1 - E-commerce vs Mobile Commerece

International Journal of Applied Research Volume 2, 2013, Page 1 - 24

E-COMMERCE VS MOBILE COMMERECE

Prof. Dr. Badar Alam Iqbal, Former Dean and Chairman, Dear!men! of Commer"e, Ali#arh M$l%im &ni'er%i!( ALI)AR*+  &P/ India badar.iqbal0f$lbri#h!mail.or# Ab%!ra"! In 21st Century in which we all are living technology is become a necessity and therefore, its application in business and commerce are not a matter of choice but a matter of compulsion. This is why the global competition could be faced with the five vital compon component ents s namely namely quality quality,, cost, cost, conven convenien ience, ce, commun communica ication tion and time time could could be attainable if we make transactions electronically. These five facets are also of paramount significance when we have to face stiff and throat cutting competition. The seeds of the trends, issues and challenges challenges now taking taking hold in commerce commerce and mobile commerce commerce were infused or in!ected in!ected into business business during early days, long before the shakeout began. Today, as the dust settles, are those trends, issues and challenges have come up to show clearly toward the future of commerce transforming into into "obile "obile Commer Commerce. ce. The emergi emerging ng trends trends,, issues issues and challe challenge nges s in comme commerce rce include# multi#channel retailing$ more satisfied users$ users doing own things$ losing out the mid#si%e #tailer$ losing human relations$ r elations$ and more profits. The emergi emerging ng econom economies ies known known as &'IC( &'IC( countr countries ies namely namely#&ra #&ra%il %il$$ 'ussia 'ussia$$ India$ China and (outh )frica have come out with online merchants incredible growth potential and opportunities, but also challenges when it come to developing specific local payment plans. *ill it be possible that commerce business thrive in a "commerce era+ This is a million dollars question to answer. commerce revolutioni%ed traditional commerce. The desktop computers have liberated the users or consumers from the need to visit a retail outlet. Transaction Transaction through desktop computer looks more like a restriction than liberation. ence, now ne-t and much improved stage of commerce has emerged out known as com comme merc rce e ever everyw ywhe here re/. /. and andhe held ld dev devices ices that that can can acce access ss the the inte intern rnet et are are 1


revolutioni%ing #commerce further. Today we are transacting through mobiles which is called 0"commerce.. There is a possibility that in coming years "commerce become less attractive hen some improved devise may come up. 1e( 2ord%+ com comme merc rce, e, &usi &usine ness ss,, electronic data.

Tradi raditi tion onal al

comm commer erce ce,,

"obi "obile le

comm commer erce ce,,

tech techno nolo logi gies es,,

I34ROD&C4IO3 ue to continued technological innovations, the world had seen drastic changes in almost every sphere of life. The advent of Internet#based electronic commerce over the past decade or so has given businesses an unprecedented marketing opportunity. &rick and mortar mortar busine businesse sses s can find find it diffic difficult ult to compe compete te with with web#ba web#based sed busine businesse sses s beca becaus use e the the latt latter er usua usuall lly y hav have lowe lowerr oper operat atin ing g cost costs s and and grea greate terr flefle-ib ibil ilit ity y 3www.investopedia.com $ 24115.)s the Internet#using population has grown, so too has the potential market si%e for any business that sets up a shop on the *eb 3(teinfield, C.$ 24425. *ith the advent of each new day, new technologies were developed in the wake to make life easier. This development resulted in the transformation of the world from e# commerce to m#commerce. The reasons for these developments can be traced back mainly to technology innovations, like faster data transmission technologies and better mobile devices equipped with improved computing capacity, enhanced data storage and better user#interface. (ome other factors, like the increasing penetration of society by mobile phones and the integration of world economies have also increased the need for mobility. The high availability of mobile Introduction phones, which is greater than that of computers in most countries, is leading to concepts of new, innovative mobile services, collectively described as m#commerce. 4RADI4IO3AL COMMERCE Traditional Traditional commerce can broadly be defined as the e-change of valuable ob!ects or services between at least two parties. (uch activity includes all of the processes that each each party party undert undertake akes s to compl complete ete the transa transacti ction. on. The earlie earliest st form form of tradit tradition ional al commerce is the barter system. ) traditional 6street#side6 business that deals with its

