2009

Whitepaper
Future of m-Commerce

www.binarymantrasystems.com
www.binarymantrasystems.com
 Whitepaper Future of m
m-Commerce
Commerce

Preface

Although E- commerce has influenced the

Mobile Commerce has gained increasing global environment, many firms are
acceptance amongst various sections of the continuously looking for new technologies,
society in last few applications and
years. The reasons infrastructures where
for its growth can The need for mobility seems to be the such innovations can
be traced back to driving force behind Mobile Commerce. bring more profits
p
technological and and attract more
demographical M-commerce
commerce = EE-commerce + Wireless customers. One
developments that Web innovative
have influenced environment,
many aspects of involving mobile
the socio-cultural computing and
behavior in today’s world. Mobile services wireless technology is related to Mobile
have registered impressive growth in Commerce, which has become a new area
preceding years and m-commerce
mmerce is slowly of interest for today’s firms. M-commerce
M is
but surely showing
wing signs of a healthy a new concept and is an innovation of the
growth. electronic market. It is creating entirely new
opportunities for mobile devices and
services.

1. E-business & M-business

business offer
common services in some areas
while also unique in few others.
2. E-commerce & m-commerce
commerce offer
similar and also unique services
not possible by other mode.

Mobile Electronic
• “Anytime and anywhere access” to • Anytime access to business processes
business processes managed by managed by computer
computer-mediated
computer-mediated networks
networks. networks
• Access takes place using mobile • Access to such networks is stationary
communication networks, making the and therefore, not available
availability of these services independent of the geographic location
independent of the geographic
location of the user.
2
 Whitepaper Future of m-Commerce

Features of Mobile Commerce

Simple
Authentication
Devices like SIM, PIN
are effective

Instant Ubiquity
connectivity
Always-on feature, Services available
hence convenient anywhere

M-
commerce

Localization Immediacy
Localized Content and Services available
Services anytime

Ubiquity - It means that the user can avail of services and carry out transactions largely
independent of his current geographic location.

Immediacy – It provides real-time availability of services.

Localization - Location based services such as GPS, allow companies to offer goods and
services to the user specific to his current location.

Instant connectivity - This feature brings convenience to the user, due to introduction
of services like GPRS which keeps users always in touch and connected.

Simple authentication - Mobile telecommunication devices function with an electronic

chip called SIM, which is easily identifiable. This in combination with an individual
Personal Identification Number (PIN) makes the authentication process simple.

3
 Whitepaper Future of m
m-Commerce
Commerce

Specific Advantages of Mobile Commerce

Context-specific services - Mobile Commerce makes it possible to offer location based

services, which are specific to a given context (e.g. time of the day, location and the
interests of the user).

Time-critical situations - The ubiquity and immediacy of Mobile Commerce allows the
t
user to perform urgent tasks in an efficient manner, irrespective of his current
geographic location.

Spontaneous decisions and need - Spontaneous needs are not externally triggered and
generally involve decisions that do not require a very careful consideration, e.g. purchase
decisions involving
volving small amounts of money.

Efficiency increase - Mobile Commerce helps increase the productivity of the workforce
by increasing the efficiency of their daily routines. Time
Time-pressured
pressured consumers
(employees) can use ‘dead spots’ in the day, e.g. during the daily travel to and from
workplace, more effectively.

Context Time Critical

Specific Situations
Services handled better

Spontaneous Efficiency
Decisions taken Increase

4
 Whitepaper Future of m
m-Commerce
Commerce

M – Commerce Services and Applications

M - Banking

M-
M - Shopping
Mobile Entertainment

Commerce
Services

M-
M-
Information
Marketing
Services

Type of Mobile Applications Category Examples

Mobile Financial Applications B2C,B2B
Mobile Advertising
Mobile Office
Mobile Inventory
Management
Wireless Data Center
Mobile Entertainment
Mobile Distance Education
Wireless Reengineering
Product Shopping
Banking, brokerage and mobile payments
B2C Sending user-specific and location--specific
advertisements
B2C Working from traffic jams, conferences, etc
B2B,B2C Location tracking of goods, people, etc
B2B,B2C Information downloaded by mobile users / vendors
B2C Video on demand and other services
B2C Taking a class using streaming audio and video
B2C,B2B Improvement of Business Services
B2C,B2B Ordering items by a mobile device

5
 Whitepaper Future of m
m-Commerce
Commerce

Payment Mechanisms for utilizing Mobile Services

Payment
Payment Payment Payment
by Mobile
by credit against by prepaid
premium payment
card invoice card
SMS

Challenges to M - Commerce

Security Business Bandwidth

• GSM provides a • Companies need • As bandwidth
relatively secure to integrate demand
connection capabilities in both increases,service
through the PIN telecommunicatio providers may
when turning on ns and information have to face
the handset. systems problem of
• But more is bandwidth scarcity
expected in the
field of
security,like smart
cards

6
 Whitepaper Future of m-Commerce

Harnessing m-
m- commerce potential

In India, m-commerce is in its initial stages and its advantages will soon be realized. M-
commerce revolution will take the country by storm since statistics are on our side.
Another encouraging trend is that the Indian consumer is fast maturing and is open to
new ideas.

Some key points:

About 2 percent of Indians, which is 20 million people, have a per capita income
exceeding $13,000 — a number greater than the populations of Malaysia and
Singapore put together.

Customers surfing the Internet through their mobile phones will have to pay an
access charge of only Rs 0.42 per minute. These trends suggest that a fertile
ground for m-commerce already exists in India and its revolution seems
inevitable.

Way-
Way- Ahead

The mobile Internet channel has opened up new possibilities. There is a big gap between
technology’s capabilities and the consumer’s expectations. But, the good news is that
problem areas like slow transmission speeds and high costs are being addressed by operators
and equipment manufacturers.

M- Commerce players need to improve the user interface soon and implement innovative
pricing structures. Despite the initial frustrations of the users, consumers envision that once
the glitches are worked out, mobile applications will become an integral part of their daily
lives.

References
1. http://www.hipc.org
2. http://www.cacci.org
3. http://www.isg.rhul.ac.uk

7
 Whitepaper Future of m
m-Commerce
Commerce

iPhone

Symbian Windows

Binary
Mobile
Services

Android BlackBerry

Binary Mantra Systems

Mobile Applications | Health Care Solutions | IT Consulting

India: 85, Akanksha, Mahatma Society, Kothrud, Pune, Maharashtra India 411038
UK: 109 Admiralty Close, West Drayton, Middlesex, UB7 9NJ, United Kingdom
E-mail: info@binarymantrasystems.com | Website
Website: www.binarymantrasystems.com