The Essentials of Mobile E-Commerce - Literature review Example

M-Commerce Institute Table of Contents Table of Contents 2 M-Commerce 3 2- System 4 3- Process support 8 4- Benefits in Mobile Commerce 9 5- Problems in Mobile Commerce 10 7- Bibliography 11 8- Appendix 13 - Apple’s iPhone will bring mCommerce (Mobile Commerce) to Life 13 1- M-Commerce “Electronic commerce is the course of action of purchasing and selling goods or products and services electronically with computerized business transactions by means of the Internet, networks, and other digital technologies” (Laudon & Laudon, 1999, p. 25). In most simple words, e-commerce means carrying out business online (Norton, 2001, p. 371). According to Kitch (2009), the Cell phones are the most ubiquitous electronic devices developed in this technology based age. Presently it is assessed that approximately more than 40 million Americans are presently active users of the mobile internet by means of mobile browsers and smart-phones. The technology of cell phone is rapidly becoming the most well-liked device intended for browsing the Internet. Through this technology most of the people are frequently log-on to Internet and search for the information regarding a business, entertainment, and other Medias (Kitch, 2009). The term and technology of the mobile commerce is utilized to outline the emerging practice of conducting promotional and financial activities by means of the utilization of a wireless handheld device. The term mobile commerce is recognizing as the transactions can be conducted by means of personal digital assistants (PDAs), cell phones and other hand held devices that can work by means of Internet access. The technology and implementation of the M-Commerce has been the most sophisticated technology that is operational nowadays and going to enhance more and more day by day (Tatum, 2009). Mobile-Commerce can be described as a technique or tool that offers the facility of the selling and buying of goods, products as well as services through mobile phones or wireless handheld devices (like that cellular telephone, personal digital assistants, etc.) (Wang, Song, Lei, & Sheriff, 2005) and (TechTarget, 2003). Presently the technology of the Mobile-Commerce is recognized as the next-generation e-commerce. Through the Mobile-Commerce technology a user can access the web without requiring and discovering a place to plug in the huge system. The rising technology behind Mobile-Commerce, which is based on the WAP or Wireless Application Protocol, has made far bigger paces in Europe, where mobile devices operational by means of Web-ready micro-browsers are greatly widespread than in the United States (TechTarget, 2003). However (Stafford & Gillenson, 2003) differentiate between E-commerce and M-commerce by saying that, E-commerce is generally deals with the activities of buying and selling, on the other hand m-commerce is anticipated to be principally data-driven. The scope of mobile future is expected to comprise features of each business model; however the just the feature we can be certain of as it includes in coming days, integration with handheld computers and built in concert with database intelligence and networking, on the other words it will provide surprising capabilities (Stafford & Gillenson, 2003). 2- System description In this section I will outline the system description for the Mobile-Commerce technology. Mobile phone technology greatly occupies the marketplace than some other technology, now it can be helpful for the sale and purchase goods and services. Presently we have facility of the different alternatives regarding the online sales and other operations available on each website. And the development of mobile Internet has opened a window of opportunities for both businesses and customers. We have the facilities for online mobile money transfer, mobile banking, mobile commerce, advertising and marketing, information and news services, mobile trading, place based publicity and mapping services are some facilities to guide important enlargement in the mobile payments marketplace (Jang & Lee, 2002). The mobile phone developers, handlers, and producer of web based handling systems, authoritarian, standardization organizations and services suppliers are at the present working jointly to create mobile costs a commercial achievement in the near future. The newest researches of mobile technologies at marketplace have augmented the intentions that the utilization of the mobile applications and M-commerce will be increased in coming days (Lee & Jin, 2004). New technology has for all time helped us in our daily lives. Mobile online payment or it is now said the M-Commerce is as well one of the best technologies. The technology permits us to carry out operations by using high-quality cell phones. Presently a lot of companies have enabled this technology (Jang & Lee, 2002). Lee, Hu, & Yeh (2003) outlined that, from previous few years a lot of corporations decided to update