1. On-Off Integration Platforms: Trends andStrategy Prof. Kyoung Jun Lee() School of Management, Kyung Hee University Director of BMER.net (bmer.net) Founder & CEO of LoveisTouch Inc. LoveisTouch.com

2. MIRW(Mobile Interaction with Real World) Blue Ocean Mobile Local U-Commerce -> Integration of Online and Offline Marketplace U-Media -> Media-Embedded Product and Place Apple Passbook Google Amazon Local eBay X-Commerce Making Real World Media: LoveisTouchs Approach Remember Consumerization 3. MIRW(Mobile Interactionwith Real World)- U-Commerce -> Integration of Onlineand Offline Marketplace- U-Media -> Media-Embedded Productand Place Blue Ocean Mobile Local Large Local Small LocalNetworking? 4. : 5. Showrooming The practice of examining merchandise in a traditional brick andmortar retail store without purchasing it, but then shopping online tofind a lower price for the same item. Online stores often offer lower prices than offline stores because they donot have the same overhead cost. Showrooming can be costly to retailers,not only in the loss of the sale, but also due to damage caused to thestores floor samples of a product. Many retailers have tried to compete with showroomers by slashing theirown prices. Independent businesses, however, are advised to countershowrooming by adding value via included services and other tactics,such as making information and reviews more readily available tocustomers so that they might not choose to seek it out online. Some major retailers, such as Target, are attempting to combatshowrooming by selling products exclusive to their stores. Walmart isallowing customers to avoid the shipping charges of online purchases bypicking up the items in the stores. 6. Key Word Smart Mobile NCSoft -> Nexon -> , SMS & NateOn -> KakaoTalk, Line Cyworld -> KakaoStory, Facebook PC Platform PSY iTunes 140 Apple 60 .. . 21% , 30%(Apple, Google AppMarket Platform), 49% Open Business Model Clay Shirky (2008): Here Comes Everybody( ,2008) (Filter then Publish) (Publish then Filter) Social 7. Smart Phone (N-Screen) Input/Output PC . . , , , . . . BM 8. NFC Card Emulation Payment Crisis of VivoTech ? Google wallet goes cloud ISIS started services in Salt Lake City and Austin NFC Tag Payment PayByPhone: Barcode/QR , => LevelUp(thelevelup.com) POS Square, ChargeAnywhere, GoPayment, SWIPE Passbook of Apple Imago(http://www.qsecure.com/) Digital Receipt: Proximiant 9. POS : Square Charg eAnywhere,GoPayment, SWIPE 10. , QR 11. . , . . : , POS ( ) . : Passbook . : PayByPhone , . 12. A Definition of U-Commerce (Lee 2005) Defined as the commercial interaction among providers, consumers, products, and services , enabled and supported especially by (the real-world) seamless communication of each entitys (digital) information. The seamless communication is supported by the combination of 1.Automatic identification technologies (e.g. RFID, NFC, QR), 2.(wireless) Communication technologies (e.g. bluetooth, ZigBee), 3.Positioning services (e.g. GPS), and 4.Sensor network technologies. 12 13. NFC-Based Commerce(evolved from Definition of U-Commerce (Lee 2005)) Defined as the commercial interaction among providers, consumers, products, and services , enabled and supported especially by Seamless communication of each entitys(digital) information Using NFC technology.13 14. NFC-Based Commerce Business Models U-Referral Marketing (Lee & Lee 2006) U-Comparison Shopping (Lee & Suh 2006) U-Payment & U-Receipt (Lee, Ju & Jeong 2006) U-Recommendation (Kim, Lee & Kim 2006) Tag Match Advertising(Lee, Lee, Jun 2007) Home Order by RFID(Lee, Kim, Oh 2008) U-Insurance(Lee & Oh 2008) 14 15. Three Core NFC-Based Commerce ModelsUbiComp 2008 DemoA ReferrerReferral Marketing Product itself will become sales platform ! Referrers product - A potential customer scans the NFCtag of a prior purchasers product witha NFC phone- If the potential customer buysproducts, the prior purchaser gets areferral fee Comparison Shopping Tag-Match Advertising Touch & feel the product real world, and The AdSense in Ubiquitous Era ! buy it online !