Critical Success Factor of Noble Payment System

Park, A., & Lee, K. J. (2014). Critical Success Factor of Noble Payment System. 지능정보연구, 20(4), 59-87. (link)


In MIS field, the researches on payment services are focused on adoption factors of payment service using behavior theories such as TRA(Theory of Reasoned Action), TAM(Technology Acceptance Model), and TPB (Theory of Planned Behavior). The previous researches presented various adoption factors according to types of payment service, nations, culture and so on even though adoption factors of identical payment service were presented differently by researchers. The payment service industry relatively has strong path dependency to the existing payment methods so that the research results on the identical payment service are different due to payment culture of nation.
This paper aims to suggest a successful adoption factor of noble payment service regardless of nation’s culture and characteristics of payment and prove it. In previous researches, common adoption factors of payment service are convenience, ease of use, security, convenience, speed etc. But real cases prove the fact that adoption factors that the previous researches present are not always critical to success to penetrate a market. For example, PayByPhone, NFC based parking payment service, successfully has penetrated to early market and grown. In contrast, Google Wallet service failed to be adopted to users despite NFC based payment method which provides convenience, security, ease of use.
As shown in upper case, there remains an unexplained aspect. Therefore, the present research question emerged from the question: “What is the more essential and fundamental factor that should takes precedence over factors such as provides convenience, security, ease of use for successful penetration to market”.
With these cases, this paper analyzes four cases predicted on the following hypothesis and demonstrates it. “To successfully penetrate a market and sustainably grow, new payment service should find non-customer of the existing payment service and provide noble payment method so that they can use payment method”.
We give plausible explanations for the hypothesis using multiple case studies. Diners club, Danal, PayPal, Square were selected as a typical and successful cases in each category of payment service. The discussion on cases is primarily non-customer analysis that noble payment service targets on to find the most crucial factor in the early market, we does not attempt to consider factors for business growth. We clarified three-tier non-customer of the payment method that new payment service targets on and elaborated how new payment service satisfy them.
In case of credit card, this payment service target first tier of non-customer who can’t pay for because they don’t have any cash temporarily but they have regular income. So credit card provides an opportunity which they can do economic activities by delaying the date of payment.
In a result of wireless phone payment’s case study, this service targets on second of non-customer who can’t use online payment because they concern about security or have to take a complex process and learn how to use online payment method. Therefore, wireless phone payment provides very convenient payment method. Especially, it made group of young pay for a little money without a credit card.
Case study result of PayPal, online payment service, shows that it targets on second tier of non-customer who reject to use online payment service because of concern about sensitive information leaks such as passwords and credit card details. Accordingly, PayPal service allows users to pay online without a provision of sensitive information.
Final Square case result, Mobile POS –based payment service, also shows that it targets on second tier of non-customer who can’t individually transact offline because of cash’s shortness. Hence, Square provides dongle which function as POS by putting dongle in earphone terminal.
As a result, four cases made non-customer their customer so that they could penetrate early market and had been extended their market share.
Consequently, all cases supported the hypothesis and it is highly probable according to ‘analytic generation’ that case study methodology suggests.
We present for judging the quality of research designs the following. Construct validity, internal validity, external validity, reliability are common to all social science methods, these have been summarized in numerous textbooks(Yin, 2014). In case study methodology, these also have served as a framework for assessing a large group of case studies (Gibbert, Ruigrok & Wicki, 2008). Construct validity is to identify correct operational measures for the concepts being studied. To satisfy construct validity, we use multiple sources of evidence such as the academic journals, magazine and articles etc.
Internal validity is to seek to establish a causal relationship, whereby certain conditions are believed to lead to other conditions, as distinguished from spurious relationships. To satisfy internal validity, we do explanation building through four cases analysis. External validity is to define the domain to which a study’s findings can be generalized. To satisfy this, replication logic in multiple case studies is used.
Reliability is to demonstrate that the operations of a study –such as the data collection procedures- can be repeated, with the same results. To satisfy this, we use case study protocol.
In Korea, the competition among stakeholders over mobile payment industry is intensifying. Not only main three Telecom Companies but also Smartphone companies and service provider like KakaoTalk announced that they would enter into mobile payment industry. Mobile payment industry is getting competitive. But it doesn’t still have momentum effect notwithstanding positive presumptions that will grow very fast.
Mobile payment services are categorized into various technology based payment service such as IC mobile card and Application payment service of cloud based, NFC, sound wave, BLE(Bluetooth Low Energy), Biometric recognition technology etc. Especially, mobile payment service is discontinuous innovations that users should change their behavior and noble infrastructure should be installed.
These require users to learn how to use it and cause infra- installation cost to shopkeepers. Additionally, payment industry has the strong path dependency. In spite of these obstacles, mobile payment service which should provide dramatically improved value as a products and service of discontinuous innovations is focusing on convenience andsecurity, convenience and so on.
We suggest the following to success mobile payment service. First, non-customers of the existing payment service need to be identified. Second, needs of them should be taken. Then, noble payment service provides non-customer who can’t pay by the previous payment method to payment method.
In conclusion, mobile payment service can create new market


