verizon Wireless continued its industry-leading customer loyalty, with 1.20 percent total churn. Churn among retail post-paid customers, 93 percent of all its customers, was under 1.0 percent for the quarter and the full year.

  • Total revenues in the quarter were $11.4 billion, up 13.3 percent; service revenues were $9.9 billion, up 13.7 percent, driven by customer growth and demand for data services. Full-year revenues were $43.9 billion, up 15.3 percent.

  • ARPU (average monthly revenue per customer) levels increased year-over-year for the seventh consecutive quarter: retail ARPU of $51.49 was up 1.4 percent; retail data ARPU of $11.06 was up 36.0 percent.

  • Wireless operating income margin was 26.2 percent. EBITDA margin on service revenues (non-GAAP) was 43.6 percent. (EBITDA is earnings before interest, taxes, depreciation and amortization.)

Continued Strong Growth in FiOS, Strategic Services

Verizon's Wireline business, which consists of Verizon Telecom and Verizon Business, reported continued strong growth in customers of FiOS fiber-optic services and sales of strategic services to enterprise customers. In the fourth quarter:

  • Verizon added a net of 226,000 new FiOS TV customers. The company had 943,000 FiOS TV customers by year-end and announced today that it had added its 1 millionth FiOS TV customer earlier this month. Including satellite TV customers served in partnership with DIRECTV (a net of 63,000 added this quarter), Verizon has more than 1.8 million video customers.

  • Verizon added a net of 264,000 new broadband connections (DSL and FiOS Internet connections combined). Broadband connections totaled 8.2 million, an increase of 17.9 percent compared with year-end 2006. The company added a net of 245,000 FiOS Internet connections this quarter, for a total of more than 1.5 million as of year-end.

  • Due to continued strong demand for broadband and TV services, ARPU in legacy Verizon wireline markets (which excludes former MCI consumer markets) increased 11.0 percent to $59.48, compared with the fourth quarter 2006.

  • Verizon Business generated revenues of $5.4 billion, or growth of 0.5 percent compared with the fourth quarter 2006 on an adjusted basis (non-GAAP). This is Verizon Business' fifth consecutive quarter of year-over-year, pro-forma revenue growth.

  • Strong sales of key strategic services -- such as IP (Internet protocol), managed services, Ethernet and optical ring services -- continued to drive Verizon Business' growth. These services generated more than $1.4 billion in revenue, up 25.1 percent from the fourth quarter 2006.

Details of Prior EPS Adjustments

Special items for full-year 2007 totaled 49 cents per share. This includes the fourth-quarter charges detailed earlier, along with charges for taxes on foreign distributions, charges related to the access line spinoff and merger integration costs, as well as credits and charges associated with the disposition of Compañia Anónima Nacional Teléfonos de Venezuela and the net gain on the sale of Telecomunicaciones de Puerto Rico. As previously announced, Verizon received gross proceeds of approximately $980 million from this sale -- $100 million of which was contributed to the Verizon Foundation.

Special items reflected in fourth-quarter 2006 EPS included 27 cents per share related to the sale of Verizon Dominicana; pension settlement charges; and costs related to the spin-off of Verizon's directories business, merger integration and relocation of employees to the Verizon Center. In the first three quarters of 2006, there were additional settlement charges and costs for integration and relocation, as well as charges for the extinguishment of debt and the cumulative effect of an accounting change. Special items for full-year 2006 totaled 42 cents per share.

Additional Business Group Results

Wireless

  • At the end of 2007, 97 percent of the company's customer base was retail (post-paid and pre-paid).

  • Verizon Wireless continued to lead the industry in cost efficiency. Cash expense per customer (non-GAAP) increased slightly in the fourth quarter and for the full year to $28.75 and $28.24 in 2007 from $28.46 and $27.76 in 2006, respectively.

  • Total data revenues of $7.4 billion for the full year were up 65 percent over 2006. In the fourth quarter, data revenues were 21.3 percent of all service revenues, up from 15.8 percent in the fourth quarter 2006. The company had 47.2 million retail data customers in December -- 74 percent of the retail customer base and a 37 percent increase over the prior year.

  • The company made two major strategic announcements, setting the stage for the next level of innovation and growth in wireless: Verizon Wireless announced that it will provide customers the option to use, on its nationwide wireless network, wireless devices, software and applications not offered by the company. The company plans to have the new option available to customers throughout the country by year-end and will host an Open Development Conference for device developers in March. Verizon Wireless also announced plans to develop its fourth-generation mobile broadband network using Long Term Evolution (LTE) technology, with trials beginning this year.

  • Verizon Wireless continued to extend the reach of its nationwide high-speed wireless broadband network, powered by EV-DO Revision A (Rev. A) technology, making it available to more than 240 million Americans by year-end. More than half of the company's retail customers -- 35 million -- had broadband-capable devices by year-end.

