Session 9 Notes
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Session 9 Notes Session 9 Notes Presentation Transcript

  • Session 9 Topics
    • Wireless Internet Technology and M-Business
    • International Ecommerce
  • Wireless Technology & Mobile Ecommerce
    • Wireless technology turns e-business into mobile ecommerce and, ultimately, m-business , or mobile e-business
    • M-commerce is defined as ‘the ability to purchase good anywhere through a wireless Internet-enabled device.  Primary mobile communication exists through web-enabled wireless phones. 
    • Current applications
      • Conduct online transactions
      • Make purchases
      • Trade stocks
      • Send e-mail
    • Future applications
      • A wireless office , where computers, phones and other office equipment are all networked without cables
  • Wireless Technology and Devices
    • Wireless development
      • First-generation wireless technology was the cellular phone
      • Second generation wireless technology, which includes digital cellular phones, is currently in use worldwide
      • Third generation, or 3G technology will enable wireless devices to send and receive data as much as seven times faster than a standard 56K modem
    • Wireless devices
      • Personal digital assistants (PDAs), Palm OS
      • Digital cellular phones (WAP Phones)
      • Two-way pagers (RIM)
      • MS Windows CE/Pocket PC
  • Wireless Internet Access
    • Code Division Multiple Access (CDMA)
      • Each transmission is assigned a specific channel, giving the transmission the benefit of the entire bandwidth within that channel and reducing the possibility that a connection will be broken
      • Able to assign each transmission on the network a unique code to ensure security
    • Global System for Mobile Communications ( GSM )
      • Uses Time Division Multiple Access (TDMA) which takes multiple calls and assigns each call to a different time slot on the same radio frequency, eg. Short message service (SMS)
  • Wireless Internet Access
    • 3G technologies : high speed Internet access, email, streaming audio and video
      • EDGE (AT&T, Nokia)
      • Cdma2000 (Sprint PCS)
      • W-CDMA (NTT DoCoMo)
    • International Telecommunications Union (ITU)
      • Establishes guidelines for 3G
  • Wireless Hype Cycle Source: Gartner
  • Wireless Web Technology
    • Three technologies are used to provide Web access to wireless devices
      • Wireless Application Protocol (WAP)
      • Palm OS --Web clipping
      • Microsoft’s Pocket Internet Explorer
  • PDA and Web Clipping
    • Web clipping
      • Allows users to take relevant pieces of a Web site and deliver it to a wireless device, eliminating excess content and graphics
    • Proxy server
      • Lies between client (such as a Web browser) and Web server
      • Query is received by a proxy server controlled by the wireless ISP
      • Proxy server goes to the Web site and “clips” the necessary data
        • The proxy server transmits the data back to your wireless device
        • If the proxy server does not have the information, it passes the request to the regular server
    • Query Application Builder ( QAB )
      • Web designers build (PQAs) to be installed on users’ Palm handheld computers
  • WAP
    • Wireless Application Protocol ( WAP )
      • Developed by Nokia, Ericsson, Motorola, etc.
