Twitter and Maps – Locating your followers one tweet at a time

Twitter announced the Geotagging API back in August and officially released it by the end of November Twitter applications like Birdfeed, Seesmic Web, Foursquare, Gowalla, Twidroid, Twittelator Pro already support this API.

Three weeks after of the official Geotagging API release I made a quick search looking for applications that use a combination of Twitter and maps. Note that these applications are not necessarily using the Geotagging API. My main interest was to find integrations of twitter and location/maps. SOME of the results are attached to the end of these notes. Note I didn’t try them or endorse here any of those applications. I hope you can leave a comment if you are using any of them.

Looking for answers

After a few days of looking at my word processor’s empty page I remained only with questions (and very few answers). Instead of continuing to look for some insights, let me share with you what I’m trying to understand, may be together we can come up with some logic.

1. If we consider that the reason to put a business, or invest time in development, is to generate revenue, how are those companies going to monetize this map integration?
2. I can understand the business side of collecting information for data mining, but what is the actual added value for a user to see tweets in a map?
3. Twitter makes two things clear. The first is that you can “delete all location data”, and the second is that there is no guarantee the information will be removed from all 3rd party application’s. What about some privacy standards? Are you aware that 3rd parties are storing, using and maybe selling your location? It might be useful to control where employees are twitting from…
4. Asking for business models for applications around twitter is already difficult. Considering the costs of putting a location application, including maps, data transfer and other LBS components, do you have an idea how to monetize this integration?

As I mentioned, I have many other questions. Once you get bored of seeing windows of tweets opening over a map give me a call. May be we can use these features to develop something useful to the users and profitable for the ones investing the efforts.

_________________________________________________________________________________

Some of the Apps that integrates Twitter and Location / Maps

Following are some of the Twitter + maps apps I found. The challenge was to describe them in 140 characters or less and where possible I added the twitter ID of the developers.

Feel free to “cut and tweet”

Continue reading and see the full list of Twitter and Maps app here Read the rest of this entry »

Location Based Services Technology with a Soul –Thanksgiving notes

There is a Rabbi Hillel aphorism that is always in my mind “If I am not for myself, who will be for me? But if I am only for myself, who am I? If not now, when?”

For a year now, we are exchanging ideas about LBS and business models. From my first post I insisted that the reason of putting a business together is to make a profit. Foursquare and Techies Give Back joined forces and elevated the “profit” concept into something more meaningful. They transform profit into Value for their Community.

On December 13th, they’re organizing NY Tech Gives Back on behalf of a non-profit called CampInteractive – which empowers inner-city youth through outdoor activities and tech workshops. It’s a day where people can give back to the community by volunteering and donating.

While there are many ways to get involved, they are looking for sponsors for the foursquare leaderboard to help raise money for the cause. I urge you to contact Simon or Adam at info@techiesgiveback.org to learn the details and how you can help.

Final Notes

Ec3:1 “… Everything has an appointed season, and there is a time for every matter under the heaven…” Spread the word, participate. This is the season to be for others. If not now, when???

Have a Happy Thanksgiving.

Indoor Navigation – The new gold rush? Part-1

The navigation ecosystem is changing rapidly. I’ve mentioned in previous posts the consequences of the commoditization of GPS devices. During the last two weeks, I had the opportunity to read many articles about how the navigation market is changing.

This is a time of WAR.

The New York Times published in October Stops and Starts of GPS Apps “… those portable devices [GARMIN TOMTOM etc] are under attack from a new source: the smartphone, and particularly Apple’s iPhone. The newest version of the iPhone’s operating system supports turn-by-turn navigation …  According to a report from the iSuppli research firm, GPS applications for smartphones are about to explode, growing from 2.5 percent of users today to 10.5 percent in 2013. And half of those will be iPhone owners…”

Even Forbes Magazine refers to this trend in warfare terms Google’s Navigation Bombshell “…Location-based service providers suspect the search giant is working on a free navigation app… Google, which generally gives its software away for free and recoups its investment through advertising, would likely sell ads within the navigation application rather than charge users… In early October, Google decided to use this data for its U.S. maps, ending a licensing agreement with map provider Tele Atlas…The shift is telling because companies like Tele Atlas require partners (such as Google) to pay fees for each person who uses their data…”

