Emerging markets - the next mobile revolution!

As companies continue to buckle down to weather the recession cold, mobile phone companies are striving to stay afloat amid competition and recession fears by targeting the emerging markets and by offering innovative services at competitive prices. They are currently focusing all their energies on the emerging markets in the developing countries, as seen by NTT DoCoMo's move into India. These newer markets comprising of Latin America, Greater China, Middle East and Africa, are expected to account for around 70 percent of the mobile handset sales in the future. Definitely a large piece of the pie....

The mobile phone industry is no doubt treading the path of recession but newer markets are opening up and developing to upkeep sales figures. The telecom industry is still in an early stage in many countries, which are becoming fertile for mobile mania. As companies are cutting costs and harnessing newer technologies to stay profitable, they are also forced to follow aggressive pricing strategies to beat the competition. While mature markets are becoming saturated, smartphones are slowing picking up. Studies have revealed that mobile phones are a necessity and users are willing to cut costs on their landline phones or cable rather than give up their mobile phones. Emerging markets, on the other and, are still price sensitive and are a bigger market for the low and mid-range phones. Mobile phone companies are thus able to withstand because of their sheer geographical range, across the whole world.

As a financial advisor would say,"You should really diversify your portfolio...."

Australian Chris

Gloom confirmed

Global markets are reeling and it was only a matter of time before the effects spread into the world of wireless. Well, unfortunately such gloom has arrived. Samsung and Nokia have officially given notice that growth within their respective companies will be stunted for the remainder of this year and possibly into next.

"The actual global market growth on a unit basis could come short of our initial forecast for 9 percent growth (in 2008)," James Chung, a spokesman for Samsung, told Reuters.
"As for next year, it is possible that the market could post a single-digit or even negative growth," Chung added.

Such sentiment was already shared by top handset maker Nokia with their top boss stating, "that the world's mobile phone market would fall in the fourth quarter and next year as an economic slowdown crimps consumer demand."

With new models being looked at as luxury items one can easily see why these top handset makers are not so bullish about their prospects. In fact here in Japan, where electronic gadgets are always in fashion there has been a shift in consumer buying patterns as reported by Japan's broadcast corporation NHK. The new trend apparently has been the selling of older mobiles at drastically reduced prices. Models that four months earlier retailed at nearly $500 US are being sold for $150 or less. Manufacturers seem to be understanding that consumers simply cannot spring for the newest or latest models.

Interesting times right now and it will be even more compelling to see how these companies respond. As alluded to in the previous post, that despite downturns there are always opportunities
for those ready to look for them.

Canadian Chris

Not all DOOM and GLOOM...

As Japan officially falls into recession, after suffering a second negative quarter in a row, along with Germany, Italy and Spain, there certainly is alot of doom and gloom in the global markets today. And while economists and analysts wait for the next economy to follow the downward trend, NTT DoCoMo Japan, the world's leading mobile communications company serving over 53 million customers, is digging into it's war coffers to take a stake in one of the fastest growing mobile phone markets in the world, India, a market gaining 9 million customers per month.

Firstly reported by Bloomberg from a speculative stance, stating that DoCoMo was taking a 26 percent stake in Tata Teleservices of India and then confirmed with in hours by a press release on NTT's press release webpage, the deal is reported at US$2.7 billion for the 26 percent stake.

As a result of the capital alliance, the partners expect to expand mobile communication operations in the fast-growing Indian mobile market, aiming to increase operating revenue and achieve steady business growth.

As the old saying goes..."turn a lemon into lemonade"....

Australian Chris

Weathering the Storm

In reference to my last post I l examined the notion of companies adopting mobile CRM technologies to enable better efficiency and a competitive edge. In today, post I would like to continue on with that thought but take it further in terms of how such a stance towards mobile CRM can be a potential boon for companies looking to remain fiscally vibrant in a worsening economic climate.

Sales forces should have instant access to critical information which enables transactions while technicians should be able to check inventories instantly in order to source replacement parts. Mobile CRM software applications enable this and add to increased efficiency, productivity and ultimately customer satisfaction. It is this last notion which counts for so much these days considering the financial woes of many industrialized countries including Japan. Smart companies understand that the costs associated with sourcing new clients far outweigh what it costs to actively keep the existing base happy. Engaging in pure customer retention and after-marketing practices which purely aim to satisfy current customers, is one way companies can surely combat these external economic conditions. This is where CRM systems can really prop up companies and allow them to not only ride out these rough times but actually take steps towards enhancing their overall market positioning.

