session 9 notes
TRANSCRIPT
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Session 9 Topics
Wireless Internet Technology and M-Business International Ecommerce
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Wireless Technology & Mobile Ecommerce Wireless technology turns e-business into mobile ecommerce and, ultimately,
m-business, or mobile e-business M-commerce is defined as ‘the ability to purchase good anywhere through a
wireless Internet-enabled device. Primary mobile communication exists through web-enabled wireless phones.
Current applications Conduct online transactions Make purchases Trade stocks Send e-mail
Future applications A wireless office, where computers, phones and other office equipment
are all networked without cables
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Wireless Technology and Devices
Wireless development First-generation wireless technology was the cellular phone Second generation wireless technology, which includes digital
cellular phones, is currently in use worldwide Third generation, or 3G technology will enable wireless devices to
send and receive data as much as seven times faster than a standard 56K modem
Wireless devices Personal digital assistants (PDAs), Palm OS Digital cellular phones (WAP Phones) Two-way pagers (RIM) MS Windows CE/Pocket PC
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Wireless Internet Access
Code Division Multiple Access (CDMA) Each transmission is assigned a specific channel, giving the
transmission the benefit of the entire bandwidth within that channel and reducing the possibility that a connection will be broken
Able to assign each transmission on the network a unique code to ensure security
Global System for Mobile Communications (GSM) Uses Time Division Multiple Access (TDMA) which takes
multiple calls and assigns each call to a different time slot on the same radio frequency, eg. Short message service (SMS)
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Wireless Internet Access 3G technologies : high speed Internet access, email, streaming audio
and video EDGE (AT&T, Nokia) Cdma2000 (Sprint PCS) W-CDMA (NTT DoCoMo)
International Telecommunications Union (ITU) Establishes guidelines for 3G
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Wireless Hype Cycle
Source: Gartner
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Wireless Web Technology Three technologies are used to provide Web access to wireless devices
Wireless Application Protocol (WAP) Palm OS --Web clipping Microsoft’s Pocket Internet Explorer
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PDA and Web Clipping Web clipping
Allows users to take relevant pieces of a Web site and deliver it to a wireless device, eliminating excess content and graphics
Proxy server Lies between client (such as a Web browser) and Web server Query is received by a proxy server controlled by the wireless ISP Proxy server goes to the Web site and “clips” the necessary data
The proxy server transmits the data back to your wireless device If the proxy server does not have the information, it passes the
request to the regular server Query Application Builder (QAB)
Web designers build (PQAs) to be installed on users’ Palm handheld computers
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WAP Wireless Application Protocol (WAP)
Developed by Nokia, Ericsson, Motorola, etc. A set of communication protocols designed to enable different
kinds of wireless devices to communicate and access the Internet Designed to standardize development across different wireless
technologies worldwide Intended primarily for Internet-enabled digital phones, pagers and
other handheld devices Uses Web sites specifically designed for wireless handheld
devices that have small screens and low-bandwidth constraints
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WML Wireless Markup Language (WML)
The scripting language used to create Web content to be delivered to wireless handheld devices, based on XML
Removes “unnecessary” content from Web pages WML tags are used to “mark up” a Web page to specify how the
page should be formatted on a wireless device WML works with the WAP to deliver the content Similar to HTML, but it does not require input devices
Microbrowsers Designed with limited bandwidth and limited memory
requirements Access the Web via the wireless Internet
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WAP and WML How wireless Internet works:
A WAP gateway, which acts as a proxy server, receives the request, translates it and sends it to the appropriate Internet server
Server responds by sending the requested WML document The WAP gateway parses this document's WML (i.e., it analyzes the
WML document, checking it for correctness) and sends the proper text to the digital phone
Deck
A WML document Card
Consists of one user interaction, providing the WML browser with a small, self-contained document for browsing
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Software Appliances for Wireless Devices
No widely accepted standard for wireless development Developers are often required to develop multiple applications Microsoft Pocket Internet Explorer
Reformats complete Web pages as they are downloaded from the Internet for display on the Pocket PC
Allows Pocket PC users to access most of the content currently available on the Web and eliminates the need to tailor Web content for delivery to handheld devices
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Wireless Local Area Networks Easier to install and maintain without disrupting an office or
without having to install a new a new network connection in each location
Technologies Radio Frequency WLANs (RF WLANs): Used to network
devices at a distance Laser technology Infrared technology Bluetooth Wi-Fi 802.11x
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Wireless Communications
Wireless communications can be unreliable and slow, wireless-device bandwidth is about one fifth of the capabilities of a standard dial-up connection
General packet radio services (GPRS) Enables devices to transmit data at speeds of up to 114 kbps
Universal mobile telecommunications standard (UMTS) Will offer transfer speeds of up to 2 Mbps for wireless devices
Smart phones Mobile phones that send and receive both voice and data messages Used to securely send and receive secure mobile transactions
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The Carriers Rule!
