Download Mobile Commerce: The Business of Time

ELC 200 Day 9
ELECTRONIC COMMERCE
From Vision to Fulfillment
Third Edition
Elias M. Awad
© 2007 Prentice-Hall, Inc
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Agenda
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Questions from last class?
Assignment 2 Corrected
– 9 A’s, 2 B’s, 6 C’s & 2 D’s
Assignment 3 Feb 25 @ 3:35 PM
Quiz 2 will be on Feb 28
– Chapter’s 3, 4, 5 & 6
– 20 M/C @ 4 Points each
– 4 short essays @ 5 Points each
– 1 extra credit question for 5 Points
– 50 mins, Open Book, Open Notes
Possible Extra Credit questions
– Where’s my name?
Hint >>>
– Who’s this guy? >>>
Discussion on Mobile Commerce
© 2007 Prentice-Hall, Inc
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Mobile Commerce:
The Business of Time
ELECTRONIC COMMERCE
From Vision to Fulfillment
Third Edition
Elias M. Awad
© 2007 Prentice-Hall, Inc
6-3
The focus of this chapter is on
several learning objectives
• The basic concept of wireless commerce
• The reasons for going wireless
• How wireless technology is employed
• Wireless (in)security
• The role of cellular phones in wireless commerce
© 2007 Prentice-Hall, Inc
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Learning Objectives (Cont’d)
• Factors in designing a wireless local network
• The protocols for M-commerce architecture
• The dawn of wireless banking
© 2007 Prentice-Hall, Inc
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Wireless Communication
• Transmitting signals over radio waves instead of
wires
• Wireless LAN (WLAN) is a standard for wireless
networking
• WLAN is becoming the backbone of mobile or mcommerce
• Wireless networks are just as effective as wired
systems
© 2007 Prentice-Hall, Inc
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What is M-Commerce?
• Transactions and payments conducted in a nonPC-based environment
• The transmission of user data (e.g., e-mail,
spreadsheet) without wires
• The management of the processes that handle the
product or service needs of a consumer via a
mobile phone
• Use of wireless devices to facilitate the sale of
products and services, anytime, anywhere
© 2007 Prentice-Hall, Inc
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M-Commerce Categories of
Services
• Information-based consumer services
• Transaction services
• Location-centric, personalized services that anticipate your
purchases based on your location and data stored in your
“profile”
• http://www.blackberry8800.com/
• http://h10010.www1.hp.com/wwpc/us/en/sm/WF04a/215348215348-64929-314903-215381.html
• http://www.palm.com/us/products/smartphones/treo750/?cre
ativeID=LFB|treo750_learn_more
• http://www.apple.com/iphone/
© 2007 Prentice-Hall, Inc
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History of Wireless
Communication
• 1895, Marconi successfully transmitted radio
waves without using wires
• 1940s, two-way car radios were installed by
police, government agencies, and utility
companies
• 1969, introduction of a commercial cellular radio
operation on trains running from New York City to
Washington, D.C.
