How Nokia will differentiate with location-based services

Published by Pino Bonetti on June 29, 2012

Compass and map

Our announcement on June 20th, that we are making Nokia Drive available on other, non-Nokia Windows Phone 8 devices generated some interesting feedback that deserves a response.

Turn-by-turn navigation is becoming a standard features on smartphones

We have believed in navigation on smartphones for several years, from when we first acquired Gate5 and then NAVTEQ. Back then everyone was assuming that the PND (personal navigation device) was the device of choice for navigation and that navigation services wouldn’t be relevant in a smartphone. This is why we were the first to introduce a PND-like navigation offering and the first smartphone with GPS on the market.

Now, opinion is very different. Smartphones create a much more fluid location-based experience because they are always with us: in-car, when we walk around, when we are at a restaurant or at home.At the same time navigation is a feature we expect to find in every smartphone. Think about it: would you ever buy a smartphone that doesn’t play music? The same rule is very quickly being applied to navigation too.

Directions

Not surprisingly, across all the different app stores in the market, navigation apps are always among the most downloaded. Because location based services are now more than ever at the core of our business, we are going to license Nokia Drive, the best navigation solution on the market, to all Windows Phone 8 devices.

Nokia Drive might not be exclusive to Nokia smartphones anymore but that doesn’t mean that we can’t differentiate with apps anymore. How can we still do it? First of all, navigation on Windows Phone 8 will be always exclusively provided by Nokia. Then by having the very closest, deepest integration possible. So watch this space for more apps and upgrades that become a seamless aspect of the overall Nokia Lumia experience.

But there is more to it than this. In fact, this is an area that creates a lot of confusion when people don’t distinguish between apps and platform. The Nokia Location Platform (often referred to by us as the Where Platform) provides a set of APIs that let organisations develop map-related apps and services. This platform provides the ability for people to get from A to B, decide their best mode of transport, avoid delays and get the most out of their local environments, wherever they are.

Atlas

The location platform business

The location business can be explained in terms of ingredients and recipes. The map and all the info it contains are the ingredients. The location platform is a set of basic-to-advanced recipes to cook those ingredients. And the apps are dishes ready to eat.

If you are hungry, you go to a deli or to a restaurant and you eat what you feel like at that moment. You want some sushi? You go to a Japanese restaurant. That’s a bit like being on foot and deciding to use Nokia Transport to get somewhere. Customisation in these cases is limited: you know how to order or how to operate the app, but everything is constrained by the programmed user experience.

If you are a cook, with more or less expertise, however, you can buy ingredients and follow recipes to create your own dish. Even more tailored to your need. It requires some effort, but you can decide on the taste, size and appearance of the final product. The same happens if you are a big or small developer and you want to use our location platform and content to build your own location-based experiences.

Maps API

Perhaps you can now see that the location business is not only about apps (final products) but also, and most importantly, about the platform (ingredients and recipes).

The ‘where’-enabled Windows Phone 8 ecosystem

By opening the location platform to the whole Windows Phone 8 ecosystem, we are differentiating Nokia as a company because we are the company most able to cover the location business on all levels. And we are promoting innovation because all Windows Phone 8 developers and manufacturers can build location-based experiences on top of our platform. As we’ve said before, success in the mobile sector today is all about platforms and ecosystems. In the case of location platforms, this is more accurate than ever, because all smartphones are nowadays equipped with GPS.

Image credits: lightmatter, will ockenden, and aussiegall

Comments

  • http://conversations.nokia.com Ian Delaney

    I like the ingredients/recipe analogy. Helps to clear things up over where the business opportunities lie in this area.

  • http://twitter.com/jankowalski7 Jan Kowalski

    When can I take advantage of services such as WP7 LocalScout in countries such as Poland (using inside of it information provided by Nokia’s servers)?

    • http://twitter.com/haikus Pino

      Hi @twitter-280633909:disqus, please note that LocalScout is a service offered by Microsoft: you should redirect your question to them.
      However, if you have a Nokia Lumia, consider using Nokia Maps which offers an experience similar to LocalScout, also in Poland. Just tap on the “places nearby” icon in Nokia Maps.
      Last but not least, in this blog post I was giving more in-depth information about Windows Phone 8, not Windows Phone 7 or 7.5.

  • Michael

    I’m very much looking forward to Nokia WP8 devices, but at the same time I wished for Nokia Maps/Drive to be available on Android as well (as a stand-alone app, not browser based). And I would pay for it, as it’s still the best navigation solution I’ve ever used. Imho Nokia should do anything possible to monetize it’s services. And I’m sure it would be very much appreciated by Android users to have _real_ offline navigation, not that crappy Google solution. Maybe you should think of it (as much as I know & understand you won’t ;)).

