Management Information Systems Chapter 9 Chapter 9 The Wireless Rev olution OBJECTIVES • The Wireless Revolution 9.1 © 2006 by Prentice Hall Identify the principal wireless transmission media and devices, cellular network standards and generations, and standards for mobile Web access 1. Radio waves to microwaves 2. CDMA & GSM are main cell phone standards 3. WAP & WML main Web standards 9.2 © 2006 by Prentice Hall Management Information Systems Chapter 9 The Wireless Rev olution OBJECTIVES (Continued) • Describe the major standards for wireless networks and for wireless Internet access • – Bluetooth, Wi-Fi, Wi-Max, EV-DO • Evaluate the role of m-commerce in business and describe the most important m-commerce applications Assess the business value of wireless technology and describe important wireless applications in business 1. Anytime/anywhere computing 2. Mobile CRM, SCM, health care, rental car return, etc. 3. RFID facilitates SCM, transportation, etc. – Information & transaction-based & personal services 9.3 © 2006 by Prentice Hall 9.4 © 2006 by Prentice Hall Management Information Systems Chapter 9 The Wireless Rev olution THE WIRELESS COMPUTING LANDSCAPE • Identify and describe the challenges posed by wireless technology and management solutions – Maintaining security & privacy – Successful IT integration • 55% of US, 85 % of Europe, 75 % Korea w/cell phones • Focus on biggest bang-for-the-buck, try on small pilot program before full implementation 9.5 The Wireless Revolution • Mobile phones have become mobile platforms for delivering digital data, used for recording and downloading photos, video and music, Internet access, and transmitting payments. © 2006 by Prentice Hall • An array of technologies provides high-speed wireless access to the Internet for PCs and other wireless handheld devices and cell phones. • R telemarketers allowed to call cell phone # ’s? Text message? • Businesses increasingly use wireless to cut costs, increase flexibility, and create new products and services. 9.6 © 2006 by Prentice Hall 1 Management Information Systems Chapter 9 The Wireless Rev olution THE WIRELESS COMPUTING LANDSCAPE Mobile Versus Fixed-line Subscribers Worldwide • “Wireless devices,” as defined by the CANSPAM Act, refers to cell phones and some other personal or mobile wireless devices, such as pagers. The definition does not include laptop computers, even if they use a wireless connection. Source: Internati ona l Telec ommu nicati ons Uni on, 200 2 and 2 00 3, and auth ors. 9.7 © 2006 by Prentice Hall Figure 9-1 9.8 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution THE WIRELESS COMPUTING LANDSCAPE THE WIRELESS COMPUTING LANDSCAPE Business Value of Wireless Networking Business Value of Wireless Networking (Continued) • Wireless communication helps businesses easily stay in touch with customers, suppliers, and employees. • Companies can save on wiring offices, moving, and making network changes by using wireless networks. • Wireless networking increases worker productivity and output, as workers take less time to establish contact with people and to access information. • Wireless technology has also been the source of new products, services, and sales channels in a variety of industries, e.g. OnStar, Starbucks “hot spots”. 9.9 © 2006 by Prentice Hall 9.10 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution THE WIRELESS COMPUTING LANDSCAPE THE WIRELESS COMPUTING LANDSCAPE Amoco’s Satellite Transmission System Wireless Transmission Media and Devices • All wireless media rely on various parts of the electromagnetic spectrum. • Microwave systems transmit high-frequency radio signals through the atmosphere. • Communication satellites are used for geographically dispersed organizations. 9.11 © 2006 by Prentice Hall 9.12 Figure 9-3 © 2006 by Prentice Hall 2 Management Information Systems Cellular Network Standards Chapter 9 The Wireless Rev olution THE WIRELESS COMPUTING LANDSCAPE Devices for Wireless Transmission: • GSM – Used by 75% of the world’s cell phone users – International roaming capability – Used by T-mobile, Cingular, ATT in US • Paging syste ms • E-mail handhelds • Cellular telephones Merged? • CDMA (Code division multiple access) • Personal Digital Assistants (PDAs) – More efficient, higher quality – Used by Verizon, MCI, Sprint • Smart phones 9.13 © 2006 by Prentice Hall 9.14 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution THE WIRELESS COMPUTING LANDSCAPE WIRELESS COMPUTER NETWORKS AND INTERNET ACCESS The Institute of Electrical and Electronics Engineers (IEEE) established a hierarchy of complementary standards for wireless computer networks. Cellular Generations: • 1G: Analog cellular networks for voice communication • 2G: Digital wireless networks, primarily for voice c ommunication; limited data transmission ca pability • 2.5G: Interim step toward 3 G in the United States • 3G: High-speed; mobile ; s upports video a nd other rich media ; alwayson transmission for e-mail, Web browsing, instant messaging 9.15 © 2006 by Prentice Hall • IEEE 802.15 (Bluetooth) for the Personal Area Network (PAN) • IEEE 802.11a,b,g (Wi-Fi) for the Local Area Network (LAN) • IEEE 802.16 (WiMax) for the Metropolita n Area Network (MAN) • IEEE 802.20 (pr oposed) standard for the Wide Area Network (W AN) • EV-D O “Nation-wide” broadband wireless access from Veri zon Table 9-2 9.16 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution M-COMMERCE AND MOBILE COMPUTING M-COMMERCE AND MOBILE COMPUTING Global M-Commerce Revenue, 2000–2005 • M-commerce: The use of the Internet for purchasing goods and services and also for transmitting messages using wireless mobile devices • Mobile computing: Enables internet-enabled cell phones, PDAs, and other wireless computing devices to access digital information on the Internet from any location Source: Co pyrig ht 200 5 Jupiter med ia Corp oratio n. All rig hts reserv ed. 9.17 © 2006 by Prentice Hall 9.18 Figure 9-7 © 2006 by Prentice Hall 3 Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution M-COMMERCE AND MOBILE COMPUTING M-COMMERCE AND MOBILE COMPUTING M-Commerce Services and Applications M-Commerce Services and Applications (Continued) • Information-based services: Instant messaging, e-mail, searching for a movie or restaurant using a cell phone or handheld PDA • Personalized services: Services that anticipate what a customer wants based on that person’s location or data profile, such as updated airline flight information or beaming coupons for nearby restaurants • Transaction-based services: Purchasing stocks, concert tickets, music, or games; searching for the best price for an item using a cell phone and buying it in a physical store or on the Web Table 9-3 (Continued) 9.19 Table 9-3 © 2006 by Prentice Hall 9.20 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution M-COMMERCE AND MOBILE COMPUTING M-COMMERCE AND MOBILE COMPUTING Digital Payment Systems and M-Commerce • Micropayment system o Individual service providers run their own separate payment syste ms o Small payments added on to single bill M-Commerce Challenges • to customer • • • Stored payment syste m o Cell phone equipped with smart card storing rechargeable electronic cash 9.21 • Mobile Wallets (m-Wallets): Store personal data for automatic use in online transactions (no filling out forms) © 2006 by Prentice Hall Slow data transfer speeds on 2G cellular netw orks, resulting in higher costs Limited memory and pow er supplies More Web sites need to be designed specifically for sm all w ireless devices. • Keyboards and screens on cell phones are still tiny and awkward to use. • Need new business m odels / ideas for utilizing handheld com puting power and m -commerce 9.22 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution WIRELESS TECHNOLOGY IN THE ENTERPRISE WIRELESS TECHNOLOGY IN THE ENTERPRISE Wireless Applications for Customer Relationship Management Pitney Bowes’s Wireless CRM System Wireless CRM enables sales and field service professionals to: • Access customer account records and information at any time or location • Update customer accounts and deal information to update customer database instantaneously • Enter, perform, and update transactions and product information 9.23 © 2006 by Prentice Hall 9.24 Figure 9-9 © 2006 by Prentice Hall 4 Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution WIRELESS TECHNOLOGY IN THE ENTERPRISE WIRELESS TECHNOLOGY IN THE ENTERPRISE Wireless Supply Chain Management (SCM) and Radio Frequency Identification (RFID) • Wireless supply chain management systems: Provide simultaneous accurate information about demand, supply, production, and logistics as goods move among supply chain partners Wireless Supply Chain Management (SCM) and Radio Frequency Identification (RFID) • Radio Frequency Identification (RFID) systems: • Active devices • Memory can be modified, have own power • Passive devices • Use power from reader • Radio Frequency Identification (RFID) systems: Provide a powerful technology for tracking the movement of goods throughout the supply chain 9.25 © 2006 by Prentice Hall • Cost is currently about 5 cents/ea 9.26 © 2006 by Prentice Hall Management Information Systems Chapter 9 The Wireless Rev olution WIRELESS TECHNOLOGY IN THE ENTERPRISE How RFID Works 9.27 Figure 9-10 • Eliminating cash register queues © 2006 by Prentice Hall 9.28 © 2006 by Prentice Hall Management Information Systems RFID vs. Optical Barcode Chapter 9 The Wireless Rev olution WIRELESS TECHNOLOGY IN THE ENTERPRISE Wireless in Health Care Wireless Applications: • Electronic Medical Record (EMR) retrieval • Wireless note taking for patient charts • Lab test results instantly available/updated • Prescription generation • Medical databases (security/privacy issues?) 9.29 © 2006 by Prentice Hall 9.30 © 2006 by Prentice Hall 5 Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution WIRELESS TECHNOLOGY IN THE ENTERPRISE MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Opportunities: Wireless Sensor Networks and Pervasive Computing • Wireless technology offers: Wireless sensor networks (WSNs): Networks of interconnected wireless devices that are embedded into the physical e nvironme nt to pro vide measurements of many • Flexible business processes points over large spaces • Business processes not limited by time or space • Pervasive c omputing: Wireless technologies are pus hing computing into ever y facet of life , including cars, homes, • New channel for communicating with client office buildings , tools a nd factories ; pr oviding connections anywhere and anytime. • Source of new products and services • If w all outlets accessed via WWW, need more IP addresses! 9.31 © 2006 by Prentice Hall 9.32 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 9 The Wireless Rev olution Chapter 9 The Wireless Rev olution MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Challenges: Solution Guidelines: • Integrating wireless technology into the firm’s IT infrastructure The following are some of the guidelines for managing mobile technology in the enterprise: • Identifying areas in which wireless can provide the most value • Maintaining security and privacy • Creating a management framework for wireless technology • Using a pilot program before full-scale rollout of wireless systems 9.33 © 2006 by 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