M-BUSINESS: FROM VISION TO REALITY

Friday 21 April 2023Vilnius

Daiva Vitkutė-AdžgauskienėHead of Product Management Division,Omnitel, Lithuania

Way back in 1999 …

• Popular saying: “If you are NOT IN E-BUSINESS, you are OUT OF BUSINESS”

• Common belief: .COM or E- automatically means passport to getting millions

And then in 2000 …• Burst of INTERNET

BUBBLE

• Intense PESSIMISM instead of previous hype

• Headings of the type “E-BUSINESS IS DEAD” all over

Finally, where is e-business now?• The majority of companies are using Internet/Intranet in some way

• New services keep on emerging on the Net (Internet banking, vehicle tracking and monitoring systems, etc.)

• E-business silently but firmly pushes itself into our life in the form a natural supplement to traditional business processes

• You don’t have to shout about e-business anymore – IT IS JUST HERE

Long-termTrend

E-business adoption landscape

E-business trend

E-business: lessons learned

• Computers becoming faster does not mean that building businesses can also be faster

• E-business success lies in appropriate application of electronic channels to the business as the basis

How about MOBILE BUSINESS ?

In 2000 m-business was merely a VISION … • Just a feeling, that this could fly:

– Mobile penetration growing much faster than that of Internet– Mobile phone – a personal service management tool available

anytime anywhere• However, doubt and disbelief prevailing:

– Disappointment in mobile phones as Internet access terminals (small screens, no graphics, low speed, etc.)

– Global pessimism towards e-business– Weak service development

What is the situation now?• Phones improving, converging with PDAs • Majority of active citizens already mobile• Service providers learned how to overcome

restrictions and leverage the advantages of mobile communications

• Mobile phone is gradually becoming a personalized tool for using and managing services

M-business has become a REALITY and is gradually progressing !

M-business: general impression

• M-business develops along a

smoothly rising long-term trend

curve

• M-business was from the beginning

perceived as an additional channel

to the general business process

• People are ready to pay for m-

business value proposition to

deliver what people want when they

want it

Variety of m-business application areas

• M-commerce – fast transactions

• Introduction of mobile channels to company internal processes

• Mobile marketing

• Mobile CRM

$ $$

Technology environment for m-business services

• SMS messaging – most popular media

• WAP – new expectations with GPRS

• HTTP transactions over GPRS• Java applications for mobile

devices• Web service architecture

Is this also true for M-BUSINESS DEVELOPMENT in

the LITHUANIA?

LITHUANIA: favourable environment for m-business

• Mobile penetration already over 40% (compared to 27% at the beginning of 2002)

• Mobile penetration is significantly higher than that of Internet (21%)

• Over 80% of businesses using mobile services

• Usage of mobile data (SMS, GPRS, WAP) increases

SMS traffic compared to Europe predictions (Baskerville strategic report, Nov. 2001)

SMS VAS share in total traffic

76%

24%

Total SMS/subscriber

Total VAS SMS/subscriber

Total SMS/ subscriber

18

25

28

3235

0

5

10

15

20

25

30

35

40

2002 2003

Eastern Europe Western Europe Omnitel

Omnitel case: increasing SMS usage

Increasing number of public m-services

• M-entertainment (logos, ringtones, mobile games)• M-info (yellow pages, stock exchange, accounting

information) • M-office (mobile e-mail, reminders, group messaging)• M-payments (payments for parking, vending, tickets) • M-banking (all major banks in Lithuania offer SMS or WAP

banking services)• M-self-services (info channel subscription, service

configuration, etc.)• M-security (mobile car tracking, house security, etc.)

M-commerce in entertainment: ringtones and logos

• Offered in Omnitel network since 1999

• Number of content providers and aggregators

increasing - Jippi, One, Inpoc, Telejazz, …

• About 10% of monthly SMS VAS traffic and

increasing

Mobile users willing to pay for entertainment !

“Who wants to be a millionaire?”Most successful SMS application in

Omnitel history:• Launch of the SMS game on June 17th

2002• Reached total 1 million message point

on July 10th – in less than 1 month• According to surveys, 71% of players

are driven by excitement not by prizes

Good example of “kill the time”services potential” !

