Transcript 5 Networks and Collaboration As Business Solutions

Turban and Volonino
Chapter 7
Mobile Commerce
Information Technology for Management
Improving Performance in the Digital Economy
7th edition
John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid
Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University
Copyright 2010 John Wiley & Sons, Inc.
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Chapter Outline
7.1 Overview of Mobile Computing and Commerce:
Attributes, Benefits, Drivers, and Basic
Technology
7.2 Mobile Applications in Financial Services
7.3 Mobile Shopping, Advertising, and ContentProviding
7.4 Mobile Enterprise and Interbusiness
Applications
7.5 Mobile Consumer Services and Entertainment
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Chapter Outline (cont’d)
7.6 Location-Based Services and Commerce
7.7 Pervasive Computing, Context Awareness,
and RFID
7.8 Managerial Issues
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Learning Objectives
1. Discuss the characteristics, attributes, and drivers of
mobile computing and m-commerce.
2. Understand the technologies that support mobile
computing.
3. Discuss m-commerce applications in financial and other
services, advertising, marketing, and providing of
content.
4. Describe the applications of m-commerce within
organizations (mobile enterprise, intrabusiness).
5. Understand B2B and supply chain applications
(interorganizational) of m-commerce.
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Learning Objectives cont’d
6. Describe consumer and personal applications of mcommerce.
7. Describe location-based commerce (l-commerce).
8. Discuss the key characteristics and current uses of
pervasive computing.
9. Describe the major inhibitors and barriers of mobile
computing and m-commerce.
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• Problem – Competition is fierce; profit margins low.
Bloom needs appropriate technology to compete
with Wal-Mart.
• Solution – Wireless technology – mobile
checkstands, scanners, handhelds, Wi-Fi, RFID.
• Results – Better customer service & speedier
checkout; higher employee productivity; fewer
employees overall.
Food Lion Opens Lake Norman Bloom Store
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Wi-Fi – What is it?
Food Lion Checking Out With Wi-Fi
How WiFi Works
Wi-Fi
Wi-Fi® Technology Enabling Economic and Social
Development in Rural and Urban India
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7.1 Overview of Mobile Computing and
Commerce: Attributes, Benefits, Drivers, and
Basic Technology
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Mobile Computing
A Brief History of Mobile Computing
First laptop invented by Alan
Kay in 1968
First PDA introduced in 1983
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Mobile Computing – Attributes
The characteristics of M-commerce, mobility and broad reach break the barriers of
geography and time. Creating unique value added attributes.
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Ubiquity refers to the attribute of being available at any location at any given time. A
mobile terminal in the form of a smart phone or a PDA offers ubiquity.
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Convenience. It is very convenient for users to operate in the wireless environment. All
they need is an Internet enabled mobile device such as a smartphone.
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Instant connectivity. Mobile devices enable users to connect easily and quickly to the
Internet, intranets, other mobile devices and databases.
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Personalization. Personalization refers to customizing the information for individual
consumers.
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Localization of products and services. Knowing the users physically location at
any particular moment is key to offering relevant products and services.
Drivers of Mobile Computing & M-Commerce
• Widespread availability of mobile devices – 50% of
world population will use mobile phones in 2008.
• No need for a pc – smart phone may soon become
foremost tool connecting people to Internet.
• Handset culture – widespread use of cell phones.
• Declining prices, increased functionalities – declined by
50% in recent years while functionalities increase.
• Improvement of bandwidth – 3G & 3.5G
• Availability of Internet access in automobiles – numbers
of availability continue to increase
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Mobile Commerce
M-commerce and m-business is any e-commerce or e-business
activities performed in a wireless environment. It is not merely a
variation on existing Internet services; it is a natural extension of ebusiness creating new opportunities.
• Typical Applications include:
– Financial applications (B2C, B2B)
– Advertising (B2C)
– Inventory management (B2C, B2B)
– Field Service management
– Product locating and shopping
– Mobile office
– Mobile music / music-on-demand
Mobile Computing Revenue Model
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Access fees
Subscription fees
Pay-per-use
Advertising
Transactions fees
Hosting
…
The landscape of mobile computing and
commerce
(Source: Drawn by E. Turban.)
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How Wi-Fi works
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Wi-Fi Applications
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Barriers to Commercial Wi-Fi Growth
• Cost – it’s readily available; why pay for it?
• Security
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Mobile Computing Financial Services
Mobile financial applications include:
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Banking: offer mobile access to financial and account information.
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Wireless payments: provides mobile phones with a secure purchasing
tools capable of instantly authorizing payments
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Micropayments: electronic payments for small-purchase amounts
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(generally less than $10)
Wireless wallets: Software (e-wallet) that stores an online shopper’s
credit card numbers and other personal information.
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Bill payment services: Paying bills directly from a mobile device
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Brokerage services: stock trades and quotes
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Money transfers: from one account to another
These services have the potential to turn a mobile device into a
business tool, replacing banks, ATMs, and credit cards by allowing a
user to conduct financial transactions any time and from anywhere
Mobile Banking & Stock Trading
• Services offered include: bill payments &
money transfers; access administration &
check book requests; balance inquiries &
statements of account; interest & exchange
rates; sale/purchase of stocks.
• Increasing % of banks offer mobile access –
financial & account information.
