M-Commerce: Technological Innovation and Business Impact Analysis

This report provides a comprehensive analysis of m-commerce as a technological innovation. It begins with an introduction to innovation and its various forms, focusing specifically on technological advancements within the mobile commerce sector. The report then explores the core area of innovation, defining m-commerce and highlighting its growth, market size, and various services offered, such as money transfer, mobile ticketing, and information services. It traces the milestones of m-commerce from its inception in 1997 to its current state, examining key developments like the introduction of mobile payment systems and the rise of omnichannel retail. The report further investigates how m-commerce has affected organizations, particularly in terms of management approaches and business model changes, emphasizing the importance of customer-centric strategies and the adoption of digital technologies. Finally, the report concludes with recommendations for the future development of m-commerce, including the use of mobile image recognition, personalized push notifications, augmented reality apps, and analytics and predictive technologies. The report uses multiple references to support its claims and analysis.

Running head: M-COMMERCE
M-COMMERCE
Name of the Student
Name of the University
Author Note

1M-COMMERCE
Executive Summary
The given report throws light on the innovation of mobile commerce within the realm of
technological within the dimension of innovation. The chosen topic for the paper is M-
commerce. The report follows a structured format whereby a brief introduction has been
provided followed by the change in the various organizational procedures have been analyzed.
The different milestones of the given innovation has been analyzed. Lastly, certain
recommendations with respect to the future of the given innovation have also been provided.

2M-COMMERCE
Table of Contents
Mobile commerce within Technological Innovations.....................................................................3
Introduction......................................................................................................................................3
Area of innovation with respect to the focus...................................................................................3
Milestones for innovation................................................................................................................5
Innovation has affected organizations management approach........................................................6
Concluion.........................................................................................................................................7
Recommendations............................................................................................................................8
References......................................................................................................................................10
Appendix........................................................................................................................................12

3M-COMMERCE
Mobile commerce within Technological Innovations
Introduction
Innovation can be defined as a new method with the help of which an organization can
make excessive progress in a particular field or a dimension. In other words, innovation gives
rise to better solutions which assist in meeting of the requirements. Such an innovation process
can take place in various dimensions which range from processes, products, services,
technologies and even business models. Innovation seeks to make the entire business process
more effective so as to ensure that the business does not have to combat against the obsolete
procedures which make it unsuccessful in the business domain (Niranjanamurthy et al. 2013).
As stated earlier, innovation can be of different types. In the given report, the
technological innovation will be discussed along with practical examples. Technological
innovation can mostly concentrate on use of technical knowledge and tools of different products
and services which will enhance the features offered to the consumers (Alkhunaizan and Love
2013). Technological innovation comprises of activities which contribute to the designing and
development of different products which improve the present products and help in increasing
technological knowledge. The m-commerce technological innovation will be discussed in this
aspect.
Area of innovation with respect to the focus
The mobile commerce was a term which was used by Kevin Duffey when the Global
Mobile Commerce Forum was launched in order to deliver the capabilities of e-commerce
directly into the customer`s hands with the access of wireless technology (Lu et al. 2015).

4M-COMMERCE
Mobile commerce is often taken to be an outlet or a store in the hands of the customer. The
mobile ecommerce is a growing trend worth $230 billion US, and as per the statistics in 2016,
around 67% of the mobile users make purchases using their phone. Even big brands like
Walmart and Amazon, report that more than 60`5 of their online purchases by customers are
done via mobile phones.
In 2015, M-commerce has made up around 25% of total ecommerce spending and it is
forecasted that these figure will increase to 50% by 2025.
Given below are certain products and services available using the m-commerce technology
Money transfer
Money transfer is a component of digital payments which was earlier just facilitated by
banks and later on by website desktop banking. However with the recent advent of technology,
those service is also available using mobile phones and with just a few clicks. With applications
like PayPal, PhonePe, PayTm and others the facilities have become easier. Various mobile
companies like Vodafone and Airtel also provide the given service.
Mobile ticketing
The mobile phones can also be used to book tickets. These tickets can be for varying
events and other related travel purposes (Malik, Kumra and Srivastava 2013). Tickets can also be
sent easily the mobile phones and with the use of this the users can use their tickets easily and
present them as a digital boarding pass.
Mobile vouchers, coupons and loyalty cards

