Prentice Hall, 2003 1 Chapter 12 Building E-Commerce Applications and Infrastructure.
Prentice Hall, 2002 1 Chapter 19 Mobile Commerce.
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Transcript of Prentice Hall, 2002 1 Chapter 19 Mobile Commerce.
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Prentice Hall, 2002 1
Chapter 19
Mobile Commerce
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Prentice Hall, 2002 2
Learning Objectives
Describe the characteristics and attributes of m-commerceDescribe the drivers of m-commerceUnderstand the supportive technologies and their capabilitiesDescribe the wireless standards and transmission networks
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Prentice Hall, 2002 3
Learning Objectives (cont.)
Describe applications of m-commerce to finance, marketing, and customer service
Describe the intra-enterprise applications of m-commerceDescribe B2B and supply chain applications of m-commerceDescribe consumer and personal applications of m-commerce
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Prentice Hall, 2002 4
Learning Objectives (cont.)
Describe some non-Internet m-commerce applicationsDescribe location-based commerce (L-commerce)Describe the major limitations and implementation issues of m-commerce
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Prentice Hall, 2002 5
Illustrative Examples
NEXTBUS—bus riders in San FranciscoInternet-enabled cell phone or PDA helps:
Find estimated arrival time at each stop, in real timeSoon location-based advertisements will pop up—you have time to get a cup of coffee before the bus arrives—Starbuck’s is 200 feet to the right
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Illustrative Examples (cont.)
DINE ONE ONE—home delivery from the restaurant in the San Francisco area
100 participating restaurantsFood needs to be delivered hotThe solution
Drivers equipped with AT&T’s PocketNet service—portable smartphonesDispatchers locate drivers, notify where to pick up and deliver food Better service and driver utilization
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Illustrative Examples (cont.)
CELL PHONE SERVICES—Smart Search in Hong Kong
Shopping guidesMaps and transportationTicketingNews and reportsGamblingPersonalized movie service
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Hardware Generations
DefinitionsAny transaction with a monetary value conducted via a mobile telecommunications networkAny e-commerce transaction in a wireless environmentCan be done via
InternetPrivate communication linesSmart cardsOther infrastructures
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Hardware Generations (cont.)
Terminology and generations1G: 1979-1992 wireless technology2G: current wireless technology2.5G: interim technology accommodates graphics3G: 3rd generation technology (2001-2005) supports rich media (video clips)4G: next generation (2006-2010)GPRS: General Packet Radio Services
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Terminology and Standards
GPS: Satellite-based Global Positioning SystemGSM: Global System of Mobile CommunicationPDA: Personal Digital AssistantSMS: Short Message Service
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Terminology and Standards (cont.)
MMS: Multimedia Messaging ServiceEMS: Enhanced Messaging ServiceUMTS: Universal Mobile Telecommunications SystemWAP: Wireless Application ProtocolSMARTPHONES
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Attributes of Mobile Communication
Attributes of m-commerce and its economic advantages
Mobility—users carry cell phones or other mobile devicesBroad reachability—people can be reached at any timeUbiquity—easier information access in a real-time environment
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Attributes of Mobile Communication (cont.)
Attributes of m-commerce and its economic advantages (cont.)
Convenience—devices that store data and have Internet, intranet, extranet connectionsLocalization of products and services—knowing where the user is located at any given time
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Figure 19-1Characteristics of M-Commerce
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The Benefits
Local-based services offer advantagesVendors and carriers differentiate themselves in the marketplaceEnd users can use Web-enabled mobile phone or PDA to access informationInstant connectivity to the InternetPersonalization is available although limited
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The Drivers
Widespread availability of devicesNo need for a PCHandset is becoming a cultureVendors’ pushDeclining pricesImprovement of bandwidthExplosion of EC in generalReduces the digital divide
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Mobile Computing Infrastructure
Cellular (mobile) phonesAttachable keyboardPDAsInteractive pagers
ScreenphonesE-mail solutionsOther devicesConvergence
Hardware
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Figure 19-2Nokia 9290 Communicator
Source: www.nokia.com.
