1 / 29

Strategies of M-commerce

Strategies of M-commerce. Chia-Liang Hung 2004/03/27. Topics. Evolution of wireless technologies Key factors impacted the wireless diffusion Composition of wireless services Characteristics of m-commerce Lessons of i-mode Suggestions of m-commerce strategies.

infinity
Download Presentation

Strategies of M-commerce

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Strategies of M-commerce Chia-Liang Hung 2004/03/27

  2. Topics • Evolution of wireless technologies • Key factors impacted the wireless diffusion • Composition of wireless services • Characteristics of m-commerce • Lessons of i-mode • Suggestions of m-commerce strategies

  3. The Last 100 Feet— Competition of penetration rate • Server-client mode of microcellular network • Decentralized local wireless loop • Promise of satellite broadband services • Local rooftop community network—free and high-speed radio network access communities • Home wireless network—PAN system

  4. 較少演化路徑 主要演化路徑 Evolution of mobile standards CDMA2000 1x IS-95C CDMA2000 1x EV DO CDMA2000 1x EV DV cdmaOne IS-95A IS-95B GPRS EDGE GSM HSCSD PDC WCDMA PDC-P PHS 2G 2.5G 3G

  5. The Trends of PAN/WLAN • 802.11a—transmission at 5GHz (11Mb~54Mb) • 802.11b(Wi-Fi)—2.4GHz (11Mb) • 802.11g—extension of 802.11b (20Mb~54Mb) • 802.11e—mediation of 802.11x • 802.16a—Wi-max • Bluetooth—2.4GHz (1Mb) • HomeRF/2.0—2.4GHz (1.6/10Mb) • HyperLan2—European protocol (ETSI), 5GHz (54Mb)

  6. Location comparison of wireless Internet users • 80% in Japan • 40m i-mode users & 15m WAP users • 10% in Korea • 7m WAP users • 7% in Europe • 5m WAP users • 3% in U.S.A. • 2m WAP users & 0.7m Palm users • 58% in i-mode vs. 41% WAP vs. 1% Palm

  7. Carriers ARPU over time Carriers ARPU ($) M-Commerce Unified messaging Instant messaging Content channels Integrated messaging Mobile email Voice only 2005 2000 Time ARPU: average revenue per user

  8. Transformation of data transmission • Circuit switching vs. packet switching • Good for dedicated large amount transmission vs. efficient for short- & large- burst transmission • From setup delay to immediate setup & transmission • From point-to-point connection to broadcasting • From logon for every transmission to one logon at power-up • Toward generally secure

  9. Value Layers of Mobile Infrastructure 行動入口網站 Oracle Mobile, Yahoo!, MSN 資訊包裝組合廠商 WSJ, CNN, NBA.com ABCNews Application catalysts 內容創作廠商 IBM, Aether, Oracle, Wirelessknowledge, Razerfish, Signalsoft, Webraska 行動應用服務廠商(MASPs) 行動平台廠商 Palm OS, MS Win CE, Symbian EPOC, WAP Forum, Bluetooth SIG, GAA (GPRS application alliance), UMTS forum, Lucent, Nokia, Ericsson, Motorola/ IBM, Phone.com, Cisco Application platform & Technology platform 行動閘道設備廠商 行動電話服務廠商 (Operators & WISPs) Network infrastructure 基礎網路設備廠商

  10. Wireless markup language • Web Clipping • Supported by Palm; based on HTML • VoiceXML • Supported by IBM, Nokia, Motorola, Lucent; based on XML • Compact HTML • Supported by Microsoft, Ericsson; based on HTML • i-mode cHTML • Supported by NTT DoCoMo, based on HTML; primarily popular in Japan • WML • Supported by WAP Forum, based on Phone.com’s HDML

  11. The characteristics of mobile service • Mobile handset • Limited memory capacity • Limited battery power • Limited computing capability • Small-sized display screen • Difficult to input • Mobile network • Lower transmission rate • Unstable accessibility

  12. Influenced factors on mobile diffusion • Degree of openness • Investment size • Government involvement • Interface ambiguity among protocols • The customer-supplier relationship between operators and equipment vendors • The role of global development on wireless infrastructure • The role of product platform on mobile phone

  13. Reach vs. richness • Reach refers to the network penetration & timely access • Mobile > fixed line • Richness refers to the bandwidth of information • Mobile < fixed line • Japan mobile services focus on reach, simplicity, & local relevancy more than richness, while U.S. and European operators are overemphasizing richness.

