1. Mobile

3. History
• 1992 – IBM introduces Simon (1st “smart” phone)
• 1997 – Finland, Coke machines equipped with ability to accept
payment via mobile phone.
– Merita Bank introduced first banking services for mobile devices.
– Introduction of mobile ring tones
• 2000 – mobile ticketing in Austria and paying for parking in Norway
• 2001 – Kyocera 6035 by Palm, Inc. and first 3G network
• 2002 – first publications on Mobile commerce
• 2007 – Apple iPhone

4. By 2011

5. Smartphone Market Share

6. Some Mobile Statistics
• The percentage of shoppers buying from their mobile phones is expected to rise to 15% in
November, compared to 4.5% in last year’s holiday season, and less than 1% in 2009. In October,
9.6% of online shoppers made purchases through their mobile devices, up from 3.4% a year earlier.
(IBM Coremetrics Forecast, 2011)
• 67% of consumers will use their smartphones to find store locations, 59% to compare prices, 51% to
obtain product information, 46% to check product availability, 45% to read reviews, 45% to shop
online, 41% to find and use coupons, 40% to scan bar codes, and 35% to access social media
(Source: Deloitte’s 2011 Annual Holiday Survey)
• 27% of smartphone owners will use their devices for holiday shopping this year (Source: Deloitte’s
2011 Annual Holiday Survey)
• More than 60 percent of mobile buyers will make mobile purchases while at home (Source: Ipsos
and PayPal Survey, 2011)
• At least 46 percent of consumers plan to make mobile purchases this holiday season (Source: Ipsos
and PayPal Survey, 2011)
• 53% of the “on-the-go” U.S. audience is willing to exchange their location in exchange for more
relevant content and better information, including mobile deals (Source: JiWire, 2011)
• More than 33.3 million U.S. consumers already engage in shopping-related activities on their mobile
phones, 7%, or 2.3 million, of those consumers have made a purchase on their devices, the report
finds (Source: research firm Experian Simmons, 2011 Mobile Consumer Report)

7. More Mobile Stats
• 24% of U.S. adult online iPhone users and 21% of Android users have used a shopping application
in the past three months (Source: Forrester, 2011)
• Nearly half of consumers (47%) have accessed customer reviews in store using their mobile device
with men (55%) more likely to access these reviews in store than women (39%) (Source: Shop.org,
comScore and Social Shopping Labs, 2011)
• 41% of smartphone owners have made a purchase from their mobile phone. Of those, 16% bought
apparel; 15% food and beverages; 11% toys and games; 11% electronics; 8% home goods; 4%
sporting goods; 4% books; 3% jewelry; and 8% other products (Source: Chadwick Martin Bailey,
2011)
• 46 percent of consumers have used their phone to get product information while in a store (Source:
Briabe Media, 2011)
• 56 percent of people believe mobile can make the shopping experience more enjoyable (Source:
Lightspeed Research, 2011)
• 58% of mobile shoppers are age 18-34 and 34% of mobile shoppers make $100,000 or more a year
(Source: comScore/Millennial Media Mobile Retail Study, 2011)
• 13.1 million consumers access retail content via mobile phones with 8.2 million of those visiting
mobile commerce websites (Source: comScore/Millennial Media Mobile Retail Study, 2011)
• 67 percent of retailers see value of having customers use their smartphones within the store and 41
percent said they perceive a lot of value in mobile in-store (Source: RSR Research, 2011)

8. Unique Features and
Advantages
• Ubiquitous
– Easier information access in real-time
– Independent of user’s location
• Convenient
– Data is always at hand
– Continues to get easier to use
• Accessible
– Contacted anywhere at any time
• Personalized
– Information customized for a user
• Localized
– Knowing the user’s location and matching services to that
location

9. Disadvantages
• Usability
– Small screens and keypads limit messages
and browsing of information
• Technology
– Limited computing power
– Limited bandwidth
– Limited data transfer capabilities
• Security and privacy concerns

10. Technology Components
• Cellular and WiFi mobile devices
• Operating systems and application
development
• Wireless access technologies
– Long range and short range
• Location-sensing technology
– Geofencing and micro-geofencing
• Content delivery protocols
• Middleware and Back-end architecture

11. Wireless Access
Technologies
• Long-range
– 1G or "first generation“, available in the 1980's,
analog, bandwidth and simultaneous user capacity
was limited.
– 2G - supported digital messaging (e.g. SMS, and
email).
– 3G- increase in speed over 2G, support for
multimedia.
– 4G - provide an entirely IP-based mobile network
increasing speed, especially with multimedia.

12. Wireless Access Technologies
• Short-range
– WiFi – family of IEEE 802.11 IP networking
– Bluetooth – wireless personal area networks
– RFID – Radio frequency identification

13. Location-sensing technology
• Geofencing technology
– A virtual perimeter around a
particular location using a
location-based service such
as GPS
– GPS receivers first added to
mobile phones around 2006
– Within 2-15 Meter accuracy
outdoors

14. Location-sensing technology
• Micro-geofencing technology
– Indoor real-time location sensing
– Accuracy to within 3 feet
– WiFi or Bluetooth enabled

15. Content Delivery Protocols
• SMS- Short Message Service
 Supports text messages up to 160 characters
 Usage in business
 Example: retail and restaurant discounts when
users text to company phone number
 MMS- Multimedia Message Service
 Video, Images and Audio
 WAP – Wireless Access Protocol
 Uses a WAP browser and Wireless Markup
Language (WML)