• 1978, introduction of analog-based cellular
telephone services to the general public
© 2007 Prentice-Hall, Inc
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Three Generations of Digital
Cellular Technology
• The first generation operates in the 800-900 MHz
(megahertz) frequency spectrum
– 832 frequencies available for transmission
– Lock the channel for the caller and the recipient through
the telephone company’s switch
• 2G started in the early 1990s
– Operates between 9.6 Kbps and 14.4 Kbps in the 800
MHz and 1.9 GHz frequencies
– Digital, not analog transmission
– Lacks a universal system of wireless communication and
lack of the bandwidth inherent in a circuit-switched
network
© 2007 Prentice-Hall, Inc
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Three Generations of Digital
Cellular Technology (Cont’d)
• 2.5 generation is somewhere in later stages of 2G
– “always on” capability
– Packet-switched design
• 3G, marks the beginning of a uniform and global worldwide
standard for cellular wireless communication, capabilities
include:
– Streaming video
– Two-way voice over IP
– Internet traffic with high quality graphics and plug-ins for
a wireless phone
– Transmission speeds of 144 Kbps for fast-moving mobile
wireless devices
© 2007 Prentice-Hall, Inc
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Three Generations of Digital
Cellular Technology (Cont’d)
• Future 4G technology extends 3G capacity by one
order of magnitude
– http://www.wsdmag.com/Articles/ArticleID/1000
1/10001.html
– http://www.time.com/time/printout/0,8816,90103
1013-493250,00.html
– http://www.wireless-world-research.org/
– http://www.wired.com/news/technology/wireles
s_special/0,2914,69032,00.html
© 2007 Prentice-Hall, Inc
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Generations of Cellular Service
Generation
First
2nd
2.5G
3G
Technology
Analog
Digital
Digital
Digital
Data Transfer
Rate
Data Transfer
Is Difficult
10 kbps*
Channels
~800
~800 +
2,500
~800 +
2,500
?
Cells/ Channel
Reuse
Large/
Medium
Small/
High
Based
on 2G
?
20 kbps to 144 kbps
144 kbps to 2 Mbps
*Sufficient for Short Message Service (SMS) and wireless Web
access using the Wireless Access Protocol (WAP) or i-mode
© 2007 Prentice-Hall, Inc
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Key Consumer Benefits
• Time and money
• Anywhere functionality to stay competitive
• Freedom of choice
• Productivity and flexibility in coordination
• Location-centricity
© 2007 Prentice-Hall, Inc
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Mobile Product Locations
Source: U. Varshney, R. J. Vetter, and R. Kalakota. “Mobile Commerce: A new Frontier,” Computer, Oct.
2000, 3)
© 2007 Prentice-Hall, Inc
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Wireless Application Protocol
(WAP)
• Designed to deliver messages and data traffic to
mobile phones within a geographical area
• Open, global, industry-wide mobile specifications
for wireless network architecture, application
environment, and a set of communication
protocols
© 2007 Prentice-Hall, Inc
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Wi-Fi (Wireless Fidelity)
• Industry standard that makes it possible for
hardware firms to create wireless products that
communicate with one another
• Access point spreads Internet access
• Makes the work environment more mobile and
easier to shift workspaces around within the firm
• Security remains a major concern
– Professor Gauvin’s paper on Wi-Fi (in)security
• wireless insecurity.doc
© 2007 Prentice-Hall, Inc
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Wi-Fi (continued)
• Offices transmit data from a company’s intranet to
employees on the move
• Employees on the move can help companies
reach suppliers and improve customer service
• Wireless devices in a warehouse or a
manufacturing facility can reduce handwritten
reports and missed deliveries
• Wireless devices open new shortcuts to stock
trading, banking, and personal finances
© 2007 Prentice-Hall, Inc
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Key Limitations
• Distance
• Speed
• Security and privacy
• Quality of service varies
• Difficult for the user to remember all the phone
numbers, keywords, or codes
• Batteries have a poor record
© 2007 Prentice-Hall, Inc
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Key Limitations (Cont’d)
• Mobility does not matter when already overwhelmed with
information at work
• Connecting charges continue to be high
• For certain destinations, a GPS in your car in not that useful
• Immediate response is expected
• No peace anymore in public places
• Poor implementation of many wireless networks
© 2007 Prentice-Hall, Inc
