Is Pay-by-Phone on the horizon?
By Mike Yoder, Chief Operating Officer of Advanced Information Systems
Yes, and to a limited extent it’s already here. Using your smart phone to pay for purchases at retail stores has been talked about for years and over the last few years has become a reality in Japan and Europe. But in the US this technology has been slow to launch. Here I’ll discuss how soon we can expect to see pay-by-phone in the US and highlight a few companies that aren’t waiting and have already developed applications that allow users to pay with their smart phones.
Early Adapters
Earlier this year Starbucks launched a limited pay by phone program in the US. Customers who install the Starbucks Mobile Card iPhone application on their iPhones can simply swipe their phone over barcode readers at select stores to pay for their transactions. The payment is deducted from the consumers Starbucks card which can be loaded with funds from a credit card from the mobile application or from the Starbucks website.
Bling Nation is a startup that is offering the Bling Tag, a microchip you simply stick to the back of your phone and swipe to instantly pay for purchases. Once again you load your account with money from your bank, credit card or PayPal account and purchases are deducted from your Bling Nation account.
With half a billion dollars in mobile payments projected by PayPal users alone in 2010, it’s easy to see why PayPal would be an early adopter of this technology. PayPal’s Mobile now allows customers to transfer money between each other’s accounts by simply “bumping” their phones together.
Financial Institutions getting on board
Visa & Bank of America are scheduled to roll out a Pay-by-Phone program in New York this month. This solution incorporates the need for a special chip installed into the user’s phone that emits radio signals which transfers payment information from the phone to the point-of-sale device in stores. Visa has plans to expand this program to other banking institutions later this year.
A partnership between AT&T, Verizon, T-Mobile, Discover Financial Services and American Express was formed earlier this year to work towards bringing this technology to the masses. But with big names such as these you can expect progress to be slow.
Paying with Credits v/s Financial payments
Two types of payments seem to be developing in this area. The early adaptors are companies that essentially allow you to pay with what are really credits. In the case of Starbucks and Bling Nation, you load your account by transferring money from your credit card. Purchases then are deducted from your Starbucks or Blink Nation account not directly from your bank or credit card account.
The second types of payments are true financial transactions that involve deducting funds directly from your bank account or credit card account. These transactions require a coordinated effort by financial institutions, retailers and the mobile phone developers. These are just now starting to arrive in the US market and involve the addition of smart chips installed in the phone. These chips are fairly cheap ($10) and could easily become a standard feature on all smart phones once these pilot programs prove a consumer demand exist.
What to Expect
I anticipate we will continue to see an increase in the Starbucks and Bling Nation type of solutions but they will be limited by the number of retailers who they can sign up to process their transactions. We’ll see an explosion of pay-by-phone usage once the financial institutions and phone companies complete their pilot programs and work toward a nationwide deployment.
Because the Pay-by-phone model brings new players to the table for Financial transactions, the credit card giants Visa & MasterCard are not too excited. The last thing they want to see are other large corporations tapping into the 2.4 trillion dollars US credit card transactions business that they largely own. But as is often the case with industry leaders, they will now have to respond by making their own offering in this space because others are starting to do it without them and cutting them out completely. In the end this is good news for the consumer.
Avoid embarrassing Facebook incidents by using this easy tip
By Mike Yoder, Chief Operating Officer of Advanced Information Systems
With the entire hubbub about Facebook’s complicated security settings it’s easy to miss some of the great features that are available through Facebook’ security settings. One feature that is often overlooked is the ability to hide wall post from certain people or groups. When creating a new post on your wall, simply click on the security button and select the Customize menu item.
A Custom Privacy window will be displayed which will allow you to pick groups or specific people you want to share this post with OR hide this post from.
This is a feature that has been available for quite awhile, but two recent experiences with friends showed me how helpful it could be if people used it.
First case; a friend of mine is a construction contractor on the Outer Banks of North Carolina where I lived for a number of years. He posted on his Facebook wall comments and photos of his morning surfing session along with his plans for getting more hurricane generated surf during the week. Less than 15 minutes later, a customer had posted a comment “come fix my house slacker!” on his wall post.
If my friend had created a group called clients and added his client to that group. He could have still shared his photo and activities with everyone else, without alerting his clients that he was out surfing that morning instead of working on another job.
Second case this week; An acquaintance who is going through a nasty divorce and child custody saw a photo on his ex’s Facebook’s page of her and her new boyfriend partaking of an some illegal substance. He downloaded the picture and forwarded it to his attorney.
As more and more people are sharing updates, photos, comments and activities of a personal nature, the opportunity to find themselves inadvertently getting in trouble will only increase. To make sure you avoid these situations, utilize the technology that’s available to give you the social networking experience that you want.
