Interview with Mary Foltz of Air Arts Media
November 5, 2008 :: Steve FisherThe mobile industry has rapidly evolved over the last 10 years. With devices getting smarter and more sophisticated there is a growing movement to enable more business applications on these devices. AirArts is a mobile communications services technology company formed for specifically that purpose. I recently had the opportunity to sit down with Mary Foltz, VP Marketing and Co-Founder.
Mary is passionate about commercializing new technologies that save people time and money, and improve their lives. With 10 years experience in data communications and 15 years in wireless, Mary is a seasoned professional in new product development, marketing, business and channel development. Recently, as Director, Business Solutions Product Management at Sprint Nextel, Mary created a portfolio of services with the highest revenue and retention rates in the industry, including the award winning GPS Location Based Services.
Here is the transcript of that interview:
Steve: We know that AirArts is a mobile communications services company, but what is its focus?
Mary: AirArts is focusing on some of the more complex aspects of mobile services in the Web 2.0 world, particularly multimedia handling. This is a crowded space, but there are still some unsolved problems. When we launch solutions to solve those problems, we will be able to differentiate ourselves in a crowded field.
Steve: What types of devices are you building for?
Mary: AirArts is focusing primarily on smart phones with the higher megapixel cameras and with near field communications (NFC), although NFC is still a bit early in the market. We are starting with the Windows Mobile platform, which is the best fit right now, since it has the right capabilities, and fits best with our priority target markets. We did extensive testing with Symbian and Java too, and we have prototypes on Symbian, but Windows Mobile just fit our plans best right out of the gate.
Steve: How has mobile particular technology evolved in the last few years? Why do you think AirArts is at the right place, right now?
Mary: Several things are happening right now in the marketplace. We are excited by the increasing adoption of smart phones, and growing sophistication of customers in how they use data, messaging, Internet and all kinds of Web 2.0 capabilities. Smart phone sales have shot up over the last two years. The more data people use, the more they experiment with new things. And the unfortunate economic pressures leave people more open to new ways of using technology to save time and money. In my opinion, the variety and value of applications for business has not kept up with the consumer side. So I think this is a great time for us at AirArts to leverage our experience with business applications to help that market get the benefit of these new technologies.
Also, more wireless carriers are opening and supporting developer programs. This is so helpful for a small company that needs to get to as many customers as possible, not just working with one carrier.
Steve: You have said that AirArts is focused on developing solutions for the Windows Mobile platform first. Why not the BlackBerry that has lots of business users or the iPhone which has a user base looking for powerful applications?
Mary: The BlackBerry is a great device, and we would have started there if the timing was right. But when we started development they had not opened up the ability to control the focusing on the camera, which is critical to our applications. I really look forwarding to getting onto that device in the future, it is a great fit for us. As a startup, we have limited resources, so we had to really pick and choose. First – there had to be a mature developer program and API exposure of device capabilities like camera focusing, and GPS location information. Second – the platform had to have enough devices in the hands of people in our first target market.
Although we like the Symbian capabilities a lot, the installed base in the US is not nearly as big as Windows Mobile, plus there are some difficulties programming on it that just take longer to work on. Apple’s latest iPhone has a camera, and it looks great, but we have not yet seen evidence that our particular target market is carrying iPhones yet, so we will probably jump on that a little later.
Steve: Since you initially are a services company that is helping companies build mobile products; do you plan to release your own products?
Mary: Eventually, yes, but we would not release anything that would overlap with our direct customers or distribution channels. When we have the resources, there are some more “pro-sumer” (professional consumer) and general use applications we might pursue.
Steve: Since this is your first foray into the startup world, what have been some lessons learned so far?
Mary: Lots! It is a great relief to be free of the complexities of a large organization, but I do miss the team environment. So we are more deliberate in creating the opportunities for interaction, and ensuring we communicate, share information, and support each other. It really helps to be in the high tech Northern Virginia area, with lots of lunch and dinner speaker events where you can learn something and meet people in the field.
