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ECom-IComp Experts Address – Hong Kong University – May 27,2010 Mobile Commerce: What Will the App Store of the Future Look Like? Store of the Future Look Like? Norman Sadeh Director, Mobile Commerce Lab. School of Computer Science School of Computer Science Carnegie Mellon University Explosion in Mobile Device Ownership By the end of 2010 – source: ITU Feb 2010 5B cell phone users 1B mobile broadband users Smart phone sales 54M smart phones in Q1 2010 –50% YoY growth B t l t d h t f But also towards a host of wearable devices & smart appliances Copyright © Norman Sadeh, 2005-2010 Orders of Magnitude (US only) •Over $40B/year in mobile data revenue 2% f ll l S (l 2009) Copyright © Norman Sadeh, 2005-2010 •Approx. 25% of all wireless revenues in US (late 2009) …Also in Hong Kong… Q1 figures from Smartone Smartone: Q1 2010 Copyright © Norman Sadeh, 2005-2010 Source: http://www.smartone.com.hk/about/investor/results/english/0910interim_present.pdf

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Page 1: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

ECom-IComp Experts Address – Hong Kong University – May 27,2010

Mobile Commerce: What Will the App Store of the Future Look Like?Store of the Future Look Like?

Norman SadehDirector, Mobile Commerce Lab.School of Computer ScienceSchool of Computer ScienceCarnegie Mellon University

Explosion in Mobile Device Ownership

By the end of 2010 – source: ITU Feb 2010

5B cell phone users 1B mobile broadband users

Smart phone sales 54M smart phones in Q1 2010

–50% YoY growth

B t l t d h t f But also towards a host of wearable devices & smart appliances

Copyright © Norman Sadeh, 2005-2010

Orders of Magnitude (US only)

•Over $40B/year in mobile data revenue2 % f ll l S (l 2009)

Copyright © Norman Sadeh, 2005-2010

•Approx. 25% of all wireless revenues in US (late 2009)

…Also in Hong Kong…

Q1 figures from SmartoneSmartone: Q1 2010

Copyright © Norman Sadeh, 2005-2010

Source: http://www.smartone.com.hk/about/investor/results/english/0910interim_present.pdf

Page 2: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

i-Mode showed us the way…10+ years ago

i-Mode Subscription – Approx. $3/month

User Traffic Charge – Approx $0.003/packet

9% C i i i b i ti9% Commission on service subscription

91% of service Subscription

$1-3/month

Content Provider

Copyright © Norman Sadeh, 2005-2010

i-Mode Explained Compelling and transparent business model

contributed to a critical mass of contributed to a critical mass of compelling content Reasonable share of revenue

Addressing usability and trust Addressing usability and trust Directory of services

Quality content, better phones, etc.

Leveraged DoCoMo’s billing g ginfrastructure

Copyright © Norman Sadeh, 2005-2010

Growth of i-Mode Customer base

Source: NTTDoCoMo

Copyright © Norman Sadeh, 2005-2010

Apple Re-Discovered i-Mode’s Recipe

“More is not always better”

The i-Phone classic didn’t have 3G, GPS or a good cameraGPS or a good camera

….but what it offered was USABLE!

Copyright © Norman Sadeh, 2005-2010

Page 3: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

Trust & Usability: Beyond the Access Device

By 2007, WAP and J2ME were widely available already butavailable already but… Typing a URL in a mobile browser remained

h lla challenge

Expecting users to download and pay p g p yfor apps was unrealistic

U bilit i i di h &Usability issues: Finding the app & downloading it

Trust issues: “I’m not giving my credit card details to this company I never heard of”

Copyright © Norman Sadeh, 2005-2010

The Advent of the App Store Model

Addresses key usability and trust issues: Directory & search functionality

Ratings Ratings

Payment

Content quality, including security

Copyright © Norman Sadeh, 2005-2010

The App Store Today

50M iPhones, 35M iPod Touch, 1M iPads

A d 200 000 t d Around 200,000 apps today

Over 4 billion downloads

Users spend an average of 30 minutes d i t ti ith a day interacting with apps

Source: Apple

…and a number of others have followed Android Market Symbian Ovi etc Android Market, Symbian Ovi, etc.

Copyright © Norman Sadeh, 2005-2010

Another Measure of Success

Copyright © Norman Sadeh, 2005-2010

Source: AdMob, Fall 2009

Page 4: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

An Increasingly Rich Ecosystem

Thousands of location-based apps

Social networking apps

…this is just the beginning…

Copyright © Norman Sadeh, 2005-2010

Zipcar App: Mobile Device As Remote

Copyright © Norman Sadeh, 2005-2010

Source: App Store

Mobile Device Coupled with External Sensor

Copyright © Norman Sadeh, 2005-2010

Source:http://www.apple.com/ipod/nike/

Cell phones as Sensor Nets

TrafficWhere is everyone right now?Analyze consumer behaviorAnalyze consumer behavior

Copyright © Norman Sadeh, 2005-2010

Source: Sense Networks

Page 5: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

So What Are the Things We Can’t gDo Yet?