      • A set of communication protocols designed to enable different kinds of wireless devices to communicate and access the Internet
      • Designed to standardize development across different wireless technologies worldwide
      • Intended primarily for Internet-enabled digital phones, pagers and other handheld devices
      • Uses Web sites specifically designed for wireless handheld devices that have small screens and low-bandwidth constraints
  • WML
    • Wireless Markup Language (WML)
      • The scripting language used to create Web content to be delivered to wireless handheld devices, based on XML
      • Removes “unnecessary” content from Web pages
      • WML tags are used to “mark up” a Web page to specify how the page should be formatted on a wireless device
      • WML works with the WAP to deliver the content
      • Similar to HTML, but it does not require input devices
    • Microbrowsers
      • Designed with limited bandwidth and limited memory requirements
      • Access the Web via the wireless Internet
  • WAP and WML
    • How wireless Internet works:
      • A WAP gateway, which acts as a proxy server, receives the request, translates it and sends it to the appropriate Internet server
      • Server responds by sending the requested WML document
      • The WAP gateway parses this document's WML (i.e., it analyzes the WML document, checking it for correctness) and sends the proper text to the digital phone
    • Deck
      • A WML document
    • Card
      • Consists of one user interaction, providing the WML browser with a small, self-contained document for browsing
  • Software Appliances for Wireless Devices
    • No widely accepted standard for wireless development
    • Developers are often required to develop multiple applications
    • Microsoft Pocket Internet Explorer
      • Reformats complete Web pages as they are downloaded from the Internet for display on the Pocket PC
      • Allows Pocket PC users to access most of the content currently available on the Web and eliminates the need to tailor Web content for delivery to handheld devices
  • Wireless Local Area Networks
    • Easier to install and maintain without disrupting an office or without having to install a new a new network connection in each location
    • Technologies
      • Radio Frequency WLANs (RF WLANs): Used to network devices at a distance
      • Laser technology
      • Infrared technology
      • Bluetooth
      • Wi-Fi 802.11x
  • Wireless Communications
    • Wireless communications can be unreliable and slow, wireless-device bandwidth is about one fifth of the capabilities of a standard dial-up connection
    • General packet radio services (GPRS)
      • Enables devices to transmit data at speeds of up to 114 kbps
    • Universal mobile telecommunications standard (UMTS)
      • Will offer transfer speeds of up to 2 Mbps for wireless devices
    • Smart phones
      • Mobile phones that send and receive both voice and data messages
      • Used to securely send and receive secure mobile transactions
  • The Carriers Rule!
    • Rollout of wireless Internet services depends on the carriers
      • They own the bandwidth licenses
      • Competing standards, esp. in the US
      • Investment in infrastructure
      • Global and nationwide coverage
      • Auctions for new bandwidth
      • Competition
      • Cooperation
    • Contrast the situations in Europe, Japan and the US.
  • Future of Wireless Internet
    • Decreasing cost and size of wireless phones and mobile devices
    • Improving technology
    • Increasing number of devices made wireless
    • Increased venture capitalist interest in wireless technology
  • Ultimate Wireless Device
    • Combination of all features of a mobile phone, PDA and two-way pager
    • Camera for video telephony and photography
    • Make calls from anywhere in the world
    • Send and receive e-mail in real-time, without having to dial into a service provider
    • Maintain your address book, schedules, to-do lists, etc.
    • Built-in GPS System
  • Transforming the PC-based Web
    • Sites must be rearchitected
    • Mapping (UAL)
    • New business models needed
      • Location-based services
      • Push vs. Pull
      • CRM – customer knowledge/preferences
      • Device ubiquity
      • Interaction b/w voice and data
  • http://,1454,66,00.html X X Contact United X Mileage Plus Award Travel Availability X Mileage Plus Upgrade Status X X Mileage Plus Summary X X X Flight Paging X X Flight Status X X Flight Availability X X My Itinerary X X Book a Flight Wireless PDA Web Phone Alpha-numeric Pager
  • Content Adaptation for Mobile Web Zhou & Chan, 2003 * Short for compact HTML , a subset of HTML for small information devices, such as smart phones and PDAs . cHTML is essentially a pared down version of regular HTML over the Internet. Host content: -HTML -WML -cHTML* User-agent detection Figure 1. Version Adaptation Host content: -HTML User-agent detection Gateway Transcoding -- [Server-specific API] --WML --cHTML Figure 2. Gateway Transcoding Host content: -HTML -XML -XSLT/XPath Figure 3. Template Adaptation User-agent detection Template translation -- [DOM/ASP/JSP/servlet] --WML --cHTML
  • Tasks with Added Mobile Values
    • Time-critical needs and arrangements,
    • Spontaneous needs and decisions, such as auctions, email, and news,
    • Entertainment needs,
    • Efficiency needs and ambitions,
    • Mobility related needs.
    • Source: Anckar & D’Incau, 2002.
