Mobile Apps & Social Network Trends : Impact on Airline Business

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Mobile App & Social Network Trends :

Impacts on Airline Business

Assoc.Prof. Dr. Thanachart NumnondaDirectorSoftware Park Thailand25 July 2011

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Agenda

Technology Trends

Mobile Webs & Mobile Apps

Mobile Payment

Mobile Apps for Airlines

Social Network

Software Park's Social Tools

Social Network : Case Study for Airlines

Summary

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Technology Trends

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Next Major Computing Cycle

Source: Morgan Stanley 2009

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Gartner Top 10 Strategic Technologies

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Trends

Web 2.0

Web as a Platform

OS/Device independence

Cloud Computing

Social Network

Social Network is a Platform

Mobile Computing

Enterprise 2.0

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Enterprise Apps Go Mobile

8Source: Morgan Stanley 2010

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SmartPhones

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Mobile Phone Market Shares Q1 2011

Source :Gartner 2011

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SmartPhone Market Shares Q1 2011

Source :Gartner 2011

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Smartphone Market Shares Q4 2010

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Tablets

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HP touchPad Video

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Android 10.1” Video

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Tablet Sales Prediction

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World Telecommunication Services

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Mobile Web Users

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Mobile Technology

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Mobile Webs & Mobile Apps

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Mobile Web v.s. Mobile Apps

Mobile Web is cheaper

Most smartphone support HTML5

Mobile App is more user friendly can integrate with other apps, social network, location context, etc..

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Mobile Apps Industry Is HugeIt is currently estimated at $7 billion,

with expected increase to almost $17.5 billion in 2012

[GetJar]

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Fragmentation In The Mobile World

Different OS

Different Hardware

Different ScreenSize

Different Input Method

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Categorization of Mobile App Development

Low-end platforms– SMS, JavaCard

Mid-level phones platforms– Java ME

Smartphone platforms– iPhone, Android, Blackberry, Symbian

Source: Wilfred M. Mworia; Mobile BootCamp 2009

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Mobile Market Variety

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Smartphone Platforms

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iPhoneLanguage: Objective-C ; CocoaTouch frameworkDifficulty: Very steep learning curve but gets much easier after thatTools:

Hardware: Mac (pretty expensive)

Software: Xcode (free); iPhone SDK

Pros:

Very comprehensive APIs, very well documented

The iPhone is a great platform esp for consumer level apps

Ready online market place for your apps

Free tools (once you have the costly hardware)

Cons

Very different programming style

Expensive to get a handset to test on

You need specific hardware

Marketplace controlled by Apple; 70-30 revenue sharing; Apps have to be approved by Apple first


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Android


Language: JavaDifficulty: Intermediate to advanced Java & Java METools:Hardware: PC or MacSoftware: Eclipse is the editor of choice; Android SDK

Pros:Familiar programming modelVery comprehensive APIs, very well documentedReady online market place for your appsOpen source OSOpen Handset Alliance creates a strong backingFree tools

ConsVariety of device screens, input, size,

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Symbian


Language: Mainly Native Symbian C++; Java ME, Flash & Python RuntimesDifficulty: Challenging for C++; Java ME more familiar; more control with C++Tools:Hardware: PCSoftware: Symbian Application Development Toolkit (ADT); SDKs e.g. Nokia S60 SDK

Pros:Familiar programming modelVery comprehensive APIs, very well documentedReady online market place for your appsOpen source OSSymbian Foundation backs the development of SymbianHandsets are readily availableMany device types and manufacturers – Samsung, LG, NokiaFree tools

ConsNeeds some good experience with C++

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BlackBerry


Language: Several options: Java, .NETDifficulty: For Java, if you are familiar with Java ME you’ll be great. .NET is by nature not so hardTools:Hardware: PCSoftware: For Java: Plugin for Eclipse, Blackberry JDE; For .NET: Plugin for VS; MDS Studio

Pros:Options for programming languages and toolsVery comprehensive APIs, very well documentedGood for enterprise appsHandsets are readily availableFree tools

ConsIMHO perhaps not the best for consumer appsWriting apps for different Blackberry devices can get tricky; have to pick the right version of tools for the right OS versionOnly one device manufacturer RIM

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General Guidance to Smartphone Development

Pick a platform

Learn a bit about the OS in general– Understand the environment in which your app

will run

– How the OS treats scenarios like multi-tasking

– Could help with things like performance tuning

Get the tools

Learn the APIs

Design is key for consumer apps


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Mobile App Stores

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Mobile Apps Price

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Mobile Apps in Thailand

Local Mobile Apps 530 Apps in 2010

Expected local mobile apps in 2011 => 1,300 Apps

Revenue 495 Million Baht

Source: Kasikorn Research Center 2011

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Top 10 Mobile App 2012

Money Transfer

Location Based Services

Mobile Search

Mobile Browsing

Mobile Health Monitoring

Mobile Payment

Near Field Communication Services

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Top 10 Mobile App 2012

Mobile Advertising

Mobile Instant Messaging

Mobile Music

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Mobile Payment

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The convergence of payments and mobile communications is not just logical

– it is inevitable”

John Philip Coghlan, Visa USA CEO March 2007

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What is Mobile Financial Services ?

