Mobile Commerce Business Models ,Business intelligence

OUTLINE

1. M-Commerce Value ChainM-Commerce Business Models

2. Mobile Business Intelligence

User Fee Business Models Shopping Business Models Marketing Business Models Improved Efficiency Business

Models Advertising Business Models Revenue-Sharing Business Models

What is Business Intelligence

Basic approaches to mobile BI

1. Event-based alerts2. Static mobile reports3. Mobile BI dashboards

Types of E-Commerce

Classified by nature of market relationshipBusiness-to-Consumer (B2C)

Business-to-Business (B2B)

Consumer-to-Consumer (C2C)

Classified by type of technology usedPeer-to-Peer (P2P)

Mobile commerce (M-commerce)

M-Commerce Value Chain

Question :Identify the main attributes of business models from perspective of mobile business

Business Models

User Fee Business Models (subscription

and usage fees)

Shopping Business Models

Marketing Business Models

Improved Efficiency Business

Models

Advertising Business Models

Revenue-Sharing Business Models

User Fee Business Models

Subscription FeesTend to be easier to collect than transaction fees, and provide a more predictable source of income. Independent content providers might find it more economical to rely on the mobile network operator for the collection of subscriptions

Usage FeesCharge for actual usage of a serviceare the ultimate source of revenue in the sense that they make it possible to charge for actual usage of a service, with each access generating additional revenue for the content provider

The User Fee Business Model

often involves relying on a third-

party micro billing provider,

whether for the collection of

subscription fees or for actual

usage fees.

3rd Party Billing

Provider

Content Provider

Mobile UserMobile Content

Percentageof User Fee

User Fee (monthly subscription or actual usage fee)

Shopping Business Models

This model is fairly similar to the one of wired

e-tailers Players here sell goods and services over the mobile Internet, viewing it essentially as another distribution channel. They include both pure-play Internet companies such as Amazon or Travelocity

Examples of e-tailing Websites :

The Shopping Business Model is similar to the one found on the wired Internet. Payment also often involves a third party, not represented here, such as a credit card company, bank, or mobile network operator, which will generally keep a percentage of the transaction.

Mobile e-Tailer

MobileShoppe

r

Payment

Mobile Content

Product/Service

Marketing Business Models

Uses Internet technology to create markets in digital environment that bring buyers and sellers together

To display productsSearch for productsEstablish a price

The Marketing Business Model is adopted by brick-and mortar players and traditional Internet companies interested in using the mobile Internet as a marketing channel rather than as an actual sales channel Their core business subsidizes their mobile Internet presence.

Mobile User

&Core

Business

CustomerProduct/Service

Non-Mobile Payment

Mobile Marketing ContentContent ProviderMobile Internet

Presence

Marketing“Subsidy”

Core Business

Mobile User

&Core

BusinessCustomer

Improved Efficiency Models

Other content providers simply view the mobile Internet as an opportunity to cut costs and improve customer satisfaction.

This is similar to the view many companies have of the wired Internet, where an online presence can help reduce operating expenses.

Mobile examples of this model include mobile banking, mobile trading, or mobile ticketing.

These solutions make it possible for companies to cut down on personnel at branch offices, call centers, ticketing booths, and counters.

The Improved Efficiency Business Model:

savings in operating costs and added convenience to the user offset the costs of setting up a mobile presence

Mobile User

&Core

Business

Customer

Mobile InternetPresence

TraditionalBusiness

LowerOperating Costs

Content ProviderMobile Service/Content

Service Usage/Transactions(possibly including payment)

Mobile User

&Core

BusinessCustomer

Advertising Business Models

Performance-based Fees• Fees based on the number of click-throughs or call-throughs

Flat FeesCharge flat fee for displaying advertisement over a period of time

Traffic-based FeesPaying based on the number of times an advertisement is placed

Methods of computing fees:

presents a generic illustration of the Advertising Business Model. The advertiser generally pays a fee to the content provider for adding promotional messages to the content it delivers to mobile users.Variations might include wireless advertising agencies, working as intermediaries between advertisers and content providers.

Advertiser

Advertising Fee

PromotionalInfo

Product/Service

Payment

Mobile Service/Content includingPromotional Info

Content Provider

Mobile User

Revenue Sharing Business Models

Revenue sharing generally involves collecting payment from the user and redistributing it across the different parties involved in delivering the serviceThe content provider might have to rely on partnership arrangements with other companies that will combine its content with that of others in order to deliver a compelling service.

