230 likes | 656 Views
M-Commerce Value Chain. Nour El Kadri University Of Ottawa. Content providers Wireless Application Service Providers Mobile Network Operators Infrastructure Equipment vendors Software vendors. Mobile Portals Content Aggregators Third-party billing providers Mobile Device Manufacturers
E N D
M-Commerce Value Chain Nour El Kadri University Of Ottawa
Content providers Wireless Application Service Providers Mobile Network Operators Infrastructure Equipment vendors Software vendors Mobile Portals Content Aggregators Third-party billing providers Mobile Device Manufacturers Location Information Brokers Business Partnerships
Infrastructure Equipment Vendors • Equipment vendors provide: • Base Stations • Mobile Switching Systems • Wireless Transmission Solutions for both Data and Voice $50 Billion Market in 2000 $100 Billion in 2005 They are major stakeholders in the m-Commerce market.
Software Equipment Vendors They play a critical role in: • Third Generation Partnership Forums (3GPP) • Wireless Application Protocol (WAP) • Mobile electronic Transaction (MeT) • Location Interoperability Forum (LIF)
Software Vendors Suppliers of: • Operating Systems • Databases • Microbrowsers • Other middleware technologies Major Operating Systems: • EPOC, by the Symbian Consortium (Psion, Mstsushita, Ericsson, Nokia, Motorola) • Windows CE, by Microsoft • PalmOS, runs on 60% of all PDAs (2004)
Microbrowsers & Databases Microbrowsers: • Openwave (Phone.com) • Microsoft, Nokia, Ericsson • 4thPass has a Java-enabled microbrowser Databases • iAnywhere Solutions, subsidiary of Sybase • Oracle • IBM Most of these key players rely on the business model that combine licensing, consulting and maintenance fees.
Content can be: News Directory services Directions Shopping and ticketing services Entertainment Services Financial Services Sources of Revenue: Subscription fees Transaction fees Share of traffic charges Sponsorships, advertising, referral fees, commissions. Content Providers
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 Fees i-Mode model – rely on DoCoMo to collect fees • Ex: Bandai and its Chara-Pa service, 1.6 million subscribers by 2000. • Usage Fees Charge for actual usage of a service • More difficult for small providers to implement on their own due to small charge fees rely on mobile operators, mobile portals and third party micro-billing operators
Shopping Business Models • Like wired e-tailers…wireless is a new distribution channel • Nokia, Nordia and Visa…cooperating to make full transactions
Marketing Business Models • Mobile presence is subsidized company’s core business • Buying and selling cars, heavy equipment… • Promoting programs of a university • Tsutaya for video and CD rentals • In 2000, 650,000 users • 2 million accesses per week • Privacy laws and anti-spamming legislation protect customers…if implemented!
Improved Efficiency Models • Cutting cost and improving customer satisfaction • Mobile banking • Mobile trading • Mobile ticketing • Disintermediation…removing extra channels Daiwa Securities in Japan • 35% of stock trading on the internet • 20% using the i-mode mobile system • Mobile transactions were 50% cheaper than traditional ones • Boosting company productivity through mobile access
Advertising Business Models • Flat Fees • Charge flat fee for displaying advertisement over a period of time • Traffic-based Fees • Paying based on the number of times an advertisement is placed • Performance-based Fees • Fees based on the number of click-throughs or call-throughs
Revenue Sharing Business Models • Partnership arrangements with other companies • Collecting payment from user and distributing it Webraska: • Driving maps with real time reporting • Revenue sharing with Trafficmaster and Orange, M1, and voice stream.
Content Aggregators Value Creation by assembling content from various sources • BuzzCity in Singapore aggregates, repurposes and WAP-enable local, national and international content Redistributed by mobile operators: • Telenor in Norway • Digi in Malaysia • TotalAccess in Thailand Mobile portals, network operators and many ASPs operate as content aggregators
Mobile Network Operators • MNOs Mobile Voice Carrier • Mobile Content Provider • Mobile portal • Mobile ISP • Mobile Location Broker • Mobile Transaction Provider
MNOs Challenges Biggest threat comes from other competing players: • Virtual Mobile Network Operators (VMNOs) • Do not own spectrum, but buy bandwidth from MNOs for resale • Mobile portals • MNOs have portals but feel the heat of traditional Portals with mobile presence • Third-party Billing Providers • Banks, Credit Card Companies, billing providers
Mobile Portals • Offer a one-stop shop solution to mobile users • Market close to $10 billion per year (2005) • In 2001 more than 200 portals launched in Europe alone. • Revenues come from different streams • To compete a portal needs to offer: • Ease of use, personalization, a critical mass of services and applications - all at a reasonable price
Mobile portals Players fall into different categories: • Mobile Operators • NTT DoCoMo • Traditional Internet Portals • AOL, Yahoo!, MSN, Lycos, Excite • Strategy to offer single integrated portal solution • Mass Media Companies • Vivandi Universal Vizzavi portal in cooperation with Vodafone • Device Manufacturers • Palm and Nokia through MyPalm and Club Nokia • Independent Mobile Portals • Halebop, djuice, Mviva, iobox bought by Terra Mobile • Financial Organizations • Nordea specialized WAP portals for shopping and banking
Third Party Billing and Payment Providers • Early versions of WAP and i-Mode did not provide end-to-end security. This resulted in content providers depending on MNOs and third-party providers for billing. • Pre-paid cards • Variations of mobile wallet by bankc to counter Mobile operators • Other initiatives include: • MeT, Mobile electronic Transaction • Mobey forum, the Mobile Forum • Global Mobile Commerce Interoperability Group
Mobile Device Manufacturers • Their design decisions determine the functionality and standards available on mobile platforms • CPU speed and memory capacity • OS • Communication standards supported – GPRS, WCDMA • Microbrowser pre-installed • SIM, WIM, certificate-based authentication,… • Location tracking functionality • Applications, MP3, Videostreaming,…
Wireless Application Service Providers • Application Development • Hosting and Managing the application • Developing the wireless bridge • Hosting and managing the wireless bridge
Location Information Brokers • Responsible for determining and updating user’s position • Supplying information to content providers, mobile portals,…. • Driven by location sensitive applications, regulations like E-911 in the US Players: • Cambridge Positioning Systems • Cell-Loc over AMPS and CDMA