Chapter 8 - Mobile Computing and Commerce

Chapter Outline
8.1
8.2
8.3
8.4
8.5

Wireless Technologies
Wireless Computer Networks and Internet Access
Mobile Computing and Mobile Commerce
Pervasive Computing
Wireless Security

Learning Objectives
1. Describe the four main types of wireless transmission media, and identify at least one
advantage and one disadvantage of each type.
2. Discuss the basic purposes of short-range, medium-range, and long-range networks,
and explain how businesses can use at least one technology employed by each type of
network.
3. Discuss the five major m-commerce applications, and provide a specific example of
how each application can benefit a business.
4. Define pervasive computing, describe two technologies that underlie this technology,
and provide at least one example of how a business can utilize each one.
5. Identify the four major threats to wireless networks, and explain, with examples, how
each one can damage a business.
Review Questions
Section 8.1 Before you go on
1. Describe the most common types of wireless devices.

Pagers one way wireless devices

PDA personal digital assistant, a small handheld wireless device.
GPS global position system, a satellite-based tracking system that enables
people to determine the location of a GPS devices location.
Smartphone Internet-enabled cell phones that can support mobile applications.

2. Describe the various types of transmission media.

Microwave, satellite, and infrared are line-of-sight methods, whereas radio
signals travel through the air and can pass through walls.
Section 8.2 Before you go on

1. What is Bluetooth? What is a WLAN?

Bluetooth is a device used to create small wireless radio-based personal networks

for up to 8 devices within 10 meters using low-power, radio-based
communication.
Wireless local area networks are local area networks without the cables used to
transmit and receive data via radio waves.

2. Describe Wi-Fi, cellular service, and WiMAX.

Wireless Fidelity - known as Wi-Fi.
802.11a transmits up to 54 Mbps within 10-30 meters
802.11b transmits up to 11 Mbps within 30-50
802.11g transmits up to 54 Mbps and is compatible with 802.11b
Major benefits are low cost and the ability to provide simple Internet access.
Cellular services - communicate with radio antenna placed within adjacent areas
called cells. This technology uses digital signals and can transmit voice and data up
to 384 Kbps when device is used while walking, 128 Kbps while in a car, and up to
2Mbps when device is in a fixed location.
WiMax - Stands for Worldwide Interoperability for Microwave Access. WiMax has a
range of up to 31 miles compared to 300 feet for Wi-Fi and 30 feet for Bluetooth. It
has a transfer rate of up to 75 Mbps.
Section 8.3 Before you go on
1. What are the major drivers of mobile computing?

Widespread availability of mobile devices

No need for a PC
The cell phone culture
Declining prices
Improved bandwidth

2. Describe mobile portals and voice portals.

Mobile portals - A customer interaction channel that aggregates content and services
for mobile users. Services include news, sports, e-mail, entertainment, travel
information, restaurant and event information, games, TV and movie listings,
community services, and stock trading.

Voice Portals A Web site with an audio interface. Voice portals are not Web sites in
the normal sense because they can also be accessed through a standard or a cell
phone. A certain phone number connects you to a Web site, where you can request
information verbally. The system finds the information, translates it into a computergenerated voice reply, and tells you what you want to know. An example is 511, the
travel information line developed by Tellme.com.
3. Describe wireless financial services.
The services provide a convenient way for customers to transact business regardless
of the time or their location. These services include banking, wireless payments and
micropayments, wireless wallets, bill-payment services, brokerage services, and
money..
4. List some of the major intrabusiness wireless applications.

There are applications that help owners of rental vehicles, commercial transport,
and heavy equipment fleets. These apps can be used to determine the location of
the vehicles and control messages that are sent to and from the vehicles.
Insurance companies use wireless digital cameras to take pictures at accident
scenes and transmit them to processing centers.
Mystery customers who file reports after evaluating locations of a national
restaurant franchise use hand-held devices to file reports.

Section 8.4 Before you go on

1. Define pervasive computing, RFID, and wireless sensor networks.
Pervasive computing is invisible everywhere computing that is embedded in the
objects around us, including the floor, lights, cars, the washing machine, cell phones,
our clothes, etc.
RFID is the technology that enables manufacturers to attach tags with antennae and
computer chips on goods and then track their movement through radio signals. This
technology was developed to replace barcodes.
Wireless sensor networks are networks of interconnected, battery-powered, wireless
sensors called motes that are placed into the physical environment. The motes collect
data from many points over an extended space. Each mote contains processing,
storage, and radio frequency sensors and antennae. This technology enables more
accurate information to be gathered.
2. Provide two specific business uses of RFID technology.

