ORACLE by ewghwehws


									Mobile Business (M-Business):
         The Race to Mobility

    Professor Jason C.H. Chen
 School of Business Administration
        Gonzaga University
        Spokane, WA 99258
                   What’s in IT for Me?
For Accounting
  Information systems capture, organize,
   analyze, and disseminate data and
   information throughout modern organizations
For Finance
  Information systems turn financial world on
   speed, volume, and accuracy of information

   What’s in IT for Me? (continued …)

 For Marketing
  The Internet and the World Wide Web have
   opened an entirely new channel for marketing
   and provided much closer contact between the
   consumer and the supplier (CRM)
For Production/Operations Management
  Every process in a product or service’s value
   chain can be enhanced by the proper use of
   computer-based information systems

                                 What’s in IT for Me?
 For Human Resource Management
  Employees can handle much of their personal
   business themselves, and the Internet makes a
   tremendous amount of information available to the
   job seeker
For Management Information Systems (MIS)
  The opportunities for those planning a career in MIS
   grows as fast as the adoption of information
   technologies into organizations everywhere
   MIS is an integral part of business operations, whereas, the database is
   the core component to improve and/or enhance the business operations.
   E-commerce on the Internet increases. Business- to-consumer
    commerce reaches beyond early adopters. Business-to-business e-
    commerce achieves substantial volumes in certain companies.
   Initial signs of the explosion of business-to consumer e-commerce, to
    continue the following two years.
   Consumer-to-business e-commerce is accepted and forces companies
    overall - including those who are not IT-savvy-to offer e-commerce
   E-commerce is a natural part of our society, integrated into all facets
    of day-to- day communications.
         Reasons for the explosion of e-
              commerce in 2000-2005

 Sufficiently improved infrastructure (commerce,
 Deregulation
 Integration of e-commerce into existing systems
 Generations X and Y enter the workforce
 Merchants learn how to sell electronically
 Inexpensive access devices available
(USD 100–200)
 New distribution companies in place
               eBusiness Key Concepts
  The overall strategy of how to automate old business
   models with the aid of technology to maximize
   customer value and profits.
  The process of buying and selling products and services
   over digital media
eCRM (eCustomer Relationship Management)
  The process of building, sustaining, and improving
   eBusiness relationships with existing and potential
   customers through digital media

                           Mobile e-Commerce
Mobile e-Commerce can be defined as a value added
service that enables end-users to conduct reliable, secure
financial transactions that involve trade or payment.
Mobile e-commerce services can be classified into
categories such as banking, trading, reservations and
ticketing, shopping, and games and gambling.

                             Why m-Business?

“So prepare to disconnect. Anything
 tethered, anything not responding faster
 than our fingertips, anything not online all
 the time will soon be ancient history.”

Upside Magazine, Feb. 2000

                        Why Go Mobile?

Mobilization promises significant and quick
 ROI, because it offers two strong value
  getting more from current available
   information and using that information to
   generate revenue, decrease per transaction
   costs, and
  improve professional and personal
                          Mobile Benefits

Anytime, anywhere access to information
 presents incredible opportunity for business.
  increases business volume,
  improves customer relationships,
  leverages existing infrastructure investments,
  streamlines internal processes.
                                                    11   N
                            Why m-Business?
To be a market leader, a company must successfully
 navigate the tumultuous sea of technology to
 position itself for future prosperity.
   As company leaders catch their breath form the Internet’s
    storm, new clouds from on the horizon: wireless and
While many companies have some notion as to how
 to address broadband, this is often not the case with
   A company must not ignore its wireless strategy; it must
    formulate a wireless course before the storm arrives.
                                                          12    N
                  Mobilization: Business
Mobilization means breathing new life into a
 traditionally stationary and rigid enterprise -
   it means leveraging and extending information and
    functionality to and from your enterprise, enabling
    accelerated decision.
   It encompasses both the person and the machine, but is
    emphasis is extending business resources to all touch
    points within an organization.
The right mobilization solution allows information
 and processes to be dynamically extended to both
 mobile and embedded devices
                                                         13   N
                The Adaptive Enterprise
In the Adaptive Enterprise:
   Technology adapts to how humans work -
    pervasively, not invasively.
   Collaboration is supported at all touch points within
    the workflow.
   Enterprise resources are extended securely to any
   Distance and time cease to be barriers to
   The mobile-enabled enterprise is able to accomplish
    more in less time.                                   14
        Most Challenging Questions

