BURLINGTON, Mass.--(BUSINESS WIRE)--May 6, 1999--The ability to support multiple
applications is required by smart card
systems in order to achieve successful implementation, according to a new report from
respected information technology
analyst group, Ovum, Inc. Ovum's report, Smart Card Systems: Multi-application
Technologies and Strategies, examines this
new dependency and the associated marketing and technology implications. Ovum anticipates
that the number of
multi-application smart cards will increase from 7% of cards shipped in 1999 to 30% by
2004.
According to Duncan Brown, analyst at Ovum Inc. in Burlington, MA, "Multi-application
smart card systems are mandatory.
Single application systems typically offer a low return on investment and are costly to
implement. With no multi-application
capabilities, such systems also offer a weak value proposition to the cardholder."
Implementers looking to benefit from smart
cards need to embrace multi-application technology and offer a suite of applications that
appeals to the targeted cardholders.
These multi-application systems are emerging as a new delivery channel that creates new
business opportunities and requires
organizations to change how they view existing business models and partnership strategies.
"Unlike the magnetic stripe card,
smart cards can support multiple applications and perform complex functions. These
features create opportunities to provide
new products and services. Organizations looking to benefit from multi-application smart
card systems need to address both
technology issues and business challenges," explains Brown.
The smart card is only a small part of the wider system infrastructure. According to
Brown, "Smart cards require both
implementers and suppliers to take a system-wide view to address the interoperability of
devices, applications and other smart
card technologies. Suppliers must also provide their products in the context of the entire
smart card delivery channel."
Addressing this issue, Ovum anticipates that by 2004 17% of all smart card interface
devices will be able to process multiple
smart card applications, up from 1% in 1999.
Transforming existing business models to the new smart card model is complex. In this
report, Ovum addresses the business
issues that organizations face when developing multi-application initiatives. According to
Brown, "Many organizations focus on
the issue of branding when rethinking their existing business models. This has slowed the
adoption of multi-application smart
cards as organizations protect their brand equity before considering entry into this
market. However, most prospective issuers of
smart cards need to deploy their applications on multi-application systems. These
organizations must resolve their branding
issues before developing collaborative partnerships to ensure the success of their
multi-application system implementations."
Smart Card Systems: Multi-application Technologies and Strategies is available from Ovum
Inc. and costs $2,775. Authored by
research director Duncan Brown and consultant Sarah Webber, the report details market
drivers, new technologies, multiple
applications and recommended strategies for implementers, suppliers and service providers,
as well as market development
scenarios and forecasts. It also profiles leading players in the multi-application smart
card systems market. For further product
information call Ovum, Inc. at (800) 642-OVUM or visit http://www.ovum.com
Ovum is an independent telecommunications and information technology analyst group,
providing high quality, authoritative
information and advice on key market, technical and regulatory developments. Ovum funds
its own research and accepts no
sponsorship from vendors or other interest groups. Ovum's customer base comprises
blue-chip organizations including
suppliers, users and policy makers world-wide. Ovum currently employs 190 staff at offices
in Boston, London and Melbourne.