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Mobile Commerce Strategy

Mobile Commerce Strategy. Text Plan. Definition of MC. Technology 1G......, Pervasive Computing. Applications Location sensitive, Time Critical, Controlled by information receiver or provider ,EC vs. MC. Value Chain. Business Model. Defining m-commerce ( Elliott, Phillips, 2004 ).

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Mobile Commerce Strategy

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  1. Mobile Commerce Strategy

  2. Text Plan Definition of MC Technology 1G......, Pervasive Computing Applications Location sensitive, Time Critical, Controlled by information receiver or provider ,EC vs. MC Value Chain Business Model

  3. Defining m-commerce(Elliott, Phillips, 2004 ) • Mobile commerce (M-commerce) is concerned with the use, application and integration of wireless telecommunication technology and wireless devices within the business systems domain. • Location independent connectivity • Mobile Internet • Mobile E-commerce • Mobile phone, Mobile device (PDA, wireless vending machines, wireless LAN,…)

  4. The M-commerce Systems Environment (Elliott, Phillips, 2004 ) Wireless Vending Devices (M-Wallet capable) Voice, Picture, SMS, And Data

  5. 1G: Analog Communication(Elliott, Phillips, 2004 ) • NMT system (Nordic Mobile Telephone ) • Finland, Norway and Sweden • AMPS (Advanced Mobile Phone Service) • In various parts of Asia, the USA and Canada • ETACS (Extended Total Access Communication Systems) • United Kingdom • JDC (Japan Digital Cellular) network system • Japan

  6. 2G: Based on Digital Technology(Elliott, Phillips, 2004 ) • 1G, lack of security and the proliferation of different wireless network standards • 2G occurred in early 1990s • GSM (Global System for Mobile Communication) • More global compatible telecommunication network • Less costly • Roaming was possible • Fully specify the complete network structure • As well as voice communications, 2G mobile phone can send and receive message • SMS (Short Messaging Services) • Mobile Internet Browsing, via the WAP (Wireless Applications Protocol)

  7. 2G Phone connection to the Mobile Internet Source: Kavassalis et al., 2003

  8. Source: Collis , 2003

  9. 3G: Third generation wireless communication(Elliott, Phillips, 2004 ) • 3G technology is aimed at providing a wide variety of services and capability in addition to voice communication, such as Multimedia data transfer, video streaming, video telephony, and full, unabridged Internet access • Providing Data Centric Services with enhanced voices and multimedia capabilities • UMTS (Universal Mobile Telephony Systems ) • A new Network service replacement for the GSM • 3G is to provide an economically viable and technology-enhanced PCS portal • First introduced to Japan in 2001, and spread to Europe and USA in 2002 • Life Style Portal • Location dependent information

  10. 3G: Third generation wireless communicationsource form: 3GPP TS 23.228, 24.228, 23.102

  11. Reasons to Have 4G Support interactive multimedia Wider bandwidth, higher bit rates Global mobility and service portability Low cost Scalability of mobile networks What’s New in 4G Entirely packet-switched networks All network elements are digital Higher bandwidth and lower cost (up 100Mbps) Tight network security 4G: 4th Generation Wireless Systemsource from: BWN Lab, web site [3]

  12. Pervasive Computingsource from: IBM Web Site [4,5] • Pervasive Computing • Enabling information access anywhere, anytime, on demand • Pervasive Computing delivers mobile access to business information without limits- from any device, over any network, using any style of interaction. It give people control over the time and the place, on demand.

  13. Pervasive Computing for a Nomadic LifestyleLessons Learned from MIT’s Project Oxygen, Zue 2004. • Some System-Level Challenges • Pervasive:Be available everywhere, at anytime, for anybody • Nomadic: Allow people and devices to move around freely • Embedded: Live in our world, sensing and affecting it • Human-centered: Understand and respond to human intent; solve real problems • Non-intrusive: Preserve privacy while ensure security • Adaptable: Provide flexibility in response to change • Eternal: Must never shut down or reboot • Organic: Allow applications and services to be added easily • …

  14. M- Commerce Applications • Delineating the effects of M-commerce: A space- time matrix • M-Commerce applications are categorized along three dimensions: • Location sensitive • Time critical • Controlled by information receiver or provider • EC vs. MC