Is mobile business going to happen?
What form is it going to take and how do
 we use the technology to continuously
 innovate and improve?
  M-business is not a business fad tied to a single method
  or strategy, but rather the next step in the technology
  It is simply a way for improved customer interaction and

  new operational efficiencies.
  It builds on all the investment in e-business.
   From “not-obvious” to “obvious”
What is not obvious are:
  how the current landscape of enterprise applications
   will evolve and,
  where the opportunities are in the near and long term,
  what new value propositions will companies look to
   create in their never-ending quest to become more
   competitive and customer-focused?
  How can companies further improve internal operations
   and employee processes.

   From “not-obvious” to “obvious”

It seems intuitively obvious that e-business
 is evolving from a tethered PC-centric
 model to a multi-device, multi-channel, and
 mobile person-centric model (m-business).
How an organization mobilizes itself into
 constructive action will determine its
 ultimate success.

                                           17   N
                     Customer Priorities
Historically, the emergency of new customer
 priorities and expectations resulted in new
 business opportunities and market structures.
Changing customer priorities weaken existing
 industry structures often forcing change.
Mobility will change customer interaction in
 unforeseen ways and place traditional profit and
 revenue models on uncertain ground and at
 potential risk.
                                                    18   N
      Structural Migration: Natural
The emergence of the mobile Internet capable of
 of interconnecting numerous devices and multiple
 information webs represents a global megatrend.
It represents a new phase in enabling the
 knowledge workers.

   Technology             M-Business

     Structural Migration: Natural
The emergence of the mobile Internet capable of
 of interconnecting numerous devices and multiple
 information webs represents a global megatrend.
It represents a new phase in enabling the
 knowledge workers.

    M-Business                 Wireless

       Structural Migration: Market
Five key developments for IT industry to be
 broader and healthier:
   huge advances in the infrastructure
   advances in software,
   abundant capital,
   a more interested consumer,
   the burgeoning demands of real-time business.
 Mobility means fully portable, real-time access to the same
  information resources and tools that, until recently, were
  accessible only from your desktop.
     Figure 1

1. System integration and 2 business reengineering - required a
major internal retooling of the corporation
-- auto industry, cost-cutting, restructuring, and reengineering
since 1995, three major structural shifts in rapid succession: e-
commerce, e-business, and m-business.
The structural changes caused by these shifts are not restricted to
the four walls of the enterprise but have impacted the boundaries of
the enterprise.
3)e-commerce has had tremendous impact on how companies interact with their
4)e-business has had similar impact on the supplier and employee side
5)m-business is too early to definitely say that will have even more impact
M-business is unique since its effects are going to be evident at three levels:
a)infrastructure and devices,
b) applications and experiences,
c) relationships and supply chains.
Mobile applications will change the way we all
 live, play and do business.
Evolution of business models
   Phase 1 -- the user going to the computer’s location
   Phase 2 -- the computer is wherever the user is (person-
“Empowering people through great software
 anytime, anywhere, and device.”
                                                          23   N
               eBusiness Key Concepts
  The overall strategy of how to automate old business
   models with the aid of technology to maximize
   customer value and profits.
  The process of buying and selling products and services
   over digital media such as Internet.
eCRM (eCustomer Relationship Management)
  The process of building, sustaining, and improving
   eBusiness relationships with existing and potential
   customers through digital media

    From e-Business to m-Business
e-Commerce and e-business applications envisioned and
 developed assume fixed or stationary users with wired
  refers to business (buying and selling) transactions conducted
   over a wireless device such as a cell phone or PDA.
  is the application infrastructure required to maintain business
   relationships and sell information, services, and commodities
   by means of the mobile devices.
  a logical extension of e-business to address new customer
   channels and integration challenges.                      25
  Businesses must effectively use 3
                     key resources
              information       people

       to serve each customer
     Database and its Implications

MIS is integral to success of the business
 because it integrates the data and processes
 that constitute the essence of the business.
The database is the core component to
 improve and/or enhance the MIS and
 business operations.