- A consumer views the products in offline store,Tag-Match Advertising exposes proper adsand then, receive information about online retailers to users through Tag Match, a new- When consumer buys product online throughprocess based on the information on usersoffline seller, offline sellers can receive incentives and the information and contents aboutfrom other retailers tagsOn-line SellersAdvertisers 16. Tag Match Advertising(Lee et al. 2007)Lap Top A1-45241. Basic Information2. After Service Request3. Price Comparison Related Products 1. Best Lap Top Briefcases 30 for Young Men 2. Accessories 3. Similar Lap Tops 17. Definition of U-Media (Lee 2006) The media in ubiquitous environment not only takesadvantage of human biological systems, but also thedigital systems of human beings while conventionalmedia appeals only to peoples bio-systems. U-Media is defined as a media where human createsand consumes content through not only humancognitive and perceptual processes but also throughthe interactions between surrounding digital systems c.f. Marshall McLuhan Media are extensions of our senses into the public domain A medium is a technological or artificial extension of a bodily faculty. 17 18. Examples of U-Media NFC-Embedded Display (Lee & Yoon 2007): e.g.Taxi Cab NFC-enabled Exhibition (Lee & Jun 2007): NFC/ZigBee-Based(Lee & Jun 2009) NFC-Embedded Billboard (Lee & Lee 2007) NFC-Embedded Book (Lee & Park 2007) Open Business Model for Augmented Book Integratedwith Mobile Phone (Park, Lee, & Casalegno 2010) U-Camera & U-Photo (Lee & Ju 2007): Thecamera that takes photographs of digital links aswell as real world image18 19. Exhibition Using NFC (Lee & Jun 2007)Docent Audio Guide IrDANFC Time-Inaccuracy ofBurden of TagEase of UseInput Burden Constrained RecognitionTouchStore of Information NoNoManual Store Automatic StorePossible within Possible to linkExtension of InformationQ & A Possible No the Databaseexternal WebCommerce Integration NoNo No Possible CRM NoNo WeakStrongLoveisTouch Inc. 19Global No.1 NFC based Service Platformer 20. Mobile Local Mobile activity Yelp, , Mobile Shopping / Offline (Online) , , online/offline mix Google Research 70% Offline Shopping , 53% Online Offline (51%), Online Offline Online (32%), Offline Online (17%) Forrester Research Online (Web-influenced retail) Online 5 Retail 50% , . Online 25,000 ( ) 21. Apple Passbook UX (, ) Card Pass Store Cards( ), Coupons(, ) API (LBS) () TPO Offline ANA, DELTA, Starbucks Passbook Pass , Gurunavi Passbook , GPS iPhone Local Marketing Apple iPad POS system , , CRM, , POS system App Apple Passbook Pass API POS system Apple ~ . , , (KT ), Monetization , KT DigiEco, 2012. 22. From POS to Tablet with Square? 23. eBay X-Commerce Online Offline X(Cross) , M&A: Offline / Adobe system Omniture, Kenshoo, Outright X-Commerce Business ebay () target eBay CEO: 15 3 : , , (KT ), Monetization , KT DigiEco, 2012. 24. X-commerce Partnership ( : Gigaom) 25. Google Same Day Delivery Service Google: 2012 10 PC Google , , Needs , , , matching Google ( , , ) ( , , ) matching, . Search-Engine Do-Engine , On/Off Google (Search), (Google Play), (Google Wallet, Checkout, Google Offers) ~~ 10 , . , , (KT ), Monetization , KT DigiEco, 2012. 26. Google Shopping: Product Listing Ads Google, 2012 Amazon Reuters 2013 Amazon Google Kleiner Perkins Caufield & Byers Chi-Hua Chien "Amazon , Google "," " 2012 5 , , "Product Listing Ads" e-Commerce "Google Shopping" "Google Shopping" Google , , "GoogleTrusted Stores" Google "Google Shopping" , Amazon , , (KT ), Monetization , KT DigiEco, 2012. 27. Amazon Local Amazon, Google ... Amazon Google Amazon 5 380 2011 96% Google Amazon "DSP(Demand Side Platforms)" "GoogleShopping" Google Amazon e-Commerce 2012 3 30% Amazon.com Forrester Amazon Google 13% (Daily deals) Amazon Local , Google -Local , , (KT ), Monetization , KT DigiEco, 2012. 28. (Concierge) : , , IT , Google Now Google , , TPO Apple Siri, Passbook Google Siri , Google Now . , Offline Google Now , , Offline . . , , (KT ), Monetization , KT DigiEco, 2012. 