Retail companies use RFID to track inventory and shipments.

Tolls roads use RFID to collect fees without the need for toll booth
personnel.

Section 8.5 Before you go on

1. Describe the four major threats to the security of wireless networks.
The four threats are rogue access points, war driving, eaves dropping and RF
jamming.
2. Which of these threats is the most dangerous for a business? Which is the most
dangerous for an individual? Support your answers.
The most dangerous threats for a business are war driving and RF jamming. For
individuals, rogue access points are the most serious threat, particularly at public
hotspots. Eavesdropping is threatening for both business and individual networks.
ITs About Business Questions
ITs About Business 8.1
Tacos, Trucks, and Tweets?
1.
Provide specific examples of the advantages that mobile communications
provided to Mark.
Mark was able to let his customers know via Twitter and via his Web site where his
truck was or will be.
He was able to tack his other vehicles and reroute them if he felt necessary.
2.

Which technology, Twitter or mobile communications, enables the other? Support

your answer.
Mobile communications enable mobile technologies such as Twitter. This is
because most users use their smart (mobile) phones to send the messages via Twitter.

ITs About Business 8.2

WiMAX Helps the People of Northern Thailand
1. Provide specific examples of other advantages that WiMAX can deliver to the
villagers.

Educational programs that were not available to the villagers previously.

Electronic textbooks

The ability of the villagers to collaborate with one another has helped create a
sense of unity in the region.
Access to information that was not easily available to them previously
The network was easy to set up and relatively inexpensive.

2. Provide specific examples of the advantages of WiMAX compared to wireline

communications.
Compared to wireline, WiMAX provides wider coverage at a lower cost.
WiMAX coverage can reach a 31-mile radius. In order to cover the same area,
physical wireline must be must be laid out to each establishment.
ITs About Business 8.3
Location-Based Services at Shopping Malls
1. Are the advantages of the mall apps discussed in this case enough to entice you to go
to a mall? Why or why not? Support your answer.
The responses you will receive will differ based on your students shopping habits.
Regardless of whether they respond yes or no, however, students should provide
concrete reasons why they think the mall apps described in the case are enough (or
not enough) to persuade them to shop at the mall.
2. Identify two specific benefits that you would add to mall apps to make them
functional enough to attract shoppers to the mall.
The responses you will receive will differ based on your students shopping habits.
Some ideas are to provide apps-only discount coupons to use in stores or the food
center, and to enhance the scavenger hunt-style game with daily special rewards to the
first ten customers who spot certain things in the mall during their shopping trip.
ITs About Business 8.4
Your Car Becomes a Smartphone
1. Explain why OnStar, Sync, and Blue Link are telemetry applications.
Telemetry is the wireless transmission and receipt of data gathered from remote
sensors. Telemetry has numerous mobile computing applications. Car manufacturers
use telemetry applications for remote vehicle diagnosis and preventive maintenance.
2. Provide specific examples of the disadvantages of OnStar, Sync, and Blue Link.
Students will have different opinions, but some will involve tracking, the vehicles
transmitting erroneous information, etc.

ITs About Business 8.5

Protecting an Open Wireless Network at Brigham Young University Hawaii
1. What are the advantages of the Avenda system to the users?
Avenda automatically provides authorization privileges after a user is authenticated.
That is, once a user is identified, the system provides access only to those systems
necessary for that user to do his or her job, a process called least privilege.
2. Are there privacy issues associated with the Avenda system for users? If so, provide
specific examples.
IT team now controls and differentiates access to the wireless network, so they can
determine what users are doing on the network. The team is also able to collect user
information and details about network usage. However, students are required to sign
the university honor code of conduct, and their activities on the network can be
monitored to ensure they dont violate the rules, causing harm to the users and the
university.
Discussion Questions
1. Discuss how m-commerce can expand the reach of e-business.
In the traditional computing environment, users must have physical access to a
computer in order to utilize its applications. The need to be linked by wires to
computing resources limited the usefulness of this technology to people who must be
mobile while on the job. M-commerce is a natural extension of e-business, but it is
conducted in a wireless environment. M-commerce serves the needs of an
increasingly mobile work force and consumer population..
2. Discuss how mobile computing can solve some of the problems of the digital divide.
Wireless devices are becoming cheaper, and individuals can take those devices to
locations where they can connect to the Internet, often for free. Consequently, users
who do not have access to a computer at home can use these devices to connect to the
Internet and gain the benefits that otherwise would not be available to them.
3. List three to four major advantages of wireless commerce to consumers, and explain
what benefits they provide to consumers.

