Innovative solutions in a wireless world

Mobile Commerce
Technologies and Practical Strategies for Successful Enterprise Deployment
Dr. Jacob Sharony

April 20, 2011

Innovative solutions in a wireless world

About Mobius Consulting

Founded in 2004 by mobile and wireless experts Strategic management & technology consulting Clients
Service Providers/Operators Equipment Vendors Enterprises in various vertical markets

Dr. Jacob Sharony

Founded Mobius Consulting in 2004 Renowned expert and sought after consultant and public speaker Adjunct Professor at Columbia University Previously at IBM, Motorola, Center for Wireless Research at Stony Brook University

Innovative solutions in a wireless world

Wireless Data Evolutionary Path

My Personal Perspective
Started in vertical markets more than 10 years ago in backend areas (Wal-Mart, UPS/FedEx, warehouses) Penetrating horizontal markets and moving into the enterprise front edge (carpet environment) Wave 4 will involve the physical world (Internet of Objects) tiny embedded sensors with wireless capability will make systems smarter changing the way we work, live and do business
Productivity (Vertical) Mid 1990s
In back-rooms, Blue-collar computing, Inventory, PoS

wave 1

Leisure/Convenience (Consumer/Home) Early 2000s

In homes and SOHOs, Mobile computing around the home/office

wave 2

Enterprise Mobility (Horizontal) Mid 2000s

In enterprises, mobile workforce always connected. Access to critical information at the point of activity/decision
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wave 3

Cisco acquires Aironet - 1999

Innovative solutions in a wireless world

Mobile Commerce Overview

1 of 5 smartphones will support mobile-payment by 2014, with 300 million NFC-capable devices (Juniper 411) North America will lead, 50% of all NFC smartphones by 2014 The 2012 London Olympics will be a major showcase of the technology Mobile commerce is about behavioral change - how we shop and buy It will take time till consumers feel comfortable with the new technology New challenges will arise requiring a sound mobile strategy for successful deployment
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Innovative solutions in a wireless world

Vanson Bourne survey of 100 marketing and IT directors at UK retailers, and 1,000 consumers

April11

April11

Innovative solutions in a wireless world

The 3 Pillars of Mobile Commerce

Mobile Channel (How to target?)
Mobile application Mobile site SMS/MMS

Context-aware Marketing (whom to target?)

location based life style and demographics special situation (e.g., time of day, birthday, mood?) social network

Mobile Interaction/Transaction (What kind of interaction?)

Payments, Coupons, smart posters/billboards, special offers 2-D barcodes, RFID/NFC
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Innovative solutions in a wireless world

Mobile Shopper
Text

Have a Cabernet Sauvignon $14.99 excellent w/ Sirloin

WiFi based locationing

Motorola (Symbol Technologies) 1999

Context Sensitive Advertising

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Innovative solutions in a wireless world

Example (modern day): Context-based Marketing

12:30pm lunch time you are walking along Madison Ave. & 57th St. A bus stops at the light showing an electronic skin display of nearby restaurants offerings You aim your mobile device at the display panel to receive offers (e.g., video virtual tour, menus, coupons) You select one of the restaurants because it gives 30% discount if you have lunch in the next 30 min, you make a reservation and receive walking directions You pay with your NFC-enabled phone at the end of the meal The bus continues to Madison & 72nd St. and displays new information

3-4 mobile/wireless technologies are involved

Innovative solutions in a wireless world

Internet
Bus is connected to context-based content servers

System Architecture

GPS
Bus location information

3G/4G

WiFi/BT
Display changes dynamically depending on location Receiving coupons, offers

NFC
Mobile payment 9

Innovative solutions in a wireless world

Example: Tangers Location-based Marketing

Using your location to deliver special coupons/offers only when on-site

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Innovative solutions in a wireless world

Example: Push-Marketing in the Mall

Targeting customers near your physical establishment Is this spamming? No, it asks for permission before sending any content
WiFi/BT

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Innovative solutions in a wireless world

From e2m-Commerce
From Anytime to Anytime-Anywhere From Internet browsers to mobile apps (get information instead of search for it) Providing on-demand services at the point where it matters the most - point of activity or decision Mobility enhances the shopping experience by providing relevant information at the right time at the right place Results in more complex systems and new challenges
Information at the point of activity Improved shopping experience Increased revenues
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Innovative solutions in a wireless world

Features of m-Commerce
Ubiquity (anywhere) Immediacy (anytime) Localization (location based services) Instant Connectivity (fast, always on) Proactive functionality (push-marketing) Security (strong but simple to implement)

Mapped to solution/system/technology requirements

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Innovative solutions in a wireless world

Mobile Wireless Technologies

Personal area networks for data capture NFC/RFID/BT
Covers our personal space (from few inches to 10s feet) Will allow interaction with physical objects NFC is happening (2011 smart phones)

Local area networks WiFi

Hotspot coverage (~100) High speed (up to 600 mbps)

Wide area networks 3G/4G (HSPA, WiMAX, LTE)