Bing Maps with Silverlight
By Mike Yoder, Chief Operating Officer of Advanced Information Systems
Maps have been a staple internet application for many years. With Google Maps, Google Earth, MapQuest, Yahoo! Maps, Bing Maps and more the field is pretty mature. So when I stumbled across Microsoft’s updated Bing Maps I was pleasantly surprised by what I found. I’ve been a steadfast Google Maps user for years, but after one visit to the new Silverlight version of Bing Maps I’ve switched from Google maps to Bing maps. Here are some of my favorite features:
Map Apps – Microsoft has added a library of applications which integrate with and enhance your maps experience. Here are 5 popular apps for Bing Maps.
- FourSquare – live updates from your foursquare friends, see where your friends last checked in .
- Twitter – Live tweets from users in your area
- Traffic Land – Watch live video from traffic video cameras located in your area.
- Current Traffic – See current traffic conditions
- Destination – Create your own custom map for your business or party
Automatic Map View – switches between a traditional map layout and aerial photos as you zoom in and Birds eye view which presents photo views from different angles for better views.
Mini Map – Click in the arrow in the top right hand corner of the map to pull up a mini map. Expand that to the size you can view both a close up map and a wider zoomed out map at the same time.
Image Quality – The image quality in Bing Maps as you zoom in ever closer on aerial shots is better than I’ve seen on any of the other map sites.
The new Bing Maps utilizes Microsoft Silverlight. Microsoft’s answer to Flash. This makes the interface crisp, clean and visually fun to use. To experience the new interface you’ll need to visit www.bing.com/maps/explore, or you can simply visit the old site and clink on the link to try the new Bing maps. If you don’t already have the Silverlight client installed, you’ll need to allow the browser to download it to experience the new version.
For developers Microsoft has released a SKD and Web Services for Silverlight maps which allows developers to use SOAP calls to tap into the features of the Silverlight maps interface. This has opened the door for software development companies to develop new applications which will quickly fill up the Map apps offerings.
So next time you’re pulling up maps on the internet, check out the new Bing maps. Just make sure you have time to spare, you may find yourself spending more time playing with this new interface than you expected.
Foursquare – Fun for users, smart for businesses?
By Mike Yoder, Chief Operating Officer of Advanced Information Systems
Foursquare is a free location based social networking application that allows user to “Check-in” at locations (restaurants, bars, stores, night clubs, casinos, coffee shops, etc…) using their smart phones. A Check-in simply notifies a users list of friends, where they are at that time. Users can also leave “To Do List” items which are essentially recommendations or information about the venue, for other users to see.
A user who checks-in to a location the most often is designated the “Mayor” of that location by Foursquare. Of course your Foursquare activity can be linked to your Facebook and Twitter accounts so your Foursquare accomplishments are automatically shared with your other social network profiles. In addition to being awarded mayorships, users are awarded Badges created by Foursquare for different accomplishments. These virtual rewards make it fun to compete with your friends to see who can collect the most mayorships and badges. But virtual rewards are not what Foursquare is really about. The business model for this technology startup has very real world value.
Businessess are starting to tap into Foursquare’s user base (currently small at about a million users) offering real-time discounts and offers to consumers when they check-in to their location. There are already a number of Las Vegas night clubs, restaurants, and stores offering discounts to foursquare users when they check-in. Additional specials are often available for the designated Mayor of a location. Some example of offers I reciently found being promoted in Las Vegas for Mayors included: Free drinks, VIP tickets, 2-for-1 deals, and even a free round of drinks for the Mayors party. As more businesses become aware how their competition is using Foursquare to reach customers there will be pressure to match or one up those offers.
Foursquare has opened up its API (Application Programming Interface) to other developers, and applications such as Kickball and SnackSquare are tapping into the Foursquare technology to enhance and expand the benefits of the system. Microsoft recently release a Foursquare app for their new version of Bing Maps which displays your friends locations on its maps and displays check-ins from Foursquare users in real-time. The Kickball mobile app provides those same features in real time on your smart phone.
By setting itself up as the engine that powers these other location based software applications, Foursquare is making the right moves to become one of the earlier leaders in the emeriging location based social networking field.
If you haven’t signed up for your Foursquare account already, chances are if your a smartphone user, there will be plenty of reasons for you to do so before long. Over the next few year expect to see more and more businesses getting on board and making discounts and special offers available using this technology.
You can find me on Foursquare as MikeYoder
Software Development Staffing Options for IT Departments (Part 4 of 4)
By Mike Yoder, Chief Operating Officer of Advanced Information Systems
Development Teams:
Development teams are often grouped in with Staff Augmentation but there is real difference that is often unappreciated. Finding a vendor who has a core team of software developers who have a history of working together is comparable to a pit crew at a NASCAR race. A team that works together, understand each members roles and strengths is much more productive and successful then a team that is made of up of individuals who have individual interest. It’s like putting together a pit crew of strangers against a pit crew that has been working together for years. Because these teams are more efficient and have a higher rate of success, they can have a higher hourly rates, but often overall project cost are equal to traditional staffing options because of the high efficiency of the team.