Access to expertise: For example, medical service providers in remote locations

could communicate real-time with specialists in other places to provide
specialized consultations. Consumers would benefit due to better access to
specialized expertise without the inconvenience or expense of traveling to a
different location for the consultation.

Access to information: For example, mobile portals provide consumers access to

a personalized set of content and services regardless of location. This enables the
consumer to always have specified information available regardless of location.
Customized advertising: For example, location-based advertising can deliver
information and coupons to inform consumers about shops, malls, and restaurants
close to their current location.
Access to services: For example, wireless banking enables consumers to carry
out various financial transactions from any location, further eliminating the need
to go to a bank or an ATM machine to carry out needed banking business.

4. Discuss the ways in which Wi-Fi is being used to support mobile computing and mcommerce. Describe the ways in which Wi-Fi is affecting the use of cellular phones
for m-commerce.
Wi-Fi is the technical standard underlying most of todays wireless local area
networks (WLANs). A mobile computing device can connect to the Internet easily
from public access points called hotspots. Mobile computing and m-commerce
applications can be delivered easily and at adequate communication speeds in this
environment. Wi-Fi is reducing the need for wide-area wireless networks based on
cellular technology.
5. You can use location-based tools to help you find your car or the closest gas station.
However, some people see location-based tools as an invasion of privacy. Discuss
the pros and cons of location-based tools.
The benefits of location-based tools include the ability to request and receive
information that is tailored to your exact location. The concerns about this capability
arise from the fact that other people can obtain information about your exact location
and movements and use that information in harmful ways..
6. Discuss the benefits of telemetry in health care for the elderly.
The alerting devices that people can wear around their neck are valuable for seniors
who need emergency assistance after a fall or when they are experiencing some other
medical problem.
7. Discuss how wireless devices can help people with disabilities.
Sensors that help people with disabilities communicate with their computer and other
household devices significantly enhance these individuals ability to interface with
their environment and perform basic activities.
8. Some experts say that Wi-Fi is winning the battle with 3G cellular service. Others
disagree. Discuss both sides of the argument, and support each one.

Students will discuss this in terms of speed, distance and cost and why one of these
services is preferred over the other.
9. Which of the applications of pervasive computing do you think are likely to gain the
greatest market acceptance over the next few years? Why?
Although the students answers will vary, it is likely that applications that add
convenience without violating privacy will be the ones to gain market
acceptance. For example, an application that provides information about a
product for diagnostic and repair purposes would be useful because the
consumer could arrange for the product to be repaired before it fails.
.
Problem-Solving Activities
1. Investigate commercial applications of voice portals. Visit several vendors (e.g.,
www.tellme.com, www.bevocal.com, and so on). What capabilities and applications
do these vendors offer?
Students will research voice portals and report their findings.
2. Using a search engine, try to determine whether there are any commercial Wi-Fi
hotspots in your area. (Hint: Access http://v4.jiwire.com/search-hotspotlocations.htm.) Also check www.wifinder.com.
Students will discuss use of handhelds, laptops, etc. after locating WI-Fi spots in their
area.
3. Examine how new data capture devices such as RFID tags help organizations
accurately identify and segment their customers for activities such as targeted
marketing. Browse the Web and develop five potential new applications for RFID
technology, not listed in this chapter. What issues would arise if a countrys laws
mandated that such devices be embedded in everyones body as a national
identification system?
Students should enjoy researching this topic and describe these wearable devices.
4. Investigate commercial uses of GPS. Start with http://gpshome.ssc.nasa.gov; then go
to http://www.neigps.com/. Can some of the consumer-oriented products be used in
industry? Prepare a report on your findings.
Students will investigate and list products that can cross over between the end
consumer and industry markets.

