e-commerce applications mobile commerce
DESCRIPTION
E-Commerce Applications Mobile commerce. Overview. Mobile computing technologies Mobile commerce and markets Mobile commerce applications Security Case studies. What is m-Commerce?. - PowerPoint PPT PresentationTRANSCRIPT
Ecommerce Applications 2009/10
E-Commerce ApplicationsMobile commerce
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Ecommerce Applications 2009/10
Overview
– Mobile computing technologies – Mobile commerce and markets– Mobile commerce applications– Security– Case studies
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Ecommerce Applications 2009/10
What is m-Commerce?
– Mobile commerce (m-commerce) is any transaction with a monetary value that is conducted via a mobile telecommunications network.
– Timely, personalized, transactions that can be conducted just about anywhere, anytime
– Users will not search for information. Instead, personalised and location aware services are needed.
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Ecommerce Applications 2009/10
Network technologies (1/2)
• GSM - Global System for Mobile Communication: GSM is a digital cellular radio network. Provides connectivity for mobile devices.
• GPRS - General Packet Radio Service: GPRS is a packet switched wireless protocol that offers instant access to data networks. Always on (i.e. no dialup needed). Works on top of GSM. Max speed 115Kbps.
• EDGE - Enhanced Data Rates for Global Evolution: a higher bandwidth version of GPRS that permits higher transaction speeds, up to 384 Kbps
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Ecommerce Applications 2009/10
Network technologies (2/2)
• 2.5G – GPRS and EDGE are interim technologies before the introduction of third generation (3G) high bandwidth data networks.
• 3G or IMT-2000 (International Mobil Telecommunications 2000) - Broadband data at rates up to 2 Mbps with always-on status. Enhanced roaming capability by harmonizing existing standards. Network efficiency due to a nearly doubling of the spectrum efficiency of existing cellular networks, thus increasing quality, efficiency and transmission speed of wireless services.
• 4G – mixed networks e.g. Wi-FI
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Ecommerce Applications 2009/10
Service provision technologies
• SMS - Short Message Service allows users to send and receive text messages to and from mobile phones
• WAP - Wireless Application Protocol is an open, global standard for mobile solutions, including connecting mobile terminals to the Internet.
• Mobile Java – A complete application framework for mobile devices.
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Ecommerce Applications 2009/10
Users in Mio.
Sources: NOKIA, Forrester
200
400
600
800
1.000
1.200
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Mobile phone users
Internet Access with PCs
Connected mobile devices
Market Potential for m-commerce
0
More mobile Devicesconnected to the
Internet than PC´s!
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Ecommerce Applications 2009/10
More than 21 million Europeans will take up mobile banking (Datamonitor)
m-Commerce growth
0.6
1.7
3.5
0
1
2
3
4
$ B
illio
n
US Europe Japan
The revenues for mCommerce will skyrocket (Jupiter Communications)
US: $600 million
Europe: $1.7 billion
Japan: $3.5 billion
Turnover in Germany alone will top €4 billion (Durlacher)
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Ecommerce Applications 2009/10
Mainframes banking, airlines
PC’s word processing business processes spreadsheets
Internet / E-commerce e-mail info channels e-commerce cross-corporate business processes
Why M-Commerce
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Ecommerce Applications 2009/10
M-Commerce Applications
Mainframes
PC’s Internet / E-commerce M-commerce
Kil
ler
Ap
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Exa
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of
Tec
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&
Bu
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Corporate Data Processing
- general ledger- banking- Airline bookings- ....
- Terminals- VMS- X.25- ...
Office Automation
- word processing- spreadsheets- ERP (e.g.SAP)- ....
- DOS/Windows- Client/Server- LAN- ...
Commerce & Communication- e-mail- info channels- e-commerce- cross-corporate business processes
- TCP/IP- HTML- Java- ...
M-commerce
?
-GSM-GPRS/UMTS - - Blue Tooth- W-LAN
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Ecommerce Applications 2009/10
Main end user benefits
• Added Value - do things you couldn‘t do before
• Convenience - do things faster and easier
• Entertainment - have more and new fun
Future killer applications are grouped in three areas
Market Drivers
1. Ubiquitous “professional“ connectivity- take the office everywhere
2. Ease of time-critical and “annoying“ transactions - hazzle-free bookings, payment and ticketing
3. Information and entertainment channels- take enhanced media channels (TV&Internet) everywhere
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Ecommerce Applications 2009/10
Credit card fraud
Source: ECR/Mintel (2001)
Also check out www.apacs.org.uk
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Ecommerce Applications 2009/10
72% of UK credit card holders have never made a purchase online (NOP Mintel)72% of UK credit card holders have never made a purchase online (NOP Mintel)
2/3 of Internet users would purchase more online if transactions were more secure (NOP Mintel)
According to Taylor Nelson Sofres, 28% of UK Internet surfers do not buy online, due to fear of entering credit card details
2/3 of Internet users would purchase more online if transactions were more secure (NOP Mintel)
According to Taylor Nelson Sofres, 28% of UK Internet surfers do not buy online, due to fear of entering credit card details
Consumers and credit card fraud
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Ecommerce Applications 2009/10
Security and on-line paymentsSecurity and on-line payments
Card number easy to copy, card easy to skimCard number easy to copy, card easy to skimAuthenticationAuthentication
Riskreduction
Riskreduction
Authorisation Signature, cardholder not present Signature, cardholder not present
IP networkIP network
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Ecommerce Applications 2009/10
M-commerce approach to securityM-commerce approach to security
interactive application asks for the authorisation by PIN code interactive application asks for the authorisation by PIN code
Mobile network recognises caller IDMobile network recognises caller ID
GSM, banking systemGSM, banking system
AuthenticationAuthentication
Riskreduction
Riskreduction
Authorisation
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Case Study: Paypal
Accepted at over 15,000 US websites
10.6 million users
Supports person-to-person
Used on ebay
Email and limited WAP based transactions only
No scope for real world transactions
WeaknessesWeaknessesStrengthsStrengths
Users require a bank account and email address to send and request money, shop and accept as a business payment
World’s largest Internet payment service
Claims that it’s online verification system is fraud free
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Ecommerce Applications 2009/10
Case study: M-Pesa
Will enable mobile micropayments of as little as 5p
Credit Card, Debit card and Direct Debits accepted with M-Wallet
M-wallet user can choose preferred payment method
Only available to Vodafone users
Person-to-Person partially supported
WeaknessesWeaknessesStrengthsStrengths
Micropayment service launched in UK in February 2007
Micropayments of 5p to £5 will be charged to users phone bill
Fully functional Internet, WAP and real world payments launched
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Ecommerce Applications 2009/10
Case study: Oyster
• Transport for London• Used by millions every day• Micro-payments• Prepay or credit card• Already accepted at thousands of outlets• No person to person• TfL is not financial service
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Ecommerce Applications 2009/10
Summary
– Mobile computing technologies – Mobile commerce and markets– Mobile commerce applications– Security– Case studies