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
Smartphone Market Share
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)
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)
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
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
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
Wireless Access Technologies• Long-range – 1G or "first generation“, available in the 1980s, 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.
Wireless Access Technologies• Short-range – WiFi – family of IEEE 802.11 IP networking – Bluetooth – wireless personal area networks – RFID – Radio frequency identification
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
Location-sensing technology• Micro-geofencing technology – Indoor real-time location sensing – Accuracy to within 3 feet – WiFi or Bluetooth enabled
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)
Middleware and Back-end• Similar to e-commerce architecture• Web, Application processing and DB servers• SMS and WAP Gateways
Overview of a Wireless Network A “wireless” network is largely wiredAccess Network Core Networks PSTN BTS Internet BSC MSC BTS Other Nets
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 worlds circuit-switched telephone networks, much like the Internet is the network of the worlds packet-switched networks
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
“Apps” • Now more free apps available for Googles 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. •Apples has a rigorous vetting process, which has probably played a role in its numeric slippage • this report doesnt 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 Androids rapid growth iOSs relative stagnation, expect Google to take the top spot in five monthsSource: Netherlands-based mobile analytics group Distimo
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
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.
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.
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
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.
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
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.
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
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
Marketing and advertising• Glamour & Gap – Styleite - reality show for the iPad – Retailer’s new spring collection featured – Readers can buy via the application
Bargain Hunting• Price Grabber - consumers set price alerts and check local sources – “Smart Shopping. Anytime, Anywhere!”
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
Payment• Paypal• Bump• Square• Visa
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