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Title: Mobile Commerce and


1
Lecture 10
  • Mobile Commerce and
  • Pervasive Computing

2
Roadmap
  • Mobile Computing
  • Wireless Telecommunications Networks
  • Mobile Commerce
  • B2B M-Commerce and Supply Chain Management
  • Location-based Mobile Commerce
  • Security and Other Barriers to Mobile Commerce
  • Pervasive Computing

3
Mobile Computing
  • Overview of Mobile Commerce
  • mobile commerce (m-commerce, m-business)
  • Any business activity conducted over a wireless
    telecommunications network

4
Exhibit 9.1 The Mobile Commerce Landscape
5
Mobile Computing
  • Mobile Computing Devices
  • personal digital assistant (PDA)
  • A handheld computer principally used for
    personal information management
  • smartphone
  • Internet-enabled cell phones that can support
    mobile applications
  • blackberry
  • A handheld device principally used for e-mail
  • wireless mobile computing (mobile computing)
  • Computing that connects a mobile device to a
    network or another computing device, anytime,
    anywhere

6
Exhibit 9.2 The Wireless Mobile Environment
7
Mobile Computing
  • Mobile Computing Software
  • Mobile OS
  • Microsoft PocketPC, Symbian, PalmOS
  • Mobile Application User Interface
  • touch screen, mini-joystick, jog dial, thumb
    wheel
  • Microbrowser
  • Wireless Web browser designed to operate with
    small screens and limited bandwidth and memory
    requirements
  • Wireless Application Protocol (WAP)
  • A suite of network protocols designed to enable
    different kinds of wireless devices to access
    WAP-readable files on an Internet-connected Web
    server

8
Exhibit 9.4 WAP Architecture
TLS (SSLv3)
TLS (SSLv3)
WTLS
9
Mobile Computing
  • Mobile Computing Software
  • Markup Languages
  • Wireless Markup Language (WML)
  • A scripting language used to create content in
    the WAP environment based on XML, minus
    unnecessary content from HTML to increase speed
  • Compact Hypertext Markup Language (cHTML)
  • A scripting language used to create content in
    i-mode
  • Extensible Hypertext Markup Language (xHTML)
  • Most recent software languages. Aimed to replace
    WML
  • xHTML is a subset of XML, but compatible with
    HTML
  • xHTML standard has been set by the World Wide Web
    Consortium
  • Increase compatibility between normal web and
    mobile web
  • Voice XML (VXML)
  • An extension of XML designed to accommodate voice

10
Mobile Computing
  • Mobile Computing Services
  • Short Message Service (SMS)
  • A service that supports the sending and receiving
    of short text messages on mobile phones
  • Enhanced Messaging Service (EMS)
  • An extension of SMS that can send simple
    animation, tiny pictures, sounds, and formatted
    text
  • Multimedia Messaging Service (MMS)
  • The next generation of wireless messaging MMS
    will be able to deliver rich media
  • micropayments
  • Electronic payments for small-purchase amounts
    (generally less than 10)
  • global positioning system (GPS)
  • A worldwide satellite-based tracking system that
    enables users to determine their position
    anywhere on the earth

11
Mobile Computing
  • Mobile Computing Services
  • interactive voice response (IVR)
  • A computer voice system that enables users to
    request and receive information and to enter and
    change data through a telephone
  • voice portal
  • A Web site with an audio interface that can be
    accessed through a telephone call
  • Tellme.com, bevocal.com

12
Roadmap
  • Mobile Computing
  • Wireless Telecommunications Networks
  • Mobile Commerce
  • B2B M-Commerce and Supply Chain Management
  • Location-based Mobile Commerce
  • Security and Other Barriers to Mobile Commerce
  • Pervasive Computing

13
Wireless Telecommunications Networks
  • Personal Area Networks
  • personal area network (PAN)
  • A wireless telecommunications network for
    device-to-device connections within a small range
  • Bluetooth
  • A set of telecommunications standards that
    enables wireless devices to communicate with each
    other over short distances
  • Short distance 10 meters (class 2) and 100 meters
    (class 1)
  • 2.4 GHZ and 7 simultaneous connection to each
    device
  • However, 2.4 GHZ is common used radio range, may
    have interference from microwave ovens, cordless
    phones, etc.

