BITSCMHHSM ZC471

Management Information
Systems
BITS Pilani
Pilani Campus

BITS Pilani
Pilani Campus

Lecture Session-7
24 08 14

Chapter 7
Mobile Commerce

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BITS Pilani, Pilani Campus

Learning Objectives
1. Characteristics, attributes, and drivers of
mobile computing and m-commerce.
2. Understand the technologies that support
mobile computing.
3. M-commerce applications in financial,
advertising, marketing, and providing of
content.
4. Describe the applications of m-commerce
within organizations (mobile enterprise,
intrabusiness).
5. Understand B2B and supply chain applications
(interorganizational) of m-commerce.
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Learning Objectives
6. Describe consumer and personal
applications of m-commerce.
7. Describe location-based commerce (Lcommerce).
8. Key characteristics and current uses of
pervasive computing
Objects with processing powers.

9. Describe the major barriers of mobile

computing and m-commerce.

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IT in Practice Snippets of
Information
Opening case: Food Lion excels with wireless
innovations
Bloom; Mobile Checkstand, Personal scanner, Cart-mounted Tablet
PCs, Tablet PCs for employees, Mobile manager, WiFi access;
Future?

Closer Look 7.1 Wireless advertising in action

Examples;
Vindigo.com, MyAvantGo.com, ; Permission marketing;

IT at work 7.1 Wearable devices for Bell Canada

workers Screen, camera, touch-panel display, keyboard, speech translator,
Closer Look 7.2 Mobile applications in sports related
applications; iPod Shoes, Levi, ESPN, FitSense Tech.,
IT at work 7.2 Avoiding gridlock: reducing traffic
congestion through use of IT; Sweden (SRA)
IT at work 7.3 NextBus: a superb customer service; US
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IT in Practice Snippets of
Information
IT at work 7.4 Follow the money: using RFID for
reducing waste in Pharmacies
IT at work 7.5 Examples of RFID use
Circuit city stores, Medical equipment, Defense, Toll systems,
tracking people, tracking animals, supply chains,...

Closer Look 7.3 RFID and privacy and other

risks Unique identifying number, separate database; encryption
and authentication protocols;

End of chapter case Hertz goes wireless

Quick rentals, Instant returns, NeverLost Onboard, Car
locations, Additional customer services,
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7.1 Overview of Mobile

Computing and Commerce
Evolution of M-Computing
A Brief History of Mobile
Physical connectivity
Computing
Easy-to-carry around
1. Size
2. Replacing wires
3. Combining mobile devices with wireless tech
A real-time connection
NDC National Distributing Co.
Basic Terminologies
First PDA introduced in
First laptop invented by
1983
Alan Kay in 1968
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M-C: Basic Terminologies

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Attributes that Drive MCommerce

Mobility (portability) & Broad Reach (reachability)
Five value added attributes
Ubiquity refers to the attribute of being available at
any location at any given time. (ex: smart phone or PDA)
Convenience Internet enabled; many available hot
spots.
Instant Connectivity quick connections to Internet,
intranets, other mobile devices & databases.
Personalization preparation of customized information
for individual consumers.
Localization of products & services wireless device
has GPS.
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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, 4G
When to expect 5G?

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Drivers of Mobile Computing

& M-Commerce (contd)
Centrino chip connects to wireless LAN; low
usage of electricity; high level security.
Availability of Internet access in automobile
numbers of availability continue to increase.
Networks 3G, 4G, and adoption of Wi-Fi as
wireless LAN.
Next slide: Application of M-computing in
Business

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Applications of Mobile
Commerce
Varshney and Vetter (2002)
1. Mobile financial applications

B2C, B2B

2. Mobile advertising

B2C

3. Mobile inventory management

B2C, B2B

4. Proactive service management

B2C, B2B

5. Product locating and shopping

B2C, B2B

6. Wireless reengineering

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B2C, B2B
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Applications of Mobile
Commerce
7. Mobile auction or reverse auction

B2C

8. Mobile entertainment services

B2C

9. Mobile office

B2C

10. Mobile distance education

B2C

11. Wireless data centre

B2C, B2B

12. Music on demand

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B2C

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The landscape of mobile

computing and commerce.

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WLAN and WiFi

How it work? WAP & LAN - hotspot
Benefits: Lower cost and convenience
Examples of WiFi applications
Table 7.2: Airports, In-flight service, Music stores, McDonald,
Mining companies,.

Barriers to commercial growth of WiFi

Cost and Security
Mitchell 2008 Provides a step by step process
freenetworks.org Community wireless network
projects around the globe

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How Wi-Fi works?