PROS: High productivity, high team morale, low rate of attrition
CONS: Hourly rates can be higher
WATCH OUT FOR: Staffing companies rarely keep teams together from one contract to the next. Look to software development firms who have a strong focus on team development and have established this type of development as their core business model.
Software Development Staffing Options for IT Departments (Part 3 of 4)
By Mike Yoder, Chief Operating Officer of Advanced Information Systems
Offshore Development:
The draw of offshore development has always been its use of cheap labor. CFOs love to push for this option because its easy for them to see the savings on paper. CIOs frequently avoid offshoring because the hidden cost and added work required by the departments internal resources if the project is to have a chance at success. Successful offshore development project requires added management, strong oversight, clear requirements and close and frequent status meetings between the internal and offshore teams. Even with these checks in place, projects can go sideways. When successful, savings can be substantial.
PROS: Considerable potential cost savings, readily available teams of developers
CONS: Higher failure rate, Increased management and oversight duties for internal resources, unforeseen cost, communication and scheduling challenges
WATCH OUT FOR: Ideally you’ll find a offshore group that a peer has found success with and can recommend. If you go out on your own, try to find a company that has a strong state side presence, and ensure you have internal resources who are up to the task.
Software Development Staffing Options for IT Departments (Part 2 of 4)
By Mike Yoder, Chief Operating Officer of Advanced Information Systems
FIXED BID PRICING:
While not used as often by IT departments, working with an consultant who will provide fixed bid pricing provides one large distinct benefit for IT departments looking for help. As the name implies, fixed bid projects come with a fixed price tag. IT projects are notorious for scope creep, missed delivery dates and ever increasing budgets. Getting fixed bid pricing from your vendor ensures you have a partner who is equally vested in staying on track for project plans, timelines and budgets. All these things are also good for you.
These can be risky contracts for vendors and successful vendors will start with a full discovery phase to ensure they understand the project scope before they provide a fixed price. Beware the vendor who gives a fixed bid price without doing this research. In these cases ensure you have a strong contract and schedule milestone payments to protect your interest should the vendor decide midstream he has underbid the project.
PROS: Established budget, Vendor shares risks, strong adherence to project plan and project schedule by vendor, Strong project management by vendor
CONS: Extensive upfront discovery effort
WATCH OUT FOR: Ensure your vendor has experience in these types of engagements and can manage them well. If the vendor realizes midway through the project they underbid, it often ends badly for both parties.
Software Development Staffing Options for IT Departments (Part 1 of 4)
By Mike Yoder, chief operating officer of Advanced Information Systems
2009 had a devastating effect on IT Departments as companies have cut budgets, postponed or canceled projects and reduced staff.
With such limited resources, what options will the directors and managers of IT departments have when business picks up and demand on their departments begins to build? I discuss possible options for IT departments to consider when it comes to their Software Development needs. In this and the next 3 posts I’ll discuss the benefits and risk to avoid when considering: Staff Augmentation, Fixed Bid Projects, Offshore Development and Development Teams.
STAFFING & CONSULTING SERVICES:
Staff Augmentation either by staffing or consulting companies is an obvious and familiar option to many IT departments. This is one of the easiest ways to temporarily grow your IT staff. It allows IT managers to bring in experienced professionals who have already been qualified and have a proven skill set to accomplish a specific task. Companies often use this option as an alternative to growing their fulltime staff prematurely.
PROS: Quick, flexible staffing solution
CONS: Knowledge loss is a serious problem when critical development team members leave. With Staff Augmentation this can be an ongoing challenge.
WATCH OUT FOR: Avoid staffing companies that simply send over every resume that has skills that match your job description. Ensure they are capable of fully qualifying the candidates. If they send more than a few unqualified resumes start looking at other staffing companies that specialize in technology and have a strong qualification team with a strong technical background.
LOOK FOR: Companies that have a strong qualification process. Ensure they understand not just what technical skills the position calls for, but what development techniques and methodologies your team uses. Also express what type of personality will work well with the rest of your team and what non-technical skills are critical for the developer to succeed in your team environment. Many managers are just a guilty as the staffing companies to focusing too much on the technical qualifications and ignoring these other important aspects which often have an equal impact on the success of a developer.
Next post I’ll discuss the risks and benefits of Fixed Bid Project development.