  • Wireless Usability Research
    • Avoid scrolling,
    • Use a flat hierarchy,
    • Design a navigation system consistent with a regular Web browser,
    • Design a back button,
    • Provide a history list,
    • Provide an indication of signal strength,
    • Reduce user’s memory load, and
    • Limit the search scope to improve search efficiency.
    • Chan et al., 2002.
  • M-commerce Contrasts with Traditional Ecommerce
    • Compare to traditional web
      • Smaller screens
      • Low bandwidth
      • Monochrome vs. Color
      • Character vs. Bit modes
      • Font control
      • Limited local memory
      • Limited data entry capabilities
      • Mini browser features
    • Phones vs. PDAs vs. new form factors
    • Innovation is a key; technologically savvy people will continue to develop and improve wireless devices for consumers needs globally.
    • M-commerce will provide access to web-based solutions from virtually every location in the world.
    • "Methods of mobile payments will create $25 billion worth of trade by 2006” says a study from Frost & Sullivan.
    M-commerce Strengths
    • History tells us tech companies are far too eager to proclaim a revolution. However, history shows that a huge new market does not just show up overnight.
    • It takes years for consumers to catch on to a new technological development.
    • Tech companies entering into the market have no idea what kind of business model they should follow.
    • Is a consumer really going to pick up their cell phone and want to hear a commercial advertising Pepsi?
    • Wireless Application  Protocol (WAP) is required with all web-enabled wireless devices but it has several significant limitations.
    • Adoption of m-commerce cannot justify the costs that go into producing web-enabled wireless devices.
    M-commerce Weaknesses
  • Obstacles for m-Business Adoption
    • One of the challenges is to discover just how consumers might be inclined to use wireless devices for shopping. 
    • Wireless service is not universally available or reliable and still relatively expensive .
    • Limited bandwidth restricts the amount of data that can be sent over the wireless network.
    • Wireless devices have significantly smaller memory capacity and less powerful processors than desktop computers .
    • Application development and security standards still evolving.
  • M-commerce & B2B Services
    • Industry vertical applications
      • Deliveries (UPS, FedEx)
      • Construction site supplies
      • Agricultural sensors
      • Insurance adjustors
      • Government inspectors
      • Real Estate
      • Equipment management
      • Incorporating XML
      • Replacing EDI
  • m-Business
    • m-Business
      • e-Business using wireless devices with Internet access
      • B2C marketplace
        • Increased conveniences for consumers
        • Frequent, small transactions
        • Receiving news, sports scores, e-mail, coupons and advertisements
      • B2B marketplace
        • Salespeople can access product databases and place orders
        • Address customer needs immediately
        • Ordering and billing will be conducted remotely
  • M-business Services – Location Tracking
    • Location tracking
      • Can be used for navigation, such as GPS (Global Positioning System) devices installed in cars
      • Can be used by shipping companies to track delivery trucks, giving customers more accurate tracking information and expected delivery time
      • Can also be used for targeted marketing
  • Location-based Services
    • 911 locator
      • Government mandate
      • Triangulate position from 3 towers
    • Advertising
      • Impulse buying, walking past a store
      • Discounts
    • Mapping and Directions
    • Weather forecasts
  • M-business Services – Global Positioning System (GPS)
    • Developed by the United States Department of Defense
    • Uses satellites to track a user’s position (vertical and horizontal), velocity and the time in their location
    • Six circular orbits (four satellites per orbit), five ground stations and three antennas
    • Triangulation
      • Three (of four) satellites are used to determine the latitude, longitude and altitude of the receiver, the fourth satellite is used to check for errors in the triangulation
  • Internationalization
  • Global e-Business
    • Opportunity for expansion
    • An ambitious and expensive investment that does not guarantee increased revenue
    • Potential global businesses must review expected revenues vs. expected cost
    • Linguistic and cultural barriers
  • Internationalization and Localization
    • Internationalization (I18n)
      • Restructuring the software used by your e-business so that it can process foreign languages, currencies, date formats and other variations involved in conducting business globally
