PowerPoint Presentation

IT Prof. Kyoung Jun Lee()School of Management, Kyung Hee University klee@khu.ac.krDirector of BMER.net (bmer.net)

Founder & CEO of

Basics of Internet Business Modelshttp://bmer.net/2010/10/20/web-2-0-from-business-model-perspective/Open Business Model: Social Business Model Introduction to NFC-Based Business Model

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2007.5.28.AM 11:301: 59%2: 15%3: 9%Content Match Advertising

5Content Match : +Google

Open Business Model .MD e-Mall Open e-Commerce Market: (: eBay) Open Dictionary (: Wikipedia)Open Innovation(R&D): NineSigma/ Feature Phone SW Market -> SW Open Mobile SW Market: AppStore(Apple)Open Social Network: Facebook API

(Clay Shirky 2008)

? . appeal , , . appeal , , , .Douglas North: Friedrich Hayek: (A Knowledge Discovery Procedure)

. MD(Merchandiser) , ., (Virtually Infinite Capacity) . Platform Open Business Model (Partner) Real Needs/ Incentive Barrier Encar.com Simplicity/Convenience is not optional but mandatory.Win/Win & its Clarity () Business Model / Google to Facebook in WebThe web traffic of facebook exceeds that of GoogleTop talented people in Google are going to Facebook The potential of ads in facebook is no doubtSearch (AdWords) cannot arouse the human needs. It assumes the existing needs of humanHowever, SNS can arouse new human needsA good statistics on Social Media MarketingIn 2014, 50% of purchases will be influenced by online : E-Commerce in US: 7.7% of total retail50% of Internet Users participate in social net: Only the 12% of adults use SNS55% of US companies use social net for marketingBut the 45% is Anti-SocialOnly 10% of B2B marketers use social netFriends and families are the number one trusted source of informationIt is meaningless if we have more than 150 friends, which means lowering quality of personal connection.1m+ sites that have integrated Facebooks social layer on their websites90% proportion of purchases subject to social influence (Econsultancy)35 countries that Groupon operates in with 2 years of launch

Facebook, Twitter Business ImplicationsSNS .SNS , .Facebook is a utility service not SNS - Its founderOpen Innovation Open business model Web .Grooming and SocialNetworkingMichael Rogers:, How social can we get? What evolutionary psychology says about social networking,http://www.msnbc.msn.com/id/20642550/Robin Dunbar, Gossip, Grooming and the Evolution of Language, Harvard University Press, 1998.Grooming was the first social networking applicationWeb-based social networking: an incredibly efficient gossip engineThe beginning of the Internet as it is meant to be.

Picture Source: http://cardsunlimited.com/e-shop, e-mall, e-marketplaceE-shop ---- (Horizontal Integration) E-mall Amazon vs. CDNOW, Yes24 vs. ***bookE-mall ----- (Open) -> e-marketplaceMD(Merchandiser) E-auction -- ( ) -> e-marketplace , .

15Social CommerceBuilding a social layer on top of online commerceRetail has entered a new phase, where product discovery and purchase decisions are informed by the collective and distributed social intelligence of peoples social graphs.SNS is leading the social commerce charge with a) social plugins that add a social layer to retail sites (so people can share likes and purchases with friends, and get personalised recommendations) and b) SNS adds a social layer to bricks and mortar stores (allowing people to share store visits and get deals)Big brands want to cash in on your SNS Friends16From Wired Feb 2011 Cover Story on Social Commerce Value of Social CommerceEnhances the retail business by turning electronic WOM into salesEnhances retail experience for shoppers: helping them realize the value-expression function of shopping (impression-management aka bragging rights, ego-tripping) whilst also helping shoppers make smarter shopping decisions using their social intelligence (personalized recommendations for product discovery/choice)WOM & imitation have always influenced purchase decisions, but social commerce adds scale and transforms social influence into sales leaving a trackable digital trace: Social commerce makes WOM measurableSocial commerce makes use of human psychologyPsychology of sunk costs; consumers change from skeptics to advocates once they own a product (part impression-management)We want to be seen as smart shoppers (which is why the average review is 4+ stars out of 5): Post-decision dissonance management17From Wired Feb 2011 Cover Story on Social Commerce social commerce Andrew Mason (Groupon founder) The size of the [social commerce] market is the size of every empty restaurant tableAndrew Mason (Groupon founder) People sit around trying to think of how to spend money. One of the most powerful ways to figure that out is looking at what you friends are buying, people you trustChristian Hernandez (Facebook) Social recommendations can help you discover things that some algorithm wont , , .

18From Wired Feb 2011 Cover Story on Social Commerce .Apple AppStore: Apple(3): Content(7) () Open Market , 3:7 .Google Android Market: Google(0): Content(10) AppStore , 1 0:10 Facebook Credit: Facebook(3): Content(7) 3:7 , 3:7 . . . , (,,) (Pre-load) (App) ?

(1): - e-book App RE-Book , . . SW/ . Douglas North Friedrich Hayek , .

(2): (NFC App) NFC App , App , NFC , NFC App , NFC App .NFC Default App .' ' http://www.etnews.com/news/detail.html?mc=m_015_00001&id=201106160195 Nexus S , , NFC NFC App , NFC Default App . NFC App , NFC App . Do not be evil .

: in Daum Empas URL . ( ) . . 1 SNS , Facebook Twitter .

: SNS SNS .

SNS

.Cyworld SNS Facebook Cyworld . Youtube Open Business Model . . , .Open Model Sustainability ( SSK )Closed Model . (, , TV) / , . Open Business Model .Introduction to NFC-Based Business Model29NFC (1)NFC

Near field communication, or NFC, is a set of short-range wireless technologies, typically requiring a distance of 4inch or less. NFC operates at 13.56 MHz and at rates ranging from 106 kbit/s to 848 kbit/s.

