hen will
wireless technology finally take off? Its advantages seem obvious and
compelling -- freedom from physical connections; information access
anytime, anywhere; empowered mobile workers -- yet buyers continue to sit
on the sidelines. Battered by over capacity, enormous wireless
infrastructure costs and slower-than-expected demand, the
telecommunications industry is beset by bankruptcies and plunging stock
prices. After high initial excitement from the market and investors,
device makers and wireless solution providers are now languishing in the
current economic malaise. IT organizations, while intrigued by wireless
possibilities, remain mostly in the early stages of evaluation.
Yet despite outward appearances, wireless technology is
poised for takeoff. Though unsettled, the technologies are basically
sound, and business drivers -- from a growing mobile workforce to
declining device and component costs -- will force companies to
investigate the applicability of wireless technologies to their
businesses. This article examines the factors that will lead to the
acceptance and growth of wireless technology and how enterprise
applications offer the best opportunities to gain immediate value from
wireless solutions
Why Wireless Is Poised for Takeoff
Why hasn't wireless technology taken the corporate
world by storm? Current generation wireless technologies are complex and
unsettled. Few IT professionals have the expertise to independently
implement a project. Stability -- a hallmark of a mature technology -- is
lacking with wireless, making companies understandably reluctant to invest
money in vendors, products and services with questionable viability. Lack
of standards, competing platforms, and heavy dependence on external
consultants and service providers make the selection process difficult and
risk prone. With few bulletproof, out-of-the-box commercial solutions
available, organizations are intimidated by the prospect of putting the
pieces together themselves.
Given these woes, will wireless technology ever live up
to its promise? The answer is a resounding "yes"! Despite the
current bleakness in the telecommunications sector, nothing has occurred
to disprove or undermine wireless technology itself. The technology is
ultimately sound, and the reasons for deploying it remain valid. Unlike
many ERP and CRM implementations, it has not been the subject of any
high-profile project failures. Although there are glitches with the
technology, historically these types of snags get worked out and worked
out rapidly. As the technology improves, so do the applications. And, as
the applications improve, they drive advances in the technology.
Why exactly is wireless technology poised for takeoff?
Consider these top four factors:
- Working wirelessly is inevitable
The workforce is already mobile and growing.
According to one report, in the U.S. alone, mobile workers are expected
to increase from 92 million to 105 million strong by 2006. 1
Rather than stranding these mobile workers, wireless and mobile access
to information connects workers with the data they need to make faster
and more reliable decisions. Armed with tools and information no matter
their location, mobile workers are no longer at a disadvantage compared
to their office-bound peers. Activities and services can be moved to the
locations where they make the most sense, whether it's closer to the
customer, in remote or rural areas, or in transit.
Within the workplace, be it an office or assembly
line, wireless usage is also on the upswing. Wireless networks eliminate
the inconvenience and hassles of laying cables, and are often the only
option where safety, space limitations or moving parts prohibit the use
of more permanent, wired networks.
- Wireless is the technology of choice for up-and-coming generations
Teenagers and students, already addicted to and
proficient in wireless technologies, are the employees of the future.
For them, working wirelessly in their professional lives will be a
natural and expected extension of how they operate in their personal
lives. Vendors of all kinds also have powerful incentives to hook the
"average" person on wireless, putting additional pressure on
enterprises to adopt the technology.
- Lower, and still declining, end-user infrastructure costs
Excluding cellular network buildouts, wireless
infrastructure costs are declining. Enterprise costs for WLAN equipment
are dropping, and Bluetooth chip prices are falling. Handheld device
costs are down or holding even. Although pricing plans have yet to
stabilize for wireless data services, competition should keep these
costs in check for the foreseeable future. As wireless becomes an
attractive, cost-effective option, market penetration will explode.
In developing countries and rural and remote areas,
where it is too expensive to offer wired, landline services, wireless
technology is a boon. Even in industrialized areas of Asia and Western
Europe, wireless technology is an inexpensive alternative to wired
services. Companies and people in these locations have little incentive
to invest in wired products or services that face waning demand.
Combined with GPS and other location tracking
technologies, wireless offers superior monitoring and alert capabilities
at a low cost. Monitoring assets such as cargo in transit, ice making
equipment, or even parts containers on the assembly line is a cheaper
alternative to hiring personnel to perform site visits or daily service
calls.
