Mobile Commerce and

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Lecture 10

• Mobile Commerce and
• Pervasive Computing

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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

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Mobile Computing

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

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Exhibit 9.1 The Mobile Commerce Landscape
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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

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Exhibit 9.2 The Wireless Mobile Environment
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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

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Exhibit 9.4 WAP Architecture
TLS (SSLv3)
TLS (SSLv3)
WTLS
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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

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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

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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

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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

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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.

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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

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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)

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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

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Exhibit 9.5 How Wi-Fi Works
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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

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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

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Exhibit 9.6 Cellular Telephone Network
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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

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Three.com.au
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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

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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

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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

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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

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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

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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

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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

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Zed.com
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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

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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

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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

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Mobile Assistant from xybernaut.com
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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

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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

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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

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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

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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

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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)
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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

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Mapinfo.com
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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Pervasive Computing

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