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Transcript Document 7230624
Chapter 8
Mobile Commerce
1
NextBus: A Superb Customer
Service
The Problem
Buses in San Francisco have difficulty keeping to 20
minute schedule during rush hours
Posted schedule becomes meaningless
The Solution
Bus riders carrying Internet-enabled cell phone or
PDA helps:
Find estimated arrival time at each stop, digitally in real time
Soon 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
2
NextBus (cont.)
The Results
Passengers in San Francisco are happy with the
system
Worries about missing the bus are diminished
May discover they have time for a cup of coffee
before the bus arrives
Bus company can:
Schedule better
Arrange for extra buses when needed
Improve operations
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Exhibit 8.1
NextBus Operational Model
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Mobile Applications - 1
Vehicles
transmission of news, road condition etc
ad-hoc network with near vehicles to prevent
accidents
Emergencies
early transmission of patient data to the hospital
ad-hoc network in case of earthquakes, cyclones
military ...
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Mobile Applications - 2
Travelling salesmen
direct access to central customer files
consistent databases for all agents
mobile office
Web access
outdoor Internet access
intelligent travel guide with up-to-date
location dependent information
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Mobile Applications - 3
Location aware services
find services in the local environment, e.g. printer
Information services
push: e.g., stock quotes
pull: e.g., nearest cash ATM
Disconnected operations
mobile agents, e.g., shopping
Entertainment
ad-hoc networks for multi user games
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Mobile Applications in Industry
Wireless access: phone.com
Alerting services: myalert.com
Location services: airflash.com
Intranet applications: imedeon.com
Banking services: macalla.com
Web access: wapforum.com
Mobile agents: tryllian.com
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Mobile Commerce: Overview
Mobile commerce (m-commerce,
m-business)—any e-commerce done in a
wireless environment, especially via the Internet
Can be done via the Internet, private communication
lines, smart cards, etc.
Creates opportunity to deliver new services to
existing customers and to attract new ones
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Exhibit 8.2
Classes of M-Commerce
Applications
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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 (20062010)
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Services
Banking
Trading
Shopping
Entertainment
Ticketing
And more…
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Terminology and Standards
GPS: Satellite-based Global Positioning System
PDA: Personal Digital Assistant—handheld wireless
computer
SMS: Short Message Service
EMS: Enhanced Messaging Service
MMS: Multimedia Messaging Service
WAP: Wireless Application Protocol
Smartphones—Internet-enabled cell phones with
attached applications
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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
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Attributes of M-Commerce
(cont.)
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
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them
Exhibit 8.3
Characteristics of M-Commerce
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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
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Mobile Computing Infrastructure
Hardware
Cellular (mobile)
phones
Attachable keyboard
PDAs
Interactive pagers
Other devices
Notebooks
Handhelds
Smartpads
Screenphones—a
telephone equipped with
color screen, keyboard, email, and Internet
capabilities
E-mail handhelds
Wirelined—connected by
wires to a network
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Mobile Computing Infrastructure
(cont.)
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
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Mobile Computing Infrastructure
(cont.)
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
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Bluetooth
is a short-range radio technology aimed at simplifying
communications among Internet devices and between
devices and the Internet. It also aims to simplify data
synchronization between Internet devices and other
computers.
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Bluetooth Security
Authorization (whether device X is allowed to have
access service Y)
• Trusted Device: The device has been previously
authenticated, a link key is stored and the device is
marked as “trusted” in the Device Database.
• Untrusted Device: The device has been previously
authenticated, link key is stored but the device is not
marked as “trusted” in the Device Database
• Unknown Device: No security information is
available for this device. This is also an untrusted
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device.
Bluetooth Security
Bluetooth provides security between any two Bluetooth
devices for user protection and secrecy
mutual and unidirectional authentication
encrypts data between two devices
Session key generation
• configurable encryption key length
• keys can be changed at any time during a connection
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Bluetooth Security
Authorization (whether device X is allowed to have
access service Y)
• Trusted Device: The device has been previously
authenticated, a link key is stored and the device is
marked as “trusted” in the Device Database.
• Untrusted Device: The device has been previously
authenticated, link key is stored but the device is not
marked as “trusted” in the Device Database
• Unknown Device: No security information is
available for this device. This is also an untrusted
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device.
Mobile Computing Infrastructure
(cont.)
Networks and access
Wireless transmission media
Microwave
Satellites
Radio
Infrared
Cellular radio technology
Wireless systems
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Exhibit 8.5
Delta Airlines Wireless System
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Wireless Standards and Security
M-commerce supported by
Standards
Security
Voice systems
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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
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Wireless Standards (cont.)
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
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Security Issues
Viruses
Smart card security solutions
Voice communication can be intercepted by
hackers
One solution is an embedded biometric add-on
Back-end security solutions—public key
infrastructure (PKI) and M-CERT (mobile
certification)
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Viruses
Computer viruses have begun the migration to Mobil
devices as such terminals gain more power and
intelligence
The first computer virus that targeted Mobil phones
was identified in mid-2000.