Tech Tips in a Down Economy
By Mike Yoder, chief operating officer of Advanced Information Systems
Keep an open mind to new ideas. Just a few years ago, businesses were struggling to keep up with the racing economy. Now, firms are struggling to keep their doors open and cannot afford to take a business-as-usual approach. It is the companies that adjust, adapt and find new ways to operate in today’s environment that will survive. Here are five ideas for reducing cost with technologies that are available today.
New Media Marketing – In the world of LinkedIn, Twitter, Facebook and many other social marketing options, businesses are finding that they’re able to reach more targeted audiences than ever before. The costs of these new marketing outlets are a fraction of traditional marketing solutions. Companies can spend a relativity small amount with a PR firm that specializes in these new forms of marketing to ensure the phone keeps ringing.
Microsoft Online Services – Microsoft Exchange, Sharepoint, CRM, Office Live Meeting and other core Microsoft business applications are now available at a fraction of the cost of purchasing the products outright. By subscribing to these business applications through Microsoft’s online services, companies pay as they go for a small monthly fee. In addition to savings on licenses, firms save by not having to purchase and maintain the hardware and network infrastructure to support these products.
Automated Systems – Sometimes knowing what is available is half the battle. For instance, the Video Receptionist is an automated self service office receptionist system that not only greets visitors to an office building, but also allows the visitor to call employees in the office and engage in video conversations. Such a system allows companies to reallocate staff to more productive duties within the office while maintaining a professional business environment.
Amazon S3 (Simple Storage Solutions) – Online data storage on Amazon cloud network provides an inexpensive, secure and easy option for businesses to ensure that their data is secure while reducing IT cost. Back-up solutions for small offices can often cost under $20 per month.
Hosted Servers – Many small offices can’t afford internal IT staff yet still have IT needs that must be met. By hiring an IT firm to manage, monitor and support the servers and applications, businesses can ensure IT continuity without the cost of full-time IT staff
HTML 5: Can It Dethrone Flash And Silverlight
There has been a good deal of press and hype about HTML 5 and the threat it poses to Rich Internet Applications (RIA) plug-ins such as Adobe Flash and Microsoft’s Silverlight. So is HTML 5 the second coming of HTML and will this original language raise to dethrone Flash and Silverlight in the realm of the rich internet experience?
The HTML Standard
HTML, unlike Flash and Silverlight, is the standard on which in the early days all website development was based. Even today HTML use remains predominant across the web. With the assistance of advance languages such as ASP, PHP, AJAX and JavaScript developers have extended the basic HTML tags to provide a much richer experience for website visitors then is available with native HTML alone.
The Rise Of Rich Internet Applications (RIA)
Macromedia Flash (eventually purchased by Adobe) was one of the first Rich Internet Application environments to bring a new kind of experience to the web. One heavy on graphics, video streaming and advanced features that simply did not exist with HTML sites. To do this, required more than just the standard HTML language. Because these features were not possible in the HTML standard, Flash was developed as a plug-in that website visitors had to download and install in order to view content in this rich environment. Two of todays most predominate RIA’s, Adobe Flash and Microsoft Silverlight are proprietary environments that still require 3rd party plug-in’s be installed on the visitors computer. Many professionals in the software industry prefer the use of open standards languages (such as HTML and Java), but the benefits of a rich user experience offered by Flash and later Silverlight resulted in the adoption and acceptance of these 3rd party plug-ins.
HTML 5
Enter HTML 5, squarely setting its cross-hairs on RIA platforms. While HTML 5 is still 10 years away from completion, already components of its advanced features are being adopted by all the major browsers (IE 8, Firefox, safari and chrome). Features such as audio and video tags, local storage, 2-D drawing on webpages and AJAX navigation are already showing up.
Why the excitement about HTML 5 when RIA’s already provides these features?
RIA are plug-in’s. They require the site visitor to have installed a proprietary player and the developer to buy development tools in order to produce these rich environments. HTML 5 release from the World Wide Web Consortium (W3C) is a set of standards that once adopted by the major browsers allow developers to tap into their features without the need to develop on a specific platform. Also visitors to the HTML 5 enabled sites, no longer need install 3rd party plugin’s to experience these features. Both of these facts are big advantages for HTML 5 and bring software development back to an open standard language.
Is HTML 5 a Game Changer?
Maybe. It is far to early to make any projections about what will evolve from HTML 5 and how the RIA environments will respond. HTML 5 is still 10 years away from completion, and at this stage it is still far from matching the rich environment and features that Flash and Silverlight provide today. That said, HTML 5 is a step in the right direction by the W3C and I expect to see developers who currently don’t develop on a RIA environments, adopt these new techniques quickly. While I doubt Flash and Silverlight need worry HTML 5 will replace them, I expect the overall internet browsing experience for the public will greatly benefit. The fact remains that the vast majority of website are still not developed in Flash or Silverlight and these site developers will now have access to features previously out of reach.