• Wachovia “go mobile today” demo
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7.3 Mobile Shopping, Advertising,
and Content-Providing
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Mobile Computing – Shopping
Shopping from wireless devices enables customers to
perform quick searches, compare prices, use a shopping
cart, order, and view the status of their order using their
mobile wireless devices.
Some shopping applications include:
• Restaurant chains enabling consumers to place an
order for pick up or delivery virtually any time,
anywhere.
• eBay offers “anywhere wireless” services as does
Amazon.com
• Purchasing movie tickets by wireless device
Mobile Computing – Advertising
Knowing the current location of mobile users (using GPS) and their
preferences or surfing habits, marketers can send user-specific
advertising messages to wireless devices.
This location-sensitive advertising, will informing a user
about:
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sales at a specific shop or mall
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today’s specials at a restaurant
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loyalty programs
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and much more
all when a potential buyer is within close proximity.
•Targeted advertising
•Getting paid to listen to advertising
Mobile Computing – Mobile Portals
These are customer channels, optimized for mobility, that
aggregates and provides content and services to mobile users.
The services provided by mobile portals include:
• News
• Sports
• E-mail
• Entertainment
• Travel information
• Restaurants
• Event information
• Leisure-related services (e.g., games, TV and movie listings)
• Community services
• Stock trading.
Mobile Computing – Location-based Commerce
Location-based commerce (l-commerce) refers to the delivery
of advertisements, products and services.
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The l-commerce services revolve around five key areas:
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Location: determining the basic position of a person or a thing
(e.g., car or boat).
Navigation: plotting a route from one location to another.
Tracking: monitoring the movement of a person or a thing (e.g., a
package or vehicle).
Mapping: creating maps of specific geographical locations.
Timing: determining the precise time at a specific location.
Mobile Computing – L-Commerce Technologies
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Providing location-based services requires the following location-based
and network technologies:
– Position Determining Equipment (PDE). This equipment
identifies the location of the mobile device. (GPS)
– Location-based technology. This technology consists of
groups of servers that combine the position information
with geographic- and location-specific content to
provide an l-commerce service.
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Geographic content. Geographic contents consists of streets,
road maps, addresses, routes, landmarks, land usage, Zip codes,
and the like. (GIS)
Location-specific content. Location-specific content is used in
conjunction with the geographic content to provide the location
of particular services.
Mobile Computing – L-Commerce Applications
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Location-based advertising.
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The wireless device is detected, and similar to a pop-up ads on a PC,
advertising is directed towards the PC.
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A dynamic billboard ad will be personalized specifically for the occupant of an
approaching car.
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Ads on vehicles (taxicabs, trucks, buses) will change based on the vehicles
location.
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Emergency cell phone calls
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Telematics and telemetry applications: integration of computers and
wireless communications in order to improve information flow
Location-based services involving maps
(Source: Mapinfo.com, 2001.)
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Purchasing movie tickets with WAP Solo
(Source: Sadeh, 2002, Fig. 1.5.)
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Mobile Applications in Sports
Nike iPod Nano
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A smart phone with GPS system in l-commerce
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Global Positioning Systems (GPS)
For wikipedia & much
more, click here!
Artist's conception of
GPS satellite in orbit
Civilian GPS receiver ("GPS
navigation device") in a marine
application
Automotive navigation
system in a taxicab
GPS receivers are now integrated in
many mobile phones.
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L-Commerce Applications Barriers
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Accuracy of location-finding services
Cost-benefit justification
Bandwidth
Privacy
7.4 Mobile Enterprise and Interbusiness
Applications
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Mobile Enterprise Applications
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Supporting salespeople during customer visits
Supporting field employees during repairs
Supporting traveling of employees
Supporting employees working within the
organization
• Supporting employees driving trucks
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7.7 Pervasive Computing, Context
Awareness, and RFID
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Mobile Computing – Pervasive Computing
A world in which virtually every object has processing power
with wireless or wired connections to a global network. The
user doesn’t have to think about how to use the processing
power in the object; rather, the processing power
automatically helps the user perform a task (Invisible
Computing Everywhere).
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RFID (radio frequency identification) tag attached to items for sale.
Active badges worn as ID cards by employees.
Memory buttons are nickel-sized devices that store information relating to
whatever it is attached to.
Contextual computing, refers to the process of understanding the user’s
interactions within a valid context, to better understand what the consumer
needs, and what products or services they might possibly be interested in at
this time. Context awareness refers to capturing a broad range of contextual
attributes to better understand those needs.
Mobile Computing – Pervasive Computing (continued)
• Smart homes / offices / factories
• Smart cars
• Smart “Things”
– Barcodes.
– Auto Identification (Auto-ID)
– RFID: It is used in wireless tollbooth systems,
such as E-Z Pass.
How RFID works
(Source: C. Heinrich, RFID and Beyond, Indianapolis, Wiley
Publishing, 2005, Figure 3.5, p. 65.)
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Mobile Computing – Pervasive Computing (continued)
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Smart Schools. Exploring communication between students, teachers, and
the environment to create a smart learning environment.
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Intelligent Elder- Care
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Smart Offices.
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Digital Cities.
Embedded
Computing
Managerial Issues
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Ethical & legal issues.
Implementation issues.
Failures in mobile computing & m-commerce.
Mobile device management plans are too
often non-existent.
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