Prentice Hall, 2003 1

ELC 200

Day 19

Prentice Hall, 2003 2

Agenda

Questions from last Class?Quiz 2 rescored

5 A’s, 6 B’s, 3 C’s Assignment 5

Due April 17Questions?Two more assignments left

Operations & Finance EBiz plan and presentations

Due may 8 @ 8AMMore to come

Two more QuizzesApril 17 & May 4

Today's’ discussion is on Mobile Commerce

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Shopping from Wireless Devices

Buy.com allows shopping from wireless devicesIn 5-10 years most businesses will be wirelessOnline stores will become showrooms

View productsPurchase them using handheld devicesPossibly enhanced by bar code scanners Customization may be possible

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Exhibit 8.7Mobile Shopping Supported by CRM

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Targeted Advertisement

Personalization of services and enhanced user interface for wireless Web pages from barnesandnoble.com

Knowing user preferences or surfing habits user-specific advertising messages to the location of mobile users Using GPS marketers can send location-sensitive messages can be sent

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Targeted Advertisement (cont.)

Get paid to listen to advertisements—listen to a 10–second ad before you dial your cell phone, and get 2 minutes of free long-distance time

Program flopped in the U.S.SingTel of Singapore recouped its initial investment from ad revenues in about a year

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Targeted Advertisement (cont.)

Advertisement strategies and guidelines—Wireless Advertising Association (waaglobal.org) is trying to establish wireless ad guidelines

Opt-in ad programs involving mobile message alerts Addressing issues like spamming and unethical strategies:

Confirmed opt-ins Personally identifiable informationPush advertising

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Wireless Advertising in Action

GPS helps target users from their locationVindigo.com—places to go and things to do in your areaGeePS.com—location-based start-up sent coupons to customers cell phonesGo2Online.com—locations-based Web domain helps mobile travelers find anything (e.g., the nearest oil change)

http://www.go2online.com

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Supporting Customers & Business Partners(Consumer Services)

Using voice portals in marketing and customer service

Use vendor’s voice portal to check status of deliveries to a job siteService technicians provided with diagnostic information, enabling them diagnosis of difficult problemsSales people check inventory status during a meeting to help close a sale

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Supporting Customers & Business Partners(Consumer Services) [cont.]

Using mobile portalsMobile portal—a customer interaction channel that aggregates content and services for mobile users

Portals charge for their services (per service or monthly fee):

Public mobile portals (e.g., Imode in Japan)Corporate portals

Serve a corporation ’s customers and/or suppliersE.g., major airline portals

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Supporting Mobile Employees

Smartphones and hand-held devicesWearable wireless devices—mobile wireless computing devices for employees who work on buildings and other difficult-to-climb places

Cameras Keyboard

ScreenTouch-panel display

http://www.media.mit.edu/wearables/index.html

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Wearable Devices for Bell Canada Workers

Wearable technologyPowerful computer for pocket Keyboard attached to the vestFlatpanel display screen at the waistVideo camera attaches to his safety hat Cell phone is attached and connected to the computerBattery pack against the back

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Wearable Devices (cont.)

Wearable devices enable workers to access:

Work ordersRepair manuals

This system was developed by Xybernaut (xybernaut.com)Problems with the technology are weather related

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Supporting Mobile Employees (cont.)

Job dispatchTransportation (delivery of food, oil, newspapers, cargo, courier services, tow trucks)Taxis (already in use in Korea and Singapore)Utilities (gas, electricity, phone, water)Field service (computer, office equipment, home repair)Health care (visiting nurses, doctors, social services)Security (patrols, alarm installation)

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Supporting Mobile Employees (cont.)

Sales force automation (SFA) toolsIntegrate software aimed at m-commerce applicationsEquipped with smartphones providing easy access to customer data at the central office

Contact management informationProduct and spare part availabilityDeal tracking

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http://www.riverrun.com/solutions/

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Non-Internet Intrabusiness Applications

Wireless networking used for item picking in warehousesDelivery and order status updatesOnline dispatching

Online diagnosis support from remote locationsParts ordering/inventory queries

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Non-Internet Intrabusiness Applications (cont.)

