Chapter 8 Mobile Commerce
Mobile Commerce: Overview <ul><li>Mobile commerce (m-commerce,  </li></ul><ul><li>m-business)—any   e-commerce done in a w...
Exhibit 8.2 Classes of M-Commerce Applications
M-Commerce Terminology <ul><li>Generations </li></ul><ul><ul><li>1G: 1979-1992 wireless technology </li></ul></ul><ul><ul>...
Terminology and Standards <ul><li>GPS: Satellite-based Global Positioning System </li></ul><ul><li>PDA: Personal Digital A...
Specific Attributes of M-Commerce <ul><li>Attributes of m-commerce and its economic advantages </li></ul><ul><ul><li>Mobil...
Attributes of M-Commerce  (cont.) <ul><li>Value-added attributes of m-commerce </li></ul><ul><ul><li>Ubiquity—easier infor...
Exhibit 8.3 Characteristics of M-Commerce
The Drivers <ul><li>Widespread availability of devices </li></ul><ul><li>No need for a PC </li></ul><ul><li>Handset cultur...
Mobile Computing Infrastructure <ul><li>Cellular (mobile) phones </li></ul><ul><li>Attachable keyboard </li></ul><ul><li>P...
Mobile Computing Infrastructure  (cont.) <ul><li>Unseen infrastructure requirements </li></ul><ul><ul><li>Suitably configu...
Mobile Computing Infrastructure  (cont.) <ul><li>Software </li></ul><ul><ul><li>Microbrowser </li></ul></ul><ul><ul><li>Mo...
Mobile Computing Infrastructure  (cont.) <ul><li>Networks and access </li></ul><ul><ul><li>Wireless transmission media </l...
Exhibit 8.5  Delta Airlines Wireless System
Wireless Standards and Security <ul><li>M-commerce supported by </li></ul><ul><ul><li>Standards </li></ul></ul><ul><ul><li...
Wireless Standards <ul><li>Wireless standards </li></ul><ul><ul><li>Time-division Multiple Access (TMDA) </li></ul></ul><u...
Wireless Standards  (cont.) <ul><ul><li>Wireless Application Protocol (WAP)—a set of communications protocols designed to ...
Security Issues <ul><li>Viruses </li></ul><ul><li>Smart card security solutions </li></ul><ul><ul><li>Voice communication ...
Voice Systems for M-Commerce <ul><li>Hands-free and eyes-free operations increase productivity, safety, effectiveness </li...
Interactive Voice Response <ul><li>Interactive voice response (IVR)—a   computer voice system that enables users to reques...
Voice Portals <ul><li>Voice portal—a   Web site with audio interface, accessed by making a phone call </li></ul><ul><ul><l...
Mobile Financial Applications <ul><li>Wireless electronic payment systems </li></ul><ul><ul><li>Mobile phones become secur...
Mobile Financial Applications  (cont.) <ul><li>M-wallet (mobile wallet)—a wireless wallet that enables cardholders to make...
Examples of Financial Applications <ul><li>Swedish Postal Bank </li></ul><ul><li>Dagens Industri </li></ul><ul><li>Citiban...
Exhibit 8.6 Bill Payments by Cell Phone
Shopping from Wireless Devices <ul><li>Buy.com allows shopping from wireless devices </li></ul><ul><li>In 5-10 years most ...
Exhibit 8.7 Mobile Shopping Supported by CRM
Targeted Advertisement <ul><li>Personalization of services and enhanced user interface for wireless Web pages from barnesa...
Targeted Advertisement  (cont.) <ul><li>Get paid to listen to advertisements—listen to a 10–second ad before you dial your...
Targeted Advertisement  (cont.) <ul><li>Advertisement strategies and guidelines—Wireless Advertising Association (waagloba...
Wireless Advertising in Action <ul><li>GPS helps target users from their location </li></ul><ul><ul><li>Vindigo.com—places...
Supporting Customers & Business Partners (Consumer Services) <ul><li>Using voice portals in marketing and customer service...
Supporting Customers & Business Partners (Consumer Services)  [cont.] <ul><li>Using mobile portals </li></ul><ul><ul><li>M...
Supporting Mobile Employees <ul><li>Smartphones and hand-held devices </li></ul><ul><li>Wearable wireless devices—m obile ...
Supporting Mobile Employees  (cont.) <ul><li>Job dispatch </li></ul><ul><ul><li>Transportation (delivery of food, oil, new...