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Figure 19-3Palm VIIx Handheld
Source: www.palm.com.
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Mobile ComputingInfrastructure (cont.)
SoftwareMicrobrowserMobile client operating system (OS)Mobile application user interfaceBack-end legacy application softwareApplication middlewareWireless middleware
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Mobile ComputingInfrastructure (cont.)
Networks and accessWireless transmission media
MicrowaveSatellitesRadioInfraredCellular radio technology
Wireless systems
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Figure 19-4Wireless System (Delta Airlines)
Source: ibm.com/software, and delta.com (2000).
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Wireless Technology, Standards, and Security
TechnologyMicrobrowsersBluetoothWireless local area networks (WLANs)
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Wireless Standards
Wireless standardsTime-division multiple access (TMDA)CDMA OneCode division multiple access (CDMA)Wireless Application Protocol (WAP)W-CDMA (wideband)
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Wireless Standards (cont.)
Wireless standardsSubscriber identification module (SIM)Wireless markup language (WML)Voice XML (VXML)Enhanced data rates for global evaluation (EDGE)Universal mobile telecommunications system (UMTS)
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Figure 19-5Services and Applications of 3G
Source: NTT DoCoMo publicity
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Wireless Security
Wireless security issuesVirusesSmart card security solutionsBack-end security solutions—public key infrastructure (PKI) and M-CERT
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Voice Systems for M-Commerce
Hands-free and eyes-free operations increase:
ProductivitySafetyEffectiveness
Disabled people can use voice data for various tasks
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Voice Systems for M-Commerce (cont.)
Voice terminals are portable2 ½ times faster than typingFewer errorsVoice portals
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M-Commerce Applications
Wireless access provided to existing B2C applicationsExisting wireless intrabusiness and CRM applications enhancedLocation-based applicationsSMS-based applications
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Mobile Financial Applications
Swedish Postal Bank
Dagens Industri
Citibank
Japanese banks
Hoover’s wireless (hoover.com)
ASB Bank (New Zealand)Charles SchwabE*TRADESEB in Sweden
Micropayments—wireless Web wallet and bill payments
Examples of financial applications
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Figure 19-6Bill Payments by Cell Phone
Source: Courtesy of Nokia at nokia.com.
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Mobile Marketing, Advertisement,and Customer Service
Shopping from wireless devices (buy.com)
In 5-10 years most businesses will be wirelessOnline stores will become showroomsUsing voice portals in marketing and customer service
Check on delivery status while away from officeProvide service technicians with diagnostic informationSalespeople check on inventory status during meeting to help close a sale
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Figure 19-7Mobile Shopping Supported by CRM
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Mobile Marketing, Advertisement,and Customer Service (cont.)
Targeted advertisementPersonalization of services and enhanced user interface for wireless Web pagesGet paid to listen to advertisementsAdvertisement strategies and guidelines
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Mobile Marketing, Advertisement, and Customer Service (cont.)
GPS helps target users from their locationVindigo.com—places to go and things to do in your areaC5Solutions.com
Delivers location specific, personalized, specific marketing messages to customersReporting capability on trends and patternsEnterprise-ready scaleable architecture
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Mobile Marketing, Advertisement, and Customer Service (cont.)
GPS helps target users from their location (cont.)
GeePS.com—location-based start-up sends coupons to customers cell phonesGo2Online.com—locations-based Web domain helps mobile travelers find anything (e.g., the nearest oil change)
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Figure 19-8Wireless CRM
Source: Publicly distributed information from Amdocs Corp. St. Louis, MO (Dec. 2000).
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Mobile Applications in the Enterprise
Supporting mobile employees (enterprise solutions)
Smartphones and hand-held devicesEmployees who work on buildings and electrical poles use wearable wireless devices
CamerasScreenKeyboardTouch-panel display
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Mobile Applications in the Enterprise (cont.)
Non-Internet applications such as:Wireless networking used for inventory picking in warehousesDelivery and order status updatesService people in the field
DispatchingOnline diagnosis support from remote locationsParts ordering/inventory queriesSalespeople connect to corporate networksRemote database queries
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Figure 19-9Automated Workflow Applications
Source: Copyright 2000 MDSI Mobile Data Solutions, Inc. used with permission of MDSI.