                          Mobile Economy
The mobile economy (m-economy) is both
 inevitable and imminent.
Business are at the threshold of an innovation tidal
 wave offering unforeseen technical and process
The m-economy is facilitated by the convergence
 of Internet, e-business, and the wireless world
 where customers can go online anytime,
 anywhere, and using any device.
                                                   28   N
                   The Meaning of Mobile

Mobile but offline
   use the device to run self-contained programs
    while not connected to the Internet.
Mobile but online (called wireless)
   real-time live Internet connection via satellite,
    cellular, or radio transmitters
 The user is able to work offline without the need for a live
 M-business covers both online and offline scenarios.
   Mobile Business: The Quest for
                      New Value
Applying mobile access to computing creates both
   tremendous commercial opportunity and
   complexity simultaneously.
In the face of such as large-scale structural
 change, entrepreneurs, corporate managers, and
 investors alike must act quickly and proactively to
 design their strategies for addressing the
 complexities of real-time business

                                                   30   N
             Wireless (M-Business) Strategy

“Wireless devices are becoming key enablers of
 mission-critical, e-Business applications. In the
 future, the question will not be whether a business
 professional has a mobile device but rather, how
 these devices and the applications that run on
 them help fulfill key aspects of an enterprise’s
 business strategy.”

Scott Weisss, Analyst, Hurwitz Group

Wireless (M-Business) Strategy (cont.)

To develop a wireless strategy, companies should
 take a comprehensive look at their entire value chain
 and look for opportunities to enhance customer
 value and streamline internal processes.
To formulate wireless strategies, companies need to
   how value is created for customers and
   how it is delivered.

                                                  32     N
  Wireless (M-Business) Strategy (cont.)
Wireless strategy’s guidelines for early entrants into
 wireless are:
   Take a broad view of wireless across your entire organization -
    from customers to employees to internal processes.
   Use wireless as an enterprise tool, not merely as a service for end
   Don’t wait for technical standards to be defined. Wireless is not
    about technology; it is about finding new ways to define value for
    customers and internal users.
   Take a portfolio approach in creating multiple offerings across
    different customer segments.
   Don’t be afraid of falling short of early expectations - this is part
    of the learning curve.
   Don’t worry about return on investment. Yet.                      33  N
                         M-Business Strategy
In define their m-business strategy, the key first step
 for each of these players is to assess where the most
 value is created and captured.
   Entrepreneur - the greatest value is created during the
    innovation phase by being first to market with new value
   Investors - value is created I both phases
       new market leaders (e.g., the next Cisco)
       new value leaders (e.g., the next Schwab)

