Mobile first, key findings from South Korea

Based on research performed on the South Korean market McKinsey & Company present the follow findings:

1. REACH: TAP INTO THE UNIQUENESS OF MOBILE-FIRST CONSUMERS

Mobile-channel buyers have distinct demographics. In South Korea, women account for 60 percent of transactions. Additionally, most are in their 30s and are likely to have preschool-age kids. They are also, somewhat surprisingly, likely to be full-time housewives. There has been an assumption that m-commerce is dominated by busy working moms; in fact, working moms spend much more time in front of a PC, mostly at their jobs, while housewives or moms with young kids are more likely to use their smartphones to shop. Companies have noticed: social-commerce player Coupang has aggressively targeted mobile-savvy young moms by offering baby gear such as diapers at low prices.

Yet mobile shoppers, regardless of their age, gender, or life circumstances, seem united in turning away from stores and online retailing. Our research found that among those who shopped on a mobile device, 13 percent did not shop in stores, and 53 percent did not shop online. Increasingly, these consumers can only be reached through their smartphones: We found that offline and in-store marketing motivates only 7 percent and 2 percent of mobile purchases, respectively. Yet mobile ads or promotions influence three out of four mobile purchases.

2. CURATE: TRIGGER IMPULSE PURCHASES THROUGH WELL-CRAFTED OFFERS

Since it’s harder to compare products and study details on a phone’s small screen, mobile shoppers deliberate less when making purchasing decisions. Our research shows that more than half of mobile consumer decision journeys—from considering products to purchasing—last just a single day, compared with only 36 percent online. In addition, mobile shoppers visit on average fewer than two sites before making a purchase, versus 2.75 for online shoppers. In essence, m-commerce consumers are driven much more by impulse than by product features or prices: some 17 percent of mobile transactions in South Korea are made without prior research, compared with just 6 percent of online transactions.

For retailers, this has enormous implications. While it has been critical for online retailers to keep a long tail of products in order to capture whatever consumers are searching for, mobile shoppers want quick satisfaction. Their purchasing decisions are often governed by impulsive or emotional factors (which encompass product categories including apparel, fashion accessories, and shoes) or habit (such as buying groceries and kid/baby items). For its mobile dedicated shopping platform, for example, online market 11th Street has reduced its total number of SKUs to only 7,000 and emphasizes “deals of the day.”

3. ENTERTAIN: MAKE SHOPPING FUN AND EASY, NOT JUST CHEAP

In contrast to the bargain-hunting mentality that pervades online, mobile shoppers place the greatest value on intuitively easy navigation and convenient shopping experiences. In our research, more than 60 percent of South Korea’s mobile shoppers cited convenience as their top priority, compared with 44 percent of online shoppers. To connect with mobile buyers, many successful retailers are providing less information on their mobile sites. Quick delivery of products is also essential for many regular mobile shoppers, particularly those who buy groceries and other staples. To satisfy this consumer demand and expedite the delivery of products purchased on mobile, GS Shop opened a mobile-dedicated warehouse, for example, and many mobile-commerce players now offer next-day delivery for grocery and kid/baby items. GS Shop has opened a mobile-specific call center so shoppers can get specialized assistance with a single click, and players are also adopting new payment solutions such as KakaoPay, a social-media-based payment system.

4. LOCK IN: CAPTURE THE LOYALTY OF MOBILE SHOPPERS EARLY

Consumers are known to buy online from a smaller number of retailers than they use when they shop in brick-and-mortar stores. Similarly, mobile consumers are more likely to go directly to a retailer’s site or app than to use a search engine, meaning there is a significant opportunity for retailers to lock in customers. As a result, South Korea’s m-commerce players use multiple tactics to drive repeat visits, offering mileage points or coupons to those who interact at least once each day with their mobile site or application.

Connecting the mobile-shopping experience to physical stores also goes a long way toward building a true omnichannel experience and locking in customers. The mobile application for retailer Lotte, for example, offers an “in-store mode,” where shoppers get real-time mobile notification of promotions and coupons when they step into one of its department stores and pass a specific brand’s area. Hypermarket Emart has a virtual-store application that shows products displayed in the same layout as in its physical stores to provide an easy, consistent shopping experience.

