Chapter 8 Mobile Commerce

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Chapter 8Mobile Commerce
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NextBus A Superb Customer Service

• The Problem
• Buses in San Francisco have difficulty keeping to
  20 minute schedule during rush hours
• Posted schedule becomes meaningless
• The Solution
• Bus riders carrying Internet-enabled cell phone
  or PDA helps
• Find estimated arrival time at each stop,
  digitally in real time
• Soon location-based advertisements will pop
  upyou have time to get a cup of coffee before
  the bus arrivesStarbucks is 200 feet to the
  right

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NextBus (cont.)

• The Results
• Passengers in San Francisco are happy with the
  system
• Worries about missing the bus are diminished
• May discover they have time for a cup of coffee
  before the bus arrives
• Bus company can
• Schedule better
• Arrange for extra buses when needed
• Improve operations

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Exhibit 8.1NextBus Operational Model
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Mobile Commerce Overview

• Mobile commerce (m-commerce,
• m-business)any e-commerce done in a wireless
  environment, especially via the Internet
• Can be done via the Internet, private
  communication lines, smart cards, etc.
• Creates opportunity to deliver new services to
  existing customers and to attract new ones

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Exhibit 8.2Classes of M-Commerce Applications
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M-Commerce Terminology

• Generations
• 1G 1979-1992 wireless technology
• 2G current wireless technology mainly
  accommodates text
• 2.5G interim technology accommodates graphics
• 3G 3rd generation technology (2001-2005)
  supports rich media (video clips)
• 4G will provide faster multimedia display
  (2006-2010)

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Terminology and Standards

• GPS Satellite-based Global Positioning System
• PDA Personal Digital Assistanthandheld wireless
  computer
• SMS Short Message Service
• EMS Enhanced Messaging Service
• MMS Multimedia Messaging Service
• WAP Wireless Application Protocol
• SmartphonesInternet-enabled cell phones with
  attached applications

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Specific Attributes of M-Commerce

• Attributes of m-commerce and its economic
  advantages
• Mobilityusers carry cell phones or other mobile
  devices
• Broad reachpeople can be reached at any time

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Attributes of M-Commerce (cont.)

• Value-added attributes of m-commerce
• Ubiquityeasier information access in real-time
• Conveniencedevices that store data and have
  Internet, intranet, extranet connections
• Instant connectivityeasy and quick connection to
  Internet, intranets, other mobile devices,
  databases
• Personalizationpreparation of information for
  individual consumers
• Localization of products and servicesknowing
  where the user is located at any given time and
  match service to them

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Exhibit 8.3Characteristics of M-Commerce
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The Drivers

• Widespread availability of devices
• No need for a PC
• Handset culture
• Vendors push

• Declining prices
• Improvement of bandwidth
• Explosion of EC in general

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Mobile Computing Infrastructure

• Hardware

• Screenphonesa telephone equipped with color
  screen, keyboard, e-mail, and Internet
  capabilities
• E-mail handhelds
• Wirelinedconnected by wires to a network

• Cellular (mobile) phones
• Attachable keyboard
• PDAs
• Interactive pagers
• Other devices
• Notebooks
• Handhelds
• Smartpads

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Mobile Computing Infrastructure (cont.)

• Unseen infrastructure requirements
• Suitably configured wireline or wireless WAN
  modem
• Web server with wireless support
• Application or database server
• Large enterprise application server
• GPS locator used to determine the location of
  mobile computing device carrier

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Mobile Computing Infrastructure (cont.)

• Software
• Microbrowser
• Mobile client operating system (OS)
• Bluetootha chip technology and WPAN standard
  that enables voice and data communications
  between wireless devices over short-range radio
  frequency (RF)
• Mobile application user interface
• Back-end legacy application software
• Application middleware
• Wireless middleware

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Mobile Computing Infrastructure (cont.)

• Networks and access
• Wireless transmission media
• Microwave
• Satellites
• Radio
• Infrared
• Cellular radio technology
• Wireless systems

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Exhibit 8.5 Delta Airlines Wireless System
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Wireless Standards and Security

• M-commerce supported by
• Standards
• Security
• Voice systems

M-commerce