Market Requirements Document

Product: Author: Galapagos version 1.0 (Kiha Rev 1) Sr. PM | Ned Hayes

K!HA SOFTWARE 2008

MRD Executive Summary
  Smartphones are growth category: forecast of greater than 30% CAGR thru 2012, outpacing mobile market. Smartphone shipments expected to reach 150-241 million units by 2009. TAM - “Interaction Workers” are majority of new jobs in the United States. Interaction Workers are driving smartphone growth, with trends in heavy mobile device usage, travel, and meetings. o Enterprise Interaction Workers – segment is not buying smartphones heavily any more. o SMB Interaction Workers – strong opportunity – 44% SMBs investing in smartphones Go to Market – Purchases: Individual people – SMB and Enterprise workers primarily – are buying smartphones for their own (personal/business) use. The point of sale is to the individual, not the company (iPhone 3G, new Blackberry “prosumer” and HTC devices aimed here too.) o IT must absorb new devices purchased by individuals: not strong gate-keeper anymore. Target Segments Interaction Workers break out into five target customer segments: Tech Omnivores, Productive Pros, Connectors, Mobile Veterans, SMS Addicts 1) Tech Omnivores: use many mobile devices, blog, UGC, high income, lots of travel 2) Productive Pros: 94% buy their own devices, info tech has real productive value 3) Connectors: older, not as productive, but lots of communication & often online 4) Mobile Veterans: used to be productive pros, often online, mobile device angst 5) SMS Addicts: use many entertainment features, text often, highly communicate Three Mobile Device Functions in the market: Communication, Entertainment, Information. Information management is vital function (based on Kiha user interviews & market research). Information is not addressed well by current mobile devices – desktop metaphor still there. Market Need: Information-Centric Smartphone Information processing on the smartphone, esp. of PIM info, along with linked Communication, Logistics, and Location functions. Market Opportunity for Kiha includes TAM of 24M, narrowed to 1.2M IW workers who need Information Functions, are dissatisfied with their current smartphone and upgrade annually. Revenue Forecast: Initial revenue forecast with a 50% penetration rate aimed at only the top two of these defined sub-segments (with a $150 per unit profit) provides for a revenue projection of $53M / first year. Go to Market: Channel Approaches and Go to Market Options emphasize VAR options as best. Competition & Market Position: Incomplete as of June 2008. Update coming by January, 2009.

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Kiha Software

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State of the Market: Mobile Market and Smartphones
The mobile market was on fire. From 2001 through 2007, global shipments of mobile telephones grew at a 20% CAGR.1 In the U.S., mobile subscribers increased eight-fold to 225 million from 34 million.2 Today, over 3 billion people worldwide have mobile service, and Nokia continues to boast of a million handset sales per day in the developing world.3 Yet in the developed world, the mobile device market seems to have already matured. Basic cellphones have flooded developed nations. In the first world, estimations for market penetration rates hover at an incredibly high 90% – in some countries penetration even exceeds 100%, meaning there are more phones than people.4 In the coming years, the CAGR in these areas is expected to plummet to 5.8%,5 notably in North America and Europe, where recent economic uncertainty and some degree of market saturation has already led to stagnant year over year growth for mobile devices.6 Mobile phones were once a premium sale, but Figure 1: Worldwide Mobile Handset Shipments they are now commoditized. In the developed world, SMARTPHONES GROW this dilemma is perpetuated by handset manufacturers who Source: ABI Research, 2008 have become so desperate to become the “phone of the month” that they are willing to devalue even their own new hardware and software products in order to land a carrier relationship.7 The smartphone category thus represents one of the remaining premium hardware sales opportunities in a market moving rapidly into a completely services-driven revenue model.8 In the developed world, increasing data ARPU and handset upgrades are now driving smartphone market growth.9 In fact, smartphones are already outpacing every other mobile segment in terms of revenue and volume growth. The sale of more data-capable smartphones has become one of the primary continuing sources of mobile revenue. The smartphone category is forecasted to grow at greater than 30% CAGR each year thru 2012, outpacing the market for commoditized mobile phones, which will only grow at 8% in that time period.10 The smartphone category is the fastest accelerating category in the mobile space. Worldwide smartphone shipments are expected to reach between 150-241 million units by 2009.11 Recent raw sales numbers reinforce this trend – in 2007, vendors sold 122 million smartphones.12 These numbers have already doubled since 2006, when only 72M handsets were smartphones.13 The smartphone category also provides for one of the few remaining possibilities for a high-margin mobile product play.
Figure 2 Smartphone Shipments, Worldwide (IDC, Wired)

Kiha Software

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Mobile Workers: Smartphone Growth Driver Driving the growth of the smartphone segment are changes in the way workers use mobile devices. Formerly leisure curiosities and personal communication devices, mobile phones have now been fully embraced by business as professional productivity tools. Businesses both large and small have capitalized on the capabilities of smartphones by allowing users to access online information – including proprietary e-mail and internal data – on their mobile devices. This sea change has moved beyond the enterprise. Nine out of ten small and medium businesses (SMBs) now enable employees to check email via smartphones and 64% use mobile devices of all classes (includes laptops) for remote computing.14 The explosion of business information on mobile devices means that by 2009 there will be nearly 900 million mobile workers (27% of the global workforce), which combines both enterprise and SMB numbers.15 In the United States, this trend has been extended by the increasingly global nature of North American corporations, who now emphasize ancillary organizations in the developed and developing world. Even in SMB organizations, many American workers must now communicate with far-flung subsidiaries, partners and vendors around the world.

Total Available Market: Interaction Workers
In the past, the majority of the global workforce made things, worked to change one material into another (such as oil drilling), or engaged in financial transactions that had a straightforward and welldefined customer (such as retail selling). “Routine jobs” that do not require workers to master complex tasks, learn new skills or live in ambiguity are increasingly relics of the 20th century.16 These routine jobs no longer drive the engine of the economy. Companies today specialize in core activities. The primary focus of the new workforce is to interact with other companies, customers, and suppliers. Thus, over the last ten years, the force behind our economic engine has moved away from “routine jobs” to “interaction jobs” – 70% of the new jobs created between 1998 and 2004 were in the “interaction” space. 17 (Figure 3) Interaction Workers are expected to do different things than “routine workers.” This is the portion of the economy in which people are hired to communicate to distributed teams, solve complex and ambiguous problems and design products in collaborative groups. Today, the largest segment of the labor pool in the United States – 40% of the workforce – are “Interaction Workers.”

New Jobs in U.S. 1998-2004

30%
70%

Interaction Jobs

Interaction Workers attend many meetings, manage complex schedules, handle many Figure 3: New Jobs in the United States communications per day and make decisions on the Source: US Dept of Labor Stats, McKinsey Analysis, 2005-2007 fly.18 Over half of mobile workers now use non-voice data activities, and want to manipulate information with advanced smartphone capabilities.19

Routine Jobs

Kiha Software

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Interaction Workers are constantly on the move, often multitasking, and interacting in very social situations. The information they seek is the most valuable commodity and keeping them connected is the ultimate goal.20 One might also call this expanding part of the business ecosystem “the meeting economy.” How Work Changed “Interaction Workers” function in an environment that is far from routine, and takes full advantage of the general business shift towards more agile, decentralized business functions that creates a well-traveled, mobiledevice using, problem-solving workforce. Interaction Workers need a mobile device that acts as an assistant. Interaction Workers especially need a smartphone as they are called increasingly to rely upon on complex IT IT & Info systems, fountains of information and Complexity individualized software applications to do their jobs. Business productivity has become a primary driver for the smartphone segment Figure 4 Interaction Worker Environment because the global workforce underwent a comprehensive re-tooling in the last decade. The economic and technology landscape has been reshaped under the force of these 21st century business trends:21 (Figure 4)

Mobility

Interaction Workers in 2008 .