  • The company continued to introduce additional broadband-capable devices, designed for business and personal productivity, including the first EV-DO BlackBerry Pearl, the 8130; a new roster of PDAs and smartphones, such as the Samsung SCH-i760 and the Palm Treo 755p, as well as the Kyocera KPC680 ExpressCard and the UM 150 USB wireless modem. New music-capable phones launched in the quarter include the Venus and Voyager by LG. Verizon Wireless offers some 25 multimedia phones -- at various price points -- that can download music over the air and surf the Web wirelessly at broadband speeds.

  • During the quarter, Verizon Wireless customers sent or received nearly 45 billion text messages and 927 million picture/video messages. Customers also completed nearly 30 million music and video downloads.

Wireline

  • Wireline total operating revenues were $12.5 billion, a 1.4 percent decrease on an adjusted basis (non-GAAP), compared with fourth-quarter 2006. This includes the continuation of expected declines in former MCI operations serving mass market customers. Wireline total operating expenses were $11.3 billion, a 2.3 percent decrease on an adjusted basis, compared with fourth-quarter 2006.

  • Data revenues increased 12.8 percent to $4.8 billion. For the full year, data revenues were $18.1 billion, an increase of 12.4 percent over 2006. This reflects increasing revenues from consumer broadband, such as FiOS services and Verizon High Speed Internet (DSL), as well as from wholesale data transport and sales of Verizon Business data services.

  • Revenues for mass markets decreased by 0.6 percent, compared with fourth-quarter 2006. In the legacy Verizon consumer market, year-over-year revenues grew 2.7 percent -- the fourth consecutive quarter of growth in this market.

  • Verizon's broadband fiber-to-the-premises network, which delivers FiOS Internet and FiOS TV services to customers, passed more than 9.3 million premises by year-end. Estimated earnings dilution from FiOS was 9 cents per share in the fourth quarter.

  • FiOS Internet was available for sale to 7.5 million premises in parts of 17 states by year-end. Penetration for the service averaged 20.6 percent across all markets. FiOS TV was available for sale to 5.9 million premises in parts of 13 states by year-end. Penetration for the service averaged 16.0 percent across all markets.

  • Verizon Business, a global IP leader and network-based solutions partner, added significant enhancements to its fast-growing strategic services in the quarter. These included: new IP services and capabilities to help customers leverage and optimize VoIP (voice over IP); Ethernet access to Verizon Private IP service in Canada, Latin America and additional European countries; a new Managed WAN Optimization Service that speeds delivery of software applications; and a new portable satellite service for enterprise customers.

  • In addition, Verizon Business expanded its industry-leading security capabilities by offering retailers and financial service providers even stronger safeguards for protecting credit card holders' confidential data. The company also enhanced its Verizon Business Customer Center portal and announced two eBonding enhancements that enable customers to more easily link their systems directly to those of Verizon Business.

  • Verizon Business continued to expand and enhance its global IP network. It announced additional Private IP nodes in the Philippines and Malaysia; an aggressive rollout of its next-generation ultra long-haul optical transport network in Europe; and success in the industry's first field test of 100 gigabits-per-second optical transmission. Verizon Business also completed the landing work for the Trans-Pacific Express submarine cable in Oregon.

  • Multinational corporations and major regional players -- including CEDES, First Data Corporation, infoUSA, Invacare, Investec Limited, Labinal (SAFRON Group), The Menarini Group, Tellabs, and Travel and Transport -- completed agreements during the quarter for a wide range of advanced communications, IT and professional services. In addition, the company signed new agreements with several U.S. government agencies, including the U.S. Postal Service and U.S. Coast Guard, and with JANET, which operates and develops the U.K.'s JANET education and research network. Companies extending their master service agreements during the quarter included Arivia.kom and Xtrion/Melexis.

Verizon Communications Inc. (NYSE:VZ), headquartered in New York, is a leader in delivering broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving nearly 66 million customers nationwide. Verizon's Wireline operations include Verizon Business, which delivers innovative and seamless business solutions to customers around the world, and Verizon Telecom, which brings customers the benefits of converged communications, information and entertainment services over the nation's most advanced fiber-optic network. A Dow 30 company, Verizon employs a diverse workforce of nearly 235,000 and last year generated consolidated operating revenues of $93.5 billion. For more information, visit www.verizon.com.

####

NOTE: This news release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic and industry conditions and labor matters, including workforce levels and labor negotiations, and any resulting financial and/or operational impact, in the markets served by us or by companies in which we have substantial investments; material changes in available technology, including disruption of our suppliers' provisioning of critical products or services; the impact on our operations of natural or man-made disasters and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations; the final results of federal and state regulatory proceedings concerning our provision of retail and wholesale services and judicial review of those results; the effects of competition in our markets; the timing, scope and financial impacts of our deployment of fiber-to-the-premises broadband technology; the ability of Verizon Wireless to continue to obtain sufficient spectrum resources; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; the ability to complete acquisitions and dispositions; and the extent and timing of our ability to obtain revenue enhancements and cost savings following our business combination with MCI, Inc.

