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Ec2009 ch08 mobile commerce and pervasive computing
 

Ec2009 ch08 mobile commerce and pervasive computing

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Chapter 8

Chapter 8
Mobile commerce and pervasive computing

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    Ec2009 ch08 mobile commerce and pervasive computing Ec2009 ch08 mobile commerce and pervasive computing Presentation Transcript

    • Chapter 8 Mobile Commerce and Pervasive Computing
    • Learning Objectives
      • Discuss the characteristics and attributes of m-commerce.
      • Describe the drivers of m-commerce.
      • Understand the technologies that support m-commerce.
      • Describe wireless standards and transmission networks.
    • Learning Objectives (cont.)
      • Discuss m-commerce applications in finance, advertising, and provision of content.
      • Describe the applications of m-commerce within organizations.
      • Understand B2B and supply chain applications of m-commerce.
      • Describe consumer and personal applications of m-commerce.
    • Learning Objectives (cont.)
      • Describe some non-Internet m-commerce applications.
      • Describe location-based commerce.
      • Discuss the key characteristics and current uses of pervasive computing.
      • Describe the major inhibitors and barriers of m-commerce.
    • Nextbus: A Superb Customer Service
      • The Problem
        • San Francisco buses have difficulty keeping up with the posted schedule, especially during rush hours
        • The scheduled times become meaningless
    • Nextbus (cont.)
      • The Solution
        • San Francisco implemented a system called NextBus ( nextbus.com )
        • The system tracks public transportation buses in real time
        • NextBus calculates the estimated arrival time of the bus to each bus stop on the route
    • Nextbus (cont.)
        • Arrival times are displayed in real time on:
          • Internet-enabled wireless device
          • The Internet and on a public screen at each bus stop
        • GPS satellites let the NextBus information center know where a bus is located making it possible to calculate arrival times
    • Nextbus (cont.)
    • Nextbus (cont.)
      • The Results
        • Worries about missing the bus are diminished
        • A bus company can also use the system to improve scheduling, arrange for extra buses when needed, and make its operations more efficient
    • Nextbus (cont.)
      • What we can learn…
        • location-based e-commerce, a major part of mobile commerce
        • EC services are provided to customers wherever they are located
        • exemplifies pervasive computing— services are seamlessly blended into the environment without the user being aware of the technology behind the scenes
    • Mobile Commerce
      • Mobile commerce (m-commerce,
      • m-business): Any e-commerce done in a wireless environment, especially via the Internet
        • A natural extension of e-business
        • Mobile devices create an opportunity to deliver new services to existing customers
    • Mobile Commerce Generations
      • 1G: The first generation of wireless technology, which was analog based
      • 2G: The second generation of digital wireless technology; accommodates mainly text
    • Mobile Commerce Generations (cont.)
      • 2.5G: Interim wireless technology that can accommodate limited graphics
      • 3G: The third generation of digital wireless technology; supports rich media such as video clips
    • Mobile Commerce Generations (cont.)
      • 4G: The expected next generation of wireless technology
      • Personal digital assistant (PDA): A handheld wireless computer
    • Mobile Commerce (cont.)
      • Short Message Service (SMS): Technology that allows for sending of short text messages on some cell phones
      • Enhanced Messaging Service (EMS): An extension of SMS capable of simple animation, tiny pictures, and short tunes
    • Mobile Commerce (cont.)
      • Multimedia Messaging Service (MMS): The next generation of wireless messaging; will be able to deliver rich media
      • Smartphone: Internet-enabled cell phones that can support mobile applications
    • Mobile Commerce (cont.)
      • Mobile financial applications (B2C, B2B)
      • Mobile advertising (B2C)
      • Mobile inventory management (B2C, B2B)
      • Proactive service management (B2C, B2B)
      • Product locating and shopping (B2C, B2B)
      • Wireless reengineering (B2C, B2B)
      Twelve applications of m-commerce
    • Mobile Commerce (cont.)
