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Real time mobile Commerce

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Real time mobile Commerce

  1. 1. REAL-TIME MOBILE COMMERCE R.K. SAHOO Would you buy gourmet foods, your valentine gifts ,luxury goods and accessories using your mobile devices anytime, anywhere, in a safe and convenient way?
  2. 2. WHAT IS MOBILE COMMERCE? Any transaction with a business value that is conducted via a mobile telecommunications network is referred to as mobile commerce. More precisely ,M-commerce is the emerging applications and services people can access from their internet enabled mobile devices such as smartphones,PDAs,ipads,and laptops. Mobile commerce has enabled people now to connect ,inform, interact and influence one another on a mobile platform anytime and anywhere. The main advantages of mobile commerce are convenience, instant connectivity, no prior knowledge of computers, no software installation or upgradation. 3/6/2013 2
  3. 3. MAIN DRIVERS OF M-COMMERCE TECHNOLOGY Proliferation of mobile devices such as mobile phones,PDAs,ipads,and tablet pcs. Convergence of mobile telephone networks and the internet. Transition from 2nd generation(2G) to 3rd and 4th generations(3G & 4G) telecommunication technologies. Growing customer demand. Evolution of a new value chain. Emergence of highly personalized, location sensitive and context specific applications. 3/6/2013 3
  4. 4. DIFFERENCE BETWEEN M-COMMERCE AND E-COMMERCE Technologically speaking m-commerce is an offshoot of e-commerce and now only 8% of all e-commerce transactions is being done through M –commerce. E-commerce involves transaction on the internet but with m-commerce we enjoy the mobility feature without any physical connectivity to internet. Users pay little higher cost for airtime as opposed to free internet access in e-commerce. In m-commerce the services are usually delivered to a specific customer in a specific location whereas in e-commerce ,the services are accessible globally via the internet. In comparison to e-commerce, the m-commerce applications are rather simple, more personalized and time sensitive. M-commerce is more effective as a marketing and advertising medium than the e-commerce due to mobility and portability of mobile devices. 3/6/2013 4
  5. 5. EMERGENCE OF MOBILE COMMERCE Birth of mobile commerce was in 1997 when the mobile phone enabled Coca-Cola vending machines were installed in Finland and the machine accepted payment via SMS text messages. In 1998 the first sales of downloadable ringtones were made possible in Finland by a company Radiolinja. In 1999, a mobile platform for mobile commerce was launched in Philippines (Smart money) . Currently Australia is offering train ticketing via the mobile devices. Japan offers mobile purchase of airline tickets. With pervasive uses of mobile devices ,mobile commerce has become an important technological tool to reach out to customers in a more effective way than ever before. 3/6/2013 5
  6. 6. SWOT ANALYSIS STRENGTHS WEAKNESSES Portability and mobility features Low bandwidth. of mobile devices. Poor reliability. Ease of use & instant Transaction security concerns. connectivity. High customer satisfaction and High cost of MMS. loyalty. Quality of service( QoS). . OPPORTUNITIES THREATS New & enhanced m- commerce applications . Personal privacy protection. Mobile banking. Constraints with mobile devices. Mobile ticketing. Authentication, and confidentiality. Mobile payments. Security of payment transactions. Advertising & marketing. Information disclosure. 3/6/2013 6
  7. 7. BENEFITS OF MOBILE COMMERCE Improved human performance. Fast inventory turnover. Reduction in cost of logistics. Increased productivity . Efficient collaboration. Faster and accurate communication and information exchange. 3/6/2013 7
  8. 8. EMERGING M-COMMERCE LIFESTYLE Mobile banking and trading using a PDA. Telematics applications on vehicles. GPS integration in vehicles for finding maps and directions. Logistics fleet management. Instant messaging and SMS about special discount offers ,coupons, and loyalty cards from preferred retailers. Downloading mobile entertainment contents such as MP3 music files, wallpapers, ringtones and games. Buying a movie ticket or airline ticket while on the go using wireless application protocol. 3/6/2013 8
  9. 9. BUILDING BLOCKS OF MOBILE COMMERCE IDENTIFICATION KEYS : Numeric codes used to identify objects. DATA CARRIERS: Physical representation that carries the identification keys such as bar code or RFID. MOBILE DEVICES: They are able to capture data from the data carrier. NETWORK PROVIDERS: Network provider and technologies make it possible to exchange data across the network. INFORMATION PROVIDERS: Provide information process functionality. 3/6/2013 9
  10. 10. BASIC MULTIPLEXING SCHEMES USED IN MOBILE COMMUNICATION Multiplexing enables users to share a communication medium with minimum or no interference and generally aims at maximizing the number of users that can be accommodated at the same time. Space Division Multiplexing (SDM). Frequency Division Multiplexing (FDM). Time Division Multiplexing (TDM). Code Division Multiplexing (CDM). 3/6/2013 10
