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    Chapter 8: Mobile Electronic

    Commerce

    OverviewThe use of mobile technologies is steadily on theincrease, for both e-commerce and personal uses[4].Mobile phones are a common sight today and many

    people own personal information management (PIM)devices or handheld computers, where they managetheir schedule, contacts, and other essential functions.Employees on the move appreciate the value of stayingconnected with their enterprise and other resources

    through mobile phones. Most enterprises now havecorporate mobile phone plans that make it easier formobile employees to stay in touch and increaseproductivity.

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    Wireless Industry Standards

    No technology works in a vacuum. Many entities

    work at different levels to bring the technology to a

    more mature and usable state. Standards and

    specifications are first conceived, developed, and

    then implemented. Currently, most standards

    bodies for the mobile e-commerce environment are

    focused on hardware- or infrastructure-relatedissues. Some of the more important standards

    organizations related to the wireless industry today

    include:

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    Bluetooth Special Interest Group (SIG) is a volunteer

    organization run by employees from member companies.

    Members support a number of working groups that focus

    on specific areas, such as engineering, qualification, and

    marketing. The member companies build and qualify

    products under strict qualification procedures with

    regular testing of products at events sponsored by

    Bluetooth.

    The Institute of Electrical and Electronics Engineers(IEEE) does extensive research in technology spanning

    a broad spectrum. They created the 80211 standard forwireless networks, and are also instrumental increating security protocols such as Wired EquivalentPrivacy (WEP)[5]. The IEEE does not providecertifications of any kind for their specifications.

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    Wireless Application Protocol (WAP) Forum offers

    a comprehensive certification and interoperability

    testing program that covers device testing, content

    verification, and a set of authoring guidelines toassist developers in providing interoperable WAP

    applications and services.

    Wireless Ethernet Compatibility Alliance (WECA)seeks to attest interoperability of products based on

    the 802.11b specification, and certify them Wireless

    Fidelity (Wi-Fi) compatible. They endorse Wi-Fi as

    the global wireless LAN standard across all marketsegments[1].

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    Many other organizations such as the W3C, Wireless

    DSL Consortium, and other institutions havestandards directly affecting the wireless industry,

    though they are not specific to wireless

    communications. For example, XML and Web services

    standards are increasingly part of the developmentand deployment to server and desktop processing,

    but they are equally applicable to wireless

    applications. Several new standards groups are being

    formed to address specific issues regarding mobile e-commerce.

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    Wireless Communication Platforms

    for LANS

    Despite the prevalence of standards committees in

    the wireless industry, there is no single unifying

    standard. It is important for enterprises to

    consider all the aspects involved in mobile

    support while contemplating a strategy for

    mobile e-commerce. Some of the key criteria inchoosing a wireless network specification include:

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    Average size of transfers

    Number of devices in the wireless network

    Others

    Range of transmission

    Security measures

    Speed of network

    Wireless networks may operate in one of twomodeson demand and infrastructure mode.

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    On Demand Mode (Peer-to-Peer)

    Each mobile device, also known as a mobile

    client, communicates with the other devices in

    the network, within a specified transmission

    range or cell. This is described in Figure 8.1[1].

    If a client has to communicate with a device

    outside the specified cell, a client within that

    cell must act as a gateway and perform thenecessary routing.

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    Infrastructure Mode (Wireless LAN)

    Communications between multiple wireless clients are routed by acentral station known as an access point. The access point actsas a bridge and forwards all communications to the appropriateclient in the network whether wireless or wired. Besides havingrouting mechanisms, the access point also has as a Dynamic HostConfiguration Protocol (DHCP) server and other features thatfacilitate wireless communications in a small to large businessenvironment. Residential gateways are similar to access points, butdo not have advanced management features required forcorporate networks or high-traffic environments. A wireless clientmust first be authenticated, and then associated with an access

    point before it can perform any communications. Figure 8.2 showsa typical wireless LAN environment[1]. Enterprises that have astrong mobile e-commerce strategy must make a selection fromthe major wireless LAN specifications available in the markettoday.

