Gearing up for e-commerce across multiple providers

THE e-commerce of the future will involve multi-faceted interactions between a customer's gadgets and multiple product and service providers, not just a single company.

Making this prediction, Mr Reinhard Clemens, chief executive of German software firm T-Systems, said it is already working on several fronts to reap the benefits of this trend.

T-Systems is the software arm of German telco, Deutsche Telekom. It provides services such as cloud computing and managed services to government agencies and the private sector.

It is partnering car company BMW to create an e-commerce system where companies can make combined offers to customers, Mr Clemens said.

He cited an example of how an Internet-enabled car which can stream music online, among other functions, will enhance the experience of a customer who is a classical music fan.

"A classical piece is played by concert pianist Lang Lang. On the car screen display, a forthcoming concert from this pianist pops up. You click a button, the concert details are sent to your mobile phone.

"After you park the car, you buy the tickets on your phone. You want a parking slot, you tick off and pay for it. At a later date when the event happens, the car's computer system remembers the concert venue and directs you there. As you walk to your seat, you get a ping on your phone and you've just received a special offer for a Lang Lang CD."

Providing this seamless convenience are different stakeholders like the carmaker, event organiser and music retailer, all of whom stand to reap revenue from the different services provided for the customer.

Telcos are well-placed to benefit from this trend because they have put in place mobile and Internet service networks. But they need to build it and this is where T-Systems will be of help to Deutsche Telekom.

"We become the neutral party. We also know how to bill since we're part of Deutsche Telekom, so we can collect revenue on behalf of our partners," said Mr Clemens, who is also a board member of the German telco.

T-Systems will work with the telco to play the role of e-commerce facilitator.

Such an e-commerce platform will also be useful for what he described as "zero distance" or on-the-spot services.

T-Systems has already successfully piloted such a service with an insurer to provide skiing insurance in Germany.

Holidaymakers who plan to go skiing at short notice and who need insurance can do so at a ski resort and receive instant coverage notification over mobile phones.

One key advantage for product and service providers is that price is not a major barrier for them as customers are willing to pay for the convenience and immediacy, Mr Clemens said.

"Get the customer at the right time and right point, make it easy to contract and you'll get the business."

Ultimately, the end goal is to enhance productivity and cost savings across businesses.

For instance, T-Systems has a contract with lift manufacturer Kone Corporation to provide preventive maintenance services.

Data collected from sensors installed by T-Systems in Kone's lifts will let the software house predict when lifts need maintenance. Lift components can be requisitioned and technicians can provide maintenance service in a timely manner.

"This enhances productivity and there are savings too from ordering components just when you need it," Mr Clemens said.

chngkeg@sph.com.sg

Get a copy of The Straits Times or go to straitstimes.com for more stories.