Session 9 Notes


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Session 9 Notes

  1. 1. Session 9 Topics <ul><li>Wireless Internet Technology and M-Business </li></ul><ul><li>International Ecommerce </li></ul>
  2. 2. Wireless Technology & Mobile Ecommerce <ul><li>Wireless technology turns e-business into mobile ecommerce and, ultimately, m-business , or mobile e-business </li></ul><ul><li>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.  </li></ul><ul><li>Current applications </li></ul><ul><ul><li>Conduct online transactions </li></ul></ul><ul><ul><li>Make purchases </li></ul></ul><ul><ul><li>Trade stocks </li></ul></ul><ul><ul><li>Send e-mail </li></ul></ul><ul><li>Future applications </li></ul><ul><ul><li>A wireless office , where computers, phones and other office equipment are all networked without cables </li></ul></ul>
  3. 3. Wireless Technology and Devices <ul><li>Wireless development </li></ul><ul><ul><li>First-generation wireless technology was the cellular phone </li></ul></ul><ul><ul><li>Second generation wireless technology, which includes digital cellular phones, is currently in use worldwide </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><li>Wireless devices </li></ul><ul><ul><li>Personal digital assistants (PDAs), Palm OS </li></ul></ul><ul><ul><li>Digital cellular phones (WAP Phones) </li></ul></ul><ul><ul><li>Two-way pagers (RIM) </li></ul></ul><ul><ul><li>MS Windows CE/Pocket PC </li></ul></ul>
  4. 4. Wireless Internet Access <ul><li>Code Division Multiple Access (CDMA) </li></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>Able to assign each transmission on the network a unique code to ensure security </li></ul></ul><ul><li>Global System for Mobile Communications ( GSM ) </li></ul><ul><ul><li>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) </li></ul></ul>
  5. 5. Wireless Internet Access <ul><li>3G technologies : high speed Internet access, email, streaming audio and video </li></ul><ul><ul><li>EDGE (AT&T, Nokia) </li></ul></ul><ul><ul><li>Cdma2000 (Sprint PCS) </li></ul></ul><ul><ul><li>W-CDMA (NTT DoCoMo) </li></ul></ul><ul><li>International Telecommunications Union (ITU) </li></ul><ul><ul><li>Establishes guidelines for 3G </li></ul></ul>
  6. 6. Wireless Hype Cycle Source: Gartner
  7. 7. Wireless Web Technology <ul><li>Three technologies are used to provide Web access to wireless devices </li></ul><ul><ul><li>Wireless Application Protocol (WAP) </li></ul></ul><ul><ul><li>Palm OS --Web clipping </li></ul></ul><ul><ul><li>Microsoft’s Pocket Internet Explorer </li></ul></ul>
  8. 8. PDA and Web Clipping <ul><li>Web clipping </li></ul><ul><ul><li>Allows users to take relevant pieces of a Web site and deliver it to a wireless device, eliminating excess content and graphics </li></ul></ul><ul><li>Proxy server </li></ul><ul><ul><li>Lies between client (such as a Web browser) and Web server </li></ul></ul><ul><ul><li>Query is received by a proxy server controlled by the wireless ISP </li></ul></ul><ul><ul><li>Proxy server goes to the Web site and “clips” the necessary data </li></ul></ul><ul><ul><ul><li>The proxy server transmits the data back to your wireless device </li></ul></ul></ul><ul><ul><ul><li>If the proxy server does not have the information, it passes the request to the regular server </li></ul></ul></ul><ul><li>Query Application Builder ( QAB ) </li></ul><ul><ul><li>Web designers build (PQAs) to be installed on users’ Palm handheld computers </li></ul></ul>
  9. 9. WAP <ul><li>Wireless Application Protocol ( WAP ) </li></ul><ul><ul><li>Developed by Nokia, Ericsson, Motorola, etc. </li></ul></ul><ul><ul><li>A set of communication protocols designed to enable different kinds of wireless devices to communicate and access the Internet </li></ul></ul><ul><ul><li>Designed to standardize development across different wireless technologies worldwide </li></ul></ul><ul><ul><li>Intended primarily for Internet-enabled digital phones, pagers and other handheld devices </li></ul></ul><ul><ul><li>Uses Web sites specifically designed for wireless handheld devices that have small screens and low-bandwidth constraints </li></ul></ul>
