Chapter 10

Chapter 10Chapter 10

Mobile Commerce Mobile Commerce

and Pervasive Computingand Pervasive Computing

© Prentice Hall 2004© Prentice Hall 2004 22

Learning ObjectivesLearning Objectives

1.1. Discuss the characteristics and Discuss the characteristics and attributes of m-commerce.attributes of m-commerce.

2.2. Describe the drivers of m-Describe the drivers of m-commerce.commerce.

3.3. Understand the technologies that Understand the technologies that support m-commerce.support m-commerce.

4.4. Describe wireless standards and Describe wireless standards and transmission networks.transmission networks.


Learning Objectives Learning Objectives (cont.)(cont.)

5.5. Discuss m-commerce applications Discuss m-commerce applications in finance, advertising, and in finance, advertising, and provision of content.provision of content.

6.6. Describe the applications of m-Describe the applications of m-commerce within organizations.commerce within organizations.

7.7. Understand B2B and supply chain Understand B2B and supply chain applications of m-commerce.applications of m-commerce.

8.8. Describe consumer and personal Describe consumer and personal applications of m-commerce.applications of m-commerce.


Learning Objectives Learning Objectives (cont.)(cont.)

9.9. Describe some non-Internet m-Describe some non-Internet m-commerce applications.commerce applications.

10.10. Describe location-based commerce.Describe location-based commerce.

11.11. Discuss the key characteristics and Discuss the key characteristics and current uses of pervasive current uses of pervasive computing.computing.

12.12. Describe the major inhibitors and Describe the major inhibitors and barriers of m-commerce.barriers of m-commerce.


Nextbus: Nextbus: A Superb Customer A Superb Customer

ServiceServiceThe ProblemThe Problem

San Francisco buses have San Francisco buses have difficulty keeping up with the difficulty keeping up with the posted schedule, especially posted schedule, especially during rush hours during rush hours

The scheduled times become The scheduled times become meaningless meaningless


Nextbus Nextbus (cont.)(cont.)

The SolutionThe SolutionSan Francisco implemented a San Francisco implemented a system called NextBus system called NextBus ((nextbus.comnextbus.com))

The system tracks public The system tracks public transportation buses in transportation buses in real timereal time

NextBus calculates the estimated NextBus calculates the estimated arrival time of the bus to each arrival time of the bus to each bus stop on the route bus stop on the route



Arrival times are displayed in real Arrival times are displayed in real time on:time on:

Internet-enabled wireless device Internet-enabled wireless device

The Internet and on a public screen The Internet and on a public screen at each bus stop at each bus stop

GPS satellites let the NextBus GPS satellites let the NextBus information center know where a information center know where a bus is located making it possible bus is located making it possible to calculate arrival timesto calculate arrival times





The ResultsThe ResultsWorries about missing the bus Worries about missing the bus are diminished are diminished

A bus company can also use the A bus company can also use the system to improve scheduling, system to improve scheduling, arrange for extra buses when arrange for extra buses when needed, and make its operations needed, and make its operations more efficientmore efficient



What we can learn…What we can learn…location-based e-commerce, a major location-based e-commerce, a major part of mobile commerce part of mobile commerce

EC services are provided to customers EC services are provided to customers wherever they are located wherever they are located

exemplifies exemplifies pervasive computing—pervasive computing—services are seamlessly blended into services are seamlessly blended into the environment without the user the environment without the user being aware of the technology behind being aware of the technology behind the scenes the scenes


Mobile CommerceMobile Commerce

Mobile commerce (m-commerce, Mobile commerce (m-commerce,

m-business):m-business): Any e-commerce Any e-commerce done in a wireless environment, done in a wireless environment, especially via the Internetespecially via the Internet

A natural extension of e-business A natural extension of e-business

Mobile devices create an Mobile devices create an opportunity to deliver new opportunity to deliver new services to existing customersservices to existing customers


Mobile Commerce Mobile Commerce GenerationsGenerations

1G:1G: The first generation of wireless The first generation of wireless technology, which was analog basedtechnology, which was analog based

2G:2G: The second generation of digital The second generation of digital wireless technology; accommodates wireless technology; accommodates mainly textmainly text


Mobile Commerce Mobile Commerce Generations Generations (cont.)(cont.)