Having Google in the market with free navigation applications redefines the battle. Companies will need to be really brave to fight this giant. Without any doubt Google gave a completely new meaning to “The Land of the FREE and the home of the Brave”…

If War is what we are speaking about, Sun Tzu teaches us three valuable lessons. The first is that “…in war, numbers alone confer no advantage…”.  The second is that “…as flowing water avoids the heights and hastens to the lowlands, so an army avoids strength and strikes weakness…”, and the third is that “… those skilled in war subdue the enemy’s army without battle …. They conquer by strategy…”

If this is about strategy, this is my game!

Avoiding the competitor’s strengths and striking at their weaknesses

All (accurate) navigation systems are based on GPS data. If the weakness of GPS receivers is that they need a clear view to the sky to successfully determine location, the strategy is to attack the indoor world. Additionally, the GPS accuracy lies between 50 to 500 feet, the strategy then is to find customers that need higher accuracy (~10 feet). The third, but not the last weakness, is the need for maps. As we saw before, Google has generated large amount of map data, and in general the market is dominated by TeleAtlas and Navteq. The strategy is to navigate to “uncharted territories”.

Redefining the Battleground – Embracing indoor navigation.

A few weeks ago I was approached by an inventor with a (published) patent. The general idea calls for an indoor navigation system that uses no GPS data. His idea is very good and to my judgment relatively easy to implement.

The system automatically detects a signal directly from sensors, without requiring the communication with a central system, data plans, or even cellular communication. These sensors are small pocketsize Bluetooth transceivers. There is no need for pairing as every Bluetooth device’s tag has a unique ID. This ID can be used for locating the tag.

Indoor navigation – A winning strategy that redefines the navigation ecosystem?

There is infinite number of indoor navigation applications. The most intuitive one is a person walking into a mall that wishes to locate a specific store, or a particular aisle in a department store or even a specific item on a shelf! From here, you can apply the same principle to a customer looking for a specific conference room, a particular booth in a tradeshow, a ride in an amusement park, or a known piece of art in a museum. If not for the convenience, do it to save a tree. No more printed maps. Go Green!!!

The advantage of using Bluetooth is that this technology is ubiquitous, it’s implemented everywhere. Additionally, is a low cost, low power technology, and when it’s relatively free of obstruction it can provide a ~2 meter error range. Furthermore, a Bluetooth infrastructure can be used for purposes like remote monitoring and control among others.

The ecosystem is completely redefined. An architect with CAD drawings is now a map provider. Every single facility is now a navigable site. Every big retailer willing to drive customers to specific products is a potential customer (they can “route” them through the sales isles if they want).  Every shopping property management firm is a customer, as well as convention centers organizations or associations like the Global Retail Executive Council.

We have an ecosystem where the traditional navigation giants are not necessarily present, and there is no defined leader (yet-11/09).

The business opportunity – define a new market

Indoor Navigation redefines Location Based Services as we know them today. The first companies to enter this market will be able to define, create, implement and license ($) new standards and applications. Imagine this: I installed an indoor navigation application in my phone/PDA and subsequently downloaded the map of the mall I usually go to. Next week I’ll visit San Francisco, and upon arrival I would like to visit a local shopping center, or use it at the convention I’ll attend. My application will be useful ONLY if the map of that SF mall or convention center is compatible with the one installed in my phone. For sure I’ll NOT install an additional application per site I visit. This is just the tip of the iceberg.

Sounds interesting? Ring a bell? Would you like to exponentiate these ideas?  Maybe invest time AND money?

Give me a call! (And leave your comments).

Two events in the LBS industry I’ll attend and why you can’t miss them

LBS LATAM – The First Location Based Services Conference for Latin America in Miami – 09/17 Miami, FL
Metaplaces – How to Monetize Location Data and Services 09/22-23 San Jose CA

Almost a year ago in my first post, I wrote that Location Based Services are the company’s effort to transform geographical positioning information into valuable and relevant data for a customer, to make a profit. Since then I had the opportunity to talk, work and advise leading companies in the industry regarding new products and services in the LBS arena.

