The Deployment of M-Commerce Technology and the Face of Business - Research Paper Example

? Mobile Commerce in Developing Countries College: Mobile commerce in developing countries Introduction In developing countries, the 21stcentury has become a transition period of rapid adoption of digital technology in the business environment. Mobile commerce is just one of the new drivers of the modern organization business and its impact on developing countries is already rewarding many organizations that have deployed this technology. Mobile-commerce (M-commerce) is the use of mobile handheld devices to create business networks that allow users to access services from their remote locations. With the rapid proliferation of technology, mobile devices have been personalized and customized to allow application driven business to take place. The evolution of Smartphone hardware and software features is a technology that has allowed the deployment of this technology in the 21st century more than ever before. While this technology may have taken shape in developing countries, the third world countries are expanding the use of this technology daily and this is giving business in these countries a new face. The purpose of this paper is to examine the deployment of m-commerce technology and the various perspectives that this technology has changed the face of business in the developing countries. Summary In third world countries, there has been a great emphasis on the need to upgrade the traditional business trends to more modern and dynamic business strategies that would upgrade their business style and drive business beyond the international boundaries. Third world countries are characterised by high poverty level, retarded business progress and high budget deficits that have seen these countries become heavily indebted to funding organizations such as the World Bank (Lee and Benbasat, 2004). However, majority of these countries are endeavouring to put an end to the high poverty levels that have continued to supress the economy of these countries. Integration of the information technology in the business environment is one of the ways that these countries have recognized as a shift to modest business strategy. Research in different countries has revealed numerous elements of mobile commerce in the developing countries. A research in Congo has indicated various elements of adoption of m-commerce business in this industry, as a channel for business development. According to Boadi (2006, p.3), Ghana is one of the countries that have continued to wallow in big debts with the World Bank being one of its major debtors. The country deployed a strategic framework known as the Ghana’s poverty reduction strategy (GPRS) that was geared towards a more modernized form of trade and investment. In this framework, the government laid an emphasis on the adoption of information technology in the business sector to ensure that the benefits of innovation and business efficiency. As of now, Ghana has slowly drifted from the traditional business culture to a business culture that adore the values the computer, internet and wireless technology in business innovation. The internet is one of the elements of m-commerce that has now revolutionized business, not only in Ghana but also in other developing countries. Through the internet, the business organizations are able to sell their products on their website platform not only in their local countries but also in the international markets. The computer technology has revolutionized trade by providing accessibility to online services that allow organizations to serve remote customers at their comfort. Currently, these devices have become cheap and basic user hardware that has transformed trade in this country. Another notable element of m-commerce has come along with the evolution of telecommunication industry in the recent past. As opposed to the traditional telecommunication technology when leased lines were common, modern telecommunication industry has shifted to use of mobile and personal digital assistant devices that have unique features relevant in m-commerce technology. According to Nzomo (2013, Para. 1), the mobile technology has given business a new face in Kenya as banks shift to e-commerce as part of their innovative technology. For instance, the M-Pesa service, provided by Safaricom Kenya service provider, has endowed local customers and business investors with the power to transact business through effective money transfer services. Today, this system allows the citizens of this country to pay their bills send and receive money without any business barrier. In this respect, the mobile technology has revolutionized the business industry through mobile commerce as well as e-business. A research by Harper (2011, pp. 1-5) shows that Caribbean, one of the developing countries, has adopted m-commerce as a business strategy to differentiate in the competitive business market. This country has experienced a 62% of mobile penetration strategy and the level of leased line technology has continued to decline in this country. One feature of m-commerce in this country is the use of mobile banking services that has changed the banking industry in this country in the last decade. With m-banking, the bank customers are able to conduct inter-bank transfer transactions, balance and mini-statement requests from wherever they are within a country. With this technology, bank service providers have integrated their service into user devices to allow them to access their services from wherever they are in the world. With this effect, trade in this country has taken new shape with customers being able to remotely access bank services with their customized accounts. Currently, SMS technology and application based systems have become critical tools of mobile commerce. Currently, sms-banking has dominated business in most developing countries with these services being facilitated by mobile service providers that are now taking control of the mobile business. A subscriber of sms-banking will receive alerts and notifications, business advertisements and other mobile services from their bank service providers. SMS services have also been employed to facilitate business marketing where businesses can send advertisements to their target customers through this service (Lyn, 2002). These trends industrial trends have helped to shape the business path and the business sector is expected to experience transformation each day with new elements of technologies that will define business mechanics in the developing countries. Notably, the business structure is changing rapidly and m-commerce commerce has not been fully optimized yet and it is expected to remain dynamic long way into the future of business in these countries. In fact, many third world countries are experiencing a period of business transformation that is projected to give business industry a completely new shape different from that of the dominant traditional system. According to Kamel (2006, p.187), developing countries are in a transitory period that is progressive and that has a long way to go in shaping the world of business in these countries. Although he recognizes that the deployment of m-commerce in these countries has been faced by numerous countries, he identifies that this is the best