An increasing number of companies in Hong Kong are using mobile and wireless technology to increase their productivity and efficiency. But the move in that direction is relatively slow among the small and medium enterprises. The good news is, both the hardware infrastructure and software applications are becoming more mature, making wireless a cost efficient way for SMEs to boost their revenue.

In terms of infrastructure, the Hong Kong SAR Government said in March that it planned to spend HK$210 million to add 200 wi-fi hot spots in public places. Supposedly this will allow more people to access the Internet anywhere, any time, making Hong Kong a truly "wi-fi city".

In the meantime, the industry is studying the next wave of wireless technology - WiMAX, or "Worldwide Interoperability for Microwave Access". Potentially it offers a much greater bandwidth, coverage and mobility than either wi-fi or 3G. However, it will take at least a few years before this technology gets up to speed, as its stability and security have to be evaluated.

Alvin Chan, associate professor at the Department of Computing, Hong Kong Polytechnic University, says the development of increasingly wide bandwidth in mobile and wireless networks is good news for the launch of more interesting and complex e-commerce applications, which were previously impossible with older platforms like WAP on the lower bandwidth GPRS network.

Chan thinks that the government's active lead in installing wi-fi access points in public places will encourage low-cost wireless connectivity as well as stimulate the growth of e-commerce in the city. "Hopefully that will get the ball rolling," he says.

Comparing 3G with wi-fi and WiMAX, Chan says each one offers certain pros and cons. Wireless Internet access via wi-fi is a relatively mature technology with significantly higher bandwidth that readily supports more complex applications, with rich multimedia streaming and interfaces. The more expensive 3G, on the other hand, is relatively more secure because of the use of a protocol that is not widely open to the public, and hence, hackers. In any case, Chan says, all of these technologies complement one another and provide a seamless wireless connection for users on the move. "If there are no wi-fi access points where you are, you can switch to 3G and vice versa," he says.

Look no further

Hong Kong businesses need to look a little closer at the devices they could invest in.

Regardless of the type of connection technology, there is apparently a great deal of opportunities for Hong Kong businesses to take advantage of if they look a little harder on the devices they could invest in, or already have.

Norm Lo, Regional Vice President of Research In Motion, the maker of BlackBerry, says that a lot of electronic commerce and transactions have been taking place on the 2G network and they serve the purpose of business users just as well because transaction-based data communication does not require a large bandwidth.

"Wireless and 3G is not the saviour nor the main catalyst to stimulate the growth of e-commerce," he says, stressing that educating the public is the key.

Of course, Lo concedes, a faster network can improve the usability of wireless e-commerce. But what is more important is the suitability of applications, the pricing model, security and above all, the business model. "How much money are businesses willing to spend? What kind of value do they place in the technology?"

He contends that Hong Kong businesses are not taking full advantage of the available wireless technology: "They are, in the context of voice, but the future is about data communication."

One useful data communication tool is the BlackBerry push email. Beyond email, there are literally hundreds of applications that companies can launch on their handsets to suit their needs, such as form-based applications. The prospect of filing trade declarations using a handheld device is not all that far-fetched.

Numerous studies have shown that BlackBerry can generate a lot of productivity and competitive advantages for businesses (see sidebar).

"Mobile and wireless technology frees up people and improves business processes," Lo continues. "People become more productive because they don't have to get back to their desks or laptops to address urgent issues. They can be anywhere. It's a hard business case. Hong Kong businesses need to take some time to look at the applications as well as their business processes so as to improve their wireless mobility needs."

Go nowhere else

The here and now is where SMEs need to look at to fully utilise the potential of mobile technology, according to Carol Wan, General Manager, Brand Marketing of Hong Kong CSL Limited, a leading mobile operator.

Productivity on the go   According to the 2007 Ipsos Reid research on the BlackBerry's return-on-investment, the typical end user converts 60 minutes of downtime into productive time per day. BlackBerry also allows mobile staff to keep work moving for others while they are away from the office. The average BlackBerry user reports that the device increases the efficiency of the teams they work with by 38%, a marked increase over the 2004 average of 29%. This translates into more than US$33,000 per user per year based on international productivity per employee data. The average BlackBerry user processes 2,500 time-sensitive email messages a year while on the move, and more than 1,200 phone calls per year. The value of this immediacy is difficult to quantify, but the study estimated it to be well over US$5,000 per user per year. BlackBerry Return on Investment (ROI) varies by individuals but the research concludes that it can be conservatively calculated at a minimum of 238%. This equates to a payback period of 154 days, or approximately five months. The figure was 162% in 2004. The increase in minutes converted to productive time each day can be attributed to the proliferation of BlackBerry among operations level staff who are likely to have more slack time in their calendars to convert than executives.

While push email on devices like the BlackBerry is increasingly popular, there are also other mobile technologies that are cost effective and easy to implement, which may not have been fully tapped into by small businesses.

"Take the SMS for example," explains Wan. "It has been around for a long time, but it has evolved from a peer-to-peer to an enterprise level technology. Companies, especially banks, now use SMS as a complementary tool to perform marketing promotion and confirm transactions. This is far more efficient and productive than other methods, and a very cost-effective tool that SMEs can use."

For example, companies can communicate with their salespeople on the road through a PC-based application that enables an SME owner to broadcast important information such as product pricing and order status via SMS.

Another application is mobile positioning service that rides on the GSM technology. Wan explains that once a mobile phone SIM card has been activated with this feature, the user can track a person's whereabouts. "It is ideal for workforce management for companies in the transport or logistics industry. Let's say I am an operation manager of a logistics company, managing a team of drivers. With the mobile positioning service, I locate a truck in Central and it happens that a pickup is required in Sheung Wan. So I contact the driver and dispatch him to the customer immediately, without having him come back or even call the office. This way I can make my workforce more efficient."

Simple instructions like this can be conveyed by SMS, but if there is more information or if there are file attachments, then email or MMS is the way to go, says Wan. The broader bandwidth of 3G and 3.5G is, she says, very useful when a mobile worker needs to send or receive a multimedia file when he or she is on the road.

"At the end of the day, everything is ready when it comes to technology," she concludes. "But from the application point of view, it depends on user requirements and customer demands."