John Sviokla The Near Futurist RSS Feed

Apple's iPhone Platform Could Be Your Secret Weapon

1:58 PM Monday August 25, 2008

Tags:Apple, Innovation, Marketing

John Hagel pointed out in a recent post, when designing for the future, we should not assume that the internet will be on our desks - but integrated to our daily lives, fluid, mobile, and social.  Apple's iPhone and App Store are the starter kit for executives to learn how to thrive in this new market of content which is user-created, market-sorted, and available everywhere (see Umair Haque's recent post).

So the question is: Can you use this new, portable, low-cost, user-friendly platform to sell more and serve customers better?

The Apple iPhone is the first portable, networked media platform that enables almost any person, company, or government to create new applications.  Apple's App Store is selling over a million dollars a day in new software.  Big software companies like Salesforce.com already have interfaces to the iPhone, but the field is wide open for traditional companies to get their brand into this environment. 

The first step would be to sponsor some of the innovations that are emerging naturally.  For example, a car company could sponsor the software that turns your iPhone into a flashing emergency light to put in the back of your stalled vehicle at night.  There's also a pedometer app that uses the on-board accelerometer to measure how much you have walked or run -- Nike could count how much you Just Did It.  There is even a glucose counter, which I'm sure will soon have a Bluetooth-enabled glucose tester, which will enable you to prick your finger and automatically update your record and your doctor -- which should be of interest to Bayer Diabetes Care, to name just one. 

Companies should be encouraging end-user iPhone innovations consistent with their brands - and let the App market sort which ones are useful.  Because the medium is so new, the costs are very low.

More broadly, media is an integral part of all products and services.  For example, many consumers love  barbecue. Tech savvy cooks could design a barbecue widget for the iPhone that displays YouTube instructional videos and has markets voting in real time for the best recipes with their phones. Kraft could sponsor it. W.W. Grainger, the $6.8 billion dollar industrial distributor, has a catalog that has 80,000 items in it and is inches thick - which only represents a fraction of their 250,000 SKUs.  There should be an iPhone version of that catalogue to serve up the firm's full inventory in real time - with "how to" videos created by enthusiasts drawn from the millions of people who use their products. And any company with a sales force could use iPhones to show prospective buyers up-to-the-minute customer testimonials - in the middle of the sales process. 

Build the content, serve it up through iTunes -- and let the market decide what it wants. Many sophisticated phones can communicate content, but Apple has the best market for ideas. Now it is cheap and easy to learn and differentiate.  Over time, there will be devices like the iPhone in every pocket, in every car, and even in airplanes.  You should be ready.

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Comments

John

An interesting article, I'm not sure that what you say has not already been happening in mobile on other more established mobile software platforms such as Symbian OS (with over 200 million devices shipped and 9,000 commercially available applications). I'd pose the question why a company would choose to develop an application solely for the iPhone with less than 10 million installed units - wouldn't you want to develop for a platform or sponsor an application with the biggest reach to your potential customer base?

Paul

- Posted by Peter 
August 26, 2008 5:12 PM

Yes, there are many other mobile platforms to develop for, but the cost of entry for any old "joe" is so low, and there is a market -- in the app store -- which allows customers to say what they like -- and allows the producer more price flexibility. I think these things add up to a more innovative soup where a market -- not the manger in charge of mobile applications for Verizon chooses -- what is available or not.

all best,
j

- Posted by john sviokla 
August 27, 2008 7:24 PM

Dear John,
I am a gadget freak and I have tried the iPod touch when it was launched. Ever since I heard about iPhone I had an apprehension. It was launched in India last month but I curbed my instinct to buy this phone. And may be, I was right.

I use a Nokia E90 for BlackBerry with a 4GB card for my files and music. iPhone is not compatible with Blackberry yet.
I also saw a campaign recently where Apple is relaunching iPod.

Sometimes I now feel it is best to curb one's impulsive instincts of being an Innovator buyer. I have now chosen to either be an early adopter or a late adopter seeing the current pace of the change in technology which makes your investment redundant very fast. Unless something which challenges even the laggard customers to wake up and take note.

- Posted by Jay Parkhe 
September 11, 2008 7:58 PM

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John Sviokla

John Sviokla is vice chairman of Diamond Management & Technology Consultants, Inc. (NASDAQ: DTPI). Prior to joining Diamond, Dr. Sviokla researched and taught at the Harvard Business School for twelve years in Marketing, MIS, and Decision Sciences. His extensive writings have appeared in books and journals including the Harvard Business Review, Sloan Management Review, Fast Company, and the Wall Street Journal. He is a frequent speaker at executive forums worldwide and earned his BA from Harvard College, and his MBA and DBA with a major in management information systems from Harvard University. He can be found at www.sviokla.com

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