GOING MOBILE

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GOING MOBILE

• PIRKKO WALDEN
• INSTITUTE FOR ADVANCED MANAGEMENT SYSTEMS
  RESEARCH
• Åbo Akademi University, FINLAND

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Introduction

• the wave of hype faded away in 2002
• more realistic expectations of
• what mobile commerce will enable
• what applications it will produce
• mobile commerce is a new, innovative way of
  conducting time-critical transactions regardless
  of location

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Introduction

• mobile communication
• from transmitting speech to new services which
  enable business and entertainment regardless of
  time and place
• most popular value adding service is SMS
• in the year 2002, 1.4 billion SMS messagges were
  sent in Finland
• a market of over 200 M

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Did you know this about the SMS generation?

• Young people of 15 to 25 -years send app. 90 SMS
  per month, which means 15 000 thumb plucks per
  person per month
• Youth spend app. 13.5 of their money to mobile
  services
• In Finland 2.900.000 logo and ringing tone
  request per month!
• Mobile services were used in Finland all together
  113.000.000 times (source Fonecta/ Mobile
  Monday)

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Introduction

• Europe (TNS Telecoms study in Feb. 2003)
• 42 of mobile phone users are interested in 3G
  services
• prepared to pay extra for 3G handsets and
  services
• average monthly invoice for a mobile phone user
  is 26
• 20 for prepaid and 37 for contracts
• 50 of those interested in 3G services were
  willing to pay an additional 6-10 per month
• willing to pay up to 330 for a 3G handset

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TNS Telecoms study in Feb. 2003

• Europe
• most favored 3G applications
• sending and receiving email on mobile phones
• using videophone handsets
• least favoured 3G applications
• downloading music files
• viewing video clips
• Nokia Mobile Phones, Motorola, Samsung, Siemens
  and Sony Ericsson
• believe that the penetration of 3G services and
  applications have taken place by 2006

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Mobile...some conclusions

• all these five key players focus on applications,
  which fulfil the Braudel Rule
• freedom becomes value when it changes the limits
  of the possible in the structure of everyday life
• freedom is about choice and value
• choice has to translate to values that customers
  are villing to pay for and that companies can
  afford to provide
• customers and consumers will have the ultimate
  power to determine what will be successful mobile
  commerce products and services

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Mobile commerce

• is about the explosion of applications and
  services that will become accessible from
  internet-enabled mobile devices
• involves new technologies, sevices and business
  models
• different from traditional e-commerce

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Mobile Commerce definitions

• Any transaction with monetary value that is
  conducted via a mobile telecommunications network
  (Durlacher, 2000)
• E-commerce for users on the move (Vittet-Philippe
  and Navarro, 2000)
• Mobile means that its primary usage environment
  is a mobile one (May, 2001)

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definitions

• Transactions with monetary value, conducted using
  the mobile internet (Paavilainen, 2001)
• mobile internet internet access from a mobile
  device, such as a phone, a PDA (Personal Digital
  assistant), a car information system, a watch, a
  two-way pager or some other device capable of
  accessing the internet regardless of time or
  location

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definitions

• the emerging set of applications and services
  people can access from their internet-enabled
  mobile devices (Sadeh, 2002)

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Mobile Commerce

• Is the extension of e-commerce from wired to
  wireless computers and telecommunications, and
  from fixed locations to anytime, anywhere, and
  anyone (Keen Mackintosh 2001)
• To make the user the centre of information and
  communication world in relationships and business
  operations
• you are are where everything is _at_

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Mobile Commerce

• The innovations that changes every day life will
  come from the creative and pragmatic interaction
  of the supply side and the demand side
  (Heikkonen, Nokia Networks)
• Mobile services
• An embryo of a conceptual framwork for mobile
  services (Carlsson-Walden)
• Three perspectives the customer, the producer
  and the management

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Mobile Commerce

• The customer perspective
• Flexibility available anywhere, at anytime and
  anyhow
• Value-adding should improve productivity,
  adaptive to localisation, sensitive to customer
  personalisation
• A mobile technology basis enhance the quality
  of life

