Mobile Commerce Business Models , Business intelligence

1. Mobile Commerce Business Models ,Business intelligence

2. OUTLINE 1. M-Commerce Value Chain M-Commerce Business Models • User Fee Business Models • Shopping Business Models • Marketing Business Models • Improved Efficiency Business Models • Advertising Business Models • Revenue-Sharing Business Models 2. Mobile Business Intelligence What is Business Intelligence Basic approaches to mobile BI 1. Event-based alerts 2. Static mobile reports 3. Mobile BI dashboards

3. Types of E-Commerce • Classified by nature of market relationship • Business-to-Consumer (B2C) • Business-to-Business (B2B) • Consumer-to-Consumer (C2C) • Classified by type of technology used • Peer-to-Peer (P2P) • Mobile commerce (M-commerce)

4. M-Commerce Value Chain Question : Identify the main attributes of business models from perspective of mobile business

5. 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

6. User Fee Business Models • Subscription Fees Tend to be easier to collect than transaction fees, and provide a more predictable source of income. Independent content providers might find it more economical to rely on the mobile network operator for the collection of subscriptions • Usage Fees Charge for actual usage of a service are the ultimate source of revenue in the sense that they make it possible to charge for actual usage of a service, with each access generating additional revenue for the content provider

7. The User Fee Business Model often involves relying on a third-party micro billing provider, whether for the collection of subscription fees or for actual usage fees. 3rd Party BillingProvider User Fee (monthly subscription or actual usage fee) Percentage of User Fee Content Provider Mobile User Mobile Content

8. Shopping Business Models • This model is fairly similar to the one of wired e-tailers Players here sell goods and services over the mobile Internet, viewing it essentially as another distribution channel. They include both pure-play Internet companies such as Amazon or Travelocity Examples of e-tailing Websites :

9. The Shopping Business Model is similar to the one found on the wired Internet. Payment also often involves a third party, not represented here, such as a credit card company, bank, or mobile network operator, which will generally keep a percentage of the transaction. Mobile e-Tailer Mobile Content Mobile Shopper Payment Product/Service

10. Marketing Business Models • Uses Internet technology to create markets in digital environment that bring buyers and sellers together • To display products • Search for products • Establish a price

11. The Marketing Business Model is adopted by brick-and mortar players and traditional Internet companies interested in using the mobile Internet as a marketing channel rather than as an actual sales channel Their core business subsidizes their mobile Internet presence. Content Provider Mobile Marketing Content Mobile Internet Presence Mobile User & Core Business Customer Mobile User & Core Business Customer Marketing “Subsidy” Non-Mobile Payment Core Business Product/Service

12. Improved Efficiency Models • Other content providers simply view the mobile Internet as an opportunity to cut costs and improve customer satisfaction. • This is similar to the view many companies have of the wired Internet, where an online presence can help reduce operating expenses. • Mobile examples of this model include mobile banking, mobile trading, or mobile ticketing. • These solutions make it possible for companies to cut down on personnel at branch offices, call centers, ticketing booths, and counters.

13. The Improved Efficiency Business Model: savings in operating costs and added convenience to the user offset the costs of setting up a mobile presence Content Provider Mobile Service/Content Mobile Internet Presence Mobile User & Core Business Customer Mobile User & Core Business Customer Lower Operating Costs Service Usage/Transactions (possibly including payment) Traditional Business

14. Advertising Business Models Methods of computing fees: • 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

15. presents a generic illustration of the Advertising Business Model. The advertiser generally pays a fee to the content provider for adding promotional messages to the content it delivers to mobile users. Variations might include wireless advertising agencies, working as intermediaries between advertisers and content providers. Mobile Service/ Content including Promotional Info Mobile User Advertising Fee Content Provider Promotional Info Advertiser Product/Service Payment

16. Revenue Sharing Business Models • Revenue sharing generally involves collecting payment from the user and redistributing it across the different parties involved in delivering the service The content provider might have to rely on partnership arrangements with other companies that will combine its content with that of others in order to deliver a compelling service. Examples of content : often falling under this category include local weather updates, traffic conditions, news updates, and games and other entertainment services.