Also, I have learned that there are a lot of great low-cost and shareware tools like mind-mapping software to capture product requirements, online survey tools at the free subscription level that let you do short surveys, and blogs to guide us to other marketing tools.
The hardest lesson for me as part of a startup is that I, personally, have to initiate everything, and keep the momentum going. If you are not actively moving the ball down the field, it just sits there!
Steve: The mobile space is constantly evolving with considerable strides made in the last 18 months with the release of the iPhone and WiMax. What do see happening over the next 18 months in the mobile space?
Mary: I think that everyone will be affected by the economic upheavals, and that will play out in the wireless industry too, no matter how much they claim to be recession-proof. These are just opinions, and nobody has a crystal ball, but I think there will be a retrenchment, where the “fluff” will fall out and the solid “value” features and applications will stay. People will want to get more value from their existing phones for a longer time before trading up. People will expect better user experiences for power features, thanks to Apple showing how online data can be done efficiently, comfortably and while having fun. This is an opportunity to enhance existing applications with better UIs, and
Higher speed networks will accelerate wireline replacement, especially as small businesses and consumers look to cut their overall telecom budgets. I think WiMax will stimulate the creation of the hybrid “part mobile/part fixed” devices and solutions, like BlackBerries and Treos versus laptops versus desktops. But I hope providers don’t make the same mistakes we saw with wireless Internet on cell phones and PDAs. They added “Internet browsers” to deliver the “mobile Internet” when nobody had time or inclination to surf the web from a phone. It does not work to just “replicate wireline” applications and services. The mobile or hybrid platforms need to be approached as unique environments, and user behavior and needs will be different.
Steve: To close our interview I would like to get a “Top 5” from you. Since we are facing some tough economic times ahead for possibly the next 12-18 months, what are the Top 5 things as new entrepreneurs you are going to continue to weather the storm?
Mary: Here is what we are doing, I hope they make sense for others too!
1. Focus on a winning customer value proposition! When you are defining your product, make sure it has a real value proposition, and clear monetization, especially if you need investment to help you grow. Investment for fun, cool stuff that bets on eyeballs has dried up. The only thing that makes sense now is something that solves a problem, especially if it increases revenue or saves time/money in excess of what it costs to purchase and use it.
2. Bootstrap! Keep costs down in every way possible, especially if you have investor funding; there is no guarantee a second round of financing will be available. Plan to be cash flow positive ASAP! Use shareware, virtual offices, barter and trade services with other professionals you would normally contract with. (I sometimes trade some free LBS consulting for business plan review with fellow entrepreneurs.) Use VC sites to get excellent free business plan templates. Use Linked-In to stay in touch with people and find experts to learn from. Use Survey Monkey to do free customer surveys, or pay to get premium services. Use free brain mapping software to document your product requirements more quickly than in PowerPoint or Word. Do everything you can yourself, work it until you think it is done, and then get it reviewed by an expert. This way you will pay just for their expertise which you need, not for basic legwork you can do yourself. Do your own legal first drafts using low cost templates. Do the “thinking” and generate the assumptions ahead of time before engaging a lawyer or accountant.
3. Stick with simple distribution channels at the start. Avoid taking on complex infrastructure until you have a proven revenue stream to support it, and money to jumpstart the channel with incentives at launch. If you are going with direct sales, start by finding someone who reps a similar line and could take your product on for commission only. Or find a distributor that invests coop funds, and show them a winning marketing plan that plays to their strengths and will move sales quickly.
4. Keep your product straightforward and differentiated. Focus all development work either on what is directly tied to revenue (customer demands for which they will pay), or features that will keep you apart from or above your competitors. Resist the temptation to duplicate your competitors’ features that generate a lot of buzz. Those same features added to your product may not generate $$ from your own target market and would be a waste of precious time you could have invested in what makes your product more valuable, and commanding premium prices.
5. Say thank you to everyone! To your customers, your business partners, your investors and supporters, your suppliers, your employees, and to your family. Entrepreneurs with passion make things happen, and creatively obtain help from many sources. They also press everyone for extra, suppliers, partners and employees. That commitment should be rewarded and appreciated, to ensure a long and healthy relationship.
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