      • Mobile auction or reverse auction (B2C)
      • Mobile entertainment services (B2C)
      • Mobile office (B2C)
      • Mobile distance education (B2C)
      • Wireless data center (B2C, B2B)
      • Mobile music/music-on-demand (B2C)
      Twelve applications of m-commerce
    • Mobile Commerce: Attributes and Benefits
      • Specific attributes of m-commerce
        • Mobility
        • Broad reach
      • Benefits of value-added attributes
        • Ubiquity
        • Convenience
        • Instant connectivity
        • Personalization
        • Localization of products and services
    • Mobile Commerce: Characteristics
    • Mobile Commerce (cont.)
      • Drivers of m-commerce
        • Widespread availability of devices
        • No need for a PC
        • The handset culture
        • Vendors’ push
        • Improvement of bandwidth
    • Mobile Commerce (cont.)
      • M-commerce value chain
        • Transport
        • Enabling services
        • Transaction support
        • Presentation services
        • Personalization support
        • User applications
        • Content aggregators
    • Mobile Computing Infrastructure
      • M-commerce hardware
        • Cellular (mobile) phones
        • Attachable keyboard
        • PDAs
        • Interactive pagers
        • Screenphones
          • A telephone equipped with a color screen, possibly a keyboard, e-mail, and Internet capabilities
        • E-mail handhelds
    • Mobile Computing Infrastructure (cont.)
      • Required infrastructure hardware
        • Suitably configured wireline or wireless WAN modem, wireless LAN adapter, or wireless MAN (metro-area network) adapter
        • A Web server with wireless support, a WAP gateway, a communications server, and/or a mobile communications server switch (MCSS)
    • Mobile Computing Infrastructure (cont.)
        • An application or database server with application logic and a business application database providing
        • e-commerce functionality
        • A GPS locator that is used to determine the location of the person carrying the mobile computing device
    • Mobile Computing Infrastructure (cont.)
      • Software
        • Microbrowsers
          • Wireless software designed with limited bandwidth and limited memory requirements
        • Mobile-client operating system
    • Mobile Computing Infrastructure (cont.)
        • Bluetooth
          • Chip technology that enables voice and data communications between many wireless devices through low-power, short-range, digital two-way radio frequencies
        • Mobile application user interface
        • Back-end legacy application software
    • Mobile Computing Infrastructure (cont.)
        • Application middleware
        • Wireless middleware
        • Wireless Application Protocol
          • A set of communications protocols designed to enable different kinds of wireless devices to talk to a server installed on a mobile network so users can access the Internet
    • Mobile Computing Infrastructure (cont.)
        • Wireless Markup Language
          • Scripting language used for creating content in the wireless Web environment; based on XML, minus unnecessary content to increase speed
        • Voice XML
          • An extension of XML designed to accommodate voice
    • Mobile Computing Infrastructure (cont.)
      • Mobile networks
        • Subscriber Identification Module (SIM) card: An extractable storage card used for identification, transaction processing, and the like
    • Mobile Computing Infrastructure (cont.)
    • Mobile Computing Infrastructure (cont.)
      • Multiplexing protocols are used to service extremely large numbers of users given limited communication bandwidth
        • Frequency Division Multiple Access (FDMA)
        • Time Division Multiple Access (TDMA)
        • Code Division Multiple Access (CDMA)
    • Mobile Computing Infrastructure (cont.)
      • Wireless LAN (WLAN): LAN without the cables; used to transmit and receive data over the airwaves
      • Wireless access point: An antenna connecting a mobile device (laptop or PDA) to a wired LAN
    • Mobile Computing Infrastructure (cont.)
      • 802.11b: Standard, developed by the IEEE, on which most of today’s WLANs run; WLANs employing this standard have communication speeds of 11 mbps
      • Wireless fidelity (Wi-Fi): Another name for the 802.11b standard on which most WLANs run
    • Mobile Computing Infrastructure (cont.)
