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ELC 200

ELC 200. Day 19. Agenda . Questions from last Class? Quiz 2 rescored 5 A’s, 6 B’s, 3 C’s Assignment 5 Due April 17 Questions? Two more assignments left Operations & Finance EBiz plan and presentations Due may 8 @ 8AM More to come Two more Quizzes April 17 & May 4

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ELC 200

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  1. ELC 200 Day 19 Prentice Hall, 2003

  2. Agenda • Questions from last Class? • Quiz 2 rescored • 5 A’s, 6 B’s, 3 C’s • Assignment 5 • Due April 17 • Questions? • Two more assignments left • Operations & Finance • EBiz plan and presentations • Due may 8 @ 8AM • More to come • Two more Quizzes • April 17 & May 4 • Today's’ discussion is on Mobile Commerce Prentice Hall, 2003

  3. Shopping from Wireless Devices • Buy.com allows shopping from wireless devices • In 5-10 years most businesses will be wireless • Online stores will become showrooms • View products • Purchase them using handheld devices • Possibly enhanced by bar code scanners • Customization may be possible Prentice Hall, 2003

  4. Exhibit 8.7Mobile Shopping Supported by CRM Prentice Hall, 2003

  5. Targeted Advertisement • Personalization of services and enhanced user interface for wireless Web pages from barnesandnoble.com • Knowing user preferences or surfing habits user-specific advertising messages to the location of mobile users • Using GPS marketers can send location-sensitive messages can be sent Prentice Hall, 2003

  6. Targeted Advertisement (cont.) • Get paid to listen to advertisements—listen to a 10–second ad before you dial your cell phone, and get 2 minutes of free long-distance time • Program flopped in the U.S. • SingTel of Singapore recouped its initial investment from ad revenues in about a year Prentice Hall, 2003

  7. Targeted Advertisement (cont.) • Advertisement strategies and guidelines—Wireless Advertising Association (waaglobal.org) is trying to establish wireless ad guidelines • Opt-in ad programs involving mobile message alerts • Addressing issues like spamming and unethical strategies: • Confirmed opt-ins • Personally identifiable information • Push advertising Prentice Hall, 2003

  8. Wireless Advertising in Action • GPS helps target users from their location • Vindigo.com—places to go and things to do in your area • GeePS.com—location-based start-up sent coupons to customers cell phones • Go2Online.com—locations-based Web domain helps mobile travelers find anything (e.g., the nearest oil change) • http://www.go2online.com Prentice Hall, 2003

  9. Supporting Customers & Business Partners(Consumer Services) • Using voice portals in marketing and customer service • Use vendor’s voice portal to check status of deliveries to a job site • Service technicians provided with diagnostic information, enabling them diagnosis of difficult problems • Sales people check inventory status during a meeting to help close a sale Prentice Hall, 2003

  10. Supporting Customers & Business Partners(Consumer Services) [cont.] • Using mobile portals • Mobile portal—a customer interaction channel that aggregates content and services for mobile users • Portals charge for their services (per service or monthly fee): • Public mobile portals (e.g., Imode in Japan) • Corporateportals • Serve a corporation ’s customers and/or suppliers • E.g., major airline portals Prentice Hall, 2003

  11. Supporting Mobile Employees • Smartphones and hand-held devices • Wearable wireless devices—mobile wireless computing devices for employees who work on buildings and other difficult-to-climb places • Cameras • Keyboard • Screen • Touch-panel display http://www.media.mit.edu/wearables/index.html Prentice Hall, 2003

  12. Wearable Devices for Bell Canada Workers • Wearable technology • Powerful computer for pocket • Keyboard attached to the vest • Flatpanel display screen at the waist • Video camera attaches to his safety hat • Cell phone is attached and connected to the computer • Battery pack against the back Prentice Hall, 2003

  13. Wearable Devices (cont.) • Wearable devices enable workers to access: • Work orders • Repair manuals • This system was developed by Xybernaut (xybernaut.com) • Problems with the technology are weather related Prentice Hall, 2003

  14. Supporting Mobile Employees (cont.) • Job dispatch • Transportation (delivery of food, oil, newspapers, cargo, courier services, tow trucks) • Taxis (already in use in Korea and Singapore) • Utilities (gas, electricity, phone, water) • Field service (computer, office equipment, home repair) • Health care (visiting nurses, doctors, social services) • Security (patrols, alarm installation) Prentice Hall, 2003

  15. Supporting Mobile Employees (cont.) • Sales force automation (SFA) tools • Integrate software aimed at m-commerce applications • Equipped with smartphones providing easy access to customer data at the central office • Contact management information • Product and spare part availability • Deal tracking Prentice Hall, 2003

