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M COMMERCE

 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 :

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M COMMERCE

Mobile Commerce History Characteristics of m-commerce Dierences to E-Commerce Application of m-commerce Key actors in mobile commerce Key issues of m -commerce Security in m-commerce ayment mechanisms for utili!in" mobile ser#ices $rame%or& of m-commerce Mobile commerce business mo'el

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 )

Mobile Commerce refers to %ireless electronic commerce use'

for con'uctin" commerce or business throu"h a han'y 'e#ice li&e cellular

phone or ersonal Di"ital Assistant *DAs+, t is also sai' that it is the ne.t

"eneration %ireless e-commerce that nee's no %ire an' plu"-in 'e#ices,

Mobile commerce is usually calle' as /m-Commerce/ in %hich user can 'o

any sort of transaction inclu'in" buyin" an' sellin" of the "oo's0 as&in" any

ser#ices0 transferrin" the o%nership or ri"hts0 transactin" an' transferrin"

the money by accessin" %ireless internet ser#ice on the mobile han'set

itself,

 he ne.t "eneration of commerce %oul' most probably be mobile commerce

or m-commerce, resumin" its %i'e potential reach all ma2or mobile han'set

manufacturin" companies are ma&in" 3A enable' smart phones an'

pro#i'in" the ma.imum %ireless internet an' %eb facilities co#erin"

personal0 o4cial an' commerce re5uirement to pa#e the %ay of m-

commerce that %oul' later be #ery fruitful for them,

History )

launche' in 1667 by Merita 8an& of $inlan'0 also usin" SMS,

n 16690 the :rst sales of 'i"ital content as 'o%nloa's to mobile phones %ere

ma'e possible %hen the :rst commercial 'o%nloa'able rin"tones  %ere

launche' in $inlan' by Ra'iolin2a *no% part of Elisa Oy2+,

 %o ma2or national commercial platforms for mobile commerce %ere

launche' in 1666) Smart Money in the hilippines0 $irst thou"ht up by Matt

3ilson, Mobile commerce %as born in 1667 %hen the :rst t%o mobile-phone

enable' Coca Cola #en'in" machines %ere installe' in the Helsin&i area in$inlan', he machines accepte' payment #ia SMS te.t messa"es, he :rst

mobile phone-base' ban&in" ser#ice %as an' ; DoCoMo/s i-Mo'e nternet

ser#ice in <apan, i-Mo'e oere' a re#olutionary re#enue-sharin" plan %here

; DoCoMo &ept 6 percent of the fee users pai' for content0 an' returne'

61 percent to the content o%ner,

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Mobile-commerce-relate' ser#ices sprea' rapi'ly in early (>>>, ;or%ay

launche' mobile par&in" payments, Austria oere' train tic&etin" #ia mobile

'e#ice, <apan oere' mobile purchases of airline tic&ets,he :rst conference

'e'icate' to mobile commerce %as hel' in ?on'on in <uly (>>1,

 he :rst boo& to co#er mobile commerce %as omi Ahonen/s M-profts  in

(>>(,he :rst uni#ersity short course to 'iscuss mobile commerce %as hel'

at the @ni#ersity of O.for'  in (>>=0 %ith omi Ahonen an' Ste#e <ones

lecturin", As of (>>90 @C? Computer Science an' eter <, 8entley

'emonstrate' the potential for me'ical applications on mobile 'e#ices,

DAs an' cellular phones ha#e become so popular that many businesses are

be"innin" to use mobile commerce as a more e4cient %ay to communicate

%ith their customers,n or'er to e.ploit the potential mobile commerce

mar&et0 mobile phone manufacturers such as ;o&ia0 Ericsson0 Motorola0 an'ualcomm are %or&in" %ith carriers such as AB 3ireless an' Sprint to

'e#elop 3A-enable' smartphones, Smartphones oer fa.0 e-mail0 an'

phone capabilities,

ro:tability for 'e#ice #en'ors an' carriers hin"es on hi"h-en' mobile

'e#ices an' the accompanyin" &iller applications0 sai' 8urchett, erennial

early a'opters0 such as the youth mar&et0 %hich are the least price sensiti#e0

as %ell as more open to premium mobile content an' applications0 must also

be a &ey tar"et for 'e#ice #en'ors,

Since the launch of the ihone0 mobile commerce has mo#e' a%ay from SMS

systems an' into actual applications, SMS has si"ni:cant security

#ulnerabilities an' con"estion problems0 e#en thou"h it is %i'ely a#ailable

an' accessible, n a''ition0 impro#ements in the capabilities of mo'ern

mobile 'e#ices ma&e it pru'ent to place more of the resource bur'en on the

mobile 'e#ice,

,CHARATRISTICS OF M-COMMERCE :

