Since 1999, m-commerce has become one of the hottest topics in IT in general and in EC in particular. Mobility significantly changes the manner in which people and customers interact, communicate, and collaborate, and mobile appli- cations are expected to change the way we live, play, and do business. Much of the
online negotiation
Electronic negotiation, usually supported by software (intelligent) agents that perform searches and compari- sons; improves bundling and customization of products and services.
mobile computing
Permits real-time access to information, applica- tions, and tools that, until recently, were accessible only from a desktop computer.
mobile commerce (m-commerce)
E-commerce conducted via wireless devices.
m-business
The broadest definition of m-commerce, in which e-business is con- ducted in a wireless environment.
Internet culture, which is currently PC-based, may change to one based on mobile devices. As a result, m-commerce creates new business models for EC, notably location-based applications (which we cover in Chapter 8).
Although there are currently many hurdles to the widespread adoption of m-commerce, it is clear that many of these will be reduced or eliminated in the future. Many companies are already shifting their strategy to the mobile world. Many large corporations with huge marketing presence—Microsoft, Intel, Sony, AT&T, AOL-Time-Warner, to name a few—are transforming their businesses to include m-commerce-based products and services. Nokia emerged as a world-class company not just because it sells more cell phones than anyone else, but also because it has become the major player in the mobile economy. Similarly, major telecommunications companies, from Verizon to Vodafone, are shifting their strategies to wireless products and services. In Europe alone, over 200 companies offer mobile portal services. In the United States, over 2 million subscribers used General Motors’ OnStar in-vehicle mobile services in 2002 (see
onstar.com). DoCoMo, the world’s largest mobile portal, with more than 30 mil- lion customers in Japan, is investing billions of dollars to expand its services to other countries, via its i-Mode services.
I-MODE: A SUCCESSFUL MOBILE PORTAL
To illustrate the potential spread of m-commerce, let’s examine DoCoMo’s i-Mode, the pioneering wireless service that took Japan by storm in 1999 and 2000. With a few clicks on a handset, i-Mode users can conduct a large variety of m-commerce activities ranging from online stock trading and banking to purchas- ing travel tickets and booking Karaoke rooms. Users can also use i-Mode to send and receive color images. Launched in February 1999, i-Mode went international in 2000 and had over 15 millions users by the end of that year (nttdocomo.com). Here are some interesting applications of i-Mode:
◗ Shopping guides. Addresses and telephone numbers of the favorite shops in the major shopping malls in Tokyo and other cities are provided with a supporting search engine. Consumers can locate information about best- selling books and then buy them. Users can purchase music online to enjoy anywhere.
◗ Maps and transportation. Digital maps show detailed guides of local routes and stops of the major public transportation systems in all major cities. Users can access train and bus timetables, guides to shopping areas, and automatic notification of train delays.
◗ Ticketing. Airline tickets and movie tickets can be purchased online.
◗ News and reports. Fast access to global news, local updated traffic conditions, the air pollution index, and weather reports are provided continuously.
◗ Personalized movie service. Updates on the latest movies with related infor- mation, such as casting and show times, are provided. Also, subscribers can search for their own favorite movies by entering the name of the movie or the name of the movie theater.
◗ Entertainment. Up-to-date personalized entertainment, such as playing favorite games, can be searched easily. Online “chatting” is also provided, and users can send or receive photos. Also, users can subscribe to receive Tama- gotchi’s characters each day for only $1 a month. These virtual pets (the trans- lation of their Japanese name means “cute little eggs”) exhibit intelligent be- havior; for example, a Tamagotchi cat will purr if you pet it, but “bite” if it is hungry.
◗ Dining and reservations. The exact location of a selected participating restaurant is shown on a digital map. Subscribers can also find a restaurant that provides a meal in a particular price range. Reservations can be made online. Discount coupons are also available online.
◗ Additional services. Additional services such as banking, stock trading, tele- phone directory searches, dictionary services, and a horoscope are available. These applications are for individual users and are provided via a mobile portal. An even greater number of applications is available in the B2B area and in the intra- business area. For a complete coverage of m-business applications, see Chapter 8 and Kalakota and Robinson (2001).
◗ Define computing mobility and mobile commerce.
◗ How does mobile commerce differ from EC?
◗ What major services are provided by i-Mode?