  11. 11. BASIC MULTIPLEXING SCHEMES SDM: SDM involves separating users based on their location. FDM: It partitions the available spectrum in nonoverlapping frequency bands, allowing multiple users , all possibly at the same location, to be concurrently allocated channels with different frequency bands. TDM: This allows multiple users to share a given frequency band as long as they use it at different times . CDM: It is a relatively new multiplexing scheme that involves assigning different codes to different channels .By properly selecting codes, it is possible for multiple channels to coexist in space, time and frequency without interfering with one another. 3/6/2013 11
  12. 12. WHY TRANSITION TO 3G TECHNOLOGY? 2G networks employ GSM technology (9.6 Kbps) whereas 3G network employs GPRS(General Packet Radio Services) technology. In comparison with GSM ,GPRS offers a number of distinct advantages : Always-on connectivity. More efficient capacity utilization. More flexible billing options. Faster data rates. Universal roaming. The overall 3G landscape is significantly simpler. Essentially there are 3 emerging standards. i) WCDMA/UMTS ( Data rates 2 Mbps) ii) CDMA 2000. (Data rates 2 Mbps) iii) TMDA-EDGE.( Data rates 2 Mbps). 3/6/2013 12
  13. 13. REVENUE DRIVERS FOR M-COMMERCE Revenue from e-commerce portals. Revenue from short messaging services(SMS). Revenue from expansion of new customer base. Revenue from wireless advertizing. Revenue from subscription based services. Revenue sharing between wireless network operators. 3/6/2013 13
  14. 14. MOBILE TECHNOLOGY APPLICATIONS By providing location specific information such as driving directions, maps, and physical address to customers. Providing time sensitive information such as stock alerts travel alerts, news alerts and weather alerts to customers. Mobile entertainment solutions such as games, contents and ringtones. Convenient life style solutions such as information about upcoming events, hot news, discount offers, coupons via the mobile medium. Direct connection to targeted customers through text messages and text alerts. 3/6/2013 14
  15. 15. MOBILE PAYMENTS Consumers can use a mobile phone to pay for a wide range of services and digital goods such as ringtones,music,wallpapers and hard goods like books,magazines,tickets etc. 4 Primary models for mobile payments 1. SMS based transactional payments. Costumer sends a payment request via an SMS text message and a premium charge is applied to their mobile wallet. 2. Direct mobile billing. Consumer uses the mobile billing option during checkout at an ecommerce site to make a payment and this payment method bypasses the use of credit/debit cards. 3. Mobile web payments. This method uses WAP as underlying technology and thus inherits all the benefits like follow-on sales, ease of use and high customer satisfaction. 4. Contactless near field communication(NFC):A consumer uses a special mobile phone equipped with a smart card near a reader module and most transactions do not require authentication and the payment could be deducted from prepaid account or bank account directly. 3/6/2013 15
  16. 16. POINTS TO CONSIDER FOR MOBILE TECHNOLOGY IMPLEMENTATION Define your business objectives and value drivers. Identify the benefits to your customers. Closely follow the actions of competitors in mobile space . Observe the processes to define the gaps and opportunities. Identify an organization that would partner with you in your mobile commerce endeavor. Use mobile applications to bridge the gaps and realize the opportunities. 3/6/2013 16
  17. 17. APPLICATIONS OF M-COMMERCE IN CORPORATIONS Mobile Enterprise Resource Planning: It helps in inventory status check, order entry, and order tracking for customers. Location based Corporate applications: Location based cargo and asset tracking, location based sales force dispatch. Mobile CRM: Real time quotes at the client site, communication and team working tools and customer information. Customized Solutions: For recruitment, travel reservations and salary information. Supply Chain management:Key suppliers,manfacturers and retailers share the information that optimizes the time to market of products and reduces the costs. Remote Control: Mobile remote control can be used in corporation to decrease operational costs, provide security and enhance customer service. Mobile self service: It ‘s an electronic way of handling various corporate duties such as updating personal information in the corporate database,adderess and emergency contacts. 3/6/2013 17
  18. 18. REAL -LIFE MOBILE COMMERCE APPLICATIONS Shopping: Edmund .com is a Santa Monica ,California based company that offers online shopping comparison service for car buyers using mobile phones. Ticketing and reservations: The decision to go to movies ,concerts can be made while on the move or buying airline tickets from the mobile phones. Hotelguide.com: The WAP version of Hotelguide.com enables customers to look for hotel information using a mobile handset. Ticketmaster and City search offers a mobile extension for the existing web services. Entertainment: Samsung Electronics has launched a mobile phone with a built-in MP3 player in Korea. Financial services: Internet based stock brokering using WAP service. Nokia and Visa Inc. are developing electronic mobile payment services to enable secure mobile payments using dual-slot mobile phones with chip cards. Healthcare: Mobile Nurse is a software in handheld devices that enables nurses to access the patient records, insurance information, hospital inventory. Remote patient monitoring system(RPMS) in which a patient’s 3/6/2013 18 vital statistics such as EKG,pulse,heart rate ,blood pressure are captured