  he primary criterion of mobility is the metho' of access ,;ot all

mobile 'e#ices pro#i'e a mobile access to telecommunication net%or&s, $or

instance0 a laptop0 e#en thou"h a mobile 'e#ice0 "enerally uses stationary

access to net%or&s, E#en %hen a laptop connects to a %ireless net%or&0 its

usa"e0 %hile on the mo#e0 is limite' by factors such as si!e an' %ei"ht, On

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M COMMERCE

the other han'0 telematics 'e#ices mounte' in #ehicles are capable of 

pro#i'in" mobile access to telecommunication net%or&s, he computer-

me'iate' net%or&s may be partially or e#en fully %ire'0 as lon" as they are

able to recei#e an' han'le re5uests sent by mobile electronic 'e#ices, Some

parts of a transaction may be processe' in a stationary sector, $or e.ample0

or'erin" clothes usin" a mobile phone is an m-commerce transaction0 e#en

%hen the transaction is processe' by stationary computers0 the or'ere'

"oo's are sent by snail mail an' pai' a"ainst an in#oice, 3hat is important is

that at least the initiation or the completion is carrie' out usin" mobile

access #ia an electronic 'e#ice,he complete' transaction nee' not ha#e a

monetary character if the transaction is carrie' out as a mar&etin" measure

or as an after-sales ser#ice,

DIFFERENCES TO E-COMMERCE:M-commerce is characteri!e' by some uni5ue features that e5uip it %ithcertain a'#anta"es a"ainst con#entional forms of commercial transactions0inclu'in" e-commerce,

 Ubiquity)  @bi5uity means that the user can a#ail ser#ices an' carry out

transactions lar"ely in'epen'ent of his current "eo"raphic location *the

any%hereF feature+, his feature can be useful in many situations0 e,", to

cross-chec& prices %hile stan'in" in a supermar&et or %hile on the mo#e,

 Immei!"y) Closely relate' to ubi5uity is the possibility of real-time

a#ailment of ser#ices *the anytimeF feature+, his feature is particularly

attracti#e for ser#ices that are timecritical an' 'eman' a fast reaction0 e,",

stoc& mar&et information for a bro&er, A''itionally0 the consumer can buy

"oo's an' ser#ices as an' %hen he feels the nee', he imme'iacy of 

transaction helps to captureconsumers at the moment of intention so that

sales are not lost in the hiatus bet%een the point of intention an' that of 

actual purchase,

 L#"!$i%!ti#&: 

ositionin" technolo"ies0 such as the Global ositionin"

System *GS+0 allo% companies to oer "oo's an' ser#ices to the user

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M COMMERCE

speci:c to his current location, ?ocation-base' ser#ices can thus be oere'

to meet consumer nee's an' %ishes for locali!e' content an' ser#ices,

 I&'t!&t "#&&e"ti(ity )

E#er since the intro'uction of the General ac&et Ra'ioSer#ice *GRS+ mobile 'e#ices are constantly onlineF0 i,e, in touch %ith the

net%or& *the al%ays onF feature+, his feature brin"s con#enience to the

user0 as time consumin" 'ial-up or boot processes are not necessary,

P)#-!"ti(e *u&"ti#&!$ity)8y #irtue of its ability to be imme'iate0 local an' personal0 m-

commerce opens ne% a#enues for push-mar&etin"0 such as content an'

pro'uct oers, Ser#ices li&e Opt-in a'#ertisin"F can be oere'0 so that a

user may choose those pro'ucts0 ser#ices an' companies that he %ants tobe&ept informe' about, he Short Messa"e Ser#ice *SMS+ can be use' to

sen' brief te.t messa"esto consumers0 informin" them of rele#ant local

oerin"s that best suit their nee's, his feature ensuresthat the ri"htF

*rele#ant+ information can be pro#i'e' to the user at the ri"htF place0 at the

ri"htF time, he user too 'oes not ha#e to fear missin" some potentially

crucial information or "ettin" it too late,

Sim+$e !ut,e&ti"!ti#& +)#"eu)e: 

Mobile telecommunication 'e#ices function %ith an electronic

chipcalle' Subscriber 'entity Mo'ule *SM+, he SM is re"istere' %ith thenet%or& operator an' the o%ner is thus unambi"uously i'enti:able, he

clear i'enti:cation of the user in combination %ith an in'i#i'ual ersonal

'enti:cation ;umber *;+ ma&es any further time-consumin"0 complicate'

an' potentially ine4cient authentication process re'un'ant,

Application of m-commerce:

1 M#bi$e ti"eti&/

  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.

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2 M#bi$e (#u",e)'0 "#u+#&' !& $#y!$ty "!)'

  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. tores may send coupons to

customers using location!based services to determine when the customer is nearby.

