Mobile Commerce

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Mobile Commerce
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What is a M-Business and M-Commerce?

• M-Business Exchange of goods, services,
  information and knowledge with the aid of mobile
  technology.
• Not just selling products or services on a mobile
  device.
• Encompasses a range of activities.
• Supports enterprise solutions.
• M-Commerce Mobile execution of transactions.
• Example Movie ticket.
• A subset of M-Business.
• Note M-Business Any mobile function that adds
  demonstrable value to business

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Differences to e commerce

• Ubiquity
• Accessibility
• Security
• Localization
• Convenience
• Personalization

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Why Mobile technology?

• Advent of Wireless Web.
• Use of web phones and PDAs.
• InfoWorld wireless survey.
• History
• G. Marconi (1894).
• Cellular Planning(WW1, WW2)
• Trail service (1978).
• Full deployment (1984).
• Internet Anytime, Wireless Anywhere.

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M-Commerce Drivers

• Consumer interest and adoption.
• Mobile Telephony growth.
• Real time data
• Hand held devices.
• Low cost of entry.
• Vendors push
• Service Economy

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Mobile Technology from Business Perspective

• Days of euphoria to days of cautious enthusiasm.
• Critical question asked How do mobile services
  add value to businesses.
• Traditional view Customer centric
• Business to Customer (B2C)
• Current trend Business to Employee (B2E) Focus
  on web
• B2E improves employee performance.
• Mobile technologies continue to evolve offering
  exciting range of possibilities for both near and
  long term solutions.

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Wireless Web Benefits

• Benefits of time and money.
• No connection waiting time.
• Faster decisions.
• Better control.
• Competitive.
• Benefits relating to shopping.
• Benefits go beyond products.
• Location centric Location a critical factor in
  m-commerce.
• Helps bring foot traffic.
• Location tracking of products, services, even
  people.
• Benefits to consumers.
• Overall benefits Convenience and flexibility
  with true anywhere, anytime access.

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Key Developments

• Wireless Application Protocol (WAP) Open global
  industry wide mobile specifications for wireless
  network architecture application environment and
  a set of communication protocols.
• Wireless Fidelity A collection of related
  wireless technologies.
• Related Terminology Pervasive Computing
  (Ubiquitous Computing).
• Pervasive Computing A scenario where all devices
  are networked, human-centric, communicate and
  interact with each other without any hiccups
  their primary objective being to bestow quality
  life to the user.

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M-Commerce Infrastructure Wireless
Telecommunication Networks

• Key technologies
• Personal Area Network
• Wireless Local Area Networks
• Wireless Metropolitan Area Networks
• Wireless Wide Area Networks

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Personal Area Networks (PANs)

• For device to device connections within a small
  range.
• Established using Bluetooth Protocol
• Bluetooth Used for short distance communication
  (10 m).
• Low power technology (2.4 GHz) spectrum
• 7 simultaneous connections.
• Can be used to pair a number of devices.
• Support for Mobile Worker

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Wireless Local Area Networks (WLANs)

• WLAN Enables users to make medium range wireless
  connections to the Internet or another network.
• IEEE 802.11 standard Wi-Fi
• 802.11 b
• 802.11a
• 802.11g
• Business applications CVS Corporation
• Store delivery, price management, inventory
  control
• Vineyard in California.

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Wireless LANs
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Wireless Metropolitan Area Networks (WMANs)

• WMANs Enables users to make long range wireless
  connections to Internet or another network.
• IEEE 802.16 Standard.
• Support for Wireless Internet Service Providers
  (WISPs)
• WiMAX Standard for making broadband network
  connections over a large area.
• 70 Mbps- 268 Mbps.

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WiMAX
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Wireless Wide Area Networks

• WWANs Offers wireless coverage over a large
  geographical area, typically over a cellular
  network.
• SIM Card
• Cellular networks (Telephony)
• Standards
• 1G Analog
• 2G, 2.5G voice, text, limited graphics.
• 3G Rich media support
• 4G Multimedia support.

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Wireless 3G Network
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Critical Success Factors

• Critical success factors monitored for the
  success of M-Commerce.
• Mobility.
• Personalization.
• Global Standardisation.
• Customer profiling.

