February 15, 2010 08:30 AM Eastern Time
BARCELONA, Spain -- Consumers say that mobile connectivity in devices connected to the
Internet make their lives richer and more enjoyable, but wireless
carriers and corporations need to collaborate closely to accelerate
widespread availability of embedded mobile devices and services to be
valuable to consumers, according to research from Accenture (NYSE: ACN)
and the GSMA.
"This requires a level of openness at both the device
connection point, where everything plugs in, and at the applications
orchestration level, where information from multiple devices is merged."
Embedded mobile devices are products that are networked via cellular
radio technology embedded in the devices. These devices can range from
e-readers, to cameras, to home appliances.
The surveys queried three groups: early-adopter consumers that own at
least four networked devices and use multiple Internet software
services; high-level managers at companies outside the traditional
mobile industry who are committed to embedded connectivity, and
executives at mobile network operators (MNOs). The purpose of the
research was to assess the embedded wireless market opportunity and the
main barriers to its development. The corporate and MNO research focused
on the automotive, health care, energy markets, and the digital home
segment. .
The early-adopter consumers surveyed anticipate a proliferation of
networked devices and a better life as a result. Seventy-six percent
believe that most of the electronic devices they purchase in the future
will connect to the Internet. The majority agree that these networked
devices will save them time (88 percent), simplify their lives (86
percent), bring them closer to friends and family (82 percent), and make
their lives richer and more enjoyable (82 percent). However, more than
half (54 percent) of the consumer survey respondents believe that
different devices that connect to the Internet do not work together as
well as they should.
According to the survey, a majority of consumers would welcome a single
supplier for billing of networked devices (61 percent), managing their
networked devices (59 percent) and providing customer support (59
percent) and web access to view their network devices (56 percent). Most
(51 percent) would also like to purchase these networked devices and
download applications from a single supplier.
When asked about security and technical support, 77 percent of consumers
said they worry that devices connected to the Internet would expose them
to viruses and other malware, while 76 percent are concerned personal
data could fall into the wrong hands. Half of the respondents (50
percent) think customer support would fail to solve technical problems
as they occur.
"Mobile networks are continuing to evolve beyond being a conduit for
phone calls, to becoming the medium that lets everything talk with
everything - and the key to this transition is embedded devices.
Consumer interest is growing, and we believe that mobile network
operators would be wise to consider moving rapidly and deliberately to
stake out their space in the emerging embedded wireless value chain,"
said Andy Zimmerman, global managing director, mobility, Accenture.
"It is very clear that the opportunity for embedded mobile devices and
services is enormous," said Alex Sinclair, chief technology officer at
the GSMA. "To fully capitalize on this opportunity, it is essential that
mobile and other industry sectors collaborate closely to develop a
robust and dynamic ecosystem that will spur the widespread availability
and adoption of embedded mobile initiatives such as the GSMA's Embedded
Mobile program will play a key role in making this vision a reality."
Consumers cite interest in networked systems for health care,
automobile monitoring, home security, energy management
Early-adopter consumers were also asked their opinions about networked
systems designed to enable caregivers to look after an older person
living alone, manage home security and energy management systems, and
monitor their automobiles. The research found:
-
Sixty-two percent of auto owners, and 57 percent of all consumers
surveyed said they would be interested in embedded mobile systems for
automobiles. These systems could transmit a car's GPS position to a
web site to locate the car in case of theft, or give users access to
automotive performance data including acceleration rates, braking
patterns, engine speed, fuel flow and mileage over a web site, which
drivers could review.
-
Seventy- two percent of all consumers surveyed said they wanted to
learn more about a home energy management system, and 55 percent of
total respondents expressed interest in home security systems with
embedded wireless.
-
When asked about mobile-enabled caregiver systems, 41 percent of
consumers indicated interest, and 72 percent of respondents who
currently provide care for elders indicated interest. Caregiver
systems include devices that connect to one another and
the Internet to monitor a person's vital signs, level of physical
activity, and physical condition, as well as devices that monitor for
safety hazards. These systems enable monitoring via a laptop or a
smart phone, send out "alerts" in case of an emergency and provide
associated voice service that permits instant communication at the
touch of a button.