LBS are very similar to other businesses in the sense that in order to succeed you need a solid revenue model and a clear value proposition. Sounds simple; but when approaching the LBS market and trying to understand the dynamics of its Value Chain the troubles begin. Many companies are getting this right and are already making profits. Others try to migrate WEB2.0 applications to the mobile world and discover later that in this environment “Free” is an expensive term. No wonder VCs usually look at maps as a feature and not something to build a whole application around.
Read the rest of this entry »

Location in a Cloud – a Unique Approach to Provide Location-Related Information and Services

In one of my first posts, I noted that one of the main components of the LBS Value Chain is the ability to acquire and transport a user’s location and give access to that data to many service providers. Getting this information is, in many cases, expensive and presents obstacles to online service providers who would like to develop services based on mobile a user’s location. I was looking for the missing link between the mobile and the web world.

While there are many different approaches (and we might present some of those in the future), Xtify, a company based in New York City, caught my attention. They are creating a cloud of location information where authorized service providers can make available services using the location of their subscribers.

As usual, I was more interested in the business perspective of their operation. The following is a synopsis of my conversation with Josh Rochlin, CEO of Xtify.

I want to thank again Josh for his time and kindness to open up his business for us to learn. I believe many will have much to comment and say.
Follow up.

What is the difference between Xtify and other companies providing similar services?
We are currently the only company that is deriving location persistently from mobile devices and then building business rules around it. We source the location directly from the mobile device, rather than through the wireless carriers. This allows us to make location information available on a persistent and affordable basis.
Read the rest of this entry »

GyPSii, Market Approach and Business Models for a Truly Mobile Digital Lifestyle Application

NEW

Listen to the podcast

Download the Podcast

INTRODUCTION:
For a few months I’ve been writing about Location Based Services business models and how to monetize LBS applications, particularly in the newest area of Location Based Social Networks.
I invited a few companies to share their vision and show how they approach this market. I would say it takes leadership and real confidence in your business to open your company strategy for others to learn. It is not surprising that the first company to accept this challenge was GyPSii. They were recently awarded a core patent in mobile social networking, but GyPSii goes beyond the mobile social networking platform, it is a mobile digital lifestyle application.
I had the privilege to share some time with Shane Lennon, GyPSii’s SVP Market Development (Thank you again!). The result of our conversation is summarized in the following text. In my next post I’ll evaluate the interview, add the full interview on podcast, and comment about their market / business approach. In the mean time please leave YOUR comments

Q: Can you please give me a few words about GyPSii, how it started and your perspective of the company?

GyPSii is a global company, unusual for a start-up. The founders are based in Amsterdam. They had a mobile lifestyle vision that’s more than an LBS vision: “I want to capture my world; I want to be able to share with others”. On the technical level, it translates to creating a searchable mobile index of user-generated content based on the actual world. This is different from what you see on Internet today, which is built by companies, indexed on search engines, and driven more from their perspective and less from that of the user.
Read the rest of this entry »

Will Location Based Social Networks be like the restaurant business industry? Check their menu!

After the long weekend pass and I had the opportunity to summarize many of the emails and twitts received during the last weeks, I was surprised to still find new Location Based Social Networks coming to the market… not. This week I added to my List of Location Based Social Networks:  Match2blue, My Adventures, Snikkr , Mizoon, Nulaz , Toai , and Glympse.

I also found a few social networks closing or going through difficult times and struggling to survive. Then I remembered last Friday I was saddened to find one of my regular lunch places out of business. I just entered the Subway next door and had a sandwich. Today I found a “coming soon” sign at the same place.

Is there any parallel? Certainly there are LBSN for many tastes. There are gourmet types of Social Networks, others that appeal the masses, some that serve particular type of people, some are for dating, some are for business, some you need certain hardware to get in, and others that are by invitation only.

