Improving Performance in the Digital Economy

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

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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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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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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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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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Copyright 2010 John Wiley & Sons, Inc.

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Figure IT7eU


•
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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Food Lion Opens Lake Norman Bloom Store

Wi
-
Fi
–

What is it?

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

Mobile Computing

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A Brief History of Mobile Computing


First laptop invented by Alan
Kay in 1968

First PDA introduced in 1983

Table 7.1

Copyright 2010 John Wiley & Sons, Inc.

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Value Added Attributes that Drive
Development of M
-
Commerce

•
Ubiquity

–

refers to the attribute of being available at
any location at any given time. (ex: smart phone or
PDA)

•
Convenience

–

Internet enabled; many available hot
spots.

•
Instant Connectivity

–

quick connections to Internet,
intranets, other mobile devices & databases.

•
Personalization

–

preparation of customized
information for individual consumers.

•
Localization of products & services

–

wireless device
has GPS.




Copyright 2010 John Wiley & Sons, Inc.

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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


Copyright 2010 John Wiley & Sons, Inc.

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Drivers of Mobile Computing & M
-
Commerce
(cont’d)

•
Centrino chip

–

connects to wireless LAN; low
usage of electricity; high level security.

•
Availability of Internet access in automobile

–

numbers of availability continue to increase.

•
Networks

–

3G, 4G, and adoption of Wi
-
Fi as
wireless LAN.


Copyright 2010 John Wiley & Sons, Inc.

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Figure 7.1

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The landscape of mobile computing and commerce.

(Source: Drawn by E. Turban.)

Figure 7.2 How Wi
-
Fi works.

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Table 7.2

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Barriers to Commercial Wi
-
Fi Growth

•
Cost

–

it’s readily available; why pay for it?

•
Security

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Copyright 2010 John Wiley & Sons, Inc.

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7.2 Mobile Applications in Financial Services

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

Shopping from Wireless Devices

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Figure 7.3

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Purchasing movie tickets with WAP Solo.

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

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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

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7.5 Mobile Consumer Services and
Entertainment

Mobile Applications in Sports

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Nike iPod Nano

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7.6 Location
-
Based Services and Commerce

Location
-
Based Services

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Location
-
Based M
-
Commerce Services



Defined & historic development…

Figure 7.4

Copyright 2010 John Wiley & Sons, Inc.

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A smart phone with GPS system in l
-
commerce.

Global Positioning Systems (GPS)

Copyright 2010 John Wiley & Sons, Inc.

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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!

Figure 7.5

Copyright 2010 John Wiley & Sons, Inc.

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Location
-
based services involving maps.

(Source: Mapinfo.com, 2001.)

Copyright 2010 John Wiley & Sons, Inc.

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7.7 Pervasive Computing, Context
Awareness, and RFID

Figure 7.6

Copyright 2010 John Wiley & Sons, Inc.

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

Copyright 2010 John Wiley & Sons, Inc.

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7.8 Managerial Issues

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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Copyright 2010 John Wiley & Sons, Inc.

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-
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damages caused by the use of these programs or
from the use of the Information herein.

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