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ASSIGNMENT
INFORMATION TECHNOLOGY FOR
MANAGERS
TOPIC: MOBILE COMMERCE
CLASS : M.B.A I
SECTION : A
GROUP NUMBER : 12
GROUP MEMBERS:
11202057
ROHIT GANTAYAT
11202060
ABHISEK PATRO
11202059
RAJEEV
11202056
PARVEEN RANI
11202058
ANANNYA
CONTENTS :
1
M COMMERCE
Mobile Commerce
History
Characteristics of m-commerce
Differences to E-Commerce
Application of m-commerce
Key actors in mobile commerce
Key issues of m -commerce
Security in m-commerce
Payment mechanisms for utilizing mobile services
Framework of m-commerce
Mobile commerce business model
Conclusion
References
Mobile Commerce
"Mobile Commerce is any transaction, involving the transfer of ownership
or rights to use goods and services, which is initiated and/or completed by using
mobile access to computer-mediated networks with the help of an electronic
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M COMMERCE
device."
Mobile Commerce
M COMMERCE
OF M-COMMERCE :
M COMMERCE
DIFFERENCES TO E-COMMERCE:
M-commerce is characterized by some unique features that equip it with
certain advantages against conventional forms of commercial transactions,
including e-commerce.
Ubiquity:
Ubiquity means that the user can avail services and carry out
transactions largely independent of his current geographic location (the
anywhere feature). This feature can be useful in many situations, e.g. to
cross-check prices while standing in a supermarket or while on the move.
Immediacy:
Closely related to ubiquity is the possibility of real-time
availment of services (the anytime feature). This feature is particularly
attractive for services that are timecritical and demand a fast reaction, e.g.
stock market information for a broker. Additionally, the consumer can buy
goods and services as and when he feels the need. The immediacy of
transaction helps to captureconsumers at the moment of intention so that
sales are not lost in the hiatus between the point of intention and that of
actual purchase.
Localization:
Positioning technologies, such as the Global Positioning
System (GPS), allow companies to offer goods and services to the user
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M COMMERCE
Instant connectivity:
Ever since the introduction of the General Packet Radio
Service (GPRS) mobile devices are constantly online, i.e. in touch with the
network (the always on feature). This feature brings convenience to the
user, as time consuming dial-up or boot processes are not necessary.
Pro-active functionality:
By virtue of its ability to be immediate, local and personal, mcommerce opens new avenues for push-marketing, such as content and
product offers. Services like Opt-in advertising can be offered, so that a
user may choose those products, services and companies that he wants to
bekept informed about. The Short Message Service (SMS) can be used to
send brief text messagesto consumers, informing them of relevant local
offerings that best suit their needs. This feature ensuresthat the right
(relevant) information can be provided to the user at the right place, at the
right time. The user too does not have to fear missing some potentially
crucial information or getting it too late.
Application of m-commerce:
1} Mobile ticketing
Tickets can be sent to mobile phones using a variety of technologies. Users are then
able to use their tickets immediately, by presenting their phones at the venue.
Tickets can be booked and cancelled on the mobile device with the help of simple application
downloads, or by accessing the WAP portals of various travel agents or direct service providers.
M COMMERCE
2} Mobile vouchers, coupons and loyalty cards
Mobile ticketing technology can also be used for the distribution of vouchers,
coupons, and loyalty cards. These items are represented by a virtual token that is sent to the
mobile phone. A customer presenting a mobile phone with one of these tokens at the point of sale
receives the same benefits as if they had the traditional token. Stores may send coupons to
customers using location-based services to determine when the customer is nearby.
3} Content purchase and delivery
Currently, mobile content purchase and delivery mainly consists of the sale of ringtones, wallpapers, and games for mobile phones. The convergence of mobile phones, portable
audio players, and video players into a single device is increasing the purchase and delivery of
full-length music tracks and video. The download speeds available with 4G networks make it
possible to buy a movie on a mobile device in a couple of seconds.
4} Location-based services
The location of the mobile phone user is an important piece of information used during
mobile commerce transactions. Knowing the location of the user allows for location-based
services such
Local weather
5} Information services
News
Stock quotes
Sports scores
Financial records
Traffic reporting
Customized traffic information, based on a user's actual travel patterns, can be sent to a mobile
device. This customized data is more useful than a generic traffic-report broadcast, but was
impractical before the invention of modern mobile devices due to the bandwidth requirements.
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M COMMERCE
6} Mobile banking
Banks and other financial institutions use mobile commerce to allow their customers to
access account information and make transactions, such as purchasing stocks, remitting money.
This service is often referred to as Mobile Banking, or M-Banking.
7} Mobile StoreFront
The reinvention of the mobile phone as a touch sensitive handheld computer has for
the first time made mobile commerce practically feasible. 'According to ABI Research, mobile is
going to get a lot bigger in the ecommerce market. The research firm is predicting that in 2015,
$119bn worth of goods and services will be purchased via a mobile phone.'
8} Mobile brokerage
Stock market services offered via mobile devices have also become more popular
and are known as Mobile Brokerage. They allow the subscriber to react to market developments
in a timely fashion and irrespective of their physical location.
