Porous Walls

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Ever scoured the town looking for the best deal? Well, according to the Wall Street Journal, you aren't alone. In fact, a recent article discusses the impact being able to shop online while in a store using your smartphone is breaking down the lines between online and brick-and-mortar shopping.

According to the article, many people are starting to shop for items they see in a store online, right from their smartphone in the store. The idea being they can find the best deal at the time of purchase, the most vulnerable of which are big-ticket electronic items. There are websites and apps dedicated solely to this purpose, including TheFind, RedLaser, and Amazon's Price Scanner app.  Several factors contribute to this growing trend, including the prevalence of smartphones, the expanded use of QR codes on products and in marketing campaigns, and the success of online retailers like as Amazon.


Even so, I'm not entirely convinced that this is the 'wave of the future', or that brick-and-mortar stores will be entirely replaced by online stores. First, anything purchased online must be shipped, and that introduces both shipping fees and wait time. I'm sure there are people (being one myself) that are willing to pay a little more to not wait for something in the mail. Even if you don't find a deal for that perfect something online, but at a different store, is it worth your travel time?  Finally, and probably my biggest issue, is that the article obsesses over Black Friday deals. Black Friday brings out the price-shopper in all of us, and seems to be better than Christmas for die-hard bargain hunters.   In fairness, the article admits that this is still a small niche of customers, and I'd be interested to know if the same people would drive an extra 10 miles to save $0.10 on milk...


I think this is an interesting idea, blending reality with the internet in a real-time situation. The invention of price-comparison apps mentioned in the article shows an interesting new wave in bargain hunting, but I don't think the time of the brick-and-mortar store is at an end. I'd say that this is a niche trend for folks hell-bent on saving a few pennies, and won't take over the general population.

Mutant Crosswords!

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This post is all about Quick Response (QR) codes, those funny little mosaics you can see popping up everywhere. A recent article in the Economist highlighted the impact QR Codes are having on the consumer marketplace.


To give a little history, QR codes were invented by Toyota in Japan way back in 1994 as a replacement for standard bar codes. This is because of the amount of information they can store, whether it is alpha, numeric, binary, or virtually any other data type. Bar codes have served well to visually tag an item or product for a computer to read, but much like the storage difference between binary and digital, the amount of information that can be recorded in a QR code is superior to the standard bar code.  This is because QR codes are 2 dimensional.  QR codes can also be read even if damaged thanks to built-in data duplication and error correction.  If you haven't used them, I can say that this is a pretty handy feature.  Technology has a tendency to be, shall we say, fragile, but QR codes read easily into many different types of devices.


The complexity of the QR code also appeals to marketing professionals.  Coupled with the prevalence of smartphones with cameras, a simple app can read a code, then send the user to a website, or display information about the business. This is why these codes seem to be popping up everywhere - cereal boxes, shampoo bottles, even in the grocery store aisle.  Some of the basic ones will just take a customer to a website, but according to the article, this isn't enough.  The most successful marketing campaigns, include coupons (very popular in Japan), contain some sort of app, allow entry into contests, or even allow participation in a poll.  A bonus for companies is that it is easy to track their success by simply counting the number of QR code hits received.
 

They don't need to be used in business, either.  In fact, the Nintendo 3DS includes QR reading software, allowing companies to spur interest in their games by making additional content available through QR codes.  Companies can lengthen the time the game stays at the forefront of the gaming community by spacing out this new content, thereby increasing sales.  QR codes can also add a social aspect to games by letting players share their gaming experience by creating a code to share with others by posting them on the internet.


The QR code's success is intertwined with the proliferation of smartphones, and they have added a level of interaction with the real world that wasn't there only a few years ago.  The marketing buzz around QR codes shows no signs of slowing down, and in the next post we'll see how smartphones, sometimes using QR code technology, are forcing brick-and-mortar stores to compete online.