Impacts of Intelligent Agents to Internet Business: Business Model Approach

이경전, 진동수, “지능형 에이전트가 인터넷 사업에 미치는 영향: 사업 모형 관점에서의 분석”, 한국지능정보시스템학회 논문지, 6(2):49-62, 2000 (12월). (PDF) in Korean


본 논문은 향후 인터넷 사용의 많은 두 부분이 현재의 인간 사용자에서 지능형 에이전트로 옮겨져 갈 때 현 인터넷 사업 모형에 영향(Impact)으로 작용할 수 있는 요소들을 분석하고, 이로 야기되는 새로운 사업 모형의 출현 및 현 사업 모형에 예상되는 변화에 대하여 살펴보고자 한다. 지능형 에이전트로 인하여 인터넷 사업에 있어서 예상 가능한 주요 변화를 사업 모형 관점에서 제품, 서비스, 정보 흐름(Flow)의 변화, 참여자의 역할(Role)의 변화, 수익원천(Revenue)의 변화, 참여자간의 혜택 (Benefit)의 변화, 비용분담(Cost Distribution)구조 변화라는 다섯 가지 측면에서 현재의 인터넷 사업에 있어서 배너광고 모델, 가격책정 모델, 중개자 모델, 브랜드 및 명성 효과, 디지털 카르텔 등의 주요 현상과 결부시켜 살펴본다. 이를 통하여 향후 지능형 에이전트 기반의 사업 모형에 대비한 전략적 시사점(Imp1ications)을 제공하고자 한다.

Platform Development toy Systematic Support of Design Collaboration between SMEs

박지숙, 박선화, 윤주현, 이경전, 중소기업간 디자인 협업의 체계적 지원을 위한 플랫폼의 개발, 한국전자거래학회지, 8(4):207-221, 2003(11월). (PDF) in Korean


Most commercially available collaboration support systems are not proper for small enterprises in a specific area such as small e-design companies, because they are focused on general functionalities, required by most large enterprises. In this paper, we analyze the requirements for improving communication environments of small e-design companies, and propose an advanced communication management tool which reflects those requirements. The communication platform focuses the acknowledgement process by customer and the schedule sharing and management between project members. The proposed system suggest a new research direction which supports the systematic collaboration with external entities such as customers rather than the unsystematic collaboration between internal members, and improves the communication environment of those small e-design companies that are desperately in need of a cost-effective way to carry out projects, and will help in the process of successful projects.

An Explorative Study for Business Models for Sustainability

Kyoung Jun Lee and Federico Casalegno, An Explorative Study for Business Models for Sustainability, In Proceedings of the 14th Pacific Asia Conference on Information Systems, July 9-12, Taipei, Taiwan, 2010. pdf 


Sustainability now becomes one of the key issues in innovating existing environments, where we live, and behaviours of people, how we live. There have been a lot of new attempts and initiatives for promoting the sustainability by government, industries, and communities. However, for the survival and successful adoption of the innovative efforts to real world, they need to be institutionalized or established as stable formal/informal institutions or business models. Especially, the efforts in private sectors, incumbents or entrepreneurs, should develop and find out, even through trial and errors, a viable business model for the sustainability. This paper reviews the various initiatives from the business model perspective, analyze the characteristics of the sustainability business models and suggest key dimensions to design new business models for sustainability.


 Business Model, Sustainability, Green Business, Green IT.

Customer Model Analysis for UCC Knowledge Sharing Service: A Case

윤은정, 이경전, UCC 지식 동영상 공유 서비스의 고객 모델 분석 사례, 지능정보연구, 제15(1):15-30, 2009. ISSN 1229-4152.pdf (in Korean)



As knowledge is now being distributed and shared through the Internet not only in the form of text but also in that of video, UCC((User Created Content) knowledge video sharing services have emerged on the Internet such as This paper deals with a UCC knowledge video service in real world and reports the case of analyzing its customer model. The knowledge video sharing service can be considered as both a kind of discontinuous innovation, which requires knowledge provider’s technical ability of creating and editing UCC video, and a value network, which matches UCC providers and consumers therefore brings network effect, we first adopt the Chasm theory as the base of the customer model and refine the customer model referencing the Technographics, which is also an Internet-refinement of the Chasm model. Finally, non-customer analysis of Blue Ocean strategy is applied for exploring potential customers of the service.


Key Word


UCC, Technology Adoption in Life Cycle, Chasm, Technographics, Customer Model, Business Model

UIF Map as a Systematic Methodology for Value Innovation

Kyoung Jun Lee, UIF Map as a Systematic Methodology for Value Innovation, Presented at Customer Strategies for Sustained Growth Conference, INSEAD @ Fontainbleu, France, 1-2 July 2010. pdf