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October 4, 1999

IMHO:
Wireless Comes Of Age

Clarence Wesley is general manager of Xerox Mobile Solutions

In My Humble Opinion he PC was useful when it was simply a standalone, unconnected device. We could create and print documents, keep financial records, or play games on it--and this, presumably, enhanced our productivity and quality of life. The effect of the Internet, however, on the value provided by PCs has been enormous. The amount of information available to us, the ease of communicating with others, and the changes to the high-tech industry are all evidence of that.

The high-tech industry continues to see new players rise and old ones fade. Who would have predicted that companies such as Amazon.com, eBay, and Yahoo would become the vanguard of the new information industry? The overall value chain has changed to place more emphasis on brand and content delivery than on hardware or software. We are witnessing the emergence of business models that never before could have worked, and despite the security concerns of the Internet, IT managers recognize its value-add and the opportunities it brings.

As handheld devices such as cell phones, pagers, and personal digital assistants gain wireless capabilities, I wonder if these devices will have the same level of impact on the wireless market as the Internet had on PCs. The mobile industry value chain will almost certainly change. New players are already appearing--witness Symbian and Phone.com. Huge amounts of information and a quantum leap in value will be added to handheld devices, requiring even more innovative business models. These changes will create new problems for IT managers.

As wireless information becomes more pervasive, hardware prices are being driven down, and software bundles and downloads are beginning to dominate the market. Because of the small screen size and limited bandwidth of handhelds, the Net advertising model will be difficult to implement without modification. With the integration of smart cards, E-commerce will migrate to M- (mobile) commerce. The handheld device will be a mobile-commerce terminal for banking transactions, stock trading, ticketing, and shopping.

The impact of wireless information on the user will be as monumental as the impact of the Internet--but with new challenges and opportunities for technology vendors and IT managers. New standards such as the Wireless Application Protocol and Bluetooth will help make access to information easy and convenient. Because handhelds tend to be more personal than PCs, consumers may expect even more from these devices, such as voice recognition or infrared communication. Users will not only have access to a variety of devices, but will demand choices among the many options and capabilities.

The key to taking part in the wireless information revolution, and not being blindsided by it, is for IT managers to understand and prepare for its impact by addressing such issues as these: Which standards in communication protocols or devices will provide the most bang for the buck while still allowing the flexibility that users will demand? What relationships should be fostered with key players in the wireless-information value chain? How will support and security issues be dealt with?

However, the real work--and the biggest challenge--will be to identify new opportunities and create additional value via wireless-information capabilities. Just as Net-enabled PCs are used for order tracking or customer management (not just to check stock prices or sports scores), wireless information-enabled handhelds will provide increased productivity to business. By listening to and understanding user needs, IT managers are positioned to take advantage of the wireless revolution by offering those services their users want. Common examples of these service requirements include access to critical business information, Internet access, or integrated corporate directories and wireless meeting scheduling.

The wireless revolution is here. By working together, users and IT managers are positioned to benefit from its impact.

In My Humble Opinion is an occasional column expressing the opinions of InformationWeek readers. Submissions up to 750 words can be sent to imho@cmp.com. Only writers being considered for publication will be contacted.

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