making commerce mobile: strategy and trends of mobile commerce

© 2012 IBM Corporation@IBMMobile | #IBMatMobileCon

Making Smarter Commerce Mobile: Strategy and Trends of Mobile Commerce

Chris ShawWorldwide Industry Lead for Smarter Commerce - Communications

© 2012 IBM Corporation2 @IBMMobile | #IBMatMobileCon

IBM’s strategy addresses client mobile initiativesExtend & TransformManage & SecureBuild & Connect

Key Capabilities• Strategy, planning and

implementation• Mobile-enabled solutions

including analytics, commerce, and social business

• Mobile as a service

Key Capabilities• Mobile web, hybrid and

native app development• Enterprise data, service,

and application integration• Enterprise wireless

networking

Key Capabilities• Mobile lifecycle

management• Device analytics and

control• Secure network

communications & management

Build mobile apps

Connect & run mobile systems

Manage mobile devices and apps

Secure my mobile business

Extend capabilities to mobile

Transform your business


IntroductionMobile Commerce Opportunities

Implementing Mobile Commerce

Agenda


Consumer experience, “bring your own device” (BYOD) and “context aware” are driving much new enterprise use

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66% CAGR

Source: IDC 2010

WW Mobile Applications Opportunity

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2010 2011 2012 2013 2014 2015

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Mob

ile In

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20% CAGR

Source: IDC 2H 2010 - IH2011

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2010 2011 2012 2013 2014 2015

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Mobile Platform Mobile Security Device Management

Mobility is thesecond area

of investmentwith 74%

300,000 iOS & 700,000 Android devices activated

PER DAY

Gartner: By 2013,mobile phones will overtake PCs as the most common Web access device worldwide

Access to mobile networks is now available to 90% of the world population and

80% of the population living in rural areas.

Market opportunity around

Mobile is adjacent to our business and provides

AIM a large & fast growing opportunity to drive

Middleware revenue as enterprises extend IT investments to reach

customers in new ways and enable workforces with anywhere, anytime

access to data and applications

Source: 2011 CIO Study, Q12: “Which visionary plans do you have to increase competitiveness over the next 3 to 5

years?”(n=3,018)

Mobile is a game changerJust like the internet sparked the growth of the web and e-business, a new frontier of growth and opportunity exists around mobile devices across industries

http://www.applemobizone.com/archives/64295

http://www.gartner.com/it/page.jsp?id=1278413




2. Proliferation of Modes and Methods for Commerce Exponential growth in Mobile and Social Commerce Mass customization and personalization of products and services

Mobile is shaping the commerce marketplace 1. Technology Adoption Rates are Accelerating 2.3 billion people are online (Dec 2011) 5.9 Billion mobile phones worldwide (2011) 1.2 Billion use phones to browse Internet April 2012

3. Consumer Buying Behavior Continues to Evolve Focus is on value, transparency and accountability Consumers are increasingly technology savvy, more demanding, making

tradeoffs, and “Showrooming”

4. Increasing Brand Fragmentation Consumers are experiencing brands in new ways across multiple touch points Marketers challenged to deliver a consistent brand message and value

proposition

EvolvingShopping

Experience Expectations:

Timely Localized

Experiential Personalized

Information

Sources: http//www.nae.edu/cms/Publications/The Brodge/Archives/7356/7596.aspx; Internetworldstats.com; Strategy Analytics; Informa

800M140M


Objectives For Smartphones And Tablets

June 2011 “Mobile Commerce Forecast: 2011 To 2016”


Mobile computing is fundamentally changing how businesses interact with their customers

Business-to-ConsumerEnabling customers to shop across

multiple mobile devices

Business-to-EmployeeEmpowering retail store associates to serve customers anywhere in the store

Mobile MarketingAnalyzing mobile usage and executing

mobile campaigns




© 2012 IBM Corporation8 @IBMMobile | #IBMatMobileCon88

Leading to fundamental changes in the concept of a store?

