Usability Issues and Limitations of Mobile Devices

Due to the fast development of mobile technologies and wireless communications, more people are using mobile devices. Mobile devices like cellular phones are initially used for data communications, as in speech. Now, mobile devices are not only portable but also can be used to communicate and exchange information as well as gain access to remote services anywhere, anytime. But while mobile devices offer many opportunities for e-commerce applications, conducting e-commerce transactions over mobile devices has its limitations. Limitations include limited memory, limited processing power, different technologies and standards, small keyboards, and small screens. A usability study was carried out to determine the extent to which mobile devices can be used in mobile commerce. Most of the studies showed that while mobile devices are becoming increasingly popular with the younger generation, users still prefer to use desktops for e-commerce transactions. This is mainly due to the limitations of mobile devices and the stability and security of the wireless networks.

Opportunities and Limitations in M-Commerce

Electronic commerce (e-commerce) activity is growing exponentially, and it is revolutionizing the way that businesses are run. There is now an explosion of mobile wireless services accessible via mobile phones and Personal Digital Assistants (PDAs). Mobile e-commerce (m-commerce) makes business mobility a reality. Mobile users can access the Internet at any time, from anywhere (even from their shirt pockets/purses) using ubiquitous inexpensive computing. It is estimated that the m-commerce market was worth US$3.5 billion in 2000 and will grow to over US$200 billion by 2005 (Abbott, 2002). M-commerce is generally considered to be an extension of e-commerce. In fact, m-commerce has unique characteristics and functionality. Hence, it creates a unique and new business opportunity. Tesco, the United Kingdom-based supermarket, rolled out their mobile service, but the U.S. bank, Wells Fargo, is planning to close down their mobile service later this year due to lack of interest. M-commerce has a number of inherent complexities, as it embraces many emerging technologies: mobile wireless systems, mobile handheld devices, software, wireless protocols, and security. These technologies have rapid product cycles and quick obsolescence. In this chapter, we will examine the opportunities and limitations of m-commerce and concentrate our discussion on mobile phone systems.

Directions in Wireless Telecommunications

Presented in this chapter are high-level analytical and operational tools and models that assist the wireless telecommunications professional in understanding the telecommunications’ market characteristics, life cycles, trends, directions, limits, and drivers. These tools demonstrate that wireless communications will follow the same life cycle characteristics as wire-line communications. Tools are also presented that provide important and timely insight for gaining competitive advantage based upon early detection of critical inflection points.

Wireless Middleware

Introduced in this chapter is wireless middleware as a means of writing distributed applications for mobile environments. The concepts of middleware and the additional challenges that arise from wireless communications are introduced, in particular, low bandwidth and unreliability. Then described are the commercial wireless products currently available, with particular emphasis on the manner in which they solve challenges. The authors hope that greater appreciation of the capabilities of wireless middleware will enable future developers of applications for mobile environments to produce more efficient systems and researchers to produce better wireless middleware products.

Understanding Emergent M-Commerce Services by Using Business Network Analysis

Successful m-commerce business models depend on complex networks of business relationships, comprising telecommunications service providers, mobile device makers, financial linkage providers, and various third-party value-adding companies. In this chapter, we will discuss such business relationship networks in the context of Finland, and offer general guidance for the formation and sustenance of effective business networks for m-commerce players worldwide.

Assessing the Market Potential of Network-Enabled 3G M-Business Services

Argued in this chapter is that the key differentiators of m-business comprise a set of the experience/function parameters that set m-offerings apart from e-business. “Network-enabling” of m-business by taking advantage of new network-based services that can seamlessly handle many of the service features can add great value to m-business offerings. In network-enabled m-business, business adopters and their end users in the field are freed from the burden of constantly dealing with the challenges of designing, redesigning, configuring, integrating, upgrading, troubleshooting, maintaining, and billing for m-service offerings. A constellation of m-business service offerings that could take advantage of new network-based services is presented. Finally, an approach is suggested to add value and differentiate m-service offerings so that they continue to remain profitable.

Intelligent Product Brokering and User Preference Tracking

One potential application for agent-based systems has been in the area of m-commerce. In most current systems, user-supplied keywords are normally used to generate a profile for the user. In this chapter, a design for an evolutionary ontology-based product-brokering agent for m-commerce applications is proposed. It uses an evaluation function to represent the user’s preference instead of the usual keyword-based profile. By using genetic algorithms, the agent tries to track the user’s preferences for a particular product by tuning some parameters inside. A prototype was implemented in Java, and the results obtained from our experiments look promising.

Understanding the Mobile Consumer

The recent surge of interest in mobile commerce (m-commerce) is fueled by consumer interest in being able to access business services or to communicate with other consumers anytime and anywhere. It is also motivated by the interest of the business community to extend their reach to customers at all times and all places. Businesses that aspire to succeed in this market must have a deep understanding of the interests and concerns of the mobile consumers in using wireless applications. With this in mind, this chapter provides an analysis of this emerging market from a consumer’s perspective. A consumer-centric m-commerce model outlining the various wireless interaction modes of the mobile consumer (m-consumer) is presented, followed by a discussion of the needs and concerns of the m-consumer. An m-commerce value network is then presented, outlining the roles of the different players within this industry. The various business applications developed to address m-consumer needs are then presented. Finally, a global m-commerce market overview is provided, and some future trends are outlined.

Mobile E-Commerce and the Wireless Worldwide Web

Telecommunications, the Internet, and mobile computing are merging their technologies to form a new business called mobile commerce or the wireless Internet. As more companies make their Web sites accessible to wireless devices and offer services and software to support wireless connections, they urgently need to consider how well the existing infrastructure will support their applications. A well-thought-out strategy is key to any major network change, especially a wireless one, which can touch many different aspects of a business organization. Provided in this chapter is an overall description of mobile commerce, the Internet’s emerging model, and examination of its current state-of-the-art, opportunities and challenges, and future trends. It explains the requirements for operating mobile commerce and the numerous ways of providing this wireless Internet business. While the Internet is already a valuable form of business that already transformed the way the world is doing business, it is about to change again. This change is being driven by consumer demand for wireless devices and the desire to be connected to information and data available through the Internet. There are many new opportunities that have only begun to be explored, and this will become a large revenue source for those who capitalize upon this new form of technology. However, like other capital ventures, these new opportunities have their drawbacks, which may limit growth of the mobile commerce market if not dealt with. Mobile electronic commerce technology is changing our world of business, just as the Internet has changed business today.

Global Heterogeneity in the Emerging M-Commerce Landscape

Mobile phones, mobile Internet access, and mobile commerce (m-commerce) are growing much faster than their fixed counterparts. Several characteristics of mobile networks make them more attractive than fixed networks for less-developed countries and for those countries that want to “leapfrog” the leading IT nations. To exploit the new mobile communications infrastructures, companies from developed as well as developing countries are rapidly integrating m-commerce technology into their business models. Countries around the world, however, exhibit considerable heterogeneity in their adoption of mobile phones and m-commerce technology. Examined in this chapter is the current stage of mobile technology and m-commerce diffusion across the world, and analyzed are factors influencing the diffusion process. In this chapter, the ways in which the m-commerce landscape of a nation—defined by the penetration rate of mobile phones, the specific combinations of different generations of mobile technology, and the blending of various standards within a given generation—is shaped by politicoeconomic, sociocultural, and policy-related factors are reviewed.