  10. 10. WML <ul><li>Wireless Markup Language (WML) </li></ul><ul><ul><li>The scripting language used to create Web content to be delivered to wireless handheld devices, based on XML </li></ul></ul><ul><ul><li>Removes “unnecessary” content from Web pages </li></ul></ul><ul><ul><li>WML tags are used to “mark up” a Web page to specify how the page should be formatted on a wireless device </li></ul></ul><ul><ul><li>WML works with the WAP to deliver the content </li></ul></ul><ul><ul><li>Similar to HTML, but it does not require input devices </li></ul></ul><ul><li>Microbrowsers </li></ul><ul><ul><li>Designed with limited bandwidth and limited memory requirements </li></ul></ul><ul><ul><li>Access the Web via the wireless Internet </li></ul></ul>
  11. 11. WAP and WML <ul><li>How wireless Internet works: </li></ul><ul><ul><li>A WAP gateway, which acts as a proxy server, receives the request, translates it and sends it to the appropriate Internet server </li></ul></ul><ul><ul><li>Server responds by sending the requested WML document </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><li>Deck </li></ul><ul><ul><li>A WML document </li></ul></ul><ul><li>Card </li></ul><ul><ul><li>Consists of one user interaction, providing the WML browser with a small, self-contained document for browsing </li></ul></ul>
  12. 12. Software Appliances for Wireless Devices <ul><li>No widely accepted standard for wireless development </li></ul><ul><li>Developers are often required to develop multiple applications </li></ul><ul><li>Microsoft Pocket Internet Explorer </li></ul><ul><ul><li>Reformats complete Web pages as they are downloaded from the Internet for display on the Pocket PC </li></ul></ul><ul><ul><li>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 </li></ul></ul>
  13. 13. Wireless Local Area Networks <ul><li>Easier to install and maintain without disrupting an office or without having to install a new a new network connection in each location </li></ul><ul><li>Technologies </li></ul><ul><ul><li>Radio Frequency WLANs (RF WLANs): Used to network devices at a distance </li></ul></ul><ul><ul><li>Laser technology </li></ul></ul><ul><ul><li>Infrared technology </li></ul></ul><ul><ul><li>Bluetooth </li></ul></ul><ul><ul><li>Wi-Fi 802.11x </li></ul></ul>
  14. 14. Wireless Communications <ul><li>Wireless communications can be unreliable and slow, wireless-device bandwidth is about one fifth of the capabilities of a standard dial-up connection </li></ul><ul><li>General packet radio services (GPRS) </li></ul><ul><ul><li>Enables devices to transmit data at speeds of up to 114 kbps </li></ul></ul><ul><li>Universal mobile telecommunications standard (UMTS) </li></ul><ul><ul><li>Will offer transfer speeds of up to 2 Mbps for wireless devices </li></ul></ul><ul><li>Smart phones </li></ul><ul><ul><li>Mobile phones that send and receive both voice and data messages </li></ul></ul><ul><ul><li>Used to securely send and receive secure mobile transactions </li></ul></ul>
  15. 15. The Carriers Rule! <ul><li>Rollout of wireless Internet services depends on the carriers </li></ul><ul><ul><li>They own the bandwidth licenses </li></ul></ul><ul><ul><li>Competing standards, esp. in the US </li></ul></ul><ul><ul><li>Investment in infrastructure </li></ul></ul><ul><ul><li>Global and nationwide coverage </li></ul></ul><ul><ul><li>Auctions for new bandwidth </li></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Cooperation </li></ul></ul><ul><li>Contrast the situations in Europe, Japan and the US. </li></ul>
  16. 16. Future of Wireless Internet <ul><li>Decreasing cost and size of wireless phones and mobile devices </li></ul><ul><li>Improving technology </li></ul><ul><li>Increasing number of devices made wireless </li></ul><ul><li>Increased venture capitalist interest in wireless technology </li></ul>