29. LoveisTouchs ApproachMission : Making Real World MediaProvides a platform for mediarization of real space thus helps variouseconomic entities efficiently create customer value and share profit.29 30. The 1st Fine Art Exhibition Using NFC in Korea, powered by LoveisTouch At Seoul, Korea, Nov.2nd. 2011Smart Service: Like, Comment, CommerService Statisticsce 31. Value proposition of NFC Gallery Tag ServiceSocial marketing tool for off-line contents spread it worldwide by connecting SNSwith NFC tagsSharing and DiffusionLifelogingthrough SNS X XExhibits spread worldwide by NFC & SNS 31 32. 150-times effect by just one touchTotal 927 Touches -> 150,000 impressions by SNS sharing Likes 102,544150,000 Impressions in 927 Touches in EventSharing 12,976FacebookComments 34,240 33. The National Museum of Korea Yongsan, Seoul, Oct 22. 2012. 10. 22~ )People can get more information, hidden stories and relevant souvenirs or books about the exhibit simply by touching NFCtag. They can also share their feeling about the artwork through SNS network. 33 34. Mediarization of Real World 34 35. Commerce-Media Integration A key to profitable business model WWW as a Commerce-Media Integration Content Match (Content-Commerce): AdSense Key word Search (Content-Commerce): AdWords Place/People/Product become media. Media-Embedded Place Media-Embedded People Media-Embedded Product Commerce-Embedded Media Media becomes commerce platform 36. Web as the existing Commerce- Media Integrated Space The current world wide web shows the commerce-mediaintegrated space by itself. The notion of the commerce-media integrated service space iscoined from observing the commercial evolution of the World-Wide Web (WWW). WWW has been regarded as a space from its inception. Thespace is a labeled space that has many links to other informationor services. The success of WWW as a mediated space has resulted from thecommercialization of the mediated space. From the lessons of WWW, it is believed that a pervasive spacecan be flourished by the commercialization strategy.36 37. Real World itself becomes media(Lee,K.J. 2007) Marketplace in old times integrated media &commerce With mass media, media and commercebecame isolated. With interactive media technology. Media andcommerce integrated in virtual interface. With ubiquitous technology, every spacebecomes commerce-media integrated space. Disappearing Line Between Journalism andCommerce Every space has become ad space, Steve Hayden,Wired, 2003. 38. A View on Ubiquitous Computing (Lee 2007) When Mark Weiser coined the term ubiquitous computing, therewere no mobile phone diffusion and it seems that he did notconsider much on the impact of mobile phones to our life. The revised definition of ubiquitous computing need to admit thatthe people are not such a natural human being, but a new humanbeing with a digital device with her or his hands mobiledevices(phones). If we assume this changed situation evolved from the age ofdefining originally ubiquitous computing, we can envision that thefuture space will have ubiquitous links than computers. The spacewith ubiquitous links is more lightweight system than traditionalubiquitous computing system.38 39. NFC-based Mediarization ToolsService Design MethodologyVisual design & economic validationUtility Tag Service Management Platform Service composition, Touch log statistics etc. Mobile Lifelog App: 1cm Profile share: "1cm buddy, SMS, multi-profiles Tag Reading, Time Line, and Bookmarking Evolve to physical contact-based SNS39 40. Utility Tag Service Platform: Tag + App+ CloudTag App Cloud . ++Utility Tag Services for Social Services (Likes &Comments) Touch-In Service NFC Lifelog App 1cmManage your tags Stamp & Couponon the Web Account Management Ordering & Ticketing Automatic WiFi Setting ..... 