Marketing in E-Commerce

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During the 90's and into the 2000's, people consumed the Internet by way of the personal computer. Web browsers, mice, screen resolution, and full keyboards all helped to define marketing and sales done online by having a well-defined customer experience while sitting at a computer. But a new player to the scene is changing this formula: the smartphone. The popularity of the iPhone, which took off in 2007, has spearheaded the recent mobile boom, where Samsung and other competitors have entered the market with Android based phones.

With the recent smartphone sales explosion, which surpassed PC sales in 2011, people are spending less time scrolling and typing and more time flicking and pinching. Some marketing techniques used in traditional Internet advertising do not fit well in the mobile landscape. There isn't a lot of room on a 5" screen, so top banners and right gutter ads are hard to execute when designing a mobile website.

While the techniques maye need to be updated, the categories have not. There are still four classes of marketing, outlined below:

Information

This include basic informational descriptions about the product, such as news, weather, traffic, points of interest, and the like.

Entertainment

These programs provide value to customers in the form of amusement and emotional triggers. Popular mediums for this method include videos, music, games, and wallpapers.

Raffles

A traditional method of marketing involves giveaways and prizes that are advertised in the mobile space. Popular methods of implementing such raffles include "liking" pages through Facebook, "tweeting" via Twitter, or scanning QR Codes, an improved bar code commonly scanned with smartphone cameras.

Coupons

These programs offer monetary incentives to try a product, much like traditional coupons found in the Sunday newspaper.

While there may be no honor amongst thieves, there is honor amongst marketers. According to the Mobile Marketing Association, there are guidelines on how to market, and following these guidelines will maintain your company's honor by respecting the customer.  Some of guidelines for marketers in the code of conduct include giving customers choice and consent for involvement with marketing programs, and security, which should always be top priority when handling customer information.


As long as there are people selling goods and services, there will be a need to advertise to customers. Good marketers go where the people are, and people are increasingly using their smartphones to go online. The medium may be changing, but a good marketer will always rise to the challenge to show their goods in a creative and engaging way.

WACky App Development

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Today's post is dedicated to a case study on the differences in creating apps for the iOS and Android operating systems. Sorry kiddies - no link to the article this time. This is a pay-to-play study downloaded from the Harvard Business Library, so you'll just have to take my word for it. Don't worry - this post will summarize and analyze the points made in the article. Please note that the case is fictional and for instructional purposes only.


The case study tells the story of Sonnja Huot, the director of online services development team for Thorsen Bank, as she and her team embark on developing a mobile banking app. The big question facing Sonnja is "Do we develop this app for Android or iOS?".  Much like the Betamax vs VHS wars of the 1980's, we are seeing a similar format war between Apple's iOS and Google's Android mobile operating systems.


While other mobile developers like Windows, RiM, and Nokia all have mobile platforms, Sonnja's decision between iOS and Android is based on long-term potential for the app. Each has its own challenges and opportunities that need to be weighed carefully, and advantages and disadvantages of developing for each platform are outlined below.

The Apple Path

 

From a marketing and customer perspective, iOS is more attractive because the user base is younger and wealthier, and iPhone users intend to continue purchasing Apple products. In addition to that, a third of all mobile phone users wanted their next phone to be a iPhone, and the iTunes store leads other app markets which makes it an attractive place to sell third-party apps.


However, developing for iOS can be a double-edged sword, as Apple reviews the code for each app and either approves or denies the app for sale in the iTunes store. Apple also retains the right to remove apps already on their store at their discretion. There are several examples of Apple butting heads with other companies over their review process, like the dispute with Adobe over placing Flash on iOS. While the Adobe example is not an everyday occurrence, this remains a risk to placing an app on iTunes. It can also be difficult to set a launch time since Apple offers no 'pre-approval' process for apps, and a company cannot predict whether their app will 'cut the mustard'. Fortunately, Thorsen Bank is not without recourse, and there are several things they can do to help expedite the app approval process, including:

Submit simple, bug-free code

This sounds easy, but giving the apple development team less to review and reject will help get the app to market faster.