2.5G:2.5G: Interim wireless technology Interim wireless technology that can accommodate limited that can accommodate limited graphicsgraphics

3G:3G: The third generation of digital The third generation of digital wireless technology; supports rich wireless technology; supports rich media such as video clipsmedia such as video clips


Mobile Commerce Mobile Commerce Generations Generations (cont.)(cont.)

4G:4G: The expected next The expected next generation of wireless generation of wireless technologytechnology

Personal digital assistant Personal digital assistant (PDA):(PDA): A handheld wireless A handheld wireless computercomputer


Mobile Commerce Mobile Commerce (cont.)(cont.)

Short Message Service (SMS):Short Message Service (SMS): Technology that allows for Technology that allows for sending of short text messages sending of short text messages on some cell phoneson some cell phonesEnhanced Messaging Service Enhanced Messaging Service (EMS):(EMS): An extension of SMS An extension of SMS capable of simple animation, tiny capable of simple animation, tiny pictures, and short tunespictures, and short tunes



Multimedia Messaging Service Multimedia Messaging Service (MMS):(MMS): The next generation of The next generation of wireless messaging; will be able wireless messaging; will be able to deliver rich mediato deliver rich media

Smartphone:Smartphone: Internet-enabled cell Internet-enabled cell phones that can support mobile phones that can support mobile applicationsapplications



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 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:Mobile Commerce:Attributes and BenefitsAttributes and Benefits

Specific attributes of m-commerceSpecific attributes of m-commerceMobilityBroad reach

Benefits of value-added attributesBenefits of value-added attributesUbiquityConvenienceInstant connectivityPersonalizationLocalization of products and services


Mobile Commerce: Mobile Commerce: CharacteristicsCharacteristics



Drivers of m-commerceDrivers of m-commerceWidespread availability of devicesNo need for a PCThe handset cultureVendors’ pushImprovement of bandwidth



M-commerce value chainM-commerce value chainTransportEnabling servicesTransaction supportPresentation servicesPersonalization supportUser applicationsContent aggregators


Mobile Computing Mobile Computing InfrastructureInfrastructure

M-commerce hardwareM-commerce hardwareCellular (mobile) phonesAttachable keyboardPDAsInteractive pagersScreenphones

A telephone equipped with a color screen, possibly a keyboard, e-mail, and Internet capabilities

E-mail handhelds


Mobile Computing Mobile Computing Infrastructure Infrastructure (cont.)(cont.)

Required infrastructure hardwareRequired infrastructure hardwareSuitably configured wireline or wireless WAN modem, wireless LAN adapter, or wireless MAN (metro-area network) adapterA Web server with wireless support, a WAP gateway, a communications server, and/or a mobile communications server switch (MCSS)



An application or database server with application logic and a business application database providing e-commerce functionalityA GPS locator that is used to determine the location of the person carrying the mobile computing device



SoftwareSoftwareMicrobrowsers

Wireless software designed with limited bandwidth and limited memory requirements

Mobile-client operating system



BluetoothChip technology that enables voice and data communications between many wireless devices through low-power, short-range, digital two-way radio frequencies

Mobile application user interfaceBack-end legacy application software



Application middlewareWireless middlewareWireless Application Protocol

A set of communications protocols A set of communications protocols designed to enable different kinds designed to enable different kinds of wireless devices to talk to a of wireless devices to talk to a server installed on a mobile server installed on a mobile network so users can access the network so users can access the InternetInternet



Wireless Markup LanguageScripting language used for creating content in the wireless Web environment; based on XML, minus unnecessary content to increase speed

