Session 9 Topics

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Session 9 Topics

• Wireless Internet Technology and M-Business
• International Ecommerce

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Wireless Technology Mobile Ecommerce

• Wireless technology turns e-business into mobile
  ecommerce and, ultimately, m-business, or mobile
  e-business
• M-commerce is defined as the ability to purchase
  good anywhere through a wireless Internet-enabled
  device.  Primary mobile communication exists
  through web-enabled wireless phones. 
• Current applications
• Conduct online transactions
• Make purchases
• Trade stocks
• Send e-mail
• Future applications
• A wireless office, where computers, phones and
  other office equipment are all networked without
  cables

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Wireless Technology and Devices

• Wireless development
• First-generation wireless technology was the
  cellular phone
• Second generation wireless technology, which
  includes digital cellular phones, is currently in
  use worldwide
• Third generation, or 3G technology will enable
  wireless devices to send and receive data as much
  as seven times faster than a standard 56K modem
• Wireless devices
• Personal digital assistants (PDAs), Palm OS
• Digital cellular phones (WAP Phones)
• Two-way pagers (RIM)
• MS Windows CE/Pocket PC

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Wireless Internet Access

• Code Division Multiple Access (CDMA)
• Each transmission is assigned a specific channel,
  giving the transmission the benefit of the entire
  bandwidth within that channel and reducing the
  possibility that a connection will be broken
• Able to assign each transmission on the network a
  unique code to ensure security
• Global System for Mobile Communications (GSM)
• Uses Time Division Multiple Access (TDMA) which
  takes multiple calls and assigns each call to a
  different time slot on the same radio frequency,
  eg. Short message service (SMS)

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Wireless Internet Access

• 3G technologies high speed Internet access,
  email, streaming audio and video
• EDGE (ATT, Nokia)
• Cdma2000 (Sprint PCS)
• W-CDMA (NTT DoCoMo)
• International Telecommunications Union (ITU)
• Establishes guidelines for 3G

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Wireless Hype Cycle
Source Gartner
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Wireless Web Technology

• Three technologies are used to provide Web access
  to wireless devices
• Wireless Application Protocol (WAP)
• Palm OS --Web clipping
• Microsofts Pocket Internet Explorer

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PDA and Web Clipping

• Web clipping
• Allows users to take relevant pieces of a Web
  site and deliver it to a wireless device,
  eliminating excess content and graphics
• Proxy server
• Lies between client (such as a Web browser) and
  Web server
• Query is received by a proxy server controlled by
  the wireless ISP
• Proxy server goes to the Web site and clips the
  necessary data
• The proxy server transmits the data back to your
  wireless device
• If the proxy server does not have the
  information, it passes the request to the regular
  server
• Query Application Builder (QAB)
• Web designers build (PQAs) to be installed on
  users Palm handheld computers

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WAP

• Wireless Application Protocol (WAP)
• Developed by Nokia, Ericsson, Motorola, etc.
• A set of communication protocols designed to
  enable different kinds of wireless devices to
  communicate and access the Internet
• Designed to standardize development across
  different wireless technologies worldwide
• Intended primarily for Internet-enabled digital
  phones, pagers and other handheld devices
• Uses Web sites specifically designed for wireless
  handheld devices that have small screens and
  low-bandwidth constraints

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WML

• Wireless Markup Language (WML)
• The scripting language used to create Web content
  to be delivered to wireless handheld devices,
  based on XML
• Removes unnecessary content from Web pages
• WML tags are used to mark up a Web page to
  specify how the page should be formatted on a
  wireless device
• WML works with the WAP to deliver the content
• Similar to HTML, but it does not require input
  devices
• Microbrowsers
• Designed with limited bandwidth and limited
  memory requirements
• Access the Web via the wireless Internet

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WAP and WML

• How wireless Internet works
• A WAP gateway, which acts as a proxy server,
  receives the request, translates it and sends it
  to the appropriate Internet server
• Server responds by sending the requested WML
  document
• The WAP gateway parses this document's WML (i.e.,
  it analyzes the WML document, checking it for
  correctness) and sends the proper text to the
  digital phone
• Deck
• A WML document
• Card
• Consists of one user interaction, providing the
  WML browser with a small, self-contained document
  for browsing

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Software Appliances for Wireless Devices

• No widely accepted standard for wireless
  development
• Developers are often required to develop multiple
  applications
• Microsoft Pocket Internet Explorer
• Reformats complete Web pages as they are
  downloaded from the Internet for display on the
  Pocket PC
• Allows Pocket PC users to access most of the
  content currently available on the Web and
  eliminates the need to tailor Web content for
  delivery to handheld devices

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Wireless Local Area Networks

• Easier to install and maintain without disrupting
  an office or without having to install a new a
  new network connection in each location
• Technologies
• Radio Frequency WLANs (RF WLANs) Used to network
  devices at a distance
• Laser technology
• Infrared technology
• Bluetooth
• Wi-Fi 802.11x

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Wireless Communications

• Wireless communications can be unreliable and
  slow, wireless-device bandwidth is about one
  fifth of the capabilities of a standard dial-up
  connection
• General packet radio services (GPRS)
• Enables devices to transmit data at speeds of up
  to 114 kbps
• Universal mobile telecommunications standard
  (UMTS)
• Will offer transfer speeds of up to 2 Mbps for
  wireless devices
• Smart phones
• Mobile phones that send and receive both voice
  and data messages
• Used to securely send and receive secure mobile
  transactions

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The Carriers Rule!

