MOBILE COMMERCE e-Business 2021

WHAT IS M-COMMERCE?
•M-commerce is the buying and selling of goods and services through
wireless handheld devices.
•M-Commerce is the process of paying for services using a mobile
phone or personal organizer.
•M-Commerce is the use of mobile devices to communicate, inform
transact and entertain using text and data via a connection to public
and private networks.
M-COMMERCE MARKET SHARE AND SIZE
HOW MUCH TIME DO
PEOPLE SPEND ON THEIR
MOBILE PHONES
TIME SPENT ON COMPUTER RELATED
ACTIVITIES
NUMBER OF PROXIMITY MOBILE PAYMENT
USERS IN THE UNITED STATES
MOBILE SALES ARE THE FUTURE OF E-
COMMERCE
THE ATTRIBUTES OF M-COMMERCE
Ubiquity. Ubiquity means being everywhere, especially at the same time. It is facilitated
by wireless computing. Given that Wi-Fi access is available in more and more places,
and that about half of all mobile phones are smart- phones, we have easier ubiquity.
Convenience and capabilities. Having a mobile device increases the convenience of
communication. The func- tionality and usability of mobile devices are increasing, while
their physical size remains small and the cost is affordable. Unlike traditional computers,
mobile devices connect to the Internet almost instantly.
Interactivity. Mobile systems allow for fast and easy interactions (e.g., via Twitter,
tablets, or smartphones).
Personalization. Mobile devices are personal devices. While several people may
share the same PC, a specific
mobile device is usually used by one person.
Localization. Knowing where a user is physically located in real time provides an
opportunity to offer him or her
relevant mobile advertisements, coupons, or other services. Such services are known as
location-based m-commerce.
THE LANDSCAPE OF MOBILE COMPUTING AND M-COMMERCE
AN OVERVIEW OF THE APPLICATIONS OF M-
COMMERCE

•Banking and financial services

•Mobile enterprise applications
•Consumer services (including shopping and entertainment
•Ubiquitous computing
•Emerging applications: wearables, Google Glass, smart grid, and
driverless cars
•Smart Gadgets: Watches, Fitness Trackers, and Smart Glasses
•Mobile shopping
•Mobile marketing and advertising
•Mobile payment
•Mobile ride-hailing
ENTERPRISE M-COMMERCE APPLICATIONS
Field mobility—the support of the mobile workforce
Fleet mobility—the support of vehicles in order to minimize downtime
and increase effectiveness, efficiency, and
utilization
Warehouse management—the improvement of the operations inside
warehouses
Direct store delivery (DSD) route accounting—the increased
usefulness by conducting predelivery activities (e.g., by
texting information about a new shipment from the shipper to the
receiver)
BENEFITS FOR ORGANIZATIONS
•Increases sales due to ease of ordering
by customers from anywhere, anytime
•Allows location-based commerce for more desk resources
sales and revenue
•Provides an additional channel for
advertising and distribution of coupons
(wider reach)
•Increases customers’ loyalty
•Improves customer satisfaction through
real-time apps
•Increases collaboration, advertisement,
customer service, and sales by using IoT
(Chap. 7)
•Enables many enterprise applications
•Facilitates CRM and collaboration
•Reduces employee training time and help
•Improves time utilization and productivity
of mobile employees
•Expedites information flow to and from
mobile employees
•Delivers digitized products and services
directly to mobile devices
•Reduces order lead-time and fulfillment
cycle
•Allows for lower, competitive pricing
•Ability to work at home and have
flextime
BENEFITS FOR INDIVIDUALS AND
CUSTOMERS
• Allows e-commerce from any place, anytime
• Assists in shopping by providing real-time information and other shopping aids
• Helps organization and communication while traveling
• Expedites banking and financial services
• Provides rich media entertainment anytime and anywhere
• Facilitates the finding of new friends and whereabouts of existing ones
• Provides a choice of mobile devices for transactions
• Expedites communication (e.g., locate people, get fast answers to queries, compare
prices while in physical stores
or via shopping comparison sites/apps)
• Increases affordability over the cost of using desktop computing in some countries
• Allows “smart” applications
THE ENABLING INFRASTRUCTURE:

