Transcript IE381_KM1 - Pohang University of Science and Technology

Diverse E-Commerce:
M-Commerce and Ubiquitous
Rev: Feb, 2012
Euiho (David) Suh, Ph.D.
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT: http://posmit.postech.ac.kr)
Dept. of Industrial & Management Engineering
POSTECH
Contents
※
Discussion Questions
1
M-Commerce
2
3
1)
Introduction
2)
Value Chain
3)
Attributes of M-Commerce
4)
Characteristics of M-Commerce
5)
Mobile Computing Infrastructure
6)
Other Issues
Ubiquitous
1)
Basic Concepts on Ubiquitous Computing
2)
Capabilities of Ubiquitous Computing
3)
Generic Features of Ubiquitous Computing
4)
U-Commerce
Case Study
Discussion Questions
■ What are some other potential M-commerce applications?
■ Why do you think M-commerce is increasingly popular?
■ Find a real case for applying Ubiquitous technology
■ What is L-Commerce (Location-based Commerce) and its characteristic?
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Definition of Mobile Commerce (M-Commerce)
1. M-Commerce
■ M-Commerce
– Any transaction conducted over a mobile telecommunications network
– Representing a subset of all e-commerce transactions both in business-to-consumer
and the business-to-business area
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1) Introduction
Differences between M- and E- commerce
1. M-Commerce
1) Introduction
■ A permanent factor that makes difference between M- and
the rest of the E- commerce is…
– The possibility of the user to engage anywhere and anytime in M-commerce transactions;
for some this is the crucial difference
■ The main functional distinction between the E-commerce in general
and M-commerce are…
– Dynamic Location Based Services (LBS) that use the actual location of the terminal on earth in
one way or the other to perform the transaction
– cf.) Ordering taxi in a foreign city based on the positioning of the terminal and the taxi
■ Further difference are…
– The properties of the truly portable terminals as compared to PCs or laptops:
The simple UI facilities, slower processor, smaller memory resources, and tiny energy reserves
■ A fourth main difference is…
– The relatively small wireless link transmission capacity offered to the terminals,
although the capacity is increasing with every network generation
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1. M-Commerce
Classes of M-Commerce Applications
1) Introduction
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1. M-Commerce
Mobile Commerce Value Chain
2) Value Chain
Source : The mobile commerce value chain: analysis and future developments, Stuart J. Barnes,
International Journal of Information Management 22 (2002) 91–108
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1. M-Commerce
Specific Attributes of M-Commerce
3) 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
■ 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
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1. M-Commerce
Characteristics of M-Commerce
4) Characteristics of M-Commerce
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1. M-Commerce
The Drivers of M-Commerce
4) Characteristics of M-Commerce
■ Why it is increasingly popular
Widespread availability of devices
No need for a PC
Handset culture
Vendors’ push
Declining prices
Improvement of bandwidth
High speed networks
Explosion of EC in general
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Landscape of mobile computing and commerce
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1. M-Commerce
5) Mobile Computing Infrastructure
1. M-Commerce
Wireless Environment
5) Mobile Computing Infrastructure
■ Wireless Devices
– Individuals are finding it convenient and productive to use wireless devices for several reasons:
• Can make productive use of time that was formerly wasted
• Their work locations are becoming much more flexible
• Enables them to allocate their working time around personal and professional obligations
– The Wireless Application Protocol (WAP) is the standard that enables wireless devices to access
Web-based information and services
– Microbrowsers can work with smaller screen sizes and lower bandwidth
■ Wireless Transmission Media
– Wireless media, or broadcast media, transmit signals without wires over the air or in space
– The major types of wireless media are:
•
•
•
•
Microwave
Satellite
Radio
Infrared
– Each of these media has relative advantages and disadvantages
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Advantages and Disadvantages of Wireless Media
Channel
Microwave
Satellite
Radio
Infrared
Advantages
1. M-Commerce
5) Mobile Computing Infrastructure
Disadvantages
• High bandwidth
• Relatively inexpensive
• Must have unobstructed line of sight
• Susceptible to environmental
interference
• High bandwidth
• Large coverage area
•
•
•
•
• High bandwidth
• Signals pass through walls
• Inexpensive and easy to install
• Creates electrical interference
problems
• Susceptible to snooping unless
encrypted
• Low to medium bandwidth
• Used only for shot distances
• Must have unobstructed line of sight
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Expensive
Must have unobstructed line of sight
Signals experience propagation delay
Must use encryption for security
1. M-Commerce
Applications and Security Issues
6) Other Issues
■ M-Commerce Applications
–
–
–
–
Financial services: Banking and payment
Intrabusiness applications: Content, services, and voice communication portals
Location-based applications: Shopping, location-based services and advertising
Telemedicine
■ Wireless Security
– Wireless networks provide numerous benefits, but they also present challenges to management
because of their inherent lack of security
– Four major threats to wireless networks include:
• Rogue access points – unauthorized access points to a wireless network
• War driving – locating WLANs while driving (or walking) around a city elsewhere, can be used to obtain a
free Internet connection and possible access to data and other resources
• Eavesdropping – accessing data traveling over wireless networks
• RF jamming – a person or a device intentionally or unintentionally interferes with wireless transmissions
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2. Ubiquitous
Ubiquitous Computing
1) Basic Concepts on Ubiquitous Computing
■ Ubiquitous?