Travel

1) Interaction Workers are increasingly mobile. Interaction Workers rely on broadband wireless to be productive. 2) Distributed teams: Companies must now support a number of branch locations, outsourcing relationships. Interaction Workers are no longer in the traditional headquarters location, and connect with workers in many locations. 3) Applications are becoming increasingly complex. A large organization must now support hundreds if not thousands of unique apps, with disparate data types flowing in and out. Furthermore, new app types like software-as-a-service (SaaS) enable Interaction Workers to access information anywhere, and force IT to recalibrate support.22 In order to compete and succeed in business activity, Interaction Workers in the U.S. have been forced by market pressures to be mobile, and to use mobility to access data, make decisions and respond to communications while traveling. These new work requirements of travel, mobility and IT complexity have been embraced by Interaction Workers (IW) as attributes that make them more nimble, more productive and more knowledgeable. There are two employment scenarios for this worker: A) IW in the Enterprise, and B) IW in Small/Medium Businesses.

Kiha Software

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A) Interaction Workers in the Enterprise Kiha hopes to become a first-tier replacement device for existing smartphones, and without a sufficient installed base, it is difficult to find a critical mass of existing smartphone users. To emphasize the rise of the Interaction Worker and their individualistic use of the smartphone as a tool for productivity and business success, it is useful to note that large enterprises don’t have the kind of mobile device penetration that makes a solid “upgrade” market for smartphones. Enterprises often have restrictive IT policies and work processes in place that make it difficult for Interaction Workers to get the phones they need. Even with the success of RIM, enterprise penetration rates are simply not at the level necessary to really empower Interaction Workers to purchase and use mobile devices. (Figure 5)

Figure 5: Employees Using Mobile Phones by Company Size (Nokia/IDC)

In the United States, mobile devices have only penetrated organizations of an enterprise-class (ie. 5001000+ employees) at between 18% and 21%. This does mean that there remains a large opportunity in the enterprise. However, if Kiha is a replacement device, there is simply not a sufficient install base to necessitate a replacement buy for enterprise buyers. Further impediments for selling into the enterprise include large scale security and infrastructure requirements which necessitate a comprehensive sell to enterprise executives and IT decision-makers.23 Furthermore, the enterprise doesn’t think they need to expand beyond the current install base of Blackberry at the senior management level: 60% of managers in enterprises are now on smartphones, but they feel no need to change their usage or expand their coverage of the Blackberry.24 The increasing spread of the BlackBerry across all layers of the organization opens up a new challenge for smartphone vendors. As analysts note: “It is no longer a mark of seniority, status or prestige - if anyone can get one, where's the deferential differential?”25 Large-scale enterprises are thus moving to specialty and custombuilt applications, increasing their spend in enterprise-specific mobile applications such as mobile device management, CRM, ERP, and company file share systems.26 B) Interaction Workers in SM Businesses The enterprise slowdown in smartphone purchases for personal productivity is in contrast to the continued growth of smartphones in the U.S. SMB market. Existing Interaction Workers with mobile devices used for productivity now exist in large volumes in organizations sized between 1 and 200 employees. In fact, 44% of surveyed SMBs said they plan to invest more in smartphones in the next 2 years.27 The smaller the business – the higher the use of mobile phones for work.28 (See Figure 5 again) SMB activity in smartphones aligns with our findings about Interaction Workers, because nearly three out of four SMBs have at least one or more employees telecommuting; and on average has 7

Kiha Software

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percent of its workforce working from home one or more days per week. In addition, 90% of SMBs reported having one or more employees traveling on business at least one day per week. The SMB workforce is becoming more mobile and that trend is shaping technology spending plans for companies with 500 or fewer employees. Interaction Worker smartphone need and continued growth seems to be in SMBs. 29 CompTIA observes: “There is a sizeable market opportunity in SMB businesses associated with productivity-enhancing solutions in … smart phones and mobile applications.”30 Many small and midsize businesses have found high-value ways to deploy mobile devices – well beyond phone, voicemail, and Web access. In contrast to enterprise organization restrictions, more than half of SMBs allow employees to access applications and business data via mobile devices. As previously observed, 9 out of 10 SMB companies enable employees to check email via mobile devices and 64% use mobile devices for remote computing. In fact, more than half of SMBs are now specifically asking employees to access applications and business data via mobile devices.31 Small businesses also take full advantage of the characteristic elements of the Interaction Worker: they use mobility and information access as weapons to compete in the enterprise space. Smaller companies find that sheer “mobility” has become a key advantage – rather than more traditional goals such as increased sales or revenue.32 Yet these traditional goals are on the horizon – 31% of companies with a bigger-than-average wireless data and network investment report that mobility yields increased sales or revenue, compared to just 17% of firms with a below-average wireless network deployment. In other words, greater usage leads to greater returns.33 However, the SMB market is a varied and hard-to-understand market, and the road to reaching the particular business needs of this segment is littered with broken business models. Instead, the data here demonstrates that any business seeking to sell a new smartphone device must keep in mind that those who purchase their own devices tend to work for smaller organizations, and thus have more power in their device purchase and their use of a device for personal productivity. It is thus vital to note that in selling smartphones to SMB Interaction Workers themselves, we do not necessarily need to sell to SMB businesses.

Go to Market Considerations: Individuals Purchase Smartphones
The change in workplace dynamics has also changed who is buying the smartphone. Although corporate purchasing at the SMB level continues to increase, IDC points out that the largest volume of smartphone devices will be purchased by individuals.34 Mobile workers are increasingly willing to pay – out of their own pocket – for these types of advanced features on “converged” devices. Kiha must sell to individuals, because regardless of whether a smartphone is used for productivity in an enterprise or if it is used within a smaller organization, the smartphone sale is made to individual buyers. The fact of the “individual” purchase also changes the dynamic of the mobile device sale, and the way devices are positioned and acquired.35

Kiha Software

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Task automation, enterprise resource planning or supply chain management is no longer the point of business technology purchases made by this group. Yet because of the familiarity of Interaction Workers with customized and highly complex IT solutions, it is impossible to succeed with a “standard” one-size-fits-all solution set. As McKinsey notes, the “Interaction Worker” pool is both the largest growth sector in our economy, yet it is also the least commoditized, and the hardest to understand or to manage. 36 This makes it difficult to sell off-the-shelf technology to Interaction Workers. Today, individuals are buying smartphones – the IT department be damned.37 Increasingly, the corporate firewall has become a minor impediment for individuals who buy the phones and devices they want, and decides whether or not they will sync their work information officially, or in many cases, unofficially. Interaction Workers move nimbly between enterprise-class organizations and small companies, so the particular focus on a corporate environment is less important to our sale than a focus on usage and individualistic preference within the smartphone domain. Understanding this user behavior is of paramount importance. Kiha plans to target those who would find a next generation smartphone device most useful, and would also be the most likely to purchase the device themselves.

