Your SlideShare is downloading. ×
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Booz co mobile-commerce-comes of age collaborate to succeed
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Booz co mobile-commerce-comes of age collaborate to succeed

863

Published on

bstract: …

bstract:
Developed markets are on the cusp of mass adoption of mobile commerce. Many companies now see m-commerce as a strategic priority but few will find themselves in a sustainable, value-accruing position. For most, the only way to win at scale is through collaboration in the form of as-yet-untried partnerships.

Related Industries:
Consumer Products, Financial Services, Health, Media & Entertainment, Public Sector, Retail, Technology, Telecommunications

Related Expertise Areas:
Marketing & Sales, Operations

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
863
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
34
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Perspective Michael Knott John Miles Edward BoyesM-CommerceComes of AgeCollaborate to Succeed
  • 2. Contact InformationBeirut Houston MoscowBahjat El-Darwiche Matt Anderson Dr. Steffen LeistnerPartner Partner Partner+961-1-985-655 +1-713-650-4142 +7-985-368-7888bahjat.eldarwiche@booz.com matt.anderson@booz.com steffen.leistner@booz.comDallas London New YorkJoe Sims Michael Knott Paul HydePartner Partner Partner+1-214-712-6636 +44-20-7393-3527 +1-212-551-6069joe.sims@booz.com michael.knott@booz.com paul.hyde@booz.comDüsseldorf Victor Koss ParisStefan Eikelmann Partner Pierre PéladeauPartner +44-20-7393-3738 Partner+49-211-3890-110 victor.koss@booz.com +33-1-44-34-3074stefan.eikelmann@booz.com pierre.peladeau@booz.com John MilesRoman Friedrich Senior Associate São PauloPartner +44-20-7393-3256 José Arias+49-211-3890-165 john.miles@booz.com Partnerroman.friedrich@booz.com +55-11-5501-6200 Edward Boyes jose.arias@booz.comFrankfurt ConsultantOlaf Acker +44-20-7393-3494 ZurichPartner edward.boyes@booz.com Christian Reber+49-69-97167-453 Partnerolaf.acker@booz.com Melbourne +41-43-268-2121 Simon Gillies christian.reber@booz.com Partner +61-3-9221-1903 simon.gillies@booz.com Booz & Company
  • 3. EXECUTIVE Decade-long mobile commerce hype looks finally set to deliver. Developed markets are on the cusp of massSUMMARY adoption, aided by developments in technology and changing user behaviour. Yet what was once seen as simply “a new way to pay” now has much broader relevance, adding value throughout the entire retail journey. Many companies now see m-commerce as a strategic priority— some are looking to employ it to protect their core business, others will use it to apply existing capabilities to new areas. But few will find themselves in a sustainable, value-accruing position. It is highly likely that a dominant scaled solution will emerge within each country. For most, the only way to win at scale is through collaboration in the form of as-yet-untried partnerships.Booz & Company 1
  • 4. THE SAME M-commerce is not new. Companies have understood the potential Despite a flurry of activity, including from Internet giants like Google andOLD HYPE? for consumers to use their mobile Facebook, no one has yet established devices as a channel to shop and a strong foothold. In the scramble access services for more than to achieve a critical mass for their a decade. As far back as 2001, m-commerce offerings, some com- Amazon.com launched its first panies are looking to develop their m-commerce site. Even before own propositions, while others have that, Barclaycard and Cellnet in announced new, sometimes unlikely, the U.K. were conducting trials of partnerships. “mobile phone cash machines.” Yet m-commerce has been slow to make The next 18 months will represent inroads against traditional chan- a critical time in the evolution of nels. That appears finally about to this nascent market, as a variety change. Thanks to technological of players push to achieve credible developments—most notably, the scale among both consumers and rise of the smartphone—evolving merchants. In this Perspective, user behaviour, and multidirectional we investigate the forces that are competitive pressures, the develop- driving the m-commerce market, ment of a compelling m-commerce the benefits available, and the kinds proposition has become a strategic of business models and partnerships priority for a wide variety of compa- that are seeking to achieve that nies in a number of industries. credible scale over time. M-commerce has been slow to make inroads against traditional channels. That appears finally about to change.2 Booz & Company
