13.Diverse_E-Com_M-Com_Ubiquitousx - POSMIT

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Diverse E
-
Commerce:

M
-
Commerce and Ubiquitous

Rev:
Feb, 2012




Euiho

(David)
Suh
, Ph.D.


POSTECH Strategic Management of Information and Technology Laboratory

(POSMIT: http://posmit.postech.ac.kr)

Dept. of Industrial & Management Engineering

POSTECH

Contents



Discussion Questions

1

M
-
Commerce

1)

Introduction

2)

Value Chain

3)

Attributes of M
-
Commerce

4)

Characteristics of M
-
Commerce

5)

Mobile Computing Infrastructure

6)

Other Issues

2

Ubiquitous

1)

Basic Concepts on Ubiquitous Computing

2)

Capabilities of Ubiquitous Computing

3)

Generic Features of Ubiquitous Computing

4)

U
-
Commerce

3

Case Study

3

Discussion Questions


What are some other potential
M
-
commerce
applications
?



Why
do you think M
-
commerce
is increasingly
popular?



Find a real case for applying
Ubiquitous technology



What is
L
-
Commerce (
Location
-
based
Commerce) and its characteristic?

4

Definition of Mobile
Commerce (M
-
Commerce)


M
-
Commerce













Any transaction conducted over a mobile telecommunications
network


Representing
a subset of all e
-
commerce transactions
both
in business
-
to
-
consumer

and
the business
-
to
-
business
area


1.
M
-
Commerce

1
)
Introduction

5

Differences between M
-

and E
-

commerce


A
permanent factor that makes difference between M
-

and

the
rest of the
E
-

commerce is…


The
possibility of the user to engage anywhere and anytime in M
-
commerce transactions;

for some this is the crucial difference



The
main functional distinction between the E
-
commerce in general

and
M
-
commerce
are…


Dynamic
Location Based Services (LBS) that use the actual location of the terminal on earth in
one way or the other to perform the
transaction


cf.) Ordering
taxi in a foreign city based on the positioning of the terminal and the
taxi



Further
difference
are…


The
properties of the truly portable
terminals
as compared to PCs or
laptops:

The
simple UI facilities, slower processor,
smaller
memory resources,
and
tiny energy
reserves



A fourth main difference
is…


The
relatively small wireless link transmission capacity offered to the
terminals,

although
the capacity is increasing with every network
generation



1.
M
-
Commerce

1
)
Introduction

6

Classes of M
-
Commerce
Applications


1.
M
-
Commerce

1
)
Introduction

7

Mobile Commerce Value Chain


Source : The mobile commerce value chain: analysis and future developments, Stuart J. Barnes,



International
Journal of Information Management 22 (2002) 91

108

1.
M
-
Commerce

2) Value Chain

8

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



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

1.
M
-
Commerce

3
) Attributes of M
-
Commerce

9

Characteristics of M
-
Commerce


1.
M
-
Commerce

4)
Characteristics of M
-
Commerce

10

The Drivers
of M
-
Commerce


Why
it is increasingly
popular

Widespread availability of devices

No need for a PC

Handset culture

Vendors’ push

Declining prices

Improvement of bandwidth

High
speed networks

Explosion of EC in general

1.
M
-
Commerce

4)
Characteristics of M
-
Commerce

11

Landscape of mobile computing and commerce


1.
M
-
Commerce

5)
Mobile Computing Infrastructure

12

Wireless
Environment


Wireless Devices


Individuals
are finding it convenient and productive to use wireless devices for several reasons:


Can make productive use of time that was formerly wasted


Their work locations are becoming much more flexible


Enables them to allocate their working time around personal and professional obligations


The Wireless Application Protocol (WAP) is the standard that enables wireless devices to access
Web
-
based information and services


Microbrowsers

can work with smaller screen sizes and lower
bandwidth




Wireless Transmission
Media


Wireless media, or broadcast media, transmit signals without wires over the air or in space


The major types of wireless media are:


Microwave


Satellite


Radio


Infrared


Each of these media has relative advantages and disadvantages

1.
M
-
Commerce

5)
Mobile Computing Infrastructure

13

Advantages and Disadvantages of Wireless Media


Channel

Advantages

Disadvantages

Microwave


High bandwidth


Relatively inexpensive


Must have unobstructed line of sight


Susceptible

to environmental
interference

Satellite


High bandwidth


Large

coverage area


Expensive


Must have unobstructed line of sight


Signals experience propagation delay


Must use

encryption for security

Radio


High bandwidth


Signals pass through walls


Inexpensive

and easy to install


Creates electrical interference
problems


Susceptible to snooping unless
encrypted

Infrared


Low to medium bandwidth


Used

only for shot distances


Must have unobstructed

line of sight

1.
M
-
Commerce

5)
Mobile Computing Infrastructure

14

Applications and Security Issues


M
-
Commerce
Applications



Financial
services: Banking
and payment


Intrabusiness

applications: Content
, services, and voice communication portals


Location
-
based
applications: Shopping
, location
-
based services and advertising


Telemedicine



Wireless
Security


Wireless networks provide numerous benefits, but they also present challenges to management
because of their inherent lack of security


Four major threats to wireless networks include:


Rogue access
points


unauthorized
access points to a wireless network


War driving


locating WLANs while driving (or walking) around a city elsewhere, can be used to obtain a
free Internet connection and possible access to data and other resources


Eavesdropping


accessing data traveling over wireless networks


RF jamming


a person or a device intentionally or unintentionally interferes with wireless transmissions

1.
M
-
Commerce

6)
Other Issues

15

Ubiquitous Computing


Ubiquitous?


