Transcript Mobile Commerce Strategy

Mobile Commerce Strategy
M-Commere Strategy
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Agenda
Definition
Technology
1G,2G,2.5G,3G,iB3G,4G, Pervasive Computing
Applications
Location sensitive, Time Critical, Controlled by information
receiver or provider ,EC vs. MC
Value Chain
Business Model
Q&A
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Defining m-commerce
(Elliott, Phillips, 2004 )
Mobile commerce (M-commerce) is concerned
with the use, application and integration of
wireless telecommunication technology and
wireless devices within the business systems
domain.
Location independent connectivity
Mobile Internet
Mobile E-commerce
Mobile phone, Mobile device (PDA, wireless vending machines,
wireless LAN,…)
Ramifications for wireless design:’E’ ‘M’
(Venkatesh, eds., 2003)
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The M-commerce Systems Environment
(Elliott, Phillips, 2004 )
Wireless
Vending
Devices
(M-Wallet
capable)
Voice,
Picture, SMS,
And Data
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A short history of wireless computing
Sources form: Web Site [1]
In 1897,
Guglielmo
Marconi first
demonstrated
the ability of
wireless contact
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1G: Analog Communication
(Elliott, Phillips, 2004 )
Only in certain environments, particularly in government agencies
and the military
1946 AT&T Bell introduced the first commercial mobile phone
1960s AT&T Bell developed the IMTS (Improved Mobile Telephone
Services)
Late 1970s and early 1980s, microprocessor technology and
improvements in cellular network infrastructure led to the birth of
1G, wireless telecommunications systems
1980s
Nokia in Finland
Ericsson in Sweden
Motorola in USA
Sweden, Japan, and USA developed their own standard
Roaming was extremely difficult
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1G: Analog Communication
(Elliott, Phillips, 2004 )
NMT system (Nordic Mobile Telephone )
Finland, Norway and Sweden
AMPS (Advanced Mobile Phone Service)
In various parts of Asia, the USA and Canada
ETACS (Extended Total Access Communication
Systems)
United Kingdom
JDC (Japan Digital Cellular) network system
Japan
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2G: Based on Digital Technology
(Elliott, Phillips, 2004 )
1G, lack of security and the proliferation of different wireless
network standards
2G occurred in early 1990s
GSM (Global System for Mobile Communication)
More global compatible telecommunication network
European-Centric development
Less costly
Roaming was possible
Fully specify the complete network structure
As well as voice communications, 2G mobile phone can send and
receive message
SMS (Short Messaging Services)
Mobile Internet Browsing, via the WAP (Wireless Applications Protocol)
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2G Phone connection to the Mobile Internet
Source: Kavassalis et al., 2003
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2.5G: Digital With Package Switched
(Elliott, Phillips, 2004 )
One significant drawback to 2G GSM
network – primarily voice-centric with limited
data transmission characteristics
GPRS (General Packet Radio Service)
Developed in late 1990s and early 2000s
Higher transmission rates and always-on
connectivity
E-mail can be received on a mobile phone handset
without the need to dial-up
WAP content can be accessed at a quicker rate
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Source: Collis , 2003
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3G: Third generation wireless communication
(Elliott, Phillips, 2004 )
3G technology is aimed at providing a wide variety of services and
capability in addition to voice communication, such as Multimedia
data transfer, video streaming, video telephony, and full, unabridged
Internet access
Providing Data Centric Services with enhanced voices and
multimedia capabilities
UMTS (Universal Mobile Telephony Systems )
A new Network service replacement for the GSM
3G is to provide an economically viable and technology-enhanced
PCS portal
First introduced to Japan in 2001, and spread to Europe and USA in
2002
Life Style Portal
Location dependent information
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3G: Third generation wireless communication
source form: 3GPP TS 23.228, 24.228, 23.102
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Sources form: Web Site [2]
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Future Development
iB3G
4G
Pervasive Computing
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iB3G: Combining the best of both
dual-mode handset
Source form: 余孝先, 2004
WLAN
Cellular
Coverage
Mobility
Billing System
Roaming
Widespread
2G/2.5G, PHS,3G,
Bandwidth
Cost
Multimedia Services
Always Connected
Easy to Setup
802.11a,802.11b,
802.11g
B3G
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4G: 4th Generation Wireless System
source from: BWN Lab, web site [3]
Reasons to Have 4G
Support interactive
multimedia
Wider bandwidth, higher
bit rates
Global mobility and
service portability
Low cost
Scalability of mobile
networks
What’s New in 4G
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Entirely packetswitched networks
All network elements
are digital
Higher bandwidth and
lower cost (up
100Mbps)
Tight network security
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Pervasive Computing
source from: IBM Web Site [4,5]
Pervasive Computing
Enabling information access anywhere,
anytime, on demand
Pervasive Computing delivers mobile
access to business information without
limits- from any device, over any network,
using any style of interaction. It give
people control over the time and the place,
on demand.
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Pervasive Computing for a Nomadic Lifestyle
Lessons Learned from MIT’s Project Oxygen, Zue 2004.
