|
|
| Looking back |
January 9, 2006 |
By Peter Wolchak
In 2001 Backbone billed itself as the Strength of E-Business. That was a good tag line because back then e-business was still an emerging segment of Canadian business operations. As time progressed, though, e-business simply became the way almost all business is conducted and we changed our tag line to Business Technology Lifestyle, a statement that more accurately describes the current workplace climate.
But it’s interesting to note that many fundamental issues Backbone discussed five years ago are still with us today, so we look back to our inaugural year to see what has changed and what has not.
Mobile ads still a conundrum
Mobile technology was already a huge success story five years ago and that meant, of course, that the advertising and marketing industries wanted to figure out how to communicate with mobile consumers.
Backbone wrote in January 2001: “Internet users hate receiving unsolicited advertisements by e-mail, so how might people react to ads arriving over their Web-enabled organizers or cellphones?”
It’s an excellent question, and one advertisers and marketers still have not solved. If they had — if there was a way to pump ads to your cellphone or BlackBerry without making you furious — they’d be doing it.
Our cellphones are not filled with spam largely because the Canadian Wireless Telecommunication Association and Canada’s wireless providers require that all mobile marketing be opt-in: if you don’t give permission for marketers to communicate with you, they can’t. If you hate spam, say a thank-you to the CWTA and the wireless providers.
Wireless Internet a success
CIBC investment analyst Steve Kahn told Backbone in January 2001 that “If I had to make a bet on the wireless sector, I would probably bet on companies like Handspring or Palm to enter openly into the wireless Internet space. They’re basically going to turn their PDAs into wireless devices.”
Good bet, Mr. Kahn. That’s exactly what happened.
Handspring created the revolutionary Treo smartphone and was then bought by Palm. Today, Treos are outpacing Palm’s non-wireless organizers, with Treo sales up 160 per cent this quarter compared to the previous year. And of course RIM devices are extremely popular, with the number of BlackBerry subscribers in Q4 climbing by 470,000 to approximately 2.51 million, a 135 per cent increase over the previous fiscal year.
But some wireless features still coming
A September 2001 article was headlined “The wireless revolution is coming. Really.” It opened by stating “Despite the proliferation of cellphones and personal digital assistants (PDAs), very few handheld devices are being used for Internet access and even fewer are conduits for mobile e-commerce.”
That is half true today, as we are still waiting for the advanced mobile-commerce goodies we were promised. For example, the article speculated that “we may soon be able to use cellphones to pay for small transactions, like buying a drink from a vending machine.”
But if Backbone polled its readers today, it is a fair bet that not one has paid for a purchase using a cellphone, even though the technology exists to do this today. In fact, HP promoted this idea in its 2001 Cooltown showcase at its Canadian headquarters. Despite that, consumers carrying cellphones but no cash are still going thirsty today.
That’s not to say there has not been great progress in the mobile arena. Notably, location-based services have taken off and 3G networks are finally arriving with Bell Canada’s launch of its EV-DO next-generation network. The fastest wireless network in Canada, EV-DO delivers near-desktop speeds to mobile devices, and the implications of that for businesses and consumers will play out over the next number of years.
Vo IP only hitting now Early in 2001 Backbone predicted that “In a decade or so, Internet Protocol technology will be everywhere and businesses and consumers will be gabbing with each other over data lines.” That was a conservative estimate, as 2005 saw Voice over IP (Vo IP) really enter the public consciousness, although it is still not mainstream.
In fact, Vo IP providers interviewed for a July 2005 Backbone story still cited basic understanding of Vo IP as the most significant factor holding back business implementation.
“The biggest challenge is education, in terms of the value proposition: why this is important to customers and how it can improve their lives. People do not yet understand all of the cool things they can do,” said Vonage CEO Jeffrey Citron.
It’s interesting to note that the advice offered by consulting firm Cap Gemini Ernst & Young in 2001 is identical to what companies are told today: determine specifically how Vo IP will benefit your business before diving in, look at how many telecommuters you employ, and plan for the future, as one day Vo IP will replace traditional phone systems.
Grocery meltdown
At one time online grocery stores were the darling of the e-com boom, and it seemed like such a smart idea: busy people hit the Web to order their groceries and the next day a tidy little truck delivers the goods.
In November 2001 there were a number of players in the Canadian market but even then Backbone noted “which firms will endure remains to be seen.”
Indeed. Here is a status report on the companies listed in that 2001 article:
Grocery Gateway, http://www.grocerygateway.com
The most successful Canadian operation, Grocery Gateway is still in business, although it is now a subsidiary of the Longo’s grocery chain.
Peachtree Networks, http://www.peachtree.ca
Peachtree set itself up as a service company that would help small grocery stores get online. It didn’t work: the Web site no longer exists although the domain is still registered through to February 2006.
Quick.com
In 2001, Quick rented a 32,000 square-foot facility in Richmond, B .C., and listed more than 5,500 items for sale. Today the Web site is gone, although again the domain seems to still be registered.
Telegrocer, http://www.telegrocer.com
A rare survivor, Telegrocer is still in business, servicing Ottawa and the Greater Toronto Area.
One service not yet launched when the original article was written was Egrocer.ca. Run by the deep-pocketed Loblaw group of companies this one seemed destined for success.
However, go to http://www.egrocer.ca today and you are greeted with this announcement:
“Please note that as of September 23rd, 2005 Egrocer has permanently stopped its shopping and delivery service. Egrocer’s staff and management team would sincerely like to thank all of our customers for their patronage, over the past 5 years.”
|
|
|
| Top 300 Issue |
 
|
| PICK20 Web 2.0 Awards |
 |
|
Presented by
|
 |
|
| Gadget of the Week (Canadian) |
|
Good tote, easier on the Earth
Targus EcoSmart Reflection Messenger Bag
Targus makes four cases using materials that are less toxic, have nickel-free metal and recyclable plastic hardware, and each can be returned to Targus for recycling.
more>>
|
| Gadget of the Week (Japanese) |
Sounds of Japan
Why record just the visual when you can capture the sounds as well.
more>> |
| Backblog RSS feed |
Click to subscribe  |
|
sponsored by 
