M Commerce

By:
Sudhir Pande
Associate Consultant (Master Intern)
 The Explanation
• Mobile Commerce is an evolving area of e-
Commerce, where users can interact with the service
providers through a mobile and wireless network,
using mobile devices for information retrieval and
transaction processing.
• Mobile Commerce is any transaction, involving the
transfer of ownership or rights to use goods and
services, which is initiated and/or completed by using
mobile access to computer-mediated networks with
the help of an electronic device.
 M-Commerce Terminology
• Generations
– 1G: Wireless technology (Voice Calls)
– 2G: Current wireless technology; mainly accommodates text (Voice
calls and Text messages)
– 2.5G: Interim technology accommodates graphics (Picture
Messages)
– 3G: 3rd generation technology supports rich media 2mb/sec
connection enabling Video Calls and HSDPA Connectivity (Video
Calls and Enhanced Internet Speed )
– 3.5G: Advanced version of 3G with HSDPA connection of 3.2mb/ps
speed. (Live Video Streaming and 3.2 mbps internet speed with
wide connectivity)
– 4G: Will provide faster internet connection and value added services
The Two Views
 Mobile commerce from the Customer‘s
point of view
• The customer wants to access information, goods and
services any time and in any place on his mobile
device.

• He can use his mobile device to purchase tickets for

events or public transport, pay for parking, download
content and even order books and CDs.

• He should be offered appropriate payment methods.

They can range from secure mobile micropayment to
service subscriptions.
 Mobile commerce from the Provider‘s
point of view
• The future development of the mobile tele-communication
sector is heading more and more towards value-added
services. Analysts forecast that soon half of mobile operators‘
revenue will be earned through mobile commerce.

• Consequently operators as well as third party providers will

focus on value-added-services. To enable mobile services,
providers with expertise on different sectors will have to
cooperate.

• Innovative service scenarios will be needed that meet the

customer‘s expectations and business models that satisfy all
partners involved.
M-Commerce Applications

• Business to Business
• Business to Customers
 Business 2 Business

Mobile Mobile Proactive

Financial Inventory Service
Applications Management Management
Banking
●
●
Location tracking of goods, boxes, troops ●
Transmission of information related to
Brokerage
●

Payments for mobile users

● and people distributing components to vendors.
(mobile banking by ING)
● ●
(Courier updates by Royal Mail) ●
(Repair status tracking by TRS)

Product Locating and

Wireless Reengineering Wireless Data Centre
Shopping

●
Locating/ Ordering certain items
from mobile device.
●
Improvement of ●
Information can be downloaded
●
(Product Update by Retailers) business services. by mobile users and vendors.
 Business 2 Customers

Mobile Mobile Mobile

Financial Advertisin Inventory
Applications g Management
●
Banking ●
Sending user specific and location- sensitive
Transmission of information related to
●
●
Brokerage advertisements to users.
●
Payments for mobile users ●
(Nearest Stores in the area) distributing components to vendors.

Proactive Product Wireless

Service Locating and Reenginee
Management Shopping ring
●
Transmission of information ●
Locating/ Ordering ●
Improvement of
related to distributing certain items from a business service.
components to vendors. mobile device. ●
(MobiTV by 3UK)
 Business 2 Customers
Mobile Mobile
Auction and
Entertainm
Mobile
Reverse
Auction ent Services Office
●
Service for customers to Video on demand or
● ●
Working from traffic
jams, airport and
buy or sell certain items. other services to the conferences.
●
(Ebay on Mobile) mobile user ●
(Mobile Mail Service by 3UK)

Mobile Wireless
Distance Data
Mobile
Education Centre Music
Taking a class using
● ●
Information can be downloaded ●
Downloading and playing
streaming audio and video by mobile users and vendors. music using a mobile device.
 Some Examples of the
Applications
• Wireless Access: phone.com
• Alerting Services: myalert.com
• Location Services: airflash.com
• Shopping Services: nordstor.com
• Banking Services: citibank.com
• Web Access: wapforum.com
• Mobile Agents: tryllian.com
• Brokerage Service: TD Waterhouse
• Mobile Auction and Reverse Auction: Ebay
• Content Service: Britannica
 Some Solutions and Companies
• 724 Solutions • AT&T
• AvantGo Wireless
• Palm.net Group
• NTT DoCoMo • BellSouth
• Vodafone • Cisco Systems
Group • Sirenic
 M Commerce Design
It is the result of the coordination between:

