Turban and Volonino. Mobile Commerce. Information Technology for Management Improving Performance in the Digital Economy

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1 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

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

3 Chapter Outline (cont d) 6. Location-Based Services and Commerce 7. Pervasive Computing, Context Awareness, and RFID 8. Managerial Issues Copyright 2010 John Wiley & Sons, Inc. 7-3

4 Figure IT7eU Copyright 2010 John Wiley & Sons, Inc. 7-4

5 7.1 Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology Copyright 2010 John Wiley & Sons, Inc. 7-5

6 Overview of Mobile Computing Mobile Computing The first phase was to make computers small enough so they can be easily carried - Mobile devices The second solution to the need for mobile computing was to replace wires with wireless communication media. The third phase was a combination of the first two, namely to use mobile devices in a wireless environment. Referred to as wireless mobile computing, this combination enables real-time connections between mobile devices and other computing environments. 6

7 Table 7.1 Copyright 2010 John Wiley & Sons, Inc. 7-7

8 Mobility Broad Reach 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. 7-8

9 Drivers of Mobile Computing & M-Commerce Widespread availability of mobile devices 50% of world population will use mobile phones in 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 3G & 3.5G Copyright 2010 John Wiley & Sons, Inc. 7-9

10 Drivers of Mobile Computing & M-Commerce (cont d) Centrino chip (2003) connects to wireless LAN; low usage of electricity; high level security. Availability of Internet access in automobile numbers of availability continue to increase. Networks 3G, 4G, and adoption of Wi-Fi as wireless LAN. Copyright 2010 John Wiley & Sons, Inc. 7-10

11 Mobile Computing Infrastructure WWAN s The success of mobile computing depends on the capabilities of the WWAN communication systems 1G. The first generation of wireless technology. It was an analogbased technology, in effect from 1979 to G. The second generation of digital wireless technology. In existence today, 2G is based on digital radio technology and mainly accommodates text. 2.5G. An interim technology based on GPRS (General Packet Radio Services) and EDGE (Enhanced Data Rates for Global Evaluation) that can accommodate limited graphics. 3G. The third generation of digital wireless technology, which supports rich media such as video clips. It started in 2001 in Japan, and reached Europe in 2002 and the United States in G. Faster display of multimedia. Chapter 5 11

12 7.1 The landscape of mobile computing and commerce. Copyright 2010 John Wiley & Sons, Inc. 7-12

13 Figure 7.2 How Wi-Fi works. Copyright 2010 John Wiley & Sons, Inc. 7-13

14 Table 7.2 Copyright 2010 John Wiley & Sons, Inc. 7-14

15 Barriers to Commercial Wi-Fi Growth Cost it s readily available; why pay for it? Security Copyright 2010 John Wiley & Sons, Inc. 7-15

16 7.2 Mobile Applications in Financial Services Copyright 2010 John Wiley & Sons, Inc. 7-16

17 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. 7-17

18 7.3 Mobile Shopping, Advertising, and Content-Providing Copyright 2010 John Wiley & Sons, Inc. 7-18

19 Mobile Shopping, Advertising, and Content- Providing Shopping from Wireless Devices Targeted Advertising Mobile Portals Voice Portals Copyright 2010 John Wiley & Sons, Inc. 7-19

20 Shopping from Wireless Devices Copyright 2010 John Wiley & Sons, Inc. 7-20

21 7.3 Purchasing movie tickets with WAP Solo. Copyright 2010 John Wiley & Sons, Inc. 7-21

22 7.4 Mobile Enterprise and Interbusiness Applications Copyright 2010 John Wiley & Sons, Inc. 7-22

23 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. 7-23

24 7.5 Mobile Consumer Services and Entertainment Copyright 2010 John Wiley & Sons, Inc. 7-24

25 Mobile Consumer Services and Entertainment Entertainment Games Hotel and Travel M-Governance Copyright 2010 John Wiley & Sons, Inc. 7-25

26 7.6 Location-Based Services and Commerce Copyright 2010 John Wiley & Sons, Inc. 7-26

27 Location-Based Services and Commerce Key Concepts: Location Navigation Tracking Mapping Timing Copyright 2010 John Wiley & Sons, Inc. 7-27

28 Location-Based Services and Commerce L-Commerce Technologies: Position Determining Equipments (PDE) Mobile Position Centre (MPC) Location Based Technology Geographic Content Location Specific Content Copyright 2010 John Wiley & Sons, Inc. 7-28

29 Figure 7.4 A smart phone with GPS system in l-commerce. Copyright 2010 John Wiley & Sons, Inc. 7-29

30 Global Positioning Systems (GPS) For wikipedia & much more, click here! Artist's conception of GPS satellite in orbit Automotive navigation system in a taxicab Civilian GPS receiver ("GPS navigation device") in a marine application GPS receivers are now integrated in many mobile phones. Copyright 2010 John Wiley & Sons, Inc. 7-30

31 Figure 7.5 Location-based services involving maps. (Source: Mapinfo.com, 2001.) Copyright 2010 John Wiley & Sons, Inc. 7-31

32 Location-Based Services and Commerce Barriers to L-Commerce: Accuracy The Cost-benefit justification The Bandwidth of GSM networks Invasion of Privacy Copyright 2010 John Wiley & Sons, Inc. 7-32

33 7.7 Pervasive Computing, Context Awareness, and RFID Copyright 2010 John Wiley & Sons, Inc. 7-33

34 Pervasive Computing, Context Awareness, and RFID Invisible Computing Everywhere Contextual Computing and Context Awarness Smart Homes: Lighting Energy Management Water Control Home security and Communication Home theater Smart Cars RFID Copyright 2010 John Wiley & Sons, Inc. 7-34

35 Pervasive Computing, Context Awareness, and RFID Large scale Pervasive Systems: Smart Schools Intelligent Elder Care Smart Office, Factories Digital Cities Copyright 2010 John Wiley & Sons, Inc. 7-35

36 Figure 7.6 How RFID works. Copyright 2010 John Wiley & Sons, Inc. 7-36

37 7.8 Managerial Issues Copyright 2010 John Wiley & Sons, Inc. 7-37

38 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. 7-38

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