JETRO Spotlight Interview: Dr. Gerry Purdy

High-speed adoption of the latest technologies, essential core infrastructure and extensive assets make Japan a world leader for mobile and wireless technologies.  From his extensive experience working with world leading mobile computing and wireless data technology companies, Dr. Gerry Purdy, principal analyst of MobileTrax LLC and venture advisor for Diamondhead Ventures, provides his insight on the current state of the industry, Japanese innovation the world could not do without, and what the future holds for mobile and wireless developments.

JETRO: From where have you gained much of your experience in mobile computing and wireless data technology?

Purdy: I was very fortunate that I had an opportunity to work in the industry - first for a major hardware company in the form of Compaq Computer, followed by a major software company, Phoenix Technologies - before I actually became an industry analyst, so I had both hardware and software in my background. I also got to work for a division of Fujitsu, so I got a chance to work not only for notebook and portable PCs but as well as for a division of Fujitsu that built one of the first handheld computers. So I’ve worked in small-form factor, large-form factor, and with Phoenix I’ve worked with software associated with both portable computing in such things as power management, spend/resume, and managing wireless connectivity. This experience was very good training to become first a mobile and wireless industry analyst and more recently a venture capitalist.

JETRO: Could you describe the current state of mobile computing and wireless data technology developments?

Purdy: Around the time of holding the World Series, I once was asked by another reporter, “If wireless were a baseball game, what inning are we in?” And I replied, “Spring training.” The poetic answer, and somewhat comical relief, comes to actually be representative of the reality of the market. And although we have billion dollar businesses that are operating in cell phone carriers, Nokia handset manufacturing companies, and portable computer makers, when you look at the entire world on this global market, it’s a humbling experience because you find that we really aren’t yet in the big times, the big leagues, the major innings of a baseball game, if you will.

Only 20% of the people of the world have cell phones, meaning 80% of the market is untapped. You have wireless networks just now happening in the enterprise, and people are talking about trying to make those wireless networks running in and around a municipality. You have organizations that have pretty much adopted portable computers, but they haven’t really integrated wireless handhelds and don’t have the infrastructure to help the company run efficiently and effectively, other than maybe doing email.

So when you sum all that up, you have a situation that says there is still far, far yet to be done and far, far more people yet to benefit from mobile and wireless, and far, far more business yet to be realized as a result of that growth opportunity.

JETRO: What do you think are particular strengths of Japanese innovation, R&D and manufacturing?

Purdy: Let me start with an example: The day that Lenovo announced that it was acquiring the PC business from IBM, there was a conference call with analysts. And I asked the CEO of Lenovo, Steve Ward, “What about innovation? What about all the technology leadership IBM has been known for through its Yamato labs in Japan, where all the ThinkPad innovation and technology sits?”

And he said it was absolutely critical that the Yamato labs be part of the Lenovo acquisition so they could make sure that ThinkPad and future product lines that Lenovo would develop would have an opportunity to maintain those innovations that have allowed ThinkPad to be the number one brand out there in portable computing. So I think that we have seen right off the bat in a major billion dollar-plus business transaction a focus on making sure that the innovation capabilities that already exist in Japan relative to IBM are maintained in that new business venture.

Number two: I think that displays are clearly an area where most of the innovation today—it may not be all the manufacturing, but certainly most of the innovation—is happening in Japan.