A Primer For Navigating The Shoals of Applying Wireless Technology To Marketing Problems
A Primer For Navigating The Shoals of Applying Wireless Technology To Marketing Problems
A Primer For Navigating The Shoals of Applying Wireless Technology To Marketing Problems
Abstract
Purpose – This paper seeks to help marketers become familiar with the strengths and weaknesses of the current state of wireless technology that is
being applied to marketing problems.
Design/methodology/approach – The paper first examines successful applications of wireless technology to connect marketing applications to
wireless technology. A total of 11 important issues and questions are presented to help marketers know the key points in building a successful wireless
application. A glossary to clarify the acronyms is presented.
Findings – The main focus is business persons as they will create the technology environment that will become the research environment. The
excitement caused by new developments such as wireless has the potential to have significant impacts on marketing practice or lead to major failures.
Mobile commerce (m-commerce) driven by wireless technology is generating interest from marketers. A partnership between marketers and technology
developers is needed to create a successful application. Developers are enthusiastic and speak in acronyms and may overwhelm marketers with the
excitement of an application.
Originality/value – The paper presents new developments such as wireless technology that have the possibility of significant impacts in marketing
and organizational performance that are counterbalanced by the potential of significant failures. This changing business environment will be the
environment that scholars doing research in sales and service marketing must understand in order to design relevant research studies.
An executive summary for managers and executive computers and are buying smart phones (personal digital
readers can be found at the end of this article. assistants (PDAs)/phone combinations). Wireless technology
has become ingrained in all walks of American life in just the
last few years (Steinberg, 2003). This is the new environment of
Introduction sales and service research. How these new technologies will
Today, we are participating in a revolutionary new way of impact sales and service development must be considered by
conducting business, where mobility no longer limits our scholars. We present a primer to managers and scholars on what
productivity. Because of this, we are at the point where we is happening in the application of wireless technology to
actually feel inconvenienced if we are tethered to a wall outlet marketing problems.
or confined to a few square feet of office space. We envision In July of 2003, a million new consumers were supposed to
having all the power and sophistication of a hardwired make video calls, watching live football and checking e-mail –
environment right in the palm of our hand, to use whenever all with their mobile smart phones. The third generation
and wherever we wish. technology (3G), is the technology that should be responsible
Wireless is no longer a novelty. Wireless is everywhere and it for this revolution and new market (Whitfield, 2003). When
is here to stay. It has evolved from the bulky, over-priced cellular will 3G arrive? What technologies is it going to take to put all
phone of years past into small handheld devices with multiple this in our pockets? What new marketing opportunities will
complex functionalities that complement nearly every lifestyle. emerge from this technology? What are the caveats of this new
Today’s, business people are accessing their e-mails, placing emerging wireless mobile market?
orders and logging on to the company networks from the road; Wireless technology and mobile computing applications in
young professionals are not tethered to their wired-line desktop marketing have been over hyped. The creation of value to the
user and to the customer is not always delivered using these
technologies (Whitfield, 2003). To technologists, the solution
The Emerald Research Register for this journal is available at to all business problems is the technology. On the other hand,
www.emeraldinsight.com/researchregister
pessimists conclude that wireless mobility solutions are
The current issue and full text archive of this journal is available at untenable for the enterprise until the 3G of wireless
www.emeraldinsight.com/0885-8624.htm becomes a verified reality. This paper presents 11 questions
to ask when confronted with these opposite positions.
Wireless communication is the process of communicating
Journal of Business & Industrial Marketing information in electromagnetic media over a distance through
20/2 (2005) 59– 69
q Emerald Group Publishing Limited [ISSN 0885-8624]
the free-space environment, rather than through traditional
[DOI 10.1108/08858620510583650] wired or other physical conduits (Pelton, 1995). Wireless
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
Stan G. Aungst and David T. Wilson Volume 20 · Number 2 · 2005 · 59 –69
messages move through the free-space environment on a Any discussion about wireless has to begin with cellular
certain electromagnetic spectrum, which are scarce, usually phones. Nearly, 600 million were sold worldwide in 2001
heavily regulated and often unattainable expensive resources. (Dodd, 2002) their popularly continues to rise (Dodd, 2002).
Wireless devices such as cell phones and smart phones The latest cellular phones provide full data functionality,
(PDAs/cellular phones), wireless PDAs and mobile message including internet access, text messaging and video. These
devices (MMD, e.g. blackberry devices) are inherently less web-enabled phones typically consist of a LCD screen, a
secure than their wired counterparts. This is due in part to numeric key pad, navigational controls, camera and all the
their limited bandwidth, memory, data security and software needed to view web sites, transmit text messages,
processing capabilities. Another reason is that is that the store names and phone numbers and perform basic
users send their data into the air where anyone with the organizational and productivity tasks.
proper hardware technology can intercept it. Text messaging devices represent the next phase in the
As with any leading-edge technology, wireless will mature evolution of pagers. Not only do they notify you of incoming
and evolve. Wireless/mobile computing will change the way phone calls, but also they allow you to store names, addresses
that wireless technology is used to solve business problems. and phone numbers; receive news headlines, sports scores,
For example, at FedEx they have been committed (for more stock quotes; and transmit e-mail and instant messages. The
than 20 years) to an aggressive wireless strategy for four Timex instant messenger line of watches bring wireless
primary reasons (Winn, 2002): messaging to your wrist (Dodd, 2002).
