ELC 200
Day 19
Prentice Hall, 2003
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Agenda
Questions from last Class?
Quiz 2 rescored
5 A’s, 6 B’s, 3 C’s
Assignment 5
Due April 17
Questions?
Two more assignments left
Operations & Finance
EBiz plan and presentations
Due may 8 @ 8AM
More to come
Two more Quizzes
April 17 & May 4
Today's’ discussion is on Mobile Commerce
Prentice Hall, 2003
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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 longdistance 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)
http://www.go2online.com
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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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Supporting Mobile Employees
Smartphones and hand-held devices
Wearable wireless devices—mobile wireless
computing devices for employees who work
on buildings and other difficult-to-climb
places
Cameras
Keyboard
Screen
Touch-panel display
http://www.media.mit.edu/wearables/index.html
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Wearable Devices for
Bell Canada Workers
Wearable technology
Powerful computer for pocket
Keyboard attached to the vest
Flatpanel display screen at the waist
Video camera attaches to his safety hat
Cell phone is attached and connected to the
computer
Battery pack against the back
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Wearable Devices (cont.)
Wearable devices enable workers to access:
Work orders
Repair manuals
This system was developed by Xybernaut
(xybernaut.com)
Problems with the technology are weather
related
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Supporting Mobile Employees (cont.)
Job dispatch
Transportation (delivery of food, oil, newspapers,
cargo, courier services, tow trucks)
Taxis (already in use in Korea and Singapore)
Utilities (gas, electricity, phone, water)
Field service (computer, office equipment, home
repair)
Health care (visiting nurses, doctors, social services)
Security (patrols, alarm installation)
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Supporting Mobile Employees (cont.)
Sales force automation (SFA) tools
Integrate software aimed at m-commerce
applications
Equipped with smartphones providing easy
access to customer data at the central office
Contact management information
Product and spare part availability
Deal tracking
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http://www.riverrun.com/solutions/
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Non-Internet Intrabusiness Applications
Wireless networking used for item picking in
warehouses
Delivery and order status updates
Online dispatching
Online diagnosis support from remote locations
Parts ordering/inventory queries
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Non-Internet
Intrabusiness Applications (cont.)
Mobile shop-floor quality control systems
enable
Voice reports by inspectors
Data collection from facilities
Transmission to a central processor
Salespeople connect to corporate networks
Remote database queries
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Internet-Based
Intrabusiness Applications
Applications implemented inside enterprises,
some examples:
Sonera (Finland): electronic funds transfer (EFT) of
paychecks
Chicago’s United Center: inventory can be taken in
a matter of hours
FedEx and UPS: access Web, e-mail, databases,
intranets, etc.
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Internet-Based
Intrabusiness Applications (cont.)
Bertelsmann AG: gives junior-level executives
wireless access to a company portal,
JuniorNet, accessible from almost anywhere
Kemper Insurance Company: lets property
adjusters report from the scene of an accident
U.S. Internal Revenue Service: equipping field
employees with mobile devices that allows
audits to be conducted anywhere, anytime
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Exhibit 8.9
Automated Wireless Workflow Applications
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Exhibit 8.10
Intelligent Office Connected by Wireless LAN
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Mobile B2B and
Supply Chain Applications
Both sell-side and buy-side of ERP
Unified messaging makes user’s device less of an
issue
Telemetry drives supply chain efficiency and
productivity through automation of:
Data capture
Improved billing timeliness and accuracy
Reduced overhead
Increased customer satisfaction
Collaboration among members of the supply chain is
facilitated by mobile capabilities
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Mobile Consumer and Personal
Service Applications
Mobile gaming devices
PDAs (Handspring’s Visor) with Flash RAM card
Nintendo’s Game Boy Advance
Sony’s PocketStation
Sega’s portable device connected to Dreamcast
Mobile gambling
Germany’s online lottery company fluxx.com available via
mobile terminals
Hong Kong, betting on horse races via cell phones is
popular
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Mobile Consumer and Personal
Service Applications (cont.)
Mobile entertainment
Music
Video—real-time streaming video
(packetvideo.com)
Hotels—hotel guests equipped with Bluetoothenabled mobile devices are instantly recognized
Intelligent homes and appliances
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Exhibit 8.13
Intelligent Home Connected by Wireless LAN
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Mobile Consumer and Personal
Service Applications (cont.)
Wireless telemedicine—use of mobile
telecommunications infrastructures and multimedia
technologies to provide medical information and
deliver health care services remotely
Other services for consumers
Providing news, weather, and sports reports
Online language translations
Information about tourist attractions (hours, prices)
Emergency services
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Mobile Consumer and Personal
Service Applications (cont.)
Non-Internet consumer applications
Smart cards used in transportation
“Contactless” cards (proximity cards)
used to pay bus and subway fares and
road tolls
Amplified remote-sensing cards have an RF
(radio frequency) of up to 30 meters used for
toll collection
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Highway 91 Project (cont.)
Six express toll lanes along a 10–mile
stretch in the median of the existing
Highway 91
Express lane system has only one
entrance and one exit, and it is totally
operated with EC technologies
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Highway 91 Project (cont.)