A Valentine’s Day Scenario

Valentine’s Day ReminderCharacters: John & Mary

Buy Flowers

C J & y

Intentionall “m ndane”Book Performance

Intentionally “mundane”but not trivial if you want to:

Reserve Table at Restaurant•Access calendar info•Food preferences

Arrange for Transportation•Location•Home address

Send invitation & Set up Reminder•…not just John’s but also Mary’s

Copyright © Norman Sadeh, 2005-2010

N. Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002

What are the Missing Pieces?

Higher degree of context awareness Dialogues with users Abilit to disco e & inte act ith Ability to discover & interact with

different services Not just services identified ahead of

time Security & Privacy New Revenue Sharing Models

Copyright © Norman Sadeh, 2005-2010

In Practice…

The explosion in location-based services can be attributed to the availability of can be attributed to the availability of location APIs Apple SDK Android Symbian etc Apple SDK, Android, Symbian, etc.

Many apps are developed in 6-8 weeks Developers don’t have the resources to

develop an App for our Valentine’s Day p pp yscenario unless … new layers of interoperability are …new layers of interoperability are

introduced…

Copyright © Norman Sadeh, 2005-2010

Page 6: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

MyCampus

Campus as “everyday life microcosm”Campus as everyday life microcosmEnhance campus life through context-aware

services accessible from mobile devices

A growing collection of context-aware A growing collection of context-aware agents/applications that: Users can acquire/subscribe to/invokeCustomize themselves through automated Customize themselves through automated

identification and access of relevant contextual resources

Copyright © Norman Sadeh, 2005-2010

contextual resources

What are Semantic Web Technologies?

Collection of languages (W3C’s RDF/RDFS, OWL, etc.) to: Define ontologies Collection of concepts and relationships

bet een these concepts in a gi en domainbetween these concepts in a given domain e.g. Space, Calendar Activities, Access

Devices User Preferences etcDevices, User Preferences, etc. Facts and rules defined in relation to these

ontologies Shared ontologies enable disparate

applications to communicate with one thanother.

Content becomes machine understandable

Copyright © Norman Sadeh, 2005-2010

Personal Resource Ontology: An Example

PersonalResource

IS-A

Onto

Activity Information

Resource

LocationInformation

ResourceList of Friends

ologyCampus Location Microsoft Outlook

INSTANCE

Sk h k Wi l

Campus LocationTracking

Microsoft OutlookCalendar FactGoogle

Skyhook WirelessLocation Tracking

A t ti id tifi ti f il bl f t t l i f ti

tsCalendar

Copyright © Norman Sadeh, 2005-2010

Automatic identification of available sources of contextual information

Benefits

E t f t t l Easy to re-use sources of contextual information across different applications

Can adapt to resources available for different users at different points in time

Can discover and interact with new Can discover and interact with new services

Copyright © Norman Sadeh, 2005-2010

Page 7: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

What This Might Look Like

Copyright © Norman Sadeh, 2005-2010

Each entity has its own set of policies & policy evaluation agents

How Do You Interact With This?

…Let’s just look at the privacy side

Android Expects You to Agree Upfront

…and never change your mind…

Copyright © Norman Sadeh, 2005-2010

Apple Expects You …

to answer the same …to answer the same question 1000 times…

…with multi-tasking in OS4, they’ll show you which app they ll show you which app accessed your location in the past 24 hours……even if it’s too late…

Copyright © Norman Sadeh, 2005-2010

Page 8: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

We Need Something better

Neither approach scales

N ith h i bl Neither approach is usable

Copyright © Norman Sadeh, 2005-2010

In practice…

People have context-dependent preferences…

Green: ShareRed: Don’tRed: Don t

Copyright © Norman Sadeh, 2005-2010

www.locaccino.org

Copyright © Norman Sadeh, 2005-2010

Feedback Through Audit Logs

Copyright © Norman Sadeh, 2005-2010

Page 9: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

Evaluating the Usefulness of Auditing

Examining Users’ Privacy Rules at the end of the study

Copyright © Norman Sadeh, 2005-2010

Dialogues & User-Oriented Learning NewTechnology

Policy My colleagues can see my locationon weekdays between 8am and 5pm

JanePolicyVisualization

Creation

Jane and Eric are late for our BobPolicy

Policy Enforcement

Jane is in Oakland but I can’t access Eric’s location

meeting. Show me where they are!