 

Play by the rules

It will also help to familiarize the team with Apple's licensing requirements. Keeping the app compliant with Apple's rules will give the reviewers less reason to reject the app.

 

Request Expedited Review

According to Apple, developers can request expedited reviews for approval, but Apple notes that there is no guarantee that the requests will be granted.

Based on the pros and cons, iOS is not the clear-cut winner. The 'cool' factor of having an iPhone app shouldn't be underestimated, both in terms of market perception as well as winning younger, wealthier clients. On the other hand, your app's existence is reliant on the whims of Apple, and Thorsen Bank will be left with little recourse if met with app store challenges.

The Android Path

 

On the other hand, Sonnja could develop the app for the Android operating system. Android exists on the opposite end of the app development spectrum from Apple in many ways. Android runs on no less than 60 different devices, some of which are not even phones. The Android marketplace has none of the rigors that the iTunes store has. In fact, unless your app is causing problems, it is likely that Google will never see the code in your app. This can make a definitive release date possible by putting Thorsen Bank back in the driver's seat.


But the same diversity that frees an Android developer from the hoops set up by Apple are also the biggest challenge in making an Android app. With so many different versions of the operating system, different devices with different screen sizes, proprietary changes made by companies and wireless service providers, just releasing an update could be an even bigger endeavor than the initial release. In fact, this fragmentation is one of the biggest hurdles facing Android in the not-so-distant future. Just maintaining the app across all supported devices and operating systems may become a full-time job of the department, rather than upgrading and improving the product.


Then there is the lack of app security review for the Android marketplace. Being in the banking industry, Thorsen is held to a higher standard of security for their software, and Android devices are a more likely target for security breaches. In fact, a recent study shows that nearly 1/4 of all Android apps are a security risk. A toxic combination of apps on one user's phone may be enough to bring about a media smear campaign that could ruin Throsen's reputation. Apple is the clear winner in this arena with their rigorous review process, but that doesn't mean that Apple is immune to security threats. However, any blame for a breach in security could be aimed at the gatekeepers rather than the victims.


Again, we don't have a clear-cut victor. Android offers a chance to put your app on a huge number of devices, is programmed in the near-universal Java code, and there are no hurdles to releasing the app on schedule. However, the number of devices and versions of operating systems can make maintaining an app, much less releasing updates, a staggering proposition.



Finally, there is the business question behind all of the tech-talk: will this app create profit for Thorsen? The article proposes that Sonnja has a game-changing idea for the app which can set Thorsen Bank apart from the competition, regardless of the platform for which it is released. But just the idea is not enough to securely place Thorsen at the top of the pyramid, as the competition won't give up and go home. They must continue to innovate to keep their app in ahead of the competition, or risk their hard fought position in the market. Other companies have fallen into this trap, most notably (and topically) RiM, which failed to address the iPhone threat in time. As reported by the Wall Street Journal, RiM was a victim of its own hubris:

"According to interviews with more than a dozen former RIM executives and industry executives who worked closely with the company, it was a blinding confidence in the basic BlackBerry product that was at the root of RIM's current troubles." 

To say that RiM was brought down only by ignoring outside threats most certainly oversimplifies the situation, but the point remains that first place is not only won - it must also be maintained.

E Marketplaces and their types

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Ever consider all the ways to do business in the Internet? If so, you're in luck, because this post is dedicated to e-marketplaces! We will review the components of an e-marketplace, and it isn't as easy as it looks on the surface.


Put simply, an e-marketplace is an area that brings customers and sellers together to conduct business. The idea of a marketplace is not a new one, only the introduction of the Internet. In order to make an e-marketplace, though, a few non-traditional elements are needed as there are not any fruit stalls or bustling city streets to be had. Once necessity that hasn't change, however, is goods and services. Without goods and services, there's nothing to conduct business over, is there?


