Chapter 7 Mobile Commerce Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University Turban and Volonino 7-1Copyright 2010 John Wiley & Sons, Inc.

Chapter Outline 7.1 Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology 7.2 Mobile Applications in Financial Services 7.3 Mobile Shopping, Advertising, and Content- Providing 7.4 Mobile Enterprise and Interbusiness Applications 7.5 Mobile Consumer Services and Entertainment 7-2Copyright 2010 John Wiley & Sons, Inc.

Chapter Outline (cont’d) 7.6 Location-Based Services and Commerce 7.7 Pervasive Computing, Context Awareness, and RFID 7.8 Managerial Issues Copyright 2010 John Wiley & Sons, Inc.7-3

Learning Objectives 1.Discuss the characteristics, attributes, and drivers of mobile computing and m-commerce. 2.Understand the technologies that support mobile computing. 3.Discuss m-commerce applications in financial and other services, advertising, marketing, and providing of content. 4.Describe the applications of m-commerce within organizations (mobile enterprise, intrabusiness). 5.Understand B2B and supply chain applications (interorganizational) of m-commerce. 7-4Copyright 2010 John Wiley & Sons, Inc.

L earning Objectives cont’d 6. Describe consumer and personal applications of m- commerce. 7.Describe location-based commerce (l-commerce). 8.Discuss the key characteristics and current uses of pervasive computing. 9.Describe the major inhibitors and barriers of mobile computing and m-commerce. Copyright 2010 John Wiley & Sons, Inc.7-5

Copyright 2010 John Wiley & Sons, Inc.7-6 Figure IT7eU

Problem – Competition is fierce; profit margins low. Bloom needs appropriate technology to compete with Wal-Mart. Solution – Wireless technology – mobile checkstands, scanners, handhelds, Wi-Fi, RFID. Results – Better customer service & speedier checkout; higher employee productivity; fewer employees overall. Copyright 2010 John Wiley & Sons, Inc.7-7 Food Lion Opens Lake Norman Bloom Store

Wi-Fi – What is it? Copyright 2010 John Wiley & Sons, Inc.7-8 How WiFi Works Wi-Fi Wi-Fi® Technology Enabling Economic and Social Development in Rural and Urban India Food Lion Checking Out With Wi-Fi

Copyright 2010 John Wiley & Sons, Inc Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology

Mobile Computing Copyright 2010 John Wiley & Sons, Inc.7-10 A Brief History of Mobile Computing First laptop invented by Alan Kay in 1968 First PDA introduced in 1983

Table 7.1 Copyright 2010 John Wiley & Sons, Inc.7-11

Value Added Attributes that Drive Development of M-Commerce Ubiquity – refers to the attribute of being available at any location at any given time. (ex: smart phone or PDA) Convenience – Internet enabled; many available hot spots. Instant Connectivity – quick connections to Internet, intranets, other mobile devices & databases. Personalization – preparation of customized information for individual consumers. Localization of products & services – wireless device has GPS. Copyright 2010 John Wiley & Sons, Inc.7-12

Drivers of Mobile Computing & M-Commerce Widespread availability of mobile devices – 50% of world population will use mobile phones in No need for a pc – smart phone may soon become foremost tool connecting people to Internet. Handset culture – widespread use of cell phones. Declining prices, increased functionalities – declined by 50% in recent years while functionalities increase. Improvement of bandwidth – 3G & 3.5G Copyright 2010 John Wiley & Sons, Inc.7-13

Drivers of Mobile Computing & M-Commerce (cont’d) Centrino chip – connects to wireless LAN; low usage of electricity; high level security. Availability of Internet access in automobile – numbers of availability continue to increase. Networks – 3G, 4G, and adoption of Wi-Fi as wireless LAN. Copyright 2010 John Wiley & Sons, Inc.7-14

Figure 7.1 Copyright 2010 John Wiley & Sons, Inc.7-15 The landscape of mobile computing and commerce. (Source: Drawn by E. Turban.)

Figure 7.2 How Wi-Fi works. Copyright 2010 John Wiley & Sons, Inc.7-16

Table 7.2 Copyright 2010 John Wiley & Sons, Inc.7-17

Barriers to Commercial Wi-Fi Growth Cost – it’s readily available; why pay for it? Security Copyright 2010 John Wiley & Sons, Inc.7-18

Copyright 2010 John Wiley & Sons, Inc Mobile Applications in Financial Services

Mobile Banking & Stock Trading Services offered include: bill payments & money transfers; access administration & check book requests; balance inquiries & statements of account; interest & exchange rates; sale/purchase of stocks. Increasing % of banks offer mobile access – financial & account information. Wachovia “go mobile today” demo Copyright 2010 John Wiley & Sons, Inc.7-20

Copyright 2010 John Wiley & Sons, Inc Mobile Shopping, Advertising, and Content-Providing

Shopping from Wireless Devices Copyright 2010 John Wiley & Sons, Inc.7-22

Figure 7.3 Copyright 2010 John Wiley & Sons, Inc.7-23 Purchasing movie tickets with WAP Solo. (Source: Sadeh, 2002, Fig. 1.5.)

Copyright 2010 John Wiley & Sons, Inc Mobile Enterprise and Interbusiness Applications

Mobile Enterprise Applications Supporting salespeople during customer visits Supporting field employees during repairs Supporting traveling of employees Supporting employees working within the organization Supporting employees driving trucks Copyright 2010 John Wiley & Sons, Inc.7-25

Copyright 2010 John Wiley & Sons, Inc Mobile Consumer Services and Entertainment

Mobile Applications in Sports Copyright 2010 John Wiley & Sons, Inc.7-27 Nike iPod Nano

Copyright 2010 John Wiley & Sons, Inc Location-Based Services and Commerce

Location-Based Services Copyright 2010 John Wiley & Sons, Inc.7-29 Location-Based M-Commerce Services Defined & historic development…

Figure 7.4 Copyright 2010 John Wiley & Sons, Inc.7-30 A smart phone with GPS system in l-commerce.

Global Positioning Systems (GPS) Copyright 2010 John Wiley & Sons, Inc.7-31 Artist's conception of GPS satellite in orbit Civilian GPS receiver ("GPS navigation device") in a marine applicationGPS navigation device GPS receivers are now integrated in many mobile phones. Automotive navigation systemAutomotive navigation system in a taxicab For wikipedia & much more, click here!

Figure 7.5 Copyright 2010 John Wiley & Sons, Inc.7-32 Location-based services involving maps. (Source: Mapinfo.com, 2001.)

Copyright 2010 John Wiley & Sons, Inc Pervasive Computing, Context Awareness, and RFID

Figure 7.6 Copyright 2010 John Wiley & Sons, Inc.7-34 How RFID works. (Source: C. Heinrich, RFID and Beyond, Indianapolis, Wiley Publishing, 2005, Figure 3.5, p. 65.)

Copyright 2010 John Wiley & Sons, Inc Managerial Issues

Managerial Issues Ethical & legal issues. Implementation issues. Failures in mobile computing & m-commerce. Mobile device management plans are too often non-existent. Copyright 2010 John Wiley & Sons, Inc.7-36

Copyright 2010 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein. Copyright 2010 John Wiley & Sons, Inc.7-37