- Complements and supports the direction of co-existing technologies
Wireless technology makes sense. It complements and
supports the evolution of co-existing technologies. In the past decade,
the technology industry has been moving aggressively toward the concept
of pervasive computing, whether at home, at work, in the car, at the
store or while traveling. The goal is to provide the same access to
systems, applications, data and services from any locale. Wireless
technology not only fosters the idea of pervasive computing, it makes it
possible.
Likewise, the concept of anywhere, anytime access to
data first introduced by the Internet is furthered by wireless
technology. It is great to have 24/7 access to information, but it is
unrealistic to believe that people will remain chained to their desktop
computers at all times. Internet availability, coupled with the
convenience of wireless, brings the 24x7 ideal to fruition.
Lastly, wireless technology extends the value of
collaborative work environments. Tying parties together electronically
overcomes the limitations of traditional communication mechanisms, and
allows them to work together efficiently despite geographic differences.
Customers can interact with vendors. Teachers and students can share
assignments and schedules. Supply chain partners can trade and settle
transactions. Doctors and patients can monitor health. Wireless
technology allows these communications and collaborations to proceed
regardless of physical location, and with maximum convenience for the
user.
Given these four factors, the widespread adoption of
wireless technology is not a question of "if" but a matter of
"when." And as we saw with Internet adoption, once started,
"when" will arrive quickly.
Looking for Wireless Opportunities
With wireless technology ready to take off, smart
companies will position themselves now to ride the wave. Companies that
choose to wait until wireless applications reach the mainstream will lower
their technology risks, but at the cost of missing more significant
business benefits. These benefits include the immediate business value of
a wireless application, the ability to gain competitive advantage through
market leadership and the knowledge and technical expertise to more
quickly capitalize on upcoming technology advances.
When looking for high value wireless opportunities, the
best place to start is enterprise applications. Despite the media's
incessant and misplaced focus on consumer wireless applications, it's
actually boring old enterprise applications that are providing concrete
business benefits. While consumer applications may have allure and flash,
they lack a persuasive value proposition today. Wireless enterprise
applications may be stodgy in comparison, but they contribute real
results.
For most companies, email access is the overwhelming
impetus for investigating wireless technology. It's true that wireless
email access offers obvious productivity gains, especially for traveling
executives who need access to data to make quick decisions, but it isn't
exactly a creative or breakthrough application of wireless technology. The
greatest returns come from finding the right business problem first, then
applying the appropriate wireless solution.
Meeting Business Needs with Wireless Technology
Enterprises of all sizes and types are making a
compelling case for wireless today. What exactly are they doing with the
technology? Excluding personal productivity-enhancing applications such as
e-mail access, most wireless implementations seek to improve or extend
existing mobile processes, or mobilize traditionally stationary ones.
Giving doctors on rounds the ability to look up clinical information in
point-of-care settings improves the healthcare delivery process. Giving
customers the ability to check bank account balances, or make stock
trades, from virtually any location effectively frees these processes from
the ties that formerly bound them to desktop computers or ATM kiosks.
Rather than talk abstractly about the types of process
improvements enabled by wireless technology, let's look at some of the
actual benefits that companies are receiving from their wireless
solutions. These benefits give interested companies an idea of the gains
they can expect using wireless technology and are a starting point for
more ambitious wireless endeavors.
Wireless technology is allowing companies to:
- Improve communications with mobile workers
Perhaps the most obvious and important benefit of
wireless technology is its ability to improve communications between
companies and their mobile workers. Communications improvements are
two-way. Companies can use wireless technology to reach workers no
matter where they roam and to forward information in a timely fashion.
Workers can send information from the field to corporate sites or other
employees. By extending the lines of communication, wireless technology
eliminates or shortens "blackout" periods of unavailability,
improves workers' ability to respond to dynamic situations and allows
them to take advantage of down-time to catch up on messages. Wireless
communications take the form of voice, e-mail and short text messages.
Executives at office retailer, Staples, use wireless devices to send and
receive e-mail from any site. Instead of phoning dispatchers at a call
center, field technicians at Brinks Home Security use a wireless
application to receive work orders and transmit job information directly
from the field. Penske Logistics uses a wireless network to send route
changes and directions back and forth between dispatch centers and fleet
drivers.