5M-COMMERCE
The m-commerce technology can also be used for the distribution of coupons, vouchers
and loyalty cards and other promotional strategies from the side of various retailers and e-
commerce websites. When the user shall present these at the point of sales, they can avail the
offers.
Information services
Various information based services like news, alerts, traffic reporting, emergency alerts,
and location based notifications can be provided using mobile commerce (Lee and Chen 2014).
Mobile Banking
Even the banks and other financial services can be used as a mobile commerce device
whereby the bank can promote its services easily.
Mobile marketing
Various companies can also use mobile phones as a source of marketing and
advertisement purposes.
Milestones for innovation
It was in 1997, that the term mobile commerce was coined and since then the given
technology has advanced tremendously (Chong 2013). In 1997, the company Coca-Cola made
use of it. In 1998, the given technology was adapted to be the most innovative mobile product. It
was in the same year that the first digital content was sold and ringtones were sold on the
application.

6M-COMMERCE
In 1999, commercial platforms for m-commerce were launched. However it was not
before 2000, that the m-commerce elated services actually started spreading rapidly. In 2002, the
official standards were developed and the growth reached to around US$ billion 200 in 2004.
Since then the growth of m-commerce has not looked back. Mobile technology has been
used for a wide variety of services like medical payment, food and others. In the year 2007, m-
commerce adopted the application system and thereby moved away from the sms systems.
In 2011, the Google wallet application was launched and this gave rise to another
dimension.
By the year 2013, Omni channel retailers started showing their presence on mobile
commerce which created more opportunities for them (Maity and Dass 2014).
At present m-commerce technology has greatly used and more than 50% of the services
are done using m-commerce facilities.
Innovation has affected organizations management approach
The different organizational members are going through extremely challenging face in
today’s competitive environment. The management often has to exert pressure on the employees
in order to ensure that the different targets are fulfilled easily (Khan, Talib and Faisal 2015).
Hence for this purpose, it is important for them to be flexibly in terms of organization’s ability to
be extremely flexible and adopt to the latest technology and use various innovative technologies
as well in order to remain in the business. With the advent of technology, various changes have
been brought about in the given sector and this is the reason why it becomes extremely important
for any organization to ensure that it adapts to digital technology in order to survive.

7M-COMMERCE
As the customers have started making the use of the technology through their mobiles, ,
the various business organizations have started adopting technologies that shall involve m-
commerce in order to reach out to the different customers (Jaradat and Al Rababaa 2013).
Hence, businesses have braced m-commerce but doing so is not simple. For the purpose
of incorporating m-commerce within their realm, business have required to change their business
models (Hajli 2014). Earlier various organizations were product oriented and for this purpose,
they did not feel the need to go customer centric but now it is not the case. Customer relationship
management and customer centric are two key focus areas of the business. Being customer
centric means adapting to m-commerce. Hence, it can be witnessed that m-commerce has
changed the way businesses are conducted at present. Speed is considered to be a primary
essence of a business enterprise and thus it is very important for the business to incorporate.
Various companies like Uber, Apple and Starbucks have incorporated m-commerce in
their business strategy. Uber has incorporated a business model which is entirely based on m-
commerce. The customer needs to download the application to avail the cab services as provided
by the firm. Even Starbucks has adopted m-commerce to its model (Chong 2013). If a customer
signs up for the services, they are offered a card which can be then used using a mobile
application. Even apple has started using m-commerce to grow its business offerings through
iTunes and payment wallets. Companies like Amazon have also introduced functions like 1 click
buying for the customers.

8M-COMMERCE
Conclusion
Therefore from the given analysis it could be stated that mobile commerce is an
innovation in the field of technology and has changed the dimensions in which a particular
business enterprise functions. It has led to various facilities and this has caused the entire
business models to have gone through a change. The given report has discussed various aspects
of the m-commerce innovation which ranges from its milestones to its importance in the business
domain. Furthermore, in the following sections, certain recommendations for the same have also
been provided in order to ensure that the business engages in the given technological aspects to
grow their business enterprise.
Recommendations
The following recommendations have been made for the development of m-commerce
technology:
1. Mobile Image Recognition Technology
The given facility brings about information in the virtual world with a concept similar to
that of window shopping. The users will be able to use their cameras to click a picture of a real
product and upload it in an app which will help the user to find similar products on net. If they
like the products, then they can purchase it. An example of this is Curalate which is an image
recognition based startup.
2. Personalized Push Notifications
Personalization is another key feature in the domain of business which allows the
different retailers to send in push notifications to the users to view advertisements which they
would like to engage in.