  17. 17. Ultimate Wireless Device <ul><li>Combination of all features of a mobile phone, PDA and two-way pager </li></ul><ul><li>Camera for video telephony and photography </li></ul><ul><li>Make calls from anywhere in the world </li></ul><ul><li>Send and receive e-mail in real-time, without having to dial into a service provider </li></ul><ul><li>Maintain your address book, schedules, to-do lists, etc. </li></ul><ul><li>Built-in GPS System </li></ul>
  18. 18. Transforming the PC-based Web <ul><li>Sites must be rearchitected </li></ul><ul><li>Mapping (UAL) </li></ul><ul><li>New business models needed </li></ul><ul><ul><li>Location-based services </li></ul></ul><ul><ul><li>Push vs. Pull </li></ul></ul><ul><ul><li>CRM – customer knowledge/preferences </li></ul></ul><ul><ul><li>Device ubiquity </li></ul></ul><ul><ul><li>Interaction b/w voice and data </li></ul></ul>
  19. 19. 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
  20. 20. 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
  21. 21. Tasks with Added Mobile Values <ul><li>Time-critical needs and arrangements, </li></ul><ul><li>Spontaneous needs and decisions, such as auctions, email, and news, </li></ul><ul><li>Entertainment needs, </li></ul><ul><li>Efficiency needs and ambitions, </li></ul><ul><li>Mobility related needs. </li></ul><ul><li>Source: Anckar & D’Incau, 2002. </li></ul>
  22. 22. Wireless Usability Research <ul><li>Avoid scrolling, </li></ul><ul><li>Use a flat hierarchy, </li></ul><ul><li>Design a navigation system consistent with a regular Web browser, </li></ul><ul><li>Design a back button, </li></ul><ul><li>Provide a history list, </li></ul><ul><li>Provide an indication of signal strength, </li></ul><ul><li>Reduce user’s memory load, and </li></ul><ul><li>Limit the search scope to improve search efficiency. </li></ul><ul><li>Chan et al., 2002. </li></ul>
  23. 23. M-commerce Contrasts with Traditional Ecommerce <ul><li>Compare to traditional web </li></ul><ul><ul><li>Smaller screens </li></ul></ul><ul><ul><li>Low bandwidth </li></ul></ul><ul><ul><li>Monochrome vs. Color </li></ul></ul><ul><ul><li>Character vs. Bit modes </li></ul></ul><ul><ul><li>Font control </li></ul></ul><ul><ul><li>Limited local memory </li></ul></ul><ul><ul><li>Limited data entry capabilities </li></ul></ul><ul><ul><li>Mini browser features </li></ul></ul><ul><li>Phones vs. PDAs vs. new form factors </li></ul>
  24. 24. <ul><li>Innovation is a key; technologically savvy people will continue to develop and improve wireless devices for consumers needs globally. </li></ul><ul><li>M-commerce will provide access to web-based solutions from virtually every location in the world. </li></ul><ul><li>&quot;Methods of mobile payments will create $25 billion worth of trade by 2006” says a study from Frost & Sullivan. </li></ul>M-commerce Strengths
  25. 25. <ul><li>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. </li></ul><ul><li>It takes years for consumers to catch on to a new technological development. </li></ul><ul><li>Tech companies entering into the market have no idea what kind of business model they should follow. </li></ul><ul><li>Is a consumer really going to pick up their cell phone and want to hear a commercial advertising Pepsi? </li></ul><ul><li>Wireless Application  Protocol (WAP) is required with all web-enabled wireless devices but it has several significant limitations. </li></ul><ul><li>Adoption of m-commerce cannot justify the costs that go into producing web-enabled wireless devices. </li></ul>M-commerce Weaknesses
  26. 26. Obstacles for m-Business Adoption <ul><li>One of the challenges is to discover just how consumers might be inclined to use wireless devices for shopping.  </li></ul><ul><li>Wireless service is not universally available or reliable and still relatively expensive . </li></ul><ul><li>Limited bandwidth restricts the amount of data that can be sent over the wireless network. </li></ul><ul><li>Wireless devices have significantly smaller memory capacity and less powerful processors than desktop computers . </li></ul><ul><li>Application development and security standards still evolving. </li></ul>