C#&te&t +u)",!'e !& e$i(e)y

  "urrently, mobile content purchase and delivery mainly consists of the sale of ring!

tones, 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 #$ networks make it

 possible to buy a movie on a mobile device in a couple of seconds.

L#"!ti#&-b!'e 'e)(i"e'

  The location of the mobile phone user is an important piece of information used during

mobile commerce transactions. %nowing the location of the user allows for location!based

services such

• ?ocal 'iscount oers

• ?ocal %eather

•  rac&in" an' monitorin" of people

3 I&*#)m!ti#& 'e)(i"e'

  A wide variety of information services can be delivered to mobile phone users in

much the same way as it is delivered to P"s. These services include&

• ;e%s

• Stoc& 5uotes

• Sports scores

• $inancial recor's

•  ra4c reportin"

"ustomi'ed traffic information, based on a user(s actual travel patterns, can be sent to a mobile

device. This customi'ed data is more useful than a generic traffic!report broadcast, but was

impractical before the invention of modern mobile devices due to the bandwidth re)uirements.

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4 M#bi$e b!&i&/

  *anks 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!*anking.

5 M#bi$e St#)eF)#&t  The reinvention of the mobile phone as a touch sensitive handheld computer has for

the first time made mobile commerce practically feasible. (According to A*+ esearch, mobile is

going to get a lot bigger in the ecommerce market. The research firm is predicting that in -/0,

1//2bn worth of goods and services will be purchased via a mobile phone.(

6 M#bi$e b)#e)!/e

  tock market services offered via mobile devices have also become more popular 

and are known as Mobile *rokerage. They allow the subscriber to react to market developments

in a timely fashion and irrespective of their physical location.

7 Au"ti#&'

  3ver the past three year mobile reverse auction solutions have grown in

 popularity.Unlike traditional auctions, the reverse auction 4or low!bid auction5 bills the

consumer(s phone each time they place a bid. Many mobile M commerce solutions rely on a

one!time purchase or one!time subscription6 however, reverse auctions offer a high return for the

mobile vendor as they re)uire the consumer to make multiple transactions over a long period of 

time.

18 M#bi$e B)#9'i&/

  Using a mobile browser7a World Wide Web browser on a mobile device7customers

can shop online without having to be at their personal computer.

11 M#bi$e m!)eti&/ !& !(e)ti'i&/

  +n the conte8t of mobile commerce, mobile marketing refers to marketing sent to

mobile devices. "ompanies have reported that they see better response from mobile marketing

campaigns than from traditional campaigns. Mobile campaigns must be based on the global

"ontent $eneration or what is called $eneration " and four other ("(s& "reativity, "asual

"ollapse, "ontrol, and "elebrity. A brief introduction... "reativity& let(s face it, we(re all creative,

if not artists9 4:otice we didn(t mean talented artists 6!5. And as creativity normally leads to

content, the link with $;:;AT+3: " is obvious. Which then brings us to "asual "ollapse& the

ongoing demise of many beliefs, rituals, formal re)uirements and laws modern societies have

held dear, which continue to (collapse( without causing the apocalyptic aftermath often predicted

 by conservative minds.

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Key actors in mobile commerce:

KEY ISSUES OF M-COMMERCE:

  The success of M-Commerce depends on

• Evolution:  Technology and !usiness models are constantly evolving

which will demand fleibility and patience on part of all players.

• Customer loyalty: #ho will $own% the customer& 'artnerships among

players from various industries will be necessary for most, if not all, m-commerce initiatives, and, in turn, will alter the nature of any one company

to own their own customers. 

• Moving up the value chain:  To respond to market opportunities some

companies have develop subsidiaries in order to react more rapidly to market

challenges. (or eample, )onera has developed )onera *ed, to provide portal

and application management services such as location based mobile yellowpages as well )mart Trust, to develop secure solution for m-commerce

transactions. +nd Citicorp has established e-Citi to develop a wireless access

gateway strategy for financial service providers.

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ayment by cre'it car':

  In this method, the charges for services are billed against the credit card of the

subscriber. The subscriber can inform the service provider about his credit card number, e.g. via

WAP interface.

 

P!yme&t (i! te$e+,#&e bi$$:

  A comfortableway of paying for mobile servicesis payment via the monthly telephone

bill that the network carrier sends to eachsubscriber. The carrier may collect theamount on

behalf of the provider againsta certain service charge.

M#bi$e +!yme&t:

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 andtelephone 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.