2


customers face#to#face in an office or store that the business owns or rents. enceforth, all the components in traditional commerce are physical. The activities which most businesses engage in as they conduct commerce are called business processes. Classic business processes include7 •

transferring money and information

•

placing of orders for products

•

sending of invoices to consumers

•

delivery of goods. 3www.londoninternational.ac.uk, 24115

In short, traditional commerce means communicating 3ordering, paying5 with customer and supplier using different applications in many time#consuming different steps 3www.thalys.gr , 24115.

E-COMMERCE Commerce has a long tradition of profiting from innovative systems and tools. )s technologies emerge, opportunities

and

successful businesses are

e-pand their

quick

to identify developing

commercial capabilities. Conducting commerce

electronically is no different. 8or many businesses, new technologies that digitally e-change te-t and monetary information are effective tools to serve traditional business goals of streamlining services, developing new markets, and creating innovative business opportunities. In addition, they offer the potential to develop types of services that are so innovative and distinct from tradition that they define a new type of commerce. )ppropriately named, electronic commerce 3#Commerce5 is the synthesis of traditional

business

practices

with

computer,

information

and

communication

technologies. 3www.orlandowebdevelopment.com , 24115 )lthough there are many definitions and e-planations of e#commerce, the following definition provides a clear distinction. •

lectronic commerce, or e#commerce, is defined to be the process of businesses trading with other businesses and the formulation of internal processes using electronic links.

3


•

lectronic business, or e#business, is a term often used interchangeably with e# commerce, but is more concerned with the transformation of key business processes through the use of internet technologies.

In addition to this, a more generic definition of electronic commerce would include electronic funds transfers used by many banks as well as business to business communications

using

the

internet,

e-tranet

and

intranet

networks.

3www.londoninternational.ac.uk, 24115 8rom the analysis of the definition, we may put that #Commerce is a confluence of business operations with electronic and network technologies. Telephony and non# networked technologies such as C#'9" media may integrate into operations, but the core of #Commerce is network technologies and especially open networks such as the Internet 3www.orlandowebdevelopment.com, 24115. #commerce means processing of information using one digital application 3I or Internet5 and only a few quick steps. 3www.thalys.gr , 24115 commerce has allowed firms to establish a market presence, or to enhance an already larger market position, by allowing for a cheaper and more efficient distribution chain for their products or services. 9ne e-ample of a firm having successfully used ecommerce is &orders. This book store not only has physical stores, but also has an online store

where

the

customer

can

buy

books,

Cs

and

:s.

3www.investopedia.com $ 24115. #commerce is a very valuable weapon. Its most important characteristic is interactivity which keeps the customer involved in the companys processes. Interactivity is the mean to individuali%ation. 8urthermore, it is cheap as long as you use Internet or reform already installed I 3lectronic ata Interchange5. ;ote that installing I from the beginning is much more e-pensive than using the web. 3www.thalys.gr , 24115 There had always been illusion as to the concepts of e#commerce and e# business. *hile some use e#commerce and e#business interchangeably, they are distinct concepts. In e#commerce, information and communications technology 3ICT5 is used in inter#business or inter#organi%ational transactions 3transactions between and among firms5

4


8rom this discussion we may conclude that an e#business model must have following essentials7 1. ) shared digital business infrastructure, including digital production and distribution technologies 3broadband. )n e#business management model, consisting of business teams and5 4(e% of E-Commer"e+ (ome of the ma!or types of e#commerce include the following7 •

business#to#business 3&2&5$

•

business#to#consumer 3&2C5$

•

business#to#government 3&2A5$

•

consumer#to#consumer 3C2C5$and

•

mobile commerce 3m#commerce5.