  27. 27. M-commerce & B2B Services <ul><li>Industry vertical applications </li></ul><ul><ul><li>Deliveries (UPS, FedEx) </li></ul></ul><ul><ul><li>Construction site supplies </li></ul></ul><ul><ul><li>Agricultural sensors </li></ul></ul><ul><ul><li>Insurance adjustors </li></ul></ul><ul><ul><li>Government inspectors </li></ul></ul><ul><ul><li>Real Estate </li></ul></ul><ul><ul><li>Equipment management </li></ul></ul><ul><ul><li>Incorporating XML </li></ul></ul><ul><ul><li>Replacing EDI </li></ul></ul>
  28. 28. m-Business <ul><li>m-Business </li></ul><ul><ul><li>e-Business using wireless devices with Internet access </li></ul></ul><ul><ul><li>B2C marketplace </li></ul></ul><ul><ul><ul><li>Increased conveniences for consumers </li></ul></ul></ul><ul><ul><ul><li>Frequent, small transactions </li></ul></ul></ul><ul><ul><ul><li>Receiving news, sports scores, e-mail, coupons and advertisements </li></ul></ul></ul><ul><ul><li>B2B marketplace </li></ul></ul><ul><ul><ul><li>Salespeople can access product databases and place orders </li></ul></ul></ul><ul><ul><ul><li>Address customer needs immediately </li></ul></ul></ul><ul><ul><ul><li>Ordering and billing will be conducted remotely </li></ul></ul></ul>
  29. 29. M-business Services – Location Tracking <ul><li>Location tracking </li></ul><ul><ul><li>Can be used for navigation, such as GPS (Global Positioning System) devices installed in cars </li></ul></ul><ul><ul><li>Can be used by shipping companies to track delivery trucks, giving customers more accurate tracking information and expected delivery time </li></ul></ul><ul><ul><li>Can also be used for targeted marketing </li></ul></ul>
  30. 30. Location-based Services <ul><li>911 locator </li></ul><ul><ul><li>Government mandate </li></ul></ul><ul><ul><li>Triangulate position from 3 towers </li></ul></ul><ul><li>Advertising </li></ul><ul><ul><li>Impulse buying, walking past a store </li></ul></ul><ul><ul><li>Discounts </li></ul></ul><ul><li>Mapping and Directions </li></ul><ul><li>Weather forecasts </li></ul>
  31. 31. M-business Services – Global Positioning System (GPS) <ul><li>Developed by the United States Department of Defense </li></ul><ul><li>Uses satellites to track a user’s position (vertical and horizontal), velocity and the time in their location </li></ul><ul><li>Six circular orbits (four satellites per orbit), five ground stations and three antennas </li></ul><ul><li>Triangulation </li></ul><ul><ul><li>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 </li></ul></ul>
  32. 32. Internationalization
  33. 33. Global e-Business <ul><li>Opportunity for expansion </li></ul><ul><li>An ambitious and expensive investment that does not guarantee increased revenue </li></ul><ul><li>Potential global businesses must review expected revenues vs. expected cost </li></ul><ul><li>Linguistic and cultural barriers </li></ul>
  34. 34. Internationalization and Localization <ul><li>Internationalization (I18n) </li></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>Compatible with 16-bit character encoding systems (Unicode) and other computing standards </li></ul></ul><ul><li>Localization (L10n) </li></ul><ul><ul><li>Includes the translation and cultural adaptation of your site’s content and presentation </li></ul></ul><ul><li>Online translation services </li></ul><ul><ul><li>Enterprise Translation Server ; Alis Technologies </li></ul></ul><ul><ul><li>Logos ; AltaVista’s Babelfish </li></ul></ul>
  35. 35. Internationalization and Localization <ul><li>Online translators are not 100 percent reliable </li></ul><ul><li>Consider the context of the message in a foreign culture </li></ul><ul><li>Translate META tags and text within graphic images </li></ul><ul><li>Adaptation of site layout to accommodate translations </li></ul><ul><li>Color scheme and logo translation </li></ul><ul><li>Conversion rates </li></ul><ul><li>Examples: Ikea , United Airline , Yahoo ; Amazon </li></ul>