their condition of the Internet and M-commerce. They have spent lot of expenditure in their website structures and have an enhanced marketplace share through incorporating the facility and technology support for the WAP and M-commerce (Lee, Hu, & Yeh, 2003). At the present, the trend of online social networking, music, business, and gaming is increasing and emerging in the digital content marketplaces and 70% of the web-based people have no credit card on the other hand they have mobile phone. So this is a real fact behind this way of paying for the online purchase and lot of corporations have uniquely positioned this new idea, for this new and innovative business model, mobile technology structural and knowledge team capable to enable web and mobile business in the world to augment digital content sales, attainment latest consumers and marketplaces (IGI-Global, 2009). For example, the mobile payment method uses the technology that allows payment by mobile phone. This operation is carried out through the Near Field Communications or NFC. A Near Field Communications chip makes possible the small range wireless radio contact between the cell phone and the reader (in a related system to Oyster journey cards in London), which activates the payment. Bank or credit card particulars can be stocked up in a variety of methods; however the GSMA helps to maintain them on the mobile phone’s SIM card. The mobile phone can be taken anywhere, or consumers are able to type a pin code concerned in the mobile phone to allow larger payments. A number of corporations as well suppose pay-as-you-go alternatives, and the cost can be subtracted from a prepaid balance. One of the main supporters of the latest technology is MasterCard, which makes use of a mobile phone payment system and is acknowledged as PayPass, it is operational in the US and France (Lee & Jin, 2004). While describing the system description of the M-Commerce we will assess that the structure of the mobile computing is different from the other business structures. In the overall system of the Mobile Commerce we have diverse layers of the system. The first layer is about the Mobile commerce applications that presents a platform to access the web based business website of the commerce. The next layer is about the mobile device. In this structure we can have the facility to access the system of Mobile commerce. The next main layer is about the mobile middle ware. The layer is intended to offer a support for handling the Mobile commerce processing that comes from the upper two layers. The next main and most important layer is about the Mobile Network. This is a wireless network that offers the facility to transmit the data and information on the web based located business structures. In the next layer we get the business structures where we can carry out the transaction and deals online. Here we can have the business databases that process the user request for some type of deals, transaction and online data and information handling (Becker, 2007). The illustration and graphical demonstration of the main layers of the Mobile commerce are given below; (Becker, 2007, p. 153) Source:http://books.google.com.pk/books?id=qAMtUzo00BMC&pg=PA153&lpg=PA153&dq=mobile+commerce+system+structure&source=bl&ots=-Pr9fPxsIV&sig=fxviZrb1h-kiOEXX-x3jbH-0UXM&hl=en&ei=YAnnSv3ZIdOQkQXim_3BBg&sa=X&oi=book_result&ct=result&resnum=10&ved=0CDIQ6AEwCQ#v=onepage&q=mobile%20commerce%20system%20structure&f=true According to (Wang, Song, Lei, & Sheriff, 2005), excluding cost, the main issues that manipulate the mobile users are usability and security. The rich content still attract the users. When we develop the application for m-commerce we should think about the relations between the perspectives of the environment, for instance, the device and location. A relative approach for assessing the security and usability of m-commerce applications is essential. However, there are also various additional issues that can influence the acceptance of m-commerce, for instance, cultural influences and shortage of killer applications (Wang, Song, Lei, & Sheriff, 2005). Developers should realize people and understand how they interact with their environment. E-commerce application developers can accomplish the large success and attract huge users when they develop or code their applications using XHTML (Wang, Song, Lei, & Sheriff, 2005) and (Tarasewich, 2003). 