Chapter 6

Mobile Commerce &

Ubiquitous Computing

Social Commerce
Chapter 7
REVIEW
 E-government : e-commerce model in
which a government entity buys or
provides goods, services, or information
to businesses or individual citizens.
 Categories : Government-to-Citizens
(G2C), Government-to-Business (G2B),
Government-to-Government (G2G),
Internal Efficiency & Effectiveness (IEE)
REVIEW
 Mobile Government (M-Government) : the
mobile platform of e-government mostly to
citizens but also to businesses.
 E-Learning : the online delivery of information
for purposes of education, training, or
knowledge management.
 Distance Learning : formal education that
usually takes place off campus through online
resources.
REVIEW
 Online / Virtual Universities : an online
universities from which students take
classes from home or other offsite
locations via the Internet.
 Social Learning : learning, training, and
knowledge sharing in social networks and
by using social software tools for learning.
REVIEW
 Knowledge Management : the process of
capturing or creating knowledge, storing it,
updating it constantly, disseminating it, and
using it whenever necessary.
 Knowledge Management 6 Major Tasks:
Create Knowledge, Capture Knowledge,
Refine Knowledge, Store Knowledge,
Manage Knowledge, Disseminate
Knowledge.
REVIEW
 Organizational knowledge is embedded in the
following resources:
a) Human Capital
b) Structured / Organizational Capital
c) Customer & Partner Capital
 Collaborative commerce : An e-commerce
technology that can be used to improve
collaboration within & among organizations,
frequently in supply chain relationships
 Mobile Commerce &
Ubiquitous Computing

Chapter 6
 Mobile Commerce

 Mobile commerce (m-commerce / m-business) :
 Any business activity conducted over a wireless
telecommunications network or from mobile
devices.
 M-commerce can be done via the internet, via
private communication lines, or over other
computing networks.
 Example : mobile banking, mobile website,
mobile stock trading, mobile real estate
 5 Attributes of M-commerce

1. Ubiquity
 Available at any location at any time
2. Convenience
 Portable, multi modes, functionality & usability
 while size remains small, connect easily &
quickly, and online databases.
3. Interactivity
 Transactions, communications, and service
provision are immediate & highly interactive.
 5 Attributes of M-commerce

4. Personalization
 Truly personal computing devices.
5. Localization
 Knowing user location at any particular moment
 7 Drivers of M-commerce

1. Widespread availability of more powerful
mobile devices
 Mobile devices are increasing in power,
functionality, and features

2. The handset culture

 The widespread use of cell phones especially
among the 12 to 25-year-old age group.
 7 Drivers of M-commerce

3. The service economy
 The transition from a manufacturing to a service-
based economy  mobile-based service
4. Vendor’s push
 Ads from mobile communication network
operator (e.g. Telkomsel) & manufacturer of
mobile devices (e.g. Samsung)
MiFi = wireless
router Huawei +
jaringan 4G LTE
Telkomsel
 7 Drivers of M-commerce

5. The mobile workforce and mobile
enterprise
 Workforce are “going mobile”
6. Improved price/performance ratio
 The price of wireless devices & mobile services 
even as available services & functionality 
7. Improving bandwidth
 3 G, 3.5 G, 4 G provides better capabilities
Benefits of M-commerce for
Organizations

 Increases sales due to ease of ordering (anywhere,
anytime)
 Allows location-based commerce for more sales and
revenue
 Provides an additional channel for advertising and
distribution (wider reach)
 Improve customer satisfaction through real-time apps
 Improves time utilization & productivity of mobile
employees
 Deliver digitized products & services directly to mobile
devices, etc
Benefits of M-commerce for
Individuals & Customers

 Allows internet commerce from anyplace, anytime
 Provides a choice of mobile devices for the same
transactions
 Expedites communication (e.g. get fast answer, find
where people are, do product comparisons)
 Increases affordability over desktop computing
 Enables true personalization
 Reduces cost
 Mobile Computing