Target Market: Mobile Worker Segments
Usage patterns are varied within the large and expanding group of North American “Interaction Workers.” There exist a number of sub-segments that use technology in a limited fashion, along with segments that use technology but are uncomfortable or unfamiliar with advanced mobile device features. These segments – that have been named such terms as “Inexperienced Experimenters,” “Connected but Hassled,” “Indifferents” and even “Off the Network (by choice)” – constitute 60% of the American Interaction Worker category. 38 These non-mobile-using or non technical workers are not Kiha’s customer for our first release. (Figure 6) The remaining 40% of the “Interaction Worker” category can be grouped into “elite tech user” segments who own multiple mobile devices, are relatively young, and have much disposable income. The top tier targets here are categorized as “Tech Omnivores” and “Productivity Pros.” Second tier targets are “Connectors,” “Mobile Veterans” and “SMS Addicts.”39

Kiha Software

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These elite groups of mobile-savvy Interaction Workers are the closest near-term target market for a Kiha smartphone. The first closest opportunity is the mobile tech aficionados who use online content extensively – a group also known as “Tech Omnivores.” The second closest opportunity are the “Productivity Pros” – a segment of Interaction Workers who use their mobile device as a primary professional asset. Tech Omnivores and Productivity Pros are top-tier targets for Kiha.40

Typology of Interaction Workers
“Information & Communication Tech Users – Elite Tech User” segments only

Percentage of U.S. Interaction Workers

Median Age

Avg # of Devices

Tech Omnivores Productivity Pros Connectors Mobile Veterans SMS Addicts
(PEW Internet & American Life Project, May 7, 2007)

8% 8% 7% 7% 10%

28 40 38 40 32

6 4.3 5 4.1 3.9

A Typology of Information and Communication Technology Users

The next target segments can be found in a remaining set of customers who regularly use mobile devices for work, but are not as “addicted” or “entranced” by mobile productivity. Together, these customers constitute 32% of American Interaction Workers. Although they are not as heavy users of mobile data and services as Tech Omnivores or Productivity Pros, these latter segments do tend to all be heavy, pragmatic tech adopters – they use gadgets to keep up with social networks or be productive at work, using mobile devices for texting, communication, e-mail, and online data access.41

Kiha Software

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Top Target Segments: Tech Omnivores, Productivity Pros Tech Omnivores own an average of 6 technology devices, which they use voraciously for e-mail communication, participation in online communities both at work and home. They blog and they retrieve, process, and publish a lot of work information. Members of this group are confident in their ability to manage the flow of electronic information. Indeed, their smartphones are at the center of how they connect to their friends and express themselves to the world. Most Tech Omnivores are in their late twenties and early thirties. Nearly all have high-speed connections at home and work. Tech Omnivores are Web 2.0 devotees: 82% of Tech Omnivores have undertaken at least some usergenerated content activity, from posting online comments to remixing online content or blogging. They are engaged with online content for both work and pleasure, and their mobile devices keep them constantly connected. Tech Omnivores tend to have both a Blackberry (or 2) along with another couple smartphones, like the iPhone or a Windows Mobile device. Seventy percent of this group is male. Wages and disposable income are very high for the Tech Omnivore segment: 41% earn over $75K / year. This is the highest income for any segment except for Connectors.42 Productivity Pros are older than Tech Omnivores, and they don’t have as much fun with mobility. Instead, they emphasize the use of digital gadgets for professional advancement: they use mobility to get them information they need, when they need it. Productivity Pros are strong believers that Internet information and mobile devices give them a competitive edge – they get ahead in their jobs and in family life and in overall personal productivity by being mobile, and by staying connected. Productivity Pros also like the communicative benefits to information technology; 81% say their mobile devices help a lot in keeping in touch with family and friends (versus a 59% average). Their use of laptop computers is 20 percentage points higher than the average American worker, and fully 94% bought their own mobile device. Over half of them already go online with their phone (59%). Productivity Pros also have highly positive views on how the internet helps them with their lives: 83% agree that information technology helps them be more productive (average response is only 33%). The Productivity Pro is a prime example of an Interaction Worker seeking to improve their own productivity and performance in communication-intensive environments, so technology that they buy must have a personal dimension. 43 They want technology to complement rather than replace them. The technology of choice for must provide real personal productivity value, like the Blackberry does today.44 In fact, this task-oriented approach to information technology crowds out deep participation in the online commons or user-generated content. In fact, only 29% go online “just for fun.” So they don’t really produce much user-generated content at the present time. (If UGC had proven work or productivity benefits, they would embrace these online technologies as well.) Productivity enhancers are consumers and users of business information, not generators of social blarney. They are somewhat older than “Tech Omnivores” and the Productivity Pros are the most likely to have a college degree of all the segments (47% have a BA/BS). This group is just as likely to be male as to be female: 50% are male, 50% female. Wages are high in this segment: 37% earn over $75K / year.45

Kiha Software

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Second-Tier Target Segments
Connectors are 7% of the American “Interaction Worker” population. They tend to be as old as Productivity Pros, but are not as devoted to productivity on their mobile devices. In fact, they usually have a few less digital devices than Tech Omnivores or Productivity Pros. Nonetheless, Connectors rate above most Americans on the number of mobile devices and participation in online activities for work and pleasure. Fully 93% go online on the typical day. However, this group really emphasizes tools that enable both one-to-one and one-to-many communications. Some 57% have used instant messaging, and a fifth (22%) uses it on a typical day. Half have used the text messaging capability on their cell phones. Tech Omnivores are online more and blog more, but it is worth noting that 15% of Connectors have their own blogs and 24% have their own web pages, figures that are twice the 46 average (and well above the Productivity Pros). Connectors also buy their own devices that help them connect with other people and engage with coworkers, family, and friends (65% have self-purchased laptop computers – twice the American average). Connectors are a little more likely to be female, and they can purchase laptops and high-end mobile devices because their wages are the highest of any group: 44% earn over $75K / year. Mobile Veterans may have once been Productivity Pros, but they have now become a less productive, less positive segment. They are also 8% of the Interaction Worker population, and they are the same age (late 30s, early 40s). Most are well-educated, financially comfortable men who have bought nearly every generation of mobile device for the past 10 years. Just one fifth (20%) of Mobile Veterans think that online information make them more productive anymore; this is less than a third of the figures recorded for Tech Omnivores and Connectors. This may be because they cannot always get to the information they require for work, and they often create complex workarounds. Today, few of these Mobile Veterans like the mobile devices they use for work. Although they have laptops (92%) and are always online with their broadband connections (90%), their use of the Internet is a worrisome necessity to them rather than an embrace of productive pleasure. Although they value Internet connectivity – 89% pass free time online – they don’t embrace new mobile devices anymore, and just 1/3 of Mobile Veterans would find it hard to give up their current mobile phone. SMS Addicts are the 10% of the Interaction Worker group that are strongly attached to their mobile phones for personal and professional connections. They are the second wave of younger technology adopters who use mobile devices primarily for texting, communication and entertainment. Although many do go online regularly, they are absolutely wedded to their mobile devices. SMS Addict group members have cell phones that are chock full of features, from text messaging to gaming: 88% have a cell phone that can play a game, 72% surf the Net from their phones, and 94% send and receive text messages on their phones. More than half (55%) would find it very hard to do without their phones. This segment often “grows” into the Connector group as they take on increasing personal and work responsibilities. The really dedicated members of this group become Tech Omnivores. But SMS Addicts do not really view information technology and mobility as enhancing their productivity or personal efficiency. They do not personally purchase their own laptops (only 33% do) and do not go online (only 53% on average) from their desktop or laptop computers. Yet they like how technology connects them to colleagues and friends (74%) This relatively young (median age is 32) group has a slight majority of men (52%) and sizable percentages of African Americans (21%) and English-speaking Hispanics (14%). This group is the poorest and least educated of our mobile-savvy segments. Only 19% have a college degree, and only 21% earn better than $75K / year.

