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MOBILE SERVICES: M-enabled, and Everywhere to Grow

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VoicenData Bureau
New Update

In the strict classification of B2B and B2C, mobile service is often

categorized as a pure B2C (consumer)



service. Why is it featured here then, along with other services targeted at
corporate and enterprise customers?

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The reason is simple. The ‘consumers’ of mobile services also happen to

be the customers, employees or partners of the enterprises. Their mobile devices–so

far more or less synonymous with mobile phones–make it possible to access

useful information anytime, anywhere from an enterprise. In some cases, it is

also possible to perform certain ‘tasks’ that involve pure flow of

information, such as bill payment or account transfer.

The best way, then, to categorize what enterprises can do through mobile is

to look at it from the point of view of users and their needs. In that respect,

it can be classified as follows:

n Business to Employee: By far the most tangible returns have come from

these applications. This, in simple words, is extending the intranet to be

accessed from mobile devices. These can be further subdivided into two

categories. One, personal productivity such as mobile organizers, closed user

group chat, e-mail, and Internet access. Two, business process enablement such

as sales force automation, other online updation and retrieval of information.

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n Business to Consumer: This, though in infancy, is

supposed to be the next big thing. As more people start accessing information

from their mobile devices, the potential of this channel is touted to be

immense. On one hand, it could be a personal communication channel like the

telephone; on the other hand, a ‘class’ if not a mass media like print or

television.

Again, the applications can be broadly divided in two categories.

One, applications for existing customers such as customer support, commonly

enveloped in the phrase CRM. Two, applications targeted at potential customers

like advertising and marketing and mobile transactions such as m-commerce,

commonly called mobile marketing.

n Business to Business: This is another area where a lot

of action is happening on the ground. This, in reality, is extending a company’s

extranet to be accessed from mobile devices. Common examples include

applications for insurance agents, and various supply chain applications like

shipment tracking.

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Return on Investment



Return on investments in a mobile enterprise is realized in terms of the following:

n Improved Individual Employee Performance: Boosting

productivity by leveraging enterprise applications, corporate data, and e-mail

for mobile workers.

n More Efficient Business Processes: By allowing access

to information anytime, anywhere, employees and partners (depending on

application) are enabled to take decisions on the spot, thus reducing turnaround

time. Also, the enterprise database is updated on a real time. Both these

contribute to process efficiency.

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n Better Partner Loyalty: By giving the business

partners like distribution channels access to information, anytime, anywhere, a

company can not only increase the efficiency of the process, but keep them too.

In highly channel-oriented industries, this is a huge advantage.

n Reduced Costs: Accessing information via mobile

reduces costs by providing a less expensive means to interact with both

employees and customers.

n Customer Acquisition and Retention: Acquiring

customers by reaching a wider audience unconstrained by time and place.

Retaining customers by providing service on their terms, anytime they want.

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n Increased Competitive Advantage: Increasing market

share by heightening product awareness through innovative marketing campaigns.

n Revenue Generation: Increasing revenue by selling the

right product to the right customer at the right time for the right price, as a

mobile is with the customers/potential customers all the times. Location-based

services have magnified the scope of this opportunities manifold.

Who Should M-enable?



The decision to go wireless is one that every company will have to face at some point of time. Most of the businesses already

understand the value of wireless connectivity to their employees and are

confident that the technology is maturing. A good



candidate for m-enabling would meet the following criteria:

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Who Should M-enable?