Some System-Level Challenges
Pervasive: Be available everywhere, at anytime, for anybody
Nomadic: Allow people and devices to move around freely
Embedded: Live in our world, sensing and affecting it
Human-centered: Understand and respond to human intent; solve
real problems
Non-intrusive: Preserve privacy while ensure security
Adaptable: Provide flexibility in response to change
Eternal: Must never shut down or reboot
Organic: Allow applications and services to be added easily
…
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Integrated multimedia nature of 3G domainthe PCS (Personal Communications Service)
(Elliott, Phillips, 2004 )
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M- Commerce Applications
Delineating the effects of M-commerce: A
space- time matrix
M-Commerce applications are categorized
along three dimensions:
Location sensitive
Time critical
Controlled by information receiver or provider
EC vs. MC
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Delineating the effects of M-commerce:
A space- time matrix
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Balasubramanian et al. 2002
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Delineating the effects of M-commerce:
A space- time matrix
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Balasubramanian et al. 2002
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Taxonomy of M- Commerce Applications
Balasubramanian et al. 2002
The extent to which the
applications is location
sensitive
The extent to which the
applications is time
critical
The extent to which the
applications is
controlled by the
information receivers or
by the providers
Dimension 3:
Controlled by the
Information Receivers
or by the Providers
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Dimension 2:
Time Critical
Dimension 1:
Location Sensitive
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Mobile information assets: location sensitive
Rao, Minakakis, 2003 ;Balasubramanian et al. 2002
Deploy Mobile Internet services based on the
various benefits of mobility
Information that is provided on a geographical
locations
Information that tracks an individual user (via
their mobile phone) to determine their specific
geographical location anywhere in the world
• GPS (Geographical Positioning Systems)
• Support location-based services (LBS)
Location-tracking services are encouraged by both
business and national government
• e911 in USA: 999 in UK; 119 in Taiwan
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Locations Assets
(Elliott, Phillips, 2004 )
Location-based services information
Location-based product Retailing
Location-based Products
Location-based Access
Location-based Maps (directions)
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Time Critical
Balasubramanian et al. 2002
Applications vary along the dimension in terms of
the degree to which they are time critical
Participation in a virtual auction (+)
Mobile access to digital libraries (–)
It will involve the exchange of information related
to a scheduled
Flight departure
Information that quickly depreciates in value
A stock price
Information that is required to address some
emergence
A roadside assistance
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Controlled by the information receivers or
by the providers Balasubramanian et al. 2002
Applications controlled by an information receiver
Relates to more random, unforeseen needs
A call for service after an automobile breakdown
Applications controlled by an information provider
Tend to be marketing “broadcast” activities
• Coupon announcement
Maintain on an ongoing basis by service providers or
coordinators
• Monitoring of truck fleets using on board sensors
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M-commerce vs. E-commerce
(Elliott, Phillips, 2004 )
E-Commerce is concerned with data
and information transfer, and with
Internet access, via wired technology
M-Commerce is concerned with data
and information transmission, and
Internet access, via wireless
technologies and various portable
devices
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Comparison between E-commerce and M-commerce
(Elliott, Phillips, 2004 )
Factor
E-Commerce
M-Commerce
Product or service focus
Product focus
Service focus
Product or service provision
Wired Global access
Wireless Global access
Product or service assets
Static information and data
Dynamic location-based
data
Product or service attraction Fixed non-time-constrained Mobility and Portability
access
of access
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Comparison between E-commerce and M-commerce
Barnes And Huff, 2003; Elliott, Phillips, 2004
Factor
E-Commerce
M-Commerce
Personal Devices
PC: Medium
Mobile phone : High
Network Operators can
determine the services
No
Yes, like a gatekeeper
Usage and Applications will
charge
No standard way to charge;
PC is essentially free
Users seem prepared to pay
a ‘mobility premium’
User’s Location
Hard to find
Network Operator know
who you are, where you are,
can direct you to the portal
of choice, and can charge
you money
Reverse Billing
No
Yes, in which services are
charged directly to the
user’s phone bill
Display Screen Size and Memory Medium
Small
Click through rates for banner
AD and e-Mail (i-mode)
3.6%; 24%
PC Less than 0.5%
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M-Commerce Value Chain
Emerging Industry Structure (Bane, Bradley, and Collis (1998))
Shopping
Phone
Television Computer
Voice
Video
Digital Wormhole
Data
Terminal
Shop at home
Facilitating
Technologies
Entertainment
Transactions
Education
Pornography
Gambling
Hardware
Fileservers
CPU
Software
Computing Algorithms
Digital Signal Processing
General Magic
ATM
Transmission
Manipulation
Packaging
Publications
Content
= Industry size (relative)
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M-Commerce Value Chain
European Commission 1996 (Barnes, Stuart J. 2002)