BB E-Commer"e+ &2& e#commerce is simply defined as e#commerce between companies and involves companies conducting e#procurement, supply chain management, network alliances, and negotiating purchase transactions over the internet. &usinesses use e# commerce to lower transaction costs of conducting business and to make savings in terms of time and effort when conducting business. &eing the largest category of e# commerce, it is e-pected by most of the e-perts that &2& e#commerce will continue to grow faster than the &2C segment. 3www.londoninternational.ac.uk, 24115 5


&2C e#commerce7 &usiness#to#consumer e#commerce, or commerce between companies and consumers, involves customers gathering information$ purchasing physical goods 3i.e., tangibles such as books or consumer products5 or information goods 3or goods of electronic material or digiti%ed content, such as software, or e#books5$ and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e#commerce. Its origins can be traced to online retailing 3or e#tailing5. Thus, the more common &2C business models are the online retailing companies such as )ma%on.com, rugstore.com, &eyond.com, &arnes and ;oble and Toys 'us. 9ther &2C e-amples involving information goods are #Trade and Travelocity. 3)ndam, =.'.$ 244>5 CC E-Commer"e+ Consumer#to#consumer e#commerce or C2C is simply commerce between private individuals or consumers. &eing characteri%ed by the growth of electronic market#places and online auctions, particularly in case of vertical industries where firms
auctions facilitated at a portal, such as e&ay, which allows online real#time bidding on items being sold in the *eb$

•

peer#to#peer systems, such as the ;apster model 3a protocol for sharing files between users used by chat forums similar to I'C5 and other file e-change and later money e-change models$ and later money e-change models$ and

•

classified ads at portal sites such as -cite Classifieds and e*anted 3an interactive, online marketplace where buyers and sellers can negotiate and which features &uyer Beads  *ant )ds/5. 3)ndam, =.'.$ 244>5

B) E-Commer"e+

6


&usiness#to#government e#commerce or &2A is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government#related operations. This kind of e#commerce has two features7 first, the public sector assumes a pilot5 The table below provides a summary of the different e#commerce categories. Table 17 (ummary of the different e#commerce categories Ca!e#or(

De%"ri!ion

E5amle

&usiness#to#business

&usinesses sell products or

Arainger.com sells industrial

3&2&5

services to other businesses.

supplies to large and small businesses through its website.

&usiness#to#consumer

&usinesses sell products or

Tesco.com sells

3&2C5

services to individual

merchandise to consumers

consumers.

through its website.

Consumer#to#consumer @articipants in an online

e#&ay is an online

3C2C5

marketplace can buy and sell

commercial market place,

goods to each other. )s

often using an auction

businesses also utili%e this

system.

type, it can be considered a type of &2C e#commerce. &usiness#to#

&usinesses sell goods or

C)B#&uy portal for

government

services to governments and

businesses that want to sell

government agencies. Can

online to the (tate of

also be considered as part of

California.

3&2A5

7


&2C ecommerce. (ource7 www.londoninternational.ac.uk, 2411$ Introducing electronic commerce. )ccessed on7 9ctober 14, 2411. @#D. http7<2>2>Echpt1.pdf

4radi!ional Commer"e '% E-Commer"e+ In the following table you can see in table form the differences in media used for traditional and e#commerce. @lease notice that as far as e#commerce is concerned everything can be done through a server7 Table 27 ifference between #commerce and Traditional commerce 3on the basis of )ction Involved5 A"!ion )cquire product information

E-"ommer"e *eb pages

4radi!ional "ommer"e "aga%ines, flyers, online catalogs

'equest item

#mail

@rinted forms, letters

Check catalogs, prices

9n#line catalogs

Catalogs

Check product availability and

#mail

@hone, fa-

Aenerate order

#mail, web pages

@rinted form

(end <'eceive 9rder

#mail, I

8a-, mail

@rioriti%e order

9n#line database

Check inventory at warehouse

9n#line database, web

confirm price

phone,fa-

pages (chedule delivery

#mail, 9n#line database

@rinted form

Aenerate invoice

9n#line database

@rinted form

'eceive product

(hipper 3unless it is

(hipper 8


electronic5 Confirm receipt

#mail

@rinted form

(end<'eceive Invoice

#mail, I

"ail

(chedule payment

I, 9n#line database

@rinted form

(end <'eceive @ayment

I

"ail

(ource7 www.thalys.gr , 2411$ @ositioning Towards Customer and (upplier$ )ccessed on$ 9ctober 14, 2411. @@#F#D. http7<
Industry e-perts/ predicted e-plosive growth in e#commerce related

businesses.