Voice XMLAn extension of XML designed to An extension of XML designed to accommodate voiceaccommodate voice



Mobile networksMobile networksSubscriber Identification Module Subscriber Identification Module (SIM) card:(SIM) card: An extractable An extractable storage card used for storage card used for identification, transaction identification, transaction processing, and the likeprocessing, and the like





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)



Wireless LAN (WLAN):Wireless LAN (WLAN): LAN LAN without the cables; used to without the cables; used to transmit and receive data over transmit and receive data over the airwavesthe airwaves

Wireless access point:Wireless access point: An antenna An antenna connecting a mobile device connecting a mobile device (laptop or PDA) to a wired LAN(laptop or PDA) to a wired LAN



802.11b:802.11b: Standard, developed by Standard, developed by the IEEE, on which most of today’s the IEEE, on which most of today’s WLANs run; WLANs employing this WLANs run; WLANs employing this standard have communication standard have communication speeds of 11 mbpsspeeds of 11 mbps

Wireless fidelity (Wi-Fi):Wireless fidelity (Wi-Fi): Another Another name for the 802.11b standard on name for the 802.11b standard on which most WLANs runwhich most WLANs run



M-commerce security issuesM-commerce security issuesPhysical security

a stolen device can provide the thief with valuable data and digital credentials

Transactional issuestransactions are routed over a public network

Post-transaction issuessome method of proving that a particular transaction has occurred



SIM-based authenticationusually implemented as a smart card containing an authentication key along with other vital information about the subscriberPIN number protects the cell phone against illegal use if it happens to be stolen or lost



Wireless Transport Layer Security Wireless Transport Layer Security (WTLS):(WTLS): Communication protocols Communication protocols that enable encrypted that enable encrypted communications between a mobile communications between a mobile device and the WAP gateway and device and the WAP gateway and support the key elements of support the key elements of electronic payment systemselectronic payment systems

Wireless identity module (WIM): Wireless identity module (WIM): A A smart card device that can be used smart card device that can be used in combination with WTLS in combination with WTLS





Voice systems for m-commerceVoice systems for m-commerceHand- and eyes-free operationsDisabled people can use voice commandsVoice terminals are designed for portabilityVoice terminals are more rugged than keyboardsCommunication is about two-and-a-half times faster talking than typingSpeaking results in fewer data entry errors



Interactive voice response (IVR):Interactive voice response (IVR): A A computer voice system that enables computer voice system that enables users to request and receive users to request and receive information and to enter and information and to enter and change data through regular change data through regular telephone lines or through 1G cell telephone lines or through 1G cell phonesphones

Voice portal:Voice portal: A Web site with an A Web site with an audio interface that can be audio interface that can be accessed through a telephone call accessed through a telephone call


Mobile Financial Mobile Financial ApplicationsApplications

Mobile bankingMobile bankingA large percentage of banks offer mobile access to financial and account informationThe uptake of mobile banking has been minimalSurveys indicate there is strong latent demand for these offerings that is waiting for the technology and transmission speeds to improve


Mobile Financial Applications Mobile Financial Applications (cont.)(cont.)

Wireless electronic payment Wireless electronic payment systemssystems

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



Micropayments:Micropayments: Electronic Electronic payments for small-purchase payments for small-purchase amounts (generally less than $10) amounts (generally less than $10)

Wide-ranging applications, such as making payments to parking garages, restaurants, grocery stores, and public utilitiesSuccess depends on the costs of the transactions



M-wallet (mobile wallet):M-wallet (mobile wallet): A wireless A wireless wallet that enables cardholders to wallet that enables cardholders to make purchases with a single click make purchases with a single click from their wireless devicefrom their wireless device


Mobile Financial Applications:Mobile Financial Applications:Bill PaymentsBill Payments


Mobile Financial Mobile Financial Applications:Applications:

Bill Payments Bill Payments (cont.)(cont.)Bill paymentsBill payments

A number of companies are now providing their customers with the option of paying their bills directly from a cell phone


Mobile Shopping, Mobile Shopping, Advertising, and Content Advertising, and Content

ProvidingProvidingShopping from wireless devicesShopping from wireless devices

Wireless Wireless shoppers are supported by services similar to those available for wireline shoppersCell phone users also can participate in online auctions (eBay and Amazon.com)


Mobile Advertising Mobile Advertising (cont.)(cont.)

