eunite 2001, december 20011 the mobile commerce quest for value-added products & services pirkko...
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EUNITE 2001, December 2001 1
The Mobile Commerce Quest for Value-Added Products & Services
Pirkko Walden IAMSR/Abo Akademi University
EUNITE 2001, December 2001 2
MOBILE COMMERCE
• Key Success Factors Customer ownership [key for banking, brokerage; others only
if value-added for producers & customers; customers kept only through value added and best business practice]
PersonalisationLocalisationUbiquityTimelinessConveniencePricing
EUNITE 2001, December 2001 3
MOBILE COMMERCE
• M-commerce, products & services
Services: intangible, no ownership definedProducts: tangible, ownership definedDigital products: intangible, ownership definedDigital services: intangible, no ownership definedDigital products & services: intangible, ownership is
definedDigital services & products: intangible, ownership is
not defined
EUNITE 2001, December 2001 4
MOBILE COMMERCE
• Conceptual framework, customer perspective
Flexibility, products & services available anywhere, at any time and anyhow
Value-adding, products & services should improve productivity, be adaptive to localisation, be sensitive to customer personalisation
A mobile technology basis, should use innovative and distinguishing features of mobile technology
EUNITE 2001, December 2001 5
MOBILE COMMERCE
• Conceptual framework, producer perspective
Modularity, products & services to be built from a core of generic modules; should support flexibility
Layers, products & services should be built in layers to add attributes, characteristics; should support value-adding
Bundling, products & services built through a bundling of modular products and service; use the mobile technology basis
EUNITE 2001, December 2001 6
MOBILE COMMERCE
• Conceptual framework, management perspective
Value/cost ratios, products & services should show good/very good value for cost in benchmarking
Production, logistics, marketing and advertising, value chain activities, products & services should have innovative features through mobile technology when benchmarked
Business model, products & services should use innovative & distinguishing features of business
EUNITE 2001, December 2001 7
MOBILE COMMERCE
• M-commerce, products & services [Kontinen]
M-commerce: multimodal, mobilityVar A: mobile client, standard services, separate voiceVar B: + services, aware of client locationVar C: + moving services, aware of own locationVar D: + services, aware of other clients in vicinity
EUNITE 2001, December 2001 8
MOBILE COMMERCE
• M-commerce, products & services [Keen]
M-commerce: freedom of choice the key issueFollows: knowledge mobilisation among producers,
users, management, employees and in peer-to-peerProposal: b-to-b is going to be the first breakthrough,
wireless support for employees the secondValue networks (?): a better metaphor will be dynamic
value entities, which change shape with the context
EUNITE 2001, December 2001 9
MOBILE COMMERCE
• M-commerce, products & services
Our proposal: probably not single (”killer”) entitiesThen follows: synergistic combinations, which can be
simplified over timeAnd thus: key features can be given to individual
products & servicesPossible variations: (i) b-to-b, (ii) b-to-c, (iii) b-to-
employee, (iv) peer-to-peer
EUNITE 2001, December 2001 10
MOBILE COMMERCE
INTERELATIONS:co-production, technology,content, information, design
PROD1
PERS
LOCAL
UBI
TIMECON
PRICEPROD2
PERS
LOCAL
UBI
TIMECON
PRICE
SERV1
PERS
LOCAL
UBI
TIMECON
PRICE SERV2
PERS
LOCAL
UBI
TIMECON
PRICE
PERS – PersonalisationLOCAL-LocalisationUBI-UbiquityTIME-TimelinessCON-ConveniencePRICE-Pricing
EUNITE 2001, December 2001 11
MOBILE COMMERCE
CUSTOMER PERSPECTIVE:Flexibility, Value-adding, Mobiletechnology adoptive
PROD1
PERS
LOCAL
UBI
TIMECON
PRICEPROD2
PERS
LOCAL
UBI
TIMECON
PRICE
SERV1
PERS
LOCAL
UBI
TIMECON
PRICE SERV2
PERS
LOCAL
UBI
TIMECON
PRICE
PERS – PersonalisationLOCAL-LocalisationUBI-UbiquityTIME-TimelinessCON-ConveniencePRICE-Pricing
EUNITE 2001, December 2001 12
MOBILE COMMERCE
PRODUCER PERSPECTIVE:Modularity, Layers, Bundling
PROD1
PERS
LOCAL
UBI
TIMECON
PRICEPROD2
PERS
LOCAL
UBI
TIMECON
PRICE
SERV1
PERS
LOCAL
UBI
TIMECON
PRICE SERV2
PERS
LOCAL
UBI
TIMECON
PRICE
PERS – PersonalisationLOCAL-LocalisationUBI-UbiquityTIME-TimelinessCON-ConveniencePRICE-Pricing
ModulesLayers
Bundle
EUNITE 2001, December 2001 13
MOBILE COMMERCE
MANAGEMENT PERSPECTIVE:Value/cost ratios, Production & logistics(etc.), Business models
PROD1
PERS
LOCAL
UBI
TIMECON
PRICEPROD2
PERS
LOCAL
UBI
TIMECON
PRICE
SERV1
PERS
LOCAL
UBI
