“Everything counts in large amounts.”
These Depeche Mode lyrics popped into my head when I read the news from Apple that “more than two billion apps have been downloaded from its revolutionary App Store [and] there are now more than 85,000 apps available to the more than 50 million iPhone and iPod touch customers worldwide and over 125,000 developers in Apple’s iPhone Developer Program.”
Count me among the masses. I bought an iPhone back in July and it is truly an amazing device. I actually use it more to read the Wall Street Journal, watch videos, send emails, and check Twitter updates than for making phone calls. I can even publish new blog postings on Logistics Viewpoints using the WordPress app. Needless to say, my laptop is feeling a bit neglected these days, like that VCR sitting atop my television.
Does Apple’s success with the iPhone and its App Store have any significance to enterprise software vendors, business users, and the logistics industry? Here are some of my takeaways:
- The business executive is the new enterprise. In other words, iPhone apps are the “ERP” for mobile workers, especially business executives who spend more time in planes, trains, and automobiles than in their office. Enterprise apps are designed to power business processes from servers in a data center, while iPhone apps are designed to (em)power people from a device in their hand.
- Crowdsourcing is redefining R&D. Software innovation is no longer constrained to the developers on your payroll; it is open to anyone with the right set of technical skills and creativity. The recently-awarded Netflix Prize is a perfect example of crowdsourcing in action. Netflix offered $1 million to anyone who could develop a better algorithm for making film recommendations. More than 51,000 people from 186 countries participated in the contest. (See Wikipedia entry for more background info on the Netflix Prize, and read “Can You Design an Internal Netflix Prize?” by John Sviokla in HBR for a related commentary).
- iPhone-like apps are the next frontier for software-as-a-service logistics solutions. I wrote about this back in February (“An App Store for Logistics Software”) and over the course of the year I’ve seen continued momentum in this direction. For example, at the MercuryGate user conference a few weeks ago, I met an executive from Blue Grace Logistics who showed me the iPhone app (“BlueGrace Mobile Freight Optimizer”) the company developed. It allows agents and customers to get rate quotes from anywhere via their iPhone (the app is integrated with MercuryGate’s TMS application). One reviewer, who I assume is a Blue Grace agent, posted the following comment: “This app is absolutely tremendous. I can now quote my customers whether I’m at home, in the office, in the car, or even on the golf course.” Another reviewer wrote the following, indicating the next step for this type of app: “Quotes are great, but being able to process a shipment and email the BOL [bill of lading] would make this possibly the most useful app for any supply chain. See what you can do for the next version.”
Interestingly enough, logistics service providers (3PLs), long criticized for being technology laggards, seem to be taking the lead in his area. As my colleague Steve Banker wrote about earlier this year (“The iPhone as a Logistics Visibility Device”), D.W. Morgan developed an iPhone app to power some of its logistics processes. Apple produced a video case study of D.W. Morgan to showcase the iPhone in action (click here to watch the video).
It’s still too early to know what long-term impact (if any) the iPhone and its apps will have on enterprise software and the logistics industry. What I do know is this: you can’t afford to ignore the trends created by the iPhone anymore. Everything counts in large amounts.
Crowdsourcing is getting a lot of buzz, and is one of those concepts that sounds great in theory. IMHO, it is overrated. Here is one article from yesterday’s Forbes: http://www.forbes.com/2009/09/28/crowdsourcing-enterprise-innovation-technology-cio-network-jargonspy.html
Gary,
Thanks for the comment and the link. I don’t think crowdsourcing will replace traditional R&D, just redefine it (I chose my words carefully). Like most things, crowdsourcing is the right approach for some projects, and the wrong approach for others (the basic point of the HBR posting I referenced). Whether its crowds or individuals, the main point I was making is that software innovation is coming from a much broader community than a software vendor’s internal resources.
Adrian
Hey Adrian,
I wasn’t trying to nitpick your specific comments about crowdsourcing, but rather just wanted to add my general perspective on the industry buzz on the topic, at least as far as what I am hearing. I agree that it is always worth considering new approaches for what they might bring, and crowdsourcing lends itself to solving some types of problems better than others. New Internet tools allow for community solutions that didn’t exist before, so some current examination is warranted.
Crowdsourcing, while a recent term as it applies to community-based design, really becomes a question of the wisdom of the crowds, as well as efficient process. Here are some problems described in a Wikipedia article on “wisdom of the crowds”: http://en.wikipedia.org/wiki/Wisdom_of_the_crowd#Problems Yes, I understand the irony that Wikipedia is itself crowdsourced – a great example of a successful crowdsourcing implementation.
Crowds can easily determine the most popular answer, but knowledgeable, thoughtful and innovative answers of the highest quality often come from few individuals. When the solution is complex, a group process can slow things down considerably. I had a discussion just yesterday with a developer who suggested surveying users regarding a new program feature. While never a bad idea, often the time and money spent on market research and focus groups is better spent elsewhere, if someone internally already has the right answer. IF, is the big question, and who has the guts to take a stand on it? Is there leadership that understands the problem, can innovate (or foster innovation), and set clear direction (and know when they have to ask the crowd)? So often users have shown they did not know what they wanted until it was shown to them, then it is an “ahhh” moment. Clear leadership can set course from point A to point B much faster than asking a crowd for directions. Of course, a lot is riding on whether the quality of direction is a good one, and that risk-taking decision is a whole other discussion.
Sometimes it is smart to ask the crowd. Sometimes the crowd will slow you down and lead you astray.
Gary