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Turban and Volonino
Chapter 7
Mobile Commerce
Information Technology for Management
Improving Performance in the Digital Economy
7th edition
John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid
Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University
Copyright 2010 John Wiley & Sons, Inc.
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Chapter Outline
7.1 Overview of Mobile Computing and Commerce:
Attributes, Benefits, Drivers, and Basic
Technology
7.2 Mobile Applications in Financial Services
7.3 Mobile Shopping, Advertising, and ContentProviding
7.4 Mobile Enterprise and Interbusiness
Applications
7.5 Mobile Consumer Services and Entertainment
Copyright 2010 John Wiley & Sons, Inc.
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Chapter Outline (cont’d)
7.6 Location-Based Services and Commerce
7.7 Pervasive Computing, Context Awareness,
and RFID
7.8 Managerial Issues
Copyright 2010 John Wiley & Sons, Inc.
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Learning Objectives
1. Discuss the characteristics, attributes, and drivers of
mobile computing and m-commerce.
2. Understand the technologies that support mobile
computing.
3. Discuss m-commerce applications in financial and other
services, advertising, marketing, and providing of
content.
4. Describe the applications of m-commerce within
organizations (mobile enterprise, intrabusiness).
5. Understand B2B and supply chain applications
(interorganizational) of m-commerce.
Copyright 2010 John Wiley & Sons, Inc.
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Learning Objectives cont’d
6. Describe consumer and personal applications of mcommerce.
7. Describe location-based commerce (l-commerce).
8. Discuss the key characteristics and current uses of
pervasive computing.
9. Describe the major inhibitors and barriers of mobile
computing and m-commerce.
Copyright 2010 John Wiley & Sons, Inc.
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• Problem – Competition is fierce; profit margins low.
Bloom needs appropriate technology to compete
with Wal-Mart.
• Solution – Wireless technology – mobile
checkstands, scanners, handhelds, Wi-Fi, RFID.
• Results – Better customer service & speedier
checkout; higher employee productivity; fewer
employees overall.
Food Lion Opens Lake Norman Bloom Store
Copyright 2010 John Wiley & Sons, Inc.
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Wi-Fi – What is it?
Food Lion Checking Out With Wi-Fi
How WiFi Works
Wi-Fi
Wi-Fi® Technology Enabling Economic and Social
Development in Rural and Urban India
Copyright 2010 John Wiley & Sons, Inc.
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7.1 Overview of Mobile Computing and
Commerce: Attributes, Benefits, Drivers, and
Basic Technology
Copyright 2010 John Wiley & Sons, Inc.
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Mobile Computing
A Brief History of Mobile Computing
First laptop invented by Alan
Kay in 1968
First PDA introduced in 1983
Copyright 2010 John Wiley & Sons, Inc.
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Copyright 2010 John Wiley & Sons, Inc.
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Mobile Computing – Attributes
The characteristics of M-commerce, mobility and broad reach break the barriers of
geography and time. Creating unique value added attributes.
•
Ubiquity refers to the attribute of being available at any location at any given time. A
mobile terminal in the form of a smart phone or a PDA offers ubiquity.
•
Convenience. It is very convenient for users to operate in the wireless environment. All
they need is an Internet enabled mobile device such as a smartphone.
•
Instant connectivity. Mobile devices enable users to connect easily and quickly to the
Internet, intranets, other mobile devices and databases.
•
Personalization. Personalization refers to customizing the information for individual
consumers.
•
Localization of products and services. Knowing the users physically location at
any particular moment is key to offering relevant products and services.
Drivers of Mobile Computing & M-Commerce
• Widespread availability of mobile devices – 50% of
world population will use mobile phones in 2008.
• No need for a pc – smart phone may soon become
foremost tool connecting people to Internet.
• Handset culture – widespread use of cell phones.
• Declining prices, increased functionalities – declined by
50% in recent years while functionalities increase.
• Improvement of bandwidth – 3G & 3.5G
• Availability of Internet access in automobiles – numbers
of availability continue to increase
Copyright 2010 John Wiley & Sons, Inc.
