m-commerce: an example of interactive media developments gary akehurst

M-commerce: an example of M-commerce: an example of interactive media developmentsinteractive media developments

Gary AkehurstGary Akehurst

m-commercem-commerce

E-commerce:E-commerce:““Electronic commerce is an emerging concept that describes the Electronic commerce is an emerging concept that describes the process of buying, selling, or exchanging products, services and process of buying, selling, or exchanging products, services and information via computer networks, including the Internet”.information via computer networks, including the Internet”.Turban, King, Lee, Warkentin and Chung, (2002)Turban, King, Lee, Warkentin and Chung, (2002)

M-commerce:M-commerce:““Mobile commerce is referred to as ‘transactions with monetary value, Mobile commerce is referred to as ‘transactions with monetary value, conducted using the mobile Internet’. This definition covers business to conducted using the mobile Internet’. This definition covers business to business, business to consumer and consumers to consumer business, business to consumer and consumers to consumer transactions. Mobile commerce is a sub-set of e-commerce in terms of transactions. Mobile commerce is a sub-set of e-commerce in terms of technical issues. Additionally, m-commerce is not a truncated form of technical issues. Additionally, m-commerce is not a truncated form of e-commerce but a new, innovative way of conducting time-critical e-commerce but a new, innovative way of conducting time-critical transactions regardless of location”.transactions regardless of location”.Paavilainen (2002)Paavilainen (2002)


E-commerce appears to be moving towards m-commerceE-commerce appears to be moving towards m-commerce

► Fast growth of mobile market generated in part by prepaid contractsFast growth of mobile market generated in part by prepaid contracts► Mobile phones are affordable items of personal equipmentMobile phones are affordable items of personal equipment► Mobile phones becoming smarter and promise a closer integration of Mobile phones becoming smarter and promise a closer integration of

online activity with other tasks (e.g. Apple iPhone)online activity with other tasks (e.g. Apple iPhone)► Using the web has become an habitual, daily part of life and work for Using the web has become an habitual, daily part of life and work for

many people in developed countriesmany people in developed countries► The mobile phone is becoming a Personal Trusted Device (PTD) The mobile phone is becoming a Personal Trusted Device (PTD)

enabling secure banking, payment and ticketing transactionsenabling secure banking, payment and ticketing transactions


► Seeing mobile phones becoming digital wallets, useful for a wide range Seeing mobile phones becoming digital wallets, useful for a wide range of mobile transactions either remotely, over digital mobile networks or of mobile transactions either remotely, over digital mobile networks or locally at points of sale such as parking meterslocally at points of sale such as parking meters

► Mobile commerce will be used for buying goods, financial services, Mobile commerce will be used for buying goods, financial services, purchasing different types of digital content (e.g. ringing tones, purchasing different types of digital content (e.g. ringing tones, graphics, music files, picture messages from content providers)graphics, music files, picture messages from content providers)

► Games, downloadable phone applications, music and video feeds Games, downloadable phone applications, music and video feeds have ararivedhave ararived

► Do not confuse this future m-commerce with the poor WAP format Do not confuse this future m-commerce with the poor WAP format (Wireless Application Protocol)(Wireless Application Protocol)

► Bluetooth wireless technology and other wireless technologies has Bluetooth wireless technology and other wireless technologies has revolutionised personal connectivity with various devices and systems revolutionised personal connectivity with various devices and systems (although Bluetooth currently has a limited 10 to 30 metre range)(although Bluetooth currently has a limited 10 to 30 metre range)


► In order to support future m-commerce applications a new In order to support future m-commerce applications a new generation network is needed. General Packet Radio generation network is needed. General Packet Radio Service (GPRS) will replace today's circuit switching Service (GPRS) will replace today's circuit switching technology enabling continuous connection to data technology enabling continuous connection to data networks, information and entertainment servicesnetworks, information and entertainment services

► GPRS enables multimedia messaging, imaging and GPRS enables multimedia messaging, imaging and browsing and will enable migration to enhanced data for browsing and will enable migration to enhanced data for GSM evolutionGSM evolution

► The much talked-about 3G networks will enable The much talked-about 3G networks will enable convergence of content, Internet and telecommunications, convergence of content, Internet and telecommunications, delivering media rich content (including audio and video)delivering media rich content (including audio and video)