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European Mobile Portal and Media Value Chain
Source: http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct2002.pdf
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i-mode and Media Value Chain
Source: http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct2002.pdf
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MacDonald, 2003
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M- Commerce Business Models
MacDonald, 2003
Brand Building or Media Mix
Customer Relationship Management
Online Retail
Premium Content
Aggregation
B2B
Advertising
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MacDonald, 2003
9%
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i- mode’s services Sources form: Web Site [6]
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i- mode’s services Sources form: Web Site [6]
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Sources form: Web Site [2]
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Sources form: Web Site [2]
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Sources form: Web Site [2]
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Obstacles to M-commerce (I)
(Elliott, Phillips, 2004 )
Efficient and fast wireless telecommunications services
are often focused within specific area
• West Europe,the USA, Japan
• Not available in low population area
• Many developing countries has led these countries to adopt
wireless telecommunications
Wireless Mobile Internet access more costly than wired
Internet access
• 3G technologies and devices often deliver data content that are
indistinguishable form those available on the wired Internet
• Mobile Internet users are accustomed to paying for Internet and
correspondingly expect to pay for certain levels service and
reliability
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Obstacles to M-commerce (II)
(Elliott, Phillips, 2004 )
Concerns over privacy and security still pervade the
wireless data transmission world
• 3G technology is inherently more secure than 2G
• Many government and business organizations banned the
use of 2G mobile phone for private or secure conversations
Many individuals and organizations still harbor concerns
over the health issues of wireless technology
• With regard to microwave radiation emission levels
• Up to the year 2000 the studies remain inconclusive
• Many government are requiring mobile phone devices
manufacturer to publish health evidence
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The development of M-commerce
In Europe and Japan
Focus on delivering to the customer technology, such as
internet –enable mobile phones, and the provision of Mobile
Internet services
Europe view: Lifestyle consideration
In USA
Focus on the use of palm computers, other mobile devices
(e.g. the BlackBerry mobile E-mail devices), and other
wireless technology to improve the effectiveness of business
systems process
USA view: Support mobile working
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The growth of spread of M-commerce
(Elliott, Phillips, 2004 )
Innovations:
Developments in mobile wireless application and
technologies
Adoption:
Proliferation and use wireless technologies by
(potential) customers
Increased competition:
Desired by organizations to expand markets and
added value to products and services
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Kodama, 2003
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Q&A
Global Competition
Convergence
Location Base
Time Critical
Personalize
Killer Application
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Reference：
余孝先，”雙網整合之技術、服務、與應用研發策略”，行政院2004年產業科技策略會
議。
Elliott, G.; Phillips, N., Mobile Commerce and Wireless Computing Systems, Pearson
Educations Limited, England. 2004.
Kavassalis, P., Spyropoulou, N., Drossos, D., Mitrokostas, E., Gikas, G., & Hatzistamatiou, A.
(2003). Mobile permission marketing: Framing the market inquiry. International Journal of
Electronic Commerce, 8(1), 55-79
Collis, D., Carrier Grade Voice over IP, McGraw-Hill, Second Edition, 2003.
Zue, V., “Pervasive Computing for a Nomadic Lifestyle,” 行政院2004年產業科技策略會議
2004.
Balasubramanian, S., Peterson, R.A. and Jarvenpaa, S. L., “Exploring the Implications of MCommerce for Markets and Marketing,” Journal of the Academy of Marketing Science, Vol. 30,
No. 4, Fall 2002, pp.348-361.
Rao, B. and Minakakis, L., “Evolution of Mobile Location-based Services,” Communications
of The ACM, December 2003, Vol. 46, No. 12, pp.61-65. -84.
Barnes, Stuart J. And Huff, Sid L., “Rising Sun: iMode and the Wireless Internet”,
Communications of The ACM, Nov.2003, Vol. 46, No. 11, pp. 79-84.
Bane, P. W., Bradley, S.P. and Collis, D. J. “The Converging Worlds of Telecommunication,
Computing, and Entertainment,” in Bradley, S. P. and Noland, R. L. eds., Sense and Response:
Capturing Value in the Internet Era, Harvard Business School Press, Boston, MA., 1998.
Barnes, Stuart J. “The Mobile Commerce Value Chain: Analysis and Future developments”,
International Journal of Information Management, 22, 2002, pp.91-108.
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Reference：
MacDonald, D. J. “NTT DoCoMo’s i-mode: Developing win-win relationships
for mobile commerce” In B. E. Mennecke and T. Strader, Eds., Mobile
Commerce: Technology, Theory and Applications, Idea Group Publishing,
Hershey, 2003, 1-25.
Kodama, M. “Strategic community-based theory of firms: case study of NTT
DoCoMo”, Journal of High Technology Management Research, 14, (2003), pp.
307-330.
Reference Web Sites:
[1]http://nobelprize.org/physics/laureates/1909/marconi- bio.html
[2]http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct
2002.pdf
[3] http://users.ece.gatech.edu/~jxie/4G/ Mobility Management in 4G
Wireless Systems.
[4] http://www-306.ibm.com/software/pervasive/index.shtml
[5] http://www-306.ibm.com/software/pervasive/module/index.shtml
[6] http://www.nttdocomo.com
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