M-BUSINESS: FROM VISION TO REALITY
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Transcript of M-BUSINESS: FROM VISION TO REALITY
M-BUSINESS: FROM VISION TO REALITY
Friday 21 April 2023Vilnius
Daiva Vitkutė-AdžgauskienėHead of Product Management Division,Omnitel, Lithuania
Way back in 1999 …
• Popular saying: “If you are NOT IN E-BUSINESS, you are OUT OF BUSINESS”
• Common belief: .COM or E- automatically means passport to getting millions
And then in 2000 …• Burst of INTERNET
BUBBLE
• Intense PESSIMISM instead of previous hype
• Headings of the type “E-BUSINESS IS DEAD” all over
Finally, where is e-business now?• The majority of companies are using Internet/Intranet in some way
• New services keep on emerging on the Net (Internet banking, vehicle tracking and monitoring systems, etc.)
• E-business silently but firmly pushes itself into our life in the form a natural supplement to traditional business processes
• You don’t have to shout about e-business anymore – IT IS JUST HERE
Long-termTrend
E-business adoption landscape
E-business trend
E-business: lessons learned
• Computers becoming faster does not mean that building businesses can also be faster
• E-business success lies in appropriate application of electronic channels to the business as the basis
How about MOBILE BUSINESS ?
In 2000 m-business was merely a VISION … • Just a feeling, that this could fly:
– Mobile penetration growing much faster than that of Internet– Mobile phone – a personal service management tool available
anytime anywhere• However, doubt and disbelief prevailing:
– Disappointment in mobile phones as Internet access terminals (small screens, no graphics, low speed, etc.)
– Global pessimism towards e-business– Weak service development
What is the situation now?• Phones improving, converging with PDAs • Majority of active citizens already mobile• Service providers learned how to overcome
restrictions and leverage the advantages of mobile communications
• Mobile phone is gradually becoming a personalized tool for using and managing services
M-business has become a REALITY and is gradually progressing !
M-business: general impression
• M-business develops along a
smoothly rising long-term trend
curve
• M-business was from the beginning
perceived as an additional channel
to the general business process
• People are ready to pay for m-
business value proposition to
deliver what people want when they
want it
Variety of m-business application areas
• M-commerce – fast transactions
• Introduction of mobile channels to company internal processes
• Mobile marketing
• Mobile CRM
$ $$
Technology environment for m-business services
• SMS messaging – most popular media
• WAP – new expectations with GPRS
• HTTP transactions over GPRS• Java applications for mobile
devices• Web service architecture
Is this also true for M-BUSINESS DEVELOPMENT in
the LITHUANIA?
LITHUANIA: favourable environment for m-business
• Mobile penetration already over 40% (compared to 27% at the beginning of 2002)
• Mobile penetration is significantly higher than that of Internet (21%)
• Over 80% of businesses using mobile services
• Usage of mobile data (SMS, GPRS, WAP) increases
SMS traffic compared to Europe predictions (Baskerville strategic report, Nov. 2001)
SMS VAS share in total traffic
76%
24%
Total SMS/subscriber
Total VAS SMS/subscriber
Total SMS/ subscriber
18
25
28
3235
0
5
10
15
20
25
30
35
40
2002 2003
Eastern Europe Western Europe Omnitel
Omnitel case: increasing SMS usage
Increasing number of public m-services
• M-entertainment (logos, ringtones, mobile games)• M-info (yellow pages, stock exchange, accounting
information) • M-office (mobile e-mail, reminders, group messaging)• M-payments (payments for parking, vending, tickets) • M-banking (all major banks in Lithuania offer SMS or WAP
banking services)• M-self-services (info channel subscription, service
configuration, etc.)• M-security (mobile car tracking, house security, etc.)
M-commerce in entertainment: ringtones and logos
• Offered in Omnitel network since 1999
• Number of content providers and aggregators
increasing - Jippi, One, Inpoc, Telejazz, …
• About 10% of monthly SMS VAS traffic and
increasing
Mobile users willing to pay for entertainment !
“Who wants to be a millionaire?”Most successful SMS application in
Omnitel history:• Launch of the SMS game on June 17th
2002• Reached total 1 million message point
on July 10th – in less than 1 month• According to surveys, 71% of players
are driven by excitement not by prizes
Good example of “kill the time”services potential” !