Mobile Computing
 Wireless mobile computing (mobile computing)
Mobile Devices
 Smartphones
 Tablets
 Google’s Smart Glasses
 Personal Digital Assistants: Enterprise Tablets
 Personal digital assistant (PDA)
 Wearable Devices
 Other Mobile Devices
 Radio-Frequency Identification (RFID)
THE ENABLING INFRASTRUCTURE: COMPONENTS AND
SERVICES OF MOBILE COMPUTING

Mobile Computing Software and Services

 Mobile Portals and Content Providers
 Short Message Service (SMS)
 Multimedia Messaging Services (MMS)
 Location-Based Services
 Voice-Support Services
 Interactive voice response (IVR) systems
 Voice portals
AN M-COMMERCE SYSTEM AT WORK
MOBILE FINANCIAL APPLICATIONS

Mobile banking (m-banking)

Other Mobile FINANCE Applications
 Mobile Stock Trading
 Real Estate Mobile Transactions
MOBILE ENTERPRISE SOLUTIONS: FROM SUPPORTING
THE WORKFORCE TO IMPROVING INTERNAL OPERATIONS

•Mobile enterprise refers to mobile applications used by companies to

improve the operations of the employees, facilities, and relevant
supply chains within the enterprise and with its business partners. The
term is also known as enterprise mobility.
•A mobile worker is usually defined as any employee who is away
from his or her primary workspace at least 10 h a week (or 25% of
the time).
• According to a new forecast from International Data Corporation (IDC), the US mobile
worker population will grow at a steady rate over the next 5 years, increasing from
96.2 million in 2015 to 105.4 million mobile workers in 2020.

•Transportation Management
MOBILE ENTERTAINMENT, GAMING,
CONSUMER SERVICES, AND MOBILE SHOPPING

Mobile entertainment
Mobile Streaming Music and Video Providers
Entertainment in Cars
Mobile Games
Mobile Gambling
Mobility and Sports
 Nike and Apple introduced an iPod shoe called Nano
 Personalized live sport events can be viewed on mobile devices.
SERVICE INDUSTRY CONSUMER APPLICATIONS

 Healthcare
 Hospitality Management
 Public Safety and Crime Prevention
 Other Industries
LOCATION-BASED MOBILE COMMERCE
Location-based commerce (l-commerce), or LBC, refers to the use of location-
finding systems such as GPS-enabled devices or similar technologies (e.g.,
triangulation of radio- or cell-based stations) to find where a customer with a
mobile device or an object is located and provide relevant services, such as an
advertisement or vehicle route optimization
•Basic Concepts in L−Commerce
1. Location. Finding where a person (with a smartphone) or another mobile device
or a thing (e.g., a truck) is located
2. Navigation. Finding and illustrating a route from one location to another
3. Tracking. Monitoring the movements and whereabouts of people or objects
4. Mapping. Creating maps of certain geographical locations with superimposed
data if needed
5. Timing. Determining the arrival or departure time of something at a specific
location (e.g., arrival of a bus to a specific bus stop or an airplane to an airport)
LBS COMPONENTS CREATING A SYSTEM
L-COMMERCE INFRASTRUCTURE
• Location finder (positioning) component. A GPS (or other device) that finds the
location of a person or a thing.
• Mobile Positioning Center. This includes a server that manages the location information
received from the loca-tion finder.
• User. The user can be a person or thing (e.g., a vehicle).
• Mobile devices. The user needs a mobile device (e.g., a smartphone) that includes a
GPS or other feature that locates the location (position) of something or someone.
• Mobile communication network. The network(s) that transfers user requests to the
service providers and then transmits the reply to the user.
• Service or application providers. Providers are responsible for servicing a user’s
request. They may use applications such as GIS.
• Data or content provider. Service providers usually need to acquire (e.g., geographic,
financial, or other data) in order to provide a reply to requests. Data may include
maps, coupons, and GIS information.
• Geographical information system (GIS). This includes maps, location of businesses, and
more.
• Opt-in application. In the United States and some other countries, LBS can be used only
with people’s permission (opt-in). This requires an additional software app.
BARRIERS TO LOCATION-BASED M-
COMMERCE
 Accuracy of devices
 The cost–benefit justification
 Limited network bandwidth
 Invasion of privacy
UBIQUITOUS (PERVASIVE) COMPUTING
AND SENSORY NETWORKS

