Chapter 10
Mobile Commerce
and Pervasive Computing
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99223 USA
chen@jepson.gonzaga.edu
http://barney.gonzaga.edu/~chen
Prentice Hall & Dr. Chen, Electronic Commerce
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Learning Objectives
1.
2.
3.
4.
5.
6.
7.
8.
Discuss the characteristics and attributes of m-commerce.
Describe the drivers of m-commerce.
Understand the technologies that support m-commerce.
Describe wireless standards and transmission networks.
Discuss m-commerce applications in finance, advertising,
and provision of content.
Describe the applications of m-commerce within
organizations.
Understand B2B and supply chain applications of mcommerce.
Describe consumer and personal applications of mcommerce.
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OPENING VIGNETTE – Nextbus:
A Superb Customer Service
• The Problem
– San Francisco buses have difficulty keeping
up with the posted schedule, especially
during rush hours
– The scheduled times become meaningless
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Nextbus (cont.)
• The Solution
– San Francisco implemented a system called
NextBus (nextbus.com)
– The system tracks public transportation
buses in real time
– NextBus calculates the estimated arrival
time of the bus to each bus stop on the route
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Nextbus (cont.)
– Arrival times are displayed in real time on:
• Internet-enabled wireless device
• The Internet and on a public screen at each bus stop
– GPS satellites let the NextBus information
center know where a bus is located making it
possible to calculate arrival times
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Nextbus (cont.)
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Nextbus (cont.)
• The Results
– Worries about missing the bus are
diminished
– A bus company can also use the system to
improve scheduling, arrange for extra buses
when needed, and make its operations more
efficient
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Nextbus (cont.)
• What we can learn…
– location-based e-commerce, a major part of
mobile commerce
– EC services are provided to customers
wherever they are located
– exemplifies pervasive computing - services
are seamlessly blended into the environment
without the user being aware of the
technology behind the scenes
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End of the Vignette
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10.1 Mobile Commerce
• Mobile commerce (m-commerce, mbusiness):
Any e-commerce done in a wireless
environment, especially via the Internet
– A natural extension of e-business
– Mobile devices create an opportunity to
deliver new services to existing customers
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Mobile Commerce Generations
• 1G: The first generation of wireless technology,
which was analog based
• 2G: The second generation of digital wireless
technology; accommodates mainly text
• 2.5G: Interim wireless technology that can
accommodate limited graphics
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Mobile Commerce
Generations (cont.)
• 3G: The third generation of digital wireless
technology; supports rich media such as video
clips
• 4G: The expected next generation of wireless
technology
• GPS: Global Positioning System, is a
satellite-based tracking system.
• Personal digital assistant (PDA): A handheld
wireless computer
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Mobile Commerce (cont.)
• Short Message Service (SMS): Technology that
allows for sending of short text messages on some
cell phones
• Enhanced Messaging Service (EMS): An extension
of SMS capable of simple animation, tiny pictures,
and short tunes
• Multimedia Messaging Service (MMS): The next
generation of wireless messaging; will be able to
deliver rich media
• Smartphone: Internet-enabled cell phones that can
support mobile applications
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Mobile Commerce (cont.)
Twelve applications of m-commerce
• 1.Mobile financial
applications (B2C,
B2B)
• 2. Mobile
advertising (B2C)
• 3. Mobile inventory
management (B2C,
B2B)
Replaced with Exhibit 10.2
Prentice Hall & Dr. Chen, Electronic Commerce
• 4. Proactive service
management (B2C,
B2B)
• 5. Product locating
and shopping (B2C,
B2B)
• 6. Wireless
reengineering (B2C,
B2B)
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Mobile Commerce (cont.)
Twelve applications of m-commerce
• 7. Mobile auction or
reverse auction
(B2C)
• 8. Mobile
entertainment
services (B2C)
• 9. Mobile office
(B2C)
• 10. Mobile distance
education (B2C)
• 11. Wireless data
center (B2C, B2B)
• 12. Mobile
music/music-ondemand (B2C)
Replaced with Exhibit 10.2
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Mobile Commerce:
Attributes and Benefits
What are the two
major barriers?
• Specific attributes of m-commerce
– Mobility : portability
– Broad reach : anytime, anywhere
• Benefits of value-added attributes
–
–
–
–
–
Ubiquity: real-time information
Convenience: new technologies
Instant connectivity: easily and quickly
Personalization: for individual consumers
Localization of products and services
(Location-based e-C; l-commerce)
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Exhibit 10.3 The Characteristics of M-Commerce
Characteristics
Value-added attributes
Product and service localization
Mobility
M-commerce
Product personalization
Ubiquity enhancement
Instant connectivity
Reachability
Convenience
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Mobile Commerce (cont.)
• Drivers of m-commerce
–
–
–
–
–
Widespread availability of devices
No need for a PC
The handset culture
Vendors’ push
Improvement of bandwidth
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Mobile Commerce (cont.)