                                                         34    N
     Computing Industry Evolution
Four major shifts in the computing industry, from
   the mainframe to
   the minicomputer, to
   the PC, now to
   the handheld
the change from
   centralized to
   decentralized, now to
   networked computing
                                                 35   N
                        PC Industry Evolution
 In the PC industry’s early         The PC industry
  years                               transformation can be
    value was placed on              measured by three factors:
     hardware/infrastructure            the rate of change in
     products and services               product development,
 then                                  process creation, and
    to enabling technologies           organization renewal
     such as operating systems,
     and software and services
     for managing the interactive
 ultimately
    to programming, content,
     and aggregation.                                              36
  E-Commerce Industry Evolution
In the e-Commerce early years
   value was placed on network infrastructure and dial-up access
    products and services (Cisco, US Robotics)
   building on the network developments, the industry’s access
    providers (AOL) experienced significant growth.
Software enablers
   such as browser providers (Netscape, OpenMarket)
e-Commerce enablers search engine and security
 offerings such as Yahoo and Verisign
   it prepared the foundation for the Internet applications, content,
    and programming                                               37
Learning from e-Commerce Fruit
The m-economy is evolving in a very similar way
 to the e-commerce wave.
While the m-economy is exciting, not all promises
 will come to pass.
In recent years, the mobile Internet has lifted
 expectations way too high, while reality has
 lagged considerably.
The rise and fall of the e-commerce revolution is a
 caution against too quickly denouncing the old
 and thoughtlessly embracing the new.
                                                  38   N
 Pitfalls m-Business should Avoid
Speed kills
   companies were always planning for the next round of
   A recipe for disaster
fashion and glamour don’t make a business
   creating a sustainable business takes a lot more than
diffusion of innovation takes time
   involves some degree of social, economic, company,
    and individual dislocation
          Seven Main Business Areas for
                  Emerging Companies
1. Network Infrastructure
  companies providing the hardware, fiber networks, wireless
   communications towers, and satellite networks to enable the
   convergence of telecommunications and IP networks.
2. Access
  companies selling dial-up and/or dedicated network
   connections to provide mobile access to Web services.
3. Content
  companies providing everything you see when you go online.
  Including both “portals and syndicators,” which organize,
   aggregate, and provide access to content created by other
   companies.                                              40
        Seven Main Business Areas for
          Emerging Companies (cont.)

4. Commerce
  companies selling merchandise or information, or
   facilitating the matching of buyers and sellers.
5. Software
  companies selling software to facilitate inter- or intra-
   enterprise communication and commerce
  including OS, security and applications software
   customized by wireless world.

        Seven Main Business Areas for
          Emerging Companies (cont.)
6. Hardware
  companies selling hardware like handheld PCs or networking
   equipment to facilitate mobile applications.
  Including complementary markets, namely PCs, servers,
   semiconductors, and telecommunications service equipment
   which will benefit indirectly a hardware company’s success
7. Applications
  companies providing a wide variety of services necessary in
   the online ecosystem
  including hosting, application rental, transaction processing,
   databases, consulting, design and implementation.
    Seven Main Business Areas and
   their Business (Revenue) Models
   Business                                Business Models
1. Network       Hardware sales or leasing to telecommunication companies. E.g.,
Infrastructure   Ericsson, Motorola, and Alcatel.
2. Access        Monthly fees which are determined by the speed of the connection
                 and/or the volume of data flowering through it. E.g., Palm.Net, AT&T
3. Content       Advertising and subscription fees. E.g., Yahoo!, Infospace
4.               Resembles that of a retailer or auctioneer. Commerce companies
Commerce         operate in three arenas: C2C (eBay), B2C (, B2B
5. Software      Software license fees, software maintenance fees, consulting services,
                 and increasingly, software hosting and operation services. E.g.,
                 Qualcomm, Microsoft
6. Hardware      Selling hardware directly to users or network operators. E.g., Compaq,
                 HP, and Sun Microsystems
7.               Software license, “per click” transactions, time and materials, or
Applications     subscription fees. E.g., Aether, Air2Web, ad Mobilicity

               Solution Phases for Mobile

The seven main business areas will have to come
 together to create value for customers.
Customer value creation will most likely occur in
 five solution phases based on continuous
 improvements in mobile technology.
   1. Messaging
   2. Info-connectivity
   3. Transactions
   4. Transformation
   5. Infusion
                                                     44   N
                  Solution Phases for Mobile
                           Businesses (cont.)
1. Messaging
   the ability to interact with others
2. Info-connectivity
   the ability to access and retrieve information from the Web
   at a minimum, wireless browsers should become
    commonplace before this phase takes off.
3. Transaction
   business transactions begin to take place via the mobile
   the customer is a different entity in the mobile business model.
                                                              45   N
               Solution Phases for Mobile
                        Businesses (cont.)