Wireless sales tools focus on improving the
productivity and knowledge of salespeople, with the ultimate goal of
pleasing the customer and closing sales. Salespeople use the tool to
become better informed before visiting a customer, brushing up on
account and product data. Visits are more productive, and salespeople
are able to answer customer queries on the spot. The ability to check
inventory, look up past orders, calculate prices and create proposals
allows salespeople to close sales and submit orders during the call.
This fast response locks in sales and prevents competitors from
intervening. Companies like Atlantic Envelope, Brandow Automotive, Fiat
Credit, Celanese Chemicals and Cybex rely on wireless sales applications
to manage leads, research order history, place orders and check
inventory.
- Reduce expensive site visits
Sending personnel to field locations to monitor
equipment, collect data or make adjustments is costly. Dispatchers must
schedule visits and resolve scheduling conflicts. Field visits involve
unproductive travel time; a 10-minute onsite job may waste an hour or
more in travel. Through a combination of telemetry equipment and
wireless networks, companies are able to perform monitoring functions
without sending workers into the field. Some solutions also allow
companies to take corrective or responsive action remotely, with limited
human intervention. Utility companies such as Florida Power & Light
and Brunata-Metrona are using wireless solutions to "read"
electrical and water meters remotely rather than sending workers out to
record usage figures. Packaged Ice, a manufacturer of ice vending
machines, installs wireless equipment on its machines to monitor a range
of conditions, such as open doors or temperature imbalances, and alert
storeowners before damages occur.
- Enhance field service productivity
Field service organizations are highly
process-oriented. Delivering service typically involves a series of
steps, from customer call to invoicing, and multiple parties, from
dispatcher to billing clerk. Wireless technology can introduce
improvements into the field service process by eliminating or combining
steps, thereby increasing the productivity of the entire operation.
Companies like Sears and Honeywell use wireless applications to give
their field workers access to customer and equipment repair history,
increasing the odds that repairs will be concluded in a single visit. By
allowing field workers to calculate and present invoices, and collect
payment on the spot, wireless applications shorten billing cycles and
improve cash flow. Pepsi Bottling Group's wireless solution allows field
workers to update and access parts inventory in real time to ensure that
inventory levels are adequate and to match the right technician with the
right parts to the right job. By relying on electronic work orders
rather than paper ones, Pepsi Bottling has also eliminated manual
processing of over 3 million forms per year.
- Keep tabs on expensive assets
Many valuable assets, from laboratory equipment to
cargo and even expensive drugs, are movable or in transit, making it
difficult for companies to account for and locate them at all times.
These assets are subject to high levels of loss, theft and damage.
Assets that are shipped far distances are often exposed to harsh
environmental conditions that can cause harm. By using a combination of
location and tracking technology (GPS for wide area coverage and local
area networks for in-building or facility coverage) and sensors, tags or
transceivers, companies are able to identify the whereabouts of capital
assets and even monitor their condition remotely. American Airlines uses
wireless applications to locate dollies and equipment on the airport
tarmac. Express Trak LLC safeguards the condition of produce aboard its
refrigerated railroad cars by monitoring temperatures, power
fluctuations and fuel levels and making remote adjustments. Georgia
Pacific uses wireless sensors to track and check the condition of
reusable containers used to deliver fruit and perishables to grocery
stores.
- Make customer interactions faster and more convenient
Across all industries, companies are experimenting
with wireless applications to improve the quality of customer
interactions. Airlines like Northwest and United send alerts of flight
or gate changes to passenger's wireless devices. Similarly, financial
institutions from Fidelity Investments to China Merchants Bank, interact
wirelessly with customers to let them make stock trades, check account
balances and shift funds. Companies like Avis, Hertz and the Venetian
Hotel are bringing check-in and check-out to the customer, performing
transactions anywhere on the premises and avoiding long lines and waits.
Progressive Insurance equips claims adjusters with mobile and wireless
data to expedite claims processing right at accident sites.
- Improve the quality and reliability of complex, "on the
spot" decisions
Many mobile workers have to make complex decisions on
the spot with less than full information. They do not have the luxury of
access to complete background information, and the amount of relevant
information needed to make a sound decision is beyond the recall of even
the brightest individual. Wireless applications can connect these
workers with the information they need to improve the quality and
reliability of decisions. Doctors using UpToDate have full access
to clinical information to research questions and validate diagnoses
while attending to patients. Police organizations across the country,
including the Illinois State Police, rely on wireless access to criminal
justice data and applications to perform background checks, look up
warrants and complete reports right from their patrol cars. Southwest
Gas wirelessly transmits updated maps overnight to trucks parked in the
company lot so that field workers will always have access to up-to-date
information.