 Wireless mobile computing (mobile computing) :
computing that connects a mobile device to a
network or another computing device, anywhere,
anytime.
 Workers / employees who travel frequently, on
site / in the field workers, workers in transit, etc
 Mobile devices : laptop, notebooks, tablet computers,
ultra portables, ultra-mobile PCs, PDA (Personal
Digital Assistant), smartphone
 Mobile Computing

Other mobile devices :
 Smartbooks (smartphone + laptop)
 Mobile browsers (e.g. opera mobile, firefox mobile)
 Scanners
 Dashtop mobile : mounted on the vehicle dashboard
(GPS navigation, vehicle tracking system, etc)
 Mobile Computing

 Wearable devices
(people wear these
devices on their
arms, clothes, or
helmets)
 Mobile Computing
Software & Services

 Mobile Portal : a gateway to the internet optimized for
mobility.
 Short Message Service (SMS) : sending & receiving short
text messages on mobile phones
 Multimedia Messaging Service (MMS) : wireless
messaging that is able to deliver rich media (video and
audio)
 Interactive Voice Response (IVR) : a voice system that enables
user to request & receive information and to enter & change
data through a telephone.
 Voice Portal : a website with an audio interface that can be
accessed through a telephone call
 Wireless Telecommunication
Networks

 Personal Area Network (PAN) : for device to device
connections within a very short range ([Link])
 Wireless LAN & Wireless Fidelity (Wi-Fi) : enables users
to make short range wireless connections to the
internet / another network.
 Municipal Wi-Fi Networks : a large number of connected
hotspots / Wi-Fi
 WiMAX : a wireless standard for making broadband
network connections over a medium-size area
 Wireless WAN : a telecommunications network that offers
wireless coverage over a large geographical area
Mobile Enterprise Solutions

 Mobile Enterprise :
 Application of mobile computing inside the
enterprise
 Mobile applications conducted by
enterprises to improve the operations of the
employees, the facilities, and the supply
chains, within the enterprise and with its
business partners
Mobile Enterprise Solutions

 Mobile Worker : any employee who is away from
his or her primary work space at least 10 hours a
week or 25 percent of the time.
 Example : sales team, traveling executives,
telecommuters / homeworker, employees working
in corporate yards / warehouse, and repairs or
installation employees who work at customers’ sites
or in the field.
Mobile Enterprise Solutions

 Example of mobile enterprise apps at AT&T:
 The sales application : provides a complete view
of a customer (accounts, contacts, etc).
 The support application : empowers IT support
technicians with real-time access anywhere.
 The service application : provides field service
workers with bidirectional access to real-time
customer, inventory, and other job-related
information
Mobile Enterprise Solutions

 Another example of mobile enterprise :
 Vehicle management system : using GPS,
companies can track the location of their vehicles
in real time and assist drivers to solve problems.
 Surveillance via smartphones
 iPads for tabletop ordering
 Order foods and do the payment using iPad (in
John F. Kennedy International Airport)
 Mobile Entertainment

 Definition : any type of leisure activity that utilizes
wireless telecommunication networks, interacts with
service providers, and incurs a cost upon usage.
 Some major types of mobile entertainment :
a) Mobile music & video : Apple & iTunes, Amazon
MP3 & Amazon video on demand, YouTube,
Netflix
b) Mobile games : COC, HayDay, Clash Royale
c) Mobile gambling
 Another Example of
Mobile Apps

 Nike & Apple introduced an iPod shoe called
Nano  provide real time feedback on distance,
time, and calories burned during a work out
 Tickets to sporting (and other entertainment)
events can be sent today to smartphone by seller
 Your physician can submit an order of medicine
for you from a handheld device directly to the
pharmacy
 In agriculture, wireless devices can guide tractors
to work even in the dark
 Location-Based
Mobile Commerce

 Location-based m-commerce (l-commerce) :
delivery of m-commerce transactions to individuals
in a specific location, at a specific time.
 The given services focus on 5 key factors :
a. Location : determining the basic position of a person
or a thing
b. Navigation : plotting a route from one location to
another
c. Tracking : monitoring the movement of a person or a
thing
 Location-Based
Mobile Commerce

d. Mapping : creating maps of specific geographical
locations
e. Timing : determining the precise time at a specific
location
 L-commerce 5 basic components :
a. Mobile devices (e.g. Samsung smartphone)
b. Communication network (e.g. Telkomsel)
c. Positioning component (e.g. GPS)
d. Service / application provider (e.g. Google Maps)
e. Data / content provider (e.g. Google Indonesia)
 Location-Based
Services & Applications