Examples of content :often falling under this category include local weather updates, traffic conditions, news updates, and games and other entertainment services.

Mobile UserContent

Owner

MobileContent Provider

Content

Share of Revenue

Payment

Value-AddedMobile Content

Mobile User

Revenue Sharing Business Model. When the mobile content provider happens to be a mobile network operator, payment might be traffic-based

Mobile Business Intelligence

Question :Concepts contributing to business intelligence in modern mobile business environment

What is Business Intelligence (BI) ?

(BI) is a category of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions

The convergence of Business Intelligence and mobility, resulting in the capability to deliver data anytime anywhere, has been well underway for some time. Professionals are fast becoming comfortable with the use of smart phones not only for communication purposes but also as a means of keeping up to date on business information

There are three basic approaches to mobile BI

1. Event-based alerts

2. Static mobile reports

3. Mobile BI dashboards

1. Event-based alerts

provide a mobile indication (e.g., text message, email, voice message) of particular situations such as a point-of-sale malfunction or alarm on the property. This approach is useful for communicating that something has happened.

2. Static mobile reports

provide mobile access to daily or weekly reports that are viewed on the smartphone.This approach provides some information that themobile worker can use to determine why a situationhas occurred without returning to the office.

3. Mobile BI dashboards

connect directly to the backend BI (Business Intelligence) system and allow the user to dynamically accessand interact with the data in tables or graphic formats.This approach provides the mobile worker with theability to analyze current data and determine thebest action to take in response to a situation.

The goal of mobile BI is to provide the worker with the

contextually relevant information to make the best decisions.The mobile BI dashboard approach provides access to themost up-to-date data and the interface and interaction withthat data to effectively analyze the data on mobile devices.The resulting improved decision making can be a significantcompetitive advantage, enhancing customer satisfaction andbusiness performance.

The mobile workforce is growing in every region

of the world. And, by 2011, nearly 3 of every 4people in the U.S. workforce will be mobile.Source: IDC Worldwide Mobile Worker Population 2007-2011 Forecast(IDC#209813)

Benefits of the new environment

Faster business decisionsImproved collaboration on marketing materials and planning schedulesReduced IT support costs

Reduction in travel time and paperwork administration Savings in fuel costsReduction in data errorsSignificant rise in field worker productivityIncrease in accuracy and accessibility of information

Questions ?1. Identify the main attributes of business models from perspective of mobile business

2. Introduce the common technologies &/or concepts contributing to business intelligence in modern mobile business environment

3. Comment on the adequacy of the commonly addressed e-commerce business model from the view of mobile business

Thank you

ReferencesBooks:M-Commerce Technologies, Services, and Business Models By Norman

Sadeh , http://epubl.luth.se/1653-0187/2006/17/LTU-PB-EX-0617-SE.pdf

Links: http://www.site.uottawa.ca/~

nelkadri/Course%20Material/Lecture%202-Mobile%20Commerce.ppt http://bdnooz.com/2008/11/23/location-based-services-value-chain-part-1/ http://en.wikipedia.org/wiki/Mobile_commerce https://

oa.doria.fi/bitstream/handle/10024/34563/nbnfi-fe20041456.pdf?sequence=1 http://inforge.unil.ch/aosterwa/Documents/workshop/Camponovo.pdf http://www.themanager.org/resources/M-Commerce.htm http://

www.businesslink.gov.uk/bdotg/action/detail?itemId=1075386960&type=RESOURCES

http://www.cs.ccsu.edu/~stan/research/mcommerce/mcommercetechnologies-web.pdf

http://www.gs1.org/docs/mobile/Mobile_in_Retail.pdf http://www.gs1.org/sites/default/files/docs/mobile/GS1_Mobile_Com_Whitepape

r.pdf

ReferencesLinks:

http://www.wikio.com/technology/telecommunication/m-commerce http://

www.smartcardalliance.org/resources/lib/Mobile_Payment_Business_Model_Research_Report.pdf

http://www.c2mweb.eu/white-papers http://www.att.be/content/whitepaper/ATT-Vaultus_MobileBI_WP_final.pdf http://it.toolbox.com/blogs/bi-applications/what-is-bi-10201 http://www.mobilepaymentsworld.com/