– Being or seeming to be everywhere at the same time
■ Ubiquitous Computing
– Invisible, everywhere computing that does not sit on the desktop but lies deep inside the
environment we live in
■ Beginning of Ubiquitous Computing
– Mark Weiser
• The chief technology officer at XEROX PARC
• The father of Ubiquitous Computing
– Ubiquitous Computing
• The ideal computing environment which never annoy or bother users, but wait for being used silently
– Characteristics:
•
•
•
•
All computers should be connected each other
It should be invisible
It should be available everywhere
It should be unified with normal life, embedded to all things and circumstance
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2. Ubiquitous
Different from…
1) Basic Concepts on Ubiquitous Computing
■ vs. Mobile Computing
– Only one access point
■ vs. Multimedia Computing
– Demand the focus of your attention.
– Ubiquitous computing : Multimedia is faded into background of UC
■ vs. Virtual Reality
Virtual Reality
Ubiquitous Computing
 Puts people inside a computer-generated world
 Forces the computer to live out here in the world with people
 Primarily a horse power problem
 A very difficult integration of human factors, computer science,
engineering, and social sciences
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2. Ubiquitous
Capabilities of Ubiquitous Computing
2) Capabilities of Ubiquitous Computing
■ Calm Technology
–
Technologies should be organized so users as not to sense the fact that they are being served by computers
■ Invisibility
–
To be as unobtrusive as possible, users’ workload to operate any computer systems must be lightened
■ Embeddedness
–
Small intelligent devices are embedded in the physical world and connected to the fixed and/or wireless
network
■ Mobility
–
Client devices must be operated under the mobile and flexible network infrastructure
■ Nomadicity
–
The system provides a rich set of computing and communication capabilities and services to nomadic users
■ Portability
–
The system provides services with hands-free or at least one-handed light devices
■ Proactiveness
–
The system needs to be self-triggered to capture a priori what its users want to increase the service quality
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Generic Features of Ubiquitous Computing (1/2)
2. Ubiquitous
3) Generic Features of Ubiquitous Computing
■ Transparent Interfaces
– Hide their presence from user
– Provide interaction between user and application
– Examples:
•
•
•
•
Gesture recognition
Speech recognition
Free form pen interaction
Computational perception etc.
Transparent
Interfaces
Awareness of
Context(s)
– Need:
• Flexible interfaces
• Varied interfaces that can provide similar functionality
Capture Experience
■ Context Awareness
– Context: Information about the environment with which the application is associated
• ‘Location’, ‘temperature’, ‘time’, and ‘activity’ are simple examples of context
– Context aware application:
• Is one which can capture the context
• Assigns meaning to it
• Changes behavior accordingly
– Need:
• Applications that are context aware and allow rapid personalization of their services
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Generic Features of Ubiquitous Computing (2/2)
2. Ubiquitous
3) Generic Features of Ubiquitous Computing
■ Automated Capture
– To capture our day-to-day experience
– To make it available for future use.
– Constraints:
• Multiple streams of information
• Their time synchronization
• Their correlation and integration
Transparent
Interfaces
– Need:
Awareness of
Context(s)
• Automated tools that support capture
• integration and future access of information
Capture Experience
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2. Ubiquitous
U-Commerce
4) U-Commerce
■ U-Commerce
– The use of ubiquitous networks to support personalized and uninterrupted communications
and transactions between a firm and its various stakeholders to provide a level of value over,
above, and beyond traditional commerce
– An alternative view of time and space for business and marketing
■ Key forces of U-Commerce
– Bounded rationality
• Consumers are capable of a wide variety of reasoning errors when making decisions
• Managers have difficulty in managing a multitude of customers on a one-to-one basis
– Attention deficit society
• Consumers are increasingly bombarded with more and more messages
 It is estimated that a single weekday issue of the New York Times contains more information than the average person in
seventeenth-century England came across in a lifetime
• Conscious attention is a scarce resource
• Some messages need to be attenuated and others amplified
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2. Ubiquitous
Impacts on Business Services
4) U-Commerce
Ubiquitous Computing will lead to Ubiquitous Commerce
(Right message, to the right person, at the right time!)
 Impact on Business Strategy – awareness, accessibility, responsiveness
 Point of Presence! Context!
 Change in nature of service providers
(bursty, point-of-presence value, service level commitments)
 New services (businesses) will arise…
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Case Study
3. Case Study
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Reference
■ Euiho Suh, “Mobile Commerce (PPT Slide)”, POSMIT Lab.
(POSTECH Strategic Management of Information and Technology Laboratory)
■ Euiho Suh, “Ubicomp1 (PPT Slide)”, POSMIT Lab.
(POSTECH Strategic Management of Information and Technology Laboratory)
■ Efraim Turban & Linda Voloninos, “Information Technology for Management – Seventh
Edition”, John Wiley & Sons Inc., Chapter 7
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