9M-COMMERCE
3. Augmented Reality Apps
Augmented reality applications are those applications which allow the different
consumers to have a real life experience of the product being offered in the given application. If
the store has an augmented reality application then it can easily allow the app to adjust the
shoppers camera and the customers can try and adjust their features accordingly (Chan and Yee-
Loong Chong 2013). This technology is increasingly popular in the eye wear products. If the
technology is further developed then it can bring out new opportunities.
4. Analytics and Predictive Technologies
Various analytics and Predictive technologies are the new future of mobile commerce. As
stated earlier, personalization is often used to communicate with the community and hence, for
this purpose the retailers need to analyze the big data which is available and use predictive
analysis techniques to offer the buyers products which they generally need. This helps in
simplifying the buying process and in turn increases customer retention.

10M-COMMERCE
References
Alkhunaizan, A. and Love, S., 2013. Effect of demography on mobile commerce frequency of
actual use in Saudi Arabia. In Advances in information systems and technologies (pp. 125-131).
Springer, Berlin, Heidelberg.
Chan, F.T. and Yee-Loong Chong, A., 2013. Analysis of the determinants of consumers'm-
commerce usage activities. Online Information Review, 37(3), pp.443-461.
Chong, A.Y.L., 2013. A two-staged SEM-neural network approach for understanding and
predicting the determinants of m-commerce adoption. Expert Systems with Applications, 40(4),
pp.1240-1247.
Chong, A.Y.L., 2013. Predicting m-commerce adoption determinants: A neural network
approach. Expert Systems with Applications, 40(2), pp.523-530.
Hajli, M.N., 2014. A study of the impact of social media on consumers. International Journal of
Market Research, 56(3), pp.387-404.
Jaradat, M.I.R.M. and Al Rababaa, M.S., 2013. Assessing key factor that influence on the
acceptance of mobile commerce based on modified UTAUT. International Journal of Business
and Management, 8(23), p.102.
Khan, H., Talib, F. and Faisal, M.N., 2015. An analysis of the barriers to the proliferation of M-
Commerce in Qatar: A relationship modeling approach. Journal of Systems and Information
Technology, 17(1), pp.54-81.
Lee, H.M. and Chen, T., 2014. Perceived quality as a key antecedent in continuance intention on
mobile commerce. International Journal of Electronic Commerce Studies, 5(2), p.123.

11M-COMMERCE
Lu, M.T., Hu, S.K., Huang, L.H. and Tzeng, G.H., 2015. Evaluating the implementation of
business-to-business m-commerce by SMEs based on a new hybrid MADM model. Management
Decision, 53(2), pp.290-317.
Maity, M. and Dass, M., 2014. Consumer decision-making across modern and traditional
channels: E-commerce, m-commerce, in-store. Decision Support Systems, 61, pp.34-46.
Malik, A., Kumra, R. and Srivastava, V., 2013. Determinants of consumer acceptance of m-
commerce. South Asian Journal of Management
Niranjanamurthy, M., Kavyashree, N., Jagannath, S. and Chahar, D., 2013. Analysis of e-
commerce and m-commerce: advantages, limitations and security issues. International Journal
of Advanced Research in Computer and Communication Engineering, 2(6).

12M-COMMERCE
Appendix
Year Milestone
1997 The term m-commerce was coined, coca cola
made use of it
1998 Labelled as most innovative mobile product
1999 Commercial platforms for m-commerce were
launched
2000 m-commerce related services started
spreading rapidly
2002 The official standards were developed and
growth took place
2004 Reached to around US $200 billion
2007 M-commerce applications started taking place
2011 Google wallet application was launched
2013 Omni channel retailers started showing their
presence.
2018 More than 50% of the commerce is mobile
based