M.Commerce Business Model
The new advancement of E-commerce is M-commerce. It means contact the world and managing business and provide or avail services over the mobile using wireless communication anywhere any time on just a click.
Keywords: WAP (Wireless Access Protocol), E- Commerce (), M-Commerce (Mobile commerce), CRM (Customer Relationship Management)
Advancement in wireless technology increases the number of mobile device user and also increase or rapid the development of E-commerce by using the devices.
The new advancement of E-commerce is Mobile commerce or M-commerce. M-commerce means conducting business and services over the mobile using wireless communication or WAP (Wireless Access Protocol). M-commerce can reduce the distance between purchaser and customers. The customer can connect with business all over the world anytime and anywhere. According to the M-commerce we can define as any type of business can transaction and provide any type of services by using wireless communication network for communicating with clients and other business. M-commerce is also a part of E-commerce but the E-commerce is a traditional old business line using by the computer network and internet. E-commerce concentrates only for selling or buying products and information via a computer network and internet.
In the current age the advancement of the technology people needs more useful devices, i.e. (Laptop, Mobile Phone, Tablets etc). to increase their business. Now a day wireless network connection is more power full and use full communication way. People can connect to the business anytime and anywhere. The new tendency in technology, user has the ability to access information from pocket size devices. As well as increasing the technology, then as well as increase new features introduce in the market. Since the wireless communication network can introduce and its devices the word “Mobility” also startup or reddened. The “Mobility” means the ability of access information anytime and anywhere. M-commerce can facilitate for greater income and take a closer customer relationship.
Customer can access information wherever they want. Within the few year’s there was a great improvement in wireless technology. This advance technology can change people’s minds and also change the business models. People are using mostly for business purpose or increase their networks. Before M-commerce people face many different problems like no mobility, access by only computer network, etc. But m-commerce can provide services of access information anytime and anywhere by using the wireless network.
For the business perception the word CRM (Customer Relationship Management) allows for the business to manage their customer and vendor organization. Every organization and companies want their products and services can access from anywhere and anytime. So many companies can give more importance for M-commerce. In advance countries of the world use M-commerce to increase their company’s day by day and also the selling and purchasing of the mobile and other small size devices can increase day by day. Now a day we can define M-commerce as wireless communication. The user can access information 24*7 anywhere, i.e. (Access personal information, check bank accounts, check transaction information, check bill, get the services of selling and purchasing, Online Information etc.) But when M-commerce, introduce the new issues and challenges also introduce. There are needed for much experimental research on M-commerce. This research paper also concentrates on “business models issues in M-commerce“. There are a lot of challenges in business mobile by using m-commerce. BMI (Business Model Issues) also concentrates on CRM (Customer Relationship Management) which deal with customer relationship throughout the entire customer life cycle. The number of researchers tries to expose issues in M-commerce and there is a need for more research. Some challenges and issues are exposing or explore, but the researcher still works on it for improvement of M-commerce. There are a lot of challenges like (small screen, limited storage, low Internet speed, display issue and font size etc.)
But this paper concentrates the special characteristics of M-commerce and differentiates with E-commerce. How much M-commerce gives us the benefits and how world facing this changing. How its cover the world and how much people satisfied with M-commerce.
The parts of this paper is structured as follows
In section , discuss about characteristics of M-commerce.
In section , discuss about changing and challenges of M-commerce.
In section , discuss about player role of M-commerce in the world.
M-commerce means selling and purchasing products or online providing the services. In order for companies and organization that to be successful in M-commerce they need more evaluate innovative new strategies. They required new business models to deliver better services to customers. According to M-commerce companies focus of logical architecture for products. Customers can buy products and get information about these products. According to the fast growth of M-commerce it may be large companies get benefits up to $31 billion after five Years. Most of the E-commerce sites like (Amazon) have limited success in E-commerce. However, one thing they all have common is that M-commerce is the important way to enhance their brands, increase their sales and products, and provide better services. In short the key feature of M-commerce is brighter than E-commerce. Fig 1.1 Show the feature of M-commerce
Figure 1.1 M-commerce Business Model Another trend introduces now a day is the user wants all information in their handsets and smart phones.
1.2 business models issue by M-commerce
There are a lot of issues in business models. There are some common issues are
- Small screen
- Limited resources
- High speed internet
- Limited storage device
These issues are being common, but the major issue for companies is a wireless communication between customers and vendors. The major task for business is how to provide services. For the business perception the word CRM (customer relationship management) allows for the business to manage their customer and vendors organization.
