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Exploring E-Government and M-Commerce Trends

This chapter covers E-government initiatives, e-books, e-learning, knowledge management, e-auctions, m-commerce characteristics, applications, drivers, infrastructure, standards, security, and voice systems in m-commerce. Understand current and future trends in these digital domains.

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Exploring E-Government and M-Commerce Trends

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  1. Overview Ch. 7 • Describe e-government to citizens (G2C) and to business (G2B) • Describe various e-government initiatives • Discuss online publishing and e-books • Describe e-learning and virtual universities • Describe knowledge management and dissemination • Describe the processes involved in conducting forward and reverse e-auctions • Describe e-auction fraud and implementation issues • Analyze future directions of m-auctions

  2. Chapter 8M-Commerce

  3. Learning Objectives • Describe the characteristics, attributes and drivers of m-commerce • Understand the supportive technologies and their capabilities • Describe the applications of m-commerce within organizations • Describe B2B and supply chain applications of m-commerce • Describe consumer and personal applications of m-commerce • Describe location-based commerce (l-commerce) • Describe some implementation issues of m-commerce

  4. M-Commerce Terminology • Generations • 1G: 1979-1992 wireless technology • 2G: current wireless technology; mainly accommodates text • 2.5G: interim technology accommodates graphics • 3G: 3rd generation technology (2001-2005) supports rich media (video clips) • 4G: will provide faster multimedia display (2006-2010)

  5. Specific Attributes of M-Commerce • Attributes of m-commerce and its economic advantages • Mobility—users carry cell phones or other mobile devices • Broad reach—people can be reached at any time

  6. Attributes of M-Commerce [2] • Value-added attributes of m-commerce • Ubiquity—easier information access in real-time • Convenience—devices that store data and have Internet, intranet, extranet connections • Instant connectivity—easy and quick connection to Internet, intranets, other mobile devices, databases • Personalization—preparation of information for individual consumers • Localization of products and services—knowing where the user is located at any given time and match service to them

  7. Characteristics of M-Commerce

  8. The Drivers • Widespread availability of devices • No need for a PC • Handset culture • Vendors’ push • Declining prices • Improvement of bandwidth • Explosion of EC in general

  9. Mobile Computing Infrastructure • Hardware • Cellular (mobile) phones • Attachable keyboard • PDAs • Interactive pagers • Other devices • Notebooks • Handhelds • Smartpads • Screenphones—a telephone equipped with color screen, keyboard, e-mail, and Internet capabilities • E-mail handhelds • Wirelined—connected by wires to a network

  10. Mobile Computing Infrastructure [2] • Unseen infrastructure requirements • Suitably configured wireline or wireless WAN modem • Web server with wireless support • Application or database server • Large enterprise application server • GPS locator used to determine the location of mobile computing device carrier

  11. Mobile Computing Infrastructure [3] • Software • Microbrowser • Mobile client operating system (OS) • Bluetooth—a chip technology and WPAN standard that enables voice and data communications between wireless devices over short-range radio frequency (RF) • Mobile application user interface • Back-end legacy application software • Application middleware • Wireless middleware

  12. Mobile Computing Infrastructure [4] • Networks and access • Wireless transmission media • Microwave • Satellites • Radio • Infrared • Cellular radio technology • Wireless systems

  13. Wireless Standards and Security • M-commerce supported by • Standards • Security • Voice systems

  14. Wireless Standards • Wireless standards • Time-division Multiple Access (TMDA) • General Packet Radio Services (GPRS) • Code Division Multiple Access (CDMA) • CDMA One • Global System of Mobile Communication (GSM) • WLAN 802.11 (Wi-Fi) • Wideband CDMA

  15. Wireless Standards [2] • Wireless Application Protocol (WAP)—a set of communications protocols designed to enable different kinds of wireless devices to talk to a server installed on a mobile network, so users can access the Internet • Subscriber Identification Module (SIM) • Wireless Markup Language (WML) • Voice XML (VXML) • Enhanced Data Rates for Global Evaluation (EDGE) • Universal Mobile Telecommunications System (UMTS) • IPv6

  16. Security Issues • Viruses • Smart card security solutions • Voice communication can be intercepted by hackers • One solution is an embedded biometric add-on • Back-end security solutions—public key infrastructure (PKI) and M-CERT (mobile certification)

  17. Voice Systems for M-Commerce • Hands-free and eyes-free operations increase productivity, safety, effectiveness • Disabled people can use voice data for various tasks • Voice terminals are portable • 2 ½ times faster than typing • Fewer errors

