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Making Real World Media: New Business Models based on NFC
1. 2011 CSSG (Customer Strategies for Sustained Growth) Conference @ INSEAD Making Real World Media: New Business Models based on NFC Dr. Kyoung Jun Lee Prof. of School of Business, Kyung Hee University, Seoul, Korea Director of BMER.net Founder of LoveisTouch Inc.
2. NFC? National Football Conference of NFL? National Football Club in Korea. Near Field Communications New Future Comes ! A set of short-range wireless technologies, typically requiring a distance of 4 inch or less. NFC operates at 13.56 MHz and at rates ranging from 106 kbit/s to 848 kbit/s.
11. Samsung Galaxy S IINOKIA and LG announced that their all smart phones will have NFC. Apple’s iPhone 5 is predicted to have NFC. In 2015, 50-80% of all the phones will have NFC. Korea government has a plan to provide 5 million NFC phones in 2011.
12. If you have a NFC phone Your phone can play role of your credit card. Card Emulation Mode “pay by touching a Dongle” Your phone can read and write other RFID tags. Reader/Writer mode “buy movie ticket by touching a NFC tag attached to a movie poster” Your phone can interact with other NFC devices. P2P(Peer-to-Peer) Mode “The current paper business card will disappear in ten years”
13. 5 NFC: New Future Comes!NFC as the first step to Ubiquitous Society Web-Based Commerce Internet made new way of commerce: Amazon, eBay Web-Based Media Internet made new way of using Media: Google, Facebook, Twitter Smart Phone as Product-Service System (PSS) iPod/iPhone/iPad + iTunes/AppStore Android The Next Big Thing is NFC NFC-Based Commerce NFC-Based Media
14. 6 Definition of NFC-Based Commerce (evolved from Definition of U-Commerce (Lee 2005)) Defined as the commercial interaction among providers, consumers, products, and services, enabled and supported especially by Seamlesscommunication of each entity's (digital) information Using NFC technology.
15. 7 NFC-Based Commerce Business Models U-Referral Marketing (Lee & Lee 2006) U-Comparison Shopping (Lee & Suh 2006) U-Payment & U-Receipt (Lee, Ju & Jeong 2006) U-Recommendation (Kim, Lee & Kim 2006) Tag Match Advertising(Lee, Lee, Jun 2007) Home Order by RFID(Lee, Kim, Oh 2008) U-Insurance(Lee & Oh 2008)
16. Three Core NFC-Based Commerce Models UbiComp 2008 Demo A Referrer Referral Marketing Product itself will become sales platform ! Reading RFID Tag - A potential customer scans the NFC tag of a prior purchaser’s product with a NFC phone - If the potential customer buys products, the prior purchaser gets a referral fee Referrer’s product Comparison Shopping Tag-Match Advertising Touch & feel the product real world, and buy it online ! The AdSense in Ubiquitous Era ! - A consumer views the products in offline store, and then, receive information about online retailers - When consumer buys product online through offline seller, offline sellers can receive incentives from other retailers Tag-Match Advertising exposes proper ads to users through ‘Tag Match’, a new process based on the information on users and the information and contents about tags On-line Sellers Advertisers
17. Tag Match Advertising(Lee et al. 2007) Lap Top A1-4524 1. Basic Information 2. After Service Request 3. Price Comparison Related Products 1. Best Lap Top Briefcases 30 for Young Men” 2. Accessories 3. Similar Lap Tops
18. 10 Tradeoff between Privacy and Seamlessness in Commercial Transaction (Lee 2005)
19. The Reduced Privacy (if any) should be compensated by a Benefit or Incentive (Lee 2005) Privacy Benefit/Incentive Seamlessness
20. 12 Definition of U-Media (Lee 2006) The media in ubiquitous environment not only takes advantage of human biological systems, but also the digital systems of human beings while conventional media appeals only to people’s bio-systems. U-Media is defined as a media where human creates and consumes content through not only human cognitive and perceptual processes but also through the interactions between surrounding digital systems c.f. Marshall McLuhan Media are extensions of our senses into the public domain A medium is a technological or artificial extension of a bodily faculty.
