ITPC 2003, Kathmandu, Nepal

Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA

P. Venkataram Protocol Engineering and Technology Unit, ECE Dept.

Indian Institute of ScienceBangalore, 560 012, INDIA

e-mail: [email protected]://pet.ece.iisc.ernet.in/pallapa/


Organization of Talk

What is Mobile Commerce

Requirements of Mobile Commerce

Developments of Mobile Commerce

Challenges in Mobile Commerce

Some of the existing Applications of Mobile Commerce

Current Scenario

Research Activities

Conclusion


Mobile commerce is a natural result of combining two strongly emerging trends: electronic commerce and pervasive computing.

Internet + Wireless + E-Business = M-Business Going online anywhere at anytime and using multiple devices New business opportunities

M-Commerce represents another wave of the e-commerce invasion that is changing the nature of business in the 21st century.

Exponential growth (keeps growing)

What is Mobile Commerce


Fixed Vs Mobile Commerce

WAP ServerWAP Server Web ServerWeb Server

Check Bank

Balance

Check StockPrice

PurchaseStock

MultilingualContent

Database

CustomerDatabase

ProductDatabase


Ubiquitous computingAnywhere, anytimeConvenient, instant connectivity

Very personalDevice owner has an exclusive access to the contents/servicesService providers know who the owner is

Varied users, usage contextsElementary school students, grandpas, grandmasLocation & context-sensitive applications and services

AmbidextrousWork & Play: Business purpose + Personal fun

People seem willing to pay for mobile services

Characteristics of M-Commerce


Requirements for M-Commerce

Hardware technologies for ubiquitous computing

Software infrastructure for ubiquitous computing

Sensing and interaction with the physical world

Graceful integration of human users

Systems considerations, including scalability, security, and

privacy.


Problems in M-Commerce

What distinctive requirements does mobile commerce impose on pervasive computing?

What properties should an underlying pervasive computing platform possess in order for mobile commerce applications to achieve good usability and wide acceptance?

How can the requirements raised by mobile commerce be met?

What are some possible approaches to addressing each of the requirements?

What system architectures and application models are appropriate for mobile commerce?


Technological Challenges of M-Commerce

Usability( Consistent and

Reliable Interface)

Security( Peace of Mind)

PersonalizedServices

IntelligentServices

( Smart about you, your location )Pervasive &

Flexible Payment( Pay for any service

Using Mobile) ConsultationCapabilities

( Phone a Friend )


Usability

Intelligent and Personalized Services It is useful to determine what the mobile industry considers a service (a set of functions offered to a user by an organization)

Personalized services have access to important user information

that enables them to tailor their operation to the needs of the served

user.

Examples include speed dialing using personal contact lists or

address book

Pervasive and Flexible Payment MechanismsIt may be possible to replace credit-cards and paper money by

making mobile phones act as electronic wallets.

User’s credit-card details may be stored on the phone or on the

user’s Subscriber Identity Module (SIM) card.

“Access Tokens” are assigned when subscribing to a service or

requesting to buy an item.

Technological Challenges of M-Commerce (cont’d)


SecurityAuthentication “is a property by which the correct identity of an

entity or party is established with a required assurance.”

Consultation CapabilitiesThe Session Initiation Protocol (SIP) should be the biggest enabler

of these kinds of services.These features should enable consultation sessions to be

established where a potential customer is taken through the features of a product by an expert using a multimedia presentation and/or a website. Computing Environment

Infantile: The area is in its infancy and needs lot of coordination between

the industries and institutions to bring out a common standard for resolving the issues of pervasive computing .



User input (voice, text, gestures) ; Human computer interaction technology should be developed for

voice recognition, gesture recognition and natural language processing of the text.

Context aware systems: The smart devices software and hardware architectures should

be scalable, and secured to handle context aware operations, which

may involve communication between diverse users and components.IPv4: A bridging support should be developed for embedded devices to communicate through Internet.Anonymity: The devices should allow others devices to track its operation

and communicate among a group of components and users in a

secured manner.Ubiquity: The devices should be capable of ubiquitous computing.



