Concepts, Technology, and Applications of Mobile Commerce Robert Nickerson Professor and Chair Department of Information Systems Director, Center for Electronic Business College of Business San Francisco State University San Francisco, California USA RNick@sfsu.edu http://online.sfsu.edu/~rnick Robert C. Nickerson, 2009 Agenda E-commerce 1. E-commerce systems: Characteristics and functions 2. E-commerce systems: Case study 3. E-commerce systems: European analysis M-commerce 4. M-commerce systems: Characteristics and functions 5. M-commerce technology 6. M-commerce applications 7. M-commerce application development 8. M-commerce trust, security, and payment 9. M-commerce issues Beyond m-commerce: 10. U-commerce: The next step after m-commerce? 1
Lecture 9 Mobile commerce issues Objective: To examine the issues that affect decisions related to m-commerce systems in organizations Source: Tarasewich, Nickerson, Warkentin To present predictions about the future directions of wireless Issue An issue is an idea, topic, problem, or other matter that is open to discussion or dispute, or a question to be disputed or decided. An issue: May be resolvable by exploratory means such as by conducting research on the issue May be future directed and only resolvable with the passage of time Some issues lead to research studies and other issues lead only to speculation 2
Issues Issues are important for: Managers Researchers Managers: issues are areas of which managers need to be aware in making decisions so as to avoid problems that may arise with the issues Researchers: issues can be the basis for research that help resolve the issues Technology issues Mobile client issues Communications infrastructure issues Other technology issues Application issues Global m-commerce issues Mobile commerce issues: Agenda 3
Device types Information personalization Device usability Resident software Communication protocols/systems Mobile client technology issues Mobile client technology issues: Device types Multiple types of devices: Mobile phones Handheld computers Smart phones Laptop computers Vehicle-mounted devices Questions: How will the diverse mobile client device types evolve in the future? What type(s) of mobile client devices will ultimately become dominant? Issue: Ultimate form(s) of mobile client devices 4
Mobile client technology issues: Information personalization Information can be personalized for the user on a single client device or across multiple devices Question: Should users have complete or limited control of personalization of information presented by organizations on their mobile clients? Issue: Control of personalization of information presented to user Mobile client technology issues: Device usability Device limitations include small screen, limited input devices, slow processors, little memory Devices differ from each other Questions: Do existing user interface design principles apply to mobile client devices or must new principles be investigated? Can applications be designed so that they will function similarly on different mobile client devices? Issue: Design of user interfaces for mobile client devices Issue: Design of applications for use on different mobile client devices 5
Mobile client technology issues: Resident software Operating systems: Symbian OS, iphone OS Microbrowsers: Mobile Browser, Internet Explorer Mobile Question: Can operating systems, browsers, and other resident software be created that will provided increased functionality on limited mobile client devices? Issue: Creation of resident software for limited mobile client devices Mobile client technology issues: Communication protocols/systems Multiple protocols/systems; e.g., WAP, imode Multiple page description languages; e.g., chtml, WML, HDML, XHTML Question: What protocol or system for mobile client device communication will ultimately dominate? Issue: Acceptance of protocols or systems for mobile client device communication 6
Wireless communications technology issues Bandwidth Wireless local area networks Wireless telecommunications Wireless communications technology issues: Bandwidth Basic problem with wireless communication: limited bandwidth compared to wired communication Question: How can applications be designed so that they work efficiently in limited bandwidth situations? Issue: Efficient use of limited bandwidth 7
Wireless communications technology issues: Wireless local area networks Current wireless LAN (WLAN) technology: IEEE 802.11g Other WLAN technology under development Questions: Can mobile devices be created that will function with different communications systems? Will there be enough frequencies and bandwidth available to handle demand for existing and new mobile commerce applications? Will communications technologies interfere with each other? Issue: Difficulties with mobile devices interfacing with multiple communications environments Issue: Spectrum and bandwidth availability Issue: Interference among technologies Wireless communications technology issues: Wireless telecommunications Multiple mobile phone standards with varying speeds: 2G - TDMA, GSM, CDMA; 2.5G - HSCSD, EDGE, GPRS; 3G WCDMA/UMTS, CDMA2000, TD-SCDMA; 4G -? Questions: How can applications be designed or redesigned so that they function with different current and future mobile phone standards and speeds? Will businesses pay the costs associated with the implementation of each new generation of wireless telecommunications technology? Issue: Addressing compliance with current and future mobile phone standards and speeds Issue: Willingness of businesses to pay the high cost of establishing new wireless infrastructures 8
Location and device transfer Payment model Security Malicious use User identification Location identification Other technology issues Other technology issues: Location and device transfer Location-to-location and device-to-device transfer must not result in break in service Question: How can mobile systems provide capabilities for users to move between locations and devices without losing continuous services? Issue: Need for seamless transfer between locations and devices 9
Other technology issues: Payment model Different payment model for mobile device communication than for wired device communication because of device limitations Limited screen => Web advertising may not work Some methods of charging for wireless connection: Monthly subscription Per minute/per use charge Combination Question: What are the best ways to charge for wireless communication links? Issue: Method of charging for wireless connection Other technology issues: Security Wireless communication is easy to intercept Frequency hopping and encryption help but do not solve problem Question: How can users and organizations be assured that data is secure when transmitted over wireless networks? Issue: Security of data traveling over wireless networks 10
