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Chapter 8 Mobile Commerce

Chapter 8 Mobile Commerce. NextBus: A Superb Customer Service. The Problem Buses in San Francisco have difficulty keeping to 20 minute schedule during rush hours Posted schedule becomes meaningless The Solution Bus riders carrying Internet-enabled cell phone or PDA helps:

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Chapter 8 Mobile Commerce

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  1. Chapter 8Mobile Commerce

  2. NextBus: A Superb Customer Service • The Problem • Buses in San Francisco have difficulty keeping to 20 minute schedule during rush hours • Posted schedule becomes meaningless • The Solution • Bus riders carrying Internet-enabled cell phone or PDA helps: • Find estimated arrival time at each stop, digitally in real time • Soon location-based advertisements will pop up—you have time to get a cup of coffee before the bus arrives—Starbuck’s is 200 feet to the right

  3. NextBus (cont.) • The Results • Passengers in San Francisco are happy with the system • Worries about missing the bus are diminished • May discover they have time for a cup of coffee before the bus arrives • Bus company can: • Schedule better • Arrange for extra buses when needed • Improve operations

  4. Exhibit 8.1NextBus Operational Model

  5. Mobile Commerce: Overview • Mobile commerce (m-commerce, m-business)—anye-commerce done in a wireless environment, especially via the Internet • Can be done via the Internet, private communication lines, smart cards, etc. • Creates opportunity to deliver new services to existing customers and to attract new ones

  6. Exhibit 8.2Classes of M-Commerce Applications

  7. 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)

  8. Terminology and Standards • GPS: Satellite-based Global Positioning System • PDA: Personal Digital Assistant—handheld wireless computer • SMS: Short Message Service • EMS: Enhanced Messaging Service • MMS: Multimedia Messaging Service • WAP: Wireless Application Protocol • Smartphones—Internet-enabled cell phones with attached applications

  9. 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

  10. Attributes of M-Commerce (cont.) • 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

  11. Exhibit 8.3Characteristics of M-Commerce

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

  13. 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 Mobile Computing Infrastructure • Hardware

  14. Mobile Computing Infrastructure (cont.) • 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

  15. Mobile Computing Infrastructure (cont.) • 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

  16. Mobile Computing Infrastructure (cont.) • Networks and access • Wireless transmission media • Microwave • Satellites • Radio • Infrared • Cellular radio technology • Wireless systems

  17. Exhibit 8.5 Delta Airlines Wireless System

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

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