Targeted advertisingTargeted advertisingKnowing the current location of mobile users (using GPS) and their preferences or surfing habits, marketers can send user-specific advertising messages



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 isSMS messages or short paging messages can be used to deliver these ads to cell phones and pagers, respectively



Getting paid to listen to adsGetting paid to listen to adsSingapore, thousands of people subscribed to the free minutes in exchange for listening to the ads

Future of wireless advertisingWireless advertising initiatives to date have all been “trials”Wireless ads will be incorporated with other advertising media


Mobile Advertising and Mobile Advertising and Content Providing Content Providing (cont.)(cont.)

Mobile portal:Mobile portal: A customer A customer interaction channel that interaction channel that aggregates content and services aggregates content and services for mobile users for mobile users


Mobile Intrabusiness Mobile Intrabusiness and Applicationsand Applications

Support for mobile employeesSupport for mobile employeesMobile employees need the same corporate data available to employees working inside the company’s offices


Mobile Intrabusiness Mobile Intrabusiness and Applications and Applications (cont.)(cont.)

Wearable devices:Wearable devices: Mobile wireless Mobile wireless computing devices for employees computing devices for employees who work on buildings and other who work on buildings and other difficult-to-climb placesdifficult-to-climb places



Examples of wearable devicesCamerasScreenKeyboardTouch-panel display



Job dispatchJob dispatchnonvoice mobile services can be used to assign jobs to mobile employees, along with detailed information about the taskTarget areas

TransportationTaxisUtilities Field services Health care Security



Customer supportCustomer supportMobile access extends the reach of CRM—both inside and outside the company, to employees and partners alike on a 24/7 basisVoice portal technology can be connected to legacy systems to provide enhanced customer service or to improve access to data for employees



Non-internet intrabusiness Non-internet intrabusiness applicationsapplications

Wireless networkingDelivery and order status updatesOnline dispatching, online diagnosis support from remote locations, and parts ordering/inventory queries



Mobile shop-floor quality control systems that enable voice reports by inspectors, data collection from facilities, and transmission to a central processorA corporate wireless networkRemote database queries regarding order status or product availability



Internet-based intrabusiness Internet-based intrabusiness applicationsapplications

Monthly pay slips as SMS messages sent to mobile phonesMobile inventory systemsMobile inventory systemsWeb-enabled wireless devices for express delivery companiesProperty adjusters send pictures and report from the scene of an accident


Mobile B2B and Mobile B2B and Supply Chain ApplicationsSupply Chain Applications

Mobile computing solutions enable organizations to:

Respond faster to supply chain disruptionsProactive adjustment of plans or shifting resources related to critical supply chain events as they occur


Mobile B2B and Mobile B2B and Supply Chain Applications Supply Chain Applications

(cont.)(cont.)Wireless telemetry is an integrated messaging system that combines:

wireless communicationsvehicle monitoring systemsvehicle location devices


Mobile B2B and Mobile B2B and Supply Chain Applications Supply Chain Applications

(cont.)(cont.)Technology enables:Technology enables:

Large-scale automation of data captureImproved billing timeliness and accuracyReduced overhead associated with the manual alternativeIncreased customer satisfaction through service responsiveness


Mobile Consumer and Mobile Consumer and Personal Service Personal Service

ApplicationsApplicationsMobile gamesMobile 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 Consumer and Mobile Consumer and Personal Service Applications Personal Service Applications

(cont.)(cont.)

Games can be programmed directly into the phone’s chipset and shipped with the phoneWAP games are played by accessing the game provider’s mobile or Web portal



(cont.)(cont.)

