1. Chapter 9 Mobile Computing and Commerce and Pervasive Computing
Jason C.H. Chen, Ph.D.
Professor of MIS
Graduate School of Business
Gonzaga University
Spokane, WA USA

2. Learning Objectives
Describe the mobile computing environment that supports m-commerce (devices, software, services).
Describe the four major types of wireless telecommunications networks.
Define mobile commerce and understand its relationship to e-commerce.
Discuss the value-added attributes, benefits, and fundamental drivers of m-commerce.
Discuss m-commerce applications in finance, shopping, advertising, and provision of content.
Describe the application of m-commerce within organizations.

3. Learning Objectives
Understand B2B and supply chain management applications of m-commerce.
Describe consumer and personal applications of m-commerce.
Understand the technologies and potential application of location-based m-commerce.
Describe the major inhibitors and barriers of m-commerce.
Discuss the key characteristics and current uses of pervasive computing.

4. 9.1 Mobile Computing: Content, Infrastructure, and Services
New Computing Environment: Mobile Computing
Mobile devices
personal digital assistant (PDA)
A handheld computer principally used for personal information management
smartphone
Internet-enabled cell phone that can support mobile applications
Blackberry
A handheld device principally used for

5. Mobile Computing: Content, Infrastructure, and Services

6. Mobile Computing: Content, Infrastructure, and Services
Conversion of devices
These handheld devices blend blogging, Instant Messages, SMS, and other forms of social networking in which Web browsing is easy, especially with a full keyboard
wireless mobile computing (mobile computing)
Computing that connects a mobile device to a network or another computing device, anytime, anywhere

7. Mobile Computing: Content, Infrastructure, and Services
Enabling Technologies for Mobile Computing
Hardware and software infrastructures that support the wireless connection include
Network access points
Mobile communications server switches
Cellular transmitters and receivers

8. Mobile Computing: Content, Infrastructure, and Services
Mobile Computing Software
Mobile operating system
Mobile application user interface
microbrowser
Wireless Web browser designed to operate with small screens and limited bandwidth and memory requirements
Wireless Application Protocol (WAP)
A suite of network protocols designed to enable different kinds of wireless devices to access WAP readable files on an Internet-connected Web server

9. Mobile Computing: Content, Infrastructure, and Services

10. Mobile Computing: Content, Infrastructure, and Services
Markup languages
Wireless Markup Language (WML)
A scripting language used to create content in the WAP environment; based on XML, minus unnecessary content to increase speed
Compact Hypertext Markup Language (cHTML)
A scripting language used to create content in
i-mode

11. Mobile Computing: Content, Infrastructure, and Services
Extensible Hypertext Markup Language (xHTML)
A general scripting language; compatible with HTML; a standard set by W3 Consortium
voice XML (VXML)
An extension of XML designed to accommodate voice

12. Mobile Computing: Content, Infrastructure, and Services
Supporting devices
synchronization
The exchange of updated information with other computing devices
Docking stations
Attachable keyboards
Batteries
Media players

13. Mobile Computing: Content, Infrastructure, and Services
Mobile Computing Services
Short Message Service (SMS)
A service that supports the sending and receiving of short text messages on mobile phones
Enhanced Messaging Service (EMS)
An extension of SMS that can send simple animation, tiny pictures, sounds, and formatted text

14. Mobile Computing: Content, Infrastructure, and Services
Multimedia Messaging Service (MMS)
The emerging generation of wireless messaging; MMS is able to deliver rich media
micropayments
Electronic payments for small-purchase amounts (generally less than $10)

15. Mobile Computing: Content, Infrastructure, and Services
Location-based services
global positioning system (GPS)
A worldwide satellite-based tracking system that enables users to determine their position anywhere on the earth
Voice-support services
interactive voice response (IVR)
A voice system that enables users to request and receive information and to enter and change data through a telephone to a computerized system
voice portal
A Web site with an audio interface that can be accessed through a telephone call

16. 9.2 Wireless Telecommunications Networks
personal area network (PAN)
A wireless telecommunications network for device-to-device connections within a very short range
Bluetooth
A set of telecommunications standards that enables wireless devices to communicate with each other over short distances

17. Wireless Telecommunications Networks
Wireless Local Area Networks and Wi-fi
wireless local area network (WLAN)
A telecommunications network that enables users to make short-range wireless connections to the Internet or another network
Wi-Fi (wireless fidelity)
The common name used to describe the IEEE standard used on most WLANs

