E-Commerce and m-

commerce

Basics in IS
 Contents

 E-commerce: example
 E-commerce: transaction types
and technologies
 M-commerce: transaction types
and technologies
 Examples

 HotHotHot; www.hothothot.com
 Amazon, www.amazon.com
 Example: HotHotHot
 HOTHOTHOT.COM was conceived as an
Internet retailer store, and has delivered hot
sauces and salsas exclusively in this manner
since 1994. It has carved out a niche for itself
in a highly competitive world of specialty food
products, particularly in the sauce category.
 HOTHOTHOT.COM has an exclusive agreement
with Quality Foods, a Los Angeles-based
company that manufactures, warehouses and
ships hot sauces and other specialty foods to
various retail outlets.
 Example: HotHotHot
 During its first year, the company received an
average of 500 hits per day; today, the Web site
receives about 10,000 hits per day, reflecting an
annual growth rate of 125%.
 When it was first established, HOTHOTHOT.COM
delivered products only within the U.S.; today,
products are delivered to more than 43 countries.
 The company's customer base is expected to
expand to more countries in the next 3-5 years. In
addition, HOTHOTHOT.COM is negotiating for
warehousing facilities in Europe, Australia and Asia.
 Example: Amazon
 The company began as an online bookstore.
Founder Bezos saw the potential of the Internet;
while the largest brick-and-mortar bookstore might
offer upwards of 200,000 titles, an online bookstore
could sell many times more. Bezos renamed his
company "Amazon" in reference to the world's most
voluminous river, the Amazon. Amazon.com began
service in July 1995.
 Amazon's initial business plan was unusual, in that
the company did not expect to turn a profit for four
to five years after it was founded. Amazon grew at a
steady pace in the late 1990s while other Internet
companies appeared out of nowhere and grew at a
blindingly fast pace.
 Example: Amazon
 Amazon's "slow" growth caused a number of its
stockholders to complain, saying that the company
was not reaching profitability fast enough. When the
Internet "bubble" burst and many e-companies began
going out of business, Amazon persevered and finally
turned its first-ever profit in the fourth quarter of
2002.
 It totaled a meager $5 million, just 1 cent per share,
on revenues of over $1 billion, but it was important
symbolically. It has since remained profitable and
maintained revenues of over $1 billion per fiscal
quarter.
 In January 2004 Amazon posted its first full-year net
profit (for calendar year 2003). Its profits were $35.3
million on revenues of $5.65 billion. Much of the
growth of the company was due to its international
division.
 Example: Amazon
 Amazon's bookstore quickly began expanding,
branching off into retail sales of music CDs,
videos and DVDs, software, consumer electronics,
kitchen items, tools, lawn and garden items, toys,
apparel, sporting goods, gourmet food, jewelry,
watches, health and personal-care items, beauty
products, musical instruments, and more
 A popular feature of Amazon is the ability for
users to submit reviews to the web-page of each
product.
 Amazon.com launched Amazon.com Auctions, its
own Internet auctions service, in March 1999
 e-commerce or e-business

E-commerce describes the process of buying, selling, transferring, or

exchanging products, services, and/or information via computer
networks, including the Internet. E-business refers to a broader
definition of e-commerce, not just the buying and selling of goods and
services, but also servicing customers, collaborating with business
partners, conducting e-learning, and processing electronic transactions.

 Electronic commerce can take several forms depending on

the degree of digitization (the transformation from physical
to digital).
 The degree of digitization relates to:
– the product (service) sold
– the process
– the delivery agent (or intermediary).
E-Business – EC Organizations
E-commerce describes the process of buying, selling,
transferring, or exchanging products, services, and/or information
via computer networks, including the Internet. E-business refers
to a broader definition of e-commerce, not just the buying and
selling of goods and services, but also servicing customers,
collaborating with business partners, conducting e-learning, and
processing electronic transactions.

