M business from vision to reality
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M-BUSINESS: FROM VISION TO REALITY. Monday, 15 September 2014 Vilnius. Daiva Vitkut ė-Adžgauskienė Head of Product Management Division, Omnitel, Lithuania. Way back in 1999 …. Popular saying: “If you are NOT IN E-BUSINESS, you are OUT OF BUSINESS”

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M-BUSINESS: FROM VISION TO REALITY

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M business from vision to reality

M-BUSINESS: FROM VISION TO REALITY

Monday, 15 September 2014

Vilnius

Daiva Vitkutė-Adžgauskienė

Head of Product Management Division,

Omnitel, Lithuania


Way back in 1999

Way back in1999 …

  • Popular saying: “If you are NOT IN E-BUSINESS, you are OUT OF BUSINESS”

  • Common belief: .COM or E- automatically means passport to getting millions


And then in 2000

And then in 2000 …

  • Burst of INTERNET BUBBLE

  • Intense PESSIMISM instead of previous hype

  • Headings of the type “E-BUSINESS IS DEAD” all over


Finally where is e business now

Finally, where is e-business now?

  • The majority of companies are using Internet/Intranet in some way

  • New services keep on emerging on the Net (Internet banking, vehicle tracking and monitoring systems, etc.)

  • E-business silently but firmly pushes itself into our life in the form a natural supplement to traditional business processes

  • You don’t have to shout about e-business anymore – IT IS JUST HERE


M business from vision to reality

Long-term

Trend

E-business adoption landscape

E-business trend


E business lessons learned

E-business: lessons learned

  • Computers becoming faster does not mean that building businesses can also be faster

  • E-business success lies in appropriate application of electronic channels to the business as the basis


M business from vision to reality

How about

MOBILE BUSINESS ?


In 2000 m business was merely a vision

In 2000 m-business was merely a VISION …

  • Just a feeling, that this could fly:

    • Mobile penetration growing much faster than that of Internet

    • Mobile phone – a personal service management tool available anytime anywhere

  • However, doubt and disbelief prevailing:

    • Disappointment in mobile phones as Internet access terminals (small screens, no graphics, low speed, etc.)

    • Global pessimism towards e-business

    • Weak service development


What is the situation now

What is the situation now?

  • Phones improving, converging with PDAs

  • Majority of active citizens already mobile

  • Service providers learned how to overcome restrictions and leverage the advantages of mobile communications

  • Mobilephone is gradually becoming a personalized tool for using and managing services

M-business has become a REALITY and is gradually progressing !


M business general impression

M-business: general impression

  • M-business develops along a smoothly rising long-term trend curve

  • M-business was from the beginning perceived as an additional channel to the general business process

  • People are ready to pay for m-business value proposition to deliver what people want when they want it


Variety of m business application areas

Variety of m-business application areas

  • M-commerce – fast transactions

  • Introduction of mobile channels to company internal processes

  • Mobile marketing

  • Mobile CRM

$

$

$


Technology environment for m business services

Technology environment for m-business services

  • SMS messaging – most popular media

  • WAP – new expectations with GPRS

  • HTTP transactions over GPRS

  • Java applications for mobile devices

  • Web service architecture


M business from vision to reality

Is this also true for

M-BUSINESS DEVELOPMENT in the LITHUANIA?


Lithuania favourable environment for m business

LITHUANIA: favourable environment for m-business

  • Mobile penetration already over 40% (compared to 27% at the beginning of 2002)

  • Mobile penetration is significantly higher than that of Internet (21%)

  • Over 80% of businesses using mobile services

  • Usage of mobile data (SMS, GPRS, WAP) increases


Sms traffic compared to europe predictions baskerville strategic report nov 2001

SMS traffic compared to Europe predictions (Baskerville strategic report, Nov. 2001)

Omnitel case: increasing SMS usage


Increasing number of public m services

Increasing number of public m-services

  • M-entertainment(logos, ringtones, mobile games)

  • M-info(yellow pages, stock exchange, accounting information)

  • M-office(mobile e-mail, reminders, group messaging)

  • M-payments(payments for parking, vending, tickets)

  • M-banking (all major banks in Lithuania offer SMS or WAP banking services)

  • M-self-services (info channel subscription, service configuration, etc.)

  • M-security (mobile car tracking, house security, etc.)


M commerce in entertainment ringtones and logos

M-commerce in entertainment: ringtones and logos

  • Offered in Omnitel network since 1999

  • Number of content providers and aggregators increasing - Jippi, One, Inpoc, Telejazz, …

  • About 10% of monthly SMS VAS traffic and increasing

    Mobile users willing to pay for entertainment !


Who wants to be a millionaire

“Who wants to be a millionaire?”