21. 13 Examples of U-Media NFC-Embedded Display (Lee & Yoon 2007): e.g. Taxi Cab NFC-enabled Exhibition (Lee & Jun 2007): NFC/ZigBee-Based(Lee & Jun 2009) NFC-Embedded Billboard (Lee & Lee 2007) NFC-Embedded Book (Lee & Park 2007) Open Business Model for Augmented Book Integrated with Mobile Phone (Park, Lee, & Casalegno 2010) U-Camera & U-Photo (Lee & Ju 2007): The camera that takes photographs of digital links as well as real world image
23. Commerce-Media Integrated Space (Lee2007) Commerce-embedded Media Commerce Media Media-embedded People Media-embedded Product Media-embedded Place 15
24. 16 Media Embedded Place & Product Media Embedded Place Ad Hoc Peer-to-Peer Recommendation in U-Environment(2006) Tag-Table(2007) RFID-Based Attendance Management(2007) U-Community(2007) U-Billboard(2007) Media Embedded Product U-Referral Marketing(2005, 2006) U-Comparison Shopping(2005, 2006) Tag Match Advertising(2007)
25. Web as the existing Commerce-Media Integrated Space The current world wide web shows the commerce-media integrated space by itself. The notion of the commerce-media integrated service space is coined from observing the commercial evolution of the World-Wide Web (WWW). WWW has been regarded as a space from its inception. The space is a labeled space that has many links to other information or services. The success of WWW as a mediated space has resulted from the commercialization of the mediated space. From the lessons of WWW, it is believed that a pervasive space can be flourished by the commercialization strategy. 17
26. Commerce-Media Integration A key to profitable business model WWW as a Commerce-Media Integration Content Match (Content-Commerce): AdSense Key word Search (Content-Commerce): AdWords Place/People/Product become media. Media-Embedded Place Media-Embedded People Media-Embedded Product Commerce-Embedded Media Media becomes commerce platform
27. Real World itself becomes media(Lee, K.J. 2007) Marketplace in old times integrated media & commerce With mass media, media and commerce became isolated. With interactive media technology. Media and commerce integrated in virtual interface. With ubiquitous technology, every space becomes commerce-media integrated space. Disappearing Line Between Journalism and Commerce “Every space has become ad space”, Steve Hayden, Wired, 2003.
28. A View on Ubiquitous Computing (Lee 2007) When Mark Weiser coined the term ubiquitous computing, there were no mobile phone diffusion and it seems that he did not consider much on the impact of mobile phones to our life. The revised definition of ubiquitous computing need to admit that the people are not such a natural human being, but a new human being with a digital device with her or his hands – mobile devices(phones). If we assume this changed situation evolved from the age of defining originally ubiquitous computing, we can envision that the future space will have ubiquitous links than computers. The space with ubiquitous links is more lightweight system than traditional ubiquitous computing system. 20
33. LoveisTouch: Mission LIT is the firm transforming real world into media with IT. LIT provides a platform for mediarization of real space thus helps various economic entities efficiently create customer value and share profit.
34. LoveisTouch: Vision Global No.1 NFC-Based Service Platformer Trusted Third Party with Tag Metrics Methodology
35. Why LoveisTouch? WWW => Click NFC => Touch John Lennon “Love” “Love is Touch!”
36. Service Launch Plan 2011.7: NFC Lifelog App 1.0 Positioned as a Killer App of NFC Phone Users 2011.8: NFC Tag Management Service Trusted Third Party for efficient tag management, service composition, and settlement among various entities.
38. Forthcoming Services of LIT NFC-Based Serendipity Engine for Service Composition NFC-Based Referral Marketing NFC-Based Comparison Shopping NFC-Based Tag Match Advertising NFC-Based Dynamic Insurance NFC-Based Ad Hoc Social Networking
39. LoveisTouch: Strategy Open Service Innovation Strategy LIT does not all of the things by itself. Simple Platform Strategy Will become Twi*/Fac*/Goo* of NFC industry NFC 2.0: Open NFC Strategy We bet on Open NFC (vs. Secure NFC)
42. Touch Me! Fore More Information: Visit Visit BMER.net Kyoung Jun Lee Email: leekj007@gmail.com Cyworld.com/leekj007 Facebook.com/leekj007 Twitter: leekj007
Notas do Editor
저희 회사는 현실 공간을 미디어로 탈바꿈시키는 회사입니다. (지금 여러분이 계신 공간은 미디어 기능을 하지 못하고 있습니다. 그러나, 여러분 주위에 NFC태그와 같은 IT기술이 존재하게 된다면, 아주 손쉽게 이 공간이 미디어로 바뀌게 됩니다.)저희 회사는 현실공간을 미디어로 만드는 과정을 지원하는 플랫폼의 역할을 하고자 합니다.현실공간을 미디어로 만들어가는 과정에서 발생하는 필수적인 것을 플랫폼으로 만들어, 여기에 참여하는 경제주체가 효율적으로 서비스를 만들어 가치와 수익을 창출하고 공유하는 것을 도울 것입니다.
New Future Comes!새로운 미래가 오고 있습니다.NFC 시대가 오고 있습니다.Near Field Communication
NFC에 의한 Touch는 WWW의 Click에 비견할 만한 혁명적인 변화를 가져올 것입니다.이 Touch를 강조하고자 Love를 결합했습니다.“Love is Touch”는 John Lennon의 명곡 Love에 나오는 가사입니다.
LIT는 이 모든 것을 혼자 하지 않습니다.철저하게 개방 혁신 전략으로 갑니다.Simple Platform 전략LIT는 간단한 것만 할 것입니다.NFC계의 Twitter/Facebook이 될 것입니다.특별한 것들은 파트너들이 지역과 분야의 실정에 맞게 하시면 됩니다.저희는 용역을 하지 않습니다. 을을 하지 않습니다. 그렇다고 갑을 고집하지 않습니다. NFC 2.0 전략: Open NFC 전략 (vs. Secure NFC 전략)We bet on OPEN NFC!