1. Chapter 8 Mobile Commerce

2. NextBus: A Superb Customer Service
The Problem
Buses in San Francisco have difficulty keeping to 20 minute schedule during rush hours
Posted schedule becomes meaningless
The Solution
Bus riders carrying Internet-enabled cell phone or PDA helps:
Find estimated arrival time at each stop, digitally in real time
Soon location-based advertisements will pop up—you have time to get a cup of coffee before the bus arrives—Starbuck’s is 200 feet to the right

3. NextBus (cont.) The Results
Passengers in San Francisco are happy with the system
Worries about missing the bus are diminished
May discover they have time for a cup of coffee before the bus arrives
Bus company can:
Schedule better
Arrange for extra buses when needed
Improve operations

4. Exhibit 8.1 NextBus Operational Model

5. Mobile Commerce: Overview
Mobile commerce (m-commerce,
m-business)—any e-commerce done in a wireless environment, especially via the Internet
Can be done via the Internet, private communication lines, smart cards, etc.
Creates opportunity to deliver new services to existing customers and to attract new ones

6. Exhibit 8.2 Classes of M-Commerce Applications

7. M-Commerce Terminology
Generations
1G: wireless technology
2G: current wireless technology; mainly accommodates text
2.5G: interim technology accommodates graphics
3G: 3rd generation technology ( ) supports rich media (video clips)
4G: will provide faster multimedia display ( )

8. Terminology and Standards
GPS: Satellite-based Global Positioning System
PDA: Personal Digital Assistant—handheld wireless computer
SMS: Short Message Service
EMS: Enhanced Messaging Service
MMS: Multimedia Messaging Service
WAP: Wireless Application Protocol
Smartphones—Internet-enabled cell phones with attached applications

9. Specific Attributes of M-Commerce
Attributes of m-commerce and its economic advantages
Mobility—users carry cell phones or other mobile devices
Broad reach—people can be reached at any time

10. Attributes of M-Commerce (cont.)
Value-added attributes of m-commerce
Ubiquity—easier information access in real-time
Convenience—devices that store data and have Internet, intranet, extranet connections
Instant connectivity—easy and quick connection to Internet, intranets, other mobile devices, databases
Personalization—preparation of information for individual consumers
Localization of products and services—knowing where the user is located at any given time and match service to them

11. Exhibit 8.3 Characteristics of M-Commerce

12. The Drivers Widespread availability of devices Declining prices
No need for a PC
Handset culture
Vendors’ push
Declining prices
Improvement of bandwidth
Explosion of EC in general

13. Mobile Computing Infrastructure
Hardware
Screenphones—a telephone equipped with color screen, keyboard, , and Internet capabilities
handhelds
Wirelined—connected by wires to a network
Cellular (mobile) phones
Attachable keyboard
PDAs
Interactive pagers
Other devices
Notebooks
Handhelds
Smartpads

14. Mobile Computing Infrastructure (cont.)
Unseen infrastructure requirements
Suitably configured wireline or wireless WAN modem
Web server with wireless support
Application or database server
Large enterprise application server
GPS locator used to determine the location of mobile computing device carrier

15. Mobile Computing Infrastructure (cont.)
Software
Microbrowser
Mobile client operating system (OS)
Bluetooth—a chip technology and WPAN standard that enables voice and data communications between wireless devices over short-range radio frequency (RF)
Mobile application user interface
Back-end legacy application software
Application middleware
Wireless middleware

16. Mobile Computing Infrastructure (cont.)
Networks and access
Wireless transmission media
Microwave
Satellites
Radio
Infrared
Cellular radio technology
Wireless systems

17. Exhibit 8.5 Delta Airlines Wireless System

18. Wireless Standards and Security
M-commerce supported by
Standards
Security
Voice systems
M-commerce