9


In response to these e-pert opinions, between 1DDF and 2444, a substantial number of businesses in *estern urope and the nited (tates built out their first rudimentary e# commerce websites. 3sellitontheweb.com, 24115 owever, many of these companies went bust, due to not having sufficiently robust revenue models to generate enough income to sustain their business. )s more and more businesses competed for a fi-ed number of good ideas, internet businesses became over#valued and many bad ideas were also implemented. &y 2444, the internet business had started to see a downturn. Thousands of businesses went bust as lack of advertising

revenue

meant

they

could

not

sustain

their

early

promise.

3www.londoninternational.ac.uk, 24115 The dot#com collapse raised the concerns, and seeing its innumerable benefits, investigations were made for finding the reasons for such an incidence. These investigations came up with following serious flaws made while adopting the technology7 •

It was found that e#commerce was limited to a large degree to ( businesses and was not global in nature. 3www.londoninternational.ac.uk, 24115

•

"ost of the early e#businesses used nglish as their language of choice, henceforth, users who did not speak nglish, or who did not feel confident enough to buy goods and services in nglish, did not conduct e#commerce.

•

"any of the original e#commerce businesses were started with outside investor money#backing good ideas. They focused entirely on how internet could be used to refine business processes and reduce transaction costs and less care was taken regarding developing understanding on how these businesses could produce revenue.

•

mail has traditionally been unstructured in terms of how it was used by businesses. &usinesses used email for communications without any formal structure which required personnel to read resulting in high cost.

•

mail has also been associated with the ever increasing amounts of spam and other unsolicited content. The e-pected reliance on advertising as a revenue source was a ma!or mistake by many e#businesses. The lack of alternative revenue models or an understanding of what online advertising actually yielded in

10


terms of returns meant that many e#businesses were left with no revenue streams. 3www.londoninternational.ac.uk, 24115 4he Se"ond 2a'e+ In an effort to overcome the flaws of the first wave, and to ensure achievements of new heights, the key characteristics of the second wave of e#commerce can be understood to be based on internationali%ation and widening participation. )ccordingly, following initiatives came as a landmark to ensure wide acceptance of e# commerce7 •

"any businesses have begun to provide global e#commerce presences realising the importance of e#commerce as a global market place. *ebsites were developed in local languages which are customi%ed to local markets in terms of the content they provide.

•

9wn funds and capital was mainly used for establishing online businesses.

•

Areat effort and care is taken in devising revenue models and identifying appropriate revenue streams. There is an emphasis not on who will supply us with revenue, but how are we going to generate revenue.

•

&usinesses are willing to be fle-ible in terms of how revenue is generated, and believe that reacting to current trends is the key to establishing a successful online presence.

There has been an e-plosion in the number of internet users worldwide, and it is fair to say that most countries in the world now have internet access, if not always at the same level of quality. )vailability of broadband connections has ensured access to digital content such as video and music can be sold and e-changed online. ven greater emphasis has been put on the use of customised email strategies. &usinesses now use email for formulating deep relationships with consumers and ensuring that consumers are contacted in a timely manner. &usinesses today use a multitude of sophisticated advertising approaches that are integrated with their e#business activities. They have developed new strategies for the sale of distributed products with advertising attached. 3www.londoninternational.ac.uk, 24115 11


The main differences between the first and second waves of e#commerce are summari%ed in the table below. 4able 7+ Differen"e% be!6een !he Fir%! and Se"ond 6a'e% of e-"ommer"e+ Fir%! 2a'e

Se"ond 2a'e

ominant influence of .(. businesses.