 Brick-and-mortar (or old-economy) refer to

pure physical organizations (corporations).
 Virtual (or pure-play) organizations are
companies that are engaged only in EC .
 Click-and-mortar (or click-and-brick)
organizations are those that conduct some e-
commerce activities, yet their primary business
is done in the physical world.
 E-Business – Transaction Medium
Most e-commerce is done over the Internet. But EC can also be
conducted on private networks, such as value-added networks
(VANs, networks that add communication services to existing
common carriers), on local area networks (LANs) or wide area
networks (WANs)
E-Business – Transaction Types
E-commerce transactions can be done between various parties.

 Business-to-business (B2B): Both the sellers

and the buyers are business organizations.
 Collaborative commerce (c-commerce): In c-
commerce, business partners collaborate
electronically.
 Business-to-consumers (B2C): The sellers are
organizations, and the buyers are individuals.
 Consumers-to-businesses (C2B): Consumers
make known a particular need for a product or
service, and suppliers compete to provide it.
 E-Business – Transaction Types (Continued)
E-commerce transactions can be done between various parties.

 Consumer-to-consumer (C2C): Individuals sell

products or services to other individuals.
 Intrabusiness (intraorganizational) commerce:
An organization uses EC internally to improve its
operations. A special case is known as B2E (business
to its employees)
 Government-to-citizens (G2C): A government
provides services to its citizens via EC technologies.
 Mobile commerce (m-commerce): When e-
commerce is done in a wireless environment.
 Components of EC
The field of e-commerce is broad, and there are many of EC applications
 Components of EC (Continued)

To execute these applications, companies need the right information,

infrastructure, and support services. As shown:

 People: Sellers, buyers, intermediaries, information systems

specialists and other employees, and any other participants.
 Public policy: Legal and other policy and regulating
issues, such as privacy protection and taxation.
 Marketing and advertising: Like any other business, EC
usually requires the support of marketing and advertising.
 Support services: Many services are needed to support
EC. They range from payments to order delivery and
content creation.
 Business partnerships: Joint ventures, e-marketplaces,
and partnerships are some of frequently occurring
relationships in e-business
 Auctions and Bartering
The major mechanism for buying and selling on the Internet is the
electronic catalog. There are two common mechanisms used in its
implementation: electronic auctions and bartering online.

 Electronic Auctions (e-Auctions): A market mechanism

by which sellers place offers and buyers make
sequential bids.
 Forward auctions are auctions that sellers use as a
selling channel to many potential buyers. Items are
placed at sites for auction and buyers bid continuously
for the items.
 Reverse auctions, have one buyer, usually an
organization, that wants to buy a product or a service.
Suppliers are invited to submit bids.
 Auctions and Bartering (byteshandel)
Electronic bartering, the exchange of goods or services without a monetary
transaction.

 Individual-to-individual bartering
 Corporate e-bartering (e.g., barterbrokers.com)
Business-To-Consumer – B2C
For generations home shopping from catalogs has flourished, and
television shopping channels have attracted millions of shoppers.
However, these methods have drawbacks: Both methods can be
expensive; paper catalogs are sometimes not up-to-date; and
television shopping is limited to what is shown on the screen at
any given time.
 Electronic retailing (e-tailing) is the direct sale of
products through electronic storefronts or electronic malls,
usually designed around an electronic catalog format
and/or auctions.
– Electronic Storefronts. Hundreds of thousands of solo
storefronts can be found on the Internet, each with its own
Internet name and EC portal, such as Home Depot, The
Sharper Image, or Wal-Mart.
– Electronic mall, also known as a cybermall or e-mall, is a
collection of individual shops under one Internet address. The
basic idea of an electronic mall is the same as that of a
regular shopping mall—to provide a one-stop shopping place
that offers many products and services.
 E-tailing Issues – B2C
The concept of retailing and e-tailing implies the sale of goods and/or
services to individual customers. The following are the major issues
faced by e-tailers that may be handled and supported by IT tools:

