Forget the attractions of marketing to one billion mobile
subscribers - the profit will be in mobile B2B, writes John
Fallon
E-commerce is already revolutionising the way we work, shop and do
business but the transformation to a digital economy will not be
complete until mobile commerce becomes a workable reality.
In the never-ending search for the newest application or wireless
gadget, are we forgetting to address the real business requirement
to mobilise enterprise applications? Amid all the hype there needs
to be a critical look at creating new mobile business applications
to foster a natural cycle of innovation built on profitable
m-commerce.
If the mobile revolution is to prosper or even survive, I believe
new business models and revenue streams must not only be explored,
but also turned into reality. The "new economy" has learned the
hard way that however sexy the concept, its survival is dependent
on an ability to generate sustainable revenue.
The focus in Europe to date has been very much on the consumer
lifestyle element of the m-commerce revolution. This is due to high
mobile phone penetration rates, the nature of devices with their
small screen size and storage capacity, and networks with their low
bandwidth and dial up connection speeds, as well as the
consumer-centric marketing efforts of the phone manufacturers.
According to research company Ovum, there are currently 500 million
wireless subscribers and by 2003 there will be more than a billion
subscribers creating a glittering long-term market prize for
m-commerce. However the allure of the consumer market has taken
some of the focus from the smaller but more profitable B2B
opportunities.
By contrast, in the US there is a robust and dynamic market of
application developers satisfying the mobile business opportunity.
The sheen on the mobile consumer market is adversely affected by
the lower market penetration of mobile phones and the relatively
widespread access of broadband home Internet connectivity.
These factors, together with the critical mass of personal digital
assistant users and availability of different packet networks - and
pricing to match - mean that there is a real focus on mobile
e-business and the mobility of knowledge workers in the US.
The US is creating revenue-generating business applications now.
If it is not careful, Europe could find any competitive advantage
it has over its transatlantic cousins in the mobile space, eaten
away.
However, if the demand for mobile business in Europe follows the
skyward and scattergun pattern that analysts suggest it will,
businesses will have to adapt.
Primarily, existing in-house systems need to be "mobilised" in a
secure, easily manageable and cost effective manner.
For businesses to move seamlessly into the mobile age, they must
ensure that e-mail and customer relationship management (CRM)
applications are at the top of their to-do list. Since customers
and staff are the single two most important assets a business has,
related applications must underpin any m-commerce strategy.
Priority applications are:
- E-mail - the most commonly-used information-sharing application
in business
- CRM/sales force automation
- Corporate intranets
- Resource/logistics management
- Directory listings.
Standing between the reality of m-commerce today and the full
potential of mobile e-business are the problems presented by
bandwidth and security. Wireless networks currently provide very
low bandwidth and thus wireless data is five times lower than data
transfer over an ordinary telephone modem, and at least 10 times
slower than Internet access from a typical office network.
However, with commercial general packet radio services becoming
available in the coming weeks and third-generation investment
commitments in many countries, bandwidth is an obstacle the
industry is getting ready to hurdle.
Security can unlock the potential of m-commerce and m-business. It
is an enabling rather than restrictive force that builds trusted
relationships between businesses, their partners and consumers on
the move. So, let's see if humans really can learn from history and
build security into m-commerce from the beginning.
John Fallon is director of wireless at Baltimore
Technologies