Tuesday, 10 July 2012

E-Commerce vs. M-Commerce

Many a times we confuse E-commerce with M-Commerce and vice versa. This would not have been a major aberration five years back from today when the use of mobiles in India was primarily to make calls and send messages. Mobiles have gathered a whole new dimension in India today where they are increasingly being used as a means to surf the internet and gather information. In this context it has become imperative that all businesses gear up to leverage this platform to know their customers better and provide them more convenient ways to connect to the business.
Thus emerges the era of M-Commerce which entails doing transactions over mobile phone. The portal/website over which the transaction is done should not be the same as that on a computer. Specially designed mobile portals are a feature of M-Commerce. These portals are designed to make the experience of mobile shopping more convenient and have processes designed with limitations of mobile devices in mind. Some of the important distinctions between M-commerce and E-Commerce are:
·         Mobility: E-Commerce can happen from location with internet access while M-Commerce can happen from anywhere in mobile network area.
·         Customer concern: E-Commerce customers are more concerned with money because of the free internet culture whereas M-Commerce customers are time conscious.
·         Locatability: The client computer can be located via. the IP address in E-Commerce whereas client’s device and geographic location can be located in M-Commerce.

Why is M-Commerce gaining popularity?

India is witnessing a dual state of existence where on one hand technology is making a speedy foray into peoples’ life while on the other hand there is a huge chunk of population that has not seen a laptop yet. This creates an imbalance that further creates opportunities for businesses to innovate and discover new ways of connecting with customers. Mobiles are a strong medium of connecting with customers all over the country because India has a high level of mobile penetration. Apart from this, the availability of inexpensive smart phones has also made it possible for a common man to access all the information available on the internet through his mobile device. M-commerce thus promises more penetration in the areas where E-Commerce would find it difficult to establish itself. Some of the most important areas for Mobile commerce would be rural India and remote geographical locations where it would be difficult to find a reliable internet connection. Also, the increasingly pervasive high bandwidth mobile networks in India also make M-Commerce more viable in the modern context.

Key to profitability in M-Commerce – Critical Success Factors

M-Commerce has a lot of potential in developing countries like India. However, the essential benefits of M-Commerce can only be realized when the customer is placed at the core of all process design and company communications. Some factors that will determine the success of an M-Commerce venture are
·         Ease of use – The usability of application will determine the success of an M-Commerce venture. The customer should be able to use the application intuitively and with least difficulty. The entire user experience will determine the stickiness of the application and keeping the user engaged will result in increased revenue and sustainability. Ease of use will include minimum number of clicks to purchase and search, visible appeal, speed and connectivity of the application.
·         Range of devices supported – India is a country that has a very diverse set of users and consequently a very diverse set of mobile devices. The range of devices used by the population range from the trendy IPads to the lesser known and inexpensive smart phones brands. The Operating Systems on these devices are also very diverse. The E-Commerce application should support these devices and platforms on these devices to be successful.
·         Security – the Indian population is still wary about internet transaction. M-Commerce is a concept that is completely alien in most parts of the country. In such a scenario that user trust is upheld in all situations. A dent in the trust level will result in loss of face and customer.
·         Price – Apart from the CSFs listed above, the primary driver of growth of M-Commerce will be price to the customer. Mobile applications should be ideally free of cost and companies should aim at recovering the investment in mobile applications by innovative ideas like product pricing or writing it off for intangible gains like customer delight and loyalty.

The underlining

M-Commerce is the way all businesses are moving because of the tremendous potential it promises. However, to engage the major chunk of customers who have never experienced transactions over the internet or mobile, companies will have to bring innovative solution to the table that make the customers comfortable and trusting.

M-Commerce in healthcare

The following is an idea that we are working on as part of an academic project. We are planning to develop a mobile application for the healthcare industry. The idea is content aggregation. The mobile application is aimed at bringing doctors in a city on a common platform for patients. The initial draft of the idea is outlined below.

Key Features
·         Signup using facebook accounts to avoid spending time in collecting data about the users.
·         Functionality to search doctors in a city and area of that city. Initially the application will allow search only in the metros and only certain areas in the metros. A wider scope in terms of geography and database is a function of evolution of the application with time.
·         Book an appointment with a doctor from the list of all doctors presented after the search.
·         A brief profile of the doctor is also available along with his/her qualifications in order to help the user to make decisions.
·         Reviewing and rating doctor services are another feature that will help users give feedback about the doctor services.

There are more features that are envisioned but will only surface once the user preferences are understood and analysed.

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