Mobile_Commerce_Strategy

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Mobile_Commerce_Strategy

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Mobile Commerce Strategy:

1 Mobile Commerce Strategy

PowerPoint Presentation:

2 Text Plan Definition of MC Technology 1G......, Pervasive Computing Applications Location sensitive, Time Critical, Controlled by information receiver or provider ,EC vs. MC Value Chain Business Model

Defining m-commerce (Elliott, Phillips, 2004 ):

3 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, … )

The M-commerce Systems Environment:

4 The M-commerce Systems Environment Wireless Vending Devices (M-Wallet capable) Voice, Picture, SMS, And Data ( Elliott, Phillips, 2004 )

1G: Analog Communication (Elliott, Phillips, 2004 ) :

5 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

2G: Based on Digital Technology (Elliott, Phillips, 2004 ) :

6 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 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)

2G Phone connection to the Mobile Internet :

7 2G Phone connection to the Mobile Internet Source: Kavassalis et al., 2003

PowerPoint Presentation:

8 Source: Collis , 2003

3G: Third generation wireless communication (Elliott, Phillips, 2004 ) :

9 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

PowerPoint Presentation:

10 3G: Third generation wireless communication source form: 3GPP TS 23.228, 24.228, 23.102

4G: 4th Generation Wireless System source from: BWN Lab, web site [3]:

11 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 Entirely packet-switched networks All network elements are digital Higher bandwidth and lower cost (up 100Mbps) Tight network security

Pervasive Computing source from: IBM Web Site [4,5]:

12 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.

Pervasive Computing for a Nomadic Lifestyle Lessons Learned from MIT’s Project Oxygen, Zue 2004.:

13 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 …

M- Commerce Applications:

14 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

Taxonomy of M- Commerce Applications Balasubramanian et al. 2002:

15 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 1: Location Sensitive Dimension 2: Time Critical Dimension 3: Controlled by the Information Receivers or by the Providers

Mobile information assets: location sensitive Rao, Minakakis, 2003 ;Balasubramanian et al. 2002:

16 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)

Locations Assets (Elliott, Phillips, 2004 ) :

17 Locations Assets ( Elliott, Phillips, 2004 ) Location-based services information Location-based product Retailing Location-based Products Location-based Access Location-based Maps (directions)

Time Critical Balasubramanian et al. 2002:

18 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

Controlled by the information receivers or by the providers Balasubramanian et al. 2002:

19 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

M-commerce vs. E-commerce (Elliott, Phillips, 2004 ):

20 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

Comparison between E-commerce and M-commerce (Elliott, Phillips, 2004 ):

21 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 access Mobility and Portability of access

Comparison between E-commerce and M-commerce Barnes And Huff, 2003; Elliott, Phillips, 2004 :

22 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 ) PC Less than 0.5% 3.6%; 24%

M-Commerce Value Chain European Commission 1996 (Barnes, Stuart J. 2002):

23 M-Commerce Value Chain European Commission 1996 (Barnes, Stuart J. 2002)

European Mobile Portal and Media Value Chain:

24 European Mobile Portal and Media Value Chain Source: http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct2002.pdf

i-mode and Media Value Chain:

25 i-mode and Media Value Chain Source: http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct2002.pdf

PowerPoint Presentation:

26 MacDonald, 2003

M- Commerce Business Models MacDonald, 2003 :

27 M- Commerce Business Models MacDonald, 2003 Brand Building or Media Mix Customer Relationship Management Online Retail Premium Content Aggregation B2B Advertising

PowerPoint Presentation:

28 9% MacDonald, 2003

PowerPoint Presentation:

29 i- mode’s services Sources form: Web Site [6]

PowerPoint Presentation:

30 i- mode’s services Sources form: Web Site [6]

Obstacles & problems to M-commerce (I) (Elliott, Phillips, 2004 ):

31 Obstacles & problems to M-commerce (I ) ( Elliott, Phillips, 2004 ) Efficient and fast wireless telecommunications services are often focused within specific area In Develope worls, ex- 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

........ :

32 ........ 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 Many government are requiring mobile phone devices manufacturer to publish health evidence

The development of M-commerce:

33 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

The growth of spread of M-commerce (Elliott, Phillips, 2004 ):

34 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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