Taking the store out of the store

Taking the store to the customer

Source: “Tesco opens worlds first virtual store” htt,p://www.archello.com/en/project/tesco-opens-worlds-first-virtual-store


Introduction

Mobile Commerce OpportunitiesImplementing Mobile Commerce

Agenda


Sourcing, controlling and procurement of goods and services

Targeted and personalized marketing across all customer interactions

Selling and fulfillment of products and services across all channels

Servicing customer needs

across all interaction

channels

MarketBuy

Service SellCustomer

Insight Strategy

Engagement


The lines between virtual and physical are blurring … disappearing

Outside the Store Inside the StoreShopping List

Aisle 3

Aisle 11

Aisle 9


A superior shopping experience now includes mobile commerce as a key touch point

TransactPost-transaction

RelationshipDevelopment Product

Affinity

Browsing

PurchaseDecision

Transact

Purchase Decision

Browsing

Store Entry Demand Generation

Post-transaction

Customer id, personalized experience & offerings

Product information, product look-up, IRC

Cross-sell, up-sell, availability

In-store & online payment scenarios

Warranty services, digital receipt

Provide personalized messages and alerts to your customers: product specials, recalls, etc

Product information, Consumer reviews

Compare, Cross-sell/up-sell, availability & Store locator

CCIS, Online payment

WISMO, Warranty services, digital receipt

Retail Integration Framework

Customer Interaction Platform

Product or category level awareness & education

Messaging, alerts, promotions(proximity, opt-in, loyalty)

Multi-channelcustomer experience

In-store customer experience


Re-engineering commerce around mobileAll aspects of commerce should be evaluated to see what

“Points of Engagement” can be improved by utilizing mobility

Build a shopping list Pre-populate a list based on history Awareness of holidays and other important dates Suggestions based on choices or actions

Choose a physical store Assures the items you want are in stock

Visit the physical store Provide directions to get there Proactively offer assistance when the customer enters the

store

Locate items on the shopping list, and inform where in the store to go

Request assistance from remote or in-store associate

Select products in the store Show reviews, friends' feedback, special prices, health

information (etc) about the products

Pay for products Self scan by phone Pay by phone

Consume products Capture comments and feedback as the products are

being used

Customer runs out of products Add to shopping list for next purchase

Mobile Points of Engagement


Consumer expectations are soaringConsumers expect a real-time, digital experience with personalized recommendations, offers, and rich production information that is

infused into the store environment.

Goals: Increase sales, profit, loyalty, and consumer confidence

Example: ARISTO Shopping AssistantThe shopping experience is tailored to the customers preferences, needs, wants, and shopping mission in real-time at the store shelf and without adding additional headcount or labor.


Enable consumers to receive information and special offerso Product information, Special price info directly super imposed on the products of

interest

Consumer simply pans the store shelves with his personal mobile deviceo Relevant information is super-imposed on the image

Improve in-store experience o Far superior to barcode scanning

Augmented Reality for In-Store Offers

$0.37/100 gr

$0.66/100 gr

$0.33/100 gr

$0.59/100 gr


IBM Research – In-Store Presence Zones“Context will be as influential to mobile consumer services and

relationships as search is to the Web” - Gartner Pain Points - Retailers lack information:

Which store areas are visited the most/least Typical path shoppers take in store How long customers spend in different areas Which areas have no store associates

Solution: Deployment of Presence Zones with sensors in each dept. Sensors identify people when they enter & leave areas Enables analysis of frequency & duration of visits to each dept.

Benefits: More effective marketing; determine where to position signs, ads, kiosks Employee optimization for better customer service Optimization of store infrastructure such as heating/cooling


Mobile strategy for consumers Deliver the experience that individual consumers want

o A first class mobile browser solution for those that do not want to install a mobile app

o A rich mobile app solution for those customers that choose, utilizing device capabilities, and supporting a wide range of device types

o In all cases, the solution should be optimized for the device, screen size, resolution, and interaction style

Mobile analytics can be leveraged for monitoring the mobile usage

Leverage the fact that a mobile device is more than just a portable desktopo Location based services, presence, and mobile payments/loyalty are key

enablers for an exceptional shopping experience


Introduction

Mobile Commerce Opportunities

Implementing Mobile Commerce

Agenda


Application targetsFrom browsers to tablets to smartphones … and beyond


Mobile application types

Native AppsPlatform-specific. Requires unique expertise, pricy and long to develop. Can deliver higher user experience.

