This document provides a summary of a presentation by Professor Son Vuong on mobile commerce (m-commerce). It includes: 1. An introduction to m-commerce and how it differs from e-commerce by being conducted on wireless devices. 2. An overview of key issues in m-commerce like technical challenges, security, usability, and regulations. 3. A brief discussion of LIVES, a company spun off from the University of British Columbia, and how it applies to m-commerce. 4. Conclusions that m-commerce will succeed as part of an integrated model complementing traditional commerce, and be most successful for small transactions via applications like games and media on mobile devices.

1. A Bird-Eye View of M-Commerce
Prof. Dr. Son Vuong
Director, Networks and Internet computing Laboratory (NICLab)
Computer Science Department
University of British Columbia
Vancouver, BC Canada
Email: vuong@cs.ubc.ca or stvuong@gmail.com
Hoi Thao ve TMDT, DH Kinh Te Luat
HCMC, 30/11/2012

2. Prof. Dr. Son Vuong’s Bio Sketch
 BSEE Cal State U, Sacto, MEng CarletonU, PhD, U. Waterloo
 Lecturer/Assistant Professor, U Waterloo, 1980-82
 Joined UBC/CS since 1982
 Director of Networks and Internet Computing Lab (NICLab)
 (Co)Author over 200 papers, Supervise 80 MSc/PhD theses
 Co-edited three books, including “Recent Advances in Distributed
Multimedia Systems” published in 1999
 Co-Leader of $30M CAD GISST NCE Proposal (2000)
 (Co)chair and (Co)organizer of 10 international conferences
(NCAS’11, Multimedia’08, DMS’08, NOMS’06, DMS'97, ICDCS'95,
PSTV'94, FORTE'89, IWPTS'88).
 Consultant for the Canadian Government: Department of
Communications (DOC), Department of Industry (DOI)
 Board of Directors for companies, including Confederal Networks
(ConfedNet) and LIVES Mobile Corp. 2

3. A Bird-Eye View of M-Commerce
Outline
1. M-Commerce: Introduction
2. Key Issues/Concerns
3. LIVES as applied to M-Commerce
4. Video Clip.
5. Conclusions
3

4. Mobile Commerce (M-Commerce)
 A form of e-commerce
 performed on the internet using wireless
devices such as
 Handheld computers (tablets), cell phones
(smartphones), dashtop computers (embedded in
automobile dashboards)
 Presents unique opportunities and challenges
4

5. Popular M-Commerce Uses
 Mobile Banking
 Mobile stock trading
 Mobile ticketing
 Digital Wallet
 Mobile Coupon

6. M-Commerce Value
 Convenience
 Anytime and anywhere access
 Personalization and localization
 Flexibility
 Ubiquity

7. Who is using it?
 USA, Canada
 Europe (France, Austria, Germany, Finland,
United Kingdom, etc.)
 Asia (Japan, etc.)
 Now, worldwide (China, etc. )

8. M-Commerce Hurdles
 Technical Challenge
 Security and Privacy
 Demography
 Usability
 Governmental policies and regulations

9. M-Commerce Hurdles (in the past)
 Screens too small and difficult to read
 Slow internet speeds
 Difficult text entry
 Cost of mobile services

10. The Mega Trends for Internet
Connected Group Interaction
Reed Law (2n)
?
Individual
Level of Interaction
Metcalfe Law (n2)
Smart
Content
User Generated
Content Content
12 Consumer
User 10 810Industrial & commercial
109 10 Residential automation buildings
107 Computers products
11 Vehicular logistics
Shipping telemetric
0 50 Years Time
Information

11. The End State of Connectivity
Ubiquity and Mobility
Connected Mobility 24/7
3 Billions 200 Millions
(5B
downloads)

12. The Rise of Mobile Broadband
To enable x10 (speed) x10 (devices) x10 (industries)
Connected Devices
Tablet and Smartphone
Laptop and Cellphone
Anything that can be connected
will be connected

13. Mobile Broadband Landscape
Cellular Wireless Law of Speed vs. Decade
1T
100G
5G
10G
Mobile device Cell size shrinks Ce
4G ? for everything count increases
Gbps 3G 50
16
Mbps 2G
4
kbps 1G 1
bps AMPS
30 Years
1980 1990 2000 2010 2020 Time

14. E-Commerce Business Model
14

15. E-Commerce: Business Models Issues
 Possible Models:
 Slotting fees
 Wireless advertising (text)
 Pay per application downloaded
 Pay per page downloaded
 Flat-fees for service & applications
 Revenue share on transactions
 Trust issues between banks, carriers, and
portals
 Lack of content / services