. ECMA 340, ISO/IEC 18092 , . 13.56MHz 20cm 424kbps .( )

10cm 14 11,300 1/3(3,700 ) (IE Market Research, 10.7)

30

30NFC (2)NFC

P2PNFC Connect Electronic DevicesNFC (, , POS) . Access Digital Content RFID , .Reader/Writer Make Contactless Transactions , . Emulation3131

Mobile Lifelog App: 1cm You can download the 1cm application from the Android Market!(Enter 1cm or loveistouch in the search box.)NFC NFC SHW A170KSHW-A170K - NFC - & KT - 2010 11 SS - - - - 2010 12 16 - 2011 2 28

3333NFC 2015 15 85% NFC (H.I. Business Partners, 11.2) S2 NFC / 5 AT&T, , T : , NFC : , NFC , : NFC : 2011 NFC (2010 6 )LG : NFC WWW

NFC

3434Consumer Electronics and NFCPairing NFC DevicesHome computer componentsIn-car devicesHome entertainment systemsHeadsets and handsetsCameras and printers / digital framesConnectivityQuick and secure Bluetooth and Wi-Fi set-upFast data transferAudio handoverInformation GatheringRead product history from smart tag to NFC phoneAsset ManagementUse NFC phones to read smart tags per product for inventory controlDebbie Arnold, Director of NFC Forum, WIMA NFC USA, November 30, 2011

U-Commerce Business Model & the Prototype Using Mobile RFIDUbiComp 2008 Demo

Referral Marketing

Product itself will become sales platform !Comparison ShoppingTag-Match AdvertisingTouch & feel the product real world, and buy it online !Tag-Match Advertising exposes proper ads to users through Tag Match, a new process based on the information on users and the information and contents about tags A ReferrerOn-line SellersAdvertisers- A consumer views the products in offline store, and then, receive information about online retailers- When consumer buys product online through offline seller, offline sellers can receive incentives from other retailers- A potential customer scans the RFID tag of a prior purchasers product with a mobile RFID module-embedded handset- If the potential customer buys products, the prior purchaser gets a referral fee

The AdSense in Ubiquitous Era !

Referrers productReadingRFID Tag

Tag Match Advertising(Lee et al. 2007)

Lap Top A1-45241. Basic Information2. After Service Request3. Price ComparisonRelated Products1. Best Lap Top Briefcases 30 for Young Men2. Accessories3. Similar Lap Tops . / . . (?) (eMarketer.com) (66%) (58%) (58%) (49%) / (46) (38%) (37%) (17%) NFC . . , , , NFC Shopping (NFC mCommerce, NFC-based Commerce) 2 E-Commerce 3 () Making m-Commerce more attractive in Brick&MortarLinks Real world (Brick&Mortar) & Virtual world (E-commerce)connects the consumer, the store and the digital world through touch.

NFC Check-In , , , :

Check-Ins & Check-OutNFC , (, Mall, ) Personalized marketing . . Check-In . Interactive shopping , , , /Integrated check-out()---NFC : QR bar code , . ., , , .

NFC , , NFC : . ,

45Examples of U-MediaU-Display (Lee & Yoon 2007): e.g. Taxi CabU-Exhibition (Lee & Jun 2007): RFID-BasedRFID/ZigBee-Based(Lee & Jun 2009)U-Billboard (Lee & Lee 2007)U-Speaker (Yoon, Park, & Lee 2009): RFID/ZigBee-BasedU-Publication (Lee & Park 2007)Open Business Model for Augmented Book Integrated with Mobile Phone (Park, Lee, & Casalegno 2010)U-Camera & U-Photo (Lee & Ju 2007): The camera that takes photographs of digital links as well as real world image

46U-Exhibition Using Mobile RFID (Lee & Jun 2007)

DocentAudio GuideIrDAMobile RFIDEase of UseTime-ConstrainedInput BurdenInaccuracy of RecognitionBurden of Tag TouchStore of InformationNoNoManual StoreAutomatic StoreExtension of InformationQ & A PossibleNoPossible within the DatabasePossible to link external WebCommerce IntegrationNoNoNoPossibleCRMNoNoWeakStrong

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, NFC QR

- SNS ( 229)

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(2011.11.2~7) 927 15 102,544 12,976 34,240

51Commerce-Media Integrated Space (Lee 2007)

CommerceMediaMedia-embedded PeopleMedia-embedded ProductMedia-embedded PlaceCommerce-embedded MediaNFC Smart Space

52NFC 2010 NFC 1990 Web .Web , , () .NFC , , , , () .NFC WWW .53WWW Timeline NFC Timeline 54WWW-Based BusinessNFC-Based BusinessOn Apr. 30, 1993, CERN announced that the World Wide Web would be free to anyone, with no fees due2010: NFC 1993: Mosaic Released

2011: NFC App 1994: Netscape Browser Released Amazon Founded2012: NFC App .1995: Successful IPO of Netscape Yahoo Founded Amazon.com go online Verisign founded2013: NFC App IPO1996: Successful IPO of Yahoo Inc.

2014: NFC IPO1997: Successful IPO of Amazon Inc.2015: NFC IPONFC / .Media Embedded Place/Product (: ) , NFC , NFC . , , . .Display 55 NFC NFC NFC , , .

56Thank you!Fore More Information:Visit BMER.netVisit Kyoung Jun LeeEmail: leekj007@gmail.comFacebook.com/leekj007010-3775-195257

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