Session 6

Drivers of Mobile Computing & M-commerce

·         Widespread availability of mobile devices จะมีประชากรโลกใช้มือถือ 50% ในปี 2008 ในไทย จำนวนเบอร์มือถือมีทั้งหมดกว่า 60 ล้านเลขหมาย

·          No need for PC >> juz smart phone is enough

·          Handset culture >> widespread use of cellphones

·          Declining prices, increased functionalities

·          Improvement of bandwidth >> 3G, 3.5G

·          Centrino chip >> connects to wireless LAN, low usage of electricity, high level security

·          Availability of internet access in automobile

·          Networks >> 3G, 4G, Wi-fi

·          The service economy

·          Vendor’s push >> mobile network company tries to sell content (ex. Ringtone) besides main service

·          Mobile workforce

M-commerce

·          Mobile shopping

·          Mobile banking

·          Info-based service

·          Location-based service

·          Mobile auction

·          Mobile access to corp. Intranet

·          Mobile travel info

·          Mobile marketing &advertising

Mobile computing infrastructure

·          WAP (Wireless App Protocol) >> standard to extend internet service

·          Markup languages: WML, HTML >> internet language

·          Mobile development: .NET, JAVA

·          Mobile emulators >> make software usable for mobile

·          Microbrowsers: Android, Safari, IE, Firefox

·          HTML5

3G

WiMax >> a huge network of wireless

RFID

Operating system ex. Android OS, iPhone OS, Blackberry OS

M-commerce biz model

·          Usage fee model (subscription/usage-based)

·          Shopping biz model

·          Marketing biz model

E-Business and E-Commerce

·        Click-&-mortar vs Brick-&-mortar organizations

·        Online Advertisers, Marketers & Students  

>> Facebook, collegerecruiting.com

·        Company-sponsored Socially Oriented Sites

>> forbes.com

·        Application Programming Interface

>> Youtube, Google

IS Major EC Mechanisms

·        E-Market Trends

>> Youtube

·        Electronic Catalogs

>> JCPenny

·        E-Auctions

>> ebay

·        E-Classifieds

>> ebay business, ebay store

·        Bartering & Negotiations

>> Lala

·        B2B auction

·        Electronic Storefronts

>> Office Depot

·        Electronic Malls

>> MSN Shopping

·        Online Job Market

>> Job Central

·        Travel Services

>> Travelocity

·        Real Estate Online

>> housevalue.com

·        Market Research Online

>> Accu tips

Major Models of E-Business:  From E-Government to C2C

•      B2E – organizations disseminate information to employees over company intranet.

•      E2E – employees communicate with each other.  I.e.: goods & services bought & sold among fellow employees.

•      E-Collaborative – digital technologies that enable collaboration.

•      E-Government – delivers information & services to citizens, business partners & suppliers.  I.e.: G2C, G2B, G2G.

Session 5

Information Technology Economics

Productivity Paradox

= the contradiction between the advances in computer power and the slow growth of productivity at the level of the whole economy, individual firms and many specific applications

Why Justify IT Investments?

•      Increased pressure for financial justification

•      IT is not necessarily the solution to all problems.

•      Heavy competition for limited funding requires sound analysis for justification.

•      Stock prices typically increase when IT investment is announced.

•      Companies need to assess the success of IT projects after completion, and later on a periodic basis.

•      The success of IT projects may be assessed in order to pay bonuses to those involved with the project.

Difficulties in Measuring Productivity & Performance Gains

•      Incorrectly defining what is measured

•      Time lags

•      Relationship between IT investment & organizational performance difficult to find.

Handling Intangible Benefits

•      Rough estimates

•      Think broadly and softly

•      Pay your freight first

•      Follow the unanticipated

Costing IT Investment

•      fixed costs

•      Transaction costs

o   search

o   information

o   negotiation

o   decision

o   monitoring

Revenue Models Generated by IT & Web

•      Sales

•      Transaction fees

•      Subscription fees

•      Advertising fees

•      Affiliate fees

Cost-Benefit Analysis

1.    Identifying & estimating all the costs & benefits of carrying out the project & operating the system.

2.    Expressing these costs & benefits in common units.

Costs:

•      Development costs

•      Setup costs

•      Operational costs

Benefits:

•      Direct benefits

•      Assessable indirect benefits

•      Intangible benefits

Intangible benefits

•      Increased levels of service

•      Customer satisfaction

•      Survival

•      Need to develop in-house expertise

Intangible costs

•      Reduced employee morale

•      Lost productivity

•      Lost customers or sales

Cost-Benefit Evaluation Techniques

•      Net profit

•      Payback period

•      Return on investment (ROI)

•      Net present value (NPV)

•      Interest rate of return (IRR)

Advanced Methods for Justifying IT Investment

•      Financial

•      Multicriteria

•      Ratio

•      Portfolio

TCO (Total Cost of Ownership)

•      acquisition cost (hardware and software)

•      operations cost (maintenance, training, operations, evaluation, technical support, installation, downtime, auditing, virus damage, and power consumption)

•      control cost (standardization, security, and central services)

By Pornpitra Sithiprasasana 5302115224