  • 5. Four trends in particular support recognising its potential benefits. adults who can access the Webthe mass adoption of m-commerce Near-field communication through their mobile devicesin developed markets. None of them (NFC) technology, a short range use them to shop, and almost asalone is enough to drive change; wireless RFID technology, many use them to make bankingtaken together, however, they create allows consumers to make transactions. 5a tipping point. contactless transactions using a mobile phone. Analysts predict • Trend #4: Take-up of mobile• Trend #1: Increased smartphone that 40 million to 50 million advertising is growing fast, penetration and improvements devices enabled for near-field with consumers willing to click in their performance have been communication (NFC) will be through and sign up, thanks pivotal in changing how users sold globally in 2011, 3 and that to the lure of highly targeted, perceive and are willing to use more than half of new handsets personalized offers. In just over a their phones, with Apple’s iPhone will be NFC-enabled by 2015.4 year, for example, more than acting as a catalyst. Already, 90 Already, the ability to make 2 million customers signed up percent of mobile subscribers contactless card payments has for the mobile advertising service in the U.S. and western Europe helped the rollout of terminals to offered by O2 in the U.K., and have a phone that can access stores; the Orange/Barclaycard Groupon claims to have a global the Internet.1 Sales of new solution announced for the U.K., total of more than 80 million smartphones tripled in the U.K. for example, claims that 40,000 subscribers to its local deep- between the first quarter of 2009 retailers will be able to accept the discount service. Overall, brand and the first quarter of 2011; service when ready. spending on mobile advertising in the latter quarter, almost is expected to grow from 0.5 half of new handsets sold were • Trend #3: Shifting consumer percent of total ad spending in smartphones. 2 behaviour is supporting these 2010 to more than 4 percent in technology deployments, with 2015, with mobile advertising• Trend #2: Contactless transaction an ever-increasing willingness revenue more than doubling technology rollout is well under to access the Internet and make each year. 6 way, with consumers gaining transactions using a mobile familiarity with it and merchants device. In the U.S., 20 percent ofBooz & Company 3
  • 6. MORE THAN As the tipping point for m-commerce nears, the breadth of the concept and can use their mobile phones to find information on store brands andA NEW WAY its potential impact have increased products and to locate nearby shops.TO PAY substantially. M-commerce is no longer just about enabling payments In-store mobile solutions provide access to product and shopping for online goods and services from information, while online advice an Internet-connected handset. Now, and real-time price comparison companies are looking to provide a sites enable consumers to make multifunctional “mobile wallet” that selections with confidence. Retailers can enrich the consumer experience are looking to enhance the checkout whether online or through a “wave- experience by simplifying online and and-pay” transaction in High Street in-store transactions. After making stores. The NFC technology enabling purchases, customers can track in-store payments will be particularly deliveries, share experiences with important, as it allows mobile others, and make use of simplified, devices to become the nexus of an more efficient support services (see increasingly blurred intersection Exhibit 1). As such, m-commerce between the online and physical should no longer be thought of as worlds. just online shopping from a mobile phone, but rather as a vehicle for The goal is to improve the full enhancing and enabling the end-to- customer experience, from when end customer experience, throughout potential customers first seek out the realms of online and physical the retailer all the way to post- commerce. sales customer care. ConsumersExhibit 1M-Commerce Across the Customer’s Full Retail Journey Receive & Land Browse Shop Buy Interact Support Use Guide customers Enable discovery Facilitate Process payments Timely delivery Enable customer Provide ongoing to store or of products and comparison and simply and quickly of purchased reactions and customer support channel solutions recommend products queries additional items and servicesSource: Booz & Company analysis4 Booz & Company