Large coverage/footprint (city) 3G capacity is limited (several mbps) Capacity will rise to 10s-100 mbps with HSPA+/WiMAX/LTE

RTLS (Location Tracking) Outdoor (GPS), Indoor (WiFi-based)

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Innovative solutions in a wireless world

Near Field Communications

Short Range Wireless Interaction
Based on RFID technology that uses magnetic field induction to enable communication between electronic devices in close proximity (up to 20 cm). It makes life easier and more convenient to make transactions, exchange digital content, and connect devices with a touch.
Buy tickets Unlock your car Exchange contact info with someone (e.g., business cards) Loyalty credits, coupons, payments

Google Nexus S

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Interaction w/ smart poster

Information exchange

Mobile payment

Innovative solutions in a wireless world

Recent Industry Activity

Between January and December 2010, the number of monthly contactless transactions more than doubled (UK Barclays) NFC Forum - industry organization in charge of setting standards and addressing technology and interoperability issues. Large ecosystem with140 members including Google, Intel, Nokia, Motorola, VISA, AMEX and many more ISIS - AT&T, Verizon and T-Mobile forming mobile commerce/ payment network based on NFC technology MTA will introduce mobile payments in the subway system in NYC New smartphones with NFC inside start to appear in the market, e.g., Google Nexus S, iPhone5
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Innovative solutions in a wireless world

Technical and Service Challenges

Delivering content to a multitude of heterogeneous mobile devices with different capabilities and connections Delivering multimedia information (video, music, photos, etc.) over limited capacity fluctuating wireless links
Quality of service, transparency to the end user

Network Management and Service continuity

Coverage holes & limited capacity issues, delays, handoffs, etc.

Intuitive and smooth user experience Security and privacy Service complexity many players are involved, from issuing banks, merchants, payment brands, mobile operators, and web giants
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Innovative solutions in a wireless world

Security Considerations
As with CC security in mobile payments is of paramount concern The new technology must ensure that customers transactions and personal data will be protected and secure If your phone is lost or stolen, the payment functionality can be shut down instantaneously ensuring that no transactions can be completed. In the unlikely event of fraud consumers should benefit from 100% fraud guarantee Because mobile transactions are not verified by PIN, the liability for fraud lies not with the retailer but with the issuing bank (motivation to merchants)
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Innovative solutions in a wireless world

NFC or 2-D barcodes?

2-D barcodes
Require line of site Limited data exchange Cost advantage Great for magazines, coupons, etc.

RFID/NFC
More convenient, contactless Large amount of data can be exchanged More costly Great for payments, smart posters, exchange business cards, etc.

They will both coexist, complementing each other Example: capture a 2-D barcode coupon from a magazine and pay at the cash register using NFC
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Innovative solutions in a wireless world

Mobile Site or Mobile App?

Retailers are split on this topic The mobile site costs very little to develop, best first step App can do more (e.g., scanning barcode) Keeping to the basics and simple
Vanson Bourne Survey 411

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Homepage: 3 categories Search Registration

Innovative solutions in a wireless world

Strategies for Success

Best Practices for m-Commerce Systems
Long live the mobile app!
Design dedicated apps for certain OS (Android, iOS, Bberry, WinM)

Scalable content delivery

Adapt content to variation in network capacity/speed (e.g., scale down video resolution when connection is slow/bad)

Security/privacy is paramount
Protect sensitive information end2end

Enhance coverage and capacity at the site (if you can)

Trade show, mall / shopping center, in-store

Context-based marketing - know your customer

Time of day, location, how he/she is connected, personal social network, mood Use of smart inference engines
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User interface and experience improve, improve, improve

Innovative solutions in a wireless world

Strategies for Success (cont.)

Best Practices for m-Commerce Systems
Smartphones and social media are changing the way we shop and transact - Financial services providers have to adapt to this fundamental shift in consumer behavior Collaborative approach of commercial rivals is necessary to set standards and ensure interoperability (Verizon-AT&T-T-Mobile ISIS)

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Innovative solutions in a wireless world

We havent seen nothing yet

ts Paymen Mobile ed ext Bas Cont ng Marketi

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M2 M
UFS, Inc.

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Innovative solutions in a wireless world

Summary
Enterprises have to adapt to changes in consumer behavior fueled by smartphones/tablets and social media Newly adapted mobile commerce technologies:
NFC: short range wireless interaction will change the way we shop, buy and exchange digital data Location-based services Push/proximity marketing

A sound mobile strategy is necessary for successful deployment of mobile commerce (plan, execute, measure, adapt)

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Innovative solutions in a wireless world

How Mobius Consulting Can Help?

Strategy and management consulting
Design of enterprise mobile strategy

Product/solution development
Using the 3-pillar methodology for executing the mobile strategy

Performance assessment and evaluation

Call us for initial discussion and assessment

webinar201104@mobiusconsulting.com

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Innovative solutions in a wireless world

Thank You!
Dr. Jacob Sharony jacob@mobiusconsulting.com
(631) 546-5840