Do Business Well

Mobile commerce — meaning the actual purchase of items from the mobile Internet — is expected to grow rapidly over the next few years. Forrester Research (www.forrrester.com) suggests that worldwide revenues could reach $200 billion by 2005. Be warned that we have heard wild projections before — in connection with the potential revenues likely to be generated by dotcoms, for example — so do not read too much into these figures. Before getting carried away in another round of Internet euphoria, think about the recent high level of negative publicity about mobile theft, which highlights the problem of security. Steps have recently been taken by the major market players to address this issue. In early 2002, a common database of stolen phone numbers was established so that the handsets could be disabled to prevent unauthorized purchases being made. Remember also that many people are still reluctant to undertake PC-based commerce, let alone transact through a mobile phone.

Growth in mobile commerce is likely to be driven by alliances between banks and telecommunications companies. Both parties have particular strengths which if brought together can add considerable value. Banks have a banking licence, credit verification skills and an established retail network. Mobile operators provide a modern brand image and the infrastructure of a mobile network. Both have a large customer base upon which to draw. While some companies (notably Vodafone) have made public their objective to provide financial services when restrictions on the allocation of banking licences are lifted (in 2002), others believe that the partnership route is the way forward. So far, banks have taken a cautious approach and built their mobile capabilities for small numbers of customers on a trial basis. They now face the challenge of scaling up the infrastructure to cope with larger volumes of users. Abbey National, for example, offers e-Banking via the Genie mobile portal, which can be accessed by WAP phones over any service network. According to Bansal (2001), the bank’s strategy is to develop partnerships that enable it to offer electronic banking across all technology platforms. These alliances offer customers the security of dealing with in established brand, which can be significant in building the necessary trust for mobile banking to really take off.

Remote workers can use wireless devices to access office systems and marketing formation held on the corporate intranet. Such services are useful for logistics companies needing to keep track of their drivers’ location and also to send SMS messages with reminders and alerts, for example of schedule changes or traffic problems. Salespeople operating in the field can update customer records or guest specific information automatically. Although the potential for the mobile Internet to enhance communications between staff or between staff and customers considerable, adapting the corporate security systems to allow access through mobile environment can be a significant headache, as can the practicalities of grating mobile channels with existing IT systems more generally.

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