Best Kept Secret in Wireless Innovation

I came across an article in Fast Company on a wireless technology standard that I think most people (especially non-techies) have probably never heard of - ZigBee.

ZigBee is a wireless technology that uses significantly less power than WiFi and as a result is ideal for monitoring applications. The application detailed in the Fast Company article was a remote healthcare monitoring solution called AT&T Telehealth, but the technology is also touted for energy management and efficiency, home automation, building automation, and industry automation.

If you are interested in learning more about ZigBee, they have lots of educational information on their web site.

What other uses can you imagine for this technology?

@innovate

Everything is Amazing, Nobody is Happy

I saw this Conan O'Brien interview with Louis CK a while back, and it is hilarious.

I came across it again today and I thought I would post it on my blog because it is also something worth pondering at a deeper level. We too often take the innovations in our lives for granted, but if we reclaim that sense of wonder, we are actually more likely to create new innovations, not less.

The 20th and 21st century have been times of amazing innovation, that has quickened in pace and changed our lives for the better, forever. It is definitely worth the time investment. Check it out:

Everything's amazing, Nobody's happy


What do you think?

How can you make the world even more amazing (even in a small way)?

@innovate

iPhone Pro in June 2009?

Ok, it was a year ago now that I started making noise about the iPhone Pro that I expected to arrive, based on the underwhelming iPhone 3G launch.

I, of course, thought that the iPhone Pro would make its appearance by Macworld in January (not the iPhone Nano thought other people were suggesting would be introduced), but neither was released as Apple announced that the iPhone was on a June annual release cycle.

Now it's February. The speculation is mounting on what Apple might release in June. Some people are theorizing that Apple will introduce a new $99 iPhone.

I can see a $99 iPhone happening, but I'm not sure I can see Apple investing in building an entirely new design to sell at that pricepoint, given the limitations that the iPhone 3G already has.

Apple will definitely introduce a new iPhone in June, but I still believe it will be a new high-end design, not a new low-end design. If there is a new low-end design it will, in my opinion, only be modestly different than the current iPhone 3G.

Instead, Apple will be looking to reclaim its design leadership with some new capabilities to delight customers, and to provide application developers with some new possibilities. In the past year the Blackberry Storm, the 3-megapixel Sony Xperia X1, the 5-megapixel Nokia N97, and the 8-megapixel Samsung Memoir have all come on the scene to provide attractive alternatives to the iPhone.

I still believe the main new features will be a 5-megapixel swivel video camera (or a front/rear facing camera combo) and a video iChat application for the iPhone Pro.

As a recap, here are the features that I predicted almost two years ago for the third version of the iPhone (noting those achieved), which I now believe will be the iPhone Pro that will launch in the June timeframe:

• 5-megapixel swivel camera (or paired with a 2-megapixel screen-side video-enabled lens)


• Video iChat capability (iChat AV)


• Next generation Bluetooth


• DONE - Bluetooth 2.0 + EDR


• A slightly bigger screen (every millimeter counts) - if the bevel can be reduced


• 16gb or 32gb of flash memory


• Hopefully a faster 3G or WiMax network connection


• DONE with 2nd version


• 802.11n WiFi


• Faster processor with lower power needs


• Improved battery life


• Lower price - $299 or less


• 2nd version hit $199-299 - I now think iPhone Pro will also be priced at $199-299 and the iPhone 3G will drop in price to FREE-$99

So, who thinks I'm right?

Note: These are purely my opinions based on my understanding of technology and of strategy, and are not based on any inside knowledge. For someone else's view on possible specs, see here.

@innovate

Uncrossing the Wires - Can Clearwire be Fixed?

Clearwire is the first major WiMax broadband service offering. The company initially launched with fixed-line replacement broadband for people's homes or offices. This puts them into direct competition with cable and DSL providers. Let's look at the landscape to see how Clearwire stacks up:

Provider	Plan Name	Price	Speed	Term
Clearwire	ClearPremium Choice	$26.99	1.5 Mbps	2 yrs
Clearwire	ClearPremium Plus	$44.99	2.0 Mbps	2 yrs (3 mos. at $19.99)
Qwest	Faster	$44.99	1.5Mbps	2 yrs ($26.99 with home phone)
Qwest	Fastest	$54.99	7.0 Mbps	2 yrs ($36.99 with home phone)
Comcast	High Speed Internet	$52.95	6.0 Mbps	0 yrs ($42.95 with cable TV)

As you can see, Clearwire's service offerings are not necessarily any cheaper or faster. In fact, existing Qwest Local Phone and Comcast Cable TV subscribers can get 4x faster access for less money. So why would anyone go with Clearwire?

