Making Commerce Mobile: Strategy and Trends of Mobile Commerce

Making Smarter Commerce Mobile: Strategy and
Trends of Mobile Commerce

Chris Shaw
Worldwide Industry Lead for Smarter Commerce - Communications

@IBMMobile | #IBMatMobileCon © 2012 IBM Corporation

IBM’s strategy addresses client mobile initiatives
Build & Connect Manage & Secure Extend & Transform
Build mobile Manage mobile Extend capabilities
apps devices and apps to mobile

Connect & run Secure my mobile Transform
mobile systems business your business

Key Capabilities Key Capabilities Key Capabilities
• Mobile web, hybrid and • Mobile lifecycle • Strategy, planning and
native app development management implementation
• Enterprise data, service, • Device analytics and • Mobile-enabled solutions
and application integration control including analytics,
• Enterprise wireless • Secure network commerce, and social
networking communications & business
management • Mobile as a service
2 @IBMMobile | #IBMatMobileCon © 2012 IBM Corporation

Agenda

Introduction
Mobile Commerce Opportunities
Implementing Mobile Commerce


Mobile is a game changer
Just 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
WW Mobile Applications Opportunity 300,000 iOS & 700,000
$50 B Android devices activated
Mobile Applications

PER DAY
66% CAGR
$40 B
Gartner: By 2013,mobile
Mobility is the
Growth

$30 B phones will overtake PCs
Billions

second area as the most common Web
access device worldwide
$20 B of investment
$10 B
with 74%
Access to mobile networks
is now available to 90% of
$0 B Source: 2011 CIO Study, Q12: “Which visionary plans do you the world population and
2010 2011 2012 2013 2014 2015 have to increase competitiveness over the next 3 to 5 80% of the population living
years?”(n=3,018) in rural areas.
Source: IDC 2010
Market opportunity around
Mobile Platform Mobile Security Device Management

Mobile is a new IT
WW Mobile Infrastructure

$5 B
Mobile is adjacent to our
20% CAGR business and provides
$4 B
AIM a large & fast growing
Opportunity

opportunity to drive

Wave
Billions

$3 B Middleware revenue as
enterprises extend IT
$2 B investments to reach
customers in new ways
$1 B and enable workforces
Consumer experience, “bring your own device” (BYOD) and with anywhere, anytime
$0 B “context aware” are driving much new enterprise use access to data and
2010 2011 2012 2013 2014 2015 applications
Source: IDC 2H 2010 - IH2011


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

2. Proliferation of Modes and Methods for Commerce
800M  Exponential growth in Mobile and Social Commerce
140M  Mass customization and personalization of products and services

Evolving
Shopping 3. Consumer Buying Behavior Continues to Evolve
Experience  Focus is on value, transparency and accountability
Expectations:
 Timely  Consumers are increasingly technology savvy, more demanding, making
 Localized tradeoffs, and “Showrooming”
 Experiential
 Personalized
 Information
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


Objectives For Smartphones And Tablets


Mobile computing is fundamentally changing how businesses interact with
their customers

Business-to-Consumer Business-to-Employee
Enabling customers to shop across Empowering retail store associates to
multiple mobile devices serve customers anywhere in the store

Mobile Marketing
Analyzing mobile usage and executing
mobile campaigns


Leading to fundamental changes in the concept of a store?

Taking the store
to the customer

Taking the store
out of the store

8
Source: “Tesco opens worlds first virtual store” htt,p://www.archello.com/en/project/tesco-opens-worlds-first-virtual-store

Agenda

Introduction


Insight Strategy
Buy Market
Sourcing, controlling Targeted and
and procurement of personalized
goods and services marketing across all
customer interactions

Customer

Service Sell
Servicing Selling and fulfillment
customer needs of products and
across all services across
interaction all channels
channels

Engagement

The lines between virtual and physical are blurring … disappearing

Outside the Store Inside the Store
Shopping List

Aisle 3
Aisle 11
Aisle 9


A superior shopping experience now includes mobile commerce as a key
Messaging, alerts, promotions
touch point (proximity, opt-in, loyalty) Provide personalized messages and
alerts to your customers: product
specials, recalls, etc
Customer id, personalized
experience & offerings Demand Relationship
Store Entry
Generation Development Product or category
Product
Affinity level awareness &
education
Browsing In-store Multi-channel
Product
information, customer customer
Product
product look-up, experience experience Browsing information,
IRC
Consumer
Purchase Retail Customer reviews
Decision Integration Interaction
Framework Platform
Cross-sell, up- Purchase
Compare,
sell, availability Decision Cross-sell/up-
Transact sell, availability
In-store & online Post & Store locator
payment scenarios Post- Transact
-transaction
transaction CCIS, Online
payment
Warranty
services, digital WISMO, Warranty services,
receipt digital receipt

