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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

Monday, 15 September 2014

Vilnius

Daiva Vitkutė-Adžgauskienė

Head of Product Management Division,

Omnitel, Lithuania


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 …

  • 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?

  • 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


Long-term

Trend

E-business adoption landscape

E-business trend


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


How about

MOBILE BUSINESS ?


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?

  • 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 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

  • M-commerce – fast transactions

  • Introduction of mobile channels to company internal processes

  • Mobile marketing

  • Mobile CRM

$

$

$


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


Is this also true for

M-BUSINESS DEVELOPMENT in the LITHUANIA?


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)

Omnitel case: increasing SMS usage


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

  • 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?”

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

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

  • 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


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!


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

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

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

  • 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

  • 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


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


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.


Having many possibilities already, can 3G offer more ?


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


  • 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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