Supporting Mobile Employees  (cont.) <ul><li>Sales  force automation (SFA) tools </li></ul><ul><ul><li>Integrate software ...
Non-Internet Intrabusiness Applications <ul><li>Wireless networking used for item picking in warehouses </li></ul><ul><li>...
Non-Internet  Intrabusiness Applications  (cont.) <ul><li>Mobile shop-floor quality control systems enable  </li></ul><ul>...
Exhibit 8.9 Automated Wireless Workflow Applications
Internet-Based Intrabusiness Applications <ul><li>Applications implemented inside enterprises, some examples: </li></ul><u...
Internet-Based Intrabusiness Applications  (cont.) <ul><ul><li>Bertelsmann AG: gives junior-level executives wireless acce...
Exhibit 8.10 Intelligent Office Connected by Wireless LAN
Mobile B2B and  Supply Chain Applications <ul><li>Both sell-side and buy-side of ERP </li></ul><ul><li>Unified messaging m...
Mobile Consumer and Personal Service Applications <ul><li>Mobile gaming devices </li></ul><ul><ul><li>PDAs (Handspring’s V...
Mobile Consumer and Personal Service Applications  (cont.) <ul><li>Mobile entertainment </li></ul><ul><ul><li>Music </li><...
Exhibit 8.13 Intelligent Home Connected by Wireless LAN
Mobile Consumer and Personal Service Applications  (cont.) <ul><li>Wireless telemedicine—use of mobile telecommunications ...
Mobile Consumer and Personal Service Applications  (cont.) <ul><li>Non-Internet consumer applications </li></ul><ul><ul><l...
Location-Based Commerce <ul><li>Location-based commerce (L-commerce)—e -commerce applications provided to customers based ...
Exhibit 8.14 Location-Based Services Involving Maps
Exhibit 8.15 GPS System
L-Commerce Applications  (cont.) <ul><li>E-911— Calls from cellular phones to providers of emergency services </li></ul><u...
Telematics and Telemetry Applications <ul><li>Telematics—integration of computers and wireless communications to improve i...
Telematics and Telemetry Applications  (cont.) <ul><li>Use as a remote vehicle self-diagnostics tool </li></ul><ul><ul><li...
Barriers to L-Commerce <ul><li>The accuracy of some of the location technologies </li></ul><ul><li>The cost-benefit justif...
Limitations of M-Commerce <ul><li>Usability problem </li></ul><ul><ul><li>Usability of a site is critical to attract atten...
Technical Limitations <ul><li>Lack of standardized security protocol </li></ul><ul><ul><li>Security methodology needs to b...
Technical Limitations  (cont.) <ul><li>WAP limitations </li></ul><ul><ul><li>Speed—in 2002 connections to WAP sites are st...
Technical Limitations  (cont.) <ul><li>Potential health hazards </li></ul><ul><ul><li>Fear of radiation </li></ul></ul><ul...
Implementing M-Commerce <ul><ul><li>Basic (fixed) fees </li></ul></ul><ul><ul><li>Point-of-traffic fees </li></ul></ul><ul...
Implementing M-Commerce  (cont.) <ul><li>Consumer confidence and trust </li></ul><ul><ul><li>Customers love free or inexpe...
Implementing M-Commerce  (cont.) <ul><li>M-commerce value chain </li></ul><ul><ul><li>Involves many partners </li></ul></u...
Summary <ul><li>Characteristics and attributes of m-commerce </li></ul><ul><li>Drivers of m-commerce </li></ul><ul><li>Sup...