9} Auctions
Over the past three year mobile reverse auction solutions have grown in
popularity Unlike traditional auctions, the reverse auction (or low-bid auction) bills the
consumer's phone each time they place a bid. Many mobile SMS commerce solutions rely on a
one-time purchase or one-time subscription; however, reverse auctions offer a high return for the
mobile vendor as they require the consumer to make multiple transactions over a long period of
time.
.
M COMMERCE
Evolution:
Technology and Business models are constantly evolving
which will demand flexibility and patience on part of all players.
Customer loyalty:
Who will own the customer? Partnerships among
players from various industries will be necessary for most, if not all, mcommerce initiatives, and, in turn, will alter the nature of any one company
to own their own customers.
M COMMERCE
Security in m-commerce:
Mobile applications will differ from standard e{commerce
applications, because the underlying technology has fundamental diferences:
Limitations of Client Devices.
Location{Aware Devices.
When the user is mobile, the infrastructure canpotentially be aware of the
location of the user (e.g., in a particular telephonecell). This knowledge introduces a
wide range of applications which have no analogue in the stationary user model
M COMMERCE
Mobile payment:
This term refers to payments that are made via mobile hand-held devices in order
to purchasegoods and services. Mobile payment services usually act as an intermediary
between consumer and vendor.Prominent examples of such services are Mobile Wallet, a
service by T-Mobile, and the m-pay of Vodafone. It is a hybrid form of payment that combines
elements from other methods of payment, e.g. credit cards, prepaid cards,invoicing and
telephone bills.Both, the customer and the vendor get themselves registered with the payment
service. Eachsubscriber gets an individual PIN to authenticate himself via WAP or SMS, in order
to makepayments for his purchases. The advantage to the subscriber lies in the fact that he
does not need to get himselfregistered with each individual vendor.
framework of m-commerce:
M-commerce, like e-commerce, requires transparent and clear regulations
as the contracting parties do notnecessarily know each other and there is hardly, if any, face-toface contact while negotiating an agreement. This anonymity makes many potential customers
suspicious of electronic transactions.Their worry about the privacy and safety of personal data
(e.g. credit card information) and its potential misuse is well-known. The contracting parties
should therefore be able to count upon the law, where required, to enforce the provisions of
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M COMMERCE
contracts concluded using mobile electronic devices.Further, the customer should be able to
trust that his personal privacy is always maintained.A clearly defined regulatory framework is
hence indispensable to boost consumer confidence and to increase acceptance amongst broad
sections of the society as well as to ensure smooth functioning of m-commerce. Being a
relatively new phenomenon, however,it has not yet attracted the attention of lawmakers in most
countries as an independent business field. Its transactions are usually governed by ecommerce regulations, supplemented by telecommunication lawsMobile commerce (mcommerce) refers to an ability to conduct wireless commerce transactions using
mobile applications in mobile devices. M-commerce applications can range from as
simple as an address book synchronization to as complicated as credit card
transactions. M-commerce is expected to grow dramatically in the near future
supporting simple to complex commerce transactions. Even though the Wireless
Application Protocol (WAP) is designed to facilitate the development of wireless
applications, it will not be sufficient to handle complex business transactions that
require cooperation of different service applications. In order to handle these
complex mobile commerce transactions efficiently, an intelligent, robust and
scalable framework that provides diverse m-commerce services is required.
M COMMERCE
There is a close cooperation between the mobile device manufacturer and the
chip/processor
manufacturer. Although a small number of mobile terminal manufacturers have
their own chip/processomanufacturing facilities, most have to work with external
chip/processor manufacturers; therefore, thechip/processor manufacturer is an
important party for cooperation in development. The mobile device OS(Operating
System) is dominated by three major stakeholders: Symbian, Microsoft and Linux.
The OSchosen has to match well with the requirements of the mobile device, such
as display format managementand battery management issues.
CONCLUSION:
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M COMMERCE
As m-commerce applications and wireless devices are evolving rapidly, one
will take forward the other one towards empowering innovation, versatility and
power in them. There are a number of business opportunities and grand challenges
of bringing forth viable and robust wireless technologies ahead for fully realizing the
enormous strength of m-commerce in this Internet era and thereby meeting both
the basic requirements and advanced expectations of mobile users and providers.
There are news articles and pictures displaying people, who are ordering things
over the Internet while waiting for a bus, downloading merchant coupons on their
PDAs as they enter a store or bidding for the last table at a hot restaurant by digital
phone in a spur-of-the-moment auction. Actually this process represents a tip of a
very big iceberg. The advent of m-commerce, as widely referred to among the
users, has far-reaching implications.
REFERENCES:
The Ecology of Mobile Commerce: Charting a Course for Success Using Value Chain
Analysis, Andreas Rulke, Anand Iyer, & Greg Chiasson (PRTM)
The Wireless Application Protocol: Strategic Implications for Wireless Internet Services,
Stuart J Barnes (Victoria University of Wellington)
M-Commerce in the Automotive Industry: Making a Case for Strategic Partnerships, Rick
Solak, Mark Schrauben,
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