Indonesia 2.0 – Mobile & Internet Adoption in Indonesia


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Adoption cycle for a sustainable innovation in mobile and Internet business ecosystem in Indonesia

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Indonesia 2.0 – Mobile & Internet Adoption in Indonesia

  1. 1. Indonesia 2.0 The Adoption of Mobile & Internet Andi S. Boediman Strategic Innovation Consultant
  2. 2. Ritual Creation Mass Adoption Habit Forming Behaviour Change Behaviour Introduction Innovative Solution Innovation Adoption Lifecycle
  3. 3. morning ritual 82% brush teeth 74% take shower/bath 74% have something to eat 54% talk to family members 53% males shave 47% females put on makeup Source: BBDO worldwide study Ritual Creation for Consumer Market The long way creation of ritual will commoditize innovation to become consumer market.
  4. 4. Mobile & Internet Adoption Mobile and Internet will become a ubiquitous infrastructure for communication, content distribution, community and commerce
  5. 5. voice & sms becomes commodity, drives pulsa become kind of “money” the potential of value added services online shopping video streaming online gaming music downloading social networking chatting emailing browsing
  6. 6. D = 82% Rp 500 - 700 rb C = 65% Rp 700 rb - 1.5 jt A = 86% > Rp 2 jt advertising model subscription model Mobile & Internet Adoption in Indonesia innovator early adopter early majority late majority laggards 50 % 20 %20 %8 %2 % mobile adoption internet adoption content distribution commerce communication payment platform E = 86% < Rp 500 rb B = 82% Rp 1.5 - 2 jt mobile adoption
  7. 7. Warnet Office Home Mobile School Hotspot online shopping 7% video streaming 16% online gaming 17% music downloading 45% social networking 50% chatting 65% emailing 82% communication content community commerce Internet Usage Source: Synovate browsing 86% key usage
  8. 8. Kaskus Detik Kompas Kapanlagi information Friendster Facebook community Ticket Retail Book goods & merchandising Advertising as Business Model Games Classified Images, Music digital content Ecommerce as Business Modelepayment platform US $10 million
  9. 9. Mobile Internet Adoption Case Study Learning from iMode, a mobile internet ecosystem
  10. 10. • Low PC penetration in Japan • High charges for PSTN dial-up access in Japan Internet Problem in Japan Solution • Young women doesn’t really care about technology, they care about connection and content. • Connecting to Internet should as easy as making a call.
  11. 11. • Launched by DoCoMo in 1999 • Within 3 years, it had over 35 M subscribers and 40,000 iMode Web sites • Low fees: 300 Yen/month plus 2.4 Yen/ KB downloaded • It is an application environment for subscribers for application providers -> On Device Portal • Open its billing system • DoCoMo use a subset of HTML (cHTML) • Manufactured a new breed of application friendly handsets. iMode Facts
  12. 12. When you focus on the number of Internet users for private use, it is far from ’critical mass’ for major IP in Japan. However, if you count on all cellular phone users of DoCoMo, IP can easily reach economies of scale for its own service. Cellular Phone User 47 million Internet User around 17 million Personal PC User 3 - 4 million Internet Information Provider Information Provider DoCoMo User 27 million ISP Private LAN DoCoMo Gateway Server iMode Adoption
  13. 13. iMode Adoption Strategy Portal Link Web access Intranet Intranet Packages Java IMT‐2000 Feb 1999 Fall1999 Fall 2000 Spring 2001 i-mode launch Success of iMode lead to smooth introduction of IMT-2000 which enable high speed access from mobile devices (64k-384k bps). They enhance iMode platform by introducing Intranet package solutions in 1999, then Java technology in 2000. Homepage Email Groupware ・Schedule Management ・Work flow Management ・Electronic Bulletin Board System ・Electronic Conference ・File Sharing ・Video ・Game ・Music ・Agent function ・Mobile TV ・Interactive TV ・TV Telephone ・TV Conference ・Security function Rich (Visual, High Speed) Colored LCD
  14. 14. iMode & Content Application Content/Application Case Study Movie Navigator, Mobile Banking, Character Download
  15. 15. MENU 1.Movie Guide 2.Ranking 3.Latest News Latest Films 1. Deep Impact 2. Saving Ryan 3. SHITSURAKUEN 4. Kiseki no Umi 5. Romeo & Juliet 6. 007 7. Mr. Bean Choose 1 Choose 1 Choose 5 Romeo & Juliet 1. Profile 2. Story 3. Special Features 4. Theaters Choose 1(charged) 2 Theaters Found in Your Area  1. Nihon Theater 2. Cine-Chante Choose 4 NOW SHOWING (9/26∼10/12) Yurakucho Nihon Theater Marion Bldg. 11F 11:00/1:40/4:20 7:00/9:10 Adult 1,800Yen Student 1,500Yen Rsvd. 3,000Yen Child. 1,000Yen 1. PHONE TO! 2. Return PROFILE USA/1996 Director, Hes Laman/ Film, Donald M. Mclevin/Actor, Leonard de Caprio 1.Return Choose 1 STORY Remake of the Shakespeare`s work with modern spice. 1.Return Choose 2 Call to the theater and make a reservation Choose 1 Choose 1 Content Example/Movie Navigator Movie Navigator Welcome to the Latest Road Show Information 1. ENTER DETAIL INFO. Guidance to this Movie Info Charge $0.10 per view 1. OK 2. Return
