M-COMMERCE, L-COMMERCE, AND PERVASIVE COMPUTING

14.10 M-COMMERCE, L-COMMERCE, AND PERVASIVE COMPUTING

M o b i l e c o m m e r c e a n d its variants are o n e o f t h e m o s t i n t e r e s t i n g d e v e l o p m e n t s i n electronic c o m m e r c e .

MOBILE COMMERCE M o b i l e c o m m e r c e ( m - c o m m e r c e ) refers t o the c o n d u c t o f e - c o m m e r c e f r o m m o b i l e

c o m p u t i n g d e v i c e s (e.g.. cell p h o n e s , P D A s ) , usually o n wireless n e t w o r k s . T h e n u m b e r of cell p h o n e s in u s e w o r l d w i d e , according to t h e G a r t n e r G r o u p , t o p p e d 1.3 billion by 2004. S c o r e s o f m i l l i o n s o f P D A s are also s o l d e a c h year. T h e s e d e v i c e s c a n b e c o n - n e c t e d t o the Internet, m a k i n g i t p o s s i b l e t o c o n d u c t transactions f r o m a n y w h e r e t h e users are. I n addition, m a n y c o r p o r a t e e m p l o y e e s are m o b i l e — w o r k i n g a t h o m e , o n

c l i e n t s ' sites, o r o n t h e r o a d . G a r t n e r G r o u p p r o j e c t e d t h a t 3 0 t o 5 0 p e r c e n t o f all e m p l o y e e s i n d e v e l o p e d c o u n t r i e s will b e m o b i l e , a t least part o f t h e t i m e , b y 2 0 1 0 .

T h e s e e m p l o y e e s n e e d t o collaborate and c o m m u n i c a t e with i n - o f f i c e e m p l o y e e s and to a c c e s s c o r p o r a t e data, rapidly a n d c o n v e n i e n t l y . S u c h a capability is p r o v i d e d by m-commerce.

THE ADVANTAGES OF M-COMMERCE T w o m a i n characteristics are driving t h e interest in m - c o m m e r c e : m o b i l i t y and reach-

ability. Mobility i m p l i e s that Internet access travels w i t h the customer. M - c o m m e r c e is appealing because wireless offers customers information from any location. This

e n a b l e s e m p l o y e e s t o contact the o f f i c e f r o m a n y w h e r e t h e y h a p p e n t o be, and a l l o w s c u s t o m e r s to act instantly on any s h o p p i n g i m p u l s e . Reachability m e a n s that p e o p l e

can be c o n t a c t e d at any time, w h i c h m o s t p e o p l e s e e as a c o n v e n i e n c e of m o d e r n life. ( O f course, y o u can b l o c k certain t i m e s o r certain m e s s a g e s . ) T h e s e t w o characteristics, m o b i l i t y and reachability, break the barriers of g e o g r a p h y a n d time. As a result, m o b i l e

d e v i c e s c a n b e u s e d t o o b t a i n r e a l - t i m e i n f o r m a t i o n a n d t o c o m m u n i c a t e f r o m any- w h e r e , a t a n y time. For details o n m - c o m m e r c e , s e e S a d e h ( 2 0 0 2 ) and K a l a k o t a and R o b i n s o n (2001).

M o b i l e d e v i c e s m a k e p o s s i b l e location-based commerce, a l s o k n o w n as L-commerce. L-commerce delivers information about goods and services based on where you (and your mobile device) are located. For example, in San Francisco, N e x t B u s service ( n e x t b u s . c o m ) k n o w s , b y the u s e o f g l o b a l p o s i t i o n i n g s y s t e m s ( G P S ) , w h e r e the b u s e s are, in real-time: w h e n y o u call on y o u r cell p h o n e to ask a b o u t a par- ticular bus stop, the s y s t e m will c o m p u t e w h e n the b u s will actually arrive there. O t h e r localization s y s t e m s will find w h e r e y o u are l o c a t e d , a n d b a s e d o n this i n f o r m a t i o n will s e n d y o u a d v e r t i s e m e n t s for v e n d o r s l o c a t e d nearby.

