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 Engineering
POSTECH
Contents
1
2
3
M-Commerce
1)
Introduction
2)
Value Chain
3)
Attributes of M-Commerce
4)
Characteristics of M-Commerce
5)
Mobile Computing Infrastructure
6)
Other Issues
Ubiquitous
1)
Basic Concepts on Ubiquitous Computing
2)
Capabilities of Ubiquitous Computing
3)
Generic Features of Ubiquitous Computing
4)
U-Commerce
Case Study
Definition of Mobile Commerce (M-Commerce)
1. 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
3
1) Introduction
Differences between M- and E-Commerce
1. M-Commerce
1) Introduction
■ A permanent factor that makes difference between M- and the rest of the Ecommerce is…
– The possibility of the user to engage anywhere and anytime in M-commerce transactions;
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
4
1. M-Commerce
Classes of M-Commerce Applications
1) Introduction
5
1. M-Commerce
Mobile Commerce Value Chain
Contents
InfraStructure
&
Services
2) Value Chain
Content Creation
Content Packaging
Market Making
• Creation of original content,:
~ text (e.g. news, stock prices)
~audio (e.g. voice, music)
~ graphics (e.g. logos, photos)
~ video (e.g. movies, cartoons)
• Content firms, including news
(e.g. CNN), designers, music,
studios, photographers,
writers
• Processing digital contents for
consumption – formaring
editing, customizing and
coaching
• Value added mobile sites, e.g.:
~ Finance (StockSmart, ELoan)
~Travel (Kizoom, Last ?)
~ Games (Space, Wapscallio)
• 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.
Yahoo!), and new ? (e.g.
Room33)
Mobile Transport
Mobile Services &
Delivery Support
Mobile Interface &
Applications
• Mobile service technologies
(e.g. SMS, iMode, WAP, SAT)
• Internet connection and server
plagform (inc. WAP gateways)
• Payment systems (e.g. SIMbased e-cash, Pay-by-GSM)
• Security (e.g. WTLS, PKT)
• Microbrowers (e.g. UP brower,
Compact Netfront)
• PDA OS (Windows CE,
PalmOS, EPOC32)
• Application Development (e.g.
WML, cHTML, VXVL, SMS)
• Device vendors (e.g. Nokia)
• Transmission technologies
(e.g. GSM, GPRS, EDGE,
UMTS)
• Technology suppliers (esp.
Ericsson, Siebels, Nokia,
Motorola, Lucent)
• Network Operators (e.g. NTT
DoCoMo, France Telecom,
Telia, BT)
~ News, Entertainment, Shopping
Source : The mobile commerce value chain: analysis and future developments, Stuart J. Barnes,
International Journal of Information Management 22 (2002) 91–108
6
Users/
Consu
mers
1. M-Commerce
Specific Attributes of M-Commerce
3) Attributes of M-Commerce
■ Attributes of m-commerce and its economic advantages
– Mobility
Users carry cell phones or other mobile devices
– Broad reach
People 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, databases
– 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
7
1. M-Commerce
Characteristics of M-Commerce
4) Characteristics of M-Commerce
8
1. M-Commerce
The Drivers of M-Commerce
4) Characteristics 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
9
Landscape of Mobile Computing and Commerce
10
1. M-Commerce
5) Mobile Computing Infrastructure
1. M-Commerce
Applications and Security Issues
6) Other 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
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Definition of UC
Definition
https://www.youtube.com/watch?v=b1w9_cob_zw
 Ubiquitous Computing
 Anyone can do Anything with Networked IT devices in Anytime & Anywhere
“The Computer for the 21th Century”(1991)
Mark Weiser
12
UC
Ubiquitous Computing
Definition of UC
Definition
 Key Concepts of Mark Weiser’s Ubiquitous Computing
 Invisible Computing
When people use computing devices, they must not feel inconvenient. “Invisible” is
removing 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,
People unconsciously use new products. “Calm” means that interaction between human and
computer must be natural so user cannot realize it.
13
UC
Ubiquitous Computing
2. Ubiquitous
Ubiquitous Computing
1) Basic Concepts on 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
– Mark Weiser
• The chief technology officer at XEROX PARC
• The father 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
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2. Ubiquitous
Different from…
1) Basic Concepts on Ubiquitous Computing
■ 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
Virtual Reality
Ubiquitous Computing
 Puts people inside a computer-generated world
 Forces the computer to live out here in the world
with people
 Primarily a horse power problem
 A very difficult integration of human factors,
computer science, engineering, and social sciences
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Characteristics of UC
Characteristics
Mark Weiser’s Ubiquitous
6-characteristics
Embeddedness
Devices must be embedded in products or environment
Embeddedness
Proactiveness
Proactiveness
Mobility
System must be proactive and perform
services to users’ demands
Invisibility
Minimize users’ manual control action to maximize
users’ convenience
Ubiquitous
Computing
Mobility
Devices must be connected in anywhere
Invisiblility
Portability
Portability
Devices must be portable enough to bring with
Nomadicity
Nomadicity
System also must be provided to user who is moving
Ref.서의호, e-전략정보 시스템(개정판), 홍릉과학출판사, 2010
16
UC
Ubiquitous Computing
2. Ubiquitous
Capabilities of Ubiquitous Computing
2) 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 service quality
17
Characteristics of UC
Characteristics explanation with Smartphone
Embeddedness
Proactiveness
Invisibility
Mobility
Portability
Nomadicity
18
UC
Ubiquitous Computing
 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
19
UC
Ubiquitous Computing
2. Ubiquitous
U-Commerce
4) U-Commerce
■ U-Commerce
– The use of ubiquitous networks to support personalized and uninterrupted communications
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
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2. Ubiquitous
Impacts on Business Services
4) U-Commerce
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…
21
Market Situation of UC
UC Market Size
UC Market Size
(billion $)
2014
KOR
World
2.9
253
world
Korea
2022
789%
484%
22.9
1225
22
UC
Ubiquitous Computing
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
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