mobile commerce in india issues and strategies - dr.sumesh raizada from jims rohini sector 5

8/7/2019 Mobile Commerce in India Issues and Strategies - Dr.sumesh Raizada From JIMS Rohini Sector 5

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Mobile Commerce in IndiaMobile Commerce in India Issues and StrategiesIssues and Strategies

Dr.Dr. SumeshSumesh RaizadaRaizadaPh.DPh.D, MBA, B.E.(Electrical), MBA, B.E.(Electrical)

JIMSJIMS JaganJagan Institute of Management Studies,Institute of Management Studies,RohiniRohini, Delhi, Delhi


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ScopeScope

--

various applicationsvarious applications

It shall look into the issues that impede the growth of MIt shall look into the issues that impede the growth of M--commercecommerceand shall su est suitable remedial measuresand shall su est suitable remedial measures

It shall conclude by suggesting strategies for successfulIt shall conclude by suggesting strategies for successfulimplementation of Mimplementation of M--commerce in Indiacommerce in India

Dr.Sumesh Raizada


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BackgroundBackground

Mobile or MMobile or M--commerce as is popularly called relates to thecommerce as is popularly called relates to thecommercial transactions through mobile equipment such as cellcommercial transactions through mobile equipment such as cellp one or persona g ta ass stantp one or persona g ta ass stant

his handsets, such as booking travel or cinema tickets, remittance,his handsets, such as booking travel or cinema tickets, remittance,

getting traffic updates or trading stocksgetting traffic updates or trading stocks

With phenomenal growth of mobile communication in India, MWith phenomenal growth of mobile communication in India, M--

--

Telecom and IT firms are nowada s develo in innovative mobileTelecom and IT firms are nowada s develo in innovative mobile

applications in order to capture the higher market shareapplications in order to capture the higher market share

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MM--Commerce ApplicationsCommerce Applications

Source : www.eSource : www.e--zest.net/j2me.htmlzest.net/j2me.htmlDr.Sumesh Raizada


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Applications of MApplications of M--commercecommerce

a)a) Mobile TicketingMobile TicketingAir or train tickets, Cinema tickets, Check in at the airports/Air or train tickets, Cinema tickets, Check in at the airports/ParkingParking

b)b) Mobile vouchers, coupons and loyalty cardsMobile vouchers, coupons and loyalty cardsouc ers, coupons or oya y car s, roug a v r ua o en sen oouc ers, coupons or oya y car s, roug a v r ua o en sen o

the mobile phone for availing discounts or concessions at the pointthe mobile phone for availing discounts or concessions at the point

of saleof sale

c)c) Content purchase and deliveryContent purchase and delivery

Picture, music, ames, rinPicture, music, ames, rin --tones or even movies download, overtones or even movies download, overthe mobile phonesthe mobile phones

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Location specific services such as traffic directions, local maps,Location specific services such as traffic directions, local maps,essential utilities, local weather updates, directory services, etc.essential utilities, local weather updates, directory services, etc.

e)e) Information servicesInformation services

Updated news, stock quotes, sports results, financial data, etc.Updated news, stock quotes, sports results, financial data, etc.

A travel route map may also be provided to the user on his mobile.A travel route map may also be provided to the user on his mobile.

f)f) Mobile bankingMobile banking

Customers ma access their res ective accounts or conductCustomers ma access their res ective accounts or conducttransactions such as money transfers, bill payment, etc. throughtransactions such as money transfers, bill payment, etc. throughmobilemobile

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Mobile brokera eMobile brokera e

Latest updates on the stock movement, buying and selling tips onLatest updates on the stock movement, buying and selling tips onvarious stocks, online tradingvarious stocks, online trading

h)h) Auctions / opinion pollAuctions / opinion pollLowLow--bid auction by the consumer to telemarketing schemes,bid auction by the consumer to telemarketing schemes,ottery or on ine games, opinion po s or te evision s ows, etc.ottery or on ine games, opinion po s or te evision s ows, etc.

ii Mobile urchaseMobile urchase

Online shopping through any location.Online shopping through any location.

,,literature, infrastructure, etc.literature, infrastructure, etc.

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Mobile marketing and advertisingMobile marketing and advertisingMobile communication is used for advertisement and salesMobile communication is used for advertisement and sales

, ,, ,

kk RFID enabled devicesRFID enabled devices

Handheld device helps the user to gather information about theHandheld device helps the user to gather information about the

RFID tagged products in the supermarketsRFID tagged products in the supermarkets

The service providers generally earn revenues on SMS, MMS or onThe service providers generally earn revenues on SMS, MMS or on

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Source: mobpex.com/products.htmlSource: mobpex.com/products.htmlDr.Sumesh Raizada


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Source : http://www.turboerp.com/en/picts/mSource : http://www.turboerp.com/en/picts/m--comm03.jpgcomm03.jpgDr.Sumesh Raizada