(1) to add quality to their internal system; The number of mobile phone subscribers is probably one of
(2) to add speed to their processes; the best indicators of the wireless/mobile market size and
(3) to improve internal planning; and dynamics. At the end of the year 2001, about 600 million
(4) most importantly, to enhance the customer experience subscribers were using mobile phones. This number is
and address customers’ problems. estimated to grow to 1 billion by the end of 2003 (Lee, 2001)
and 1.3 billion in 2005 (UMTS Forum, 2002). Mobile
This year (2003) FedEx implemented a continuation of their
customers relationship management systems (MCRM) will be
wireless technology to address these four issues. For example,
a requisite to compete and retain customers who are mobile
a customer can ask the FedEx Express courier when he/she
users (Andrew, 2001). Today, customers want to track their
comes by to pick up a package, the cost to ship the package
order via their handheld devices and eagerly await their
and the status of another package that he/she shipped
product arrival. The marketer has access to wireless smart
yesterday. The courier simply looks at his/her handheld
phones by Palm, Kyocera, Samsung and others that are
computer and then gives the customer the details he/she
building PDA functionality into cell phones (Dodd, 2002).
needs without having to go back to his/her van or directing the
These new innovative products and services can cause major
customer to customer service. Right there, FedEx has solved
shifts in consumer spending. Therefore, the size and structure
three business problems – quality, speed, and an enhanced
of the market as well as the growth rates are difficult to
customer experience. This process is accomplished wirelessly
predict.
through the airway. No connection to any wired device is
This paper provides an overview of what is happening in the
required. Mobile Commercial (m-commerce) wireless
wireless domain to provide marketers, managers and market
technology is entirely different from e-commerce where
researchers with a realistic view of using and predicting the
processing is accomplished through the internet via a browser
wireless technology market. To the non-technologists wireless
and being connected (wired to a internet connection).
technology can be an alphabet soup. We discuss four areas of
The new wireless handheld computer at FedEx is called the
opportunity and offer 11 challenges to implementing mobile
FedEx Power Pad. This year (2003) FedEx will start replacing
solutions to marketing problems.
the handheld devices that the couriers currently use (Winn,
2002). Another benefit to the couriers is that they will have
access to real-time information such as inclement-weather Value analysis: “four areas of opportunity”
advisories, customer-clearance information and shipping rates
Wireless/mobile computing is only as valuable as the business
to assist customers in planning and scheduling shipments. All
problem it solves and how it contributes to the bottom line.
accomplished wirelessly by the mobile couriers. This wireless
Only those specific business processes that add value to the
application is an example of m-commerce.
organization should be considered as candidates for a wireless/
These wireless technological innovations have helped
mobile solution.
FedEx to grow into a $20 billion global business provider of
Currently, there are four areas of mobile client/enterprise
transportation, m-commerce and supply chain management
functionality:
service (Winn, 2002). In fact, FedEx was using wireless
(1) customer relationship management (CRM);
technology to leap ahead of their competition long before
(2) sales force automation (SFA);
wireless technology became in “vogue”.
(3) field service automation (FSA); and
Different wireless market segments are emerging at
(4) mobile messaging service (MMS).
different growth rates across countries with different
emphasis on different mobile technologies. For example, As mobile communications markets evolve, the nature of
Europe leads the marketing of mobile technologies. The doing business from an e-commerce environment (wired
penetration throughout Europe of mobile technology, environment) will transform to a m-commerce environment
especially phones, has proliferated from eight year olds on (wireless environment). For business-to-business (B2B) and
the playgrounds of Helsinki to taxi drivers in Athens Greece. retail mobile computing presents mobile commerce new
Almost everyone has some form of a wireless/mobile device opportunities for success in existing markets and in reaching
(Zadrozny, 2001). new markets. The owners of mobile devices (PDAs, smart
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
Stan G. Aungst and David T. Wilson Volume 20 · Number 2 · 2005 · 59 –69
phones etc.) are a large group of potential customers, who This FSA contributes to both customer satisfaction and the
cannot be ignored as a potential market (1.3 billion in bottom line. The machine-to-machine (M2M)
2005). M-commerce is the successor of today’s PC-based, communications potential market is enormous, perhaps
wired, e-commerce technology (Hansmann et al., 2001). larger than for regular mobile phones (Gustafson, 2001).
The mobile customer is un-tethered (no wires attached) and The ability to read an electric meter from a distance, to send
will order and check the status of the order wirelessly, signals to an alarm response center when an airbag deploys
anywhere, anyplace, anytime. This is CRM. The new and to know when a ball bearing starts to deteriorate are some
generations of consumers are constantly using wireless of the applications of wireless M2M technology. This
technology especially their cell phones. Every college technology is currently available.
student today (2003) carries and uses a cellular phone. It How M2M is defined is very ambiguous at present
is a small technological progression from cellular phone to (Gustafson, 2001), (Hansmann et al., 2001). The
smart phones connected to enterprise databases for CRM, architecture involves communicating with other machines
SFA or FSA. wirelessly from a monitoring device (sensor) on a product,
The “road warriors” of today’s sales force are inputting where a preset value is constantly compared to a pre-
customer’s orders wirelessly into the companies’ enterprise determined performance level. This preset performance
databases via a PDA or smart phone (cellular phone/PDA). number is monitored wirelessly by a central server. The
This is SFA. A considerable amount of time was invested by computer system and its operator can then respond to the
companies to develop applications that provide real-time intelligent communication system (M2M). This could mean
information to their employees. For the mobile workforce it is that power is turned on in a summer cottage before you
increasingly important to immediately access information arrive, that a gate is opened, or a vehicle can automatically
from a variety of corporate data repositories. These mobile notify an alarm response system that an airbag has been
workers need billing, contract, technical, and demographical deployed. Japan the second largest economy in the world is
data stored in enterprise databases and legacy systems. pushing the M2M scenario even further for FSA. The
In order to generate customer invoices, bills, and reports, market forecast from NTT DoCoMo (Japan’s major service
financial personnel need current information from their provider) is for 360 million mobile phone subscribers in the
mobile workers. Delayed data entry into corporate databases 2010s, despite a population of 127 million (Gustafson,
impedes an organization’s ability to access current 2001). The large number is derived from the fact two-thirds
information about customers, inventory status, work orders, of the subscribers in the 2010s, being M2M connections:
work schedules billing history and other important data. One refrigerators, vehicles, pumps, washing machines, dryers,
part of a real-time mobile solution is the mobile device itself. etc. (Gustafson, 2001).
The other part is the application, which is especially designed M2M consists of the integration of different digital
for meeting the needs of mobile professionals. The application technologies. It is meters and sensors that transmit to
should be able to gather information, execute business logic computers via radio frequencies. The computers send data to
and to access and synchronize with corporate data. If all of a server via a mobile connection or fixed local area network. It
theses are accomplished, the results of using a wireless mobile can also be a bi-directional form of communication for
device are shorter sales cycles and order turn around time. example, at a distant location an operator can turn a pump on
These benefits in turn impact inventory management and or off.
reduce administrative overhead leading to better service to M2M is presently based on mobile phone technology.
customers, higher customer satisfaction, lower costs and Vodaphone has already declared M2M to be a separate
increase profits. business area named Europolitian (Gustafson, 2001).