18. Wireless Telecommunications Networks
802.11b
The most popular Wi-Fi standard; it is inexpensive and offers sufficient speed for most devices; however, interference can be a problem
802.11a
This Wi-Fi standard is faster than b but has a smaller range
802.11g
This fast but expensive Wi-Fi standard is mostly used in businesses

19. Wireless Telecommunications Networks
wireless access point
An antenna that connects a mobile device to a wired LAN
hotspot
An area or point where a wireless device can make a connection to a wireless local area network (using Wi-Fi)

20. Wireless Telecommunications Networks

21. Wireless Telecommunications Networks
Municipal Wi-fi Networks
WiMax
A wireless standard (IEEE ) for making broadband network connections over a medium size area such as a city
wireless metropolitan area network (WMAN)
A telecommunications network that enables users to make medium-range wireless connections to the Internet or another network

22. Wireless Telecommunications Networks

23. Wireless Telecommunications Networks
WIRELESS WIDE AREA NETWORKS
wireless wide area network (WWAN)
A telecommunications network that offers wireless coverage over a large geographical area, typically over a cellular phone network
Physical topology of a WWAN
subscriber identification module (SIM) card
An extractable storage card used for identification, customer location information, transaction processing, secure communications, etc.

24. Wireless Telecommunications Networks
WWAN communication bandwidths 1G
The first generation of wireless technology, which was analog based 2G
The second generation of digital wireless technology; accommodates voice and text
2.5G
An interim wireless technology that can accommodate voice, text, and limited graphics

25. Wireless Telecommunications Networks3G
The third generation of digital wireless technology; supports rich media such as video
3.5G
This generation was inserted into the ranks of cell phone generations; it refers to the packet-switched technologies used to achieve higher transmission speeds 4G
The expected next generation of wireless technology that will provide faster display of multimedia

26. Wireless Telecommunications Networks
WWAN communication protocols
Frequency Division Multiple Access (FDMA)
Time Division Multiple Access (TDMA)
Code Division Multiple Access (CDMA)
WWAN network systems
Global System for Mobile Communications (GSM)
An open, nonproprietary standard for mobile voice and data communications

27. 9.3 Mobile Commerce: Attributes, Benefits, and Drivers
Mobile commerce (m-commerce, m-business):
A natural extension of e-business
Mobile devices create an opportunity to deliver new services to existing customers
Any e-commerce done in a wireless environment, especially via the Internet

28. Mobile Commerce: Attributes and Benefits
What are the two major barriers?
Geography
Time
Specific attributes of m-commerce
: portability
: anytime, anywhere
Benefits of value-added attributes
Ubiquity: real-time information
Convenience: new technologies
Instant connectivity: easily and quickly
Personalization: for individual consumers
Localization of products and services
Mobility
Broad reach
Two major barriers: Geography and time
EC applications can be done in m-C, e.g., e-shopping, e-stock trading, and e-gambling
Auctioning is just beginning to take place on cell phones, and wireless collaborative commerce in B2B is emerging.
Localization of products and services (location-based e-C; l-commerce)
-- knowing where a user is physically located at any particular moment is key to offering relevant services.
(Location-based e-C; l-commerce)

29. Exhibit The Characteristics of M-Commerce
Value-added attributes
Product and service localization
Mobility
M-commerce
Product personalization
Ubiquity enhancement
Instant connectivity
Reachability
Convenience

30. Mobile Commerce: Attributes, Benefits, and Drivers

31. Mobile Commerce: Attributes, Benefits, and Drivers
Drivers of M-Commerce
Widespread availability of more powerful devices
The handset culture
The service economy
Vendor’s push
The mobile workforce
Increased mobility
Improved price/performance
Improvement of bandwidth

32. 9.4 Mobile Financial Applications
Mobile Banking and Financial Services
Customers can use their mobile handsets to access account balances, pay bills, and transfer funds using SMS
Wireless Electronic Payment Systems
Wireless payment systems transform mobile phones into secure, self-contained purchasing support tools capable of instantly authorizing payments over the cellular network
m-wallet (mobile wallet)
Technologies that enable cardholders to make purchases with a single click from their wireless device