      • M-commerce security issues
        • Physical security
          • a stolen device can provide the thief with valuable data and digital credentials
        • Transactional issues
          • transactions are routed over a public network
        • Post-transaction issues
          • some method of proving that a particular transaction has occurred
    • Mobile Computing Infrastructure (cont.)
      • SIM-based authentication
        • usually implemented as a smart card containing an authentication key along with other vital information about the subscriber
        • PIN number protects the cell phone against illegal use if it happens to be stolen or lost
    • Mobile Computing Infrastructure (cont.)
      • Wireless Transport Layer Security (WTLS): Communication protocols that enable encrypted communications between a mobile device and the WAP gateway and support the key elements of electronic payment systems
      • Wireless identity module (WIM): A smart card device that can be used in combination with WTLS
    • Mobile Computing Infrastructure (cont.)
    • Mobile Computing Infrastructure (cont.)
      • Voice systems for m-commerce
        • Hand- and eyes-free operations
        • Disabled people can use voice commands
        • Voice terminals are designed for portability
        • Voice terminals are more rugged than keyboards
        • Communication is about two-and-a-half times faster talking than typing
        • Speaking results in fewer data entry errors
    • Mobile Computing Infrastructure (cont.)
      • Interactive voice response (IVR): A computer voice system that enables users to request and receive information and to enter and change data through regular telephone lines or through 1G cell phones
      • Voice portal: A Web site with an audio interface that can be accessed through a telephone call
    • Mobile Financial Applications
      • Mobile banking
        • A large percentage of banks offer mobile access to financial and account information
        • The uptake of mobile banking has been minimal
        • Surveys indicate there is strong latent demand for these offerings that is waiting for the technology and transmission speeds to improve
    • Mobile Financial Applications (cont.)
      • Wireless electronic payment systems
        • Wireless payment systems transform mobile phones into secure, self-contained purchasing tools capable of instantly authorizing payments over the cellular network for goods and services
    • Mobile Financial Applications (cont.)
      • Micropayments: Electronic payments for small-purchase amounts (generally less than $10)
        • Wide-ranging applications, such as making payments to parking garages, restaurants, grocery stores, and public utilities
        • Success depends on the costs of the transactions
    • Mobile Financial Applications (cont.)
      • M-wallet (mobile wallet): A wireless wallet that enables cardholders to make purchases with a single click from their wireless device
    • Mobile Financial Applications: Bill Payments
    • KBank MPay
    • KBank MPay
    • Mobile Financial Applications: Bill Payments (cont.)
      • Bill payments
        • A number of companies are now providing their customers with the option of paying their bills directly from a cell phone
    • Mobile Shopping, Advertising, and Content Providing
      • Shopping from wireless devices
        • Wireless shoppers are supported by services similar to those available for wireline shoppers
        • Cell phone users also can participate in online auctions (eBay and Amazon.com)
    • Mobile Advertising (cont.)
      • Targeted advertising
        • Knowing the current location of mobile users (using GPS) and their preferences or surfing habits, marketers can send user-specific advertising messages
    • Mobile Advertising (cont.)
        • Advertisements can also be location sensitive, informing a user about various ongoing special sales in shops, malls, and restaurants close to where a potential buyer is
        • SMS messages or short paging messages can be used to deliver these ads to cell phones and pagers, respectively
    • Mobile Advertising (cont.)
      • Getting paid to listen to ads
        • Singapore, thousands of people subscribed to the free minutes in exchange for listening to the ads
      • Future of wireless advertising
        • Wireless advertising initiatives to date have all been “trials”
        • Wireless ads will be incorporated with other advertising media
    • Mobile Advertising and Content Providing (cont.)
      • Mobile portal: A customer interaction channel that aggregates content and services for mobile users
    • Mobile Intrabusiness and Applications
      • Support for mobile employees
        • Mobile employees need the same corporate data available to employees working inside the company’s offices
    • Mobile Intrabusiness and Applications (cont.)
