Why Mobile Your Business?

Professor Jason C.H. ChenSchool of Business Administration

Gonzaga UniversitySpokane, WA 99258chen@gonzaga.edu

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i For Accountingv Information systems capture, organize,

analyze, and disseminate data and information throughout modern organizations

i For Financev Information systems turn financial world on

speed, volume, and accuracy of information flow

What’s in IT for Me?

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What’s in IT for Me? (continued …)

i For Marketingv The Internet and the World Wide Web have

opened an entirely new channel for marketing and provided much closer contact between the consumer and the supplier (CRM)

i For Production/Operations Managementv Every process in a product or service’s value

chain can be enhanced by the proper use of computer-based information systems

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What’s in IT for Me?

i For Human Resource Managementv Employees can handle much of their personal

business themselves, and the Internet makes a tremendous amount of information available to the job seeker

i For Management Information Systems (MIS)v The opportunities for those planning a career in MIS

grows as fast as the adoption of information technologies into organizations everywhere

MIS is an integral part of business operations, whereas, the database is the core component to improve and/or enhance the business operations.

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Evolutions of Computing and Communications

i In the early 70’sv mainframes and centralized computing

i in the 80’sv PC and client/server computingv decentralized and distributed computing and

communicationsi in the 90’s

v Internet and WWWi As we enter the ‘00s

v pervasive computing with wireless and web technologies

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What Corporations will Succeed?

i Corporation that will succeed in this decade are those that enable their knowledge workers to have access to their informationv at anyplace, v at anytime andv on any device.

i From the old mode of “connecting to a fixed place” to the new mode of v “connecting to a person on the move”.

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Why Mobilize Your Business

i Mobilization has changed the landscape of business by enabling companies and industries to move beyond the fixed-session relationships in place today with their employees, clients and partners.

i Mobilization opens up opportunities to extend into new channels, gain new customer bases, and create stronger partnerships.

i Mobilization has also changed the way we live and work.

i Mobilization as a key competitive and ROI strategy.

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eBusiness Key Conceptsi eBusiness

v The overall strategy of how to automate old business models with the aid of technology to maximize customer value and profits.

i eCommercev The process of buying and selling products and services

over digital mediai eCRM (eCustomer Relationship Management)

v The process of building, sustaining, and improving eBusiness relationships with existing and potential customers through digital media

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Mobile e-CommerceMobile e-Commerce can be defined as a value added service that enables end-users to conduct reliable, secure financial transactions that involve trade or payment. Mobile e-commerce services can be classified into categories such as banking, trading, reservations and ticketing, shopping, and games and gambling.

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The Hottest Area of Business Today i The hottest area of business today is combining two

of explosive growth industriesv mobile communications andv the Internet

i The concept of the mobile Internet is fundamentally simple:v bring the power of the Internet from your desktop to your

pocketv the concepts time of day and location have lost their

importance; instead, online access and availability are the key factors for success.

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m-Business and mPortal

i The key to mobile business isv leveraging business existing information sources

and making it available to users of mobile devices.i The challenge is to integrate all the various

systems and processes that supply the information and make it suitable for a mobile.

i mPortal provides the tools that help companies meet this challenge.

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Why m-Business?

i “So prepare to disconnect. Anything tethered, anything not responding faster than our fingertips, anything not online all the time will soon be ancient history.”

Upside Magazine, Feb. 2000

i The next wave in business transformation is the mobilizing of corporate information to enable the concept of “enterprise everywhere”.

mPORTAL Inc.

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Growth of Mobile Business

i The future will be dominated devices. In a few years there will be more mobile devices in the hands of users than any other interactive or communication device used by people today.

i The proliferation of Internet enabled mobile devices is expected to be a global phenomenon establishing the mobile device as the dominant internet access device.

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Why Go Mobile?

i Mobilization promises significant and quick ROI, because it offers two strong value propositions:v getting more from current available information

and using that information to generate revenue, decrease per transaction costs, and

v improve professional and personal productivity.

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Mobile Benefits

i Anytime, anywhere access to information presents incredible opportunity for business.

i Mobilization v increases business volume,v improves customer relationships,v leverages existing infrastructure investments,

andv streamlines internal processes.

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Why Mobile your Business?