► The key drivers for mobile commerce service adoption will The key drivers for mobile commerce service adoption will be be ease of useease of use and and securitysecurity

► Too complex and time-consuming applications and Too complex and time-consuming applications and services will discourage consumers from going mobileservices will discourage consumers from going mobile

► The challenge is to implement a secure payment system The challenge is to implement a secure payment system that is convenient and simple to usethat is convenient and simple to use

► Winning the trust of consumers will take time given e-Winning the trust of consumers will take time given e-commerce security scares from time to timecommerce security scares from time to time

► Fast wireless internet access hotspots appearing at railway Fast wireless internet access hotspots appearing at railway stations, coffee shops, airports, motorway service stations stations, coffee shops, airports, motorway service stations and other public placesand other public places


M-commerce characteristicsM-commerce characteristics

► MobilityMobility (based on users carrying a cell phone or mobile device (based on users carrying a cell phone or mobile device everywhere they go, so users can initiate a contact with commercial everywhere they go, so users can initiate a contact with commercial and other systems whenever they feel a need to do so)and other systems whenever they feel a need to do so)

► Broad accessibilityBroad accessibility (people can be reached at any time, breaking (people can be reached at any time, breaking geographic and time barriers)geographic and time barriers)

► UbiquityUbiquity (availability of smartphones, Blackberrys and personal digital (availability of smartphones, Blackberrys and personal digital assistant (PDA) fulfills needs for real-time information and assistant (PDA) fulfills needs for real-time information and communication anywhere independent of user’s location)communication anywhere independent of user’s location)

► ConvenienceConvenience (stored data always at hand and increasingly easy to (stored data always at hand and increasingly easy to use, enabling connection to the Internet, intranets and databases)use, enabling connection to the Internet, intranets and databases)

► Localisation of products and servicesLocalisation of products and services - when a Global Positioning - when a Global Positioning System (GPS) is attached to a wireless device, precise location System (GPS) is attached to a wireless device, precise location information is known. When the mobile operator knows the user’s information is known. When the mobile operator knows the user’s location then localisation of services can be arrangedlocation then localisation of services can be arranged


► Privacy is an issue. Phones will soon be able to “sense” Privacy is an issue. Phones will soon be able to “sense” where the user is and offer customised information relevant where the user is and offer customised information relevant to that location (e.g. location of the nearest ATM or fast to that location (e.g. location of the nearest ATM or fast food outlet)food outlet)

► There is potential for misuse of this personal data such as There is potential for misuse of this personal data such as bombarding users with adverts for their local restaurantbombarding users with adverts for their local restaurant

► M-commerce may offer a way of avoiding queue waiting or M-commerce may offer a way of avoiding queue waiting or carrying cash as well as gaining greater control over carrying cash as well as gaining greater control over expendituresexpenditures


► Consumers want simplicity:Consumers want simplicity:► Ring the car parking machine, parking ticket emerges, Ring the car parking machine, parking ticket emerges,

£1.80 debited to your mobile bill£1.80 debited to your mobile bill► What you currently get is:What you currently get is:

Complications, open this accountComplications, open this account RegisterRegister Remember passwordsRemember passwords Must have a credit cardMust have a credit card Multiple key strokesMultiple key strokes


► Identity management is crucialIdentity management is crucial► Currently we have to remember countless PINs, Currently we have to remember countless PINs,

passwords, usernames and pass codespasswords, usernames and pass codes► If we can log on to any service using a phone, punching in If we can log on to any service using a phone, punching in

the same PIN or thumb print each time, then take-up of the same PIN or thumb print each time, then take-up of services will increase rapidlyservices will increase rapidly

► Once authenticated, we could browse services with Once authenticated, we could browse services with operators passing on a standard digital identity (a mobile operators passing on a standard digital identity (a mobile passport)passport)


Financial ApplicationsFinancial ApplicationsStockbrokingStockbroking► Time sensitive alerts and notifications based on pre-Time sensitive alerts and notifications based on pre-

defined factors such as price movementsdefined factors such as price movements► Real-time personalised news headlinesReal-time personalised news headlines► Instant advisory servicesInstant advisory services► Portfolio managementPortfolio management► Quote checksQuote checks► Buying and selling stockBuying and selling stock► Security by SmartTrust technology based on Public Key Security by SmartTrust technology based on Public Key