4. Transformation
  the interconnection of business processes both
   internally and externally between organizations.
5. Infusion
  the company absorbs mobility into its way of doing
  Infusion requires a shift from a culture in which
   technology is merely occasionally present, to one in
   which technology is an accepted part of business.

                                                          46   N
Framework of Mobile Applications and Convergence

                                Leverage existing Web
                              infrastructure investment       Employees,
               opportunity                                    Suppliers,
                             Extend the reach of their Web-       and
 Wireless                                                      Business
                             based applications and content
Connectivity                                                   affiliates
                               to their mobile customers,
                               employees, suppliers, and
                                    business affiliates

                                     Mobile Market
Just like the the Internet infrastructure build-out,
 the mobile infrastructure build-out will be gradual.
The market will be composed of companies that
 are addressing different problems:
   Mobile Data Networks
       How to increase coverage?
       How to increase wireless data bandwidth?
       How to increase capacity of existing networks?
   Mobile Internet Infrastructure
       How to create new technology that enables the convergence of
        telecommunications and IP networks?
                   Mobile Market (cont.)
Mobile Internet Infrastructure (conti.)
    What transmission protocols and content languages are
     required to make this happen?
Mobile Internet Service Providers
    How to provide mobile connectivity to the masses?

            From Time-sharing to the
                   Embedded Model
One certainty about the PC’s future: It will
 become increasingly portable.
The most successful appliance will be easy-to-use,
 task-oriented devices that leverage the benefits of
 Internet access to enhance their core functionality.
Access providers will need to bundle and update
 relevant content or service with their appliance in
 an effort to attract and retain subscribers.
Clearly, new business models are needed.
  M-Business: What Stage Are We In?
 Business models for competing in                  The wired Internet
  the m-economy are in the early                     industry had to address
  stages of development.                             similar issues, including
 Reports criticized the mobile                         busy signals
  industry for                                          the World Wide Wait, and
                                                        insecure browser
     not having resolved issues of low
     differing communications and                  The issues the mobile
        equipment standards,                         industry faces are
     the presence of multiple carriers, and         significant, but they
     a myriad of devices                            are also normal
    all of which decrease the ability of service     growing pains for
        companies to present users with a            every technology.
        satisfying experience.
 Building infrastructure takes time.                                        51
             Technological Visions ...
Technological visions often suffer from an
 enthusiasm that conveniently overlooks the
 practical reasons why they won’t actually happen
 as quickly as the promoters would like them to.
To overcome this vision-to-reality mismatch, it is
 important to understand where the technology is in
 the diffusion curve - a kind of social change,
 defined as the porcess by which an innovation is
 adopted through certain channels over time.
       Phases of Technology Diffusion

The technology diffusion curve has several key
The mobile technology will be anticipated to
 follow a similar pattern.
         Phases of Technology Diffusion

 1. Visionary phase - technology is a novelty
    it sounds great, but do not know what to do with it.
    Entrepreneurs anticipate new opportunities and create value
     propositions to address perceived gaps in the marketplace.
    Few companies make money from technology, at least not initially.
 2. Missionary phase
    executives (IT managers, R&D geeks, and “radical” employees)
     are the typical buyers of the new technology.
    They see business value that other cannot.
    They preach the vision to others in their company -- emerging
     technology enable consumers to have ubiquitous access to
        whatever content and applications they want,
        where and when they want them.                              54   N
         Phases of Technology Diffusion

 3. Ordinary phase
    mainstream users (e.g., consumers and corporate officers) begin to
     see value in the technology.
    due to increasing use of the devices, they are no longer novelties or
     innovation but are becoming increasingly mainstream tools for
     conducting m-business.
    Previously isolated “islands of technology” will be connected
     providing users with an expanding stream of rich digital content.
    M-business increases its market penetration because it improves
     productivity while building on prior e-commerce investments.
    The m-commerce infrastructure is the logical extension of these
     previously installed technologies into new areas.