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Mobile Commerce
M-commerce and m-business is any e-commerce or e-business
activities performed in a wireless environment. It is not merely a
variation on existing Internet services; it is a natural extension of ebusiness creating new opportunities.
• Typical Applications include:
– Financial applications (B2C, B2B)
– Advertising (B2C)
– Inventory management (B2C, B2B)
– Field Service management
– Product locating and shopping
– Mobile office
– Mobile music / music-on-demand
Mobile Computing Revenue Model
•
•
•
•
•
•
•
Access fees
Subscription fees
Pay-per-use
Advertising
Transactions fees
Hosting
…
The landscape of mobile computing and
commerce
(Source: Drawn by E. Turban.)
Copyright 2010 John Wiley & Sons, Inc.
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How Wi-Fi works
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Wi-Fi Applications
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Barriers to Commercial Wi-Fi Growth
• Cost – it’s readily available; why pay for it?
• Security
Copyright 2010 John Wiley & Sons, Inc.
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Mobile Computing Financial Services
Mobile financial applications include:
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Banking: offer mobile access to financial and account information.
•
Wireless payments: provides mobile phones with a secure purchasing
tools capable of instantly authorizing payments
•
Micropayments: electronic payments for small-purchase amounts
•
(generally less than $10)
Wireless wallets: Software (e-wallet) that stores an online shopper’s
credit card numbers and other personal information.
•
Bill payment services: Paying bills directly from a mobile device
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Brokerage services: stock trades and quotes
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Money transfers: from one account to another
These services have the potential to turn a mobile device into a
business tool, replacing banks, ATMs, and credit cards by allowing a
user to conduct financial transactions any time and from anywhere
Mobile Banking & Stock Trading
• Services offered include: bill payments &
money transfers; access administration &
check book requests; balance inquiries &
statements of account; interest & exchange
rates; sale/purchase of stocks.
• Increasing % of banks offer mobile access –
financial & account information.
• Wachovia “go mobile today” demo
Copyright 2010 John Wiley & Sons, Inc.
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7.3 Mobile Shopping, Advertising,
and Content-Providing
Copyright 2010 John Wiley & Sons, Inc.
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Mobile Computing – Shopping
Shopping from wireless devices enables customers to
perform quick searches, compare prices, use a shopping
cart, order, and view the status of their order using their
mobile wireless devices.
Some shopping applications include:
• Restaurant chains enabling consumers to place an
order for pick up or delivery virtually any time,
anywhere.
• eBay offers “anywhere wireless” services as does
Amazon.com
• Purchasing movie tickets by wireless device
Mobile Computing – Advertising
Knowing the current location of mobile users (using GPS) and their
preferences or surfing habits, marketers can send user-specific
advertising messages to wireless devices.
This location-sensitive advertising, will informing a user
about:
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sales at a specific shop or mall
•
today’s specials at a restaurant
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loyalty programs
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and much more
all when a potential buyer is within close proximity.
•Targeted advertising
•Getting paid to listen to advertising
Mobile Computing – Mobile Portals
These are customer channels, optimized for mobility, that
aggregates and provides content and services to mobile users.
The services provided by mobile portals include:
• News
• Sports
• E-mail
• Entertainment
• Travel information
• Restaurants
• Event information
• Leisure-related services (e.g., games, TV and movie listings)
• Community services
• Stock trading.
Mobile Computing – Location-based Commerce
Location-based commerce (l-commerce) refers to the delivery
of advertisements, products and services.
•
The l-commerce services revolve around five key areas:
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Location: determining the basic position of a person or a thing
(e.g., car or boat).
Navigation: plotting a route from one location to another.
Tracking: monitoring the movement of a person or a thing (e.g., a
package or vehicle).
Mapping: creating maps of specific geographical locations.
Timing: determining the precise time at a specific location.
