Electronic Commerce: From Vision to Fulfillment 2/e

CHAPTER 7 MOBILE COMMERCE - THE BUSINESS OF TIME

TEST YOUR UNDERSTANDING 1. Define m-commerce in your own terms. M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephones and personal digital assistants (PDAs). 2. Briefly explain the main categories of m-commerce. Several categories of services comprise m-commerce: Information-based consumer services like searching the Web for restaurants or movies using a data-enabled cellular phone. Sending e-mail also is included. Transaction services, where consumers download and listen to digital music in a wireless setup, make purchases by a cellular device and have the price added to the phone bill, or carry out buy and sell business transactions wirelessly. Location-centric, personalized services that anticipate your purchases based on your location and data stored in your profile, by product, time of the year, and so on. This unsettling possibility means that companies can beam advertisements, coupons, and other electronic pitches at consumers depending on their location at the time. Related to this category is tethering employees via wireless devices that can track their movements and communications. 3. Explain the justification for introducing or adopting wireless Web. Wireless networking makes it possible to connect two or more computers without the bulky cables, giving the benefits of a network with little or no labor. The whole wireless initiative is launching a new battle against time. The focus is on anytime. 4. Summarize the key benefits and limitations of m-commerce. M-commerce offers several benefits: A facilitator between the e-world and the real world; easy and convenient shopping; and location-centricity to conduct business and tracking of products, services, and people. Overall, the main benefits are convenience, flexibility, and efficiency with anytime, anywhere access. Wireless limitations address distance, speed, crawling pornography, security, and security factors. Tracking users is the number one privacy concern.

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5. What areas does a wireless Web work in? Wireless work environments, such as offices that transmit data from a companys Intranet to employees on the move. Employees on the move help companies reach suppliers and improve customer service. Through a wireless network, service response time can be cut dramatically. Smart environment, where wireless devices in a warehouse or a manufacturing facility can be programmed to automatically collect from neighboring computers data about workflow, status of inventory or parts availability, and so on. Wireless devices open new shortcuts to stock trading, banking, and more. It is now possible to have direct access to and control over ones personal finances. Bankers, brokers, and others are pushing custom-tailored financial services by advances in communications and trading technologies.

6. When we talk about critical success factors of m-commerce, what do we mean? In m-commerce, four critical success factors need to be monitored: Mobility: Most people consider their mobility critical to their lifestyle. Any m-service offered must take into account peoples mobility and profile of usage if it is to benefit financially through m-sales and m-services. Personalization: This means identifying and following up on each customers market segment and determining the best options for them. This is considered individualized service, similar to what they would get in a reputable brick-and-mortar store. Global standardization: This critical success factor has two aspects. First, for m-commerce, customers want to continue moving around without having to change services or worry about taxation, legal rules, or other constraints that are unique to each country. Second, customers look for standardization in terms of one bill, one password, and one user interface. This will make it easier and quicker to transact business in a mobile environment. Customer profiling: This area of specialization addresses customer needs over a time period via certain behavior such as advertising, promotions, or special offers. This attempt takes into consideration personalization features, as well as customization. 7. Distinguish between: a. personalization and customization. b. WLAN and WAE. c. Wi-Fi and WEP. a. Personalization means identifying and following up on each customers market segment and determining the best options for them. While, customization means the creation or adaptation (of something) according to the customer's requirements. b. Wireless Local Area Networks (WLAN) is a standard for wireless networking. It is identical to a regular LAN, except that the devices are wireless. While, Wireless Application Environment (WAE) is based on a combination of Web and mobile telephony technologies.

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c.

Wireless fidelity (Wi-Fi) represents a collection of related wireless technologies. It is an emerging industry standard that makes it possible for hardware firms to create wireless products that communicate with one another. While, Wired Equivalent Privacy (WEP) is a part of the Wi-Fi security mechanism that makes it possible to encrypt messages before heading for their destination.

8. Explain briefly the main capabilities and limitations of Bluetooth. Bluetooths ability to link multiple devices together holds limitless possibilities. It is an enabling technology, creating a common language between various electronic services which makes it possible for them to communicate and connect with one another. The key features include low cost, low power consumption, low complexity, and robustness. One factor that greatly limits the volume of Bluetooth devices is the technology itself. The technology has undergone significant changes in the past few years, making development much more difficult due to the lack of a stable platform for testing new products. 9. Sketch out the configuration of a piconet. A piconet is a group of devices connected to a common channel, identified with its unique hop sequence. In this arrangement, an initiating device (master) and the receiving device (slave) are linked and detached by the LMP and can switch their roles, when necessary. 10. What is the difference between L2CAP and LMP? Link Manager Protocol (LMP) is a Bluetooth layer that sets up ongoing link management with Bluetooth devices. While, Logical Link Control and Adaptation Protocol (L2CAP) is layered over the Baseband Protocol and resides in the data link layer. 11. What is a repeater? Illustrate. A repeater is a device that extends the distance of a physical link. A repeater in a satellite receives the signal representing the data and repeats the signal to another location normally to an Earth station. 12. What should an organization consider in deciding on wireless LAN technology? For an organization to consider wireless LAN technology, it must consider range and coverage, throughput, security and integrity, cost and scalability, and standardization of WLANs. 13. Is there a difference between Bluetooth and WAP? Explain briefly. Yes, there is difference. Bluetooth is a universal, low-cost, wireless technology designed for short-range radio hookup for wireless connectivity among computers, scanners, and printers. It allows any Bluetooth-enabled device to communicate with other similar devices, regardless