 Resolving channel conflict: A firm’s distribution channels

compete with each other and with the firm.
 Resolving conflicts within click-and-mortar organizations.
When an established company decides to sell direct online, it may
create a conflict within its existing operations in areas such as
pricing, services, allocation of resources and logistical support.
 Organizing order fulfillment and logistics. E-tailers face a
difficult problem of how to ship small quantities to a large number
of buyers.
 Determining viability and risk of online e-tailers. How long
does a company operate while losing money and how will it
finance the losses.
 Identifying appropriate revenue models. It is necessary to
identify appropriate revenue/business models.
 Service Industries – B2C
Delivery of services (buying an airline ticket or stocks) can be
done 100 percent electronically, with considerable cost reduction
potential. Therefore, online services is growing very rapidly.
 Electronic banking, also known as cyberbanking includes various
banking activities conducted from home or a business instead of at a
physical bank
 International and Multiple-Currency Banking. International
banking and the ability to handle trading in multiple currencies,
transfers of electronic funds and electronic letters of credit are critical
for international trade.
 Online Securities Trading can be placed from anywhere, any time.
Investors can find a considerable amount of information regarding a
specific company or in a mutual fund.
 Online Job Market. The Internet offers a perfect environment for job
seekers and for companies searching for employees.
 Travel Services. The Internet is an ideal place to plan, explore, and
arrange almost any trip.
 Real Estate. Real estate transactions are an ideal area for e-
commerce. The customer can view many properties, sort and organize
properties according to preferences and can preview the exterior and
interior designs of the properties, shortening the search process.
 Issues in E-Tailing
Market Research – B2C
To successfully conduct electronic commerce, especially B2C, it is
important to find out who are the actual and potential customers
and what motivates them to buy. Finding out what specific groups
of consumers want is done via segmentation, dividing customers
into specific segments, like age or gender.

Market researchers have tried to understand consumer behavior,

and develop models to help vendors understand how a consumer
makes a purchasing decision. If the process is understood, a
vendor may be able to influence the buyer’s decision, through
advertising or special promotions.
Consumer Behavior Model
 Issues in E-tailing
Several models have been developed in an effort to describe the
details of the decision-making process that leads up to and
culminates in a purchase.

 Generic Purchasing-Decision Model

1. Need identification
2. information search
3. evaluation of alternatives
4. purchase and delivery
5. after-purchase -evaluation.
 Market Research – The Process
There are basically two ways to find out what customers want. The
first is to ask them, and the second is to infer what they want by
observing what they do.
 Asking Customers What They Want: The
Internet provides easy, fast, and relatively inexpensive ways
for vendors to find out what customers want by interacting
directly with them. The simplest way is to ask potential
customers to fill in electronic questionnaires.
 Observing Customer Behavior on the
Web: The Web is a rich source of business intelligence
captured from a company’s Web sites. By analyzing the user
behavior patterns contained in the clickstream data inference
about behavior can be made.
– Brand- and Vendor-Finding Agents and Price Comparisons
– Search Agents
– Collaborative Filtering Agents
– Other Agents
 Online Advertising
Advertisement is an attempt to disseminate information in order to
influence a buyer–seller transaction. Unlike traditional advertising on
TV or newspapers which is impersonal, one-way mass
communications, Internet advertising is media-rich, dynamic, and
interactive. The most common advertising methods online are
banners, pop-ups, and e-mails.
 Banners are electronic billboards and is the most commonly
used form of advertising on the Internet
– Keyword banners appear when a predetermined word is queried
from a search engine.
– Random banners appear randomly
 Pop-Up, Pop-Under, and Similar Ads.
– A pop-up ad appears in front of the current browser window.
– A pop-under ad appears underneath the active window.
 E-Mail Advertising.
 Electronic Catalogs and Brochures.
 Other Forms of Internet Advertising.
Business-To-Business – B2B
In B2B applications, the buyers, sellers, and transactions involve
only organizations. It covers a broad spectrum of applications that
enable an enterprise to form electronic relationships with its
distributors, resellers, suppliers, customers, and other partners.