Wednesday, January 23, 2008

How to Implement Mobile Marketing

Ad Infuse's director of marketing suggests six questions to ask your agency when planning a mobile marketing campaign.

There has been a lot of buzz in the ad industry about what's next in mobile marketing. While everyone seems to agree that mobile is the "next big thing" in advertising, most agencies are unable to take the conversation much further. With mobile media consumption on the rise and nearly 35 percent of the U.S. subscriber base viewing rich content beyond email and SMS, brands need to make sure that their agency partners understand both the medium and the opportunities it presents.

Put your agency to the test. Below are six questions you can ask to determine their level of savvy.

1. What are the different ways in which we can implement a mobile component to our media strategy?

Beware if the only thing your agency suggests is a text-based SMS campaign. Don't get me wrong, SMS is a great way to go, but be aware that you can do almost anything on mobile that you can do on any other medium. You can do video, banners, in-game, search, localized advertising, viral campaigns, and so much more. So SMS isn't a bad thing, just know that it's one dimension of many and if your agency is relying on this alone, you're in trouble. Also, if your agency says to you, "any kind of mobile campaign takes a minimum of six to eight weeks to put together, and is really difficult to implement," be aware that in truth your existing creative assets (be that a 15-second spot from TV or a flash interactive ad unit) can be repurposed, and if done right, can be done in a matter of days-- not weeks.

2. What do you think our "off deck" or "off portal" strategy should be?

In case these terms are new to you, here's the "off deck/portal" vs. "on deck/portal" story in a nutshell. Remember when AOL users thought they were browsing the internet when in fact they were just browsing inside the AOL "walled garden" of pre-selected content? Well this is, in essence, the difference between "on deck" and "off deck." In the case of mobile internet, the big mobile carriers will not only make it very difficult to physically navigate, but they will also charge a variety of surcharges for breeching their walls of control, so to speak. Carriers have traditionally wanted to completely own and control the end-to-end mobile browsing experience. Of course, it's a lot more complicated than that, but for our purposes, that's the off-deck issue at 50,000 feet. Consumers are angry at the surcharges and are demanding a free flow of content, which is, in turn, spawning new content relationships and distribution strategies left and right.

Now, when your agency answers this question by telling you that you can create a WAP site, (which is the mobile world version of a website and stands for Wireless Application Protocol) and that you can have many of the same components of your current website, you're off to a good start. WAP is a pretty good answer, but an incomplete one if standing alone. Similar to your website, a WAP site is paramount to maintaining consistent presence with your customers as their media consumption habits shift. The reality is that much like the internet, the mobile web is nothing without driving traffic or interaction with your site. Traffic can and should come from a host of advertising solutions: video, SMS, TV ads, radio, print, viral components-- really anywhere. The point is that if your target audience is consuming mobile (and believe me, they are or will be very soon), shouldn't you be creating a consistent experience with your brand across all media touch points?

At worst, when you ask your agency this question, you might get nervous fidgeting or the claim that mobile is just a passing trend. If so, you're in big trouble.

3. Who is consuming mobile content and what are they consuming? Is our target audience there?

The standard response you'll likely get is that the only people consuming mobile content are either the teenaged crowd or those tech-crazed early adopters-- single digit adoption at best. While of course it is true that these two groups ARE consuming mobile media, there is more to it than that. If we parse down the details of a 2006 Jupiter U.S. Wireless Consumer Survey into two groups, "Just Talkers" and "Data Users," I'll bet that most people don't realize that even in an older demo of 35- to 44-year-olds, 61 percent of the users actually fall into the "Data Users" category! Maybe not the heavy texting, pop culture and gaming consumption of those youngsters, but rather news feeds, email access and podcast consumption. For the 45 to 54 demo the percentage is not nearly that high, but is still a respectable 47 percent.

Remember, people said the same skeptical things about the adoption of the internet. The reality is that mobile is penetrating all audiences as mobile phones continue to improve, and the consumer phone replacement cycle in the United States continues to be every 12 to18 months. With this short of a life span for any singular-function phones left out there, we can safely assume that 18 months from now the streets will be filled with completely rich media enabled, mobile consumers. It is up to you as the marketers and to those out there providing media content (TV studios, editorial content providers and so on) to educate and lead your consumers into this new realm by creating that cross-media experience.

Tuesday, January 22, 2008

The new role of oil wealth in the world economy

  • As oil prices continue to set new records, investors outside Europe and the United States are increasingly shaping trends in financial markets. The influence of these investors is likely to continue to grow over at least the next five years.
  • Without a doubt, this flood of oil money is creating new dynamics in world markets and fueling growing concern about government connections and influence on markets.
  • Since facts about these powerful new investors have been scarce, McKinsey’s research aims to ground the debate by providing data and analysis, including where this new wealth is held, how it affects markets, and what the players might do to address growing concerns over their influence.
This article contains the following exhibits:
  • Exhibit 1: Oil-exporting countries have become the world’s largest source of global capital flows, surpassing Asia.
  • Exhibit 2: Even if oil prices declined to $30 a barrel, foreign assets purchased with petrodollars would grow at a robust average annual rate.
  • Exhibit 3: The Abu Dhabi Investment Authority (ADIA) is the largest sovereign wealth fund among oil exporters.