“Enterprises that do not make key parts of their business mobile by using wireless technologies will place themselves at a competitive disadvantage.”

GartnerGroup

“Mobile Applications are likely to be one of the highest priorities for corporate groups in the next few years.”

JP Morgan

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Figure: Forecast of users of mobile and fixed e-commerce (Source: ARC Group, Intelligence).

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How and What Strategy

Maximize investment in current information infrastructure.

Use information in new, profitable ways

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1. Maximize investment in current information infrastructure.

i Mobilization extends the information contained in these systems to new channels, with anytime, anywhere access.

i In doing so, mobilization leverages the infrastructure already in place to create new business opportunities.

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Examples of business information extended to Mobile Users

i Customers conduct financial transactions from any mobile device; access airline schedules and travel updates, set-up utility accounts, or consult real estate listings.

i Mobile professionals continue communicating with colleagues by email or instant messaging and provide customers with valuable service while out of the office.

i Sales people access client information while on site and respond immediately to client requests.

i Service teams track orders and check inventory from the field.

i Clients re-order products by using mobile devices to scan items.

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Cost Savings

i Leveraging existing infrastructure also provides significant cost savings for business.v Companies can maximize returns on their current

investment while reaping the benefits of mobilization.v By using existing infrastructure, businesses can reduce

implementation time and minimize the number of expensive technical resources devoted to implementation.

v By using existing IS also helps business maintain control of customer, partner, and employee communications and ensures that partners, clients and customers receive consistent information across all forms of access. N

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2. Use information in new, profitable ways

i Generate new revenue streamsv that are traditionally time or location sensitive.

i Improve customer relationshipsv business today must look beyond product and price v the customer care strategies can reduce per transaction

costs due to decreasing call center costs.i Increase productivity

v it can increase field staff productivity and reduce costs by streamlining operational efficiency.

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Mobile Opportunities

i Business in almost any industry want the anytime, anywhere benefit of mobility to create new business opportunities. v Communications (Field Service and Repair)v Financev Real Estatev Healthcarev Retail, Transportationv Food & Beverage, Insurancev Restaurant/Food Service

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Mobilization as a key competitive and ROI strategy

i E-mail (59%)i Internet Access (11%)i Intranet Access (13%)i SFA (Sales Force Automation) (11%)i Other (6%)

The very nature of mobile and wireless applications makes it relatively easy for companies to identify significant ROI gains that are linked to the use of mobile devices and solutions that extend enterprise resources.

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ROI Listi The ROI list of measurable improvements and

productivity gains continues throughout the company’s extensive list of customer engagements. These include:v An increase in weekly customer callsv Increased efficiency of support departmentsv enhanced integration with product developmentv increased revenue and new revenue streamsv a reduction in operating expensesv stronger ties to customersv improved market intelligencev A reduction in the number of order changes and delays caused

by order clarifications.

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ROI as a Competitive Advantagei A solutions approach to creating useful and

productivity-enhancing wireless systems.v Applications for field services and CRM.v The company’s mobile enterprise applications are also

developed with an eye toward providing some measurable return on investment (ROI), as well as to streamline operating efficiencies and business processes, and thereby enhancing a company’s competitive advantage.

v Customer have full access to real-time data that can be used to optimize sales; enhance quality assurance, survey work, and merchandising; and increase overall customer service.

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Working From a Mobilization Checklist

i Decide exactly what problems it hopes to solve by using a wireless system.v Do the planned mobile and wireless applications allow a company to

cost-effectively connect with, manage, and share information with mobile workers?

v Do the systems and products offered by a developer empower mobile workers who are engaged in al areas of a compan1y including sales, marketing, quality assurance, and customer service.

v Are the approaches to wireless highly targeted, as opposed to general?

v Does the developer have a wide range of experience in a specific vertical area, or established partnerships with “best of breed” vendors that can provide all of the necessary parts of an integrated and successful wireless system?

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A Solutions-Based Approach to Real World Problems

i At the very minimum, user considering any mobile solution should:v Decide just what it is they want to mobilize, and how

that information will be use.v Talk to the people who will be using mobile systems in

the field to discover their needs.v Make every effort to avoid short-term solutions that are

not adaptable or scalable.

