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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    P. VenkataramProtocol Engineering and Technology Unit, ECE Dept.

    Indian Institute of ScienceBangalore, 560 012, INDIA

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

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Organization of TalkWhat 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

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Mobile commerce is a natural result of combining two strongly emergingtrends: electronic commerce and ervasive com uting.

    Internet + Wireless + E-Business = M-BusinessGoing online anywhere at anytime and using multi le devicesNew business o ortunities

    M-Commerce re resents another wave of the e-commerce invasion that ischanging the nature of business in the 21st century.

    Ex onential growth (kee s growing)

    What is Mobile Commerce

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Fixed Vs Mobile Commerce

    WAP Server Web Server

    CheckBank

    Balance

    CheckStockPrice

    PurchaseStock

    MultilingualContentDatabase

    CustomerDatabase

    ProductDatabase

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    U biquitous com utingAnywhere, anytimeConvenient, instant connectivity

    Very ersonalevice owner has an exclusive access to the contents/services

    Service roviders know who the owner isVaried users, usage contexts

    Elementary school students, grand as, grandmasLocation & context-sensitive a lications and services

    AmbidextrousWork & Play: Business ur ose + Personal fun

    Peo le seem willing to ay for mobile services

    Characteristics of M-Commerce

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Requirements for M-Commerce

    Hardware technologies for ubiquitous com uting

    Software infrastructure for ubiquitous com uting

    Sensing and interaction with the hysical worldGraceful integration of human users

    Systems considerations, including scalability, security, and rivacy.

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Technological Challenges of M-Commerce

    Usability( Consistent andReliable Interface)

    Security( Peace of Mind)

    PersonalizedServices

    IntelligentServices

    ( Smart about you,your location )Pervasive &

    Flexible Payment( Pay for any service

    Usin Mobile) ConsultationCapabilities

    ( Phone a Friend )

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    U sability

    Intelligent and Personalized ServicesIt is useful to determine what the mobile industry considers a service ( a setof functions offered to a user by an organization)

    Personalized services have access to im ortant user information thatenables them to tailor their o eration to the needs of the served user.Exam les include s eed dialing using ersonal contact lists or address book

    Pervasive and Flexible Payment MechanismsIt may be ossible to re lace credit-cards and a er money by makingmobile hones act as electronic wallets.U sers credit-card details may be stored on the hone or on the usersSubscriber Identity Module (SIM) card.A ccess Tokens are assigned when subscribing to a service or requesting tobuy an item.

    Technological Challenges of M-Commerce (contd)

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    SecurityAuthentication is a property by which the correct identity of an entity or

    party is established with a required assurance.C onsultation C apabilities

    The Session Initiation Protocol (SIP) should be the biggest enabler of thesekinds of services.These features should enable consultation sessions to be established wherea otential customer is taken through the features of a roduct by an ex ertusing a multimedia resentation and/or a website.

    C omputing Environment

    Infantile:The area is in its infancy and needs lot of coordination between theindustries and institutions to bring out a common standard for resolvingthe issues of ervasive com uting .

    Technological Challenges of M-Commerce (contd)

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    U ser in ut (voice, text, gestures) ;Human com uter interaction technology should be develo ed for voicerecognition, gesture recognition and natural language rocessing of thetext.

    Context aware systems:The smart devices software and hardware architectures should bescalable, and secured to handle context aware o erations, which mayinvolve communication between diverse users and com onents.

    IPv4:A bridging su ort should be develo ed for embedded devices tocommunicate through Internet.

    Anonymity:The devices should allow others devices to track its o eration andcommunicate among a grou of com onents and users in a securedmanner.

    U biquity:The devices should be ca able of ubiquitous com uting.

    Technological Challenges of M-Commerce (contd)

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Building Blocks of M-Commerce

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    U ser EquipmentA mobile hone or P A acts as the user end oint

    Access Network

    To rovide authentication to validate a users attem t to consume networkresources

    Service NetworkLinked to the Access Network, robably via secure Virtual Private Network(VPN).The Service network rovides ersonalized ortals to many services,including commerce.

