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Overview Ch. 7
Describe e-government to citizens (G2C) and to business (G2B)
Describe various e-government initiatives Discuss online publishing and e-books Describe e-learning and virtual universities Describe knowledge management and
dissemination Describe the processes involved in conducting
forward and reverse e-auctions Describe e-auction fraud and implementation
issues Analyze future directions of m-auctions
Chapter 8M-Commerce
Chapter 8M-Commerce
Learning Objectives
Describe the characteristics, attributes and drivers of m-commerce
Understand the supportive technologies and their capabilities
Describe the applications of m-commerce within organizations
Describe B2B and supply chain applications of m-commerce Describe consumer and personal applications of m-
commerce Describe location-based commerce
(l-commerce) Describe some implementation issues of m-commerce
M-Commerce Terminology
Generations 1G: 1979-1992 wireless technology 2G: current wireless technology; mainly
accommodates text 2.5G: interim technology accommodates
graphics 3G: 3rd generation technology (2001-2005)
supports rich media (video clips) 4G: will provide faster multimedia display
(2006-2010)
Specific Attributes of M-Commerce
Attributes of m-commerce and its economic advantages Mobility—users carry cell phones or other mobile
devices Broad reach—people can be reached at any time
Attributes of M-Commerce [2]
Value-added attributes of m-commerce Ubiquity—easier information access in real-time Convenience—devices that store data and have Internet,
intranet, extranet connections Instant connectivity—easy and quick connection to
Internet, intranets, other mobile devices, databases Personalization—preparation of information for individual
consumers Localization of products and services—knowing where
the user is located at any given time and match service to them
Characteristics of M-Commerce
The Drivers
Widespread availability of devices No need for a PC Handset culture Vendors’ push Declining prices Improvement of bandwidth Explosion of EC in general
Mobile Computing Infrastructure
Cellular (mobile) phones
Attachable keyboard PDAs Interactive pagers Other devices
Notebooks Handhelds Smartpads
Screenphones—a telephone equipped with color screen, keyboard, e-mail, and Internet capabilities
E-mail handhelds Wirelined—connected
by wires to a network
Hardware
Mobile Computing Infrastructure [2]
Unseen infrastructure requirements Suitably configured wireline or wireless WAN
modem Web server with wireless support Application or database server Large enterprise application server GPS locator used to determine the location of
mobile computing device carrier
Mobile Computing Infrastructure [3]
Software Microbrowser Mobile client operating system (OS) Bluetooth—a chip technology and WPAN standard that
enables voice and data communications between wireless devices over short-range radio frequency (RF)
Mobile application user interface Back-end legacy application software Application middleware Wireless middleware
Mobile Computing Infrastructure [4]
Networks and access Wireless transmission media
• Microwave• Satellites• Radio• Infrared• Cellular radio technology
Wireless systems
Wireless Standards and Security
M-commerce supported by Standards Security Voice systems
Wireless Standards
Wireless standards Time-division Multiple Access (TMDA) General Packet Radio Services (GPRS) Code Division Multiple Access (CDMA) CDMA One Global System of Mobile Communication (GSM) WLAN 802.11 (Wi-Fi) Wideband CDMA
Wireless Standards [2]
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
Subscriber Identification Module (SIM) Wireless Markup Language (WML) Voice XML (VXML) Enhanced Data Rates for Global Evaluation (EDGE) Universal Mobile Telecommunications System (UMTS) IPv6
Security Issues
VirusesSmart card security solutions
Voice communication can be intercepted by hackers
One solution is an embedded biometric add-onBack-end security solutions—public
key infrastructure (PKI) and M-CERT (mobile certification)
Voice Systems for M-Commerce
Hands-free and eyes-free operations increase productivity, safety, effectiveness
Disabled people can use voice data for various tasks
Voice terminals are portable2 ½ times faster than typingFewer errors
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
• Patients schedule doctors’ appointments
• Users request pick-up from FedEx
• Employees find information, select, or change benefits packages
• Electric utilities can respond to customers reporting power outages
Voice Portals
A Web site with audio interface, accessed by making a phone call
• Request information verbally from system that:– Retrieves the information– Translates it into a computer-generated voice reply– Tells you what you want to know