Wireless PDAs and smart phones are bringing the insurance Vodaphone and NTT DoCoMo of Japan are stating that
industry up to speed with the special needs of today’s M2M is where the greatest growth in wireless/mobile
customer (Stresling, 2003). The main reason insurance agents communication will be achieved (Gustafson, 2001).
like their PDAs is the “wow factor” response it elicits from its What will drive this new M2M market? On the technology
clients in the field. Now, field agents can answer most of their side: there has been breakthrough with telecommunication
customers’ questions in the field. Theses questions may be with GSM technology (see the Appendix for a glossary of
about policy coverage, in addition to looking up client phone terms used in this article). We will experience a continuation
numbers and claim data. Using Pocket TAM agency software of more rapid wireless/mobile communications in the GPRS
from Applied Systems, makers of The Agency Manager mobile networks and 3G technology (Gustafson, 2001) (see
(TAM) mobile desk-top solution adds real customer value to Table I).
the claims agent service to the customer. Insurance agents can The estimated wireless “gap” between the USA with its
see all drivers covered on a client’s car insurance policy, segmented inoperability and the union of GSM-based Europe
vehicle identification numbers for every car covered and basic operators was about two years behind in terms of delivering
information about the policy coverage and claims, including 3G next generation applications and user experiences.
appointments and contact information (Stresling, 2003). All Presently, in the USA, the 3G technology “gap” is
this is accomplished by connecting wirelessly to their narrowing with respect to Europe with delivering 3G GSM
enterprise databases. This is one example of FSA. to its customers (Dibble, 2002). Certainly 2.5G (GSM) has
In the service domain, products in the field can solve arrived in the USA.
customer problems on site by using sensors. You may never As we (the USA) progress on the technology curve,
have to call the refrigerator or air conditioning service man, as business organization will be able to expand by selling
he will show up at your doorstep ready to repair the faulty additional services to new and existing customers.
product before it breaks down. The product monitors its own Manufacturing companies that are known for their
performance and calls for service as performance degrades. dependable products and brands (Maytag, Meyers Pumps,
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
Stan G. Aungst and David T. Wilson Volume 20 · Number 2 · 2005 · 59 –69
Stihl, Honda, etc.) will be able to supplement their physical Reality check or where the “rubber meets the
product line with new services yielding additional revenue. road”
The relationship with the customer can be extended as new
services are developed. Previously, the relationship would The capability of supporting enterprise solutions wirelessly is
end with the procurement of the product, that may have the most serious problem not the technology. The challenge
been a service relationship (vehicle service, spare parts, facing the technology is creating value for the organization.
extended warranty, etc.) but with M2M the company can CRM and FSA are the two most popular applications of
sell services during the entire life cycle of the product, mobile/wireless computing (Andrew, 2001). CRM provides
establishing a life-long relationship with the customer information to customers on the road that gives travelers the
(Gustafson, 2001). ability to receive driving directions, down loaded maps, check
Traditional service companies can expand and operate the status of their recent purchases and delivery times, check
internationally and create growth in a dynamic service their airline schedules, or change their itinerary using mobile
market. Service and maintenance companies that are not wireless devices. Receiving timely information about weather
automated cannot afford to increase their geographical areas events, traffic patterns and avoiding delays and bottlenecks
without increasing their work force. As opportunities emerge eliminates frustrations and costly unexpected delays
in automation and computerized monitoring, traditional (Hansmann et al., 2001). CRM provides these services to
services companies will be technologically transformed to the customer at the push of a button. Until now, mobile sales
meet the increased business market without an increase in and service people relied on portable computers in order to
work force (Gustafson, 2001). access and process data on the road. The availability of small
Using a MMS wirelessly and devices such as always-on-e-mail, handheld devices with relatively simple interfaces and the
executives can be contacted anywhere, anytime to give their same connectivity provides new alternatives to communicate
input to those decisions that will immediately impact the untethered, instantly and effectively with the home office,
organization. Today, many executives carry blackberry phone/ suppliers and customers simultaneously (multitasking). Not
MMS devices that are always on and connected for the purpose only are these devices much easier to use, but also they are
of timely decisions while they are away from their desk. These much less expensive. The cost effectiveness of these mobile
mobile devices save time and money for busy business devices facilitates the distribution of more devices to its sales
executives. force and field service operations. PDAs and smart phones
The CEOs have been purchasing the always on, staying enable the mobile professional to use the phone book and
connected, wireless blackberry technology which now have calendar while working out of the office and to stay in contact.
become status symbols for all executives. No executive, or PDAs are also used to access mission-critical data from
aspiring executive would leave his/her office without one. This enterprise databases such as service contracts, technical
market niche is here to stay for the foreseeable future. descriptions, computer-aided design (CAD) drawings,
Wireless mobility is only as valuable as the problem it schematics, and graphics anywhere at anytime (Hansmann
solves. Correctly identifying the business processes is the first et al., 2001).
step in selecting a target for implementation. To techies, Once the marketing executive determines that a business
technology is an exciting area because the only constant is process can be profitably converted to wireless/mobile
change, which may not be the best reason to adopt a new computing, adding value to the organization, the next step
mobile technology. The attitude of change for changes sake is is to determine what factors will effect successful deployment
not in the best interest of marketers who want stability and of the technology. Wireless/mobile computing brings to
low operational costs. The 11 factors that we provide will aid mobile commerce many opportunities but also many
non-technical marketers in working with their system technological challenges. M-commerce is the successor of
developers. These systems developers may be the in-house today’s PC-based e-commerce (Hansmann et al., 2001).
information technology departments or out-side consultants. The 11 challenges to implementing a mobile solution
M-commerce will change as these technologies are adopted. successfully are presented below:
The paper provides scholars with background material for (1) What is the status of current telecommunications
studies that look at changing roles of sales and service people infrastructure in your geographical coverage area?
and customer relationships. (2) What hand-held form-factor will you select?