• M-commerce value chain
–
–
–
–
–
–
–
Transport
Enabling services
Transaction support
Presentation services
Personalization support
User applications
Content aggregators
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10.2 Mobile Computing
Infrastructure
• M-commerce hardware
–
–
–
–
–
Cellular (mobile) phones: Internet enabled
Attachable keyboard
PDAs
Interactive pagers
Screenphones
A telephone equipped with a color screen, possibly a
keyboard, e-mail, and Internet capabilities
– E-mail handhelds
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Mobile Computing Infrastructure
(cont.)
• Software
– Microbrowsers
Wireless software designed with limited bandwidth
and limited memory requirements
– Mobile-client operating system
– Bluetooth
Chip technology that enables voice and data
communications between many wireless devices
through low-power, short-range, digital two-way
radio frequencies
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Mobile Computing Infrastructure
(cont.)
– Wireless Application Protocol
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
– Wireless Markup Language
Scripting language used for creating content in the
wireless Web environment; based on XML, removes
minus unnecessary content (e.g., animation) to
increase speed
– Voice XML
An extension of XML designed to accommodate voice
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Mobile Computing Infrastructure (cont.)
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Mobile Computing Infrastructure
(cont.)
• M-commerce security issues
– Physical security
a stolen device can provide the thief with valuable data
and digital credentials
– Transactional issues
transactions are routed over a public network (hence
the security must be maintained with both mobile
carriers and m-C servers)
– Post-transaction issues
some method of proving that a particular transaction
has occurred
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Mobile Computing Infrastructure (cont.)
(wireless)
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(wired)
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10.3 Mobile Financial Applications
• Mobile banking
– A large percentage of banks offer mobile access
to financial and account information
– The uptake of mobile banking has been
minimal
– Surveys indicate there is strong latent demand
for these offerings that is waiting for the
technology and transmission speeds to improve
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Mobile Financial Applications (cont.)
• Micropayments: Electronic payments for
small-purchase amounts (generally less than
$10)
– Wide-ranging applications, such as making
payments to parking garages, restaurants,
grocery stores, and public utilities
– Success depends on the costs of the
transactions
– The desire for this service
• Highest in Japan (50%)
• Lowest in US (38%)
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Mobile Financial Applications:
Bill Payments
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10.4 Mobile Shopping, Advertising,
and Content Providing
• Shopping from wireless devices
– Wireless shoppers are supported by services
similar to those available for wireline
shoppers
– Cell phone users also can participate in
online auctions (eBay and Amazon.com)
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Mobile Advertising and Content
Providing (cont.)
• Mobile portal: A customer interaction
channel that aggregates content and services
for mobile users
– Fee-based service (per each/monthly)
– News, sports, e-mail, entertainment, travel
information, restaurant and event information
Prentice Hall & Dr. Chen, Electronic Commerce
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10.5 Mobile Intrabusiness
and Applications
• Support for mobile employees
Mobile employees need the same corporate data
available to employees working inside the
company’s offices
• Wearable devices: Mobile wireless computing
devices for employees who work on buildings
and other difficult-to-climb places
– Cameras, Screen
– Keyboard, Touch-panel display
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Mobile Intrabusiness and Applications (cont.)
• Customer support
– Mobile access extends the reach of CRM—
both inside and outside the company, to
employees and partners alike on a 24/7 basis
• Salesperson: customer’s information
• Field service rep: availability of various parts
– Voice portal technology can be connected to
legacy systems to provide enhanced
customer service or to improve access to data
for employees
• Challenges
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10.6 Mobile B2B and
Supply Chain Applications
• Mobile computing solutions enable
organizations to:
– Respond faster to supply chain disruptions
– Proactive adjustment of plans or shifting
resources related to critical supply chain
events as they occur
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Mobile B2B and
Supply Chain Applications (cont.)
– Wireless telemetry is an integrated
messaging system that combines:
• wireless communications
• vehicle monitoring systems
• vehicle location devices
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Mobile B2B and
Supply Chain Applications (cont.)
– Technology enables:
• Large-scale automation of data capture
• Improved billing timeliness and accuracy
• Reduced overhead associated with the
manual alternative
• Increased customer satisfaction through
service responsiveness
• Facilitate collaboration among members of
the supply chain
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10.8 Location-Based Commerce
• Location-based commerce (L-commerce):
– M-commerce transactions targeted to
individuals in specific locations, at specific
times
• L-commerce offers:
– Safety: emergency service
– Convenience: what or who is nearby
– Productivity: optimize travel and time
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Location-Based Commerce (cont.)
L-commerce basic services revolve around five
key areas:
1. Location
 determining the basic position of a person or a thing
2. Navigation
 Plotting a route from one location to another
3. Tracking
 Monitoring the movement of a person or a thing
4. Mapping
 Creating maps of specific geographical locations
5. Timing
 Determining the precise time at a specific location
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Location-Based Commerce (cont.)
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Location-Based Commerce (cont.)
• Geographical information system (GIS):
System that integrates GSP data onto
digitized map displays
• Wireless 911 (e-911): Calls from cellular
phones to providers of emergency services
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Location-Based Commerce (cont.)