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Source jcogroup.com/mcommerceSource jcogroup.com/mcommerceDr.Sumesh Raizada


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http://www.hyperwallet.com/img/hw_mobilehttp://www.hyperwallet.com/img/hw_mobile--remittances.jpgremittances.jpgDr.Sumesh Raizada


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http://sites.google.com/site/b188sjsu/_/rsrc/1245324732824/Home/ebusiness/mobilehttp://sites.google.com/site/b188sjsu/_/rsrc/1245324732824/Home/ebusiness/mobile--commerce/Picture1.jpgcommerce/Picture1.jpgDr.Sumesh Raizada


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Dr.Sumesh Raizada


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The Characteristics of MThe Characteristics of M--CommerceCommerce

a ue e ttr utesa ue e ttr utesaracter st csaracter st cs

MobilityMobility Product and Service LocalizationProduct and Service Localization

MM--CommerceCommerce

Pro uct Persona zat onPro uct Persona zat on

ReachabilityReachability

http://ehttp://e--learning.dmst.aueb.gr/ec/Cases/NTTDocomo/Case/Training_Files/attributes.jpglearning.dmst.aueb.gr/ec/Cases/NTTDocomo/Case/Training_Files/attributes.jpgDr.Sumesh Raizada


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MM--Commerce in IndiaCommerce in India

mmense potent a ormmense potent a or --commerce n n a, espec a y n ruracommerce n n a, espec a y n ruraareas, where large section of population cannot afford the PCs orareas, where large section of population cannot afford the PCs orlaptoplaptop

, , , , ., , , , .transactions through mobile phones thereby saving time, efforts,transactions through mobile phones thereby saving time, efforts,

manpower and costs on stationarymanpower and costs on stationary

Or anizations such as ITC Chou al Drishti etc. are offerinOr anizations such as ITC Chou al Drishti etc. are offerinmobile based information services to the rural customersmobile based information services to the rural customers

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Currentl the VAS market has been contributin at over 10Currentl the VAS market has been contributin at over 10--15 er15 er

cent of the total revenue of mobile telecom service providerscent of the total revenue of mobile telecom service providers

e tota mar et revenue o mo e va ue a e serv ces ate tota mar et revenue o mo e va ue a e serv ces at

$1.6 billion as on March 2009 is expected to grow 30 to 40 per cent$1.6 billion as on March 2009 is expected to grow 30 to 40 per centper yearper year

Mobile market penetration is projected to increase from 38.7Mobile market penetration is projected to increase from 38.7ercent in 2009 to 63.5 ercent in 2013ercent in 2009 to 63.5 ercent in 2013

Average revenue per user may be comparatively lower for ruralAverage revenue per user may be comparatively lower for ruralareas, e a ona su scr er ase s e y o e very gareas, e a ona su scr er ase s e y o e very gconsidering that two third population still live in the rural areasconsidering that two third population still live in the rural areas

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The RBI has increased the daily transaction limits over mobileThe RBI has increased the daily transaction limits over mobilehones to Rs.5,000 and Rs.10,000 for Cash / oods & serviceshones to Rs.5,000 and Rs.10,000 for Cash / oods & services

This has helped the microfinance companies, which are operatingThis has helped the microfinance companies, which are operating

in the rural areas or are providing finances to the small borrowersin the rural areas or are providing finances to the small borrowers

Since over 30 er cent of the new mobile subscri tions areSince over 30 er cent of the new mobile subscri tions areexpected to be from the villages, microfinance borrowers canexpected to be from the villages, microfinance borrowers canreceive loans, make loans repayments and also make bill paymentsreceive loans, make loans repayments and also make bill payments

Dr.Sumesh Raizada


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Kin fisher Airlines rovides information about all the fli hts forKin fisher Airlines rovides information about all the fli hts for

the dates specified, on the mobile phone of the travellersthe dates specified, on the mobile phone of the travellers

estaurants, rocers an eta ers are o er ng custom zeestaurants, rocers an eta ers are o er ng custom ze

services, where customers can place orders on their mobile phonesservices, where customers can place orders on their mobile phonesand receive home deliveriesand receive home deliveries

Reuters is working on a pilot project Reueters Market light forReuters is working on a pilot project Reueters Market light forrovidin commodit rices cro and weather data to Maharashtrarovidin commodit rices cro and weather data to Maharashtrafarmers on their mobile phones at Rs60 a monthfarmers on their mobile phones at Rs60 a month

a ways are wor ng on a p o pro ec o ssu ng unreservea ways are wor ng on a p o pro ec o ssu ng unreservetickets through mobilestickets through mobiles

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Issues and Challenges in Mobile CommerceIssues and Challenges in Mobile Commerce

Wireless handheld devices though light in weight and low in costWireless handheld devices though light in weight and low in costhave smaller screen size and limited input capabilitieshave smaller screen size and limited input capabilities