5. Access www.bluetooth.com. Examine the types of products being enhanced with

Bluetooth technology. Present two of these products to the class and explain how
they are enhanced by Bluetooth technology.
Various categories of products are listed in the web site. Students will investigate and
prepare a report on two of these products. Students also examine any drawbacks to
having Bluetooth used in the product.
6. Explore www.nokia.com. Prepare a summary of the types of mobile services and
applications Nokia currently supports and plans to support in the future.
Students will investigate and prepare a report.
7. Enter www.ibm.com. Search for wireless e-business. Research the resulting stories to
determine the types of wireless capabilities and applications IBMs software and
hardware supports. Describe some of the ways these applications have helped
specific businesses and industries.
Students are to look into the published case studies in the ibm.com web site under
SOLUTIONS and find some examples of cases that they can share with the class.
8. Research the status of 3G and 4G cellular service by visiting www.itu.int,
www.4g.co.uk, and www.3gnewsroom.com. Prepare a report on the status of 3G and
4G based on your findings.
Students will investigate and prepare a report.
9. Enter Pitney-Bowes Business Insight (www.pbinsight.com). Click on MapInfo
Professional, then click on the Resources tab, then on the Demos tab. Look for the
location-based services demos. Try all the demos. Summarize your findings.
Students will investigate and prepare a report.
10. Enter www.packetvideo.com. Examine the demos and products, and list their
capabilities.
PV provides software to deliver mobile media services. PV's software gives users
greater access and control over their media experience. The CORE product provides
a universal structure for mobile multimedia applications. MediaFusion is a whitelabel client-server software application that enables rapid development and launch ondevice portals for rich media services.
11. Enter www.onstar.com. What types of fleet services does OnStar provide? Are these
any different from the services OnStar provides to individual car owners? (Play the
movie.)

Students will play the movie and relate their experience.

12. Access
www.itu.int/osg/spu/publications/internetofthings/InternetofThings_summary.pdf.
Read about the Internet of Things. What is it? What types of technologies are
necessary to support it? Why is it important?
Internet of Things refers to the concept of embedding communications technology in
common devices like refrigerators and ovens in order to extend the reach of Internet
to many remote areas that do not have an existing Internet access infrastructure The
technologies required for creating this type of network include, but are not limited to,
RFID, sensor networks, nanotechnology, distributed computing networks, and
telecommunication technology.
Team Assignments
1. Each team should examine a major vendor of mobile devices (Nokia, Kyocera,
Motorola, Palm, BlackBerry, Apple, and so on). Each team will research the
capabilities and prices of the devices offered by each company and then make a class
presentation, the objective of which is to convince the rest of the class why one should
buy that companys products.
Students will research the capabilities and prepare a report. Focus on features
supported by the models, what bandwidth is needed to support the features and the
quality of network service and cost that is required by each.
2. Each team should explore the commercial applications of m-commerce in one of the
following areas: financial services, including banking, stocks, and insurance;
marketing and advertising; manufacturing; travel and transportation; human
resources management; public services; and health care. Each team will present a
report to the class based on their findings. (Start at www.mobiforum.org.)
There are a lot of options, particularly in the financial industry, that students can
choose. Students will research the capabilities and prepare a report.
3. Each team should take one of the following areashomes, cars, appliances, or other
consumer goods like clothingand investigate how embedded microprocessors are
currently being used and will be used in the future to support consumer-centric
services. Each team will present a report to the class based on their findings.
Students will research the capabilities and prepare a report.
Closing Case
A Mobile Application for Home Depot
The Business Problem

Home Depot (www.homedepot.com), the worlds largest retailer of home

improvement and construction products and services, has been lagging in information
technology. In fact, IT was an afterthought at Home Depot for years because the
companys primary emphasis was opening new stores. Today, Home Depot has more
than 2,000 retail outlets.
Until 2010, employees stocked shelves as they had for 15 years, using computers
powered by motorboat batteries and rolled around stores on bulky carts. In early 2011,
Home Depot still did not offer customers the option to order online and pick up
merchandise in stores, as Lowes (www.lowes.com), Home Depots biggest competitor,
already did. Further, when Home Depot employees processed special orders for
customers, they had to rely on outdated information systems. This arrangement hurt both
sales and service.
In 2007, Frank Blake became Home Depots new CEO. Blake shifted the companys
focus to increasing profits from existing stores. Inventory turns a measure of how well
a retailer turns goods into sales began to increase. However, Home Depot did not have
the information systems to enable this change in corporate strategy. Therefore, the
company had to modernize its information systems to improve in-store technology.
Another component of Home Depots new strategy was to attract younger customers
who are accustomed to shopping online, often with devices they carry in their pockets or
handbags. That is, the company wanted to increase online transactions. (In 2010, online
transactions amounted to roughly 1.5 percent of Home Depots total sales.)
Unfortunately, the companys Web site was unattractive, difficult to navigate, and did not
provide for a seamless shopping experience. Therefore, the company had to improve its
site to capture the attention of the numerous customers who browse online before they go
to the store.
The IT Solution
During fiscal year 2010, which ended on January 30, 2011, Home Depot spent $350
million on information technology, which amounted to one-third of the companys total
capital expenditures. One of the new IT applications involved mobility. The company
spent $60 million to buy 40,000 handheld devices, called First Phones, to replace the
old in-store computers. First Phones enable Home Depot associates to manage inventory
and help customers find products. These devices not only act as a phone, but they replace
walkie-talkies. In addition, with its credit card reader, the device becomes a mobile cash
register. Further, associates can check inventory in their store and in other stores from
any location on the floor.
Home Depot also launched a blogging site on its Web site where employees answer
customer questions on all home improvement and home construction matters. Further, as
part of a broader upgrade of its checkout systems, the companys U.S. stores installed
contact-less scanners for reading credit card information on customers smart phones.
The Results

