Mobile Commerce - Research Paper Example

Mobile Commerce Introduction Mobile Commerce may be defined as any transaction with a corresponding financial value that is done through a mobile communication network. It may entail the sale of goods and services through the device; the initiation of transactions, which can be completed using another medium, or the completion of a transaction through wireless hand held devices. One should note that sometimes the concept may encompass a number of other devices like personal digital assistants that rely on wireless capabilities; however, mobile phones are the primary platforms for such transactions. Mobile commerce is similar to e commerce because it is mediated by computer networks; however, it differs from this form because some internet devices do not have access to telecommunications networks. How businesses can benefit Mobile commerce has numerous benefits that companies in any industry can enjoy, and one of them is their ability to respond to issues instantly. It is a given fact that certain transactions are time-critical, such as making a buy in the stock market for brokers; having an m-commerce platform for such industries could make the difference between success and failure for these stakeholders. Businesses can gain significant leverage when they merge the intention to purchase with the actual purchase through a mobile device. One way of how this has been achieved is through the use of PDAs (personal digital assistant) in the healthcare sector. Nurses and physicians constantly need to access patient information or records even though this may have occurred in another department within the institution. Some healthcare providers that have adopted these technologies are now able to access patient status and other critical information without having to go to the corresponding department. This has minimized administrative cost while productivity has increased, and the service quality within these entities is also quite promising. In addition to its instantaneous nature, m commerce allows users to carry out transactions independent of their location; this could drive sales substantially for such companies. Many buyers may want to purchase a certain item or service but could be unable to do so because of their distance from the actual store. Even e-commerce, which promises such an advantage is often limited by one’s ability to locate a computer, yet this is not the case for mobile devices. M-commerce holds a lot of promise for businesses that embrace it because they have the opportunity to sale their wares to buyers anywhere they are. The ubiquity of m-commerce implies that even employee productivity may go up if companies allow them to use this technology. Sometimes consumers may be stuck in traffic or some other mode of transport on their way to work; instead of doing unproductive things, they can use their mobile devices to carry out work-related transactions. For instance, they could purchase orders for their organizations or even carry out bank transactions as they take the train to work. This increases the efficiency with which they use their daily routines and thus enhances outcomes for the firms they work for (Tiwari and Buse, 2007). Tesco South Korea has taken advantage of this feature and shown how businesses can leverage on the technology in order to become competitive. The organization is ranked as the number one online store in South Korea owing to its m-commerce innovation; virtual shopping. The company created virtual stores consisting of nearly identical visual displays to their actual stores in several Korean subway stations. Passengers could then scan the image bar codes and shop for their product through their mobile devices by adding it into their cart. This information would then be sent to the company and it would deliver it to consumers’ homes in a relatively short amount of time. The overall result of the innovation was that sales increased by 130% for the company and almost 10,000 buyers eagerly joined the platform. Customers were particularly impressed with the fact that they did not have to carry around heavy grocery bags or waste plenty of time in long supermarket aisles. Tesco benefited from the experience because it was proactively marketing its products to consumers; instead of waiting for them to come to the store, the virtual display was showing buyers that they had things to purchase (Kimura, 2013). Unlike e-commerce which may require dial up services or wi-fi connectivity, mobile services are always connected to their network, so they may be said to be always online. This makes it significantly different from internet-reliant services because no intermediate process is needed to make use of the m-commerce service. As a result, the application is quite convenient to buyers and is likely to increase the sales enjoyed by service providers. Authentication processes needed to access an m-commerce platform are relatively easy; a long as a consumer already has a SIM card on their phone, the network operator already knows all their personal details as this works in tandem with a PIN. Buyers do not have to go through complicated authentication procedures as is the case with e-commerce since this may cause some of them to become impatient and end the purchase. Businesses can thus spend more of their time on satisfying consumer needs rather than on technical, non-value adding activities like authentication processes. M-commerce is also advantageous because it allows companies to offer location-specific services that can only be deduced from a real-time device