Kiha Software

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Product Category: Information Assistant
Mobile Device Functions Interaction Workers tend to segment their use of mobile device functions into three areas: communication, information and entertainment.47 (Figure 7) As can be seen in the diagram to the right, the target segments we’ve examined can be categorized into these functional categories with ease – with the exception of the Tech Omnivores (who buy and use many devices for many purposes). Workers in the “Connectors” Figure 7: Mobile Device Functions & Target Segments Source: Kiha Analysis, Diagram Concept from MikeMace.com segment communicate with colleagues, vendors, and friends – and this includes voice, texting, and e-mail modes of communication. The “SMS Addicts” also communicate, but they predominantly view their usage of a device as entertainmentfocused and ancillary activities such as game-playing, music and video is important to this segment. Finally, “Productivity Pros” want to receive, parse, and respond to information on their mobile devices. Kiha User Interviews with a diverse cross-section of smartphone users – including many Interaction Workers – provide validation for the fact that although many mobile devices attempt to deliver the “basics” of all functional areas, most users predominantly emphasize one type of function. For example, although a Blackberry Curve includes an MP3 player and a Web browser, “Connectors” use the device for communication. “SMS Addicts” emphasize entertainment, and thus use Sidekicks or purchase a separate iPod. “Productivity Pros,” “Mobile Veterans,” and “Tech Omnivores” would like to use Information features. Functional Use – Target Segments The top two segments of “Tech Omnivores” and “Productivity Pros” both emphasize Information activities on their mobile devices, as do “Mobile Veterans”, as seen in the Functional Use charts (Next Page – Figures 8, 9, 10, 11, 12)

Kiha Software

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Functional Use by Interaction Worker Segment
Communication Information Entertainment Other

Source: Kiha User Interviews, Ned Hayes – April, May, June 2008

Tech Omnivores

Productivity Pros

Connectors

Mobile Veterans

SMS Addicts

Figure 8, 9, 10, 11, 12 Functional Use by Interaction Segment
Source: Kiha Analysis, User Interviews, April, May, June 2008

Kiha Software

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The Missing Function – Information Today, there are a number of functions that exist on smartphones to serve customers interested in Communication. There are also a number of features provided in the Entertainment area. However, the only truly Informationfocused features are old-school hold-overs from the Windows folder environment, e-mail filing hierarchies or online searching facilities. There are no current devices that are specifically targeted at delivering value in the “Information” quadrant. (Figure 13)

Figure 13 Sample Device Functions on Smartphones Today
Source: Kiha Analysis, Diagram Concept from MikeMace.com

In the past 24-36 months, the Communication and Entertainment functional categories have had numerous device deliveries. Today, there are many communication-focused devices, from basic mobile voice phones to more complex devices that put various communication modes all in a single place, much like the iPhone and the RIM Blackberry. In fact, one could even argue that the Communication functional area is an overpopulated domain, which would explain many of the device die-offs in an overpopulated ecosystem serving a defined and mature market with a variety of messaging and communication options. There are also a variety of sub-segments in the entertainment area, ranging from gameplayers like the GameBoy and PSP to the iPod’s domination of the media market and the Sidekick’s text-messaging crossover between communication and entertainment.48 Nokia smartphones also deliver heavy Entertainment functions (Nokia attempted to capitalize on this success with the failed NGage). Both Communication and Entertainment are well established functional categories with known leaders (Figure 14). Figure 14: Mobile Devices Deliveries By Function
Source: Kiha Analysis, MikeMace.com

Kiha Software

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The Information function, however, has not been well served since the demise of the non-phone version of the Palm and the traditional Windows Mobile PocketPC. A smartphone device that provides powerfully effective information management may be a very valuable “mark of seniority, status or prestige” for targeted Interaction Workers and provide the marked “deferential differential” required for the success of a new device.49 As the Kiha User Interviews demonstrate, Productivity Pros live in a constant flood of Information processing, and Mobile Veterans would like to be effective with information as well. Both of these segments have a great and pressing need for better information parsing and availability. Other segments – Tech Omnivores and Connectors – need better solutions in Information as well. Yet in 2008-2009, no device is focused on this area as a primary value. There have been several classes of device that have lived on the border between communication and information management: the Palm Treo, SonyEricsson p900 line, and touchscreen Windows Mobile products. Each of these “smartphone” devices have touch screens and a lot of information management features, but also attempt to deliver robust e-mail.50 As of 2008, each of these devices is being outsold in the Interaction Worker area by the much more communication-specialized RIM Blackberry line. Only the iPhone, among the newer devices, succeeds in being both an information presentation tool and a communication tool, yet information collection and presentation works on the iPhone only in terms of Web-browsed information and Web-siloed information (Traffic, Weather, the like). Even the upcoming iPhone 3G does not deliver comprehensive Information functions for management of PIM data, and delivers nothing in office document management, syncing of field notes or other vital information workflows.51 Information needs are not met by the current generation of smartphone devices. Early PDAs did specifically target information gathering, collation, analysis and some limited publication features, but the device features were extremely limited, and the market fell apart. Palm and Microsoft – early leaders in this nascent market – have now moved on to the communication functions of mobile devices.52 As a result, information manager innovation has ceased. Today, Interaction Workers who want Information solutions must invent incredible workarounds to find the siloed and information they need and manage that information to be effective both personally and professionally. Kiha’s user interviews have included discussions with business-driven “Productivity Pros” like Martin and Peter, who log into online apps like Salesforce.com thru their mobile device to capture information, while our user interviews with home-driven “Productivity Pros” like Christine and Ian demonstrate the use of a combination of paper workflows and online sites to find the information these users need.53 These frustrating and broken workflows are how Productivity Pros turn into Mobile Veterans.