  • 7. EYES ON Every m-commerce stakeholder— including retailers, banks, mobile of consumer spending going to m-commerce represents incremen-THE PRIZE operators, and Internet players— tal value, thanks to the ability of needs to be fully aware of the benefits mobile devices to gather and use to be gained. rich targeting data, which lets merchants display personalized ads • Top-line impact: For some that feed impulse purchases. The organisations, m-commerce is continuing growth of the global already making a tangible top-line coupon market is a strong example impact. In 2010, eBay exceeded its of how mobile can be used to con- m-commerce target by more than 30 nect consumers and merchants, to percent, achieving almost $2 billion clear mutual benefit. With just one in global m-commerce revenue. And offer, Groupon generated 35 percent its success was not confined to the of the annual sales volume for a U.S. market—more than half of company in Amsterdam in a single those sales came from elsewhere. day. The instantaneous, targeted Traditional High Street retailers nature of mobile couponing has have also achieved considerable been shown to boost redemp- success from their early forays into tion rates spectacularly, far above m-commerce: Marks and Spencer those typically realised with paper attracted 1.2 million unique users coupons. and more than 13,000 orders in the first four months after the • Deeper consumer relationships: The launch of its m-commerce initiative appeal of m-commerce for brands in May 2010. and retailers is its ability not only to drive incremental short-term sales, • Incremental value: Evidence is but also to foster stronger consumer growing that the increasing share relationships. The wealth of richBooz & Company 5
  • 8. personal data that mobile devices fraud and replace lower-value cash Meanwhile, those companies’ can capture and transmit for analy- transactions, reducing cash-handling defensive posture offers other players sis allows companies to create more costs for both retailers and financial the opportunity to apply their relevant, personalized, and localized institutions. existing capabilities to capture value messaging and to integrate their from both traditional industries and customer relationships via social With so much to gain, businesses in entirely new areas. For “over-the-top” networks and brand-specific loyalty a variety of industries are already (OTT) players such as Google, for programmes. An early example of making the moves needed to quickly instance, m-commerce not only allows this opportunity to increase brand put in place a workable m-commerce informed advertising but also provides advocacy and stickiness can be proposition. Yet their activities—and a vehicle for applying their data and found in mobile banking in the their motives—vary widely. Some information capabilities to the High U.S.: Already, 41 percent of mobile players, particularly High Street Street, giving them even greater banking customers would recom- retailers and banks, continue to access to consumers throughout their mend the products and firms they perceive m-commerce as little more retail journeys. use, compared with 17 percent of than a disruptive threat to their nonmobile customers, while 30 existing businesses, and their forays M-commerce enablers, including percent say mobile banking makes into the space have been essentially device manufacturers and mobile them more likely to remain loyal to defensive in nature. As a result, many network operators (MNOs), also their banks.7 of these companies’ m-commerce have the opportunity both to grow efforts have been buried deep in the their existing market share and to• Enhanced operational efficiency: organisation and given low priority extend their service offerings into In addition to incremental sales in relation to day-to-day operations. new markets. MNOs, in particular, and highly engaged, loyal custom- Yet companies in these traditional have long focused investment on ers, m-commerce offers to retailers industries need to understand that their core business—no surprise, additional efficiency and operational continued inaction and apathy given their healthy growth and advantages. Well-executed NFC towards m-commerce will result in the high margins. Recently, however, technology and simple online trans- real long-term risk that their business stagnation in their core markets has action tools can reduce payment models and core revenues will be badly encouraged them to shift their focus times and checkout dropout rates. damaged. to adjacent markets, including mobile NFC payments can also reduce advertising and mobile payments.6 Booz & Company
  • 9. Many have looked—and more are While the rationale for different than that required in the shift fromnow looking—to gain a foothold in players across industries to develop physical to online shopping.the m-commerce sphere, not just in the a credible m-commerce propositionrole of enabler but also as providers of may vary, it is clear that a “wait and • Consumers are becoming ever moretheir own financial and media services. see” approach is no longer an option. receptive to technological change as Companies need to recognise how the frequency of technology disrup-As a multitude of players jockey for much activity is already under way, tion continues to accelerate.position, some degree of disruption and act accordingly—and fast. Just asis inevitable. This in turn will create the speed and degree of pervasiveness • Comfort with, and reliance on,opportunities for smaller businesses of e-commerce overwhelmed expecta- mobile devices is