Frontier Service Design. We work with you to identify, build and launch new service offerings that create new sources of revenue for your organization and delight customers.

Posts Tagged ‘services’

Cellphone services grab spotlight from product design…

Tuesday, March 31st, 2009

credit http://www.flickr.com/photos/scelera/ Analysts are priming the pump for this week’s CTIA Wireless trade show in Las Vegas by shifting the focus away from handset design and toward innovative programs related to GPS, messaging, games and other services. Research in Motion plans to launch "App World," in response to Apple’s wildly successful "App Store." Not to be outdone, Google has their "Android Marketplace" and Microsoft unveiled their "Windows Marketplace for Mobile" last month.

We can’t wait for handsets, access plans and applications to all be unbundled, giving consumers the ability to buy "best of breed" of each. Can you imagine how different the personal computer market would have been if you could only use Microsoft Word on Dell computers, or if you could only get Verizon broadband access on Gateway computers?

Skype is launching iPhone software that will enable callers to use local wi-fi networks to make free calls to other Skype users, or low-cost (2.1 cents per minute) calls to any other user. In effect, this enables iPhone users to cancel their AT&T access plans (as long as they’re near an open wi-fi hotspot) and enables owners of Apple’s iTouch to make phone calls via wi-fi as long as they add a microphone to their device. (The iTouch has virtually all the features of an iPhone, without the phone

Xerox and others downplay hardware, but push services

Thursday, February 26th, 2009

credit http://www.flickr.com/photos/ianalexandermartin/ Excerpts from an article in the Wall Street Journal…

For decades, Xerox and others built their businesses by pushing companies to buy more office machines and supplying pricey ink and toner. But increasingly these vendors are now advising big customers to reduce their number of machines and find ways to cut printing costs."That sounds like a strange way for a manufacturer to make money," concedes Stephen Cronin, president of Xerox’s global-services business, which reached $3.5 billion in sales last year.

The printing companies want to entice clients to sign up for exclusive contracts, allowing them to replace machines made by rivals and thus provide all printing supplies. In some cases, clients let a single supplier manage the whole system for a monthly fee. The business, known as managed-print services is expected to jump 36% this year to $15.7 billion. In Xerox’ case, more than half of the 1.5 million devices the company currently manages are from other vendors. "Total spending goes down, but my proportion goes up," Mr. Cronin says. Last year, services, including maintenance as well as managed print, contributed $3.5 billion of Xerox’s $17.6 billion in revenue.

Last month, Procter & Gamble Co. agreed to turn over to Xerox its vast fleet of printers and copiers in a multi-year contract valued at more than $100 million. Filippo Passerini, P&G’s chief information officer, says the decision is expected to cut paper usage 40% and costs 20% to 25%. He declined to disclose dollar figures.

Because of their push into services, the hardware makers are increasingly frank about the high costs of printing. Xerox says its research shows that companies spend between 3% and 4% of revenue on producing documents, or $3,400 per employee, so savings can be significant.

From around the Web…

Tuesday, February 24th, 2009

Record Exec Says Music’s Future Is in the Clouds – WSJ.com – Mr. McBride is CEO of Vancouver-based Nettwerk Music Group, which manages Avril Lavigne, Barenaked Ladies and Sarah MacLachlan, among other artists. He said he anticipates that many music lovers will start to access smart-phone apps like Slacker.com’s subscription-radio service.If they can create their own playlist, he says, they are likely to stop buying downloads, since they know they will always be able to retrieve music they want to hear from the cloud, the computer industry term for content and applications stored remotely and accessed over the Internet. “There’s no need to own product,” he said.For $3.99 a month, Slacker subscribers pick favorite artists or songs that will then be played more frequently on a customized radio station. Mr. McBride predicted the smart phone will replace the PC as the control center for media. He said that artists need to “monetize their brands” by selling merchandise and concert tickets through the smart phones.

US Airways Reinstates Free Beverages – WSJ.com – This article points out that sometimes additional "a la carte" charges are just not worth it. In this case, charging passengers for water overshadowed US Airways advances in their on-time, going from last in on-time rankings among major carriers in 2007 to a close second last year. From the article….

Last August, US Airways began charging fliers $2 for bottled water and sodas and $1 for teas and coffees. The move came as airlines confronted sharp increases in fuel costs. Those costs prompted an industrywide shift toward so-called "a la carte" pricing models. But charging for water may have proved to be a step too far. Even as airlines assessed new fees and matched one another on increases last summer, no major carriers followed US Airways’ decision to charge for complimentary beverages.

Japanese Service Prices Point to Deflation – WSJ.com -  A gauge of prices that Japanese firms pay for services dropped to its lowest level in nearly 21 years in January, resurrecting fears that the nation has slipped back into deflation as energy prices fall and demand wanes. Data released Tuesday showed the Bank of Japan’s corporate service price index slid 2.2% from January last year to 92.0, a level unseen since March 1988. The fall came a month after the index fell 2.5% in December.

Can Free Content Boost Your Sales? Yes, It Can – Mashable.com – Interesting post about Monty Python putting up free, high quality content from their archives onto YouTube, and then seeing a 23,000 percent increase in sales of their DVDs and merchandise. When you have a huge body of work, this is a great way to "prime the pump." Unfortunately, it’s a tough way for new artists/producers/musicians to make a living.

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