Friday, January 18, 2008

How companies are marketing online: A McKinsey Global Survey

  • A McKinsey global survey of marketers shows that companies are using digital tools—from Web sites to wikis—most extensively for customer service, least in pricing. Two-thirds are using digital tools for product development, almost as many as are advertising online.
  • Respondents consider online ads to be as useful for brand building as for direct response. Spending is expected to increase on all types of online advertising vehicles over the next three years.
  • In 2010 just over half of all respondents expect their companies to be getting 10 percent or more of their sales from online channels—twice as many companies as have hit that mark today. And 11 percent expect to be spending a majority of their advertising budgets online by then.
  • Most companies today don’t integrate their online and offline marketing efforts; companies that use online tools across the full spectrum of marketing activities are much more likely to do so.
This article’s exhibits display the respondents’ views on digital-marketing tools and techniques.

Delivering software as a service

  • Traditionally, companies buy software and then install and maintain these applications on their own machines. That model is giving way to one where companies will buy subscriptions and access services over the Internet from software developers that host their own applications.
  • Some applications will migrate to the new delivery model faster than others, but all software makers should begin to explore the economics and necessary capabilities for online delivery.
  • Revenue models for these developers will change, since software as a service delivers fees over time rather than large up-front license purchases.
  • Customer service and R&D capabilities will also need to adjust to the reality of ongoing relationships with customers rather than periodic upgrades.
This article contains the following exhibits:

  • Exhibit 1: The economics of companies that deliver software as a service differ from those of large software companies, though they are similar to those of smaller ones.
  • Exhibit 2: Applications are likely to migrate from traditional delivery to software as a service at different times for enterprise customers vs. small and midsize businesses.
  • Sidebar exhibit: Software as a service offers a reduction in total cost of ownership.

Thursday, January 17, 2008

The McKinsey Quarterly - What’s in store for global banking

  • Global banking may be passing through a major cyclical correction at the end of 2007, but new McKinsey research suggests that in the longer term the industry’s revenues and profits—poised to continue growing faster than the rate of GDP growth—will double by 2016.
  • The historical part of the analysis, which examines global data from 2000 to 2006, reveals a rich mosaic of regional, national, and product diversity. There is little global convergence: different factors seem to drive different markets, which have surprisingly varied structures and uneven growth patterns.
  • In 2016, the market capitalization of banks will likely be $12 trillion higher than it is today. As consolidation in the sector accelerates, winners will be able to outmaneuver their competitors by developing a deep, bottom-up understanding of the idiosyncrasies of markets and by understanding the vital importance of being in the right place at the right time.
This article contains the following exhibits:
  • Exhibit 1: Banking has become the industry with the highest absolute profits.
  • Exhibit 2: Banking profits are likely to remain at a historical high over the next ten years.
  • Exhibit 3: Developed countries still account for the bulk of banking activity.
  • Exhibit 4: The mix of banking business in different countries or regions varied significantly.
  • Exhibit 5: Key drivers of growth in retail-banking revenues differ dramatically across countries.
  • Exhibit 6: The annual growth of a bank’s investment value is a combination of its after-tax growth in profits adjusted for changes in market multiples.

Recession fears hit IT

A survey by Baseline in the fourth quarter of 2007 found that 46 percent of respondents believe their companies would cut IT spending and staff if a recession hit. And the survey also found that one-third believe their job would be in jeopardy in the event of an economic downturn. This does not bode well for the IT community. "Companies will do what they have to do to maintain cash flow and profitability," says John von Stein, the chief information officer of The Options Clearing Corp. in Chicago. "IT typically is an area where a delay in projects and initiatives allows the company to spend money later-or not at all-if the business value is no longer there to justify the project."

The survey found other bad signs popping up, too. The respondents believe that more work will be outsourced to Asia and Latin America. But the news isn't all bad. More than 70 percent of respondents believe that more work will shift to the Internet if energy prices keep rising. Stay tuned. This issue is definitely growing and will compel IT executives to use technology to help save unnecessary costs.

For more about the IT world and recession:
- See this Baseline article

Oracle grabs BEA for $8.5 billion

The end is finally in sight in Oracle's dogged quest for BEA Systems. The pending deal calls for Oracle to pay $8.5 billion, a 14 percent increase over its first offer, which put the companies in a tussle over how much BEA is worth. Oracle will pay $19.375 per share for BEA, higher than the $17 per share it offered in October but lower than the $21 per share BEA had previously demanded. "It's a fair price. It's a good deal for Oracle. It's a good deal for BEA," Trip Chowdhry, analyst at Global Equities Research, told Reuters. The stock market may be softening these days, but here's a case of a tech win in tough times.