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Mobile Applications in the Enterprise (cont.)
Web-based applications (intrabusiness m-commerce), some examples:
Sonera (Finland): electronic funds transfer (EFT) of paychecksChicago’s United Center: inventory can be taken in a matter of hoursFedEx and UPS: access Web, e-mail, databases, intranets, etc.
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Mobile Applications in the Enterprise (cont.)
Job dispatchTransportation (food, oil, newspapers, etc.)Taxis in Korea and Singapore
Utilities (gas, electric, etc.)Field service (computer, office equipment)Health care (visiting nurses, doctors)Security (patrols, alarm installation)Mobile sales force automationIntelligent offices
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Figure 9-10Intelligent Office
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Supporting the Supply Chain and B2B
Mobile supply chain integrationBoth sell-side and buy-side of ERPUnified messaging makes user’s device less of an issue
Collaboration among members of the supply chain is facilitated by mobile capabilitiesTelemetry drives supply chain efficiency and productivity through automation of:
Data captureImproved billing timeliness and accuracyReduced overheadIncreased customer satisfaction
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Supporting Consumer and Personal Services
Mobile gamesMobile musicMobile videoMobile electronic petsMobile betting and gambling
AuctionsTracking athletesHotelsIntelligent homes and appliancesWireless telemedicineOther services for consumers
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Figure 19-11Intelligent Home
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L-Commerce Applications
Location-based commerce (L-commerce)—applications are specific to user’s locationGlobal positioning systems—satellite-based wireless system enables user to find their location anywhere on earthGeographical information systems (GIS) and GPSGPS on handsets
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L-Commerce Applications (cont.)
E-911 emergency cell phone callsWireless carriers must provide feature that allows them to identify number and location of the userMobile 911 calls must be forwarded immediately to the appropriate agency
Telematics—integration of:Wireless communicationsVehicle monitoring systemsVehicle location devices
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Figure 19-12Location-Based Services Involving Maps
Source: Based on mapinfo.com
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Non-Internet Applications
Smart cardsContactless (proximity) cards used for:
Bus and subway faresRoad tollsVending machines
Amplified remote-sensing cards for toll collectionVehicles do not have to stop at toll booths
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Limitations of M-Commerce
Usability problemEffectivenessEfficiencySatisfaction
Lack of standardized security protocol
Security methodology needs to be incorporated in mobileCustomer confidence is low
Insufficient bandwidth
Limits the extent to which mobility can be viewed commodity
3G licensesAuctioned by governmentsCertain countries cannot be served by these devices
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Limitations of M-Commerce (cont.)
Transmission limitations
Multipath interferenceWeather and terrain problems
Power consumptionBandwidth increasesPower consumption increasesReduces battery life
Limitations of the 2001 WAP applications
Loading times too slow to keep users interested
Wireless and health hazards
Fear of radiationUnsafe to drive and use wireless phone
Disappointed users
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Implementing M-Commerce
Basic (fixed) feesPoint-of-traffic feesTransaction feesContent and service charges
Payment clearingHosting feesCertification (PKI) fees
Revenue models—several sources:
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Implementing M-Commerce (cont.)
Consumer confidence and trustCustomers love free or inexpensive services like those offered by iModeCustomers not willing to pay large amounts of money for services unless they trust the product/vendorConfidence should increase with reliable payment mechanismsResearch is being conducted in this area
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Implementing M-Commerce (cont.)
M-commerce value chainInvolves many partnersSuccess depends on
Coordination among participantsSufficient compensation for all
Use ASP to deliver m-commerce orLarge companies contract other vendors to complement their services
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Managerial Issues
Timing—careful m-commerce strategyWhich applications first?
Location-based advertisement may be attractive, but its effectiveness is unknownCare should be taken in committing sources to m-commerce; but, don’t miss the boat
Which system to use?—multiplicity of:StandardsDevices Supporting hardware and software