The fact is that in both cases the owners invest a considerable amount of money to get in, they dream to have fun and be unique, and in some cases they understand very little about the business model and end loosing all their savings.
Read the rest of this entry »

On the quest for the 13.3 billion dollar Location Based Ecosystem.

It has been a while since my last post. Launching a new product line was a tough and demanding task. Nevertheless the break gave me the time to look through a new perspective at the information I was putting together.

Almost 100 Location Based Social Networks after, we start to see the inevitable: consolidation and closings. More interesting, companies are trying to license the accumulated knowledge, without yet finding an appropriate business model to survive. We are still at the same starting point where developers struggle to understand how to migrate applications from Web2.0 environments to the mobile world.

To be or not to be
If we take a look back to my previous notes, one possible conclusion is that for an isolated company it’s almost impossible to succeed in this market. There are many obstacles that need to be solved even before they can try to implement the excellent idea that they have in mind. How are they going to get the location data? How to approach carriers minimizing fees? How to get information from mobile devices without GPS? How to overcome the difference of data between carriers, or even different handsets? and many other.

The good news is that location services are becoming a must. The question is how can we facilitate the go to market process of a carrier/handset agnostic solution without solving again the same problems other 100 companies already solved.

To aggregate or to facilitate that’s the question
In the beginning it was a map – latitude and longitude (a street map of Miami).
Now we add 5 restaurants in the block and by adding data or content to the map the result is Location Based Information.
Now we add context – 2 are Mexican restaurants, 2 are Italian and 1 is Chinese, all of them offer lunch and all close at 9PM. On top we add collaboration – reviews, recommendations, pictures, experiences, etc. now we have created value. If we can share that value and each one use it according to their needs and giving back to the system, we created Sustainable Location Based Intelligence.
We can extrapolate this to any other type of information; weather, news, traffic, advertising, 411, etc.

Now think of a platform that solves all your development and logistics problems, i.e. handsets OS, carrier fees, mapping interfaces and licenses, etc. In exchange you have to share your data, and benefit from other’s contributions. The key is participation and the challenge is to create an open platform where developers can craft on the fly partnerships, and help in building the functional building block that will put together that 13.3 billion dollar market that everybody is talking about. We can call it a Location Based Democracy.

Think of it as a solar system, where each one is moving in its own orbit, some have 1 or more moons revolving around, and all contribute to the mutual equilibrium. In business terms, creating this ecosystem will allow many companies to make a living, establishing micro-LBS-business around others without worrying about reinventing the wheel again and again rather unleashing the real value of “location base contextual valuable information”.

Give them the help and the technology to build cheap cars, and install toll booths
So why will somebody take the responsibility to create this? In the democracy of location based data somebody has to take the initiative to lead. Nobody wins from the chaos, and I believe it’s in everybody’s interest to keep it a “democracy”. It is a give and take game. So what are you ready to give away and what are the core assets you will keep for your company?
And at the end we come back again to the same question “What is the business model?” Is it revenue sharing? Is it success sharing? What is proper compensation for each party? Where is the money? In this case I’ll say “Take a closer look… It’s all over the map.”

Location Based Social Networks – Building a Framework of Best Practices for Appropriate Business Models that Makes Money

In November I started a list of Location Based Social Networks (LBSN) – and in my first post I wrote “The question is how many of those will be alive next year…” Sadly to say, today (February) I started to update the list with those that are already closing or on their way to close.

My answer then was simple, only those with a solid revenue model and clear value proposition will last. Let’s take a first look on what makes a solid revenue model and services that have clear differentiators.

Profit is the only objective. What is the reason we create a new service or put a company together? The only answer is “TO MAKE MONEY”. Any other reason you may think or find is secondary. The source of that money is your customer. The way to get that money (legally) is by providing them goods, services, and solutions. The products and services are not the objective of the company, they exist only as the conduit to get your customers money by providing them something valuable they need and that keeps them happy.

The Business Model IS the differentiator. I may sound extreme here, but what differentiate services and makes them successful is not technology, but their business model. Take a look at the (now) 80 Location Based Social Networks on my list. I don’t believe there is much technological difference between them. Bottom line, only those that will succeed to generate revenues will survive.