strategy for these countries. In this respect, m-commerce has become has become a weapon in fighting poverty in these developing countries and this technology is perceived as the vehicle that will drive these countries into the international market. Analysis of Mobile Commerce M-commerce has transformed business in developing countries in various perspectives that are considered modest characteristics of a modern business organization. Business in the 21st century has experienced bombardment from different market forces that have pushed organizations to reform their investment strategies to fit the demands of a changing market environment. Innovation is one business strategy that has been regarded as the vehicle business success and the ability of an organization to differentiate highly depends on its innovativeness. M-commerce is one of the forms of innovative techniques that have emerged in today's market environment and has come to define trade in developing countries in various perspectives. One impact of information technology that has been experienced in developing countries is the reduction of the cost of business transactions. In any business organization, the cost of business transaction is a vital parameter of business that needs to be minimized as much as possible to ensure that the cost of production remains minimal within any fiscal year. The evolution pricing strategies as part of supply chain design has pushed organizations to resort to innovation as one way of minimizing costs overheads in the business firms. With m-commerce, organizations are able to serve their customers remotely without having to serve them on the counter (Siau, Lim, and Shen, 2001). For instance, m-banking allows bank customers to carry out their transactions from their mobile phones and this reduces their bank queues considerably. From a different perspective, the customer’s cost of travelling to the bank is considerably reduced and this is typical of an effective economy. From a critical point of view, m-commerce strategy to reduce the cost of investment is twofold and benefits both the customers and the investors. In a research by Koabi (2006, p. 47), the deployment of m-commerce had various effects on the country and its business operations. By 2006, the mobile technology has penetrated the business environment and the m-commerce was becoming a characteristic feature in the business sector. In his study conducted among local vegetable farmers in Ghana, he found out that the traditional systems had been complexly wiped out by the m-commerce services. In the old system, the farmers experience much loss due to delay of buyers that were as a result of poor communication strategies. With the launch of M-Tech, the farmers experienced a great reduction of the cost that they incurred while transacting business and communicating with their clients. In fact, the main purpose of the M-Tech project was a cost reduction strategy that aimed at mobilizing farm goods at the cheapest prices possible, which was expected to optimize production in the agricultural sector. Secondly, m-commerce has had a great impact on the communication perspective of the business sector. Effective communication is a key element in any business organization that intends to reach out to its customers and communicate with them. The value of an organization is attached to its ability to supply its target customers with information regarding their products and services. With mobile business, a communication platform was established that links the organization to their customers directly hence bridging the distance gap that previously existed in the consumers. As professor Nzomo (2013, Para. 2) Points out, mobile network operators have provided new business communication policies that are typical of the 21st century. In Kenya today, Safaricom, one of the mobile subscribers in this country relays information on its products to their customers at any place at any time. The effect that this has is that developing countries have experienced a change in their marketing strategy and this has given them a thrust to extend their market. However, it is important to point out that these countries are experiencing a great challenge in deploying m-commerce within their business institutions. One of the challenges that have faced deployment of m-commerce is the high level of illiteracy that is evident in these countries. According to Lyn (2002) and Reid (2012), the low literacy level evident in most African countries has slowed the process of growth of information technology and this has reduced the potential of business in these countries from growing. Another challenge that m-commerce has experienced is the lack of adequate infrastructure and the slow development of mobile technology. While most western countries have employed 4G technology, the other African countries have not yet fully rolled out their 3G networks. These challenges have limited business organization in developing countries from shifting completely in the digital world of business. Conclusions In conclusion, developing countries have experienced a paradigm shift in their business innovation with the technological proliferation that is taking place throughout the world. With the mobile technology flowing into these countries and the internet technology becoming core elements of their business, these organizations have managed to provide adopt modest business practices. With mobile services, the organizations can conveniently communicate and market to their target customers irrespective of the distance gaps between them. In addition, both the customers and the organizations are able to reduce the cost of travelling as they can receive basic services on their mobile. Research has proved beyond any doubt that m-commerce has become a critical tool for profit optimization within these countries. However, the deployment process is taking a slow progress and this has limited the ability of these organizations to flourish in the international markets. As a recommendation, it would be important if the government in developing countries focuses on the IT literacy in their organization and facilitate construction of adequate It infrastructure to push business in the these countries to the next level of development. Bibliography Boadi, A., 2006. M-Commerce Breakthrough in Developing countries. Available through: < http://epubl.ltu.se/1653-0187/2006/17/LTU-PB-EX-0617-SE.pdf> [Accessed on 22nd Oct, 2013] Harper, N., 2011. The Current and the Future of m-Commerce in the Caribbean. OECD Technology Foresight Forum, Paris. Kamel, S., 2006. Electronic Business in Developing Countries: Opportunities and Challenges. New York: Idea Group Inc. Lee, Y. and Benbasat, I. 2004. A Framework for the Study of Customer Interface Design Form Mobile Commerce, International Journal of Electronic Commerce, 8(3), 79-102. Lyn, M., 2002. Commerce and Economic Change in West Africa. Cambridge: Cambridge University Press. Nzomo, M., 2013. The Role of M-Commerce in Developing Countries. Available through: < http://idis.uonbi.ac.ke/node/367 > [Accessed on 22nd Oct, 2013] Reid, R., 2012. A History of Modern Africa. London: John Wiley & Sons. Siau, K., Lim, E. and Shen, Z. 2001. Mobile Commerce: Promises, Challenges and Research Agendas, Journal Of Database Management, 12 (3), 3-10. Read More