GIS + GPS+ GSM = LBS

Location-Based Services (LBS)…

Make no mistake about it, LBS is a monster and it’s not even started to ramp up yet. The pieces are there…GIS for the map database, GPS for positioning, and wireless networks for communicating.

It’s a super-dynamic scenario where all three technologies are changing, if not structurally, at least at the content level. For example, the trend in the GIS component isn’t necessarily structural (eg. database technology), but the content is evolving rapidly. Remote sensing data is more accurate, has greater coverage and is readily available. Digital map data in general is much more available and much more accurate.

The current scenario takes me back to the 1980’s when the Personal Computer was in its infancy. I remember a friend of mine purchased a new PC in 1986. I had some experience on a TRS80 (remember that one?) via a college course. We unpacked his new toy, plugged it in, and turned it on. After booting up, no Windows interface (not invented yet), no friendly prompt guiding us to the next step. Just this…

C:

It took me awhile (months) to figure out that computer hardware and computer software were two completely different animals. In fact, not until I started working for a computer manufacturer did I really understand the importance of computer software. Without application software, a PC is just an expensive box that takes up space and eats electricity.

Do you see where I’m going with this?

Today, we have all the components to make a good PC box (GIS+GPS). What we are sorely lacking, and I believe very early (similar to where we were with the PC in 1986) is LBS application software.  The PC has transformed our lives in the last 20 years…and LBS will transform our lives in the next 20 years.

As my compatriot Kevin Dennehy reported in his GPS World LBS newsletter this month, Nokia held their Nokia World 09 conference.
At the conference, Nokia held a worldwide “Calling All Innovators” developer contest to promote the technology.

“For all the noise about its dominant market share, Nokia could not shake the public feeling that it was losing ground in the hearts and minds of developers and the public in general. It is in part rooted in its poor performance in the United States, where most of the social networking application have the roots, and also the largest user communities,” Babcock said. “With its current 5 percent to 7 percent market share, Nokia has its work cut out for it.”

Why the focus on Nokia? If you recall, in 2007 Nokia acquired Navteq for US$8.1B. Navteq is one of two street-level map database companies (the other being TeleAtlas) in a duopoly magnified by the explosive growth of automobile GPS navigation devices. Nokia are also the largest mobile phone producer in the world. They understand the GIS+GPS+GSM=LBS formula and they’re betting the farm on it (or at least the livestock).

The technology and infrastructure are set, now it’s a matter of creating applications. Nokia is smart enough to create some of the obvious ones. But, they (and the consumers) need unorthodox and creative start-up companies to start offering LBS products/services to see what sticks. Clearly, the next LBS-style Facebook, Myspace, etc. is out there waiting to be plucked and brought to market. It’s not Loopt, it’s not Google Latitude.

But make no mistake about it, knowing where you are, where your assets are and where your family members are in relation to everything around us is going to be as ubiquitous as the mobile phone you carry today. You will know where your kids, your spouse and your friends are (if include them in your personal network), at anytime. You will know where your vehicles are, at any time. And if you allow it, a coupon will pop-up on your phone display giving you a few bucks off your lunch order at the McDonalds you’ll be passing in a mile.

And, believe it or not, GIS is the foundation on which all of it is built.

Thanks and see you next week.