For more on the BEA deal:
- See this eWeek article

Wednesday, January 16, 2008

Study: Consumers satisfied by mobile options

A majority of mass-market consumers are satisfied with the devices, services and applications offered by their mobile operator according to a new study issued by web analytics firm Compete, which recommends that carriers now focus their efforts on more effectively marketing their existing products and services. According to Compete, which analyzed the browsing and shopping behavior of millions of consumers, 59 percent of respondents feel their carrier offers a sufficient selection of handsets and services--among subscribers seeking an expanded menu of options, most requested applications like GPS and web connectivity, apparently unaware those services already exist. Asked to name the most important mobile phone features, 75 percent of respondents cited device price, while 69 percent named customer service. In addition, 32 percent of respondents reported growing difficulty finding the right mobile device.

"With the iPhone launch in 2007, we saw the wireless industry make an initial move away from its legacy of carrier controlled devices and services," said Compete's general manager of telecommunications and media Adam Guy in a prepared statement. "With carriers beginning to embrace open access, they will be able to focus on marketing their products and services to the masses while outsourcing niche device and content development to third parties."

For more on the Compete report:
- read this release

Monday, January 14, 2008

The top 12 mobile and wireless issues for 2008

Well, it's that time of year again. Reflection and forecasts come with the season, and this year is no exception. I started assembling a "top 10" list of the key issues in mobile and wireless that will shape the industry next year, but I quickly discovered that the top 10 could easily be the top 50 or so. There's never been more going on in the mobile and wireless industry than there is now. I managed to condense this unwieldy number down to 12, although prioritizing them is still a work in progress. Nonetheless, I present the first six this week, and the remainder in my next column. I hope you find this list to be good food for thought, and while less caloric than the rest of what we'll consume over the next few weeks, no less important.

1. Picking the right tool for the job

As the saying goes, if all you have is a hammer, everything looks like a nail. Such is the case with wireless technologies and the products that result from them. Vendors like to pitch their products as all you'll ever need. But wireless is a collection of technologies, and there is no one-size-fits-all. It's all about four key elements: availability, throughput (for data), capacity and price.

The carriers will be working hard in 2008 to improve their networks, even in the face of massive new expenses related to spectrum acquisition (the 700 MHz auctions start in late January) and continual technological evolution and the upgrades this entails. Look for lots of talk about 4G continuing in 2008, but don't expect critical mass here until 2011 or 2012. And don't expect to find WiMax in digital cameras -- Wi-Fi works just fine there, and will for a very long time. OK, maybe ultrawideband.

2. Think network, not wireless, security

The focus on wireless security alone is over. It's time to think end-to-end. Mobility and wireless provide the motivation, but securing the air alone is inadequate. Good wired security solutions apply to wireless as well and involve encrypting sensitive data wherever it resides, strong authentication (ideally, two-factor) with both devices and data, and end-to-end VPNs.

Do we need a "mobile" or "wireless" VPN? This subject will be debated quite a bit in 2008, and the answer is -- it depends. Some IT shops will insist on such a solution for local management and control. But I expect big interest in SSL VPNs in 2008, and they could become the preferred wireless option as well.

3. Wi-Fi forever

Let me be clear: Nothing replaces Wi-Fi anytime soon, and maybe never. Not WiMax. Not femtocells. Nothing. The continuing technological evolution of Wi-Fi is at once remarkable (hundreds of megabits per second in a WLAN? Really?) and eminently predictable as part of the faster/better/cheaper that defines high tech.

Expect huge interest in 802.11n in 2008, ahead of final ratification of the formal standard in mid-2009. It's here. It works. Moreover, Wi-Fi is as close as we get to a universal, global wireless standard. It works in pretty much the same way everywhere, across the enterprise, the home and public spaces. Metroscale deployments will chug along in 2008, and hot spots aren't going away either. And the folks at 802.11 have even more innovations in the works. Gigabit Wi-Fi? Yes, but not until 2010 or so.

4. Think "rate vs. range," not rate alone

I find that many make the mistake of believing wireless performance numbers that are really no more than what vendor marketing departments guarantee their products will never exceed. I generally suggest de-rating theoretical numbers by 50% to 66% just to make sure a given application will work.

But it's also important to remember that there's an inverse relationship between distance and throughput in most wireless technologies: The farther you go, the slower you go. Not considering this element is often the cause of failed wireless projects, or, at the very least, disappointed and frustrated users. But let's see if we can't get the industry to be a little more realistic in its specs in 2008. The best way to make satisfied customers is to properly set their expectations. Ever seen an ink-jet printer that can move, let alone print on, 20 pages per minute? Neither have I.

