1. Prentice Hall, 2003 1 ELC 200 Day 19

2. Prentice Hall, 2003 2 Agenda Questions from last Class? Quiz 2 rescored 5 A’s, 6 B’s, 3 C’s Assignment 5 Due April 17 Questions? Two more assignments left Operations & Finance EBiz plan and presentations Due may 8 @ 8AM More to come Two more Quizzes April 17 & May 4 Today's’ discussion is on Mobile Commerce

3. Prentice Hall, 2003 3 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

4. Prentice Hall, 2003 4 Exhibit 8.7 Mobile Shopping Supported by CRM

5. Prentice Hall, 2003 5 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

6. Prentice Hall, 2003 6 Targeted Advertisement (cont.) Get paid to listen to advertisements—listen to a 10–second 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

7. Prentice Hall, 2003 7 Targeted Advertisement (cont.) Advertisement strategies and guidelines— Wireless 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

8. Prentice Hall, 2003 8 Wireless Advertising in Action GPS helps target users from their location Vindigo.com—places to go and things to do in your area GeePS.com—location-based start-up sent coupons to customers cell phones Go2Online.com—locations-based Web domain helps mobile travelers find anything (e.g., the nearest oil change) http://www.go2online.com

9. Prentice Hall, 2003 9 Supporting Customers & Business Partners (Consumer Services) Using voice portals in marketing and customer service Use vendor’s 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

10. Prentice Hall, 2003 10 Supporting Customers & Business Partners (Consumer Services) [cont.] Using mobile portals Mobile portal—a 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

11. Prentice Hall, 2003 11 Supporting Mobile Employees Smartphones and hand-held devices Wearable wireless devices—m obile wireless computing devices for employees who work on buildings and other difficult-to-climb places Cameras Keyboard  Screen  Touch-panel display http://www.media.mit.edu/wearables/index.html

12. Prentice Hall, 2003 12 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

13. Prentice Hall, 2003 13 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

14. Prentice Hall, 2003 14 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)

15. Prentice Hall, 2003 15 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

16. Prentice Hall, 2003 16 http://www.riverrun.com/solutions/

17. Prentice Hall, 2003 17 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

18. Prentice Hall, 2003 18 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

19. Prentice Hall, 2003 19 Internet-Based Intrabusiness Applications Applications implemented inside enterprises, some examples: Sonera (Finland): electronic funds transfer (EFT) of paychecks Chicago’s United Center: inventory can be taken in a matter of hours FedEx and UPS: access Web, e-mail, databases, intranets, etc.

20. Prentice Hall, 2003 20 Internet-Based Intrabusiness 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

21. Prentice Hall, 2003 21 Exhibit 8.9 Automated Wireless Workflow Applications

22. Prentice Hall, 2003 22 Exhibit 8.10 Intelligent Office Connected by Wireless LAN

23. Prentice Hall, 2003 23 Mobile B2B and Supply Chain Applications Both sell-side and buy-side of ERP Unified messaging makes user’s 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

24. Prentice Hall, 2003 24 Mobile Consumer and Personal Service Applications Mobile gaming devices PDAs (Handspring’s Visor) with Flash RAM card Nintendo’s Game Boy Advance Sony’s PocketStation Sega’s portable device connected to Dreamcast Mobile gambling Germany’s online lottery company fluxx.com available via mobile terminals Hong Kong, betting on horse races via cell phones is popular

25. Prentice Hall, 2003 25 Mobile Consumer and Personal Service Applications (cont.) Mobile entertainment Music Video—real-time streaming video (packetvideo.com) Hotels—hotel guests equipped with Bluetooth- enabled mobile devices are instantly recognized Intelligent homes and appliances

26. Prentice Hall, 2003 26 Exhibit 8.13 Intelligent Home Connected by Wireless LAN

27. Prentice Hall, 2003 27 Mobile Consumer and Personal Service Applications (cont.) Wireless telemedicine—use 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 about tourist attractions (hours, prices) Emergency services

28. Prentice Hall, 2003 28 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

29. Prentice Hall, 2003 29 Highway 91 Project (cont.) Six express toll lanes along a 10–mile 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

30. Prentice Hall, 2003 30 Highway 91 Project (cont.) The system works: 1.Only prepaid subscribers can drive on the road 2.Large sign over the toll way tells drivers current fee for cruising the express lanes 3.Sensors in the pavement let the toll way computer know that a car has entered; the car does not need to slow or stop 4.AVI makes radio contact with a transceiver installed above the lane

31. Prentice Hall, 2003 31 Highway 91 Project (cont.) The transceiver relays the car’s identity to the control center, where a computer calculates the fee for that day’s trip Surveillance cameras record the license numbers of cars without AVIs—can 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 driver’s account and the fare is automatically deducted from the driver’s prepaid account

32. Prentice Hall, 2003 32 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?”

33. Prentice Hall, 2003 33 Location-Based Commerce Location-based commerce (L-commerce)—e - commerce applications provided to customers based on a user’s specific location Location-based technologies Global positioning systems—a 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 handsets—stand-alone units for tracking applications

34. Prentice Hall, 2003 34 Exhibit 8.14 Location-Based Services Involving Maps

35. Prentice Hall, 2003 35 Exhibit 8.15 GPS System

36. Prentice Hall, 2003 36 L-Commerce Applications (cont.) E-911— Calls 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 http://www.theautochannel.com/news/2002/08/05/145060.ht ml

37. Prentice Hall, 2003 37 Telematics and Telemetry Applications Telematics—integration of computers and wireless communications to improve information flow using the principles of telemetry GM OnStar system—cellular phone and PDA are integrated to provide personal information management, mobile Internet services, entertainment on the vehicle vehicle dashboard http://www.onstar.com/ Sophisticated text-to-speech and voice recognition capabilities minimize driver distraction Hands-off cell phone

38. Prentice Hall, 2003 38 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 Manufacturer’s 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

39. Prentice Hall, 2003 39 Barriers to L-Commerce The accuracy of some of the location technologies The cost-benefit justification M-spam Especially when the receiver pays The bandwidth of GSM networks

40. Prentice Hall, 2003 40 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

41. Prentice Hall, 2003 41 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

42. Prentice Hall, 2003 42 Technical Limitations (cont.) WAP limitations Speed—in 2002 connections to WAP sites are still too slow Cost—fees for mobile phone users are still too high Accessibility—as of spring 2002, fewer than 50,000 WAP-accessible sites worldwide (must be written in WML)

43. Prentice Hall, 2003 43 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 filed—public is advised to adopt a precautionary approach in using mobile phones (earphone device) http://www.fda.gov/cellphones/qa.html http://www.fcc.gov/cgb/consumerfacts/mobileph one.html

44. Prentice Hall, 2003 44 Implementing M-Commerce Basic (fixed) fees Point-of-traffic fees Transaction fees Content and service charges Payment clearing Hosting fees Certification (PKI) fees Revenue models

45. Prentice Hall, 2003 45 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

46. Prentice Hall, 2003 46 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