Chapter 8: The Wireless Revolution ADM2372 Bijan Raahemi Telfer School of Management University of Ottawa

2 ADM2372: Management Information Systems Outline Cellular Networks Mobile Web Access Bluetooth Wi-Fi WiMax M-Commerce (Services and Applications) Wireless Technology and CRM Wireless Technology and SCM Wireless Technology and Healthcare Pervasive Computing and Sensor Networks

3 ADM2372: Management Information Systems The Wireless Revolution Mobile phones are now platforms for delivering digital data, used for recording and downloading photos, video and music, Internet access, and transmitting payments An array of technologies provides high-speed wireless access to the Internet for PCs and other wireless handheld devices and cell phones Businesses increasingly use wireless to cut costs, increase flexibility, and create new products and services

4 ADM2372: Management Information Systems Mobile Versus Fixed-line Subscribers Worldwide

5 ADM2372: Management Information Systems Cellular Telephony Networks In cellular technology, the region is divided into smaller cells. In each cell, a cellsite serves cell phones in the cell.

6 ADM2372: Management Information Systems Cellular Telephony Networks Cellsites

7 ADM2372: Management Information Systems Cellular Network Standards Global System for Mobile Communication (GSM) Most of the world (except NA) 2 Billion subscribers, 170 countries Rogers, T-Mobile, At&T, Cingular Code Division Multiple Access (CDMA) Mainly in NA Higher quality, Channel re-use Sprint, Verizon

8 ADM2372: Management Information Systems Cellular Network Generations 1G: Analog circuit-switched networks for voice communication 2G: Digital circuit-switched wireless networks, primarily for voice communication; limited data transmission capability 2.5G: Interim step toward 3G in North America; slower speed 3G: High-speed; mobile; supports video and other rich media; always-on for , browsing, instant messaging

9 ADM2372: Management Information Systems Cellular Network Generations

10 ADM2372: Management Information Systems Mobile Wireless Standards for Web Access Wireless Application Protocol (WAP): Uses Wireless Markup Language (WML) based on XML optimized for tiny displays, Use microbrowsers on mobile device I-mode: Uses compact HTML and allows for continuous connection Easier for businesses to convert their website to mobile service

11 ADM2372: Management Information Systems Wireless Application Protocol (WAP) versus I-mode

12 ADM2372: Management Information Systems Creates small Personal Area Networks (PAN) Can link up to 8 devices in 10-m area Low power requirements Examples Laptops connected to cellphone (Blutooth), and then to the Internet (wireless) Bluetooth enbled handheld in UPS and FedEX Bluetooth (IEEE )

13 ADM2372: Management Information Systems A Bluetooth Network (PAN)

14 ADM2372: Management Information Systems Different Versions a (54 Mbps, 50 ft) b (11 Mbps, 500 ft) g (54 Mbps, 150 ft) n (>100 Mbps) Infrastructure mode: Devices use access point to communicate with wired network Ad-hoc mode (peer-to-peer): Wireless devices communicate directly with each other Wi-Fi (IEEE )

15 ADM2372: Management Information Systems An Wireless LAN

16 ADM2372: Management Information Systems Creates low-cost wireless LANs to provide Internet access to conference rooms, workstations Allows hot-spots in public areas such as university campuses, airports, coffee shops Benefits of Wi-Fi

17 ADM2372: Management Information Systems Challenges of Wi-Fi How to transform Wi-Fi into a sustainable business Security Susceptibility to interference

18 ADM2372: Management Information Systems Worldwide operability for microwave access Up to 75 Mbps, up to 50 km reach WiMax (IEEE )

19 ADM2372: Management Information Systems Outline

20 ADM2372: Management Information Systems M-Commerce Services and Applications Information-based services: Instant messaging, , searching for a movie or restaurant using a cell phone or handheld PDA Transaction-based services: Purchasing stocks, concert tickets, music, or games; searching for the best price for an item using a cell phone and buying it in a physical store or on the Web Personalized services: Services that anticipate what a customer wants based on that person’s location or data profile, such as updated airline flight information or beaming coupons for nearby restaurants

21 ADM2372: Management Information Systems Examples of M-Commerce Applications Mobile bill payment Wireless advertising Location-based services Games and entertainment Contents and products More…

