Mobile CommerceChapter 9 Turban & King

Learning Objectives

1. Discuss the value-added attributes, benefits, and fundamental drivers of m-commerce.

2. Describe the mobile computing environment that supports m-commerce (devices, software, services).

3. Describe the four major types of wireless telecommunications networks.

4. Discuss m-commerce applications in finance.5. Describe m-commerce applications in shopping,

advertising, and provision of content.

2

Learning Objectives

6. Describe consumer and personal applications of m-commerce.

7. Understand the technologies and potential application of location-based m-commerce.

8. Describe the major inhibitors and barriers of m-commerce.

3

Mobile Commerce: Attributes, Benefits, and Drivers

• mobile commerce (m-commerce, m-business)Any business activity conducted over a wireless telecommunications network or from mobile devices

4

Mobile Commerce: Attributes, Benefits, and Drivers

• ATTRIBUTES OF M-COMMERCE– Ubiquity– Convenience– Interactivity– Personalization– Localization

5

6

Mobile Commerce: Attributes, Benefits, and Drivers

• DRIVERS OF M-COMMERCE– Widespread availability of more powerful mobile

devices– The handset culture– The service economy– Vendor’s push– The mobile workforce– Increased mobility– Improved price/performance– Improving bandwidth

7

Mobile Influence• In the USA, over 1 Trillion text messages are

sent per month in 2009• Over 95% of new phones sold today have web

browsers and over 70 million US consumers use them regularly

• Over 80% of 18-29 year olds use text messaging

• 38% say mobile is more important than wallet• 2/2010, Facebook mobile: 100 million per

month and growing 8

Components, Technical Infrastructure,and Services of Mobile Computing

• MOBILE DEVICES– Mobile computers– personal digital assistant (PDA)

A stand-alone handheld computer principally used for personal information management

– smartphoneA mobile phone with PC-like capabilities e.g Blackberry, iphone, Androids, etc

9

Components, Technical Infrastructure,and Services of Mobile Computing

• MOBILE COMPUTING SOFTWARE AND SERVICES– Messaging Services• short message service (SMS)

A service that supports the sending and receiving of short text messages on mobile phones• multimedia messaging service (MMS)

The emerging generation of wireless messaging; MMS is able to deliver rich media

10

Components, Technical Infrastructure,and Services of Mobile Computing– Location-Based Services (use GPS)– 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 e.g Bing Voice Search for mobile phones (tellme.com)

http://www.techflash.com/seattle/2009/10/bing_adds_voice_search.html

11

Components, Technical Infrastructure,and Services of Mobile Computing

• WIRELESS TELECOMMUNICATIONS NETWORKS– personal area network (PAN)

A wireless telecommunications network for device-to-device connections within a very short range e.g.– Bluetooth

A set of telecommunications standards that enables wireless devices to communicate with each other over short distances

12

Components, Technical Infrastructure,and Services of Mobile Computing– 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 802.11 standard used on most WLANs

13

14

Components, Technical Infrastructure,and Services of Mobile Computing– WiMax

A wireless standard (IEEE 802.16) for making broadband network connections over a medium-size area such as a city

– wireless wide area network (WWAN)A telecommunications network that offers wireless coverage over a large geographical area, typically over a cellular phone network

15

Mobile Financial Applications

• Mobile Payment value chain– Financial institutions, mobile carriers, application

providers, handset manufacturers, etc• Mobile Banking• Mobile Payments– Mobile Proximity Payments– Mobile Remote Payments• NFC is wireless technology that enables data exchange

between devices that are within a distance of 10 centimeters

16

Mobile Marketing and Advertising• MOBILE MARKETING CAMPAIGNS– Four classes of mobile marketing campaigns:

1. Information. Programs providing information about products, points of interest, news, weather, traffic, horoscopes, and related content.

2. Entertainment. Programs that “ produce value to the customers” and provide amuse-ment and emotional triggers through videos, music, games, personalization ringtones, wallpapers, and so forth.

3. Raffles. Programs that provide prizes such as digital content or physical goods.

4. Coupons. Programs that offer monetary incentives ( like discounts), trial packages, or free services. 17

Mobile Marketing and Advertising

– The major objectives of these classes fell into one of six categories:

1. Building brand awareness2. Changing brand image3. Promoting sales4. Enhancing brand loyalty5. Building customer databases6. Stimulating mobile word of mouth

18

Types of Mobile Advertising

19

Mobile Workforce Solutions

• NEEDS OF THE MOBILE WORKFORCE– mobile worker

Any employee who is away from their primary work space at least 10 hours a week or 25 percent of the time

– Benefits of Mobile Workforce Support• Mobile workers can be divided into three segments:

– Mobile professionals (senior executives and consultants)– Mobile field force (field sales and service technicians)– Mobile specialty workers (delivery personnel and construction

workers)

20

Mobile Workforce Solutions

– Some solutions widely used by the three segments include:• Mobile office applications• Sales force automation (SFA)• Field force automation (FFA)• Mobile CRM (e-CRM)

21

Mobile Workforce Solutions

– Challenges of Mobile Workforce Support• Network coverage gaps and interruptions• Internetwork roaming• Mobile network and application performance• Device and network management• Bandwidth management

22

Mobile Entertainment

• mobile entertainmentAny type of leisure activity that utilizes wireless telecommunication networks, interacts with service providers, and incurs a cost upon usage

23

24

Mobile Entertainment

• MOBILE MUSIC AND VIDEO• MOBILE GAMES– Technology– Number of players– Genre

• MOBILE GAMBLING

25

Location-Based Mobile Commerce

• location-based m-commerce (l-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 factors:1. Location2. Navigation3. Tracking4. Mapping5. Timing

26

Location-Based Mobile Commerce

• L-COMMERCE INFRASTRUCTURE– Mobile devices– Communication network– Positioning component– Service or application provider– Data or content provider

27

Location-Based Mobile Commerce

– Positioning Components• network-based positioning

Relies on base stations to find the location of a mobile device sending a signal or sensed by the network• terminal-based positioning

Calculating the location of a mobile device from signals sent by the device to base stations• global positioning system (GPS)

A worldwide satellite-based tracking system that enables users to determine their position anywhere on the earth

28

Location-Based Mobile Commerce

– Location-Based Data• Locating• Navigating• Searching• Identifying• Event checking

– geographical information system (GIS)A computer system capable of integrating, storing, editing, analyzing, sharing, and displaying geographically-referenced (spatial) information

29

30

Location-Based Mobile Commerce

• BARRIERS TO LOCATION-BASED M-COMMERCE– Lack of GPS in mobile phones– Accuracy of devices– The cost–benefit justification– Limited network bandwidth– Invasion of privacy

31

Security and Other Implementation Issues in Mobile Commerce

• M-COMMERCE SECURITY ISSUES– Worms capable of spreading through mobile

phones– Open-air transmission of signals across multiple

networks opens up new opportunities for compromising security

– Mobile devices are easily lost or stolen

32

33

Security and Other Implementation Issues in Mobile Commerce

• ETHICAL, LEGAL, AND HEALTH ISSUES IN M-COMMERCE– The isolation that mobile devices can impose on a workforce– Field service employees dispatched remotely visit “the office”

only briefly at the start and end of each day, if at all– Not easy to separate work and personal life on a cell phone,

unless one is willing to carry two phones or two PDAs– Health damage from cellular radio frequency emissions– Monitoring staff movements based on GPS-enabled devices

or vehicles

34