  19. 19. MOBILE LOCATION SERVICES Mobile location services are the services that integrate both positional and spatial analysis tools to deliver consumer applications on a mobile device . Location based service applications include : Navigation, driving directions and real- time traffic information . Emergency assistance. Concierge and travel services. Location based marketing and advertizing. Location based billing. Dispatch and delivery route optimization. Fleet management, workforce management, and individual tracking. Security and theft control. 3/6/2013 19
  20. 20. LOCATION BASED MOBILE SOLUTIONS USING GPS TECHNOLOGY TELEMATICS services use wireless data and voice system in vehicles in combination with GPS technology to obtain driving directions, and track location in order to obtain roadside assistance in case of emergency. Ford Motor , has new cars and trucks with telematics systems that includes applications like emergency roadside assistance, stolen vehicle tracking ,remote door lock and concierge services. Mobile network Internet Satellite Location coordinates are sent to internet using a mobile Servers network Built in GPS system points Response combining Location of a car location and content using a satellite Is generated dynamically. [LOCATION BASED TELEMATIC SOLUTIONS USING GPS TECHNOLOGY TO LOCATE A VEHICLE.] 3/6/2013 20
  21. 21. MOBILE BANKING & TRADING Many wireless communication service providers such as AT &T ,Verizon, Sprint, and T mobile are providing wireless banking services to their customers from mobile phones. Customers can access the bank account, fund transfers, PIN changes, financial news, bill payments ,ATM and branch locations from their mobile phones. Alltel’s wireless banking solutions are interfaced through Open Financial Exchange (OFX),Interactive Financial Exchange(IFX) and WAP gateways to customers mobile devices. Schwab PocketBroker service provides access to Schwab trading account,realtime stock quotes and news, stock performance alerts, a list view and the use of wireless web portal using a palm organizer. Morgan Stanley Dean Witter TradeRunner is a new interactive wireless trading system that is connected with NYSE,NASDAQ,AMEX and OPRA and provides wireless trading capabilities for equities,options and mutual funds. 3/6/2013 21
  22. 22. OVERVIEW OF MOBILE SECURITY PKI (Public Key Infrastructure) is the only technology that provides the key elements of authentication, confidentiality, data integrity and nonrepudiation, which are of primary importance in security of mobile commerce. Main components of wireless PKI : A registration authority(RA) that defines who gets the certificate. A certification authority(CA) that actually generates and issues the digital certificate. An end entity application (EA)that runs in the WAP device on WIM card. A directory to store certificates so that they can be accessed on demand. PKI portal that interacts with CA over the wired network and translates requests made by the WAP client to the RA portion. 3/6/2013 22
  24. 24. BUILDING BLOCKS OF SECURITY IN MOBILE COMMERCE Authentication: Who you are? Authorization: What you are allowed to do ? Integrity: If the information somehow get tampered , this tampering can be detected. Confidentiality: The data in transit between two communicating parties cannot be made available to any third parties. Nonrepudiation: The originator of a message cannot claim not to have sent a given message. 3/6/2013 24
  25. 25. USER AUTHENTICATION IN MOBILE COMMERCE Knowledge based Authentication: Something the user already knows for interaction with the mobile device (e.g. password & PINs). Biometrics based Authentication: Personality traits of users such as Iris scan pattern or voice recognition pattern is recognized by the device for authentication. 3/6/2013 25
  26. 26. THREATS TO MOBILE NETWORK SECURITY Spoofing: Publishing the IP address of a site instead of a legitimate URL in order to trick people or by typing the URL, so that the client gets routed to an imposter ‘s site. Sniffing: The ability of a hacker to monitor the traffic as it crosses the network involving both clients and server . DoS( Denial of Service) : Sending numerous dummy requests to the server in order to keep it busy so that legitimate transactions can not get through. Information Disclosure: The attacker is able to view an individual user’s private data such as date of birth and social security number etc. 3/6/2013 26
  28. 28. EMERGING MOBILE TECHNOLOGIES Blue tooth: Allows users to make ad hoc wireless connections between mobile phones, desktop, or notebook computers without any cable. Radio Frequency Identification(RFID): Wireless Broadband (WiMax). Mobile IP . IP v6. Java Card(Smart card with Java framework). 3/6/2013 28
