Chapter 10
Mobile Commerce
and Pervasive Computing
Learning Objectives
1. Discuss the characteristics and
attributes of m-commerce.
2. Describe the drivers of m-commerce.
3. Understand the technologies that
support m-commerce.
4. Describe wireless standards and
transmission networks.
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Learning Objectives (cont.)
5. Discuss m-commerce applications in
finance, advertising, and provision of
content.
6. Describe the applications of mcommerce within organizations.
7. Understand B2B and supply chain
applications of m-commerce.
8. Describe consumer and personal
applications of m-commerce.
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Learning Objectives (cont.)
9. Describe some non-Internet mcommerce applications.
10. Describe location-based commerce.
11. Discuss the key characteristics and
current uses of pervasive computing.
12. Describe the major inhibitors and
barriers of m-commerce.
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Nextbus:
A Superb Customer Service
The Problem
San Francisco buses have difficulty
keeping up with the posted
schedule, especially during rush
hours
The scheduled times become
meaningless
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Nextbus (cont.)
The Solution
San Francisco implemented a system
called NextBus (nextbus.com)
The system tracks public
transportation buses in real time
NextBus calculates the estimated
arrival time of the bus to each bus
stop on the route
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Nextbus (cont.)
Arrival times are displayed in real
time on:
Internet-enabled wireless device
The Internet and on a public screen at
each bus stop
GPS satellites let the NextBus
information center know where a
bus is located making it possible to
calculate arrival times
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Nextbus (cont.)
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Nextbus (cont.)
The Results
Worries about missing the bus are
diminished
A bus company can also use the
system to improve scheduling,
arrange for extra buses when
needed, and make its operations
more efficient
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Nextbus (cont.)
What we can learn…
location-based e-commerce, a major part
of mobile commerce
EC services are provided to customers
wherever they are located
exemplifies pervasive computing—services
are seamlessly blended into the
environment without the user being aware
of the technology behind the scenes
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Mobile Commerce
Mobile commerce (m-commerce,
m-business): Any e-commerce done
in a wireless environment, especially
via the Internet
A natural extension of e-business
Mobile devices create an opportunity
to deliver new services to existing
customers
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Mobile Commerce Generations
1G: The first generation of wireless
technology, which was analog based
2G: The second generation of digital
wireless technology; accommodates mainly
text
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Mobile Commerce
Generations (cont.)
2.5G: Interim wireless technology that
can accommodate limited graphics
3G: The third generation of digital
wireless technology; supports rich
media such as video clips
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Mobile Commerce
Generations (cont.)
4G: The expected next generation
of wireless technology
Personal digital assistant (PDA): A
handheld wireless computer
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Mobile Commerce (cont.)
Short Message Service (SMS):
Technology that allows for sending
of short text messages on some
cell phones
Enhanced Messaging Service (EMS):
An extension of SMS capable of simple
animation, tiny pictures, and short
tunes
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Mobile Commerce (cont.)
Multimedia Messaging Service (MMS):
The next generation of wireless
messaging; will be able to deliver rich
media
Smartphone: Internet-enabled cell
phones that can support mobile
applications
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Mobile Commerce (cont.)
Twelve applications of m-commerce
Mobile financial
applications
(B2C, B2B)
Mobile
advertising (B2C)
Mobile inventory
management
(B2C, B2B)
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Proactive service
management
(B2C, B2B)
Product locating
and shopping
(B2C, B2B)
Wireless
reengineering
(B2C, B2B)
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Mobile Commerce (cont.)
Twelve applications of m-commerce
Mobile auction or
reverse auction
(B2C)
Mobile
entertainment
services (B2C)
Mobile office
(B2C)
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Mobile distance
education (B2C)
Wireless data
center (B2C,
B2B)
Mobile
music/music-ondemand (B2C)
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Mobile Commerce:
Attributes and Benefits
Specific attributes of m-commerce
Mobility
Broad reach
Benefits of value-added attributes
Ubiquity
Convenience
Instant connectivity
Personalization
Localization of products and services
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Mobile Commerce:
Characteristics
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Mobile Commerce (cont.)
Drivers of m-commerce
Widespread availability of devices
No need for a PC
The handset culture
Vendors’ push
Improvement of bandwidth
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Mobile Commerce (cont.)