  18. Interactive Voice Response (IVR) • A computer voice system that enables users to request and receive information and to enter and change data through regular telephone lines or through 1G cell phones • Patients schedule doctors’ appointments • Users request pick-up from FedEx • Employees find information, select, or change benefits packages • Electric utilities can respond to customers reporting power outages

  19. Voice Portals • AWeb site with audio interface, accessed by making a phone call • Request information verbally from system that: • Retrieves the information • Translates it into a computer-generated voice reply • Tells you what you want to know • Iping.com—reminder and notification service • Helps businesses find new customers

  20. Mobile Financial Applications • Wireless electronic payment systems • Mobile phones become secure, self-contained purchasing tools capable of instantly authorizing payments over the cellular network for goods and services consumed • Micropayments • Electronic payments for small-purchase amounts (generally less than $10)

  21. Mobile Financial Applications [2] • M-wallet (mobile wallet) • a wireless wallet that enables cardholders to make purchases with a single click from their wireless devices • Bill payments directly from cell phone via: • Bank • Credit card • Prepaid arrangement

  22. Bill Payments by Cell Phone

  23. Mobile Shopping Supported by CRM

  24. Targeted Advertisement • Personalization of services and enhanced user interface for wireless Web pages from barnesandnoble.com • Knowing user preferences or surfing habits user-specific advertising messages to the location of mobile users • Using GPS marketers can send location-sensitive messages can be sent

  25. Targeted Advertisement [2] • Get paid to listen to advertisements—listen to a 10–second ad before you dial your cell phone, and get 2 minutes of free long-distance time • Program flopped in the U.S. • SingTel of Singapore recouped its initial investment from ad revenues in about a year

  26. Targeted Advertisement [2] • Advertisement strategies and guidelines—Wireless Advertising Association (waaglobal.org) is trying to establish wireless ad guidelines • Opt-in ad programs involving mobile message alerts • Addressing issues like spamming and unethical strategies: • Confirmed opt-ins • Personally identifiable information • Push advertising

  27. Wireless Advertising in Action • GPS helps target users from their location • Vindigo.com: places to go and things to do in your area • GeePS.com: location-based start-up sent coupons to customers cell phones • Go2Online.com: locations-based Web domain helps mobile travelers find anything (e.g., the nearest oil change)

  28. Supporting Customers & Business Partners(Consumer Services) • Using voice portals in marketing and customer service • Use vendor’s voice portal to check status of deliveries to a job site • Service technicians provided with diagnostic information, enabling them diagnosis of difficult problems • Sales people check inventory status during a meeting to help close a sale

  29. Supporting Customers & Business Partners(Consumer Services) [2] • Using mobile portals • Mobile portal—a customer interaction channel that aggregates content and services for mobile users • Portals charge for their services (per service or monthly fee): • Public mobile portals (e.g., Imode in Japan) • Corporateportals • Serve a corporation ’s customers and/or suppliers • E.g., major airline portals

  30. Supporting Mobile Employees • Smartphones and hand-held devices • Wearable wireless devices • mobile wireless computing devices for employees who work on buildings and other difficult-to-climb places • Cameras Screen • Keyboard Touch-panel display

  31. Supporting Mobile Employees [2] • Job dispatch • Transportation (delivery of food, oil, newspapers, cargo, courier services, tow trucks) • Taxis (already in use in Korea and Singapore) • Utilities (gas, electricity, phone, water) • Field service (computer, office equipment, home repair) • Health care (visiting nurses, doctors, social services) • Security (patrols, alarm installation)

  32. Supporting Mobile Employees [2] • Sales force automation (SFA) tools • Integrate software aimed at m-commerce applications • Equipped with smartphones providing easy access to customer data at the central office • Contact management information • Product and spare part availability • Deal tracking

  33. Mobile B2B and Supply Chain Applications • Both sell-side and buy-side of ERP • Unified messaging makes user’s device less of an issue • Telemetry drives supply chain efficiency and productivity through automation of: • Data capture • Improved billing timeliness and accuracy • Reduced overhead • Increased customer satisfaction • Collaboration among members of the supply chain is facilitated by mobile capabilities

  34. Mobile Consumer and Personal Service Applications • Mobile gaming devices • PDAs (Handspring’s Visor) with Flash RAM card • Nintendo’s Game Boy Advance • Sony’s PocketStation • Sega’s portable device connected to Dreamcast • Mobile gambling • Germany’s online lottery company fluxx.com available via mobile terminals • Hong Kong, betting on horse races via cell phones is popular