Marketing, Business Dev and Sales (MBDS) are a key part of your Business Model. Review the list of LBSN and continue with the following exercise. Cut and paste the message excerpts from their websites WITHOUT the name of the company. Read the document the day after and try to identify who is who. If you are one of the owners of those companies, I dare you to pass the list through your employees and see if they can pick their own company from the list. Close your eyes and imagine taking a goldfish from the water tank and leaving it on the table. That’s your company without MBDS.

Business Models are NOT cross-market portable. Many of the LBSN base their hopes in implementing successful WEB2.0 business models, ignoring that the WEB and Mobile environments are completely different. Messaging in the WEB is free but mobile text messaging cost money. WEB mail has no charge but pushing your email to your blackberry carries its own costs. Even Voice is free over the web (skype, jaxtr, etc) but that’s far from being the reality in the mobile world. Ignoring this and other differences result on a distorted view of customer acquisition costs and wrong operational expenditures estimations that lead to “…We had an amazing and unique technology but we run out of money…”

There are other components in the framework, and each one of the elements here presented has its own subcategories, questions and connectors. Want more info? Quid pro Quo, leave some feedback of value for me and the other readers (or just pay for it). As you may see blogging has also its own business mode

Location Based Social Networks – Is Privacy Overrated? Rules for a New World

I’ve juggling with the idea of writing about location based social networking privacy issues for many weeks. From any side I tried to approach this issue I remained with more questions than answers.

I considered starting with the Fourth Amendment, even though GPS technology didn’t exist in 1791. Not entering into a legal discussion my first impression is that the emphasis here is on personal security. That’s when I remembered my first digital camera and my wife being terrified to put pictures of our kids on the web. It wasn’t about privacy, but about the reasonable expectancy of keeping our kids secure and avoiding people delving into our lives.

I believe this is the paradox of social networks in general and those based on location in particular. I want to make my information public but at the same time I want to keep the information secured (actually not the information but myself).

Looking over the other side of the table, the value of a social network resides on the information you provide. The lack of privacy is one of the pillars that sustain the business models of many, if not all, social networks. When privacy issues are raised, we usually ask what the companies are doing to protect their customers. Expecting the companies to protect your privacy is like expecting the cat to safeguard the cream; this is the fuel for their business. It’s not the companies that need to protect the information, rather YOU the customer.

I reviewed the privacy policies of more than 20 location based social networks and personal locator devices. I recommend you to do so before you start posting When and Where you are doing your What and with Whom. But if we separate the concepts of Privacy and Security, I don’t think the Location Based Social Networks companies are the problem. Technology is usually neutral, users aren’t.

Personally I don’t mind if a company, in exchange for a service, collects information about my habits, locations, and other details IF before using that information ALL personal identification is completely deleted AND is never used to sell something back to ME. The fact I’m a public person and I share information, is not an invitation to invade my space. My space is on invitation ONLY. Once we agree on this principle, we can start talking about other technological barrier and safeguard such as location acquisition and capture, location notification and accuracy, location information accessibility, location history control, location ownership, etc.

Today as in 1791 Privacy and Safety are really a concern and privacy advocates have a central role in corporate LBS

Without any doubt, the accessibility of GPS technology is leading us to new types of communities and services. People participate in a virtual world without borders; People are part of virtual societies, sometime bigger than the population of many countries. Maybe “We the People” needs to virtually govern ourselves and establish the new social conduct standards for a completely different world.

So, where do you stand?

More on Business Models for GPS navigation devices, Location Based Social Networking and RFID applications

Sundays is usually posting day, today I’ll take a different approach.

I believe one of the most important results in a post is the readers’ comments. They enrich and bring new perspectives to the initial approach. Skipping over those comments and the exchange of ideas is like ordering a banana split and eating only the ice cream.

I would like to refer you to the readers’ contributions on my post on business models for navigation devices combined with social networking. There, new applications were exposed, a few questions remained unanswered (wireless guys, your input please), and there is an amazing exchange of observations on what is Presence Marketing – how to use it combined with Location Based Social Networks, the extension of RFID applications, and Privacy concerns (my next topic).