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
Stan G. Aungst and David T. Wilson Volume 20 · Number 2 · 2005 · 59 –69
(3) Is there an upgradable technological path? Keep in mind that although a particular carrier (e.g.
(4) What type of mobile application are you implementing AT&T) may have announced plans to upgrade (2.5G to 3G)
(e.g. CRM, SFA, FSA, MMS etc.)? technology by a certain date, in a particular geographical area,
(5) How will enterprise integration be achieved? its plan may not be realized due to regulation of frequencies
(6) What are the administration support and maintenance by the Federal Communications Commision (FCC). This has
issues? certainly been the case for North America (Tessler, 2002).
(7) What level of security and will end-to-end encryption Therefore it becomes advantageous to lay out a few
be involved? alternative upgrade paths for your geographical area, in the
(8) How will scalability be achieved? analysis stage that make up an overall migration strategy from
(9) Can you use a computer-aided software engineering the existing mobile to air interface solutions to the future
(CASE) tool for rapid prototyping and testing which solutions. Upgrading of technology path is covered in depth in
will decrease development cost? number 3 below. The message for this section is to define
(10) What is the total cost of ownership (TCO)? clearly the coverage area (including future upgrades) for your
(11) How will interoperability be achieved? Interoperability wireless application.
is the ability for your application to work across current
devices and networks as well as future devices’, 2. Form factor or mobile device platform
operating systems and protocols. Mobile platforms include smart phones (hybrids phones/
PDA, PDAs, phones, cameras, MMS, etc.), two-way pagers,
These 11 factors are the core elements that will primarily
pocket PCs, note book computers, tablet PCs with many of
determine success or failure of a wireless/mobile business
the devices in super-mini format are currently available. Each
solution. Wireless/mobile analysts should consider hardware,
mobile device offers a unique display and input method. Palm
custom or off-the-shelf applications software, CASE tools and
OS PDAs use a stylus and touch screen for input and
which operating systems (OSs) to use to develop the
navigation. A smart phone (phone/PDA) uses numeric
application(s). We will now review the 11 critical
keyboard for input and cursors to navigate. Non-palm
considerations that influence wireless solution feasibility and
devices like the IPAQ’s Pocket PC 2000 with Microsoft
cost effectiveness. Critical examination of these core criteria
Windows CE operating system are similar to the Palm for
combined with appropriate business acumen, should lead to a input and navigation. RIM and Motorola use mini-
wireless/mobility solution that has positive impact across the alphanumeric keyboards. The Sharp Zarus with embedded
enterprise and makes a significant contribution to the linux (OS) with Secure Shell Authentication (SSH) has a
“bottom-line”. pullout keyboard and offers considerable application
development flexibility. The decision on the form factor is
Eleven issues to be discussed with your an important business decision because it “locks” the
m-commerce developer developer into applications, development tools and
interoperability. Focus on the requirements of the business
Once it is determined that a wireless/mobile business solution application that will be deployed on the mobile device and the
is appropriate for the organization through traditional controls and data entry functions required for the interface.
software engineering methodologies there are 11 issues that What is important is the type of business application that will
need to be discussed with the m-commerce developer. In be accessed on the mobile device and the data entry functions
other words, a business case must be made for adopting some required for the interface. Forget the “hype” and the “bells
facet of wireless technology. Each of these 11 points addresses and whistles” (camera, movies, etc.).
an issue that impacts the success or failure of the wireless The initial cost of the device including application software,
application(s). We will now discuss each of the key issues. the cost per unit of the mobile device multiplied by the
number of units that will be deployed in the field is your total
1. Coverage cost of the system. Forecasting the cost of upgrades (hardware
The first step is to define the geographical area that will be and software) in the planned budget helps you select the
covered by the mobile/wireless application. Next, define the handheld device with the functionalities and programming
high level application(s) such as FSA, SFA, CRM, mobile environment that solves your business problem.
messaging, etc. that will be implemented including the future
requirements. The application(s), present and future 3. Upgrade technology infrastructure path
requirements assist the developer in identifying the required Wireless service carriers such as AT&T Wireless, Nextel,
bandwidth. The cost of the service is defined by the NTT DoCoMo and Sprint all have clearly-defined plans of
bandwidth requirements, the service area, the wireless data upgrading from 2G to 2.5G to 3G technologies to form the
rate and the type of service (analog, digital or analog/digital, wireless infrastructure for m-commerce (Lee, 2001; Tessler,
etc.). Wide bandwidth, fast data rates, increase the cost of the 2002) (see Table I). Understand the upgrade path and
service, as a new infrastructure is needed to accommodate timetable and how it fits with your upgrade business
these requirements. Once the coverage area is established, the application(s) should be part of the mobile developers base
choices of an appropriate service, 2G (digital), 2.5G (digital) line project plan (BPP). Currently, AT&T is the largest data-
or 3G (digital) technology will narrow by identifying the packet network in North America using cellular digital packet
required packet data rate, the service provider and associated data (CDPD) 2G technology (see Table I). It has announced
options of the wireless application. Wireless technology is plans to deploy a network infrastructure based on global
subject to change and therefore a plan should include systems for mobile communications/global packet radio
upgrades toward the newer 2.5G and 3G that may come service (GSM/GPRS) 2.5G technology (Lee, 2001). This
available in the coverage area. differs from Sprint, who is planning on using cellular digital
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
Stan G. Aungst and David T. Wilson Volume 20 · Number 2 · 2005 · 59 –69
multiple access (CDMA 2000 1X) 2.5G technology (Table I), determine the appropriate mobile device (e.g. different
and NTT DoCoMo, are committed to deploying 3G (Table I) capability and functionality). Here are a few different types
wireless network technology in Japan based on universal of mobile applications:
mobile telecommunications service (UMTS) air interface .
