ELC 200

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ELC 200

• Day 19

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Agenda

• Questions from last Class?
• Quiz 2 results
• 5 As, 5 Bs, 2 Cs and 1 non-submit
• Assignment 5
• Due April 17
• Two more assignments left
• EBiz plan and presentations
• Due may 8 _at_ 8AM
• More to come
• Two more Quizes
• April 17 May 4
• Today's discussion is on Knowledge Management
  and Mobile Commerce

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Question

• Define the following
• Data
• Information
• Knowledge
• Understanding
• Wisdom
• Where does learning (and teaching) fit??

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Knowledge Management

• Knowledge management (KM)the process of
  capturing or creating knowledge, storing it,
  updating it constantly, and interpreting and
  using it whenever necessary
• Knowledge basethe repository for an enterprises
  accumulated knowledge
• Promotes an integrated approach to the process of
  identifying, capturing, retrieving, sharing,
  evaluating enterprise information assets
• Documented
• Tacit expertise stored in individuals heads

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Online Advice and Consulting

• Medical advice
• Management consulting
• Legal advice
• Gurus
• Financial advice

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Portal Speed RD at Amway

• For effective RD, Amway must develop new
  products in a streamlined and cost-efficient
  manner
• To support design activity the need fast and easy
  access to
• Product specifications Formulas
• Design criteria Production schedules
• Costs Sales trends

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Amway (cont.)

• Artemisa business intelligence and knowledge
  management portal
• Easier access to corporate knowledge
• Browser-based intranet application that enables
  RD to
• Quickly find the information and knowledge they
  require
• Collaboration tools
• Database for locating company experts

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Amway (cont.)

• Lotus Notes/Domino search agent enables employees
  to
• Pull data from disparate corporate sources
• Generate dynamic reports
• Work in a highly secured environment
• Time required to access information
• Dropped from days to minutes or seconds
• Enabling fast what-if investigations

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Chapter 8Mobile Commerce
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Learning Objectives

• Describe the characteristics and attributes of
• m-commerce
• Describe the drivers of m-commerce
• Understand the supportive technologies and their
  capabilities
• Describe the wireless standards and transmission
  networks

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Learning Objectives (cont.)

• Describe applications of m-commerce to finance,
  marketing, and customer service
• Describe the applications of m-commerce within
  organizations
• Describe B2B and supply chain applications of
  m-commerce
• Describe consumer and personal applications of
  m-commerce

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Learning Objectives (cont.)

• Describe some non-Internet m-commerce
  applications
• Describe location-based commerce
• (l-commerce)
• Describe the major limitations
• Describe some implementation issues of m-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
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Wireless Standards

• Wireless standards
• Time-division Multiple Access (TDMA) (wrong in
  book)
• General Packet Radio Services (GPRS)
• Code Division Multiple Access (CDMA)
• CDMA One
• Global System of Mobile Communication (GSM)
• WLAN 802.11 (Wi-Fi)
• Wideband CDMA

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Wireless Standards (cont.)

• Wireless Application Protocol (WAP)a set of
  communications protocols designed to enable
  different kinds of wireless devices to talk to a
  server installed on a mobile network, so users
  can access the Internet
• Subscriber Identification Module (SIM)
• Wireless Markup Language (WML)
• Voice XML (VXML)
• Enhanced Data Rates for Global Evaluation (EDGE)
• Universal Mobile Telecommunications System (UMTS)
• IPv6

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Security Issues

• Viruses
• Smart card security solutions
• Voice communication can be intercepted by hackers
  (phreakers)
• One solution is an embedded biometric add-on
• Back-end security solutionspublic key
  infrastructure (PKI) and M-CERT (mobile
  certification)

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Voice Systems for M-Commerce

• Hands-free and eyes-free operations increase
  productivity, safety, effectiveness
• Disabled people can use voice data for various
  tasks
• Voice terminals are portable
• 2 ½ times faster than typing
• Fewer errors

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Interactive Voice Response

• Interactive voice response (IVR)a computer voice
  system that enables users to request and receive
  information and to enter and change data through
  regular telephone lines or through 1G cell phones
• Patients schedule doctors appointments
• Users request pick-up from FedEx
• Employees find information, select, or change
  benefits packages
• Electric utilities can respond to customers
  reporting power outages

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Voice Portals

• Voice portala Web site with audio interface,
  accessed by making a phone call
• Request information verbally from system that
• Retrieves the information
• Translates it into a computer-generated voice
  reply
• Tells you what you want to know
• Iping.comreminder and notification service
• Helps businesses find new customers

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Mobile Financial Applications

• Wireless electronic payment systems
• Mobile phones become secure, self-contained
  purchasing tools capable of instantly authorizing
  payments over the cellular network for goods and
  services consumed
• Micropaymentselectronic payments for
  small-purchase amounts (generally less than 10)

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Mobile Financial Applications (cont.)