It is too soon to predict the results of these new policies. Interestingly, Home Depots
IT initiatives could be complicated by the preference of most older contractors and do-ityourself homeowners to buy in person at a store. Home Depot recognizes that the
company has to serve customers the way they want to be served. However, the company
feels that over the long run, customers are going to become much more comfortable using
their smart phones on a real-time basis outside or inside the store.
Questions
1. Provide two specific reasons why Home Depot felt it necessary to deploy wireless
handheld devices.
First, the current system was outdated. The wireless handheld device, called the
First Phone, was a logical choice given the current technology. Second, the device
helped improve customer service functions because employees can use it to help
customers find their products.
2. Identify two potential disadvantages of deploying wireless handhelds at Home Depot.
First, the wireless handheld devices might get lost or stolen. Second, many
associates will need to be retrained to become familiar with the new system.
.
Glossary
Bluetooth

Chip technology that enables short-range connection (data and

voice) between wireless devices.

Cellular Telephones (also called cell phones) Phones that provide two-way radio
communications over a cellular network of base stations with
seamless handoffs.
Global Positioning System (GPS) A wireless system that uses satellites to enable users
to determine their position anywhere on earth.
Hotspot

A small geographical perimeter within which a wireless access

point provides service to a number of users.

Infrared

A type of wireless transmission that uses red light not commonly

visible to human eyes.

Location-Based Commerce (l-commerce) Mobile commerce transactions targeted to

individuals in specific locations, at specific times.

Mesh Network

A network composed of motes in the physical environment that

wake up at intervals to transmit data to their nearest neighbor
mote.

Microwave Transmission A wireless system that uses microwaves for high-volume,

long-distance, point-to-point communication.
Mobile Commerce (m-commerce) Electronic commerce transactions that are
conducted with a mobile device.
Mobile Computing A real-time connection between a mobile device and other
computing environments, such as the Internet or an intranet.
Mobile Portal

A portal that aggregates and provides content and services for

mobile users.

Mobile Wallet

A technology that allows users to make purchases with a single

click from their mobile devices.

Near-field communications (NFC)

The smallest of the short-range wireless
networks that is designed to be embedded in mobile devices such
as cell phones and credit cards.
Personal Area Network
A computer network used for communication among
computer devices close to one person.
Pervasive Computing (also called ubiquitous computing)
A computer
environment where virtually every object has processing power
with wireless or wired connections to a global network.
Propagation Delay

Any delay in communications due to signal transmission time

through a physical medium.

Radio-frequency identification (RFID) technology

A wireless technology that
allows manufacturers to attach tags with antennas and computer
chips on goods and then track their movement through radio
signals.
Radio Transmission Uses radio-wave frequencies to send data directly between
transmitters and receivers.
Satellite Radio (also called digital radio) A wireless system that offers uninterrupted,
near CD-quality music that is beamed to your radio from satellites.
Satellite Transmission
A wireless transmission system that uses satellites for
broadcast communications.

Telemetry

The wireless transmission and receipt of data gathered from remote

sensors.

Ubiquitous Computing (see Pervasive Computing)

Ultra-wideband (UWB)
A high-bandwidth wireless technology with transmission
speeds in excess of 100 Mbps that can be used for applications
such as streaming multimedia from, say, a personal computer to a
television.
Voice Portal

A Web site with an audio interface.

Wireless

Telecommunications in which electromagnetic waves carry the

signal between communicating devices.

wireless 911

911 emergency calls made with wireless devices.

Wireless Access Point

An antenna connecting a mobile device to a wired local
area network.
Wireless Fidelity (Wi-Fi) A set of standards for wireless local area networks based on
the IEEE 802.11 standard.
Wireless Local Area Network (WLAN) A computer network in a limited
geographical area that uses wireless transmission for
communication.
Wireless Sensor Networks (WSN) Networks of interconnected, battery-powered,
wireless sensors placed in the physical environment.