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Formula for Customer Benefit

i Consumer benefit =+ v(value of market offering)+ b(value of brand)+ r(value of relationship)- c(cost of market offering)- t(cost of time)

i The v, b, r, c, and t vary across customer segments and individual customers.

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Mobile Considerations

i Targeted effective mobile solutions require businesses to consider how to develop strategies around:v maximizing value to the businessv decreasing time-to-marketv ensuring that the solutions can grow and scale to meet

current and future business needsv minimizing development costs

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Why m-Portal?

i Leveraging its superior solutions and best-in-class partnerships, mPortal provides premier mobile delivery solutions that enable businesses to mobilize their existing applications and infrastructure.

i m-Portal enables partners, clients, and customers to rapidly and cost-effectively develop and deploy mobile applications.

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m-PORTAL SERVER

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Why m-Business?i To be a market leader, a company must successfully

navigate the tumultuous sea of technology to position itself for future prosperity.v As company leaders catch their breath form the Internet’s

storm, new clouds from on the horizon: wireless and broadband.

i While many companies have some notion as to how to address broadband, this is often not the case with wireless.v A company must not ignore its wireless strategy; it must

formulate a wireless course before the storm arrives.N

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Mobilization: Business Perspective

i Mobilization means breathing new life into a traditionally stationary and rigid enterprise -v it means leveraging and extending information and

functionality to and from your enterprise, enabling accelerated decision.

v It encompasses both the person and the machine, but is emphasis is extending business resources to all touch points within an organization.

i The right mobilization solution allows information and processes to be dynamically extended to both mobile and embedded devices

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The Adaptive Enterprise

i In the Adaptive Enterprise:v Technology adapts to how humans work -

pervasively, not invasively.v Collaboration is supported at all touch points within

the workflow.v Enterprise resources are extended securely to any

environment.v Distance and time cease to be barriers to productivity.v The mobile-enabled enterprise is able to accomplish

more in less time.

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Most Challenging Questions

i Is mobile business going to happen?i What form is it going to take and how do

we use the technology to continuously innovate and improve? M-business is not a business fad tied to a single method

or strategy, but rather the next step in the technology curve.

It is simply a way for improved customer interaction and new operational efficiencies.

It builds on all the investment in e-business.

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Wireless (M-Business) Strategy

i “Wireless devices are becoming key enablers of mission-critical, e-Business applications. In the future, the question will not be whether a business professional has a mobile device but rather, how these devices and the applications that run on them help fulfill key aspects of an enterprise’s business strategy.”

Scott Weisss, Analyst, Hurwitz Group

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Public & Proprietary Mobile Networks

Integrated Development Environment(IDE)

mPortal ServerSecurity & Authentication Local

BalancingUser Device Application

Management

XMT HTML Content Managing Appl. ERP Appl RDBMSApplication

Service

Content Communication Commerce

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Application InterfaceModule

ConfigurationEngine

Device InterfaceModule

Postal Server

Integrated Development Environment(IDE)

Application Developers

System Integrators

CustomerSoftware Developers

Packaged SoftwareDevelopers

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Fixed Internet UsersMobile Internet Users

Global Users (millions)

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Fixed InternetUsersMobile InternetUsers

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1998 1999 2000 2001 2002 2003

400 million

WirelessInternet

Subscribers

WirelessSubscribers

1.2 Billion

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950

760

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600

156.62.5

310

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GLOBAL WIRELESS AND WIRELESS INTERNET SUBSCRIBER FORECAST

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TEN GUIDING PRINCIPLES FOR THE MOBILE INTERNET

1. The internet experience on mobile networks will be different from the internet experience on fixed networks.2. Unlike the fixed Internet world, it is expected that most mobile customers will be prepared to pay to access many of the services. 3. Mobile data services will always expand directly in proportion to the bandwidth available4. The mobile internet experience will seek to use capacity efficiently.5. The more bandwidth a specific service uses, the higher its price.6. Pricing and revenues for mobile data services per unit of capacity will be greater than voice.7. Mobile data has the potential, to be highly profitable as a marginal contributor to EBITDA (over 50%) for mobile operators.8. Customer retention will be the key driver9. Crucially, mobile operators have a fantastic oppertunity to Dominate the wireless ISP (WISP) and wireless portal market10. Global scale will be critical

Source: Golman Sachs