1. Copyright 2005 1 Trust Among Mobile Business Partners Roger Clarke Xamax Consultancy Pty Ltd, Canberra Visiting Professor, Uni. of Hong Kong, U.N.S.W., A.N.U. http://www.anu.edu.au/people/Roger.Clarke/....../EC/MBusTrust {.html,.ppt} ICMB 2005 – m>Business Sydney, 11 July 2005

2. Copyright 2005 2 Trust Among Mobile Business Partners Themes Understand History... Or Repeat It Trust and Consumers / Trust and Partners Change in Business Processes and Organisation From Virtual to Ambient m>Organisation Partnership Trust and Distrust Towards a Trust Framework for m>Business

3. Copyright 2005 3 Trust Issues Affecting eBusiness Customers / Clients Terms of Trade Other-Party Default Data Security in General Data Security In Particular: Identity Location Identity Authentication Data

4. Copyright 2005 4 Overcoming Device Promiscuity in Mobile Devices, RFID Chips, etc. Sufficient Processor & Memory Capacity Sufficient Power when its needed Two-Way Device Authentication Consumer Requirements defined Consumer Requirements implemented

5. Copyright 2005 5 Trust Issues Affecting Business Partners Business Aspects Massive Investments Shifting Allegiances Security Problems Appropriateness of Payment Mechanisms Demand-Side: Cultural Variations Cultural Change Technology Aspects Clash between Multimedia Expectations and Mobile Networks Channel Capacity Payment Mechanisms Infrastructure Variations, Compatibilities, Interoperability Rapid Change and Forward-Compatibility

6. Copyright 2005 6 Lesson 1 from eCommerce So near... and yet so far Reaping the benefits of eBusiness depends on it being adopted by others But many organisations suffer from slow adoption by their business partners especially where those partners are: Medium-Sized Business Enterprises Small Business Enterprises Micro Business Enterprises Consumers and Citizens

7. Copyright 2005 7 A Retrospective on 25 Years of Change in Business Process and Business Organisation From Organigrams to Value-Chain Thinking Generations of System Topologies Mutating Organisational Topologies Virtual and Ambient Organisations

8. Copyright 2005 8 The Business Enterprise Value-Chain Porter M. 'Competitive Advantage' The Free Press, New York, 1985, in Chapter 2, pp. 33-61

9. Copyright 2005 9 The Industry Sector Value-Chain Porter M. 'Competitive Advantage' The Free Press, New York, 1985, in Chapter 2, pp. 33-61

10. Copyright 2005 10 Inter- Organisationa l Systems Multi- Organisationa l Systems 1-to-1 m-to-n

11. Copyright 2005 11 Hub and Spoke System s m-to-1-to-n

12. Copyright 2005 12 Cascading Systems m-to-1-to-n-to-p

13. Copyright 2005 13 Extra- Organisational Systems

14. Copyright 2005 14 Supra-Organisational Systems Alternative Topologies Inter-Organisational Systems (1-to-1) Multi-Organisational Systems: Unmediated (m-to-n) Networls Hub-and-Spoke (1-to-n) Networks sector-dominating organisations intermediated by exchanges, VANs/ISPs consortia-operated schemes Cascading (1-to-1-to-1) Systems (QR, CR, ECR) Extra-Organisational Systems

15. Copyright 2005 15 Supra-Organisational Forms to Match the Systems Topologies Contracts for: Procurement Distribution Strategic Alliances or Partnerships Outsourcing Franchising Project Teams Task Forces Joint Ventures Consortia... Virtual Organisation

16. Copyright 2005 16 Camerons eBusiness Collaborative Project Lifecycle TM Cameron J. (2005) 'Ten concepts for an ebusiness collaborative project management framework ' Proc. 18th Bled eConf., Bled, Slovenia, June 2005

17. Copyright 2005 17 Camerons Ten Concepts for m>Business Collaborative Projects Levels of Collaboration: Management Functions: Meta Factors: Participant Team Representative Collaboration Formation and Maintenance Initiative Development Take-up and Implementation Motivation Capability Communication Coordination Cameron J. (2005) 'Ten concepts for an ebusiness collaborative project management framework ' Proc. 18th Bled eConf., Bled, Slovenia, June 2005

18. Copyright 2005 18 Prof. Niels Bjorn-Andersen, February 2005 THE VISION ABOUT AMBIENT ORGANIZATIONS Copenhagen Business School / Sydney University http://www.econ.usyd.edu.au/download.php?id=3797

19. Copyright 2005 19 The Objectives of eCommerce and of m>Business Survive and Flourish through: Effectiveness in achieving organisational objectives such as profit, market-share, growth; delivery of services, social control Efficiency, i.e. low resource consumption in relation to the value of the outcomes Flexibility over the short term Adaptability over the medium-term

20. Copyright 2005 20 From Virtual to Ambient Organisation Virtual Organisation (the e- Era) multiple, known locations less hierarchy, more team adaptive business processes adaptive business product semi-planned muddling-through fluidity & instability as a virtue uncertain organisational integrity need for a trust framework Ambient Organisation (the m> Era) location fluidity instability inherent

21. Copyright 2005 21 Lesson 2 from eCommerce DISTRUST is a Major Impediment Lack of power Benefits accrue to others Lack of incentive to adopt Incentives to adopt are quickly withdrawn eBusiness is used by powerful organisations to: reduce service-levels transfer cost and effort to others

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25. Copyright 2005 25 TRUST confident reliance by one party on the behaviour of other parties Origins Familial and Social Settings Trust in Organisational Settings What you depend on when no other form of risk amelioration strategy is available

26. Copyright 2005 26 DISTRUST confident reliance by one party on the MISbehaviour of other parties DisTrust in Organisational Settings What you expect – the worst

27. Copyright 2005 27 Sources of Trust Direct Relationship kinship, mateship, principal-agent, contract, multiple prior transactions Direct Experience prior exposure, a prior transaction Referred Trust 'word-of-mouth', reputation, accreditation Symbols of Trust or Images of Trust brands, meta-brands

28. Copyright 2005 28 Market Participants Sellers/Buyers Tradable Items Buyers/Sellers Agents / Brokers Marketspace Operator Agents/Brokers Services Providers Processes Infrastructure

29. Copyright 2005 29 Price-Setting as a (Dis)Trust Factor Price Pre-Set by the Seller: Shop Point-of-Sale Catalogue-Sale Price Pre-Set by the Buyer: Reverse Auction Mechanism Driven by the Buyer: RFQ/RFT/EOI-RFP Mechanism Driven by the Seller: Open Auctions Negotiation Process

30. Copyright 2005 30 Risk Locations in Marketspaces Default by a Party The Seller The Buyer An Agent A Service-Provider The Marketspace Operator Quality The Tradable Item The Fulfilment Process

31. Copyright 2005 31 Trust Issues Among Partners in Ambient, m>Business Organisations Multiple, Fluid Locations – hello! hello? Less Hierarchy, More Team – which team was that again? Adaptive Business Processes –what undertakings? Adaptive Business Product –what specification? Semi-Planned Muddling-Through – but that was then Inherent Fluidity & Instability –what contract terms? Highly Uncertain Organisational Integrity – who? => An Enormous Need for a Trust Framework – a what?

32. Copyright 2005 32 Foundations for Confident Reliance Among Business Partners in Ambient, m>Business Organisations Each Players Track Record Expertise Findability Substance Commitment Involvement Control of Expertise Guarantees About: Confidentiality I.P. Relative Sizes Relative Contributions Relative Market Power Exercise of Market Power