Ec2009 ch08 mobile commerce and pervasive computing
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The document discusses mobile commerce (m-commerce) and pervasive computing. It defines m-commerce and describes key characteristics like mobility and ubiquity. Technologies enabling m-commerce include wireless networks, mobile devices, location services and applications. Examples are provided for financial, advertising, retail and organizational uses of m-commerce. Pervasive computing embeds technology in everyday objects and environments. Applications discussed include smart homes, appliances and cars that are networked and enhanced through embedded computing.
Ec2009 ch08 mobile commerce and pervasive computing
- 1. Chapter 8 Mobile Commerce and Pervasive Computing
- 2. 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.
- 3. 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.
- 4. 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.
- 5. 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
- 6. 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
- 7. 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
- 9. 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
- 10. 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
- 11. 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
- 12. 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
- 13. 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
- 14. Mobile Commerce Generations (cont.) 4G: The expected next generation of wireless technology Personal digital assistant (PDA): A handheld wireless computer
- 15. 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
- 16. 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
- 17. 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
- 18. 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
- 19. 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
- 21. Mobile Commerce (cont.) Drivers of m-commerce Widespread availability of devices No need for a PC The handset culture Vendors’ push Improvement of bandwidth
- 22. Mobile Commerce (cont.) M-commerce value chain Transport Enabling services Transaction support Presentation services Personalization support User applications Content aggregators
- 23. 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
- 24. 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)
- 25. 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
- 26. Mobile Computing Infrastructure (cont.) Software Microbrowsers Wireless software designed with limited bandwidth and limited memory requirements Mobile-client operating system
- 27. 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
- 28. 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
- 29. 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
- 30. Mobile Computing Infrastructure (cont.) Mobile networks Subscriber Identification Module (SIM) card: An extractable storage card used for identification, transaction processing, and the like
- 31. Mobile Computing Infrastructure (cont.)
- 32. 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)
- 33. 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
- 34. 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
- 35. 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
- 36. 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
- 37. 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
- 38. Mobile Computing Infrastructure (cont.)
- 39. 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
- 40. 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
- 41. 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
- 42. 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
- 43. 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
- 44. 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
- 45. Mobile Financial Applications: Bill Payments
- 46. KBank MPay
- 47. KBank MPay
- 48. 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
- 49. 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)
- 50. 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
- 51. 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
- 52. 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
- 53. Mobile Advertising and Content Providing (cont.) Mobile portal: A customer interaction channel that aggregates content and services for mobile users
- 54. Mobile Intrabusiness and Applications Support for mobile employees Mobile employees need the same corporate data available to employees working inside the company’s offices
- 55. Mobile Intrabusiness and Applications (cont.) Wearable devices: Mobile wireless computing devices for employees who work on buildings and other difficult-to-climb places
- 56. Mobile Intrabusiness and Applications (cont.) Examples of wearable devices Cameras Screen Keyboard Touch-panel display
- 57. 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
- 58. 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
- 59. 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
- 60. 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
- 61. 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
- 62. 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
- 63. Mobile B2B and Supply Chain Applications (cont.) Wireless telemetry is an integrated messaging system that combines: wireless communications vehicle monitoring systems vehicle location devices
- 64. 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
- 65. 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
- 66. Mobile Game
- 67. 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
- 68. 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
- 69. 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
- 70. 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
- 71. 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
- 72. 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
- 73. 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
- 74. Location-Based Commerce (cont.) L-commerce basic services revolve around five key areas: Location Navigation Tracking Mapping Timing
- 75. 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
- 76. 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
- 77. GPS
- 78. 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
- 79. Location-Based Commerce (cont.)
- 80. Location-Based Commerce (cont.)
- 81. 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
- 82. Location-Based Commerce (cont.) Barriers to l-commerce Accuracy The cost-benefit justification The bandwidth of GSM networks Invasion of privacy
- 83. Pervasive Computing Pervasive computing: Invisible, everywhere computing that is embedded in the objects around us Also know as: ubiquitous computing embedded computing augmented computing
- 84. 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
- 85. RFID
- 86. RFID (cont.)
- 87. 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
- 88. 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
- 89. Pervasive Computing: Applications Smart homes—home automation systems support: Lighting Energy management Water control Home security and communications Home theater
- 90. 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)
- 91. 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
- 92. 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
- 93. 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
- 94. Smart Car
- 95. Pervasive Computing: Applications (cont.) Growing trend is connecting car microprocessors to mobile networks for support services including: Emergency assistance Driving directions E-mail
- 96. 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
- 97. Pervasive Computing: Applications (cont.) Personal Concierge, which plans entire trips Route Support Stolen Vehicle Tracking Remote Door Unlock Remote Diagnostics
- 98. 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
- 99. 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
- 100. 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
- 101. 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
- 102. 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
- 103. 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
- 104. Inhibitors and Barriers to L-Commerce Usability problem—three dimensions: Effectiveness Efficiency Satisfaction
- 105. 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
- 106. Inhibitors and Barriers to L-Commerce (cont.) Technical limitations Lack of a standardized security protocol Insufficient bandwidth Transmission and power consumption limitations WAP limitations
- 107. 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
- 108. Managerial Issues What’s our timetable? Which applications first? Is it real or just a buzzword? Which system to use?
- 109. 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
- 110. Summary (cont.) B2B applications Consumer applications Non-Internet applications L-commerce Pervasive computing Limitations of m-commerce