Innovation In a Mobile World

Thanks to Apple, consumers are seeing a whole new wave of innovation and competitiveness in the mobile market. However this is far more than simply attracting customers. It is also means looking at mobile in a whole new way.

For the longest time the consumer had only experienced smartphones in a limited manner; the result of years of competition among the handset manufacturers and telecom providers. Enter Apple with it's new smartphone the iPhone. This sole offering ignited passion and imagination not seen by the current players in that space. However it should be noted that iPhone at least conceptually is relatively simple - make something easy to use, simplifies the complexities of doing things "on-the-go", have compelling apps and content, keep people connected via voice/internet/multimedia/social networks, have good quality, and available at a reasonable cost. By delivering a product experience with a very rich set of services, Apple raised the bar considerably for all existing competitors and new competitors.

Of all the newer competitors, Google Android has the most promise. It is unlikely to reach the level of smooth integration and slickness of the iPhone anytime soon, however it is improving. What Android does gain is the openness of the platform. It is the openness that can bring a lot more innovation and creativity to the users. Perhaps in a sense even rivaling that of the iPhone.

However this does not mean that Apple can relax and enjoy it's success. Continuing pressure from competitors like Android and increasing demands from it's global consumers means the iPhone has to continue to evolve bringing better features and services so that customers will continue to purchase newer devices and purchase service contracts from their telecoms. The most profitable yet controversial is the Apple App Store. While bringing many applications, the growing discontent and consequent defections of innovative developers such as Joe Hewitt who helped write the iPhone Facebook application should be of great concern to Apple. As contributors to applications that have made the iPhone shine make their voices known about the weaknesses of the approval process for the App Store it is unclear how fast, how consistent and how much quality can continue to be provided in the App Store. Unless Apple can find a way to regain the creative spark to call developers to their platform, they may in fact be driving some of the best minds to their competitors which could spell troubled times for the iPhone.

Yet this is not a problem facing the top rising stars of the mobile space rather the industry as a whole. What innovative mind would want to work in companies such as telecom or handsets whose internal cultures that not only make creative minds cautious, but even potentially unappealing? After all, why work in a place that does not share the passion to innovate when one can simply strike out on their own or in a company that does want to innovate for the mobile space using the developer kits being offered by the likes of Apple or Google.

This is the crux of the problem for the mobile world. By following the profitable iPhone app store model, competition is not only just on handset hardware and carrier quality, but on applications. As smartphones start to become more integrated to the internet existing status quo is not only inadequate but potentially fatal.

Having watched this evolution progress there are a number of key elements that I find interesting to look out for:

• While everyone wants voice communications, the quality of service and price point pressures will continue to be a sticking point. It is clear that consumers ideally would want a phone that could switch to any network as they move around, using the provider with the best signal and best price for what they need. I could see the potential for a voice mesh using a single number such as Google Voice being able to provide the simplicity. The challenge of course is the underlying complexity of managing that price and traversing the wireless communications network but again I would expect certain emerging competitors to look strongly at this problem.
• The Internet for everything. One idea that has been gaining strong support is that via VOIP, social networking, and messaging perhaps all smart device needs is a good Internet connection. In certain countries this a reality not just a possibility. However for the vast majority, this is still emerging though growing as infrastructure improves.
• Making mobile easy. Applications like Facebook show that people will interact on-the-go they just want experiences that make it easy. This has never been the forte of the existing incumbents. However as the new world emerges with many following the App Store model more applications to make going mobile easier will appear.
• Telecom/Handsets Becoming Tech Savvy. While always technically astute, following an App Store model means that both telecom and handset businesses will find themselves becoming software shops and service providers to a very demanding, innovative, creative and outstanding community - the mobile developers. These are not companies that they have typically done business with and as a result this means significant challenge to these players.

What I hear over and over again from many leaders in the mobile space is how their existing enterprises can handle these changes with only "minor" changes or tweaks. Let me be clear on my personal opinion about these views... if what you had was working then competitors like Apple and Google would not be the darlings of the mobile world. The brutal fact is that most if not all the existing players in the mobile world have been caught flatfooted and are scrambling to catch up. While they are rising to the occasion, they have a lot of ground to cover and a lot of culture to change. In the end, I still have my doubts that the core of these companies will continue to exist if they want to remain competitive in the marketplace of the future.