• Rollout of wireless Internet services depends on
  the carriers
• They own the bandwidth licenses
• Competing standards, esp. in the US
• Investment in infrastructure
• Global and nationwide coverage
• Auctions for new bandwidth
• Competition
• Cooperation
• Contrast the situations in Europe, Japan and the
  US.

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Future of Wireless Internet

• Decreasing cost and size of wireless phones and
  mobile devices
• Improving technology
• Increasing number of devices made wireless
• Increased venture capitalist interest in wireless
  technology

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Ultimate Wireless Device

• Combination of all features of a mobile phone,
  PDA and two-way pager
• Camera for video telephony and photography
• Make calls from anywhere in the world
• Send and receive e-mail in real-time, without
  having to dial into a service provider
• Maintain your address book, schedules, to-do
  lists, etc.
• Built-in GPS System

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Transforming the PC-based Web

• Sites must be rearchitected
• Mapping (UAL)
• New business models needed
• Location-based services
• Push vs. Pull
• CRM customer knowledge/preferences
• Device ubiquity
• Interaction b/w voice and data

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http//www.united.com/page/middlepage/0,1454,66,00
.html
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Content Adaptation for Mobile Web
Short for compact HTML, a subset of HTML for
small information devices, such as smart phones
and PDAs. cHTML is essentially a pared down
version of regular HTML over the Internet.
Zhou Chan, 2003
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Tasks with Added Mobile Values

• Time-critical needs and arrangements,
• Spontaneous needs and decisions, such as
  auctions, email, and news,
• Entertainment needs,
• Efficiency needs and ambitions,
• Mobility related needs.
• Source Anckar DIncau, 2002.

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Wireless Usability Research

• Avoid scrolling,
• Use a flat hierarchy,
• Design a navigation system consistent with a
  regular Web browser,
• Design a back button,
• Provide a history list,
• Provide an indication of signal strength,
• Reduce users memory load, and
• Limit the search scope to improve search
  efficiency.
• Chan et al., 2002.

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M-commerce Contrasts with Traditional Ecommerce

• Compare to traditional web
• Smaller screens
• Low bandwidth
• Monochrome vs. Color
• Character vs. Bit modes
• Font control
• Limited local memory
• Limited data entry capabilities
• Mini browser features
• Phones vs. PDAs vs. new form factors

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M-commerce Strengths

• Innovation is a key technologically savvy people
  will continue to develop and improve wireless
  devices for consumers needs globally.
• M-commerce will provide access to web-based
  solutions from virtually every location in the
  world.
• "Methods of mobile payments will create 25
  billion worth of trade by 2006 says a study from
  Frost Sullivan.

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M-commerce Weaknesses

• History tells us tech companies are far too eager
  to proclaim a revolution. However, history shows
  that a huge new market does not just show up
  overnight.
• It takes years for consumers to catch on to a new
  technological development.
• Tech companies entering into the market have no
  idea what kind of business model they should
  follow.
• Is a consumer really going to pick up their cell
  phone and want to hear a commercial advertising
  Pepsi?
• Wireless Application  Protocol (WAP) is required
  with all web-enabled wireless devices but it has
  several significant limitations.
• Adoption of m-commerce cannot justify the costs
  that go into producing web-enabled wireless
  devices.

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Obstacles for m-Business Adoption

• One of the challenges is to discover just how
  consumers might be inclined to use wireless
  devices for shopping. 
• Wireless service is not universally available or
  reliable and still relatively expensive.
• Limited bandwidth restricts the amount of data
  that can be sent over the wireless network.
• Wireless devices have significantly smaller
  memory capacity and less powerful processors than
  desktop computers.
• Application development and security standards
  still evolving.

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M-commerce B2B Services

• Industry vertical applications
• Deliveries (UPS, FedEx)
• Construction site supplies
• Agricultural sensors
• Insurance adjustors
• Government inspectors
• Real Estate
• Equipment management
• Incorporating XML
• Replacing EDI

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m-Business

• m-Business
• e-Business using wireless devices with Internet
  access
• B2C marketplace
• Increased conveniences for consumers
• Frequent, small transactions
• Receiving news, sports scores, e-mail, coupons
  and advertisements
• B2B marketplace
• Salespeople can access product databases and
  place orders
• Address customer needs immediately
• Ordering and billing will be conducted remotely

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M-business Services Location Tracking

• Location tracking
• Can be used for navigation, such as GPS (Global
  Positioning System) devices installed in cars
• Can be used by shipping companies to track
  delivery trucks, giving customers more accurate
  tracking information and expected delivery time
• Can also be used for targeted marketing