Mobile shop-floor quality control systems enable

Voice reports by inspectorsData collection from facilitiesTransmission to a central processor

Salespeople connect to corporate networksRemote database queries

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Internet-BasedIntrabusiness Applications

Applications implemented inside enterprises, some examples:

Sonera (Finland): electronic funds transfer (EFT) of paychecksChicago’s United Center: inventory can be taken in a matter of hoursFedEx and UPS: access Web, e-mail, databases, intranets, etc.

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Internet-BasedIntrabusiness Applications (cont.)

Bertelsmann AG: gives junior-level executives wireless access to a company portal, JuniorNet, accessible from almost anywhereKemper Insurance Company: lets property adjusters report from the scene of an accidentU.S. Internal Revenue Service: equipping field employees with mobile devices that allows audits to be conducted anywhere, anytime

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Exhibit 8.9Automated Wireless Workflow Applications

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Exhibit 8.10Intelligent Office Connected by Wireless LAN

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Mobile B2B and Supply Chain Applications

Both sell-side and buy-side of ERPUnified messaging makes user’s device less of an issue

Telemetry drives supply chain efficiency and productivity through automation of:

Data captureImproved billing timeliness and accuracyReduced overheadIncreased customer satisfaction

Collaboration among members of the supply chain is facilitated by mobile capabilities

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Mobile Consumer and Personal Service Applications

Mobile gaming devicesPDAs (Handspring’s Visor) with Flash RAM cardNintendo’s Game Boy AdvanceSony’s PocketStationSega’s portable device connected to Dreamcast

Mobile gamblingGermany’s online lottery company fluxx.com available via mobile terminalsHong Kong, betting on horse races via cell phones is popular

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Mobile Consumer and Personal Service Applications (cont.)

Mobile entertainmentMusicVideo—real-time streaming video (packetvideo.com)

Hotels—hotel guests equipped with Bluetooth-enabled mobile devices are instantly recognizedIntelligent homes and appliances

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Exhibit 8.13Intelligent Home Connected by Wireless LAN

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Mobile Consumer and Personal Service Applications (cont.)

Wireless telemedicine—use of mobile telecommunications infrastructures and multimedia technologies to provide medical information and deliver health care services remotelyOther services for consumers

Providing news, weather, and sports reportsOnline language translationsInformation about tourist attractions (hours, prices)Emergency services

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Mobile Consumer and Personal Service Applications (cont.)

Non-Internet consumer applicationsSmart cards used in transportation

“Contactless” cards (proximity cards) used to pay bus and subway fares and road tolls

Amplified remote-sensing cards have an RF (radio frequency) of up to 30 meters used for toll collection

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Highway 91 Project (cont.)

Six express toll lanes along a 10–mile stretch in the median of the existing Highway 91

Express lane system has only one entrance and one exit, and it is totally operated with EC technologies

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Highway 91 Project (cont.)

The system works:1. Only prepaid subscribers can drive on

the road2. Large sign over the toll way tells drivers

current fee for cruising the express lanes3. Sensors in the pavement let the toll way

computer know that a car has entered; the car does not need to slow or stop

4. AVI makes radio contact with a transceiver installed above the lane

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Highway 91 Project (cont.)

The transceiver relays the car’s identity to the control center, where a computer calculates the fee for that day’s tripSurveillance cameras record the license numbers of cars without AVIs—can be stopped by police at the exit or fined by mailVideo cameras along the toll way enable managers to keep tabs on trafficSystem accesses the driver’s account and the fare is automatically deducted from the driver’s prepaid account

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Highway 91 Project (cont.)

System saves commuters between 40 and 90 minutes each day, so it is in high demandUse of the same AVIs for other purposes:

Used in paid parking lotsSomeday you may be recognized when you enter the drive-through lane of McDonalds and a voice asks you, “Mr. Smart, do you want your usual meal today?”