Source: Mobile Payment series 2009: www.mpayconnect.com

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Mobile Payment Platforms • Mobile Banking: This will enable users to transfer money from account to account, pay bills, manage/monitor account e.g. spending limits, credit fraud. . e.g. Mobile banking platform providers – Promptnow, mFoundry and Firethron.

•Remote Purchase: Using the mobile phone to purchase goods through a secure portal, instead of a computer on the internet. e.g. PayPal’s "Text-to-Buy" enables users to make remote purchases.

Person to person mobile payments: Where a mobile device can be used to complete a person-to-person transaction.

Point-of-Sale: Using a mobile device at a physical store front, at the cash register to purchase inexpensive products quickly and easily. “

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Mobile Payment Evolution

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What does it take to replace cash?

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Some Key ConceptsMobile Remote Payment It covers payments that take place online, in which the mobile phone is used as a device to authenticate personal information stored remotely

Mobile Proximity Payment It refers generally to contactless payments in which the payment credential is stored in the mobile and is exchanged over the air, based on NFC technology, with a dedicated and compatible payment terminal.

Near Field Communication It is a short-range radio frequency communication technology that enables NFC devices located no more than a few centimeters from each other to exchange data. NFC devices are totally compatible with existing contactless technologies like smart cards and contactless stickers.

Source : Binary Mantra Systems

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NFC

NFC allows a device to read and write a contactless card, act like a contactless card and even connects to another NFC device to exchange data.

3 modes :

– Card reading (MIFARE …)

– Peer to peer (initiator & target)

– Card emulating

Distance : 0 - 20 centimeters

Bandwidth to 424 kbits/s

NFC Forum : NDEF specs

N-Mark: http://www.nfc-forum.org/resources/N-Mark

Source : ARCHITECTURE & DEVELOPMENT OF NFC APPLICATIONS Smart-University 20099

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NFC on a Mobile Phone

Contactless

Screen with a user interface

Security

GPS

Loudspeaker and Microphone

Keyboard

Camera

Network

TV

Source : ARCHITECTURE & DEVELOPMENT OF NFC APPLICATIONS Smart-University 20099

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Contactless M-Payment in some countries

Source: Contactless Mobile Payment: ITIF Report 2009

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Mobile Payment Market

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Mobile Shopping Video

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Mobile Apps for Airlines

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Mobile Ecosystem for Airline

Level 1, the basics: providing mobile versions of existing web services.

Level 2, additional “anytime, anywhere” services: enhancing user experience with specific services for people on the road.

Level 3, contextually intelligent services: understanding a traveler’s context in real time and proactively building the service experience around it.

Source: A different look at the future of airline mobile apps: Martin Collings [shearwaterblog.wordpress.com]

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Level 1: Basics

Establishing a mobile presence, almost always as an extension of services already available through the web channel

Either Mobile Apps or Mobile Webs

Check schedules, flight status, gate, loyalty program status, book, cancel, check-in, use paperless boarding passes, search and find loyalty program partners, get flight alerts, and more.


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British Airways

http://ba2go.com

Requires no download of software

supports the same language as ba.com

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BA Mobile Apps

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BA Mobile App Video

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Air France Mobile App Video

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BA Mobile Boarding Pass

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Mobile Boarding Pass Video

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Northwest Airlines

NWA.mobi

the excellent job it does by focusing on utility, with simple tools for mobile check-in, flight and gate status and managing reservations.

NWA recognizes that its mobile users are Internet users, too, so it keeps the experiences consistent

Source:The Best & Worst of the Mobile Web : mobiThinking

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United Airlines

United’s mobile site also failed to cut the mustard, suggesting the airline needs to concentrate its efforts on user experience.

“...browser crashes, poor information display and limited functionality.”

Source:The Best & Worst of the Mobile Web : mobiThinking

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Mobile Apps : Other Features

Virgin Atlantic has apps to handle jetlag and fear of flying.

Qantas has an augmented reality app to help people find their local partners’ venues.

Alitalia allows users to track lost luggage.

American Airlines provides very useful terminal maps.

Lufthansa has a social flying application where travelers can interact with other LH travelers with similar interests nearby, and find pals to share cabs.


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Lufthansa MemberScout iPhone app

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Level 2: “anytime, anywhere” services

More direct: It’s more than the web: it follows users everywhere, it’s always available in their pocket.

More unbundling.Mobile allows an airline to keep that upselling door permanently open. Passenger must be able to access and book additional options at any time.

More cross-sell. Mobile is also an ideal channel to cross-sell additional services at the right time.

