Mobile Commerce - Coursework Example

Mobile Commerce Cellular phones and other mobile devices are becoming more popular in the world. More applications are being added into them. Theseinclude SMS, internet access, multimedia, e-mail, software and Bluetooth. This has triggered the use of M-commerce as an effective way of communicating with customers. Transfer of the rights to company products and services can now be successfully done online. This is done using mobile devices, for example, PDA, smartphones, custom terminal, mobile phones and public mobile network. These have had a positive impact in commerce. There is more to be done and areas to be covered so as to realize the potential benefits of global of M-commerce. Its constrains and threats should also be dealt with. Background The first M-commerce was conducted in 1997 in Helsinki, Finland. Two vending machines for Coca Cola that are mobile enabled were installed. Payments could be made through Short Message Service (SMS). The same year, Merita bank of Finland launched the first banking service that is done through SMS. The sale of digital content started when Radiolinja launched the first commercially downloadable ringtones in 1998. Two great milestones were launched in 1999. These are, Smart money in Philipines and NTT DoCoMos i-Mode in Japan. This is an internet service which offered a revenue-sharing plan between NTT DoCoMos i-Mode and the content owner. M-mobile spread rapidly in 2000. Payments for parking were made through mobile in Norway. This was extended to train ticketing in Australia and purchase of airline tickets in Japan. The potentiality of including medical applications to M-mobile was demonstrated by peter Bentley and UCL Computer Science in 2008 (Venkatesh et al, 2003). The basis for M-commerce is high speed internet connectivity. This is well provided by mobile phones and other mobile devices. Tarasewich (2003) points out that in M-commerce, there are websites called Wandering Atrial Pacemaker (WAP) that are developed specifically for mobile devices and mobile phones. Websites that are enabled by WAP display catalogs of products available for users of mobile phones worldwide. M-commerce has overtaken E-commerce and E-business because mobile devices are easy to use, easily available, user friendly and lightweight. Therefore, M-commerce is simply E-commerce conducted over a mobile phone or other mobile device. M-commerce is more under the control of the customer because customization is possible. Customers can personalize their devices like mobile phones to receive what they want, how and when. It also allows for companies to produce products depending on customer specifications, for example, vehicles. There is a high price transparency. Customers use this information to make appropriate purchasing decisions. M-commerce has shifted from SMS systems to real application since the launch of iPhone. SMS is widely available and accessible but has significant security vulnerabilities. Potential benefits Barnes (2003) explains that M-commerce enables people to buy, pay, sell or trade online at their convenient time and from anywhere in the world. This is because mobile phone and other portable devices allow the web to come to the user anytime and anywhere. M-commerce is potentially useful in many industries like finance, telecommunications, retail, media and its end users. Examples of M-commerce services include exhibition, hotel and restaurant booking, purchasing of software, air travel and movie tickets, paid subscription to a website or online games and other shopping experiences. Horizontal applications include the management of personal information, business intelligence applications and corporate email. Both the buyer and the companies benefit from M-commerce. Other beneficiaries include mobile phone operators and internet providers. For the buyers, it has enabled them to access products catalogs available online and proceed to but any of their choice on a computer. Customers are able to pay for these products in a safe and convenient way. No cash payments are made hence transfer of funds is done electronically. This has become a wonderful shopping experience for customers. Improved customer care services are offered over the phone. Evans (2003) reveals that M-commerce has become a sales and marketing tool for companies. They display their products on their websites developed specifically for mobile devices and mobile phones. As people go through these websites, they get to know of these products and select them online through their mobile phones and other mobile devices. Some big companies in the world are now experiencing increased sales as a result of adopting M-commerce. This has become a driving tool for expansion and maintenance of market share. Marketing has now expanded from traditional markets to international markets through online services. This has led to an expansion of the customer base for most companies. Marketing in M-commerce involves online display of advertisements, promotions, customer rewards, brand marketing discounts and shopping tools. This has allowed customers to access timely information on their mobile phones. Customers get accurate and updated data. This has given these companies an edge over their competitors leading to improved revenue. It offers cost effective way of advertising since it does not involve print outs. It increases the number of response times from customers hence increases the scale for sales. As M-commerce is gaining momentum in many countries, there is an effort by manufacturers of mobile phones to exploit its highly potential market. They are working with carriers, for example, AT&T Wireless and Sprint, in order to come up with smartphones that are enabled by WAP. These smartphones offer email and fax alongside other phone capabilities. Smartphhones and other advanced phones can process lots of information and allow for access to internet making mobile retail trading possible. There are mobile phones like the Nokia GPRS phones which are always connected to internet services (Tarasewich, 2003). Areas of focus in M-commerce Merchants need to focus on five major things for the success and growth of M-commerce. The first is mobile-web consistency. An endless customer experience should be created. To achieve this, consistency in functionality and information should be maintained. This will help to avoid customer frustration as a result of uncompleted transaction. Log-in information and customer history that is accessible across channels should be provided. This allows customers to start the shopping process online and complete it later in their phones (Tarasewich, 2003). Secondly, community building should be done. Merchants should utilize mobiles. They should influence people by creating a mobile environment makes their brand the centre of attraction. They can utilize functionalities like facebook, email and twitter. This spreads the network to family and friends. User Interface (UI) is the third key thing. The behavior of mobile users should be considered when