 Sell-Side Marketplaces: organizations attempt to sell their

products or services to other organizations electronically, from
their own private e-marketplace. This model is similar to the
B2C model in which the buyer is expected to come to the
seller’s site and place an order.
 Buy-Side Marketplaces: organizations attempt to buy
needed products or services from other organizations
electronically, usually from their own private e-marketplace.
One buy-side model is a reverse auction. Here, a company
that wants to buy items places a request for quotation (RFQ)
on its Web site, or in a third-party bidding marketplace.
Business-To-Business – B2B (Continued)

 E-procurement. Purchasing by using electronic support is

referred to as e-procurement. In addition to reverse
auctions e-procurement uses other mechanism. Two
popular ones are group purchasing and desktop purchasing.
– Group purchasing the requirements of many buyers are
aggregated so that they total a large volume, and thus merit
more seller attention. Once buyers’ orders are aggregated,
they can be placed on a reverse auction, and a volume discount
can be negotiated.
– Desktop purchasing. In this variation of e-procurement,
suppliers’ catalogs are aggregated into an internal master
catalog on the buyer’s server, so that the company’s
purchasing agents can shop more conveniently. Desktop
purchasing is most suitable for maintenance, replacement, and
operations (MRO) indirect items, such as office supplies.
 Business-To-Business – B2B (Continued)

 Electronic Exchanges are E-marketplaces in which

there are many sellers and many buyers.
– Vertical distributors for direct materials: These are B2B
marketplaces where direct materials (materials that are inputs to
manufacturing) are traded in an environment of long-term relationship,
known as systematic sourcing.
– Vertical exchanges for indirect materials: Here indirect materials in
one industry are purchased on an “as-needed” basis (called spot
sourcing). Buyers and sellers may not know each other. In such vertical
exchanges, prices are continually changing, based on the matching of
supply and demand.
– Horizontal distributors: These are “many-to-many” e-marketplaces
for indirect (MRO) materials, such as office supplies, used by any
industry. Prices are fixed or negotiated in this systematic sourcing-type
exchange.
– Functional exchanges: Here, needed services such as temporary help
or extra space are traded on an “as-needed” basis (spot sourcing).
Prices are dynamic, and they vary depending on supply and demand.
Business-To-Employees – B2E
Companies are finding many ways to do business electronically
with their own employees. They disseminate information to
employees over the intranet, they allow employees to manage
their fringe benefits and take training classes electronically. Also,
many companies have electronic corporate stores that sell a
company’s products to its employees, usually at a discount.
Some other uses:
 Sales force automation is a technique of using
software to automate the business tasks of sales, including
order processing, contact management, information sharing,
inventory control, order tracking, customer management and
sales forecast analysis.
 E-Commerce Between strategic business units
(SBUs)
 E-Commerce Between and Among Employees
 E-Government

E-government is the use of Internet technology in general and e-

commerce in particular to deliver information and public services to
citizens, business partners and suppliers, and those working in the
public sector.

It can be divided into three major

categories:
 government-to-citizens (G2C)
 government-to-business (G2B)
 government-to-government (G2G)
Consumer-To-Consumer – C2C
Customer-to-customer (C2C) e-commerce refers to e-
commerce in which both the buyer and the seller are individuals
(not businesses). C2C is conducted in several ways on the
Internet, where the best-known C2C activities are auctions.

 C2C Auctions.
 Classified Ads.
 Personal Services.
 Support Services to C2C.
 E-Commerce Support Services
B2B and B2C applications require payments and order fulfillment. Portals
require content, etc.
These services include:
 e-infrastructure (mostly technology consultants,
system developers and integrators, hosting, security, and
networks)
 e-process (mainly payments and logistics)
 e-markets (mostly marketing and advertising)
 e-communities (different audiences and business
partners)
 e-services (CRM, PRM, and directory services)
 e-content (supplied by content providers)
E-Commerce Support Services
Electronic Payments are an integral part of doing business,
whether in the traditional way or online. Unfortunately, in most
cases traditional payment systems are not effective for EC,
especially for B2B.
 Electronic checks (e-checks) are similar to regular checks. They are
used mostly in B2B
 Electronic credit cards make it possible to charge online payments to
one's credit card account.
 Purchasing cards, the B2B equivalent of electronic credit cards.
 Electronic cash (e-cash) appears in three major forms: stored-value
cards, smart cards, and person-to-person payments.
 Electronic Bill Presentment and Payments allow customers to pay
their recurring monthly bills, such as telephone, utilities, credit cards,
etc. online.
 E-wallets are mechanisms that provide security measures to EC
purchasing. The wallet stores the financial information of the buyer,
including credit card number, shipping information, and more.
 Virtual credit cards are a service that allow you to shop with an ID
number and a password instead of with a credit card number.
E-Commerce Support Services
 Mobile Computing
In the traditional computing environment it was necessary to
come to the computer to do some work on it. All computers were
connected to each other, to networks, servers, etc. via wires.