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Critical Success Factors
• Mobility
• Personalization
• Global standardization
• Customer profiling
© 2007 Prentice-Hall, Inc
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Bluetooth
• Universal, low-cost, low-powered wireless
technology that uses short-range radio frequency
(RF) to hook up wireless connectivity among
computers, scanners, and printers
• Allows any Bluetooth-enabled device to
communicate with other similar devices,
regardless of manufacture
• Allows electronic devices to communicate and
share information without action from a user,
wires, or cables
• Low complexity
• Robust
© 2007 Prentice-Hall, Inc
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Layered Bluetooth Architecture
• Primary layer, called the radio layer, forms the physical
connection interface that oversees transmission within a
small network called a piconet
• Second layer, is the baseband, which with a radio and an
antenna makes up the physical transmission component of
a Bluetooth device
• Link manager protocol (LMP) is a Bluetooth layer that sets
up ongoing link management with Bluetooth devices
– Piconet management
– Link configuration
– Security functions
• Hacking of Bluetooth is called War Nibbling and bluecasing
© 2007 Prentice-Hall, Inc
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Personal Area Networks (PANs)
• Connect Devices On or Near a Single
User’s Desk
– PC, Printer, PDA, Notebook
Computer, Cellphone
• Connect Devices On or Near a Single
User’s Body
– Notebook Computer, Printer, PDA,
Cellphone
• The Goal is Cable Elimination
© 2007 Prentice-Hall, Inc
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Personal Area Networks (PANs)
• There May be Multiple PANs in an Area
– May overlap
– Also called piconets
© 2007 Prentice-Hall, Inc
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Figure 5.11: Bluetooth
Operation
Notebook
Master
Printing
File Synchronization
Printer Slave
Client PC
Slave
Piconet 1
Cellphone
Telephone
© 2007 Prentice-Hall, Inc
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Figure 5.11: Bluetooth
Operation
Notebook
Client PC
Printing
Printer Slave
Call Through Company
Phone System
Cellphone
Master
Telephone Slave
Piconet 2
© 2007 Prentice-Hall, Inc
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Figure 5.11: Bluetooth
Operation
Notebook
Master
Printing
Piconet 1
File Synchronization
Printer Slave
Client PC
Slave
Call Through Company
Phone System
Cellphone
Master
Telephone Slave
Piconet 2
© 2007 Prentice-Hall, Inc
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Bluetooth automotive
© 2007 Prentice-Hall, Inc
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Satellite Technology
• “Long-haul” data transmission is made possible
via satellites
• Repeater in a satellite receives the signal
representing the data and “repeats” the signal to
another location
© 2007 Prentice-Hall, Inc
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GEO Satellite System
2. Point-to-Point
Uplink
1.
Geosynchronous
Satellite
3.
Broadcast
Downlink
5. Earth Station A
4.
Footprint
Earth Station B
Satellite appears stationary in sky (35,785 km or 22,236 mi)
Far, so earth station needs dish antenna
© 2007 Prentice-Hall, Inc
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LEO and MEO Satellite Systems
1. Currently Responsible LEO or MEO
2. Next Responsible
LEO or MEO
3. Small
Omnidirectional Transceiver
A few thousands of km or miles (Low Earth Orbit)
or tens of thousands of km (miles) (Medium Earth Orbit)
Closer than GEO, so omnidirectional transceivers can be used
User is served by a succession of satellites
© 2007 Prentice-Hall, Inc
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How Cellular Works
• Network of cell sites distributed over a wide area
– Radio transceiver
– Base station controller
– Tower and antennas
• Mobile telecommunications switching office (MTSO) is a
cellular switch that places calls from land-based telephones
to wireless customers
• System identification code (SIC)
• Controlled channel
• Phone transmits a registration request
• MTSO keeps track of the phone’s location in a database
© 2007 Prentice-Hall, Inc
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How Cellular Works (Cont’d)
• MTSO finds you and your phone in the database
• MTSO picks up frequency that your phone will use
in that cell
• MTSO tells your phone over the control channel
which frequencies to use
• When your phone and the tower switch to those
frequencies, the call is connected
© 2007 Prentice-Hall, Inc
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Cellular Telephony
Mobile Telephone
Switching Office
PSTN
G
D
1.
