Copyright 2010 John Wiley & Sons, Inc. Turban and Volonino Chapter 7 Mobile Commerce Information Technology for Management Improving Performance in the Digital Economy 7th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. Chapter Outline 7.1 Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology 7.2 Mobile Applications in Financial Services 7.3 Mobile Shopping, Advertising, and Content-Providing 7.4 Mobile Enterprise and Interbusiness Applications 7.5 Mobile Consumer Services and Entertainment Copyright 2010 John Wiley & Sons, Inc.

Chapter Outline (cont’d) 7.6 Location-Based Services and Commerce 7.7 Pervasive Computing, Context Awareness, and RFID 7.8 Managerial Issues Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. Learning Objectives Discuss the characteristics, attributes, and drivers of mobile computing and m-commerce. Understand the technologies that support mobile computing. Discuss m-commerce applications in financial and other services, advertising, marketing, and providing of content. Describe the applications of m-commerce within organizations (mobile enterprise, intrabusiness). Understand B2B and supply chain applications (interorganizational) of m-commerce. Copyright 2010 John Wiley & Sons, Inc.

Learning Objectives cont’d 6. Describe consumer and personal applications of m-commerce. Describe location-based commerce (l-commerce). Discuss the key characteristics and current uses of pervasive computing. Describe the major inhibitors and barriers of mobile computing and m-commerce. Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. Problem – Competition is fierce; profit margins low. Bloom needs appropriate technology to compete with Wal-Mart. Solution – Wireless technology – mobile checkstands, scanners, handhelds, Wi-Fi, RFID. Results – Better customer service & speedier checkout; higher employee productivity; fewer employees overall. Click image for homepage. Hot link to article about Bloom store concept from Food Lion. Food Lion Opens Lake Norman Bloom Store Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. Wi-Fi – What is it? Food Lion Checking Out With Wi-Fi How WiFi Works Wi-Fi Discuss how Wi-Fi technology has changed our quality of lifestyle. We can go anywhere at any time & still have access to work, family, etc., without necessarily being location-bound. Wi-Fi® Technology Enabling Economic and Social Development in Rural and Urban India Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. 7.1 Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. Mobile Computing A Brief History of Mobile Computing First laptop invented by Alan Kay in 1968 Interesting articles for the history of development. First PDA introduced in 1983 Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. Clarify any confusion associated with the terminology as appropriate. Copyright 2010 John Wiley & Sons, Inc.

Mobile Computing – Attributes The characteristics of M-commerce, mobility and broad reach break the barriers of geography and time. Creating unique value added attributes. Ubiquity refers to the attribute of being available at any location at any given time. A mobile terminal in the form of a smart phone or a PDA offers ubiquity. Convenience. It is very convenient for users to operate in the wireless environment. All they need is an Internet enabled mobile device such as a smartphone. Instant connectivity. Mobile devices enable users to connect easily and quickly to the Internet, intranets, other mobile devices and databases. Personalization. Personalization refers to customizing the information for individual consumers. Localization of products and services. Knowing the users physically location at any particular moment is key to offering relevant products and services.

Drivers of Mobile Computing & M-Commerce Widespread availability of mobile devices – 50% of world population will use mobile phones in 2008. No need for a pc – smart phone may soon become foremost tool connecting people to Internet. Handset culture – widespread use of cell phones. Declining prices, increased functionalities – declined by 50% in recent years while functionalities increase. Improvement of bandwidth – 3G & 3.5G Availability of Internet access in automobiles – numbers of availability continue to increase Discuss the impact of mobile computing upon business. What lies ahead for our future? Use of electronic wallets, & expansion of RFID technology will be major factors. Copyright 2010 John Wiley & Sons, Inc.

Mobile Commerce Typical Applications include: M-commerce and m-business is any e-commerce or e-business activities performed in a wireless environment. It is not merely a variation on existing Internet services; it is a natural extension of e-business creating new opportunities. Typical Applications include: Financial applications (B2C, B2B) Advertising (B2C) Inventory management (B2C, B2B) Field Service management Product locating and shopping Mobile office Mobile music / music-on-demand

Mobile Computing Revenue Model Access fees Subscription fees Pay-per-use Advertising Transactions fees Hosting …

The landscape of mobile computing and commerce Informational slide. Capabilities & attributes of mobile computing are supported by infrastructure. Mobile computing is an essential strategic part of the enterprise’s IT portfolio. (Source: Drawn by E. Turban.) Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. How Wi-Fi works Informational slide. This figure shows how Wi-Fi works. See examples which follow. Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. Wi-Fi Applications Students should be tasked to find more examples for discussion. What’s next? Hospital operating rooms so that caregivers can communicate quickly with someone who has an expertise at a great distance from the patient. Copyright 2010 John Wiley & Sons, Inc.