- Enhance inventory control
Maintaining and tracking inventory, whether coming
off the assembly line or residing in warehouses or trucks, is a high
overhead activity. Errors are costly -- the wrong items shipped,
restocking charges, dissatisfied customers. Through a combination of bar
code generation and scanning and real-time wireless database updates,
companies are able to tighten their control over inventory. Avon
Products is able to print bar code information and affix it to
merchandise coming off the assembly line by using wireless technology in
its manufacturing operations. McKesson HBOC has improved inventory
counts and control in its warehouses, resulting in more accurate
shipments and fewer customer returns. JC Penney uses a wireless
application to track in-store merchandise more accurately. Pepsi
Bottling Group relies on a wireless application to maintain more
accurate truck-based parts inventory. Penske Logistics tracks incoming
and outgoing freight that passes through its cross docks, which serve as
distribution hubs for its truck fleet, to ensure that the right freight
is loaded onto correct truck.
Additional Wireless Benefits
While space limitations preclude mentioning all of the
benefits of wireless solutions, there are several others that deserve
attention. In brief, wireless technology can help the enterprise:
Wireless applications can help check for and avoid
dangerous interactions or conditions. In the healthcare field, doctors
can use wireless solutions to check for drug interactions and submit
more accurate electronic (rather than illegible, handwritten)
prescriptions to pharmacies.
Enabling salespeople to submit orders wirelessly from
the field speeds billing and collection cycles. Likewise, having field
service technicians tabulate charges, issue invoices and collect payment
gives companies quicker access to funds, results in a lower incidence of
bad debt, and eliminates costly back-end process steps.
- Bypass expensive or inconvenient wiring
Local area wireless networks allow companies to avoid
the expense, inconvenience and distraction of wiring and re-wiring
physical premises. In some environments, such as "clean"
production lines or manufacturing floors, the presence of wires may even
be a hazard. At UPS distribution centers, workers scan and track
packages wirelessly rather than risk snagging cables in moving
equipment.
- Create new products and services
By artfully exploiting wireless technology, companies
are able to create entirely new products and services, resulting in
increased revenues. Progressive Insurance is piloting a new auto
insurance program in which policy premiums are calculated based on
distances driven, a service enabled by wireless tracking technology.
- Exchange information faster and more reliably
Rather than using paper forms to gather field data,
and then manually re-keying the information at headquarters,
organizations can perform "one-stop" data collection in the
field. Wireless applications allow field personnel to electronically
capture and forward data, resulting in speedier access and more accurate
information. Building inspectors in Miami Dade County, Florida, generate
and submit reports from the field, allowing contractors access to
inspection results in hours rather than days.
- Improve safety of workers and populations
Wireless location and monitoring systems not only
keep tabs on tangible assets, they can track workers in hazardous or
remote locations, and the spread of dangerous fires or diseases.
Utilities companies such as Northeast Utilities, equip repair vehicles
with GPS transceivers to track the whereabouts of workers in distant
locations. The Pennsylvania Department of Environmental Protection uses
wireless devices to track the spread of the West Nile Virus throughout
the state. Similarly, firefighters in the Western US use geographic
information software and GPS-enabled wireless devices to digitally map
fires, perform damage assessments, and send data back to the command
center to make tactical firefighting decisions under intense time
pressure.
Conclusion
Companies have two choices. They can wring their hands
and concentrate on what is going wrong in the IT industry and the economy
in general, or they can look at what is going right and try to capitalize
on it. As every business knows, it is foolhardy to simply stand still,
waiting to see what will happen next. Wireless technology is making great
strides, and is bringing concrete, valuable benefits to its adopters.
Companies that get on board now will be able to ride the momentum of an
improving economy and outdistance their more timid competitors. Companies
that wait risk being bypassed.
1. Giusto, Randy, Kevin Burden, Raymond L. Boggs, Merle
Sandler, Travis Glasson, and Stephen D. Drake. U.S. Mobile Worker
Population, Forecast and Analysis, 2002-2006. International Data
Corporation, June 2002.