    • http://twitter.com/haikus Pino

      Hi @LokiBartleby:disqus, thanks for your support. I see you are also very well informed about our superior offline capabilities.

      On a side note, with our location-based services we really want to reach all the possible screens. This means that every device with a screen is a potential candidate to support our services.

  • Sol De Jesus

    So how will you guys differentiate? I get that the location platform is important. What kind of apps will be exclusive to Lumia devices? 

    • epdm2be

      Nothing. It’s all about advertising. Retrieving localized add-selling contracts and shoving that “data” through your navigation-app as revenue.

      • http://twitter.com/haikus Pino

        Hi @google-52b6ac125f47a5f16adf078dcef2ccf1:disqus, in my blog post I have said that we will differentiate with specific experiences and apps. You will know soon what this exactly means. Windows Phone 8 hasn’t been fully launched yet, so you have to be a bit patient.

        Correctly, @epdm2be:disqus mentions advertisement as a potential way to monetize these services, like some of our competitors do. However, I have said in my blog post that the main way we do business here is via licenses.

  • gadgety

    When the announcement about Nokia Drive integration on the entire WP8 platform was made Microsoft’s share price went up, while Nokia’s fell. Not necessarily a straight cause-effect here, of course, but still one can make this hypothesis. In the financial media there is speculation whether Nokia will even survive with the current negative cash flow, and the belated recovery which was essentially built on the WP8 platform. In the low range, Android devices aggressive pricing has gone so fast even Elop admits it’s been surprising. I read this as Nokia is losing some foothold in the low end where it’s been leading previously. I’m wondering whether Nokia is considering to take the Maps/Drive and the Pureview/camera into stand alone businesses to save these in case the core activity, phone creation, production and distribution, ends up incurring such cash outflow that the entire company folds. Looking to Nokia’s long term history, this type of agilitiy has been the key to its success enabling the company to go from rubber boots to mobile phones. Perhaps another shift is due? Microsoft seems to be dependent on Nokia’s success for it’s WP strategy. Try selling the phone making part to them, license the name, and keep the core assets in a separate future Nokia, where the tech is licensed. Just idle armchair strategy speculation my part.

    • epdm2be

      The article writen here is not entirely true.

      “First of all, navigation on Windows Phone 8 will be always exclusively provided by Nokia.”
      –> HTC is currently building their own navigation (which could and probably will get ported to WP8 if HTC persues it’s own WP7-phones manufacturing which is currently in doubt)
      –> Apple has recently acquired Placebase and will replace Google Maps with its own turn-by-turn navigation app.

      Fact is that in due time free/inbuild/included turn-by-turn navigation will NOT be the differentiating factor between platforms (let alone devices on the same platform).

      In the case of Windows Phone it’s clear that Microsoft is killing off all the goodwill between it’s (former) partners and in due coarse will rely on Nokia alone. Which is as bad as the current Nokia situation where Nokia is dependant on Microsoft. As we all know that Nokia may not persue any other smartphone OS for the next 3 years due to contractual obligations between Nokia and Microsoft. 

      It’s the end. “Services” won’t rescue the ship. Especially when ALL the other players are persuing their own “services”. So who will actually BUY the Nokia services? Microsoft? Really? If so with what caveats?

      I also wonder… Google is currently the biggest “services-”provider. How the hell can Nokia compete with them? Especially when they provide much of their services for “free”. Are they also gonna tell them that story about cooks and recipes?
       

      • http://twitter.com/haikus Pino

        Hi guys, lot of speculation here. Although I respect all your opinions, perhaps it’s better if we get back to reality and to the current situation for a bit.

        Fyi, @gadgety:disqus, like any other stock-market listed company, we do not comment on our share price, that’s for the market to decide. If you want more information, you have to wait for our imminent quarterly results. I also can’t comment on future scenarios, @Lekeim:disqus. Our latest strategy update can be found here http://press.nokia.com/2012/06/14/nokia-sharpens-strategy-and-provides-updates-to-its-targets-and-outlook/, where you can also read about our location-based services.