Kiha Software

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Market Opportunity: Total Market, Penetration Rates, Revenue
Kiha plans to deliver essential value in the “Information” quadrant for the Tech Omnivore, Productive Pros, Connector, Mobile Veterans and SMS Addict segments. Instead of delivering a broadly defined device that is “all things to all users,” Kiha will deliver a very specific tool that meets well articulated information consumption and processing needs in the smartphone workflow. The Market Opportunity section currently contains a “bottoms-up” (customer-centric) outline of the available market opportunity, both in terms of installed customer base and in terms of revenue potential. Note that this analysis does not yet include a “top-down” analysis of the overall smartphone market and what percentage of the growing market Kiha hopes to take. This approach to market segmentation is in line with recommended practices for an innovative version 1.0 product without clearly defined competitors and without an existing pool of customers. (Note that Kiha’s upcoming Product Requirements Document outlines the precise feature set required for any smartphone device to meet the needs of these demanding Interaction Worker segments.) Workforce Segmentation The entire workforce in the United States, as outlined by U.S. Census is approximately 152 M in 2008. According to McKinsey’s analysis of new and emerging job types, Interaction Workers constitute 40% of this workforce, which is 60.8 M individuals. Of workers that fit this broad definition, 60% apparently do not purchase or use technology in productive ways to facilitate their workflows and/or do not conduct their meetings with the benefit of smartphone or mobile devices as primary productive or personal tools.54 In brief, over 36 M of these IW workers are considered “non-technical” for our purposes. There are thus approximately 24 M individuals who are viable target customers. Our smartphone user typology helps to divide this large pool by function and segment, and each of these segments breaks into about 8% to 10% of the U.S. working population – forming groups that constitute between 4M and 6M potential customers.55 Cross-Check on Segmentation The approximate sizing of this large category of potential customers can be validated by reference to the U.S. Dept of Labor studies of Knowledge Workers (many of whom are also Interaction Workers). It is a given that in order for an individual to purchase a smartphone themselves, they need to have both a workflow / communication pain point (a broken workflow) and sufficient disposable income to allow them to make a purchase. As a cross-check, the Dept of Labor’s 2007 Cross-Industry analysis demonstrated that there were approximately 23 M individuals earning greater than $60,000 / year in these technology-intensive employment categories: senior management, business/finance, senior medical professionals (MDs, etc),

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computer industry, legal and research/dev in the physical and biological sciences. This cross-check is valuable as a further proof point of the existence and viability of a sufficiently large target market for our product offering.

Information Needs within the Segments Kiha is delivering an information-centric smartphone. If we therefore refine our focus to customer workflows that emphasize information consumption and processing, we can deliver a device and system that is precisely aimed at real customer needs. Not all customers need information to the same degree. So if we only target the customers within that overall 24M who use /process information on their mobile phones, we can derive down a first tier target total group of 5.94M. The slicing of our target down by only information-centric users is a conservative approach to market segmentation, but one that emphasizes Kiha’s unique value proposition.

Kiha as an Upgrade Purchase Kiha has also endorsed the idea that we will be a smartphone upgrade purchase for our first release, rather than a first purchase device. This assumption is based on current market trends and customer familiarity with the smartphone as a product category within our first ship timeframe. The upgrade purchase necessitates conversion of users from their existing smartphone. With this as a given, analysis of customer satisfaction rates and dissatisfaction rates with existing smartphone provides crucial insight to potential buyers of the Kiha device and system. It is also a useful constraint to limit the analysis of customer issues to focus on corporate users only – as these customers are the most likely to be Interaction Workers and to fit our Tech Omnivore and Productive Pro “top tier” segments.

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Dissatisfaction Rates with Existing Smartphones ChangeWave analyzed customer satisfaction rates in 2008, and found that up to 70% of Palm users were “dissatisfied” or “highly dissatisfied” with their current smartphone, and other smartphone users had gradually lower dissatisfaction rates, until we reach the iPhone, which has the highest satisfaction rates of any existing smartphone.56 This research cannot be applied point blank to our segments, as the research was not targeted specifically at Interaction Workers and the sample set contains consumer and enterprise segments that are not within the Kiha market set. However, some basic knowledge about the space does assist in parsing the market. Tech Omnivores generally buy the most up-todate device, and most of them own an Apple iPhone. Most Productive Pros operate their business workflow on a Blackberry device.57 Other segments also generally prefer one kind or class of device over another. If we apply this ChangeWave Research (specific to each type of phone or device class) to our segments, we can therefore elect to target ONLY those individual Interaction Workers in our segments, with significant information processing needs, and who are dissatisfied with their current smartphone.

Upgrade Cycles Further clarity on the market segments that we can reliably target can be found in upgrade cycles. IDC and Canalys studies demonstrate that 80% of users who describe themselves as “Tech Omnivores” upgrade a phone on average once every 12 months, while only 50% of “Productive Pros” upgrade annually, and

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65% of Connectors are on this annual upgrade cycle. (Only 15% and 25% of the other segments upgrade annually.)58 A conservative assumption is that Kiha targets only users who do upgrade annually. This narrows the market further, so that we target only workers in our segments who are: A) Information Needy B) Dissatisfied with Current Smartphone C) Upgrade Annually

Market Penetration Rates A tight focus on current informationheavy users dissatisfied with their smartphones, who need a new upgrade will allow Kiha to deliver a highly focused solution and spend our marketing budget with clear objectives. Because of this narrow focus on a defined sub-segment of the overall smartphone market, we can reliably project a relatively high penetration rate of 50% (just within this sub-segmented group). Using this projected penetration rate, in our top two target segments, Kiha can expect to get 186K Tech Omnivores, and 242K Product Pros with our first release. If all segments buy at expected rates, we should have over 600K units nationwide in our first year. If we target more narrowly to specific sub-segments or to a specific region, less penetration and less unit sales would obviously be expected.

Revenue Smartphones are a high-margin item within the mobile ecosystem. Current estimates of Blackberry per unit profits range between $50200 per unit, while Helio managed to record ARPU of $100 per user during its tenure (customer acquisition costs were, unfortunately, out of par with their ARPU revenue).59 Given these average market numbers, it is reasonable to expect that Kiha will be able to sustain an average per-unit-profit of $150. Revenue projections based on our market penetration estimates can provide for up to $64M in profit in just our top two segments in the first release. This estimate does not include other possible revenue streams such as software-as-services fees, enterprise server sales, data revenue, carrier shared revenues or any other possible revenue.

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DRAFT – MORE TO COME FOR THIS PAGE

Competition
Going Forward: iPhone Has Momentum Among Interaction Workers planning to buy a new smart phone in the next 90 days, better than one-in-three (35%) say they'll purchase an Apple iPhone - a whopping 12-point jump in planned purchases since January 2008. RIM (29%) comes in second - down 3-points from previously, while Palm (3%) has taken yet another big hit, falling 5-points. The Apple uptick may be at least partially attributable to the recent flurry of announcements regarding the iPhone's Software Development Kit. A total of 10% of respondents say this new development has made them More Likely to buy an iPhone in the future. However, based upon the quickly evolving RIM vs. Apple competitive landscape - and the fact that both companies have high customer satisfaction ratings - the likelihood of Google's new smartphone software competing against either the Blackberry or Apple iPhone operating systems seems farfetched at this point. Rather, the Android's potential niche market would appear to lie within a handful of second tier players such as HTC. But with top-rated smart phone manufacturers RIM and Apple sucking up all the oxygen in this extraordinarily competitive market, the current survey suggests that Google's entry into the space will be anything but easy. In addition to the RIM vs. Apple battle, there is also a two-horse race among cell phone providers - with Verizon (VZ) (31%; up 1-pt) and AT&T (T) (29%; up 1-pt) jockeying for the top spot in current market share. In terms of planned buying going forward, AT&T (28%; up 3-pts) appears to be getting a bump-up based upon Apple's recent flurry of announcements. When Apple planned buying goes up among consumers, so does AT&T by virtue of their exclusive carrier agreement with Apple. Verizon (22%), on the other hand, shows a 1-pt uptick in planned buying. Consumer and business users are increasingly dissatisfied with phone platforms that have not evolved to meet current Web-application needs, as can be seen in the accompanying ChangeWave “Dissatisfaction

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Chart”. Palm and Nokia suffer by comparison to newer smartphone platforms such as the iPhone. Note however that Android and the Palm Pre are not yet accounted for in this ranking.