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Ch 08 mobile commerce

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Introduction to E-Commerce (Turban)
Chpter 8 - Mobile Commerce

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Ch 08 mobile commerce

  1. 1. Chapter 8 Mobile Commerce
  2. 2. Mobile Commerce: Overview <ul><li>Mobile commerce (m-commerce, </li></ul><ul><li>m-business)—any e-commerce done in a wireless environment, especially via the Internet </li></ul><ul><ul><li>Can be done via the Internet, private communication lines, smart cards, etc. </li></ul></ul><ul><ul><li>Creates opportunity to deliver new services to existing customers and to attract new ones </li></ul></ul>
  3. 3. Exhibit 8.2 Classes of M-Commerce Applications
  4. 4. M-Commerce Terminology <ul><li>Generations </li></ul><ul><ul><li>1G: 1979-1992 wireless technology </li></ul></ul><ul><ul><li>2G: current wireless technology; mainly accommodates text </li></ul></ul><ul><ul><li>2.5G: interim technology accommodates graphics </li></ul></ul><ul><ul><li>3G: 3 rd generation technology (2001-2005) supports rich media (video clips) </li></ul></ul><ul><ul><li>4G: will provide faster multimedia display (2006-2010) </li></ul></ul>
  5. 5. Terminology and Standards <ul><li>GPS: Satellite-based Global Positioning System </li></ul><ul><li>PDA: Personal Digital Assistant—handheld wireless computer </li></ul><ul><li>SMS: Short Message Service </li></ul><ul><li>EMS: Enhanced Messaging Service </li></ul><ul><li>MMS: Multimedia Messaging Service </li></ul><ul><li>WAP: Wireless Application Protocol </li></ul><ul><li>Smartphones—Internet-enabled cell phones with attached applications </li></ul>
  6. 6. Specific Attributes of M-Commerce <ul><li>Attributes of m-commerce and its economic advantages </li></ul><ul><ul><li>Mobility—users carry cell phones or other mobile devices </li></ul></ul><ul><ul><li>Broad reach—people can be reached at any time </li></ul></ul>
  7. 7. Attributes of M-Commerce (cont.) <ul><li>Value-added attributes of m-commerce </li></ul><ul><ul><li>Ubiquity—easier information access in real-time </li></ul></ul><ul><ul><li>Convenience—devices that store data and have Internet, intranet, extranet connections </li></ul></ul><ul><ul><li>Instant connectivity—easy and quick connection to Internet, intranets, other mobile devices, databases </li></ul></ul><ul><ul><li>Personalization—preparation of information for individual consumers </li></ul></ul><ul><ul><li>Localization of products and services—knowing where the user is located at any given time and match service to them </li></ul></ul>
  8. 8. Exhibit 8.3 Characteristics of M-Commerce
  9. 9. The Drivers <ul><li>Widespread availability of devices </li></ul><ul><li>No need for a PC </li></ul><ul><li>Handset culture </li></ul><ul><li>Vendors’ push </li></ul><ul><li>Declining prices </li></ul><ul><li>Improvement of bandwidth </li></ul><ul><li>Explosion of EC in general </li></ul>
  10. 10. Mobile Computing Infrastructure <ul><li>Cellular (mobile) phones </li></ul><ul><li>Attachable keyboard </li></ul><ul><li>PDAs </li></ul><ul><li>Interactive pagers </li></ul><ul><li>Other devices </li></ul><ul><ul><li>Notebooks </li></ul></ul><ul><ul><li>Handhelds </li></ul></ul><ul><ul><li>Smartpads </li></ul></ul><ul><li>Screenphones—a telephone equipped with color screen, keyboard, e-mail, and Internet capabilities </li></ul><ul><li>E-mail handhelds </li></ul><ul><li>Wirelined—connected by wires to a network </li></ul><ul><li>Hardware </li></ul>
  11. 11. Mobile Computing Infrastructure (cont.) <ul><li>Unseen infrastructure requirements </li></ul><ul><ul><li>Suitably configured wireline or wireless WAN modem </li></ul></ul><ul><ul><li>Web server with wireless support </li></ul></ul><ul><ul><li>Application or database server </li></ul></ul><ul><ul><li>Large enterprise application server </li></ul></ul><ul><ul><li>GPS locator used to determine the location of mobile computing device carrier </li></ul></ul>