14
Wireless Telecommunications Networks
  • Wireless Local Area Networks
  • wireless local area network (WLAN)
  • A telecommunications network that enables users
    to make medium-range wireless connections to the
    Internet or another network
  • Wi-Fi (wireless fidelity)
  • The common name used to describe the IEEE 802.11
    standard used on most WLANs

15
Wireless Telecommunications Networks
  • Wireless Local Area Networks
  • 802.11b
  • The most popular Wi-Fi standard it is
    inexpensive and offers sufficient speed for most
    devices (11 Mbps) however, interference can be a
    problem (max 100 m indoor and 275 m outdoor)
  • 802.11a
  • This Wi-Fi standard is faster than 802.11b but
    has a smaller range (54 Mbps, max 25 m)
  • 802.11g
  • This fast but expensive Wi-Fi standard is mostly
    used in businesses (11 Mbps)

16
Wireless Telecommunications Networks
  • Wireless Local Area Networks
  • wireless access point
  • An antenna that connects a mobile device to a
    wired LAN
  • hotspot
  • An area or point where a wireless laptop or PDA
    can make a connection to a wireless local area
    network
  • War Driving and War Chalking
  • WEP (Wired Equivalent Protocol) Security, WPA,
    WPA2

17
Exhibit 9.5 How Wi-Fi Works
18
Wireless Telecommunications Networks
  • Wireless Metropolitan Area Networks (WMAN)
  • WiMax (Worldwide Interoperability for Microwave
    Access)
  • A wireless standard (IEEE 802.16) for making
    broadband network connections over a large area
  • Range up to 50 km
  • Radio-based, ultra bandwidth, 70-268 Mbps
  • Intel expects to integrate WiMax into Centrino
    wireless chip beginning in late 2006
  • wireless metropolitan area network (WMAN)
  • A telecommunications network that enables users
    to make long-range wireless connections to the
    Internet or another network

19
Wireless Telecommunications Networks
  • Wireless Wide Area Networks
  • Physical Topology of a WWAN
  • subscriber identification module (SIM) card
  • An extractable storage card used for
    identification, customer location information,
    transaction processing, secure communications,
    and the like

20
Exhibit 9.6 Cellular Telephone Network
21
Wireless Telecommunications Networks
  • WWAN Communication Bandwidths
  • 1G. The first generation of wireless technology,
    which was analog based
  • 2G. The second generation of digital wireless
    technology accommodates voice and text
  • 2.5G. An interim wireless technology that can
    accommodate voice, text, and, limited graphics
  • 3G. The third generation of digital wireless
    technology supports rich media such as video
  • 4G. The expected next generation of wireless
    technology that will provide faster display of
    multimedia

22
Three.com.au
23
Wireless Telecommunications Networks
  • Wireless Wide Area Networks
  • WWAN Communication Protocols
  • Frequency Division Multiple Access (FDMA)
  • Time Division Multiple Access (TDMA)
  • Code Division Multiple Access (CDMA)
  • WWAN Network Systems
  • Global System for Mobile Communications (GSM)
  • An open, nonproprietary standard for mobile
    voice and data communications

24
Roadmap
  • Mobile Computing
  • Wireless Telecommunications Networks
  • Mobile Commerce
  • B2B M-Commerce and Supply Chain Management
  • Location-based Mobile Commerce
  • Security and Other Barriers to Mobile Commerce
  • Pervasive Computing

25
Mobile Commerce
  • Attributes of M-Commerce
  • Ubiquity
  • available at any location at any time
  • Convenience
  • for users to operate in the wireless computing
    environment
  • Interactivity
  • transactions, communications, and service
    provision are immediate and highly interactive in
    the mobile computing environment
  • Personalization
  • Mobile devices are truly personal computing
    devices
  • Localization
  • Ability to know where mobile users are located
  • Increase the ability to customize products and
    services

26
Mobile Financial Applications
  • Mobile Banking
  • Check account balances, pay bills, transfer funds
    using SMS
  • Financial alert applications loan payment is
    due, bank balance has fallen below a specified
    amount
  • Wireless Electronic Payment Systems
  • Wireless Wallets
  • m-wallet (mobile wallet)
  • Technologies that enable cardholders to make
    purchases with a single click from their wireless
    device
  • Wireless Bill Payments
  • A number of companies now provide the option of
    paying bills directly from a cell phone

27
(No Transcript)
28
Mobile Shopping, Advertising, and Content
Provision
  • Wireless Shopping
  • An increasing number of online vendors allow
    customers to shop from wireless devices
  • Enables customers to use cell phones or wireless
    PDAs to
  • Perform quick searches
  • Compare prices
  • Use a shopping cart
  • Order
  • View the status of their order

29
Mobile Shopping, Advertising, and Content
Provision
  • Targeted Advertising
  • Marketers send user-specific advertising messages
    to wireless devices
  • Location-sensitive advertising informs buyers
    about shops, malls, and restaurants close to
    where the mobile device owner is located
  • However, mobile advertising campaign must
  • Limit no. of ads pushed to an individual customer
  • Avoid overwhelming a user with too much
    information
  • Avoid the possibility of congestion over the
    wireless networks