5. Convergence and unification

Picking the best tool for the job may involve picking multiple tools. With the convergence of Wi-Fi and wide-area wireless services (mobile/mobile convergence, or MMC), we'll have combined cordless/cellular phones that work everywhere and provide the best mix of service, price, performance and manageability.

Just as is the case with VoIP, VoFi will be big in 2008. In fact, another related key theme will be unification, thinking not about the wired LAN and the wireless LAN, but rather just about designing, building and operating the LAN. We'll even begin to see commonality in wired and wireless network management systems, the last frontier of unified networks.

6. The single-device paradox continues

Finally, I see more convergence in networks but continuing divergence in devices. As Motorola learned with the once-hot Razr falling out of fashion, the tastes and preferences of consumers with respect to their mobile phones, PDAs or whatever change faster than the weather here in New England.

And even with Google's Android announcement, there's no such thing as a universal device or universal platform, and there may never be. We want it all, we want it in one device, but such is not possible or even feasible for now.

Look for an even more amazing range of devices next year, with the big question involving local applications or Web services. That's such a big topic that I'll write about it further in my next column. For now, look for increasing desktoplike qualities in mobile browsers. The iPhone kicked off this trend but is by no means the last word on it.

7. The last frontier: Battery and power management

No matter what your handheld can do, it can't do it with a dead battery. And as we demand that these devices do more, and faster, they suck down battery power faster than Uncle Ned downs eggnog while opening gifts. Progress in battery technology is much slower than in chips and such; chemistry is more difficult than physics. But there is progress to report. A combination of incremental improvements in lithium batteries, power-saving wireless protocols, chips that can be partially or completely turned off when not in use, and assorted engineering cleverness will enable us to make at least a little progress here. Don't expect wireless battery recharging in 2008, although this might be possible in five years or so. My advice: Always carry a fully charged spare battery with you when you travel.

8. Think ROI, not cost

I can't tell you how many projects I've seen derailed at the starting gate by a financial type who utters those three fateful words: It's too expensive. This is usually looking at the problem from the wrong perspective. It's not about cost, or at least cost alone, but rather return on investment. If you're improving the productivity of your field force far in excess of the costs involved in providing them with a mobile offering, that's a good investment. The right way to look at this problem then is to ask a few questions: Is the cash flow manageable? Are the funds available, or what's the cost of obtaining them? Next, look at opportunity cost, the cost of the next best alternative or, more likely, do nothing. And finally, estimate ROI. If all of these look good, it's tough for a chief financial officer to refuse.

9. Web services are the answer

The iPhone brought the debate over local applications versus Web services to the forefront during 2007. The iPhone originally wasn't going to have an API for programmers, but it soon will. And yet, with a great browser, one might argue that local apps are so 2007. Both are needed, as it turns out, because there are some local tasks such as editing documents, working with a spreadsheet and preparing a presentation, that can be done offline, and wireless coverage isn't perfect. Wireless on airplanes, by the way, will make progress in 2008. But there's no way that all of the information required for local applications, be it clip art or your personal files, can be carried with you at all times; there's just too much of it. And that holds for most other personal productivity and IT functions; most of these also can't be done without access to the Web. So, strategically, the Web-services approach makes more sense. More capable devices and more wireless coverage (again, via multiple technologies and networks) are also part of the solution. Again, expect good progress on both during 2008. But ultimately, it's all about content -- Web content.

10. Sociology, not technology

Wireless can bring out the best, and the worst, in us. We can be more responsive, more productive and more involved. On the other hand, incessantly ringing cell phones, loud talkers, conversations that should be taken elsewhere and the use of cell phones while driving are among the downsides we've seen so far. Part of the solution here is, of course, common sense and common courtesy, but lacking these, expect more on the legal front during 2008. Anyone driver involved in a motor vehicle collision (note I don't use the word "accident" here) while talking on a cell phone will find stiffer penalties in many states. Safety (and peace and quiet) must trump convenience.

11. Product quality must improve

This is more of a request than a forecast, but far too many wireless and mobile (and many other) technology products make it to market before they're ready. Bugs are common, and the attitude of leaving it up to the user to download a fix (if that's even possible) after a purchase is far too pervasive. We shouldn't be expected to debug products for companies that we've paid our hard-earned dollars, and it's time for product designers and builders to get it right before they put that fancy new gadget in the box. Sadly, I don't expect much progress here in the coming year, but I hope the vendors are listening regardless. Losing productivity while dealing with poor quality products affects ROI, as any CFO will tell you.

12. Open access and Net neutrality

I've saved the best, and biggest, for last. The most important stories of 2007 were the FCC requirement for open access in some of the 700-MHz spectrum range. Spectrum blocks to be auctioned shortly, and Verizon Wireless' stunning endorsement of open access (allowing any compatible device on their network, whether they sell it or not) and Net neutrality (agreeing to support any application, again, theirs or otherwise). Openness is the very foundation of modern networks, and now it will be the guiding principle for wireless going forward. This train is unstoppable, and all successful players are going to get on board -- or find another game.