  12. 12. Mobile Computing Infrastructure (cont.) <ul><li>Software </li></ul><ul><ul><li>Microbrowser </li></ul></ul><ul><ul><li>Mobile client operating system (OS) </li></ul></ul><ul><ul><li>Bluetooth—a chip technology and WPAN standard that enables voice and data communications between wireless devices over short-range radio frequency (RF) </li></ul></ul><ul><ul><li>Mobile application user interface </li></ul></ul><ul><ul><li>Back-end legacy application software </li></ul></ul><ul><ul><li>Application middleware </li></ul></ul><ul><ul><li>Wireless middleware </li></ul></ul>
  13. 13. Mobile Computing Infrastructure (cont.) <ul><li>Networks and access </li></ul><ul><ul><li>Wireless transmission media </li></ul></ul><ul><ul><ul><li>Microwave </li></ul></ul></ul><ul><ul><ul><li>Satellites </li></ul></ul></ul><ul><ul><ul><li>Radio </li></ul></ul></ul><ul><ul><ul><li>Infrared </li></ul></ul></ul><ul><ul><ul><li>Cellular radio technology </li></ul></ul></ul><ul><ul><li>Wireless systems </li></ul></ul>
  14. 14. Exhibit 8.5 Delta Airlines Wireless System
  15. 15. Wireless Standards and Security <ul><li>M-commerce supported by </li></ul><ul><ul><li>Standards </li></ul></ul><ul><ul><li>Security </li></ul></ul><ul><ul><li>Voice systems </li></ul></ul>M-commerce
  16. 16. Wireless Standards <ul><li>Wireless standards </li></ul><ul><ul><li>Time-division Multiple Access (TMDA) </li></ul></ul><ul><ul><li>General Packet Radio Services (GPRS) </li></ul></ul><ul><ul><li>Code Division Multiple Access (CDMA) </li></ul></ul><ul><ul><li>CDMA One </li></ul></ul><ul><ul><li>Global System of Mobile Communication (GSM) </li></ul></ul><ul><ul><li>WLAN 802.11 (Wi-Fi) </li></ul></ul><ul><ul><li>Wideband CDMA </li></ul></ul>
  17. 17. Wireless Standards (cont.) <ul><ul><li>Wireless Application Protocol (WAP)—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 </li></ul></ul><ul><ul><li>Subscriber Identification Module (SIM) </li></ul></ul><ul><ul><li>Wireless Markup Language (WML) </li></ul></ul><ul><ul><li>Voice XML (VXML) </li></ul></ul><ul><ul><li>Enhanced Data Rates for Global Evaluation (EDGE) </li></ul></ul><ul><ul><li>Universal Mobile Telecommunications System (UMTS) </li></ul></ul><ul><ul><li>IPv6 </li></ul></ul>
  18. 18. Security Issues <ul><li>Viruses </li></ul><ul><li>Smart card security solutions </li></ul><ul><ul><li>Voice communication can be intercepted by hackers </li></ul></ul><ul><ul><li>One solution is an embedded biometric add-on </li></ul></ul><ul><li>Back-end security solutions—public key infrastructure (PKI) and M-CERT (mobile certification) </li></ul>
  19. 19. Voice Systems for M-Commerce <ul><li>Hands-free and eyes-free operations increase productivity, safety, effectiveness </li></ul><ul><li>Disabled people can use voice data for various tasks </li></ul><ul><li>Voice terminals are portable </li></ul><ul><li>2 ½ times faster than typing </li></ul><ul><li>Fewer errors </li></ul>
  20. 20. Interactive Voice Response <ul><li>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 </li></ul><ul><ul><li>Patients schedule doctors’ appointments </li></ul></ul><ul><ul><li>Users request pick-up from FedEx </li></ul></ul><ul><ul><li>Employees find information, select, or change benefits packages </li></ul></ul><ul><ul><li>Electric utilities can respond to customers reporting power outages </li></ul></ul>
  21. 21. Voice Portals <ul><li>Voice portal—a Web site with audio interface, accessed by making a phone call </li></ul><ul><ul><li>Request information verbally from system that: </li></ul></ul><ul><ul><ul><li>Retrieves the information </li></ul></ul></ul><ul><ul><ul><li>Translates it into a computer-generated voice reply </li></ul></ul></ul><ul><ul><ul><li>Tells you what you want to know </li></ul></ul></ul><ul><ul><li>Iping.com—reminder and notification service </li></ul></ul><ul><ul><li>Helps businesses find new customers </li></ul></ul>
  22. 22. Mobile Financial Applications <ul><li>Wireless electronic payment systems </li></ul><ul><ul><li>Mobile phones become secure, self-contained purchasing tools capable of instantly authorizing payments over the cellular network for goods and services consumed </li></ul></ul><ul><li>Micropayments—electronic payments for small-purchase amounts (generally less than $10) </li></ul>