      • Compatible with 16-bit character encoding systems (Unicode) and other computing standards
    • Localization (L10n)
      • Includes the translation and cultural adaptation of your site’s content and presentation
    • Online translation services
      • Enterprise Translation Server ; Alis Technologies
      • Logos ; AltaVista’s Babelfish
  • Internationalization and Localization
    • Online translators are not 100 percent reliable
    • Consider the context of the message in a foreign culture
    • Translate META tags and text within graphic images
    • Adaptation of site layout to accommodate translations
    • Color scheme and logo translation
    • Conversion rates
    • Examples: Ikea , United Airline , Yahoo ; Amazon
  • Internationalization and Localization
    • Consider downloading capabilities in foreign markets
    • Global content
      • Refers to information and design that requires translation, but is essentially the same for all cultures
    • Regional content
      • Product and marketing information that is usually written once in English and then adapted for various markets
    • Local content
      • Material on specific regional pages that appears only on that Web site, such as regional promotions, pricing, delivery and store or office locations
  • Internalization creates widespread upheaval & increases consumer power Auto Net Pre-technology Adoption Internalization Mom-and-pop stores on Main Street Strip malls aggregate mom-and-pop stores Retailers benchmark Wal-Mart ’ s distribution model and eBay challenge Wal-Mart by creating Web versions of traditional businesses and Wal-Mart forced to adopt new business models like demand aggregation and personal stores Doing old things in new ways ” “ Doing new things in new ways ” Wal-Mart combines all stores under one roof, mom-and-pop stores close their doors Consumer gain: convenience Consumer gain: lower prices, better selection, more convenience Consumer gain: lower prices, better selection, more convenience Consumer gain: ability to set prices and drive production Massive power leap Incremental power shift Doing old things in ways old “ ” “
  • Choosing an International Market
    • Focus time and money in one or two key markets initially
    • Research competitors and visitors in foreign markets
    • When choosing an international market consider:
      • The number of people online
      • Internet usage growth rates
      • Per capita income
      • The consumers’ expectations of your business
    • Resources
      • Global Reach (
      • Projections ( )
  • Obtaining a Local Internet Address
    • .com domain name is the most universally recognized address on the Web
    • Domain-name registration in foreign countries is often complex
    • May require owning a trademark or incorporating your business in the foreign country
    • Organizations offering domain name registration services:
      • NetNames
  • Internalization is different from adoption
    • Adoption layers a new technology onto existing behavior. People do old things in new ways. Adults are adopting the Net.
    • Internalization drives changes throughout society. People do new things in new ways. Young consumers are the first generation to internalize the Net.
  • Internalization changes the rules
    • Rule 1: Information is everywhere
      • Consumers will access dynamically generated information from multiple devices
    • Rule 2: Personal information has value
      • Consumers will exchange personal information for free or customized products and services
    • Rule 3: Choice is a human right
      • Suppliers will create customized products and services in response to individual consumers’ demands
    • Rule 4: There is such a thing as a free lunch
      • Companies will develop loss-leaders to gain exposure to consumers and drive alternate sources of revenue
    • Rule 5: Building trust doesn’t require face-to-face interaction
      • Consumers will build trust and seek advice online
  • Internationalization Impact on Payment Systems
    • Offer alternatives to credit-card payment
      • In many countries, credit cards are far less common than in the United States
      • In Europe, cash-on-delivery is a common form of payment
    • Giros: Wire transfers between bank accounts
    • Direct Debit
      • e-Payment service from an American company called EuroDebit
      • Enables electronic debits from European customers’ bank accounts to be sent to merchants’ bank accounts for a small fee
    • Other Methods:
      • smart card, e-cash
  • Ecommerce Future Trends
    • Where do we go from here?
    • - “E-commerce is not dead; It is arising from
    • the pause that refreshes”
    • - “The price is not right”
    • - “International: The next frontier”
  • Next Session Highlights:
    • Final Exam