Automatic
Handoff Between
Cellsites O to P as
Phone Travels
Between
Cells
H
B
A
K
E
C
N
L
O
Handoff
I
F
P
M
J
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Wireless LAN (WLAN)
• Uses radio waves to connect laptops and other electronic
devices to a LAN
• Identical to a regular LAN, except that the devices are
wireless
• Wireless network interface card (WNIC) is a card that
interfaces between the wireless device and an access point
for data or voice transmission and reception
• Access point (AP) is when a wireless station sends a frame
to a server, an access point acts as a bridge that passes the
frame over the wired LAN to the server
© 2007 Prentice-Hall, Inc
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Typical 802.11 Wireless LAN
Operation with Access Points
CSMA/CA+ACK
Switch
UTP
Radio Link
Access
Point A
UTP
Access
Point B
Client PC
Server
Large Wired LAN
© 2007 Prentice-Hall, Inc
Notebook
Handoff
If mobile computer
moves to another
access point,
it switches service
to that access point
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Typical 802.11 Wireless LAN
Operation with Access Points
Access Point
Industry
Standard
Coffee
Cup
Wireless
Notebook
NIC
Antenna
(Fan)
PC Card
Connector
© 2007 Prentice-Hall, Inc
To Ethernet
Switch
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Typical 802.11 Wireless LAN
Operation with Access Points
D-Link
Wireless
Access
Point
© 2007 Prentice-Hall, Inc
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Typical 802.11 Wireless LAN
Operation with Access Points
Linksys
Switch
With
Built-In
Wireless
Access
Point
© 2007 Prentice-Hall, Inc
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Typical 802.11 Wireless LAN
Operation with Access Points
•
The Wireless Station sends an 802.11 frame to a server via the
access point
•
The access point is a bridge that converts the 802.11 frame into an
802.3 Ethernet frame and sends the frame to the server
802.11
Frame
Mobile
Station
802.3
Frame
Access
Point
Ethernet
Switch
© 2007 Prentice-Hall, Inc
Server
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802.11 Wireless LAN Speeds
• 802.11
•
802.11b
•
802.11a
•
802.11g
2 Mbps (rare)
2.4 GHz band (limited in bandwidth)
11 Mbps,
2.4 GHz
3 channels/access point
54 Mbps,
5 GHz (> bandwidth than 2.4 GHz)
11 channels/access point
54 Mbps,
2.4 GHz
limited bandwidth
© 2007 Prentice-Hall, Inc
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Ad Hoc 802.11 Networks
• Ad Hoc Mode
– There is no access point.
– Stations broadcast to one another directly
– Not scalable but can be useful for SOHO use
– NICs automatically come up in ad hoc mode
© 2007 Prentice-Hall, Inc
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802.11 Security
• Attackers can lurk outside your premises
– In “war driving,” drive around sniffing out
unprotected wireless LANs
– In “drive by hacking,” eavesdrop on
conversations or mount active attacks.
Doonesbury
July 21, 2002
Outside
Attacker
Site with 802.11 WLAN
© 2007 Prentice-Hall, Inc
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Factors When Considering WLAN
• Range and coverage
• Throughput
• Security and integrity
• Cost and scalability
• User costs
• Standardization of WLANs
© 2007 Prentice-Hall, Inc
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Wireless Security Concerns
• Transmitted message must be protected all the
way to its destination host
• Host system must verify or authenticate the user
• Wired Equivalent Privacy (WEP) is part of Wi-Fi
security mechanism that makes it possible to
encrypt messages before heading for their
destination
– Uses a secret key to encrypt messages
– 40-bit key is standard but vulnerable
– Even the latest 128-bit key is not fully secure
© 2007 Prentice-Hall, Inc
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Wireless Application Protocol (WAP)
• Basis for the mobile Internet
• Universal standard for positive wireless Internet
implementation
• Adds an Internet protocol layer to the cellular
network
© 2007 Prentice-Hall, Inc
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Schematic of the WAP Model
© 2007 Prentice-Hall, Inc
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WAP Protocol Stack
Wireless Application
Environment (WAE)
WAP element that establishes an interoperable environment
to allow operators and service providers to build
applications and services for a large variety of wireless
platforms.