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Mobile Commerce

• The producer perspective
• Modularity built from core of generic modules,
  which can be combined to form context adapted
  services supports the flexibility element
• Layers to add attributes and characteristics
  which are adopted to customer personalisation,
  localisation, etc this supports the value-adding
  element
• Bundling could be built through a bundling of
  modular products and services a way to use the
  mobile technolgy basis

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Mobile Commerce

• The management perspective
• Value/cost ratios should show good or very good
  value for cost in comparison for similar
  services basis for pricing strategies and cost
  and revenue models
• Production, logistics, marketing and advertising
  innovative features
• Business models mobile services should use
  innovative and distinguishing features of mobile
  technology to support new business models

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Killer Applications?

• There may not be any single killer application
• Killer bouquets a set of components in which the
  aggregate is more than the sum of its parts

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Mobile Value

• Time-critical arrangements
• Always-on connectivity of the medium is an
  important feature
• Allows for on-demand push technology solutions
• Market alerts for stock traders
• Spontaneous decisions and needs
• Internally awakened, spontaneous
• Entertainment needs
• Spontaneous, killing time, having fun

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Mobile value

• Efficiency ambitions
• Aiming at productivity, increase worker
  productivity
• Mobile situations
• Of value only through a mobile medium
• Away from home/on the road/on the move
• Roadside services parking machine payments

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Mobile services, applications and systems
confusing?

• UMTS forum
• Differs between services and applications
• Mobile services are the operator choices for
  users a service definition, a service pricing
  model, roaming (service portability),
  interoperability between terminals and quality of
  service.
• Mobile applications are built on the service of
  choice user content, operator content, third
  party content.
• System service application

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Classification of mobile services

• Subscribtion
• Regular up-dating
• Must be unsubscribed
• Example daily horoscope

• One-time
• Order once
• Continuous
• One-time
• Example games
• One-time one-time
• Example training advice

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Mobile ServicesKalakota and Robinson 2002
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Mobile-Business

• is the application infrastructure required to
  maintain business realtionships and sell
  information, services, and commodities by means
  of mobile devices
• m-commerce as the facade and m-business as
  everything that is happened behind the scenes
• m-business is the logical extension of e-business
  to address new customer channels and integration
  challenges

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Mobile-Business offline and online

• can take place even if devices are not connected
  to the internet
• disingenious to assume that all mobile devices
  are going to be online all the time (Kalakota and
  Robinson)

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The Meaning of Mobile

• Mobile but off-line
• Use a mobile device to run self-contained
  programs while not connected to the internet
• Sync with a PC to download software, email, and
  other content onto PDA for portable use or
  offline reference
• Data collected on road sync with PC once back in
  the office or uploaded when live internet
  connection established

• Mobile but on-line
• commonly called wireless
• experience based on realtime internet connection
• sattellite, radio transmitter..
• online device always on in presence of any
  wireless data network
• seamless connection to the internet for
  exchanging email, instant messages, and
  retrieving web content

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Some Lessons From The Past

• Speed kills
• fast growing mania and planning for next round of
  financing, a recipe for disaster
• Fashion and glamour dont make a business
• creating sustainable business takes a lot more
  than funding
• Diffusion of innovation takes time
• change takes time and patience

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How will the mobile solutions evolve?

• Phase 1 Messaging
• SMS
• Phase 2 Info-connectivity
• to access and retrive information from the web
• Phase 3 Transactions
• business transactions begin to take place via the
  mobile channel
• Phase 4 Transformation
• the interconnection of business processes
  inside the company and between organisations -
  takes place
• Phase 5 Infusion
• the company absorbs mobility into its way of
  doing business Current state messaging
  solutions have been adopted

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Business applications not technology

• Customers do not buy operating systems,
  processors, or architectures
• Customers buy applications, performance, and
  useful solutions
• Applications morphing from nice to have
  personal management apps to need to have
  mission critical corporate apps

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