Developer: The presence of a critical mass of well skilled ­developers is crucial for the operator to succeed in the app ­minefield. To attract and retain the developer is one of the main mantra for today’s operator. In trying to do so he faces several ­challenges, from a limited reach compared to the device stores to a different operating mentality. The operator needs to focus on a clear, well defined monetization path for the developer. Many apps are offered for free, and with the absence of direct or ­indirect ­monetization routes these offer little long term ­benefit for the developer. In addition, the operator needs to create a transparent, quick and smooth process for publishing apps ­based on APIs with quick turnaround time for payments to keep developer loyalty and support. This is noticeable among operators with app stores with payment periods showing a clear ­decreasing trend. Developers need to be provided with a high ­level of documentation and support to ease development process. This can be enhanced by use of Web 2.0 collaborative strategies (crowd sourcing, wiki) as frameworks to assist developers. At every stage it is important to solicit and react upon feedback from the community to make continuous improvements in the overall framework. Finally, the operator should consider the use of incubators and VC to identify winning trends and capitalize on them (acquisition, support of ‘killer app’ developers).

The home – an example of collaborative innovation

To illustrate the case on how an operator can truly differentiate on the back of crowd driven disruptive innovation we look at the scenario of a next generation home. Today’s home is a crowded landscape with a whole range of devices from gateways, set-top boxes, tablets, TV, media-phones to smart meters and other utility devices. On top of the fact that the devices are getting smarter, many of them are not only software enabled but can also serve apps.

Unlike the mobile space where there is a single user device, in the home the user has to deal with several devices, with different interfaces, standards and protocols. Even in dealing only with just apps he has to manage several different accounts across different players due to lack of interoperability between devices in this segment. The developer and 3rd parties also view it as an attractive market, capable of consuming a number of attractive services; however they have to develop specialized offerings on a per device basis. The operator is in a prime position to assist the user and create a win-win situation to the other players in this segment.