  23. 23. Mobile Financial Applications (cont.) <ul><li>M-wallet (mobile wallet)—a wireless wallet that enables cardholders to make purchases with a single click from their wireless devices </li></ul><ul><li>Bill payments directly from cell phone via: </li></ul><ul><ul><li>Bank </li></ul></ul><ul><ul><li>Credit card </li></ul></ul><ul><ul><li>Prepaid arrangement </li></ul></ul>
  24. 24. Examples of Financial Applications <ul><li>Swedish Postal Bank </li></ul><ul><li>Dagens Industri </li></ul><ul><li>Citibank </li></ul><ul><li>Japanese banks </li></ul><ul><li>Hoover’s wireless (hoover.com) </li></ul><ul><li>ASB Bank (New Zealand) </li></ul><ul><li>Boston’s Faneuil Hall Marketplace </li></ul>
  25. 25. Exhibit 8.6 Bill Payments by Cell Phone
  26. 26. Shopping from Wireless Devices <ul><li>Buy.com allows shopping from wireless devices </li></ul><ul><li>In 5-10 years most businesses will be wireless </li></ul><ul><li>Online stores will become showrooms </li></ul><ul><ul><li>View products </li></ul></ul><ul><ul><li>Purchase them using handheld devices </li></ul></ul><ul><ul><li>Possibly enhanced by bar code scanners </li></ul></ul><ul><ul><li>Customization may be possible </li></ul></ul>
  27. 27. Exhibit 8.7 Mobile Shopping Supported by CRM
  28. 28. Targeted Advertisement <ul><li>Personalization of services and enhanced user interface for wireless Web pages from barnesandnoble.com </li></ul><ul><ul><li>Knowing user preferences or surfing habits user-specific advertising messages to the location of mobile users </li></ul></ul><ul><ul><li>Using GPS marketers can send location-sensitive messages can be sent </li></ul></ul>
  29. 29. Targeted Advertisement (cont.) <ul><li>Get paid to listen to advertisements—listen to a 10–second ad before you dial your cell phone, and get 2 minutes of free long-distance time </li></ul><ul><ul><li>Program flopped in the U.S. </li></ul></ul><ul><ul><li>SingTel of Singapore recouped its initial investment from ad revenues in about a year </li></ul></ul>
  30. 30. Targeted Advertisement (cont.) <ul><li>Advertisement strategies and guidelines—Wireless Advertising Association (waaglobal.org) is trying to establish wireless ad guidelines </li></ul><ul><ul><li>Opt-in ad programs involving mobile message alerts </li></ul></ul><ul><ul><li>Addressing issues like spamming and unethical strategies: </li></ul></ul><ul><ul><ul><li>Confirmed opt-ins </li></ul></ul></ul><ul><ul><ul><li>Personally identifiable information </li></ul></ul></ul><ul><ul><ul><li>Push advertising </li></ul></ul></ul>
  31. 31. Wireless Advertising in Action <ul><li>GPS helps target users from their location </li></ul><ul><ul><li>Vindigo.com—places to go and things to do in your area </li></ul></ul><ul><ul><li>GeePS.com—location-based start-up sent coupons to customers cell phones </li></ul></ul><ul><ul><li>Go2Online.com—locations-based Web domain helps mobile travelers find anything (e.g., the nearest oil change) </li></ul></ul>
  32. 32. Supporting Customers & Business Partners (Consumer Services) <ul><li>Using voice portals in marketing and customer service </li></ul><ul><ul><li>Use vendor’s voice portal to check status of deliveries to a job site </li></ul></ul><ul><ul><li>Service technicians provided with diagnostic information, enabling them diagnosis of difficult problems </li></ul></ul><ul><ul><li>Sales people check inventory status during a meeting to help close a sale </li></ul></ul>
  33. 33. Supporting Customers & Business Partners (Consumer Services) [cont.] <ul><li>Using mobile portals </li></ul><ul><ul><li>Mobile portal—a customer interaction channel that aggregates content and services for mobile users </li></ul></ul><ul><ul><li>Portals charge for their services (per service or monthly fee): </li></ul></ul><ul><ul><ul><li>Public mobile portals (e.g., Imode in Japan) </li></ul></ul></ul><ul><ul><ul><li>Corporate portals </li></ul></ul></ul><ul><ul><ul><ul><li>Serve a corporation ’s customers and/or suppliers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>E.g., major airline portals </li></ul></ul></ul></ul>
