Dial ‘M’ for M Commerce

Ajeya Karajgikar, Brian Young and Wenchao present you with:

MGT 4056 – E-Commerce

Shanghai Jiao Tong University-Georgia Tech

Summer 2008

Question:

What is M-commerce to you?

Definition

“Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device.”

Development of M-CommerceCommerce E-commerce M-commerce

Experience Brick-and-mortar, catalog

PC to web Mobile to webMobile to ‘vending machine’

Payment type Cash, Cheque, Credit, Debit

Credit, Others (e.g. PayPal)

Credit, Others (e.g. PayPal), Carrier billed or prepaid, Premium rate SMS

Technology Paper, PoS (mag stripe)

Portal, SSL Portal, SSL, PoS u-payments (irda, nfc, bar code)

Settlement Bank/Credit Companies

Bank/Credit Companies, Others (PayPal, etc)

Bank/Credit Companies, Others, Carriers

Driving Factors in M-Commerce

Exponential growth of the internet and e-commerce

Exponential growth of mobile phones

Development of 3G for faster data trasfer

Growing from about 3.5 billion in 2000 to about 200 billion in 2005

Cost of entry is very low

Limitation

Lack of Standards(host of device operating systems, networks)

Device Constraints(weak processors, Limited memory, Tiny screens, Poor resolution, Poor Data entry)

Networks(too slow, expensive to fix)Transition from 2G to 2.5G to 3G

network

Unique Feature

Ubiquity: easier information access in real-time communication independent of the user’s location.

Convenience: devices that store data are always at hand getting easier and easier to use.

Acessibility: Contacted anywhere anytime.

Unique Feature

Personalization: Preparation of information creating services that customize the end-user experience.

Localization: Knowing where the user is located at any particular moment, match services to their location.

Application

EarthPortePayWirelessGlobal Mobile Commerce ForumHsupplymBillMobile Internet

Applications:The criteria for m-commerce services or products Limited but precise choice Predictable availability Does not require lengthy and in-depth decision

making (appeal to impulsive buying behavior) Convenience

Examples: The New York Times bestseller list meets all the criteria. It

would be easy to purchase any of the listed books via a wireless device.

Tickets to popular entertainment events, such as concerts, live theatre, movies, sports events, trade shows, public forums

Micro-transactions: purchasing a fast food items, such as a soda pop from a vending machine

Payment of bills, banking, restaurant bill

M Commerce applications:

Wireless access: phone.com Alerting services: myalert.com Location services: airflash.com (world's first

and only Mobile Portal) Intranet applications: imedeon.com Banking services: macalla.com Web access: wapforum.com Mobile agents: tryllian.com

Applications:S

ourc

e: O

vum

(M

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/A)

Mobile Payments:

Lack of standards for m-commerce between different financial institutions

End-to-end security issue Retailer-processing center integration

problems High transaction processing capacity at the

backend application processors 

Lack of payment infrastructure 

Major vendor initiatives: Palm and Visa Partnership - Palm Inc. has started an

initiative with Visa to allow consumers to use Palm devices to beam credit card information to POS terminals through an Infra Red (IR) connection.

Visa International has rolled out a high-transaction payment infrastructure for online transactions.  

City Group made a deal with AOL- this will allow AOL subscribers to transfer funds and make payments for web purchases

FreedomPay.Com is working with Nokia to allow consumers to buy stuff from vending machines by using their cellular phones. Nokia is planning to embed RF devices in smart phones to allow this capability.

Advantages:

Ubiquitous Global Reach Universal Standards Richness Interactivity Personalization Information density

•Disadvantages:

Security (encryption, protecting the wireless connection from unauthorised access, hackers, viruses) Small screens of most devices still limit types of file and data transfer User interface is often difficult to learn how to use Technology constraints of mobile devices (memory, processing power, input methods)

Advantages and Disadvantages:

Markets: By 2008, China's wireless mobile market is estimated to

cross US$200 billion. An estimate of Lehman Brothers Inc. suggests that

revenues of mobile portals generated by sending news updates, games, and online dating amounted TO $200 million in 2001 which was estimated at $3 billion in 2004.

China Mobile, the world’s largest mobile operator, was the most profitable telecom operator in the Asia-Pacific region in 2002, with a profit of $3.5 billion on revenues of $12.2 billion.

A 28% return on revenue is an excellent indication of where the Chinese market is developing.

M commerce emerging in Philippines, India and Bangladesh.

Questions?

Citations: http://marcbowles.com/courses/amc_mobile/amcec_4.htm http://en.wikipedia.org/wiki/Mobile_Commerce http://www.roseindia.net/services/m-commerce/mobile-commerce.shtml http://www.gsmworld.com/services/mcommerce.shtml http://www.amazon.com/Hacking-Mobile-Phones-Ankit-Fadia/dp/1598631063http://209.85.175.104/search?q=cache:KJS6F_Isa_4J:www.it.iitb.ac.in/~sri/talks/m-com

merce.ppt+disadvantages+of+m+commerce&hl=en&ct=clnk&cd=8&client=firefox-a http://www.itreviews.co.uk/graphics/normal/hardware/h517.jpg http://australia-internet.com.au/iphone3.jpg M-Commerce in World’s Largest Mobile Market http://images.google.com/imgres?imgurl=http://www.lonvig.dk/portraits-alfred-hitchcock.jpg&imgrefurl=http://www.lonvig.dk/exhibition-portraits.htm&h=408&w=408&sz=30&hl=en&start=2&um=1&tbnid=mRSSchdsk1iOUM:&tbnh=125&tbnw=125&prev=/images%3Fq%3Dalfred%2Bhitchcock%26um%3D1%26hl%3Den%26newwindow%3D1%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DNhttp://images.google.com/imgres?imgurl=http://www.facade.com/celebrity/photo/Alfred_Hitchcock.jpg&imgrefurl=http://www.facade.com/celebrity/Alfred_Hitchcock/&h=407&w=250&sz=15&hl=en&start=5&um=1&tbnid=f5A_OVenPDAqPM:&tbnh=125&tbnw=77&prev=/images%3Fq%3Dalfred%2Bhitchcock%26um%3D1%26hl%3Den%26newwindow%3D1%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DN

E-Commerce: Business, Technology, Society, 4th edition, Kenneth C. Laudon and Carol G. Traver