Large and small companies ought to be engaged in this constant game of finding ways to increase efficiency. The problem at times however, and what hinders mobile CRM uptake appears to be that some of the costs and inefficiencies do not directly show up on company income statements in terms of fixed expenses. Without some fairly deep introspection it is difficult to pinpoint where and how costs can be reduced by the successful implementation of software applications. I can assure you though, there are costs for not aligning with the times and they show up in terms of lowered productivity of workers or inefficient use of resources, meaning lost revenue which ultimately hinders profits.

Through the application of high-tech-analytics capabilities, collaborative platforms and automated processes, mobile CRM applications are well armed to attack company or departmental inefficiencies. By gathering information from multiple data sources and storing it in a centralized location, a hosted CRM solution provides a holistic view of a customer in real time. From this insight, a company’s management, sales and service people can better generate leads, target top customers, manage marketing campaigns, drive sales and in due course boost customer satisfaction.

As many companies are faced with the reality of having to batter down the hatches for the foreseeable future, it is my humble opinion that companies here in Japan and worldwide ought to really look into mobile CRM as one of their main defenses to this storm of uncertainty.

Canadian Chris

Unleashing the Power

In today’s post I thought I would explore a side which we have yet to fully delve into here at Mobile CRM Japan. That is the use of mobile based CRM systems for the sole intent of adding both versatility and potency to one’s workforce. What I mean by this, is that if your company has a number of workers who are mobile--pardon the pun—or out of the office for major portions of their day, a well chosen CRM application can do wonders for enhancing worker productivity, modernizing and smoothing out of business operations and logistics, as well as amplifying overall customer services levels.

This push towards establishing a mobile based CRM system which has the ability to connect workers via a mobile phone to the office and allow for increased functionality is a notion that will become increasingly more important as businesses look for new and more efficient ways to service their customer’s needs. The fact is that today’s technology is evolving to the point in which this real time sharing of information is not only possible but soon to be a standard in business operations for competitive firms. Without tapping into this resource companies are putting themselves at a distinct disadvantage to direct competitors who are embracing this technology. Additionally, what should help in the adoption of this type of technology is that it is becoming more affordable for SME’s—small to medium enterprises. This news should be music to the ears of companies in Japan which is around 98% SME dominated.

To clarify both the importance and functionality issues even further, let’s say your company manufacturers, sells and services ‘ABC widgets’. Within your employee base you have two divisions which spend a number of hours in the field. One is your sales force selling your ABC widget and the other is your servicing division consisting of on-site service technicians who service your product. Your sales force should have instant access to information which may assist in enabling a transaction or closing a deal, such as the placing of an order, updating relevant customer information details, or checking inventory. Equally, your technicians should have the ability to attain instant access to company troubleshooting manuals, part numbers, part delivery orders and so on. All of this and more should be able to be performed through a wireless device so as to shorten the lead to cash cycle, increase efficiency and ultimately satisfy the customer needs.

Current mobile devices coupled with today’s rapid evolution in technology certainly have the power to unleash a host of applications aimed at helping businesses strengthen operations. Here in Japan, like most of the other industrialized worlds such a shift is certainly underway however the race is on. It is our thinking here at Mobile CRM Japan that the companies who fully embrace this mobile based CRM technology and thoughtfully single out what it can do for them, are the companies which will ultimately position themselves to thrive.

Canadian Chris

A DIGITAL LIFESTYLE IOIOIOIIOOO

As I was scanning the digital world I came across an interesting and informative short film produced by Andrew Berglund (Global Interactive Executive Creative Director at Cheil Worldwide) called “A Day in The Life of a Mobile Phone in Seoul” - An Interactive Exploration of Marketing Technology among the YMCs (Young-Minded Consumer) in South Korea. The video gives a great overview and insight on mobile phone usage and behaviour of YMCs living in the modern digital metropolis of Seoul. How today’s youth consumer is making the mobile device an extension of his/her existence - utilising a wide spectrum of mobile services from video calls, SMS, MMS, vlogging/blogging, internet, mobile TV broadcast, digital multi-media broadcast, m (mobile)-commerce, m-banking, m-mags, m-movies and other dynamic multi-sensory social content.

As this film is set and produced in South Korea, I wondered if there were any cultural similarities or dissimilarities with Japanese YMCs. I felt I could answer this question before I even asked it......there are very few cultural mobile phone usage differences in Korea and Japan. However, there are significant cultural differences with western nations. For example, you would typically see people talking or text messaging on their phones while waiting at the bus stop in a western nation, but one would soon see that while waiting at bus stop in Korea or Japan, people waiting for the bus in say Seoul or Tokyo watch their mobile phone screens intensely instead. People are totally immersed in consuming digital media whenever and wherever possible on their mobile phones in Seoul and Tokyo.