APPLICATIONS OF M-COMMERCE

809 P A R T V IMPLEMENTING M S S IN THE E-BUSINESS E R A

• Online banking. M o b i l e b a n k i n g is t a k i n g o f f rapidly. F o r e x a m p l e , t h e S w e d i s h Postal B a n k a l l o w s c u s t o m e r s t o m a k e p a y m e n t s f r o m their h e a d s e t s , and

M a r i t a N o r d a b a n k e n i n S w e d e n a l l o w s several o t h e r t y p e s o f b a n k i n g transac- tions. Citibank has m o b i l e b a n k i n g s e r v i c e s i n S i n g a p o r e , H o n g K o n g , a n d o t h e r countries.

• Micropayments. C o n s u m e r s in Japan can u s e their m o b i l e p h o n e s to p a y f o r pur- c h a s e s f r o m v e n d i n g m a c h i n e s . I n t h e S c a n d i n a v i a n countries, c o n s u m e r s p a y f o r p a r k i n g in u n a t t e n d e d p a r k i n g lots, f o r car w a s h e s , f o r g a s o l i n e , and f o r s o f t

drinks in v e n d i n g m a c h i n e s . Similar capabilities exist in F r a n c e a n d in several o t h e r c o u n t r i e s w o r l d w i d e . I n G e r m a n y , c u s t o m e r s c a n p a y f o r transportation, including taxis, f r o m their m o b i l e p h o n e s .

• Online gambling. E u r o b e t , a large v e n d o r in Britain, a l l o w s o n l i n e g a m b l i n g . In H o n g K o n g y o u c a n u s e y o u r cell p h o n e t o b e t o n h o r s e races. • Ordering and service.

B a r n e s a n d N o b l e h a s c r e a t e d a s e r v i c e for P D A d e v i c e s

and cell p h o n e s that a l l o w s users t o d o w n l o a d their f a v o r i t e m u s i c clips t o t h e devices. Y o u c a n order b o o k s o n l i n e a s well.

• Online auctions. Q X L . c o m , an o n l i n e British a u c t i o n c o m p a n y , lets u s e r s o p e n a c c o u n t s o n its W e b sites a n d bid for items, using cell p h o n e s . E B a y a l s o c o n d u c t s o n l i n e a u c t i o n s that c a n b e a c c e s s e d b y cell p h o n e s . • B2B applications. R e m o t e e m p l o y e e s c a n h a n d l e tasks l i k e c h e c k i n g i n v e n t o r y or s u b m i t t i n g o r d e r s w h i l e in t h e field. T h e I n t e r n e t t h u s b e c o m e s a r e p o s i t o r y of

c o r p o r a t e i n f o r m a t i o n , a n d a virtual w a r e h o u s e of g o o d s a n d services. • Online stock trading. O n l i n e s t o c k trading c a n be d o n e all o v e r t h e w o r l d via a

cell p h o n e . D a g e n s Industri o f S w e d e n a l l o w s subscribers t o t r a d e o n t h e S t o c k h o l m S t o c k E x c h a n g e a n d r e c e i v e financial d a t a u s i n g a P D A . E * T r a d e

a l l o w s trading f r o m m o b i l e d e v i c e s in s e v e r a l countries; in K o r e a , a m i l l i o n cus- t o m e r s t r a d e s t o c k s f r o m their cell p h o n e s , i - m o d e , d i s c u s s e d b e l o w , o f f e r s o n l i n e s t o c k trading p l u s v a r i o u s o t h e r m - c o m m e r c e activities.