 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.
Ubiquitous Computing – computing anytime anywhere
 Mobile Commerce
M-commerce and m-business is any e-commerce or e-business
activities performed in a wireless environment. It is not merely a
variation on existing Internet services; it is a natural extension of
e-business creating new opportunities.

 Typical Applications include:

– Financial applications
– Inventory management
– Field Service management
– Product locating
– Real Estate
 Mobile Computing Basic Terminology
 Personal digital assistant (PDA). A small portable computer, such as
Palm handhelds and Pocket PC devices.
 Short Message Service (SMS). A technology, in existence since 1991,
that allows sending short text messages.
 Enhanced Messaging Service (EMS). An extension of SMS that is
capable of simple animation, tiny pictures, and short melodies.
 Multimedia Messaging Service (MMS). The next generation of wireless
messaging, this technology will be able to deliver rich media
 Wireless Application Protocol (WAP). A technology that offers Internet
browsing from wireless devices.
 Smartphones. Internet-enabled cell phones that can support mobile
applications.
 Wi-Fi (Wireless Fidelity). Refers to a standard 802.11b which most of the
wireless local area networks are based on.
 Global positioning system (GPS) . A satellite based tracking system that
enables the determination of a GPS device’s location.
 WLAN. Wireless local area network
Mobile Computing – Characteristics

Mobile computing has two major characteristics that differentiate

it from other forms of computing: mobility and broad reach.

 Mobility (and localisation) implies portability based on

the fact that users carry a mobile device everywhere they
go. Therefore, users can initiate real-time contact with
other systems from wherever they happen to be.
 Broad reach is the characteristic that describes the
accessibility of people. They can be reached at any time.

Ubiquitous Computing
Constant connectivity
 Mobile Computing – Attributes
The characteristics of M-commerce, mobility and broad reach break the barriers of
geography and time. Creating unique value added attributes.

 Ubiquity refers to the attribute of being available at any location at

any given time. A mobile terminal in the form of a smartphone or a
PDA offers ubiquity.
 Convenience. It is very convenient for users to operate in the
wireless environment. All they need is an Internet enabled mobile
device such as a smartphone.
 Instant connectivity. Mobile devices enable users to connect easily
and quickly to the Internet, intranets, other mobile devices and
databases.
 Personalization. Personalization refers to customizing the
information for individual consumers.
 Localization of products and services. Knowing the users
physically location at any particular moment is key to offering relevant
products and services.
 Mobile Computing – Drivers
The development of mobile computing and m-commerce is being driven
by number of factors.
 Widespread availability of mobile devices. The number of cell
phones exceeds 1.3 billion
 No need for a PC. The Internet can be accessed via smartphone or
other Internet-enabled wireless devices.
 The handset culture. The widespread use of cell phones
 Vendors are pushing m-commerce. Both mobile communication
network operators and manufacturers of mobile devices.
 Declining prices and increased functionalities.
 Improvement of bandwidth. To properly conduct m-commerce, it is
necessary to have sufficient bandwidth. 3G (third-generation) technology
provides the necessary bandwidth, at a data rate of up to 2 Mbps.
 Mobile Computing – Value Chain
M-commerce is a complex process involving a number of operations and entities
(customers, merchants, mobile operators, etc.).
The key elements in the m-commerce value chain (for delivering content and applications to end users

Link Function Provider

Transport Maintenance and operation of the infrastructure supporting Technology platform
data communication between mobile users and application vendors
providers
Enabling services Server hosting, data backup, and system integration Infrastructure equipment
vendors
Transaction support Mechanisms for assisting with transactions, security, and Application platform
billing vendor
Presentation Conversion of content of Internet-based applications to Application developer
services applications suitable for mobile devices
Personalization Gathering of users’ preferences, information, and devices Content developer
support in order to provide individualized applications
User applications General and specialized applications for mobile users Mobile service provider
Content aggregators Design and operation of portals that offer categorized Mobile portal provider
information and search facilities
 Mobile Computing Infrastructure – Hardware

To conduct m-commerce, one needs devices for data entry and access to the
Internet, applications, and other equipment.