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M-Commerce Framework

• Allows developers and providers
• Helps to strategize and effectively implement
  mobile commerce applications.
• Defines multiple functional layers, simplifying
  the design and development.
• By following this framework, a single entity is
  not forced to do everything to build m-commerce
  systems, rather, they can build on the
  functionalities provided by others

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M-Commerce Framework

• Framework has four levels and three planes
• M-commerce applications
• User infrastructure General capabilities of
  devices.
• Middleware Network Transparency
• Network infrastructure Supporting perceived QoS.
• Provides a developer and provider plane to
  address the different needs and roles of
  application developers, content providers, and
  service providers apart from a user plane.

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A Framework for M-Commerce
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Emerging M Commerce Applications

• There are potentially unlimited number of
  M-Commerce applications.
• In this lecture we identify important classes of
  applications and provide examples within each
  class.
• According to estimates from a report, from than
  half of European mobile commerce market in the
  next few years may consist of Financial,
  advertising, and shopping services.
• Important classes of M-Commerce Applications
• Mobile Financial Applications (MFA)
• Mobile Advertising.
• Mobile Inventory Management
• Product Location and Search (PLS)
• Mobile Auction/Reverse Auction and Entertainment.

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Mobile Financial Applications (MFA)

• Applications where mobile device becomes a
  powerful financial medium.
• Banking, brokerage, payments for mobile users.
• Mobile device transformed into a business tool.
• Challenge is in transaction support.
• Example SONERA (Finnish Wireless Provider)
  Micro-payments involving small purchases such as
  vending and other items.
• Mobile device used to purchase the desired Item.

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Several Mobile Financial Applications
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Mobile Advertising

• Applications turning the wireless infrastructure
  and devices into a powerful marketing medium.
  (B2C)
• Involves user specific and location sensitive
  advertisement.
• Targeted advertising Demographic information and
  current location of the user.
• Personalized advertising Consultation with
  users, profile of user purchasing habits.
• Location sensitive Information about surrounding
  areas.

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Mobile Advertising

• Content rich advertising Audio, video clips for
  users with specific interests.
• Push versus pull method of advertising.
• Issues
• Bandwidth restrictions, users getting
  overwhelmed.
• Number of advertisements,
• Level and type of content.
• Location Related Use of Third party to provide
  location services.

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Mobile Advertising

• Hardware and processing capabilities.
• Storage and real time processing.
• Dependability of infrastructure.
• Charge associated with advertising.

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A Possible Scenario for mobile advertising and
shopping
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Mobile Inventory Management (MIM)

• Applications attempting to reduce the amount of
  inventory needed by managing in-house and
  inventory-on-move.
• Objective
• Location tracking of goods, boxes, troops, and
  people
• Timely service and competitive advantage.
• Rolling Inventory Location of a truck with Just
  in Time delivery system.
• Better management of inventory space with
  reduction in cost.
• Traffic issues.
• Just in time delivery and movement of components
  in assembly plant based on the rate of
  consumption.

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Location Tracking of Goods
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Mobile Inventory Management

• Implementation considerations for MIM
• Cost,
• Reliability of wireless Infrastructure
• Level of comfort with a new technology.
• Potential MIM customers.
• Potential technologies used.

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Product Location and Search (PLS)

• Applications helping to find the location of
  product and services that are needed. (B2B, B2C).
• Using a mobile device (such as PalmPilot, Nokia
  Communicator or Net Phone) and a centralized/
  distributed database containing information on
  products, a user should be able to find the exact
  location of a store where a certain item is
  located.
• Centralized database interfaces with different
  stores/dealers.

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Product Location and Search (PLS)

• Absence of database.
• Two issues
• Pricing
• Correctness.

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Proactive Service Management (PSM)

• Applications attempting to provide users
  information on services they will need in the
  near future.
• Example Information about the aging components
  of an automobile.
• Helps reduce inventory costs and improve service
  delivery.
• Automobiles equipped with smart sensors and
  information transmitted via wireless networks to
  service centre.

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Proactive Service Management (PSM)

• Issues
• Privacy
• Security
• Reliability
• Cost of deployment.
• Potential customers.

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Wireless Business Re-Engineering

• Applications that focus on improving the quality
  of business services using mobile devices and
  infrastructure.
• Example Instant claim payments by insurance
  companies.
• On the spot claim adjustments can be done.
• Speed of this service adds to companys bottom
  line and competitive advantage.
• Security and connectivity issues.