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Location-based Services

• 911 locator
• Government mandate
• Triangulate position from 3 towers
• Advertising
• Impulse buying, walking past a store
• Discounts
• Mapping and Directions
• Weather forecasts

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M-business Services Global Positioning System
(GPS)

• Developed by the United States Department of
  Defense
• Uses satellites to track a users position
  (vertical and horizontal), velocity and the time
  in their location
• Six circular orbits (four satellites per orbit),
  five ground stations and three antennas
• Triangulation
• Three (of four) satellites are used to determine
  the latitude, longitude and altitude of the
  receiver, the fourth satellite is used to check
  for errors in the triangulation

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• Internationalization

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Global e-Business

• Opportunity for expansion
• An ambitious and expensive investment that does
  not guarantee increased revenue
• Potential global businesses must review expected
  revenues vs. expected cost
• Linguistic and cultural barriers

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Internationalization and Localization

• Internationalization (I18n)
• Restructuring the software used by your
  e-business so that it can process foreign
  languages, currencies, date formats and other
  variations involved in conducting business
  globally
• Compatible with 16-bit character encoding systems
  (Unicode) and other computing standards
• Localization (L10n)
• Includes the translation and cultural adaptation
  of your sites content and presentation
• Online translation services
• Enterprise Translation Server Alis Technologies
  
• Logos AltaVistas Babelfish

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Internationalization and Localization

• Online translators are not 100 percent reliable
• Consider the context of the message in a foreign
  culture
• Translate META tags and text within graphic
  images
• Adaptation of site layout to accommodate
  translations
• Color scheme and logo translation
• Conversion rates
• Examples Ikea, United Airline, Yahoo Amazon

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Internationalization and Localization

• Consider downloading capabilities in foreign
  markets
• Global content
• Refers to information and design that requires
  translation, but is essentially the same for all
  cultures
• Regional content
• Product and marketing information that is usually
  written once in English and then adapted for
  various markets
• Local content
• Material on specific regional pages that appears
  only on that Web site, such as regional
  promotions, pricing, delivery and store or office
  locations

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Internalization creates widespread upheaval
increases consumer power
Pre-technology
Adoption
Internalization

Doing
old
things in

Doing
things in

new
Doing
old
things in
new
ways

ways


new
ways
old
Wal-Mart combines
Mom-and-pop
Strip malls aggregate
all stores under one roof,
stores on
mom-and-pop stores
mom-and-pop stores
Main Street
Auto
close their doors
Consumer gain lower
Consumer gain
prices, better selection,
convenience
Massive power leap
more convenience
Incremental power shift
Amazon.com and Wal-Mart
Retailers
Amazon.com and eBay
forced to adopt new
benchmark
challenge Wal-Mart by
Net
business models like
Wal-Mart

s
creating Web versions of
demand aggregation and
distribution model
traditional businesses
personal stores
Consumer gain lower
Consumer gain ability to
prices, better selection,
set prices and drive
more convenience
production
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Choosing an International Market

• Focus time and money in one or two key markets
  initially
• Research competitors and visitors in foreign
  markets
• When choosing an international market consider
• The number of people online
• Internet usage growth rates
• Per capita income
• The consumers expectations of your business
• Resources
• Global Reach (http//global-reach.biz/globstats/in
  dex.php3
• Projections (http//glreach.com/eng/ed/art/2004.ec
  ommerce.php3)

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Obtaining a Local Internet Address

• .com domain name is the most universally
  recognized address on the Web
• Domain-name registration in foreign countries is
  often complex
• May require owning a trademark or incorporating
  your business in the foreign country
• Organizations offering domain name registration
  services
• NetNames

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Internalization is different from adoption

• Adoption layers a new technology onto existing
  behavior. People do old things in new ways.
  Adults are adopting the Net.
• Internalization drives changes throughout
  society. People do new things in new ways. Young
  consumers are the first generation to internalize
  the Net.

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Internalization changes the rules

• Rule 1 Information is everywhere
• Consumers will access dynamically generated
  information from multiple devices
• Rule 2 Personal information has value
• Consumers will exchange personal information for
  free or customized products and services
• Rule 3 Choice is a human right
• Suppliers will create customized products and
  services in response to individual consumers
  demands
• Rule 4 There is such a thing as a free lunch
• Companies will develop loss-leaders to gain
  exposure to consumers and drive alternate sources
  of revenue
• Rule 5 Building trust doesnt require
  face-to-face interaction
• Consumers will build trust and seek advice online

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Internationalization Impact on Payment Systems

• Offer alternatives to credit-card payment
• In many countries, credit cards are far less
  common than in the United States
• In Europe, cash-on-delivery is a common form of
  payment
• Giros Wire transfers between bank accounts
• Direct Debit
• e-Payment service from an American company called
  EuroDebit
• Enables electronic debits from European
  customers bank accounts to be sent to merchants
  bank accounts for a small fee
• Other Methods
• smart card, e-cash

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Ecommerce Future Trends

• Where do we go from here?
• - E-commerce is not dead It is arising from
  
• the pause that refreshes
• - The price is not right
• - International The next frontier

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Next Session Highlights

• Final Exam