Overview Ch. 7
 Describe e-government to citizens (G2C) and to
business (G2B)
 Describe various e-government initiatives
 Discuss online publishing and e-books
 Describe e-learning and virtual universities
 Describe knowledge management and
dissemination
 Describe the processes involved in conducting
forward and reverse e-auctions
 Describe e-auction fraud and implementation
issues
 Analyze future directions of m-auctions
Chapter 8
M-Commerce
Learning Objectives
 Describe the characteristics, attributes and
drivers of m-commerce
 Understand the supportive technologies and their
capabilities
 Describe the applications of m-commerce within
organizations
 Describe B2B and supply chain applications of mcommerce
 Describe consumer and personal applications of
m-commerce
 Describe location-based commerce
(l-commerce)
 Describe some implementation issues of mcommerce
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
(2006-2010)
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
Attributes of M-Commerce [2]
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
Characteristics of M-Commerce
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
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, e-mail, and
Internet capabilities
 E-mail handhelds
 Wirelined—connected
by wires to a network
Mobile Computing Infrastructure [2]
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
Mobile Computing Infrastructure [3]
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
Mobile Computing Infrastructure [4]
Networks and access
 Wireless transmission media
•
•
•
•
•
Microwave
Satellites
Radio
Infrared
Cellular radio technology
 Wireless systems
Wireless Standards and Security
M-commerce supported by
 Standards
 Security
 Voice systems
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
Wireless Standards [2]
 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
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 MCERT (mobile certification)
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
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
Voice Portals
 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
Mobile Financial Applications
Wireless electronic payment systems
 Mobile phones become secure, selfcontained 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)
Mobile Financial Applications [2]
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
Bill Payments by Cell Phone
Mobile Shopping Supported by CRM
Targeted Advertisement
Personalization of services and
enhanced user interface for wireless
Web pages from barnesandnoble.com
 Knowing user preferences or surfing habits
user-specific advertising messages to the
location of mobile users
 Using GPS marketers can send locationsensitive messages can be sent
Targeted Advertisement [2]
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
Targeted Advertisement [2]
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
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)
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
Supporting Customers & Business Partners
(Consumer Services) [2]
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
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
Supporting Mobile Employees [2]
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)
Supporting Mobile Employees [2]
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
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
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
Mobile Consumer and Personal Service
Applications [2]
 Mobile entertainment
 Music
 Video—real-time streaming video
(packetvideo.com)
 Hotels—hotel guests equipped with
Bluetooth-enabled mobile devices are
instantly recognized
 Intelligent homes and appliances
Mobile Consumer and Personal Service
Applications [3]
 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 bout tourist attractions (hours, prices)
 Emergency services
Location-Based Commerce
 Location-based commerce (L-commerce)
 E-commerce 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
Location-Based Services Involving Maps
GPS System
L-Commerce Applications
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
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
• Sophisticated text-to-speech and voice recognition
capabilities minimize driver distraction
Telematics and Telemetry Applications [2]
 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
Barriers to L-Commerce
The accuracy of some of the location
technologies
The cost-benefit justification
M-spam
The bandwidth of GSM networks
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
Technical Limitations
 Lack of standardized
security protocol
 Security methodology
needs to be
incorporated in mobile
 Customer confidence is
low
 Insufficient
bandwidth
 Limits the extent to
which mobility can be
viewed commodity
 3G licenses
 Auctioned by
governments
 Certain countries cannot
be served by these
devices
 Transmission & power
consumption
limitations
 Multipath interference
 Weather and terrain
problems
 Distance-limited
connections
Technical Limitations [2]
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)
Technical Limitations [3]
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)
Implementing M-Commerce
 Revenue models
 Basic (fixed) fees
 Point-of-traffic
fees
 Transaction fees
 Content and
service charges
 Payment clearing
 Hosting fees
 Certification (PKI)
fees
Implementing M-Commerce [2]
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
Implementing M-Commerce [3]
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
Summary
 Characteristics and
attributes of mcommerce
 Drivers of m-commerce
 Supporting technologies
 Wireless standards and
technologies
 Finance and marketing
applications
 Intrabusiness
applications
 B2B applications
 Consumer applications
 Non-Internet
applications
 L-commerce
 Limitations of mcommerce
Exercise
Discuss the benefits of voice-based
systems in m-commerce.
Discuss a mobile application that supports
customers or provides a personal service.
Discuss one of the limitations of mcommerce. What are some options to
decrease the importance of this limitation?