PRO.GIGAOM.COM

MOBILE

Location – the Epicenter of Mobile Innovation in 2010Overview and Excerpts from GigaOM Pro Report, Feb. 2010Dr. Phil Hendrix, immr

For more information, contact:

phil.hendrix@immr.org

+1 (770) 612-1488

More at:

@phil_hendrix

http://www.slideshare.net/pehendrix

Permission granted to copy and distribute with attribution - Dr. Phil Hendrix /GigaOM - immr - www.immr.org

PRO.GIGAOM.COM February 2010 2

MOBILE

Overview

Location, a fundamental enabler of new mobile services, is at the epicenter of an extraordinary wave of mobile innovation. While location-based services have been the subject of much hype for years, location now occupies a critical, pervasive role in the mobile industry. This report outlines the forces unleashing location-based mobile innovation (shown below) and discusses implications for competitors across the value chain. Synergy across a number of the forces — geodata, location determination, and object and image recognition, in particular — is creating significant opportunities for companies such as Twitter and fueling a new wave of innovation in location-aware mobile apps.

Location – the Epicenter of Mobile Innovation

PRO.GIGAOM.COM February 2010 3

MOBILE

Location – the Epicenter of Mobile Innovation

Forces Unleashing Location-based Innovation

A number of important forces have converged to unleash location-based innovation and fuel the growth of location-based services. Enabling these developments are breakthroughs in technology, intense competition across the entire mobile value chain, significant investment pouring into location-based services and providers and users enthusiastically embracing social media and other tools that complement location-based apps.

The New Geodata: We're Not in Kansas Anymore

Often overlooked in discussions of location-based services are the availability, accuracy and cost of geodata, the stuff from which maps are made. Because geodata are literally the foundation for location-based services — including digital maps, of course, but also turn-by-turn directions, friend finders and any other location-based app — the aspects of geodata listed below are crucial to the entire value chain of location-based services.

Location Determination (LD)

Perhaps it's obvious, but determining the user's location is a prerequisite for any location-based service. However, there are a number of alternative methods, each available from numerous providers, that can be used for location determination (LD) and each method and provider has its strengths and weaknesses. Different location-based applications also have different requirements for LD — as argued below, one size definitely does not fit all.

PRO.GIGAOM.COM February 2010 4

MOBILE

Location – the Epicenter of Mobile Innovation

Location: More than Latitude and LongitudeHistorically, location-based services have largely focused on navigation, with maps, directions and points-of-interest comprising the majority of applications. In just the past year and a half, mobile OEMs have begun to embed a growing array of sensors in mobile devices, shifting the focus away from navigation to a place toward experiences in a location.

Imaging on Mobile Devices: The Picture is Getting ClearerAt the core of new location-centered services are camera phones capable of capturing images and even video under challenging conditions — e.g., while the user is moving, perhaps even talking, trying to hold the device stationary, capturing images of objects and images (such as a bar code or QR code) on curved, crumpled, even worn surfaces in low-light, shaded conditions.

Microblogging on Mobile DevicesIndividual microblogging is producing a corpus of social data that will soon dwarf the official Internet. A significant portion of user-generated content and posts relate to locations. As a result, Yelp, Twitter, Google and others are racing to ensure content produced by mobile users is geotagged and can be found.

Automatic Geotagging: A Place for EverythingWith mobile devices and apps that automate geotagging, the amount of location-specific information will multiply rapidly. With this flood of information, individuals will need solutions that help them find, exchange and access relevant information. Proximity searching and augmented reality are two of the key solutions.

PRO.GIGAOM.COM February 2010 5

MOBILE

Location – the Epicenter of Mobile Innovation

Augmented Reality: Now Showing, the FutureOne observer described AR as a "divining rod for hidden information." While computer scientists like to talk about making computers invisible, AR makes content that is largely invisible — much of it user-generated, as suggested above — visible. In much the same way that browsers enabled individuals to access the Internet, augmented reality will enable individuals to access content in the world around them.

Location Disclosure: Will Users “Check-in” or “Opt Out?”The discussion above outlines important new developments unleashing location-based innovation and exciting new mobile apps. The ultimate success of these innovative new services hinges on one critical factor - users' willingness to disclose their location, which could become a sticking point.

PRO.GIGAOM.COM February 2010 6

MOBILE

Conclusions and Predictions

Opportunity The convergence of technology, competition, investment and social media is unleashing location-based innovation and fueling an enormous wave of new location-based services.

Geodata Leading incumbent providers are losing their grip on geodata and digital maps. Tectonic shifts are (i) making geodata "free"; (ii) improving the level of detail and accuracy of geodata; and (iii) enhancing the variety, richness and usefulness of maps and geodata. Efforts by Google, OpenStreetMap and other new players are expanding access to low-cost, even free, geodata while crowd sourcing and other efforts are simultaneously increasing accuracy, detail and fidelity. Just beginning to appear in commercial applications, 3D geodata will enable new location-based applications in much the same way that early maps opened up new routes and navigation.