The system works:
1. Only prepaid subscribers can drive on the
road
2. Large sign over the toll way tells drivers
current fee for cruising the express lanes
3. Sensors in the pavement let the toll way
computer know that a car has entered; the
car does not need to slow or stop
4. AVI makes radio contact with a transceiver
installed above the lane
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Highway 91 Project (cont.)
The transceiver relays the car’s identity to the
control center, where a computer calculates the fee
for that day’s trip
Surveillance cameras record the license numbers of
cars without AVIs—can be stopped by police at the
exit or fined by mail
Video cameras along the toll way enable managers
to keep tabs on traffic
System accesses the driver’s account and the fare
is automatically deducted from the driver’s prepaid
account
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Highway 91 Project (cont.)
System saves commuters between 40 and
90 minutes each day, so it is in high
demand
Use of the same AVIs for other purposes:
Used in paid parking lots
Someday you may be recognized when you
enter the drive-through lane of McDonalds and
a voice asks you, “Mr. Smart, do you want
your usual meal today?”
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Location-Based Commerce
Location-based commerce (L-commerce)—ecommerce applications provided to customers
based on a user’s specific location
Location-based technologies
Global positioning systems—a wireless system
that uses satellites to enable users to determine
their position anywhere on the earth
Geographical information systems (GIS)—relates
longitude and latitude of GPS into place or
address (mapinfo.com)
GPS on handsets—stand-alone units for tracking
applications
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Exhibit 8.14
Location-Based Services Involving Maps
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Exhibit 8.15
GPS System
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L-Commerce Applications (cont.)
E-911—Calls from cellular phones to providers of
emergency services
Wireless carriers must provide feature that allows them to
identify number and location of the user
Mobile 911 calls must be forwarded immediately to the
appropriate agency
Automatic crash notification (ACN)—device (now
experimental) that will automatically notify police of a
vehicular accident
http://www.theautochannel.com/news/2002/08/05/145060.ht
ml
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Telematics and Telemetry
Applications
Telematics—integration of computers and wireless
communications to improve information flow using the
principles of telemetry
GM OnStar system—cellular phone and PDA are integrated to
provide personal information management, mobile Internet
services, entertainment on the vehicle vehicle dashboard
http://www.onstar.com/
Sophisticated text-to-speech and voice recognition capabilities
minimize driver distraction
Hands-off cell phone
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Telematics and Telemetry
Applications (cont.)
Use as a remote vehicle self-diagnostics tool
Daimler-Chrysler and Volvo experimented with
installation of GSM chip sets in cars
Monitor performance and to provide an early
warning system for potential problems
Chip sends a message to the manufacturer
indicating what the problem is
Manufacturer’s system analyzes various data
and provides a fix (via a software tool)
Developing faults found before they become critical
and continuous operation of the car can be ensured
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Barriers to L-Commerce
The accuracy of some of the location
technologies
The cost-benefit justification
M-spam
Especially when the receiver pays
The bandwidth of GSM networks
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Limitations of M-Commerce
Usability problem
Usability of a site is critical to attract attention
and retain user stickiness
Effectiveness, efficiency, satisfaction
Some mobile devices are found to be
ineffective
Customers want to find exactly what they are
looking for, easily and quickly, not possible in
the 2G text-based environment
More and faster multimedia will be available as
3G spreads
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Technical Limitations
Lack of standardized
security protocol
3G licenses
Security methodology
needs to be
incorporated in mobile
Customer confidence
is low
Insufficient bandwidth
Auctioned by
governments
Certain countries cannot
be served by these
devices
Transmission & power
consumption limitations
Limits the extent to
which mobility can be
viewed commodity
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Multipath interference
Weather and terrain
problems
Distance-limited
connections
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Technical Limitations (cont.)
WAP limitations
Speed—in 2002 connections to WAP sites are
still too slow
Cost—fees for mobile phone users are still too
high
Accessibility—as of spring 2002, fewer than
50,000 WAP-accessible sites worldwide (must
be written in WML)
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Technical Limitations (cont.)
Potential health hazards
Fear of radiation
Unsafe to drive and use wireless phone
Cell phones may interfere with sensitive medical
devices (pacemakers)
Lawsuits relating to the potential health hazards of
wireless devices have already been filed—public is
advised to adopt a precautionary approach in using
mobile phones (earphone device)
http://www.fda.gov/cellphones/qa.html
http://www.fcc.gov/cgb/consumerfacts/mobileph
one.html
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Implementing M-Commerce
Revenue models
Basic (fixed) fees
Point-of-traffic fees
Transaction fees
Content and
service charges
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Payment clearing
Hosting fees
Certification (PKI)
fees
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Implementing M-Commerce (cont.)
Consumer confidence and trust
Customers love free or inexpensive services like
those offered by iMode
Customers not willing to pay large amounts of
money for services unless they trust the
product/vendor
Confidence should increase with reliable payment
mechanisms
Research is being conducted in this area
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Implementing M-Commerce (cont.)
M-commerce value chain
Involves many partners
Success depends on
Coordination among participants
Sufficient compensation for all
Use ASP to deliver m-commerce or
Large companies contract other vendors to
complement their services
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