16. Middleware and Back-end
• Similar to e-commerce architecture
• Web, Application processing and DB
servers
• SMS and WAP Gateways

17. Overview of a Wireless Network
A “wireless” network is largely wired
Access Network Core Networks
PSTN
BTS
Internet
BSC MSC
BTS
Other
Nets

18. Overview – The
COmponents
• Access Side
– BTS – Base Transceiver Station
• The only wireless hardware in the network
• The radio frequency portion of the voice/data path
– BSC – Base Station Controller
• Handles the traffic/signaling between the mobile
device and the core switching side
• Core Network Side
– MSC – Mobile Switching Center
• Responsible for the routing of traffic and providing
services for the mobile device-voice, data, fax,
SMS, call forwarding, voice mail, etc.
– PSTN – Public Switched Telephone Network
• Network of the world's circuit-switched telephone
networks, much like the Internet is the network of
the world's packet-switched networks

19. M-Commerce Architecture

20. Business-to-Consumer
Applications
• Mobile Ticketing
• Information Services
• Travel and Leisure
• Mobile Entertainment
• Healthcare
• Retail and Restaurants – coupons, bargain
hunting, auctions
• Banking and Financial Services
• Payment
• Mobile Marketing and Advertising

21. “Apps”
• Now more free apps available for Google's mobile OS than the iPhone, at 134,342 to 121,845.
• There are a few things to consider here:
• with free iPad-only apps, the total number of free iOS apps increases to 132,239.
•Apple's has a rigorous vetting process, which has probably played a role in its numeric slippage
• this report doesn't highlight things like
•legality,
•Repetition
•the overall number of apps dedicated to making farting noises.
• Apple has a lot more premium apps, giving it the overall lead at 333,124 to 206,143
• between Android's rapid growth iOS's relative stagnation, expect Google to take the top spot in five months
Source: Netherlands-based mobile analytics group Distimo

22. Apps

23. Mobile Ticketing
• EBay’s Stub Hub
– Consumers can buy and sell tickets to sports, music and theatre
events via an Android application
• Fandango
– consumers can buy, cancel or enquire about availability of tickets
directly on the mobile devices.
Mobile ticketing
transactions are
forecast to exceed
$100 billion

24. Information services
• Companies are deploying
applications to allow consumers
to gain access to information
from a wide spectrum of sources
which are then conveniently
delivered to mobile phone users.
• Some of these services include
news, stock prices, weather,
fashion, book reviews, sports,
finance, entertainment news etc.

25. Travel and Leisure
• American Airlines -
book flight and keep up
to date with travel
information.
• Moabite is offering a
wide range of options
for consumers that are
looking to book hotel
rooms via their mobile
devices.

26. Entertainment: Content
purchase and delivery
• MobiTV Inc is a global
television and digital radio
service provider for mobile
phone users.
• Redbox – find a movie,
select a location, reserve

27. Healthcare
• Mobisante - smartphone-based ultrasound
system dubbed “MobiUS.
• Improve patient care by providing increased
accessibility to information and services.
• Physicians order prescriptions, look up
patient data and health information.
• Similarly, there are applications for tracking
and inventory for healthcare industry.

28. Mobile coupons/loyalty cards
• Groupon – browse deals,
purchase, senses your
location, redemption
• Present coupon or
voucher via the mobile
device at the time of the
transaction
• Best Buy – scan loyalty
card bar card from phone

29. Retail sales/online catalogs
• Many companies have mobile
applications for selling merchandise via
mobile devices
• Companies have even provided access to
the entire catalogs for the consumers to
allow for easy access to shopping
anytime and anywhere.
• Retail sales on mobile devices is
increasing everyday.

30. Restaurants and Food
Services
• Five Guys Burgers & Fries - mobile
ordering application
• Domino’s Pizza - ordering application
• Yellow Pages - local search experience
– access to information about a variety of food
choices merged with coupons and special
deals
• Urbanspoon and Yelp

31. Mobile banking, tax and
financial services
• 13.2 million people during April, 2010
– 70 percent increase over a year ago.
• PNC Bank – view balances and transactions, move money
between accounts, pay bills
• Merrill Lynch – view portfolio, trade stocks and mutual
funds, track market news
• H&R Block – tax advise, estimate refund, checklists

32. Marketing and advertising
• Glamour & Gap
– Styleite - reality show
for the iPad
– Retailer’s new spring
collection featured
– Readers can buy via
the application

33. Bargain Hunting
• Price Grabber - consumers set
price alerts and check local
sources
– “Smart Shopping. Anytime,
Anywhere!”

34. Bar-code scanning
• RedLaser and ShopSaavy
 iPhone and Android scanning application
 Users can scan bar codes and QR codes
 Interfaces with TheFind.com - determine best
price
 Has been downloaded 8 million times to date

35. Payment
• Paypal
• Bump
• Square
• Visa

36. Square Up

37. Privacy and Security Issues
• Privacy concerns
 E-commerce targeted marketing historically possible
via cookies
 M-commerce takes this to new level with GPS tracking
 Concerning: even travel patterns are analyzed by marketing
departments
 Best practice for corporations to email their privacy policy to
consumers
• Security concerns
 Potential for an attacker to intercept request in order to
obtain location coordinates, or other personal data
 Importance of encryption, usage of certificates

38. Future Trends
• By 2015, shoppers will spend about $119 billion
on goods and services bought via their mobile
phones
– ABI Research released in 2010
• By 2014, the collective worldwide value of
payment transactions via mobile devices would
quadruple from $170 million to $630 billion
– Juniper Research estimates