The leading players – Blackberry and the iPhone – have a combined total of 62% of the US smartphone market as of the last calendar year (Q207 thru Q208). Apple’s market share is rapidly expanding. Yet our interviews with customers demonstrate that Kiha has an opportunity specifically in “information management” on the smartphone. Neither of these companies are adequately fulfilling small business and pro-consumer information management needs.

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Go to Market – Strategies and Channel Approaches
A variety of strategies are still being evaluated for taking our product to market.

HIGH-LEVEL STRATEGIES
Option 1: Free Web Client, Upsell Device Stagger our delivery of clients: Deliver early web-based (free) datamining solution to build market awareness, to get users, to build a base, a brand, a message, and refine our product. (This helps if we deliver additional devices later on, or different clients -- ie. a desktop client, an UMPC, car GPS, etc)   Solve part of the problem (for free), test solution, refine offering Launch “closed” device that delivers all datamining features, plus more:

1. Premium device delivers ALL of the datamining features BUILT-IN 2. PLUS instant syncing, location capabilities, etc 3. Brand and Message are consistent: Device is an upsell

Option 2: Complete Device Solution to Smaller Market Deliver complete solution (for pay) to small sub-segment – ie. California first… 1. Test and refine solution on smaller scale before broad delivery 2. Go US nationwide (and global) later on Option 3: Mobile Clients and Upsell Premium Device  Multiple Clients: Deliver sub-set of services for “lower end” devices o Location Services o Mobile Syncing for personal information (gMail, gCal, iCal, OpenID, etc) Deliver premium device with ALL the features o Datamining / Semantic Intelligence o Enterprise Connectivity

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Option 4: Premium Device with free mobile service Reverse staggered delivery. Premium device is delivered BEFORE online service, and online service is used to upsell lagards on buying the device. Possiblity is great that online service would take some time to develop its own user base, and we might not want this to happen at all. 1. Deliver premium device 2. Deliver online service later to build out market, base, and brand Option 5: Premium Device Goes Global Not Recommended as Strategy 1. Deliver premium device nationwide and go BIG first 2. Deliver for “Prosumer” and "Consumer" customers first 3. Go after Productivity / Enterprise customer later

CHANNEL APPROACHES
Potential sales channels for Kiha fall into three categories. The first is an indirect strategy driving sales through either traditional Wireless Carriers or Value Added Resellers (VAR’s). The second way to drive Kiha product and services sales is through carriers. The third possibility would drive more directly into a VAR channel. All these approaches have strengths and weaknesses that I will highlight in each section. This is a cursory analysis at best. At this point we can either do a deeper dive into all of the available channels or we can prioritize and focus on a subset of options. Indirect Channels Leverage other people’s sales and support infrastructure. The obvious benefit here is taking advantage of the Carrier or VAR’s sales and support organizations. The Carrier model is better understood so I have spent more time evaluating the VAR approach. Below, I’ve described three VAR’s in the market today. Not only do you get the benefit of their infrastructure, but you get their customer relationships and industry expertise. You can fill their pipeline with your products and services and get to market quickly. The downside is prioritizing your product and services with the VAR. A considerable amount of time, energy and money must be spent to keep Kiha products “top of mind” with the VAR sales people. This will require a sales organization consisting of VAR channel managers and industry/segment Evangelists. VAR Channel Managers carry quotas specific to a particular VAR or VARs and they can be measured on both unit volume and margin. The Evangelists carry quota related to their industry or segment (Legal, Real Estate).

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Carrier model Align with one or more carriers, submit to their certification process and work with their distribution and sales models. Training for the carrier sales teams and marketing dollar support for in store promotions and spiffs as well as advertising to drive consumer traffic. From Lamar’s discussions with device manufacturers it sounds like Samsung and others maintain their own device sales force. T-Mobile maintains an enterprise sales force that compliments their retail store sales channel. To get “enterprise” or “national” account support you can request information and you will be contacted by a T-Mobile business sales person. Value Added Reseller (VAR) model There are a number of VAR’s who will perform channel roles from fulfillment all the way to end to end VAR services. Three examples are provided. Next step would be a deep dive into each of their capabilities and limitations.  Brightpoint, Inc Brightpoint Web site $4.3B B to B device wholesaler. They provide distribution services to second and third tier mobile retailers. (Carrier stores, major retail chains and other businesses large enough to purchase direct from the mfg. are excluded) I do not believe this model is optimized for enterprise sales, but I will ask them how they would support sales into corporate environments. Enterprise Mobile EM Web Site - Watertown, MA distributor provides end to end mobile solutions to corporations. Augments corporate IT organizations and allows for the deployment of mobile solutions that comply with corporate standards.

For the Enterprise  GTSI GTSI Web Site – Distributor to Federal state and local government agencies. GTSI is a trusted supplier to government agencies. OEM’s pay for the experience selling into the agencies and compliances with government procurement rules and regulations. GTSI was the first Distributor to gain government approval to sell RIM BlackBerry devices to agencies.

Other Potential Channel Models These models are not preferred as ideal for our device model, our customers, or our potential market segments. However, these are other available models:

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Direct Channel Develop Kiha channels to provide sales and support directly to businesses and consumers. In this model Kiha makes the investment to build their own Enterprise and Prosumer sales and support organization. This strategy would require a transactional website designed to support B to B and B to C customers. The sales organization would need to scale from an Inside Telesales organization to a sophisticated Outside Enterprise sales team. The support organization can be Kiha employees or outsourced. The number one benefit that drives organizations to a direct model is control of their own destiny. All of the experience and learning from the sales organization is fed directly back into the company and you do not have to compete for mind share with your sales people. In this model Kiha owns the relationship with the end user. In the indirect model you are paying to access a VAR’s relationships they’ve developed with their customers. The direct model allows the company to intimately understand the needs of their customers and to quickly make adjustments to products and strategies as necessary. The downside is the cost to build and maintain a direct sales organization. Telesales organizations can be a highly leveraged asset, but they still have considerable operating expense associated with them. Enterprise sales organizations are expensive and the sales cycles are typically eight to twenty-four months. Time and money are needed to develop the trusted relationships necessary to win large corporate deals. The payoff can be worth it in the case of long term agreements or winning a position on the corporate standards lists. Enterprise model Kiha would recruit top Enterprise sales and sales management talent. In addition, it is accepted practice that these sales people are supported by Pre-sales Engineers or Solutions Architects. These teams of sales and product experts would be focused on selected Enterprise accounts and given the time and resources necessary to win the business. These are complex sales and require a considerable amount of support from Kiha management and Product Development. Telesales model Many companies are leveraging the Telesales model today. Customers have become accustomed to webinars and email campaigns. They expect a high degree of professionalism from their telesales reps and expect them to efficiently guide them into the right solution. They expect to be able to fulfill their order over the web and handle any service and support issues the same way. The Telesales model provides a number of potential benefits. Productivity can be tracked closely through metrics and the use of a CRM tool like Salesforce.com. The team can quickly pivot from one market to the next as trends are identified. The team can be located in a favorable economic environment where facilities costs are lower and there is a plentiful population of educated sales candidates. Today, companies locate their Telesales organizations in locations such as Coeur d’Alene, Idaho, Richland, WA and Salt Lake City, UT.