Barriers to Commercial Wi-Fi Growth Cost – it’s readily available; why pay for it? Security Discuss these 2 barriers to commercial Wi-Fi growth. Copyright 2010 John Wiley & Sons, Inc.

Mobile Computing Financial Services Mobile financial applications include: Banking: offer mobile access to financial and account information. Wireless payments: provides mobile phones with a secure purchasing tools capable of instantly authorizing payments Micropayments: electronic payments for small-purchase amounts (generally less than $10) Wireless wallets: Software (e-wallet) that stores an online shopper’s credit card numbers and other personal information. Bill payment services: Paying bills directly from a mobile device Brokerage services: stock trades and quotes Money transfers: from one account to another These services have the potential to turn a mobile device into a business tool, replacing banks, ATMs, and credit cards by allowing a user to conduct financial transactions any time and from anywhere

Mobile Banking & Stock Trading Services offered include: bill payments & money transfers; access administration & check book requests; balance inquiries & statements of account; interest & exchange rates; sale/purchase of stocks. Increasing % of banks offer mobile access – financial & account information. Wachovia “go mobile today” demo How will these services help increase customer loyalty? One stop shopping. There is a sense of security with all services at one place which may or may not be completely factual. Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. 7.3 Mobile Shopping, Advertising, and Content-Providing Copyright 2010 John Wiley & Sons, Inc.

Mobile Computing – Shopping Shopping from wireless devices enables customers to perform quick searches, compare prices, use a shopping cart, order, and view the status of their order using their mobile wireless devices. Some shopping applications include: Restaurant chains enabling consumers to place an order for pick up or delivery virtually any time, anywhere. eBay offers “anywhere wireless” services as does Amazon.com Purchasing movie tickets by wireless device

Mobile Computing – Advertising Knowing the current location of mobile users (using GPS) and their preferences or surfing habits, marketers can send user-specific advertising messages to wireless devices. This location-sensitive advertising, will informing a user about: sales at a specific shop or mall today’s specials at a restaurant loyalty programs and much more all when a potential buyer is within close proximity. Targeted advertising Getting paid to listen to advertising

Mobile Computing – Mobile Portals These are customer channels, optimized for mobility, that aggregates and provides content and services to mobile users. The services provided by mobile portals include: News Sports E-mail Entertainment Travel information Restaurants Event information Leisure-related services (e.g., games, TV and movie listings) Community services Stock trading.

Mobile Computing – Location-based Commerce Location-based commerce (l-commerce) refers to the delivery of advertisements, products and services. The l-commerce services revolve around five key areas: Location: determining the basic position of a person or a thing (e.g., car or boat). Navigation: plotting a route from one location to another. Tracking: monitoring the movement of a person or a thing (e.g., a package or vehicle). Mapping: creating maps of specific geographical locations. Timing: determining the precise time at a specific location.

Mobile Computing – L-Commerce Technologies Providing location-based services requires the following location-based and network technologies: Position Determining Equipment (PDE). This equipment identifies the location of the mobile device. (GPS) Location-based technology. This technology consists of groups of servers that combine the position information with geographic- and location-specific content to provide an l-commerce service. Geographic content. Geographic contents consists of streets, road maps, addresses, routes, landmarks, land usage, Zip codes, and the like. (GIS) Location-specific content. Location-specific content is used in conjunction with the geographic content to provide the location of particular services.

Mobile Computing – L-Commerce Applications Location-based advertising. The wireless device is detected, and similar to a pop-up ads on a PC, advertising is directed towards the PC. A dynamic billboard ad will be personalized specifically for the occupant of an approaching car. Ads on vehicles (taxicabs, trucks, buses) will change based on the vehicles location. Emergency cell phone calls Telematics and telemetry applications: integration of computers and wireless communications in order to improve information flow

Location-based services involving maps There is certainly a possible dark side to the location-based technologies when associated with children, for instance. (Source: Mapinfo.com, 2001.) Copyright 2010 John Wiley & Sons, Inc.