Other technology issues: Malicious use Viruses are potentially greater problem with mobile devices than with wired networks because of difficulty to control Hacker can use stolen device, then destroy device to avoid detection Question: Can technology that minimizes the impact of viruses on wireless devices and networks be provided? Issue: Virus management Other technology issues: User identification User identification is important to validate transactions Question: How can users be positively identified without undue intrusion on their time and privacy? Issue: Identification verification 11
Other technology issues: Location identification GPS and triangulation can be used to identify device location Question: Who should control access to device location data? Issue: Control of data related to device location User needs Messaging services Data security Revenue generation Vehicle-based applications Location-based applications Data storage Business-to-business applications Application issues 12
Application issues: User needs Fundamental application issues for researchers and developers relate to user needs Questions: What applications do users want to use anytime from anywhere? What methods and metaphors are best for applications that interface with mobile devices? Issue: Determination of tasks users want to do without regard to temporal (time) and spatial (place) constraints Issue: Method of providing support for desired tasks through wireless applications Application issues: Messaging services E-mail and text messaging (SMS) readily available and popular These and other services can become disruptive to others in some environments Questions: How can different messaging services interface with each other? Will legal or cultural barriers limit the use of mobile devices in certain situations? Issue: Communication between different messaging services Issue: Appropriate use of devices and applications in social settings 13
Application issues: Data security Mobile financial applications require secure data Sensitive business and other data needs to be secured Question: How can financial and other data be made secure in wireless applications? Issue: Security of data used in wireless applications Application issues: Revenue generation Variety of revenue generation techniques for m- commerce service provider: Advertisements Service charges Commissions Sponsorship Subscription fees Usage charges Question: Which combination of revenue generation techniques is best for different services? Issue: Identifying the best revenue generation technique 14
Application issues: Vehicle-based applications Wireless well-suited for vehicle-based applications Question: Can "browsing while driving" be made safe? Issue: Safety while using wireless devices in vehicles Application issues: Location-based applications Some applications need user location information (e.g., emergency response) Other applications could use user location information (e.g., delivery service) Question: How can the privacy of the user be maintained in applications that identify the user's location? Issue: Protection of user privacy in location-based applications 15
Application issues: Data storage Mobile and non-mobile applications may not have same source of stored data Different techniques can be used to store data Data on different devices needs to be synchronized Questions: How can applications be designed so that data integrity is maximized? What data storage techniques are best for data that is used by mobile applications? How can data integrity be ensured when synchronization is used with multiple mobile devices and platforms in an organization? Issue: Addressing the lack of integrity of data from multiple data sources Issue: Storage of data for use and access by mobile applications Issue: Ensuring the integrity of synchronized data among multiple devices Application issues: Business-to-business applications Inter-organizational applications (e.g., supplier data access, service request) can be complex Intra-organizational applications (e.g., sales data access, physician support) can be complex Question: How can mobile enterprise applications be planned, analyzed, designed, and implemented? Issue: Design of complex, robust organizational applications within device limitations 16
Global standardization Global wireless adoption Global application demand Global access pricing Global m-commerce issues Global m-commerce issues: Global standardization Technologies evolve almost daily Mobile phone standards vary 3G phone systems implemented in some locations, 4G in planning Wireless protocols/systems vary WAP popular in Europe, starting to be used in U.S. imode starting to be used outside of Japan, but not universally Question: How should global enterprises address the various wireless communication standards around the world? Issue: Addressing the lack of global standards 17
Global m-commerce issues: Global wireless adoption US lags behind Europe which lags behind Japan in adoption of wireless technologies and applications Other regions of world vary Question: Should businesses plan for the continued disparity in adoption of mobile e-commerce around the world or assume that Europe and the US will eventually catch up with Japan? Issue: Planning for the disparity in adoption of wireless technologies and applications around the world Global m-commerce issues: Global application demand Demand for applications varies Example: Games popular in Europe, karaoke popular Japan, neither popular in US Global wireless service providers must adjust application offerings for region Question: What wireless services are likely to be successful in different parts of the world? Issue: Identifying desired wireless services around the world 18
Global m-commerce issues: Global access pricing Europe and Japan: Wired Internet access more expensive than wireless access US: Wired Internet access inexpensive or free but wireless access costly Question: Do variations in access pricing in different countries affect the use of wireless services? Issue: Impact of access-pricing variations around the world on wireless service use M-commerce: The next step Is m-commerce here to stay or is it a fad that will fade away in a few years? What will come after m-commerce? Will there be an ultimate commerce (u-commerce)? 19