A bird eye view of m-commerce Vương Thanh Sơn

1. A Bird-Eye View of M-Commerce
Prof. Dr. Son Vuong
Director, Networks and Internet computing Laboratory (NICLab)
Computer Science Department
University of British Columbia
Vancouver, BC Canada
Email: vuong@cs.ubc.ca or stvuong@gmail.com
Hoi Thao ve TMDT, DH Kinh Te Luat
HCMC, 30/11/2012

2. 2
Prof. Dr. Son Vuong’s Bio Sketch
 BSEE Cal State U, Sacto, MEng CarletonU, PhD, U. Waterloo
 Lecturer/Assistant Professor, U Waterloo, 1980-82
 Joined UBC/CS since 1982
 Director of Networks and Internet Computing Lab (NICLab)
 (Co)Author over 200 papers, Supervise 80 MSc/PhD theses
 Co-edited three books, including “Recent Advances in Distributed
Multimedia Systems” published in 1999
 Co-Leader of $30M CAD GISST NCE Proposal (2000)
 (Co)chair and (Co)organizer of 10 international conferences
(NCAS’11, Multimedia’08, DMS’08, NOMS’06, DMS'97, ICDCS'95,
PSTV'94, FORTE'89, IWPTS'88).
 Consultant for the Canadian Government: Department of
Communications (DOC), Department of Industry (DOI)
 Board of Directors for companies, including Confederal Networks
(ConfedNet) and LIVES Mobile Corp.

3. Outline
1. M-Commerce: Introduction
2. Key Issues/Concerns
3. LIVES as applied to M-Commerce
4. Video Clip.
5. Conclusions
3
A Bird-Eye View of M-Commerce

4. Mobile Commerce (M-Commerce)
 A form of e-commerce
 performed on the internet using wireless
devices such as
 Handheld computers (tablets), cell phones
(smartphones), dashtop computers (embedded in
automobile dashboards)
 Presents unique opportunities and challenges
4

5. Popular M-Commerce Uses
 Mobile Banking
 Mobile stock trading
 Mobile ticketing
 Digital Wallet
 Mobile Coupon

6. M-Commerce Value
 Convenience
 Anytime and anywhere access
 Personalization and localization
 Flexibility
 Ubiquity

7. Who is using it?
 USA, Canada
 Europe (France, Austria, Germany, Finland,
United Kingdom, etc.)
 Asia (Japan, etc.)
 Now, worldwide (China, etc. )

8. M-Commerce Hurdles
 Technical Challenge
 Security and Privacy
 Demography
 Usability
 Governmental policies and regulations

9. M-Commerce Hurdles (in the past)
 Screens too small and difficult to read
 Slow internet speeds
 Difficult text entry
 Cost of mobile services

10. The Mega Trends for Internet
Information
Time
LevelofInteraction
Interaction
Content
User
Individual
Metcalfe Law (n2)
User Generated
Content
Connected Group
Reed Law (2n)
Smart
Content
??
0 50 Years
107 Computers108 Vehicular telemetric109 Residential & commercial buildings1010 Industrial automation1011 Shipping logistics
1012 Consumer products

11. The End State of Connectivity
Ubiquity and Mobility
Connected Mobility 24/7
200 Millions
(5B
downloads)
3 Billions

12. Connected Devices
Tablet and Smartphone
Laptop and Cellphone
The Rise of Mobile Broadband
To enable x10 (speed) x10 (devices) x10 (industries)
Anything that can be connected
will be connected

13. Mobile Broadband Landscape
Cellular Wireless Law of Speed vs. Decade
30 Years
1G
2G
3G
4G
5G
Mbps
kbps
bps
Mbps
kbps
bps
Gbps
20202010200019901980
AMPS
?
AMPS
? Cell size shrinks Ce
count increases
1
4
16
50
Mobile device
for everything
Time
10G
100G
1T

14. 14
E-Commerce Business Model

15. E-Commerce: Business Models Issues
 Possible Models:
 Slotting fees
 Wireless advertising (text)
 Pay per application downloaded
 Pay per page downloaded
 Flat-fees for service & applications
 Revenue share on transactions
 Trust issues between banks, carriers, and
portals
 Lack of content / services

16. Types of M-Commerce Applications
 Methods for delivering M-Commerce services
 Directly from cell phone service providers
 Via mobile Internet or Web applications
 Location-based m-commerce applications
 Using Short Message Service (SMS) text
messaging or Multimedia Messaging Service
(MMS)
 Using short-range wireless technology, such as
RFID
16