         Phases of Technology Diffusion

 4. Commodity markets
    are represented by technology such as PCs.
    Increasingly, cell phones are categorized as a commodity
     technology -- it is true on the voice side.
    On the data side, many mobility applications are still in the
     visionary phase.
 5. Maturity
    is represented by technology such as printers and fax machines.
    It represents a market where little or no innovation is taking place.
    Mature markets, such as long-distance telephone carriers, are
     usually characterized by consolidation with a few players
     jockeying for market share.
                                                                         56   N
                                   THE E-COMMERCE TRANSACTION CYCLE

 (1) ATTRACT                                                    (8) PERSONALIZE
Transactions don’t happen without first luring customers        Each time customers click into an E-commerce Website, the site
into an electronic marketplace. Web marketing services          should learn something more about them. Personalization
and technologies deliver targeted audiences to E-               technologies such as collaborative Filtering and data-mining
commerce sites. Some manage affiliate marketing                 capture every bit of customer data, Analyzing patterns of
programs, others serve targeted web advertising                 behavior to ensure that the next interaction with the customer is
                                                                a better one.

  (2) INFORM                                                     (7) DELIVER
 Once customers arrives at a website, they need to be            Fulfillment and delivery systems take over once the
 served relevant contents. Dozens of companies                   goods have been paid for, and E-commerce vendors are
 Develop tools that act as content mediators, allowing           increasingly turning to outsourced supply-chain
 Commerce vendors to outsource content generation,               management systems for order fulfillment and supply
 Management, and delivery.                                       and demand forecasting.

 More and more, customers must configure and assemble            (6) INTERACT
 combinations of components and options that do into a           Once a transaction is complete, support begins. Customers
 product, from PCs to tractors. Configuration engines now        need information, advice, problem resolution, and orders
 enable this self-service mix-and-match process by enhancing     status updates. New customer-interaction platforms
 component databases with the digital logic and rules capable    are emerging for call centers, live online customer service,
 of ensuring that everything the customer wants can indeed be    order tracking, and other channels.
 Ordered, assembled, fulfilled, and delivered.

                                                                  (5) PAY
(4)TRANSACT                                                       Your online buck stops here, goods and services must be
At the heart of the E-commerce transaction is a market-making     paid for, Using credit, debit, or cash. The payment and
platform to get buyer and seller to close the deal. Ever more     financing functions of online transactions have opened
sophisticated platforms for E-commerce-catalog, auction,          doors for companies which develop realtime credit
exchange, and now barter models-are bringing multitudes of        underwriting engines, or offer a payment server solution for
buyers and sellers together to transact.                          credit and debit card transactions.
                                     A Final Thought
 “Yesterday is not ours to recover, but tomorrow is ours to win
  or lose.”
     -- Lyndon B. Johnson
 With technology-enabled business models, strategic
  opportunities can shift like the wind, making timing crucial.
    Many successful companies such as Microsoft and Sony are
     transforming themselves while simultaneously creating a shared
     picture of the mobile future.
 When there is genuine vision, people excel, not because the
  vision statement tells them to, but because they believe in the
  Does your company have a vision of what it will be like to do business
  in a mobile economy?
             And Now and the Next ...
As we have seen, there is significantly more that
 can be reaped from mobile communications than
 just conversation.
Mobile technology has the ability to literally
 transform organizations and significantly increase
 overall enterprise productivity, adaptability, and
The right mobile technology can substantially
 increase the value of an organization.
  Conclusion – the battle has begun
Wireless portals have a much stronger business
 case than the old fixed-line portals:
   revenue forecasts are much higher
   stickiness much higher
The mobile operators seems to be the obvious
   But, old stodgy organisations have often failed when
    new fast-moving players grab the new market
   Wireless Internet is today as the fixed internet in 1995.
    Start-ups today can be the new Amazons and Yahoos of

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