The miniaturization of technology

Statistics Canada reports that in Q2 2006, for the first time, wireless profits of Canadian telcos surpassed their wireline profits.

I must be dating myself but I remember the days where cell phones were only affordable to the business elite. I also remember the days of pocketfuls of dimes, of long drives disconnected from the office between customer appointments, of the rush to call the office to get the messages left with a receptionist before the end of the business day.

And then came cell phones, they were a huge monstrous affair, weighing well over 2 lbs. Not exactly the type of thing someone would carry around, especially not attached to his or her belt.

Then came e-mail.

I remember the first system my “early-adopter” company went to. We ran Bell Canada’ s Envoy 100 on the “powerful” TRS-80, model 100. We even had acoustic couplers to adapt our computer modems to phones for when we couldn’t plug right into the wall.

How things have changed! ICT is no longer the luxury of just large enterprises. Consumers, not businesses, are driving many of the technological advances. Recent studies show that most SMBs are accelerating technology adoption to attempt to generate an unfair competitive advantage.

But how ubiquitous ICT has become is impacting more than just the amount of loose change we carry in our pockets. It has had a profound impact on business, societal and personal realities.

Miniaturization and its impact on the adoption of technology

We have listed some of the many factors that have impacted ICT adoption:

–Convergence (the I with the C along with some M for media);

–Affordability of devices, connectivity and storage;

–Increase in communication bandwidth;

–Wider wireless coverage;

–Miniaturization.

While originally intended to give the sales person more autonomy, which was expected to generate more face-to-face time with customers, which was expected to generate more revenue, the additional cost (from the enterprise perspective) and the hassle of lugging numerous devices (from the individual’s perspective) has often outweighed the perceived benefits of autonomy and connectivity.

But miniaturization resolved many of the issues. For the road warrior, single multifunctional devices of a convenient weight and size have turned them into essential battle gear. No longer do we contemplate leaving the office without our favourite ICT device.

Single multifunctional devices of convenient costs, perceived critical to enhancing the customer experience, made for a convincing business case for the enterprise. We cannot be competitive without them.

Life with the constant presence of technology on our hip has perils however:

It can lead to a focus on data rather information.

It can be difficult to focus on high value connectivity (deciding who to talk to).

It can be frustrating when not dealing with empowered people.

It can be a serious intrusion of work into personal/family life.

It presents issues of privacy and security.

It highlights the need of data management tools.

It can lead to responsibility shedding.

This technology certainly has had some positive contributions to our lives. These devices can allow us the autonomy, if well managed, to allow for the smooth daily transition from work to leisure through seamless and transparent mobility. They can allow us to telework from any location. They can even be integrated into our personal life (for many of us, they have become our virtual memories, our personal calendars . . .).

If managed properly, they allow impromptu collaborations.

The miniaturization of devices has allowed for the combining of multiple functions in one smaller device. This factor, combined with cost reduction, has inevitably led to a greater penetration of the market. But as we approach market saturation, we must be cognisant of the fact that this trend will lead to the continuation of revenue and margin erosion.

For example, a laptop computer in 1986 cost between $3,500 to $7,000 and weighed more than 14 lbs. Today, it weighs about 2 lbs., but costs as low as $500 reaching a high point of $3,000.

The same can be said of the cellphone, which in 1986 cost between $2,500 to $3,500 and weighed just under 3 lbs. Today, they are super slim, weighing between 4 and 6 ounces and can cost zero to a high point of $400.

With the continuing drop of the size, cost and power consumption of these ICT devices, the trend to multifunctional devices will continue. With new and novel materials of constructions, with new chip technology and nanotechnologies, it should in fact accelerate.

Robert Brulotte is a vice-president at Fox Group of Mount Albert, Ont.

 

 

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Jim Love, Chief Content Officer, IT World Canada

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