  15. Taxonomy of M- Commerce ApplicationsBalasubramanian et al. 2002 • The extent to which the applications is location sensitive • The extent to which the applications is time critical • The extent to which the applications is controlled by the information receivers or by the providers Dimension 3: Controlled by the Information Receivers or by the Providers Dimension 2: Time Critical Dimension 1: Location Sensitive

  16. Mobile information assets: location sensitiveRao, Minakakis, 2003 ;Balasubramanian et al. 2002 • Deploy Mobile Internet services based on the various benefits of mobility • Information that is provided on a geographical locations • Information that tracks an individual user (via their mobile phone) to determine their specific geographical location anywhere in the world • GPS (Geographical Positioning Systems) • Support location-based services (LBS)

  17. Locations Assets(Elliott, Phillips, 2004 ) Location-based services information Location-based product Retailing Location-based Products Location-based Access Location-based Maps (directions)

  18. Time Critical Balasubramanian et al. 2002 • Applications vary along the dimension in terms of the degree to which they are time critical • Participation in a virtual auction (+) • Mobile access to digital libraries (–) • It will involve the exchange of information related to a scheduled • Flight departure • Information that quickly depreciates in value • A stock price • Information that is required to address some emergence • A roadside assistance

  19. Controlled by the information receivers or by the providers Balasubramanian et al. 2002 • Applications controlled by an information receiver • Relates to more random, unforeseen needs • A call for service after an automobile breakdown • Applications controlled by an information provider • Tend to be marketing “broadcast” activities • Coupon announcement • Maintain on an ongoing basis by service providers or coordinators • Monitoring of truck fleets using on board sensors

  20. M-commerce vs. E-commerce(Elliott, Phillips, 2004 ) • E-Commerce is concerned with data and information transfer, and with Internet access, via wired technology • M-Commerce is concerned with data and information transmission, and Internet access, via wireless technologiesand various portable devices

  21. Comparison between E-commerce and M-commerce(Elliott, Phillips, 2004 )

  22. Comparison between E-commerce and M-commerceBarnes And Huff, 2003; Elliott, Phillips, 2004

  23. M-Commerce Value ChainEuropean Commission 1996 (Barnes, Stuart J. 2002)

  24. European Mobile Portal and Media Value Chain Source: http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct2002.pdf

  25. i-mode and Media Value Chain Source: http://www.medialab.sonera.fi/workspace/JukkaHelin3GinJapanOct2002.pdf

  26. MacDonald, 2003

  27. M- Commerce Business ModelsMacDonald, 2003 • Brand Building or Media Mix • Customer Relationship Management • Online Retail • Premium Content • Aggregation • B2B • Advertising

  28. 9% MacDonald, 2003

  29. i- mode’s services Sources form: Web Site [6]

  30. i- mode’s services Sources form: Web Site [6]

  31. Obstacles & problems to M-commerce (I)(Elliott, Phillips, 2004 ) • Efficient and fast wireless telecommunications services are often focused within specific area • In Develope worls, ex- West Europe,the USA, Japan • Not available in low population area • Many developing countries has led these countries to adopt wireless telecommunications • Wireless Mobile Internet access more costly than wired Internet access • 3G technologies and devices often deliver data content that are indistinguishable form those available on the wired Internet • Mobile Internet users are accustomed to paying for Internet and correspondingly expect to pay for certain levels service and reliability

  32. ........ • Concerns over privacy and security still pervade the wireless data transmission world • 3G technology is inherently more secure than 2G • Many government and business organizations banned the use of 2G mobile phone for private or secure conversations • Many individuals and organizations still harbor concerns over the health issues of wireless technology • With regard to microwave radiation emission levels • Many government are requiring mobile phone devices manufacturer to publish health evidence

  33. The development of M-commerce • In Europe and Japan • Focus on delivering to the customer technology, such as internet –enable mobile phones, and the provision of Mobile Internet services • Europe view: Lifestyle consideration • In USA • Focus on the use of palm computers, other mobile devices (e.g. the BlackBerry mobile E-mail devices), and other wireless technology to improve the effectiveness of business systems process • USA view: Support mobile working

  34. The growth of spread of M-commerce(Elliott, Phillips, 2004 ) • Innovations: • Developments in mobile wireless application and technologies • Adoption: • Proliferation and use wireless technologies by (potential) customers • Increased competition: • Desired by organizations to expand markets and added value to products and services

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