  16. http://www.riverrun.com/solutions/ Prentice Hall, 2003

  17. Non-Internet Intrabusiness Applications • Wireless networking used for item picking in warehouses • Delivery and order status updates • Online dispatching • Online diagnosis support from remote locations • Parts ordering/inventory queries Prentice Hall, 2003

  18. Non-Internet Intrabusiness Applications (cont.) • Mobile shop-floor quality control systems enable • Voice reports by inspectors • Data collection from facilities • Transmission to a central processor • Salespeople connect to corporate networks • Remote database queries Prentice Hall, 2003

  19. Internet-BasedIntrabusiness Applications • Applications implemented inside enterprises, some examples: • Sonera (Finland): electronic funds transfer (EFT) of paychecks • Chicago’s United Center: inventory can be taken in a matter of hours • FedEx and UPS: access Web, e-mail, databases, intranets, etc. Prentice Hall, 2003

  20. Internet-BasedIntrabusiness Applications (cont.) • Bertelsmann AG: gives junior-level executives wireless access to a company portal, JuniorNet, accessible from almost anywhere • Kemper Insurance Company: lets property adjusters report from the scene of an accident • U.S. Internal Revenue Service: equipping field employees with mobile devices that allows audits to be conducted anywhere, anytime Prentice Hall, 2003

  21. Exhibit 8.9Automated Wireless Workflow Applications Prentice Hall, 2003

  22. Exhibit 8.10Intelligent Office Connected by Wireless LAN Prentice Hall, 2003

  23. Mobile B2B and Supply Chain Applications • Both sell-side and buy-side of ERP • Unified messaging makes user’s device less of an issue • Telemetry drives supply chainefficiency and productivity through automation of: • Data capture • Improved billing timeliness and accuracy • Reduced overhead • Increased customer satisfaction • Collaboration among members of the supply chain is facilitated by mobile capabilities Prentice Hall, 2003

  24. Mobile Consumer and Personal Service Applications • Mobile gaming devices • PDAs (Handspring’s Visor) with Flash RAM card • Nintendo’s Game Boy Advance • Sony’s PocketStation • Sega’s portable device connected to Dreamcast • Mobile gambling • Germany’s online lottery company fluxx.com available via mobile terminals • Hong Kong, betting on horse races via cell phones is popular Prentice Hall, 2003

  25. Mobile Consumer and Personal Service Applications (cont.) • Mobile entertainment • Music • Video—real-time streaming video (packetvideo.com) • Hotels—hotel guests equipped with Bluetooth-enabled mobile devices are instantly recognized • Intelligent homes and appliances Prentice Hall, 2003

  26. Exhibit 8.13Intelligent Home Connected by Wireless LAN Prentice Hall, 2003

  27. Mobile Consumer and Personal Service Applications (cont.) • Wireless telemedicine—use of mobile telecommunications infrastructures and multimedia technologies to provide medical information and deliver health care services remotely • Other services for consumers • Providing news, weather, and sports reports • Online language translations • Information about tourist attractions (hours, prices) • Emergency services Prentice Hall, 2003

  28. Mobile Consumer and Personal Service Applications (cont.) • Non-Internet consumer applications • Smart cards used in transportation “Contactless” cards (proximity cards) used to pay bus and subway fares and road tolls • Amplified remote-sensing cards have an RF (radio frequency) of up to 30 meters used for toll collection Prentice Hall, 2003

  29. Highway 91 Project (cont.) • Six express toll lanes along a 10–mile stretch in the median of the existing Highway 91 • Express lane system has only one entrance and one exit, and it is totally operated with EC technologies Prentice Hall, 2003

  30. Highway 91 Project (cont.) • The system works: • Only prepaid subscribers can drive on the road • Large sign over the toll way tells drivers current fee for cruising the express lanes • Sensors in the pavement let the toll way computer know that a car has entered; the car does not need to slow or stop • AVI makes radio contact with a transceiver installed above the lane Prentice Hall, 2003

  31. Highway 91 Project (cont.) • The transceiver relays the car’s identity to the control center, where a computer calculates the fee for that day’s trip • Surveillance cameras record the license numbers of cars without AVIs—can be stopped by police at the exit or fined by mail • Video cameras along the toll way enable managers to keep tabs on traffic • System accesses the driver’s account and the fare is automatically deducted from the driver’s prepaid account Prentice Hall, 2003