• Iping.com—reminder and notification service• Helps businesses find new customers
Mobile Financial Applications
Wireless electronic payment systems Mobile phones become secure, self-contained
purchasing tools capable of instantly authorizing payments over the cellular network for goods and services consumed
Micropayments Electronic payments for small-purchase
amounts (generally less than $10)
Mobile Financial Applications [2]
M-wallet (mobile wallet) a wireless wallet that enables cardholders to
make purchases with a single click from their wireless devices
Bill payments directly from cell phone via: Bank Credit card Prepaid arrangement
Bill Payments by Cell Phone
Mobile Shopping Supported by CRM
Targeted Advertisement
Personalization of services and enhanced user interface for wireless Web pages from barnesandnoble.com Knowing user preferences or surfing habits
user-specific advertising messages to the location of mobile users
Using GPS marketers can send location-sensitive messages can be sent
Targeted Advertisement [2]
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 Program flopped in the U.S. SingTel of Singapore recouped its initial
investment from ad revenues in about a year
Targeted Advertisement [2]
Advertisement strategies and guidelines—Wireless Advertising Association (waaglobal.org) is trying to establish wireless ad guidelines Opt-in ad programs involving mobile message
alerts Addressing issues like spamming and unethical
strategies:• Confirmed opt-ins• Personally identifiable information• Push advertising
Wireless Advertising in Action
GPS helps target users from their location Vindigo.com: places to go and things to do in your
area GeePS.com: location-based start-up sent coupons
to customers cell phones Go2Online.com: locations-based Web domain helps
mobile travelers find anything (e.g., the nearest oil change)
Supporting Customers & Business Partners (Consumer Services)
Using voice portals in marketing and customer service Use vendor’s voice portal to check status of
deliveries to a job site Service technicians provided with diagnostic
information, enabling them diagnosis of difficult problems
Sales people check inventory status during a meeting to help close a sale
Supporting Customers & Business Partners(Consumer Services) [2]
Using mobile portals Mobile portal—a customer interaction channel
that aggregates content and services for mobile users
Portals charge for their services (per service or monthly fee):
• Public mobile portals (e.g., Imode in Japan)• Corporate portals
– Serve a corporation ’s customers and/or suppliers– E.g., major airline portals
Supporting Mobile Employees
Smartphones and hand-held devicesWearable wireless devices
mobile wireless computing devices for employees who work on buildings and other difficult-to-climb places
• Cameras Screen• Keyboard Touch-panel display
Supporting Mobile Employees [2]
Job dispatch Transportation (delivery of food, oil, newspapers,
cargo, courier services, tow trucks) Taxis (already in use in Korea and Singapore) Utilities (gas, electricity, phone, water) Field service (computer, office equipment, home
repair) Health care (visiting nurses, doctors, social services) Security (patrols, alarm installation)
Supporting Mobile Employees [2]
Sales force automation (SFA) tools Integrate software aimed at m-commerce
applications Equipped with smartphones providing easy
access to customer data at the central office
• Contact management information• Product and spare part availability• Deal tracking
Mobile B2B and Supply Chain Applications
Both sell-side and buy-side of ERP Unified messaging makes user’s device less of
an issue Telemetry drives supply chain efficiency and productivity
through automation of:• Data capture
• Improved billing timeliness and accuracy
• Reduced overhead
• Increased customer satisfaction Collaboration among members of the supply chain is
facilitated by mobile capabilities
Mobile Consumer and Personal Service Applications
Mobile gaming devices PDAs (Handspring’s Visor) with Flash RAM card Nintendo’s Game Boy Advance Sony’s PocketStation Sega’s portable device connected to Dreamcast
Mobile gambling Germany’s online lottery company fluxx.com available via
mobile terminals Hong Kong, betting on horse races via cell phones is
popular
Mobile Consumer and Personal Service Applications [2]
Mobile entertainment Music Video—real-time streaming video
(packetvideo.com)Hotels—hotel guests equipped with
Bluetooth-enabled mobile devices are instantly recognized
Intelligent homes and appliances
Mobile Consumer and Personal Service Applications [3]
Wireless telemedicine use of mobile telecommunications infrastructures and
multimedia technologies to provide medical information and deliver health care services remotely