TIMECON
PRICE SERV2
PERS
LOCAL
UBI
TIMECON
PRICE
PERS – PersonalisationLOCAL-LocalisationUBI-UbiquityTIME-TimelinessCON-ConveniencePRICE-Pricing
EUNITE 2001, December 2001 14
MOBILE COMMERCE
• M-commerce, killer applications
Killer cocktail: a mix in which components cannot be identified
Killer pizza: a mix in which components can be distinguished
Killer bouquet: the aggregate > the sum of partsKiller soup: the more ingredients, the better it gets;
operator needed for stirringKiller fondue: as for the soup, no operator needed
EUNITE 2001, December 2001 15
MOBILE COMMERCE
INTERELATIONS:co-production, technology,content, information, design
PROD1
PERS
LOCAL
UBI
TIMECON
PRICEPROD2
PERS
LOCAL
UBI
TIMECON
PRICE
SERV1
PERS
LOCAL
UBI
TIMECON
PRICE SERV2
PERS
LOCAL
UBI
TIMECON
PRICE
PERS – PersonalisationLOCAL-LocalisationUBI-UbiquityTIME-TimelinessCON-ConveniencePRICE-Pricing
Bouquet
EUNITE 2001, December 2001 16
MOBILE ICT BUSINESS
• Key principles:Embedding processes in software brings the internal
operations and capabilites of the company forward into the customer relationship interface.
In a sense, this concentrates the business into the software; it transforms organisational value chain activities spread across locations and time zones to capabilities at hand, now and anywhere.
It transforms business by enabling personalisation, localisation, ubiquity, timeliness, convenience and neew pricing models
EUNITE 2001, December 2001 17
MOBILE ICT BUSINESS
Embedding processes in software is win-win for customer and provider.
Out-tasking – getting rid of a process – is win-win. In-sourcing – using advanced know how developed by
somebody else – is win-win. Company wins by interacting with a best practice eProcess
capability. Customer wins as service is being handled by a best-
practice provider. The provider wins by + revenue and + market
EUNITE 2001, December 2001 18
OUT-TASKING & IN-SOURCING
PARTNER I
PARTNER IIVIRTUAL CORPORATION
EUNITE 2001, December 2001 19
MOBILE ICT BUSINESS
• Building scale @ speed [Keen].Business design and organizational structuring are
constrained by geography, physical location, workflows, time and the links with capital investment demands.
eProcess companies can get access to world-class capabilities in months rather than years. A first-rate technology platform and a solid base of repeat customers more and more capabilties at less and less capital cost.
EUNITE 2001, December 2001 20
MOBILE ICT BUSINESS
• eProcess strategies [Keen]. eProcess edge over traditional companies: information-rich
relationships with customers and organizational flexibility through in-sourcing; out-tasking simplifies operations and improves service.
Build in-house capabilities: these form the operational basis for the company:
Enable people with knowledge and access to work effectively Support knowledge work with high-touch and –texture interfaces Embed company rules into software interfaces Build internal systems that provide high-value functionality
eProcess techniques to decide where and how to focus in-house capabilities
EUNITE 2001, December 2001 21
MC BUSINESS MODELA Bouquetof Bundles
PROD1
SERV1 SERV2
PROD2
SERV3 SERV2
B-TO-C
EUNITE 2001, December 2001 22
MC BUSINESS MODEL
• B-to-CBundles are combinations of products & servicesA bouquet can be built from (i) bundles or (ii) from
combinations of individual products & services.A bouquet is built to offer
Flexibility – availability anywhere, at any time and anyhowValue-added – will improve productivity, will be adaptive to
localisation, will be sensitive to customer personalisationMobile technology adoption- will use innovative and
distinguishing features of mobile technology to enhance flexibility and value-added
EUNITE 2001, December 2001 23
MC BUSINESS MODEL
• B-to-B The same bouquets or bundles are used as in the B-to-C model The customer is a business. A bouquet is built to offer
Flexibility – availability anywhere, at any time and anyhowValue-added – in production, logistics, marketing &
advertising: value chain activities for bringing m-commerce products & services to the markets
Mobile technology adoption- will induce (i) business process reengineering, (ii) multimodality, (iii) out-tasking, (iv) in-sourcing, (v) new logistical solutions
EUNITE 2001, December 2001 24
MC BUSINESS MODEL
• B-to-B [cont.] Bouquets are
adapted to customers and made ubiquitous with layers, adapted to localisation, personalisation and timeliness through
modules built for customer convenience with variations of the mobile
technology and the use of a choice of platforms (smart phones, WAP, communicators, PDA, digiTV, WLAN etc.)