Mobile entertainmentMobile entertainmentThe availability of portable MP3 players has lead to the development of music devices integrated with mobile phonesWith higher bandwidth, music vendors can offer instant delivery of songs from their music libraries for online purchase



(cont.)(cont.)

Handset vendors have cell phones that enable users to send pictures from one device to anotherAs the 3G handsets hit the market, mobile devices will begin to support the downloading and real-time playback of audio and video clips



(cont.)(cont.)

Hotels Hotels Hotels now offer their guests in-room, high-speed Internet connectionsA 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



(cont.)(cont.)

Wireless telemedicineWireless telemedicineThe storage and forwarding of digital images from one location to anotherVideoconferencing used for real-time consultation with a patient in one location and a medical specialist in another



(cont.)(cont.)New and novel application opportunities:

On wearable heart monitors linked to cell phonesPortable devices that transmit the vital signs of avalanche victimsMobile communications used to attend to medical emergencies occurring on planesMobile telesurgery applications that enable surgeons in one location to remotely control robotic arms for surgery in another location


Location-Based Location-Based CommerceCommerce

Location-based commerce (l-Location-based commerce (l-commerce):commerce): M-commerce M-commerce transactions targeted to transactions targeted to individuals in specific locations, at individuals in specific locations, at specific timesspecific timesL-commerce offers:

SafetyConvenienceProductivity


Location-Based Commerce Location-Based Commerce (cont.)(cont.)

L-commerce L-commerce basic services revolve around five key areas:

1. Location2. Navigation3. Tracking4. Mapping5. Timing



Necessary location-based and network technologies:

Position-determining equipment (PDE)Mobile positioning center (MPC)Location-based technologyGeographic contentLocation-specific content



Global positioning system (GPS):Global positioning system (GPS): A A wireless system that uses satellites wireless system that uses satellites to enable users to determine their to enable users to determine their position anywhere on the earthposition anywhere on the earthGPS handsets can be:

stand-alone units plugged into a mobile device or completely embedded in one



Geographical information system Geographical information system (GIS):(GIS): System that integrates GSP System that integrates GSP data onto digitized map displays data onto digitized map displays

Wireless 911 (e-911):Wireless 911 (e-911): Calls from Calls from cellular phones to providers of cellular phones to providers of emergency services emergency services







Automatic crash notification (ACN):Automatic crash notification (ACN): Device that automatically sends the Device that automatically sends the police the location of a vehicle that police the location of a vehicle that has been involved in a crashhas been involved in a crash

Telematics:Telematics: The integration of The integration of computers and wireless computers and wireless communications to improve communications to improve information flow using the information flow using the principles of telemetryprinciples of telemetry



Barriers to l-commerceBarriers to l-commerceAccuracyThe cost-benefit justificationThe bandwidth of GSM networksInvasion of privacy


Pervasive ComputingPervasive Computing

Pervasive computing:Pervasive computing: Invisible, Invisible, everywhere computing that is everywhere computing that is embedded in the objects around embedded in the objects around us us

Also know as:Also know as:ubiquitous computingembedded computingaugmented computing


Pervasive Computing Pervasive Computing (cont.)(cont.)

Embedded computers do not intrude on our consciousness

Radio frequency identification Radio frequency identification (RFID):(RFID): Generic term for Generic term for technologies that use radio technologies that use radio waves to automatically identify waves to automatically identify individual itemsindividual items



Properties of pervasive computingProperties of pervasive computingInvisible devicesEmbedded microchipsAlways onUbiquitous networkLife-enhancing applicationsConsumer-centric solutionsIncreasing productivityLong-term vision



Technical foundation of pervasive Technical foundation of pervasive computingcomputing

Everyday objects have to contain embedded microprocessorsA ubiquitous network is needed to connect these microprocessorsThe microprocessors must be able to communicate with the ubiquitous network


Pervasive Computing: Pervasive Computing: ApplicationsApplications

Smart homes—home automation Smart homes—home automation systems support:systems support:

LightingEnergy managementWater controlHome security and communicationsHome theater


Pervasive Computing: Pervasive Computing: Applications Applications (cont.)(cont.)