  34. 34. Supporting Mobile Employees <ul><li>Smartphones and hand-held devices </li></ul><ul><li>Wearable wireless devices—m obile wireless computing devices for employees who work on buildings and other difficult-to-climb places </li></ul><ul><ul><li>Cameras Screen </li></ul></ul><ul><ul><li>Keyboard Touch-panel display </li></ul></ul>
  35. 35. Supporting Mobile Employees (cont.) <ul><li>Job dispatch </li></ul><ul><ul><li>Transportation (delivery of food, oil, newspapers, cargo, courier services, tow trucks) </li></ul></ul><ul><ul><li>Taxis (already in use in Korea and Singapore) </li></ul></ul><ul><ul><li>Utilities (gas, electricity, phone, water) </li></ul></ul><ul><ul><li>Field service (computer, office equipment, home repair) </li></ul></ul><ul><ul><li>Health care (visiting nurses, doctors, social services) </li></ul></ul><ul><ul><li>Security (patrols, alarm installation) </li></ul></ul>
  36. 36. Supporting Mobile Employees (cont.) <ul><li>Sales force automation (SFA) tools </li></ul><ul><ul><li>Integrate software aimed at m-commerce applications </li></ul></ul><ul><ul><li>Equipped with smartphones providing easy access to customer data at the central office </li></ul></ul><ul><ul><ul><li>Contact management information </li></ul></ul></ul><ul><ul><ul><li>Product and spare part availability </li></ul></ul></ul><ul><ul><ul><li>Deal tracking </li></ul></ul></ul>
  37. 37. Non-Internet Intrabusiness Applications <ul><li>Wireless networking used for item picking in warehouses </li></ul><ul><li>Delivery and order status updates </li></ul><ul><li>Online dispatching </li></ul><ul><ul><li>Online diagnosis support from remote locations </li></ul></ul><ul><ul><li>Parts ordering/inventory queries </li></ul></ul>
  38. 38. Non-Internet Intrabusiness Applications (cont.) <ul><li>Mobile shop-floor quality control systems enable </li></ul><ul><ul><li>Voice reports by inspectors </li></ul></ul><ul><ul><li>Data collection from facilities </li></ul></ul><ul><ul><li>Transmission to a central processor </li></ul></ul><ul><li>Salespeople connect to corporate networks </li></ul><ul><li>Remote database queries </li></ul>
  39. 39. Exhibit 8.9 Automated Wireless Workflow Applications
  40. 40. Internet-Based Intrabusiness Applications <ul><li>Applications implemented inside enterprises, some examples: </li></ul><ul><ul><li>Sonera (Finland): electronic funds transfer (EFT) of paychecks </li></ul></ul><ul><ul><li>Chicago’s United Center: inventory can be taken in a matter of hours </li></ul></ul><ul><ul><li>FedEx and UPS: access Web, e-mail, databases, intranets, etc. </li></ul></ul>
  41. 41. Internet-Based Intrabusiness Applications (cont.) <ul><ul><li>Bertelsmann AG: gives junior-level executives wireless access to a company portal, JuniorNet, accessible from almost anywhere </li></ul></ul><ul><ul><li>Kemper Insurance Company: lets property adjusters report from the scene of an accident </li></ul></ul><ul><ul><li>U.S. Internal Revenue Service: equipping field employees with mobile devices that allows audits to be conducted anywhere, anytime </li></ul></ul>
  42. 42. Exhibit 8.10 Intelligent Office Connected by Wireless LAN
  43. 43. Mobile B2B and Supply Chain Applications <ul><li>Both sell-side and buy-side of ERP </li></ul><ul><li>Unified messaging makes user’s device less of an issue </li></ul><ul><ul><li>Telemetry drives supply chain efficiency and productivity through automation of: </li></ul></ul><ul><ul><ul><li>Data capture </li></ul></ul></ul><ul><ul><ul><li>Improved billing timeliness and accuracy </li></ul></ul></ul><ul><ul><ul><li>Reduced overhead </li></ul></ul></ul><ul><ul><ul><li>Increased customer satisfaction </li></ul></ul></ul><ul><ul><li>Collaboration among members of the supply chain is facilitated by mobile capabilities </li></ul></ul>
  44. 44. Mobile Consumer and Personal Service Applications <ul><li>Mobile gaming devices </li></ul><ul><ul><li>PDAs (Handspring’s Visor) with Flash RAM card </li></ul></ul><ul><ul><li>Nintendo’s Game Boy Advance </li></ul></ul><ul><ul><li>Sony’s PocketStation </li></ul></ul><ul><ul><li>Sega’s portable device connected to Dreamcast </li></ul></ul><ul><li>Mobile gambling </li></ul><ul><ul><li>Germany’s online lottery company fluxx.com available via mobile terminals </li></ul></ul><ul><ul><li>Hong Kong, betting on horse races via cell phones is popular </li></ul></ul>