33. Mobile Financial Applications

34. Mobile Financial Applications
Wireless Bill Payments
A number of companies are now providing their customers with the option of paying their bills directly from a cell phone
Closing the digital divide
Using WWANs, mobile devices, and even regular cell phones, are closing the digital divide in developing countries such as China, India, and the Philippines

35. Mobile Financial Applications: Bill Payments

36. 9.5 Mobile Shopping, Advertising, and Content
Wireless Shopping
An increasing number of online vendors allow customers to shop from wireless devices, especially cell phones and PDAs
Mobile and Targeted Advertising
Knowing the real-time location of mobile users and their preferences or surfing habits, marketers can send user-specific advertising messages to wireless devices

37. Mobile Shopping, Advertising, and Content
mobile portal
A customer interaction channel that aggregates content and services for mobile users

38. BREAK
Application Case 9.1: MarketSource Mobilizes Its Workforce (p.439)

39. 9.6 Mobile Enterprise and Supply Chain
Support of Mobile Employees
Mobile office
sales force mobilization
The process of equipping sales force employees with wireless Internet-enabled computing devices
Worker support in retailing
Support in hospitals
Support in operations

40. Mobile Enterprise and Supply Chain
Tracking employees
Job dispatch
Maintenance and repair at remote sites
wearable devices
Mobile wireless computing devices, attached to various parts of employees, for employees who work on buildings and other climbable workplaces

41. Mobile Enterprise and Supply Chain
Supporting Other Types of Work
Customer and Partner Support
Non–Internet Enterprise Applications
B2B M-Commerce and Supply Chain Management

42. 9.7 Mobile Personal and Consumer Service Applications
Mobile Entertainment
Mobile games and gambling
Hands-free driving
Wireless Telemedicine
Other Mobile Computing Services for Consumers
Non–Internet Mobile Applications for Consumers

43. 9.8 Location-Based Mobile Commerce
Location-based mobile commerce (L-commerce): M-commerce transactions targeted to individuals in specific locations, at specific times
L-commerce offers:
Safety: emergency service
Convenience: what or who is nearby
Productivity: optimize travel and time
L-commerce offers:
Safety: emergency service with a mobile device and have the service pinpoint their exact location
Convenience: what or who is nearby without have to consult a directory, pay phone, or map
Productivity: optimize travel and time by determining points or people or interest that a re within close proximity

44. Location-Based Commerce (cont.)
L-commerce basic services revolve around five key areas:
Location
determining the basic position of a person or a thing
Navigation
Plotting a route from one location to another
Tracking
Monitoring the movement of a person or a thing
Mapping
Creating maps of specific geographical locations
Timing
Determining the precise time at a specific location

45. Location-Based Mobile Commerce
The Technology For L-Commerce
Global positioning system
geographical information system (GIS)
A computer system capable of integrating, storing, editing, analyzing, sharing, and displaying geographically-referenced (spatial) information
GPS/GIS applications

46. Location-Based Mobile Commerce
Location-Based Advertising
Emergency Response Cell Phone Calls
wireless 911 (e-911)
In the United States, emergency response system that processes calls from cellular phones
automatic crash notification (ACN)
Device that automatically sends the police the location of a vehicle that has been involved in a crash

47. Location-Based Mobile Commerce
telematics
The integration of computers and wireless communications to improve information flow using the principles of telemetry
Other Applications of Location-Based Systems

48. Location-Based Mobile Commerce
Barriers to Location-Based
M-Commerce
Accuracy of devices
The cost-benefit justification
Limited network bandwidth
Invasion of privacy

49. Location-Based Mobile Commerce (cont.)
Global positioning system (GPS): A wireless system that uses satellites to enable users to determine their position anywhere on the earth
GPS handsets can be:
stand-alone units
plugged into a mobile device or completely embedded in one

50. Location-Based Mobile Commerce (cont.)
Barriers to L-commerce
Accuracy
The cost-benefit justification
The bandwidth of GSM networks
Invasion of privacy
Barriers to L-commerce
Accuracy
--- some of the location technologies are not as accurate as people expect them to be. GPS (up to 15 meters)
2. The cost-benefit justification
--benefits of L-C do not justify the price of the H/W or the inconvenience and time required to utilized the service
3. The bandwidth of GSM networks
-- GSM bandwidth is currently limited
4. Invasion of privacy
-- when “always-on” cell phone are reality, many people will be hesitant to have their whereabouts and movements tracked throughout the day, even if they have nothing to hide.
-- this issue will be heightened when our cars, homes, appliances, and all sorts of other consumer goods are connected to the Internet.

