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
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content
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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
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Sharif University of Tech
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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
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Attributes and benefits
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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
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Limitations
• Usability Problem
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small size of mobile devices (screens and size, keyboards, etc)
limited storage capacity of devices
hard to browse sites
short battery lifetime
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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
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Differences in the User Experience
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Less browsing and more searching
Fewer site visits
One company to own entire experience
Focus is on information rather than
transactions
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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.
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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.
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Sharif University of Tech
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Business Models for
m-Commerce
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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
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– 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
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Sharif University of Tech
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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.
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Sharif University of Tech
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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
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Sustainable
ok?
Yes
Sharif University of Tech
Stop
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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.
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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.
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Sharif University of Tech
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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).
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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.
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Sharif University of Tech
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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
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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
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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
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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
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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.
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Sharif University of Tech
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Revenue Models for Content Providers
• User fee business model
– Subscription fee and/or usage fees
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•
•
•
•
Shopping business model
Improved efficiency business model
Advertising business model
Revenue Sharing
…These models are often combined
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Sharif University of Tech
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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
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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)
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Sharif University of Tech
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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
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Sharif University of Tech
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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…
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Sharif University of Tech
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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
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Sharif University of Tech
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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.
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Sharif University of Tech
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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
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38-‫ذی القعده‬-11
Sharif University of Tech
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