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Diverse E-Commerce: M-Commerce and Ubiquitous. Rev: Feb, 2012 Euiho (David) Suh , Ph.D. POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: Dept. of Industrial & Management Engineering POSTECH. Contents. Discussion Questions.

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Diverse E-Commerce:M-Commerce and Ubiquitous

Rev: Feb, 2012

Euiho (David) Suh, Ph.D.

POSTECH Strategic Management of Information and Technology Laboratory


Dept. of Industrial & Management EngineeringPOSTECH

discussion questions
Discussion Questions
  • What are some other potential M-commerce applications?
  • Why do you think M-commerce is increasingly popular?
  • Find a real case for applying Ubiquitous technology
  • What is L-Commerce (Location-based Commerce) and its characteristic?
definition of mobile commerce m commerce

1. M-Commerce

1) Introduction

Definition of Mobile Commerce (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
differences between m and e commerce

1. M-Commerce

1) Introduction

Differences between M- and E- commerce
  • A permanent factor that makes difference between M- and the rest of the E- commerce 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
mobile commerce value chain

1. M-Commerce

2) Value Chain

Mobile Commerce Value Chain

Source : The mobile commerce value chain: analysis and future developments, Stuart J. Barnes,

International Journal of Information Management 22 (2002) 91–108

specific attributes of m commerce

1. M-Commerce

3) Attributes of M-Commerce

Specific Attributes of M-Commerce
  • Attributes of m-commerce and its economic advantages
    • MobilityUsers carry cell phones or other mobile devices
    • Broad reachPeople 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

characteristics of m commerce

1. M-Commerce

4) Characteristics of M-Commerce

Characteristics of M-Commerce
the drivers of m commerce

1. M-Commerce

4) Characteristics of M-Commerce

The Drivers of M-Commerce

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

Why it is increasingly popular

wireless environment

1. M-Commerce

5) Mobile Computing Infrastructure

Wireless Environment
  • Wireless Devices
    • Individuals are finding it convenient and productive to use wireless devices for several reasons:
      • Can make productive use of time that was formerly wasted
      • Their work locations are becoming much more flexible
      • Enables them to allocate their working time around personal and professional obligations
    • The Wireless Application Protocol (WAP) is the standard that enables wireless devices to access Web-based information and services
    • Microbrowsers can work with smaller screen sizes and lower bandwidth
  • Wireless Transmission Media
    • Wireless media, or broadcast media, transmit signals without wires over the air or in space
    • The major types of wireless media are:
      • Microwave
      • Satellite
      • Radio
      • Infrared
    • Each of these media has relative advantages and disadvantages
applications and security issues

1. M-Commerce

6) Other Issues

Applications and Security Issues
  • M-Commerce Applications
    • Financial services: Banking and payment
    • Intrabusinessapplications: 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
ubiquitous computing

2. Ubiquitous

1) Basic Concepts on Ubiquitous Computing

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
    • 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
  • Mark Weiser
    • The chief technology officer at XEROX PARC
    • The father of Ubiquitous Computing
different from

2. Ubiquitous

1) Basic Concepts on Ubiquitous Computing

Different from…
  • 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
  • Primarily a horse power problem
  • Forces the computer to live out here in the world with people
  • A very difficult integration of human factors, computer science, engineering, and social sciences
capabilities of ubiquitous computing

2. Ubiquitous

2) Capabilities of Ubiquitous Computing

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
generic features of ubiquitous computing 1 2

2. Ubiquitous

3) Generic Features of Ubiquitous Computing

Generic Features of Ubiquitous Computing (1/2)
  • Transparent Interfaces
    • Hide their presence from user
    • Provide interaction between user and application
    • Examples:
      • Gesture recognition
      • Speech recognition
      • Free form pen interaction
      • Computational perception etc.
    • Need:
      • Flexible interfaces
      • Varied interfaces that can provide similar functionality
  • Context Awareness
    • Context: Information about the environment with which the application is associated
      • ‘Location’, ‘temperature’, ‘time’, and ‘activity’ are simple examples of context
    • Context aware application:
      • Is one which can capture the context
      • Assigns meaning to it
      • Changes behavior accordingly
    • Need:
      • Applications that are context aware and allow rapid personalization of their services

Awareness of


Capture Experience

  • Transparent
  • Interfaces
generic features of ubiquitous computing 2 2

2. Ubiquitous

3) Generic Features of Ubiquitous Computing

Generic Features of Ubiquitous Computing (2/2)
  • Automated Capture
    • To capture our day-to-day experience
    • To make it available for future use.
    • Constraints:
      • Multiple streams of information
      • Their time synchronization
      • Their correlation and integration
    • Need:
      • Automated tools that support capture
      • integration and future access of information

Awareness of


Capture Experience

  • Transparent
  • Interfaces
u commerce

2. Ubiquitous

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
impacts on business services

2. Ubiquitous

4) U-Commerce

Impacts on Business Services

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…
case study
Case Study

3. Case Study


EuihoSuh, “Mobile Commerce (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)

EuihoSuh, “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