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Think of openness and mash-ups as a language, not a service…

June 14th, 2007 · 2 Comments

For a while I have spoken to various operators and supported various workshops trying to promote the idea of mash-ups and the general mashing and openness culture prevalent in many websites in these “2.0″ days. Such topics were also raised at the Telco 2.0 brainstorm, especially during the Digital Youth track, which I attended on the second day (chaired by Tomi Ahonen - who else?)

Slowly the lightbulb is illuminating in the minds of some operator strategists and thinkers, some of whom have the controversial “innovation” in their job title. Some of them are openly singing the “Web 2.0″ hymn. However, much skepticism remains before “going 2.0″ big time. A lot of hype goes with the “2.0″ territory. The skeptics always spoil the broth with their chilly commercial concerns. “No one is making money from Web 2.0….” Or, “What’s the business case?”

That latter question is almost always an accountancy question, which really means “What’s the direct P&L for this stuff?” That’s a sensible and important question, but it’s also a fallacious question. Direct P&L is made from products and services. Open APIs and mash-ups are not services - they are increasingly the “language” of connected digital services. As such, the revenue question doesn’t apply. To the digital savvy users out there, the data tendrils of RSS feeds, mash-ups and widgets are how a service speaks, not what it does. This “2.0 speak” is simply what digital savvy users expect. A website (or, probably more accurately, a brand) not speaking the lingo will, before long, simply appear odd - even if these tendrils don’t necessarily offer much.

A parallel trend is the eco-language spoken by so many products these days, like the orange eco-friendly carrier bags in Sainsburys. The service is ultimately the same, but the brand has adopted the new eco-language. Before long, brands not doing this will appear old fashioned, odd and unattractive. A brand manager may remain skeptical of the tangible value of “going green”, but simply can’t afford to ignore it any more.

Sooner or later, T-Mobile or O2 or some operator will cross the rubicon. They will figure out that try as hard as they might, which many of them have, there is no golden future based on keeping all the users’ data under lock and key. They will bite the “2.0″ bullet and might offer, for example, a textual voicemail summary as an iGoogle widget, or some other web-plumbed feature. The business case is brand relevance to digital savvy users, who are increasing in number. The investment is brand equity. Of course, sooner or later, an interesting idea will pop up - from somewhere unexpected - and there will be real money to be made in “2.0 speak”, just as there is now money to be made - and lots of it - in all manner of eco-language products.

The bottom line is that operators have to invest in making their brands talk to the web generation. It is a sunk investment to avoid becoming a sinking ship.

Tags: Wireless

2 responses so far ↓

  • 1 Zec // Jun 19, 2007 at 4:46 pm

    In a word , I would explain to business oriented managers that it is a untangible assets at most.
    ( I would add to this ‘’speak theory”, it is about audience as well ).

    And I would suggest to hire a personal who can really good craft a polls around specific issues .

  • 2 Alan Quayle // Aug 16, 2007 at 11:50 am

    The mobile operator Three in the UK made has made a number of baby-steps into this domain. On the 3 X-Series mobile devices people can use Skype, access their Slingbox, and access their PC’s content. From a user perspective it’s a “mash-up”, from one screen they can watch TV, call internationally to Skype buddies for “free,” and access content on their PC. Though it is a closed system, in part because of the mobile device limitations you’ve highlighted in your blog. Three’s “See Me TV” is a good example of how UGC (User Generated Content) can make money for both the operator and the individual.

    Unfortunately, an operator has an existing revenue stream to protect. This fact will continue to constrain their behaviour. Calls to “just expose” all capabilities through something as simple as PHP (Hypertext Pre-processor) are premature. Though I do despair at operators who think the IMS (IP Multimedia Subsystem) Isc interface is adequate for 3rd parties. An operator needs to be convinced of its role within the emerging environment, its service roadmap, i.e. how will it make money. “Build-it and they will come,” calls do not work because of the existing revenue issue. Hence we’re likely to continue down the incremental innovation route rather than grand architectures, or Darwinian evolution versus intelligence design if you prefer.

    At the moment it’s a painfully slow rate of innovation, however, the activities are increasing with operators such as BT publishing a SDK for its Web21C and many operators experimenting with UGC and community applications. I think we’re still unlikely to see a crossing of a Rubicon, rather lots of toe-dipping and a few failed pontoons. The gap I see is for us to help find a way of building a straw-man bridge, a specific service roadmap, which enables an operator to understand how it can win profitable new revenue at the same time as exposing capabilities for 3rd parties to mash-up.

    Let me know what you think, thanks.

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