 Cellular phones Cell phones that are Internet-enabled

phones, also known as smartphones.
 Attachable keyboard A larger keyboard attachment.
 Personal digital assistants (PDAs) with Internet access are
now available.
 Interactive pagers Two-way pagers with limited mobile
computing and m-commerce activities on the Internet.
 Screenphones A telephone equipped with a color screen, a
keyboard, e-mail service and Internet capabilities.
 E-mail handhelds Integrated device, which includes a
keypad, e-mail service and Internet capabilities , without the
need to dial into an Internet provider for access.
 There are many other devices that support wireless
operations.
Mobile Computing Infrastructure – Hardware

M-commerce can also require the following hardware which is

essential for wireless connectivity:
 A WAN modem
 A wireless LAN or MAN (metro-area network) adapter.
 A Web server with wireless support
 A WAP gateway
 A communications server
 An application or database server
 An enterprise application server.
 A GPS locator
 Mobile Computing Infrastructure – Software
There is no widely accepted standard for wireless applications. Therefore, software
needs to be customized for each type of device.
Software Description

Microbrowser A browser with limited bandwidth and memory requirements. Provides wireless
access to the Internet

Operating system (OS) for An OS for mobile devices. Examples: Palm OS, Pocket PC, Win CE. Specialized
OS’s: Blackberry and Web browser.
mobile-client
Bluetooth Chip technology for short-range communication among wireless devices. See
bluethooth.com.

User interface Application logic for handheld devices.

Application middleware Provides connecting among applications, databases, and Web-based servers.

Wireless middleware Links wireless networks to application servers.

Wireless Application Protocol A set of communication protocols that enables wireless devices to “talk” to a server
on a mobile network, so users can access the Internet. Specially designed for small
(WAP) screen. (see wapforum.org).

Wireless Markup Language An XML-based scripting language for creating content for wireless systems.

Voice XML An extension of XML designed to accommodate voice.

 Mobile Computing Infrastructure – WWAN’s

At the core of most mobile computing applications are mobile

networks. These are of two general types: the wide area and the local
area. The wide area networks for mobile computing are known as
wireless wide area networks (WWAN).
Communication
Tower Mobile 
Base Station Switching 
Controller Station
(BSC) (MSC)
Mobile Mobile
Network Network

Wireless
transmission
Mobile
Phone
(terminal)

Fixed
Telephone
Infrastructure
Mobile
Phone
 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
analog-based technology, in effect from 1979 to 1992.
 2G. 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 2003
(commercial adoption around 2004-5).
 4G. The expected next generation after 3G. 4G will provide faster
display of multimedia and is expected between 2006 and 2010
(commercial adoption later than 2010.
 Mobile Computing Infrastructure – Protocol’s

Through multiplexing protocols mobile communication system

providers will be able to service extremely large numbers of users.

Three main protocols:

 Frequency Division Multiple Access (FDMA). Used by
1G systems, this protocol gives each user a different
frequency to communicate on.
 Time Division Multiple Access (TDMA). Used with
some of the more popular 2G systems, this protocol
assigns different users different time slots on a given
communications channel.
 Code Division Multiple Access (CDMA). Used with
most 2.5G and 3G systems, this protocol separates
different users by assigning different codes to the
segments of each user’s communications.
 Mobile Computing Infrastructure – WLAN’s