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Wi-Fi Applications

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7.2 Mobile Applications in

Financial Services
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.com go mobile today demo
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Wireless E-Payment Systems

Secure and self contained purchasing tool cellular
network
Smart parking payment terminals solar system
utilization information
Micropayments transaction costs of mobile
carriers
Taxi fares, train fares, vending machines
Parking, grocery, restaurants

Mobile Wallets (Wireless Wallets e-W: piece of s/w)

NTT DoCoMo, Western Union, Motorola

Wireless bill payments

HDFC Bank of India
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7.3 Mobile Shopping, Advertising,

and Content-Providing
Shopping from Wireless Devices

Motorola and Food.com

Virtual ordering/pick-up
Vendio and gNumber MobileeBay(M-eBay)
Japan largest m-commerce in world
Success factor: impulse shopping

Targeted advertising

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Customizing for locations

Multimedia bandwidth
Getting paid for listening to an advt. (SingTel)
SingTel Mobile
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Purchasing movie tickets with

WAP Solo
M-Portals
AvantGo

Voice Portals
iPing.com
Not through
browsers

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7.4 Mobile Enterprise and

Interbusiness Applications
Application of Mobile enterprises

Retail: FoodLion
Hospitals
Operations: Driscoll Strawberry Associates
Tracking employees: Todd Pacific Shipyards (Now, known
as Vigor Shipyards)
Wearable Devices: Screen, Camera, Touch-panel display,
Keyboard, Speech translator, Watch-like-displays
SFA, Job dispatch
Agriculture, national security: biometrics: facial, iris

Wireless intrabusiness applications

Kemper Insurance Co.; Medical Care organization;
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M-Enterprise and
Interbusiness Applications
Customer Support and Mobile CRM software
Seibel CRM suite
SFA
Field Services

Mobile B2B and Supply Chain applications

Wireless telemetry Wireless comm., vehicle
monitoring, vehicle location devices
Sales team of Adidas America

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7.5 Mobile Consumer Services

and Entertainment
Mobile entertainment
Mobile Games Interoperability Forum (MGIF)
Mobile games gambling (legal)

Hotel Services & Travel

WiFi, Bluetooth Tech.

Other Services
Mobile Social Networks
M-Government
Non-internet applications: smart cards (contactless cards or
proximity cards used in transportation), payment through
cell phones (embedded)

E-Commerce to M-Commerce to L-Commerce

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7.6 Location-Based Services

and Commerce
Delivery of
Customers
Safety, convenience, productivity

Key concepts
1. Location
2. Navigation
3. Tracking
4. Mapping
5. Timing
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L-commerce Technologies
Position Determining Equipment (PDE)
Identifying the mobile device

Mobile Positioning Centre (MPC)

It is a server that manager location information sent from PDEs

Location-based technology
Groups of servers that combine the position information with location
specific content to provide L-commerce service

Geographic content
Digitized street maps, road maps, addresses, routes, landmarks,

Location-specific content
It is used in conjunction with geographic content to provide the location
of particular services

These technologies rely on

Global Positioning Systems
Triangulation - three satellites

Geographical Information System

Translating latitude and longitude information to address
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A smart phone with GPS

system in l-commerce.

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Global Positioning Systems

(GPS 24 satellites)

Artist's conception of
GPS satellite in orbit

For info on GPS from

wikipedia, click here
or on any of the
pictures

Civilian GPS receiver ("GPS

navigation device") in a marine
application
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Automotive navigation
system in a taxicab

GPS receivers are now

integrated in many mobile
phones.
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Location-based applications
and services involving maps.

NextBus
Failure of a car navigation system
Examples: Luxor casino in Las Vegas, GlobalPetFinder,
Wal-Mart Weather, Pizza deliver tracking Papa John
e-911 (wireless 911), ACN (crash notification)
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Location-Based Applications
Telematics and telemetry
Telematics: Integration of computers and wireless
technologies to improve information flow
Telemetry: Science that measures physical remoteness by
means of a wireless transmission from a remote source to a
receiving location

Barriers to l-commerce

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Accuracy
Cost-benefit justification
Bandwidth of GSM networks
Privacy
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7.7 Pervasive Computing, Context

Awareness, and RFID
Pervasive: Every object has processing power

Embedded, ubiquitous, ambient or augmented, invisible

Contextual computing & Context awareness

Enhancement of users interactions
Capturing a no. of contextual attributes to understand user

Applications of pervasive computing

Smart homes applications talking to one-another

Emergency management
Lighting
Smart cars

Large scale pervasive systems

Smart schools, Smart offices, Smart factories
Digital cities, Digital States, Digital world
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How RFID works?

From Google.co.in
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Managerial Issues
Ethical & legal issues.
Benetton Group SpA (Sisley)
RFID Public Information Centre, 2006
Privacy

Implementation issues.
Timelines, setting of priorities, etc.

Failures in mobile computing & mcommerce.

Northeast Utilities energy

Mobile device management plans

Too often non-existent.
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Summary

Characteristics, attributes, and drivers of

mobile computing and m-commerce.
Technologies that support mobile computing.
M-commerce applications in financial and other
services (advertising, marketing, and providing
of content).
Applications of m-commerce within
organizations (mobile enterprise,
intrabusiness).
B2B and supply chain applications
(interorganizational) of m-commerce.

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