Mobile Commerce - New Way to Business

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ISSN (Print): 2319–5479, Volume-1, Issue – 1, 2012

37

Mobile Commerce - New Way to Business

Atiya Parveen, Sobia Habib& Saoud Sarwar

HOD CSE, Al-Falah School of Engineering and Technology

E-mail : [email protected], [email protected], [email protected]

Abstract - The world wide web is now a practical medium for customers, information seekers, business owners and entrepreneurs. The increase in suppleness and power of internet provides proper opportunities for rising up services to customers. In today’s scenario of business mobile commerce has entered in finance, services, retails, telecommunication and information technology services.

M-Commerce has been widely accepted in all these areas as well as, has become a popular way of business. In this paper provide an outline of the fundamentals of m- commerce and e commerce. Here we also see how E- Commerce transaction can be done over wireless network through mobile devices.

Key words - Mobile Commerce, Wireless Technologies, E- Commerce, Security

I. INTRODUCTION

The dramatic increase in mobile phone usage has produced a new avenue for marketing applications and services. Mobile has become the leading way for accessing communications because setting-up mobile network is cost-efficient but also mobile provides greater flexibility and ease to users than landline phone [1]. Mobile Commerce is the subset of e- commerce, which includes all e-commerce transactions, carried out using a mobile (hand held) device [2]. In fact the main difference in M-commerce definition with E- commerce uses the wireless net for performing financial, services and purchases. In other words in M- commerce all kinds of treads such as business-to- consumer, business-to-business and consumer-to- consumer are there. The booming fame has forced the corporate world to develop a new commerce platform that can reach to masses. Mobile commerce has attracted massive traffic because of it distinctive characteristics.

The user can modify the service of any financial institute or banks if gets improved product and service or user is discontented with the service of the

subscribing company. Mobile has played a massive role in communication technology through its resourcefulness and dominance. The ubiquity and easy usage has further made it extremely popular across the globe. It has already surpassed the fixed phone in the world. In spite of huge popularity of mobile commerce, it is still in the early stage and can be further developed in to all the fields, which influence the human life [3].

II. MOBILE WIRELESS TECHNOLOGIES

Wireless media has gone under a rapid innovation process in search for a reliable, simple and business- viable solution to consumer demands for fast, easy, and inexpensive information access. Over the last few years, a number of wireless protocols have been developed and a variety of application vendors have begun to ship wireless products to the market. In fact, the word

"wireless" has become a staple buzzword synonymous to "cutting edge" in the software and content sales vocabulary. The protocol specifications contain the clear description of today's wireless media capabilities.

A. Network technologies

In general all the mobile protocols are very similar to each other, being client-server based, enabling a continuously increasing amount of services to be provided to the users. Although the protocols are very similar to each other but still the variety of protocols is introducing some challenges to the adoption of wide spread M-Commerce. This is because it is more difficult to get a certain critical mass of subscribers to use a universal technology to enable frictionless service providing. The future will show which of the protocols is going to deliver the strongest commercial value at any point in time and will be supported by the largest number of attractive applications.

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International Journal of Research and Development - A Management Review (IJRDMR)

38 B. Bandwidth

As bandwidth demand increases for new and existing network applications, very soon service provider may face the scarcity of bandwidth. This problem may be partially tackled by reuse of frequencies. Different standards, such as Bluetooth, IEEE 802.11, and others may recommend using the same frequency range and that may cause interference.

One type of interference occurs when a channel employing frequency hopping (for security) interrupts another channel when it briefly steps on the latter channels frequency. Whether such interference becomes problem remains to be seen.

C. Security

Currently, few wireless communication protocols offer encryption of the transmission. In security models of protocols that do have security encryption (such as WAP), there have been identified transmission security weaknesses in current protocols.

III. MOBILE COMMERCE:BEYOND ELECTRONIC COMMERCE

Electronic commerce has attracted significant attention in the last few years. This high profile attention has resulted in significant progress towards strategies, requirements, and development of e-commerce applications [4] [5]. The growth forecast for both business-to-consumers (B2C) and business-to business (B2B) aspects of ecommerce over the next few years is phenomenal by any standard. One point that should be made here is that nearly all e-commerce applications envisioned and developed so far assume fixed or stationary users with wired infrastructure, such as a browser on a PC connected to the Internet using phone lines or a Local Area Network (LAN). We envision many new e-commerce applications will be possible and significantly benefit from emerging wireless and mobile networks. We term these applications ―wireless e- commerce or ―mobile commerce.

With the rapid proliferation of mobile devices, including mobile phones, PDAs, and handheld computers, mobile commerce is widely considered to be a driving force for next generation e-commerce[6][7][8].