The decision to go wireless is one that every company will have to face at some point of time. Most of the businesses already

understand the value of wireless connectivity to their employees and are

confident that the technology is maturing. A good



candidate for m-enabling would meet the following criteria:

n It is in a business where the value of time on the

cost/revenue is significant. Mobile, being anytime, anywhere, can make a

big difference.
n Has a robust backend, where data gets updated online

or at least at the end of the day, with an Internet connectivity.
n Has a need to keep customers informed of relevant and

critical information on a preemptive basis or let them access information

anytime they want.
n Has established a firm RoI for going wireless.
n Has a medium-to-large field sales force and distribution

network.
n Has an Internet presence, providing dynamic

information.
n Products and services are targeted at the youth.
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 The initial success stories globally, especially in Europe,

show that some verticals have taken to the mobile enterprise more aggressively

than others. B2C services companies that have a regular information exchange

with customers–banks, telcos, airlines, utilities, and travel companies–have

been at the forefront of deploying applications like customer support, alerts,

etc. While logistics/courier, IT, and FMCG companies have taken to the B2E and

B2B applications, media, retail, foodchains and some FMCG companies have gone

ahead to unleash mobile’s potential as a marketing medium.

Mobile banking, field-force automation, shipment tracking,

airline schedules, and content-based applications have been the most popular

applications in the US. In India too, their deployment has begun. However, the

concept of ‘mobile workforce’ is still at an embryonic stage in India. Much

of the mobile applications in the US are on palm devices, as palm is a wireless

network there. A lot of formatted information are sent and received over a palm

device through effective applications.

Embarking on an M-journey

Usually, the idea for doing something through mobile originates from a specific process manager who sees the value. In essence, that

is how it should be. A process manager is the best person not only to take a

decision on how that would help his process but also to measure the return on

investment in specific terms.

The

Mobile Services Market
Operator No of Circles Subscribers* Percentage
Bharti 15 27,74,558 26.5
Hutchison 7 20,24,262 19.3
Idea 5 12,04,343 11.5
BPL 4 10,79,313 10.3
BSNL 17 789,694 7.5
Spice 2 635,646 6.1
Escotel 3 568,510 5.4
Reliance 7 500,607 4.8
Others 8 903,497 8.6
Total 68 10,48,0430 100
*As

on 31 Dec 2002

However, if in a progressive enterprise with early adapter

mindset, multiple process managers are thinking on m-enabling their processes to

get some clear value, more often than not, they will end up in a stage where

information generated by one process could be extremely valuable for another

process. To take full benefit of applications if such a situation arises, what

is needed is a format of information that can be accessed by various

applications, and maybe a common database/middleware.

M-enablers in India
Air2Web www.air2web.com 
Cellnext www.cellnext.com 
Everypath www.everypath.com 
Infosys www.infosys.com 
Isolv www.islov.co.in 
Lifetree

Convergence
www.lifetreeindia.com 
MobiApps www.mobiapps.com 
Openstream www.openstream.com 
Tarang

Software
www.tarangtech.com 
Trinity

Systems
www.trinitymobile.com 
Unimobile www.unimobile.com 
Wabot

Labs
www.wabot.com 
WDC

Solutions
www.wdcsolutions.com 

While the functionality of an application is pure discretion

of the concerned process manager, the advantages are optimized if the backend

information systems are standardized.

In a way, it is the same way IT implementation was happening

in the initial days.

With two important differences, of course.

One, the processes are streamlined, thanks to the IT systems

in place. So one does not have to start from scratch. Two, technologically,

integration is more complex. Because, all the mobile middleware and applications

have to be completely integrated with the existing enterprise information

systems, in order to have a seamless information enterprise.

In other words, an m-enablement strategy must envelop the

whole enterprise, even if the rollout is in phases. Wireless application is all

about instant access to critical information and an integrated backend is what

the organizations should move towards.

Mobile should be integrated not with just the existing

business processes; it should also be integrated with enterprises’ existing

information infrastructure. It can be another channel of accessing the

applications. In cases where an enterprise has an existing Web-based

infrastructure for a particular business process, that should be upgraded to

work with mobile. This requires little extra effort, and saves both time and

cost. Companies that have not gone for Web-based processes and are planning to

deploy them now should be mobile-ready.

technology terms, what does that mean?

