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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 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 A Bird-Eye View of M-Commerce Outline M-Commerce: Introduction Key Issues/Concerns LIVES as applied to M-Commerce Video Clip Conclusions 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 Popular M-Commerce Uses Mobile Banking Mobile stock trading Mobile ticketing Digital Wallet Mobile Coupon M-Commerce Value Convenience Anytime and anywhere access Personalization and localization Flexibility Ubiquity Who is using it? USA, Canada Europe (France, Austria, Germany, Finland, United Kingdom, etc.) Asia (Japan, etc.) Now, worldwide (China, etc ) M-Commerce Hurdles Technical Challenge Security and Privacy Demography Usability Governmental policies and regulations M-Commerce Hurdles (in the past) Screens too small and difficult to read Slow internet speeds Difficult text entry Cost of mobile services The Mega Trends for Internet Interaction Connected Group Reed Law (2n) ? Level of Interaction Individual Metcalfe Law (n2) Smart Content Content User Information User Generated Content 12 Consumer products 10 710 11 10 Industrial Vehicular telemetric 10 10 Residential Computers & commercial buildings Shipping automation logistics 50 Years Time Some Specific M-Commerce Issues Electronic Payment System (Smartcards) Marketing/Advertisement and Hospitality (LIVES) 23 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 • • E-cash benefits – – • Privacy - hides account information from vendors Convenient if seller cannot process a credit card Smartcards – 24 Best-known e-cash provider Credit cards with embedded microchips that can store and process data and can be used as electronic wallets Learning Through Mobile Technologies 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) http://lives.cs.ubc.ca 25 Dr Son Vuong LIVES Mobile Corp Spin-off from University of British Columbia 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) LePlaza EVENT LePlaza – Location-based recommendation Visions on M-commerce Is it happening? Will it meet expectations? Predicted to boom !? 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 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 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” The best way to predict the future is to invest it Questions and Discussions [...]... buyer and sellers Advertising: web advertising providing advertising messages Infomediary: collecting and disseminating information 17 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 18 Traditional vs New Business Models Traditional... Types of M- Commerce Applications Methods for delivering M- Commerce services Directly from cell phone service providers Via mobile Internet or Web applications 16 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 Kinds of business models Brokerage: market makers... appeal, availability, etc Purchase decision Message selection (medium and content) Information Search Evaluation of Alternatives Purchase Purchase Decision Post-sales support – Order tracking – Customer service Education on flowers and decoration Post sales perks Satisfaction PostPurchase Loyalty Disposal 21 Metrics Metrics: If it moves, measure it! Measures of performance; may be quantitative... from University of British Columbia 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) LePlaza EVENT LePlaza – Location-based recommendation Visions on M- commerce Is it happening? Will it meet expectations? Predicted to boom !? M- Commerce. .. Mass Manufactures push Middleman Personalized Customer Pull Direct Communications Closed Open Finance Slow Difficult Local Mass Physical Fast Easier Global Niche Virtual Production Markets Assets 19 Consumer Decision Process Consumer Decision Process Problem - Recognition PRE-PURCHASE Information Search Evaluation of Alternatives PURCHASE Purchase Decision Satisfaction POST-PURCHASE Loyalty Disposal... !? 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 M- Commerce Future Likely to succeed if Internet speeds are... Consumer Decision Process — Flower Example Flowers Problem - Recognition Pre-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,... quantitative or qualitative Response times Site availability Download times Timeliness Security and privacy On-time order fulfillment Return policy Navigability 22 Some Specific M- Commerce Issues 1 Electronic Payment System (Smartcards) 2 Marketing/Advertisement and Hospitality (LIVES) 23 Electronic Payment System • proximity payment system – • allows customers to transfer funds wirelessly... 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 • • E-cash benefits – – • Privacy - hides account information from vendors Convenient if seller cannot process a credit card Smartcards – 24 Best-known e-cash provider Credit cards... 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 They believed it… (Schoemaker, 1995) Thomas J Watson, chairman of IBM, 1943 “I think there is a world market for about five computers”