Being or seeming to be
everywhere

at the same
time



Ubiquitous
Computing


Invisible, everywhere computing that does not sit on the desktop but lies deep inside the
environment we live
in



Beginning of Ubiquitous
Computing






Ubiquitous Computing


The ideal computing environment which never annoy or bother users, but wait for being used silently


Characteristics:


All computers should be
connected each other


It should be
invisible


It should be available
everywhere


It should be
unified with normal life, embedded to all things and
circumstance


2
. Ubiquitous

1) Basic Concepts on Ubiquitous Computing


Mark Weiser


The chief technology officer
at
XEROX
PARC


The father of Ubiquitous
Computing

16

Different from…


vs.
Mobile
Computing


Only one access point



vs.

Multimedia
Computing


Demand the focus of your attention.


Ubiquitous computing : Multimedia is faded into
background
of
UC



vs
. Virtual Reality


Puts people inside a computer
-
generated world


Primarily a horse power problem

Virtual Reality


Forces the computer to live out here in the world
with people


A very difficult integration of human factors, computer science,
engineering, and social sciences

Ubiquitous Computing

2
. Ubiquitous

1) Basic Concepts on Ubiquitous Computing

17

Capabilities of
Ubiquitous Computing


Calm Technology


Technologies should be organized so users as not to sense the fact that they are being served by computers



Invisibility


To be as unobtrusive as possible, users’ workload to operate any computer systems must be lightened



Embeddedness


Small intelligent devices are embedded in the physical world and connected to the fixed and/or wireless
network



Mobility


Client devices must be operated under the mobile and flexible network infrastructure



Nomadicity


The system provides a rich set of computing and communication capabilities and services to nomadic users



Portability


The system provides services with hands
-
free or at least one
-
handed light devices



Proactiveness


The system needs to be self
-
triggered to capture a priori what its users want to increase the service quality


2
. Ubiquitous

2)
Capabilities of Ubiquitous Computing

18

Generic Features of Ubiquitous
Computing (1/2)


Transparent Interfaces


Hide their presence from user


Provide interaction between user and application


Examples:


Gesture recognition


Speech recognition


Free form pen interaction


Computational perception etc.


Need:


Flexible interfaces


Varied interfaces that can
provide
similar
functionality



Context Awareness


Context: Information about the environment with which the application is associated


‘Location’, ‘temperature’, ‘time’, and ‘activity’ are simple examples of context


Context aware application:


Is one which can capture the context


Assigns meaning to it


Changes behavior accordingly


Need:


Applications that are context aware and allow rapid personalization of their services



Awareness of

Context(s
)


Capture
Experience


Transparent


Interfaces

2
. Ubiquitous

3)
Generic Features of Ubiquitous Computing

19

Generic Features of Ubiquitous
Computing (2/2)


Automated Capture


To capture our day
-
to
-
day experience


To make it available for future use.


Constraints:


Multiple streams of information


Their time synchronization


Their correlation and integration


Need:


Automated tools that support capture


integration and future access of information



Awareness of

Context(s
)


Capture
Experience


Transparent


Interfaces

2
. Ubiquitous

3)
Generic Features of Ubiquitous Computing

20

U
-
Commerce


U
-
Commerce


The use of ubiquitous networks to support personalized and uninterrupted communications
and transactions between a firm and its various stakeholders to provide a level of value over,
above, and beyond traditional
commerce


An alternative view of time and space for business and marketing



Key
forces of
U
-
Commerce


Bounded
rationality


Consumers are capable of a wide variety of reasoning errors when making decisions


Managers have difficulty in managing a multitude of customers on a one
-
to
-
one
basis


Attention deficit
society


Consumers are increasingly bombarded with more and more messages


It is
estimated that a single weekday issue of the New York Times contains more information than the average person
in
seventeenth
-
century England came across in a lifetime


Conscious attention is a scarce resource


Some messages need to be attenuated and others
amplified



2
. Ubiquitous

4)
U
-
Commerce

21

Impacts on Business Services

Ubiquitous Computing will lead to Ubiquitous Commerce

(Right
message, to the right person, at the right time!)


Impact
on Business Strategy


awareness, accessibility, responsiveness


Point of Presence! Context!


Change in nature of service providers

(
bursty
, point
-
of
-
presence value, service level commitments)


New services (businesses) will arise


2
. Ubiquitous

4)
U
-
Commerce

22

Case Study


3. Case Study

23

Reference


Euiho

Suh
,
“Mobile Commerce
(PPT Slide)”, POSMIT Lab.

(POSTECH Strategic Management of Information and Technology Laboratory)



Euiho

Suh
,
“Ubicomp1
(PPT Slide)”, POSMIT Lab.

(POSTECH Strategic Management of Information and Technology Laboratory)



Efraim

Turban & Linda
Voloninos
,
“Information Technology for Management


Seventh
Edition”,
John Wiley & Sons Inc.,
Chapter
7