But behind that, we need several new elements. The first of which is the electronic infrastructure by which to connect buyer and seller. On a large scale, this infrastructure is the Internet itself, but it also includes computers for the buyer and seller, as well as the people to maintain both. There is also the front end of the marketplace where the customers interact. Much is contained in the front end of a website, and many people are unaware of anything that goes on behind the scenes. But, of course, there is also a back end to the website, which handles the order fulfillment, payment processing, user accounts, catalog updates, and all the other administrative duties involved with running a website. Finally, there are intermediaries which glue the entire process together. They range from ISPs to UPS - the first one allows the Internet to be there for the transaction, and the second plays a major role in moving goods purchased online. There are many other types of intermediaries involved with the e-marketplace, too numerous to list.


Each of these elements are complex, and are indeed industries unto themselves. So the next time you buy something online, stop to appreciate the amount of effort it took to allow to sit in your jammies and buy that salad shooter!

Homemade App-lecause

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Ever dreamed of making your own app for your smartphone? Don't know anything about Objective C? No problem! Today, we'll discuss this article in The Economist about the prevalence of do-it-yourself mobile app software.


Many apps available are developed by large companies to enhance your shopping experience, like a Bank of America app which lets you work with your money. Some of the most popular games are developed by companies, like Zynga. But now Do-It-Yourself app kits have become the rage.


According to the article, there are several software options available for the novice user to develop an app. Included are:

App Inventor

A free app development kit created for Android by MIT

Conduit

A mobile app development kit which offers various levels of pricing (including free)

AppMakr

iOS App development kit

Each of these share one major similarity - there is no coding required! This makes it easy for the casual app enthusiast to get to work regardless of their app knowledge. It also means we are looking down the barrel of an app deluge. According to the article, there are around half a million apps available for iOS and Android apiece. This makes me wonder if the future is not in pre-packaged apps, but in developing my own, on the spot apps...


On second thought, even the simplest apps need careful planning and implementation.  And then there's the saying "The mark of a master is to make something difficult appear easy" - while some of the most popular apps appear effortless, there is no doubt a team of talented and experienced programmers behind the execution of that app!

Defining E-commerce

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With this blog's new focus on electronic commerce, it will be beneficial what e-commerce actually is, along with the how the Internet can affect the relationships within a business.


While the Internet is typically seen as central to e-commerce, it is defined in these posts as the process of buying, selling, transferring, or exchanging products, services, and information via computer networks. These networks can include the Internet, connecting the business to other entities, or within a company's own intranet. By this definition, even adding an internal system for a company that functions by transferring data will be considered e-commerce. The benefit of this system may not be immediately apparent to the customer, but (hopefully) having the system in place will either lower costs or allow the company to compete in different areas.


Any of these sharing transactions can be a combination of purely or partially electronic, or be transacting with real or digital goods. For example, a company could be selling electronic goods in the physical space, like Gamestop which specializes in selling video games and other software. The transaction could also begin on the Internet, but involve the movement of physical goods, an arena in which Amazon excels. Amazon has also entered into purely electronic transactions by way of their cloud based services. In AWS, Amazon is leasing server space for companies to host their services on Amazon computers. The cloud has gotten a lot of press lately, and Amazon is helping to bring it to the common user with their web services.


I'm sure that none of these definitions are ground-breaking, but it is good to set the central definitions for the next series of blogs.

Can I take your order, please?

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It's time to review an article in the Wall Street Journal titled The Long-Distance Journey of a Fast-Food Order. This article discusses how McDonalds uses a centralized call center to take orders at the drive through, rather than having people in the store doing that job.

Have you ever gone to pick up fast food, and the voice taking your order does not match anyone delivering your food? I know this has happened to me on several occasions, and I was always curious if this actually happened. I'm glad to find out that, according to this article, it is true! I never paid much attention to my suspicions because I had a hard time envisioning the value of setting up a complex and technologically advanced system when there were individuals in the store ready to take my order. What I didn't take the time to see (thanks to the hot food in my hands) was that someone taking an order in my local McDonald's could only take orders at that store, where someone in a call center could help people from all over the country. This decreases the cost for the owner to having fewer employees, and also helps to streamline their training process, as this is one less job they have to teach.