Mobile Computing – L-Commerce Technologies
•
Providing location-based services requires the following location-based
and network technologies:
– Position Determining Equipment (PDE). This equipment
identifies the location of the mobile device. (GPS)
– Location-based technology. This technology consists of
groups of servers that combine the position information
with geographic- and location-specific content to
provide an l-commerce service.
–
–
Geographic content. Geographic contents consists of streets,
road maps, addresses, routes, landmarks, land usage, Zip codes,
and the like. (GIS)
Location-specific content. Location-specific content is used in
conjunction with the geographic content to provide the location
of particular services.
Mobile Computing – L-Commerce Applications
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Location-based advertising.
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The wireless device is detected, and similar to a pop-up ads on a PC,
advertising is directed towards the PC.
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A dynamic billboard ad will be personalized specifically for the occupant of an
approaching car.
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Ads on vehicles (taxicabs, trucks, buses) will change based on the vehicles
location.
•
Emergency cell phone calls
•
Telematics and telemetry applications: integration of computers and
wireless communications in order to improve information flow
Location-based services involving maps
(Source: Mapinfo.com, 2001.)
Copyright 2010 John Wiley & Sons, Inc.
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Purchasing movie tickets with WAP Solo
(Source: Sadeh, 2002, Fig. 1.5.)
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Mobile Applications in Sports
Nike iPod Nano
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A smart phone with GPS system in l-commerce
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Global Positioning Systems (GPS)
For wikipedia & much
more, click here!
Artist's conception of
GPS satellite in orbit
Civilian GPS receiver ("GPS
navigation device") in a marine
application
Automotive navigation
system in a taxicab
GPS receivers are now integrated in
many mobile phones.
Copyright 2010 John Wiley & Sons, Inc.
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L-Commerce Applications Barriers
•
•
•
•
Accuracy of location-finding services
Cost-benefit justification
Bandwidth
Privacy
7.4 Mobile Enterprise and Interbusiness
Applications
Copyright 2010 John Wiley & Sons, Inc.
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Mobile Enterprise Applications
•
•
•
•
Supporting salespeople during customer visits
Supporting field employees during repairs
Supporting traveling of employees
Supporting employees working within the
organization
• Supporting employees driving trucks
Copyright 2010 John Wiley & Sons, Inc.
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7.7 Pervasive Computing, Context
Awareness, and RFID
Copyright 2010 John Wiley & Sons, Inc.
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Mobile Computing – Pervasive Computing
A world in which virtually every object has processing power
with wireless or wired connections to a global network. The
user doesn’t have to think about how to use the processing
power in the object; rather, the processing power
automatically helps the user perform a task (Invisible
Computing Everywhere).
•
•
•
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RFID (radio frequency identification) tag attached to items for sale.
Active badges worn as ID cards by employees.
Memory buttons are nickel-sized devices that store information relating to
whatever it is attached to.
Contextual computing, refers to the process of understanding the user’s
interactions within a valid context, to better understand what the consumer
needs, and what products or services they might possibly be interested in at
this time. Context awareness refers to capturing a broad range of contextual
attributes to better understand those needs.
Mobile Computing – Pervasive Computing (continued)
• Smart homes / offices / factories
• Smart cars
• Smart “Things”
– Barcodes.
– Auto Identification (Auto-ID)
– RFID: It is used in wireless tollbooth systems,
such as E-Z Pass.
How RFID works
(Source: C. Heinrich, RFID and Beyond, Indianapolis, Wiley
Publishing, 2005, Figure 3.5, p. 65.)
Copyright 2010 John Wiley & Sons, Inc.
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Mobile Computing – Pervasive Computing (continued)
•
Smart Schools. Exploring communication between students, teachers, and
the environment to create a smart learning environment.
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Intelligent Elder- Care
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Smart Offices.
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Digital Cities.
Embedded
Computing
Managerial Issues
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•
•
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Ethical & legal issues.
Implementation issues.
Failures in mobile computing & m-commerce.
Mobile device management plans are too
often non-existent.
Copyright 2010 John Wiley & Sons, Inc.
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Copyright 2010 John Wiley & Sons, Inc.
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