  35. Mobile Consumer and Personal Service Applications [2] • Mobile entertainment • Music • Video—real-time streaming video (packetvideo.com) • Hotels—hotel guests equipped with Bluetooth-enabled mobile devices are instantly recognized • Intelligent homes and appliances

  36. Mobile Consumer and Personal Service Applications [3] • Wireless telemedicine • use of mobile telecommunications infrastructures and multimedia technologies to provide medical information and deliver health care services remotely • Other services for consumers • Providing news, weather, and sports reports • Online language translations • Information bout tourist attractions (hours, prices) • Emergency services

  37. Location-Based Commerce • Location-based commerce (L-commerce) • E-commerce applications provided to customers based on a user’s specific location • Location-based technologies • Global positioning systems: a wireless system that uses satellites to enable users to determine their position anywhere on the earth • Geographical information systems (GIS): relates longitude and latitude of GPS into place or address (mapinfo.com) • GPS on handsets: stand-alone units for tracking applications

  38. Location-Based Services Involving Maps

  39. GPS System

  40. L-Commerce Applications • E-911 • Calls from cellular phones to providers of emergency services • Wireless carriers must provide feature that allows them to identify number and location of the user • Mobile 911 calls must be forwarded immediately to the appropriate agency • Automatic crash notification (ACN) • Device (now experimental) that will automatically notify police of a vehicular accident

  41. Telematics and Telemetry Applications • Telematics • Integration of computers and wireless communications to improve information flow using the principles of telemetry • GM OnStar system—cellular phone and PDA are integrated to provide personal information management, mobile Internet services, entertainment on the vehicle vehicle dashboard • Sophisticated text-to-speech and voice recognition capabilities minimize driver distraction

  42. Telematics and Telemetry Applications [2] • Use as a remote vehicle self-diagnostics tool • Daimler-Chrysler and Volvo experimented with installation of GSM chip sets in cars • Monitor performance and to provide an early warning system for potential problems • Chip sends a message to the manufacturer indicating what the problem is • Manufacturer’s system analyzes various data and provides a fix (via a software tool) • Developing faults found before they become critical and continuous operation of the car can be ensured

  43. Barriers to L-Commerce • The accuracy of some of the location technologies • The cost-benefit justification • M-spam • The bandwidth of GSM networks

  44. Limitations of M-Commerce • Usability problem • Usability of a site is critical to attract attention and retain user stickiness • Effectiveness, efficiency, satisfaction • Some mobile devices are found to be ineffective • Customers want to find exactly what they are looking for, easily and quickly, not possible in the 2G text-based environment • More and faster multimedia will be available as 3G spreads

  45. Technical Limitations • Lack of standardized security protocol • Security methodology needs to be incorporated in mobile • Customer confidence is low • Insufficient bandwidth • Limits the extent to which mobility can be viewed commodity • 3G licenses • Auctioned by governments • Certain countries cannot be served by these devices • Transmission & power consumption limitations • Multipath interference • Weather and terrain problems • Distance-limited connections

  46. Technical Limitations [2] • WAP limitations • Speed: in 2002 connections to WAP sites are still too slow • Cost: fees for mobile phone users are still too high • Accessibility: as of spring 2002, fewer than 50,000 WAP-accessible sites worldwide (must be written in WML)

  47. Technical Limitations [3] • Potential health hazards • Fear of radiation • Unsafe to drive and use wireless phone • Cell phones may interfere with sensitive medical devices (pacemakers) • Lawsuits relating to the potential health hazards of wireless devices have already been filed—public is advised to adopt a precautionary approach in using mobile phones (earphone device)

  48. Implementing M-Commerce • Basic (fixed) fees • Point-of-traffic fees • Transaction fees • Content and service charges • Payment clearing • Hosting fees • Certification (PKI) fees • Revenue models

  49. Implementing M-Commerce [2] • Consumer confidence and trust • Customers love free or inexpensive services like those offered by iMode • Customers not willing to pay large amounts of money for services unless they trust the product/vendor • Confidence should increase with reliable payment mechanisms • Research is being conducted in this area

  50. Implementing M-Commerce [3] • M-commerce value chain • Involves many partners • Success depends on • Coordination among participants • Sufficient compensation for all • Use ASP to deliver m-commerce or • Large companies contract other vendors to complement their services

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