Rollout of wireless Internet services depends on the carriers They own the bandwidth licenses Competing standards, esp. in the US Investment in infrastructure Global and nationwide coverage Auctions for new bandwidth Competition Cooperation
Contrast the situations in Europe, Japan and the US.
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Future of Wireless Internet Decreasing cost and size of wireless phones and mobile devices Improving technology Increasing number of devices made wireless Increased venture capitalist interest in wireless technology
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Ultimate Wireless Device
Combination of all features of a mobile phone, PDA and two-way pager
Camera for video telephony and photography Make calls from anywhere in the world Send and receive e-mail in real-time, without having to dial into a
service provider Maintain your address book, schedules, to-do lists, etc. Built-in GPS System
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Transforming the PC-based Web
Sites must be rearchitected Mapping (UAL) New business models needed
Location-based services Push vs. Pull CRM – customer knowledge/preferences Device ubiquity Interaction b/w voice and data
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Alpha-numeric Pager
Web Phone
Wireless PDA
Book a Flight X X
My Itinerary X X
Flight Availability X X
Flight Status X X
Flight Paging X X X
Mileage Plus Summary X X
Mileage Plus Upgrade Status
X
Mileage Plus Award Travel Availability
X
Contact United X X
http://www.united.com/page/middlepage/0,1454,66,00.html
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Host content:-HTML-WML-cHTML*
User-agent detection
Figure 1. Version Adaptation
Host content:-HTML
User-agent detectionGateway Transcoding-- [Server-specific API]--WML--cHTML
Figure 2. Gateway Transcoding
Host content:-HTML-XML-XSLT/XPath
Figure 3. Template Adaptation
User-agent detectionTemplate translation-- [DOM/ASP/JSP/servlet]--WML--cHTML
Content Adaptation for Mobile Web
Zhou & Chan, 2003
* Short for compact HTML, a subset of HTML for small information devices, such as smart phones and PDAs. cHTML is essentially a pared down version of regular HTML over the Internet.
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Tasks with Added Mobile Values Time-critical needs and arrangements, Spontaneous needs and decisions, such as auctions, email, and news, Entertainment needs, Efficiency needs and ambitions, Mobility related needs.
Source: Anckar & D’Incau, 2002.
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Wireless Usability Research Avoid scrolling, Use a flat hierarchy, Design a navigation system consistent with a regular Web browser, Design a back button, Provide a history list, Provide an indication of signal strength, Reduce user’s memory load, and Limit the search scope to improve search efficiency.
Chan et al., 2002.
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M-commerce Contrasts with Traditional Ecommerce
Compare to traditional web Smaller screens Low bandwidth Monochrome vs. Color Character vs. Bit modes Font control Limited local memory Limited data entry capabilities Mini browser features
Phones vs. PDAs vs. new form factors
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Innovation is a key; technologically savvy people will continue to develop and improve wireless devices for consumers needs globally.
M-commerce will provide access to web-based solutions from virtually every location in the world.
"Methods of mobile payments will create $25 billion worth of trade by 2006” says a study from Frost & Sullivan.
M-commerce Strengths
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History tells us tech companies are far too eager to proclaim a revolution. However, history shows that a huge new market does not just show up overnight.
It takes years for consumers to catch on to a new technological development. Tech companies entering into the market have no idea what kind of business
model they should follow. Is a consumer really going to pick up their cell phone and want to hear a
commercial advertising Pepsi? Wireless Application Protocol (WAP) is required with all web-enabled
wireless devices but it has several significant limitations. Adoption of m-commerce cannot justify the costs that go into producing web-
enabled wireless devices.
M-commerce Weaknesses
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Obstacles for m-Business Adoption One of the challenges is to discover just how consumers might be
inclined to use wireless devices for shopping. Wireless service is not universally available or reliable and still
relatively expensive. Limited bandwidth restricts the amount of data that can be sent over
the wireless network. Wireless devices have significantly smaller memory capacity and less
powerful processors than desktop computers. Application development and security standards still evolving.