Please find the full article @ http://www.mckinsey.com/insights/consumer_and_retail/Learning_from_South_Koreas_mobile-retailing_boom?cid=other-eml-alt-mip-mck-oth-1504

Mobile first, key findings from South Korea

We work with top executive talent (Fortune 500)

We work with top IT executive talent (Fortune 500) where we address service automation (both on the business and the IT side), ensure that networks, applications and devices (M2M) cloud included are secure and up and running and the IT cost is transparent and (Big) data analyzed and actionable:
1) IT cost and forecasting: I work with one of the references on IT FInancial Management that could help you capture and package this date in to neat cubes that you can run in and BI tool SAP, Apptio etc. This is also valid for ongoing cost.2) Business and IT services: We work with a number of fortune 100 where I leverage the ability of one of the service providers that I work with to set any services up where they provide full libraries to AWS, Azure to make the setup of cloud services painless and provide the front end to make to user experience equally painless and set up service within days.

They recently set up the full business and IT service catalogue for Walmart but also work on a pay as you go (pay only for the services you use) and tie in to any applications needed to to set up the work flow and this would include SAP, Oracle Financials.

3) Digital & Big Data: If Digital is on the priority list we are among the few to capture data from any device (sensor) pull this data out via a mobile device (our app) and any network, keep the connection up and running and secure and analyze the (big) data for an actionable outcome mission critical capabilities notably for industrial application but also digital healthcare.

We provide a broad Big Data platform versus an industry specific product for a specific problem/niche/ industry to quickly get value from the large volumes of data generated from ever growing network of connected sensors or other sources.

The ability to address network, device and big data confers a unique ability to address digital & Big Data, M2M and IoT effectively.

 We address some of the most stringent mission critical applications for organizations such as Verizon, AT&T, Bloomberg’s TV and Platforms,the US army, FAA to ensure that their business critical capabilities: network, applications and devices are up and running and secure.

Army/Marines: manage ever changing network of nodes that are on the move and enter & leave the network daily.

FAA: Ensure critical radar data is never lost over legacy, high latency networks, with automated re-rerouting of networks.

DirecTV: Streamline customer service centers while capturing data on how customers are using the technology for future improvements.

Verizon: Automated on-demand video uplink service, with service quality monitory and usage measurement for billing.

The above problem sets have only one thing in common: a variety of critical data sources that need to be managed and automated.

Do let me know would you have 15 – 30 minutes to address the subject.Cheers Martin

 

We work with top executive talent (Fortune 500)

Startup creates the first 3D-printed, battery-powered rocket engine

Atmel | Bits & Pieces


Rocket Lab adopts a new electric propulsion cycle and produces the first oxygen/hydrocarbon engine to use 3D printing for all primary components.


Typically, the cost associated with launching a lightweight rocket into orbit can easily run upwards of $100 million. In an effort to curb the astronomical expense of space travel, Los Angeles-based startup Rocket Lab is redefining the way rocket engines are manufactured and how they function.

rutherford-engine

The Lockheed Martin-backed company recently unveiled its latest creation, dubbed Rutherford, which is said to be the first-ever battery-powered rocket engine. The design, which is comprised almost entirely out of 3D-printed parts and powered by batteries rather than liquid fuel, will be used on Rocket Lab’s Electron orbital launch vehicle later this year.

Powered by the brand new Rutherford motor, Electron will be able to deliver small satellites to commercial orbits at a much lower price and a greater frequency. The flagship engine adopts a new electric propulsion cycle that employs electric motors to drive its turbopumps, and is the first…

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Startup creates the first 3D-printed, battery-powered rocket engine

How to Build a CIO Office

Deliver Business Value with IT

The CIO Office is the command center that needs to be designed to support the needs of the business. “How to Build a CIO Office that you can find only @ flevy https://flevy.com/browse/business-document/how-to-build-a-cio-office-288 spells out the logics for a “right” positioning.

The material support the logics spelled out in “Deliver Business Value with IT” that you can find on Amazon @ http://www.amazon.com/dp/B00FOQ6T46

The “Deliver Business Value with IT” series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective.”
Executive Summary:

The CIO and the IT Department need to position as premium provider of IT services…

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How to Build a CIO Office

How do you communicate with your users, business stakeholders and customers?

Deliver Business Value with IT

“Not everybody today is Digital savvy like an enterprise architect, business process owner or system analyst but all of us are using and are impacted by IT. If “Digital literacy” (e.g. limited to a sub-group) and “Digital relevance” (e.g. vast majority of people) doesn’t match one has to bridge. Business capability mapping is a critical element but what about others bridges that we need? Bridges of different kinds that ignite the desire to co-create the future with our users our business stakeholders and our customers? The future of our

– digital enabled business models
– digital enhanced products and services and
– digital enlightened working environment in the enterprise”

This is a follow up feedforward to Werner Boeings excellent article @ https://www.linkedin.com/pulse/article/20140923155442-20779755-technollywood-the-art-of-building-desire-to-co-create-our-digital-future?trk=prof-post

I tend to use a customer journey / day in a life of to visualize how the client work and how this can be improved we can then…

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How do you communicate with your users, business stakeholders and customers?