Infrastructure using digital signaturesInfrastructure using digital signatures


Banking servicesBanking services► Basic services include the same functions as fixed Internet banking Basic services include the same functions as fixed Internet banking

servicesservices► Advanced services are designed specifically for mobile users offering Advanced services are designed specifically for mobile users offering

location-independent and time sensitive instant messages and location-independent and time sensitive instant messages and integration with mobile shopping servicesintegration with mobile shopping services

► Advanced servicesAdvanced services Automatic balance notification according to predefined limitsAutomatic balance notification according to predefined limits Credit line notificationsCredit line notifications Downloadable exchange rate calculatorDownloadable exchange rate calculator Instant credit agreementsInstant credit agreements Direct integration between mobile merchants and banking servicesDirect integration between mobile merchants and banking services


Mobile Payment SystemsMobile Payment Systems► Three players – mobile operators, financial institutions and Three players – mobile operators, financial institutions and

device manufacturersdevice manufacturers► Mobile operators would like to become middlemen Mobile operators would like to become middlemen

collecting a small cut for providing security and debt collecting a small cut for providing security and debt recoveryrecovery

► Financial institutions see mobile payments as their core Financial institutions see mobile payments as their core business since they provide credit and payment systemsbusiness since they provide credit and payment systems

► Device manufacturers are concerned about the threat of Device manufacturers are concerned about the threat of slow development of payment methods that slows down slow development of payment methods that slows down demand for mobile phonesdemand for mobile phones


► Micro paymentsMicro payments (user calls a certain number where per (user calls a certain number where per minute charges equal the cost of the purchased item or call minute charges equal the cost of the purchased item or call the number with a prefix)the number with a prefix)

► M-wallet designed to offer single-click payment M-wallet designed to offer single-click payment mechanisms to wireless application providers, portals and mechanisms to wireless application providers, portals and e-merchants, and they in turn provide for their customerse-merchants, and they in turn provide for their customers

► The m-Wallet stores all a customer’s key information The m-Wallet stores all a customer’s key information including PIN (personal identification number), multiple including PIN (personal identification number), multiple credit card details and multiple billing and shipping credit card details and multiple billing and shipping addresses (at the choice of the customer)addresses (at the choice of the customer)

► Enables users to make transactions via smart phonesEnables users to make transactions via smart phones


Smart CardsSmart Cards

► Mobile consumers are already using a variety of smart Mobile consumers are already using a variety of smart cardscards

► UsedUsed for buying groceries to movie ticketsfor buying groceries to movie tickets► Easy to securely store information for mobile banking, Easy to securely store information for mobile banking,

transport, health care and corporate network securitytransport, health care and corporate network security► Will challenge existing business models especially in Will challenge existing business models especially in

retailingretailing


ShoppingShopping

► Mobiles are generally used quickly when additional Mobiles are generally used quickly when additional information is not needed (suited to impulse buying)information is not needed (suited to impulse buying)

► The transaction must therefore be easy and user friendlyThe transaction must therefore be easy and user friendly► The time for the shopping process needs to be consideredThe time for the shopping process needs to be considered► What information does the customer need to key in?What information does the customer need to key in?► The length of product descriptions and graphicsThe length of product descriptions and graphics► Retailers experimenting with secure server storage of Retailers experimenting with secure server storage of

mobile customer detailsmobile customer details


AdvertisingAdvertising

► Around 1.5 billion mobile subscribers worldwide and growingAround 1.5 billion mobile subscribers worldwide and growing► Enormous opportunities for targeted and personalised one-to-one Enormous opportunities for targeted and personalised one-to-one

advertisingadvertising► To stop bombardment of offers consumers may be able to specify To stop bombardment of offers consumers may be able to specify

preferences for certain product categories, certain stores and brands – preferences for certain product categories, certain stores and brands – so an offer from a preferred store with preferred product category for so an offer from a preferred store with preferred product category for sale has the highest prioritysale has the highest priority

► ““Peoples” a mobile operator in Hong Kong has launched the mSpot Peoples” a mobile operator in Hong Kong has launched the mSpot service that uses location-based advertising in return for subsidising service that uses location-based advertising in return for subsidising free callsfree calls

