Management Information

Systems

BITS Pilani
Pilani Campus
 BITS Pilani
Pilani Campus

Lecture Session-7
08- 02-2015
BITS/CM/HHSM ZC471
 Chapter 7

Mobile Commerce

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

Learning Objectives
Characteristics, attributes, and drivers of mobile computing and m-commerce.
Understand the technologies that support mobile computing.
M-commerce applications in financial, advertising, marketing, and providing of
content.
Describe the applications of m-commerce within organizations (mobile
Enterprise, intrabusiness).
Understand B2B and supply chain applications (inter-organizational) of m-
commerce.
Describe consumer and personal applications of m-commerce.
Describe location-based commerce (L-commerce).
Key characteristics and current uses of pervasive computing
Describe the major barriers of mobile computing and m-commerce.

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

 IT in Practice – Snippets of
Information
·Opening case: Food Lion excels with wireless
innovations
·Bloom; Mobile Checkstand, Personal scanner, Cart-mounted Tablet PCs,
Tablet PCs for employees, Mobile manager, WiFi access; Future?
·Closer Look 7.1 – Wireless advertising in action –
Examples;
·Vindigo.com, MyAvantGo.com, ...; Permission marketing;
·IT at work 7.1 – Wearable devices for Bell Canada
workers – Screen, camera, touch-panel display, keyboard, speech translator,...
·Closer Look 7.2 – Mobile applications in sports – related
applications; iPod Shoes, Levi, ESPN, FitSense Tech.,...
·IT at work 7.2 – Avoiding gridlock: reducing traffic
congestion through use of IT; Sweden (SRA)
·IT at work 7.3– NextBus: a superb customer service; US

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

 IT in Practice – Snippets of
Information
·IT at work 7.4 – Follow the money: using RFID for
reducing waste in Pharmacies
·IT at work 7.5 – Examples of RFID use
·Circuit city stores, Medical equipment, Defense, Toll systems,
tracking people, tracking animals, supply chains,...
·Closer Look 7.3 – RFID and privacy and other
risks – Unique identifying number, separate database; encryption
and authentication protocols;

·End of chapter case – Hertz goes wireless

·Quick rentals, Instant returns, NeverLost Onboard, Car
locations, Additional customer services, ...

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

7.1 Overview of Mobile
Computing and Commerce
Evolution of M-Computing
A Brief History of Mobile
·Physical connectivity Computing
·Easy-to-carry around
1. Size
2. Replacing wires ...
•Combining mobile devices with wireless tech
·A real-time connection
·NDC – National Distributing Co.

First PDA introduced in

1983 First laptop invented by
Alan Kay in 1968
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 M-C: Basic Terminologies
achieve lead

Mobile Comp+- Basic Terminology

Bluetooth. A chip technology wireless standard designed for temporary, short-
range connection (data and voice) among mobile devices and/or other devices (see
bluetooth.org).
Enhanced messaging service (EMS). An extension of SMS that is capable of simple
animation, tiny pictures, and short melodies.
Global positioning system (GPS). A satellite-based tracking system that enables the
determination of a GPS device's loca-tion. (See Section 7.7 for more on GPS.)
Multimedia messaging service (MMS). The next generation of wireless messaging, this
technology will be able to deliver rich media.
Personal digital assistant (PDA). A small portable computer, such as Palm handhelds
and the Pocket PC devices from com-panies like H-P.
Short messaging service (SMS). A technology for sending short text messages (up to
160 characters in 2006) on cell phones. SMS messages can be sent or received
concurrently, even during a voice or data call. Used by hundreds of millions of
users, SMS is known as "the e-mail of m-commerce." Some companies offer
multilanguage text creation.
Smart phones. Internet-enabled cell phones that can support mobile applications.
These "phones with a brain" are becoming standard devices. They include WAP
microprocessors for Internet access and the capabilities of PDAs as well (see
Malykhina, 2007, and Null, 2007).
WiMax. A wireless technology based on the IEEE 802.16-2004 standard, designed to
provide Internet access across metro areas to fixed (not moving) users. It is
considered wireless broadband technology. For details, see Chapter 4 and
Technology Guide 4.
Wireless application protocol (WAP). A technology that offers Internet browsing from
wireless devices.
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 Attributes that Drive M-
Commerce
·Mobility (portability) & Broad Reach (reachability)
Five value added attributes
·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.
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 Drivers of Mobile Computing
& M-Commerce
·Widespread availability of mobile devices – 75%
of world population use mobile phones in 2014.
·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, 4G

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

 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.