  29. 29. PLAYERS IN M-COMMERCE VALUE CHAIN Infrastructure equipment vendors. Software vendors. Content providers. Content aggregators. Mobile network operators. Mobile portals. Third party billing providers. Mobile device manufacturers. Wireless Application Service Provider(WASP). Location information brokers. 3/6/2013 29
  30. 30. US M-COMMERCE REVENUES SOURCE: CODA RESEARCH CONSULTANCY 25 IN $BILLIONS REVENUE 20 15 23.8 10 17.5 11.7 5 7.4 2.4 4.4 1.2 0 2009 2010 2011 2012 2013 2014 2015 3/6/2013 30
  31. 31. US MOBILE BUYERS IN 2010 (% of Respondents) SOURCE:CODA RESEARCH CONSULTANCY Jewelry & watches Computers Clothing Books Consumer Electronics Digital contents 0% 10% 20% 30% 40% 50% 60% 70% 3/6/2013 31
  32. 32. EBAY IN M-COMMERCE In 2012, e-Bay expects to do $ 8 billion in mobile commerce retail volume, and its electronic payments system(PayPal) expects to process $ 7 billion in mobile payment volume. Source : Reuters. e-Bay ,a global leader in mobile commerce with its own suites of mobile applications such as e-Bay-Core, Red-Laser-3.0 and ImageSwatch has partnered with carriers and merchants to build a new retail ecosystem. e-Bay has partnered with Three.uk.co to deliver mobile devices preloaded with e-Bay apps thereby bringing a whole new world of experience to customers. 3/6/2013 32
  33. 33. CHECKLIST FOR FAIR MOBILE COMMERCE Copyright issues: Pay attention to and protect the original works of authorship over the wireless network. Trademark: Do not infringe upon the trademarks, logos and watchwords of other companies. Rights of Privacy: Consider always the personal privacy in business matters as a topmost priority. Headlines: Be truthful about writing headlines about products and services. Contractual rights: Do not ignore any violation of contracts written or implied. 3/6/2013 33
  34. 34. CONCLUDING THOUGHTS A new paradigm in retail industry has emerged out of mobile- commerce to meet the growing demands of customers . Mobile service providers should consider how they can create a cohesive, cross- channel customer experience to meet the needs of each customer segment. Consumer trust is lifeblood of mobile commerce and in order to win the consumer trust ,legal aspects of all transactions must be maintained. The ultimate lines of difference between in-store and mobile commerce are getting blurred with the advent of mobile technologies. With a slew of novel applications and services yet to be invented ,mobile commerce would get significant traction in terms of popularity and convenience in global marketing and advertising industry. 3/6/2013 34
  35. 35. MOBILE PAYMENT TECHNOLOGIES Near Field Communications(NFC): NFC technology allows the consumers to use a mobile phone equipped with a smart card near point- of- sale readers and the payment could be deducted directly from a prepaid account or consumer’s bank account. Mobile payments are a new way for people to pay for purchases at the cash register. Most common forms of payment: Google wallet: It works on T-Mobile phones with an NFC chip and can be used at more than 200,000 merchants. PayPal: Customers can enter their mobile phone number and PIN at cash register to access their existing PayPal accounts at various merchant locations. 3/6/2013 35
  36. 36. WAYS TO MITIGATE THE THREATS IN MOBILE COMMERCE Authentication and access control: Authentication verifies the identity of an user while access control determines what the user is allowed to do. Encryption: In order to prevent decipheration of intercepted messages , encryption is used between various tiers of communication. Quality of Service: Prevents the denial of service attacks by hackers. Throttling: It helps limiting the number of messages that are sent to a system in order to cause the denial of service. Auditing: The user activity can be viewed by the system administrator in order to figure out the source of threats. 3/6/2013 36
  37. 37. APPS FOR MOBILE PAYMENTS Other Java based payment web browser enabled Embedded credit cards SMS based NFC Enabled 0% 5% 10% 15% 20% 25% 30% Source:Delloitte Future Mobile Payment Survey 3/6/2013 37
  38. 38. MOBILE PAYMENTS Merchants view mobile payments as a potentially cheaper alternative to credit card transactions fees and a valuable channel to reach consumers. A credit card embedded solution in a mobile phone can use the existing partnership between credit card network financial institutions and mobile carriers. The stored value solution technology involves accessing funds that are Virtually stored on the mobile device by circumventing transactions with Financial institutions and mobile carriers. 3/6/2013 38
  39. 39. GPS TECHNOLOGY IN FLEET MANAGEMENT Top advantages are: Reduced Fuel consumption due to better route planning. Safety Improvements: Unsafe driving behavior such as speeding, ignoring stop signs and abrupt braking.. Improved productivity: Through use of GPS device ,drivers can notify about arrivals,departures,start and end time ,work order numbers etc. Many customer friendly solutions such as Text mesaging,navigation system alerts etc. 39 3/6/2013
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