    Building Blocks of M-Commerce

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Wireless develo mentF irst-generation wireless technology was the cellular honeSecond generation wireless technology, which includes digital cellular

    hones, is currently in use worldwideThird generation, or 3G technology will enable wireless devices to send andreceive data as much as seven times faster than a standard 56K modem(0.4M ~ 2Mb s)F ourth generation, networks designed to uninterru ted high s eed datatransfer

    Wireless devices

    Personal digital assistants (P As)igital cellular hones

    Two-way agers, la to s

    Enabling Technologies: Mobile Commerce

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Clear trend for the convergence of several mobile devices includingintelligent home a liances

    P A hone: P A + Cell hone

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

    Wireless control of refrigerator,TV, V through a cell hone

    Enabling Technologies: Mobile Commerce (contd)

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Mobile Communications

    GSMGSM (Global System for Mobile communication) is a digital mobile tele hone system

    that is widely used in Euro

    e and other

    arts of the world. GSM uses a variation oftime division multi le access (T MA).GPRSGeneral Packet Radio Services (GPRS) is a acket-based wireless communicationservice in GSMC MAC MA is a form of multi lexing, which allows numerous signals to occu y a singletransmission channel, o timizing the use of available bandwidth.Mobile-IPMobile IP is an Internet Engineering Task F orce (IET F ) standard communications

    rotocol that is designed to allow mobile device users to move from one network toanother while maintaining their ermanent IP address.

    Enabling Technologies: Mobile Commerce (contd)

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Tools su orting develo ment of evices in Mobile Commerce

    Object Technology is laying a major art in sha ing ervasive com utingaradigm.

    Java, C++ and XML are often used for im lementation at the server side, andin the meantime as well as on the ervasive device.The O en Services Gateway initiative (OSGi) will lay a key role in o erating

    ervasive devices.

    Hardware / Software Tools

    A lication-S ecific Integrated Circuitry (ASIC) S eech recognition

    Gesture recognition System on a Chi (SoC)

    Perce tive interfaces Smart matter

    F ield Programmable Logic Gates ( F PLG) F lexible transistors

    Micro lectro Mechanical Systems (M MS). econfigurable rocessors

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    BankingF inancial services

    Security services

    Sho ingAdvertising

    Entertainment

    Customer care

    Information rovision

    Adhoc auction, where a articular user advertises the availability of aarticular commodity, and invites bids.

    M-Commerce benefits can be seen in :

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    A lications of M-CommerceMobile F inancialA lications (B2C, B2B)

    Banking, brokerage, and ayments formobile users

    Mobile Advertising (B2C)Sending user s ecific and locationsensitive advertisements

    Mobile InventoryManagement (B2C, B2B)

    Location tracking of goods, boxes,Peo le

    Proactive ServiceManagement (B2C, B2B)

    Transmission of informationrelated to aging com onents toVendors

    Product Locating andSho ing (B2C, B2B)

    Locating/ordering certain itemsfrom a mobile device

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

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    A lications of M-Commerce (Contd)Mobile Booking and Ticketing(B2C, B2B)

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

    Mobile Marketing Research (B2C)btaining instant feedback from

    customers

    Mobile CRM, Customer Su ort(B2C, B2B)

    Customer acquisition and retention byroviding truly ersonalized content

    Mobile Entertainment Service(B2C)

    V , M , gambling, interactive gamesand other services

    Mobile istance Education(B2C, B2B)

    Taking classes, training courses usingstreaming video and audio

    Wireless Business Re-engineering(B2C, B2B)

    Information u /downloading by mobileusers (e.g. adjusters in an insurancecom any.

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    U biquitous interactivity

    Personal device: always handy and available at all times on a ersonU ser identity: The device carries its user identity; distinctly ersonal andthe usage can be tracked down to an individual rather than households(e.g., PC)

    Location aware

    Easy to track down where the user hysically is as long as the wireless

    device is on (using GPS)

    Location aware A lications

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Vehicle tracking

    Automatic Vehicle Location (AVL): U sing GPS device installed in a vehicle,finds the location of a vehicleCan be used for ra idly dis atching taxis, ambulances, olice vehicles,trucksCan be used for navigating and o timal routing in unfamiliar geogra hicalareas or heavy trafficCan also be used for tracking cargo, delivery, baggage, giving customersmore accurate info