M-payment for parking: saving precious time
No need to look for coins, easy to extend parking time – just send an SMS from where you are !
• Omnitel was first in Lithuania, 7th in the world to launch the service
• Launch in Kaunas - March 27, 2002; in Vilnius - July 3, 2002
• Monthly growth rate - 1.5-2 times• Service management (inspector side)
based on bar-code readers and GPRS
Already about 7% of total parking payments collected via mobile channel in Lithuania
Mobile e-mail – managing your communications
• E-mail communication have become part of our lives
• Mobile technologies enabled e-mail access anywhere anytime (SMS, WAP over GPRS)
• Mobile e-mail already is an important part of various m-business applications
Customers
Presentation
Operator acts as m-service aggregator
S
Creation
Third parties
Third parties
Aggregation
Third parties
Third parties MasterCard
E-/m- service supermarket offering!
Portal – the best way to enable e-/m- service supermarket
Joint OMNI Portal = traditional + mobile
- information accessed via different channels: WEB, WAP, SMS, etc.,- content personalization,- content generation by third party e-/m- services,- accounting and billing for usage via all channelsOMNI portal provides access to a
structured collection of e-services
Communities
EntertainmentNews
Services
Infor-mation
Tools
WWW.OMNI.LT
WAP.OMNI.LT
Postp
aid
bills
Ven
din
g
mach
ines
Park
ing
Pre
paid
top
-up
WWW SMS WAPE-c
om
merc
e
OMNITEL services 3rd party services
Info
tain
men
t
En
tert
ain
men
t
E-c
om
merc
e
Vert
ical p
ort
als
VilniausBank
BankHansa-LTB
BankSnoras
Omnitelbilling
Paym
en
tfu
ncti
on
ality
Payment channelsP
aym
en
tch
an
nel
Prerequisite – payment management infrastructure• Unified
payment management for operator and third party services
• Payment gateway as a router between services and banks
• Projects with major Lithuanian banks
Payment
gateway
M-business solutions in company environment
Interest: over 1/3 of businesses adding mobile access services to their Intranets
Examples of application areas:
• Mobile sales force solutions
• Mobile access to company info resources
• Mobile logistics and fleet management solutions
• Mobile marketing games
Sales force automation solutions
• Fast order processing, continuously updated pricing information
• Based on mobile access and data synchronization via GPRS enabled PDAs
• Solutions enabled by partnership between mobile operators and IT companies
• Whosalers as first users -Sanitex, Eugesta, etc.
Vehicle tracking and fleet management solutionsAn example of m-
solutions for a niche segment – logistics companies:
•Vehicle tracking and remote control
•Reporting and logistics management
•“Seklys” and “Sateltrack” services offered by Omnitel
•Combination of various technologies - GSM, GPS, GPRS, SMS
Registration database
SMSwap
e-mailwww
voice mail
Company
Registration data and statistics
Advertising campaigns
Consumer
Mobile promotional games – a solution for m-marketing
• Overall over 50 games were implemented by Omnitel for wholesale and media companies in 2002:
• Several examples: – Estrella promotional game, prepared for “Kraft
Foods Lietuva”; – “Kalnapilis in Ice” promotional game prepared
for Kalnapilis beer brewery; – Coca Cola promotional game, – SMS game for TV show on information
technologies “NKTV” and others. • Monthly traffic of such games makes up more
than 15% of the whole Omnitel SMS VAS traffic.
Mobile promotional games – gaining speed
Having many possibilities already, can 3G offer more ?
• With GPRS and MMS in place, m-business applications can already exploit multimedia advantages
• 3G seems not to offer anything completely new for m-business, just faster speed
• Observation: 3G adoption slow in Japan:
• DoCoMo has only about 134000 FOMA subsribers, while the plans were to have 1.38 million subsribers by March 1, 2003
It seems that 3G will not make any significant changes
CONCLUSIONS
• M-business today is already a REALITY.
• With 2.5G and rapidly increasing mobile penetration we have everything that is necessary for m-business growth.
• Success lies in:- rational evaluation of business opportunities,- development of adequate and convenient applications and services,- training the users to exploit all the possibilities offered by mobile technologies.