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    802.11b The 802.11b specification was defined by the Institute of Electrical

    and Electronics Engineers (IEEE). The 802.11b is used as an

    extension of Ethernet to wireless communication, and as such isquite flexible about the different kinds of network traffic thatpasses over it. It is primarily used for Transmission ControlProtocol/Internet Protocol (TCP/IP), but also supports AppleTalkand other PC file sharing standards. Disparate systems like PCs andMacs may communicate over 802.11b, using PC or PeripheralComponent Interconnect (PCI) cards, and even some of the newerhardware, utilizing Universal Serial Bus (USB) and other forms of802.11b based wireless network cards. Adapters for PDAs, such asPalm OS and PocketPC based devices are also available.

    The 802.11b facilitates the wireless transmission of approximately

    11 Mbps (Megabits per second) of raw data at distances rangingfrom a few feet to several hundred feet over the standard 2.4 GHz(GigaHertz) unlicensed band. The coverage distance depends online of sight, obstacles, and unforeseen obstacles. Several newprotocols based on 802.11b, but not compatible with it, are also

    being released.

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    802.11a

    Protocol 802.11a transmits 54 Mbps over the 5 GHzband. This is ideal for large data file transfers and

    bandwidth intensive applications over a limited

    area. Although performance and throughput are

    significantly increased, the transmission range is

    notably reduced.

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    802.11g

    Protocol 802.11g transmits 22 Mbps over 2.4

    GHz. This specification is considered to be the

    next generation wireless network platform for

    the enterprise, workingt wice as fast as the

    current 802.11b specification. However, this is

    still a work in progress.

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    Bluetooth

    This wireless network specification, defined by the BluetoothSpecial Interest Group, is ideally suited for Personal Area Networks(PANs) that operate in short ranges and need a robust wirelessnetwork that allows transmission of bandwidth intensive

    information.B

    luetooth specifications also promote interdevicecommunications, so mobile phones can communicate to PDAs,notebook PCs with laptops, and so on. Although it uses theunlicensed 2.4 GHz band for transmission, its transmission is fasterthan the 802.11b networks in both on demand and infrastructuremodes. Bluetooths range is, however, much less. Bluetooth

    technology works well for on demand networks and situations inwhich device-to-device communication is desired. For example,you can wirelessly connect from your PDA to a printer to printdocuments, or perhaps synchronize your desktop with your PDAover the air.

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    WirelessWANS

    Although the preceding architectures are

    specific to wireless LAN environments,

    employees that are outside the coverage area

    are required to connect through wireless

    carriers that provide support for a wireless

    wide area network (WAN) environment. There

    are several wireless WAN protocols used allover the world.

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    Code Division Multiple Access

    (CDMA)

    With CDMA, a large number of users are able to

    access wireless channels on demand. Used by

    most digital mobile phone companies today,

    the performance is almost 8 to 10 times better

    than traditional analog cell phone systems.

    The latest generation of this technology is

    called 3G and is much anticipated by manymobile users.

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    Global System for Mobile (GSM

    The GSM wireless platform provides full voice and datasupport with worldwide roaming capabilities. Includedin the GSM family is the General Packet Radio Service(GPRS) platform for delivering Internet content on

    mobile devices, and the Enhanced Data rates for GSMEvolution (EDGE) and Third Generation GSM (3GSM)for delivering mobile multimedia.

    Most wireless carriers base their offerings on thepreviously mentioned platforms, leveraging the

    strengths of the protocol they decide to use. Forexample, services offered by Sprint PCS and VerizonWireless are based on CDMA, whereas AT&T Wirelessand T-Mobile use GSM.

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    Facilitators of aWireless Environment

    In order to facilitate a mobile e-commerce

    environment, participation of several partners

    is required, namely:

    Independent hardware vendors (IHVs)

    Independent software vendors (ISVs)

    Mobile device manufacturers Service providers (SPs)

    Wireless operators (or carriers)

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    Wireless HardwareThere are numerous devices that are wireless-enabled to facilitate an

    efficient mobile workforce. Some of the top companies thatprovide these devices are:

    Compaq: The makers of iPAQ handheld computers and notebook

    PCs. They are used in many enterprise settings due to their

    versatility and high performance. They use Microsofts PocketPCplatform as their operating system.

    Kyocera: They specialize in mobile phones with PDA capabilities,

    using the Palm OS.