 Location-Based Service (LBS) : an information
service accessible from and to mobile devices
through a mobile network utilizing the ability to
make use of the geographical position of the mobile
device to deliver a service to the user.
 LBS is related to the concept of Geolocation : the
process of automatically identifying a web user’s
physical location without that user having to provide
any information.
 Location-Based
Services & Applications

 Examples of LBS :
 Personnel tracking & workers tracking
 Navigation  sending information about the position
of available / empty parking space in Paris, France
 Products & assets tracking
 Finding your friends
 Finding the nearest business/service (ATM, hotel, etc)
 Providing turn-by-turn navigation to any address
 Pet tracking & text alert
 Ubiquitous Computing

 Ubiquitous Computing (ubicom) :
 Computing capabilities that are being embedded into the
objects around us, which may be mobile or stationary.
 Invisible, everywhere computing
 In a ubicom environment, almost every object has
processing power and a wired / wireless connection
to a network. It is a model of human computer
interaction.
 Also called embedded computing, augmented
computing, or pervasive computing.
 Ubiquitous Computing

 Ubicom based upon 3 base designs :
1. Smart Devices (mobile, wireless service)
2. Smart Environments (of embedded system
devices)
3. Smart Interaction (between devices)
 Ubiquitous Computing

 4 principles of Ubicom :
1. Decentralization : centralized computer 
personal computer
2. Diversification : one-computer-does all to one in
which specialized
3. Connectivity : ubicom devices will be seamlessly
connected to the network or each other
4. Simplicity : devices designed for simplicity of use
 Example of
Ubiquitous Computing

• Smart Grid : an electricity network managed by
utilizing digital technology (e.g. self-healing from power
disturbance)
• Smart Home & Appliances : home appliances (e.g. TV,
lighting, temperature control) can “talk” to each other
via internet / home intranet.
• Smart & Driverless Cars : microprocessors inside the
car can control the entertainment system & temperature,
decide when the automatic transmission should shift
gears, and remember seat position for different drivers.
Social Commerce

Chapter 7
 Social Commerce

 Social commerce / social business : e-commerce
activities & transactions through social
networks and/or via web 2.0 software
 4 concepts are part foundation of social
commerce :
I. Social Media
II. Social Marketing
III. Social Capital
IV. Social Media Marketing
 I. Social Media

 Definition : the online platforms & tools that
people use to share opinions, experiences,
insights, perceptions, and various media
(photos, videos, and music) with each other.
 Users produce, control, use / consume, and
manage the content.
 The network structure enables communication
and collaboration on a massive scale.
 II. Social Marketing

 Definition : a combination of social policy and
marketing practices to achieve a set of social
behavioral goals within a target audience
 Identify community problems / needs 
Determine behavioral changes needed
 Example : health promotion (encouraging
positive health choices without offering a
specific product)
 III. Social Capital

 Definition : a sociological concept that refers to
connections within and between social networks
 The core idea is that social networks have
value. Just as physical or human capital can
increase productivity (individual and
collective), so do social contacts affect the
productivity of individuals and groups
IV. Social Media Marketing


Definition : the use of social media platforms
(networks, online communities, blogs, wikis, or
other online collaborative media) for marketing,
market research, sales, CRM, & customer service
 Online marketing strategy based on the utilization
of online social media configurations  create
content that attracts attention and encourages
readers to share it with their social network
friends.
 Ex : social media can build brands using WoM
 11 Category of
Social Networking Space
I.