51. 9.9 Security and Other Implementation Issues in M-Commerce
M-Commerce Security Issues
Malicious codes
Transaction security
Wireless communication
Physical security of mobile devices
Ease of use and poor security
Security measures

52. Security and Other Implementation Issues in M-Commerce
Technological Barriers to
M-Commerce
Many Web sites are not designed for viewing by mobile devices
Current devices have limited usability, particularly with respect to pocketsize screens or data input devices
Quick and easy navigation of sites is necessary but not always available in the mobile environment

53. Security and Other Implementation Issues in M-Commerce
Ethical, Legal, and Health Issues in M-Commerce
Barriers for Enterprise Mobile Computing
Project Failures in M-Commerce

54. 9.10 Pervasive Computing
Pervasive computing: Invisible, everywhere computing that is embedded in the objects around us
Also know as:
ubiquitous computing
embedded computing
augmented computing
A world in which virtually every object has processing power with wireless or wired connections to a global network is the world of pervasive computing.
Virtual reality vs. pervasive computing
In Virtual reality, the user is immersed in a computer-generated environment.
In contrast, pervasive computing is invisible, “everywhere computing” that is embedded in the objects around us – the floor, the lights, our cars, the washing machine, our cell phones, our clothes etc.
The user does not have to think about how to use the processing power in the object; rather, the processing power automatically helps the user perform a task.

55. Pervasive Computing Principles of pervasive computing Decentralization
Diversification
Connectivity
Simplicity

56. Pervasive Computing (cont.)
Embedded computers do not intrude on our consciousness
Radio frequency identification (RFID): Generic term for technologies that use radio waves to automatically identify individual items
Contextual Computing
The enhancement of a user’s interactions by understanding the user, the context, and the applications and information required
Embedded devices will attach to or communicate with the Internet in three (3) ways:
1) Wired into Internet – thru broadband or dial-up, 2) connect thru mobile or wireless networks like cell phones, 3) RFID tags, will link in thru small antennas that can send and receive messages in a wireless environment (Wi-Fi or Bluetooth)
The user does not have to think about how to use the processing power in the object; rather, the processing power automatically helps the user perform a task.

57. Pervasive Computing

58. Pervasive Computing RFID Applications Electronic Product Code (EPC)
Track moving vehicles
Track people
Track individual items
Protect secure areas
Record transactions
Electronic Product Code (EPC)
An RFID code that identifies the manufacturer, producer, version, and serial number of individual consumer products

59. Pervasive Computing: Applications
Smart homes—home automation systems support:
Lighting; Energy management
Water control; Home theater
Home security and communications
Home entertainment
Smart appliances
Internet-ready appliance that can be controlled by a small handheld device or desktop computer via a home intranet or the public Internet
Home Alliance (internethomealliance.com)
Smart homes
-- many devices and appliances within the home can “talk” to each other via the Internet or a home intranet using cell phone, pager or PDA etc.
-- current systems are not integrated, in contrast, smart homes of the future will not only expand automation throughout the house, but will provide a single network of microprocessors and small computers that can be easily and conveniently controlled.

60. Pervasive Computing: Applications (cont.)
Smart cars—increased use of automobile microprocessors
sophisticated engine controls to meet emissions and fuel-economy standards
advanced diagnostics; simplification of the manufacture and design of cars
reduction of the amount of wiring in cars
new safety features
new comfort and convenience features
Sensor network
A series of interconnected sensors that monitor the environment in which they are placed
The average automobile on the road today has 20 or more microprocessors on board.
The microprocessors on a car are truly invisible. They are under the hood, behind the dash, in the door panels, and on the undercarriage.
They require little maintenance, continuing to operate thru extreme temperature, vibration, and humidity.

61. Pervasive Computing Barriers to Pervasive Computing
A number of technological, legal, and ethical issues still need to be fully explored and resolved if the promises of pervasive computing are to be realized

62. BREAK-2
Application Case 9.2: Wi-Fi Sensor Net Aids Wine Makers (p.460)

63. Managerial Issues What’s our timetable? Which applications first?
Is it real or just a buzzword?
Which system to use?
Is an all-in-one device a winner?
Which will win the wireless race: WiMax, Wi-Fi, or 3G?