Location Determination

Once limited to imprecise, "locked-down" location information from mobile operators, developers can now choose from an array of methods and providers to locate users more quickly, with greater precision and at a lower cost. Viewed as a fall back option, Cell-ID has lost ground as Wi-Fi positioning and GPS have become increasingly ubiquitous.

Sensors and Readers on

Mobile Devices

Equipped with a growing array of sophisticated sensors, mobile phones are morphing into devices that connect users to places, other individuals and location-specific content in new and compelling ways. With imaging (more commonly known as camera phones), proximity, motion and orientation sensors, mobile devices are enabling a whole new class of location-centered services, many of which rely on visual capabilities.

Source: Dr. Phil Hendrix, immr

PRO.GIGAOM.COM February 2010 7

MOBILE

Conclusions and Predictions

Object Recognition and

Visual Search

Leveraging camera phones, object recognition on mobile devices will be regarded as one of the most significant developments of the decade. Given its ease of use and intuitiveness, one application in particular - Visual Search - will soon come to dominate search on mobile devices. Google aspires to hyperlink "any recognizable object, text string, logo, face, etc. with multimedia information." With key acquisitions and significant R&D, Google is building the next generation search engine for mobile devices using object and image recognition.

Bar Codes and

QR Codes

The ability to scan bar codes - both 1D and 2d versions, such as QR codes - with camera phones will revolutionize the way in which individuals obtain information, shop and more generally experience places. Although bar codes are commonly associated with buying products, the potential applications of bar codes and QR codes are wide ranging. Creative campaigns, compelling offers and industry efforts are boosting awareness, adoption and utilization of QR codes by consumers and businesses alike. The open-source model is likely to win out over the closed, publisher-managed model.

Automated Geotagging

Geotagging is becoming increasingly automated, increasing the amount and accessibility of posts, images and other user-generated content. Automatic geotagging will (i) rapidly increase the frequency with which users add "location" to their social data; (ii) dramatically expand the volume of location-specific information produced; and (iii) intensify the need and create significant new opportunities for solutions that help individuals filter, find, access and leverage timely, location-specific content.

Source: Dr. Phil Hendrix, immr

PRO.GIGAOM.COM February 2010 8

MOBILE

Conclusions and Predictions

User-Generated

Content

User-generated content, particularly when geotagged and searchable by location, represents an enormous, largely untapped asset, which is why Twitter, Facebook and other social media companies are investing heavily to make UGC accessible. As geotagging of content becomes easier and more common, more "locally relevant" content will be available. As more content is geotagged more precisely, the accuracy of "nearby results" is also likely to improve, further reinforcing and boosting usage. Proximity searching and filtering results by location will prove indispensable.

Augmented Reality

Augmented Reality (AR) transforms the way in which users find and view location-specific content. Much like browsers enabled individuals to access the Internet, AR enables individuals to access content in the world around them. The next 12 to 18 months will see tremendous innovation as developers leverage AR to craft useful new apps and enhance the UI (user interface) to make mobile apps even more intuitive and compelling.

Location Disclosure

The ultimate success of innovative new location-based services hinges on users' willingness to disclose their location, which could become a sticking point. Policies and standards for handling disclosure and location information, interoperable solutions and even "privacy setting aggregators" are an urgent need.

Competition for

Location-based Assets

Recognizing the significant window of opportunity, Google, Twitter, Facebook and Apple are competing to be the dominant provider of location-based assets. With its ability to offer location-based services - including location-determination, visual and proximity search and others - "for free," offsetting the cost through advertising and other revenue sources, Google is uniquely positioned to capitalize on emerging opportunities.

Source: Dr. Phil Hendrix, immr

PRO.GIGAOM.COM February 2010 9

MOBILE

12 Key Developments Fueling Location-based Innovation

PRO.GIGAOM.COM February 2010 10

MOBILE

Connecting People, Places and Things – 3Ds

Note – for further explanation, see http://www.slideshare.net/pehendrix/documents

PRO.GIGAOM.COM February 2010 11

MOBILE

Location – the Epicenter of Mobile Innovation

To read more, visit

http://pro.gigaom.com/

http://pro.gigaom.com/2010/02/location-the-epicenter-of-mobile-innovation/#briefing

URL for this document:

http://www.slideshare.net/pehendrix/hendrix-immr-lbs-innovation-overview

PRO.GIGAOM.COM February 2010 12

MOBILE

About the Author

Founder and director of immr (research and consulting firm based in Atlanta); GigaOM Pro Analyst

Help organizations identify, verify and capitalize on opportunities for products and services that are new-to-customers and very often new-to-market

Specialize in research and consulting that focuses on:Dr. Phil Hendrix

Director, immr

www.immr.org

Uncovering customers’ unmet needs

Revealing hurdles slowing adoption

Triggering interest and accelerating purchase

Determining features, prices to maximize market penetration

Selected Clients

Professional Experience Education

Principal/Partner with: DiamondCluster Consulting Mercer Consulting Integrated Measurement

Served on faculties of: Emory University (Business

School) U. of Michigan (Joint App’t:

Business School and Survey Research Center)

Ph.D. (Marketing,U. of Michigan)

PRO.GIGAOM.COM February 2010 13

MOBILE

Recent Publications and Presentations