My remarks on CES and notes on the Privacy Factor on new business models can wait a day or two.

I encourage you to read the comments to the end and most important, leave yours.

I have nothing more to say but THANK YOU!

Press HERE for the post.

Four Marketing Executives on Location Based Technologies

I have the privilege of belonging to MENG, the Marketing Executive Networking Group. MENG is a national network of top-level marketing executives.
Last week I asked four senior marketing executives from the network how Location Based Services and Technologies will affect their practices.
Without more introduction, here are their shots.
…

— CONTINUE READING THIS POST —

Another Location Based Services – Social Networking Business Model – Old meet Web2.0

This article presents an additional business model associated with a Location Based Social Network, this time applied to a mature market – your automobile GPS devices and fleet management.

— CONTINUE READING THIS POST —

My list of Location Based Social Networking sites

I compiled a list of Location Based Social Networks I visited while researching for my previous posts. Per request of many readers I’m posting the list in a separate page.

The general impression I had after putting all of them together in one page, is that many of the LBSN are “me too” applications, and at this point I can’t pinpoint one that present a marketing message with a unique offer, a distinctive value proposition or main differentiators from the others. I included standalone sites, and applications that complement as add-on Social Networks such as Facebook, Twitter, Flicker, YouTube, etc.

The directory is provided as “info only” without recommendations or endorsements. I’ll appreciate though, if you can review the list, and leave your comments.

The page is dated December 20, 2008. It would be interesting to review it in one year time and see if it grew, shrunk or consolidated.

For the list PRESS HERE or press the LBSN Links button in the top menu.

Please leave your comments, and Link/share/quote/ping. For additional posted comments follow this link

Thank you for your support!

Location Based Services Value Chain – Part 3 – Business Models for Location Based Social Networking

From conversations I had with friends and colleagues, I believe this will be the first of a series of “last parts” regarding business models for Mobile Location Based Services.

I’ll assume through this post that you have read the preceding articles (LBS Marketing Concept / Value Chain 1 / Value Chain 2 / Location Based Social Networks 2.5) as many of the keys for further business models discussions reside there.

In my first post I defined the “Location Based Service concept” as the company’s effort to transform geographical positioning information into valuable and relevant data for a customer, to make a profit. The question here is: who is the customer that is willing to pay for that data?

Tim O’Reilly defines in “What is WEB 2.0” Data is the next Intel Inside and he presents a key question: Who owns the data? And I would add, What Data?

In the following Business Model the LBS service provider owns the data. I reviewed many Location Based Social Networking sites and in most cases “some kind” of lack of privacy is the base of their business model. Differently from carrier fee based pushed services (top – down), this model is based on bottom-up. The LBS provider enables a platform for people to interact for free. In this scenario the handset is usually subsidized by the carrier, interested in generating traffic. The free service is now growing in viral mode and at this point the customers should be called by their real function: “data collectors”.

— CONTINUE READING THIS POST —

Location Based Services Value Chain – Part 2.5 – The Case for Location Based Social Networking

Why 2.5? Part 3 will address some specific business models. But before the “HOW” I would like to address some factors and analyze the “WHY” there is a case for LBSN.

We are witnessing a new evolution in the online world. The “WHO are you” and “WHAT are you doing” is rapidly evolving to “Who are you” “What are you doing” “WHEN are you doing” and “WHERE are you”. We can fairly say that the WWW became the WWWW

The When and Where pose many questions, most of them associated with privacy. For example:

1- How is the location captured: Automatic by the system, Others on demand, You on demand
2- What type of location notification: Descriptive text (i.e. “At gym”, “at Starbucks”), area in a map, zip code, exact address, a point in a map
3- How is the sharing: Reciprocal, one way, only on authorization
4- Location History: Movement patterns, Tracking, Monitoring
5- Location Ownership: Resale and/or disclose of the information

But the same concerns for privacy were raised before we published our family photos and videos to the world. The fact is that the accessibility of technology creates communities and services. The simplification of web page building facilitated the rise of communities like FaceBook, MySpace, LinkedIN and others. The commoditization and accessibility to digital cameras, camcorders, and webcams has paved the way to communities like YouTube and Flicker or services like SnapFish. GPS devices became a commodity, and soon GPS in a cellular phone will be as common as a camera. As a matter of fact, you can get your position without a GPS (see Google maps) and Location Based Services can simply be added as a feature to mass social networks like Facebook. Location Based Social Networking is not a question of IF, it’s a question of WHEN and the when is NOW.