  16. 16. <Account Selection> ◎ Tokyo Brunch Savings ***1234 ○ Yokohama Br. Checking ****234 Check Balance Today’s Transaction Past Transaction <Sumitomo Bank> 1.Mobile Banking 2.Telephone Banking Center 3.ATM Maps 4.Service Info 5.Sample 6.Application Form Request 7.Customer Support Content Example Mobile Banking; Sumitomo Bank <Service Menu> Balance Check Money Transfer Change PIN Quit  MY MENU 1. Weathernews 2. ZAGAT Tokyo 3. Nikkei News 4. Sumitomo Bank Mobile Banking 1.Start 2.Quit 3.Help Desk(Tokyo) 4.Help Desk(Osaka) 5.My Menu <Input ACCT# and First PIN> ACCT# ******* 1st PIN ****** Submit Cancel 0354738111 Calling <Balance> 11/3 10:30 #Account Balance Y123,456 Back to Menu Quit <Account Selection> ◎ Tokyo Brunch Savings ***1234 ○ Yokohama Br. Checking ****234 Money Transfer Acct Transfer Back to Menu <Registered Acct> ○ Sumitomo Bank Osaka Brunch Savings ***4321 Paul Smith ◎ CITIBANK Tennoz Brunch Savings ****135 Takeshi Natsuno Transfer Amount 1000000 Transfer Back to Menu <Confirmation> FROM; Sumitomo Bank Tokyo Brunch Savings ***4321 TO; CITIBANK Tennoz Brunch Savings ****135 Takeshi Natsuno Amount Y100,000 Fee Y315 →Input 2nd PIN   ****** Confirm Cancel <Order Completed> Executed 11/3 Order # 1103-001 Back to Menu Quit Balance Check Money Transfer Below
  17. 17. Case Study; Bandai Corporation Chara-Pa! Service Character Delivery Web by Bandai Corporation Simple GIF downloading can generate money ! • You can download GIF everyday by enrolling membership for 100 Yen/month. • Acquired more than 450,000 subscribers at mid November.
  18. 18. Mobile & Internet Advertising Adoption Mobile and Internet advertising growth potential and understanding the consumer goods as the biggest potential for advertising
  19. 19. Mobile marketing in Global Perspective Mobile Advertising market will grow from US$900M to US$1.1B by 2011 Source: Mobile - Jupiter Research 2005 and PC Internet - eMarketer, 2007 Cars 800 million Phones 1.3 billion Television 1.5 billion Credit Card 1.4 billion PC 850 million Internet 1.1 billion Mobile Phones 3.3 billion (nov 2007)
  20. 20. Indonesia mobile advertising metrics adMob serves ads for more than 6000 web sites and applications around the world. It stores and analyzes the data from every ad request, impression, and click and uses this to optimize ad matching in the network. This report is a snapshot of the data to provide insight into trends in the mobile ecosystem. Source:
  21. 21. Indonesia mobile advertising growth Source:
  22. 22. Mobile Web Drawing Diverse Advertisers Most advertiser is still IT and lifestyle related, consumer goods not yet adopt mobile as advertising medium
  23. 23. eyeball loyal customers purchaseconsideration favorabilityawareness loyalty advertising to mass market information/ user review consumer lead purchase intent marketing funnel customer
  24. 24. eCommerce Adoption eCommerce adoption shows variety degree of success depend on consumer ease of use and trust
  25. 25. Global eCommerce
  26. 26. • Total credit card from 20 banks: 9 million • The Big 4: Citibank, BCA, BNI and Mandiri. • Potential market growth: 20-30% per year. Credit Card Adoption • How many credit card do you have? Why? • Is credit card replacing money? Why? A few question The success of credit card is because it offers a credit/financing/discount solution, not only payment solution.
  27. 27. Yehey’s PayPlus+ has been servicing local merchants for about 3 years already but up to now, but there seems to be too little penetration amongst local merchants. Poor awareness in the general population and lack of infrastructure to support mobile commerce may hamper adoption of his innovative business models. In a survey conducted, there is still poor awareness in terms of people's attitude towards m- commerce. A lot didn't understand it despite the advertisements on television and in billboards. On the aspect of infrastructure, it is still difficult to "cash-in and cash-out" using micropayment. Both SKT and KTF have mobile wallet offerings (SKT offers MONETA and KTF offers K-Merce). These services came out around December 2004. Neither of these services has taken off. There appears to be little or no marketing, and the press is silent on these services. You can still see an occasional dongle in a store, but you rarely if ever see anyone use them. mCommerce Case Study
  28. 28. the low- and middle-income Mexican market through ePAID. It provides a cash-based payment platform that supports e-commerce and remittance services. ePAID facilitates low-cost money transfers between workers in the United States and family in Mexico. By allowing people to ship goods to friends and family in Mexico, ePAID eliminates the need for hard cash transfers. For those who do wish to transfer cash, there are small, affordable fees. For their ePAID venture, eCatalystOne partnered with Mexican banks to ensure that their customers can withdraw cash funds from their ePAID accounts at ATMs. Because ePAID is not credit-based, there is no risk involved for the company or the consumer. Opening an ePAID account does not require the divulgence of any financial information and. More importantly, consumers without access to credit can open accounts using cash. ePaid Case Study
  29. 29. desirable hardware ease of use content common payment internet/mobile Apple Model 1 2 3
  30. 30. Online Purchase Adoption is still low due to payment solution
  31. 31. innovator early adopter early majority late majority laggards 50 % 20 %20 %8 %2 % Transition to eCommerce Adoption Mobile Adoption Mobile Internet Adoption ePayment Adoption eCommerce Adoption
  32. 32. Key Takeaway Understand and apply the adoption cycle for creating a sustainable innovation in mobile and Internet ecosystem
  33. 33. Thank You Andi S. Boediman Strategic Innovation Consultant