  32. Highway 91 Project (cont.) • System saves commuters between 40 and 90 minutes each day, so it is in high demand • Use of the same AVIs for other purposes: • Used in paid parking lots • Someday you may be recognized when you enter the drive-through lane of McDonalds and a voice asks you, “Mr. Smart, do you want your usual meal today?” Prentice Hall, 2003

  33. Location-Based Commerce • Location-based commerce (L-commerce)—e-commerce applications provided to customers based on a user’s specific location • Location-based technologies • Global positioning systems—a wireless system that uses satellites to enable users to determine their position anywhere on the earth • Geographical information systems (GIS)—relates longitude and latitude of GPS into place or address (mapinfo.com) • GPS on handsets—stand-alone units for tracking applications Prentice Hall, 2003

  34. Exhibit 8.14Location-Based Services Involving Maps Prentice Hall, 2003

  35. Exhibit 8.15GPS System Prentice Hall, 2003

  36. L-Commerce Applications (cont.) • E-911—Calls from cellular phones to providers of emergency services • Wireless carriers must provide feature that allows them to identify number and location of the user • Mobile 911 calls must be forwarded immediately to the appropriate agency • Automatic crash notification (ACN)—device (now experimental) that will automatically notify police of a vehicular accident • http://www.theautochannel.com/news/2002/08/05/145060.html Prentice Hall, 2003

  37. Telematics and Telemetry Applications • Telematics—integration of computers and wireless communications to improve information flow using the principles of telemetry • GM OnStar system—cellular phone and PDA are integrated to provide personal information management, mobile Internet services, entertainment on the vehicle vehicle dashboard • http://www.onstar.com/ • Sophisticated text-to-speech and voice recognition capabilities minimize driver distraction • Hands-off cell phone Prentice Hall, 2003

  38. Telematics and Telemetry Applications (cont.) • Use as a remote vehicle self-diagnostics tool • Daimler-Chrysler and Volvo experimented with installation of GSM chip sets in cars • Monitor performance and to provide an early warning system for potential problems • Chip sends a message to the manufacturer indicating what the problem is • Manufacturer’s system analyzes various data and provides a fix (via a software tool) • Developing faults found before they become critical and continuous operation of the car can be ensured Prentice Hall, 2003

  39. Barriers to L-Commerce • The accuracy of some of the location technologies • The cost-benefit justification • M-spam • Especially when the receiver pays • The bandwidth of GSM networks Prentice Hall, 2003

  40. Limitations of M-Commerce • Usability problem • Usability of a site is critical to attract attention and retain user stickiness • Effectiveness, efficiency, satisfaction • Some mobile devices are found to be ineffective • Customers want to find exactly what they are looking for, easily and quickly, not possible in the 2G text-based environment • More and faster multimedia will be available as 3G spreads Prentice Hall, 2003

  41. Lack of standardized security protocol Security methodology needs to be incorporated in mobile Customer confidence is low Insufficient bandwidth Limits the extent to which mobility can be viewed commodity 3G licenses Auctioned by governments Certain countries cannot be served by these devices Transmission & power consumption limitations Multipath interference Weather and terrain problems Distance-limited connections Technical Limitations Prentice Hall, 2003

  42. Technical Limitations (cont.) • WAP limitations • Speed—in 2002 connections to WAP sites are still too slow • Cost—fees for mobile phone users are still too high • Accessibility—as of spring 2002, fewer than 50,000 WAP-accessible sites worldwide (must be written in WML) Prentice Hall, 2003

  43. Technical Limitations (cont.) • Potential health hazards • Fear of radiation • Unsafe to drive and use wireless phone • Cell phones may interfere with sensitive medical devices (pacemakers) • Lawsuits relating to the potential health hazards of wireless devices have already been filed—public is advised to adopt a precautionary approach in using mobile phones (earphone device) • http://www.fda.gov/cellphones/qa.html • http://www.fcc.gov/cgb/consumerfacts/mobilephone.html Prentice Hall, 2003

  44. Basic (fixed) fees Point-of-traffic fees Transaction fees Content and service charges Payment clearing Hosting fees Certification (PKI) fees Implementing M-Commerce • Revenue models Prentice Hall, 2003

  45. Implementing M-Commerce (cont.) • Consumer confidence and trust • Customers love free or inexpensive services like those offered by iMode • Customers not willing to pay large amounts of money for services unless they trust the product/vendor • Confidence should increase with reliable payment mechanisms • Research is being conducted in this area Prentice Hall, 2003

  46. Implementing M-Commerce (cont.) • M-commerce value chain • Involves many partners • Success depends on • Coordination among participants • Sufficient compensation for all • Use ASP to deliver m-commerce or • Large companies contract other vendors to complement their services Prentice Hall, 2003

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