Improving Performance in the Digital Economy

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Chapter 7


Mobile Commerce



Information Technology for Management

Improving Performance in the Digital Economy


7
th

edition

John Wiley & Sons, Inc.


Slides contributed by Dr. Sandra Reid

Chair, Graduate School of Business & Professor, Technology

Dallas Baptist University

Turban and Volonino

7
-
1

Copyright 2010 John Wiley & Sons, Inc.

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 Content
-
Providing

7.4 Mobile Enterprise and Interbusiness
Applications

7.5 Mobile Consumer Services and Entertainment

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2

Copyright 2010 John Wiley & Sons, Inc.

Chapter Outline (cont’d)

7.6 Location
-
Based Services and Commerce

7.7 Pervasive Computing, Context Awareness,
and RFID

7.8 Managerial Issues

Copyright 2010 John Wiley & Sons, Inc.

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3

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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4

Copyright 2010 John Wiley & Sons, Inc.

L
earning Objectives cont’d

6. Describe consumer and personal applications of m
-
commerce.

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.

Copyright 2010 John Wiley & Sons, Inc.

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5


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.


Copyright 2010 John Wiley & Sons, Inc.

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6

Food Lion Opens Lake Norman Bloom Store

Wi
-
Fi


What is it?

Copyright 2010 John Wiley & Sons, Inc.

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7

How WiFi Works


Wi
-
Fi


Wi
-
Fi® Technology Enabling Economic and Social
Development in Rural and Urban India


Food Lion Checking Out With Wi
-
Fi


Copyright 2010 John Wiley & Sons, Inc.

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8

7.1 Overview of Mobile Computing and
Commerce: Attributes, Benefits, Drivers, and
Basic Technology

Mobile Computing

Copyright 2010 John Wiley & Sons, Inc.

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9

A Brief History of Mobile Computing


First laptop invented by Alan
Kay in 1968

First PDA introduced in 1983

Copyright 2010 John Wiley & Sons, Inc.

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10

Mobile Computing


Attributes


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.


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.


Instant connectivity.

Mobile devices enable users to connect easily and quickly to the
Internet, intranets, other mobile devices and databases.


Personalization.

Personalization refers to customizing the information for individual
consumers.


Localization of products and services
. Knowing the users physically location at
any particular moment is key to offering relevant products and services.

The characteristics of M
-
commerce,
mobility

and
broad reach

break the barriers of
geography

and
time
. Creating unique value added attributes.

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


Copyright 2010 John Wiley & Sons, Inc.

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Mobile Commerce



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

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 e
-
business creating new opportunities.

Mobile Computing Revenue Model


Access fees


Subscription fees


Pay
-
per
-
use


Advertising


Transactions fees


Hosting




The landscape of mobile computing and
commerce

Copyright 2010 John Wiley & Sons, Inc.

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15


(Source: Drawn by E. Turban.)

How Wi
-
Fi works

Copyright 2010 John Wiley & Sons, Inc.

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16

Wi
-
Fi Applications

Copyright 2010 John Wiley & Sons, Inc.

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17

Barriers to Commercial Wi
-
Fi Growth


Cost



it’s readily available; why pay for it?


Security

Copyright 2010 John Wiley & Sons, Inc.

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18

Mobile Computing
Financial Services

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 financial applications include:


Banking:
offer mobile access to financial and account information.



Wireless payments:
provides mobile phones with a secure purchasing
tools capable of instantly authorizing payments


Micropayments:

electronic payments for small
-
purchase amounts
(generally less than $10)


Wireless wallets:
Software (e
-
wallet) that stores an online shopper’s
credit card numbers and other personal information.


Bill payment services:
Paying bills directly from a mobile device


Brokerage services:
stock trades and quotes


Money transfers:
from one account to another

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

Copyright 2010 John Wiley & Sons, Inc.

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20

Copyright 2010 John Wiley & Sons, Inc.

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7.3 Mobile Shopping, Advertising,
and Content
-
Providing

Mobile Computing


Shopping

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

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.