M-commerce value chain
Transport
Enabling services
Transaction support
Presentation services
Personalization support
User applications
Content aggregators
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Mobile Computing
Infrastructure
M-commerce hardware
Cellular (mobile) phones
Attachable keyboard
PDAs
Interactive pagers
Screenphones
A telephone equipped with a color screen,
possibly a keyboard, e-mail, and Internet
capabilities
E-mail handhelds
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Mobile Computing
Infrastructure (cont.)
Required infrastructure hardware
Suitably configured wireline or wireless
WAN modem, wireless LAN adapter, or
wireless MAN (metro-area network)
adapter
A Web server with wireless support, a WAP
gateway, a communications server, and/or
a mobile communications server switch
(MCSS)
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Mobile Computing
Infrastructure (cont.)
An application or database server
with application logic and a business
application database providing
e-commerce functionality
A GPS locator that is used to
determine the location of the person
carrying the mobile computing
device
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Mobile Computing
Infrastructure (cont.)
Software
Microbrowsers
Wireless software designed with limited
bandwidth and limited memory
requirements
Mobile-client operating system
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Mobile Computing
Infrastructure (cont.)
Bluetooth
Chip technology that enables voice and
data communications between many
wireless devices through low-power,
short-range, digital two-way radio
frequencies
Mobile application user interface
Back-end legacy application
software
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Mobile Computing
Infrastructure (cont.)
Application middleware
Wireless middleware
Wireless Application Protocol
A set of communications protocols
designed to enable different kinds of
wireless devices to talk to a server
installed on a mobile network so users
can access the Internet
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Mobile Computing
Infrastructure (cont.)
Wireless Markup Language
Scripting language used for creating
content in the wireless Web
environment; based on XML, minus
unnecessary content to increase speed
Voice XML
An extension of XML designed to
accommodate voice
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Mobile Computing
Infrastructure (cont.)
Mobile networks
Subscriber Identification Module
(SIM) card: An extractable storage
card used for identification,
transaction processing, and the like
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Mobile Computing
Infrastructure (cont.)
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Mobile Computing
Infrastructure (cont.)
Multiplexing protocols are used to
service extremely large numbers of
users given limited communication
bandwidth
Frequency Division Multiple Access
(FDMA)
Time Division Multiple Access
(TDMA)
Code Division Multiple Access
(CDMA)
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Mobile Computing
Infrastructure (cont.)
Wireless LAN (WLAN): LAN without the
cables; used to transmit and receive
data over the airwaves
Wireless access point: An antenna
connecting a mobile device (laptop or
PDA) to a wired LAN
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Mobile Computing
Infrastructure (cont.)
802.11b: Standard, developed by the
IEEE, on which most of today’s WLANs
run; WLANs employing this standard
have communication speeds of 11
mbps
Wireless fidelity (Wi-Fi): Another name
for the 802.11b standard on which
most WLANs run
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Mobile Computing
Infrastructure (cont.)
M-commerce security issues
Physical security
a stolen device can provide the thief with
valuable data and digital credentials
Transactional issues
transactions are routed over a public
network
Post-transaction issues
some method of proving that a particular
transaction has occurred
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Mobile Computing
Infrastructure (cont.)
SIM-based authentication
usually implemented as a smart card
containing an authentication key
along with other vital information
about the subscriber
PIN number protects the cell phone
against illegal use if it happens to be
stolen or lost
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Mobile Computing
Infrastructure (cont.)
Wireless Transport Layer Security
(WTLS): Communication protocols that
enable encrypted communications
between a mobile device and the WAP
gateway and support the key elements
of electronic payment systems
Wireless identity module (WIM): A
smart card device that can be used in
combination with WTLS
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Mobile Computing
Infrastructure (cont.)
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Mobile Computing
Infrastructure (cont.)
Voice systems for m-commerce
Hand- and eyes-free operations
Disabled people can use voice commands
Voice terminals are designed for
portability
Voice terminals are more rugged than
keyboards
Communication is about two-and-a-half
times faster talking than typing
Speaking results in fewer data entry errors
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Mobile Computing
Infrastructure (cont.)
Interactive voice response (IVR): A
computer voice system that enables
users to request and receive
information and to enter and change
data through regular telephone lines
or through 1G cell phones
Voice portal: A Web site with an audio
interface that can be accessed through
a telephone call
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Mobile Financial Applications
Mobile banking
A large percentage of banks offer
mobile access to financial and
account information
The uptake of mobile banking has
been minimal
Surveys indicate there is strong
latent demand for these offerings
that is waiting for the technology
and transmission speeds to improve
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Mobile Financial Applications (cont.)