Corporate innovators are committed to embedded connectivity, but
are struggling with the business model, according to survey
According to the research, a majority (89 percent) of corporate
respondents said that embedded wireless networking technology is
important to their competitive future.
Sixty-three percent of corporate respondents said that the leading
barrier to commercializing their embedded wireless products is finding
the right business model, followed by issues involving standards and
choice of technology platforms (53 percent), and interoperability with
other devices and services from other organizations (52 percent). Almost
70 percent of corporate respondents said they consider MNOs to be
desirable partners as the world migrates from standalone embedded mobile
devices to integrated systems.
One MNO interviewed said that transitioning to a new business model is
challenging because it calls for new ways of thinking and it involves
multiple parties, each of which wants to be compensated but may not wish
to share risks and revenues. Another MNO interviewed said that the lack
of clear standards is impeding the development of systems that require
interoperability, and adds to development costs.
Corporate respondents are seeking support from MNOs on the technical and
commercial side for launching new networked devices and services. They
identified billing (61 percent), device diagnostics (61 percent) and
integrating a device with mobile voice services (59 percent) as the
three most valuable technical resources that an MNO could offer to
support these new services. On the commercial side, corporate
respondents identified tailored pricing plans (67 percent), field
support for installation and maintenance (55 percent), and selling and
marketing devices or services through the operator's sales channel (52
percent) as the leading commercial resources that companies might want
from MNOs, according to those surveyed.
According to the survey, corporate respondents are seeking support from
MNOs on the technical and commercial side for launching new networked
devices and services. They identified billing (61 percent), device
diagnostics (61 percent), and integrating a device with mobile voice
services (59 percent) as the three most valuable technical resources
that an MNO could offer to support these new services. On the commercial
side, corporate respondents said that tailored pricing plans (67
percent), field support for installation and maintenance (55 percent),
and selling and marketing devices or services through the operator's
sales channel (52 percent), are the leading commercial resources that
companies might want from MNOs.
"There is recognition among MNOs, corporate and consumer respondents
that the next big wave of growth will come from systems solutions,"
Zimmerman said. "This requires a level of openness at both the device
connection point, where everything plugs in, and at the applications
orchestration level, where information from multiple devices is merged."
Spotlight on embedded devices at Mobile World Congress
At Mobile World Congress, Accenture will be able to show how the
concepts raised in the research - especially growth in several vertical
markets -- might play out from a consumer's perspective. In the GSMA
Embedded Mobile Zone (7EMZ, App Planet - Hall 7), Accenture will
demonstrate its systems approach that promotes rapid prototyping and
interoperability across devices. Visitors will see live demonstrations
that show how Accenture and companies with whom it is collaborating can
deliver innovative solutions designed to enable its clients to
significantly improve their performance in software product development
and testing across the digital ecosystem.
Methodology
An online consumer survey was conducted of 1,005 early innovator
consumers in 10 countries (the U.S., the United Kingdom, Germany,
France, Italy, Spain, Japan, China, India, and Brazil. Early innovator
consumers are early adopters of Internet services and Internet enabled
devices. To qualify for the survey, these respondents had to own at
least four networked devices, and had to have used four Internet
software services within the last month. To eliminate age and sex bias,
the sample for each country was evenly divided between men and women and
between the 18-to-30 and over-30 age groups.
Telephone interviews were conducted with executives at 12 mobile
networks operators in North America, Europe and Asia.
High level managers -- innovators in companies outside the traditional
mobile industry and are applying network technology to their next
generation of products and services - were also polled. This portion of
the research focused on four vertical markets: automotive, energy,
health care and the digital home. Telephone interviews were conducted
with 65 executives representing the four vertical markets in North
America, Europe, and Asia.
For more information, visit www.accenture.com/.
About Accenture
Accenture is a global management consulting, technology services and
outsourcing company, with more than 176,000 people serving clients in
more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions,
and extensive research on the world's most successful companies,
Accenture collaborates with clients to help them become high-performance
businesses and governments. The company generated net revenues of
US$21.58 billion for the fiscal year ended Aug. 31, 2009. Its home page
is www.accenture.com.