Technology
Technolog Application
y Developers
Developer
s

Service
Provide
rs

M Commerce Product & Service

 Industrial Considerations to Make it
Practical and Successful

• Application is about integration and cooperation amongst

the masters to come up with new products and services.
• Understanding the user would be the key to run ahead of
the market and win over the customer satisfaction
• Security and Privacy are the two important factors which
could make or break the product.
• Separation of Enterprise Data from Personal Data cause
at the end of the day its all about “Personalizing the
Services” not “Enterprising through the Personal Life”.
 The Combinations So Far
Device Manufacturers Wireless Middleware/ Wireless Carriers
Gateways

Ericsson Ericsson AT&T Wireless

BT Genie (Telefónica
Symbol Cyneta Networks
Europe)

Kyocera Microsoft Nextel

Market Drivers for M Commerce
• Mass Market Mobile
• Booming wire line Internet
• Breakthrough in technologies
• Supplier Innovation in term of Handset
• Customer Centric services
• Personalization and Mobilization of services
and products
 The Market Realities with the Service
Providers
Top five operators by different KPIs – worldwide

Proportion of
Rank Subscribers Total revenues Monthly ARPU Monthly churn revenues
derived from data

NTT DOCOMO
1 China Mobile China Mobile 3 UK Smart Philippines
Japan

2 China Unicom AT&T US Bouygues France KDDI Japan Globe Philippines

3 Bharti Airtel India Verizon US Vodafone Ireland SingTel Singapore SoftBank Japan

NTT DOCOMO NTT DOCOMO

4 AT&T US O2 Ireland Chunghwa Taiwan
Japan Japan

5 Verizon US Sprint US Orange Switzerland T-Mobile Germany KDDI Japan

Source: Portio Research (Dec 2009) via: mobiThinking

 Top regions for penetration of 3G handsets, according to
Ovum via Morgan Stanley

South & Central America

Middle East & Africa

AsiaPac(without Japan)
3G Handset

North America

Western Europe

0% 10% 20% 30% 40% 50% 60%

World Internet Penetration Rates by Geographic
Regions 2010
(http://www.internetworldstats.com/stats.htm)

Internet Penetration

10%

26%
14% Europe
North America
South America
Middle East and Africa
AsiaPac
15%

35%
Operating System Share by
Region
(AdMob.com)
Customer Survey Reports
Characteristics Of Good Shopping
Experience
Willingness to Spend
 Suggestions and Findings
• Markets with high penetration rate for Internet
users and Mobile Connection should be utilized
(Which is generally seen; exceptions are the countries
like China where both the penetration levels are high
but M Commerce is not that strong enough)
• Killer Applications should be developed, the
definition for such application varies by country, by
culture, and individual users but the end result should
be highly acceptable, useful and revenue generator
(for firms) (I Mode- Japan is the best example)
• Innovation, the key which will help the business
houses to create the market place in spite of the
technological and business barriers.
• Employees could be one of the prime targets
for M-Business applications which will increase
productivity, reduce cycle times and give
competitive advantage.
• With 81% customers ready to pay almost 25
euros for their daily transaction like Parking, Bus,
Train through Mobiles; there is a huge potential
for both the service provider and application
developers to capture.
• Five IP based products are and will show growth in
coming year, those are: 3G adoption worldwide,
social networking, live video streaming and video
calls, VoIP, Impressive mobile devices. (Morgan
Stanley Report)
• The M-Business value chain is complex and
involves more players than the traditional E-
Business value chain.
• All-in-one device, with rich application package
(multimedia) and personalization.
• Asia is the new big market after Europe (M
Commerce has been doing well) which has huge
amount of mobile users and internet user both.
Thank You!!!