Re-engineering commerce around mobile
All aspects of commerce should be evaluated to see what
“Points of Engagement” can be improved by utilizing mobility
Mobile Points of Engagement
Build a shopping list Select products in the store
 Pre-populate a list based on history  Show reviews, friends' feedback, special prices, health
information (etc) about the products
 Awareness of holidays and other important dates
 Suggestions based on choices or actions Pay for products
Choose a physical store  Self scan by phone
 Pay by phone
 Assures the items you want are in stock

Visit the physical store Consume products
 Capture comments and feedback as the products are
 Provide directions to get there
being used
 Proactively offer assistance when the customer enters the
store Customer runs out of products
 Locate items on the shopping list, and inform where in the  Add to shopping list for next purchase
store to go
 Request assistance from remote or in-store associate

Consumer expectations are soaring
Consumers expect a real-time, digital experience with personalized
recommendations, offers, and rich production information that is
infused into the store environment.

Goals: Example: ARISTO Shopping Assistant
The shopping experience is tailored to the
Increase sales, profit, customers preferences, needs, wants, and
loyalty, and consumer shopping mission in real-time at the store shelf
confidence and without adding additional headcount or labor.

Augmented Reality for In-Store Offers

 Enable consumers to receive information and special offers
o Product information, Special price info directly super imposed on the products of
interest
 Consumer simply pans the store shelves with his personal mobile
device
o Relevant information is super-imposed on the image
 Improve in-store experience
o Far superior to barcode scanning $0.33/100 gr

$0.66/100 gr

$0.59/100 gr

$0.37/100 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
16  Optimization of store infrastructure| such as heating/cooling
@IBMMobile #IBMatMobileCon © 2012 IBM Corporation

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 desktop
o Location based services, presence, and mobile payments/loyalty are key
enablers for an exceptional shopping experience


Agenda

Introduction


Application targets
From browsers to tablets to smartphones … and beyond


Mobile application types
BrowserApps
Web Access Hybrid Apps - Web
Hybrid Apps - Web Hybrid Apps - Mixed
Hybrid Apps - Native Apps
Native Apps
Written in HTML5 HTML5 code and Mixed
User augments web Platform-specific.
JavaScript and CSS3. Worklight runtime code with native Requires unique
Quick and cheap to libraries packaged within language for unique expertise, pricy and long
develop, but less the app and executed in needs and maximized to develop. Can deliver
powerful than native. a native shell. user experience. higher user experience.

Mobile Browser Native Shell Native Shell Native Application
1001010101011101001
Web Code Web Native 0100100101011101001
Web Code <!DOCTYPE html <!DOCT 0011010101010100100
<!DOCTYPE html PUBLIC YPE 100101
html 010101 1001011110010011001
PUBLIC <html>
<html> <! - - created 2003-12-1 PUBLIC 110100 0101010010101010100
<! - - created 2003-12- <head><title>XYZ</title created 101010 1010101010101010101
12 - - </head> 2003-12 101010 0111111000001010101
<head><title>XYZ</title </body> </p> 100100
> </html> </body> 100101
</head> </html> 111001
<body> 001100
</p> 10
</body>
</html>

Device APIs Device APIs Device APIs

Browser Access Downloadable Downloadable Downloadable


Why is mobile different?
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.
Mobile Application Requirements
 Mobile users require efficient and timely access to  Typing should be minimized.
information.  Applications must be usable without connection or
 Interactions are short and focused, interruptions moving between connection types.
are common.  Timeliness of data must be communicated.
 Devices are often exclusively touch-based.  Security is critical.
 User interfaces must be easy and obvious.  Mobile hardware and user interfaces evolve much
 Screen real-estate is precious. faster than the typical enterprise software cycle.

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

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

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

2 Join the conversation at @ibmmobile and
#IBMatMobileCON

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


Join IBM during our other MobileCon sessions!
Date Start Session Title Stage
Wed 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 3
2:00 PM Manage and Secure Your Mobile Enterprise: Delivering Visibility and Confidence 2
2:30 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

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Making Commerce Mobile: Strategy and Trends of Mobile Commerce

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