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?
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.
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.
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.
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.
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:
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. |
 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 |
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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 With For the If you However, As the consultants and |
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.
|
|
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