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Additional Channels These are additional "blue sky" channels that may or may not be suitable for reaching our customers.  Amazon.com – they can serve as a sales channel, a partner and a source for fulfillment globally Kiha can work directly with the Consumer Electronics team to sell Kiha products and services through the CE store at Amazon.com. There is another opportunity to work with the Amazon Anywhere team to tie into their mobile initiatives. Costco – the can serve as a distribution channel through their warehouses and their website. There may be additional opportunity to work with their business members. This approach may require custom work. Facebook.com – work with the Facebook business development and product development teams to create a compelling offer for higher education. Universities, Colleges, Junior Colleges, Community Colleges. Community sales – develop an agent bases sales organization focused on: PTA & School organizations

 

REMAINDER OF DOCUMENT UNDER REVISION OUTLINE OF REMAINDER OF DOCUMENT Competitive Matrix o Blackberry RIM o iPhone o Symbian / Nokia o Other… Kiha Position in the Market Ecosystem Product Value and Pricing o o o Comparative Value of Product Pricing Analysis - Projected Price Point Billing Relationship with Customer

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END NOTES
1

IBM Institute for Business Value analysis based on Deutsche Bank Global Markets Research on Nokia. October 19, 2007. As seen in “Go mobile, grow” report from IBM.
2

CTIA Statistics, CTIA Semi-Annual Wireless Industry Survey. As reported in Forbes.com. June 16, 2008 http://www.forbes.com/home/2008/06/15/cellphone-addict-iphone-tech-wireless08-cx_wt0616addict.html
3

Global Mobile Market Hit 289 Million Devices in Q1. (ABI Research 2008) ChannelWeb Report 4-25-08

4

Information Economy Report 2007-2008: Science and Technology for Development - The New Paradigm of ICT United Nations, United Nations Conference on Trade and Development. Released in February 2008.
5

Worldwide Mobile Phone 2008 -2012 Forecast and Analysis: Continued Growth IDC and IBM Institute for Business Value analysis based on IDC Document #211441, March 2008. As seen in “Go mobile, grow” IBM report.
6

Dataquest Insight: Market Share for Mobile Devices, 1Q08. Gartner May 28, 2008 Data shows comparatively lackluster sales in mature markets like North America, where sales totaled 41.9 million, an increase of just 2.4 percent, and Western Europe, which experienced a sharp decline of 16.4 percent. It was the first drop in Western Europe since Gartner, an information technology research and advisory company, began tracking mobile device sales in 2001.
7

In 2008, we are faced with the possibility that the majority of consumers will assume they can receive a phone (or any mobile device) for “free” as long as they have a relationship with a carrier. Blackberry initially bucked this trend by emphasizing enterprise value and making large-volume sales to businesses that placed a value on security and productivity. In recent months, this value has eroded as Blackberry is beginning to chase the prosumer and consumer markets with products like the Pearl and a touch-screen clamshell that may ship next year. Apple also pushed against the commodization pressure, by creating an exclusive premium category with the iPhone and emphasizing a direct-from-Apple purchase route. However, with the iPhone 3G, the price reductions and AT&T activation plans have begun to commoditize the value of this premium and AT&T activation plans have begun to commoditize the value of this premium product as well.
8

Go mobile, grow. IBM Institute for Business Value 21 May 2008 (Quoted in IBM Study Finds Consumers Want More Control and Choice on Mobile Web) http://www-03.ibm.com/press/us/en/pressrelease/24291.wss “To take advantage of the opportunities offered by the mobile Internet, the study says many MDMs may need to transform from device-driven to servicedriven. This may require changes in marketing and brand perception, partnership strategies, content delivery and management, as well as revenue models…. Handset sales have reached saturation point in emerging markets therefore compelling MDMs to move to higher end devices that enable more services. This could bring a double boost to earnings and revenue as it raises the average device price point and provides MDMs a cross sell opportunity to high margin services.”
9

Worldwide Mobile Phone 2007–2011 Forecast and Analysis IDC May 2007 http://www.idc.com/getdoc.jsp?containerId=206583
10

Worldwide Mobile Phone 2007 -2011 Forecast Update IDC and IBM Institute for Business Value analysis based September 2007. As seen in “Go mobile, grow” IBM report. Also see In-Stat: Worldwide Smartphone Market to Grow More Than 30 Percent Each Year Through 2012 CIO.com Nov 14, 2007 Worldwide, smartphone shipments jumped 60% in the last three months of 2007 over same period in 2006. http://www.cio.com/article/155001/In_Stat_Worldwide_Smartphone_Market_to_Grow_More_Than_Percent_Each_Year_Thr ough_/1
11

Dialing up the killer app for mobile Internet. Susquehanna Financial Group Report on Google Android. November 6, 2007.

12

This is 11.5% of the market for that time period. Blackberry’s Quest: Fend Off the iPhone (NY Times Technology Section, April 27, 2008) Article cites: Market Share: Smartphones, Worldwide, 4Q07 and 2007 Gartner March 2008.
13

This was 7.5% of the market during that time period, according to Gartner. Market Share: Smartphones, Worldwide, 4Q07 Gartner. March 2008

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14

Research Report: Mobility in Small and Midsize Companies Oct 2007 – CMP Technology bMighty.com

15

Demonstrating the Business Value of Mobile Device Management in the Enterprise. IDC Study, Sponsored by Nokia. Stephen D. Drake. October 2006.
16

The Next Revolution in Interactions McKinsey Quarterly 2005 Number 4 The Next Revolution in Interactions McKinsey Quarterly 2005 Number 4 The Next Revolution in Interactions McKinsey Quarterly 2005 Number 4

17

18

19

Mobile Access to Data and Information PEW Internet & American Life Project March 5, 2008 "When asked how hard it would be to give up a specific technology, respondents are now most likely to say the cellphone would be most difficult to do without, followed by the Internet, TV, and landline telephone," the report said. "This represents a sharp reversal in how people viewed these technologies in 2002," when the landline telephone was the favorite technology, he said. About 10% have watched videos, while 58% have sent or received text messages. Nineteen percent have used the devices for email or to access the Internet. The study appears to confirm that text messaging is important for younger technology users. Sixty percent of those aged 18-30 send or receive text messages on a typical day, compared with 32% for those in the 30-49 age group and 14% in the 50-64 age bracket.
20

Engaging mobile experiences Adobe Systems, 2006. Matt Millar Optimizing Users And Applications In A Mobile World October 2007 Forrester Consulting / Riverbed Optimizing Users And Applications In A Mobile World October 2007 Forrester Consulting / Riverbed See the Kiha Wiki: http://linux.kiha.local/index.php5/Mobile_Device_Management