There is also the advantage of quality tracking. According to the article, the software used in the call center is able to monitor time on the phone and employee attentiveness, and call monitoring can help address customer service issues in ways that are not possible when the employee is located in-store. I'm sure everyone has had a sub-par experience when ordering food at the drive-thru, and providing higher quality service can differentiate a company in this business.

While it sounds good to have a lower employee cost and higher customer service quality, is it really cost-effective to outsource your order takers? According to the article and other research I conducted, I can say no one knows. While there have been cases reporting lowered costs, the savings are not so dramatic that companies are lining up to start this type of service. In fact, the article reports that Wendy's was not pursuing the technology because of unproven cost savings at the time of writing.

I'm glad to know that my suspicions have been validated, and that voice on the box was not coming from someone inside the store. I think it is an interesting use of 21st century technology in a typically, shall we say, classical technology industry, but it looks like the cost savings still need proving.

Is the Internet the Answer for You?

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It's time again to fire up the ol' blog! The next several posts will be dedicated to Electronic Commerce and topics related to such. To kick off the blogoganza, we'll investigate the need for strategy when entering implementing an 'E' to your commerce.

Enticing as the internet, blogosphere, social media, and mobile media seem, especially when you look at the success of companies like Amazon, Google, and Apple. Amazon redefined online shopping, Google created their own industry, and Apple has been successful with its iTunes business, but the internet is not a wonder-fix-it-all-thing. Just ask America Online, Yahoo, and Progressive. America Online and Yahoo were once kings of their realms, but have failed at holding onto their throne, where Progressive was stung on a several sides of the internet. You can check the details here, but both an attack through Tumblr and unaddressed tweets, Progressive took more bad press than was necessary. Having a proper strategy in addressing these issues could have saved bad PR for a company in a notoriously bad PR business.

At the end of the day, in spite of all the amazing things possible with the internet, it is nothing more than a tool. Without proper strategy, the internet won't just leave money on your doorstep. When entering the e-commerce sphere, a company must have a clear vision for what information to use and how it will be applied. Doing so may not guarantee success, but it should at least protect against abject failures. However, if the returns justify the costs, there is a clear path to creating revenue, and the proper support channels are established to maintain a company's image, the e-commerce sphere can help a company grow by leaps and bounds.

Tom Savel - Energetic Programming CDC Doctor

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This post is all about Dr. Tom Savel, guest speaker extraordinaire! Dr. Savel works with the CDC in Atlanta, GA in a rather unique role. He leads a small group of programmers and designers who work on prototyping new technologies for the Centers for Disease Control.


As the title of this post alludes, Dr. Savel was very animated - it was obvious to me that he enjoys what he does. While the exuberance of Dr. Savel sometimes made it difficult to understand exactly what he was talking about, his coverage of his team's website was thorough and enjoyable. The Informatics R&D Laboratory has an excellent website that highlights the work done by this group. The site is not affiliated directly with the CDC, and is meant to 'sandbox' emerging technologies for the brass at the CDC.

Several of the tools he presented were nifty, including PHTweet, a tool designed to watch Twitter for the emergence of health-related posts. This is similar to the trending done in Twitter, but the purpose of this project was to create a visual dashboard for particular health-related terms used in the Twitter Stream. I was impressed, especially with the clean, easy to read interface.


Each project, according to Dr. Savel, uses Agile Methodology, which means they develop projects in short sprints, adding functionality with each sprint. However, Dr. Savel was certain to mention that they use Agile "without all the dogma". Some might read this as an incomplete Agile, but based on the descriptions Dr. Savel gave, it sounds like they are using an appropriate level of detail with their version of the Agile Methodology.


Overall, I quite enjoyed the presentation Dr. Savel gave. It sometimes felt like a ping-pong match with the topics being discussed, but the energy Dr. Savel brought to the table was infectious, and I learned a great deal about real-life project management hurdles and issues.