For M-commerce need high speed internet connectivity, 3G, 4G, and 4G LTE. Otherwise, it’s hectic for user to entire the product service. No doubt M-commerce is need some specific area like Bank Transaction, Balance check, Check account information, etc. not some time its face any issue. Like connectivity problems, limited resources, etc. Each business has its own risk. Same M-commerce is the growing field and a lot of investment in this field becomes risky. Because technology is being developed day by day. Moreover, there are less secure in the wireless network, so in data transfer hacking chances are more.
1.3 Advantages of M-commerce in business models
We all know about the E-commerce, which means buying and purchase products online, find information and communicate with companies. There are some advantages of M-commerce
- Time Saving
- Cover Long Distance
- Better customer deals
- Easy to use
- Access anytime, anywhere
Now a day M-commerce is very useful. We can say that M-commerce is anywhere.
Figure 1.2 Business Model by M-commerce
A few years ago when we want to research something we need bundles of a book, library or encyclopedia at home. That eventually true into desktop computers and finally convert into smart phones. It’s very easy to use M-commerce anytime and anywhere. Now current year not doubt M-commerce rise day by day and cover the world widely. There are some new key feature of M-commerce that help for customers and provide services.
Attracts new customers
67% customers are using online shopping by using M-commerce and 61% customers can give prefer to buy products by E-commerce.
In figure 1.3 also show that 88% customers use a laptop, 46% customer use smart phone and 21% customer use tablets
Create new marketing channel
- The new advantage of M-commerce is that you create a new marketing channel
Help with traditional sites
- You can use shopping website usage on the desktop as well as on your smart phone
- Fastest rising of M-commerce marketers can help customer on 24/7 hour
Figure 1.3 customers use online shopping
Challenges of M-commerce
2.1 Challenges and opportunities
In Europe, the shoppers spend 12.9 billion dollar in 2014 almost twice of the previous years and spend 22.5 billion dollar in 2015. That means M-commerce increase day by day. According to researchers 1 million mobile are sale every second day. The market of M-commerce is very bright and the day is no far when every business need M-commerce when in small businesses.
- There are a lot of challenges some challenges are.
- People spend more and more time in their smart phones and laptops.
- Increase the probability for online product selling
- Online marketing can more complex
- M-commerce competition increase
- People feel lazy about visiting companies
- High risk of CRM (customer relationship management
- High risk of online shopping payment process
2.2. Mobile Integration
The size of the mobile screen is the biggest challenge in M-commerce. Delivering an effective and user-friendly service provider in small size screen have challenge for companies. For example: A customer wants to buy a product online. He does not want to visit any web site, but he wants an application on his handset that have every thought which he want so company offer a Mobile application for customer have provided the services of Online shopping like a web site.
“Bill Loller”, vice president of IBM smarter commerce says that “integrating mobile into other shopping channels is indeed one of the biggest challenges that businesses are encountering” on another word “While a relatively new channel, customers have been quick to integrate mobile commerce with products on mobile devices for later purchase online. While almost half (48%) said their customers purchase products directly using a mobile device. A similar proportion report that customers research products for later purchase offline, while 17% say their customers use their mobile devices for research in-store.”
Player Role of M-commerce
3.1. M-commerce player role
When the M-commerce was introduce the word “Mobility” also introduces. The “Mobility” means the ability of access information anytime and anywhere. M-commerce is the most popular way to do business and increase business. Back in 2010 the market of M-commerce is the significant part of customers. People use in and apply in their business to increase their profits. In 2012 this tread was irreversible. The result shows that only 36% mobile device’s owner never uses their smart phone on their business or shop online. And 44% mobile owner uses their mobile for web searching or visits some web sites. But now a day mobile market was increased largely and covers the world. Any companies fight (never ending battle) for providing better services to other companies.
The key feature of M-commerce is Customer can access information anytime and anywhere. Companies and organization provide better services of online shopping. M-commerce is the advance technology of wireless communication. This advance technology can change people’s minds and also change the business models. People are using mostly for business purpose or increase their networks. Before M-commerce people face many different problems like no mobility, access by only computer network, etc. But m-commerce can provide services of access information anytime and anywhere by using the wireless network.
- Dynamic WAP (Wireless Access protocol) and wireless usability issues (research paper)
- CRM information available at https://www.salesforce.com/
- Research paper of business models Issues written by “Aphrodite Tsalgatidou”, “Evaggelia pitora” available at elsevier.com
- Available at http://www.socialpositives.com/2013/10/advantages-disadvantages-of-mobile-commerce/
- Mobile opportunities and challenges (Article) available at http://www.smartinsights.com
- The role of mobile in retail commerce (Research Paper publish in 2012) by eDigitalRearcher for informed direction. Available at https://www.reply.com/Documents/
- Frictionless Mobile commerce available at http://marketingland.com/
Interest in Networking, E-commerce, M-commerce, Developing Applications
Interest include requirement Engineering, Business processing models, searching new environment of technology and developing process model.