Sharif University of Tech Kissing the Cell Phone! M-Commerce & it’s Business Models By: Ali Chekah...
-
Upload
gyles-goodwin -
Category
Documents
-
view
219 -
download
2
Transcript of Sharif University of Tech Kissing the Cell Phone! M-Commerce & it’s Business Models By: Ali Chekah...
Sharif University of Tech
Kissing the Cell Phone!
M-Commerce & it’s Business Models
By:Ali Chekah
Narges AghabeigiMohammad Hossein Eftekhari
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 1
Sharif University of Tech
content• Definition• Attributes and Benefits• Drivers• Limitations• Differences in the User Experience• Mobile commerce from the Customer‘s point of view• Mobile commerce from the Provider‘s point of view• Business models• New Possible Roles• Revenue Models for Content Providers
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 2
Sharif University of Tech
Definition
Use of a mobile device to:
Purchase goods
Purchase services
Purchase content
Pay via cell phone post/pre-paid account balance or via a credit/debit card
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 3
Sharif University of Tech
Attributes and benefits
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 4
Sharif University of Tech
drivers
• Exponential growth of consumer interest and adoption of the Internet and e-commerce.
• Tremendous growth in mobile telephony; however, voice has become a commodity and will no longer fuel revenue growth for operators.
• The evolution of the handheld devices incorporating WAP and now GPRS.
• Cost of entry into mobile e-commerce is low for most entrants.
• Cell phones is absolutely a personal device
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 5
Sharif University of Tech
Limitations• Usability Problem
• small size of mobile devices (screens and size, keyboards, etc)• limited storage capacity of devices• hard to browse sites• short battery lifetime
• Technical Limitations• lack of a standardized security protocol• insufficient bandwidth• 3G licenses• transmission and power consumption limitations
– poor reception in tunnels and certain buildings– multipath interference, weather, and terrain problems and distance-limited
connections• WAP Limitations
• Speed• Cost• Accessibility
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 6
Sharif University of Tech
Differences in the User Experience
• Less browsing and more searching• Fewer site visits• One company to own entire experience• Focus is on information rather than
transactions
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 7
Sharif University of Tech
Mobile commerce from the Customer‘s point of view
• The customer wants to access information, goods and services any time and in any place on his mobile device.
• He can use his mobile device to purchase tickets for events or public transport, pay for parking, download content and even order books and CDs.
• He should be offered appropriate payment methods. They can range from secure mobile micropayment to service subscriptions.
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 8
Sharif University of Tech
Mobile commerce from the Provider‘s point of view
• The future development of the mobile telecommunication sector is heading more and more towards value-added services. Analysts forecast that soon half of mobile operators‘ revenue will be earned through mobile commerce.
• Consequently operators as well as third party providers will focus on value-added-services. To enable mobile services, providers with expertise on different sectors will have to cooperate.
• Innovative service scenarios will be needed that meet the customer‘s expectations and business models that satisfy all partners involved.
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 9
Sharif University of Tech
Business Models for m-Commerce
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲
Sharif University of Tech
content• Definition• Attributes and Benefits• Drivers• Limitations• Differences in the User Experience• Mobile commerce from the Customer‘s point of view• Mobile commerce from the Provider‘s point of view
• Business models– Importance of appropriate Business Model– Development Process– Relevant factors for Business Modeling– An Example of Business Model
• New Possible Roles• Revenue Models for Content Providers
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 11
Sharif University of Tech
Business Models for m-Commerce Importance of appropriate Business Models
•Even the most brilliant service will not be commercially successful for the provider if the chosen business model is not appropriate for the service.
•Therefore the presentation put an emphasis on defining criteria for the evaluation of generic m-commerce business models and choosing the right business models for the services mentioned before.
•The approach followed consisted of considering a business model in terms of actors, roles and business relations such as information, product, service and revenue flows.
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 12
Sharif University of Tech
Business Models for m-Commerce Development Process for new Products and
Services
No Yes
NoYes
Market Pull
TechnologyPush
Business modellingConcept definition ofthe product/service
Business analysis
Marketing plan
Definition and use of market analysis
Business plan
StopSustainableok?
Sustainableok?
Market analysis(interest, sustainability,
competition, competitive advantage)
Service developmentand investment
analysis
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 13
Sharif University of Tech
Business Models for m-Commerce Relevant factors for business modelling
• The following core issues for business models were identified and defined:
• the concept for a new mobile commerce service• the positioning of the mobile operator taking into account its
strategic advantages• the target market, in terms of market segment and corresponding
potential• the relationship with other strategic business partners.
• We will start by looking at the position business modelling takes in the development process for new products and services.
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 14
Sharif University of Tech
An example of a Business Model for m-Commerce : Mobile Gambling - Usage scenario
•Betting is always time sensitive, people always want to bet just before the match or race begins. Therefore the application has to allow quick and easy usage.
•Users could send their bets and check their status using text-based technologies like SMS or WAP.
•The application could be downloaded from the provider’s server to the user’s mobile or run from where it is hosted.
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 15
Sharif University of Tech
An example of a Business Model for m-Commerce :Mobile Gambling - Payment method
•The timing of payment is important because for a bet to be valid the player should make a commitment to pay that he cannot repudiate afterwards. The payment method will have to be quick and easy.
•Possible options for payment are•mobile micropayment. •subscription to the service and creation of a gambler’s account (prepaid or postpaid option).
