M-Commerce - Is it really a new frontier for E-Commerce?

'Electronic Commerce' as we all know is doing business electronically using network-based technologies. To put it simply, it refers to the aggregate of al business transaction especially over the Internet - the network of networks. "Mobile Commerce" too, refers to the aggregate of business transactions carried over the internet - but includes only those that are accessed via wireless devices. It is in fact an integration of mobile communication technology with e-commerce. The portability of wireless Internet Devices (WIDs) has resulted in the effective delivery of e-commerce in the hands of the consumers, promising new avenues for e-commerce activities which was beyond the scope of traditional PC-based internet offerings. Thus, m-commerce is a complementary phenomenon enhancing electronic commerce market rather than posing any threat to it. Both being offspring's of technological advancements, results ultimately in electronic transactions over the world wide web, accessing it either through wired or wireless networks.

The strategy for m-commerce, however, is not just an extension of an existing website into wireless device. Although the ends of both m-commerce and e-commerce is the same (electronic transaction), the means to the end is completely different specially with respect to technology used and market segment targeted. Being accessed by a different set of devices, working on a different operating environment, with varied presentation standards and using diverse bearer network technologies - m-commerce is quite a complex phenomenon as compared to e-commerce.

Companies already having a web presence should look for synergies and interoperability of applications & devices, and try to take the maximum advantage of the competitive edge. They should try to focus on distinctive features of m-commerce and exploit its unique opportunities. An IDC global survey studied mobile and non-mobile enabled sites highlighting the advantages of M-enabled sites. According to them, m-enabled sites offer greater business benefits in terms of lower operational costs, better relationships with distributors & sales channel and greater customer loyalty.

Further, the two phenomena (e-commerce and m-commerce) have marked differentiation vis-à-vis market segment, as well. Behaviour of mobile users is more impulsive-seeking specific information at their fingertips rather than browsing through pages of contents. M-commerce is mostly associated with microtransactions focussing on task-oriented customers using their mobile devices for either convenience goods or services or impulse buying. Definitely no customer would like to buy big ticket items like a car, stuck in traffic, trying to access a website on a cellphone. Such major purchases, which require elaborate browsing and researching, fall under the domain of e-commerce.

Thus, the technology and market segment differentiation between electronic and mobile commerce, not only provide immense and varied business opportunities, but also establishes a bare fact and that is "Internet commerce" is here to stay - whether it is accessed by wired or wireless device.

Saboohi Naseem Visiting Faculty at ACEM, Aligarh