like a mobile phone. Businesses can take advantage of the mobile nature of the technology to offer services that customers only value if it relates to their context such as their location or the time of day. This implies that companies can promote their brand presence relatively easily and encourage buyers to stay loyal to their brand by meeting them at their point of need. Ticketmaster, is an organization that has embraced this location-specific feature to leverage on the sale of their products. The company is currently responsible for the provision of information on tickets for concerts and games in people’s locations within the United States. Once the mobile application identifies one’s region, it assists them in determining how they can purchase the tickets and lets them know about other outcomes. The mobile nature of this technology also encourages many consumers to make decisions spontaneously thus increasing the amount of sales that can be made by vendors. Some purchase decisions do not always require planning especially if they involve relatively minimal amounts of money; m-commerce facilitates spontaneous decisions by giving consumers the ability to perform the transaction even when in transit. Organizations have a range of models that they can use in order to offer mobile commerce to their clients and one of them is the wireless business to consumer model. (Hameed et. al., 2010). Here, the concerned companies providing services to buyers are expected to deliver services to consumers through wireless networks, and are the most predominant type of model. They include mobile ticketing, mobile shopping, mobile banking, and stock trading. Not only is this avenue quite personalized to the needs of the buyer, it also allows companies to offer products and services conveniently. Alternatively, a company may opt for the wireless business to business model, where it sells its products or services to another seller. For instance, a manufacturer may sell to a wholesaler or wholesaler to retailer; this not only save costs but also harmonizes partnerships between businesses. One way in which companies can reap these benefits is through inventory tracking between different members of the supply chain. Through mobile commerce, companies often track their inventories and can thus work towards implementing their just in time delivery models. A number of them have also learnt that customer service gets better, their ability to deliver goods on time improves and so does the amount of inventory that they have to keep in stock (Jahanshahi et. al., 2012). Even wireless consumer to consumer models are plausible in this platform and usually involve exchanges between customers through a third party. A typical example is gaming, SMS as well as other services that involve interactions between consumers themselves. Finally, businesses can choose wireless consumer to self models to offer their specific service, and this can be seen through smart refrigerators, or the ability to control one’s car using a mobile device. Regardless of all the above benefits, companies need to be cautious of the challenges surrounding the use of m-commerce technology in order to respond accordingly to it. First, they must realize that some key markets in the world like the US have not been as enthusiastic about m-commerce as others like Korea and Japan; this could have implications in Canada as well. The technology relies on wireless networks within one’s target market, yet these companies may have incompatible standards. Consumers often struggle with keyboards and screens on their mobile devices as some of them may be too small and awkward for them. Additionally, some challenges with transmission speeds may also arise if the wireless network is relatively slow; this is especially true in mountainous areas (Hsieh, 2007). Conclusion Businesses have plenty to gain from the use of m-commerce technologies in the provision of goods and services irrespective of their business model. They can market their services or goods by reminding consumers of what they need to purchase as is the case with Tesco Korea. Furthermore, companies can also gain from increasing spontaneous purchases which are often limited by the geographical location of the consumer or the difficulty of getting to the seller’s location. M-commerce can enhance efficiency among employees as it encourages them to perform work-related tasks using their wireless devices while on the move. Companies can meet consumers at their point of need by offering them location-specific services through this platform; this could increase revenue. In addition, firms can save up on a lot of time and task delivery when they rely on m commerce because it does not depend on authentication processes; the health sector and stock market industries are particularly in need of such time-friendly applications. References Hameed, K., Ahsan, K. & Yang, W. (2010). Mobile commerce and applications: An exploratpry study and review. Journal of computing, 2(4), 110-115. Jahanshahi, A., Mirzaie, A. & Asadollahi, A. (2012). Mobile commerce beyond electronic commerce: Issues and challenges. Asian Journal of Business and Management Sciences, 1(2), 119-129. Kimura, F. (2013). Tesco Korea: Mobile commerce. Retrieved from https://www.youtube.com/watch?v=UlTMIFjK2ak Tiwari, R. & Buse, S. (2007). The mobile commerce prospects: A strategic analysis of opportunities in the banking sector. Hamburg, Germany: Hamburg University Press. Hsieh, C. (2007). Mobile commerce: Assessing new business opportunities. Communications of the IIMA, 7(1), 87-101 Read More