PalmOne: PDAs as Convergent Devices

Course Description

Lectures

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   Lecture 1 - The Career Path of a palmOne Executive

   Ken Wirt, senior vice president of Worldwide Marketing at palmOne, graduated from the University of Michigan with a degree in the psychology of kinetic media - the evolution of how one media, such as television, turns into another, like computers.  He worked for a couple small companies before attending business school at Stanford.  He then got into computers at Atari, handheld devices at Apple, and online music at a startup called Riffage.com.  Following this, he came to Palm Inc., which is now palmOne.

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   Lecture 2 - The Convergence of Technology

   Wirt talks about how the convergence of technology is an interesting trend that has led to an influx of multi-functioning devices.  Convergence devices save space, add convenience, and can sometimes enhance the functionality of the combined product.  The Palm Treo is a great example of a convergence device and functions as a phone, handheld organizer, wireless email, text messaging, web browsing and even a digital camera.

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   Lecture 3 - Examples of When Convergence Works and When it Does Not

   Though some types of convergence devices become extremely popular, says Wirt, others never catch on. In certain cases, it is clear why the convergence device has never caught on (like a washer-dryer combo), and in others it is not so clear (like why people never use the built-in calculators on their cell phones), he adds.

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   Lecture 4 - Historical Example of Convergence - Steam Powered Factory.

   Wirt explains that the invention of the electric motor revolutionized the way factories operate.  With steam power, there was one central boiler which dictated how the factory had to be organized.   As electric motors evolved, it became possible to make small motors that could be distributed around the plant to provide power to individual machines allowing for greater flexibility.  Now, electric motors are everywhere, he says.

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   Lecture 5 - Distributed Computing Became an Appliance

   Wirt explains that computers have become so cheap and common that they can now be found in countless devices. He was able to count 14 computers in his kitchen alone.  Optical drives are another example of a device that was once very expensive, but has now become a standard technology and its use and application has greatly expanded.

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   Lecture 6 - From Revolution to Evolution

   A revolution in technology can occur very quickly, says Wirt. The new product can rapidly displace the old.  However, the evolution of a technology takes time.  The potential impact of a technology is not often realized until much later.

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   Lecture 7 - From Convergence to Appliance

   According to Wirt, the biggest factor in determining whether a convergence device is successful or not is the rate of the technical change of its components.

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   Lecture 8 - The Future of Appliances

   Wirt makes some interesting predictions about the future of digital music, digital photos, and the trends of high speed networks and increasing storage capacity.  He describes a world where almost everything has a built-in hard drive for storing information, but the challenge will be keeping it all in sync.

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   Lecture 9 - Future of PDAs as Convergent Devices

   According to Wirt, PDAs have evolved over the last decade from just an address book and calendar to devices that can play movies and MP3s and carry much more information.  In the next decade, he sees an increased ability to carry around many types of information.

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    Lecture 10 - Growth Prospects for PDAs and for PalmOne

    Though recent market research suggests that the PDA industry may be finished growing, Wirt questions this conclusion. He points out that conventional wisdom is often wrong.  It is not the market researchers that create the future, but the entrepreneurs.

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    Lecture 11 - How PalmOne Evaluates What Customers Want

    Customers generally are not very good at knowing what they want for the next big product, says Wirt, but they are good at making suggestions for incremental improvements. The next big thing has to come from the product developers, but then has to be refined based on customer feedback.

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    Lecture 12 - International Markets

    According to Wirt, Europe is ahead of the US in cell phone use. An example of this is the popularity of Bluetooth in Europe and its relative obscurity in the states.

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    Lecture 13 - Convergence of PDAs with Automobiles

    Wirt answers the question: Will there be convergence of PDAs and automobiles in the future?  Most likely, he says. Car companies are very interested in adopting the newest technology and are currently working on ideas for integrating the two devices.

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    Lecture 14 - Is PalmOne Focusing on Business or Personal Segments?

    Wirt talks about how the PDA is a unique product in that its customers use it for both personal and business use.  Still, consumers like to have differentiation.  PalmOne has segmented its product line, creating the Zire sub-brand, to better address both consumer groups, he adds.

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    Lecture 15 - PalmOne and Palm Source

    According to Wirt, PalmOne and Palm Source are now completely separate companies; PalmOne does hardware and PalmSource focuses on developing and licensing the operating system.

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    Lecture 16 - How Do You Compete Against More Established Competitors?

    Wirt explains that PalmOne has competed in the wireless forum by forming close relationships with the carriers to provide solutions that are integrated into their network.  The largest market is largely saturated, so wireless companies are looking for additional services to offer their customers, and this is what PalmOne provides.