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
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
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
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
27.
28.
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)
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