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Mobile Auction, Entertainment and other Services

• Mobile Auction Applications allowing users to
  buy orb sell certain items using multicast
  support of wireless infrastructure. (B2C, B2B).
• Mobile Entertainment Services and Games
  Applications providing entertainment services to
  users on per subscription basis.
• Example Video on demand, audio on demand and
  interactive games.
• Technology related issues device capabilities,
  bandwidth, adequate middleware support.

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Mobile Auction, Entertainment and other Services

• Other services
• Mobile Office (B2C).
• Mobile Distance Education (B2C).
• Wireless Data Centre (B2C, B2B).

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Wireless User Infrastructure and Middleware Issues

• Several functional components are necessary to
  make m-applications a reality.
• Device capabilities.
• Dynamic, smart, and adaptable user interface.
• Ability to accept input in many forms.
• Ability to display rich and usable contents.
• Multi network interfaces support.
• Basic security services.
• Possible support for context awareness.
• Robust operating system.

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Wireless User Infrastructure and Middleware Issues

• Middleware Functional layer that unites
  different applications, tools, networks, and
  technologies allowing user access via a common
  interface.
• Mobile Middleware Defined as an enabling layer
  of software that is used by applications
  developers to connect their m-commerce
  applications with different networks and
  operating systems without introducing mobility
  awareness in the applications

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Wireless User Infrastructure and Middleware Issues

• Mobile middleware plays a critical role in
  m-commerce transactions.
• Processing, information transmitted.
• Information push support.
• Adapting web content for wireless users Wireless
  Application Protocol (WAP).
• Use of Optimization techniques
• Compressions, acknowledgements, concatenation.

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Mobile Middleware for Application and Content
Adaptation
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Wireless Infrastructure Requirements for Mobile
Commerce

• Location Management Discussed later.
• Multicast Support wireless ad hoc networks,
  Fault tolerance for Group connectivity,
  synchronization and atomicity of transactions.
• Network Dependability Component failure, user
  access, levels of availability
• Quality of Service bandwidth, delay and delay
  variation, packet loss.
• Roaming across Multiple Networks Handoff and
  tracking users.

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M-Commerce Issues for Carriers and Developers

• Wireless carriers play a very active and
  important role in the mobile commerce
  applications and services.
• a mobile user is likely to prefer one common bill
  (bundled services)
• Service providers can also act as content
  aggregators but not application or content
  provider.
• Service provider can also act as a clearing house
  for content and application providers

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M-Commerce Issues for Carriers and Developers

• Many technical and non-technical hurdles
• Carriers
• Pricing related issues.
• Several carries involved.
• Division of revenues.
• New business models necessary.
• Different standards for accessing wireless
  networks.

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M-Commerce Issues for Carriers and Developers

• Pricing Strategies
• Flat Rate Pricing.
• Connection time/session duration based.
• Number of transactions Completed.
• Group Multicast Pricing.
• Based on number of ISPs/Network carriers involved
  in a transaction.
• Based on amount of traffic generated/transmitted.
• Based on a combination of several factors.

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M-Commerce Issues for Carriers and Developers

• Division of Revenues among multiple Service
  Providers.
• Distance traveled Ratios.
• Number of packets/number of copies made.
• Processing power.
• Link based.
• Customer based.
• A combination of above factors.

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M-Commerce Issues for Carriers and Developers

• Issues for developers
• Application Independence from various device and
  wireless technologies.
• Increases actual code
• Device capabilities not fully exploited.
• Other issues Support for Internet Protocol (IP),
  Wireless Application Protocol (WAP).
• Application Development
• Use of existing software kits.
• Number of concurrent users.
• Security
• Fixed users.

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M-Commerce Issues for Carriers and Developers

• Network Processing and Storage requirements
• QoS
• Device capabilities.
• Group communication support.
• Wireless operation
• Desirable features
• Support for Intermittent connectivity.
• Adaptive in nature.
• Support for atomic transactions.
• Easy upgradability.

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Key Technology Limitations of M-Commerce

• Technology Related
• Distance.
• Speed/Bandwidth
• Device/Network Constraints. (accuracy)
• Security and Privacy. (Physical security)
• Location Management
• Location privacy and anonymity.
• Mobile support for business applications

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Key Technology Limitations of M-Commerce

• Other Issues
• Scalability
• Interoperability
• Resource requirements
• Context awareness

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Key Business Related Limitations of M-Commerce

• Business Related Many businesses feel the
  present state of mobile computing is not stable
  or matured.
• Bewildering structural problems. (Lack of
  standards)
• Plethora of options Interoperability.
• Key questions relate to
• Adoption
• Value creation
• Broad based application development issue.
• The Cost-benefit Justification.
• Established companies approach.

