indonesia 2.0 – mobile & internet adoption in indonesia
DESCRIPTION
Adoption cycle for a sustainable innovation in mobile and Internet business ecosystem in IndonesiaTRANSCRIPT
Indonesia 2.0The Adoption of Mobile & Internet
Andi S. BoedimanStrategic Innovation [email protected]
Ritual Creation
Mass Adoption
Habit Forming
Behaviour Change
Behaviour Introduction
InnovativeSolution
Innovation Adoption Lifecycle
morning ritual82% brush teeth74% take shower/bath74% have something to eat54% talk to family members53% males shave47% females put on makeup
Source: BBDO worldwide study
Ritual Creation for Consumer Market
The long way creation of ritual will commoditize innovation to become consumer market.
Mobile & Internet AdoptionMobile and Internet will become a ubiquitous infrastructure for communication, content distribution, community and commerce
voice & sms becomes commodity, drives pulsa become kind of “money”
the potential of value added services
online shopping
video streaming
online gaming
music downloading
social networking
chatting
emailing
browsing
D = 82%Rp 500 - 700 rb
C = 65%Rp 700 rb - 1.5 jt
A = 86%> Rp 2 jt
advertising model
subscription model
Mobile & Internet Adoption in Indonesia
innovator early adopter
early majority late majority laggards50 % 20 %20 %8 %2 %
mobile adoption
internet adoption
content distribution
commerce communication
payment platform
E = 86%< Rp 500 rb
B = 82%Rp 1.5 - 2 jt
mobile adoption
Warnet OfficeHome MobileSchool Hotspot
online shopping 7%
video streaming16%
online gaming17%
music downloading45%
social networking50%
chatting65%
emailing82%
communication
content
community
commerce
Internet Usage
Source: Synovate
browsing86%
key usage
Kaskus
Detik
Kompas Kapanlagi
information
Friendster Facebook
community
Ticket
Retail Bookgoods &
merchandising
Advertising as Business Model
Games
ClassifiedImages, Music
digital content
Ecommerce as Business Modelepayment
platform
US $10 million
Mobile Internet Adoption Case StudyLearning from iMode, a mobile internet ecosystem
• Low PC penetration in Japan• High charges for PSTN dial-up access in Japan
Internet Problem in Japan
Solution• Young women doesn’t really care about technology,
they care about connection and content.
• Connecting to Internet should as easy as making a call.
• Launched by DoCoMo in 1999• Within 3 years, it had over 35 M
subscribers and 40,000 iMode Web sites• Low fees: 300 Yen/month plus 2.4 Yen/
KB downloaded• It is an application environment for
subscribers for application providers-> On Device Portal
• Open its billing system • DoCoMo use a subset of HTML (cHTML)• Manufactured a new breed of application
friendly handsets.
iMode Facts
When you focus on the number of Internet users for private use, it is far from ’critical mass’ for major IP in Japan. However, if you count on all cellular phone users of DoCoMo, IP can easily reach economies of scale for its own service.
Cellular Phone User 47 million
Internet Useraround 17 millionPersonal PC User
3 - 4 million
Internet
Information Provider
Information Provider
DoCoMo User27 million
ISPPrivate LAN
DoCoMoGateway Server
iMode Adoption
iMode Adoption Strategy
Portal Link
Web access
Intranet
Intranet Packages
Java
IMT‐2000
Feb 1999 Fall1999 Fall 2000 Spring 2001
i-modelaunch
Success of iMode lead to smooth introduction of IMT-2000 which enable high speed access from mobile devices (64k-384k bps). They enhance iMode platform by introducing Intranet package solutions in 1999, then Java technology in 2000.
Homepage
Groupware・Schedule Management ・Work flow Management
・Electronic Bulletin Board System・Electronic Conference
・File Sharing
・Video
・Game
・Music
・Agent function ・Mobile TV
・Interactive TV
・TV Telephone
・TV Conference
・Security function
Rich (Visual, High Speed)
Colored LCD
iMode & Content ApplicationContent/Application Case Study
Movie Navigator, Mobile Banking, Character Download
MENU1.Movie Guide2.Ranking3.Latest News
Latest Films1. Deep Impact2. Saving Ryan3. SHITSURAKUEN4. Kiseki no Umi5. Romeo & Juliet6. 0077. Mr. Bean
Choose 1 Choose 1 Choose 5
Romeo & Juliet1. Profile2. Story3. Special Features4. Theaters
Choose 1(charged)
2 Theaters Found in Your Area 1. Nihon Theater2. Cine-Chante
Choose 4NOW SHOWING(9/26~10/12)
YurakuchoNihon TheaterMarion Bldg. 11F11:00/1:40/4:20
7:00/9:10Adult 1,800YenStudent 1,500YenRsvd. 3,000YenChild. 1,000Yen1. PHONE TO!2. Return
PROFILEUSA/1996Director, Hes Laman/Film, Donald M. Mclevin/Actor, Leonard de Caprio
1.Return
Choose 1
STORYRemake of the Shakespeare`s work with modernspice.
