In this research, a mobile business classification scheme and an analysis framework re suggested based on both wireless service categorization schemes and research on an Internet business model classification. For BBC models, analysis by each model is also suggested. Chon Song Lime Hung Sick Such and Dade Song Kim The authors Chon Song Lime is a Professor, Hung Sick Such is a Research Fellow and PhD candidate and Dade Song Kim is a Research Fellow, all at the School of Computer and Industrial Engineering, Honeys University, Seoul, Korea.
Keywords Modeling, Classification schemes, Business analysis, Republic of Korea 2. Previous research 2. 1 Research on Internet business classification schemes The Internet business model means a set of strategies for corporate establishment and management which includes a revenue model, high-level business processes, and alliance (Lime, 2002). Internet business model has had various forms and current business models are changing or being merged as time goes on. Table I shows the previous research on Internet business model classifications.
Abstract Although there have been a lot of studies on mobile business, it is hard to find ones in which an integrated perspective of mobile business based on both customers’ and companies’ needs is suggested. This research develops a bile business model classification scheme and applies it to analysis of current status in mobile business. In the first case study on 65 firms in Korea, mobile solutions are categorized based on the classification scheme in order to analyze an overall market environment of mobile business.
In the second case study on mobile service trend analysis, a set of evaluation indices including four general indices, ten effectiveness indices and 13 measurement indices were developed to analyze mobile service environment in the perspective of BBC (business to customer). For the second case study, 200 mobile heavy users were questioned on the bile service-related issues. 2. 2 Previous research on mobile service classification unlike the Internet business model classifications, mobile business has been categorized roughly by its service model based on mobile characteristics as well as Internet business characteristics.
Mobile business classification schemes are summarized in Table II. As shown in Table II, previous research has been focused on service categorization. ARC Group categorized mobile business into timeliness, remote access, location based (ARC Group, 1999). Ovum Group suggests five forms of mobile services based on promising services Electronic access The Emerald Research Register for this journal is available at www. Nearsightedly. Com/architectures The current issue and full text archive of this journal is available at www. Merchandising. Com/0263-5577. HTML Industrial Management & Data Systems volume 104. Number 1 . 2004 . Up. 78-87 # Emerald Group Publishing Limited . SINS 0263-5577 DOI 10. 1108/02635570410514115 This research was conducted with the support of the Korea Ministry of Information and Communication (grant number: designated survey 02-02). 78 A classification of mobile business models and its applications Volume 104. Number 1 . 2004 . 78-87
Chon Song Lime, Hung Sick Such and Dade Song Kim Table I Research on Internet business model classification Perspective Internet business model categories Researcher(s) Enterprise value chain E-shop, e;procurement, e;mall, e-auction, trust services, info brokerage, value chain service provider, virtual community, collaboration platform, third party marketplace, value chain integrator Timers (1998) Seller-driven market, buyer-driven market, neutral market Ferryman and Harrington (1998) E-broker, manufacturer, auction Jutland et al. (1999) User: e-commerce, content aggressors, market makers, service providers
Communication service providers: backbone service providers, ISP/OSP, last mile provider FAA and Touch (2001 ) Hierarchy Native Internet business model: library model, freeware model, information barter model, digital delivery model, access provision model, Web hosting model Transplanted real-world business model: mail-order model, advertising based model, subscription model, free trial model, direct marketing model, real estate model, incentive scheme model Bradbury (1998) Business type Brokerage, advertising informatory, merchant, manufacturer, affiliate, community, utility, subscription
Rape (2000) Key features of business model Physical В± digital, general В± special, manufacture В± intermediary Yon et al. (2001) Table II Mobile business (service) classification schemes Category ARC Group (1999) Timeliness Remote access Service E-mail/fax, stock information, news, sports information Intranet access, integrated messaging, banking/trading, reservation, e- commerce, sales support Location based Laughlin (2000) Personal communication Infotainment Mobile commerce Business application Traffic information, weather information, vehicle location, navigation, entertainment Remote control
Information appliance application, automobile application, navigation tracking, emergency service Lehman Brothers (see Yon et al. 2003) Communication Information Transaction Entertainment Messaging personal directory, community Weather, news/sports information, catalog, mobile broadcasting Ticketing, usage fee, coupon, banking/trading, auction Conference support, intranet, e-mail, file transfer, DB SMS (short messaging service), chatting, integrated messaging, e-mail News, city guide, directory service, traffic and weather Banking brokerage, shopping, auction, reservation Music, game, graphic, video categorization based on promising arrive/application or user intention. ND/or applications such as personal communication, infotainment, mobile commerce, business application, remote control (Laughlin, 2000). Lehman Brothers (see Yon et al. , 2003) take a view of user intention to categorize mobile service into communication, information, transaction, and entertainment. In summary, mobile business categorization so far has been focused on service 2. 3 Limitations Previous research on mobile business classification has a couple of limitations to suggest a general perspective on mobile business. First, previous classifications are mainly soused on mobile service not the mobile 79 business model.
A business model approach is needed in order to suggest a business perspective of mobile business. Second, the previous (service) categorization schemes are mainly dealing with services in BBC (business to customer) business model. BIB (business to business)/BEE (business to employee) perspectives are not reflected in the previous research. Third, it is hard to use the existing Internet business model classification schemes in mobile business because wireless Internet channel has its differences from wired Internet business such as channel characteristics, usage patterns, industry maturity, etc. Kim, 2001; Lee et al. , 2001; Kim et al. , 2002). Accordingly, a new mobile business model classification scheme which is based on a business model perspective and includes BIB/BEE categorization is needed. With the review and limitations of previous research mentioned in this section, a new mobile business classification scheme is presented and its differences from previous research elucidated in section 3. In sections 4 and 5, applications based on the suggested classification scheme are described with its result analysis.
Section 4 provides a status quo of mobile business solutions based on BIB/BEE equines model classification scheme. In section 5, mobile BBC business model classification framework is applied to 200 mobile heavy users in order to analyze its business environment and service level. In this research, the target customer is the first level criterion to divide mobile business models. Therefore, mobile business models are divided into ICC (business to customer) and BIB/BEE (business to business; business to employee).
So far mobile BIB/BEE model classification has been hard to find in the literature. But, wireless technology has vertical (BIB/BEE) and horizontal BBC applications (Yen and Chou, 2000). BIB/BEE models are subdivided based on value chain perspective (Porter, 1985) and BBC models are divided in the perspective of customers’ purpose on supplied value. Based on both mobile channel characteristics and business model perspective, a mobile business model classification is suggested as shown in Figure 1.
For the first level categories, BBC and BIB/BEE, a couple of descriptions are summarized in Table Ill. As shown in Table Ill, mobile business has its differences in perspective, purpose and value proposition by general categorization (BBC, BIB/BEE). The previous research has focused on wireless technology. But, business (or managerial) issues are more important than technical issues in telecommunication (Willies and Kettle, 1999). Therefore, mobile business model classification has an important meaning in the wireless environment.
Furthermore the previous classification schemes are mainly focusing on BBC-oriented categorization and application. But, the greatest growth in 3. Mobile business model classification scheme Figure 1 Mobile business model classification Mobile business is positioned in a business ecosystem consisting of mobile telecommunication companies, content providers, mobile solution providers, customers firms or individuals), etc. Among the business players in a mobile business ecosystem, the customer” has an immense influence on the mobile business model.