Mobile data and use is driving major changes to many industries, and the use of mobiles – especially smartphones – will be a growing force over the next decade across the globe.
First, a WSJ article on the growing use of location data. It is not just for telcos anymore: “Auto makers, insurance companies and even shopping malls are experimenting with new ways to use this kind of data.” And as for privacy concerns, would you be willing to give an auto insurer access to your location data for a discount in your rates? Maybe not, but as long as there is no leak or sharing of the data to other parties, and you are not trying to hide something (are you?), then what’s the harm? Given the popularity of apps such as foursquare, many people are willing to grant access to location data for discounts or VIP status.
Of course, you can strike back and demand bargains and other goodies as your mobile gives you access to comparative shopping data. Remember that enhanced market basket margin driven by lost leaders? “Until recently, retailers could reasonably assume that if they just lured shoppers to stores with enticing specials, the customers could be coaxed into buying more profitable stuff, too. Now, marketers must contend with shoppers who can use their smartphones inside stores to check whether the specials are really so special, and if the rest of the merchandise is reasonably priced.” If the customer can delay their gratification for a couple of days (e.g. Amazon Prime), is the retailer going to let them walk out of store?
For consumers, they will or have already realized that the data generated by mobiles has real value, and will demand that value given requires value in return. One variation: how about an online auction site where one can sell their location data to the highest bidder?
For EDWs, one must anticipate the growth of future analytics based on this data. Think about your industry: what value can you get from knowing where your customers are, and how they move about? And what will your organization be willing to pay?