MMS (short messages sent to customer with always on
with FOMA services (Lee, 2001; Tessler, 2002; Kanealy, technology);
2002a, b) (see Table I). The technical jargon of the previous .
mobile/wireless databases applications;
paragraph is the justification for writing this paper. .
interactive voice-based applications;
It is extremely important to understand the upgrade path of .
wireless web applications; and
a wireless service provider (infrastructure provider) and .
traditional client/server applications (thin client is where
meshing it with your business application upgrades path programs reside primarily on the server, e.g. database).
because of the cost involved with implementing the next
generation of wireless technology can be significant. Because The type of mobile application that is used to implement
of the cost involved in purchasing the frequencies, (FCC- wireless access, whether it is voice-based, messaged-based,
controlled) extended messages capabilities, high-speed packet wireless-web, thin client/server, or small “thumb print”
data rates, location-based services (LBS), streaming video, database management system (DBMS) (e.g. IBM’s DB2e
movies, Voice-over-IP (VoIP) etc. technology using wireless for small devices), will define the enterprise application
carriers can be costly. It is a high-risk billion-dollar industry. It architecture required to implement the mobile solution and
is also a very exciting industry. Bottom line – pick your their associated costs of development. In short, the business
wireless provider judiciously. application determines the hardware and software
Table I displays the common upgrade paths for major architecture and their costs.
network technological infrastructures. Realistically, these At this time, there are no standardized common APIs
upgrade plans may experience delays in implementation geared toward wireless connectivity that have been developed
because of the legal implications (FCC licensing of the and adopted across major platforms such as, Palm, OS, Ipaq’s
frequency spectrum), industry downturn, or financial Widows CE and Sharp’s embedded linux. As a result,
constraints of the carrier (Vacca, 2001). If one ask carriers developers find themselves having to build specific
whether or not they plan to employ rural or urban first, and applications for different form factors and OSs. This means
how does that coincide with the company’s strategic plan of the software development environments tend to be
their proposed implementation of its application. Urban proprietary to a specific hardware platform and operating
installation of wireless equipment is easier to install because system. This affects development time, launch time and TCO
there are buildings for installing antennas, making installation (explained in issue number ten).
less expensive to implement. If there is “spotty coverage”
(degrading or loss of signal) another antenna can be installed
5. Enterprise mobile integration
to an adjacent building to remedy the problem. Usually,
How will the wireless/mobile solution be integrated with your
service providers provide service and upgrades to
current IT architecture? You should use your present wired or
metropolitan areas before rural areas. It is less expensive to
wireless network environment with your new wireless/mobile
install equipment in the urban areas where a larger
environment. By using as much of your present networks you
concentration of potential customers live, which lowers the
will leverage your present infrastructure to maximize its value.
overall cost for providers and customers.
Using your present network to support the new mobile/
Having shared goals with the carrier implementing
wireless application will decrease the overall cost of
upgrades is important to the successful launch of the
wireless application. Knowing the service providers’ current implementation and also give mobile users access to critical
technological status; as well as their plans for upgrading is also enterprise databases and enterprise resource planning (ERP)
important. The capabilities, speed and functionalities of the systems.
infrastructure will determine your business application Based on our experience we believe that IBM’s DB2e
success. Remember, mobile users are less patient than web (mobile database solution) is doing a good job of integrating
users (www, world wide wait users). Again, select your into existing enterprise environments (networks, protocols
infrastructure provider wisely. Always have a “back-up plan” etc.) and databases utilizing handheld devices. Db2e is a
and a “back-up service” provider. Many of the present database on a small form factor that interfaces smoothly with
carriers today may not be in business tomorrow (for example, an enterprise databases anywhere in the world.
WorldComm). The level of integration into the enterprise architecture will
The upgrades should also have the capacity to function be determined by the corporate information systems
multi-modally across both data and voice. The more (databases, ERP systems etc.) and the resources that will be
integrated and open-ended the application(s) is, the better linked to a wireless front-end services such as e-mail,
one single software platform will be able to satisfy your overall calendars, expense reporting, directory services, databases
business needs now and in the future. Know the upgrade path and application servers.
of your service provider and have a back-up plan. The type of enterprise information resources that are
needed by the mobile sales and service personnel (MMS,
4. Mobile application wireless web, etc.) determines the functions of the mobile
Each application will have a different software architecture applications (SFA, FSA, CRM, mobile database, etc.) that
associated with its own CASE tool (for code generation), will be accessed by the mobile user via his/her handheld
programming language(s) and application interface (API, device (form factor, issue two) and the associated wireless
front-end user interface). The marketer and developer should infrastructure (current and upgrade path, issue three). These
be aware that the application and implementation strategy will are all key points to consider when attempting to formulate a
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
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wireless business solution that will operate within an existing integration issues (enterprise integration, issue five). If the
information architecture. organization infrastructure is not current, what will be the
The PDAs and smart phones are currently the gateways to cost to upgrade the system to accommodate the wireless
the company’s databases and ERP systems and should be solution?
integrated into the existing hardware and software What is the scalability of the software and hardware on the
architecture. mobile devices is an important issue. If data are the only
information in your database, DB2e on an IPAQ PC can store
6. Administration and maintenance 75,000 records. This is a considerable amount of information
It is important to know what processes are presently in your on a handheld device even in a text only description of
organization for the administration of new deployments, user information. Multimedia information would not have 75,000
profiles, mobile device tracking, performance monitoring, records because it requires more storage. Although presently
back-up and recovery and application upgrades and there are available a 2 Gig memory expansion card and a
maintenance. The responsibilities of administering and miniature 2 Gig hard disk to accommodate additional storage
maintaining a wireless/mobile solution are the same as requirements. Again, selecting the appropriate handheld
administering the wired system. device for your mobile application business solution is
important for scalability.
7. Security and end-to-end encryption solution Basically, will your information architecture perform
Wireless security is crucial in three areas: satisfactory when new process come online including the
(1) at the transmission stage; possible addition of graphics and pictures.
(2) on the mobile device; and
(3) at the wireless gateway which is the entrance to the
organization’s intranet. 9. Rapid prototyping and developmental cost
Working with developers who have access to a CASE tool
Information must be protected. Protecting everything is very (code generator) will compress the systems development life
expensive. Business organizations must assess what are areas cycle, decrease development time and decrease cost. Custom
of possible information compromises that must be protected. programming applications are more flexible, but usually
Then determine whether the cost of the technology and increase development time, implementation and cost. Again,
policies needed to overcome these vulnerabilities are worth it is critical that you pick your mobile platform judiciously, as
the investment. it constrains the development environment.