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Location-Based Commerce

Location-based commerce (L-commerce)—e-commerce applications provided to customers based on a user’s specific locationLocation-based technologies

Global positioning systems—a wireless system that uses satellites to enable users to determine their position anywhere on the earthGeographical information systems (GIS)—relates longitude and latitude of GPS into place or address (mapinfo.com)GPS on handsets—stand-alone units for tracking applications

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Exhibit 8.14Location-Based Services Involving Maps

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Exhibit 8.15GPS System

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L-Commerce Applications (cont.)

E-911—Calls from cellular phones to providers of emergency services

Wireless carriers must provide feature that allows them to identify number and location of the userMobile 911 calls must be forwarded immediately to the appropriate agency

Automatic crash notification (ACN)—device (now experimental) that will automatically notify police of a vehicular accident

http://www.theautochannel.com/news/2002/08/05/145060.html

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Telematics and Telemetry Applications

Telematics—integration of computers and wireless communications to improve information flow using the principles of telemetry

GM OnStar system—cellular phone and PDA are integrated to provide personal information management, mobile Internet services, entertainment on the vehicle vehicle dashboard http://www.onstar.com/ Sophisticated text-to-speech and voice recognition capabilities minimize driver distraction

Hands-off cell phone

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Telematics and Telemetry Applications (cont.)

Use as a remote vehicle self-diagnostics toolDaimler-Chrysler and Volvo experimented with installation of GSM chip sets in cars

Monitor performance and to provide an early warning system for potential problemsChip sends a message to the manufacturer indicating what the problem is Manufacturer’s system analyzes various data and provides a fix (via a software tool)

Developing faults found before they become critical and continuous operation of the car can be ensured

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Barriers to L-Commerce

The accuracy of some of the location technologiesThe cost-benefit justificationM-spam

Especially when the receiver pays

The bandwidth of GSM networks

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Limitations of M-Commerce

Usability problemUsability of a site is critical to attract attention and retain user stickinessEffectiveness, efficiency, satisfactionSome mobile devices are found to be ineffectiveCustomers want to find exactly what they are looking for, easily and quickly, not possible in the 2G text-based environmentMore and faster multimedia will be available as 3G spreads

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Technical Limitations

Lack of standardized security protocol

Security methodology needs to be incorporated in mobileCustomer confidence is low

Insufficient bandwidthLimits the extent to which mobility can be viewed commodity

3G licensesAuctioned by governmentsCertain countries cannot be served by these devices

Transmission & power consumption limitations

Multipath interferenceWeather and terrain problemsDistance-limited connections

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Technical Limitations (cont.)

WAP limitationsSpeed—in 2002 connections to WAP sites are still too slowCost—fees for mobile phone users are still too highAccessibility—as of spring 2002, fewer than 50,000 WAP-accessible sites worldwide (must be written in WML)

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Technical Limitations (cont.)

Potential health hazardsFear of radiationUnsafe to drive and use wireless phoneCell phones may interfere with sensitive medical devices (pacemakers)Lawsuits relating to the potential health hazards of wireless devices have already been filed—public is advised to adopt a precautionary approach in using mobile phones (earphone device)

http://www.fda.gov/cellphones/qa.html http://www.fcc.gov/cgb/consumerfacts/mobilephone.html

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Implementing M-Commerce

Basic (fixed) feesPoint-of-traffic feesTransaction feesContent and service charges

Payment clearingHosting feesCertification (PKI) fees

Revenue models

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Implementing M-Commerce (cont.)

Consumer confidence and trustCustomers love free or inexpensive services like those offered by iModeCustomers not willing to pay large amounts of money for services unless they trust the product/vendorConfidence should increase with reliable payment mechanismsResearch is being conducted in this area

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Implementing M-Commerce (cont.)

M-commerce value chainInvolves many partnersSuccess depends on

Coordination among participantsSufficient compensation for all

Use ASP to deliver m-commerce orLarge companies contract other vendors to complement their services