40 41. Customer Service throughTag-App-Cloud Collaboration A physical tag connected with a (semi-open) mobile app and (semi-open) tag management cloud can provide a seriesof virtual utility services like: WiFi(SSID & passwd) Setting using the information in the clou d SNS-based like and comments Attendance checking Couponing Serviceperson Call Social dating (e.g. girls near you) Tag match advertising CRM Services NFC services will be flourished by (semi-)open platform service provider 42. On going project 01 NFC Smart touch platformprojectOperate the NFC pilot program for Cosmetics & Beauty Expo, Osong Korea, 2013in the exhibition Download coupon area Notify event Connect free WIFI Facebook Like Outside the Smart ticketing Download e-catalogue exhibition area Smart social poster link to mobile website link to facebookfanpage Recommend hot placeIn the booth Reserve booth & notification SNS Check-in & Share See more information & SNS share about products Call an administrator Smart profile sharing 42 43. On going project 02 Touch-in Social marketing tool for merchants Once customers touch a tag in a store, they can getsomething special like coupons and events. They can alsocheck-in for the store through their SNS simply by touchingthe tag. Unlike current check-in services, Touch-in service enablespeople to check-in only they are really in. (Filed a patent) Stamp service Coupon Check-inLocal info. 43 44. LoveisTouch Inc. VAN ()KCL NFC KCL NFC , NFC NFC , 45 (, , , , ,, ) NFC 45 , 2013 . 45. Adpop: SignPad + NFC Payment + Offline Ad. 46. On going projects supported by governmentIn 2012, LIT has been selected as the operator of the Innovative tour service in KoreaNFC based Advertising system Design a business model . Develop various .utility services forabout NFC based on-line .visitors using NFCadvertisingtag & device Define CPT(Cost Per Touch), Analyze point ofCPS (Cost Per Sales)behaviors using Develop NFC based .NFC tag & deviceadvertising systemGovernmentprojects Establishing NFC Policy in KoreaDesigning NFC Product Test infra. Assess the need of Analyze institutionalNFC product testissues of NFC serviceinfrastructure for the Analyze usercompanies that useexperiences of NFCNFC technologyservice Design and plan the Study how to vitalizeNFC product testthe NFC marketinfrastructure46 47. Various Utility Tags WIFI Setting SNS Connecting Check-in CouponMystery47 48. Utility Tag Service Example: Wi-Fi SettingIf a person touches a tag with her or his smartphone, then the phone can set the Wi-Fi signal automatically, which is designated in the tag cloud.1!48 49. Mobile Lifelog App: 1cmYou can download the 1cm application from the Android Market! (Enter 1cm or loveistouch in the search box.) 49 50. NFC Web Insight 2010 NFC 1990 Web . NFC Web Browser Mosaic . Netscape Killer App . Web , , () . NFC , , , , () . 51. NFC BM / Media Embedded Place/Product (: ) . , NFC , NFC . , , : , BM Display , , , . ATM . . 51 52. NFC NFC NFC , , NFC , , NFC , , , 52 53. IT NFC 1: Infra HW (e.g. Cisco in WWW) NFC Chip, NFC USIM, NFC Tag, NFC Dongle 2: HW Infra SW (e.g.Netscape in WWW) NFC e-Wallet, NFC App, Tag Writing and ManagementSolution 3: NFC (e.g.Amazon and Yahoo in WWW) Smart Space Consulting/Integrators 4: NFC Smart (e.g. Overture and Google in WWW)53 54. WWW Timeline NFC Timeline WWW-Based Business NFC-Based BusinessOn Apr. 30, 1993, CERN announced t 2010: NFC hat the World Wide Web would be free to anyone, with no fees due1993: Mosaic Released 2011: NFC App 1994: Netscape Browser Released 201*: NFC App Amazon Founded1995: Successful IPO of Netscape201*: NFC Yahoo Founded Amazon.com go onlineVerisign founded1996: Successful IPO of Yahoo Inc.201*: NFC 1997: Successful IPO of Amazon Inc. 54 55. Web App, ? Tag TouchNFC as the Next Big Thing 56. Consumerization The growing tendency for new informationtechnology to emerge first in the consumermarket and then spread into business andgovernment organizations. The emergenceof consumer markets as the primary driverof information technology innovation isseen as a major IT industry shift, as largebusiness and government organizationsdominated the early decades of computerusage and development. 57. For More Information: Visit LoveisTouch.com Visit BMER.net Kyoung Jun Lee, Ph.D. Facebook.com/leekj007 leekj007@gmail.com +82-10-3775-1952