Smartphone: Emerging Wallet

If you haven’t heard about Near Field Communication (NFC), you must know that you are one step behind the market. This wireless communication technology is not something new; however, it has been gathering the attention of many companies in recent years. By enabling the connection of electronic devices within a close range, NFC is taking the way business transactions are done to a new level.

The idea is pretty simple, and for a great number of people, it is also very convenient. Basically, smartphones can be used for payment purposes. The contactless payment is expected to transform payment options for areas such as transportation, health care, and retailers. Its applications also include bank deposits through smartphones and location alerts to friends in social networks. The concept sounds pretty amazing; however, it has raise controversy worldwide. While in China more and more phones are being launched with built in NFC technology, in France the majority doesn’t support the idea. Apparently, French are not interested in electronic payment services. Security issues, in addition to cost and complexity, are the main drivers of the resistance. American companies are adopting the new payment system.

In my opinion, in the short-term traditional payment methods will dominate. In times where recession still hitting the consumer, people will remain more skeptical to use their phones for payments due to fear and uncertainty. In the other hand, the change is coming, companies most prepare for it because sooner or later the consumer will adapt. Once people become familiar with the concept, they will be swiping smartphones instead of credit cards.

http://mashable.com/2010/05/06/near-field-communication/

http://www.nearfieldcommunicationsworld.com/2011/01/20/35692/most-french-consumers-not-in-favour-of-mobile-payments/

http://www.articlesnatch.com/Article/Operators-Compete-For-Mobile-Payment-Applications-To-Expand-The-Service---Carriers--Mobile-Payment--/1882272

Saying NO to Piracy by Adding New Values!!!

It is difficult to establish what the world’s vision, position and exact time is when it comes to piracy. It is even harder to predict the piracy’s socieconomic impact that will stil be as technology continues its rapid development.  Technology’s accelerated pace has been facilitating the creation of means for the distribution of piracy and the violation of intellectual property.

It is a fact that many countries such as England, France and the United States have taken initiatives to combat piracy. Those iniciatives have been recognized and defended by a part of public opinion, as well as by the companies mostly affected by this activity. However, it is clear that those measures have not achieved the expected scope neither the socioeconomic effect. The established fines and threats with permanent disconnection internet service for offenders have not diminished the  levels of piracy or information exchange but rather increased. Apparently this has ocurred by the constant technological evolution, which has lead to an ineffective proposed system to monitor and verify that activity.

Furthermore, it is very difficult for the legislation to keep pace with technological advances, but we must be aware that a legislation is a necessary mean for the progressive regulation of the activity and the existence of a legal framework to protect intellectual property.

Particularly,  I believe in the idea of creating new business models that make unnecessary the use of piracy and educate consumers on the value of intellectual property rights as a posible solution to reduce piracy.  This will contribute to changes in behavior. It is important to note that these changes are not reflected immediately, but the results will be long term since a cultural change is required. 

http://news.cnet.com/has-online-piracy-reached-a-tipping-point/

Someone is Watching You!

Let me start saying that spying on you is the new way of making money.  

Accessing to markets information is the most powerful tool a marketer can have, and BlueCava offers the technology to grant a VIP access to it.

BlueCava has been recognized for its “patented way of identifying the unique fingerprint of any Internet connected electronic device.” In simple words, no mater what electronic device you are using to go online, whether is a cellphone, a game consoled, or a computer, your information is been legally tracked and recorded through its platform technology without you even notice.

The technology has been around for the past decade; however, its marketing application is a recent concept.  Its effectiveness relies on the ability to covert data into valuable, reliable, and real time information that consistently provide target markets relationships. 

The technology is based on what they have called the “3 big” platforms:

The Device Identification Platform is capable of recognizing personally identifiable information. This information is then used to analyze behavior of related devices.

The Device Reputation Platform goes one step further and allows them to analyze your device’s past behavior and then decide whether is convenience or not to establish device communication for business purposes.

 Finally, Reputation Exchange Platform offers clients a quick exchange of devices behavior in more than 100 categories.

 

As you can see, you are no longer a mystery.  Your information is easily gathered and exchanged in ways you might not even imagine.  From your device information, passing through to your browsing behavior, all the way to your personal information can be known depending on how explicit you are when you are online; even your geographical location can be determined.

For the peace of your mind, someone is doing something about it. Whether it is effective or not, that’s a completely different thing.

The Federal Trade Commission and the Commerce Department have been working on a proposal for legislation on online privacy. So far, the proposal is grounded on the idea of bringing choice control to the consumer. Opt-out mechanisms are already being implemented, and guess what, they have not been effective. The report doesn’t offer explanations on how are the proposed opt-out any better than the previous ones.

The concern on online privacy has already been raised, but the solutions are full of ambiguities and they also are unfeasible when it comes to a real world implementation.

In my opinion, online privacy still is far away from us.

So smile,

Say Bye to your privacy, and

Say Hi to the screen! Still there is someone watching you in the other side. 

http://online.wsj.com/article/SB10001424052748704679204575646704100959546.html?mod=what_they_know

http://www.bluecava.com

http://www.ftc.gov/opa/2010/12/privacyreport.shtm

Groupon: Deal or No Deal

Today, I have good news for you; it is called Groupon. This new business concept is revolutionizing the e-commerce marketplace. Groupon is making a lot of money by transforming the concept of benefiting from large scale sales into the new idea of collective buying power, isn’t that just genius?  Whether you are a consumer, a merchant, or you are just looking around for a new advertising option, Groupon offers a great deal for you.

For the consumer, there is a daily deal to look up for. More than a coupon service, Groupon acts like a city guide negotiating discounts for a variety of products and services within well rated local businesses. Groupon not just offers you deals of your favorite activities, but it also gives you the opportunity to try new places and products.

If you are wondering how it works, well, it is really simple. First, consumers subscribe to Groupon to receive the deals. Groupon features a deal every day; the deal is available just for 24 hours. Then, consumers who are interested in the deal buy it. The key is how you get your deal. Groupon’s business is based on the idea of sharing and broadcasting the deals. Therefore, if a certain number of people buy the same deal you bought, you get your deal, otherwise no deal. Either way, it is risk free. If the deal is not settled, anything is lost, but if you get the deal, you just have saved you some money for something you want, so redeem it and enjoy it.  

From the merchant perspective, Groupon’s value relied on its ability to deliver customers and brand exposure for their businesses. The idea is that when redeeming the coupon, customer end up spending more than just the coupon. Moreover, if a great experience is provided, customer will be likely to return and comment about it in social networks. What does it cost to businesses? There is not money upfront required, but businesses must commit to provide at least a 50% discount in the deal in order to be featured in Groupon. If there is no deal, Groupon is free for the business, no discount will be given and Groupon will still advertising it in its business newsletter.

For those of you who look a Groupon as an advertising platform, the deal is also on. Groupon is claiming to “keep consumers engaged in a way traditional marketing can’t match”. Groupon studies conclude that businesses were able to gain a big amount of customers and to increase their cash flows within days and without paying upfront. However, Groupon is not for every business. Business have to consider their ability to handle large number of costumers and most important their ability to afford a 50% cut in their products or services.

  

 For me is definitely a deal…. What about you?

Resources:

http://thenextweb.com/location/2010/03/24/groupon-ceo-andrew-mason-talks-growth-clones-groupon-coupon-site/

http://www.associatedcontent.com/article/3018344/groupon_business_model.html?cat=3

http://tomuse.com/groupon-daily-deal-site-local-advertising-platform-businesses/