Chapter 8 Mobile Commerce

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

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

Exhibit 8.1 NextBus Operational Model

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

Exhibit 8.2 Classes of M-Commerce Applications

M-Commerce Terminology Generations 1G: 1979-1992 wireless technology 2G: current wireless technology; mainly accommodates text 2.5G: interim technology accommodates graphics 3G: 3rd generation technology (2001-2005) supports rich media (video clips) 4G: will provide faster multimedia display (2006-2010)

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

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

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

Exhibit 8.3 Characteristics of M-Commerce

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

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

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

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

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

Exhibit 8.5 Delta Airlines Wireless System

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