Ch 14. Diverse E-Commerce:

M-Commerce and Ubiquitous

Rev1: June, 2015

Euiho (David) Suh, Ph.D.

POSTECH Strategic Management of Information and Technology Laboratory(POSMIT: http://posmit.postech.ac.kr)

Dept. of Industrial & Management EngineeringPOSTECH

Contents1 M-Commerce

1) Introduction

2) Value Chain

3) Attributes of M-Commerce

4) Characteristics of M-Commerce

5) Mobile Computing Infrastructure

6) Other Issues

2 Ubiquitous

1) Basic Concepts on Ubiquitous Computing

2) Capabilities of Ubiquitous Computing

3) Generic Features of Ubiquitous Computing

4) U-Commerce

3 Case Study

3

Definition of Mobile Commerce (M-Commerce)

■ M-Commerce

– Any transaction conducted over a mobile telecommunications network– Representing a subset of all e-commerce transactions both in business-to-consumer

and the business-to-business area

1. M-Commerce1) Introduction

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Differences between M- and E-Commerce

■ A permanent factor that makes difference between M- and the rest of the E- commerce is…

– The possibility of the user to engage anywhere and anytime in M-commerce transac-tions;for some this is the crucial difference

■ The main functional distinction between the E-commerce in general and M-commerce are…

– Dynamic Location Based Services (LBS) that use the actual location of the terminal on earth in one way or the other to perform the transaction

– cf.) Ordering taxi in a foreign city based on the positioning of the terminal and the taxi

■ Further difference are…– The properties of the truly portable terminals as compared to PCs or laptops:

The simple UI facilities, slower processor, smaller memory resources, and tiny energy reserves

■ A fourth main difference is…– The relatively small wireless link transmission capacity offered to the terminals,

although the capacity is increasing with every network generation

1. M-Commerce1) Introduction

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Classes of M-Commerce Applications 1. M-Commerce1) Introduction

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Mobile Commerce Value Chain

Content Creation

• Creation of original content,:~ text (e.g. news, stock prices)~audio (e.g. voice, music)~ graphics (e.g. logos, photos)~ video (e.g. movies, car-toons)

• Content firms, including news (e.g. CNN), designers, music, studios, photographers, writers

Content Packaging

• Processing digital contents for consumption – formaring edit-ing, customizing and coaching

• Value added mobile sites, e.g.:~ Finance (StockSmart, ELoan)~Travel (Kizoom, Last ?)~ Games (Space, Wapscallio)~ News, Entertainment, Shop-ping

Market Making

• Content and service selection:~ Communication, e.g. email~ Personal Content & alerts~ PIM, ~ Location-specific infor

• Mobile portals, inc. tecos (e.g. Genie), web portals (e.g. Ya-hoo!), and new ? (e.g. Room33)

Mobile Transport

• Transmission technologies (e.g. GSM, GPRS, EDGE, UMTS)

• Technology suppliers (esp. Er-icsson, Siebels, Nokia, Mo-torola, Lucent)

• Network Operators (e.g. NTT DoCoMo, France Telecom, Telia, BT)

Mobile Services & Delivery Support

• Mobile service technologies (e.g. SMS, iMode, WAP, SAT)

• Internet connection and server plagform (inc. WAP gateways)

• Payment systems (e.g. SIM-based e-cash, Pay-by-GSM)

• Security (e.g. WTLS, PKT)

Mobile Interface & Appli-cations

• Microbrowers (e.g. UP brower, Compact Netfront)

• PDA OS (Windows CE, Pal-mOS, EPOC32)

• Application Development (e.g. WML, cHTML, VXVL, SMS)

• Device vendors (e.g. Nokia)

Con-tents

Infra-Struc-ture

&Ser-vices

Source : The mobile commerce value chain: analysis and future developments, Stuart J. Barnes, International Journal of Information Management 22 (2002) 91–108

Users/Con-

sumers

1. M-Commerce2) Value Chain

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Specific Attributes of M-Commerce

■ Attributes of m-commerce and its economic advantages– Mobility

Users carry cell phones or other mobile devices

– Broad reachPeople can be reached at any time

■ Value-added attributes of m-commerce– Ubiquity easier information access in real-time– Convenience devices that store data and have Internet, intranet, extranet connections– Instant connectivity easy and quick connection to Internet, intranets, other mobile devices, data-

bases– Personalization preparation of information for individual consumers– Localization of products and services knowing where the user is located at any given time and match service to

them

1. M-Commerce3) Attributes of M-Commerce

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Characteristics of M-Commerce 1. M-Commerce4) Characteristics of M-Commerce

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The Drivers of M-Commerce

■ Why it is increasingly popular

Widespread availability of devices

No need for a PC

Handset culture

Vendors’ push

Declining prices

Improvement of bandwidth

High speed networks

Explosion of EC in general

1. M-Commerce4) Characteristics of M-Commerce

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Landscape of Mobile Computing and Commerce 1. M-Commerce5) Mobile Computing Infrastructure

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Applications and Security Issues

■ M-Commerce Applications – Financial services: Banking and payment– Intrabusiness applications: Content, services, and voice communication portals– Location-based applications: Shopping, location-based services and advertising– Telemedicine

■ Wireless Security– Wireless networks provide numerous benefits, but they also present challenges to

management because of their inherent lack of security– Four major threats to wireless networks include:

• Rogue access points – unauthorized access points to a wireless network• War driving – locating WLANs while driving (or walking) around a city elsewhere, can be used to

obtain a free Internet connection and possible access to data and other resources• Eavesdropping – accessing data traveling over wireless networks• RF jamming – a person or a device intentionally or unintentionally interferes with wireless

transmissions

1. M-Commerce6) Other Issues

Ubiquitous ComputingUC

Ubiquitous Computing

Anyone can do Anything with Networked IT devices in Anytime & Anywhere

Definition

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Definition of UC

Mark Weiser

“The Computer for the 21th Century”(1991)

https://www.youtube.com/watch?v=b1w9_cob_zw

Ubiquitous ComputingUC

Key Concepts of Mark Weiser’s Ubiquitous Computing

Invisible Computing

When people use computing devices, they must not feel inconvenient. “Invisible” is remov-ing user’s movement by putting many computing devices in user’s space.