Wireless electronic payment systems
Wireless payment systems
transform mobile phones into
secure, self-contained purchasing
tools capable of instantly
authorizing payments over the
cellular network for goods and
services
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Mobile Financial Applications (cont.)
Micropayments: Electronic payments
for small-purchase amounts (generally
less than $10)
Wide-ranging applications, such as
making payments to parking
garages, restaurants, grocery stores,
and public utilities
Success depends on the costs of the
transactions
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Mobile Financial Applications
(cont.)
M-wallet (mobile wallet): A wireless
wallet that enables cardholders to
make purchases with a single click
from their wireless device
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Mobile Financial Applications:
Bill Payments
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Mobile Financial Applications:
Bill Payments (cont.)
Bill payments
A number of companies are now
providing their customers with the
option of paying their bills directly
from a cell phone
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Mobile Shopping, Advertising,
and Content Providing
Shopping from wireless devices
Wireless shoppers are supported by
services similar to those available
for wireline shoppers
Cell phone users also can participate
in online auctions (eBay and
Amazon.com)
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Mobile Advertising (cont.)
Targeted advertising
Knowing the current location of
mobile users (using GPS) and their
preferences or surfing habits,
marketers can send user-specific
advertising messages
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Mobile Advertising (cont.)
Advertisements can also be location
sensitive, informing a user about
various ongoing special sales in
shops, malls, and restaurants close
to where a potential buyer is
SMS messages or short paging
messages can be used to deliver
these ads to cell phones and pagers,
respectively
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Mobile Advertising (cont.)
Getting paid to listen to ads
Singapore, thousands of people
subscribed to the free minutes in
exchange for listening to the ads
Future of wireless advertising
Wireless advertising initiatives to
date have all been “trials”
Wireless ads will be incorporated
with other advertising media
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Mobile Advertising and
Content Providing (cont.)
Mobile portal: A customer interaction
channel that aggregates content and
services for mobile users
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Mobile Intrabusiness
and Applications
Support for mobile employees
Mobile employees need the same
corporate data available to
employees working inside the
company’s offices
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Mobile Intrabusiness
and Applications (cont.)
Wearable devices: Mobile wireless
computing devices for employees who
work on buildings and other difficultto-climb places
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Mobile Intrabusiness
and Applications (cont.)
Examples of wearable devices
Cameras
Screen
Keyboard
Touch-panel display
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Mobile Intrabusiness
and Applications (cont.)
Job dispatch
nonvoice mobile services can be used to
assign jobs to mobile employees, along
with detailed information about the task
Target areas
Transportation
Taxis
Utilities
Field services
Health care
Security
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Mobile Intrabusiness
and Applications (cont.)
Customer support
Mobile access extends the reach of CRM—
both inside and outside the company, to
employees and partners alike on a 24/7
basis
Voice portal technology can be connected
to legacy systems to provide enhanced
customer service or to improve access to
data for employees
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Mobile Intrabusiness
and Applications (cont.)
Non-internet intrabusiness applications
Wireless networking
Delivery and order status updates
Online dispatching, online diagnosis
support from remote locations, and
parts ordering/inventory queries
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Mobile Intrabusiness
and Applications (cont.)
Mobile shop-floor quality control
systems that enable voice reports by
inspectors, data collection from
facilities, and transmission to a
central processor
A corporate wireless network
Remote database queries regarding
order status or product availability
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Mobile Intrabusiness
and Applications (cont.)
Internet-based intrabusiness
applications
Monthly pay slips as SMS messages
sent to mobile phones
Mobile inventory systems
Web-enabled wireless devices for
express delivery companies
Property adjusters send pictures and
report from the scene of an accident
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Mobile B2B and
Supply Chain Applications
Mobile computing solutions enable
organizations to:
Respond faster to supply chain
disruptions
Proactive adjustment of plans or
shifting resources related to critical
supply chain events as they occur
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Mobile B2B and
Supply Chain Applications (cont.)
Wireless telemetry is an integrated
messaging system that combines:
wireless communications
vehicle monitoring systems
vehicle location devices
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Mobile B2B and
Supply Chain Applications (cont.)