The virus was spread as an email enclosure on
conventional computer bus was also designed to send
prank SMA messages to randomly selected Mobil
phone numbers in particular cellular network in
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Spain.
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 portable
2 ½ times faster than typing
Fewer errors
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Interactive Voice Response
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
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Voice Portals
Voice portal—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
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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)
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Mobile Financial Applications
(cont.)
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
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Examples of Financial
Applications
Swedish Postal Bank
Dagens Industri
Citibank
Japanese banks
Hoover’s wireless
(hoover.com)
ASB Bank (New
Zealand)
Boston’s Faneuil Hall
Marketplace
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Exhibit 8.6
Bill Payments by Cell Phone
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Shopping from Wireless Devices
Buy.com allows shopping from wireless devices
In 5-10 years most businesses will be wireless
Online stores will become showrooms
View products
Purchase them using handheld devices
Possibly enhanced by bar code scanners
Customization may be possible
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Exhibit 8.7
Mobile Shopping Supported by CRM
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Targeted Advertisement
Personalization of services and enhanced user
interface for wireless Web pages from
barnesandnoble.com
Knowing user preferences or surfing habits userspecific advertising messages to the location of
mobile users
Using GPS marketers can send location-sensitive
messages can be sent
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Targeted Advertisement (cont.)
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
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Targeted Advertisement (cont.)
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
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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)
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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
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Supporting Customers & Business
Partners
(Consumer Services) [cont.]
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
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Mobile Intrabusiness
and enterprise
application
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Support of mobile
employee
They need the same
data available to
employees working
inside the company
office
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Examples
Sale support
Customer service
support
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Wearable device
Mobile wireless
computing device
for employee who
work on building and
other difficult to
climb places
include:
1-cameras
2-screen
3-keyboard
4-touch-panel
display
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Example
Job dispatch :
it allows improved
response with
reduced resource ,
real time tracking
of work order
(transportation ,
health care ,
utilities) etc.
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Mobile sales
automation
It equipped with
smart phone ,
providing them
with easy access
to customer data
at the central
office
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NONIntranetbusiness
application
Example like :
Remote database
queries regarding
order status or
product availability
Delivery and order
status updates
entered on PC’s
inside distribution
trucks
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Internet – based
interabusiness
application
Intelligent
offices : this
arrangement
improves
productivity and
the quality of
office operation
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Mobile B2B and supply
chain application
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Mobile B2B
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Supply chain
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Messaging system center of B2B
communication
By integrating the terminal in to the
supply chain
Mobile reservation of goods
Check availability of particular item
in the warehouse
order a particular product from the
manufacturing department
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Mobile consumer and
personal service
application
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Mobile gaming and
gambling
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Mobile Entertainment
(Music & video)
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Hotels
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Intelligent homes and
appliances
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Wireless telemedicine
Telemedicine the
use of mobile
telecommunications
infrastructures and
multimedia
technology to provide
medical information
and deliver health
care services
remotely
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Location
based commerce
(L-commerce)
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Location based
commerce (Lcommerce)
E-commerce applications
provided to customers based on a
user’s specific location
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L-commerce
technologies
1- GPS
Global positioning
system (GPS) :
a wireless system
that uses
satellites to
enable users to
determine their
position anywhere
on the earth.
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L-commerce technologies
2- (GIS)
geographical
information system
(GIS): the location
provided by GPS is
expressed in terms of
latitude and
longitude, and this is
done by inserting the
latitude and
longitude onto an
electronic map. (e.g
,Toyota , Cadillac)
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L-commerce
technologies
3- GPS handsets : it
can be stand alone
units for applications
such as tracking buses
, tracking trucks on
the roads , or finding
your location in the
outdoors, or plugged
into a mobile device .
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E-911 EMERGENCY
CELL PHONE CALLS
Calls from cellular
phones to providers
of emergency
services .
Automatic crash
notification (ACN) :
device that will
automatically
notify police of
vehicular accident.
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TELEMATICS AND
TELEMETRY APPLICATIONS
Telematics : the integration
of computers and wireless
communications to improve
information flow using the
principles of telemetry .
Telemetry : the science that
measures physical
remoteness by means of
wireless transmission from a
remote source ( such as
vehicle ) to a receiving
station . ( e.g,
mobileAria.com , NOKIA )
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barriers to
l-commerce :
the accuracy of
some of the
location
technologies
the cost benefits
justification
M-spam
The bandwidth of
GSM networks
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Limitation of Mcommerce
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The usability problem
Several
limitation are
slowing down the
spread of mcommerce and
leaving many
customers
disappointed and
dissatisfied .
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Usability dimensions
Effectiveness
Efficiency
Satisfaction
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Current mobile device
ineffective Why ?!?!?!?!
Restricted keyboards
Pocket –size screen
Limited storage capacity
Difficult to download
Paying premium rates
Only text
Black &white
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Technical limitation
Lack of
standardized
security protocol
Insufficient
bandwidth
3G licenses
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o
o
Transmission and power
consumption limitations
Wap limitation:
speed
Cost
Accessibility
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