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M-commerce & B2B Services Industry vertical applications
Deliveries (UPS, FedEx) Construction site supplies Agricultural sensors Insurance adjustors Government inspectors Real Estate Equipment management Incorporating XML Replacing EDI
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m-Business
m-Business e-Business using wireless devices with Internet access B2C marketplace
Increased conveniences for consumers Frequent, small transactions Receiving news, sports scores, e-mail, coupons and
advertisements B2B marketplace
Salespeople can access product databases and place orders Address customer needs immediately Ordering and billing will be conducted remotely
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M-business Services – Location Tracking Location tracking
Can be used for navigation, such as GPS (Global Positioning System) devices installed in cars
Can be used by shipping companies to track delivery trucks, giving customers more accurate tracking information and expected delivery time
Can also be used for targeted marketing
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Location-based Services
911 locator Government mandate Triangulate position from 3 towers
Advertising Impulse buying, walking past a store Discounts
Mapping and Directions Weather forecasts
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M-business Services – Global Positioning System (GPS)
Developed by the United States Department of Defense Uses satellites to track a user’s position (vertical and horizontal),
velocity and the time in their location Six circular orbits (four satellites per orbit), five ground stations and
three antennas Triangulation
Three (of four) satellites are used to determine the latitude, longitude and altitude of the receiver, the fourth satellite is used to check for errors in the triangulation
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Internationalization
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Global e-Business Opportunity for expansion An ambitious and expensive investment that does not guarantee
increased revenue Potential global businesses must review expected revenues vs.
expected cost Linguistic and cultural barriers
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Internationalization and Localization Internationalization (I18n)
Restructuring the software used by your e-business so that it can process foreign languages, currencies, date formats and other variations involved in conducting business globally
Compatible with 16-bit character encoding systems (Unicode) and other computing standards
Localization (L10n) Includes the translation and cultural adaptation of your site’s
content and presentation Online translation services
Enterprise Translation Server ; Alis Technologies Logos ; AltaVista’s Babelfish
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Internationalization and Localization Online translators are not 100 percent reliable Consider the context of the message in a foreign culture Translate META tags and text within graphic images Adaptation of site layout to accommodate translations Color scheme and logo translation Conversion rates Examples: Ikea, United Airline, Yahoo; Amazon
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Internationalization and Localization
Consider downloading capabilities in foreign markets Global content
Refers to information and design that requires translation, but is essentially the same for all cultures
Regional content Product and marketing information that is usually written once in
English and then adapted for various markets Local content
Material on specific regional pages that appears only on that Web site, such as regional promotions, pricing, delivery and store or office locations
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Internalization creates widespread upheaval & increases consumer power
Auto
Net
Pre-technology Adoption Internalization
Mom-and-pop stores on
Main Street
Strip malls aggregatemom-and-pop stores
Retailers benchmarkWal-Mart’s
distribution model
Amazon.com and eBaychallenge Wal-Mart by
creating Web versions oftraditional businesses
Amazon.com and Wal-Mart forced to adopt new business models like
demand aggregation and personal stores
Doing old things in new ways”
“Doing new things in new ways”
Wal-Mart combinesall stores under one roof,
mom-and-pop storesclose their doors
Consumer gain: convenience
Consumer gain: lower prices, better selection,
more convenience
Consumer gain: lower prices, better selection,
more convenience
Consumer gain: ability to set prices and drive
productionM
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Doing old things in waysold
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Choosing an International Market Focus time and money in one or two key markets initially Research competitors and visitors in foreign markets When choosing an international market consider:
The number of people online Internet usage growth rates Per capita income The consumers’ expectations of your business
Resources Global Reach (http://global-reach.biz/globstats/index.php3 Projections
(http://glreach.com/eng/ed/art/2004.ecommerce.php3)
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Obtaining a Local Internet Address
.com domain name is the most universally recognized address on the Web
Domain-name registration in foreign countries is often complex May require owning a trademark or incorporating your business in
the foreign country Organizations offering domain name registration services:
NetNames
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Internalization is different from adoption
Adoption layers a new technology onto existing behavior. People do old things in new ways. Adults are adopting the Net.
Internalization drives changes throughout society. People do new things in new ways. Young consumers are the first generation to internalize the Net.
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Internalization changes the rules Rule 1: Information is everywhere
Consumers will access dynamically generated information from multiple devices
Rule 2: Personal information has value Consumers will exchange personal information for free or customized
products and services Rule 3: Choice is a human right
Suppliers will create customized products and services in response to individual consumers’ demands
Rule 4: There is such a thing as a free lunch Companies will develop loss-leaders to gain exposure to consumers and
drive alternate sources of revenue Rule 5: Building trust doesn’t require face-to-face interaction
Consumers will build trust and seek advice online
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Internationalization Impact on Payment Systems
Offer alternatives to credit-card payment In many countries, credit cards are far less common than in the United
States In Europe, cash-on-delivery is a common form of payment
Giros: Wire transfers between bank accounts Direct Debit
e-Payment service from an American company called EuroDebit Enables electronic debits from European customers’ bank accounts to
be sent to merchants’ bank accounts for a small fee Other Methods:
smart card, e-cash
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Next Session Highlights: Final Exam