  36. 36. Internationalization and Localization <ul><li>Consider downloading capabilities in foreign markets </li></ul><ul><li>Global content </li></ul><ul><ul><li>Refers to information and design that requires translation, but is essentially the same for all cultures </li></ul></ul><ul><li>Regional content </li></ul><ul><ul><li>Product and marketing information that is usually written once in English and then adapted for various markets </li></ul></ul><ul><li>Local content </li></ul><ul><ul><li>Material on specific regional pages that appears only on that Web site, such as regional promotions, pricing, delivery and store or office locations </li></ul></ul>
  37. 37. 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 “ ” “
  38. 38. Choosing an International Market <ul><li>Focus time and money in one or two key markets initially </li></ul><ul><li>Research competitors and visitors in foreign markets </li></ul><ul><li>When choosing an international market consider: </li></ul><ul><ul><li>The number of people online </li></ul></ul><ul><ul><li>Internet usage growth rates </li></ul></ul><ul><ul><li>Per capita income </li></ul></ul><ul><ul><li>The consumers’ expectations of your business </li></ul></ul><ul><li>Resources </li></ul><ul><ul><li>Global Reach ( </li></ul></ul><ul><ul><li>Projections ( ) </li></ul></ul>
  39. 39. Obtaining a Local Internet Address <ul><li>.com domain name is the most universally recognized address on the Web </li></ul><ul><li>Domain-name registration in foreign countries is often complex </li></ul><ul><li>May require owning a trademark or incorporating your business in the foreign country </li></ul><ul><li>Organizations offering domain name registration services: </li></ul><ul><ul><li>NetNames </li></ul></ul>
  40. 40. Internalization is different from adoption <ul><li>Adoption layers a new technology onto existing behavior. People do old things in new ways. Adults are adopting the Net. </li></ul><ul><li>Internalization drives changes throughout society. People do new things in new ways. Young consumers are the first generation to internalize the Net. </li></ul>
  41. 41. Internalization changes the rules <ul><li>Rule 1: Information is everywhere </li></ul><ul><ul><li>Consumers will access dynamically generated information from multiple devices </li></ul></ul><ul><li>Rule 2: Personal information has value </li></ul><ul><ul><li>Consumers will exchange personal information for free or customized products and services </li></ul></ul><ul><li>Rule 3: Choice is a human right </li></ul><ul><ul><li>Suppliers will create customized products and services in response to individual consumers’ demands </li></ul></ul><ul><li>Rule 4: There is such a thing as a free lunch </li></ul><ul><ul><li>Companies will develop loss-leaders to gain exposure to consumers and drive alternate sources of revenue </li></ul></ul><ul><li>Rule 5: Building trust doesn’t require face-to-face interaction </li></ul><ul><ul><li>Consumers will build trust and seek advice online </li></ul></ul>
  42. 42. Internationalization Impact on Payment Systems <ul><li>Offer alternatives to credit-card payment </li></ul><ul><ul><li>In many countries, credit cards are far less common than in the United States </li></ul></ul><ul><ul><li>In Europe, cash-on-delivery is a common form of payment </li></ul></ul><ul><li>Giros: Wire transfers between bank accounts </li></ul><ul><li>Direct Debit </li></ul><ul><ul><li>e-Payment service from an American company called EuroDebit </li></ul></ul><ul><ul><li>Enables electronic debits from European customers’ bank accounts to be sent to merchants’ bank accounts for a small fee </li></ul></ul><ul><li>Other Methods: </li></ul><ul><ul><li>smart card, e-cash </li></ul></ul>
  43. 43. Ecommerce Future Trends <ul><li>Where do we go from here? </li></ul><ul><li>- “E-commerce is not dead; It is arising from </li></ul><ul><li>the pause that refreshes” </li></ul><ul><li> - “The price is not right” </li></ul><ul><li>- “International: The next frontier” </li></ul>
  44. 44. Next Session Highlights: <ul><li>Final Exam </li></ul>