In order to maximize return on investment for wireless initiatives, corporates should consider the following critical factors while

deciding on a mobile enterprise strategy:

CDMA

or GSM? The Big Question

The

question has two aspects. One, which is more cost-effective? Two, which

one is better suited for applications that enterprises will need to run?

With

voice tariff getting flattened, there is little to ponder over the first

question.

For the

second question, it really depends on what you are looking at in the short

term. In the medium to long term, we believe, both the technologies will

grow to offer everything.

If you

are looking at B2C information applications or any B2E, B2B application,

GSM with SMS is superior. However, if you want data transfer, CDMA is

better than even GPRS. The good thing about SMS is that it is already

popular, has a sizeable user base, is easy and cheap. You will get many

integrators in India and abroad who can do it for you flawlessly. It’s a

proven technology.

However,

if are interested in marketing promos, with more proven multimedia

capabilities, CDMA is better. What is more, Reliance, which will probably

be the most important player in the CDMA space, is actively pushing video

applications. For delivering an ad, that is definitely more effective than

text.

As the consultants and

analysts say, the choice is yours.

n Readiness of the Backend System: Wireless applications

are primarily meant for providing timely information that’s accurate and up to

date. An enterprise must evaluate how ready it’s to ensure that. It should

have a proper system in place for receiving information from different locations

and departments and have a backend that’s really current. Enterprises that

have gone wireless, have back-ends that are updated online or at least on an

end-of-the-day basis.

As a first stage, before going wireless, the enterprise

should be in a position to offer similar services on the Internet, through an

effective website. That’s a good index of the state of readiness to go

wireless.

n Evaluation of Devices and Applications for Those

Devices:
The issue of standardization on specific wireless devices often arises

as companies embrace wireless technology. However, a solution that only accesses

a small number of devices limits its overall value to businesses.

n Employee-purchased Devices: Many businesses allow

employees to purchase wireless devices and reimburse them for the device itself

and/or for business-related airtime. Device choice, even in work environments,

will continue to be highly personal.

n Needs-driven Device Selection: Mobile users have many

different requirements and personal preferences. Some spend hours in a car where

a voice-based device and voice access to corporate data is ideal. Others work in

an environment where a keyboard-based device and advanced graphics capability is

most desirable. There are currently over 1,000 models of mobile devices in the

market.

n Device Diversity: Wireless devices, driven by low-cost

technology, are proliferating. Suppliers pay little attention to product

upgrades and backward compatibility. Time to market is paramount. Although

mobile devices are expected to converge to a set of features and performance

standards, convergence to a single form factor is highly unlikely.

Due to rapid device evolution, enterprises that commit to a

mobile solution that only support a handful of devices may find it to be

inadequate in less than a year. Trying to take advantage of new devices as they

come in the market is more expensive than choosing a mobile platform that

already supports an array of device types.

n Security Issues: Wireless security is inherently

different from LAN-based security. Enterprises must be aware of how traditional

security challenges change in relevance in a wireless world. Key considerations

include:

n Privacy: This is the most important component of

secure transactions and is required when transmitting sensitive information

(such as credit card numbers, financial details or patient records) so the

information cannot be seen or used by other parties. Established privacy

protocols and procedures are critical for wireless applications as wireless

transmissions are ground zero for hackers.

n Authentication: Electronic authentication typically

involves using a token or certificate that can be verified by a recognized

Certification Authority (CA). Digital signature technology (popularized by

VeriSign) is one way of authenticating users. Gartner Group adds, "With 98

percent of recently surveyed companies reporting mobile device theft, simply

authenticating the device is insufficient."

n Two-factor Authentication: This process is used to

verify both the device and the identity of the end-user during a secure

transaction (two-factor authentication confirms that both the device and the

user are authorized agents). Two-factor authentication is critical in protecting

network integrity from the inevitability of stolen or lost devices.

n Data Integrity: This concept involves the detection of

any change caused to the content of a message. For example, when an end-user

instructs a bank to transfer Rs 1,000 from one account to another, integrity

guarantees that transaction specifics in the user’s message cannot be altered

without alerting the bank or the user. If the message is altered in any way

during transmission, an integrity-driven security system detects this

alteration.

n Non-repudiation: This process establishes a system

such that users cannot deny they took part in a transaction. Non-repudiation is

similar to authorization, in that it requires successful authentication of the

user, but it also establishes a credible and legally enforceable record of all

transactions.

n Encryption: Encryption involves scrambling data bits

using mathematical algorithms to protect data.