What type of information are you transmitting? What is
the cost of being compromised? What would be the business 10. TCO
impact if the information were compromised? Are there legal What is the overall cost of the wireless mobility solution? The
risks, or transaction losses? Once you determined the value cost should include more than just the hardware and software
of the information and your level of vulnerability, then cost. The cost of the network usage, development costs,
decide the security steps to be implemented and their costs? support and maintenance costs are all part of the overall
Encryption at the gateway computer (entrance to the system costs. Business models already exist to provide an
companies intranet) can cost $2,000 to 50,000 (King et al., estimated TCO of a mobile/wireless solution. In reality, long-
2001). Companies that do not need that high level of term cost exists associated with specific architectures. For
security are turning to more cost effective solutions such as
example, browser-based solutions may have lower
virtual private networks (VPNs). “End-to-end” security
development costs, but may have higher long-term
means that data are encrypted at the origin of the
connection costs because all the data resides on the server
transmission and remains encrypted all the way through to
and browser-based solutions need to be connected (connect-
the receiver. In reality this does not always occur because
time, longer air time) to access each application function and
with “end-to-end” encryption, data are encrypted on the
query. Architecture where the data reside on the handheld
handheld device. It stays encrypted all the way through
device in a disconnect mode is more cost effective in the long
transmission over both wired and wireless networks and is
run even if the cost of development is higher than browser-
decrypted only when it reaches the recipient. This means the
based application(s). In the long run being connected only
developer must choose a device or encryption method
when needed may save an organization millions of dollars
(asymmetric or symmetric or hybrid of both) that will work
(Kanealy, 2002a, b).
on wired and wireless networks.
The developer can also turn to VPN client software for
mobile devices. Certicom’s MovianVPN and Ecutel’s 11. Interoperability and interconnections
Viatores, for example extend the use of IPSec, an internet Interoperability, the ability of hardware and software to
protocol security standard for tunneling technology to palm communicate across all platforms is crucial to market growth
and pocket PC devices (King et al., 2001; Davis, 2001). because it offers lower-cost products that are easier to install
Security, encryption and intrusion detection are becoming and maintain, and are faster to market, with more options for
increasingly more important in this era of cyber-terrorism. customers and suppliers (Lee, 2001).
Bottom line, determine the value of the organization’s Software developers seek to create integrated applications
information and then determine the cost to protect it. by combining features, services, and technologies as needed
regardless of suppliers, vendors, technology or industry
8. Scalability source. Market forces have created a need for an agreement
What is the present organization infrastructure and how well that allows users to select any hardware, platform and
prepared is the organization to administer and maintain a application and put them together to build new services and
mobile business solution. Scalability is also linked to agreements that allow users to enjoy straightforward
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
Stan G. Aungst and David T. Wilson Volume 20 · Number 2 · 2005 · 59 –69
implementation and avoid duplication of hardware, services ended up spending $100 billion just for the right to provide
and administration. the service; the actual cost of building the network and
Gartner analyst, Martin Reynolds, says the forthcoming rolling out the technology would likely double that figure
Windows CE-powered smart phones have both pros and cons (Briody, 2003). In the USA, certain frequencies may be
when compared to the palm competitors. They have better reserved for national security only.
integration with Microsoft environments, better development Wireless device connectivity is vast in its applications,
tools (CASE), and better APIs for development, better modes, and standards and continues to evolve. Several trends
security, more sophisticated applications and a good key are shaping the future of wireless technologies for mobile
board interface (Zellen, 2002). However, they consume more business benefits.
power, cost more, weigh more and are more complex devices. Machine-to-machine wireless communications allows
For the enterprise environment that is more often a Windows businesses remotely track, monitor, maintain, and control
environment, Windows CE OS appears compelling. equipment. Considering the high cost of dispatching
We have candidly discussed 11 essential points for specialized labor to travel to a piece of equipment or, even
successful, cost-effective, wireless/mobile solution to your worst the detrimental effect of downtime. M2M wireless
business problem. Discussing these questions with your connectivity is needed by companies with a large number of
developer will help you to work effectively with the machines or those that manufacture or service devices and
technology. Hopefully resulting in increasing market share, machinery over a wide geographical area.
staying internationally competitive and maintaining Despite all the recent hype about wireless technology, no
profitability. We have attempted to present the article from a one is going to implement wireless communications
business process and marketing perspective using technology technologies until there is a justified requirement. A “killer
as a tool to solve business problems, facilitate business application” is still missing in this market.
decision making, increasing customer satisfaction and Committing to an aggressive wireless strategy is not for the
creating value producing services for the customer. faint of heart. A comprehensive, complex plan takes
commitment to be successful. Evaluate whether you have
Managerial implications the resources to accomplish such a task, and then follow
through once committed. You must invest in qualified,
The purpose of the paper is to give managers, marketers and knowledgeable employees or consultants to accomplish
scholars a realistic picture of the wireless/mobile computing successful implementation. Complex technology is difficult
environment. The lessons learned are from experience of both
to implement and to integrate into your current business
authors from different perspectives. This paper goes beyond
information system. This paper adds to the knowledge
concepts and theory of traditional papers to experiences
required by traditional software engineering methodologies.
encountered by the authors in actual implementations. We
If you target a global market, you should have an
take the stance that just because you can implement new
incremental wireless/mobile strategy for each country rather
technology does not mean you should. There are always
then “one size fits” all solution. Plan for a varied network
newer, faster, wireless options coming to the market.
topology overseas for your wireless solution.