far greater than itto enter various mature, previously tions a decade ago, so too will those of was with the personal computer inimpenetrable industries. Startups have m-commerce. Indeed, there is much the early days of e-commerce.captured much of the early value in to suggest that m-commerce willthe emerging mobile payments and follow a shorter adoption curve than • The potential breadth of the impactadvertising markets, for instance. The e-commerce did. of m-commerce will drive a rush tolongevity of these emerging companies market by a variety of contendersas stand-alone entities may be limited, • The move to m-commerce, as part that will likely result in the rapidbut there is clear potential for growth of the High Street or online retailing development and deployment of thein the short term. experience, demands much less of a necessary facilitating infrastructure. step change in consumer behaviour Just as the speed and degree of pervasiveness of e-commerce overwhelmed expectations a decade ago, so too will those of m-commerce.Booz & Company 7
  • 10. BRING IT ALL transport the consumer through the retailing experience from browsing with loyalty schemes. At the centre of the eBay vision is the conceptTOGETHER to payment. The proposition for of a multipurpose mobile wallet, a consumers is also strong: relevant, critical element of any m-commerce appealing offers and an enhanced, proposition, as it can draw together more efficient shopping experience many of the different threads of the automatically integrated with loyalty m-commerce opportunity. and rewards programmes of theirThere are compelling reasons to bring choice. The claims already staked by eBaytogether the many distinct elements of and other OTT giants, however, bym-commerce, which include targeted Many of the OTT players and Internet no means preclude players from otheradvertising, enhanced retailing, giants have already recognised the industries from developing winningsimplified transactions, and customer significant value to be gained from comprehensive m-commerce propo-relationship management. If properly succeeding with a comprehensive sitions. Indeed, many have alreadyexecuted, this can result in a markedly m-commerce proposition and see it as announced their own intentionsimproved customer experience and an opportunity to extend their reach to offer a mobile wallet, includingultimately a much deeper and more into new markets. Exhibit 3 highlights MNOs such as O2 and Everythingsustainable relationship with end several key moves being made by some Everywhere in the U.K. and Deutscheconsumers. The elements logically of the largest OTTs, along with addi- Telekom in Germany, as well asfeed into one another and can be tional steps they might take to further financial service providers like Visabrought together to drive incremental cement their end-to-end m-commerce and Bank of America. Regardlessvalue through increased conversion, propositions. of industry, every player seems tocustomer satisfaction, and loyalty recognise that the mobile wallet will(see Exhibit 2). For example, eBay is looking to be central to the consumer experience develop a comprehensive m-commerce and thus must be a core element ofNaturally, the appeal to advertisers proposition, bringing High Street any proposition it develops. The moreand merchants is immense. Specific, retail enablers such as store locators, comprehensive the mobile wallet,individualized customer profiles will price comparison tools, and in-store and the more features it contains, theenable highly targeted, contextually discovery aids together with payment greater likelihood that the propositionrelevant messaging that helps to services, coupons, and integration will succeed (see Exhibit 4).Exhibit 2Value Created by a Holistic M-Commerce Proposition - Increased individual profiling - Cost-effective direct-response channel - Deeper information linking multiple - Tailored advertising based on individual transactions and location data customer preferences - Improved CRM/loyalty management - Contextual advertising (location-based Data and “real-time” coupons and vouchers) Analytics Marketing Relevant targeting leads to increased conversion, customer satisfaction, and loyalty Payment Processing - Increased flexibility via securely Shopping - Superior browsing, research, and stored payment tokens product/price comparison experience - Enhanced High Street experience - Enhanced in-store experience through NFC payments - Ongoing direct relationship - Increased account control and money management capabilitiesSource: Booz & Company analysis8 Booz & Company