*)!me9#) #* m-"#mme)"e:

  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-to-

face 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 e-

commerce regulations, supplemented by telecommunication lawsMobile commerce *m-

commerce+ refers to an ability to con'uct %ireless commerce transactions usin"

mobile applications in mobile 'e#ices, M-commerce applications can ran"e from as

simple as an a''ress boo& synchroni!ation to as complicate' as cre'it car'

transactions, M-commerce is e.pecte' to "ro% 'ramatically in the near future

supportin" simple to comple. commerce transactions, E#en thou"h the 3ireless

Application rotocol *3A+ is 'esi"ne' to facilitate the 'e#elopment of %ireless

applications0 it %ill not be su4cient to han'le comple. business transactions that

re5uire cooperation of 'ierent ser#ice applications, n or'er to han'le thesecomple. mobile commerce transactions e4ciently0 an intelli"ent0 robust an'

scalable frame%or& that pro#i'es 'i#erse m-commerce ser#ices is re5uire',

MOI!E COMMERCE USI"ESS MO#E!:

 immers *immer0 1666+ 'e:ne' the business mo'el to 'escribe the

economic sta&ehol'er cate"ories0 thepro'ucts an' ser#ices oere'0 ho% the

sta&ehol'ers interact0 the information an' "oo's that o%0 the sourcesof 

re#enue0 ho% the economic yiel' is share' amon" the sta&ehol'ers0 an' ho%

they are relate' %ith theabo#e o%s *?im an' Siau0 (>>=+, his 'e:nition %ill

be applie' in ai'in" in constructin" the M-Commercebusiness mo'el in this

research,he current =G technolo"y allo%s a hi"her transmission rate to

pro#i'e M-Commerce #alue-a''e'ser#ices, a&en this into consi'eration0 the

tra'itional mobile operator centric business mo'el cannot'escribe the inter-

relationship of each entity clearly an' completely as the emer"in" #alue-

a''e' MCommerceapplications, herefore a ne% business mo'el %hich is

suitable for the current M-Commercemar&et is necessary to construct, $i"ure

1 represents the propose' M-Commerce business mo'el from themobile

'e#ice manufacturerNs point of #ie%0 %hich outlines the roles they may playin the future'e#elopment of M-Commerce, 3ith the propose' business

mo'el0 =G telecom operators are still the mostcrucial members,0 %ho no%

has to %or& closely %ith content'ata pro#i'ers0 applicationportal

#en'ors0platform #en'ors an' the mobile 'e#ice manufacturers in pro#i'in"

5uality #oice an' 'ata ser#ices to users,t can be seen that the relationship

has chan"e' from that of the tra'itional mobile operator centric

1(

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buisnessmo'el in %hich re#enue is only share' bet%een the 'ierent ser#ice

pro#i'ers an' the mobile operators, heinteroperability bet%een the

platforms must be establishe' to pro#i'e seamless roamin" by the

mobileoperators throu"h their platform #en'ors, More parties are in#ol#e' in

the process of pro#i'in" #alue-a''e'ser#ices an' applications to mobile

users,

 here is a close cooperation bet%een the mobile 'e#ice manufacturer an' the

chipprocessor

manufacturer, Althou"h a small number of mobile terminal manufacturers ha#e

their o%n chipprocessomanufacturin" facilities0 most ha#e to %or& %ith e.ternal

chipprocessor manufacturers therefore0 thechipprocessor manufacturer is an

important party for cooperation in 'e#elopment, he mobile 'e#ice OS*Operatin"

System+ is 'ominate' by three ma2or sta&ehol'ers) Symbian0 Microsoft an' ?inu.,

 he OSchosen has to match %ell %ith the re5uirements of the mobile 'e#ice0 suchas 'isplay format mana"ementan' battery mana"ement issues,

 

CO"C!USIO":

1=

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  +s m-commerce applications and wireless devices are evolving rapidly, onewill 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 realiing the

enormous strength of m-commerce in this nternet era and thereby meeting boththe basic reuirements and advanced epectations of mobile users and providers.

There are news articles and pictures displaying people, who are ordering things

over the nternet while waiting for a bus, downloading merchant coupons on their

'+s as they enter a store or bidding for the last table at a hot restaurant by digitalphone in a spur-of-the-moment auction. +ctually 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.

REFERE"CES:

• The Ecology of Mobile Commerce: Charting a Course for Success Using Value Chain

 Analysis, Andreas Rulke, Anand yer, ! "reg Chiasson #$RTM%

• The &ireless A''lication $rotocol: Strategic m'lications for &ireless nternet Ser(ices,

Stuart ) *arnes #Victoria Uni(ersity of &ellington% 

•

Mobile *usiness Ser(ices: A Strategic $ers'ecti(e, )ukka Alanen #Mc+insey !Com'any% ! Erkko Autio #elsinki Uni(ersity of Technology%

• M-Commerce and Coca Cola, Mark S. /ee #Coca Cola%

• M-Commerce in the Automoti(e ndustry: Making a Case for Strategic $artnershi's, Rick

Solak, Mark Schrauben,

1