      • Wearable devices: Mobile wireless computing devices for employees who work on buildings and other difficult-to-climb places
    • Mobile Intrabusiness and Applications (cont.)
      • Examples of wearable devices
        • Cameras
        • Screen
        • Keyboard
        • Touch-panel display
    • Mobile Intrabusiness and Applications (cont.)
      • Job dispatch
        • nonvoice mobile services can be used to assign jobs to mobile employees, along with detailed information about the task
        • Target areas
          • Transportation
          • Taxis
          • Utilities
          • Field services
          • Health care
          • Security
    • Mobile Intrabusiness and Applications (cont.)
      • Customer support
        • Mobile access extends the reach of CRM—both inside and outside the company, to employees and partners alike on a 24/7 basis
        • Voice portal technology can be connected to legacy systems to provide enhanced customer service or to improve access to data for employees
    • Mobile Intrabusiness and Applications (cont.)
      • Non-internet intrabusiness applications
        • Wireless networking
        • Delivery and order status updates
        • Online dispatching, online diagnosis support from remote locations, and parts ordering/inventory queries
    • Mobile Intrabusiness and Applications (cont.)
        • Mobile shop-floor quality control systems that enable voice reports by inspectors, data collection from facilities, and transmission to a central processor
        • A corporate wireless network
        • Remote database queries regarding order status or product availability
    • Mobile Intrabusiness and Applications (cont.)
      • Internet-based intrabusiness applications
        • Monthly pay slips as SMS messages sent to mobile phones
        • Mobile inventory systems
        • Web-enabled wireless devices for express delivery companies
        • Property adjusters send pictures and report from the scene of an accident
    • Mobile B2B and Supply Chain Applications
      • Mobile computing solutions enable organizations to:
        • Respond faster to supply chain disruptions
        • Proactive adjustment of plans or shifting resources related to critical supply chain events as they occur
    • Mobile B2B and Supply Chain Applications (cont.)
        • Wireless telemetry is an integrated messaging system that combines:
          • wireless communications
          • vehicle monitoring systems
          • vehicle location devices
    • Mobile B2B and Supply Chain Applications (cont.)
        • Technology enables:
          • Large-scale automation of data capture
          • Improved billing timeliness and accuracy
          • Reduced overhead associated with the manual alternative
          • Increased customer satisfaction through service responsiveness
    • Mobile Consumer and Personal Service Applications
      • Mobile games
        • With more than 1 billion cell phones in use today the potential audience for mobile games is substantially larger than the market for other platforms
    • Mobile Game
    • Mobile Consumer and Personal Service Applications (cont.)
        • Games can be programmed directly into the phone’s chipset and shipped with the phone
        • WAP games are played by accessing the game provider’s mobile or Web portal
    • Mobile Consumer and Personal Service Applications (cont.)
      • Mobile entertainment
        • The availability of portable MP3 players has lead to the development of music devices integrated with mobile phones
        • With higher bandwidth, music vendors can offer instant delivery of songs from their music libraries for online purchase
    • Mobile Consumer and Personal Service Applications (cont.)
        • Handset vendors have cell phones that enable users to send pictures from one device to another
        • As the 3G handsets hit the market, mobile devices will begin to support the downloading and real-time playback of audio and video clips
    • Mobile Consumer and Personal Service Applications (cont.)
      • Hotels
        • Hotels now offer their guests in-room, high-speed Internet connections
        • A small number of hotels are testing the use of this technology for check-in and check-out, for making purchases from hotel vending machines and stores, for tracking loyalty points
    • Mobile Consumer and Personal Service Applications (cont.)
      • Wireless telemedicine
        • The storage and forwarding of digital images from one location to another
        • Videoconferencing used for real-time consultation with a patient in one location and a medical specialist in another
    • Mobile Consumer and Personal Service Applications (cont.)