22 ADM2372: Management Information Systems Global M-Commerce Revenue, 2000–2005

23 ADM2372: Management Information Systems Customer Personalization with the Ubiquitous Internet

24 ADM2372: Management Information Systems Accessing Information from the Wireless Web Wireless portals: Content and services optimized for smaller screens of mobile devices to steer users to the information they are most likely to need

25 ADM2372: Management Information Systems Digital Payment Systems and M-commerce Micropayment system Individual service providers run their own separate payment systems Small payments added on to single bill Stored payment system Cell phone equipped with smart card storing rechargeable electronic cash Mobile Wallets (m-Wallets) Store personal data to use in online transactions

26 ADM2372: Management Information Systems M-Commerce Challenges Keyboards and screens on cell phones are still tiny and awkward to use Slow data transfer speeds on second-generation cellular networks, resulting in higher costs to customer Limited memory and power supplies More web sites need to be designed for small wireless devices

27 ADM2372: Management Information Systems WIRELESS TECHNOLOGY IN THE ENTERPRISE Wireless Applications for Customer Relationship Management Sales and field service professionals access customer account records and information at any time or from any location Update customer database instantaneously Receive alerts to important events Enter, perform, and update transactions and product information

28 ADM2372: Management Information Systems Pitney Bowes’s Wireless CRM System Customer calls to place a field service request Sibel CRM selects the service representative to dispatch, sends a message to technician, Uses XML to send information to central computer, etc…

29 ADM2372: Management Information Systems WIRELESS TECHNOLOGY IN THE ENTERPRISE Wireless supply chain management (SCM) systems Provide simultaneous accurate information about demand, supply, production, and logistics as goods move among supply chain partners Radio Frequency Identification (RFID) systems Provide a powerful technology for tracking the movement of goods throughout the supply chain Range: a few centimeters to up to 30 meters Active Tag and Passive Tag Low frequency systems (30 kHz to 500 kHz) for short reading range High frequency systems (up to 2.5 GHz) for long reading range The tag is about 10 cents

30 ADM2372: Management Information Systems How RFID Works WIRELESS TECHNOLOGY IN THE ENTERPRISE

31 ADM2372: Management Information Systems SCM Applications of RFID Toyota (Ontario), Size of 17 football fields 250,000 transactions per day Uses RFID tracking to manage inventory Wal-Mart Top 100 suppliers are required to use passive RFID tags on cases and pallets they ship Boeing Company and Airbus RFID tagging of engine parts

32 ADM2372: Management Information Systems Wireless in Heath Care Electronic Medical Record (EMR) retrieval Wireless note taking for patient charts Lab test results Prescription generation Medical databases

33 ADM2372: Management Information Systems Pervasive Computing and Wireless Sensor Networks Pervasive Computing Wireless technologies are pushing computing into every facet of life, including cars, homes, office buildings, tools and factories; providing connections anywhere and anytime Wireless sensor networks (WSNs) Networks of interconnected wireless devices that are embedded into the physical environment to provide measurements of many points over large spaces

34 ADM2372: Management Information Systems A Wireless Sensor Network

35 ADM2372: Management Information Systems Management Opportunities Wireless technology offers: Flexible business processes Business processes not limited by time or space New channel for communicating with client Source of new products and services

36 ADM2372: Management Information Systems Management Challenges and Solutions Challenges Integrating wireless technology into the firm’s IT infrastructure Maintaining security and privacy Solution Guidelines Identifying areas in which wireless can provide value Creating a management framework for wireless technology Using a pilot program before full-scale rollout of wireless systems

37 ADM2372: Management Information Systems Copyright This slide set is an excerpt from the textbook [1] and the instructor resources provided by Pearson Education Canada Inc., with some modifications and additions. 1- “Management Information Systems: Managing the Digital Firm”, Third Canadian Edition, 3/E, by Kenneth C. Laudon, Jane P. Laudon, and Mary Elizabeth Brabston, Pearson Education Canada, 2007, ISBN: “Business Data Networks and Telecommunications”, 6th Edition, by Raymond R. Panko, Pearson Education Canada, 2007, ISBN