– Example: If a traveler needs to book a cab upon arrival, allow them to do it in one click while in the departure lounge


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Level 2: “anytime, anywhere” services

More loyalty. Building loyalty has several components, starting with service excellence, understanding travelers’ needs,

More customer service. Being closer to travelers also means being easy to be reached when needed. Click-to-call, click-to-callback, video calls and more


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Level 3: contextual intelligence

By combining PNR data, location, time, and loyalty data, the airline is in a unique position to make educated guesses about the context of each traveler.

Examples– If a traveler arrives early at the airport, they’d be

interested in special offers for a lounge pass or to cafés/restaurants near their departure gate. But they would not like any of these offers if they arrive late – you would just annoy them.


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Innovative Areas

Using location services to optimize operations– e.g. No more ‘last call for Mr Jones’:

More real-time feedback.– e.g. Luggage problems can be shared with customers

more proactively

Fraud detection.– Double checking data owned by the airline with other

data available from the mobile carrier

– when a customer books on a website with a name different from the name registered as the phone owner


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Social Network

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Social Business Landscape

Source : Hinchcliffe at SBS 2010

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The 21st Century Business Environment

Source : Hinchcliffe at SBS 2010

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Software Park's Social Tools

www.snsconference.com

Collaboration Tools on Cloud

Social Networking Security Conference 2011



Software Park Collaboration Tool

Facebook

Twitter

Dropbox

Slideshare

Knowhow

Wordpress blog

Google Docs

Evernote

etc.



www.swpark.or.th



www.facebook.com/softwareparkthailand



twitter.com/swpark



Dropbox



www.slideshare.net/softwarepark



knowhow.swpark.or.th



softwareparkthailand.wordpress.com

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Social Network :

Case Study for Airlines

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AirAsia Facebook

Hitting one million fans on its Facebook page at the end of May 2011, becoming the first airline outside the US to do so

Karen Chan, AirAsia’s Interactive Marketing Manager– “Social media is like having a housewarming party. First you

create the most innovative, creative invite so that the recipients will want to share it with their friends to attend the party. Once you have all your guests at the party, you will need to know what you’ll be serving on the table, the kind of music you are going to spin, and the activities at the party so that everyone will go back happy and rave about what a great time they had at your party.”

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JetBlue Twitter

JetBlue also leads the airline industry in customer loyalty

join Twitter in Spring 2007. From July 2008 to 2009, JetBlue’s Twitter traffic grew 489%

JetBlue has sent out over 7,500 tweets and has over 1.6 million followers.

The Twitter “kernel of truth”: be receptive to what your followers want.

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Delta Flight Booking on Facebook

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Malaysia Airlines Facebook

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Air New Zealand have nothing to hide!

This dare-bare campaign

celebrated the airline’s transparent fare policy by showing the staff (and even CEO) in a commercial wearing only body-paint!

YouTube views: 6,772,000+

Goals driven– Loyalty

– Revenue

– Engagement

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Air New Zealand YouTube

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Cebu Pacific: “Dancing flight attendants

If you’re more of a dance person then you can always hop on to Cebu Pacific where safety instructions are given out by flight attendants dancing to Lady Gaga songs

YouTube views: 10,096,000+

Goals driven– Revenue

– Engagement

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Cebu Pacific YouTube

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Air New Zealand launches foursquare mayor special

Users who are the mayor of select airports and terminals served by the airline now receive free admission to the Koru Lounge or 100 Airpoints Dollars just by showing their mayor status and boarding pass

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Virgin America & TopGuest

Virgin America guests can earn an additional 25 Elevate points per check-in via TopGuest to Facebook Places or Foursquare — at the airline’s airport terminals or baggage claims — for a total potential of 50 extra points per flight

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Summary

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Why Trends?

In 1950; GDP per capita < $100; Need Financial aids

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The Chonggyechon river,South Korea

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Transformation of the Korean Economy (1945-2003)

Liberationfrom JapaneseColonial Rule

6 Five-Year-Economic- Development Plans

FinancialCrisis

2003P19801962 1970 1995

5,000

10,000

67 87

11,432

7,355

1953

Per Capita (US$)GNI

1990

1945

12,646

OECDMember100(1964)

1,000(1977)

1998

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Korea : Changing Industrial Structure: from Agriculture to Manufacturing / from Light Industry to Heavy and Chemical Industry

1960 1970 1990 1999 1980

HCI Product

Agricultural Product

Light Industry Product

50%

Wig Automobile SemiconductorTextile

2003

Semiconductor, Mobile Phone, DTV, Display, Automobile, Ship-building, etc.

84.8%

12.4%

2.8%

(ICT, 27.6%)

Changes in Export Commodity Profile

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Thank you

[email protected]/thanachartwww.facebook.com/thanachartwww.swpark.or.thwww.facebook.com/softwareparkthailand

http://www.facebook.com/thanachart

http://www.swpark.or.th/

Mobile Apps & Social Network Trends : Impact on Airline Business

Technology

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