  45. 45. Mobile Consumer and Personal Service Applications (cont.) <ul><li>Mobile entertainment </li></ul><ul><ul><li>Music </li></ul></ul><ul><ul><li>Video—real-time streaming video (packetvideo.com) </li></ul></ul><ul><li>Hotels—hotel guests equipped with Bluetooth-enabled mobile devices are instantly recognized </li></ul><ul><li>Intelligent homes and appliances </li></ul>
  46. 46. Exhibit 8.13 Intelligent Home Connected by Wireless LAN
  47. 47. Mobile Consumer and Personal Service Applications (cont.) <ul><li>Wireless telemedicine—use of mobile telecommunications infrastructures and multimedia technologies to provide medical information and deliver health care services remotely </li></ul><ul><li>Other services for consumers </li></ul><ul><ul><li>Providing news, weather, and sports reports </li></ul></ul><ul><ul><li>Online language translations </li></ul></ul><ul><ul><li>Information bout tourist attractions (hours, prices) </li></ul></ul><ul><ul><li>Emergency services </li></ul></ul>
  48. 48. Mobile Consumer and Personal Service Applications (cont.) <ul><li>Non-Internet consumer applications </li></ul><ul><ul><li>Smart cards used in transportation </li></ul></ul><ul><ul><ul><li>“Contactless” cards ( proximity cards ) used to pay bus and subway fares and road tolls </li></ul></ul></ul><ul><ul><li>Amplified remote-sensing cards have an RF (radio frequency) of up to 30 meters used for toll collection </li></ul></ul>
  49. 49. Location-Based Commerce <ul><li>Location-based commerce (L-commerce)—e -commerce applications provided to customers based on a user’s specific location </li></ul><ul><li>Location-based technologies </li></ul><ul><ul><li>Global positioning systems—a wireless system that uses satellites to enable users to determine their position anywhere on the earth </li></ul></ul><ul><ul><li>Geographical information systems (GIS)—relates longitude and latitude of GPS into place or address (mapinfo.com) </li></ul></ul><ul><ul><li>GPS on handsets—stand-alone units for tracking applications </li></ul></ul>
  50. 50. Exhibit 8.14 Location-Based Services Involving Maps
  51. 51. Exhibit 8.15 GPS System
  52. 52. L-Commerce Applications (cont.) <ul><li>E-911— Calls from cellular phones to providers of emergency services </li></ul><ul><ul><li>Wireless carriers must provide feature that allows them to identify number and location of the user </li></ul></ul><ul><ul><li>Mobile 911 calls must be forwarded immediately to the appropriate agency </li></ul></ul><ul><li>Automatic crash notification (ACN)—device (now experimental) that will automatically notify police of a vehicular accident </li></ul>
  53. 53. Telematics and Telemetry Applications <ul><li>Telematics—integration of computers and wireless communications to improve information flow using the principles of telemetry </li></ul><ul><ul><li>GM OnStar system—cellular phone and PDA are integrated to provide personal information management, mobile Internet services, entertainment on the vehicle vehicle dashboard </li></ul></ul><ul><ul><li>Sophisticated text-to-speech and voice recognition capabilities minimize driver distraction </li></ul></ul>
  54. 54. Telematics and Telemetry Applications (cont.) <ul><li>Use as a remote vehicle self-diagnostics tool </li></ul><ul><ul><li>Daimler-Chrysler and Volvo experimented with installation of GSM chip sets in cars </li></ul></ul><ul><ul><ul><li>Monitor performance and to provide an early warning system for potential problems </li></ul></ul></ul><ul><ul><ul><li>Chip sends a message to the manufacturer indicating what the problem is </li></ul></ul></ul><ul><ul><ul><li>Manufacturer’s system analyzes various data and provides a fix (via a software tool) </li></ul></ul></ul><ul><ul><li>Developing faults found before they become critical and continuous operation of the car can be ensured </li></ul></ul>
  55. 55. Barriers to L-Commerce <ul><li>The accuracy of some of the location technologies </li></ul><ul><li>The cost-benefit justification </li></ul><ul><li>M-spam </li></ul><ul><li>The bandwidth of GSM networks </li></ul>