• Mobile Portal, i - m o d e ( n t t d o c o m o . c o m ) is a p i o n e e r i n g w i r e l e s s s e r v i c e that t o o k

Japan by s t o r m as of 1999. W i t h a f e w clicks of a h a n d s e t , i - m o d e users c a n c o n - duct a large variety of m - c o m m e r c e activities, r a n g i n g f r o m o n l i n e s t o c k trading

and b a n k i n g t o p u r c h a s i n g travel tickets and b o o k i n g k a r a o k e r o o m s . Y o u c a n also s e n d a n d r e c e i v e c o l o r i m a g e s v'ia i - m o d e . T h e s e r v i c e h a d o v e r 4 0 m i l l i o n

users b y t h e e n d o f 2003. i - m o d e u s e r s c a n a c c e s s train a n d b u s t i m e t a b l e s , g u i d e s t o s h o p p i n g areas, and a u t o m a t i c n o t i f i c a t i o n o f train delays; g e t d i s c o u n t

c o u p o n s f o r s h o p p i n g a n d restaurants; p u r c h a s e m u s i c o n l i n e ; s e n d o r r e c e i v e p h o t o s ; b u y airline tickets; a n d f i n d i n f o r m a t i o n a b o u t b e s t - s e l l i n g b o o k s .

TECHNOLOGY AND LIMITATIONS T h e i m p l e m e n t a t i o n of m - c o m m e r c e r e q u i r e s a m u l t i t u d e of infrastructures: h a r d w a r e

(cell p h o n e s , P D A s , etc.), s o f t w a r e ( m i c r o b r o w s e r s , o p e r a t i n g systems, a p p l i c a t i o n s o f t - w a r e ) , and w i r e l e s s t r a n s m i s s i o n m e d i a (e.g., satellites). S o m e o f t h e m a j o r l i m i t a t i o n s o n m - c o m m e r c e relating t o t h e s e t e c h n o l o g i e s are i n s u f f i c i e n t b a n d w i d t h , lack o f stan- dard s e c u r i t y p r o t o c o l s , h i g h c o s t o f 3 G l i c e n s e s , h i g h p o w e r c o n s u m p t i o n (i.e., t h e need to charge batteries frequently), and possible health hazards. For details see S a d e h , 2002.

PERVASIVE COMPUTING W i t h p e r v a s i v e c o m p u t i n g , w e e n v i s i o n a f u t u r e i n w h i c h c o m p u t a t i o n b e c o m e s part o f

the environment. The computer forms (workstations, personal computers, personal

C H A P T E R 14 ELECTRONIC COMMERCE 810

occupy only a small niche in this n e w computational world. Our relationship to perva- sive c o m p u t i n g will differ radically f r o m our current r e l a t i o n s h i p with computers. W h e n computation b e c o m e s part of the environment, m o s t human-computer interac- tion will be implicit, and it will have to take account of physical space. Physical space rarely matters in current human-computer interaction: but as computational devices

b e c o m e part of furniture, walls, and clothing, physical space b e c o m e s a necessary con- sideration. In pervasive computing computation will be e m b o d i e d in things, not c o m - puters. We can already put c o m p u t a t i o n almost anywhere. E m b e d d e d c o m p u t a t i o n controls brakifig and acceleration in our cars, defines the capability of medical instru- ments, and runs virtually all machinery. H a n d - h e l d devices (especially cell p h o n e s and pagers) are c o m m o n p l a c e ; serious c o m p u t a t i o n a l wristwatches and other wearables

are b e c o m i n g practical; c o m p u t a t i o n a l furniture and r o o m s are d e m o n s t r a b l e . Relentless progress in semiconductor technology, l o w - p o w e r design, and wireless tech- nology will m a k e e m b e d d e d computation less and less obtrusive. Computation is ready to disappear into the environment.

Pervasive computing is closely related to intelligent systems and DSS. For exam- ple, in the Elite-Care Project (see Stanford, 2002 and the O p e n i n g Vignette to Chap- ter 15), patients are monitored by portable or wearable devices, and such decisions as directing a patient or issuing an alert are m a d e by the system.

Pervasive computing (Burkhardt et al., 2002) is based on advances in intelligent systems, mobile computing, and distributed computing. This futuristic t e c h n o l o g y will enable the automation of many decisions ( A m o r , 2001).