Using M-Business Technology and Strategies

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Table of Contents

New Technology
Advantages and Disadvantages
Business Models and Potential Users
Context of a Department Store
Impact on Business and IT
Recommendations
References

Mobile business or M-business is revolutionizing how businesses deliver goods and services to customers. The e-commerce technology that transformed the planet will again experience another level of upgrade that will help increase productivity, save time, and improve customer service (Samuelson & Dholakia, 2002: 3). This is made possible by mobile devices that are in reality small computers, increasingly becoming cheap while at the same increasing its computing power and the number of features that can be loaded into it. Yet, in spite of all the technological advances mobile devices are still relatively small to be used comfortably and there are still so many things that are missing to ensure ease of use. But this does not mean that proponents for M-business technology cannot start small. In this regard it would be best to try it in the context of a department store.

New Technology

Ten years ago M-business would have been impossible to implement (Samuelson & Dholakia, 2002: 3). There were so many restrictions and there were so many limitations. The main limitation would have been hardware. Although the world is no stranger to miniaturization, M-business requires more than just small gadgets. There is a need to tailor-made it so that it can be practical and efficient. Ten years ago this would have been impossible because cell phones and laptops were not good enough to provide what customers need when it comes to mobile business.

The second major problem is security. In the past it would have been impossible to convince a customer to transact online. During that period criminal syndicates are doing great business with credit card fraud and at the same time hackers were just too savvy when it comes to breaking into computers. But this time around hardware and software are so advanced that it is not only able to provide the necessary technology but more importantly it is also secure from hackers and other unscrupulous individuals who are more than willing to make an illegal profit out of someone else’s misery.

Before going any further it must be made clear that M-business is different from e-commerce. While the whole world is already well aware of what e-commerce is like and already familiar with its many benefits, it is only recently when M-business is beginning to take hold in highly industrialized countries all over the world. This is because unlike the relative security already felt in e-commerce, with its use of high-speed internet and highly reliable desktops, doing shopping using a cell phone while waiting for someone is still a farfetched idea for many (Samuelson & Dholakia, 2002: 3).

Even though mobile business technology uses mobile devices such as cell phones and PDA that are Wi-Fi capable, there are still kinks that need ironing out. For instance there is the perception that cell phones and PDAs seem to be ill-equipped to handle online shopping because small screen sizes can hamper customer’s ability to scrutinize the product before purchase. Moreover, the keypads are nothing compared to a standard QWERTY keyboards where one can easily type those case sensitive passwords. As mentioned earlier this is the challenge faced by M-business service providers. Therefore, it is cumbersome to use this new technology and it will take a lot of time before one can finish a single transaction. On the other hand, engineers and scientists have a dependable track record when it comes to solving problems of this nature. In due time, they will be able to re-engineer their products so that it can be used more effectively within the framework of M-business.

Advantages and Disadvantages

The advantages of M-business are very clear. First of all the average customer will experience freedom like he or she has never felt before. Secondly, on the part of business people they can save a ton of money when it comes to reducing the number of people that they have to pay in order to perform mundane things that computers and mobile gadgets can easily handle. For instance in ticket sales there is no need for a salesperson in a ticket booth and there is also no need for someone working the phones waiting for someone to call in for reservations. The use of a number of mobile electronic devices can complete the transaction effortlessly. Finally, this new technology can generate a lot of revenue for businessmen for this will open new markets for them. The promise of M-business can be simplified using the following terms (Tiwari, Buse, & Herstatt, 2008: 7-8) and these are enumerated as: a) ubiquity; b) immediacy; c) localization; d) instant connectivity; e) pro-active functionality; and f) simple authentication procedure.

Ubiquity is made possible by the size and high functionality of the devices. This means that customers can bring their cell phones and PDAs wherever they want to go. Due to wireless connectivity immediacy is possible. A customer can be relaxing in a park and with a push of a button can purchase tickets to this coming Sunday’s football game. Localization means that M-business service providers can determine the location of the user and offer products and services that are available in that area. Instant-connectivity is made possible by General Packet Radio Service or GPRS technology. There is no need for an internet connection because the mobile device is always connected. Since M-business has all these capabilities, service providers can now offer pro-active functionality, which are new ways of delivering information and product offers. The use of Subscriber Identity Module (SIM) and Personal Identification Number (PIN) creates an easy yet reliable and secure authentication process (Tiwari, Buse, & Herstatt, 2008: 9).

Those who had been studying the potential of M-Business have more to say about the impact of this kind of service and these are listed as follows (GS1 Mobile Com, 2008: 7):

Extended packaging – customers can be given additional information about new products, in the past, the next best thing is to do window shopping and ask the sales lady a few questions about the said item. With M-business technology customers can read the information at their leisure and therefore make informed decisions.
Content purchase and delivery – this is a major breakthrough when it comes to testing the product. Digital music, software, digital games and other similar products can be sent to the mobile device for testing before the customer will approve of the purchase. In the past the customer will bring the product home, test it and if he or she is unhappy had to drive all the way back to the department store to return the item.
Mobile coupons – this will bring an end to cutting coupons from magazines and newspapers and stuffing the same into wallets, pockets, and bags to be brought for redemption. This time around there is a more efficient way to carry around those coupons. For the environmentally conscious this will save a few trees too.
Authentication – mobile devices can be used as a scanner that can identify if the product on display is the one that is as advertised. This will reduce confusion when it comes to purchasing an item that the customer pre-ordered a few days before.
Re-ordering – mobile devices can be used to re-order with ease and efficiency. Every time a customer remembers the need to buy a very critical item for home or office use, the store is just a push-of-a-button away.