        • New and novel application opportunities:
          • On wearable heart monitors linked to cell phones
          • Portable devices that transmit the vital signs of avalanche victims
          • Mobile communications used to attend to medical emergencies occurring on planes
          • Mobile telesurgery applications that enable surgeons in one location to remotely control robotic arms for surgery in another location
    • Location-Based Commerce
      • Location-based commerce (l-commerce): M-commerce transactions targeted to individuals in specific locations, at specific times
      • L-commerce offers:
        • Safety
        • Convenience
        • Productivity
    • Location-Based Commerce (cont.)
      • L-commerce basic services revolve around five key areas:
        • Location
        • Navigation
        • Tracking
        • Mapping
        • Timing
    • Location-Based Commerce (cont.)
      • Necessary location-based and network technologies:
        • Position-determining equipment (PDE)
        • Mobile positioning center (MPC)
        • Location-based technology
        • Geographic content
        • Location-specific content
    • Location-Based Commerce (cont.)
      • Global positioning system (GPS): A wireless system that uses satellites to enable users to determine their position anywhere on the earth
      • GPS handsets can be:
        • stand-alone units
        • plugged into a mobile device or completely embedded in one
    • GPS
    • Location-Based Commerce (cont.)
      • Geographical information system (GIS): System that integrates GSP data onto digitized map displays
      • Wireless 911 (e-911): Calls from cellular phones to providers of emergency services
    • Location-Based Commerce (cont.)
    • Location-Based Commerce (cont.)
    • Location-Based Commerce (cont.)
      • Automatic crash notification (ACN): Device that automatically sends the police the location of a vehicle that has been involved in a crash
      • Telematics: The integration of computers and wireless communications to improve information flow using the principles of telemetry
    • Location-Based Commerce (cont.)
      • Barriers to l-commerce
        • Accuracy
        • The cost-benefit justification
        • The bandwidth of GSM networks
        • Invasion of privacy
    • Pervasive Computing
      • Pervasive computing: Invisible, everywhere computing that is embedded in the objects around us
      • Also know as:
        • ubiquitous computing
        • embedded computing
        • augmented computing
    • Pervasive Computing (cont.)
      • Embedded computers do not intrude on our consciousness
        • Radio frequency identification (RFID): Generic term for technologies that use radio waves to automatically identify individual items
    • RFID
    • RFID (cont.)
    • Pervasive Computing (cont.)
      • Properties of pervasive computing
        • Invisible devices
        • Embedded microchips
        • Always on
        • Ubiquitous network
        • Life-enhancing applications
        • Consumer-centric solutions
        • Increasing productivity
        • Long-term vision
    • Pervasive Computing (cont.)
      • Technical foundation of pervasive computing
        • Everyday objects have to contain embedded microprocessors
        • A ubiquitous network is needed to connect these microprocessors
        • The microprocessors must be able to communicate with the ubiquitous network
    • Pervasive Computing: Applications
      • Smart homes—home automation systems support:
        • Lighting
        • Energy management
        • Water control
        • Home security and communications
        • Home theater
    • Pervasive Computing: Applications (cont.)
      • Smart appliances
        • Internet-ready appliance that can be controlled by a small handheld device or desktop computer via a home intranet or the public Internet
        • Home Alliance (internethomealliance.com)
    • Pervasive Computing: Applications (cont.)
      • A networked appliance could provide a manufacturer and the owner with information that could be used for:
        • Capturing or reporting on the operation, performance, and usage of a device
        • Diagnostic purposes—monitoring, troubleshooting, repairing, or maintaining the device
    • Pervasive Computing: Applications (cont.)
        • Improving or augmenting the performance or features of a device
        • Controlling and coordinating devices into a sequenced pattern of behavior
        • Profiling and behavior tracking of a device
        • Monitoring consumption
        • Tracking and optimizing the service support system
    • Pervasive Computing: Applications (cont.)
