Chapter 9
Mobile Commerce and
Pervasive Computing
Learning Objectives
1. Define mobile commerce and understand its relationship
to e-commerce.
2. Understand the mobile computing environment that
supports m-commerce.
3. Describe the four major types of wireless
telecommunications networks.
4. Discuss the value-added attributes and fundamental
drivers of m-commerce.
5. Discuss m-commerce applications in finance,
advertising, and provision of content.
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Learning Objectives
6. Describe the application of m-commerce within
organizations.
7. Understand B2B and supply chain management applications
of m-commerce.
8. Describe consumer and personal applications of m-
commerce.
9. Understand the technologies and potential application of
location-based m-commerce.
10. Describe the major inhibitors and barriers of
m-commerce.
6. Discuss the key characteristics and current uses of pervasive
computing.
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Mobile Computing
Overview of Mobile Commerce
mobile commerce (m-commerce, m-business)
Any business activity conducted over a wireless
telecommunications network
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Exhibit 9.1 The Mobile Commerce
Landscape
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Mobile Computing
Mobile Computing Devices
personal digital assistant (PDA)
A handheld computer principally used for personal
information management
smartphone
Internet-enabled cell phones that can support mobile
applications
blackberry
A handheld device principally used for e-mail
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Mobile Computing
Mobile Computing Devices
wireless mobile computing (mobile computing)
Computing that connects a mobile device to a
network or another computing device, anytime,
anywhere
synchronization
The exchange of updated information with other
computing devices
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Exhibit 9.2 The Wireless Mobile
Environment
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Mobile Computing
Mobile Computing Software
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
WAPreadable files on an Internet-connected Web
server
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Mobile Computing
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
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Mobile Computing
Extensible Hypertext Markup Language (xHTML)
A general scripting language; compatible with HTML;
set by W3 Consortium
Voice XML (VXML)
An extension of XML designed to accommodate voice
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Exhibit 9.4 WAP Architecture
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Mobile Computing
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
Multimedia Messaging Service (MMS)
The next generation of wireless messaging; MMS will
be able to deliver rich media
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Mobile Computing
Mobile Computing Services
micropayments
Electronic payments for small-purchase amounts
(generally less than $10)
global positioning system (GPS)
A worldwide satellite-based tracking system that
enables users to determine their position anywhere
on the earth
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Mobile Computing
Mobile Computing Services
interactive voice response (IVR)
A computer voice system that enables users to
request and receive information and to enter and
change data through a telephone
voice portal
A Web site with an audio interface that can be
accessed through a telephone call
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Wireless Telecommunications Networks
Personal Area Networks
personal area network (PAN)
A wireless telecommunications network for device-to-
device connections within a small range
Bluetooth
A set of telecommunications standards that enables
wireless devices to communicate with each other over
short distances
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Wireless Telecommunications Networks
Wireless Local Area Networks
wireless local area network (WLAN)
A telecommunications network that enables users to
make medium-range wireless connections to the
Internet or another network
Wi-Fi (wireless fidelity)
The common name used to describe the IEEE 802.11
standard used on most WLANs
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Wireless Telecommunications Networks
Wireless Local Area 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 802.11b but has a
smaller range
802.11g
This fast but expensive Wi-Fi standard is mostly used
in businesses
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Wireless Telecommunications Networks
Wireless Local Area Networks
wireless access point
An antenna that connects a mobile device to a wired
LAN
hotspot
An area or point where a wireless laptop or PDA can
make a connection to a wireless local area network
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Exhibit 9.5 How Wi-Fi Works
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Wireless Telecommunications Networks
Wireless Metropolitan Area Networks
WiMax
A wireless standard (IEEE 802.16) for making
broadband network connections over a large area
wireless metropolitan area network (WMAN)
A telecommunications network that enables users to
make long-range wireless connections to the Internet
or another network
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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
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Wireless Telecommunications Networks
Wireless Wide Area Networks
Physical Topology of a WWAN
subscriber identification module (SIM) card
An extractable storage card used for
identification, customer location information,
transaction processing, secure communications,
and the like
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Exhibit 9.6 Cellular Telephone Network
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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
3G. The third generation of digital wireless technology;
supports rich media such as video
4G. The expected next generation of wireless
technology that will provide faster display of multimedia
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Wireless Telecommunications Networks
Wireless Wide Area 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
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Mobile Commerce
Attributes of M-Commerce
Ubiquity
Convenience
Interactivity
Personalization
Localization
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Mobile Financial Applications
Mobile Banking
Wireless Electronic Payment Systems
Wireless Wallets
m-wallet (mobile wallet)
Technologies that enable cardholders to make
purchases with a single click from their wireless
device
Wireless Bill Payments
A number of companies now provide the option of
paying bills directly from a cell phone
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Mobile Shopping, Advertising, and
Content Provision
Wireless Shopping
An increasing number of online vendors allow
customers to shop from wireless devices