Other services for consumers Providing news, weather, and sports reports Online language translations Information bout tourist attractions (hours, prices) Emergency services
Location-Based Commerce
Location-based commerce (L-commerce) E-commerce applications provided to customers based
on a user’s specific locationLocation-based technologies
Global positioning systems: a wireless system that uses satellites to enable users to determine their position anywhere on the earth
Geographical information systems (GIS): relates longitude and latitude of GPS into place or address (mapinfo.com)
GPS on handsets: stand-alone units for tracking applications
Location-Based Services Involving Maps
GPS System
L-Commerce Applications
E-911 Calls from cellular phones to providers of emergency
services• Wireless carriers must provide feature that allows them to
identify number and location of the user• Mobile 911 calls must be forwarded immediately to the
appropriate agency
Automatic crash notification (ACN) Device (now experimental) that will automatically
notify police of a vehicular accident
Telematics and Telemetry Applications
Telematics Integration of computers and wireless
communications to improve information flow using the principles of telemetry
• GM OnStar system—cellular phone and PDA are integrated to provide personal information management, mobile Internet services, entertainment on the vehicle vehicle dashboard
• Sophisticated text-to-speech and voice recognition capabilities minimize driver distraction
Telematics and Telemetry Applications [2]
Use as a remote vehicle self-diagnostics tool Daimler-Chrysler and Volvo experimented with installation
of GSM chip sets in cars
• Monitor performance and to provide an early warning system for potential problems
• Chip sends a message to the manufacturer indicating what the problem is
• Manufacturer’s system analyzes various data and provides a fix (via a software tool)
Developing faults found before they become critical and continuous operation of the car can be ensured
Barriers to L-Commerce
The accuracy of some of the location technologies
The cost-benefit justificationM-spamThe bandwidth of GSM networks
Limitations of M-Commerce
Usability problem Usability of a site is critical to attract attention
and retain user stickiness Effectiveness, efficiency, satisfaction Some mobile devices are found to be ineffective Customers want to find exactly what they are
looking for, easily and quickly, not possible in the 2G text-based environment
More and faster multimedia will be available as 3G spreads
Technical Limitations
Lack of standardized security protocol Security methodology
needs to be incorporated in mobile
Customer confidence is low
Insufficient bandwidth Limits the extent to
which mobility can be viewed commodity
3G licenses Auctioned by governments Certain countries cannot
be served by these devices Transmission & power
consumption limitations Multipath interference Weather and terrain
problems Distance-limited
connections
Technical Limitations [2]
WAP limitations Speed: in 2002 connections to WAP sites are
still too slow Cost: fees for mobile phone users are still too
high Accessibility: as of spring 2002, fewer than
50,000 WAP-accessible sites worldwide (must be written in WML)
Technical Limitations [3]
Potential health hazards Fear of radiation Unsafe to drive and use wireless phone Cell phones may interfere with sensitive
medical devices (pacemakers) 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)
Implementing M-Commerce
Basic (fixed) fees Point-of-traffic
fees Transaction fees Content and
service charges
Payment clearing Hosting fees Certification (PKI)
fees
Revenue models
Implementing M-Commerce [2]
Consumer confidence and trust Customers love free or inexpensive services
like those offered by iMode Customers not willing to pay large amounts of
money for services unless they trust the product/vendor
Confidence should increase with reliable payment mechanisms
Research is being conducted in this area
Implementing M-Commerce [3]
M-commerce value chain Involves many partners Success depends on
• Coordination among participants• Sufficient compensation for all
Use ASP to deliver m-commerce or Large companies contract other vendors to
complement their services
Summary
Characteristics and attributes of m-commerce
Drivers of m-commerce Supporting technologies Wireless standards and
technologies Finance and marketing
applications
Intrabusiness applications
B2B applications Consumer applications Non-Internet
applications L-commerce Limitations of m-
commerce
Exercise
Discuss the benefits of voice-based systems in m-commerce.
Discuss a mobile application that supports customers or provides a personal service.
Discuss one of the limitations of m-commerce. What are some options to decrease the importance of this limitation?
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