Most successful SMS application in Omnitel history:

  • Launch of the SMS game on June 17th 2002

  • Reached total 1 million message point on July 10th – in less than 1 month

  • According to surveys, 71% of players are driven by excitement not by prizes

Good example of “kill the time”services potential” !


M payment for parking saving precious time

M-payment for parking: saving precious time

No need to look for coins, easy to extend parking time – just send an SMS from where you are !

  • Omnitel was first in Lithuania, 7th in the world to launch the service

  • Launch in Kaunas - March 27, 2002; in Vilnius - July 3, 2002

  • Monthly growth rate - 1.5-2 times

  • Service management (inspector side) based on bar-code readers and GPRS

Already about 7% of total parking payments collected via mobile channel in Lithuania


Mobile e mail managing your communications

Mobile e-mail – managing your communications

  • E-mail communication have become part of our lives

  • Mobile technologies enabled e-mail access anywhere anytime (SMS, WAP over GPRS)

  • Mobile e-mail already is an important part of various m-business applications


M business from vision to reality

MasterCard

Third parties

Third parties

Third parties

Third parties

Operator acts as m-service aggregator

Creation

Aggregation

Presentation

S

Customers

E-/m- service supermarket offering!


M business from vision to reality

Portal – the best way to enable e-/m- service supermarket

  • Joint OMNI Portal = traditional + mobile

    • information accessed via different channels: WEB, WAP, SMS, etc.,

    • content personalization,

    • content generation by third party e-/m- services,

    • accounting and billing for usage via all channels

OMNI portal provides access to a structured collection of e-services

Infor-

mation

News

Entertainment

Tools

Services

Communities

WWW.OMNI.LT

WAP.OMNI.LT


Prerequisite payment management infrastructure

Prerequisite – payment management infrastructure

3rd party services

  • Unified payment management for operator and third party services

  • Payment gateway as a router between services and banks

  • Projects with major Lithuanian banks

OMNITEL services

Vending machines

Vertical portals

Prepaid top-up

Postpaid bills

Entertainment

E-commerce

Infotainment

E-commerce

Parking

Payment channels

Payment gateway

Payment

WWW

SMS

WAP

functionality

Omnitel

Bank

Vilniaus

Bank

Payment

channel

billing

Snoras

Bank

Hansa-

LTB


M business solutions in company environment

M-business solutions in company environment

Interest: over 1/3 of businesses adding mobile access services to their Intranets

Examples of application areas:

  • Mobile sales force solutions

  • Mobile access to company info resources

  • Mobile logistics and fleet management solutions

  • Mobile marketing games


Sales force automation solutions

Sales force automation solutions

  • Fast order processing, continuously updated pricing information

  • Based on mobile access and data synchronization via GPRS enabled PDAs

  • Solutions enabled by partnership between mobile operators and IT companies

  • Whosalers as first users -Sanitex, Eugesta, etc.


Vehicle tracking and fleet management solutions

Vehicle tracking and fleet management solutions

  • An example of m-solutions for a niche segment – logistics companies:

  • Vehicle tracking and remote control

  • Reporting and logistics management

  • “Seklys” and “Sateltrack” services offered by Omnitel

  • Combination of various technologies - GSM, GPS, GPRS, SMS


M business from vision to reality

Mobile promotional games – a solution for m-marketing

Advertising campaigns

voice mail

www

e-mail

wap

SMS

Company

Registration database

Registration data and statistics

Consumer


M business from vision to reality

Mobile promotional games – gaining speed

  • Overall over 50 games were implemented by Omnitel for wholesale and media companies in 2002:

  • Several examples:

    • Estrella promotional game, prepared for “Kraft Foods Lietuva”;

    • “Kalnapilis in Ice” promotional game prepared for Kalnapilis beer brewery;

    • Coca Cola promotional game,

    • SMS game for TV show on information technologies “NKTV” and others.

  • Monthly traffic of such games makes up more than 15% of the whole Omnitel SMS VAS traffic.


M business from vision to reality

Having many possibilities already, can 3G offer more ?


M business from vision to reality

It seems that 3G will not make any significant changes

  • With GPRS and MMS in place, m-business applications can already exploit multimedia advantages

  • 3G seems not to offer anything completely new for m-business, just faster speed

  • Observation: 3G adoption slow in Japan:

    • DoCoMo has only about 134000 FOMA subsribers, while the plans were to have 1.38 million subsribers by March 1, 2003


M business from vision to reality

  • CONCLUSIONS

  • M-business today is already a REALITY.

  • With 2.5G and rapidly increasing mobile penetration we have everything that is necessary for m-business growth.

  • Success lies in:

    • rational evaluation of business opportunities,

    • development of adequate and convenient applications and services,

    • training the users to exploit all the possibilities offered by mobile technologies.


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