Alobal enterprises in many countries are

-tensive use of the nglish language. Internet technologies were slow. "ost

participating in electronic commerce. The increase in broadband connections in

consumers connected to the internet using

homes is a key element. )lthough these

dial#up modems.

connections are more e-pensive, they are up to 24 times faster and can alter the way

lectronic mail was used as a tool for

people use the web. Customi%ed e#mail strategies are now

relatively unstructured communication. 9ver#reliance on advertising as a revenue

integral to consumer contact. (ome categories of online advertising,

source of many failed dot#com businesses.

such as employment services 3!ob wanted ads5 are growing rapidly and are replacing

"any new companies started with outside

traditional advertising outlets. stablished companies fund electronic

investor money.

commerce initiatives with their own capital.

(ource7 www.londoninternational.ac.uk, 2411$ Introducing electronic commerce. )ccessed on7 9ctober 14, 2411. @#1> I%%$e% in E-"ommer"e Ali"a!ion+ :arious applications of e#commerce are continually affecting trends and prospects for business over the Internet, including e#banking, e#tailing and online publishing

A.

4radi!ional Pa(men! Me!hod%+

J Cash#on#delivery7 "any online transactions only involve submitting purchase orders online. @ayment is by cash upon the delivery of the physical goods. J &ank payments7 )fter ordering goods online, payment is made by depositing cash into the bank account of the company from which the goods were ordered. elivery is likewise done the conventional way.

B.

J

Ele"!roni" Pa(men! Me!hod%+

Innovations affecting consumers7 This includes credit and debit cards, automated teller machines 3)T"s5, stored value cards, and e#banking.

J

Innovations enabling online commerce are e#cash, e#checks, smart cards, and encrypted credit cards. These payment methods are not too popular in developing countries. They are employed by a few large companies in specific secured channels on a transaction basis.

J Innovations affecting companies pertain to payment mechanisms that banks provide their clients, including inter#bank transfers through automated clearing houses allowing payment by direct deposit. 3)ndam, =.'.$ 244>5ven if e#commerce had equipped with so much of benefits, it has undoubtedly suffered with certain loopholes. :arious surveys in this regard have come up with various internal and e-ternal issues like, unfavorable economic environment, the high cost of ICT, security concerns, poor internal communications infrastructure within (" firms, lack of ICT awareness and knowledge as well as inadequacy of ICT#capable and literate managers and workers, insufficient financial resources, and the perceived lack of relevance or value#added of ICTs to their business.In general, the main issues of concern that acts as barriers to the increased uptake of information technology and e#commerce are the foll owing7 •

Back of awareness and understanding of the value of e#commerce7 "ost ("s in developing countries have not taken up e#commerce or use the Internet because they fail to see the value of e#commerce to their businesses. "any think e# commerce is suited only to big companies and that it is an additional cost that will not bring any ma!or returns on investment.

•

Back of ICT knowledge and skills7 13


•

Technology literacy is still very limited in most developing countries. (hortage of skilled workers among ("s, is a key issue in moving forward with using information technology in business. There are also doubts about whether ("s can indeed take advantage of the benefits of accessing the global market through the Internet, given their limited capabilities in distinct spheres. They can, however, capitali%e on returns on the basis that they are the low cost providers. 8urthermore, ("s doubt whether *eb presence will facilitate their own brand recognition on a global scale or not. 8inancial costs. The high cost of computers and Internet access 3high initial investment5 is a barrier for small firms to uptake of e#commerce. 8aced with budgetary constraints, ("s consider the additional costs of ICT spending as too big an investment without immediate returns. 3)ndam, =.'.$ 244>5