• M-wallet (mobile wallet)a wireless wallet that
  enables cardholders to make purchases with a
  single click from their wireless devices
• Bill payments directly from cell phone via
• Bank
• Credit card
• Prepaid arrangement

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Examples of Financial Applications

• Swedish Postal Bank
• Dagens Industri
• Citibank
• Japanese banks

• Hoovers wireless (hoover.com)
• ASB Bank (New Zealand)
• Bostons Faneuil Hall Marketplace

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Exhibit 8.6Bill Payments by Cell Phone
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Shopping from Wireless Devices

• Buy.com allows shopping from wireless devices
• In 5-10 years most businesses will be wireless
• Online stores will become showrooms
• View products
• Purchase them using handheld devices
• Possibly enhanced by bar code scanners
• Customization may be possible

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Exhibit 8.7Mobile Shopping Supported by CRM
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Targeted Advertisement

• Personalization of services and enhanced user
  interface for wireless Web pages from
  barnesandnoble.com
• Knowing user preferences or surfing habits
  user-specific advertising messages to the
  location of mobile users
• Using GPS marketers can send location-sensitive
  messages can be sent

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Targeted Advertisement (cont.)

• Get paid to listen to advertisementslisten to a
  10second ad before you dial your cell phone, and
  get 2 minutes of free long-distance time
• Program flopped in the U.S.
• SingTel of Singapore recouped its initial
  investment from ad revenues in about a year

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Targeted Advertisement (cont.)

• Advertisement strategies and guidelinesWireless
  Advertising Association (waaglobal.org) is trying
  to establish wireless ad guidelines
• Opt-in ad programs involving mobile message
  alerts
• Addressing issues like spamming and unethical
  strategies
• Confirmed opt-ins
• Personally identifiable information
• Push advertising

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Wireless Advertising in Action

• GPS helps target users from their location
• Vindigo.complaces to go and things to do in your
  area
• GeePS.comlocation-based start-up sent coupons to
  customers cell phones
• Go2Online.comlocations-based Web domain helps
  mobile travelers find anything (e.g., the nearest
  oil change)
• http//www.go2online.com

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Supporting Customers Business
Partners(Consumer Services)

• Using voice portals in marketing and customer
  service
• Use vendors voice portal to check status of
  deliveries to a job site
• Service technicians provided with diagnostic
  information, enabling them diagnosis of difficult
  problems
• Sales people check inventory status during a
  meeting to help close a sale

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Supporting Customers Business
Partners(Consumer Services) cont.

• Using mobile portals
• Mobile portala customer interaction channel that
  aggregates content and services for mobile users
• Portals charge for their services (per service or
  monthly fee)
• Public mobile portals (e.g., Imode in Japan)
• Corporate portals
• Serve a corporation s customers and/or suppliers
• E.g., major airline portals

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Supporting Mobile Employees

• Smartphones and hand-held devices
• Wearable wireless devicesmobile wireless
  computing devices for employees who work on
  buildings and other difficult-to-climb places
• Cameras Screen
• Keyboard Touch-panel display

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Wearable Devices for Bell Canada Workers

• Wearable technology
• Powerful computer for pocket
• Keyboard attached to the vest
• Flatpanel display screen at the waist
• Video camera attaches to his safety hat
• Cell phone is attached and connected to the
  computer
• Battery pack against the back

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Wearable Devices (cont.)

• Wearable devices enable workers to access
• Work orders
• Repair manuals
• This system was developed by Xybernaut
  (xybernaut.com)
• Problems with the technology are weather related

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Supporting Mobile Employees (cont.)

• Job dispatch
• Transportation (delivery of food, oil,
  newspapers, cargo, courier services, tow trucks)
• Taxis (already in use in Korea and Singapore)
• Utilities (gas, electricity, phone, water)
• Field service (computer, office equipment, home
  repair)
• Health care (visiting nurses, doctors, social
  services)
• Security (patrols, alarm installation)

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Supporting Mobile Employees (cont.)

