slide 12.1 tawfik jelassi and albrecht enders, strategies for e-business, 2 nd edition, © pearson...
TRANSCRIPT
Slide 12.1
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
Chapter 12: Moving from wired e-commerce to mobile e-commerce
After this session you should be able to:
Define mobile e-commerce and outline the key components of the mobile value network
Recognise mobile e-commerce applications and be able to categorise them
Depict the advantages of mobile e-commerce over wired e-commerce
Understand how wireless technologies affect the value chain and influence the industry’s five forces.
Slide 12.2
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
Application developer/provider
Infrastructureequipment
vendor
Provider of enabling
technologies
Portal provider
Mobiledevice
manufacturer
Content provider
Mobile networkoperator
Service area Application area Technology area
End C
onsumers
Source: Adapted from F. Müller-Veerse et al. (2001), p. 23.
Exhibit 12.1 The mobile e-commerce value network outlines the key players
Slide 12.3
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
Information News
Weather
Catalogues
...
Communication m-Advertising
m-Health
SMS/MMS
…
Entertainment m-Games
m-Gambling
m-Music
...
Transaction m-Banking
m-Tailing
m-Payment
...
Source: Adapted from F. Müller-Veerse et al. (2001), p. 80.
Exhibit 12.2 m-Commerce consumer services and applications
Slide 12.4
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
M-SCM
m-Inventory m-Tracking ...
M-CRM
m-Services m-Sales ...
m-Workforce m-Office m-Fleet tracking ...In
tern
alE
xter
nal
Source: Adapted from F. Müller-Veerse et al. (2001), p. 80.
Exhibit 12.3 m-Commerce business services and applications
Slide 12.5
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
Characteristics of mobile e-commerce
Ubiquity
Convenience
Localisation
Personalisation
Mobile content is inferior to other media in terms of screen size and downloading speed. However, it is superior to other media in terms of convenience and ease of use.
Personalisation in mobile is higher than in wired e-commerce. When calling a mobile phone, users call the number of a person and not the number of a location as in the case of a fixed-line phone.
Localisation of devices and their users is based on the portability of wireless devices and the knowledge about a person’s location. It enables location-based services.
This characteristic means that users are able to use their device at any time and in any location. Ubiquity increases the immediacy of communication and is equally valued in consumer and business markets.
Source: See also D. Steinbock (2005).
Privacy and security
Device and network limitations
Privacy and security are decisive prerequisites for all wireless transactions. Users need to be in control of their data, especially if it comprises information about their geographical location.
Due to slow transfer rates, limited connectivity, small screens and tiny keyboards of the handset, a user’s wireless Internet experience can be very restricted.
Slide 12.6
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
Mobile customer relationship managementMobile supply chain management
Firm Infrastructure• Mobile financial and ERP systems, incl. legal and government information• Mobile investor relations (e.g. information dissemination, broadcast conference calls, alerts)• Voice-to-data conversions: mobile forms-based applications, multimedia cellular and wireless broadcast• Mobile services: rich voice (image, video), Internet (intra/extranet), messaging (SMS, MMS, LBS) and content• Mobile access to e-mails, personal information management
Human resource management• Mobile activities in recruiting, hiring, training, development and compensation • Mobile self-service personnel and benefits administration, incl. mobile time and expense reporting• Mobile sharing and dissemination of company information• Mobile services via HRM: voice guidance, messaging (SMS, MMS, LBS push or pull), internet and infotainment
Technology development• Mobile teams, distributed collaborative product design across locations and among multiple value-system participants• Knowledge directories accessible from any location• Real-time access by R&D to mobile sales and service information
Procurement• Mobile demand planning and fulfilment• Other mobile linkage of purchase, inventory, and forecasting systems with suppliers and/or buyers• Mobile direct and indirect procurement via marketplaces, exchanges, auctions, and buyer/seller matching
Exhibit 12.4 Impact of wireless technologies on the value chain
Source: Adapted from Dan Steinbock (2005), p. 260.
Slide 12.7
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
Mobile customer relationship managementMobile supply chain management
Inbound LogisticsMobile activities in receiving, storing and disseminating inputs to products/services
• Mobile scheduling, shipping, warehouse/demand management and planning and scheduling across the company and its suppliers
• Mobile distribution across the company of real-time inbound and in-progress inventory data
OperationsMobile activities associated with transforming inputs into final products/services
• Mobile information exchange, scheduling and decision making in in-house plants, contract assemblers, and components suppliers
• Mobile available-to-promise information to sales force and channels
Outbound LogisticsMobile activities associated with collecting, storing and distributing products/services to buyers
• Mobile order processing and scheduling
• Mobile delivery vehicle operation
• Mobile customer/channel access to product development and distribution status
• Mobile channel management, incl. information exchange, warranty claims, contract management (versioning, process control)
Marketing and salesMobile activities with means for buyers to purchase products/ services and inducing them to do so, incl. advertising, promotion, sales force, channels, pricing
• Mobile sales channels, e.g. websites, marketplaces
• Mobile access to customer information, product catalogues, order entry
• Mobile product/service configurators
• Mobile push/pull advertising
• Mobile surveys, opt-in/opt-out marketing, and promotion response tracking
After-sales serviceMobile activities associated with providing service to enhance or maintain the value of product/services
• Mobile support of customer service reps (incl. voice guidance, SMS, MMS, LBS, e-mail, billing, co-browse, chat, VoIP, video streaming)
• Mobile customer self-service via portals and mobile service request processing, billing, shipping etc.
• Mobile field service access to customer account review
Exhibit 12.4 Impact of wireless technologies on the value chain (Continued)
Source: Adapted from Dan Steinbock (2005), p. 260.
Slide 12.8
Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008
Rivalry among existing competitors
Bargaining power of suppliers
Bargaining power of channels and end users
Threat of substitute products or services
Barriers toentry
(+) Increases barriers to entry by eliminating waste and contributing to efficiencies(+/–) Mobile applications are difficult to keep proprietary from new entrants, but consolidation favours incumbents(–) A flood of new entrants has come into many new industries
(+) Complements (–) Shifts powerful bargaining channels and power to can improve end consumers bargaining (+/–) Increases/decreases power over switching traditional costs channels
(–/+) Reduces differences among competitors as offerings are difficult to keep proprietary, but increases the potential for efficiencies(–/+) Migrates competition to price, but can increase potential for differentiation(–) Widens the geographic market, increasing the number of competitors(–) Lowers variable cost relative to fixed cost, increasing pressure for price discounting
(+/–) Procurement using mobility tends to raise bargaining power over suppliers (e.g. Wal-mart and RFID), though it can also give suppliers access to more customers(+/–) Mobility provides a channel for suppliers to reach end users, reducing the leverage of intervening companies, but it may also provide a direct channel to industry rivals and thus dis- intermediate channels(+/–) Mobile procurement and mobile markets tend to give all companies equal access to suppliers, but they can also be used to create privileged access to some firms(+/–) Mobility can gravitate procurement to standardised products that reduce differentiation, but it can also be deployed to diversify products/services, which increases differentiation
(+) By making the overall industry more efficient, Mobility can expand the size of the market(+) The proliferation of mobility approaches creates complementary opportunities, rather than substitution threats
Impact of wireless technologies on the industry’s five forces
Source: Adapted from Dan Steinbock (2005), p. 266.