1. Mobile E-Commerce in Asia Issues and Strategies for the New Information Age Business Wong Jeat Shyan CYBERSOURCE PTE LTD SINGAPORE

2. Copyright©1999, Cybersource Pte Ltd AGENDA n Overview on E-Commerce in Asia n E-Commerce Issues in Asia n Mobile E-Commerce n Mobile E-Commerce Applications n Issues in Mobile E-Commerce n Strategies n Conclusion

3. Copyright©1999, Cybersource Pte Ltd E-COMMERCE IN ASIA n Largely driven by Government (eg: Singapore EC Grant, Malaysia’s MSC, HK’s CyberPort) n Focusing on Business-to-Business due to push from MNCs n Business-to-Consumer is infancy, with slow web technology adoption n SMEs slow in E-Commerce adoption

4. Copyright©1999, Cybersource Pte Ltd ISSUES IN ASIA n Lack of understanding on EC implementation n Cost n Investment/return measurement n Heterogenous society n Low PC penetration n Asian economic weaknesses n Resistant to business change

5. Copyright©1999, Cybersource Pte Ltd ARE THERE ALTERNATIVES? n Multiple web sites n Sell to US and Europe n Low cost access devices (WebTV, Philips MyWeb) n Smart devices (PDAs, Mobile phones) n Turn to government assistance n Alternative business model/mode

6. Copyright©1999, Cybersource Pte Ltd MOBILE E-COMMERCE n Using mobile devices as communication gadget n Access data wired/wireless method n Intelligent mobile devices n Order/transaction processing from remote terminals n New developments (between 6-12 months)

7. Copyright©1999, Cybersource Pte Ltd MOBILE DEVICES n Personal Digital Assistants (PDAs) with wireless connectivity –Nokia Communicator –Palm Computing –Windows CE devices n Mobile Phones (Digital) –SMS capable (narrow band) –Broadband (GPRS. W-CDMA in the future)

8. Copyright©1999, Cybersource Pte Ltd WHY MOBILE E-COMMERCE? n Large user base for mobile phones n Lower cost of ownership (compared to PC) n Constant reduction of access charges n Intense competition from telecom operators n Rapid growth n Mobile and convenient

9. Copyright©1999, Cybersource Pte Ltd

12. APPLICATIONS OF MOBILE E-COMMERCE n Applications of Mobile E-Commerce is similar to traditional EC, with an added interface to the wireless devices n Applicable to both Business-to-Business and Business-to-Consumer e-commerce n System integration is required, to have a smooth system that is seamless to both corporations and consumers

13. Copyright©1999, Cybersource Pte Ltd MOBILE EC WITH CYBERSOURCE’S GMS SYSTEM

14. Copyright©1999, Cybersource Pte Ltd E-Commerce Process Flow End to End E-Commerce Solution by Cybersource Pte Ltd CUSTOMER MERCHANT ISSUING BANKS Any Bank issuing VISA / MasterCard Commerce Service Provider Transaction server Web Server http://www.eshop.com 128 bit encryption ACQUIRING BANK The transaction is authenticated here 128 bit encryption Credit Card Clearing House Order Fulfilment Payment Digital Receipt Digital Purchase Order Buy Payment 7 1 9 5 2 4 6 8 3

15. Copyright©1999, Cybersource Pte Ltd Mobile E-Commerce Process Flow End to End E-Commerce Solution by Cybersource Pte Ltd CUSTOMER (Access via Web or Mobile) MERCHANT ISSUING BANKS Any Bank issuing VISA / MasterCard Web and E-Commerce Storefront Web and Transaction server GMS Server Wireless Storefront Data Integration with Wireless (GMS) system ACQUIRING BANK The transaction is authenticated here 128 bit encryption Credit Card Clearing House Order Fulfilment Payment Digital Receipt confirmation Digital Purchase Order Buy Payment 7 1 9 5 2 4 6 8 3

16. Copyright©1999, Cybersource Pte Ltd MOBILE EC APPLICATIONS: BUSINESS - CONSUMER n Information alerts/notification n Information broadcast n Information retrieval (info-on-demand) n Order/status enquiries n Order entry and processing n Transactional/purchase command n Customer service

17. Copyright©1999, Cybersource Pte Ltd POSSIBLE IMPLEMENTATION BUSINESS - CONSUMER n Banking transactions n Stockbroking firms (trade shares) n Information provider (pay per view) n Courier/delivery companies n Service industry n Product purchase n Repeat orders (frequent customers)

18. Copyright©1999, Cybersource Pte Ltd MOBILE EC APPLICATIONS: BUSINESS - BUSINESS n Field sales team n Field technicians n System status enquiries n Product availability/delivery n Remote monitoring n Suitable for time sensitive applications

19. Copyright©1999, Cybersource Pte Ltd BENEFITS OF MOBILE EC n Lower operation cost through self-service service delivery and easily available n Cost per transaction reduced tremendously n Better customer service n Leverage on existing investment n Reach a different segment (larger) n New channel not available previously

20. Copyright©1999, Cybersource Pte Ltd ISSUES IN MOBILE EC n Technology –Standardization (no clear standards yet) –User friendliness and limited display –WAP, Bluetooth project, SIM Toolkit –Using SMS (GSM, CDMA, PCS) –Language interface –Bandwidth constraint

21. Copyright©1999, Cybersource Pte Ltd ISSUES IN MOBILE EC n Business and Marketing –Involve vendor, company and telecom operators –Multiple operators environment (different interests) –Joint partnership –Costs and return –Acceptance

22. Copyright©1999, Cybersource Pte Ltd POSSIBLE STRATEGIES n Strong cooperation with vendors n Assess negotiation position with wireless operators n Thorough consideration in business process in mobile EC implementation n Stage approach, to capture and educate the users n Move early to be a leader to capture the market

23. Copyright©1999, Cybersource Pte Ltd CONCLUSION n Mobile EC presents a new platform for content and service providers, and merchants to capture a large audience immediately. It is the most compelling way to reach customers, anytime, anywhere. n Though in the early stage, companies should move into this sector, as Amazon has done in the Internet E-Commerce.