• Sales force automation (SFA) tools
• Integrate software aimed at m-commerce
  applications
• Equipped with smartphones providing easy access
  to customer data at the central office
• Contact management information
• Product and spare part availability
• Deal tracking

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Non-Internet Intrabusiness Applications

• Wireless networking used for item picking in
  warehouses
• Delivery and order status updates
• Online dispatching
• Online diagnosis support from remote locations
• Parts ordering/inventory queries

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Non-Internet Intrabusiness Applications (cont.)

• Mobile shop-floor quality control systems enable
• Voice reports by inspectors
• Data collection from facilities
• Transmission to a central processor
• Salespeople connect to corporate networks
• Remote database queries

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Exhibit 8.9Automated Wireless Workflow
Applications
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Internet-BasedIntrabusiness Applications

• Applications implemented inside enterprises, some
  examples
• Sonera (Finland) electronic funds transfer (EFT)
  of paychecks
• Chicagos United Center inventory can be taken
  in a matter of hours
• FedEx and UPS access Web, e-mail, databases,
  intranets, etc.

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Internet-BasedIntrabusiness Applications (cont.)

• Bertelsmann AG gives junior-level executives
  wireless access to a company portal, JuniorNet,
  accessible from almost anywhere
• Kemper Insurance Company lets property adjusters
  report from the scene of an accident
• U.S. Internal Revenue Service equipping field
  employees with mobile devices that allows audits
  to be conducted anywhere, anytime

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Exhibit 8.10Intelligent Office Connected by
Wireless LAN
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Mobile B2B and Supply Chain Applications

• Both sell-side and buy-side of ERP
• Unified messaging makes users device less of an
  issue
• Telemetry drives supply chain efficiency and
  productivity through automation of
• Data capture
• Improved billing timeliness and accuracy
• Reduced overhead
• Increased customer satisfaction
• Collaboration among members of the supply chain
  is facilitated by mobile capabilities

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Mobile Consumer and Personal Service Applications

• Mobile gaming devices
• PDAs (Handsprings Visor) with Flash RAM card
• Nintendos Game Boy Advance
• Sonys PocketStation
• Segas portable device connected to Dreamcast
• Mobile gambling
• Germanys online lottery company fluxx.com
  available via mobile terminals
• Hong Kong, betting on horse races via cell phones
  is popular

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Mobile Consumer and Personal Service Applications
(cont.)

• Mobile entertainment
• Music
• Videoreal-time streaming video (packetvideo.com)
• Hotelshotel guests equipped with
  Bluetooth-enabled mobile devices are instantly
  recognized
• Intelligent homes and appliances

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Exhibit 8.13Intelligent Home Connected by
Wireless LAN
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Mobile Consumer and Personal Service Applications
(cont.)

• Wireless telemedicineuse of mobile
  telecommunications infrastructures and multimedia
  technologies to provide medical information and
  deliver health care services remotely
• Other services for consumers
• Providing news, weather, and sports reports
• Online language translations
• Information bout tourist attractions (hours,
  prices)
• Emergency services

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Mobile Consumer and Personal Service Applications
(cont.)

• Non-Internet consumer applications
• Smart cards used in transportation
• Contactless cards (proximity cards) used to
  pay bus and subway fares and road tolls
• Amplified remote-sensing cards have an RF (radio
  frequency) of up to 30 meters used for toll
  collection

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Highway 91 Project (cont.)

• Six express toll lanes along a 10mile stretch in
  the median of the existing Highway 91
• Express lane system has only one entrance and one
  exit, and it is totally operated with EC
  technologies

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Highway 91 Project (cont.)

• The system works
• Only prepaid subscribers can drive on the road
• Large sign over the toll way tells drivers
  current fee for cruising the express lanes
• Sensors in the pavement let the toll way computer
  know that a car has entered the car does not
  need to slow or stop
• AVI makes radio contact with a transceiver
  installed above the lane

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Highway 91 Project (cont.)

• The transceiver relays the cars identity to the
  control center, where a computer calculates the
  fee for that days trip
• Surveillance cameras record the license numbers
  of cars without AVIscan be stopped by police at
  the exit or fined by mail
• Video cameras along the toll way enable managers
  to keep tabs on traffic
• System accesses the drivers account and the fare
  is automatically deducted from the drivers
  prepaid account

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Highway 91 Project (cont.)

• System saves commuters between 40 and 90 minutes
  each day, so it is in high demand
• Use of the same AVIs for other purposes
• Used in paid parking lots
• Someday you may be recognized when you enter the
  drive-through lane of McDonalds and a voice asks
  you, Mr. Smart, do you want your usual meal
  today?