Technology enables:
Large-scale automation of data
capture
Improved billing timeliness and
accuracy
Reduced overhead associated
with the manual alternative
Increased customer satisfaction
through service responsiveness
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Mobile Consumer and
Personal Service Applications
Mobile games
With more than 1 billion cell phones
in use today the potential audience
for mobile games is substantially
larger than the market for other
platforms
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Mobile Consumer and
Personal Service Applications (cont.)
Games can be programmed directly
into the phone’s chipset and shipped
with the phone
WAP games are played by accessing
the game provider’s mobile or Web
portal
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Mobile Consumer and
Personal Service Applications (cont.)
Mobile entertainment
The availability of portable MP3
players has lead to the development
of music devices integrated with
mobile phones
With higher bandwidth, music
vendors can offer instant delivery of
songs from their music libraries for
online purchase
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Mobile Consumer and
Personal Service Applications (cont.)
Handset vendors have cell phones
that enable users to send pictures
from one device to another
As the 3G handsets hit the market,
mobile devices will begin to support
the downloading and real-time
playback of audio and video clips
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Mobile Consumer and
Personal Service Applications (cont.)
Hotels
Hotels now offer their guests inroom, high-speed Internet
connections
A small number of hotels are testing
the use of this technology for checkin and check-out, for making
purchases from hotel vending
machines and stores, for tracking
loyalty points
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Mobile Consumer and
Personal Service Applications (cont.)
Wireless telemedicine
The storage and forwarding of
digital images from one location to
another
Videoconferencing used for realtime consultation with a patient in
one location and a medical specialist
in another
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Mobile Consumer and
Personal Service Applications (cont.)
New and novel application
opportunities:
On wearable heart monitors linked to
cell phones
Portable devices that transmit the vital
signs of avalanche victims
Mobile communications used to attend
to medical emergencies occurring on
planes
Mobile telesurgery applications that
enable surgeons in one location to
remotely control robotic arms for
surgery in another location
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Location-Based Commerce
Location-based commerce (lcommerce): M-commerce transactions
targeted to individuals in specific
locations, at specific times
L-commerce offers:
Safety
Convenience
Productivity
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Location-Based Commerce
(cont.)
L-commerce basic services revolve
around five key areas:
1.
2.
3.
4.
5.
Location
Navigation
Tracking
Mapping
Timing
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Location-Based Commerce (cont.)
Necessary location-based and network
technologies:
Position-determining equipment
(PDE)
Mobile positioning center (MPC)
Location-based technology
Geographic content
Location-specific content
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Location-Based Commerce (cont.)
Global positioning system (GPS): A
wireless system that uses satellites to
enable users to determine their
position anywhere on the earth
GPS handsets can be:
stand-alone units
plugged into a mobile device or
completely embedded in one
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Location-Based Commerce (cont.)
Geographical information system
(GIS): System that integrates GSP
data onto digitized map displays
Wireless 911 (e-911): Calls from
cellular phones to providers of
emergency services
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Location-Based Commerce
(cont.)
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Location-Based Commerce (cont.)
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Location-Based Commerce (cont.)
Automatic crash notification (ACN):
Device that automatically sends the
police the location of a vehicle that has
been involved in a crash
Telematics: The integration of
computers and wireless
communications to improve
information flow using the principles
of telemetry
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Location-Based Commerce (cont.)
Barriers to l-commerce
Accuracy
The cost-benefit justification
The bandwidth of GSM networks
Invasion of privacy
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Pervasive Computing
Pervasive computing: Invisible,
everywhere computing that is
embedded in the objects around us
Also know as:
ubiquitous computing
embedded computing
augmented computing
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Pervasive Computing (cont.)
Embedded computers do not intrude
on our consciousness
Radio frequency identification
(RFID): Generic term for
technologies that use radio waves to
automatically identify individual
items
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Pervasive Computing (cont.)
Properties of pervasive computing
Invisible devices
Embedded microchips
Always on
Ubiquitous network
Life-enhancing applications
Consumer-centric solutions
Increasing productivity
Long-term vision
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Pervasive Computing (cont.)
Technical foundation of pervasive
computing
Everyday objects have to contain
embedded microprocessors
A ubiquitous network is needed to
connect these microprocessors
The microprocessors must be able to
communicate with the ubiquitous
network
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Pervasive Computing:
Applications
Smart homes—home automation
systems support:
Lighting
Energy management
Water control
Home security and communications
Home theater
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Pervasive Computing:
Applications (cont.)