  • 11. Exhibit 3Comprehensive OTT M-Commerce Propositions COMPANY M-COMMERCE PROPOSITION Apple - Leveraging of existing customer iTunes billing relationship and the iTunes Store - Potential to expand scope of products being sold - Patents held imply NFC capability soon to be built into devices eBay - Developed the concept for customers of an online “store in their pocket” - PayPal payment capability including NFC transaction functionality - Promotions and coupons incorporated with loyalty programmes - Online retail enablers such as store locators, stored shopping lists, and price comparison information Facebook - Opportunity to monetise highly engaged base of captive users - Deals provide online discounts shared on social networking site and delivered based on location - Creation of payments subsidiary called Facebook Payments Inc. - Proprietary currency is planned Google - Announced the launch of an online wallet that enables payment, coupon use, and loyalty recognition - Building on mobile location targeting and dominance of search advertising - Could be integrated with Google checkout payment solutionSource: Booz & Company analysisExhibit 4The Centricity of the Mobile Wallet Loyalty Ticketing Self-Scanning & Self-Checkout Promotions & Coupons In-Store Price Comparison Shopping Lists Payment Store LocationSource: Booz & Company analysisBooz & Company 9
  • 12. GET SCALE A vital element for success in m-commerce is to offer a proposition that were ultimately dependent for their success on network effects haveOR FAIL that can gain scale. A single, scaled failed to win because they sacrificed m-commerce proposition—with a key elements of their proposition mobile wallet at its core—will likely for speed. Only by meeting the core emerge in each country. Naturally, requirements of everyone across the speed-to-market will be critical in m-commerce ecosystem can credible the race to achieve the necessary scale be achieved. That means not scale. Even so, the standards wars just satisfying the needs of consumers of the past have shown that speed but also meeting the requirements of alone is not enough. Many platforms retailers and suppliers. A single, scaled m-commerce proposition—with a mobile wallet at its core—will likely emerge in each country.10 Booz & Company
  • 13. Consumer Requirements consumer trust early will be critical, The proposition’s interoperabilityThe m-commerce consumer proposi- and some brands and institutions and transferability are just as criticaltion requires three critical factors: will struggle to deliver the requisite a requirement for suppliers as theysimplicity, security, and transfer- security. are for consumers.ability. Apple’s iPhone was the firstdevice to achieve truly intuitive The third factor is transferability. This notion of an open, interoperablecross-functional convenience— Consumers can be resistant to being proposition can be difficult for somesimplicity—as its wild popularity tied to one device, one network, one m-commerce hopefuls to accept.quickly proved. A simple proposition banking solution, one card scheme, It flies in the face of the effort tocan catch on quickly and hold last- or a limited set of retailers. To have differentiate oneself from traditionaling value in the market, as its initial real appeal, a proposition needs to be competitors by developing a unique,attraction and ease of engagement both convenient to use on a regular proprietary offering not open toquickly promote habitual use. basis and not limited to just one por- noncustomers. Openness, however, tion of the m-commerce ecosystem is a must if the proposition is notSecurity, too, is crucial in instilling such as a single banking institution. just to drive consumer adoption butthe consumer confidence needed for also to persuade retailers to deploymass adoption. Across geographies, Merchant and Supplier Requirements NFC terminals, advertisers to adjustthere has been a consistent lag Fundamental to merchants and spending budgets, and financialbetween the development of online suppliers—advertisers, brands, and service providers to develop paymentpayments and their use, thanks financial service providers—is the solutions. This was pivotal for theprimarily to lack of consumer trust. concept of a one-stop-shop or single- mobile wallet launched in Japan byThough the adoption of m-commerce supplier proposition that removes NTT DoCoMo and Sony—it haswill not necessarily represent a step- complexity and its associated costs, been adopted on a wide scale withoutchange like the move from physical and provides quick and easy access any barriers for either consumersto online payments, achieving to a large portion of the population. or suppliers.Booz & Company 11
