Mobile Commerce

Mobile C om mer ce (M- Com mer ce)

06/19/09

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Objecti ve Ø To understanding the basic of M-commerce Ø Benefit of M-commerce with small business Ø Know about technology that based on M-commerce Ø How to apply technology of M-commerce for business Ø Know about advantage and disadvantage of M-commerce

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What is M-Commerce? E-Commerce with mobile devices (PDAs, Cell Phones, Pagers, etc.) Different than E-Commerce? No, but additional challenges: Security  Usability  Heterogeneous Technologies  Business Model Issues 

But first, let’s learn a little about wireless technologies… 06/19/09

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M-Commerce Terminology Generations 1G: 1979-1992 wireless technology  2G: current wireless technology; mainly accommodates text  2.5G: interim technology accommodates graphics  3G: 3rd generation technology (2001-2005) supports rich media (video clips)  4G: will provide faster multimedia display (2006-till date) 

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Terminology and Standards GPS: Satellite-based Global Positioning System PDA: Personal Digital Assistant—handheld wireless computer SMS: Short Message Service EMS: Enhanced Messaging Service MMS: Multimedia Messaging Service WAP: Wireless Application Protocol Smartphones—Internet-enabled cell phones with attached applications 06/19/09

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Mobile Service Scenarios Financial Services. Entertainment. Shopping. Information Services. Payment. Advertising. And more ...

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Early content and applications have all been geared around information delivery but as time moves on the accent will be on revenue generation. Entertainment Music Games Graphics Video Pornography

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Communications Short Messaging Multimedia Messaging Unified Messaging e-mail Chatrooms

M- commerce

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Transactions Banking Broking Shopping Auctions Betting

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Information News City guides Directory Services Maps Traffic and weather

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Security Challenges Less processing power on devices

Slow Modular exponentiation and Primality Checking (i.e., RSA)  Crypto operations drain batteries (CPU intensive!) 

Less memory (keys, certs, etc. require storage) Few devices have crypto accelerators, or support for biometric authentication No tamper resistance (memory can be tampered with, no secure storage) Primitive operating systems w/ no support for access control (Palm OS) 06/19/09

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Wireless Security Approaches Link Layer Security GSM: A3/A5/A8 (auth, key agree, encrypt)  CDMA: spread spectrum + code seq  CDPD: RSA + symmetric encryption 

Application Layer Security WAP: WTLS, WML, WMLScript, & SSL  iMode: N/A  SMS: N/A 

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Usability Challenges Hard Data Entry Poor Handwriting Recognition  Numeric Keypads for text entry is error-prone  Poor Voice Recognition  Further complicates security (entering passwords / speaking pass-phrases is hard!) 

Small Screens 

i.e., can’t show users everything in “shopping cart” at once!

Voice Output time consuming 06/19/09

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Usability Approaches Graffiti (Scaled-down handwriting recognition, Palm devices) T9 Text Input (Word completion, most cell phones) Full alphanumeric keypad & scrollbar (Blackberry) Restricted VoiceXML grammars for better voice recognition Careful task-based Graphical User Interface & Dialog Design Lots of room for improvement! 06/19/09

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Heterogeneity Challenges Many link layer protocols (different security available in each) Many application layer standards Businesses need to write to one or more standards or hire a company to help them! Many device types: Many operating systems (Palm OS, Win CE, Symbian, Epoch, …)  Wide variation in capabilities 

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Heterogeneity Approaches HTML/Web screen scraping Protocol & Mark-up language translators Standardization

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Business Models Issues Possible Models: Slotting fees  Wireless advertising (text)  Pay per application downloaded  Pay per page downloaded  Flat-fees for service & applications  Revenue share on transactions 

Trust issues between banks, carriers, and portals Lack of content / services

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M- commerce ben efit Ø Your Internet offerings are easier and more convenient to access.  Ø You get considerable flexibility while conducting business.  Ø Transaction and personnel costs are reduced due to widespread automation of    Ø back-office operations.  Ø Field staff is more effective as they have flexible access to back-office data.   

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Ben ef it f or busi nes s For a small business could benefit from m-commerce. Ø Selling a product or service Ø Improving productivity

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Ad van tage Ø Offers many payment options Ø Push advertising, direct marketing. Ø More efficient and extensive service offered. Ø The Internet is going mobile

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Dis adva nta ge Ø Expensive cost Ø Larger screens won’t be displayed is clear Ø Slow speed Ø Limited for longer message Ø It hard way to fill the data. Ø Security is not protected

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Example Ø Mobile banking Ø Mobile ticketing Ø Mobile marketing Ø Micro-payment

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Co ncl us ion The core of m-commerce is the use of a terminal (telephone, PDA, PC device) and public mobile network to access information and conduct transactions that result in the transfer of value in exchange for information, services or goods. Mobile Commerce refers to any transaction with monetary

value

that

is

conducted

via

a

mobile

telecommunications network.

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Th an k y ou s o mu ch

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