The disadvantages are also very clear for the prudent people to see. Mobile business is dangerous for the compulsive buyer, for the bored housewife who has nothing to do but purchase things that she does not need, and to the person who has racked thousands of dollars in credit card debt. It is also not advisable for compulsive buyers who continue to purchase items that they do not need. Aside from being a drain in savings, compulsive buying will introduce unnecessary items into the house and it can easily eat up precious floor space.

Business Models and Potential Users

Department stores owners have plenty of case studies that they can use to find out more about M-business before deciding to dive into this new venture. To determine M-business capability when it comes to ubiquity store owners can look into the success of NextBus a San Francisco-based company. NextBus invested in a GPS system that allows them to track their buses through satellite. This enable them to inform their customers – those who will access NextBus’ data center – and give them real time information when a bus will mostly likely arrive at a particular bus stop (Turban, 2007: 168).

Another case study would be Millstone Coffee a company that uses handheld devices and mobile application software to improve supply chain management, to track inventory, generate invoices, and capture detailed sales and marketing data each time they deliver coffee to a particular store (Turban, 2007: 169). This means that M-business can be used not only in attracting customers to the shop and informing them of great buys but it can also be used to run a highly-efficient enterprise.

Context of a Department Store

One of the best applications of M-business is to use it in the context of a department store. The primary reason for doing so is based on the fact that M-business applications can be integrated in a regular department store setting. The business owners who will adopt this new technology will be able to establish a system wherein customers can easily try a new technology without the feeling that they are risking too much. In fact there is no risk when using M-business in the context of a department store. This is because customers will get all the advantages of convenient shopping without having to spend a single penny for items that they do not like. For examples customers can order clothes, and then the department store will accept the transaction, send the ordered goods by mail and then the customer will pay it against an invoice (Tiwari, Buse, & Herstatt, 2008: 7). There is no risk in that processs but more importantly the customer will be thrilled with the newly discovered freedom and convenience provided by M-business type of shopping.

Department stores need not start from scratch. There are many business models that they can use to help them design a system that will suit their needs. For example, they can improve upon what the San Francisco-based Nextbus Company is doing when it comes to how they conduct their information sharing scheme with their customer. Store owners can send information regarding their latest offering or they can send electronic coupons that will give a discount on selected items.

As mentioned earlier M-business is not only about selling products and services it can also be about managing the business more efficiently through the use of mobile devices that allow for rapid sharing of data. According to one study, “When user exits the office, the network automatically detects this and starts an automatic process of communication between office IT environment and the GPRS/3G terminal (or mobile devices) that the user carries” (Samuelson & Dholakia, 2002: 12). This means that department store owners can benefit from M-business even from a management point of view and not necessarily limited to sales and marketing standpoint only.

Impact on Business and IT

Department stores adopting M-business technology will be able to experience the triple-effect of increasing productivity, speed, and customer service (Turban, 2007: 167). This technology will be able to generate more revenue because it can reach a wider base of customers. For instance, department store owners can invest on a technology that can detect mobile devices that are a few blocks away from the store. M-business can then send text messages or electronic catalogues suited for handheld devices and if the recipient is looking for ways to kill time, they can come and visit the store. This was not possible a few decades ago.

This new technology is not only about revenues it will also be about saving time and effort creating a leaner more efficient enterprise. A customer can order in advance the item that he or she needed. A few hours before the arrival of the customer the salesperson can prepare the item ahead of time (Resatsch, et al., 2007: 2). Upon arrival the customer can immediately try the item and if satisfied he or she can immediately pay for it. In the near future, the same customer can pay for the item using a cell phone, thus the speed of the transaction is increased a notch higher.

Recommendations

It is high time for department store owners to consider this new form of technology. It is also high time to make preparations in the transition from a mere e-commerce supported enterprise to a more integrated business that allows for the use of M-business technology. It has been made clear that the use of this technology can increase revenue while at the same time improve the efficiency of the enterprise. If the store owner can save time and effort then ultimately he can also reduce expenses. Overall the use of M-business creates an increase in the profitability of the business.

For the cautious businessman who will try to find out more about the technology and the readiness of the potential users to adopt such a radical idea, there is no need to rush. He can wait until assured that this is not going to backfire. Those who may want to partner with him in a new venture involving M-business will simply have to point out two undeniable truths. Firstly, there is what analyst call the “cell phone culture” that is widespread all over the world (Turban, 2007: 172). Secondly, there is the declining price of mobile devices while at the same time an increase in its functionalities (Turban, 2007: 172). This means that in the near future millions of people in the United States alone possess a sophisticated cell phone or PDA that can receive and send data as well as engage in business transactions with different kinds of businesses wherever and whenever they choose to do so.

References

GS1 Mobile Com (2008) Mobile Commerce: Opportunities and challenges. Web.

Resatsch, F. et al., (2007) Mobile Sales Assistant: An NFC-based product information system for retailers. ACM International Conference Proceeding Series, Vol 309, p313-316. Web.

Roussos, G. P. Kourouthanasis, & T. Moussouri (2003) Designing applicances for mobile commerce and retailtainment. Personal and Ubiquitous.

Samuelson, Mats and Nikhilesh Dholakia (2002) Assessing the Market Potential of Network- Enabled 3G M-Business Services [internet] Published as a working paper. Web.

Tiwari, R., S. Buse, & C. Herstatt (2008) From Electronic to Mobile Commerce: Opportunities through technology convergence enables innovative business services. CACCI Journal. Web.

Turban, Efraim (2007) Information Technology for Management: Transforming Organizations inthe Digital Economy, 6^th ed.

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