Despite the fact there are few cultural mobile phone differences between Korea and Japan, I believe there are some applications and services that may differ. One is called the Polygraph which is a mobile lie detector allowing South Korean girls to test if their boyfriends are telling them the truth about their where-abouts and there extra-curricular activities.....wonder if this should be introduced to the women of Japan..???!!!

Another interesting mobile service is the Navi Call Taxi Service. A passenger calls a cab from a specific number, and it knows where you are via a GPS system. As to make the taxi experience more safe for young women, the service sends a text message to the parents and/or friends with the name and number of the taxi and its location....definitely something to put young women's minds at ease.

Even though today's world is classed as a boundary less and global economy, one can still see the differences in technology and infrastructure and the differing ubiquitous nature of mobile phones across the world.

Australian Chris

The power of one...with the help of social networking...

The power of social networking, and as previously mentioned Twitter, are definitely becoming significant driving and detemining factors in not only a company's CRM system but in politics too. With the election of Barack Obama, the Obama team has just launched Change.gov, outlining some of the President-elect’s agenda, and offering insights of what we might expect from his administration. The site is an introduction to the successful election and also engages user involvement, that we saw during the campaign with the likes of Election 2008 on Twitter. The site is currently asking users to share their stories from election night and also offers “Submit Your Vision” section and a section where Obama asks “Where should we start together?”.

Additionally, it appears that Obama will be making use of the Web and social media to encourage public service and open a channel for a political CRM system. Change.gov definitely does point to the Web playing a pivotal role in this aspect of his administration and offers other features including a blog as well as the latest announcements and information for the press.

What is encouraging is to see the President-elect moving quickly to keep his supporters as engaged after victory as they were during the campaign. People may say he is not qualified as a military decision-maker but Barack Obama certainly shows talent and know-how to connect with the masses and use the undeniable power of W-O-M, word-of-mouth.

Australian Chris

History in the Making and in More Ways than One

Well, today we officially welcome the next U.S. president elect to the fold. Barack Obama will certainly have his hands full with the number of issues America faces. This blog is not political in nature however one cannot deny the significance of this moment. As a side note however, this point in American history is being captured and read in ways never imagined and that is what is catching my interest today.

To be more succinct, I just finished watching a news clip from the American news outlet ABC and how the Obama campaign won the young voters. They turned out in huge numbers to support his campaign. This group certainly played an instrumental role in him capturing the presidency. Why did the younger generations suddenly come alive and present themselves at the polls? Traditionally that vote has always been difficult for any candidate to capture. One could certainly point to the issues of the day truly impacting the American people and an utter dissatisfaction with the last administration. The mounting frustration and emotional strains caused by the current government’s policies such as the Iraq war. These policies were potentially hitting home in ways that haven’t been felt in a long time. I believe that these are but a few of the reasons for this young voter presence. One that I would like to look at today however is from the mobile technology side of things.

With today’s sources of news--traditional print, television, radio and word of mouth--playing their usual roles in influencing people’s thoughts, actions and beliefs, I am struck by just how fast the mediums of communication are changing. Today, as we can see, the young in particular are gravitating towards new sources such as the internet and even mobile web to fulfill their needs for the latest news. They may find this info from trusted news sources or they simply read an unfiltered blog.

To say this technology and the associated trends are not having an impact would be an understatement. Just look at what the company Twitter has been doing as of late and what role it has been playing in the election. For those of you not familiar with Twitter this company allows users to send short messages of up to 140 characters from a mobile phone or computer to other ‘followers’. The significance of this is that it has taken off in the States with news and opinions being shared by millions at any given time. It has become so huge that while Obama was campaigning against both Clinton and McCain he actually had an account set up and used it as a tool to connect with voters. He continued to use this service for the duration of his campaign and even sent a message upon winning the Presidency. Do not get me wrong, I am not suggesting that this particular service or technology itself was a decisive factor in this win. However, one cannot discount the affects that mobile related services such as Twitter may have had in uniting young people, challenging ideals and potentially swaying hearts and minds to a certain extent.

Another site created by Twitter tracked the current sentiment of the American people in a way that has never been done before. Basically this site tracks all the political messages on the service. Twitter regularly determines a set of 'Hot Election Topics' and displays every tweet that fits into these categories in an automatically updating stream. This type of technology certainly has the potential to galvanize voters, the younger ones in particular, as the way this information is presented is so new, hip and up to date.

The key to tech based info sharing services such as Twitter is this notion of always on and always available. Of course you can use a home based computer to log messages, however what really runs this engine is the mobile, with most users firing off these messages using their ketai’s.
As you can see here, the power of the mobile is there in a way which allows businesses to build powerful CRM tools to collect information, track sentiment and in some cases alter courses of action or even history. I hope you enjoyed today’s post and as always comments are welcome.

Canadian Chris