Wireless local area networks (WLAN) - another technology, has been

making its way to the forefront as the market factors impeding its growth
are being addressed. It is like a wired LAN but without the cables
transmitting and receiving data over the airwaves.
 Wireless access point - a transmitter with an antenna,
connected to a wired LAN that provides an Internet connection. (A
wireless access point provides service to a number of users within a small
geographical perimeter known as a “hot spot”)
 Wireless network card incorporated with laptops, desktops, or
PDAs will provide access
 WLAN’s employ the Wi-Fi (wireless fidelity) standard developed by
the IEEE
– 802.11b Speeds up to 11Mbps
– 802.11a and 802.11g Speeds up to 54 Mbps
– Wireless Encryption Protocol (WEP) a built-in security system in Wi-
Fi encrypts the communications between a client machine and a
wireless access point.
Mobile Computing – Financial Services
Mobile financial applications include:
 Banking: offer mobile access to financial and account information.
 Wireless payments: provides mobile phones with a secure
purchasing tools capable of instantly authorizing payments
 Micropayments: electronic payments for small-purchase amounts
(generally less than $10)
 Wireless wallets: Software (e-wallet) that stores an online
shopper’s credit card numbers and other personal information.
 Bill payment services: Paying bills directly from a mobile device
 Brokerage services: stock trades and quotes
 Money transfers: from one account to another

These service have the potential to turn a mobile device into a

business tool, replacing banks, ATMs, and credit cards by allowing a
user to conduct financial transactions any time and from anywhere
 Mobile Computing – Shopping
Shopping from wireless devices enables customers to perform
quick searches, compare prices, use a shopping cart, order, and
view the status of their order using their mobile wireless devices.

Some shopping applications include:

 Restaurant chains enabling consumers to place
an order for pick up or delivery virtually any time,
anywhere.
 eBay offers “anywhere wireless” services as does
Amazon.com
 Purchasing movie tickets by wireless device
 Mobile Computing – Advertising
Knowing the current location of mobile users (using GPS) and their
preferences or surfing habits, marketers can send user-specific
advertising messages to wireless devices.

This location-sensitive advertising, will informing a

user about:
 sales at a specific shop or mall
 today’s specials at a restaurant
 loyalty programs
 and much more

all when a potential buyer is within close proximity.

The most promising avenues of success for wireless advertising
will incorporate it with other advertising media, Web sites or
physical locations.
Mobile Computing – Mobile Portals
These are customer channels, optimized for mobility, that
aggregates and provides content and services to mobile users.

The services provided by mobile portals include:

 News
 Sports
 E-mail
 Entertainment
 Travel information
 Restaurants
 Event information
 Leisure-related services (e.g., games, TV and movie
listings)
 Community services
 Stock trading.
Mobile Intrabusiness and Enterprise Applications

Today’s m-commerce applications are mainly used within

organizations.

 Support Of Mobile Workers: are those working

outside the corporate premises. Service
technician’s, Sales personnel, Delivery workers,
etc.
 Wearable Devices. Employees may be equipped
with a special form of mobile wireless computing
devices
– Camera.
– Screen.
– Keyboard/Touch-panel display.
– Speech translator
Mobile Computing – Enterprise Applications continued

 Job Dispatch. To assign jobs to mobile

employees, along with info about the task.
– transportation (delivery of food, oil, newspapers, cargo,
courier services)
– Utilities measurement (gas, electricity, phone, water)
– Field service (computer, office equipment, home repair)
– Health care (visiting nurses, doctors, social services)
– Security (patrols, alarm installation).
 Supporting Other Types of Work.
– Tractors
– Mystery shoppers
– Collaboration
 Mobile Computing – Intrabusiness Applications

Wireless applications in the non-Internet environment have

been around since the early 1990s.

 Wireless networking, used to pick items out of

storage in warehouses via PCs mounted on forklifts
 Delivery-status updates, entered on PCs inside
distribution trucks
 Collection of data such as competitors’ inventories
and prices in stores using a handheld (but not
networked) device, from which data were
transferred to company headquarters each
evening.
 Taking physical inventories
 Mobile Computing – Mobile B2B

Mobile computing solutions (B2B and supply chain management) enable

organizations to respond faster to disruptions by shifting resources
related to critical events as they occur. The wireless environment has
enhanced these c-commerce transactions.