  • 14. COLLABORATE Given the many capabilities needed to create both scale and credibility Collaboration issues can be broken down into both formal (structural)FOR SUCCESS in m-commerce, it is unlikely that and informal (relational) challenges, any one player in the m-commerce and both must be underpinned ecosystem can provide a complete by the imperative for alignment proposition. We believe that around strategic intent (see Exhibit collaboration will be necessary to 5). Too much time and effort create a workable proposition in are typically expended on the most markets. But collaborating is formal collaboration challenges of not easy; indeed, it represents a bold organisational structure, governance, strategic move for most companies. up-front investment, and ongoing The decision to collaborate should profit-sharing arrangements. As a not be made lightly, and it must take result, there can be a lack of focus into account in equal weight the on working together and establishing likelihood of success in the market an environment of trust and open of the new business and the survival communication—components crucial of the partnership itself. It is worth to fostering the required positive, noting that in our experience, the sustainable working relationship. kinds of interactions that take In reality, formal and informal place at the beginning of an alliance challenges are so intertwined that the have a disproportionate impact on neglect of either will likely damage the success or failure of the future the partnership. business.Exhibit 5Considerations for Successful M-Commerce Collaboration FORMAL CONSIDERATIONS INFORMAL CONSIDERATIONS What parts of the business are How is participation between the to be included? collaborating companies balanced? What legal and regulatory considerations What are the cultural differences, should be addressed with regard and how should they be managed? to the collaboration? Is there sufficient trust to allow for a How will the future company be sustainable working relationship? organised and resourced? Is communication fully open? What capabilities should be leveraged? How can the right behaviours be How will future value be allocated incentivised in the new organisation? to the companies? How will ongoing decision making be governed? ALIGNMENT OF STRATEGIC INTENT Do participants have a shared vision? What is the value proposition of the new venture to customers? Is there a shared definition of success?Source: Booz & Company analysis12 Booz & Company
  • 15. EMERGING Various collaboration models are already developing, with different each with a different industry makeup. Indeed, we fully expectCOLLABORATION numbers and types of participants other inter- and cross-industryMODELS and a range of commercial models. Some companies have announced models to arise (see Exhibit 6, page 14). intentions to form joint ventures with others in the same industry. There is no one correct makeup There has been a recent wave of a national, scaled m-commerce of multi-operator collaboration proposition. When a collaboration announcements, with MNOs partner and commercial construct agreeing to cooperate to provide are being selected, a number of single national m-commerce considerations should be taken into propositions, such as in the U.K., account. France, and Denmark. Others are looking outside their own industry Competitive Landscape for collaboration partners; Google • Could prior competitive intensity and Visa, for example, have formed within the market make intra- a commercial partnership in the industry collaboration less likely United States. In some countries, to succeed? Might this impact the such as Turkey, multiple cohorts of choice of commercial model? collaborating partners have emerged, There is no one correct makeup of a national, scaled mobile commerce proposition.Booz & Company 13
  • 16. Exhibit 6Emerging M-Commerce Collaboration Models WWW Bank Scheme Joint Venture Mobile Network Operator Commercial Partnership Over-the-Top Player WWW Government Initiative Device ManufacturerSource: Booz & Company analysis14 Booz & Company
  • 17. • Are there any existing or planned are unlikely to work? Might a Each company looking to enter the propositions from competitors or partnership with a state-owned world of m-commerce will have rival collaborations that might business be more difficult? a distinct set of answers to these already be limiting potential part- questions—and as a result, a unique ners or shaping future commercial Core Business Model optimal strategic choice to make models? • How might the current business about both commercial models models of potential partners affect and potential partners. For mostRegulatory/Political Environment the design of a new collaborative companies, the decision is unlikely• Are there any specific in-country m-commerce proposition or the to be clear-cut, and so must be laws or regulations that might commercial terms thereof? carefully considered. In addition, the make approval of partnerships breadth and depth of m-commerce’s with traditional competitors • What capabilities can different likely impact, combined with unlikely? Could any such laws potential partners bring to a col- the importance of building a impact the commercial terms of laboration? Other than the fun- strong network of consumers and an agreement? damental requirement to achieve merchants early on, mean that a credible scale, are there any second chance of capturing this• Could the market’s political situ- capability gaps that might need market will be hard to come by. ation mean certain partnerships to be filled? For most companies, the collaboration decision is unlikely to be clear-cut, and so must be carefully considered.Booz & Company 15
