Turban and Volonino Chapter 7 Mobile Commerce Information

Turban and Volonino Chapter 7 Mobile Commerce Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University Copyright 2010 John Wiley & Sons, Inc. 7 -1

Chapter Outline 7. 1 Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology 7. 2 Mobile Applications in Financial Services 7. 3 Mobile Shopping, Advertising, and Content. Providing 7. 4 Mobile Enterprise and Interbusiness Applications 7. 5 Mobile Consumer Services and Entertainment Copyright 2010 John Wiley & Sons, Inc. 7 -2

Chapter Outline (cont’d) 7. 6 Location-Based Services and Commerce 7. 7 Pervasive Computing, Context

Learning Objectives 1. Discuss the characteristics, attributes, and drivers of mobile computing and m-commerce. 2. Understand the technologies that support mobile computing. 3. Discuss m-commerce applications in financial and other services, advertising, marketing, and providing of content. 4. Describe the applications of m-commerce within organizations (mobile enterprise, intrabusiness). 5. Understand B 2 B and supply chain applications (interorganizational) of m-commerce. Copyright 2010 John Wiley & Sons, Inc. 7 -4

Learning Objectives cont’d 6. Describe consumer and personal applications of mcommerce. 7. Describe location-based commerce (l-commerce). 8. Discuss the key characteristics and current uses of pervasive computing. 9. Describe the major inhibitors and barriers of mobile computing and m-commerce. Copyright 2010 John Wiley & Sons, Inc. 7 -5

• Problem – Competition is fierce; profit margins low. Bloom needs appropriate technology to compete with Wal-Mart. • Solution – Wireless technology – mobile checkstands, scanners, handhelds, Wi-Fi, RFID. • Results – Better customer service & speedier checkout; higher employee productivity; fewer employees overall. Food Lion Opens Lake Norman Bloom Store Copyright 2010 John Wiley & Sons, Inc. 7 -6

Wi-Fi – What is it? Food Lion Checking Out With Wi-Fi How Wi. Fi

7. 1 Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology

Mobile Computing A Brief History of Mobile Computing First laptop invented by Alan Kay

Copyright 2010 John Wiley & Sons, Inc. 7 -10

Mobile Computing – Attributes The characteristics of M-commerce, mobility and broad reach break the barriers of geography and time. Creating unique value added attributes. • Ubiquity refers to the attribute of being available at any location at any given time. A • Convenience. It is very convenient for users to operate in the wireless environment. • Instant connectivity. Mobile devices enable users to connect easily and quickly to the • Personalization refers to customizing the information for individual • Localization of products and services. Knowing the users physically location at mobile terminal in the form of a smart phone or a PDA offers ubiquity. All they need is an Internet enabled mobile device such as a smartphone. Internet, intranets, other mobile devices and databases. consumers. any particular moment is key to offering relevant products and services.

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 – 3 G & 3. 5 G • Availability of Internet access in automobiles – numbers of availability continue to increase Copyright 2010 John Wiley & Sons, Inc. 7 -12

Mobile Commerce M-commerce and m-business is any e-commerce or e-business activities performed in a wireless environment. It is not merely a variation on existing Internet services; it is a natural extension of ebusiness creating new opportunities. • Typical Applications include: – Financial applications (B 2 C, B 2 B) – Advertising (B 2 C) – Inventory management (B 2 C, B 2 B) – Field Service management – Product locating and shopping – Mobile office – Mobile music / music-on-demand

Mobile Computing Revenue Model • • Access fees Subscription fees Pay-per-use Advertising Transactions fees Hosting …

The landscape of mobile computing and commerce (Source: Drawn by E. Turban. ) Copyright

How Wi-Fi works Copyright 2010 John Wiley & Sons, Inc. 7 -16

Wi-Fi Applications Copyright 2010 John Wiley & Sons, Inc. 7 -17

Barriers to Commercial Wi-Fi Growth • Cost – it’s readily available; why pay for

Mobile Computing Financial Services Mobile financial applications include: • Banking: offer mobile access to financial and account information. • Wireless payments: provides mobile phones with a secure purchasing • Micropayments: electronic payments for small-purchase amounts tools capable of instantly authorizing payments • (generally less than $10) Wireless wallets: Software (e-wallet) that stores an online shopper’s credit card numbers and other personal information. • Bill payment services: Paying bills directly from a mobile device • Brokerage services: stock trades and quotes • Money transfers: from one account to another These services have the potential to turn a mobile device into a business tool, replacing banks, ATMs, and credit cards by allowing a user to conduct financial transactions any time and from anywhere

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 “go mobile today” demo Copyright 2010 John Wiley & Sons, Inc. 7 -20

7. 3 Mobile Shopping, Advertising, and Content-Providing Copyright 2010 John Wiley & Sons, Inc.