Wireless Session
Protocol (WSP)
WAP element that decides whether a network and a device
will communicate back and forth or whether data will be
transmitted straight from a network to the device.
Wireless Transaction
Protocol (WTP)
WAP layer that ensures that data flow from one location to
another efficiently based on a request/reply paradigm
Wireless Transport
Layer Security (WTLS)
Wireless Datagram
Protocol (WDP)
Network Carrier
Method (NCM)
WAP element that gives security to the system via
encryption, data integrity verification, and authentication
between the user and the server
WAP feature that confirms easy adaptation to the WAP
technology
A technology that a wireless provider uses
© 2007 Prentice-Hall, Inc
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WAP Limitations
• Small keypad and without a mouse
• Devices have limited memory
• Reliability uncertain
• A period of high latency or delays before making
the connections
• Security issues
• Legal Issues
© 2007 Prentice-Hall, Inc
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Mobile Payments Framework
and Examples
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Trust Issues
• Customers have an inherent resistance to sharing
personal or private information with technology
• Trust is a psychological state involving confident
positive expectation about another person’s motive
with respect to a given exchange or a relationship
entailing risk
• Gaining customer trust in m-commerce can be a
daunting process
• To enhance trust in mobile commerce, security must
be designed into the entire mobile system
–
–
–
–
–
–
Enhancing customer familiarity with the company
Building a reputation that suggests certainty and less risk
Providing attractive rewards to attract potential customers
Maintaining company integrity
Strengthening security controls
Use external auditing
© 2007 Prentice-Hall, Inc
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Managerial Issues
• Evaluate corporate needs
• Evaluate the wireless needs
• Send out a request for proposal (RFP)
• Request a demo of the proposed wireless system
• Install and test the wireless system
• Train employees
• Provide ongoing maintenance
• Most important element is the human staff
• Best practice to reduce costs is to standardize
wireless devices
© 2007 Prentice-Hall, Inc
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Implications for Management
• M-commerce is long on technologies but short on
standards
• M-commerce opens doors to new ways of doing
business
• M-commerce will dominate areas where they have
time-based and location-based value
• Consider cultural and location-based issues
• Prepare the company to offer mobile services that
will be strategically advantageous to the business
• Experiment with the new m-technology and view
the whole effort as an investment in tomorrow’s
way of doing business
© 2007 Prentice-Hall, Inc
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Chapter Summary
• M-commerce is the transmission of user data
without wires
• The wireless Web is a technological frontier, open
and growing
• The main benefits are convenience, flexibility, and
efficiency with anytime, anywhere access
• Wireless limitations address distance, speed, and
security factors
• Four critical success factors need to be
monitored: mobility, personalization, global
standardization, and customer profiling
© 2007 Prentice-Hall, Inc
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Chapter Summary (Cont’d)
• Bluetooth is a universal, low-cost wireless
technology designed for short-range radio
hookup for wireless connections among
computers, scanners, and printers
• Key layers of Bluetooth are the radio layer,
baseband layer, and link manager protocol
• The transmitted message must be protected all
the way to its destination, and the host system
must verify or authenticate the user it is
communicating with
• 2G digital cellular technology expedites vehicles
in motion
© 2007 Prentice-Hall, Inc
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Chapter Summary (Cont’d)
• A cell site contains a radio transceiver and a base
station controller
• Cell sites coordinate the hand off as you move
from one cell to another
• The most common standard for wireless
networking is the WLAN
• To consider WLAN technology, you must consider
range and coverage, throughput, security and
integrity, cost and stability, and standardization
• Most WAP benefits are reflected in wireless
applications
© 2007 Prentice-Hall, Inc
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Chapter Summary (Cont’d)
• WAP has the limitations of low-power CPU, small
screens with questionable clarity, limited device
memory, small keypads and no mouse,
questionable connections for reliability, and high
latency
• Companies are beginning to consider the liability
issues, as well as managerial issues
© 2007 Prentice-Hall, Inc
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