Mobile Commerce: Assessing New Business Opportunities

ABSTRACT Mobile commerce has become the latest topic for today. Business organizations have been restlessly evaluating the revenue potential of the m-commerce market and developing business models to exploit the huge profit potential of this new market. In this project we try to provide an overview of the fundamentals about m-commerce. This paper attempts to help business managers, particularly those without IT background, to understand the key elements and basic concepts of m-commerce and to assess the impact of m-commerce on current and future businesses as well as to identify new business opportunities. INTRODUCTION While electronic commerce continues to see phenomenal growth, mobile commerce is still in its infancy. However, as wireless network grows, it is expected that emerging wireless and mobile networks will provide new avenues for growth in mobile commerce, create new business models for mobile operators and offer new applications to business and consumers (Coursaris and Hassanein, 2002, Kumar and Zahn, 2003). According to the GartnerGroup, consumer to business e-commerce will soon come from smart phones using mobile commerce technology. Many researchers suggested that next phase of electronic business growth will be in wireless and M-commerce (Ngai and Gunasekaran, 2007, Smith, 2006, O'Connell, 2005, Matthew, et al, 2004, Urbaczewskj, et al, 2003). To better understand the potential impacts of mobile commerce on businesses, a quick review of definition and background information about it would be helpful. M-Commerce is also known as mobile electronic commerce or wireless electronic commerce. It is believed to be the next gold rush after e-commerce. Business organizations of different industries are rushing to stake a claim (Stafford and Gillenson, 2003). However, m-commerce is many things to many people. Some people conceive m-commerce as an extension of e-commerce to mobile phones. Some people think it is another new channel after the Internet. In general, m-commerce refers to any transaction with a monetary value that is conducted via a mobile telecommunications network. According to this definition, m-commerce represents a subset of all e- commerce, including both business-to-business and business to consumer. M- Commerce uses the internet for purchasing goods and services as well as sending and receiving messages using hand- held wireless devices. Wireless web applications will enable users with Internet enabled cell- phones. M- Commerce is believed to be driving fundamental changes in the way business is conducted in many industries, particularly in telecommunications, information technology, media and financial services. M-commerce is so important because it represents the extension of the Internet beyond the static terminal of the PC, or even the television, into a more nimble, anytime, anyplace and anywhere context. It will enable millions of people to access web information services wherever they go (Yeo and Huang, 2003). It extends the reach of the e- services beyond the PC and the fixed network. M- commerce is so important for the following reasons: 1. The number of mobile terminals available is larger than the PC user base and is growing much faster. 2. User's intimacy with the terminals is higher. The terminal and service represents a more convenient and personal combination. 3. It is truly accessible anytime and anywhere. 4. It will enable employees to access information wherever they are and make decisions instantly without being confined to a desk or computer. 5. M-commerce eliminates many time- consuming tasks. M-COMMERCE ENABLING TECHNOLOGIES Technology suppliers are key market drivers for M-Commerce. There would not be significant growth in M-Commerce market until the necessary enabling technologies are developed and deployed (Mahatanankoon, et al, 2006, Simon, et al, 2006. …