21

22

23

24

Mobile Business Application Usage to Surge by 2009, Driving Need for Device Management BNet.com Business Wire – Mformation Technologies in partnership with independent research firm Coleman Parkes. October 2007. http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445
25

Who really gains from iPhone - Apple, BlackBerry or Microsoft? Rob Bamforth. IT Director.com June 16, 2008. http://www.it-director.com/business/content.php?cid=10552
26

Mobile Business Application Usage to Surge by 2009, Driving Need for Device Management BNet.com Business Wire – Mformation Technologies in partnership with independent research firm Coleman Parkes. October 2007. http://findarticles.com/p/articles/mi_m0EIN/is_2007_July_23/ai_n19378445
27

SMB Workforce Goes Mobile, Creating New Opportunities for Technology Sales, CompTIA Research Reveals CompTIA Oct 2007 http://www.comptia.org/pressroom/get_pr.aspx?prid=1288
28

DigiWorld2007: Telecom, Internet, Media - the digital world’s challenges. IDAT Foundation – European forum on the digital world. Book-length report published in 2007.
29

SMB Workforce Goes Mobile, Creating New Opportunities for Technology Sales, CompTIA Research Reveals CompTIA Oct 2007 http://www.comptia.org/pressroom/get_pr.aspx?prid=1288
30

SMB Workforce Goes Mobile, Creating New Opportunities for Technology Sales, CompTIA Research Reveals CompTIA Oct 2007 http://www.comptia.org/pressroom/get_pr.aspx?prid=1288
31

Research Report: Mobility in Small and Midsize Companies Oct 2007 – CMP Technology bMighty.com Research Report: Mobility in Small and Midsize Companies Oct 2007 – CMP Technology bMighty.com

32

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33

Research Report: Mobility in Small and Midsize Companies Oct 2007 – CMP Technology bMighty.com

34

Demonstrating the Business Value of Mobile Device Management in the Enterprise. IDC Study, Sponsored by Nokia. Stephen D. Drake. October 2006.
35

Demonstrating the Business Value of Mobile Device Management in the Enterprise. IDC Study, Sponsored by Nokia. Stephen D. Drake. October 2006. “Converged mobile devices as a whole continue to be driven by individual users buyi ng devices rather than corporate purchases. This becomes a particular thorn in the side of IT management seeking to get a hold of devices that they do not own, control, or may not even know are connected to the corporate network and accessing corporate data. Over the next several years, although corporate purchasing increases, the largest volume of converged mobile devices will be purchased by individuals.”
36

The Next Revolution in Interactions McKinsey Quarterly 2005 Number 4

37

Demonstrating the Business Value of Mobile Device Management in the Enterprise. IDC Study, Sponsored by Nokia. Stephen D. Drake. October 2006. What is a given is that smartphone sales today live or die on the individual purchase decision. RIM was an exception to this mantra, with highly methodical targeting of enterprise-class customers and large volume sales, and one can legitimately argue that both their technology base and their sales model is an artifact of their origin as a pager company. RIM’s current push towards prosumers and consumers emphasizes the importance of the broader market, and the iPhone’s largest success has been selling direct to individuals. (Obviously, this has become a particular thorn in the side of IT management seeking to corral and manage devices that they do not own that are accessing corporate data.) Yet increasingly, the corporate firewall has become a minor impediment for individuals who buy the phones and devices they want, and decides whether or not they will sync their work information officially, or in many cases, unofficially.
38

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
39

Note that throughout our use of this typology, Kiha has changed several of the names of the PEW Typology for greater clarity on work functions and device usage. “Omnivores” has become “Tech Omnivores”, “Lackluster Veterans” has become “Mobile Veterans,” and “Mobile Centrics” has become “SMS Addicts.” A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
40

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
41

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
42

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
43

A Tool to Organize Our Many Organizers (about Scrybe) - New York Times 09/02/2007 http://www.nytimes.com/2007/09/02/technology/circuits/02proto.html
44

A Tool to Organize Our Many Organizers (about Scrybe) - New York Times 09/02/2007 http://www.nytimes.com/2007/09/02/technology/circuits/02proto.html “The nature of work has changed, and so has the technology that matters to businesses,” said James M. Manyika, a senior partner at McKinsey. “You’re not trying to automate the task a human does; you’re trying to complement what the human is doing,” he said.
45

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
46

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)

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47

The Shape of the Smartphone and Mobile Data Markets Mike Mace. Jan 2007 http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.html Also see Kiha User Interviews. http://linux.kiha.local/index.php5/User_Interviews
48

The Shape of the Smartphone and Mobile Data Markets Mike Mace. Jan 2007 http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.html Kiha’s recent User Interview data validates a standard finding for technology products that include elements that ar e mere “check box” items, rather than fully fleshed feature sets. Many products claim to deliver one comprehensive solution, in one device, and few actually deliver functionality in more than one area. Mike Mace, former VP of Product for Palm, calls the 48 “all-in-one-device” category the “zone of death,” as no device has succeeded here in being all things to all users. Such a finding would not be worth mentioning except for the user interest in the neglected area of “Information,” as no mobile devic e today adequately meets the expressed market need.
49

Who really gains from iPhone - Apple, BlackBerry or Microsoft? Rob Bamforth. IT Director.com June 16, 2008. http://www.it-director.com/business/content.php?cid=10552
50

The Shape of the Smartphone and Mobile Data Markets Mike Mace. Jan 2007 http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.html
51

See recent critique of the fact that the iPhone doesn’t even sync the basic “notes” on the device.

52

The Shape of the Smartphone and Mobile Data Markets Mike Mace. Jan 2007 http://mobileopportunity.blogspot.com/2007/01/shape-of-smartphone-and-mobile-data.html
53

Kiha User Interview – Ian, June 08. http://linux.kiha.local/index.php5/User_Interview_22-Ian Kiha User Interview – Christine, June 08. http://linux.kiha.local/index.php5/User_Interview_21-Christine
54

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
55

A Typology of Information and Communication Technology Users (PEW Internet & American Life Project, May 7, 2007 John B. Horrigan, Associate Director for Research)
56

ChangeWave Research 2008

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Dataquest Insight: Market Share for Mobile Devices, 1Q08. Gartner May 28, 2008 Also see: Demonstrating the Business Value of Mobile Device Management in the Enterprise. IDC Study, Sponsored by Nokia. Stephen D. Drake. October 2006.
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Mobile Device Upgrade Strategy – Feb 2008 Search Mobile Computing http://searchmobilecomputing.techtarget.com/generic/0,295582,sid40_gci1298366,00.html
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Helio information at http://en.wikipedia.org/wiki/Helio_%28wireless_carrier%29 At the end of December 2006, Helio announced it had 70,000 customers with an average monthly revenue per user (ARPU) of nearly $100. An estimated 25 percent of those revenues come from data services (Well above the industry average of about 11 percent).[citation needed] On September 21, 2007 EarthLink announced that SK Telecom would be increasing their investment in Helio by $270 million and adjusting ownership positions in the company accordingly, effectively giving operational control to SK Telecom.

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