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B2B Wireless E-Commerce or M-Commerce
Introduction
The Business-to-business (B2B) wireless e-commerce market is only in its
infancy. Technology is improving, and companies that use wireless services to
their advantages are reaping substantial benefits in cost savings. At least as
much value could be created if corporations used wireless services to improve
their current business to business relationships or to deliver new ones.
Information intensive businesses, particularly those that employ mobile
workforces, have the greatest opportunity to reap benefits from wireless data
applications.
Some examples of companies that rely on wireless business services, or B2B
wireless e-commerce, are FedEx and the United Parcel Service (UPS). These
companies manage their package delivery fleets with wireless systems. These
services facilitate the B2B transaction. FedEx and UPS always know where
every delivery truck is, because it has a GPS receiver and is wirelessly
connected to a vehicle tracking system. They also know what is contained within
that truck. The drivers of these trucks have a wireless device, which
automatically updates databases back in a data center whenever a package is
delivered and signed for.
Another market sector that is starting to implement B2B M-Commerce is the
home utility sector (electricity, water, phone, etc.). Such that, every house that is
connected to a public water supply or is using vendor provided electricity, for
example, could potentially have wireless meters attached to them, to the read the
meters automatically. Thus generating substantial cost savings by eliminating
the need to send someone to every house to do the job.
B2B Wireless E-Commerce also encompasses the wireless point of sales (POS).
This will provide an industry-specific example of how new value can be created
by improving customer service. For example, today, people hold Tupperware
parties, or sell beauty products such as Avon and Mary Kay door to door. With a
wireless device that can take orders, process credit cards and provide receipts,
there is no need to submit the orders on paper and mail them in anymore. This
wireless device will allow orders to be placed within the company without paper,
from remote locations.
In this project we intend to walk you through the development of B2B Wireless ECommerce (or from hear on out, M-Commerce). We are going to talk about what
“commerce” is. How commerce evolved into “E-Commerce”. And finally, how Ecommerce evolved into “M-Commerce.”
Business to Business Wireless E-Commerce
B2B Wireless E-Commerce (also known as B2B M-Commerce), is the process in
which goods and services are purchased or the way in which the processes
related to those business transactions are performed wirelessly.
B2B M-Commerce is beginning to replace E-Commerce, such as in the way ECommerce replaced traditional commerce. Take for example, ordering the raw
metal needed to produce a car. One used to have to go and visit the stock, and
put a hold on it. Then you would have to back to your company, cut a check for
the raw metal. Then a delivery agency (FedEx, USPS, courier, etc.) would pick
up the check and deliver it to the raw metal vendor. Then came the ECommerce era, where one could view the stock via a computer and the Internet,
enter a charge account, and viola, the raw metal would be delivered. With MCommerce, one can visit the stock, place an order, and process the order, all
from a handheld device, instantly. A lot of technology is used to accomplish this,
such as:
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WAP, wireless application protocol
UWB, ultra wide band
GSM, global systems for mobile communications
CDMA, code division multiple access
M-Commerce has to have several key components in order to work. One must
have a device, capable of sending information. This can be as simple as a
modern cell phone, or a PDA such as a Palm Pilot, or the BlackBerry device. It
can be as advanced as a laptop with a wireless modem attached to it, or a device
designed and built for the transfer of wireless data. There must then be a
receiver, to listen for the transmission from the wireless device. A vehicle to
move the data from the receiver to it’s final destination, must also be used.
Take for example, the door to door Avon salesperson. This person could
conceivably carry a device, much like a Palm Pilot, which they could enter orders
into and submit, all from the palm of their hand. This device could potentially
utilize any one of the following wireless network protocols or the means by which
the device communicates to its receiver: WAP (wireless application protocol, or
UWB (ultra wide band). These protocol ride on a wireless network, either GSM
(global systems for mobile communications), or CDMA (code division multiple
access). These protocols conceptually work like TCP/IP works on the Internet.
And the network they ride on, conceptually works like Ethernet does with the
Internet. Modern digital cell phones utilize either the CDMA or GSM networks.
The information that is passed from the device, then over the wireless network, is
received by a receiver. This receiver then re-transmits the data over a network to
it’s final destination. In the Avon salesperson case, the data could be an order,
which is sent from the handheld device. This order is then received by the
receiver, and retransmitted on “land-lines” to it’s final destination. This final
destination could be an order tracking database at Avon’s headquarters or
warehouse. This is only one example.
Lets look back at the example of FedEx and UPS from the introduction. These
companies maintain their own radio networks in order to keep track of their fleets.
Instead of the devices installed in the vehicles and in their handheld devices
using GSM or CDMA, they are using radio signals. Everything else works pretty
much the same. The device must transmit it’s data over a network of some sort,
in this case it is a radio network. A receiver must receive this data, in this case a
radio tower, somewhere. This data must then be re-transmitted over data lines
to a network in which the data can find its destination.
Summary
In summary, the way in which business is conducted is continually changing. We
have already entered the computer age. We have already entered the Internet
era. We have only just begun to enter the wireless era. With the electronics
market being flooded with new wireless devices it is inevitable that B2B
transactions will follow.