1. ITEC0722: Mobile Business and Implementation
Suronapee Phoomvuthisarn, Ph.D.
การใช้งานและธุรกิจบนอุปกรณ์เคลื่อนที่

2. Background Brief Dr. Suronapee Phoomvuthisarn Research interests
PhD in CSE, University of New South Wales, 2011
National ICT Australia ( )
Research interests
Software Architecture , Service Economics, Trust Computing
Work History:
Mahanakorn University of Technology (Since 2007)
Position: รองคณบดีฝ่ายกิจการนักศึกษาและประชาสัมพันธ์
Room: Q305

3. Course Introduction Class Objectives Lecturer in charge
Overview of mobile business; How to generate revenue by applications on mobile devices
Lecturer in charge
Suronapee phoomvuthisarn, Ph.D. (1-7)
Suebtas Limsaihue (8-15)
Materials
Lecture notes
iOS development lab such as in-app purchase implementation
Analytics tools such as Hadoop

4. Course Outline Module 1 (before midterm) Mobile Business Models
Marketing Concepts and Branding
Digital Marketing and its Channels
Market Research on Mobile Apps’ Trends
How to write a business case
Effective Brand Strategies
Presentation - Your Mobile Application and its Strategies

5. Course Outline (2) Module 2 (after midterm) Marketing Analytics
Lab (x4)
StoreKit Framework
Making AppleStore Purchases
iAd Framework
Implementing iAds
Presentation

6. Grading Policy Exercises / Group Discussion / Quiz - 10%
Midterm Exam - 35%
Presentation - 20%
Final Exam – 35%

7. Why study Mobile Business?
The advantage of using “Mobile” devices
Portable
Always on
Personal
Remote access
Localization
Let’s explore trends of mobile usages

8. Worldwide Mobile Phone Sales in 2013

9. Worldwide Smartphone Sales in 2013

10. Start Thinking Mobile Business
Which applications can be sold to the customer?
Who is your customer?
Who are the target users?
Who are your competitors?
How many are they?
Pricing?
How will you earn money?
What are your strategies and channels to brings app to customers?

11. Mobile Applications

12. Traditional Steps of Running a Business
The goal of the commercial company is to maximize profits
High volume and cost reductions
Key performance indicator
Market Share
Growth through extending the product
taking our current product and bringing it to new customers
coming up with new and different products seem fairly different from each other
The competitive advantage: product expertise
Product-oriented organizational structure
This is the product-centric approach to business

13. Galbraith (2005), Designing the Customer-Centric Organization

14. Challenges in Product-Centric Approach
Technology-enabled product development –> commoditization
Technology-enabled information flow -> smart customers
Technology-enabled delivery -> Products are now available everywhere

15. Examples IBM (International Business Machines)
Develop certain kinds of computer machines (Old days ) (product -centric)
In 1990s being a trusted advisor (these days)
IBM achieves higher margins as a solution provider
This expertise doesn't Commoditize nearly as much as any one product might.
They do a business around a deep understanding of their customers.
This is customer-centric approach