Smart appliances
Internet-ready appliance that can be
controlled by a small handheld
device or desktop computer via a
home intranet or the public Internet
Home Alliance
(internethomealliance.com)
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Pervasive Computing:
Applications (cont.)
A networked appliance could provide a
manufacturer and the owner with
information that could be used for:
Capturing or reporting on the
operation, performance, and usage
of a device
Diagnostic purposes—monitoring,
troubleshooting, repairing, or
maintaining the device
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Pervasive Computing:
Applications (cont.)
Improving or augmenting the
performance or features of a device
Controlling and coordinating devices
into a sequenced pattern of behavior
Profiling and behavior tracking of a
device
Monitoring consumption
Tracking and optimizing the service
support system
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Pervasive Computing:
Applications (cont.)
Smart cars—increased use of
automobile microprocessors
sophisticated engine controls to meet
emissions and fuel-economy standards
advanced diagnostics; simplification of the
manufacture and design of cars
reduction of the amount of wiring in cars
new safety features
new comfort and convenience features
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Pervasive Computing:
Applications (cont.)
Growing trend is connecting car
microprocessors to mobile networks
for support services including:
Emergency assistance
Driving directions
E-mail
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Pervasive Computing:
Applications (cont.)
Services provided by OnStar
(onstar.com) include:
Air Bag Deployment Notification
Voice-activated nationwide wireless
calling service
Emergency services and roadside
assistance
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Pervasive Computing:
Applications (cont.)
Personal Concierge, which plans
entire trips
Route Support
Stolen Vehicle Tracking
Remote Door Unlock
Remote Diagnostics
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Pervasive Computing:
Applications (cont.)
Smart “things”
Universal Product Code (UPC)—
barcodes
used at various points in the supply
chain to track inventory and shipments
and to identify items at the point of sale
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Pervasive Computing:
Applications (cont.)
Auto Identification Center (Auto-ID): Joint
partnership among global companies and
research universities to create an Internet
of Things
Internet of Things: A network that
connects computers to objects in order to
be able to track individual items as they
move from factories to store shelves to
recycling facilities, providing near-perfect
supply chain visibility
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Pervasive Computing: RFID
Key technical elements of the Auto-ID
system include:
RFID
Electronic Product Code (EPC)
Universal standard for product
identification, stored on an RFID tag
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Pervasive Computing (cont.)
Object Name Service (ONS)
Service that points a computer to an
address on the Internet where
information about a product is stored
Product Markup Language (PML)
Proposed new markup language, based
on the XML standard, that specifies how
a product’s name, category,
manufacture date, expiration date, and
the like will be represented in a
computer
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Pervasive Computing (cont.)
Savant
Software created by the Auto-ID center
that gathers information from RFID
readers and passes it on to various
business applications
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Pervasive Computing (cont.)
Auto-ID at work
Adding identity to products
Adding identity to cases
Reading tags
Savant at work
PML at work
Efficiency in distribution
Efficiency in inventory
Overstocking eliminated
Consumer convenience
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Inhibitors and Barriers
to L-Commerce
Usability problem—three dimensions:
Effectiveness
Efficiency
Satisfaction
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Inhibitors and Barriers
to L-Commerce (cont.)
Mobile visitors to a Web site are
paying premium rates for connections
and are focused on a specific goal
To find exactly what they are looking
for easily and quickly customers need
more than text-only devices with small
screens
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Inhibitors and Barriers
to L-Commerce (cont.)
Technical limitations
Lack of a standardized security
protocol
Insufficient bandwidth
Transmission and power
consumption limitations
WAP limitations
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Inhibitors and Barriers
to L-Commerce (cont.)
Potential health hazards
The issue of cellular radio frequency
emissions and the fear that radiation from
wireless mobile devices may induce cancer
has been debated for several years
Drivers using mobile telephones have an
increased chance of being involved in a
traffic accident
Use of cell phones may interfere with
sensitive medical devices
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Managerial Issues
1.
2.
3.
4.
What’s our timetable?
Which applications first?
Is it real or just a buzzword?
Which system to use?
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Summary
1. Characteristics and attributes of mcommerce
2. Drivers of m-commerce
3. Supporting technologies
4. Wireless standards and technologies
5. Finance, advertising, and contentproviding applications
6. Intrabusiness applications
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Summary (cont.)
7. B2B applications
8. Consumer applications
9. Non-Internet applications
10. L-commerce
11. Pervasive computing
12. Limitations of m-commerce
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