Ecommerce and Information Technology Module 8: Mcommerce Show 1

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Ecommerce and Information Technology Module 8
M-commerce Show 1
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Learning outcomes

• Define the parameters, dimensions and approaches
  to mobile commerce
• Confirm the impact of mobile applications and
  approaches on transport and logistics operations
• Explain the impact mobile applications and
  approaches can have on customers
• Analyse the relevance of mobile commerce
  applications to current transport and logistics
  operations
• Explain the role of specific information and
  communication technologies on m-commerce
• Review the emerging trends and likely affect
  m-commerce will have on e-business models

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M-commerce defined

• Mobile e-commerce (also called mobile commerce or
  m-commerce) will be defined in this chapter as
  covering all activities related to the use of
  mobile or wireless information and communication
  technologies (ICTs) to communicate, interact,
  entertain and transact any time, anywhere, any
  place across public and private networks.
• Our definition of m-commerce networks does not
  exclude those connected by satellite. Our study
  also assumes m-commerce will at some stage
  involve transmission and reception of information
  through the air instead of via cables or wires
  (i.e. wireless).

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Total subscribers to cellular networks

• Asia 543 million subscribers - with 15 market
  penetration.
• Europe 441 million subscribers at 55 market
  penetration.
• Americas 288 million subscribers at 33.8 market
  penetration.
• (ITU, 20041)

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Fixed Internet v mobile Internet
Bowles (2004)
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Mobile revenue by market segment 1994-2002
(Budde, 200247)
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M-commerce activities (contd)

• Transactions
• banking
• stock trading and brokering
• shopping (real time - online - access, buying,
  purchasing or browsing)
• auctions
• betting
• reservations and ticketing
• e-cash
• sales force automation
• field service automation

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Using m-commerce to better understand the customer

• Including their
• individual preferences
• location and time factors
• use patterns
• technology and applications preferences
• technology skills and patterns of use

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Core types of mobile Internet applications being
adopted into retail businesses

• communication (messaging, video, email)
• complete internal and external communication
  systems
• interface with and manage customer relationships
• authorising, verifying and completing financial
  exchanges
• providing business services
• conducting, planning and transmitting advertising
• setting price ranges and cost structures for
  products and services provided
• tracking services and products
• managing logistics and all aspects of supply
  chain management

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Convergence of cellular and Internet devices

• Mobile phone-based devices are now permitting
  visual and data transfer (e.g. emails) across
  spectrums and networks usually preserved for
  voice traffic alone. Evidence suggests that as
  devices and networks converge with existing
  technologies (e.g. Internet, mobile phones and
  video conferencing or TV broadcast systems),
  consumers are reacting to the technology in a
  very positive manner. The savings in terms of
  operational costs and margins for product sales
  are encouraging both traditional and web-based
  e-business retailers to explore this next step
  beyond Internet-based e-commerce applications

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Attributes of M-commerce

• Ubiquity independent access anytime
• Reachability access on your demand from
  anywhere
• Form factors use the device that suits their
  needs and user preferences (PDA, PC, mobile
  phone, etc.)
• Convenience and accessibility time and space
  constraints are removed and people can access
  applications to their time and preferences
• Security use of means such as Security Socket
  Layer (SSL) to provide personal security, privacy
  of communications, and data integrity above that
  available in fixed Internet environments.

• Localisation merging capabilities and sharing
  costs between retailers or a region wishing to
  push or promote mutual services and products
• Instant connectivity access to applications on
  demand using multiple technologies and more
  network option.
• Personalisation use of existing technology to
  receive what you want, when and how you want (ie.
  remove advertising, etc.). Also means retailer
  has more direct access to an individual user as
  devices are more personal than a PC or TV that
  may have multiple users. Personalisation also
  promotes brand positioning (control and
  targeting) and communication with a user in their
  desired language.