Smart appliancesSmart appliancesInternet-ready appliance that can be controlled by a small handheld device or desktop computer via a home intranet or the public InternetHome Alliance (internethomealliance.com)



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 deviceDiagnostic purposes—monitoring, troubleshooting, repairing, or maintaining the device



Improving or augmenting the performance or features of a deviceControlling and coordinating devices into a sequenced pattern of behavior Profiling and behavior tracking of a deviceMonitoring consumptionTracking and optimizing the service support system



Smart cars—increased use of Smart cars—increased use of automobile microprocessors

sophisticated engine controls to meet emissions and fuel-economy standardsadvanced diagnostics; simplification of the manufacture and design of carsreduction of the amount of wiring in carsnew safety featuresnew comfort and convenience features



Growing trend is connecting car microprocessors to mobile networks for support services including:

Emergency assistanceDriving directionsE-mail



Services provided by OnStar (onstar.com) include:

Air Bag Deployment NotificationVoice-activated nationwide wireless calling serviceEmergency services and roadside assistance



Personal Concierge, which plans entire tripsRoute SupportStolen Vehicle TrackingRemote Door UnlockRemote Diagnostics



Smart “things”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



Auto Identification Center (Auto-ID): Joint partnership among global companies and research universities to create an Internet of ThingsInternet 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: Pervasive Computing: RFIDRFID

Key technical elements of the Auto-ID system include:

RFIDElectronic Product Code (EPC)

Universal standard for product Universal standard for product identification, stored on an RFID identification, stored on an RFID tag tag



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, Proposed new markup language, based on the XML standard, that based on the XML standard, that specifies how a product’s name, specifies how a product’s name, category, manufacture date, category, manufacture date, expiration date, and the like will be expiration date, and the like will be represented in a computerrepresented in a computer



SavantSoftware created by the Auto-ID Software created by the Auto-ID center that gathers information center that gathers information from RFID readers and passes it on from RFID readers and passes it on to various business applicationsto various business applications



Auto-ID at workAuto-ID at workAdding identity to productsAdding identity to casesReading tags Savant at workPML at workEfficiency in distributionEfficiency in inventoryOverstocking eliminatedConsumer convenience


Inhibitors and Barriers Inhibitors and Barriers to L-Commerceto L-Commerce

Usability problem—three Usability problem—three dimensions:dimensions:

Effectiveness Efficiency Satisfaction


Inhibitors and Barriers Inhibitors and Barriers to L-Commerce to L-Commerce (cont.)(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



Technical limitationsTechnical limitationsLack of a standardized security protocolInsufficient bandwidthTransmission and power consumption limitationsWAP limitations



Potential health hazardsPotential health hazardsThe issue of cellular radio frequency emissions and the fear that radiation from wireless mobile devices may induce cancer has been debated for several yearsDrivers using mobile telephones have an increased chance of being involved in a traffic accidentUse of cell phones may interfere with sensitive medical devices


Managerial IssuesManagerial Issues

1. What’s our timetable?2. Which applications first?3. Is it real or just a buzzword?4. Which system to use?


SummarySummary

1. Characteristics and attributes of m-commerce

2. Drivers of m-commerce3. Supporting technologies4. Wireless standards and

technologies5. Finance, advertising, and content-

providing applications6. Intrabusiness applications


Summary Summary (cont.)(cont.)

7. B2B applications8. Consumer applications9. Non-Internet applications10. L-commerce11. Pervasive computing12. Limitations of m-commerce

Chapter 10

Documents

mobile applications

mobile commerce generations

mobile commercecont

commerce applications

mobile auction

mobile commercegenerationscont

mobile commerce ec services

b2b mobile musicmusic