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Mobile Apps & Social Network Trends : Impact on Airline Business
1. Mobile App &
Social Network Trends :
Impacts on Airline Business
Assoc.Prof. Dr. Thanachart Numnonda
Director
Software Park Thailand
25 July 2011
1
2. 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
2
6. 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 6
21. 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..
21
22. Mobile Apps Industry Is Huge
It is currently estimated at $7 billion,
with expected increase
to almost $17.5 billion in 2012
[GetJar]
22
23. Fragmentation In The
Mobile World
Different OS
Different Hardware
Different ScreenSize
Different Input Method
23
24. 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
24
28. iPhone
Language: Objective-C ; CocoaTouch framework
Difficulty: Very steep learning curve but gets much easier after that
Tools:
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)
Source: Wilfred
Cons M. Mworia; Mobile
Very different programming style BootCamp 2009
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 28
29. Android
Language: Java
Difficulty: Intermediate to advanced Java & Java ME
Tools:
Hardware: PC or Mac
Software: Eclipse is the editor of choice; Android SDK
Pros:
Familiar programming model
Very comprehensive APIs, very well documented
Ready online market place for your apps
Open source OS
Open Handset Alliance creates a strong backing
Free tools
Cons
Variety of device screens, input, size,
Source: Wilfred M. Mworia; Mobile BootCamp 2009
29
30. Symbian
Language: Mainly Native Symbian C++; Java ME, Flash & Python
Runtimes
Difficulty: Challenging for C++; Java ME more familiar; more control
with C++
Tools:
Hardware: PC
Software: Symbian Application Development Toolkit (ADT); SDKs e.g. Nokia S60 SDK
Pros:
Familiar programming model
Very comprehensive APIs, very well documented
Ready online market place for your apps
Open source OS
Symbian Foundation backs the development of Symbian
Handsets are readily available
Many device types and manufacturers – Samsung, LG, Nokia
Free tools
Cons
Needs some good experience with C++
Source: Wilfred M. Mworia; Mobile BootCamp 2009 30
31. BlackBerry
Language: Several options: Java, .NET
Difficulty: For Java, if you are familiar with Java ME you’ll be great.
.NET is by nature not so hard
Tools:
Hardware: PC
Software: For Java: Plugin for Eclipse, Blackberry JDE; For .NET: Plugin for VS;
MDS Studio
Pros:
Options for programming languages and tools
Very comprehensive APIs, very well documented
Good for enterprise apps
Handsets are readily available
Free tools
Cons
IMHO perhaps not the best for consumer apps
Writing apps for different Blackberry devices can get tricky; have to pick the right
version of tools for the right OS version
Only one device manufacturer RIM
Source: Wilfred M. Mworia; Mobile BootCamp 2009 31
32. General Guidance to
Smartphone Development
Source: Wilfred M. Mworia; Mobile BootCamp 2009
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
32
35. 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 35
36. Top 10 Mobile App 2012
Money Transfer
Location Based Services
Mobile Search
Mobile Browsing
Mobile Health Monitoring
Mobile Payment
Near Field Communication Services
36
37. Top 10 Mobile App 2012
Mobile Advertising
Mobile Instant Messaging
Mobile Music
37
39. The convergence of payments
and mobile communications is not just logical
– it is inevitable”
John Philip Coghlan, Visa USA CEO
March 2007
39
40. What is Mobile Financial Services ?
Source: Mobile Payment series 2009: www.mpayconnect.com 40
41. 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
41
and easily. “
44. Some Key Concepts
Mobile 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.
44
Source : Binary Mantra Systems
45. 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 45
46. NFC on a Mobile Phone
GPS
Screen with a user
interface
Security
Keyboard
Contactless
Loudspeaker and TV
Microphone
Camera
Network
Source : ARCHITECTURE & DEVELOPMENT OF NFC APPLICATIONS Smart-University 20099 46
51. 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] 51
52. 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.
Source: A different look at the future of airline mobile apps
: Martin Collings [shearwaterblog.wordpress.com] 52
59. 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
59
60. 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
60
61. 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.
Source: A different look at the future of airline mobile apps
: Martin Collings [shearwaterblog.wordpress.com] 61
63. 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
Source: A different look at the future of airline mobile apps
: Martin Collings [shearwaterblog.wordpress.com] 63
64. 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
Source: A different look at the future of airline mobile apps
: Martin Collings [shearwaterblog.wordpress.com] 64
65. 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.
Source: A different look at the future of airline mobile apps
: Martin Collings [shearwaterblog.wordpress.com] 65
66. 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
Source: A different look at the future of airline mobile apps
: Martin Collings [shearwaterblog.wordpress.com] 66
86. 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.”
86
88. 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.
88
91. 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
91
93. 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
93
95. 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
95
96. 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
96
100. Transformation of the Korean
Economy (1945-2003)
Per Capita
(US$)
GNI 12,646
11,432
10,000
6 Five-Year-Economic-
Development Plans 7,355
5,000 Financial
Crisis
Liberation
from Japanese 1,000(1977) OECD
Colonial Rule
67 87 100(1964) Member
1945 1953 1962 1970 1980 1990 1995 1998 2003P
100
101. Korea : Changing Industrial Structure:
from Agriculture to Manufacturing /
from Light Industry to Heavy and Chemical Industry
Changes in Export Commodity Profile Semiconductor, Mobile
Phone, DTV, Display,
Automobile, Ship-building,
Wig Textile Automobile Semiconductor etc.
84.8% HCI Product
(ICT, 27.6%)
50%
Light
Industry
12.4%
Product
2.8% Agricultural
Product
1960 1970 1980 1990 1999 2003 101