Overview of Ubiquitous Computing

 Definitions and Basic Concepts
 Ubiquitous computing (ubicom)
 Pervasive computing
 Context-Aware Computing
 Internet of Things (IoT)
 Machine-to-Machine Technology

Smart Application: Grid, Homes, Cars, and More

 Smart grid
 Smart Homes and Appliances
 Smart and Driverless Cars
 Smart Cities
UBIQUITOUS (PERVASIVE) COMPUTING
AND SENSORY NETWORKS

Wireless Sensor Networks

 Sensor Network Basics
 Sensor network
 Smart Sensor Applications
Implementation Issues in Ubiquitous Computing
IMPLEMENTATION ISSUES IN MOBILE COMMERCE:
FROM SECURITY AND PRIVACY TO BARRIERS TO
M-COMMERCE

M-Commerce Security and Privacy Issues

Technological Barriers to M-Commerce
Failures in Mobile Computing and M-Commerce
Ethical, Legal, Privacy, and Health Issues
M-COMMERCE TRENDS
•Better overall experience for customers
•Personalized Experience
•Customer services automation
•A true omni-channel experience
•Location-based marketing
•Proximity marketing (using beacons)
•Augmented Reality & Virtual Reality
•Voice Commerce
•The Impact of Page Speed on Mobile Commerce
BETTER OVERALL EXPERIENCE FOR
CUSTOMERS
•Ecommerce already made shopping more convenient. Consumers were
given access to:
• A wider variety of products.
• More competitive pricing.
• All without ever having to step away from their computer.

•With mobile commerce, they still have these benefits, but now they don’t
even need a desktop computer.
• As long as they have a mobile device, they can shop whenever they want, wherever they
are.

•New mobile commerce applications that enhance the customer experience

even further include:
• Augmented reality, with Ikea and Sephora among top retailers using augmented reality
apps to complement their mobile commerce business
• Chatbots and messenger apps which making it easier for businesses to interact with their
customers using apps and services their customers already use and love.
PERSONALIZED
EXPERIENCE
CUSTOMER SERVICES
AUTOMATION
MOBILE CHATBOTS
A TRUE OMNI-CHANNEL
EXPERIENCE
• An omni-channel experience is when stores sell both
online and offline — likely also selling through
multiple online channels
• (i.e. on Amazon, eBay, Facebook, B2B).

• The importance of listing your product wherever

consumers are already spending their time.
• This is increasingly known as contextual commerce,
a more strategic take on the overarching omni-
channel term.

• Omni-channel is about being where your customers

are, and making it possible for them to buy what they
want.
• And mobile commerce makes this easier than any
other form of multi-channel marketing and selling.
A TRUE OMNI-CHANNEL
EXPERIENCE
•73% of consumers shop using multiple
channels. 75% of people expect those
experiences to be consistent across each
channel.
LOCATION-BASED
MARKETING
•Location-based marketing is communicating
with potential customers within a range.
• Setting a location based marketing campaign would
mean that all potential customers in the range of, let’s
say 1 kilometer, are notified about the offer

•This is done by calculating the latitude and

longitude of the smartphone using GPS or
cell tower triangulation method.
• It is hence defined as the kind of marketing that uses
mobile to target customers in a particular
geographical area.

• 88% of customers would share their location if

they’re being provided with something they’d
consider valuable.
• That means offering value--such as discounts, offers or in-store
coupon codes--could be the thing you need to drive more foot
traffic to your brick and mortar store.
PROXIMITY MARKETING (USING BEACONS)
• Beacons are deployed at the storefront or in aisles with
ongoing offers.

• These BLE beacons transmit signals in its range. BLE signals

are a combination of numbers and characters.

• The signals are detected by any Bluetooth-enabled

smartphone, in the transmitting range.

• The smartphone then sends the ID number attached to the

signal to the cloud server.

• The server checks the action assigned to that ID number and

responds accordingly. It could be a notification about a
discount, or a product launch, a feedback form or just a
greeting!

• These notifications will then drive customers to a relevant

form, a webpage or a markdown card (a Beaconstac card
creative which works as a substitute for a website).
PROXIMITY MARKETING (USING BEACONS)
•Proximity marketing is a more granular form of location marketing.
• For the same example discussed above, the shop owner could decide to have a more
targeted approach and reach out to customers passing his shop, lets say in the range
of 300 meters.
• This approach is more personalized and contextually relevant.