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

 Applications of Mobile
Commerce
Varshney and Vetter (2002)
1. Mobile financial applications – B2C, B2B
2. Mobile advertising – B 2 C
3. Mobile inventory management – B2C, B2B
4. Proactive service management – B2C, B2B
5. Product locating and shopping – B2C, B2B
6. Wireless reengineering – B2C, B2B
7. Mobile auction or reverse auction – B 2 C
8. Mobile entertainment services – B 2 C
9. Mobile office – B 2 C
10. Mobile distance education – B 2 C
11. Wireless data centre – B2C, B2B
12. Music on demand – B 2 C
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 The landscape of mobile-lead
computing and commerce.
TECHNICAL M-COMMERCE
F O U N D AT I O N S CAPABILITIES
A P P L I C AT I O N S

Te c h n o l o g i e s
Wi-Fi, GPS,
WI Max
I
Wireless Networks Attributes
Applications
Transmission
media Ubiquity Vl-commerce
Mobility
L-commerce (LBS)
Internet Access Broad reach
Standards Connectivity Intrabusiness
Convenience
Mobile consumer
Personalization applications
Hardware
Mobile
devices Cost reduction Personal services

Software Support Services

Microbrowser Mobile portals Pervasive Computing
Voice portals Smart cars, home
Wearable devices offices, appliances,
Security digital cities, hospitals,
factories, IRFID

Management: Cost-benefit, planning, coordination, integration,

implementation, limitations

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WLAN and WiFi
·How
& LAN - it works?
hotspot – WAP
·Benefits:
and·Examples
convenience Lower cost
applications of WiFi
· TableMusic
service, 7.2: Airports,
stores, In-flight
McDonald,
Mining companies,....
·Barriers
growth of to
WiFi commercial
··Cost
Mitchelland – Security
2008 –
Provides
process a step by step
·freenetworks.org–
Community wireless
network
projects
globe around the
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 How Wi-Fi works?

R o u t e r

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 Wi-Fi Applications
achieve lead

Examples W i - F i A p p l i c a t i o n s
Like other airports in the -United States, the Minneapolis—St. Paul
International air-port is served by Wi-Fi. The fee is $7.95 for unlimited
daily access. Northwest Airlines has 570 hotspots in the United States
(jiwire.c-cam, accessed May 2006).
·L u f t h a n s a o f f e r s i n - f l i g h t s e r v i c e o n i t s l o n g - h a u l f l e e t . T h e h o t s p o t s
on the
planes are connected to the Internet via satellites. American Airlines,
Alaska _Airlines, JetBlue, and -Virgin _America_ offer connection to the
Web to fliers as of 2008_ Many other airlines plan or already offer
similar service-
... Since 2002, T-Mobile has installed Wi-Fi networks in several thousand Starbucks
stores in the United States_ T-Mobile is also installing Vvri-Fi in hundreds of
Borders Books 8c Pvlusic stores. T-Mobile charges annually, monthly, daily, or pay
as you go (see h.atspc)r_trricAbile.ccArfrz/services_plcirts_istrn).
·M c D o n a l d ' s n o w o f f e r s W i - F i h o t s p o t s i n m o r e t h a n 3 0 , 0 0 0 r e s t a u r a n t s
around the world, and the number is increasing daily. Local service
providers provide high-quality wireless service through online credit card
payment, subscriptions, prepaid cards, and sometimes promotional coupons
(see .Frzccitmalcis.ccam/wireless.html).
·U s i n g a w i r e l e s s t i c k e t i n g s y s t e m , U n i v e r s a l S t u d i o s i n H o l l y w o o d i s
shortening the waiting lines for tickets at its front gate. The ticket
sellers, armed with Wi-Fi—enabled devices and belt-mounted printers, not
only sell tickets but also provide information. For details, see Scanlon
(2003).
·CVS Corp., the largest retail pharmacy in the United States, uses Wi-Fi—
based devices throughout its 6,200 stores. The handheld computers support a
variety of in-store applications, including direct store delivery, price
management, inventory control, and receiving. Benefits include faster
transfer rates, increasing productivity and perfor-mance, reduced cost, and
improved customer service_ For details, see S y / t 7 - z b c r i _ c e : m 7 (1998, 2003).
Several mining companies in Europe installed hundreds of Wi-Fi hotspots in
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t h e i r c o a l m i n e s . I n f o rBITS/CM/HHSM
m a t i o n f r o mZC471
d r i l l s a n d t r u c k s , s u c h a sBITS
t hPilani,
e i r Pilani Campus
 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.com “go mobile today” demo

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 Wireless E-Payment Systems

·Secure and self contained purchasing tool – cellular

network
·Smart parking payment terminals – solar system –
utilization information
·Micropayments – transaction costs of mobile carriers
·Taxi fares, train fares, vending machines
·Parking, grocery, restaurants
·Mobile Wallets (Wireless Wallets – e-W: piece of s/w)
·NTT DoCoMo, Western Union, Motorola
·Wireless bill payments
·HDFC Bank of India

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 7.3 Mobile Shopping, Advertising,
and Content-Providing
· Shopping
Wireless from
Devices and
· Motorola
·Food.com
Virtual
·ordering/pick-up
Vendio
gNumber – and
Mobile–
·eBay(M-eBay)
Japan – largest m-
·commerce
Success in world
shoppingfactor:
· Targeted
advertising
impulse
· Customizing for
·locations
Multimedia –
·bandwidth
Gettingto paid
listening an for
advt.
·(SingTel)
SingTel Mobile
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 Purchasing movie tickets with
WAP Solo

