M - Commerce

20042512Mi Yul Park

2005-08-09 2

Table of Contents

• Introduction• Attributes of M-Commerce• Examples• M-commerce: Hardware• M-commerce: Software• M-commerce: Protocol• WAP• Limitation• Q&A

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Mobile Commerce

• Mobile commerce (m-commerce, m-business): the use of Mobile Devices, such as Mobile phones, PDA, in order to communicate, inform, transact using text and data via connections to public and private Networks. • Creates opportunity to deliver new services

to existing customers and to attract new ones

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M-Commerce: 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 (2006-2010)

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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• Smart phones: Internet-enabled cell

phones with attached applications

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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

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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

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NextBus: A Superb Customer Service (1/3)

• The Problem• Buses in San Francisco have difficulty

keeping to 20 minute schedule during rush hours

• Posted schedule becomes meaningless

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NextBus: A Superb Customer Service (2/3)

• The Solution• Bus riders carrying Internet-enabled cell

phone or PDA helps:• Find estimated arrival time at each stop, digitally

in real time• Soon location-based advertisements will pop up—

you have time to get a cup of coffee before the bus arrives—Starbuck’s is 200 feet to the right

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NextBus: A Superb Customer Service (3/3)

• The Results• Passengers in San Francisco are happy with the

system• Worries about missing the bus are diminished• May discover they have time for a cup of coffee

before the bus arrives• Bus company can:

• Schedule better• Arrange for extra buses when needed• Improve operations

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Examples of M-Commerce

• GPS System• Mobile banking• Mobile Stock Market• Mobile Download (Game or

Character)

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Example: SK Telecom - NEMO

• Mobile e-Money services• Send payment via NEMO

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Wide application

M- commerce

Entertainment• Music• Games• Graphics• Video• Pornography

Communications• Short Messaging• Multimedia Messaging• Unified Messaging• e-mail• Chatrooms• Video - conferencing

Transactions• Banking• Broking• Shopping• Auctions• Betting• Booking &

reservations• Mobile wallet• Mobile purse

Information• News• City guides• Directory Services• Maps• Traffic and weather• Corporate information• Market data

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Classes of M-Commerce Applications

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M-Commerce Hardware

• Cellular (mobile) phones• Smart phones• PDA• Interactive pagers• Other devices

• Laptops• ETC

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M-Commerce: Software

• Microbrowser• Mobile client operating system (OS)

• Windows 2000/2001/NT, Palm OS, Win CE

• Bluetooth - a chip technology and WPAN standard that enables voice and data communications between wireless devices over short-range radio frequency (RF)

• Mobile application user interface• Back-end legacy application software• Application middleware• Wireless middleware

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M-Commerce: Protocol

• MANET (Mobile Ad-hoc Network)• WAP (Wireless Application Protocol)• Bluetooth• Mobile IP

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WAP Architecture

Web Server

Content

CGIScripts

etc.

WM

L D

ecks

wit

h W

ML

-Scr

ipt

WAP Gateway

WML Encoder

WMLScriptCompiler

Protocol Adapters

Client

WML

WML-Script

WTAI

Etc.

HTTPWSP/WTP

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WAP - Wireless Application Protocol

• Forum: wapforum.org• co-founded by Ericsson, Motorola, Nokia, Unwired Planet

• Goals• deliver Internet services to mobile devices• independence from wireless network standards

• Browser• “micro browser”, similar to existing web browsers

• Script language• similar to Java script, adapted to mobile devices

• Gateway• transition from wireless to wired world

• Server• “wap server”, similar to existing web servers

• Protocol layers• transport layer, security layer, session layer etc.

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Limitations of M-Commerce

• Usability Problem• small size of mobile devices (screens, keyboards,

etc)• limited storage capacity of devices• hard to browse sites

• Technical Limitations• lack of a standardized security protocol• insufficient bandwidth• 3G licenses• transmission and power consumption limitations• heterogeneity of fragmented networks

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Q & A

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WAP Risks

• WAP Gap• Claim: WTLS protects WAP as SSL protects HTTP• Problem: In the process of translating one protocol to

another, information is decrypted and re-encrypted• Recall the WAP Architecture

• Solution: Doing decryption/re-encryption in the same process on the WAP gateway

• Wireless gateways as single point of failure