There is limitation of bandwidth speed and data download capacityThere is limitation of bandwidth speed and data download capacity

in the present mobile communicationin the present mobile communication

PDA devices or mobile phones do not have conventionalPDA devices or mobile phones do not have conventionalkeyboards and have limited display capabilitieskeyboards and have limited display capabilities

The limited life of battery and availability of power supply inThe limited life of battery and availability of power supply inremote areas is another issueremote areas is another issue

The poor network connectivity especially in the rural areas can alsoThe poor network connectivity especially in the rural areas can alsoaffect the data processing or transaction especially when a user isaffect the data processing or transaction especially when a user istravellintravellin

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Limitations of authenticated devices and protocols to operate voiceLimitations of authenticated devices and protocols to operate voicerecognition, password or client verificationrecognition, password or client verification

There are also issues related to formulation and enforcement ofThere are also issues related to formulation and enforcement ofuniform global security standards in mobile commerceuniform global security standards in mobile commerce

Security problems related to data encryption, protection from unSecurity problems related to data encryption, protection from un--aut or ze access, ac ers, v ruses, etc. n nanc a transact onsaut or ze access, ac ers, v ruses, etc. n nanc a transact ons

and radiationsand radiations

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Lega issues re ate to ta ing w i e riving, c ic ing p otograp sLega issues re ate to ta ing w i e riving, c ic ing p otograp sor recording voice messages through mobile without consent ofor recording voice messages through mobile without consent ofothersothers

Network congestions especially in the GSM based phones, canNetwork congestions especially in the GSM based phones, candelay or abort the business transactionsdelay or abort the business transactions

, ,, ,there is challenge of offering language, content or hardware to suitthere is challenge of offering language, content or hardware to suitdifferent demographic segmentsdifferent demographic segments

Dr.Sumesh Raizada

C l i & R d iC l i & R d i


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Conclusions & RecommendationsConclusions & Recommendations

MM--commerce has immense potential in rural areas where peoplecommerce has immense potential in rural areas where peoplehave negligible access to broadband internet, desktop computershave negligible access to broadband internet, desktop computers

Since around fifty percent of the rural or urban poor still dontSince around fifty percent of the rural or urban poor still donthave bank account, mobile banking and microfinance throughhave bank account, mobile banking and microfinance throughmobile provides excellent opportunity for themmobile provides excellent opportunity for them

Firms must develop economical and user friendly products andFirms must develop economical and user friendly products andapplications to suit the lower and middle income group customersapplications to suit the lower and middle income group customers

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Industr overnment and re ulator a encies must arrive atIndustr overnment and re ulator a encies must arrive at

uniform protocols and revenue distribution mechanismuniform protocols and revenue distribution mechanism

or even service and maintenance staff, telecom firms can reduceor even service and maintenance staff, telecom firms can reduce

their costs substantiallytheir costs substantially

There is a need to educate customers on the benefits of MThere is a need to educate customers on the benefits of M--

commerce and regarding their apprehensions related to the securitycommerce and regarding their apprehensions related to the securityof monetar transactions over mobileof monetar transactions over mobile

Since charging of mobile handset is an issue especially in the ruralSince charging of mobile handset is an issue especially in the rural

areas manufacturers must rovide ortable batter char er alonareas manufacturers must rovide ortable batter char er alonwith the phones or explore solar batterieswith the phones or explore solar batteries

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are regularly updated on the new products or are provided usageare regularly updated on the new products or are provided usageand maintenance related assistanceand maintenance related assistance

Banks, telecom or marketing firms while outsourcing their MBanks, telecom or marketing firms while outsourcing their M--

staff are properly trained about the schemes and other offeringsstaff are properly trained about the schemes and other offerings

Government should make it mandatory for the handsetGovernment should make it mandatory for the handsetmanufacturers to buy back the obsolete, unused or damagedmanufacturers to buy back the obsolete, unused or damaged

Dr.Sumesh Raizada

dd


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ompan es s ou n ro uce vo ce recogn on or ome r c sys emompan es s ou n ro uce vo ce recogn on or ome r c sys emfor the authentication of customer, as an additional security andfor the authentication of customer, as an additional security andconfidentiality measureconfidentiality measure

A separate regulatory body must be constituted to safeguard theA separate regulatory body must be constituted to safeguard then eres e mn eres e m--commerce users espec a y e era e or poorcommerce users espec a y e era e or poorconsumersconsumers

3G3G--subscriber base is expected to reach over 540 million in 2010subscriber base is expected to reach over 540 million in 2010

Tariffs of 3G and other value added services needs to be reducedTariffs of 3G and other value added services needs to be reducedto make the Mto make the M--commerce services more attractive to thecommerce services more attractive to theconsumersconsumers

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mobile commerce in india issues and strategies - dr.sumesh raizada from jims rohini sector 5

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