So forward we go to a bright and promising 2008. There's never a dull moment in our little corner of IT. Please accept my best wishes for a happy holiday season and all the best for 2008. I'll be back in January with more, much more on the world of wireless and mobile. See you then.

ABC: An Introduction to CRM

What is CRM?

CRM stands for Customer Relationship Management. It is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. Good customer relationships are at the heart of business success. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a strategic process that will help you better understand your customers’ needs and how you can meet those needs and enhance your bottom line at the same time. This strategy depends on bringing together lots of pieces of information about customers and market trends so you can sell and market your products and services more effectively.

What is the goal of CRM?

The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. With an effective CRM strategy, a business can increase revenues by:

  • providing services and products that are exactly what your customers want
  • offering better customer service
  • cross selling products more effectively
  • helping sales staff close deals faster
  • retaining existing customers and discovering new ones

That sounds rosy. How does it happen?

It doesn't happen by simply buying software and installing it. For CRM to be truly effective, an organization must first understand who its customers are and what their value is over a lifetime. The company must then determine what the needs of its customers are and how best to meet those needs. For example, many financial institutions keep track of customers' life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs.


Next, the organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising efforts. CRM systems link up each of these points. This collected data flows between operational systems (like sales and inventory systems) and analytical systems that can help sort through these records for patterns. Company analysts can then comb through the data to obtain a holistic view of each customer and pinpoint areas where better services are needed. For example, if someone has a mortgage, a business loan, an IRA and a large commercial checking account with one bank, it behooves the bank to treat this person well each time it has any contact with him or her.

Are there any indications of the need for a CRM project?

You need CRM when it is clear you don’t have an accurate view of who your customers are and what their needs or desires are or will be at any given stage in their lives. If you are losing customers to a competitor, that’s a clear indication that you should improve your understanding of your customers.



How long will it take to get CRM in place?

It depends. If you decide to go with a hosted CRM solution from an application service provider and you are planning to use the software for a specific department like sales, the deployment should be relatively quick – perhaps 30-90 days. However, if you are deploying either a hosted application or an on-premise package (involving the purchase of software licenses upfront) on an enterprise-wide basis (that involves different departments like sales, marketing and operations), you should expect the implementation and training to take months, if not years. The time it takes to put together a well-conceived CRM project depends on the complexity of the project and its components and how well you manage the project.

How much does CRM cost?

Again it depends. A hosted sales automation application can cost between $65 and $150 a month for a basic sales automation package. If you want more sophisticated functionality and a greater level of support, you pay a lot more. An enterprise on-premise CRM package can cost anywhere between several thousand to several millions of dollars, depending again on how many functions you purchase and how many computers or “seats” have access to the software. For instance, one company or department might purchase an email marketing management application or a salesforce automation application, while a larger firm might want to purchase an integrated package that includes a database as well as applications for marketing, sales and customer service and support (via call centers and online). Obviously, the integrated software package is much more expensive.

What are advantages of hosted or on-demand CRM vs. on-premise and vice versa?

In the last few years, the market for on-demand CRM has soared particularly among small and mid-sized companies, largely because of fears about the expense and complexity of large-scale on-premise CRM implementations. And indeed, on-demand CRM is often a good choice for companies that want to implement standard CRM processes, are able to use out-of-the-box data structures, with little or no internal IT support, and don’t require complex or real-time integration with back office systems.

However, on-demand CRM software is not always as simple as the vendors would have you believe. For instance, customization can be problematic and hosted CRM vendors’ API tools cannot provide the degree of integration that is possible with on-site applications. Getting a hosted CRM system working shouldn’t take as long as a traditional software package, but larger and more complex rollouts can still take a year or more. And while the hosted option reduces the need for in-house technical support, upgrades can still sometimes be technically tricky. In addition, some companies with particularly sensitive customer data, such as those in financial services and health care, may not want to relinquish control of their data to a hosted third party for security reasons. As a result, AMR Research predicts that even by 2009, hosted CRM applications will account for only 12 percent of the total U.S. CRM market. [For more on on-demand vs on-premise, read "The Truth about On-Demand CRM."]

What are the keys to successful CRM implentation?

  • Develop your customer-focused strategy first before considering what kind of technology you need.
  • Break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. Start with a pilot project that incorporates all the necessary departments but is small enough and flexible enough to allow tinkering along the way.
  • Make sure your CRM plans include a scalable architecture framework. Think carefully about what is best for your enterprise: a solution that ties together “best of breed” software from several vendors via Web Services or an integrated package of software from one vendor.
  • Don't underestimate how much data you might collect (there will be LOTS) and make sure that if you need to expand systems you'll be able to.
  • Be thoughtful about what data is collected and stored. The impulse will be to grab and then store EVERY piece of data you can, but there is often no reason to store data. Storing useless data wastes time and money.

Which division should run the CRM project?

