1. ELC 200 Day 10

2. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 2 Agenda Assignment #3 Corrected –2 A’s, 10 B’s, 3 C’s, 1 D, 2 F’s and 1 non-submit Assignment #4 due Next Quiz is on Feb 18 –Chap 4-7 of text –15 M/C (60 Points), 4 Short Essay (40 Points) – Extra credit ---the story of “bob.com” Today is a discussion on Mobile Commerce

3. Chapter 7 Mobile Commerce— The Business of Time

4. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 4 Contents What Is M-Commerce? Why Wireless? Critical Success Factors How Wireless Technology Is Employed Wireless LAN Wireless Application Protocol (WAP) Implications for Management

5. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 5 What Is M-Commerce? M-commerce is the transmission of user data without wires It also refers to business transactions and payments conducted in a non-PC-based environment The main categories are: – Information based Find info – Transaction services Do something – Location-centric Based on where or when

6. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 6 Why Wireless? The wireless Web is a technological frontier, open and growing. It traces its roots to the invention of the radio back in 1894 by Marconi Wireless networking makes it possible to connect two or more computers without the bulky cables, giving the benefits of a network with little or no labor

7. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 7 Why Wireless? (cont.) The whole wireless initiative is launching a new battle against time –You become accessible even while moving The focus is on anywhere The US is behind Japan and Finland –Gives us existing models to study

8. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 8 Key Benefits M-commerce offers several benefits: Convenience Flexibility Efficiency Anytime, anywhere access

9. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 9 Key Limitations Wireless limitations address: –Distance –Speed –Crawling pornography –Security and security factors Tracking users is the number one privacy concern Cell phones and wireless computers are traceable by triangulation

10. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 10 Critical Success Factors In m-commerce, four critical success factors need to be monitored: –Mobility Enhances mobility –Personalization –Global standardization Ubiquitous useability Big problem with Cell Phones –Customer profiling

11. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 11 How Wireless Technology Is Employed ? Wireless LAN Bluetooth Satellite Technology 2G Digital Cellular Technology Palm Pilot Cellular Phones

12. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 12 Wireless LAN The most common standard for wireless networking is Wireless Local Area Networks, or WLAN WLAN design is flexible and is becoming cheaper to deploy, but it travels only 150 feet

13. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 13 Typical 802.11 Wireless LAN Operation with Access Points Switch Client PC Server Large Wired LAN Access Point A Access Point B UTPRadio Link Handoff If mobile computer moves to another access point, it switches service to that access point Notebook CSMA/CA+ACK UTP

14. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 14 Typical 802.11 Wireless LAN Operation with Access Points Wireless Notebook NIC Access Point Industry Standard Coffee Cup To Ethernet Switch Antenna (Fan) PC Card Connector

15. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 15 Typical 802.11 Wireless LAN Operation with Access Points D-Link Wireless Access Point

16. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 16 Linksys Switch With Built-In Wireless Access Point Typical 802.11 Wireless LAN Operation with Access Points

17. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 17 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 Mobile Station Access Point Ethernet Switch Server 802.11 Frame 802.3 Frame

18. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 18 802.11 Wireless LAN Speeds 802.11 2 Mbps (rare) 2.4 GHz band (limited in bandwidth) 802.11b11 Mbps, 2.4 GHz 3 channels/access point 802.11a54 Mbps, 5 GHz (> bandwidth than 2.4 GHz) 11 channels/access point 802.11g54 Mbps, 2.4 GHz limited bandwidth

19. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 19 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 Module C

20. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 20 802.11 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. Site with 802.11 WLAN Outside Attacker Doonesbury July 21, 2002

21. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 21 Factors to Consider when choosing WLANS Range and coverage Throughput Security and integrity Cost and scalability User costs Standardization of WLANs

22. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 22 Bluetooth Bluetooth is a universal, low-cost, wireless connection standard. Intended for linking devices in a Personal Area Network (PAN) Key layers of Bluetooth are the –radio layer Physical layer (2.4 Ghz) –baseband layer Coverts data to signals –link manager protocol Security, authentication, and encryption Hacking of Bluetooth is called War NibblingWar Nibbling

23. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 23 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

24. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 24 Personal Area Networks (PANs) There May be Multiple PANs in an Area –May overlap –Also called piconets

25. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 25 Figure 5.11: Bluetooth Operation File Synchronization Client PC Slave Notebook Master Printer Slave Printing Cellphone Telephone Piconet 1

26. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 26 Figure 5.11: Bluetooth Operation Client PC Notebook Printer Slave Printing Call Through Company Phone System Cellphone Master Telephone Slave Piconet 2

27. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 27 Figure 5.11: Bluetooth Operation File Synchronization Client PC Slave Notebook Master Printer Slave Printing Call Through Company Phone System Cellphone Master Telephone Slave Piconet 1 Piconet 2

28. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 28 Figure 5.10: 802.11 versus Bluetooth LANs Focus Speed 802.11Bluetooth Large WLANsPersonal Area Network 11 Mbps to 54 Mbps In both directions 722 kbps with back channel of 56 kbps. May increase. Distance 100 meters for 802.11b (but shorter in reality) Shorter of 802.11a Number of Devices Limited in practice only by bandwidth and traffic Only 10 piconets, each with 8 devices maximum 10 meters (may increase)

29. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 29 Figure 5.10: 802.11 versus Bluetooth LANs Scalability Cost Battery Drain 802.11Bluetooth Good through having multiple access points Poor (but may get access points) Probably higherProbably Lower HigherLower DiscoveryNoYes Discovery allows devices to figure out how to work together automatically

30. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 30 Most of today’s “long-haul” bulk data transmission is made possible via satellites circling the Earth A repeater in a satellite extends the distance of a physical link

31. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 31 GEO Satellite System 2. Point-to-Point Uplink 3. Broadcast Downlink 4. Footprint 5. Earth Station A Earth Station B 1. Geosynchronous Satellite Satellite appears stationary in sky (35,785 km or 22,236 mi) Far, so earth station needs dish antenna

32. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 32 LEO and MEO Satellite Systems 3. Small Omnidirectional Transceiver 1. Currently Responsible LEO or MEO 2. Next Responsible LEO or MEO 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

33. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 33 PDA’s It is a PDA that is small enough to fit in a shirt pocket, was easy to use, and can store a lot of information The two types of PDAs are handheld computers and palm-sized computers. The major differences between the two are size and display

34. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 34 Example PDA’s

35. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 35 Cellular Phones Wireless communications work around specific cells or geographic areas It employs a tower and antennas, and provides a link to the distant cellular switch called a Mobile Telecommunications Switching Office (MTSO)

36. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 36 Cellular Telephony B E H D I G L K F C M A J N P Handoff O PSTN Mobile Telephone Switching Office 1. Automatic Handoff Between Cellsites O to P as Phone Travels Between Cells

37. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 37 2G Digital Cellular Technology in use Trucking and Delivery industry –2G digital cellular technology expedites vehicles in motion –Personal Digital Assistant (PDA): handheld device that scans information and transmits it to a terminal in a vehicle via wireless digital cellular technology UPS uses Wi-Fi, Bluetooth and Cellular Technology to expedite package delivery and tracking

38. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 38 Generations of Cellular Service GenerationFirst2nd2.5G3G Technology AnalogDigital Data Transfer Rate Data Transfer Is Difficult 10 kbps* 20 kbps to 144 kbps to 2 Mbps Channels ~800 ~800 + 2,500 ~800 + 2,500 ? Cells/ Channel Reuse Large/ Medium Small/ High Based on 2G ? *Sufficient for Short Message Service (SMS) and wireless Web access using the Wireless Access Protocol (WAP) or i-mode

39. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 39 Wireless Application Protocol (WAP) An open, global, industry-wide mobile specification for wireless network architecture; application environment and a set of communication protocols Brings the WWW to mobile devices –Cell phone –PDA’s –HTML  WML  HTML

40. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 40 How WAP works?

41. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 41 WAP Benefits Most WAP benefits are reflected in wireless applications, which reduce the reaction time of mobile professionals Because of greater mobility and instant access to critical information, productivity can be increased dramatically from anywhere at any time

42. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 42 WAP Limitations Low-power Limited Central processing units Small screens with questionable clarity Limited device memory Small keypads and no mouse –26 letters with 12 button on cell phone Questionable connections for reliability High latency before making the connections.

43. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 43 WLAN Implications for Management Implementing wireless infrastructure requires careful steps, which include: –Evaluating corporate and wireless needs –Sending out an RFP, requesting a demo of the proposed wireless system –Installing and testing the system –Training employees, and ensuring ongoing maintenance

44. Awad –Electronic Commerce 2/e © 2004 Pearson Prentice Hall 44 mCommerce Implications Location based marketing! –Get promotions based on where you are –Requires “Push” technology Location based information –Get information based on where you are –“Pull’ technology Mobile devices as payment systems ???