Building Blocks of M-Commerce


User EquipmentA mobile phone or PDA acts as the user endpoint

Access NetworkTo provide authentication to validate a user’s attempt to consume

network resources

Service NetworkLinked to the Access Network, probably via secure Virtual Private

Network(VPN). The Service network provides personalized portals to many

services, including commerce.

Building Blocks of M-Commerce


Wireless developmentFirst-generation wireless technology was the cellular phoneSecond generation wireless technology, which includes digital

cellular phones, is currently in use worldwideThird generation, or 3G technology will enable wireless devices to

send and receive data as much as seven times faster than a standard 56K modem (0.4M ~ 2Mbps)

Fourth generation, networks designed to uninterrupted high speed data transfer

Wireless devicesPersonal digital assistants (PDAs)Digital cellular phonesTwo-way pagers, laptops…

Enabling Technologies: Mobile Commerce


Clear trend for the convergence of several mobile devices including intelligent home appliances

PDA phone: PDA + Cell phone

Phones with MP3 player, voice recorder, digital camera, GPS

Wireless control of refrigerator,TV, DVD through a cell phone

Enabling Technologies: Mobile Commerce (cont’d)


Mobile Communications

GSM GSM (Global System for Mobile communication) is a digital mobile telephone

system that is widely used in Europe and other parts of the world. GSM uses a variation of

time division multiple access (TDMA).GPRSGeneral Packet Radio Services (GPRS) is a packet-based wireless

communication service in GSMCDMACDMA is a form of multiplexing, which allows numerous signals to occupy a

single transmission channel, optimizing the use of available bandwidth.

Mobile-IPMobile IP is an Internet Engineering Task Force (IETF) standard

communications protocol that is designed to allow mobile device users to move from one

network to another while maintaining their permanent IP address.

Enabling Technologies: Mobile Commerce (cont’d)


Tools supporting development of Devices in Mobile Commerce

Object Technology is playing a major part in shaping pervasive computing paradigm.

Java, C++ and XML are often used for implementation at the server side, and in the meantime as well as on the pervasive device.

The Open Services Gateway initiative (OSGi) will play a key role in operating pervasive devices.

Hardware / Software Tools

Application-Specific Integrated Circuitry (ASIC)

Speech recognition

Gesture recognition System on a Chip (SoC)

Perceptive interfaces Smart matter

Field Programmable Logic Gates (FPLG) Flexible transistors

Micro Electro Mechanical Systems (MEMS). Reconfigurable

processors


Banking

Financial services

Security services

Shopping

Advertising

Entertainment

Customer care

Information provision Adhoc auction, where a particular user advertises the availability of aparticular commodity, and invites bids.

M-Commerce benefits can be seen in :


Applications of M-Commerce

Mobile FinancialApplications (B2C, B2B)

Banking, brokerage, and payments for mobile users

Mobile Advertising (B2C)Sending user specific and locationsensitive advertisements

Mobile InventoryManagement (B2C, B2B)

Location tracking of goods, boxes,People

Proactive ServiceManagement (B2C, B2B)

Transmission of informationrelated to aging components toVendors

Product Locating andShopping (B2C, B2B)

Locating/ordering certain itemsfrom a mobile device

Mobile Auction (B2C, B2B)Services for customers to buy/sellcertain items


Applications of M-Commerce (Cont’d)

Mobile Booking and Ticketing(B2C, B2B)

Services allowing customers to book, tickets for travel, hotel and events

Mobile Marketing Research (B2C)

Obtaining instant feedback from customers

Mobile CRM, Customer Support(B2C, B2B)

Customer acquisition and retention byproviding truly personalized content

Mobile Entertainment Service(B2C)

VOD, MOD, gambling, interactive games and other services

Mobile Distance Education(B2C, B2B)

Taking classes, training courses using streaming video and audio

Wireless Business Re-engineering (B2C, B2B)

Information up/downloading by mobile users (e.g. adjusters in an insurancecompany.