M-commerce should not be viewed as e-commerce with limitations, but rather as a unique form of e- commerce with its own unique benefits [9].

Additionally, m-commerce is not a substitute for PCs.

Rather; it is a new and a much more powerful way to communicate with customers.

Ubiquity, intimacy, time sensitivity and location awareness are key concepts that make mobile commerce

so different from traditional‘ e-commerce [10]. The other difference between m-commerce and e-commerce is the opportunity to connect information with objects in a more direct way than has been possible until now.

While electronic commerce continues to see phenomenal growth, mobile commerce is still in its infancy. However, as wireless network grows, it is expected that emerging wireless and mobile networks will provide new avenues for growth in mobile commerce, create new business models for mobile operators and offer new applications to business and consumers [11][12].

It is believed to be the next gold rush after e- commerce. Business organizations of different industries are rushing to stake a claim [13]. However, m-commerce is many things to many people. Some people conceive m-commerce as an extension of ecommerce to mobile phones. Some people think it is another new channel after the Internet.

In general, m-commerce refers to any transaction with a monetary value that is conducted via a mobile telecommunications network [14]. According to this definition, m-commerce represents a subset of all e- commerce, including both business-to-business and business to consumer [15]. M- Commerce uses the internet for purchasing goods and services as well as sending and receiving messages using handheld wireless devices. Wireless web applications will enable users with Internet enabled cell- phones [16].

M- Commerce is believed to be driving fundamental changes in the way business is conducted in many industries, particularly in telecommunications, information technology, media and financial services.

M-commerce is so important because it represents the extension of the Internet beyond the static terminal of the PC, or even the television, into a more nimble, anytime, anyplace and anywhere context. It will enable millions of people to access web information services wherever they go [17].

Today, the mobile Internet is emerging even faster, in part because providers, content partners, customers, and investors are leveraging lessons from e-commerce.

Cellular carriers, both nationally and globally, have made significant advances to enable next generation data or ―wireless Web services and mobile, ―m- commerce. Broadly defined, m-commerce involves an emerging set of applications and services people can access from their Web enabled mobile devices [18].

Yet, m-commerce is facing many obstacles as an emerging market, particularly in the U.S.

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39 IV. CHALLENGES IN M-COMMERCE

A. Security

Security is an important part in M-commerce. GSM provides a relatively secure connection through the PIN (personal Identification Number) when turning on the handset. An authentication protocol between handset and the network through SSL encryption of voice and data is also there in GSM. But it is not enough to convince people. In order to get the confidence of critical mass of consumers, more is expected in the field of security [19]. It is possible to run a variety of application on a single small SIM card. Encryption is being used to ensure confidentiality through a secret key in association with the algorithm. This produces a scrambled version of the original message that the recipient can decrypt using the original key to retrieve the content. The key must be kept secret between the two parties. There are two basic methods, which can be used to encrypt a document: symmetric and asymmetric.

B. Business

A key challenge that companies will face as they build businesses for the wireless and wired age is that they will need to integrate capabilities and disciplines that are quite separate in most organizations today.

These include creative thinking, seasoned business skills, a deep understanding of technology and technical issues in both telecommunications and information systems, an understanding of how all this will evolve, and well-honed skills in design and branding.

Executives will need to begin to think now about how to assemble these skills and how to create processes for effectively coordinating them. As they build these new digital businesses, executives should not underestimate what they already know. The lessons learned from the many business successes and failures we have seen during the last five years on the wired Web apply to mobile businesses as well, and to the integrated wired and wireless, on-line and offline businesses of the future. Executives are also to think about how to tackle the changes that mobile computing will bring about in the organization.

V. CONCLUSION

The mobile Internet has opened up new possibilities for the business. Telecommunications industry and the business world are seeing m-commerce as a main focus for the future. There is a big difference between what the technology can do today and what the consumer has been led to expect. But all the issues like slow transmission speeds, difficult user interfaces and high costs are being looked by operators and equipment manufacturers. M-commerce players will need to move fast to improve the user interface and offer innovative

pricing structures. Despite so many downfalls in the past, mobile applications are becoming an important part in our lives, as many of the glitches are worked out.

V. REFERENCES

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[2] Sharma, D. Government Policies & Regulations:

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[4] Upkar, V. (2002). M- commerce: framework, applications and networking support, Kluwer Academic Publishers Hingham, MA, USA Volume 7, Issue

[5] Kalakota, R. & Robinson, M. (1999). e-Business:

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[12] Kumar, S., & Zahn, C. (2003). Mobile communications: evolution and impact on business operations, ‖ Technovation, June, Vol. 23 Issue 6, pp.

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[19] Securing M-Commerce http://e-serv.ebizq.net/

mob/olden_1.html

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