Calm Computing

When people use new products, using products is unfamiliar. But as people use them, Peo-ple unconsciously use new products. “Calm” means that interaction between human and computer must be natural so user cannot realize it.

Definition

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Definition of UC

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Ubiquitous Computing

■ Ubiquitous?– Being or seeming to be everywhere at the same time

■ Ubiquitous Computing– Invisible, everywhere computing that does not sit on the desktop but lies deep inside

the environment we live in

■ Beginning of Ubiquitous Computing

– Ubiquitous Computing• The ideal computing environment which never annoy or bother users, but wait for being

used silently

– Characteristics:• All computers should be connected each other• It should be invisible• It should be available everywhere• It should be unified with normal life, embedded to all things and circumstance

2. Ubiquitous1) Basic Concepts on Ubiquitous Computing

– Mark Weiser• The chief technology officer at XEROX PARC• The father of Ubiquitous Computing

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Different from…

■ vs. Mobile Computing– Only one access point

■ vs. Multimedia Computing– Demand the focus of your attention.– Ubiquitous computing : Multimedia is faded into background of UC

■ vs. Virtual Reality

Puts people inside a computer-generated world

Primarily a horse power problem

Virtual Reality

Forces the computer to live out here in the world with people

A very difficult integration of human factors, computer science, engineering, and social sci-ences

Ubiquitous Computing

2. Ubiquitous1) Basic Concepts on Ubiquitous Computing

Ubiquitous ComputingUC

Embeddedness

Mobility

Portability

Nomadicity

Invisiblility

Proactiveness

Characteristics

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Characteristics of UC

Ubiquitous Computing

Ref. 서의호 , e- 전략정보 시스템 ( 개정판 ),  홍릉과학출판사 , 2010

Mark Weiser’s Ubiquitous6-characteristics

Devices must be embedded in products or environment

Embeddedness

System must be proactive and perform services to users’ demands

Proactiveness

Minimize users’ manual control action to maximize users’ convenience

Invisibility

Devices must be connected in anywhere

Mobility

Devices must be portable enough to bring with

Portability

System also must be provided to user who is moving

Nomadicity

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Capabilities of Ubiquitous Computing

■ Calm Technology– Technologies should be organized so users as not to sense the fact that they are being served by

computers

■ Invisibility– To be as unobtrusive as possible, users’ workload to operate any computer systems must be

lightened

■ Embeddedness– Small intelligent devices are embedded in the physical world and connected to the fixed and/or

wireless network

■ Mobility– Client devices must be operated under the mobile and flexible network infrastructure

■ Nomadicity– The system provides a rich set of computing and communication capabilities and services to

nomadic users

■ Portability– The system provides services with hands-free or at least one-handed light devices

■ Proactiveness– The system needs to be self-triggered to capture a priori what its users want to increase the ser-

vice quality

2. Ubiquitous2) Capabilities of Ubiquitous Computing

Ubiquitous ComputingUC18

Characteristics of UC

Characteristics explanation with Smartphone

Embeddedness Proactiveness Invisibility

Portability NomadicityMobility

Ubiquitous ComputingUC

UC Demo

https://www.youtube.com/watch?v=2HHEQuspi4o

Samsung

https://www.youtube.com/watch?v=1nKFW-lDNK8&list=PLB488D6EFA90F7197&index=11

Korean Reporter

https://www.youtube.com/watch?v=2I3T_kLCBAw

Songdo

https://www.youtube.com/watch?v=SKZm34jsNHY

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U-Commerce

■ U-Commerce– The use of ubiquitous networks to support personalized and uninterrupted communi-

cations and transactions between a firm and its various stakeholders to provide a level of value over, above, and beyond traditional commerce

– An alternative view of time and space for business and marketing

■ Key forces of U-Commerce– Bounded rationality

• Consumers are capable of a wide variety of reasoning errors when making decisions• Managers have difficulty in managing a multitude of customers on a one-to-one basis

– Attention deficit society• Consumers are increasingly bombarded with more and more messages

It is estimated that a single weekday issue of the New York Times contains more information than the average person in seventeenth-century England came across in a lifetime

• Conscious attention is a scarce resource• Some messages need to be attenuated and others amplified

2. Ubiquitous4) U-Commerce

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Impacts on Business Services

Ubiquitous Computing will lead to Ubiquitous Commerce

(Right message, to the right person, at the right time!)

Impact on Business Strategy – awareness, accessibility, responsiveness

Point of Presence! Context!

Change in nature of service providers (bursty, point-of-presence value, service level commitments)

New services (businesses) will arise…

2. Ubiquitous4) U-Commerce

Ubiquitous ComputingUC

Market Situation of UC

UC Market Size

UC Market Size

world

Korea

(billion $)

KOR World2014 2.9 253

2022 22.9 1225

789% 484%

22

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Reference

■ Euiho Suh, “Mobile Commerce (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)

■ Euiho Suh, “Ubicomp1 (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)

■ Efraim Turban & Linda Voloninos, “Information Technology for Management – Seventh Edition”, John Wiley & Sons Inc., Chapter 7