M-commerce business model - Sharif University of Technology
Transcription
M-commerce business model - Sharif University of Technology
Kissing the Cell Phone! M-Commerce & it’s Business Models By: Ali Chekah Narges Aghabeigi Mohammad Hossein Eftekhari 17 اوت03 Sharif University of Tech 1 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 17 اوت03 Sharif University of Tech 2 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 17 اوت03 Sharif University of Tech 3 Attributes and benefits 17 اوت03 Sharif University of Tech 4 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 17 اوت03 Sharif University of Tech 5 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 • • • • lack of a standardized security protocol insufficient bandwidth 3G licenses transmission and power consumption limitations • Technical Limitations – poor reception in tunnels and certain buildings – multipath interference, weather, and terrain problems and distance-limited connections • WAP Limitations • Speed • Cost • Accessibility 17 اوت03 Sharif University of Tech 6 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 17 اوت03 Sharif University of Tech 7 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. 17 اوت03 Sharif University of Tech 8 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. 17 اوت03 Sharif University of Tech 9 Business Models for m-Commerce 17 اوت03 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 17 اوت03 Sharif University of Tech 11 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. 17 اوت03 Sharif University of Tech 12 Business Models for m-Commerce Development Process for new Products and Services Market Pull Concept definition of the product/service Technology Push Business modelling Business analysis Yes Marketing plan Sustainable ok? Market analysis (interest, sustainability, competition, competitive advantage) Service development and investment analysis No Definition and use of market analysis Business plan No 17 اوت03 Sustainable ok? Yes Sharif University of Tech Stop 13 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. 17 اوت03 Sharif University of Tech 14 An example of a Business Model for mCommerce : 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. 17 اوت03 Sharif University of Tech 15 An example of a Business Model for mCommerce :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). 17 اوت03 Sharif University of Tech 16 Mobile Payment Service Mobile Micropayment 2. Sign purchase order Customer: mobile devices 2. Upload application and credentials 1. Provide Customer‘s keys and certificate 4. Check signature 3. Return signed purchase order Merchant: Point of Sale 1. Send purchase order 1. Registration process Mobile Gateway a) Send collected purchase orders regularly Content Billing Application Repository Micropayment Public Key Infrastructure Advertising Financial Institution b) Check purchase orders c) Clearing Location Based Services 2. Certification request 3. Create key pair and certificate Mobile commerce platform Sharif University of Tech Customer registration Application and credential upload Payment and clearing An example of a Business Model for mCommerce 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. 17 اوت03 Sharif University of Tech 18 An example of a Business Model for mCommerce 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. Sharif University of Tech 19 An example of a Business Model for mCommerce Mobile Gambling – Revenue Flow Internet Service Provider Operator Domain (may act as a portal) Yearly / Monthly Fee (Subscription) Payment Payment Portal User Payment - Airtime - subscription - premium charge - access to content Pays for Access to Users Operator Payment - For distribution - For Access to the mobile channel Direct Subscription Content Payment 17 اوت03 Payment for service Payment Payment Service Provider / Clearing House Payment - Once-off - For usage - Revenue sharing Application Service Provider Sharif University of Tech Payment Payment 20 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 – – – – – 17 اوت03 User fee business model • Subscription fee and/or usage fees Shopping business model Improved efficiency business model Advertising business model Revenue Sharing Sharif University of Tech 21 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. 17 اوت03 Sharif University of Tech 22 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 17 اوت03 Sharif University of Tech 23 User Fee Business Model Percentage of User Fee 3rd Party Billing Provider User Fee (monthly subscription or actual usage fee) Content Provider Mobile User Mobile Content • Often involves 3rd party billing provider • Two variations: – Subscription fees – easier to collect – Per-use fee 17 اوت03 Sharif University of Tech 24 E-Tailing Business Model Mobile Content Mobile e-Tailer Payment Mobile Shopper Product/Service • 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-acoke, location-based delivery (e.g. pizza, taxi) 17 اوت03 Sharif University of Tech 25 Improved Efficiency Model Content Provider Mobile Internet Business Lower Operating Costs Mobile Service/Content Service Usage/Transactions (possibly including payment) Traditional Business Mobile User & Core Business Customer • 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 17 اوت03 Sharif University of Tech 26 Advertising Business Model Mobile Service/Content incl. Promotional Info Advertising Fee Content Provider Advertiser Promotional Info Product/Service Mobile User Payment • Challenge: Small screen, privacy, user tolerance • Opportunities: – Mobile – Personalized – …Small Screen… 17 اوت03 Sharif University of Tech 27 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 17 اوت03 Sharif University of Tech 28 Revenue Sharing Business Model Value-Added Mobile Content Content Mobile Content Provider Content Owner Share of Revenue Mobile User Payment • 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. 17 اوت03 Sharif University of Tech 29 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 17 اوت03 Sharif University of Tech 30 38-ذی القعده-11 Sharif University of Tech 31