M-payment for parking: saving precious time

No need to look for coins, easy to extend parking time – just send an SMS from where you are !

• Omnitel was first in Lithuania, 7th in the world to launch the service

• Launch in Kaunas - March 27, 2002; in Vilnius - July 3, 2002

• Monthly growth rate - 1.5-2 times• Service management (inspector side)

based on bar-code readers and GPRS

Already about 7% of total parking payments collected via mobile channel in Lithuania

Mobile e-mail – managing your communications

• E-mail communication have become part of our lives

• Mobile technologies enabled e-mail access anywhere anytime (SMS, WAP over GPRS)

• Mobile e-mail already is an important part of various m-business applications

Customers

Presentation

Operator acts as m-service aggregator

S

Creation

Third parties

Third parties

Aggregation

Third parties

Third parties MasterCard

E-/m- service supermarket offering!

Portal – the best way to enable e-/m- service supermarket

Joint OMNI Portal = traditional + mobile

- information accessed via different channels: WEB, WAP, SMS, etc.,- content personalization,- content generation by third party e-/m- services,- accounting and billing for usage via all channelsOMNI portal provides access to a

structured collection of e-services

Communities

EntertainmentNews

Services

Infor-mation

Tools

WWW.OMNI.LT

WAP.OMNI.LT

Postp

aid

bills

Ven

din

g

mach

ines

Park

ing

Pre

paid

top

-up

WWW SMS WAPE-c

om

merc

e

OMNITEL services 3rd party services

Info

tain

men

t

En

tert

ain

men

t

E-c

om

merc

e

Vert

ical p

ort

als

VilniausBank

BankHansa-LTB

BankSnoras

Omnitelbilling

Paym

en

tfu

ncti

on

ality

Payment channelsP

aym

en

tch

an

nel

Prerequisite – payment management infrastructure• Unified

payment management for operator and third party services

• Payment gateway as a router between services and banks

• Projects with major Lithuanian banks

Payment

gateway

M-business solutions in company environment

Interest: over 1/3 of businesses adding mobile access services to their Intranets

Examples of application areas:

• Mobile sales force solutions

• Mobile access to company info resources

• Mobile logistics and fleet management solutions

• Mobile marketing games

Sales force automation solutions

• Fast order processing, continuously updated pricing information

• Based on mobile access and data synchronization via GPRS enabled PDAs

• Solutions enabled by partnership between mobile operators and IT companies

• Whosalers as first users -Sanitex, Eugesta, etc.

Vehicle tracking and fleet management solutionsAn example of m-

solutions for a niche segment – logistics companies:

•Vehicle tracking and remote control

•Reporting and logistics management

•“Seklys” and “Sateltrack” services offered by Omnitel

•Combination of various technologies - GSM, GPS, GPRS, SMS

Registration database

SMSwap

e-mailwww

voice mail

Company

Registration data and statistics

Advertising campaigns

Consumer

Mobile promotional games – a solution for m-marketing

• Overall over 50 games were implemented by Omnitel for wholesale and media companies in 2002:

• Several examples: – Estrella promotional game, prepared for “Kraft

Foods Lietuva”; – “Kalnapilis in Ice” promotional game prepared

for Kalnapilis beer brewery; – Coca Cola promotional game, – SMS game for TV show on information

technologies “NKTV” and others. • Monthly traffic of such games makes up more

than 15% of the whole Omnitel SMS VAS traffic.

Mobile promotional games – gaining speed

Having many possibilities already, can 3G offer more ?

• With GPRS and MMS in place, m-business applications can already exploit multimedia advantages

• 3G seems not to offer anything completely new for m-business, just faster speed

• Observation: 3G adoption slow in Japan:

• DoCoMo has only about 134000 FOMA subsribers, while the plans were to have 1.38 million subsribers by March 1, 2003

It seems that 3G will not make any significant changes

CONCLUSIONS

• M-business today is already a REALITY.

• With 2.5G and rapidly increasing mobile penetration we have everything that is necessary for m-business growth.

• Success lies in:- rational evaluation of business opportunities,- development of adequate and convenient applications and services,- training the users to exploit all the possibilities offered by mobile technologies.