The CIO and the IT Department need to position as premium provider of IT and digital services and focus on value to cost.

Digital of course but your focus needs to be on the needs of the business

Deliver Business Value with IT

In order to drive The Digital Transformation and Lead the Change and to avoid the “do we really need a CIO and IT department to bother us with technology when we can use the cloud?” the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT architecture perspective). Where the IT Strategy support Strategy execution, “Time to Market”, Cost Effectiveness and stakeholder expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.

To deliver business value with IT we need to Focus on the Business Bottom LineHow fast can we get our products and services to market “Time to Market  & how can the IT department support the business from a Cycle Time and Cost Effectiveness perspective.

The IT Bottom line is that up to 40 % of current IT spend occurs outside the IT…

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The CIO and the IT Department need to position as premium provider of IT and digital services and focus on value to cost.

Do you want to stay on top of your IT and Digital and Mobile strategy and deliver to the needs of the business?

Where is the beef? As a part of my thought leadership effort I would like to invite you to discover a slide set on how to stay on top of your IT and Digital and Mobile strategy and deliver to the needs of the business:

Step 1: We keep applications and the network up an running, that is we ensure service delivery
  (Network Management, Service Management, Provisioning to support business needs and big data analysis), we Consolidate the Technical Service Catalogue.
In business terms this translates in to the ability to in 10 minutes time-to-set-up (Discover, Model, Manage: Availability, Performance, Security, )  visualize services, network and security performance in real time with actionable reporting. It also means that we address bottlenecks as they appear rather that when users complain.
Performance dashboards are available in real time with the possibility to drill down and we are able to in a couple of minutes pull together the critical services, network and security  report.
Step 2: We ensure that business services are delivered end-to-end  (We pull the ERP landscape together and stay on top of the IT and Digital and Mobile strategy and deliver to the needs of the business as platforms, dashboards, internal and external self service storefronts, AIMs are available in a browser or an app format as needed), that is we Consolidate the Business Service Catalogue.
Step 3: We build an effective IT Delivery Model to meet Business Needs (build an effective relationship with your stakeholders as you understand their expectations and build a clear IT Business Model and Value Proposition).
What is in it for me? Bottom line: we consolidate the “IT Business Model” (security, architecture, delivery capability, IT Strategy delivery articulated in services) bottom up with a tool set that gives you the opportunity to deliver IT services end-to-end where mission critical network services are kept up an running and IT and network, service provisioning and service orchestration performance “Big Data” (an overview) is available in a dash board at the tip of your fingers and permit you to pilot and follow up on, delivery and consumption of services in real time.
We do this with end-to-end delivery through scalable and secure network management (Discovery, Planning, Configuration, Reporting), service management, self service provisioning, service orchestration, internal and client facing self service store fronts (IAM) that support handheld and BYOD that helps you get the job done regardless of where data and applications “sit” to fully leverage internal / external cloud efforts  that you should find of interest (product oriented). @ https://app.box.com/s/jwk6hb78dz2ndw4n6dmr
Have they done this before? The (anonymous) editor that I have used for this example focus on to “reduce the complexity of managing revenue-generating and mission-critical networks while creating business opportunities through the rapid deployment of new services” and already works with the US Army, US Marines, and US Federal Aviation Administration, Verizon and AT & T, Direct TV, Starz.
Do let me know would you find the logics to be of interest or would you have the time to strike up a conversation on your priorities
Kind Martin
Martin Palmgren, EVP .COMMUNICATE – Deliver Business Value with IT  CONTACT:martin.palmgren@communicatethecompany.com (mail) / + 33 (0)6 30 35 11 96 (mobile) / martin.palmgren.communicate (skype) / https://twitter.com/martin_palmgren (Twitter) /fr.linkedin.com/in/martinpalmgren ( Linkedin ) / Deliver Business Value with IT (the blog) @ http://deliverbusinessvaluewithit.com/ Deliver Business Value with IT (the book) @ Smashwords https://www.smashwords.com/books/view/290604 @ Amazon http://www.amazon.com/dp/B00FOQ6T46 (Actionable Story Boards) @ Flevy https://flevy.com/seller/mpalmgre/ref=mpalmgre

 

Do you want to stay on top of your IT and Digital and Mobile strategy and deliver to the needs of the business?