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 16
Sharif University of Tech
Mobile commerce platform
Mobile Payment Service Mobile Micropayment
Content Billing
Advertising
Location Based Services
Customer:mobiledevices
MobileGateway
Micropayment
Public Key Infrastructure
Application Repository
Merchant:Point of Sale
Financial Institution
2. Upload application and credentials
2. Sign purchase order
3. Return signed purchase order
1. Send purchase order
Payment and clearing
1. Provide Customer‘s keys and certificate
Application and credential upload
4. Check signature
1. Registration process
Customer registration
a) Send collected purchase orders regularly
c) Clearing
b) Check purchase orders
2. Certification request
3. Create key pair and certificate
Sharif University of Tech
An example of a Business Model for m-Commerce Mobile Gambling - Mobile operators
and value chain•The operator should try to position himself in a key role in the value chain by providing the portal and participating in the revenues accrued by gambling services over its network.
•Those revenues will be significantly higher than the sheer increase in airtime charges.
•In order to achieve this a mobile operator should exploit its strengths (brand name, customer base, infrastructure, price control, etc.) effectively.
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 18
Sharif University of Tech
An example of a Business Model for m-Commerce Mobile Gambling – Players and
Alliances•Players•The main players that could participate in the gambling value chain are:• the User, who decides about the bets • the Application Service Provider (ASP) providing the offers• the Internet Service Provider (ISP) providing web access• the Payment Service Provider (PSP) supporting the financial transactions and • the Mobile Operator that provides the network as well as the portal.•Alliances•The most promising scenario for mobile operators rests on his taking a key role in appropriate partnerships and business alliances, which are based on revenue sharing.
19
Sharif University of Tech
An example of a Business Model for m-Commerce Mobile Gambling – Revenue Flow
UserPayment Service
Provider / Clearing House
Payment for service
Payment
Application Service Provider
Payment- For distribution
- For Access to the mobile channel
Payment- Once-off - For usage- Revenue sharing
Direct SubscriptionContent Payment
Internet Service Provider
Yearly / Monthly Fee (Subscription)
Operator
Pays for Access to Users
Portal
Operator Domain(may act as a portal)
Payment
Payment
Payment
Payment
Payment- Airtime- subscription- premium charge- access to content
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 20
Sharif University of Tech
content• Definition• Attributes and Benefits• Drivers• Limitations• Differences in the User Experience• Mobile commerce from the Customer‘s point of view• Mobile commerce from the Provider‘s point of view• Business models
• New Possible Roles• Revenue Models for Content Providers
– User fee business model• Subscription fee and/or usage fees
– Shopping business model– Improved efficiency business model– Advertising business model– Revenue Sharing
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 21
Sharif University of Tech
New Possible Roles• Mobile ISP: email and Internet access• Content Provider: Leverage control of the first screen
– Subscription fees, advertising, etc.
• Mobile Portal: one-stop solution– Messaging, PIM, personalization provider– Subscription fees, advertising, etc.
• Mobile Location Broker– Through partnership with location-based services
• Mobile Payment and Billing Provider• etc.
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 22
Sharif University of Tech
Revenue Models for Content Providers
• User fee business model– Subscription fee and/or usage fees
• Shopping business model• Improved efficiency business model• Advertising business model• Revenue Sharing• …These models are often combined
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 23
Sharif University of Tech
User Fee Business Model
• Often involves 3rd party billing provider• Two variations:
– Subscription fees – easier to collect– Per-use fee
Content Provider
3rd Party Billing Provider
Mobile UserMobile Content
User Fee (monthly subscription or actual usage fee)
Percentage of User Fee
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 24
Sharif University of Tech
E-Tailing Business Model
• Another distribution channel• Likely to work well for some categories of services and products
– Movie tickets, flowers, last minute travel reservations– Impulse buying
• New scenarios: location-based comparison shopping, dial-a-coke, location-based delivery (e.g. pizza, taxi)
Mobile e-Tailer
Mobile Content
Mobile Shopper
Payment
Product/Service
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 25
Sharif University of Tech
Improved Efficiency Model
• Customer convenience & lower costs• Examples: mobile banking, trading, ticketing
– Nordea: WAP Solo– Daiwa: By late 2000, 20% of all online trades– Airlines, movie theaters, public transportation
Mobile User &
Core Business Customer
Mobile Service/ContentContent Provider
Mobile InternetBusiness
Traditional Business
LowerOperating Costs
Service Usage/Transactions(possibly including payment)
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 26
Sharif University of Tech
Advertising Business Model
• Challenge: Small screen, privacy, user tolerance• Opportunities:
– Mobile– Personalized– …Small Screen…
Mobile User
Mobile Service/Content incl. Promotional Info
Advertiser
Content Provider
Product/Service
Payment
AdvertisingFee
Promotional Info
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 27
Sharif University of Tech
Mobile Advertising• Flat fee
– e.g. go2.com
• Traffic-based fee– CPM: cost per thousand ad impressions
• Performance-based fee– e.g. click-throughs, call-throughs, commission on sale
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 28
Sharif University of Tech
Revenue Sharing Business Model
• Quite common, given the control of the customer by mobile operator
• Complexity of the value chain– Positioning, authentication, billing
• WASP model, e.g. Webraska, BlueFactory, etc.
Mobile User
Value-AddedMobileContent
ContentOwner
MobileContent Provider
Content
PaymentShare ofRevenue
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 29
Sharif University of Tech
references• “M-Commerce , Technologies, Services, and Business Models”, by
Norman M. Sadeh, Wiley, 2002• “Service Scenarios and Business Models for m-Commerce“, Elisabeth Felt,
Britta Reufenheuser ,IST Mobile Summit 2002, Thessaloniki, Greece,2002• “An Introduction to e-Commerce,a Managerial Perspective“,
Turban,Prentice Hall , 2006• „ www.elsevier.com „ , 2006• „ www.nokia.com „ nokia reports, 20/5/2006• http://www.epaymentsnews.com
/ /۲۰۲۳ ۰۴ ۱۹ :۰۶ ۵۲ 30
۱۹ررر تیر۲۰۲۳ Sharif University of Tech 31