They are priced at parity with Qwest on their voice bundle:

Provider	Plan Name	Price	Speed	Term
Clearwire	Clearwire Voice Bundle	$71.98	1.5 Mbps	2 yrs (3 mos. at $24.98)
Qwest	Unlim LongDist Bundle	$71.98	1.5 Mbps	2 yrs

But what about mobility? Clearwire announced a PC card service recently that is $10 a month cheaper and slightly faster, but their coverage area is terrible in comparison to Sprint and soon to AT&T as well. Here is how the mobile plans compare:

Provider	Plan Name	Price	Speed	Term
Clearwire	PC Card Premium	$49.99	1.5 Mbps	2 yrs
AT&T	DataConnect	$59.99	1.4 Mbps	2 yrs (5 GB limit)
Sprint	Mobile Broadband	$59.99	1.4 Mbps	2 yrs

Clearwire also has a home/mobile bundle, but if you've got a mobile broadband PC card, what do you need home broadband for unless it is significantly faster (which Clearwire's isn't):

Provider	Plan Name	Price	Speed	Term
Clearwire	ClearPremium Plus w/ PC	$79.99	2.0 Mbps	2 yrs (1.5 Mbps mobile)

So why would anyone signup with Clearwire?

Frankly I'm not sure why someone would unless they have no other option. Clearwire has no clear advantage.

As an outsider looking in, if I were advising Clearwire, here is what I would do:

1. Abandon the home broadband market in metropolitan areas with good cable and DSL coverage
2. Focus on rural areas and smaller metropolitan areas with poor coverage where they may have a unique offer
3. In metropolitan areas, focus on the mobile broadband market and pushing the speed/pricing envelope
4. Focus on developing a WiMax signal booster that can be plugged into any AC or DC power source
5. Explore alternative pricing models, possibly including advertising-supported service (as an option)
6. Push the Sprint partnership through to expand the value of the combined Sprint/Clearwire WiMax offering
7. Could PC cards be used to somehow improve WiFi reception?
8. Support automatic switching to faster user-approved WiFi connection points when in range
9. Partner with local phone or cable companies to be their mobile broadband providers
10. Get Clearwire technology embedded in new laptops along with antennas that boost both WiMax and WiFi reception

The Trouble with Tully's

Running at "half-caff" in a caffeinated world.

In the first of a series of "From the Outside Looking In" articles I will give my take on how I would address challenges that different companies face.

For those of you not from Seattle or familiar with Tully's, it is a regional coffee chain based in Seattle. It probably has the distinction of being the second largest coffee chain in Seattle, although that doesn't really help it a whole lot.

Tully's has a big problem, or should I say a small problem. Tully's is too small to compete with Starbucks' buying power, but too big to be seen as a credible Starbucks alternative in the mind of those who refuse to patronize chains and instead favor local coffee houses. As a result Tully's struggles to differentiate themselves from their larger competitor, and continues to lose money.

Tully's has chosen to differentiate itself based on factors such as Free WiFi and Green Coffee. I don't mean green as in color, but instead that they only use 100% Certified Fair Trade Organic Espresso and a cup that is 100% compostable. They also carry tasty treats from Alki Bakery, and premium soft serve ice cream and ice cream shakes.

The trouble is that is where the differentiation stops. Walk into your average Tully's and unless someone told you, you might think you were in a Starbucks (only maybe slightly less nice). Tully's needs to do more to differentiate itself from the competition. If I were running Tully's here is what I would do:

Turn Tully's into a destination rather than just the closest coffee shop:

1. Install 802.11n and take steps to ensure its reliability


• Tully's has free WiFi already, but it's not very reliable and it's slow. Starbucks may charge, but their WiFi is faster and more reliable. If you're going to try and differentiate on a point, you have to delight customers not frustrate them.
  