Structured and built for flexibility and value-added
The bouquet structure of m-commerce products & services supports the out-tasking and in-sourcing business models [cf. next slide]
EUNITE 2001, December 2001 25
MC BUSINESS MODELA Bouquetof Bundles
PROD1
SERV1 SERV2
PROD2
SERV3 SERV2
B-TO-B
OUT-TASKINGPartner I
OUT-TASKINGPartner I
IN-SOURCINGPartner II
EUNITE 2001, December 2001 26
MC BUSINESS MODEL
• B-to-B [cont.] Partners I and II work on
Product entities and Service entities in a bouquet Modules forming products & services Layers, which are included in products & services Bundling products & services Logistics Marketing and advertising Management, and maybe even Planning
EUNITE 2001, December 2001 27
MC BUSINESS MODEL
• B-to-B [cont.] The mobile commerce business model may have side effects on
consortium and business partners in traditional business The mobile technology used/enhanced/improved/developed to
serve mc business models may traditional solutions in Production Logistics Marketing and advertising Management, and maybe even Planning
Thus, m-commerce may introduce competitive advantages also in tradional industry
EUNITE 2001, December 2001 28
MC BUSINESS MODEL
• B-to-Employee Both B-to-C and B-to-B solutions may be adapted to B-to-E Involves (i) an adaptation of modules to fit the corporate intranet
and corporate standard mobile solutions, (ii) the choice and adaptation of layers to fit employee work context and tasks, and (iii) the building of company-specific bundles or bouquets
These B-to-E solutions can be offered by (i) the producer of m-commerce products & services to its own employees, (ii) the out-tasking and/or in-sourcing partners to their own employees, (iii) other business partners in traditional business, (iv) through licensing to any corporate customers or by (v) licensing partners to any corporation
EUNITE 2001, December 2001 29
MC BUSINESS MODEL
• B-to-Employee [cont.] The B-to-E solutions may have some interesting consequences
Employees (E) will/can work with and understand the m-commerce products and services
E gain the same value-added in their own work as B or C partners Knowledge mobilisation among E Out-tasking and in-sourcing may become possible between and
within teams working in the same organisation Freedom of choice to work wireless anywhere, anytime and anyhow
while moving Corporate structure will be simplified, virtual, adaptive, flexible, fast
in reaction and knowledge based
EUNITE 2001, December 2001 30
MC BUSINESS MODEL
• Peer-to-Peer Principle: B-to-C products & servicces move out of the control of
B to become P-to-P distributed (and loved by the network operators, which will gain in cash flow)
B can control Bouquets or Bundles, and (i) allow or (ii) not allow P-to-P distribution; this can be controlled through proprietary software or possibly encryption
B may be interested in allowing P-to-P distribution in order to create a market; could include some mechanism to collect a (small) fee per user/customer/usage time unit/volume, etc.
If in-sourcing & out-tasking is used there may be restrictions on the use of modules, layers and bundles
EUNITE 2001, December 2001 31
MC BUSINESS MODEL
• Peer-to-Peer [cont.] Products & services may be modified for P-to-P usage by
Deleting or modifying modules Controlling the use of layers Adapting or tailoring bundles
P-to-P can be used to create Clubs, User Groups, Virtual Tribes – groups sharing in modification and application solutions
EUNITE 2001, December 2001 32
MOBILE COMMERCE
• M-commerce vs. e-commerce
Overall: focus on the following issues as compared to e-commerceChanges in fundamentalsSignificant changes in technologyModifications of products & servicesMobile enhancements of e-commerce products & servicesBusiness modelsPricing