  • 18. CONCLUSION After all the hype, mobile payment and marketing services look poised to M-commerce and the mobile wallet are much more than just mobile scale. As technology and behaviour replacements for the physical items we have evolved, the spectrum of use today. These new services create m-commerce offerings continues to a bridge between the physical and develop. The modern-day wallet, online worlds in a way that no other which came into being in the 1950s technology has yet succeeded in doing. following the invention of the credit card, could well be a distant mem- A scaled, interoperable proposition ory—a generational peculiarity—by has significant appeal to both 2050. The use of plastic cards to carry consumers and merchants, and is data and make transactions will seem therefore a must for an m-commerce farcical to the generation of tomor- offering. Disproportionate gains will row. The shape of marketing and the accrue to those that can position nature of the relationships that con- themselves within a single winning sumers have with brands and retail- proposition. In each country, it is still ers are also set to transform. Junk unclear what this proposition will mail and the mounds of leaflets and consist of, or who will create it. What coupons that fall out of Sunday news- is clear, however, is that it is unlikely papers will become a relic of the past, to be driven by a single company in when advertisers were unable to con- isolation. textualize or target their messaging.16 Booz & Company
  • 19. Endnotes1 “The 2010 Mobile Year in Review” (Comscore, 4 “NFC: When Will Be the Real Start?” (Frost & Sullivan,February 14, 2011). www.comscore.com/Press_Events/ January 2011). www.frost.com/prod/servlet/press-release.Presentations_Whitepapers/2011/2010_Mobile_Year_in_Review pag?docid=2231071912 “The Communications Market 2011” (Ofcom, August 2011). 5 “Mobile Payments Enter a Disruptive Phase.”stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr11/ 6 “Forecast: Mobile Advertising, Worldwide, 2008–2015” (Gartner, March 2011). www.gartner.com/it/page.jsp?id=17266143 “Mobile Payments Enter a Disruptive Phase,” by ThomasHusson (Forrester Research, March 31, 2011). www.forrester.com/ 7 “The ROI of Mobile Banking,” by Brad Strothkamp,rb/Research/mobile_payments_enter_ Alexander Hesse, and Peter Wannemacher (Forrester Research,disruptive_phase/q/id/57184/t/2 May 10, 2011). www.forrester.com/rb/Research/roi_of_mobile_ banking/q/id/58504/t/2About the AuthorsMichael Knott is a partner withBooz & Company based inLondon. His areas of expertiseinclude strategic transformationand growth strategies for clientsin the communications, media,and technology industries.John Miles is a senior associ-ate with Booz & Companybased in London. He focuseson strategic growth and innova-tion for clients in the telecom-munications industry.Edward Boyes is a consultantwith Booz & Company basedin London. He specialises indigital innovation and newtechnology strategy for thecommunications, media, andtechnology industries.Booz & Company 17
  • 20. The most recent Worldwide Officeslist of our officesand affiliates, with Asia Middle Eastaddresses and Beijing Brisbane Helsinki Abu Dhabi Detroittelephone numbers, Delhi Canberra Istanbul Beirut Florham Parkcan be found on Hong Kong Jakarta London Cairo Houstonour website, Mumbai Kuala Lumpur Madrid Doha Los Angelesbooz.com. Seoul Melbourne Milan Dubai Mexico City Shanghai Sydney Moscow Riyadh New York City Taipei Munich Parsippany Tokyo Europe Paris North America San Francisco Amsterdam Rome Atlanta Australia, Berlin Stockholm Boston South America New Zealand & Copenhagen Stuttgart Chicago Buenos Aires Southeast Asia Dublin Vienna Cleveland Rio de Janeiro Auckland Düsseldorf Warsaw Dallas Santiago Bangkok Frankfurt Zurich DC São PauloBooz & Company is a leading global managementconsulting firm, helping the world’s top businesses,governments, and organizations. Our founder,Edwin Booz, defined the profession when he estab-lished the first management consulting firm in 1914.Today, with more than 3,300 people in 60 officesaround the world, we bring foresight and knowledge,deep functional expertise, and a practical approachto building capabilities and delivering real impact.We work closely with our clients to create and deliveressential advantage. The independent White Spacereport ranked Booz & Company #1 among consultingfirms for “the best thought leadership” in 2010.For our management magazine strategy+business, visitstrategy-business.com.Visit booz.com to learn more aboutBooz & Company.©2011 Booz & Company Inc.

×