3- Process support This section presents the detailed analysis of organizational processes that can be supported thorough the Mobile-Commerce. For the utilization of Mobile-Commerce marketplace potential, handset manufacturers like that Sony Ericsson, Nokia, Motorola, and Qualcomm are functioning with carriers such as Sprint and AT&T Wireless to expand Wireless Application Protocols-enabled smart phones. Now most of the mobile developers are trying to add extensive and modern functionalities and make it like a Swiss Army Knife. At the present, the new smart phones using Bluetooth, present the facility of the e-mail, fax and phone facilities in a one device, paving the approach for Mobile-Commerce to be established through a progressively emerging field of mobile workforce (TechTarget, 2003). The main support of the Mobile-Commerce for any business process support can be done through the easy and efficient content delivery over wireless devices, here we also have more faster way of transmission, the new technology is more secure, as well as scalable, there is extensive speculation that Mobile-Commerce will reduce the wire-line e-commerce since as the technique of selection intended for digital commerce transactions (Becker, 2007). The main areas of the organization that can be improved through the implementation of the Mobile-Commerce technology in business are given below (TechTarget, 2003), (Garofalakis, Oikonomou, & Stefanis, 2008), and (Maamar, 2003); Mobile-Commerce offers a greater process support for the telecommunications, in which service transforms, now account reviews and bill payment can completely established through the similar handheld device. Companies can offer these services to their customers. In the areas of the Information services the process support is attained by giving delivery of sports figures, financial news and traffic updates to a mobile device The process support is the financial services, that comprises mobile banking (when customers utilize their mobile devises to pay their bills and access their accounts) and brokerage services, in which stock quotes would be exhibited as well as trading conducted as of the similar handheld device Process support in the areas of the service/retail, are attained as customers are offered the capability to place as well as pay for orders on-the-fly 4- Benefits in Mobile Commerce This section presents the benefits that Mobile Commerce offers to people. Schwiderski-Grosche1 & Knospe (2000) presented some advantages of Mobile Commerce regarding the business. These can be regarding the ubiquity of the Mobile Commerce. In this regarded we can take the business and its handling structure. We have the facility regarding the real time handling and access to the commerce. Then another main factor we have is regarding the accessibility. In this scenario users are capable to access Mobile Commerce application anyplace and at anytime. Next we also have the advantages regarding the security. Here in aspects of security regarding the business handling structure means mobile device. Here we can implement mobile or access password to restrict the access to business data. Here the next main advantage we have is the localization. In this regard we have network provider those are able to localize their users by utilizing positioning systems like that GSM, GPS or UMTS as well as present them location-dependent services for example, emergency calls, travel, restaurants, hotels and amenities. The feature of convenience is also a plus point that is brought by the Mobile Commerce. In this context we have the facility to carry a mobile device at anyplace because of its small size and weight. While functioning through the Mobile Commerce we have the greater personalization facility. In this scenario mobile devices are not shared among business users consequently it is possible to regulate the mobile devices to the users’ requirements and desires (Schwiderski-Grosche1 & Knospe, 2000). KEHOE (2000) outlined a main advantage regarding the Mobile Commerce implementation and facility in Europe. Here main advantage gained through Mobile Commerce is the cost of local calls is incorporated in the flat monthly charges paid by Americans to their telecom suppliers, in this way they are able to surf the Internet with no additional phone charge (KEHOE, 2000). There are numerous fashionable features of m-commerce such as uncomplicated information access immediately, communication free of the user’s location, getting data easier and having ease of access anywhere and anytime make a wide-ranging recognition and use of its applications and services. On the other hand, these services have turned out to be a very significant part of today’s life (Garofalakis, Oikonomou, & Stefanis, 2008). 5- Problems in Mobile Commerce This part of report discussed the problems regarding the Mobile Commerce business solution. Scourias (2003), outlined some risks regarding the secuity of busines in scenario of the Mobile Commerce. According to (Scourias, 2003) the presently Mobile Commerce is implemented in each area of life such as, business corporations, phone operators, banks, credit card companies and sellers. In case of the online payment and transactions we can face lot of security and privacy risks (Scourias, 2003). Another significant disadvantage that we face regarding the Mobile based commerce is the slow speed of web based data transfer and receiving. The low data transfer link can be a main difficulty in the overall business operational structures (Businesslink, 2009). Another main problem