•

Infrastructure7 The national network
•

(ecurity and 9ther privacy#related issues7 nsuring security of payments and privacy of online transactions is a key to the widespread acceptance and adoption of e#commerce. *hile the appropriate policies are in place to facilitate e# commerce, lack of trust is still a barrier to using the Internet to make online transactions. "oreover, credit card usage in many developing countries is still relatively low. In addition, there are other related reasons and unresolved issues, such as ta- evasion, privacy and anonymity, fraud ad!udication, and legal liability on credit cards. In many countries, cash is preferred not only for security reasons but also because of a desire for anonymity on the part of those engaged in ta- evasion or those who simply do not want others to know where they are spending their money. 9thers worry that there is lack of legal protection against fraud 3i.e., there is no provision for ad!udicating fraud and there may be no legal limit on liability, say, for a lost or stolen credit card5. It is necessary to distinguish these concerns from the general security concerns 3i.e., transaction privacy, protection and

14


security5 since they may not be addressed by the employment of an effective encryption method 3or other security measure5. 3 )ndam, =.'.$ 244>5 M-COMMERCE )s content delivery over wireless devices becomes faster, more secure, and scalable, the novel inventions led the generations into the new era of mobile#commerce 3m# commerce5, and some believe that m#commerce will surpass wire#line e#commerce as the method of choice for digital commerce transactions. This may well be true for the )sia#@acific where there are more mobile phone users than there are Internet users. "obile Commerce, is the ability to conduct commerce using a mobile device, such as a mobile phone, a @ersonal igital )ssistant 3@)5, a smart#phone, or other emerging mobile equipment 3en.wikipedia.org5.

To put in simple words, "#commerce 3mobile

commerce5 is the buying and selling of goods and services through wireless technology, i.e., hand#held devices such as cellular phones and personal digital assistants 3@)s5. Kapan is seen as a global leader in m#commerce. 3;agara!u, 24145 )ccording to *ebagency, 2441, "#Commerce has been defined as under7

"obile Commerce is the use of information technologies and communication technologies for the purpose of mobile integration of different value chains a business processes, and for the purpose of management of business relationships./

*eb agency, 2441.

3www.themanager.org, 24115 "#commerce is a by#product of the technology convergence of information technology 3IT5 with telecommunication technologies 3TCT5. Together they are referred to as information and "# commerce may be thus regarded as an e-tension of electronic commerce 3ecommerce5 to wireless media. This convergence, however, enables some unique, location#based services, hitherto not possible in e#commerce. These innovative services are made possible by the convergence of these two technologies. Today, the scope of m#commerce encompasses almost every walk of life.

15


"obile services are reported in the fields of content, entertainment, travel, banking and marketing. 3Tiwari, '. et al., 244F5

8ig. 17 "#Commerce and #Commerce

(ource7 www.binarymantrasystems.com 3244D5$ *hitepaper 8uture of m#Commerce, @# 2. Fea!$re of M-Commer"e+ 1) biquity# It means that the users can avail of services and carry out transactions

largely independent of his current geographic location. 2) Immediacy# It provides real#time availability of services. 3) Bocalisation# Bocation based services such as A@(, allow companies to offer goods

and services to the user specific to his current location. 4) Instant Connectivity# This feature brings convenience to the user, due to introduction

of services like A@'( which keeps users always in touch and connected. 5) (imple authentication# "obile telecommunication device function with an electronic

chip called (I", which is easily identifiable. This in combination with an individual @ersonal Identification ;umber 3@I;5 makes the authentication process simple.

16


8ig. 27 8eatures of "#commerce

Simple Authentication Devices like SIM, PIN are effective Instant onnectivity

Ubiquity

Always!on features, hence convenient

Services available anywhere

M!ommerce

"ocalisation

Imme#iacy

"ocalise# ontent an# Services

Services available anytime

(ource7 www.binarymantrasystems.com 3244D5$ *hitepaper 8uture of m#Commerce, @age#>

*i%!or( of M-Commer"e+ "obile commerce was born in 1DDL when the first two mobile#phones enabled Coca Cola vending machines were installed in the elsinki area in 8inland. The machines accepted payment via ("( te-t messages. The first mobile phone#based banking service was launched in 1DDL by "erita &ank of 8inland, also using ("(. ) ma!or leap took place when two ma!or national commercial platforms for mobile commerce were launched in 1DDD. These included (mart "oney in the @hilippines, and ;TT oCo"oMs i# "ode Internet service in Kapan. "obile#commerce#related services spread rapidly in early 2444. ;orway launched mobile parking payments. )ustria offered train ticketing via mobile device. Kapan offered mobile purchases of airline tickets. 17