creating the mobile site. This will create the best customer experience. The IU should be mindful of the small screen (Lee and Benbasat, 2004). Drive in-store traffic is the fourth area of focus. If a physical store is available, a store locator should be included in the website. The retailer website should be able to support location-based elements like a global positioning system (GPS). The fifth area of focus is device agnostic. A secure mobile website should be developed by the merchants. This website should work on all internet-enabled phones. This will create a great customer brand loyalty. Constrains and threats of M-commerce There are factors that have constrained the realization of the vision of M-commerce. These include issues of cost and speed, inadequate information, uncertainty in technological standards, government regulations and complexities in applications of interactive media. The costs of the mobile technologies, their power consumption and internet access is high especially for people in the third world countries. There is poor internet transmission in many areas. The risk of loosing the mobile phone or other portable device and/or its data is the major treat to M-commerce. Safety issue is another source of threat. This is because unauthorized persons may access the one’s data. Web access diverts the attention of its user. This poses great safety threats to drivers engaging in M-commerce while driving (Venkatesh et al, (2003). Advantages With M-commerce, there are no time or location limitations to commerce. Customers shop at their convenient place and time. M-commerce reduces transaction costs in business. Minimum fees are charged for m- payments made. It provides a wider reach through its marketing models. M-commerce led to competitive pricing which has worked for the advantage of customers. It streamlines business processes and reduces time taken to make orders. It provides wider customer care services. Customers can choose the type of device that is affordable or best suits their preferences and needs, for example, a mobile phone or a PC. Customers can personalize their devices like mobile phones to receive what they want, how and when. This gives a retailer a more direct access too the customer than a TV or a PC would do. This helps in brand positioning because the retailer will know who and where to target. It also allows the retailer to communicate with the customers in their preferred language (Barnes, 2003). Disadvantages According to Jarvenpaa et al (2003), M-commerce gives a lot of pressure to the recipients. They are pressurized by people who want to get feedback. Most devices used in M-commerce have small screens. This restricts the kind of file and data transfer, for example, video streaming. There is limited use of graphics and limited bandwidth. The roll out for higher bandwidth mobile internet is limited. This slows the speed of connectivity. There is less security of data that is being passed across mobile phones and other wireless networks. The functionality of mobile internet in mobile phones and other mobile devices is less compared to mobile computers. Mobile devices have technological constrains, for example input methods, display capabilities and memory. The cost of installing mobile and wireless broadband is high. This discourages users of these devices from accessing the internet. Areas to be covered and things to be done for full potential benefits of global M-commerce, and required research The realization of the vision and more potential benefits of M-commerce depends on the degree to which mobile phones and other portable devices are exploited. Developers of M-commerce need to understand people, their interaction with their surrounding and their needs. This will also include information on the type of mobile marketing that people in different regions respond best to. For example, people in France and UK respond better to SMS whereas people in Germany prefer mobile web. According to Barnes (2002), ccommercial services that can utilize mobile phones and other portable devices should be expanded. For example, m-banking, m-health, location based services, m-payments and m-money transfers, m-ticketing. New strategies should be developed so as to capture the large mobile money transfer and remittance market. M-payments should be deployed. This will provide additional channels for generating revenue. Mobile money should be enabled both locally and internationally. Mobile payments should be made more secure and user-friendly. For better expansion of the M-commerce sector as a digital economy, research that focuses on the use of location based services, social media and cloud computing should be done. Safety is an issue of concern in M-commerce. Currently mobile security is very low. Therefore, technological advancements that cannot allow unauthorized access to user data should be made. This will increase the confidence of the users and attract more users. It is more important that all upcoming mobiles should be able to access fast mobile internet, for example 3G. This will enable those who cannot afford the smartphones to be part of M-commerce. It will also increase the use of mobile e-mail as a way of sending messages (Tarasewich, 2003). The expansion of M-commerce also requires the collaboration of mobile phones manufactures. They should conduct a needs analysis so as to understand how to solve the technological constrains faced by mobile users. According to lee Resources and tools for mobile learning should be made accessible to all learners. This will reduce the difficulties experienced in the use of mobile phones. Conclusion M-commerce has proven to be one of the latest and most innovative way of conducting commercial activities. Mobile retailing is more efficient and safe to the customer. It reduces the overhead costs for companies and leads to increased sales and market expansion. With proper research, there are more potentials for M-commerce to be exploited. With M–commerce world summit 2011 coming in April, we expect greater strides in future for this sector. References Barnes, S. (2002). “The mobile commerce value chain: analysis and future developments.” International Journal of Information Management. (2) pp 91-108. Barnes, S. (2003). Mbusiness: The strategic implications of mobile communications. Burlington, MA.Elsevier. Evans, N. (2003). Business innovation and disruptive technology: Harnessing the power of breakthrough technology for competitive advantage. New Jersey. Prentice Hall Jarvenpaa, S. Lanf, K. Taked, Y. and Tunnainen, V. (2003). “Mobile commerce at crossroads.” Communications of the ACM. (12) pp 41-44. Lee, Y. and Benbasat, I. (2004). “A framework for the study of customer interface design for mobile commerce.” International Journal of Electronic Commerce, 8(3), 79–102. Tarasewich, P. (2003). “Designing mobile commerce applications.” Communications of the ACM. (12) pp 57-60. Venkatesh, V. Ramesh, V. and Massey, A. (2003). “Understanding usability in mobile commerce. Communications of ACM. (12) pp 53-56. Read More