Purchasing movie tickets with WAP Solo Discuss ethical dilemmas of targeted advertising. There may be a product inappropriate for the one targeted. Include marketing to minors. Shopping addictions. Adult items. (Source: Sadeh, 2002, Fig. 1.5.) Copyright 2010 John Wiley & Sons, Inc.

Mobile Applications in Sports Nike iPod Nano It’s possible to track location of someone from a positive aspect such as security. Monitoring workout has great benefit for health potential. Copyright 2010 John Wiley & Sons, Inc.

A smart phone with GPS system in l-commerce What are some of the ethical dilemmas associated with installed locator devices? Security may be an issue. Copyright 2010 John Wiley & Sons, Inc.

Global Positioning Systems (GPS) For wikipedia & much more, click here! Artist's conception of GPS satellite in orbit Automotive navigation system in a taxicab According to Wikipedia (pictures are hot links): The Global Positioning System (GPS) is a global navigation satellite system (GNSS) developed by the United States Department of Defense and managed by the United States Air Force 50th Space Wing. It is the only fully functional GNSS in the world, can be used freely, and is often used by civilians for navigation purposes. It uses a constellation of between 24 and 32 Medium Earth Orbit satellites that transmit precise microwave signals, which allow GPS receivers to determine their current location, the time, and their velocity. Its official name is NAVSTAR GPS. Although NAVSTAR is not an acronym,[1] a few backronyms have been created for it.[2] Since it became fully operational in 1993, GPS has become a widely used aid to navigation worldwide, and a useful tool for map-making, land surveying, commerce, scientific uses, and hobbies such as geocaching. Also, the precise time reference is used in many applications including the scientific study of earthquakes. GPS is also a required key synchronization resource of cellular networks, such as the Qualcomm CDMA air interface used by many wireless carriers in a multitude of countries. Task students to find other examples. Civilian GPS receiver ("GPS navigation device") in a marine application GPS receivers are now integrated in many mobile phones. Copyright 2010 John Wiley & Sons, Inc.

L-Commerce Applications Barriers Accuracy of location-finding services Cost-benefit justification Bandwidth Privacy

Copyright 2010 John Wiley & Sons, Inc. 7.4 Mobile Enterprise and Interbusiness Applications Copyright 2010 John Wiley & Sons, Inc.

Mobile Enterprise Applications Supporting salespeople during customer visits Supporting field employees during repairs Supporting traveling of employees Supporting employees working within the organization Supporting employees driving trucks Not only does this improve employee productivity, it also provides for better, real-time customer service & customer loyalty through increased customer relationships. Copyright 2010 John Wiley & Sons, Inc.

Copyright 2010 John Wiley & Sons, Inc. 7.7 Pervasive Computing, Context Awareness, and RFID Copyright 2010 John Wiley & Sons, Inc.

Mobile Computing – Pervasive Computing A world in which virtually every object has processing power with wireless or wired connections to a global network. The user doesn’t have to think about how to use the processing power in the object; rather, the processing power automatically helps the user perform a task (Invisible Computing Everywhere). RFID (radio frequency identification) tag attached to items for sale. Active badges worn as ID cards by employees. Memory buttons are nickel-sized devices that store information relating to whatever it is attached to. Contextual computing, refers to the process of understanding the user’s interactions within a valid context, to better understand what the consumer needs, and what products or services they might possibly be interested in at this time. Context awareness refers to capturing a broad range of contextual attributes to better understand those needs.

Mobile Computing – Pervasive Computing (continued) Smart homes / offices / factories Smart cars Smart “Things” Barcodes. Auto Identification (Auto-ID) RFID: It is used in wireless tollbooth systems, such as E-Z Pass.

Copyright 2010 John Wiley & Sons, Inc. How RFID works Informational slide. Figure shows the RFID tag attached to a product. Reader collects information from the tag, wirelessly transporting it to the corporate network. Can indicate exact position of product at all times. (Source: C. Heinrich, RFID and Beyond, Indianapolis, Wiley Publishing, 2005, Figure 3.5, p. 65.) Copyright 2010 John Wiley & Sons, Inc.

Mobile Computing – Pervasive Computing (continued) Smart Schools. Exploring communication between students, teachers, and the environment to create a smart learning environment. Intelligent Elder- Care Smart Offices. Digital Cities. Embedded Computing

Copyright 2010 John Wiley & Sons, Inc. Managerial Issues Ethical & legal issues. Implementation issues. Failures in mobile computing & m-commerce. Mobile device management plans are too often non-existent. Copyright 2010 John Wiley & Sons, Inc.

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