    Location aware A lications (contd)

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Location aware A lications (contd)

    Mobile GPSU nit Communication

    NetworksBase Station

    GPS Satellites

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Location based services using ma s

    GeocodingGeocoding

    Ma ingMa ing

    RoutingRouting

    ContentContent

    Enhance BillingPersonalized PortalsF riend F inderEmergency AssistanceF ind nearest service

    F indLocation

    Visualize

    irections

    Intelligence

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    To be one of the most im ortant com onents of mobile commerce

    Other a lications like

    Mobile banking, trading, brokerage, money transfer

    Easy identification and authentication both for restricted access andfor ayment ur osesSmall urchases such as vending through a wireless network

    Mobile A lications inF

    inance

    $ 200

    Ok Clear Options

    PAID You have paid

    $200Thank You

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    One of the most rominent area

    Other a lications likeVideo-on-demand (VO ), MP3, ring tone, horosco e, fortune-telling,interactive games, news etc.,

    Required TechnologyMobile devices with multimedia ca abilities

    High bandwidth wireless networks

    Video com ression techniques

    Continuous connectivity

    Mobile services using Multimedia

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    A secure environment is required, with the establishment of a system ofelectronic signatures.The develo ment and use of signature and authentication roducts andservices is still in its introductory stage

    General security requirements to achieve intero erability betweenentities involved in the mobile signature architectureMiddleware issues on the devices

    Human Com uting Interaction issues

    Gateways and infrastructure issues

    Location-based services

    Transactions Model

    atabase management

    QoS management

    Research Issues in M-Commerce

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Pros and Cons of Mobile Commerce

    E-CommerceE-Commerce M-CommerceM-Commerce

    Desktop / PC Mobile Phone / PDAGreater Processing, multimediaand display capabilities of PCsGreater presentation facilitiesmakes the PC more applicableto larger purchases

    Online product browsingPersonalized Ad ertisingCon enience for atechnologically aware user.Choice of many online storesfor a wide range of itemsdiscount Notifications.

    Location based ad ertisingGreater Con enienceCapture of buying impulses

    Alternati e payment mechanisme.g. Phone BillSupports new mobile ser ices

    Dialup hasslesLess possibility of impulsespending

    Distrust of technology, resistanceto changeFears about security onlinetransactionsBad design of many user interfacesSlow connections if broadbandaccess not a ailable

    Smaller screen size can degradeuser experienceSmall or immature input technologiesMarket may be less open thane-commerce marketTariffs are relati ely high

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Pros and Cons of Mobile Commerce (contd)

    U ser point of view

    Advantages :

    Anytime, anywhere access to commerce services;isadvantages :

    Small size of mobile device screens and their relatively limited

    multimedia Ca abilities

    Relatively high costs of mobile services/ Tariffs for data

    transmission over ublic mobile networks

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Pros and Cons of Mobile Commerce (contd)

    Network Operator point of view

    Advantages :

    Huge numbers of redicted users - 650 Million 3G wireless users by2010

    Control users access service providers and service providers

    access users.

    isadvantages :

    Must increasingly o en u their network services and information toexternal service roviders if they are to rovide a wide range ofcommerce services.

    concerned about losing control of their networks and the value thatthey generate.

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    Pros and Cons of Mobile Commerce (contd)

    Service Provider point of view

    Advantages :

    Information about user location means that advertisements can belocation-aware

    Com letely new services can be created, statically or dynamically,based on convergence of information standards and communicationsnetworks.

    isadvantages :

    F uture mobile networks are likely to be more closed than the ublicinternet as network o erators seek to encourage and/or limitnetwork users to choosing referred Service Providers.

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    Keynote Address :Mobile Commerce Vision and Challenges, at ITPC 2003 Nepal by Prof. P. Venkatar

    ConclusionM-Commerce will be at least as successful as e-commerce if the underlyingtechnology and standards accentuate the advantages and minimize thedisadvantages.

    The current s ecifications for 3 rd Generation Mobile Networks and Servicesfrom the 3GPP rovide a strong latform for M-Commerce

    Consistent and ervasive access to services across varied wireless networkingto ologies will be a key factor in the success of mobile commerce.