The biggest returns come from aligning business, CRM and IT strategies across all departments and not just leaving it for one group to run. In fact, it’s best for the business departments who actually use the software to take ownership of the project, with IT and the CIO playing an important advisory role.

What causes CRM projects to fail?

Many things. From the beginning, lack of a communication between everyone in the customer relationship chain can lead to an incomplete picture of the customer. Poor communication can lead to technology being implemented without proper support or buy-in from users. For example, if the sales force isn't completely sold on the system's benefits, they may not input the kind of demographic data that is essential to the program's success. One Fortune 500 company is on its fourth try at a CRM implementation, because it did not do a good job at getting buy-in from its sale force beforehand and then training sales staff once the software was available.

What industries are leading the way in CRM implementations?

As in most leading-edge technology implementations, the financial services and telecommunications industries set the pace in CRM. Other industries are on the CRM bandwagon include consumer goods makers and retailers and high tech firms.

Which industry is behind the curve?

Heavy manufacturing. As a rule, the further an industry is away from the end customer, the less important CRM is.

Other stories by Thomas Wailgum

© 2007 CXO Media Inc.

Four Tips for Better Business Intelligence in 2008

January 08, 2008CIO — Companies want more actionable data, and they want more users to have it. But extending the use of business intelligence throughout the organization remains a challenge. One reason: Lack of BI and IT skill sets continue to plague companies interested in taking BI to the next level, according to David Hatch, research director at Aberdeen Group.

Part of the answer lies in providing more user-friendly BI tools. Hatch offers four tips for achieving that goal.

1. Explore new user-friendly business intelligence tools. New ways of delivering BI can help in your quest to extend business intelligence throughout the enterprise. One new method to consider is BI accessed through a third party—for example, software as a service BI or on-demand BI. In addition, look into the availability of BI as an embedded capability within enterprise applications such as ERP and CRM. Since users are already familiar with your enterprise applications, they may find BI products offered through these providers easier to learn.

2. Find ways to integrate Web 2.0 information into BI. Web 2.0 data sources and other unstructured data do not obviate the need for traditional structured data, says Hatch, but they can be used to boost BI efforts. Amassing large sets of historical data reveals trends, performance metrics and specific business calculations: These are the foundation of most BI efforts. But the ability to enhance that historical data with relevant and timely information found in blogs, comments and competitors' websites is becoming more important for delivering actionable information throughout the enterprise.

3. Give users BI tools that they can be trained to use autonomously. Employees are more likely to use and embrace business intelligence tools that they can use independently. To create an environment of business intelligence self-sufficiency, establish a group composed of both business users and IT representatives to collaborate on prioritizing user needs and choosing or developing BI tools. Hatch also advises being attuned to inflated vendor claims and involving vendors in proof-of-concept and pilot projects.

4. Consider operational business intelligence. New BI offerings that automate data collection, assembly and delivery processes are one of the most promising areas of business intelligence. To figure out if they're right for you, look for data generated by business processes that lend themselves to automated analysis and even actions taken on the basis of that analysis. For example, some financial service organizations use applications that automatically analyze fluctuations in currency rates, and that automatically initiate trades based on those decisions. In many manufacturing organizations, data analysis is done automatically on the progress of chemical interactions—temperature, viscosity and color of a mixture, for example—and changes to the mixture are automatically made at the back end before it ever reaches people on the production line.

Other stories by Diann Daniel

© 2007 CXO Media Inc.

XOHM WiMAX goes live in April

XOHMG! Sprint has just announced the launch details of their hotly-anticipated XOHM WiMAX network and it's going live a lot sooner than most of us expected. Sprint CTO Barry West told a CES panel that the service will be available to consumers at the end of April, with around ten devices lined up for launch, including a laptop data card and desktop modem. Of the ten devices, only one was confirmed by Sprint: an Internet device from Nokia (N820, anyone?), though we do know that a WiMAX-equipped Eee PC and OQO UPC are forthcoming at some point. And what of the price for XOHM service? "People will be excited about our rates," West said. "They won't be ecstatic about them because we're not going to give it away." I think we all know what that means--start saving up those pennies now.

For more on the XOHM announcement:
- see this Gizmodo article

Sunday, January 13, 2008

Welcome

Well, I am personally interested in using technology for transforming companies from their existing situation into more technology oriented situation. But, why am I interested in that?

I have only one reason to motivate myself to make research on this area: UNDERSTAND CUSTOMER.

If companies understand their customers, they can deliver more value to them. If they deliver more value (satisfy their needs), they will have dedicated customer which increases profits in return. Cash is the only way to survive for companies.

From the books that I read, I concluded that if a company does not produce enough cash, none of the business units in that company can be productive.

Sales department can not hire new sales people to SELL!
Marketing department can not make promotions or install new software for customer research!
Finance department can not have enough cash to make new, valuable investments!
... and list goes on!

So what I am trying to do is to use new technologies (especially wireless technologies) to understand customer!!!
Google