Mobile Computing


Advertising

This location
-
sensitive advertising, will informing a user
about:


sales at a specific shop or mall


today’s specials at a restaurant


loyalty programs


and much more

all when a potential buyer is within close proximity.

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.


Targeted advertising


Getting paid to listen to advertising

Mobile Computing


Mobile Portals


The services provided by mobile portals include:


News


Sports


E
-
mail


Entertainment


Travel information


Restaurant
s


Event information


Leisure
-
related services
(e.g., games, TV and movie listings)


Community services


Stock trading.

These are customer channels, optimized for mobility, that
aggregates and provides content and services to mobile users.

Mobile Computing


Location
-
based Commerce


The l
-
commerce services revolve around five key areas:


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.

Location
-
based commerce (l
-
commerce)

refers to the delivery
of advertisements, products and services.

Mobile Computing


L
-
Commerce Technologies


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.


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


Location
-
based advertising.


The wireless device is detected, and similar to a pop
-
up ads on a PC,
advertising is directed towards the PC.


A dynamic billboard ad will be personalized specifically for the occupant of an
approaching car.


Ads on vehicles (taxicabs, trucks, buses) will change based on the vehicles
location.


Emergency cell phone calls


Telematics and telemetry applications:
integration of computers and
wireless communications in order to improve information flow

Location
-
based services involving maps

Copyright 2010 John Wiley & Sons, Inc.

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28


(Source: Mapinfo.com, 2001.)

Purchasing movie tickets with WAP Solo

Copyright 2010 John Wiley & Sons, Inc.

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(Source: Sadeh, 2002, Fig. 1.5.)

Mobile Applications in Sports

Copyright 2010 John Wiley & Sons, Inc.

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30

Nike iPod Nano

A smart phone with GPS system in l
-
commerce

Copyright 2010 John Wiley & Sons, Inc.

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31

Global Positioning Systems (GPS)

Copyright 2010 John Wiley & Sons, Inc.

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32

Artist's conception of
GPS satellite in orbit

Civilian GPS receiver ("
GPS
navigation device
") in a marine
application

GPS receivers are now integrated in
many mobile phones.

Automotive navigation
system

in a taxicab

For wikipedia & much
more, click here!

L
-
Commerce Applications Barriers


Accuracy of location
-
finding services


Cost
-
benefit justification


Bandwidth


Privacy

Copyright 2010 John Wiley & Sons, Inc.

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7.4 Mobile Enterprise and Interbusiness
Applications

Mobile Enterprise Applications


Supporting salespeople during customer visits


Supporting field employees during repairs


Supporting traveling of employees


Supporting employees working within the
organization


Supporting employees driving trucks

Copyright 2010 John Wiley & Sons, Inc.

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35

Copyright 2010 John Wiley & Sons, Inc.

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36

7.7 Pervasive Computing, Context
Awareness, and RFID

Mobile Computing


Pervasive Computing


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.

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
).

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

Copyright 2010 John Wiley & Sons, Inc.

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(Source: C. Heinrich, RFID and Beyond, Indianapolis, Wiley
Publishing, 2005, Figure 3.5, p. 65.)

Mobile Computing


Pervasive Computing
(continued)


Smart Schools.

Exploring communication between students, teachers, and
the environment to create a smart learning environment.


Intelligent Elder
-

Care


Smart Offices.


Digital Cities.

Embedded

Computing

Managerial Issues


Ethical & legal issues.


Implementation issues.


Failures in mobile computing & m
-
commerce.


Mobile device management plans are too
often non
-
existent.

Copyright 2010 John Wiley & Sons, Inc.

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42

Copyright 2010 John Wiley & Sons, Inc.


All rights reserved. Reproduction or translation of this
work beyond that permitted in section 117 of the 1976
United States Copyright Act without express permission
of the copyright owner is unlawful. Request for further
information should be addressed to the Permission
Department, John Wiley & Sons, Inc. The purchaser may
make back
-
up copies for his/her own use only and not
for distribution or resale. The Publisher assumes no
responsibility for errors, omissions, or damages caused
by the use of these programs or from the use of the
Information herein.

Copyright 2010 John Wiley & Sons, Inc.

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43