— CONTINUE READING THIS POST —

Location Based Services Value Chain – Part 2

Have you read PART 1? I’ll strongly recommend reading part 1 first.

As mentioned in part 1 the main components in the LBS Value Chain are: the location based service provider or developer (LBS APP), the data carrier (a cellular provider like T-Mobile, AT&T, etc), and the customer.

As Part 3 will talk about Web 2.0 strategies for Location Based Services and particularly for Location Based Social Networking, we need to completely understand every piece of the puzzle. Otherwise your model will be leaking money (pouring in some cases). Moreover understanding the players and trends will allow you to craft long term solid strategies.

A more comprehensive value chain shall include:

Location Based Services complete Value Chain by Claudio Schapsis

MAPS: Most LBS applications utilize maps; therefore their cost shall be added to the equation. The map market can be considered a duopoly dominated by Navteq and Teleatlas.

Consider: those companies were acquired recently by Nokia and TomTom.

Ask: How can they affect your business by controlling the LBS market. Can your application change the map provider easily? Do they cover all the areas you plan to service? Can you grow to other markets (internationally)? Does your international strategy fit your provider’s existing maps? What are their plans of expansion? How are you getting charged? What layers of information are included in that charge? The list of questions doesn’t end here and is closely related on the type of service you are planning to offer.

MAP INTERFACES: If you want to use map providers like Navteq and TeleAtlas you will need to pay a premium price to companies that provide interfaces to those maps – such as Autodesk, Decarta, etc. Your applications can also be based on Google maps (TeleAtlas data) or Microsoft maps (Navteq data) API’s.

…Read the rest of the post

Location Based Services Value Chain – Part 1

As I mentioned in my previous post, the main components in this chain are the LBS service provider or developer (LBS APP), the data carrier (a mobile operator like T-Mobile, AT&T, etc), and the customer. We can identify 3 basic types of relationships.

In the first one the LBS APP provides an application to the carrier and the carrier provides the service to their customers for a fee – or free of charge to encourage the use of data services. For example companies like Loopt are offering their LBS social networking services through carriers like Verizon Wireless, applications like Autodesk family finder, and others.

Location Based Services Value Chain 1

The main challenge for the LBS APP is to find one of the mobile operators willing to buy and offer the application through their network. Once the service is running, all the promotion, billing and collection is performed by the mobile operator. The LBS APP revenues can be smaller but the risks are reduced as the investment in infrastructure and operations are minimal. On the other hand, the ownership of the customer usually remains with the mobile operator, minimizing the LBS APP possibility to up-sale other products.

…Read the rest of the post

First post – Marketing and the Location Based Services Concept

Back in business school, we learned about “The Marketing Concept” as the total company effort to satisfy customer needs at a profit.

Location based services are booming and as marketing professionals, we have real challenges on how to integrate these new technologies to our tool set together with Wikis, Blogs, Social Networks, Podcasts, etc. Are you ready for new ideas like Location Based Advertising?

From a business perspective, I would define the “Location Based Service concept” as the company’s effort to transform geographical positioning information into valuable and relevant data for a customer, to make a profit.

The Location Based Service concept, like the marketing concept has 3 components

1- Get Geographical positioning information. This can be accomplished in many ways. The obvious way is a GPS device through cellular network, IP address mapping, user input, etc. (will address this in future posts)

2- Transform this data into valuable information. Your kids are calling for a pickup at midnight; would you consider the same situation knowing they are at a friend house or wandering
…Read the rest of the post