  14. Trade-off between reach and richness European & US approach Richness Fixed-line Internet (PCs) Mobile Internet (PDAs) Trade-off On Internet Japanese approach Mobile Internet (phones) Reach

  15. Business model of mobile service o, Mobile phone phone manufacturers $ Buy phone Fees for advertising $ phone $ fee Monthly fee, phone expense Mobile operator phone subscribers Mobile retailer o, i $ Fees for commission $ Content providers trade I, o $ fee e.g., NTT DoCoMo’s i-mode

  16. Partnerships of NTT DoCoMo

  17. Payment flows of i-mode mobile service • In Japan mobile market: • Subscribers  operators ($40 monthly & traffic charges); mobile retailers (< $50 for phones); and contend providers (￥0.3 per packet for assess, average 3000~4000 packets) • Operators  mobile retailers ($300~$400) • Mobile retailers  phone manufactures (< $300 for phones) • Content provider  operators (9% for commission)

  18. Killer applications of Japanese Mobile commerce • Simplicity, personalization, locality, & killing time • Entertainment (71%); • Travel (8.4%); • Financial (5.1%); • Books & music (4.2%); • Services (3.3%); • Electronic products (1.6%); • Other (5.9%)

  19. Cooperate with physical retailer networks

  20. i-mode connecting with Sony PS

  21. Mobile payment mechanism • Prepaid card or SIM card (for micro-payment)--the transfer pricing model directly through the first mobile IC card • Mobile credit card, Smartcard, for m-commerce, the second IC card inserted into the mobile phone for micro-payment • Equipment vendors vs. operators vs. banks • Ericsson, Nokia, Motorola, Sagem, etc. • France Telecom, Sonera • Visa, Master Card • Mobile operators as intermediaries • Gateway of transmission or controlling transaction? • The former—mobile users directly link to banks • The latter—operators as the account aggregators • Digital certification—VeriSign, Certicom, F-secure

  22. Japanese specific telecommunication institutions • Special context • NTT family, that is NEC, Matsushita, Fujitsu, Hitachi, etc. which had cooperated for the 5G computer, weave the new value network harmoniously • Dominant position of mobile installed base & ISP users • large market share and economies of scale • Lower PC penetration • induce quick exploitation of the mobile phone platform to access Internet • Strong competitors—shifting the war from voice to data • KDDI—the pioneer of new Qualcomm CDMA data packet system • J-phone—a member of Vodafone, the global largest mobile operator

  23. The lessons of i-mode • The leading company in the era of chaos • A goose flying deployment • Total solutions the whole product • Alliance & joint venture to aggregate complementors, complementarities for new businesses • Increasing return—EOS, and market penetration/exploitation • Positive feedback—the win-win loop • Network externality—adoption/diffusion rate • Compatibility with the installed base • Incentive compensation & risk sharing • Asymmetric transmission fee

  24. Feedback loops in the Mobile Internet Simple (micro-payment & packet services Complex (Java, 3G) Services Young All ages Simple Complex Users Portals/search engines + Simple Complex Simple Rich Business models Content Phones/ other devices Large screens but simple Multifunctional

  25. Comparison of i-mode users between Japan’s domestic area and the overseas countries

  26. Strategic Institutional Institutional Performance Levers Transformations Indicators M arket Leadership V ertical/Horizontal Lock - in n n n ¾ ¾ E conomic S cale Disintegration Effect n Initial State of Decreasing Market Network n n n Effect Penetration Concentration Coordination Unstable n n Capability of Evolutionary Technology Infrastructure Seeking levers in the transformation of mobile environment

  27. International comparisons of institutional levers

  28. Japanese special customer behaviors • Another perspective of designing & breeding i-mode services • A social & psychological view of new technology in our everyday lives • Strength • Passions • Love • Impatience • Luck • Fun

  29. Conclusion • Anyone, anytime, anywhere—a dream? • Pre-requisite condition • Server-end—packet-based transmission bearers/infrastructure • Client-end—widely spreading handheld devices • Killer apps of M-commerce—timely, locality, simplicity • Mobile B2B—inventory control & logistics/reverse logistics; M-CRM 1-to-1 marketing • Mobile B2E—integration ERP & KM into mobile EIP & XRP (extended resource planning); time, travel, & property management

More Related