        I would also like to remember that Nokia Conversations is the official Nokia blog. This means, @epdm2be:disqus, that the content of this blog are official statements about Nokia and its partnerships with 3rd party players (like Microsoft).
        Please respect this, instead of mentioning non-official rumors and mixing them with irrelevant facts. For instance, there is no link between Apple’s turn-by-turn navigation and Windows Phone 8.
        We have also made many times clear that Nokia location strategy is horizontal: it’s not only on Symbian and Nokia Lumia smartphones, but also available for in-dash navigation (4 out of 5 cars use our maps) and for iOS and Android (via mobile web browser).
        If you consider the whole location business, we are basically the world’s largest maps company. Again, if you need more information about how wealthy this business is, you have to wait for our quarterly results, in the Location&Commerce section.
        Last but not least, my analogy with cooks and recipes was meant to explain the difference between apps and platform. This is a universal analogy you can use in different contexts. The only way this analogy can be linked to the competitive landscape is to let you know that Nokia is one of the few players that do business on all levels: content (maps), platform (API) and apps.

        • Lekeim

          Pino, I appreciate your reply – and I have maybe gone slightly wild when I made my comments above. ;) Anyway, I am very content indeed with Nokia Maps and the accompanying services – with the exception that it would be great to see some more support for the Opera desktop browser. 

          Best, L

        • gadgety

           Hi Pino,

          Thanks for the reply. I was not fishing for a comment on Nokia’s share price, nor any reply from Nokia on this official blog, of course. As I said, the comment on my part was just reflections when observing the current situation and Nokia’s options.

          • http://twitter.com/haikus Pino

            Hi @gadgety:disqus, you are more than welcome to ask all the questions you have and express your opinion here ;-)
            You can also reach out to me directly, on Twitter, @haikus:twitter. I’m looking forward to hear more from you.
            Alas, however, sometimes I can’t answer or further comment.

            The second part of my answer was not directed to you. I’m sorry if that wasn’t clear.

    • Lekeim

      I must say I fully agree. Nokia should focus on their L&C-business which is dynamic, forward-looking and extremely innovative and popular. They may still try to turn the hardware business around, but I think they should develop plans to seperate both businesses and keep the very promising L&C-business.

  • XtiaN8

    In the United States, I feel that Bing/Local Scout has more POI than Nokia Maps. For example, if I search for Great Clips, Local Scout will provide me with more locations close to me (3 locations) while Nokia Maps only shows me one.

    Is Nokia putting any plans into increasing the number of POIs for US customers?

    • http://twitter.com/haikus Pino

      Not only in the US, @XtiaN8:disqus, but globally. POI coverage is very important to us which is why we are expanding it regularly. Thanks for pointing out this one in particular.

  • http://www.gsmbooster.co.uk/?cPath=89_93 vodafone mobile signal booster

    Nokia ‘s location based service is very powerful and that’s the main reason why people are getting the quality services from the Nokia. Its powerful strength of Nokia to attract the people.

  • http://www.skyerbiz.com/ selling a business

    GREAT ! You convey the impression as if you have an implausible knowledge on it and its your gratefulness for giving out and imparting your knowledge and blog with others.
    THANXS for affixing !

  • http://twitter.com/jirigajda Jiri Gajda

    Nokia Maps app does not support the offline mode, there is no synchronization between Maps and Drive, Drive does not announce directions (e.g. turn left towards Vienna/Gratz/A1, but only Turn Left, sometimes Turn Left /A1), you cannot change routes (the quickest/optimum/shortest/toll-free), so it is an easy job for Google to beat Nokia. Sorry Nokia, but you should not have released the product, which is only semi-finished. Nokia´s location-based apps are huge disappointment for lots of users. 

    • http://twitter.com/haikus Pino

      Ahoj @twitter-329117185:disqus, thanks for all your comments, I really feel your passion about this topic.
      And your frustration too. Yes, Nokia Maps and Nokia Drive for Nokia Lumia aren’t yet at the same level of their Symbian counterparts. Simply because we have started only recently developing for the Windows Phone platform. And yet, in less than one year we have published 3 updates, much more often than we ever did for Symbian.
      Last but not least, we still believe that the quality of our maps, the global reach and the true offline experience in Nokia Drive are the best on the market.

  • http://profile.yahoo.com/CSZKPZQPGFY45A5HB4O32NSMDE yahoo-CSZKPZQPGFY45A5HB4O32NSMDE

    “….. several years, from when we first acquired Gate5 and then NAVTEQ ……”
    I have forgotten how many years, but it is more than 5. And, as far I can recall, talks of Location APIs has been around for quite a few years too.
    So, Pino – I have  a question – what has changed now that would convince us that Nokia can deliver on this “new” strategy ? 

    • http://twitter.com/haikus Pino

      Yes we are talking about roughly 6 years. And as I clearly stated, this isn’t a new strategy; we are focusing on what we do best. The reasons are in this and in the previous (http://conversations.nokia.com/2012/06/20/nokia-drive-for-all-windows-phone-8-smartphones) blog posts.