  56. 56. Limitations of M-Commerce <ul><li>Usability problem </li></ul><ul><ul><li>Usability of a site is critical to attract attention and retain user stickiness </li></ul></ul><ul><ul><li>Effectiveness, efficiency, satisfaction </li></ul></ul><ul><ul><li>Some mobile devices are found to be ineffective </li></ul></ul><ul><ul><li>Customers want to find exactly what they are looking for, easily and quickly, not possible in the 2G text-based environment </li></ul></ul><ul><ul><li>More and faster multimedia will be available as 3G spreads </li></ul></ul>
  57. 57. Technical Limitations <ul><li>Lack of standardized security protocol </li></ul><ul><ul><li>Security methodology needs to be incorporated in mobile </li></ul></ul><ul><ul><li>Customer confidence is low </li></ul></ul><ul><li>Insufficient bandwidth </li></ul><ul><ul><li>Limits the extent to which mobility can be viewed commodity </li></ul></ul><ul><li>3G licenses </li></ul><ul><ul><li>Auctioned by governments </li></ul></ul><ul><ul><li>Certain countries cannot be served by these devices </li></ul></ul><ul><li>Transmission & power consumption limitations </li></ul><ul><ul><li>Multipath interference </li></ul></ul><ul><ul><li>Weather and terrain problems </li></ul></ul><ul><ul><li>Distance-limited connections </li></ul></ul>
  58. 58. Technical Limitations (cont.) <ul><li>WAP limitations </li></ul><ul><ul><li>Speed—in 2002 connections to WAP sites are still too slow </li></ul></ul><ul><ul><li>Cost—fees for mobile phone users are still too high </li></ul></ul><ul><ul><li>Accessibility—as of spring 2002, fewer than 50,000 WAP-accessible sites worldwide (must be written in WML) </li></ul></ul>
  59. 59. Technical Limitations (cont.) <ul><li>Potential health hazards </li></ul><ul><ul><li>Fear of radiation </li></ul></ul><ul><ul><li>Unsafe to drive and use wireless phone </li></ul></ul><ul><ul><li>Cell phones may interfere with sensitive medical devices (pacemakers) </li></ul></ul><ul><ul><li>Lawsuits relating to the potential health hazards of wireless devices have already been filed—public is advised to adopt a precautionary approach in using mobile phones (earphone device) </li></ul></ul>
  60. 60. Implementing M-Commerce <ul><ul><li>Basic (fixed) fees </li></ul></ul><ul><ul><li>Point-of-traffic fees </li></ul></ul><ul><ul><li>Transaction fees </li></ul></ul><ul><ul><li>Content and service charges </li></ul></ul><ul><ul><li>Payment clearing </li></ul></ul><ul><ul><li>Hosting fees </li></ul></ul><ul><ul><li>Certification (PKI) fees </li></ul></ul><ul><li>Revenue models </li></ul>
  61. 61. Implementing M-Commerce (cont.) <ul><li>Consumer confidence and trust </li></ul><ul><ul><li>Customers love free or inexpensive services like those offered by iMode </li></ul></ul><ul><ul><li>Customers not willing to pay large amounts of money for services unless they trust the product/vendor </li></ul></ul><ul><ul><li>Confidence should increase with reliable payment mechanisms </li></ul></ul><ul><ul><li>Research is being conducted in this area </li></ul></ul>
  62. 62. Implementing M-Commerce (cont.) <ul><li>M-commerce value chain </li></ul><ul><ul><li>Involves many partners </li></ul></ul><ul><ul><li>Success depends on </li></ul></ul><ul><ul><ul><li>Coordination among participants </li></ul></ul></ul><ul><ul><ul><li>Sufficient compensation for all </li></ul></ul></ul><ul><ul><li>Use ASP to deliver m-commerce or </li></ul></ul><ul><ul><li>Large companies contract other vendors to complement their services </li></ul></ul>
  63. 63. Summary <ul><li>Characteristics and attributes of m-commerce </li></ul><ul><li>Drivers of m-commerce </li></ul><ul><li>Supporting technologies </li></ul><ul><li>Wireless standards and technologies </li></ul><ul><li>Finance and marketing applications </li></ul><ul><li>Intrabusiness applications </li></ul><ul><li>B2B applications </li></ul><ul><li>Consumer applications </li></ul><ul><li>Non-Internet applications </li></ul><ul><li>L-commerce </li></ul><ul><li>Limitations of m-commerce </li></ul>
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