Companies make buying decisions of new technology on
Although wireless technology is a powerful tool, there are
value not price. The fact remains that the price for wireless
limitations to its applications. You should manage
has been too expensive an option for many organizations.
expectations of the power and mobility that these
Wireless requires users either to build their own infrastructure
applications provide. Wireless communications will play a
or to pay subscription fees to network owners (e.g. cellular
large part in our lives. The ability to track and monitor remote
carriers). Many of the network operators have priced
themselves out of the wireless data market. Recently, assets, wirelessly, is a benefit. Research shows that wireless is a
cellular companies such as T-mobile, Sprint and AT&T priority for industry and business users. The benefits are
Wireless have begun to offer competitive data rate plans. clear, but technological hurdles exist. As the wireless industry
However, if implementing them, does not add to the bottom endeavors to resolve some of the technical, business and
line, and most importantly, add value for your customers, application challenges in this marketing space, expect to see
then you need to evaluate whether it is a wise choice. important advances in the way businesses are conducted. In
The wireless provider that offers new technology should be this telecommunication business there are always surprises.
experienced enough to follow through on their promises. If That is why it is exciting.
you decide to go wireless, too soon with technology not For scholars, we have presented the now and future
tested thoroughly, you may learn the hard way that the environments that will influence how research is design in the
providers have oversold or not have the resources needed to sales and marketing domains.
implement what they promised. For example, Metricom and
Ricochet operated in an unlicensed frequency space but the
cost of installing access points in dense city streets and other
References
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Therefore, despite the cost-effective service provided by Business & Technology, November, pp. 31-41.
them, Metricom went bankrupt and Ricochet was taken over Briody, D. (2003), “Good-bye 3G – hello wi-fi frappuccino”,
by another company (Hassan and Jha, 2003). Even if the Wired, Get Wireless, Special Wireless Report, unwired
provider has the resources they are constrained by the FCC supplement, p. 45.
in the licensed frequencies in what they are allowed to Burkhardt, J., Henn, H. and Hepper, S. (2002), Pervasive
implement. For example, European carriers got caught up in Computing: Technology and Architecture of the Mobile Internet
a bidding war for 3G spectrum licenses. Although, they Applications, Pearson, Harlow.
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A primer for navigating the shoals of applying wireless technology Journal of Business & Industrial Marketing
Stan G. Aungst and David T. Wilson Volume 20 · Number 2 · 2005 · 59 –69
Davis, C. (2001), IPSec Securing VPNs, McGraw-Hill, New 144 Kbs while traveling in a vehicle. This type of speed
York, NY. allows for a host of multimedia applications within a 3G
Dibble, T. (2002), “US closes gap on Europe”, Wireless network.
Business Technology, August, p. 29. 4G (fourth generation) technology. 4G is the next generation of
Dodd, J. (2002), “The world of wireless communications”, wireless networks to replace 3G networks at some time in
Laptop, Mobile Solutions for Business and Life, July, pp. 60-6. the future. Purely theoretical at present, 4G is an initiative
Gustafson, P. (2001), “Machine to machine by research and development (R&D) laboratories to move
communications”, Wireless, Business & Technology, beyond the limitations and problems of 3G, which is
October, pp. 38-41. proving difficult to employ and in meeting its promised
Hansmann, U., Lothar, M., Nicklous, M. and Stober, T. performance and throughput. 4G will probably involve
(2001), Pervasive Computing Handbook, Springer-Verlag, satellites, GPS positioning and tight integration with
New York, NY. wireless LANs.
Hassan, J. and Jha, S. (2003), “Cell hopping: a lightweight Analog. Also called advanced mobile phone service (AMPS),
architecture for wireless communications”, IEEE Wireless this is the original cellular phone standard. It is much less
Communications, October, pp. 16-21. efficient than digital standards such as CDMA and GSM
Kanealy, R. (2002a), “Some consumers give up landlines for but it is the only available signal in many rural areas.
wirelesss long distance plans”, Centre Daily Times, E-business, Many CDMA phones also support analog transmission,
Business Section, June 2. but few GSM phones do.
Kanealy, R. (2002b), “Wireless fears drop off”, Centre Daily Asymmetric cryptography or public key encryption (PKI). This
Times, E-business, Business Section, June 2. uses a different key to encrypt and decrypt data.
King, C., Dalton, C. and Osmanoglu, E. (2001), Security Bandwidth. The size of the network “pipe” or channel for
Architecture, Design, Deployment and Operations, McGraw- communications in wired networks. In wireless networks,
Hill, New York, NY. it is determined in part by the range of frequencies that
Lee, W. (2001), Lee’s Essentials of Wireless Communications, can carry a signal, as well as efficiency of the wireless
McGraw-Hill, New York, NY. network for supporting multiple “conversations” on any
Pelton, J. (1995), Wireless and Satellite Telecommunications, given frequency. Measured in Kbps or Mbps.
Prentice-Hall, Englewood Cliffs, NJ. CDMA2000 1x. The 3G version of CDMA which boosts data
Steinberg, D. (2003), “The future’s in the phone”, Wireless, speed to a real-world 45 to 70 Kbs similar to a modern
Business & Technology, Vol. 3 No. 7, p. 50. desktop computer modem (www.cdg.org).
Stresling, D. (2003), “Vertical markets, your insurance is in Cellular Digital Packet Data (CDPD). This is a wireless
their hands”, Laptop, Mobile Solutions for Business and Life, network technology that operates as an overlay to an
May, pp. 114-15. underlying wireless analog network. CDPD supports data
Tessler, J. (2002), “Cellular reaches 3G ‘wireless you can see’”, transmissions at rates up to 19.2 Kbs.
Centre Daily Times, E-business, Business Section, June 2. Code division multiple access (CDMA). This is the digital
UMTS Forum (2002), “Shaping the mobile multimedia cellular standard with the most coverage in the USA.
future – an extended vision from the UMTS Forum”, CDMA data are limited to the speed of 14.4 Kbs modem.
available at: www.umts-forum.org/reports/report10.pdf Used by carriers such as Verizon and Sprint PCS. One of
Vacca, J. (2001), Wireless Broadband Networks Handbook, 3G, the protocols used in 2G and 3G wireless communication.
LMDS and Wireless Internet, McGraw-Hill, New York, NY. Its spread-spectrum technique allows numerous signals to
Whitfield, N. (2003), “The future of 3G, it wasn’t supposed occupy a single transmission channel and was developed
to be like this”, T3, August, pp. 47-50. in Britian during the Second World War to protect radio
Winn, S. (2002), “Tracking a wireless trailblazer”, Wireless, transmission (www.cdg.org).