16. Types of M-Commerce Applications
 Methods for delivering M-Commerce services
 Directly from cell phone service providers
 Via mobile Internet or Web applications
 Location-based m-commerce applications
 Using Short Message Service (SMS) text
messaging or Multimedia Messaging Service
(MMS)
 Using short-range wireless technology, such as
RFID
16

17. Kinds of business models
 Brokerage: market makers bring together
buyer and sellers
 Advertising: web advertising providing
advertising messages
 Infomediary: collecting and disseminating
information
17

18. Assessing a business model
 Can be assessed by looking at the
marketing strategy
 Can also be assessed by technology
- imitation
- complementary assets
 Financial measures
 Competitor benchmarking
 Market analysis
18

19. Traditional vs. New Business Models
Traditional New Business
Production Mass Personalized
Manufactures push Customer Pull
Distribution Middleman Direct
Communications Closed Open
Finance Slow Fast
Difficult Easier
Markets Local Global
Mass Niche
Assets Physical Virtual
19

20. Consumer Decision Process
Consumer Decision Process
Problem - Recognition
PRE-PURCHASE Information Search
Evaluation of Alternatives
PURCHASE Purchase Decision
Satisfaction
POST-PURCHASE Loyalty
Disposal
20

21. Consumer Decision Process — Flower
Example
Flowers
 Need recognition, potentially triggered by a
Problem - Recognition holiday, anniversary or everyday events
 Search for ideas and offerings, including:
Pre-Purchase Information Search – Available on-line and off-line stores
– Gift ideas and recommendations
– Advice on selection style and match
 Evaluation of alternatives along a number of
Evaluation of Alternatives dimensions, such as price, appeal, availability, etc.
 Purchase decision
Purchase Purchase Decision  Message selection (medium and content)
 Post-sales support
Satisfaction – Order tracking
– Customer service
Post-  Education on flowers and decoration
Purchase Loyalty  Post sales perks
Disposal
21

22. Metrics
 Metrics: If it moves, measure it!
 Measures of performance; may be quantitative
or qualitative
 Response times  Security and privacy
 Site availability  On-time order
fulfillment
 Download times
 Return policy
 Timeliness
 Navigability
22

23. Some Specific M-Commerce Issues
1. Electronic Payment System (Smartcards)
2. Marketing/Advertisement and Hospitality
(LIVES)
23

24. Electronic Payment System
• proximity payment system
– allows customers to transfer funds wirelessly between their
mobile device and a point-of-sale terminal
• Electronic cash (e-cash or digital cash)
– Provides a private and secure method of transferring funds from
a bank account or credit card to online vendors or individuals
– PayPal
• Best-known e-cash provider
• E-cash benefits
– Privacy - hides account information from vendors
– Convenient if seller cannot process a credit card
• Smartcards
– Credit cards with embedded microchips that can store and
process data and can be used as electronic wallets
24

25. Learning Through Mobile Technologies
Prof. Dr. Son Vuong
Networks and Internet Computing Laboratory (NICLab)
Computer Science Department
University of British Columbia
Vancouver, BC CANADA
In parnership with
the Commonwealth of Learning (COL)
http://lives.cs.ubc.ca
25
1

26. Dr. Son Vuong
LIVES Mobile Corp.
Spin-off from University of British Columbia

29. LePlaza:
A Location-Based Social Network System
= Facebook + Lattitude (Google)
• Location–based
• Distance-based search
• Event-centered with Location Based Personalized
Recommendation Service
(dining recommendation)

30. LePlaza
EVENT

31. LePlaza – Location-based recommendation

32. Visions on M-commerce
 Is it happening?
 Will it meet expectations?
 Predicted to boom !?

33. M-Commerce Future
 Will succeed as part of an integrated business
model.
 Will not replace traditional commerce but will
complement it. New business via mobiles.
 New way of marketing, customer care (hospitality)
 Will most likely be successful with small
transactions rather than big ticket items
 Ring tones
 Games
 Food
 Media

34. M-Commerce Future
 Likely to succeed if
 Internet speeds are increased
 Text input becomes more convenient
 e.g. Voice activated
 Security concerns are addressed
 Payment systems become more convenient
 Younger generation most likely to adapt
 As proliferation of people (farmers) becomes
exposed to Internet and Web access.

35. They believed it… (Schoemaker, 1995)
 Thomas J. Watson, chairman of IBM, 1943
“I think there is a world market for about five
computers”
 Ken Olson, President, Digital Equipment
Corporation, 1977
“There is no reason for any individual to have
a computer in their home”

36.  The best way to predict the
future is to invest it


37. Questions and Discussions