    Nokia: The leading mobile phone manufacturer, with innovatingproducts that combine mobile phones, PDAs, and other features.

    Palm: Currently the leading provider of PDAs; their operating

    system, called Palm OS, is a popular platform for wireless

    application deployment.

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    Research In Motion (RIM): The makers of the increasinglypopular Blackberry wireless devices that allow mobile users tosend and receive e-mail.

    Symbol: The leading manufacturer of wireless devices andscanners for retail, utilizing the latest technology in bar code

    scanning[1].

    Wireless devices add value to the enterprise only when theyconnect to the IT infrastructure and are actively supported bythe administration. Access points, network cards, and othercomponents essential to the deployment of a wirelesscommunications infrastructure are available from severalvendors, including:

    3Com

    Cisco[4]

    Fujitsu

    HP

    IBM

    Siemens[1]

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    Wireless Operators

    Wireless operators are organizations that provide the hardware

    and communications infrastructure to make wireless

    transmission possible in a wireless LAN and/or a wireless WAN

    environment (see Figure 8.3)

    [1]

    . Most of these provide basicwireless phone services and many of them now offer services to

    transmit data in various forms. The top three wireless carriers

    worldwide are listed in Table 8.1[1].

    Wireless Operator Country ofService

    Vodafone Germany

    China Mobile China

    N

    TT DoCoMo Inc. Japan

    Table 8.1: The top three international wireless operators

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    The top wireless carriers in the United States are:

    AT&T Wireless Cingular Wireless

    Sprint PCS

    Verizon Wireless[1]

    Depending on the geographical scope of your

    organization, you will have to choose the right

    partner who can provide the required regional

    and/or national coverage necessary for your e-commerce.

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    Wireless Software

    The wireless software industry is still maturing; furthermore,

    although most of the players are niche solution providers,very few actually provide substantial value to enterprisedeployments. Ranging from low footprint applications likemini-browsers or PDA utilities, to more sophisticated

    solutions like interdevice communications or globalpositioning systems, wireless software vendors are engaged inseveral innovative research and development initiatives.Companies such as Microsoft, Sun, Palm, and others areactive in this area.

    When deploying a mobile e-commerce strategy, you have toconsider the right combination of wireless networkarchitecture, platforms, infrastructure components, devices,and applications in order to be successful. Figure 8.3 depicts a

    typical wireless architecture adopted by most enterprises.

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    Concerns for the Mobile EnterpriseAlthough it is one thing for organizations to keep up with the latest

    industry trends, making it happen in everyday life is a totallydifferent story. The following are some of the key concerns ofenterprises that are contemplating a mobile e-commerce strategy:

    Security: Wireless networks are very easy to break into anddifficult to monitor. Your enterprise assets must be protected.

    Management: Effective management of the components thatmake up a mobile enterprise, all the way from servers to themobile devices, is an integral concern.

    Information access: Corporate information and businessintelligence must be made accessible to your mobile workforce.

    Return on investments: Wireless connections should perform asgood as, if not better than, wired connections. They should addvalue to the enterprise and generate revenue. The benefits shouldbe measurable in some form. ROI and business continuity isimportant[1].

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    Developing Your Mobile E-Commerce

    Business Strategy

    All your wireless communications and other mobileactivities are an integral part of your e-commerce.

    Choose an enterprise-wide solution that covers

    your e-commerce from end to end, providing all the

    required measures for security, management, and

    information access.

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    Ensuring Your Wired Enterprise

    Infrastructure Is in Order First

    It is easier to integrate a wireless network into

    a well-managed wired environment. And, its

    even easier at an enterprise-wide scale.

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    Choosing the Right Partner

    You should get into partnerships with the right

    companies that can help you with your

    specific needs. Work with systems integrators

    who have a focused wireless practice. It is,

    therefore, extremely important to choose the

    right software vendor to deliver an integrated,

    comprehensive, and reliable enterprise-widesolution for your e-commerce.

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    Anticipating Change and Leveraging

    New Technologies

    The wireless industry is changing rapidly.

    Mobile devices are getting smaller, faster, and

    more capable. Performance of wireless

    networks is steadily improving. Opportunities

    to leverage mobile technologies will continue

    to grow. Associate with companies that will

    change with the times and yet be stable inwhat they do best.