• Barriers to L-commerce
–
–
–
–
Accuracy
The cost-benefit justification
The bandwidth of GSM networks
Invasion of privacy
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10.9 Pervasive Computing
• Pervasive computing:
Invisible, everywhere computing that is
embedded in the objects around us
• Also know as:
– ubiquitous computing
– embedded computing
– augmented computing
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Embedded computing
[computing and communication]
[‘may-do-all’]
[‘one-does-all’]
Ubiquitous
computing
High
Nomadic
Level of embedded ness
Pervasive
computing
Traditional
Situated
computing
Low
Low
Prentice Hall & Dr. Chen, Electronic Commerce
computing
Current
organizational
development
Level of mobility
Mobile
computing
High
Figure 10.3 P374
42
Embedded computing
[computing and communication]
[processing and communication capabilities] [convergent view of the future]
Ubiquitous
computing
High
Nomadic
Level of embedded ness
Pervasive
computing
Traditional
Situated
computing
Low
Low
Prentice Hall & Dr. Chen, Electronic Commerce
computing
Current
organizational
development
Level of mobility
Mobile
computing
High
Figure 10.3 P374
43
Pervasive Computing (cont.)
• Embedded computers do not intrude on our
consciousness
Radio frequency identification (RFID):
Generic term for technologies that use radio
waves to automatically identify individual
items
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Pervasive Computing (cont.)
• Properties of pervasive computing
–
–
–
–
–
–
–
–
Invisible devices
Embedded microchips
Always on
Ubiquitous network
Life-enhancing applications
Consumer-centric solutions
Increasing productivity
Long-term vision
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Pervasive Computing (cont.)
•
Three technical foundation of pervasive
computing
1. Everyday objects have to contain
embedded microprocessors
2. A ubiquitous network is needed to connect
these microprocessors
3. The microprocessors must be able to
communicate with the ubiquitous network
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Pervasive Computing:
Applications
• Smart homes—home automation systems
support:
– Lighting; Energy management
– Water control; Home theater
– Home security and communications
• Smart appliances
Internet-ready appliance that can be controlled by a
small handheld device or desktop computer via a
home intranet or the public Internet
– Home Alliance (internethomealliance.com)
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Pervasive Computing:
Applications (cont.)
• Smart cars—increased use of
automobile microprocessors
– sophisticated engine controls to meet
emissions and fuel-economy standards
– advanced diagnostics; simplification of the
manufacture and design of cars
– reduction of the amount of wiring in cars
– new safety features
– new comfort and convenience features
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Pervasive Computing:
Applications (cont.)
• Growing trend is connecting car
microprocessors to mobile networks for
support services including:
–
–
–
–
Emergency assistance
Driving directions
E-mail
Automotive Collision Avoidance System
(GM)
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Pervasive Computing:
Applications (cont.)
• Services provided by GM’s OnStar (onstar.com)
include:
–
–
–
–
–
–
–
–
Air Bag Deployment Notification
Voice-activated nationwide wireless calling service
Emergency services and roadside assistance
Personal Concierge, which plans entire trips
Route Support
Stolen Vehicle Tracking
Remote Door Unlock
Remote Diagnostics
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Pervasive Computing: RFID
• Key technical elements of the Auto-ID
system include:
– RFID
– Electronic Product Code (EPC)
• Universal standard for product identification, stored
on an RFID tag
• Identify the manufacturer,product, version, and
serial number and more
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Pervasive Computing (cont.)
– Object Name Service (ONS)
Service that points a computer to an address on the
Internet where information about a product is stored
– Product Markup Language (PML)
Proposed new markup language, based on the XML
standard, that specifies how a product’s name, category,
manufacture date, expiration date, and the like will be
represented in a computer
– Savant
Software created by the Auto-ID center that gathers
information from RFID readers and passes it on to
various business applications
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10.10 Inhibitors and Barriers
to L-Commerce
• Usability problem—three dimensions:
– Effectiveness
– Efficiency
– Satisfaction
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Inhibitors and Barriers
to L-Commerce (cont.)
• Mobile visitors to a Web site are paying
premium rates for connections and are
focused on a specific goal
• To find exactly what they are looking for
easily and quickly customers need more
than text-only devices with small screens
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Inhibitors and Barriers
to L-Commerce (cont.)
• Technical limitations
– Lack of a standardized security protocol
– Insufficient bandwidth
– Transmission and power consumption
limitations
– WAP limitations
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Inhibitors and Barriers
to L-Commerce (cont.)
• Potential health hazards
– The issue of cellular radio frequency emissions
and the fear that radiation from wireless mobile
devices may induce cancer has been debated for
several years
– Drivers using mobile telephones have an
increased chance of being involved in a traffic
accident
– Use of cell phones may interfere with sensitive
medical devices
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Managerial Issues
1.
2.
3.
4.
What’s our timetable?
Which applications first?
Is it real or just a buzzword?
Which system to use?
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Summary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Characteristics and attributes of m-commerce
Drivers of m-commerce
Supporting technologies
Wireless standards and technologies
Finance, advertising, and content-providing applications
Intrabusiness applications
B2B applications
Consumer applications
Non-Internet applications
L-commerce
Pervasive computing
Limitations of m-commerce
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