      • Smart cars—increased use of automobile microprocessors
        • sophisticated engine controls to meet emissions and fuel-economy standards
        • advanced diagnostics; simplification of the manufacture and design of cars
        • reduction of the amount of wiring in cars
        • new safety features
        • new comfort and convenience features
    • Smart Car
    • Pervasive Computing: Applications (cont.)
      • Growing trend is connecting car microprocessors to mobile networks for support services including:
        • Emergency assistance
        • Driving directions
        • E-mail
    • Pervasive Computing: Applications (cont.)
      • Services provided by OnStar (onstar.com) include:
        • Air Bag Deployment Notification
        • Voice-activated nationwide wireless calling service
        • Emergency services and roadside assistance
    • Pervasive Computing: Applications (cont.)
        • Personal Concierge, which plans entire trips
        • Route Support
        • Stolen Vehicle Tracking
        • Remote Door Unlock
        • Remote Diagnostics
    • Pervasive Computing: Applications (cont.)
      • Smart “things”
        • Universal Product Code (UPC)—barcodes
          • used at various points in the supply chain to track inventory and shipments and to identify items at the point of sale
    • Pervasive Computing: Applications (cont.)
        • Auto Identification Center (Auto-ID): Joint partnership among global companies and research universities to create an Internet of Things
        • Internet of Things: A network that connects computers to objects in order to be able to track individual items as they move from factories to store shelves to recycling facilities, providing near-perfect supply chain visibility
    • Pervasive Computing: RFID
      • Key technical elements of the Auto-ID system include:
        • RFID
        • Electronic Product Code (EPC)
          • Universal standard for product identification, stored on an RFID tag
    • Pervasive Computing (cont.)
        • Object Name Service (ONS)
          • Service that points a computer to an address on the Internet where information about a product is stored
        • Product Markup Language (PML)
          • Proposed new markup language, based on the XML standard, that specifies how a product’s name, category, manufacture date, expiration date, and the like will be represented in a computer
    • Pervasive Computing (cont.)
        • Savant
          • Software created by the Auto-ID center that gathers information from RFID readers and passes it on to various business applications
    • Pervasive Computing (cont.)
      • Auto-ID at work
        • Adding identity to products
        • Adding identity to cases
        • Reading tags
        • Savant at work
        • PML at work
        • Efficiency in distribution
        • Efficiency in inventory
        • Overstocking eliminated
        • Consumer convenience
    • Inhibitors and Barriers to L-Commerce
      • Usability problem—three dimensions:
        • Effectiveness
        • Efficiency
        • Satisfaction
    • Inhibitors and Barriers to L-Commerce (cont.)
      • Mobile visitors to a Web site are paying premium rates for connections and are focused on a specific goal
      • To find exactly what they are looking for easily and quickly customers need more than text-only devices with small screens
    • Inhibitors and Barriers to L-Commerce (cont.)
      • Technical limitations
        • Lack of a standardized security protocol
        • Insufficient bandwidth
        • Transmission and power consumption limitations
        • WAP limitations
    • Inhibitors and Barriers to L-Commerce (cont.)
      • Potential health hazards
        • The issue of cellular radio frequency emissions and the fear that radiation from wireless mobile devices may induce cancer has been debated for several years
        • Drivers using mobile telephones have an increased chance of being involved in a traffic accident
        • Use of cell phones may interfere with sensitive medical devices
    • Managerial Issues
      • What’s our timetable?
      • Which applications first?
      • Is it real or just a buzzword?
      • Which system to use?
    • Summary
      • Characteristics and attributes of m-commerce
      • Drivers of m-commerce
      • Supporting technologies
      • Wireless standards and technologies
      • Finance, advertising, and content-providing applications
      • Intrabusiness applications
    • Summary (cont.)
      • B2B applications
      • Consumer applications
      • Non-Internet applications
      • L-commerce
      • Pervasive computing
      • Limitations of m-commerce