30
Mobile Shopping, Advertising, and Content
Provision
  • mobile portal
  • A customer interaction channel that aggregates
    content and services for mobile users
  • Zed.com in Finland, Vodafone Live! the
    best-known mobile portal (40mil members)
  • Various services offered entertainment,
    restaurants and event info, games, TV, email,
    stock trading
  • Charge a monthly fee to access basic information
    services, charge a per-service fee for premium
    content e.g. location-based whether reports or
    downloads

31
Zed.com
32
Mobile Intrabusiness Applications
  • Support of Mobile Employees
  • sales force mobilization
  • The process of equipping sales force employees
    with wireless computing devices
  • Ensure that employee meets sales target
  • The available-to-promise/capacity-to-promise
    (ATP/CTP) capability means no more I will have
    to check on that.
  • Employees can record order in real time, improve
    manufacturing and delivery scheduling, fewer data
    entry errors, less clerical and administrative
    overhead, better decision making

33
Mobile Intrabusiness Applications
  • Job Dispatch
  • Mobile devices benefit people who involve in
    delivery and dispatch services e.g.
    transportation, utilities, field services, and
    security
  • AirIQs Online system (airiq.com) combines
    Internet, wireless, GPS, digital mapping, and
    intelligent information technologies.
  • The system collects information about a vehicles
    direction, speed, and location from a device
    housed in each vehicle.
  • AirIQ promises savings of 30 in communication
    costs and increases in workforce efficiency 25

34
Mobile Intrabusiness Applications
  • wearable devices
  • Mobile wireless computing devices for employees
    who work on buildings and other climbable
    workplaces
  • Screen
  • Camera mounted on a safety hat
  • Keyboard wrist-mounted keyboard
  • Speech translator
  • See xybernaut.com, essworld.com,
    media.mit.edu/wearables for more details

35
Mobile Assistant from xybernaut.com
36
Mobile Intrabusiness Applications
  • Customer Support
  • Mobile access extends the reach of CRM to both
    employees and business partners on a 24/7 basis,
    to any place where recipients are located

37
Mobile Intrabusiness Applications
  • Non-Internet Intrabusiness Applications
  • Wireless networking, used to pick items out of
    storage in warehouses
  • Delivery-status updates
  • Collection of data
  • Monthly pay slips sent as SMS messages sent to
    employees mobile phones
  • Property adjusters report from the scene of an
    accident
  • Sales representatives check orders and
    inventories during their visits to customers

38
Roadmap
  • Mobile Computing
  • Wireless Telecommunications Networks
  • Mobile Commerce
  • B2B M-Commerce and Supply Chain Management
  • Mobile Consumer and Personal Service Applications
  • Location-based Mobile Commerce
  • Security and Other Barriers to Mobile Commerce
  • Pervasive Computing

39
B2B M-Commerce and Supply Chain Management
  • Use of wireless communication to share
    information along the supply chain and to
    collaborate with partners
  • By integrating the mobile computing device into
    supply chain communications, it is possible to
  • Make mobile reservations of goods
  • Remotely check availability of a particular item
    in the warehouse
  • Order a customized product from the manufacturing
    department
  • Provide secure access to confidential financial
    data from a management information system

40
Roadmap
  • Mobile Computing
  • Wireless Telecommunications Networks
  • Mobile Commerce
  • B2B M-Commerce and Supply Chain Management
  • Location-based Mobile Commerce
  • Security and Other Barriers to Mobile Commerce
  • Pervasive Computing

41
Location-Based Mobile Commerce
  • location-based m-commerce
  • Delivery of m-commerce transactions to
    individuals in a specific location, at a specific
    time
  • The services provided through location-based
  • m-commerce focus on five key areas
  • Location determining the basic position of a
    person or a thing
  • Navigation plotting a route from one location to
    another
  • Tracking monitoring the movement of a person or
    a thing
  • Mapping creating maps of specific geographical
    locations
  • Timing determining the precise time at a
    specific location

Basically, they depend on the global positioning
system (GPS)
42
Location-Based Mobile Commerce
  • Global Positioning System (GPS)
  • A worldwide satellite-based tracking system that
    enables users to determine their position
    anywhere on the earth
  • GPS determines the location (latitude and
    longitude) of any locator to within 50 feet (15
    m) by triangulation, using the distance from the
    GPS locator to 3 satellites to make the
    computation
  • geographical information system (GIS)
  • An information system that integrates GPS data
    onto digitized map displays
  • GPS/GIS has been available from car manufacturers