 By integrating the mobile device into the supply

chain, it is possible to
– make mobile reservations of goods
– check availability of a particular item in the
warehouse
– order a particular product
– provide security access to confidential financial data
– reduce clerical mistakes and improve operations
 Mobile Computing – Mobile B2C
A large number of applications exist that support consumers and
provide personal services.

 B2C transactions
 Personalize Merchandise Notification
 Mobile games
 Hotels services
Mobile Computing – Mobile B2C Continued

 Wireless telemedicine
– storage of data and transferring of digital images
from one location to another
– videoconferencing used for “real-time” consultation
between a patient in one location and a medical
specialist in another.

 Services
– News
– Weather
– Sports
– online language translation
 Mobile Computing – Location-based Commerce

Location-based commerce (l-commerce) refers to the

localization of products and services. From a consumer’s viewpoint,
l-commerce offers safety. From a business supplier’s point of view, l-
commerce offers an opportunity to provide services that meet
customers’ needs.
 The l-commerce services revolve around five key
areas:
– Location: determining the basic position of a person or a
thing (e.g., car or boat).
– Navigation: plotting a route from one location to
another.
– Tracking: monitoring the movement of a person or a
thing (e.g., a package or vehicle).
– Mapping: creating maps of specific geographical
locations.
– Timing: determining the precise time at a specific
location. online language translation
Mobile Computing – L-Commerce Technologies

 Providing location-based services requires the following

location-based and network technologies:
– Position Determining Equipment (PDE). This
equipment identifies the location of the mobile
device. (GPS)
– Mobile Positioning Center (MPC). The MPC is a server
that manages the location information sent from the
PDE.
– Location-based technology. This technology consists
of groups of servers that combine the position
information with geographic- and location-specific
content to provide an l-commerce service.
• Geographic content. Geographic contents consists of
streets, road maps, addresses, routes, landmarks, land
usage, Zip codes, and the like. (GIS)
• Location-specific content. Location-specific content is
used in conjunction with the geographic content to
provide the location of particular services.
 Mobile Computing – L-Commerce Applications

 There are many applications related to Location Based

Commerce:
– Location-based advertising.
• The wireless device is detected, and similar to a pop-up ads on a
PC, advertising is directed towards the PC.
• A dynamic billboard ad will be personalized specifically for the
occupant of an approaching car.
• Ads on vehicles (taxicabs, trucks, buses) will change based on the
vehicles location.
– E-911 emergency cell phone calls
– Telematics and telemetry applications: integration of
computers and wireless communications in order to
improve information flow (OnStar system by GM)
Mobile Computing – L-Commerce Applications
 Mobile Computing – Pervasive Computing

A world in which virtually every object has processing power with wireless
or wired connections to a global network. The user doesn’t have to think
about how to use the processing power in the object; rather, the
processing power automatically helps the user perform a task (Invisible
Computing Everywhere).
 RFID (radio frequency identification) tag attached to
items for sale.
 Active badges worn as ID cards by employees.
 Memory buttons are nickel-sized devices that store
information relating to whatever it is attached to.
 Contextual computing, refers to the process of
understanding the user’s interactions within a valid context, to
better understand what the consumer needs, and what
products or services they might possibly be interested in at
this time. Context awareness refers to capturing a broad
range of contextual attributes to better understand those
needs.
 Mobile Computing – Pervasive Computing (continued)

 Smart homes provide a local Intranet where appliances

within the home communicate with each other and television,
lighting, heating controls and home security are programmed
and monitored by the system.
 Smart Cars have microprocessors controlling the radio,
transmission, remembering your seat position, adjusting the
temperature, making the suspension work better, helping you
see in the dark, and warning when tire pressure is low. In the
shop, the onboard microprocessors are used to diagnose
problems.
 Smart “Things” Several other devices and instruments
can be made to be “smart.”
– Barcodes.
– Auto Identification (Auto-ID)
– RFID: It is used in wireless tollbooth systems, such as E-
Z Pass.
 Mobile Computing – Pervasive Computing (continued)

 Smart Schools. Exploring communication between

students, teachers, and the environment to create a smart
learning environment. (m-learning)
 Intelligent Elder- Care
 Smart Offices.
 Digital Cities.