Native Application

Device APIs

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1000001010101

Hybrid Apps - MixedUser augments web

code with native language for unique needs and maximized user experience.

Native Shell

Web Native

Device APIs

<!DOCTYPE html PUBLICcreated 2003-12</p></body></html>

10010101010111010010101010101010010010010111100100110010

Hybrid Apps - WebHTML5 code and Worklight runtime libraries packaged within the app and executed in a native shell.

Native Shell

Web Code<!DOCTYPE html PUBLIC<html><! - - created 2003-12-1<head><title>XYZ</title</head></body></html>

Device APIs

Web AppsWritten in HTML5 JavaScript and CSS3. Quick and cheap to develop, but less powerful than native.

Mobile Browser

Web Code<!DOCTYPE html PUBLIC<html><! - - created 2003-12-12 - - <head><title>XYZ</title></head><body></p></body></html>

Browser Access Downloadable Downloadable Downloadable

Browser Access Hybrid Apps - Web Hybrid Apps - Mixed Native Apps


Why is mobile different?

Mobile users require efficient and timely access to information.

Interactions are short and focused, interruptions are common.

Devices are often exclusively touch-based. User interfaces must be easy and obvious.

Screen real-estate is precious.

Typing should be minimized.

Applications must be usable without connection or moving between connection types.

Timeliness of data must be communicated.

Security is critical.

Mobile hardware and user interfaces evolve much faster than the typical enterprise software cycle.

Mobile users today expect high-fidelity access to the same information they have on the desktop, presented in an easy-to-learn, mobile-friendly format.

The mobile provides contextual information about the person carrying it. And the mobile context is different

Mobile Application Requirements


Challenges in implementing mobile solutions Companies need to support a range of devices for both

consumers & employees Mobile Development is more complicated than traditional Web

App Development Target Devices: Which smartphone? Which tablet? Which form factor?

Development Skills: Web or native apps? Java or Objective C? Or other?

Maintenance: Separate software stacks for each major OS? How to keep software current?

Security: Encryption? Authentication? Response to stolen/lost devices?

Management: How to provide support and service?

Mobile Value: How to build applications that best exploit mobile capabilities, such as location and context?


Engage With IBM This Week

123

Meet with an IBM expert to view a product demo in booth 735

Join the conversation at @ibmmobile and #IBMatMobileCON

Learn more at ibm.com/mobile-enterprise and follow us at #IBMMobile


Date Start Session Title StageWed 11:00 AM IBM Mobile Enterprise Overview 3

11:00 AM Build and Connect Apps, Devices and Data: Take Your Enterprise Mobile 2

11:30 AM Syncing Mobile and Cloud Technologies to Drive Your Mobile-First Strategy 2

11:30 AM Becoming a Mobile Enterprise Step-By-Step 3

1:00 PM Mobile Collaboration for Your Social Business 3

1:30 PM Making Commerce Mobile: Strategy and Trends of Mobile Commerce 32:00 PM Manage and Secure Your Mobile Enterprise: Delivering Visibility and Confidence 22:30 PM Impact on IT of BYOD and the Mobile Enterprise 2

3:00 PM Build and Connect Apps, Devices and Data: Take Your Enterprise Mobile 2

3:30 PM Syncing Mobile and Cloud Technologies to Drive Your Mobile-First Strategy 2

Thurs 11:00 AM IBM Mobile Enterprise Overview 3

11:00 AM Manage and Secure Your Mobile Enterprise: Delivering Visibility and Confidence 2

11:30 AM Impact on IT of BYOD and the Mobile Enterprise 2

11:30 AM Becoming a Mobile Enterprise Step-By-Step 3

1:00 PM Mobile Collaboration for Your Social Business 3

1:30 PM Making Commerce Mobile: Strategy and Trends of Mobile Commerce 3

2:00 PM Build and Connect Apps, Devices and Data: Take Your Enterprise Mobile 2

2:30 PM Syncing Mobile and Cloud Technologies to Drive Your Mobile-First Strategy 2

Join IBM during our other MobileCon sessions!


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