Enables customers to use cell phones or wireless
PDAs to:
Perform quick searches
Compare prices
Use a shopping cart
Order
View the status of their order
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Mobile Shopping, Advertising, and
Content Provision
Targeted Advertising
Marketers send user-specific advertising messages to
wireless devices
Location-sensitive advertising informs buyers about
shops, malls, and restaurants close to where the
mobile device owner is located
mobile portal
A customer interaction channel that aggregates
content and services for mobile users
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Mobile Intrabusiness Applications
Support of Mobile Employees
sales force mobilization
The process of equipping sales force employees
with wireless computing devices
Job Dispatch
wearable devices
Mobile wireless computing devices for employees
who work on buildings and other climbable
workplaces
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Mobile Intrabusiness Applications
Customer Support
Mobile access extends the reach of CRM to both
employees and business partners on a 24/7 basis, to
any place where recipients are located
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Mobile Intrabusiness Applications
Non-Internet Intrabusiness Applications
Wireless networking, used to pick items out of storage
in warehouses
Delivery-status updates
Collection of data
Monthly pay slips sent as SMS messages sent to
employees mobile phones
Property adjusters report from the scene of an
accident
Sales representatives check orders and inventories
during their visits to customers
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B2B M-Commerce and Supply Chain
Management
Use of wireless communication to share information
along the supply chain and to collaborate with partners
By integrating the mobile computing device into supply
chain communications, it is possible to:
Make mobile reservations of goods
Remotely check availability of a particular item in the warehouse
Order a customized product from the manufacturing department
Provide secure access to confidential financial data from a
management information system
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Mobile Consumer and Personal
Service Applications
Mobile Games
Wireless Telemedicine
Other Mobile Computing Services for
Consumers
Non-Internet Mobile Applications for Consumers
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Location-Based Mobile Commerce
location-based m-commerce
Delivery of m-commerce transactions to individuals in a
specific location, at a specific time
The services provided through location-based
m-commerce focus on five key areas:
Location
Navigation
Tracking
Mapping
Timing
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Location-Based Mobile Commerce
Global Positioning System (GPS)
A worldwide satellite-based tracking system that
enables users to determine their position
anywhere on the earth
geographical information system (GIS)
An information system that integrates GPS data
onto digitized map displays
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Location-Based Mobile Commerce
Emergency Response Cell Phone Calls
wireless 911 (e-911)
In the United States, emergency response 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
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Location-Based Mobile Commerce
telematics
The integration of computers and wireless
communications to improve information flow using the
principles of telemetry
Barriers to Location-Based M-Commerce
Accuracy of devices
The cost-benefit justification
Limited network bandwidth
Invasion of privacy
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Security and Other Barriers to Mobile
Commerce
M-Commerce Security Issues
Malicious Code
Transaction Security
Wireless Communication
Physical Security of Mobile Devices
Ease of Use
Technological Barriers to M-Commerce
Ethical, Legal, and Health Issues in
M-Commerce
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Security and Other Barriers to Mobile
Commerce
Project Failures in M-Commerce
Do not start without appropriate infrastructure
Do not start a full-scale implementation; use a small pilot for
experimentation
Pick an appropriate architecture (e.g., some users do not need to
be persistently connected)
Talk with a range of users, some experienced and some not,
about usability issues
Users must be involved; hold biweekly meetings if possible
Employ wireless experts
Wireless is a different medium from other forms of
communication. Remember that people are not used to the
wireless paradigm
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Pervasive Computing
Overview of Pervasive Computing
pervasive computing
Invisible, everywhere computing that is embedded in
the objects around us
Principles of Pervasive Computing
Decentralization
Diversification
Connectivity
Simplicity
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Pervasive Computing
Overview of Pervasive Computing
contextual computing
The enhancement of a users interactions by
understanding the user, the context, and the
applications and information required
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Pervasive Computing
Pervasive Computing Initiatives
radio frequency identification (RFID)
Technology that uses radio waves to identify items
electronic product code (EPC)
An RFID code that identifies the manufacturer,
producer, version, and serial number of individual
consumer products
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Pervasive Computing
Pervasive Computing Initiatives
Smart Homes
Lighting
Energy management
Water control
Home security and communications
Home entertainment
Smart Appliances
Smart Cars
Smart Clothes
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Pervasive Computing
Pervasive Computing Initiatives
sensor network
A series of interconnected sensors that monitor the
environment in which they are placed
Sensor networks can:
Protect the environment
Public safety
Monitor business and agricultural areas
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Pervasive Computing
Barriers to Pervasive Computing
For pervasive systems to be widely deployed, it is
necessary to overcome many of the technical, ethical,
and legal barriers associated with mobile computing
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Managerial Issues
1. Whats our timetable?
2. Which applications first?
3. Is it real or just a buzzword?
4. Which system to use?
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Summary
1. What is m-commerce?
2. Characteristics of mobile devices.
3. Wireless software development is difficult.
4. M-commerce support services.
5. Wireless telecommunications networks.
6. Value-added attributes of m-commerce.
7. Drivers of m-commerce.
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Summary
8. Finance, advertising, and content-providing
applications.
9. Intrabusiness applications.
10. B2B and SCM applications.
11. Consumer applications.
12. Location-based commerce.
13. Limitations of m-commerce.
14. Pervasive computing.
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