43
Mapinfo.com
44
Location-Based Mobile Commerce
  • Location-based Advertising
  • System detects a persons preference and send ads
    to his/her wireless device
  • Dynamic billboard could be changed according to
    the drivers preference when he/she is
    approaching the billboard.
  • Permission marketing used to shield people from
    location-based advertising
  • If the system knows that you do not drink coffee,
    you would not be sent a message from Starbucks

45
Location-Based Mobile Commerce
  • Barriers to Location-Based M-Commerce
  • Accuracy of devices
  • Less expensive GPS locator, less accuracy, may be
    up to 500 m
  • The cost-benefit justification
  • Some people may say they can easily obtain
    information in the old-fashioned way without
    investing on wireless technology
  • Limited network bandwidth
  • Bandwidth improves, applications will improve
    which will attract more customers
  • Invasion of privacy

46
Roadmap
  • Mobile Computing
  • Wireless Telecommunications Networks
  • Mobile Commerce
  • B2B M-Commerce and Supply Chain Management
  • Location-based Mobile Commerce
  • Security and Other Barriers to Mobile Commerce
  • Pervasive Computing

47
Security and Other Barriers to Mobile Commerce
  • M-Commerce Security Issues
  • Malicious Code
  • Transaction Security
  • Confidentiality, authentication, authorization,
    and integrity
  • Wireless Communication
  • Risk to information interception
  • Physical Security of Mobile Devices
  • Easy to be lost or stolen
  • Ease of Use
  • Technological Barriers to M-Commerce
  • Usability of the site, small screen, WAP screen,
    limited battery life, transmission interference
    with home appliances

48
(No Transcript)
49
Security and Other Barriers to Mobile Commerce
  • Project Failures in M-Commerce
  • Do not start without appropriate infrastructure
  • Do not start a full-scale implementation use a
    small pilot for experimentation
  • Pick an appropriate architecture (e.g., some
    users do not need to be persistently connected)
  • Talk with a range of users, some experienced and
    some not, about usability issues
  • Users must be involved hold biweekly meetings if
    possible
  • Employ wireless experts
  • Wireless is a different medium from other forms
    of communication. Remember that people are not
    used to the wireless paradigm

50
Roadmap
  • Mobile Computing
  • Wireless Telecommunications Networks
  • Mobile Commerce
  • B2B M-Commerce and Supply Chain Management
  • Location-based Mobile Commerce
  • Security and Other Barriers to Mobile Commerce
  • Pervasive Computing

51
Pervasive Computing
  • Overview of Pervasive Computing
  • pervasive computing
  • Invisible, everywhere computing that is embedded
    in the objects around us
  • Also called embedded computing, augmented
    computing, ubiquitous computing
  • Pervasive VS ubiquitous computing
  • Pervasive computing is embedded in the
    environment, but typically not mobile
  • Smart home appliances
  • Ubiquitous computing combines high degree of
    embeddedness and high degree of mobility
  • Smart clothes, cars, and personal communication
    systems

52
Pervasive Computing
  • Principles of Pervasive Computing
  • Decentralization
  • Centralized ? Decentralized ? Pervasive
  • Diversification
  • Change from one-computer-does-all paradigm to one
    in which specialized, diversified devices that
    suit the requirement for specific purpose
  • Connectivity
  • Devices e.g. tags, sensors, badges will be
    seamlessly connected to the network or to each
    other.
  • Simplicity
  • Intuitive interfaces, speech recognition,
    one-handed operation

53
Pervasive Computing
  • Overview of Pervasive Computing
  • context awareness
  • capturing a broad range of contextual attributes
    to better understand the customers needs and to
    determine what products or services may be
    required to fulfill those needs
  • contextual computing
  • The enhancement of a users interactions by
    understanding the user, the context, and the
    applications and information required
  • Context awareness and contextual computing are
    seen as the Holy Grails of m-commerce

54
Pervasive Computing
  • Pervasive Computing Initiatives
  • radio frequency identification (RFID)
  • Technology that uses radio waves to identify
    items
  • RFID system is composed of
  • An RFID tag that includes an antenna and a chip
    with information about the item
  • An RFID reader containing a radio transmitter and
    receiver
  • The chip receives radio frequency energy from the
    transmitter giving enough power to send 96-bit
    string, 3 times the amount of information a bar
    code can hold.
  • The operating range is 30 feet
  • electronic product code (EPC)
  • An RFID code that identifies the manufacturer,
    producer, version, and serial number of
    individual consumer products
  • Similar to Universal Product Code (UPC) currently
    appeared in almost every products, but does not
    need to be printed on paper

55
Pervasive Computing
  • Pervasive Computing Initiatives
  • Smart Homes
  • Lighting
  • Energy management
  • Water control
  • Home security and communications
  • Home entertainment
  • Smart Appliances
  • Smart Cars
  • Smart Clothes
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