m-commere strategy1 mobile commerce strategy. m-commere strategy2 agenda definition technology...

M-Commere Strategy 1

Mobile Commerce Strategy


Agenda

Definition

Technology1G,2G,2.5G,3G,iB3G,4G, Pervasive Computing

ApplicationsLocation sensitive, Time Critical, Controlled by information

receiver or provider ,EC vs. MC

Value Chain Business Model

Q & A


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 connectivityMobile InternetMobile E-commerceMobile phone, Mobile device (PDA, wireless vending machines, wireless LAN,…)

Ramifications for wireless design:’E’ ‘M’ (Venkatesh, eds., 2003)


The M-commerce Systems Environment

WirelessVendingDevices

(M-Wallet capable)

Voice,Picture, SMS,

And Data

(Elliott, Phillips, 2004 )


A short history of wireless computingSources form: Web Site [1]

In 1897, Guglielmo Marconi first demonstrated the ability of wireless contact


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

Only in certain environments, particularly in government agencies and the military1946 AT&T Bell introduced the first commercial mobile phone1960s 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 FinlandEricsson in SwedenMotorola in USASweden, Japan, and USA developed their own standardRoaming was extremely difficult


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 systemJapan


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

1G, lack of security and the proliferation of different wireless network standards2G occurred in early 1990sGSM (Global System for Mobile Communication)

More global compatible telecommunication networkEuropean-Centric developmentLess costlyRoaming 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

Source: Kavassalis et al., 2003


2.5G: Digital With Package Switched(Elliott, Phillips, 2004 )

One significant drawback to 2G GSM network – primarily voice-centric with limited data transmission characteristicsGPRS (General Packet Radio Service)

Developed in late 1990s and early 2000sHigher transmission rates and always-on connectivityE-mail can be received on a mobile phone handset without the need to dial-upWAP content can be accessed at a quicker rate


Source: Collis , 2003


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 capabilitiesUMTS (Universal Mobile Telephony Systems )

A new Network service replacement for the GSM3G is to provide an economically viable and technology-enhanced PCS portalFirst introduced to Japan in 2001, and spread to Europe and USA in 2002 Life Style PortalLocation dependent information


3G: Third generation wireless communicationsource form: 3GPP TS 23.228, 24.228, 23.102


Sources form: Web Site [2]


Future Development

iB3G4GPervasive Computing


iB3G: Combining the best of bothdual-mode handset

Source form: 余孝先 , 2004

Cellular

CoverageMobilityBilling SystemRoamingWidespread

2G/2.5G,

PHS,3G, B3G

WLANBandwidthCostMultimedia ServicesAlways ConnectedEasy to Setup802.11a,802.11b, 802.11g


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

Reasons to Have 4GSupport interactive multimediaWider bandwidth, higher bit ratesGlobal mobility and service portabilityLow costScalability of mobile networks

What’s New in 4GEntirely packet-switched networksAll network elements are digitalHigher bandwidth and lower cost (up 100Mbps)Tight network security


Pervasive Computingsource from: IBM Web Site [4,5]

Pervasive ComputingEnabling information access anywhere, anytime, on demandPervasive 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 LifestyleLessons Learned from MIT’s Project Oxygen, Zue 2004.

Some System-Level ChallengesPervasive: 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

…


Integrated multimedia nature of 3G domain-

the PCS (Personal Communications Service)

(Elliott, Phillips, 2004 )


M- Commerce Applications

Delineating the effects of M-commerce: A space- time matrixM-Commerce applications are categorized along three dimensions:

Location sensitiveTime criticalControlled by information receiver or provider

EC vs. MC


Delineating the effects of M-commerce:

A space- time matrix Balasubramanian et al. 2002


Delineating the effects of M-commerce: A space- time matrix Balasubramanian et al. 2002


Taxonomy of M- Commerce ApplicationsBalasubramanian et al. 2002

The extent to which the applications is location sensitiveThe extent to which the applications is time criticalThe 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

Deploy Mobile Internet services based on the various benefits of mobility

Information that is provided on a geographical locationsInformation 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


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

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 valueA 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

Applications controlled by an information receiverRelates to more random, unforeseen needsA call for service after an automobile breakdown

Applications controlled by an information providerTend 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 )

E-Commerce is concerned with data and information transfer, and with Internet access, via wired technologyM-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 )

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-commerceBarnes 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 ChainEmerging Industry Structure (Bane, Bradley, and Collis (1998))

Shopping

Entertainment

Shop at home

Transactions

Pornography

Education

Publications

Gambling

Facilitating Technologies

HardwareFileservers

CPU

SoftwareComputing Algorithms

Digital Signal ProcessingGeneral Magic

ATM

Digital Wormhole Terminal

Transmission

Manipulation

Packaging

Content

Phone

Voice

Television

Video

Computer

Data

= Industry size (relative)


M-Commerce Value ChainEuropean Commission 1996 (Barnes, Stuart J. 2002)


European Mobile Portal and Media Value Chain

Source: http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct2002.pdf


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


MacDonald, 2003


M- Commerce Business Models MacDonald, 2003

Brand Building or Media MixCustomer Relationship ManagementOnline RetailPremium ContentAggregationB2BAdvertising


9%

MacDonald, 2003


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


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


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


The development of M-commerce

In Europe and JapanFocus on delivering to the customer technology, such as internet –enable mobile phones, and the provision of Mobile Internet servicesEurope view: Lifestyle consideration

In USAFocus 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 processUSA view: Support mobile working


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


Kodama, 2003


Q & A

Global CompetitionConvergenceLocation Base Time CriticalPersonalizeKiller Application


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), 55-79Collis, 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 M-Commerce 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.


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/JukkaHelin3GinJapanOct2002.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

m-commere strategy1 mobile commerce strategy. m-commere strategy2 agenda definition technology...

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