► Estimated some 37 billion adverts and alerts are sent to European Estimated some 37 billion adverts and alerts are sent to European mobile devices, and 65% of users are prepared to accept thesemobile devices, and 65% of users are prepared to accept these


Individual Consumer ServicesIndividual Consumer Services

► Short messageShort message (SMS) and (SMS) and multimedia message servicesmultimedia message services (MMS) – (MMS) – SMS existed since 1991SMS existed since 1991

► News and informationNews and information - pull applications where the user asks for - pull applications where the user asks for information by sending a keyword or message; push applications news information by sending a keyword or message; push applications news sent to subscribers automatically according to pre-configured settingssent to subscribers automatically according to pre-configured settings

► Ticketing and reservationsTicketing and reservations – one of the first applications as the – one of the first applications as the purchasing process is straightforward and only small amounts of purchasing process is straightforward and only small amounts of information transferredinformation transferred

► TicketmasterTicketmaster offers sports, concert, theatre and other tickets via a fixed offers sports, concert, theatre and other tickets via a fixed Internet interface but a wireless service “Local Intelligence” is available Internet interface but a wireless service “Local Intelligence” is available in 32 metropolitan areas short messaging to a variety of mobile in 32 metropolitan areas short messaging to a variety of mobile devices. More advanced personalised profiles and reminders have devices. More advanced personalised profiles and reminders have been introduced. Revenue generated from ticket surcharges, been introduced. Revenue generated from ticket surcharges, sponsorship and advertisingsponsorship and advertising


► Hotel, restaurant, taxis and car rental – the ability to search for these Hotel, restaurant, taxis and car rental – the ability to search for these services on the move and make reservationsservices on the move and make reservations

► Hotelguide provides a mobile version of Hotelguide.com; through a Hotelguide provides a mobile version of Hotelguide.com; through a mobile device users can search for information of more than 60,000 mobile device users can search for information of more than 60,000 hotels around the world (users type in hotel preference and city, can hotels around the world (users type in hotel preference and city, can choose links to more information about a hotel such as prices, contact, choose links to more information about a hotel such as prices, contact, location, etc. and can make a reservation by calling)location, etc. and can make a reservation by calling)

► Bluetooth-enabled mobiles can be instantly recognised when Bluetooth-enabled mobiles can be instantly recognised when interacting with the reserved hotel system; after confirming the guest is interacting with the reserved hotel system; after confirming the guest is properly registered the guest can use a password to open the room properly registered the guest can use a password to open the room door, checkout, buy from vending machines, mini bars, pay the bill and door, checkout, buy from vending machines, mini bars, pay the bill and get loyalty pointsget loyalty points


► Betting and gamblingBetting and gambling – time sensitive, suitable for large – time sensitive, suitable for large target groupstarget groups

► Participants can offer bets in the middle of sports games Participants can offer bets in the middle of sports games and races but whether networks could handle sudden and races but whether networks could handle sudden increases of demand (say just before a free kick in a increases of demand (say just before a free kick in a football match) is debateable football match) is debateable

► Mobile entertainmentMobile entertainment Ringing tones and icons to customise devicesRinging tones and icons to customise devices Mobile music, pay as you listenMobile music, pay as you listen Mobile imaging and videoMobile imaging and video Mobile gamesMobile games Mobile electronic petsMobile electronic pets


TelematicsTelematics► Wireless data and voice systems for vehicles normally combined with Wireless data and voice systems for vehicles normally combined with

Global Positioning SystemsGlobal Positioning Systems► Applications include:Applications include:

Roadside assistanceRoadside assistance Emergency services such as automatic airbag notificationEmergency services such as automatic airbag notification Remote engine diagnosticsRemote engine diagnostics Location-based navigation and mapsLocation-based navigation and maps M-commerce applications such as traffic reports and ticket reservationsM-commerce applications such as traffic reports and ticket reservations Stolen car trackingStolen car tracking Remote door lock and unlockRemote door lock and unlock Concierge servicesConcierge services Services linked to voice recognition technologyServices linked to voice recognition technology

m-commerce: an example of interactive media developments gary akehurst

Documents

commerce ecommerce

commerce applications

electronic commerce

mobile internet

parking meters mobile

digital mobile networks

video slide

ticketing transactions