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Limitations of m-commerce remain

• small screens of most devices still limit types
  of file and data transfer (i.e. streaming videos,
  etc.)
• standards guiding applications and technology
  development and connection(s)
• WAP and SMS limited to small number of characters
  and text.
• use of graphics limited
• less functionality for mobile Internet over
  mobile phones and existing generation of
  handhelds than for mobile computers (laptops and
  next generation handhelds)
• user interface is often difficult to learn how to
  use
• limited bandwidth
• limited roll out of higher bandwidth mobile
  networks and devices (i.e. 3g networks and
  wireless broadband networks are predominantly
  located in cities)
• cost of establishing mobile and wireless
  broadband infrastructure
• technology constraints of mobile devices (memory,
  processing power, display capabilities, input
  methods)
• security of data moved across some mobile and
  wireless networks
• businesses investment in hardware and
  infrastructure is seen as riskier as rapid
  evolution of mobile and wireless technologies
  continues.

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Network capacity and levels of interactivity
Network Capacity
Two-way synchronous communication/broadcasts
Virtual interactivity
Video streaming
Online content (e-books, Multi-Media file
transfer)
Data sharingfile transfer
Text messaging
CD-ROM
Interactivity
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Mobile, automated business applications

• price checks
• recording purchases
• full basket scans (accelerate the completion of
  point of sale checkouts by scanning all barcodes
  or RFID tags to bill goods automatically against
  a shoppers account)
• data movement in purchase and sales systems
• stock orders receipt and picking or packing
• tracking of stock movement through the supply
  chain or the store
• inventory levels and procurement processes.

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Mobile and wireless logistics management
solutions

• tracking a single item and a shipment using
  mobile (wireless and satellite) tagging and
  tracking systems (i.e. in an item or a shipment
  such as a container, a vehicle or a shipment)
• improved order fulfilment and shipping control
  that improves fuel costs, operational control,
  workforce allocation, and improved delivery turn
  around times
• on-board tracking of vehicles that permits better
  fleet management
• driver navigation assistance
• vehicle identification and retrieval if stolen
• on-board systems capture and transmission of a
  constant stream of real-time data on driver
  performance, routes taken, hours worked and
  unloading times
• automated order fulfilment that can be verified
  or tracked by a customer using the Internet.

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Radio Frequency Identification Devices (RFID)

• Basically an RFID is composed of an antenna,
  protective casing, a microchip and a transponder
  transmitting in low to high frequency that can be
  picked up using mobile networks such as wireless
  and even satellite. RFIDs are used for multiple
  purposes and the purpose is linked to the design
  of the RFID

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Use of RFIDs technology, Europe 2002 (Vedenpää,
200246)
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RFIDs and the unchainedsupply chain
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M-commerce devices. What next?

• Embedded tracking. RFIDS and recognition tags or
  RFID tags so small they are the size of dandruff
  (called RFID dust) that can be sprayed onto,
  embedded or manufactured into products. This
  permits unique identification and tracking of
  garments, individual products, packaging,
  pallets, cars, etc. (this has real privacy and
  related issues as the devices are active even
  after they are purchased or change hands)
• Wearable devices. Clothes can be constructed with
  in-built PD, mobile phone, calculator, digital
  storage, network devices and switches and other
  devices (e.g. http//www.bluefi.co.uk/news/philips
  _wearable_devices.html)
• Complete personalisation. Rather than
  applications configuring how you interact with
  them, devices will be constructed to react or
  interact with individuals expressly to their
  personal requirements (e.g. See the MIT Oxygen
  Project http//oxygen.lcs.mit.edu/index.html).

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M-commerce activities (contd)

• Telemetry and passive data capture (silent
  commerce)
• status, sensing and measurement data
• logistics management (tracking, driver navigation
  systems, travel information and positioning)
• wireless phones with various devices
• small distance wireless devices connecting people
  and technology or systems (i.e. Bluetooth)
• traffic flow and road network management
• wireless scanning of items at a location or point
  of placement (i.e. mass road transit scanning of
  vehicles, products at a checkout or products in a
  warehouse as they move between scanned points,
  etc.)
• location triggered advertisements (eg. SMS to
  mobile phone that promotes the shop at the point
  the customer nears the location)
• remote monitoring (eg. security systems, farm
  management, etc.)

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M-commerce activities (contd)

• Entertainment
• music
• games
• graphics
• video
• interactive games
• Information
• news
• maps/guides
• directories
• traffic/weather
• market data
• corporate
• browsing and directory services

• Communication
• email
• chat
• corporate system access and security
• video/voice
• intranet
• extranet