17. 17
Kinds of business models
 Brokerage: market makers bring together
buyer and sellers
 Advertising: web advertising providing
advertising messages
 Infomediary: collecting and disseminating
information

18. 18
Assessing a business model
 Can be assessed by looking at the
marketing strategy
 Can also be assessed by technology
- imitation
- complementary assets
 Financial measures
 Competitor benchmarking
 Market analysis

19. 19
Traditional vs. New Business Models
Traditional New Business
Production Mass Personalized
Manufactures push Customer Pull
Distribution Middleman Direct
Communications Closed Open
Finance Slow Fast
Difficult Easier
Markets Local Global
Mass Niche
Assets Physical Virtual

20. 20
Consumer Decision Process
Disposal
Loyalty
Satisfaction
Purchase Decision
Evaluation of Alternatives
Information Search
Problem - Recognition
PRE-PURCHASE
PURCHASE
POST-PURCHASE
Consumer Decision Process

21. 21
Consumer Decision Process — Flower
Example
Flowers
Disposal
Loyalty
Satisfaction
Purchase Decision
Evaluation of Alternatives
Information Search
Problem - Recognition
Pre-Purchase
Purchase
Post-
Purchase
 Need recognition, potentially triggered by a
holiday, anniversary or everyday events
 Search for ideas and offerings, including:
– Available on-line and off-line stores
– Gift ideas and recommendations
– Advice on selection style and match
 Evaluation of alternatives along a number of
dimensions, such as price, appeal, availability, etc.
 Purchase decision
 Message selection (medium and content)
 Post-sales support
– Order tracking
– Customer service
 Education on flowers and decoration
 Post sales perks

22. 22
Metrics
 Response times
 Site availability
 Download times
 Timeliness
 Security and privacy
 On-time order
fulfillment
 Return policy
 Navigability
 Measures of performance; may be quantitative
or qualitative
 Metrics: If it moves, measure it!

23. Some Specific M-Commerce Issues
1. Electronic Payment System (Smartcards)
2. Marketing/Advertisement and Hospitality
(LIVES)
23

24. Electronic Payment System
• proximity payment system
– allows customers to transfer funds wirelessly between their
mobile device and a point-of-sale terminal
• Electronic cash (e-cash or digital cash)
– Provides a private and secure method of transferring funds from
a bank account or credit card to online vendors or individuals
– PayPal
• Best-known e-cash provider
• E-cash benefits
– Privacy - hides account information from vendors
– Convenient if seller cannot process a credit card
• Smartcards
– Credit cards with embedded microchips that can store and
process data and can be used as electronic wallets
24

25. 25
Prof. Dr. Son Vuong
Networks and Internet Computing Laboratory (NICLab)
Computer Science Department
University of British Columbia
Vancouver, BC CANADA
In parnership with
the Commonwealth of Learning (COL) 1
Learning Through Mobile Technologies
http://lives.cs.ubc.ca

26. Dr. Son Vuong
LIVES Mobile Corp.
Spin-off from University of British Columbia

29. LePlaza:
A Location-Based Social Network System
= Facebook + Lattitude (Google)
• Location–based
• Distance-based search
• Event-centered with Location Based Personalized
Recommendation Service
(dining recommendation)

30. LePlaza
EVENT

31. LePlaza – Location-based recommendation

32. Visions on M-commerce
 Is it happening?
 Will it meet expectations?
 Predicted to boom !?

33. M-Commerce Future
 Will succeed as part of an integrated business
model.
 Will not replace traditional commerce but will
complement it. New business via mobiles.
 New way of marketing, customer care (hospitality)
 Will most likely be successful with small
transactions rather than big ticket items
 Ring tones
 Games
 Food
 Media

34. M-Commerce Future
 Likely to succeed if
 Internet speeds are increased
 Text input becomes more convenient
 e.g. Voice activated
 Security concerns are addressed
 Payment systems become more convenient
 Younger generation most likely to adapt
 As proliferation of people (farmers) becomes
exposed to Internet and Web access.

35. They believed it… (Schoemaker, 1995)
 Thomas J. Watson, chairman of IBM, 1943
“I think there is a world market for about five
computers”
 Ken Olson, President, Digital Equipment
Corporation, 1977
“There is no reason for any individual to have
a computer in their home”

36. The best way to predict the
future is to invest it


37. Questions and Discussions