•Proximity marketing is about reaching out to customers based on the

accurate position and not a virtual geofence.
•This makes the communication more contextual and personalized.
•Proximity marketing is recommended for highly targeted zones -
within 100m of distance.
•Proximity marketing use-cases involve interaction with customers about
a particular product, brand on a shelf, or any other similar
application.
AUGMENTED REALITY &
VIRTUAL REALITY
•Augmented Reality (AR) and Virtual Reality (VR)
are blurring the lines between the physical and
digital, by offering new ways to see our world.
•For online retailers, this is providing your customers
with new ways to experience products outside of a
physical store.
•As augmented reality offers brands a way to
enhance their customer’s experience in the
purchase consideration phase.
•A 2016 study found 71% of shoppers said they
would shop at a retailer more often if they
offered augmented reality.
•IKEA’s Place app lets you virtually ‘place’ furniture
in your space. These products are true to size,
helping consumers make better choices.
https://www.youtube.com/watch?time_continue=3
&v=UudV1VdFtuQ
VOICE COMMERCE
•The rise of voice technology has led to new
ways users search and interact with
devices. Naturally, voice is now being used
to search and purchase products. ‘Voice
commerce’ is the term given to these
transactions that occur through voice.
•A 2017 survey found that 41% of people
who own devices like the Amazon Echo and
Google Home plan to purchase something
with voice technology in the future. OC&C
Strategy Consultants estimates that by
2020, voice commerce will total $40 billion
sales in the U.S. alone.
VOICE COMMERCE
•At first, people used voice search for things like weather-related questions. Or
maybe telling their smart speaker to play music.
•In 2021, voice search has penetrated the ecommerce market. Voice shopping is
expected to reach $40 billion by 2022. That’s up from a modest $2 billion in
2018, which is a 1,900% increase in just four years.
•This will have a significant impact on mobile commerce, considering the fact
that 40% of adults use voice search at least once per day. 20% of all searches
on mobile devices are voice-based.
•Even consumers that don’t own a smart speaker still have access to voice search
and voice assistance from their mobile devices.
THE IMPACT OF PAGE SPEED ON MOBILE
COMMERCE
•Page speed has always been an important
consideration for websites, and it is even more
important when it comes to mobile commerce.
•Google has been encouraging developers to
optimize for mobile page speed ever since
they noticed that more than 50% of search
queries were happening on mobile devices.
•Page speed has long been a ranking factor,
but Google has always only considered the
speed of desktop versions of websites.
•Google started using a mobile-first index
which launched in July 2018.
• That means website or storefronts that are
mobile optimized will organically get
preference in the ranking algorithm.
DECIDING BETWEEN A MOBILE APP AND
MOBILE WEBSITE
Mobile App Pros: Mobile Website Pros:
•Better performance •Audience reach
•Better user experience •Cost-effective
•Leverage device capabilities •SEO and brand visibility
•Offline access
•Customer Engagement
•Brand Awareness
MOBILE APP VS MOBILE WEBSITE
SOCIAL COMMERCE
•While social media has a tremendous amount of
upside, historically, it’s been challenging for businesses
to convert social traffic into sales. There’s always been
too much friction between navigating from a social
post to a product page.
•But social commerce has evolved.
•With shoppable Facebook pages and Instagram
shoppable posts, customers have a more direct way to
buy products they see on social media.
•These features make it possible for businesses to tag
products in posts, the same way that they tag a
person.
•A recent study suggests that brands using Instagram
shopping have benefited from a 1,416% traffic boost
and a 20% increase in revenue.
ONE-CLICK ORDERING
Think about what you need to process
transactions on your ecommerce store.
1. Customer name
2. Credit card number
3. Credit card expiration
4. Card verification number
5. Shipping address
6. Billing address
7. Email address
Manually entering this information each time
a customer wants to buy something online is
tedious. It’s extremely inconvenient from the
small screen of a mobile device.
EVOLVING M-COMMERCE OFFERINGS

Retail FinTech On-Demand Services

Travel, Transport & Logistics FoodTech

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