regarding the mobile based small structure for the Mobile Commerce can cause problems in viewing big complex diagrams and extensive details (Businesslink, 2009). Another significant issue is short storage space available for storing the business data in the mobile phones. Its small size is valuable in case of movement but problematic in case of data storage (Businesslink, 2009). The rapid development of mobile technology has given the opportunity to millions of users of mobile devices, to easily use the Internet. On the other hand, the content of the majority websites does not permit users with mobile devices to retrieve it simply, because of the limitations and restrictions of these devices, such as, insufficient memory size, small screens, , small calculating power, and low data transmission are some weaknesses of this technology (Garofalakis, Oikonomou, & Stefanis, 2008). 7- Bibliography Becker, A. (2007). Electronic Commerce: Concepts, Methodologies, Tools and Aapplications, (Premier Reference Source) Volume 1. Information Science Reference. Businesslink. (2009). The essentials of mobile commerce. Retrieved 10 25, 2009, from http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075387241 Garofalakis, J., Oikonomou, F., & Stefanis, V. (2008). Systems Design and Implementation for Easy Creation of Mobile Commerce Systems. Internet and Web Applications and Services, 2008. ICIW 08. Third International Conference (pp. 115-120). Athens: IEEE. IGI-Global. (2009). Fundamentals of Mobile Commerce Systems. Retrieved 10 26, 2009, from http://www.igi-global.com/downloads/excerpts/8284.pdf Jang, S., & Lee, E. (2002). An Intelligent Mobile Commerce System with Dynamic Contents Builder and Mobile Products Browser . Springer Berlin / Heidelberg; Intelligent Data Engineering and Automated Learning , 11-20. KEHOE, C. F. (2000). M-commerce: Advantage, Europe. Retrieved 10 26, 2009, from http://www.mckinseyquarterly.com/Telecommunications/Strategy_Analysis/M-commerce_Advantage_Europe_821 Kitch, J. (2009). Take Charge of Mobile Commerce . Retrieved 10 26, 2009, from http://www.entrepreneur.com/ebusiness/ecommercesolutions/article203772.html Laudon, K. C., & Laudon, J. P. (1999). Management Information Systems, Sixth Edition. New Jersey: Prentice Hall . Lee, C.-w., Hu, W.-C., & Yeh, J.-h. (2003). A System Model for Mobile Commerce. 23rd International Conference on Distributed Computing Systems Workshops (ICDCSW03) , 634. Lee, E., & Jin, J. (2004). A Next Generation Intelligent Mobile Commerce System; Springer Berlin / Heidelberg. Software Engineering Research and Applications , 320-331. Maamar, Z. (2003). Commerce, e-commerce, and m-commerce: what comes next? Communications of the ACM , Volume 46 Issue 12 , 251-257. Norton, P. (2001). Introduction to Computers, Fourth Edition. Singapore: McGraw-Hill. Schwiderski-Grosche1, S., & Knospe, H. (2000). Secure M-Commerce. Retrieved 10 26, 2009, from 1Information Security Group, Royal Holloway University of London, Egham TW20 0EX, UK: http://www.isg.rhul.ac.uk/~scarlet/documents/Secure%20m-commerce%20ECEJ.pdf Scourias, J. (2003). Overview of the Global System for Mobile Communication. Retrieved 10 26, 2009, from http://ccnga.uwaterloo.ca/~jscouri/GSM/gsmreport.html Stafford, T. F., & Gillenson, M. L. (2003). Mobile commerce: What it is and What it could be . Communications of the ACM , Volume 46 Issue 12 , 33-34. Tarasewich, P. (2003). Designing Mobile Commerce Applications . Communications of the ACM , Volume 46 Issue 12 , 57-60. Tatum, M. (2009). What is M-Commerce? Retrieved 10 26, 2009, from http://www.wisegeek.com/what-is-m-commerce.htm TechTarget. (2003, September 10). What is M-Commerce? Retrieved 10 26, 2009, from TechTarget.com: http://searchmobilecomputing.techtarget.com/sDefinition/0,,sid40_gci214590,00.html Wang, J., Song, Z., Lei, P., & Sheriff, R. (2005). Design and Evaluation of M-Commerce Applications. Communications, 2005 Asia-Pacific Conference (pp. 745-749). Perth, WA: IEEE. WhatIs. (2003). Mobile Computing. Retrieved 10 26, 2009, from http://searchmobilecomputing.techtarget.com/sDefinition/0,,sid40_gci214590,00.html 8- Appendix A- Resource appendix Web links -Wal-Mart has launched the mobile commerce for the effective business management. http://www.mobilemarketer.com/cms/news/commerce/4514.html -Ebay has implemented the mobile commerce and gained well http://www.internetretailer.com/dailyNews.asp?id=31936 Report/analyses of application - M-Commerce: Analysis of Impact on Marketing Orientation http://www.google.com.pk/#hl=en&q=mobile+commerce+application+analysis&meta=&aq=&oq=&fp=16fbc6f090b414e9 - Mobile Commerce in Banking Sector http://www.mobile-prospects.com/publications/files/HamburgUP_Tiwari_Commerce.pdf Vendors of the application - Airtell M commerce facility http://www.airtel.in/m-commerce - Apple’s iPhone will bring mCommerce (Mobile Commerce) to Life http://www.objective-marketing.com/news/apple%E2%80%99s-iphone-will-bring-mcommerce-mobile-commerce-to-life/ Read More