Business & Technology, April, pp. 30-4. Global packet radio services (GPRS). This is a packet-switched
Zadrozny, P. (2001), “Light years ahead”, Wireless, Business & wireless network technology that operates as an overlay to
Technology, November, p. 42. an underlying GSM network. GPRS supports data
Zellen, B. (2002), “With smartphones, slow and steady wins transmissions at speeds up to 115 Kbs. Real world rate is
the race”, Pocket PC, Vol. 5 No. 4, September, p. 21. 45-70 Kbs, similar to a modern desktop computer modem
(www.mobilegprs.com).
Further reading Global system for mobile communications (GSM). This is a
wireless network standard used throughout Europe,
Forman, D. (2002), “The wave of the future: Ipv6”, Laptop, metropolitan areas of the USA, in Asia and parts of
Mobile Solutions for Business and Life, special issue: Wireless Africa, accounting for a total of approximately half of all
business tools, why they make sense now!, May, pp. 68-79. global wireless phone users. GSM supports data
transmission at rates of 9.6 Kbs to 14.4 Kbs. Used by
Appendix. Glossary of terms carriers including AT&T Wireless, Cingular and T-Mobile.
It is 2.5 G technology (www.gsmworl.com).
3G (third generation) technology. Usually used to describe the IPSec. This is an IPSec Security protocol that provides a
next wave of mobile communications. While analog viable solution for securing IP (Internet traffic) traffic.
technology represents the first wave of mobile IPSec uses strong cryptographic authentication and
communications technology and digital represents the encryption algorithms to protect the integrity and
second (2G), third-generation technology will provide confidentiality of IP traffic.
more bandwidth for mobile devices. Speeds of 384 Kbs Personal communication service (PCS). This is a Sprint term for
(kilobits per second) will be possible while on foot and its CDMA 1,900 MHz cellular network.
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Secure shell (SSH). This is a popular, powerful software-based example, billing, contract, technical and demographic
approach to network security. details, plus customer information, inventory status and
Short message service (SMS). Also called text messaging, this is work scheduling. Sales staff can often achieve shorter
a system for sending short instant messages like sales cycles and order turn-arounds when they have
communications via cell phone. ready access to such information. This, in turn, can
Symmetric-key cryptography. In this approach an algorithm improve customer service, reduce costs and improve
uses a key to convert information into what looks like profits.
random bits. Then the same algorithm uses the same key (3) Field service automation. Some products – such as
to recover the original data. refrigerators, pumps, washing machines and dryers –
Time division multiple accesses (TDMA). This is a digital can be fitted with sensors that transmit to computers via
wireless network standard that serves as a foundation for radio frequencies. The sensors can effectively monitor
GSM. It can also operate as an independent network the product’s performance and automatically call for
standard. TDMA offers maximum data throughput at service as the performance worsens. Or, using wireless
9.6 Kbs. TDMA divides a radio frequency into time slots transmission, an operator at a distant location can turn
and then allocates multiple calls. In this way, a single the product on or off. Machine-to-machine
frequency can support multiple, simultaneous data communications can, for example, read a meter from
channels. a distance or send signals to an alarm-response center
Universal mobile telecommunications system (UMTS). A 3G when a vehicle airbag deploys. As technology advances,
broadband packet-based wireless technology that will be businesses will be able to expand by selling additional
able to support data transfer rates as fast as 2Mbs (transfer services to new and existing customers. This will make
rate will depend on proximity to the wireless base station) it easier for firms to establish a life-long relationship
UMTS essentially marries GSM’s established network with the customer.
topology and infrastructure components with CDMA’s (4) Mobile messaging services. Using mobile messaging
high-capacity wideband air interface. It can offer a services wirelessly, and always-on e-mail, executives
consistent set of always on services to laptop and phone can be contacted at any place or time to give their input
users no matter where in the world they are located. The on key decisions affecting the organization.
frequency band range for UMTS is commonly from
1,885-2,025 MHz, although spectrum allocation has been
a problem in some countries including the USA. The key issues to consider
Worldwide deployment is expected to have started Aungst and Wilson suggest that only the specific processes
sometime in late 2002. Now delayed to 2003, 2004. that add value to the organization should be considered as
Eventually users will have access through terrestrial candidates for a wireless solution. Marketers, working with
wireless and satellite transmissions. their system developers, should consider the following:
Virtual private network (VPN). A VPN is a secure private
.
Coverage. What geographical area will the wireless
network over the internet. VPN creates a secure link for application cover, and which areas of business will it be
between peers (users) over the internet. applied to? These factors will have a significant impact on
the technical solution adopted and its cost. Wireless
technology is subject to constant change, so any plan
Executive summary and implications for should take account of the possible need for future
managers and executives upgrades.
This summary has been provided to allow managers and executives
. Input methods and displays. These vary according to the
a rapid appreciation of the content of the article. Those with a mobile device used. In order to make the right decision on
particular interest in the topic covered may then read the article in input methods and displays, companies need to
toto to take advantage of the more comprehensive description of the concentrate on the type of business application that will
research undertaken and its results to get the full benefit of the be accessed on the mobile device and the data-entry
material present. functions required for the interface.
.
Service upgrades. Providers such as AT&T Wireless and
Nextel all have clearly defined paths and timetables for
Where wireless technology can help upgrading their services. Companies should ensure that
The four main areas in which wireless technology can help to these paths and timetables mesh as closely as possible with
solve marketing problems are: their own business applications upgrades.
(1) Customer relationship management. Equipped with such .
Mobile application. The type of mobile application that is
mobile devices as personal digital assistants and smart used to implement wireless access – whether it is voice-
phones, today’s customers often expect to be able to based, message-based, wireless-web, thin client/server, or
order goods and services, and check the status of their a small “thumb print” database management system –
order, at any place and any time. Companies, if they are will define the enterprise application architecture required
to keep their customers loyal, must adapt to meet these to implement the mobile solution, and the associated
requirements, perhaps by enabling customers to development costs.
connect directly, using their mobile devices, to some .
Enterprise integration. How will the wireless solution be
of the firm’s own databases. integrated with the company’s current information
(2) Salesforce automation. Mobile technology can help technology architecture? Using the firm’s present
companies to provide real-time information to their network to support the new wireless application will
sales force. Such information could include, for decrease the overall cost of implementation and give
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