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Chapter 9
Mobile Computing and Commerce

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 (i.e., 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.
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Learning Objectives
6. Discuss the application of m-commerce within organizations and across the supply chain. 7. Describe consumer and personal applications of m-commerce. 8. Understand the technologies and potential application of location-based m-commerce. 9. Describe the major inhibitors and barriers of m-commerce.
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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.

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Mobile Commerce: Attributes, Benefits, and Drivers

ATTRIBUTES OF M-COMMERCE
Ubiquity Convenience Interactivity Personalization Localization

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Mobile Commerce: Attributes, Benefits, and Drivers

DRIVERS OF M-COMMERCE
Widespread availability of more powerful mobile devices The handset culture The service economy Vendors push The mobile workforce Increased mobility Improved price and performance Improvement of bandwidth
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Mobile Computing Components and Infrastructure

wireless mobile computing (mobile computing) Computing that connects a mobile device to a network or another computing device, anytime, anywhere.

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Mobile Computing Components and Infrastructure

MOBILE DEVICES
personal digital assistant (PDA) A stand-alone handheld computer principally used for personal information management. smartphone A mobile phone with PC-like capabilities.

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Mobile Computing Components and Infrastructure

MOBILE COMPUTING SOFTWARE
Mobile Operating System Mobile Application User Interface microbrowser Wireless Web browser designed to operate with small screens and limited bandwidth and memory requirements.

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Mobile Computing Components and Infrastructure

Wireless Application Protocol (WAP) A scripting language used to create content in the WAP environment; based on SML, minus unnecessary content to increase speed.

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Mobile Computing Components and Infrastructure

Markup Languages
Wireless Markup Language (WML) A scripting language used to create content in the WAP environment; based on XML, minus unnecessary content to increase speed. Extensible Hypertext Markup Language (xHTML) A general scripting language; compatible with HTML; a standard set by W3Consortium.

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Mobile Computing Components and Infrastructure

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Mobile Computing Components and Infrastructure

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.
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Mobile Computing Components and Infrastructure

Multimedia Messaging Service (MMS) The emerging generation of wireless messaging; MMS is able to deliver rich media. Location-Based Services
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 Components and Infrastructure

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.

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Wireless Telecommunications Networks

personal area network (PAN) A wireless telecommunications network for device-to-device connections within a very short 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 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.
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Wireless Telecommunications 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

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Wireless Telecommunications Networks

MUNICIPAL WI-FI NETWORKS
WiMax A wireless standard (IEEE 802.16) for making broadband network connections over a medium-sized area such as a city.

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Wireless Telecommunications Networks

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Wireless Telecommunications Networks

wireless wide area network (WWAN) A telecommunications network that offers wireless coverage over a large geographical area, typically over a cellular phone network.
Physical Topology of a WWAN
subscriber identification module (SIM) card An extractable storage card used for identification, customer location information, transaction processing, secure communications, etc.
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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. 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

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 Financial Applications

MOBILE BANKING AND FINANCIAL SERVICES WIRELESS ELECTRONIC PAYMENT SYSTEMS
Wireless Bill Payments Closing the Digital Divide

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Mobile Shopping, Advertising, and Content Provision

WIRELESS SHOPPING MOBILE AND TARGETED ADVERTISING mobile portal A customer interaction channel that aggregates content and services for mobile users.
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Mobile Enterprise and Supply Chain

SUPPORT OF MOBILE EMPLOYEES
Mobile Office Sales Force Mobilization and Automation Worker Support in Retailing Support in Operations Job Dispatch Maintenance and Repair at Remote Sites

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Mobile Enterprise and Supply Chain

SUPPORTING OTHER TYPES OF WORK CUSTOMER AND PARTNER SUPPORT B2B M-COMMERCE AND SUPPLY CHAIN MANAGEMENT

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Mobile Consumer Services

MOBILE ENTERTAINMENT
Music and Video Mobile Games Mobile Gambling

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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.
Five key factors for services provided :
1. 2. 3. 4. 5.
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Location Navigation Tracking Mapping Timing

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Location-Based Mobile Commerce

THE TECHNOLOGY FOR L-COMMERCE
Global Positioning System

GEOGRAPHICAL INFORMATION SYSTEM AND GPS

Geographical information system (GIS) A computer system capable of integrating, storing, editing, analyzing, sharing, and displaying geographically referenced (spatial) information. GPS/GIS Applications
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Location-Based Mobile Commerce

LOCATION-BASED ADVERTISING telematics The integration of computers and wireless communications to improve information flow using the principles of telemetry. OTHER APPLICATIONS OF LOCATION-BASED SYSTEMS
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Location-Based Mobile Commerce

BARRIERS TO LOCATION-BASED MCOMMERCE
Accuracy of devices The cost-benefit justification Limited network bandwidth Invasion of privacy

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Security and Other Implementation Issues in M-Commerce

M-COMMERCE SECURITY ISSUES TECHNOLOGICAL BARRIERS TO MCOMMERCE ETHICAL, LEGAL, AND HEALTH ISSUES IN M-COMMERCE

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Security and Other Implementation Issues in M-Commerce

Technical Limitations of Mobile Computing
Insufficient bandwidth Security standards Power consumption Transmission interferences GPS accuracy WAP limitations Potential health hazards Humancomputer interface Complexity
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Managerial Issues
1. 2. 3. 4. 5. Whats our timetable? Is it real or just a buzzword? Is an all-in-one device a winner? Which system to use? Which will win the wireless race: WiMax, Wi-Fi, or 3G? 6. Which applications first?
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Summary
1. M-commerce, its value-added attributes, and its fundamental drivers. 2. The mobile computing environment that supports m-commerce. 3. Wireless telecommunications networks. 4. Finance applications.

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Summary
5. Shopping, advertising, and contentproviding applications. 6. Enterprise and SCM applications. 7. Consumer applications. 8. Location-based commerce. 9. Security and other implementation issues.
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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