ELC 200
Day 19
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Agenda
Questions from last Class?
Quiz 2 results
5 A’s, 5 B’s, 2 C’s and 1 non-submit
Assignment 5
Due April 17
Two more assignments left
EBiz plan and presentations
Due may 8 @ 8AM
More to come
Two more Quizes
April 17 & May 4
Today's’ discussion is on Knowledge Management and Mobile
Commerce
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Question
Define the following
Data
Information
Knowledge
Understanding
Wisdom
Where does learning (and teaching) fit??
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Knowledge Management
Knowledge management (KM)—the process of
capturing or creating knowledge, storing it,
updating it constantly, and interpreting and using
it whenever necessary
Knowledge base—the repository for an enterprise’s
accumulated knowledge
Promotes an integrated approach to the process of
identifying, capturing, retrieving, sharing,
evaluating enterprise information assets:
Documented
Tacit expertise stored in individuals’ heads
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Online Advice and Consulting
Medical advice
Management consulting
Legal advice
Gurus
Financial advice
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Portal Speed R&D at Amway
For effective R&D, Amway must develop new
products in a streamlined and cost-efficient
manner
To support design activity the need fast and
easy access to:
Product specifications
Design criteria
Costs
Formulas
Production schedules
Sales trends
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Amway (cont.)
Artemis—a business intelligence and
knowledge management portal
Easier access to corporate knowledge
Browser-based intranet application that enables
R&D to:
Quickly find the information and knowledge
they require
Collaboration tools
Database for locating company experts
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Amway (cont.)
Lotus Notes/Domino search agent enables
employees to:
Pull data from disparate corporate sources
Generate dynamic reports
Work in a highly secured environment
Time required to access information:
Dropped from days to minutes or seconds
Enabling fast “what-if” investigations
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Chapter 8
Mobile Commerce
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Learning Objectives
Describe the characteristics and attributes of
m-commerce
Describe the drivers of m-commerce
Understand the supportive technologies and their
capabilities
Describe the wireless standards and transmission
networks
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Learning Objectives (cont.)
Describe applications of m-commerce to
finance, marketing, and customer service
Describe the applications of m-commerce
within organizations
Describe B2B and supply chain applications
of m-commerce
Describe consumer and personal applications
of m-commerce
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Learning Objectives (cont.)
Describe some non-Internet m-commerce
applications
Describe location-based commerce
(l-commerce)
Describe the major limitations
Describe some implementation issues of
m-commerce
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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
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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
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Exhibit 8.1
NextBus Operational Model
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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
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Exhibit 8.2
Classes of M-Commerce Applications
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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)
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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
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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
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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 them
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Exhibit 8.3
Characteristics of M-Commerce
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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
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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
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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
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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
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Mobile Computing Infrastructure (cont.)
Networks and access
Wireless transmission media
Microwave
Satellites
Radio
Infrared
Cellular radio technology
Wireless systems
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Exhibit 8.5
Delta Airlines Wireless System
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Wireless Standards and Security
M-commerce supported by
Standards
Security
Voice systems
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Wireless Standards
Wireless standards
Time-division Multiple Access (TDMA) (wrong
in book)
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
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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
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Security Issues
Viruses
Smart card security solutions
Voice communication can be intercepted by
hackers (phreakers)
One solution is an embedded biometric add-on
Back-end security solutions—public key
infrastructure (PKI) and M-CERT (mobile
certification)
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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
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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
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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
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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)
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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
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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
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Exhibit 8.6
Bill Payments by Cell Phone
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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
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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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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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Exhibit 8.9
Automated Wireless Workflow Applications
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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 8.10
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 bout 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
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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
Sophisticated text-to-speech and voice recognition
capabilities minimize driver distraction
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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
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)
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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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Managerial Issues
What is our timetable?
Which applications first?
Is it real or just a buzzword?
Which system to use?
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Summary
Characteristics and
attributes of mcommerce
Drivers of mcommerce
Supporting
technologies
Wireless standards
and technologies
Finance and
marketing
applications
Intrabusiness
applications
B2B applications
Consumer
applications
Non-Internet
applications
L-commerce
Limitations of mcommerce
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