Ubiquitous interactivity

Personal device: always handy and available at all times on a person

User identity: The device carries its user identity; distinctly personal and the usage can be tracked down to an individual rather than households (e.g., PC)

Location aware

Easy to track down where the user physically is as long as the wireless device is on (using GPS)

Location aware Applications


Vehicle tracking

Automatic Vehicle Location (AVL): Using GPS device installed in a vehicle, finds the location of a vehicle

Can be used for rapidly dispatching taxis, ambulances, police vehicles, trucks

Can be used for navigating and optimal routing in unfamiliar geographical areas or heavy traffic

Can also be used for tracking cargo, delivery, baggage, giving customers more accurate info

Location aware Applications (cont’d)


Location aware Applications (cont’d)

Mobile GPS Unit Communication

NetworksBase Station

GPS Satellites


Location based services using maps

GeocodingGeocoding

MappingMapping

RoutingRouting

ContentContent

Enhance Billing Personalized Portals Friend Finder Emergency Assistance Find nearest service

Find Location

Visualize

Directions

Intelligence


To be one of the most important components of mobile commerce

Other applications like

Mobile banking, trading, brokerage, money transfer

Easy identification and authentication both for restricted access

and for payment purposes

Small purchases such as vending through a wireless network

Mobile Applications in Finance

$ 200

Ok Clear

Options

PAID You have paid

$200Thank You


One of the most prominent area

Other applications likeVideo-on-demand (VOD), MP3, ring tone, horoscope, fortune-telling, interactive games, news etc.,

Required Technology

Mobile devices with multimedia capabilities

High bandwidth wireless networks

Video compression techniques

Continuous connectivity

Mobile services using Multimedia


A secure environment is required, with the establishment of a

system ofelectronic signatures.

The development and use of signature and authentication

products and services is still in its introductory stage

General security requirements to achieve interoperability

between entities involved in the mobile signature architecture

Middleware issues on the devices

Human Computing Interaction issues

Gateways and infrastructure issues

Location-based services

Transactions Model

Database management

QoS management

Research Issues in M-Commerce


Pros and Cons of Mobile Commerce

E-CommerceE-Commerce M-CommerceM-Commerce

Desktop / PC Mobile Phone / PDA Greater Processing, multimedia and display capabilities of PCs Greater presentation facilities makes the PC more applicable to larger purchases

Online product browsing Personalized Advertising Convenience for a technologically aware user. Choice of many online stores for a wide range of items discount Notifications.

Location based advertising Greater Convenience Capture of buying impulses Alternative payment mechanism e.g. Phone Bill Supports new mobile services

Dialup hassles Less possibility of impulse spending

Distrust of technology, resistance to change Fears about security online transactions Bad design of many user interfaces Slow connections if broadband access not available

Smaller screen size can degrade user experience Small or immature input technologies Market may be less open than e-commerce market Tariffs are relatively high


Pros and Cons of Mobile Commerce (cont’d)

User point of view

Advantages :

Anytime, anywhere access to commerce services;

Disadvantages :

Small size of mobile device screens and their relatively limited

multimedia Capabilities

Relatively high costs of mobile services/ Tariffs for data

transmission over public mobile networks



Network Operator point of view

Advantages :

Huge numbers of predicted users - 650 Million 3G wireless

users by 2010

Control users’ access service providers and service

providers’ access users.

Disadvantages :

Must increasingly ‘open up’ their network services and

information to external service providers if they are to provide a wide range of commerce services.

concerned about losing control of their networks and the

value that they generate.



Service Provider point of view

Advantages :

Information about user location means that advertisements

can be

location-aware

Completely new services can be created, statically or

dynamically, based on convergence of information standards and communications networks.

Disadvantages :

• Future mobile networks are likely to be more ‘closed’ than the

public internet as network operators seek to encourage and/or limit network users to choosing ‘preferred’ Service Providers.


Conclusion

M-Commerce will be at least as successful as e-commerce if the underlying technology and standards accentuate the advantages and minimize the disadvantages.

The current specifications for 3rd Generation Mobile Networks and Services from the 3GPP provide a strong platform for M-Commerce

Consistent and pervasive access to services across varied wireless networking topologies will be a key factor in the success of mobile commerce.

Documents

ITPC 2003, Kathmandu, Nepal