In order to e-ploit the potential mobile commerce market, mobile phone manufacturers such as ;okia, ricsson, "otorola, and Nualcomm are working with carriers such as )TT *ireless and (print to develop *)@#enabled smart#phones. (mart#phones offer fa-, e#mail, and phone capabilities. (ince the launch of the i#@hone, mobile commerce has moved away from ("( systems and into actual applications. ("( has significant security vulnerabilities and congestion problems, even though it is widely available and accessible. In addition, improvements in the capabilities of modern mobile devices make it prudent to place more of the resource burden on the mobile device. This is seen as a bridge between the gaps created by e#commerce and in#store shopping, and is being utili%ed by physical retailers as a way to compete with the lower prices typically seen through online retailers. @roducts and services available7 •

"obile ticketing

•

"obile vouchers, coupons and loyalty cards

•

Content purchase and delivery

•

Bocation#based services

•

Information services

•

"obile banking

•

"obile (tore 8ront

•

"obile brokerage

•

)uctions

•

"obile &rowsing

•

"obile marketing and advertising. 3en.wikipedia.org, 24115

Industries affected by m#commerce include7 J 8inancial services, including mobile banking 3when customers use their hand#held devices to access their accounts and pay their bills5, as well as brokerage services 3in 18


which stock quotes can be displayed and trading conducted from the same handheld device5$ J Telecommunications, in which service changes, bill payment and account reviews can all be conducted from the same handheld device$ J (ervice
and

traffic

updates

to

a

single

mobile

device.

3searchmobilecomputing.techtarget.com, 24115 Pre%en! S"enario+ )ccording to a survey made by Informa 3;ov 244L5, there are currently over > billion mobile phones worldwide, that is, appro-imately ?4O of the worlds population currently carries a mobile phone. The chart below puts this figure in the conte-t of other ma!or technologies. "obile phone adoption continues to grow. In many developed countries mobile phone penetration is well above D4O, so saying everyone has a mobile phone has become a reality.

(ource7 "obile Commerce7 9pportunities and challenges, ) A(1 "obile Com *hite @aper.8ebruary 244F dition. @)A#14. Mobile Commer"e+ Be(ond E-Commer"e+ Throughout the 1DD4s the introduction of the internet and e#commerce reshaped the way that businesses do business and the way that consumers interact with businesses. &usinesses took the opportunity to automate many processes that before would have been handled manually, from ordering to customer service. 9ne clear 19


e-ample is the way that spending on advertising has begun to shift from traditional off# line media to online and digital media as advertisers have seen an opportunity to better connect with their target audience. I&" forecasts 22O growth in mobile, digital and interactive advertising formats between 244H and 2414 against ?O growth in traditional advertising formats. "obile commerce, often referred to as m#commerce, builds on the advances made by ecommerce 3such as automated, electronic processes5 but makes interaction available to a wider audience in a more personali%ed way. Bike any emerging market, there are many propositions about how to use this technology. (ome organi%ations adopt an aggressive policy and want to get something moving as fast as possible whilst others adopt a wait#and#see approach. )s a result, proprietary solutions are developed that make integration with e-isting systems or by multiple partners comple- and costly. )t the same time, multiple solutions create a comple- landscape for businesses and consumers alike # making it difficult to choose which solution to use. The other difference between ecommerce and m#commerce is the opportunity to connect information with ob!ects in a more direct way than has been possible until now. This is the world predicted by the Internet of Things, a report published by the International Telecommunications nion 3IT5 in 244G, where ob!ects have a life and history of their own that we can use to our advantage. The mobile phone can be the tool that connects the physical and virtual world. )t the base of this vision is the ability to identify ob!ects uniquely. *hat is special about mobile phones is the fact that they have massive adoption globally. "any more people have access to a mobile phone that to a computers and this means that m#commerce has the opportunity to connect not !ust big businesses but also small business and consumers on a massive scale. In this sense, mobile phones have the potential to bridge the digital divide and allow organi%ations and individuals to reach out to one another more easily than ever before. *ere moving into a world where digital goods are becoming as important as physical goods. ue to the internet, value is created not !ust by goods themselves but by the e-changes of those goods. 9rganisations that can facilitate that e-change 3for e-ample by creating communities of users with similar interests5 have a significant competitive advantage in 20