B b’

PolicyEnforcingEngines

access Eric s location Bob’sPhone

Why couldn’t Bob see where I was?Eric

Policy Auditing &

Bob is a colleague. So far only your friends can see where you are

Explanation

Refinement What if my colleagues could see my location too?Eric

In the past you denied access to ll S

Dialog

Learningfrom the

Copyright © Norman Sadeh, 2005-2010

Time your colleague Steve

OK, make it just my superiors

from the past

Likely to See a New Privacy Layer

UsersApps developers

Open de elope s APIOpen developers API

User-Controllable Privacy Platform

Policy enforcement engine,i l diti

y

Location middleware provide

Platform providers

incl. auditing

Platform providersData providers (maps, P.O.I)

Copyright © Norman Sadeh, 2005-2010

…This New Privacy Layer

Will have to: S t ich conte t sensiti e Support rich, context-sensitive

privacy preferences

Be capable of supporting auditing and dialogue with users

Be scalable

E t ll t d t id f …Eventually extend to a wide range of personal and contextual attributes

Copyright © Norman Sadeh, 2005-2010

Page 10: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

Concluding Remarks The App Store model addresses fundamental

trust and usability issues Yet, for new context-aware and pervasive

computing applications to emerge, the model will need to evolvewill need to evolve

…Introducing new layers of interoperability: For developers For developers Contextual Attributes, Privacy & Security Support for smart dialogues (incl some machine Support for smart dialogues (incl. some machine

learning to incrementally build/refine user models) For other partners The cell phone is only one piece of the emerging

ecosystem – appliances & services d i h t f h i d l

Copyright © Norman Sadeh, 2005-2010

… and richer set of revenue sharing models

Expect….

Many more applications that: T k d t f i i l ich Take advantage of an increasingly rich

ecosystem

Increasingly provide for more intelligent interactions with users …Eventually turning into personal

assistants that help users with pincreasingly complex tasks

This transformation will take place over This transformation will take place over many years…

Copyright © Norman Sadeh, 2005-2010

Copyright © Norman Sadeh, 2005-2010

Relevant Websites

www.mcom.cs.cmu.edu/ l i www.locaccino.com http://mcom.cs.cmu.edu/user-controllable-

i d i /security-and-privacy/ www.zipano.com

Copyright © Norman Sadeh, 2005-2010

Page 11: Norman Sadeh 54M smart phones in Q1 2010...2010/05/27  · Norman Sadeh, “M-Commerce: Technologies, Services and Business Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor,

Relevant Publications Norman Sadeh, “M-Commerce: Technologies, Services and Business

Models”, Wiley 2002 Norman Sadeh, Jason Hong, Lorrie Cranor, Ian Fette, Patrick Kelley, Madhu

Prabaker, and Jinghai Rao. Understanding and Capturing People’s Privacy Prabaker, and Jinghai Rao. Understanding and Capturing People s Privacy Policies in a Mobile Social Networking Application Journal of Personal and Ubiquitous Computing 2009.

J. Tsai, P.G.Kelley, L.F.Cranor and N.M. Sadeh, “Location Sharing Technologies: Privacy Risks and Controls”, to appear in “I/S: A Journal of Law and Policy for the I f ti S i t ” 2010Information Society”, 2010.

Ramprasad Ravichandran, Michael Benisch, Patrick Gage Kelley, and Norman M. Sadeh. Capturing Social Networking Privacy Preferences: Can Default Policies Help Alleviate Tradeoffs between Expressiveness and User Burden? PETS ’09Burden? PETS 09.

Janice Tsai, Patrick Kelley, Paul Hankes Drielsma, Lorrie Cranor, Jason Hong, and Norman Sadeh.Who’s Viewed You? The Impact of Feedback in a Mobile-location System.CHI ’09.CHI 09.

Patrick Kelley, Paul Hankes Drielsma, Norman Sadeh, Lorrie Cranor. User Controllable Learning of Security and Privacy Policies. AISec 2008.

Michael Benisch, Patrick Gage Kelley, Norman Sadeh, Lorrie Faith Cranor, Capturing Location-Privacy Preferences: Quantifying Accuracy and User-Capturing Location-Privacy Preferences: Quantifying Accuracy and User-Burden Tradeoffs. CMU-ISR Tech Report 10-105, March 2010

Norman Sadeh, Fabien Gandon and Oh Buyng Kwon. Ambient Intelligence: The MyCampus Experience School of Computer Science, Carnegie Mellon University, Technical Report CMU-ISRI-05-123, July 2005.

Copyright © Norman Sadeh, 2005-2010

University, Technical Report CMU ISRI 05 123, July 2005.

Acknowledgements

Research funded by the US National Science Foundation the US Army Science Foundation, the US Army Research Office, CMU CyLab, Microsoft, Google Nokia FranceTelecom and ICTIGoogle, Nokia, FranceTelecom, and ICTI

The User-Controllable Privacy Platform on top of which Locaccinoon top of which Locaccinois built is now commercialized by Zipano T h l iTechnologies.

Copyright © Norman Sadeh, 2005-2010