·M-Portals
·AvantGo
·Voice Portals
·iPing.com
·Not through
browsers

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 7.4 Mobile Enterprise and
Inter-business Applications
·Application of Mobile enterprises
·Retail: FoodLion
·Hospitals
·Operations: Driscoll Strawberry Associates
·Tracking employees: Todd Pacific Shipyards (Now, known
as Vigor Shipyards)
·Wearable Devices: Screen, Camera, Touch-panel display,
Keyboard, Speech translator, Watch-like-displays
·SFA, Job dispatch
·Agriculture, national security: biometrics: facial, iris
·Wireless intra-business applications
·Kemper Insurance Co.; Medical Care organization;

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 M-Enterprise and
Inter-business Applications
·Customer Support and Mobile CRM software
·Seibel – CRM suite
·SFA
·Field Services
·Mobile B2B and Supply Chain applications
·Wireless telemetry – Wireless comm., vehicle
monitoring, vehicle location devices
·Sales team of Adidas America

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

 7.5 Mobile Consumer Services
and Entertainment
·Mobile entertainment
·Mobile Games Interoperability Forum (MGIF)
·Mobile games – gambling (legal)
·Hotel Services & Travel
·WiFi, Bluetooth Tech.
·Other Services
·Mobile Social Networks
·M-Government
·Non-internet applications: smart cards (contactless cards or
proximity cards used in transportation), payment through
cell phones (embedded)
·E-Commerce to M-Commerce to L-Commerce
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 7.6 Location-Based Services
and Commerce
·Delivery of products / services
·Customers
·Safety, convenience, productivity
Key concepts
1.Location
2.Navigation
3.Tracking
4.Mapping
5.Timing
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L-commerce Technologies

·Position Determining Equipment (PDE)

·Identifying the mobile device
·Mobile Positioning Centre (MPC)
·It is a server that manager location information sent from PDEs
·Location-based technology
·Groups of servers that combine the position information with
location specific content to provide L-commerce service
·Geographic content
·Digitized street maps, road maps, addresses, routes, landmarks, ...
·Location-specific content
·It is used in conjunction with geographic content to provide the location
of particular services
These technologies rely on
·Global Positioning Systems
·Triangulation - three satellites
·Geographical Information System
·Translating latitude and longitude information to address
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 A smart phone with GPS
system in L-commerce.
GPS Satellites

•
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•
. . . . . . . . . . • . . 4 m
• •
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. •
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.. . .. . ·.
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.... . . PDE
I
.. ..
.•. . , a
. • . Location Server
. •
• Cellular Phone Station

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 Global Positioning Systems
(GPS – 24 satellites)

Artist's conception of For info on GPS from Automotive navigation

GPS satellite in orbit wikipedia, click here system in a taxicab
or on any of the
pictures

Civilian GPS receiver ("GPS GPS receivers are now

navigation device") in a marine integrated in many mobile
application
phones.
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 Location-based applications
and services involving maps

·NextBus
·Failure of a car navigation system
·Examples: Luxor casino in Las Vegas, GlobalPetFinder,
Wal-Mart – Weather, Pizza deliver tracking – Papa John
e-911 (wireless 911), ACN (crash notification)
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 Location-Based Applications

·Telematics and telemetry

·Telematics: Integration of computers and wireless
technologies to improve information flow
·Telemetry: Science that measures physical remoteness by
means of a wireless transmission from a remote source to a
receiving location

·Barriers to l-commerce
·Accuracy
·Cost-benefit justification
·Bandwidth of GSM networks
·Privacy
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 7.7 Pervasive Computing, Context
Awareness, and RFID
·Pervasive: Every object has processing power
·Embedded, ubiquitous, ambient or augmented, invisible

·Contextual computing & Context awareness

·Enhancement of user’s interactions
·Capturing a no. of contextual attributes to understand user
·Applications of pervasive computing
·Smart homes – applications “talking” to one -another
·Emergency management
·Lighting
·Smart cars
·Large scale pervasive systems
·Smart schools, Smart offices, Smart factories
·Digital cities, Digital States, Digital world
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 Managerial Issues

·Ethical & legal issues.

·Benetton Group SpA (Sisley)
·RFID Public Information Centre, 2006
·Privacy
·Implementation issues.
·Timelines, setting of priorities, etc.
·Failures in mobile computing & m-commerce.
·Northeast Utilities – energy
·Mobile device management plans
·Too often non-existent.

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus

 Summary

·Characteristics, attributes, and drivers of mobile

computing and m-commerce.
·Technologies that support mobile computing.
·M-commerce applications in financial and other
services (advertising, marketing, and providing of
content).
·Applications of m-commerce within organizations
(mobile enterprise, intrabusiness).
·B2B and supply chain applications (inter-
organizational) of m-commerce.

08/02/2015 BITS/CM/HHSM ZC471 BITS Pilani, Pilani Campus