Additionally, the selection of a suitable mobile operator is

a must and that is discussed in detail separately.

Service Provider as a Partner

Observers believe that any mobile deployment in an enterprise cannot succeed, at least initially, independent of the mobile

service provider (remember, it is mobile that we are talking about, not

wireless). That being the case, the success of your mobile strategy will depend

a lot on the capability and service offering of your service provider. And

remember, at this stage of the market, most of the mobile service providers are

not interested in going out of their way to help you in building your virtual

mobile infrastructure. Most of them are in the topline growth phase and are

looking at expanding subscriber base, and if anything, in creating B2C content

applications for driving ARPU. This has only been accelerated after Reliance’s

entry.

That means the onus of getting the best out of service

providers lies completely with you. The good news is that, today, apart from SMS,

GPRS is available to run your data applications. The bad news is that you have

to push them if you want to deploy any new technology. You have to work with

vendors, integrators and application developers and push your service provider

to provide what you want–a good throughput, connectivity at places where you

need it, and reliability. Because once you start using critical applications on

mobile, reliability is going to be extremely important, especially for

customer-oriented applications.

Selection of Service Providers

Usually, most of the cost (about 80 percent) that an enterprise today incurs on mobile services, is voice-related. However, with

voice tariff becoming flat, an enterprise can select its mobile operator by

giving utmost importance to parameters like network quality, service quality,

and reach. Here are some tips:

n One Carrier: It is always better to stick to one

operator across all your areas of geographic presence. Ask for arrangements on a

national basis. If you have multiple offices with considerable number of users

in a few of them, go for a national arrangement. This will not only give you a

better deal, but will also help you in terms of managing the relationship better

at a centralized level.

n Don’t Go by Brand Names Alone: Brands are important.

But for business users, you must measure your investments in clear value terms.

Here, the guiding parameters would be quality-of-service, network, and customer

care.

The Pioneer

M-Enterprises
Vertical Enterprise Application M-enabler
Banking,

Finance and Insurance
ICICI Enterprise and credit card

alerts
Air2Web
ICICI Prudential Life

Insurancealerts, pull-based query

and broadcast for agents and customers
Cellnext
Alerts for

ICICIdirect.com, online trading site
ISolv
Citibank Alert services ISolv
ABN AMRO Enterprise and

credit card alerts
Air2Web
HDFC Enterprise and

credit card alerts
Air2Web
American Express Selected credit

card customer alerts
Cellnext
Bank Muscat Web SMS Air2Web
Greenback Forex Forex alerts Air2Web
Bank of Punjab Mobile banking Lifetree
OM

Kotak Mahindra Life

Insurance
Insurance agent and channel

management
Lifetree
SBI Life Insurance Insurance agent and channel

management
Lifetree
Airlines Air Sahara Alerts and flight info query Lifetree
Jet Airlines Alerts and flight info query ISolv
Consumer

Durables
HLL Alerts to dealers and sales

force
Air2Web
and

Non-durables
Amway Pull-based info for

distributors
Cellnext
Onkyo Alerts to dealers and sales

force
Air2Web
Events Expo Point Event alerts for participants Air2Web
Current Booking Ticketing through SMS WDC Solutions
Logistics UPS Delivery

status, quick cost, duration

indicator
Air2Web
Elbee Delivery status Air2Web
Gati Delivery status, alert, on

line status updation
Air2Web
Media

and Information Services
Indiatimes 8888 mobile portal  Lifetree
s Customer alerts Air2Web
Indian Express Customer alerts Air2Web
Sify Cricket score for NRIs Air2Web
s Alerts for borrowing centers Air2Web

n Larger Subscriber Base Means Nothing: A larger subscriber base is a

statement of success in marketing rather than any stamp on quality of service.