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Location-Based Commerce

• Location-based commerce (L-commerce)e-commerce
  applications provided to customers based on a
  users specific location
• Location-based technologies
• Global positioning systemsa wireless system that
  uses satellites to enable users to determine
  their position anywhere on the earth
• Geographical information systems (GIS)relates
  longitude and latitude of GPS into place or
  address (mapinfo.com)
• GPS on handsetsstand-alone units for tracking
  applications

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Exhibit 8.14Location-Based Services Involving
Maps
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Exhibit 8.15GPS System
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L-Commerce Applications (cont.)

• E-911Calls from cellular phones to providers of
  emergency services
• Wireless carriers must provide feature that
  allows them to identify number and location of
  the user
• Mobile 911 calls must be forwarded immediately to
  the appropriate agency
• Automatic crash notification (ACN)device (now
  experimental) that will automatically notify
  police of a vehicular accident

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Telematics and Telemetry Applications

• Telematicsintegration of computers and wireless
  communications to improve information flow using
  the principles of telemetry
• GM OnStar systemcellular phone and PDA are
  integrated to provide personal information
  management, mobile Internet services,
  entertainment on the vehicle vehicle dashboard
• Sophisticated text-to-speech and voice
  recognition capabilities minimize driver
  distraction

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Telematics and Telemetry Applications (cont.)

• Use as a remote vehicle self-diagnostics tool
• Daimler-Chrysler and Volvo experimented with
  installation of GSM chip sets in cars
• Monitor performance and to provide an early
  warning system for potential problems
• Chip sends a message to the manufacturer
  indicating what the problem is
• Manufacturers system analyzes various data and
  provides a fix (via a software tool)
• Developing faults found before they become
  critical and continuous operation of the car can
  be ensured

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Barriers to L-Commerce

• The accuracy of some of the location technologies
• The cost-benefit justification
• M-spam
• The bandwidth of GSM networks

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Limitations of M-Commerce

• Usability problem
• Usability of a site is critical to attract
  attention and retain user stickiness
• Effectiveness, efficiency, satisfaction
• Some mobile devices are found to be ineffective
• Customers want to find exactly what they are
  looking for, easily and quickly, not possible in
  the 2G text-based environment
• More and faster multimedia will be available as
  3G spreads

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Technical Limitations

• Lack of standardized security protocol
• Security methodology needs to be incorporated in
  mobile
• Customer confidence is low
• Insufficient bandwidth
• Limits the extent to which mobility can be viewed
  commodity

• 3G licenses
• Auctioned by governments
• Certain countries cannot be served by these
  devices
• Transmission power consumption limitations
• Multipath interference
• Weather and terrain problems
• Distance-limited connections

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Technical Limitations (cont.)

• WAP limitations
• Speedin 2002 connections to WAP sites are still
  too slow
• Costfees for mobile phone users are still too
  high
• Accessibilityas of spring 2002, fewer than
  50,000 WAP-accessible sites worldwide (must be
  written in WML)

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Technical Limitations (cont.)

• Potential health hazards
• Fear of radiation
• Unsafe to drive and use wireless phone
• Cell phones may interfere with sensitive medical
  devices (pacemakers)
• Lawsuits relating to the potential health hazards
  of wireless devices have already been
  filedpublic is advised to adopt a precautionary
  approach in using mobile phones (earphone device)

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Implementing M-Commerce

• Revenue models

• Payment clearing
• Hosting fees
• Certification (PKI) fees

• Basic (fixed) fees
• Point-of-traffic fees
• Transaction fees
• Content and service charges

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Implementing M-Commerce (cont.)

• Consumer confidence and trust
• Customers love free or inexpensive services like
  those offered by iMode
• Customers not willing to pay large amounts of
  money for services unless they trust the
  product/vendor
• Confidence should increase with reliable payment
  mechanisms
• Research is being conducted in this area

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Implementing M-Commerce (cont.)

• M-commerce value chain
• Involves many partners
• Success depends on
• Coordination among participants
• Sufficient compensation for all
• Use ASP to deliver m-commerce or
• Large companies contract other vendors to
  complement their services

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Managerial Issues

• What is our timetable?
• Which applications first?
• Is it real or just a buzzword?
• Which system to use?

84
Summary

• Characteristics and attributes of m-commerce
• Drivers of m-commerce
• Supporting technologies
• Wireless standards and technologies
• Finance and marketing applications

• Intrabusiness applications
• B2B applications
• Consumer applications
• Non-Internet applications
• L-commerce
• Limitations of m-commerce