EUNITE 2001, December 20011 The Mobile Commerce Quest for Value-Added Products & Services Pirkko...

EUNITE 2001, December 2001 1

The Mobile Commerce Quest for Value-Added Products & Services

Pirkko Walden IAMSR/Abo Akademi University

[email protected]

mailto:[email protected]


MOBILE COMMERCE

• Key Success Factors Customer ownership [key for banking, brokerage; others only

if value-added for producers & customers; customers kept only through value added and best business practice]

PersonalisationLocalisationUbiquityTimelinessConveniencePricing


MOBILE COMMERCE

• M-commerce, products & services

Services: intangible, no ownership definedProducts: tangible, ownership definedDigital products: intangible, ownership definedDigital services: intangible, no ownership definedDigital products & services: intangible, ownership is

definedDigital services & products: intangible, ownership is

not defined


MOBILE COMMERCE

• Conceptual framework, customer perspective

Flexibility, products & services available anywhere, at any time and anyhow

Value-adding, products & services should improve productivity, be adaptive to localisation, be sensitive to customer personalisation

A mobile technology basis, should use innovative and distinguishing features of mobile technology


MOBILE COMMERCE

• Conceptual framework, producer perspective

Modularity, products & services to be built from a core of generic modules; should support flexibility

Layers, products & services should be built in layers to add attributes, characteristics; should support value-adding

Bundling, products & services built through a bundling of modular products and service; use the mobile technology basis


MOBILE COMMERCE

• Conceptual framework, management perspective

Value/cost ratios, products & services should show good/very good value for cost in benchmarking

Production, logistics, marketing and advertising, value chain activities, products & services should have innovative features through mobile technology when benchmarked

Business model, products & services should use innovative & distinguishing features of business


MOBILE COMMERCE

• M-commerce, products & services [Kontinen]

M-commerce: multimodal, mobilityVar A: mobile client, standard services, separate voiceVar B: + services, aware of client locationVar C: + moving services, aware of own locationVar D: + services, aware of other clients in vicinity


MOBILE COMMERCE

• M-commerce, products & services [Keen]

M-commerce: freedom of choice the key issueFollows: knowledge mobilisation among producers,

users, management, employees and in peer-to-peerProposal: b-to-b is going to be the first breakthrough,

wireless support for employees the secondValue networks (?): a better metaphor will be dynamic

value entities, which change shape with the context


MOBILE COMMERCE

• M-commerce, products & services

Our proposal: probably not single (”killer”) entitiesThen follows: synergistic combinations, which can be

simplified over timeAnd thus: key features can be given to individual

products & servicesPossible variations: (i) b-to-b, (ii) b-to-c, (iii) b-to-

employee, (iv) peer-to-peer


MOBILE COMMERCE

INTERELATIONS:co-production, technology,content, information, design

PROD1

PERS

LOCAL

UBI

TIMECON

PRICEPROD2

PERS

LOCAL

UBI

TIMECON

PRICE

SERV1

PERS

LOCAL

UBI

TIMECON

PRICE SERV2

PERS

LOCAL

UBI

TIMECON

PRICE

PERS – PersonalisationLOCAL-LocalisationUBI-UbiquityTIME-TimelinessCON-ConveniencePRICE-Pricing


MOBILE COMMERCE

CUSTOMER PERSPECTIVE:Flexibility, Value-adding, Mobiletechnology adoptive

PROD1

PERS

LOCAL

UBI

TIMECON

PRICEPROD2

PERS

LOCAL

UBI

TIMECON

PRICE

SERV1

PERS

LOCAL

UBI

TIMECON

PRICE SERV2

PERS

LOCAL

UBI

TIMECON

PRICE



MOBILE COMMERCE

PRODUCER PERSPECTIVE:Modularity, Layers, Bundling

PROD1

PERS

LOCAL

UBI

TIMECON

PRICEPROD2

PERS

LOCAL

UBI

TIMECON

PRICE

SERV1

PERS

LOCAL

UBI

TIMECON

PRICE SERV2

PERS

LOCAL

UBI

TIMECON

PRICE


ModulesLayers

Bundle


MOBILE COMMERCE

MANAGEMENT PERSPECTIVE:Value/cost ratios, Production & logistics(etc.), Business models

PROD1

PERS

LOCAL

UBI

TIMECON

PRICEPROD2

PERS

LOCAL

UBI

TIMECON

PRICE

SERV1

PERS

LOCAL

UBI

TIMECON

PRICE SERV2

PERS

LOCAL

UBI

TIMECON

PRICE



MOBILE COMMERCE

• M-commerce, killer applications

Killer cocktail: a mix in which components cannot be identified

Killer pizza: a mix in which components can be distinguished

Killer bouquet: the aggregate > the sum of partsKiller soup: the more ingredients, the better it gets;

operator needed for stirringKiller fondue: as for the soup, no operator needed


MOBILE COMMERCE

INTERELATIONS:co-production, technology,content, information, design

PROD1

PERS

LOCAL

UBI

TIMECON

PRICEPROD2

PERS

LOCAL

UBI

TIMECON

PRICE

SERV1

PERS

LOCAL

UBI

TIMECON

PRICE SERV2

PERS

LOCAL

UBI

TIMECON

PRICE


Bouquet


MOBILE ICT BUSINESS

• Key principles:Embedding processes in software brings the internal

operations and capabilites of the company forward into the customer relationship interface.

In a sense, this concentrates the business into the software; it transforms organisational value chain activities spread across locations and time zones to capabilities at hand, now and anywhere.

It transforms business by enabling personalisation, localisation, ubiquity, timeliness, convenience and neew pricing models


MOBILE ICT BUSINESS

Embedding processes in software is win-win for customer and provider.