So do not go by the subscriber base. In a few cities in India, the network

quality of the leader is often worse than the other operator because of high

load on the network. But again, this may not be true in all cases. You need to

evaluate the network quality properly before selecting your mobile

carrier.

EXPERTS

PANEL

Atul

Chopra,
CEO,

Lifetree Convergence
Manju

Murthy,
CEO, WDC

Solutions
P

Sankaran,
CEO,

Air2Web India

Case Studies

GATI–Consignment Tracking



Gati Ltd, one of India’s leading cargo and logistics companies, with more than
200 offices all over India and annual revenues of Rs 250 crore, offers an array

of technology and Web-enabled services to help its customers manage the flow of

goods and information. Today, Gati customers can track their consignments and

also be informed of delivery through SMS on their mobile phones.

The Need and the applications



Gati identified two wireless access features that its customers wanted most:

n Tracking the

status of the consignment sent



n Information on
when consignments are delivered

The Solution



Whenever a consignment is delivered, a Gati delivery person sends an SMS

containing the delivery information, which updates the corresponding record in

the database on Gati’s central Web server.

The customer can track the status of a consignment in transit as well as get

information of delivered consignments by sending an SMS request. On every status

update about the consignment in the database, an SMS is sent to the customer.

The wireless applications are hosted by Air2Web and the Air2Web Mobile

Internet Platform (MIP) is linked to many carriers. Gati pays Air2Web for every

message and Air2Web in turn pays the carriers at agreed bulk rate.

The Returns



Gati anticipates that its Air2Web solution will result in increased cost savings
and the opportunity to generate new business.

"At this point, all wireless services we offer are value-added services

at no additional cost to our customers," GS Ravikumar explained. "We,

however, do anticipate a return on our investment through cost savings resulting

from a lower demand on our call centers, as people access information through

their wireless device rather than calling in for status of consignment. The

overriding benefit is increased customer satisfaction and customer

retention," Ravikumar concludes.

Courtesy: Air2Web

Bank of Punjab–Mobile Banking



Since 1995, Bank of Punjab (BoP) has been one of the largest private banks

in India. It is currently operating 60 branches across seven states in India.

BoP has deposits of over Rs 1 billion with more than 386,000 customers.

The Solution



MDX+ is a flexible, customizable and scalable proprietary mobile banking
application developed by Lifetree Convergence, and does the following:

n Provides

two-way access on SMS platform



n Independent of any
service provider



n One mobile banking
access number all over India

Services Offered by BoP



Some of the services offered through mobile banking are as follows:

n Balance

Inquiry:
Customers can check their balance, any time and from any location



n
 Cheque Book Request: After the request, the cheque book is

delivered at the customer’s address



n Change
Operative Accounts:
Through this service, customers can change their

operative/default account and perform transactions from their accounts



n Change PIN: Customers
can change the PIN number for their accounts

Integration with Bancsconnect



The back-end integration of MDX+ server was done with Bancsconnect, provided

by Infosys Technologies. The process begins with the mobile user sending a

request. The MDX+ Server establishes connection with Bancsconnect. Request coded

in ISO 8583 format is sent to Bancsconnect. Bancsconnect processes and sends the

response to MDX+ server in the ISO 8583 format. MDX+ server decodes the

response. Response is sent back to the user.

Benefits to the Bank



n High service

quality to existing customer base, which perceives added value from ease and

convenience



n Enhanced customer
satisfaction and loyalty



n Reduced customer
churn



n Provided
innovative offerings that leveraged the competitive position



n Reduced the total
cost of operation



Courtesy: LifeTree Convergence

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