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of manufacture. It is a type of wireless networking that allows electronic devices to communicate and share information without action from a user, wires, or cables. Wireless Application Protocol (WAP) is an open, global, industry-wide mobile specification for wireless network architecture, application environment and a set of communication protocols. This standard is designed to deliver messages and data traffic to mobile phones within a geographical area. 14. In your own words, describe how WAP works. The design idea underlying WAP is to use a gateway at the intersection of the wireless mobile network and the conventional wired network to conduct e-business. The protocol gateway converts user requests from the WAP protocol stack to the Web protocol stack (HTTP and TCP/IP). Encoders and decoders convert WAP content into compact encoded formats to reduce the size of data sent over the network. For example, when a customer places an order with an e-merchant, three parties are involved: the Mobile Service Provider (MSP) that acts as a WAP gateway to connect between the wired and wireless Internet, the customer who uses a WAP-enabled cell phone, and the e-merchants Web site, which is connected to the Internet. 15. Distinguish between: a. Bluetooth and piconet. b. WTP and WTLS. c. WDP and NCM. a. Bluetooth is a universal, low-cost, wireless connection standard. While, Piconet is group of devices connected to a common channel, identified by its unique hop sequence.

b. Wireless Transaction Protocol (WTP) is a WAP layer that ensures that data flow from one location to another efficiently based on a request/reply paradigm. While, Wireless Transport Layer Security (WTLS) is a WAP element that gives security to the system via encryption, data integrity verification, and authentication between the user and the server. c. Wireless Datagram Protocol (WDP) is a WAP feature that confirms easy adaptation to the WAP technology. While, Network Carrier Method (NCM) is a technology that a wireless provider uses. 16. Briefly cite the key benefits and limitations of WAP. Most WAP benefits are reflected in wireless applications, which reduce the reaction time of mobile professionals. Because of greater mobility and instant access to critical information, productivity can be increased dramatically from anywhere at any time. On the other hand, WAP has the limitations of low-power central processing units, small screens with questionable clarity, limited device memory, small keypads and no mouse, questionable connections for reliability, and high latency before making the connections.

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17. What security issues are involved in WAP? WAP security algorithms work on lines similar to Web security. The key security measures include public key cryptography and digital certificates. They are adequate for most any transaction using WAP. 18. Summarize the legal and managerial issues in wireless transmission. With the growth of wireless transmission, companies are beginning to consider the liability issues, as well as managerial issues. Implementing wireless infrastructure requires careful steps, which include evaluating corporate and wireless needs, sending out an RFP, requesting a demo of the proposed wireless system, installing and testing the system, training employees, and ensuring ongoing maintenance. DISCUSSION QUESTIONS 1. Go on the Internet and look up recent developments in the adoption of Bluetooth in banking. What were your new findings? Students should be encouraged to look up banking sites or search engines, beginning with google.com for new developments regarding Bluetooth. Also sites like www.cio.com and www.e-week.com should be helpful. 2. If you were a consultant to a major firm interested in wireless transmission, what advice would you give the firm? How would you proceed before you recommend or do not recommend the technology? Be specific. As a consultant, I am always careful not to assume that the client needs immediate help via any technology. The whole strategy lies in the fact that recommendations are made to address the immediate and potential needs of the company and how, in this case, wireless technology could solve a unique set of problems. The clich recommend the latest in wirelesshow can you go wrong? is loaded with problems and flaws. The number one step to take is to understand the requirements of the company for communication effectiveness, for reaching clients, suppliers, sales personnel in the field, and for ensuring quick and speedy response to all kinds of inquiries and queries at the time when they happen. 3. Security and privacy have been drummed up in virtually every area of the Internet and e-commerce. Do you think there are good reasons for this much sensitivity to the areas of concern? Discuss. The moment we began to share information via local area networks, the Internet, and beyond, we began to generate concerns regarding security, privacy, confidentiality, integrity of data transmitted, and reliability of the exchange. As a result, it is always prudent to stress the importance of these areas by the use of passwords, firewalls, encryption, and the like. Expecting 100 percent security or privacy exists no more, because doing so means bringing

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the whole system to a virtual halt or noticeable delay in communication. What each company should do is to prioritize the shelf life of data, what data to store in highly secure places, and what other data would cause minimum damages with vulnerability. Employee trust and integrity also enter the picture when it comes to how vulnerable an employer is to threats from outside and from within. 4. Having used a cell phone by now, what is your opinion about companies funneling advertisements to your cell phone? Are there any benefits to you as a student? Can you think of any drawbacks? Write a three-page report explaining your thoughts. It would be interesting to see any conflict between students perception of security and privacy in mobile transmission and their perception of the same via their cell phones. Most of the students we talked to in class seem to view security and privacy as issues anywhere electronic communications are transacted. Id have the students divided into teams, each team discussing their individual thoughts and have one or two teams present their total findings in class. WEB EXERCISES 1. Search literature or the Web and address the features and capabilities of the latest Palm Pilot on the market. Students can go to www.palm.com and look up information about two new products for 2003-2004: Zire 21 and Tunzsten T-3. There should be other Web sites representing dealers and retailers who sell such products. 2. Form a group of three to four peers and brainstorm the pros and cons of wireless transmission for a major bakery in your town. Write a two-page report summarizing your decisions. This exercise is designed to link up students and local business in the interest of doing basic field research. I would have the students identify a local baker, evaluate the communication requirements within and across the business, and then strategize the pros and cons of wireless transmission for that business. 3. Write a five-page report on the latest developments in wireless transmission for the academic area. For example, some schools already have installed wireless labs, and others have implemented a wireless environment for students to access their e-mail or authorized files. A good start for students is to contact the IT department of the school and learn more directly about developments in wireless transmission. Another approach would be to go to a school nearby, including a junior college. A third approach is to contact wireless vendors or local computer retailers for developments in the academic area.

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