Mobile Commerce

1. Mobile Commerce Nour El Kadri University Of Ottawa

2. What is m-commerce? • Using wireless devices to perform a transaction • Different from e-commerce as we know it now • Will initially be mainly small value items < $10 • Payment systems will be different Airtime providers could provide brokerage

3. A definition “Any Transaction with a monetary value that is conducted via a mobile telecommunications network” Durlacher Research, 2000 NTT DoCoMo’s i-Mode Portal Nordea’s WAP Solo Mobile Banking Service Webraska’s SmartZone Platform

4. Currency & Payments • Electronic wallets have better chance with m-commerce than e-commerce • Credit cards unlikely to be used

5. Users • 10 – 16 Ring tones, games, screensavers, graphics • 16 – 20 Books, CD’s, MP3’s • 20 – 35 Restaurant booking, Theatre tickets • 35 + any ideas?

6. Buyers and Items • Initially m-commerce will lend itself better to certain types of purchases. • What will….. • Ring tones Books • Graphics CD’s • Games Food • What won’t….. • Big ticket items • Clothing • Electronic goods • Visual Items (i.e. you need to see before you buy)

7. Ordering on-line - Problems • Text entry too difficult • The Real Commerce Company states • 6 seconds on a keyboard • 25 seconds with predictive T9 input • 47 seconds without predictive input. • Dependant on device, but never perfect • Personal file holding the users details • Vendors have a lot to do to sort out interfaces

8. The Forces Behind M-Commerce • Proliferation of Mobile Devices • Convergence of Mobile Telecommunication Networks and the Internet • Transition Toward Third Generation Telecommunication Technologies and Higher Data Rates • Explosion of Personalized, Location Sensitive, and Context Aware Applications and Services

9. Proliferation of Mobile Devices • Deregulation in Europe and adoption of GSM as the standard  roaming across the continent • Japan, Europe and North America…saturated market  Demand in asia is driving growth • PDAs • 6 million in 2000 • 20 million 2002 • 500 million 2006

10. Proliferation of Devices • Support for PIM applications, calendars, contact lists,… • Hybrid systems….Phone with PDA • Nokia 9210 communicator • Handspring Visor Phone • Motorola Accompli 008 • Now…blackberries, i-Phones…. • Java enabled models 2001 • Cameras, MP3 Players… • Wrist Watches with browsers • Jewelry doubling with cell phones at trade shows • Standards….WAP and Java 3GPP MExE

11. Convergence of Mobile Telecommunication Networks and the Internet • Data Traffic revenues dominated voice • Internet to Mobile phones: • Little memory • Low transmission speeds • Frequent disconnects • Small displays • Tiny keyboards • Many wireless communication standards • Technologies: • HDML • XHTML • WML • cHTML

12. Transition Toward Third Generation Telecommunication Technologies and Higher Data Rates • GSM TDMA, CDMA1– speed 9.6 to 14.4 Kbps • Circuit Switched • Voice applications in mind • Expensive for using internet services • 3G • 144 Kbps and up • Packet Switched • Transition from 2G to 3G – GPRS and EDGE • UMTS official European Standard, CDMA2000

13. Explosion of Personalized, Location Sensitive, and Context Aware Applications and Services • 200 billion SMS messages in 2001…it is exponentially increasing • Mobile banking, mobile directory services, mobile ticketing, entertainment services, network games, dating services, ring tones,… • Personalization is needed for mobile devices due to input/output limitations and the time critical nature of services

14. What’s So Special About M-Commerce? • Drivers will push it to a market of tens of billions of dollars • M-Commerce is More than a distribution Channel with its own idiosyncratic technologies • Services • Usage Scenarios • Business Models • Regulatory Challenges

15. Usability Challenges • Limited Screen • Limited input functionality • Limited memory and processing power • Low data rates and frequent disconnects Avoid the big displays of E-Commerce… Ads, privacy statements, search results…

16. Usability Challenges - Solutions • Avoid information overload • Personalization is the key • CRM focus on locations, activities and surrounding environments • Walk away from dumb menus to smarter interfaces • WAP and VoiceXML

17. New Usage Scenarios • SMS messages • Checking for participants in interactive games • Banking on your phone • Looking for a near restaurant • Paying your parking meter using your mobile device • Checking departure of next flight • Looking for stock quotes

18. New Business Models • Mobile operators as transaction support providers • Leverage their CRM advantage and Lead value creation • Billing details, user location and preferences are critical in such models

19. Interoperability • Culture of openness and interoperability • Economies of scale • Complex value chains • Consumer demand for global roaming and affordable services • Reconciling the many standards and technologies: • Data transfer • Billing • Location tracking • Payment

20. Security and Privacy Challenges • Vulnerability to the air interface • Limited computing power of mobile devices • Low data rates and frequent disconnection • Connection to corporate systems  target for hackers • Personalization vs. Privacy • W3C and Mobile Marketing Association Standards….early stages.

21. Summary • Mobile commerce is new….lots of uncovered challenges and risks • Social networks are capitalizing a lot on the mobile technology offers • Infrastructure is there…the business has to catch up • Engineers will have to adapt to new models of development.