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Location Based M Commerce

• Location Based M Commerce Delivery of m commerce
  transactions to individuals in a specific
  location at a specific time.
• Services provided through location based m
  commerce focus on 5 key areas
• Location
• Navigation
• Tracking
• Mapping
• Timing
• Technologically, the ability of a location based
  service to identify where is mobile consumer is
  located depends on global positioning system

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Location Based Services

• Location Based Services Utilize a users
  location to provide location-aware content
  including information on restaurants, devices,
  users, and products.
• Offered in Push/Pull modes.
• Requires location tracking of portable and mobile
  entities.
• Storage Location database
• User arrival services offered on the basis on
  profile and preferences.
• A personalized location based architecture is
  shown in the next slide.

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Location Management Types

• Push versus Pull.
• Who furnishes location information?
• Static versus Dynamic
• Static LM
• User update for every inter-cell movement
  wasteful for quick movements.
• Dynamic LM Profile based.

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Personalized Location Based Service Architecture
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Location Based Services

• Currently there are a few examples of location
  based services not necessarily personalized or
  user specific.
• Carrier Based.
• Vendor based
• Others using Cellular Digital Packet Data
  (CDPD), Service discovery on the basis of URLs.

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Specific Location Management Requirements of M
Commerce Applications

• Location accuracy.
• Response time and Priority.
• Network Coverage.
• Number of devices involved.
• Wireless dependability and reliability.
• Types of communications.

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Specific Location Management Requirements of M
Commerce Applications

• Number of location queries per transaction.
• Frequency and duration of transactions.
• Note A minimum capability set of each wireless
  network should be matched with minimum
  requirements of each M-Commerce Application.

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Specific Location Management Requirements of M
Commerce Applications

• Other Issues
• Privacy and Security Vulnerable to security
  threats.
• Ownership of Location Information Is it the
  wireless carrier??
• Dependability of wireless infrastructure.
• Cater to different services

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Specific requirements of Three location Intensive
applications

• Mobile Financial Services
• Consists of
• Mobile banking and brokerage services,
• Mobile money transfer, and
• Mobile payments Micro/Macro
• Micro Toll call, pre paid numbers.
• Payment Providers Vodafone, Paybox.

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Specific requirements of Three location Intensive
applications

• Tracking of Mobile Financial Institutions, mobile
  users, transaction servers and devices.
• Mode of transfer.
• Dependability critical.
• Note Transaction duration and frequency.
• Requires strong security support.

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Specific requirements of Three location Intensive
applications

• Mobile Advertising Targeted advertising by
  keeping track of
• Users purchasing habits.
• Users current location.
• Messages must reach specific users.
• Same message sent to several users.
• Three attributes Location management,
  Multicasting, Roaming support.
• Use of third party services.

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Specific requirements of Three location Intensive
applications

• Mobile and User Specific Advertising
• Dependability issues not relevant.
• Delivery mode and location accuracy.
• Issue with respect privacy and sharing of user
  information.

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Specific requirements of Three location Intensive
applications

• Personalized Location Based Services
• Introduce requirements that are likely to be
  somewhere in between financial applications and
  mobile advertising.
• Entities involved, accuracy of information,
  wireless dependability issues.

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M-Commerce Applications and Requirements
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Integrated Location Management Architecture

• Consists of several heterogeneous wireless
  networks including satellites, cellular networks
  such as 3G networks, and, wireless LANs and PANs
  to support diverse location requirements.
• Architecture (Refer to Figure in Next Slide)
• Extensive wireless coverage is achieved.
• Enhanced infrastructure dependability
• Fault Tolerance
• Multi access support
• Wireless Multicast Support??
• Level of accuracy achieved is both time and
  location dependent
• Other requirements Traffic related.

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Integrated Location Management Architecture
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Satellite Based Location Tracking Wide Area
Coverage (GPS)
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Location Tracking by Cellular Wireless Networks
Wide Area Coverage
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Wireless LANs for Precise Location
Tracking Coverage for small areas