Out-tasking – getting rid of a process – is win-win. In-sourcing – using advanced know how developed by

somebody else – is win-win. Company wins by interacting with a best practice eProcess

capability. Customer wins as service is being handled by a best-

practice provider. The provider wins by + revenue and + market


OUT-TASKING & IN-SOURCING

PARTNER I

PARTNER IIVIRTUAL CORPORATION


MOBILE ICT BUSINESS

• Building scale @ speed [Keen].Business design and organizational structuring are

constrained by geography, physical location, workflows, time and the links with capital investment demands.

eProcess companies can get access to world-class capabilities in months rather than years. A first-rate technology platform and a solid base of repeat customers more and more capabilties at less and less capital cost.


MOBILE ICT BUSINESS

• eProcess strategies [Keen]. eProcess edge over traditional companies: information-rich

relationships with customers and organizational flexibility through in-sourcing; out-tasking simplifies operations and improves service.

Build in-house capabilities: these form the operational basis for the company:

Enable people with knowledge and access to work effectively Support knowledge work with high-touch and –texture interfaces Embed company rules into software interfaces Build internal systems that provide high-value functionality

eProcess techniques to decide where and how to focus in-house capabilities


MC BUSINESS MODELA Bouquetof Bundles

PROD1

SERV1 SERV2

PROD2

SERV3 SERV2

B-TO-C


MC BUSINESS MODEL

• B-to-CBundles are combinations of products & servicesA bouquet can be built from (i) bundles or (ii) from

combinations of individual products & services.A bouquet is built to offer

Flexibility – availability anywhere, at any time and anyhowValue-added – will improve productivity, will be adaptive to

localisation, will be sensitive to customer personalisationMobile technology adoption- will use innovative and

distinguishing features of mobile technology to enhance flexibility and value-added


MC BUSINESS MODEL

• B-to-B The same bouquets or bundles are used as in the B-to-C model The customer is a business. A bouquet is built to offer

Flexibility – availability anywhere, at any time and anyhowValue-added – in production, logistics, marketing &

advertising: value chain activities for bringing m-commerce products & services to the markets

Mobile technology adoption- will induce (i) business process reengineering, (ii) multimodality, (iii) out-tasking, (iv) in-sourcing, (v) new logistical solutions


MC BUSINESS MODEL

• B-to-B [cont.] Bouquets are

adapted to customers and made ubiquitous with layers, adapted to localisation, personalisation and timeliness through

modules built for customer convenience with variations of the mobile

technology and the use of a choice of platforms (smart phones, WAP, communicators, PDA, digiTV, WLAN etc.)

Structured and built for flexibility and value-added

The bouquet structure of m-commerce products & services supports the out-tasking and in-sourcing business models [cf. next slide]


MC BUSINESS MODELA Bouquetof Bundles

PROD1

SERV1 SERV2

PROD2

SERV3 SERV2

B-TO-B

OUT-TASKINGPartner I

OUT-TASKINGPartner I

IN-SOURCINGPartner II


MC BUSINESS MODEL

• B-to-B [cont.] Partners I and II work on

Product entities and Service entities in a bouquet Modules forming products & services Layers, which are included in products & services Bundling products & services Logistics Marketing and advertising Management, and maybe even Planning


MC BUSINESS MODEL

• B-to-B [cont.] The mobile commerce business model may have side effects on

consortium and business partners in traditional business The mobile technology used/enhanced/improved/developed to

serve mc business models may traditional solutions in Production Logistics Marketing and advertising Management, and maybe even Planning

Thus, m-commerce may introduce competitive advantages also in tradional industry


MC BUSINESS MODEL

• B-to-Employee Both B-to-C and B-to-B solutions may be adapted to B-to-E Involves (i) an adaptation of modules to fit the corporate intranet

and corporate standard mobile solutions, (ii) the choice and adaptation of layers to fit employee work context and tasks, and (iii) the building of company-specific bundles or bouquets

These B-to-E solutions can be offered by (i) the producer of m-commerce products & services to its own employees, (ii) the out-tasking and/or in-sourcing partners to their own employees, (iii) other business partners in traditional business, (iv) through licensing to any corporate customers or by (v) licensing partners to any corporation


MC BUSINESS MODEL

• B-to-Employee [cont.] The B-to-E solutions may have some interesting consequences

Employees (E) will/can work with and understand the m-commerce products and services

E gain the same value-added in their own work as B or C partners Knowledge mobilisation among E Out-tasking and in-sourcing may become possible between and

within teams working in the same organisation Freedom of choice to work wireless anywhere, anytime and anyhow

while moving Corporate structure will be simplified, virtual, adaptive, flexible, fast

in reaction and knowledge based


MC BUSINESS MODEL

• Peer-to-Peer Principle: B-to-C products & servicces move out of the control of

B to become P-to-P distributed (and loved by the network operators, which will gain in cash flow)

B can control Bouquets or Bundles, and (i) allow or (ii) not allow P-to-P distribution; this can be controlled through proprietary software or possibly encryption

B may be interested in allowing P-to-P distribution in order to create a market; could include some mechanism to collect a (small) fee per user/customer/usage time unit/volume, etc.

If in-sourcing & out-tasking is used there may be restrictions on the use of modules, layers and bundles


MC BUSINESS MODEL

• Peer-to-Peer [cont.] Products & services may be modified for P-to-P usage by

Deleting or modifying modules Controlling the use of layers Adapting or tailoring bundles

P-to-P can be used to create Clubs, User Groups, Virtual Tribes – groups sharing in modification and application solutions


MOBILE COMMERCE

• M-commerce vs. e-commerce

Overall: focus on the following issues as compared to e-commerceChanges in fundamentalsSignificant changes in technologyModifications of products & servicesMobile enhancements of e-commerce products & servicesBusiness modelsPricing

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