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From: ptownson@massis.lcs.mit.edu (Patrick A. Townson)
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Subject: Killer Application Myth

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To: ptownson@massis.lcs.mit.edu
From: Mike Murdock <mmurdock@digital.net> (by way of mmurdock@digital.net (M Murdock))
Subject: The Killer Application Myth
Status: R

The Killer Application Myth

With the continuing increase in competition in all telephony markets
the basic transport of a telephone call has become a commodity. Major
players in the long distance market are down to shaving pennies to
differentiate their rates. As a result, most of the marketing
campaigns are now focusing on intangible service aspects such as
quality, customer service, future technology, and customer loyalty.

The local loop has traditionally been a protected monopoly. As the
prices of cellular services decline, and with the impending
introduction of "micro-cellular" PCS services and other alternate 
service providers, competition for local dial tone will inevitably
heat up. 

This increase in competition at all levels is forcing Service
Providers to look for other means to distinguish their services from
the competition. Most turn to providing "Enhanced Services" such as
Voice Mail, Voice Dialing, and Single Number Service in order to
generate additional revenue and customer loyalty. Most of these
Enhanced Services require the provider to make a significant
investment in an integrated Enhanced Services Platform upon which
multiple services can easily be trialed and deployed. In order to
justify the cost of these platforms the providers are searching for
the "Killer Application". That is, the single application which will
generate so much additional usage that it will offset the cost of
installing the Enhanced Services Platform.

The Killer Application is a myth. 

Many Service Providers, in trials, have deployed numerous enhanced
services and received nothing more than a modest response from users.
These services include Voice Activated Dialing, Pager Notification,
Single Number Service, Short Message Service, and others. Customers
have shied away from these offerings for several reasons. Most find
the services difficult to use, particularly when DTMF input is
required. In order to make the Enhanced Service appeal to the
broadest market, many of these services have been endowed with
seemingly endless features, options, and menus. This not only makes
the service confusing but leaves the customer with the feeling that
they are paying for too many features they do not use. The major 
reason, however, for the lack luster response to these services is
basic human nature. People are intrinsically resistant to change, and
in particular, resistant to any service which requires they change
their behavior significantly. 

Each of us use telephony services in a different manner, and have
unique telephony requirements. Before these enhanced services will be
widely accepted they must resolve the above stated impediments. This
means providing the user with the ability to customize the service to
their specific requirements, using a natural human interface, your
voice. 

The "Killer Application" is individual choice with a natural voice
interface.

For one individual the "killer application" may be voice mail with
pager notification, for another it might be a Single Number Service
with Fax Store and Forward, and for another Voice Activated Dialing
with Call Screening. At any point the customer may decide they need to
add Conference Calling to their feature set. If the customer is
required to call a service representative to order this additional
feature it is unlikely they will ever take this step. If, however, the
customer can simply speak "Add Feature" and "Conference" and the
Enhanced Service Platform automatically adds this feature to the
customers current feature list, it is more likely that the service
will be ordered and used. 

This is the concept of "Mass Customization" detailed by Alvin Toffler
in his book The Third Wave. The ability for the consumer to easily
customize their service to meet their individual telecommunications
needs. This requires that the service provider have both a broad range
of features and a natural human interface which is consistent
throughout each of those features. 

Service Providers can no longer afford to look at each feature as an
individual application. They must provide a broad range of features
which when implemented are integrated with the existing features the
customer is using. That is, the individual applications are simply
features of a much larger service, which a customer can easily tailor
to their specific needs at any time and as frequently as required.

The ability for the individual services to be automatically integrated
with the customers existing services is crucial to reducing the
complexity of the service. For instance when a customer sets up a
personal dialing directory for their Voice Activated Dialing service,
and later adds Conference Calling, the new service should use the
existing dialing directory. This would permit the customer to set up
a conference call by speaking the name of the conferencees as they 
would if they were dialing them individually. 

Additionally, the services should always use a common human interface.
Switching between Voice and DTMF input, or even between a female and
male voice for different features is both confusing and frustrating.
Customers have a natural distaste for dealing with computer voice 
systems. Much consideration should be placed in the "scripting" to
ensure that the conversation is as natural as possible. Customers
don't want a computer to annoy them with phrases like "Invalid option
selection, please try again". Its not natural. They would much prefer
a system which responded "Pardon me, I didn't understand what you
said". 

The DTMF pad is a poor interface.

Not only is the DTMF pad difficult to use (especially with a cellular
phone while driving), but more importantly it is not a natural
interface. Voice commands are. The improvements in recent years in
voice recognition technology are sufficient to provide a much more
interactive voice interface. Customers are willing to "suspend
disbelief" and overlook their aversion to dealing with computer
systems when the system has a more natural "conversation" with them. 

In order for customers to generate the additional revenues which
providers are searching for, the services offered must provide value,
and not simply features. Value is derived from the services ability
to simplify a customers communications needs while providing enhanced
services.

The mythical killer application is not an application at all but a
variety of features providing individual choice and flexibility, a
natural easy to use human interface, and seamless integrated 
capabilities. 

Existing enhanced service applications will continue to find limited
success until the user can build there own "killer application". 

---------------------------------------------------------------------
Author: Mike Murdock, (mmurdock@digital.net)
Director of Business Development

Precision Systems, Inc.        A leading provider of interactive
11800 30th Court N.            enhanced services systems and software
St. Petersburg, Fl. 33716      to the telecommunications market.
Phone: 1-813-572-9300						
---------------------------------------------------------------------
(c) Copyright 1995 Precision Systems Inc.





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