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 

3
Exhibit 8.1
NextBus Operational Model
4
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 ...

5
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

6
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
7
Mobile Applications in Industry

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
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

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
8
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

9
Exhibit 8.2
Classes of M-Commerce
Applications
10
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)

11
Services
Banking
Trading
Shopping
Entertainment
Ticketing
And more…
12
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
13
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

14
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
15
them

Exhibit 8.3
Characteristics of M-Commerce
16
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
17
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
18
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

19
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

20
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.
21
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
22
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
23
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
24
device.
Mobile Computing Infrastructure
(cont.)

Networks and access

Wireless transmission media
Microwave
 Satellites
 Radio
 Infrared
 Cellular radio technology


Wireless systems
25
Exhibit 8.5
Delta Airlines Wireless System
26
Wireless Standards and Security

M-commerce supported by
Standards
 Security
 Voice systems

27
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

28
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
29

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)
30
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
31
Spain.
Voice Systems for M-Commerce




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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
32
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
33
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

34
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)
35
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

36
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
37
Exhibit 8.6
Bill Payments by Cell Phone
38
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

39
Exhibit 8.7
Mobile Shopping Supported by CRM
40
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

41
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

42
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

43
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)

44
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

45
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
46
Mobile Intrabusiness
and enterprise
application
47
Support of mobile
employee

They need the same
data available to
employees working
inside the company
office
48
Examples

Sale support

Customer service
support
49
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

50
Example

Job dispatch :
it allows improved
response with
reduced resource ,
real time tracking
of work order
(transportation ,
health care ,
utilities) etc.
51
Mobile sales
automation

It equipped with
smart phone ,
providing them
with easy access
to customer data
at the central
office
52
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
53
54
Internet – based
interabusiness
application
 Intelligent
offices : this
arrangement
improves
productivity and
the quality of
office operation
55
56
Mobile B2B and supply
chain application
57
Mobile B2B
58
Supply chain
59


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
60
Mobile consumer and
personal service
application
61
62
Mobile gaming and
gambling
63
Mobile Entertainment
(Music & video)
64
Hotels
65
66
Intelligent homes and
appliances
67
68
Wireless telemedicine

Telemedicine the
use of mobile
telecommunications
infrastructures and
multimedia
technology to provide
medical information
and deliver health
care services
remotely
69
 Location
based commerce
(L-commerce)
70
Location based
commerce (Lcommerce)

E-commerce applications
provided to customers based on a
user’s specific location
71
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.
72
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)
73
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 .
74
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.
75
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 )
76

barriers to
l-commerce :

the accuracy of
some of the
location
technologies
the cost benefits
justification
M-spam
The bandwidth of
GSM networks



77
Limitation of Mcommerce
78
The usability problem

Several
limitation are
slowing down the
spread of mcommerce and
leaving many
customers
disappointed and
dissatisfied .
79
Usability dimensions



Effectiveness
Efficiency
Satisfaction
80
Current mobile device
ineffective Why ?!?!?!?!







Restricted keyboards
Pocket –size screen
Limited storage capacity
Difficult to download
Paying premium rates
Only text
Black &white
81
Technical limitation

Lack of
standardized
security protocol

Insufficient
bandwidth

3G licenses
82
o
o
Transmission and power
consumption limitations
Wap limitation:



speed
Cost
Accessibility
83
84