1.Return
Choose 2
Call to the theater and
make a reservation
Choose 1 Choose 1
Content Example/Movie Navigator
Movie NavigatorWelcome to the Latest Road ShowInformation1. ENTER
DETAIL INFO.Guidance to this MovieInfo Charge $0.10 per view1. OK2. Return
<Account Selection>◎ Tokyo Brunch
Savings ***1234○ Yokohama Br. Checking ****234Check BalanceToday’s TransactionPast Transaction
<Sumitomo Bank>1.Mobile Banking2.Telephone Banking Center3.ATM Maps4.Service Info5.Sample6.Application Form Request7.Customer Support
Content Example Mobile Banking; Sumitomo Bank
<Service Menu>Balance CheckMoney TransferChange PINQuit
MY MENU1. Weathernews2. ZAGAT Tokyo3. Nikkei News4. Sumitomo Bank
Mobile Banking1.Start2.Quit3.Help Desk(Tokyo)4.Help Desk(Osaka)5.My Menu
<Input ACCT# and First PIN>ACCT# *******1st PIN ******SubmitCancel
0354738111
Calling
<Balance>11/3 10:30#Account Balance Y123,456Back to MenuQuit
<Account Selection>◎ Tokyo Brunch
Savings ***1234○ Yokohama Br. Checking ****234Money TransferAcct TransferBack to Menu
<Registered Acct>○ Sumitomo Bank Osaka Brunch Savings ***4321 Paul Smith◎ CITIBANK
Tennoz Brunch Savings ****135Takeshi NatsunoTransfer Amount 1000000TransferBack to Menu
<Confirmation>FROM; Sumitomo Bank Tokyo Brunch Savings ***4321TO; CITIBANK Tennoz Brunch Savings ****135Takeshi NatsunoAmount Y100,000 Fee Y315→Input 2nd PIN ******ConfirmCancel
<Order Completed>Executed 11/3Order # 1103-001 Back to MenuQuit
Balance Check
Money Transfer
Below
Case Study; Bandai Corporation
Chara-Pa! ServiceCharacter Delivery Web by Bandai Corporation
Simple GIF downloading can generate money !
• You can download GIF everyday by enrolling membership for 100 Yen/month.
• Acquired more than 450,000 subscribers at mid November.
Mobile & Internet Advertising AdoptionMobile and Internet advertising growth potential and understanding the consumer goods as the biggest potential for advertising
Mobile marketing in Global Perspective
Mobile Advertising market will grow from US$900M to US$1.1B by 2011
Source: Mobile - Jupiter Research 2005 and PC Internet - eMarketer, 2007
Cars800 million
Phones1.3 billion
Television1.5 billion
Credit Card1.4 billion
PC850 million
Internet1.1 billion
Mobile Phones
3.3 billion
(nov 2007)
Indonesia mobile advertising metrics
adMob serves ads for more than 6000 web sites and applications around the world. It stores and analyzes the data from every ad request, impression, and click and uses this to optimize ad matching in the network. This report is a snapshot of the data to provide insight into trends in the mobile ecosystem.
Source: Admob.com
Indonesia mobile advertising growth
Source: Admob.com
Mobile Web Drawing Diverse Advertisers
Most advertiser is still IT and lifestyle related, consumer goods not yet adopt mobile as advertising medium
eyeball loyal customers
purchaseconsideration favorabilityawareness loyalty
advertising to mass market
information/user review
consumer lead
purchase intent
marketing funnel
customer
eCommerce AdoptioneCommerce adoption shows variety degree of success depend on consumer ease of use and trust
Global eCommerce
• Total credit card from 20 banks: 9 million• The Big 4: Citibank, BCA, BNI and Mandiri.• Potential market growth: 20-30% per year.
Credit Card Adoption
• How many credit card do you have? Why?• Is credit card replacing money? Why?
A few question
The success of credit card is because it offers a credit/financing/discount solution, not only payment solution.
Yehey’s PayPlus+ has been servicing local merchants for about 3 years already but up to now, but there seems to be too little penetration amongst local merchants.Poor awareness in the general population and lack of infrastructure to support mobile commerce may hamper adoption of his innovative business models.In a survey conducted, there is still poor awareness in terms of people's attitude towards m-commerce. A lot didn't understand it despite the advertisements on television and in billboards.On the aspect of infrastructure, it is still difficult to "cash-in and cash-out" using micropayment.
Both SKT and KTF have mobile wallet offerings (SKT offers MONETA and KTF offers K-Merce). These services came out around December 2004. Neither of these services has taken off. There appears to be little or no marketing, and the press is silent on these services. You can still see an occasional dongle in a store, but you rarely if ever see anyone use them.
mCommerce Case Study
Todito.com the low- and middle-income Mexican market through ePAID. It provides a cash-based payment platform that supports e-commerce and remittance services. ePAID facilitates low-cost money transfers between workers in the United States and family in Mexico. By allowing people to ship goods to friends and family in Mexico, ePAID eliminates the need for hard cash transfers. For those who do wish to transfer cash, there are small, affordable fees. For their ePAID venture, eCatalystOne partnered with Mexican banks to ensure that their customers can withdraw cash funds from their ePAID accounts at ATMs.
Because ePAID is not credit-based, there is no risk involved for the company or the consumer. Opening an ePAID account does not require the divulgence of any financial information and. More importantly, consumers without access to credit can open accounts using cash.
ePaid Case Study
desirable hardware
ease of use content
common payment
internet/mobile
Apple Model
1
2 3
Online Purchase
Adoption is still low due to payment solution
innovator early adopter
early majority late majority laggards50 % 20 %20 %8 %2 %
Transition to eCommerce Adoption
Mobile Adoption
Mobile Internet Adoption
ePayment Adoption
eCommerce Adoption
Key Takeaway
Understand and apply the adoption cycle for creating a sustainable innovation in mobile and Internet ecosystem
Thank You
Andi S. BoedimanStrategic Innovation [email protected]