Leisure-oriented sites : socially focused public sites,
open to all users (e.g. Facebook, Orkut, Hi5)
II. Professional networking sites : sites focusing on
business networking (e.g. LinkedIn)
III. Media sharing sites : sites focusing on the
distribution & consumption of user-generated
multimedia content (e.g. YouTube, Flickr)
IV. Virtual meeting place sites : sites that are essentially
a 3-D virtual world, build & owned by its residents
(the users) (e.g. Second Life)
 11 Category of
Social Networking Space
V. Communication sites

 Blogs : blogger, opendiary, wordpress, etc
 Microblogging : twitter, plurk, tumblr, yammer
VI. Collaboration sites
 Wikis : wikipedia, wikimedia, PB works, wetpaint
[Link] bookmarking / tagging
 Example : CiteULike, Google reader, stumble upon
[Link] News
 Example : Digg, Mixx, Reddit, Now Public
 11 Category of
Social Networking Space

IX. Social Network Aggregation
 Example : Nutshell Mail, Friend Feed
X. Events
 Example : Upcoming, Eventful, [Link]
XI. Enterprise-owned sites : private sites owned by
companies (e.g. [Link])
 Social Shopping

 Definition : a method of e-commerce where
shoppers’ friends become involved in the
shopping experience (social media + e-
commerce).
 They do it via the concept of Communal
Shopping : a method of shopping where the
shoppers enlist others to participate in the
purchase decision (through opinions &
ideas).
 Social Shopping

 Social shopping communities help shoppers
connect with each other based on tastes,
location, age, gender, etc.  Give shoppers
additional points of view & boosted confidence
in the decision to buy / not to buy.
2 shopping aids in social commerce :
I. Ratings & Reviews
II. Social Recommendations & Referrals
 6 Types of
Ratings & Reviews

1. Customer ratings & reviews : feedback from
real customers.
2. Expert ratings and reviews : the view from
the independent voice of authority,
professional, or prosumers.
3. Sponsored reviews : paid-for reviews,
either customer bloggers / experts on social
media platforms.
 6 Types of
Ratings & Reviews

4. Conversational marketing : people
converse via e-mail, blog, live chat,
discussion groups, and tweets.
5. Video product reviews : review using
videos.
6. Customer testimonials : customer stories.
4 Types of Recommendations
& Referrals

Analogy : asking a fellow shopper for advice.
Recommendations come from people you
know  more trustworthy then reviews by
strangers. Types :
1. Share with your network (social
bookmarking) : recommended products,
deals, and tips are bookmarked &
syndicated to friends, fans, and followers.
4 Types of Recommendations
& Referrals

2. Referral programs : rewarding customers
and partners for referring new customers
3. Social recommendations : personal
shopping recommendations based on
profile similarities to other customers
4. Innovative methods : automate personal
recommendations based on algorithms
comparing similarities between customer
purchasing histories & profiles.
 Social Advertising

Most ads in social media come in 2 major
categories :
A. Social Ads : placing advertisement in paid-for
media space on social media platforms (e.g.
Facebook, YouTube, Twitter) as well as on blogs
& forums.
B. Social Apps : creating branded online
applications that support social interactions and
user contributions (e.g. Nike+)
 Social Advertising

Other innovative ways to advertise in social media :
 Facebook Page & Facebook Store
 Promoted tweets on Twitter, boost post on Facebook
 Tweets the online store & stories to your customers
 Integrate ads, product pages, or corporate portals
into YouTube videos
 Add a social bookmarking (share button) to your
products’ pages / corporate portals
 Mobile advertising : ads on cell phones & other
mobile devices
 Social Customer
Relationship Management

Social Customer Relationship Management (SCRM)
 A customer engagement strategy in support of
companies’ defined goals & objectives toward
optimizing the customer experience
 “Customer service for social media customer using social
media platform”
SCRM is an extension of CRM that focus on people,
processes, and technology associated with customer
touch points & interactions.
 Example of
SCRM Implementation

Safeway (grocery chain) :
 Has a customer club where members can get in-store
discounts and members also get e-mails with coupons
& what is on sale.
 Online newsletter with health news, recipes, shopping
tips, etc.
 Safeway invites to join company’s Facebook Fan,
Twitter, and blog.
 In the blog, team members are posting items & conduct
active discussion among the Safeway community.