16. Which of these retailers are highly “customer centric”?
Walmart
Apple
Starbucks
Nordstrom
centricity is all about
Now that we understand what product
and we've discussed some of the cracks in
product centricity.
And even some of the opportunities from
do better than a product-centric approach,
companies to escape from and maybe I
want to start moving away towards customer
centricity.
But before I give you a definition and
talk it through, I'd like
you to think about what customer
centricity
means, based on your experience as well
So in order to do that, I want to work
as what I've discussed so far.
with a series of examples here.
In fact, on this slide, you'll see the
names of four very famous retailers.
Three of them operate on a global level
none of these firms are truly
customer centric.
of it's customers./not have a loyalty program
Walmart – surprisingly little about any one
Walmart has made very little effort to date to try to figure out exactly what each
customer's doing. And how they can influence each customer's behavior.
However, they make great efforts to understand the customers as a
events occur. For instance, when a hurricane is about to hit the south eastern US,
Whole. They understand regional differences They understand when certain kinds of
they need to fill the stores with water and batteries and so on.
So they understand the customer in a generic way but they make very little Effort to understand the customers in a very Specific granular way as a direct marketer would suggest.
Not so surpice because walmart intend to sell great volumes, itโ€™s about bringing the costs way down.
So, in many ways, Walmart is a prototypical, and a wonderfully successful, product-centric firm. There are a very few firms in the
world that can operate in an operationally
Excellent (now have scan and go for customer)
It's a similar but different story for
manner as well as Walmart can.
Apple.
because Apple again, is the classic
performance superiority firm.
They don't spend a whole lot of time doing
market research, to figure out exactly
They don't spend a whole lot of time
what the customer wants.
focusing on segmentation and real granular
analysis to try to predict what any one
customer is going to do over time.
Is taking the kinds of products that
is leveraging its product expertise.
they've already developed, and
figuring out what are the next ones that
they should develop.
Have some trackin customer itune preference but not driving business in this case
One day, if and when competition catches
up and Apple can no longer be the product
leader that they are, they
a great customer-centric firm as well.
could probably turn around and start to be
****
Starbuck
At a local level, Starbucks or any coffee
retailer, is very, very customer centric. – know your preference but not national level ones I'd like the usual please, they have no
idea who you are. Now they try to track customer data
Nordstrom's a high end department store.
One thing they don't sell is tires.
They sell clothing, shoes, and so on.
Yet, one day someone walked in to a
Nordstrom store.
Supposedly in Fairbanks Alaska, and wanted
of tires that obviously they could not
to return a set
have bought at Nordstrom's.
Perhaps there was a tire store at that
location before Nordstrom's opened shop.
customer centric, gave them the
And Nordstrom's being so incredibly
money back for tires that they didn't buy
at Nordstrom's.
Customer centric or Stupid?
If that customer is incredibly valuable to
you, and I'm talking about future value,
this customer to be buying so
I'm talking about the fact that we expect
much from us in the future that if we
don't give them money back
for the tires that they thought they
the money back today, we're going to lose
bought from us, if we don't give them
that value.
So it all depends on the value of the
customer.
The lifetime value of the customer.
The future value.
If that's sufficiently high.
And that's the problem with Nordstrom's.
They treat everybody so incredibly well.
Nordstrom's offers such wonderful service.
Regardless of the value of that customer.
And that's the problem with Nordstrom's,
is that because
future value
they fail to focus on figuring out the
of each and every customer,
So to me the Nordstrom's example is a
example of, of where a product and
great
customer centricity collide.

17. What is customer centricity?
Customer centricity is a strategy that aligns a company’s development/delivery of its products/ services around the current and future needs of a select set of customers in order to maximize their long-term financial value to the firm.
Customer centricity requires the company to be willing and able to change its organizational design, performance metrics, and employee/distributor incentive structures to focus on this long-run value creation/delivery process.

18. Customer-centric Approach
The goal of the firm is to maximize profits
Celebrate customer heterogeneity: distinguish the profitable customers from the less profitable ones
Focus on future profitability (customer lifetime value) rather than past profits
Success arises through enhanced (and/or more efficient) customer acquisition, retention, and development
Customer-centric organizational structure
The competitive advantage – “relationship expertise” with respect to focal customers

19. Galbraith (2005), Designing the Customer-Centric Organization

20. Reflections on customer centricity
Customer centricity does NOT suggest that “nonfocal” customers should be ignored or “fired;” to the contrary, it is important to have a healthy proportion of such customers to add a high degree of stability and robustness to the overall customer base. (Think of them like cash in an investment portfolio.)
Taking this idea further, there is a paradox of customer centricity: the more that a firm tightens its central focus on a select group of customers, the more it needs its “non-focal” customers to stabilize the overall mix.

21. Discussion questions
According to the usage trends of mobile applications, think of one application you want to do business.
Who is the customer? Can your organization come up with a single, consensus answer to this question, or can you at least reconcile the roles/relationships of the different potential customers?
What are the major barriers to account for? Develop a comprehensive list, ranked by the importance/difficulty of each barrier.
What resources can you utilize to overcome these barriers?
Thoughts about what competitors are doing in this area?
Does it make sense for your organization to become customer centric? If so, what should be your immediate goals and expectations?

22. Worldwide Survey of Mobile App Users by by Soo Ling Lim, 2013

23. What is the distribution of users across mobile app platforms?

24. How frequently do users visit their app stores to look for apps?

25. On average, how many apps do users download per month?

26. How do users find apps?

27. What triggers users to start looking for apps?

28. Why do users download apps?

29. What types of apps do users download?

30. What are the factors that influence users' choices of apps?
Customer behavor + marketing strategies to communicate
India very concerns about environment เลิอกมาห
Priciing ………
However indian care less about price if they like they might choose

31. Ratings influence app selection: why do users rate apps?
If you want to mouth to moutn straetgy you should impress customer about the produxct

32. Why do users pay for apps?
Marketing strategies – promotin\on

33. Why do users stop using an app?

34. Age and Gender

35. Type of Work

36. References
Customer Centricity: Focus on the Right Customers for Strategic Advantage, by Peter Fader
Introduction to Marketing Course, University of Pennsylvania