Mobile Computing – Shopping from wireless devices enables customers to perform quick searches, compare prices, use a shopping cart, order, and view the status of their order using their mobile wireless devices. Some shopping applications include: • Restaurant chains enabling consumers to place an order for pick up or delivery virtually any time, anywhere. • e. Bay offers “anywhere wireless” services as does Amazon. com • Purchasing movie tickets by wireless device

Mobile Computing – Advertising Knowing the current location of mobile users (using GPS) and their preferences or surfing habits, marketers can send user-specific advertising messages to wireless devices. This location-sensitive advertising, will informing a user about: • sales at a specific shop or mall • today’s specials at a restaurant • loyalty programs • and much more all when a potential buyer is within close proximity. • Targeted advertising • Getting paid to listen to advertising

Mobile Computing – Mobile Portals These are customer channels, optimized for mobility, that aggregates and provides content and services to mobile users. The services provided by mobile portals include: • News • Sports • E-mail • Entertainment • Travel information • Restaurants • Event information • Leisure-related services (e. g. , games, TV and movie listings) • Community services • Stock trading.

Mobile Computing – Location-based Commerce Location-based commerce (l-commerce) refers to the delivery of advertisements, products and services. • The l-commerce services revolve around five key areas: – – – Location: determining the basic position of a person or a thing (e. g. , car or boat). Navigation: plotting a route from one location to another. Tracking: monitoring the movement of a person or a thing (e. g. , a package or vehicle). Mapping: creating maps of specific geographical locations. Timing: determining the precise time at a specific location.

Mobile Computing – L-Commerce Technologies • Providing location-based services requires the following location-based and network technologies: – Position Determining Equipment (PDE). This equipment identifies the location of the mobile device. (GPS) – Location-based technology. This technology consists of groups of servers that combine the position information with geographic- and location-specific content to provide an l-commerce service. – – Geographic contents consists of streets, road maps, addresses, routes, landmarks, land usage, Zip codes, and the like. (GIS) Location-specific content is used in conjunction with the geographic content to provide the location of particular services.

Mobile Computing – L-Commerce Applications • Location-based advertising. – The wireless device is detected, and similar to a pop-up ads on a PC, advertising is directed towards the PC. – A dynamic billboard ad will be personalized specifically for the occupant of an approaching car. – Ads on vehicles (taxicabs, trucks, buses) will change based on the vehicles location. • Emergency cell phone calls • Telematics and telemetry applications: integration of computers and wireless communications in order to improve information flow

Location-based services involving maps (Source: Mapinfo. com, 2001. ) Copyright 2010 John Wiley &

Purchasing movie tickets with WAP Solo (Source: Sadeh, 2002, Fig. 1. 5. ) Copyright

Mobile Applications in Sports Nike i. Pod Nano Copyright 2010 John Wiley & Sons,

A smart phone with GPS system in l-commerce Copyright 2010 John Wiley & Sons,

Global Positioning Systems (GPS) For wikipedia & much more, click here! Artist's conception of GPS satellite in orbit Civilian GPS receiver ("GPS navigation device") in a marine application Automotive navigation system in a taxicab GPS receivers are now integrated in many mobile phones. Copyright 2010 John Wiley & Sons, Inc. 7 -32

L-Commerce Applications Barriers • • Accuracy of location-finding services Cost-benefit justification Bandwidth Privacy

7. 4 Mobile Enterprise and Interbusiness Applications Copyright 2010 John Wiley & Sons, Inc.

Mobile Enterprise Applications Supporting salespeople during customer visits Supporting field employees during repairs Supporting traveling of employees Supporting employees working within the organization • Supporting employees driving trucks • • Copyright 2010 John Wiley & Sons, Inc. 7 -35

7. 7 Pervasive Computing, Context Awareness, and RFID Copyright 2010 John Wiley & Sons,

Mobile Computing – Pervasive Computing A world in which virtually every object has processing power with wireless or wired connections to a global network. The user doesn’t have to think about how to use the processing power in the object; rather, the processing power automatically helps the user perform a task (Invisible Computing Everywhere). • • RFID (radio frequency identification) tag attached to items for sale. Active badges worn as ID cards by employees. Memory buttons are nickel-sized devices that store information relating to whatever it is attached to. Contextual computing, refers to the process of understanding the user’s interactions within a valid context, to better understand what the consumer needs, and what products or services they might possibly be interested in at this time. Context awareness refers to capturing a broad range of contextual attributes to better understand those needs.

Mobile Computing – Pervasive Computing (continued) • Smart homes / offices / factories • Smart cars • Smart “Things” – Barcodes. – Auto Identification (Auto-ID) – RFID: It is used in wireless tollbooth systems, such as E-Z Pass.

How RFID works (Source: C. Heinrich, RFID and Beyond, Indianapolis, Wiley Publishing, 2005, Figure

Mobile Computing – Pervasive Computing (continued) • Smart Schools. Exploring communication between students, teachers, and the environment to create a smart learning environment. • Intelligent Elder- Care • Smart Offices. • Digital Cities. Embedded Computing

Managerial Issues • • Ethical & legal issues. Implementation issues. Failures in mobile computing & m-commerce. Mobile device management plans are too often non-existent. Copyright 2010 John Wiley & Sons, Inc. 7 -42

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