17. Revenue Sharing Business Model. When the mobile content provider happens to be a mobile network operator, payment might be traffic-based Value-Added Mobile Content Mobile User Content Mobile User Mobile Content Provider Content Owner Share of Revenue Payment

18. Mobile Business Intelligence • Question : • Concepts contributing to business intelligence in modern mobile business environment

19. What is Business Intelligence (BI) ? (BI) is a category of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions

20. The convergence of Business Intelligence and mobility, resulting in the capability to deliver data anytime anywhere, has been well underway for some time. Professionals are fast becoming comfortable with the use of smart phones not only for communication purposes but also as a means of keeping up to date on business information

21. There are three basic approaches to mobile BI 1. Event-based alerts 2. Static mobile reports 3. Mobile BI dashboards

22. 1. Event-based alerts provide a mobile indication (e.g., text message, email, voice message) of particular situations such as a point-of-sale malfunction or alarm on the property. This approach is useful for communicating that something has happened.

23. 2. Static mobile reports provide mobile access to daily or weekly reports that are viewed on the smartphone. This approach provides some information that the mobile worker can use to determine why a situation has occurred without returning to the office.

24. 3. Mobile BI dashboards connect directly to the backend BI (Business Intelligence) system and allow the user to dynamically access and interact with the data in tables or graphic formats. This approach provides the mobile worker with the ability to analyze current data and determine the best action to take in response to a situation.

25. The goal of mobile BI is to provide the worker with the contextually relevant information to make the best decisions. The mobile BI dashboard approach provides access to the most up-to-date data and the interface and interaction with that data to effectively analyze the data on mobile devices. The resulting improved decision making can be a significant competitive advantage, enhancing customer satisfaction and business performance. The mobile workforce is growing in every region of the world. And, by 2011, nearly 3 of every 4 people in the U.S. workforce will be mobile. Source: IDC Worldwide Mobile Worker Population 2007-2011 Forecast (IDC#209813)

26. Benefits of the new environment Faster business decisions Improved collaboration on marketing materials and planning schedules Reduced IT support costs Reduction in travel time and paperwork administration Savings in fuel costs Reduction in data errors Significant rise in field worker productivity Increase in accuracy and accessibility of information

27. Questions ? 1. Identify the main attributes of business models from perspective of mobile business 2. Introduce the common technologies &/or concepts contributing to business intelligence in modern mobile business environment 3. Comment on the adequacy of the commonly addressed e-commerce business model from the view of mobile business

28. Thank you

29. References • Books: • M-Commerce Technologies, Services, and Business Models By Norman Sadeh , • http://epubl.luth.se/1653-0187/2006/17/LTU-PB-EX-0617-SE.pdf Links: • http://www.site.uottawa.ca/~nelkadri/Course%20Material/Lecture%202-Mobile%20Commerce.ppt • http://bdnooz.com/2008/11/23/location-based-services-value-chain-part-1/ • http://en.wikipedia.org/wiki/Mobile_commerce • https://oa.doria.fi/bitstream/handle/10024/34563/nbnfi-fe20041456.pdf?sequence=1 • http://inforge.unil.ch/aosterwa/Documents/workshop/Camponovo.pdf • http://www.themanager.org/resources/M-Commerce.htm • http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1075386960&type=RESOURCES • http://www.cs.ccsu.edu/~stan/research/mcommerce/mcommercetechnologies-web.pdf • http://www.gs1.org/docs/mobile/Mobile_in_Retail.pdf • http://www.gs1.org/sites/default/files/docs/mobile/GS1_Mobile_Com_Whitepaper.pdf

30. References Links: • http://www.wikio.com/technology/telecommunication/m-commerce • http://www.smartcardalliance.org/resources/lib/Mobile_Payment_Business_Model_Research_Report.pdf • http://www.c2mweb.eu/white-papers • http://www.att.be/content/whitepaper/ATT-Vaultus_MobileBI_WP_final.pdf • http://it.toolbox.com/blogs/bi-applications/what-is-bi-10201 • http://www.mobilepaymentsworld.com/