this networked world. 8urthermore, these communities can be leveraged to increase sales of physical goods through more engaged users. 3A(1 "obile Com, 244F5 8uture Categories7 In the future other categories will come to light, mirroring technologies !ust now gaining steam on the internet. @otentially, peer to peer networks will develop in the wireless world, )lthough no such technology e-ists today. 8or instance, going back to the vending machine e-ample, what if vending machines in a certain area, say a college campus, could talk to each other in a peer to peer fashion. *hen a machine runs out of a certain type of product, and a user shows up and requests that product, the machine can refer the user to the closest machine which does have the product in stock. @ossibly even forwarding the money already entered to the new machine. This is !ust one e-ample of the many technologies, most not yet even thought of, which will undoubtedly develop under the umbrella of m#Commerce. 3unter, K.B.$ 24425

CO3CL&SIO3+ 8rom the above discussion we can easily put#forth that commerce has gone through revolutionary changes to keep pace with changing world. In this wake, it has traveled phase of traditional commerce to e#commerce. #commerce had played game changing role for businesses around the world. )lbeit, having some drawbacks, it had generated enormous opportunities for businesses to accelerate upon others. ven, it opened the path for future technological development possibilities for the businesses for ensuring easy access to customers. This possibility and innovations in technology led to the emergence of a recent phenomenon # m#commerce/. Innovation in mobile market had made it all possible. owever, with it had aroused certain concerns regarding its use and security. (eeing the enormous opportunities in this field, it is required that the initiatives should be carefully framed out keeping in mind all possible loopholes that may arise in future, to escape it from any failures.

REFERE3CES+

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)ndam, =.'. 3244>, "ay5$ #Commerce and #&usiness$ )(); Task 89'C. ndp# apdip. @#L Ibid. @14#12. Ibid. @@#12#1>. Ibid. @#1>. Ibid. @@#1>#1G. Ibid. @#24. Ibid. @#21. Ibid. @#>1. Ibid. @#>2. en.wikipedia.org 324115$ "obile commerce. 9ctober 14, 2411. "obile commerce$ http7<. unter, K.B., 32442, )pril D5$ m#Commerce7 'eality &ehind the ype. !ci%%o.com, 324115$ Traditional Commerce. )ccessed on7 9ctober 14, 2411. http7<
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(teinfield C. 324425$ nderstanding Click )nd "ortar #Commerce )pproaches7 ) Coneptual 8ramework )nd 'esearch )genda. Kournal of Interactive )dvertising$ :ol 2

;o 2 3(pring 24425, )merican )cademy of )dvertising. I((; 1G2G‐241D. @@. 1‐14

Tiwari, '., &use, (. erstatt 3244F5$ 8rom lectronic to "obile Commerce7 9pportunities through technology convergence for business services$ C)CCI Kournal, :ol. 1, 244F. @@ 1#2. www.investopedia.com 324115$ &rick )nd "ortar. )ccessed on$ 9ctober 14, 2411. http7<"Q!f www.londoninternational.ac.uk, 324115$ Introducing electronic commerce. )ccessed on7 9ctober 14, 2411. @#F. http7<2>2>Echpt1.pdf Ibid. @#D. Ibid. @#11. Ibid. @#1>. 666.orlando6ebde'elomen!."om8 &nder%!andin# E-Commer"e. )ccessed on$ 9ctober 14, 2411. http7<

www.themanager.org 324115$ "#Commerce R the ne-t ype+ S 9liver 'ecklies, "arch 2441. 9ctober 14, 2411. www.themanager.org
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1 - E-commerce vs Mobile Commerece

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