2. Consider having a small conference room available for use in some locations
   


• Some smaller coffee shops use this to great success in driving hot beverage and food sales, but more importantly to drive loyalty


3. Don't sell any food unless you are going to sell best-in-class options


• Do a deal with Krispy Kreme to distribute their donuts, and not just for individual sale, but dozens and half-dozens as well


• Do a deal with Organics to Go or other compatible vendor for sandwiches


• Do a deal with an iconic bagel manufacturer


• Switch from Ghiradelli to Green & Blacks Organic as a chocolate supplier (hint of luxury) -- Godiva might make a good second choice


4. Focus on service, encouraging employees to make personal connections with customers and take small actions to loyalize customers


• Randomly select regular customers for free upsizing (Grande for the price of a Tall) or free upgrading (you've been chosen for a free flavor shot)


5. Look to eliminate queueing


• Touch 'n' Go Tully's Card embedded with Favorite Beverage (one-touch ordering and payment)


• SmartPhone application (see Starbucks blog entry from Feb2008)


• Phone ordering -- system recognizes phone number, favorite drink, and Tully's Card PIN


• Web ordering -- Cookie recognizes user, favorite drink, prompts for Tully's Card PIN (or allows customized orders)


• In-store kiosks for distributed ordering for people paying by credit card and Tully's card


6. Look to improve efficiency in other ways


• Introduce cup printing system (increase speed, reduce errors)


• Pass through toaster (we put the bread/bagel in and you take it out)


7. Space is King


• Not having access to Tully's financials, a quick analysis of Starbucks financials as a proxy shows that on a revenue per square foot basis, food delivers 20%, whole beans 10%, and coffee-making equipment 5% the revenue per square foot of hot drinks. This space needs to be worked harder or freed up for other purposes.
  


• Eliminate hot foods


• 65% of all coffee is consumed during the breakfast hours
  


• Work the space more efficiently by working hard to create a second and maybe even a third spike


• Do a deal with Jamba Juice to expand revenue without subsantially increasing space requirements


8. Continuous Innovation is the key to continuous differentiation


• I would help implement necessary organizational and cultural changes to engage the entire workforce in the process of helping Tully's establish and maintain an industry leadership position based on differentiation

OK Tully's, so now I've given eight differentiating points you can focus on. Brilliant execution will get you to the IPO you so desperately seek. Do you have the courage to take some of these steps?

What do the rest of you think out there? Are these ideas full of hope or full of folly?

Sound off!

Following the Line to Innovation - Mobile Applications

I came across a queue reduction application for the iPhone and iPod Touch yesterday that was intriguing. The application isn't quite finished or certified for use yet by Apple and Starbucks, but from what I gather it works something like this:

1. User comes in range of a Starbucks WiFi Hotspot
2. Application recognizes the Starbucks WiFi Hotspot or user initiates application
3. Application engages the user interface portion of the application
4. Application makes a connection
5. Application prompts user to order a Starbucks beverage
6. Application user interface facilitates the selection and transmission of the drink order (including a list of saved favorites to speed the process)
7. Application connects to the user's iTunes account
8. Application deducts funds from the user's iTunes account
9. Application creates a visual barcode with the information necessary to register payment
10. User places iPhone or iPod Touch with visual barcode under a reader at the pickup counter
11. User collects their beverage
    

The visual barcode (semacode) and scanner portion of the system could be made unnecessary (or relegated to backup system status), by instead transmitting a payment confirmation to Starbuck's on-site systems directly via the WiFi connection. In the backup scenario, the visual barcode would serve as an electronic receipt to show proof of payment in case the systems in the store doesn't receive the systematic payment immediately.

Imagine the convenience of getting a block or two from your favorite Starbucks, connecting, clicking 'The Usual' and proceeding directly to the drink pickup counter instead of waiting in line to order and pay.

Of course there is no reason why companies like McDonald's or Cinemark couldn't create similar applications to eliminate some of the queueing from our lives. If people could order this easily with their phones then businesses could reduce staffing or reallocate resources from order taking and payment processing to more value-added activities like preparing food or beverage orders.

Apps like this could be extended to the Web through the introduction of a store number field or store locator mini-application or pulldown at the beginning of the application sequence. This would allow you to order out of range of the in-store WiFi over your cellular network or from your home or office internet connection.

Less time spent waiting in lines?

Oh what a beautiful world.