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 Awareness, and RFID • 7. 8 Managerial Issues Copyright 2010 John Wiley & Sons, Inc. 7 -3

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

Figure IT 7 e. U Copyright 2010 John Wiley & Sons, Inc. 7 -6

• 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 -7

Wi-Fi – What is it? Food Lion Checking Out With Wi-Fi How Wi. Fi Works Wi-Fi® Technology Enabling Economic and Social Development in Rural and Urban India Copyright 2010 John Wiley & Sons, Inc. 7 -8

7. 1 Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology Copyright 2010 John Wiley & Sons, Inc. 7 -9

Mobile Computing A Brief History of Mobile Computing First laptop invented by Alan Kay in 1968 First PDA introduced in 1983 Copyright 2010 John Wiley & Sons, Inc. 7 -10

Table 7. 1 Copyright 2010 John Wiley & Sons, Inc. 7 -11

Value Added Attributes that Drive Development of M-Commerce • 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. Copyright 2010 John Wiley & Sons, Inc. 7 -12

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 Copyright 2010 John Wiley & Sons, Inc. 7 -13

Drivers of Mobile Computing & M-Commerce (cont’d) • 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 – 3 G, 4 G, and adoption of Wi-Fi as wireless LAN. Copyright 2010 John Wiley & Sons, Inc. 7 -14

Figure 7. 1 The landscape of mobile computing and commerce. (Source: Drawn by E. Turban. ) Copyright 2010 John Wiley & Sons, Inc. 7 -15

Figure 7. 2 How Wi-Fi works. Copyright 2010 John Wiley & Sons, Inc. 7 -16

Table 7. 2 Copyright 2010 John Wiley & Sons, Inc. 7 -17

Barriers to Commercial Wi-Fi Growth • Cost – it’s readily available; why pay for it? • Security Copyright 2010 John Wiley & Sons, Inc. 7 -18

7. 2 Mobile Applications in Financial Services Copyright 2010 John Wiley & Sons, Inc. 7 -19

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. 7 -21

Shopping from Wireless Devices Copyright 2010 John Wiley & Sons, Inc. 7 -22

Figure 7. 3 Purchasing movie tickets with WAP Solo. (Source: Sadeh, 2002, Fig. 1. 5. ) Copyright 2010 John Wiley & Sons, Inc. 7 -23

7. 4 Mobile Enterprise and Interbusiness Applications Copyright 2010 John Wiley & Sons, Inc. 7 -24

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 -25

7. 5 Mobile Consumer Services and Entertainment Copyright 2010 John Wiley & Sons, Inc. 7 -26

Mobile Applications in Sports Nike i. Pod Nano Copyright 2010 John Wiley & Sons, Inc. 7 -27

7. 6 Location-Based Services and Commerce Copyright 2010 John Wiley & Sons, Inc. 7 -28

Location-Based Services Defined & historic development… Location-Based M-Commerce Services Copyright 2010 John Wiley & Sons, Inc. 7 -29

Figure 7. 4 A smart phone with GPS system in l-commerce. Copyright 2010 John Wiley & Sons, Inc. 7 -30

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 -31

Figure 7. 5 Location-based services involving maps. (Source: Mapinfo. com, 2001. ) Copyright 2010 John Wiley & Sons, Inc. 7 -32

7. 7 Pervasive Computing, Context Awareness, and RFID Copyright 2010 John Wiley & Sons, Inc. 7 -33

Figure 7. 6 How RFID works. (Source: C. Heinrich, RFID and Beyond, Indianapolis, Wiley Publishing, 2005, Figure 3. 5, p. 65. ) Copyright 2010 John Wiley & Sons, Inc. 7 -34

7. 8 Managerial Issues Copyright 2010 John Wiley & Sons, Inc. 7 -35

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 -36

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