wireless computing

When the Horizon
Turns to Vertical

Andrew M. Seybold

One of the signs that a product or group of products is beginning to catch on is when small start-ups begin using the generic platform products for vertical market applications.

Today, a number of companies are turning to Windows CE devices and are adding their own software to make application-specific devices for vertical markets. Sometimes the applications are loaded into existing memory space on the device. In other cases, they are written to be loaded onto a Compact Flash card. Either way, the fact that there are a growing number of companies making use of the Windows CE platform is good news for both the operating system and its hardware vendors.

Starting a company to solve a specific problem

Parkstone Medical Information Systems, Inc., a small venture-funded firm in Florida, is representative of a growing number of companies created by end users who see a problem that needs to be solved, and go for it.

Parkstone Medical Information Systems was founded by a doctor who was frustrated with all of the paper shuffling that goes on in the medical profession, and cuts deeply into the time a doctor spends doing his or her important job. To add to the problem, when the doctor is called from home to see a patient in an emergency room situation, there is no way to access the patient's records before heading for the ER. Nor can doctors access the patient's records for use during a telephone consultation after hours.

Parkstone Medical set out to solve this problem. The solution required a device that is small enough that a doctor won't mind carrying it, yet large enough that information can be read in adverse conditions. The device had to be able to connect with existing medical computer systems, and it had to be able to quickly and easily record voice notes and/or handwritten notes.

Parkstone Medical chose the Windows CE Palm-size PC platform because it was the only handheld platform that supported color screens, handwriting capture, and voice recording in a single device. While the color Palm-size PCs are larger than some other palm-size devices, the color screen and backlighting was deemed to be mandatory for this application.

Once the company decided on the platform, it set out to design its software application. Because one of the founders was a practicing physician, the requirements could be well defined and tweaked as the application was taking shape. Parkstone Medical folks decided that in order to get these devices into the hands of as many doctors as possible, they had to keep the price down. To this end, they bundled a pharmaceutical company's prescription database with the application. The pharmaceutical company subsidizes a significant portion of the customers' cost in return for having its database resident in the device. When the doctor needs to prescribe drugs, theirs will be the first that come to mind (or to the top of the screen). The application is complete, field-testing is underway, and product rollout is not far behind.

The number of start-up companies such as Parkstone Medical is growing rapidly. These companies usually start with someone who understands an industry and who buys a device for personal use. After learning to use the standard features and functions of the device, they begin to look at ways that the device can help in the specifics of their job. It doesn't take long for these early adopters to grasp the concept of turning the horizontal product into a vertical market tool.

Once the idea has been formed, the process of forming a company, finding the right folks to turn the idea into reality, and finding funding for the endeavor begins. Parkstone Medical is an example of what can be done when an expert in a specific field begins thinking about a handheld computer in terms of his or her professional needs. Handheld PCs are about making things easier and providing business solutions.

Turning the process around

Another way to approach this type of project is to turn the process around. Instead of waiting for someone to come to the realization that there is an opportunity to help his or her industry become better automated (as well as to make some money), wouldn't it make sense for our industry to seek these folks out and plant the seed? The most successful vertical market software addresses the issues and solves problems for companies within a specific industry.

Vertical applications bring together the folks with the vision and the top-notch programmers. Programmers are smart folks, but unless there is input from an industry, the software they write will not hit the target. The industry "experts" must also leave their ego at the door. They may be expert in their field, but programmers are the experts when it comes to coding applications. Oftentimes the programmers can see a way to make something better or to streamline a process. The "experts" must be willing to stand back and objectively evaluate the overall results. Likewise, programmers need to understand that as the code is developed, changes will be needed. The only way to really get it "right" is to be able to listen carefully, code, listen carefully, re-code, listen some more, and re-code.

Attracting money

A start-up company focusing on a vertical market may be able to turn a profit initially, but the real question is can the company sustain performance in the long run? If it chooses a vertical market that is small in size, it will be more difficult to attract initial investors and make money with a product. It is better to choose an initial market with the intent of expanding into other related markets.

Using Parkstone Medical as my example again, the general physician's market is a large one, but there will be competition from other companies with similar products. Perhaps in addition to this general market, Parkstone Medical can craft versions of its application that are specific to surgeons, OB-GYNs, or even veterinarians. Why shouldn't vets benefit from streamlined information handling and access? Vets are doctors, they have many patients, and they need access to patient records. They deal with emergencies, and they prescribe drugs.

Entrepreneurs tend to work in a vertical market they are familiar with. But this does not mean that their concept cannot be applied to other markets as well. Of course, they must obtain sufficient input from an expert in that segment of the marketplace.