      • http://profile.yahoo.com/CSZKPZQPGFY45A5HB4O32NSMDE yahoo-CSZKPZQPGFY45A5HB4O32NSMDE

        Thanks for the prompt response, Pino. I had new in inverted quotes – yes, I agree it is not new, no debate.
        The real question is why should we believe that Nokia will deliver on the old strategy now if it could not in the past 6 years.
        From your reply, I gather you are now focusing on what you do best. i.e. Nokia has been doing things wrong before. It kind of implies that the people who spent 8 Billion buying Navteq just did not have an idea of what they could do with it.
        Would give the readers a lot more confidence if we could understand what has changed – the people, the market or …. ?
        I read through the other post you linked to. Yes, there are some things in there that have changed in the six years such as increased coverage, traffic information, etc. These are natural evolution of such a data and I am sure there will be more as time comes. But the data available six years back did still provide opportunities for making the platform available for developer, but which Nokia was unable to.
        So, apologies for sounding like a broken record, but the question again is – what is different now that would give us confidence in this approach and why we should now invest effort into developing Apps based on this.
        It is a serious question since I am developing a service that uses location and WP is on the roadmap only after I get take up on Android and iOS and I want to know if there is any reason I should change priority.

        • http://twitter.com/haikus Pino

          Hi, our developer offering is available at http://api.maps.nokia.com, have you already had a look at that? The newest addition are MH5 API.
          Otherwise, I’m afraid you have to wait a bit more to get the answers to all the other, very fair questions of yours.

          • http://profile.yahoo.com/CSZKPZQPGFY45A5HB4O32NSMDE yahoo-CSZKPZQPGFY45A5HB4O32NSMDE

            Unfortunately, I am not a developer myself, just the roadmapping guy :-). Ok, we’ll stick to our current roadmap and wait “the bit more” until I can build my own confidence up.
            Appreciate the prompt response, though.

          • http://twitter.com/haikus Pino

            We both know how important “roadmappers” are ;-) I will be glad to give you more details in the coming months.

  • http://profile.yahoo.com/3UA3CTF2EDH5VY2M3TGNXOU46U Charlie

    Would suggest quickest route and/or use major highways on next update; not good in US to use back roads; takes much longer than using Interstates.
    Thank you.

    • http://twitter.com/haikus Pino

      Hi @yahoo-3UA3CTF2EDH5VY2M3TGNXOU46U:disqus, more options to personalize your route are definitively coming in next release of Nokia Drive.

  • http://netskater.myopenid.com/ B Prasad

    “opening the location platform to the whole of windows phone 8 ecosystem” so how is this different from what Apple and Google have already done? 

    • http://twitter.com/haikus Pino

      We usually do not comment on competitors’ strategy in detail, you can get all the information you need from their respective sources.
      What you will find is that some competitors do not have any platform to open, others haven’t open it at all as you are assuming, others are opening it but treating their platform partners as competitors and others do not have the same quality of data we have, as you can read here: http://conversations.nokia.com/2012/06/20/nokia-drive-for-all-windows-phone-8-smartphones

  • http://twitter.com/Mytotas Marwan Boustany

    Pino, you have not actually demonstrated how Nokia will differentiate.  By giving other WP8 manufacturers access to Nokia Drive (for free?), Nokia has specifically eliminated an important differentiator and competitive advantage for it within the WP ecosystem.  It is very hard to argue otherwise.

    Now the differentiation lies in the WP ecosystem, not Nokia.

    Is there any aspect of Nokia’s Maps, Drive, Transport etc functionalities that Nokia will keep for itself?

    To say that being a provider of location based data and navigation will be or is an important business for Nokia does not impact on the idea of Nokia’s differentiation in the WM space.

    Please correct my understanding if it is incorrect.

    • http://twitter.com/haikus Pino

      Hi @twitter-773686470:disqus, you are still thinking in terms of smartphones or mobile apps.
      This is a quite different business, which is happening on 3 different layers.
      Yes, we might still differentiate the apps experience by keeping some of them or some of their features exclusive to Nokia Lumia, but this is not the main message here.
      Consider for instance that Microsoft is allowing for the first time another company, Nokia, to deliver a huge part of their mobile OS. This is a great example of what Nokia can do in location.

  • http://twitter.com/Prasenjit_SB Prasenjit Singh Bist

    Hi guys, I have a question may be I am not following the current news but anyways I have a question:
    I have read in some blogs that Nokia Drive is coming to other WP OEMs then why not other platforms, sell it as a app I mean that should be very credible and inline with Nokia’s ambition to be the where company. look at recent apple debacle if u sell it as an app u can earn from iOS users too that should be the aim of where company isn’t it