The Problems Regarding the Mobile Commerce Business Solution - Research Paper Example

1- Abstract A small number of technologies have enjoyed as quick recognition as the Internet. Internet tools and techniques are transforming and modernizing the ways by which business activities are carried out. These tools and techniques are also transforming the basic technical structure on which various corporations are developing their domestic or internal information systems. The majority corporations/businesses are making use of the Internet tools and techniques to develop a private internal network which is acknowledged as intranet. Moreover various organizations are utilizing the similar tools to develop protected, business-to-business networks that are known as extranets. These technology movements are establishing a vital business fashion that is electronic commerce. Electronic commerce engrosses carrying out both inside and outdoor business over Internet, intranets, and extranets. Electronic commerce comprises the purchasing and selling of products and services, the payments matters, and the simplification of daily business activities or operations, using digital communication (Whitten, Bentley, & Dittman, 2000, p. 23) and (Laudon & Laudon, 1999, pp. 24-25). M-commerce can be defined as the conduct of e-commerce using wireless devices. It is the business use of mobile computing, which is computing using mobile devices (such as cell phones, PDAs) and carried out mainly by wireless networks (Turban, Leidner, McLean, & Wetherbe, 2005, p. 28). This paper will present detailed overview of the M-commerce emergence, main technology, market implementation, target market, business benefits and main risks. 2- M-Commerce: An overview At the present, approximately more than 40 million Americans are active users of the mobile internet by means of mobile browsers and smart-phones. And 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). Although, 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 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) and (Maamar, 2003). Also, 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 using 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) distinguish between E-commerce and M-commerce by explaining that, E-commerce is normally 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). 3- History In the customary computing environment it was basic to use the computer to carry out some work on it. The computers were linked to each other, in the form of networks, servers, etc. by means of wires or cables. However, these circumstances restricted the utilization of computers and offered difficulty to the personnel and people on the move or travel. Especially, repair people, salespeople, law enforcement agents, service workers, and utility workers can be more efficient if they can utilize computer while at their duties in the field or in travel. Furthermore, there are also, workers on holiday and mobile vacationers who desire and need to be linked with office or home. For all these issues, the primary solution was to produce computers small enough so anyone can be moved with the computer. At the start, the laptop computer was developed, and afterward lighter and lighter computers, for instance, the PDAs and other handhelds, came into view. These carriable computers are acknowledged as mobile devices. They have turned out to be smaller with the passage of time and more dominant regarding processing power and capacity to store data. Finally, mobile users are able to download (or upload) information from or to a regular desktop computer in a process known as synchronization. One could use the mobile device until the battery is working. The other need for mobile computing was to substitute wires with wireless communication media. Wireless systems have been used in TV, radio, and telephones for a long time; therefore it was expected to acclimatize them to the computing setting (Turban, Leidner, McLean, & Wetherbe, 2005, p. 238), (Lee & Benbasat, 2003) and (Karki, Hamalainen, & Porras, 2008). 4- M-Commerce Application Although the affect or influence of mobile devices on our lives will be very important, and one is already happening in the form we carry out business activities. This affect can be acknowledged as mobile commerce (also recognized as m-commerce and m-business), which is fundamentally any e-commerce or e-business carried out in a wireless environment, mainly by means of the Internet. Similar to regular e-commerce applications, m-commerce can use the Internet, smart cards, private communication lines, or other framework. M-commerce is not simply a distinction on available Internet services; however it is an additional room of e-business (Turban, Leidner, McLean, & Wetherbe, 2005, p. 240) and (Garofalakis, Oikonomou, & Stefanis, 2008). 4.1- Classes of M-Commerce applications The applications of M-commerce can be divided into different classes: (Turban, Leidner, McLean, & Wetherbe, 2005, p. 240), 1. Mobile financial applications The applications of this classes includes: brokerage, banking and payments by mobile users 2. Mobile advertising Distributing user-specific and location-sensitive information to users 3. Mobile inventory management Location tracking of products, boxes, troops, and people 4. Proactive service management Distributing to vendors information associated to distributing products 5. Product Searching and shopping Searching/ ordering specific products from a mobile device 6. Wireless reengineering Enhancement of business services 7. Mobile auction or reverse auction Services for customers to by or sell specific products 8. Mobile entertainment services Video-on–demand and additional offers to a mobile user 9. Mobile office Working from traffic jams, railway station, airports and conferences 10. Mobile distance education (B2C) Participating in a class using streaming audio and video 11. Wireless data center Receiving information from mobile users/ vendors 12. Mobile music/ music-on–demand Downloading and playing music using a mobile device 5- Benefits of M-Commerce Additionally the development of m-commerce is driven by the following factors: (Turban, Leidner, McLean, & Wetherbe, 2005, p. 240), (Garofalakis, Oikonomou, & Stefanis, 2008), (Jang & Lee, 2002), and (Kurkovsky, Zanev, & Kurkovsky, 2005) and (Kitch, 2009) 7.1- Widespread Availability of Mobile Devices The number of cell phones all the way through the world goes beyond 2 billion. Therefore, a possible crowd market is present for carrying out innovation, communication, cooperation, and m-commerce. This enlargement helps developing countries to leap-frog to m-commerce (Turban, Leidner, McLean, & Wetherbe, 2005). 7.2- No Need for a PC Because the Internet can be used using mobile phones or additional Internet-enable wireless devices, so the PC is not essential for using Internet. The costs of purchasing PC and Internet connection can be saved (Turban, Leidner, McLean, & Wetherbe, 2005). 7.3- The Handset Culture An additional driver of m-commerce is the extensive usage to-20-30-year-old age group. This group will represent a power of online buyers once they start to earn and pay out huge amounts of money (Turban, Leidner, McLean, & Wetherbe, 2005). 7.4- Vendors' Push Vendors also are taking advantage of m-commerce. Both manufacturers of mobile devices and mobile communication network operators are developing numerous powerful applications of mobile computing and m-commerce with the intention that they can sell modern and up-to-date technologies, products, and services to mobile users (Turban, Leidner, McLean, & Wetherbe, 2005). 7.5- Declining Prices and Augmented Functionalities The price of mobile devices is decreasing day-by-day. However the functionalities are growing and improving (Turban, Leidner, McLean, & Wetherbe, 2005). 7.6- Improvement of Bandwidth To appropriately carry out m-commerce, adequate Internet speed for distributing text is essential; though, adequate Internet speed is also essential for video, voice and multimedia. The 3G (third-generation) technologies present the required Internet speed, approximately 2 Mbps. This helps information to go 35 times faster as compared to the speed of 56k modems (Turban, Leidner, McLean, & Wetherbe, 2005). 7.7- M-Commerce Value Chain and Revenue Models M-commerce is a complicated course of action linking numerous functions and numerous entities (such as merchants, customers, mobile operators, and so on). The most important components in the m-commerce are value chain (for distributing m-commerce information and applications to end users) (Turban, Leidner, McLean, & Wetherbe, 2005). 7.8- Broad reach In mobile commerce, people can be reached at any time from any place. Obviously, people can block specific hours or specific messages, however when people take an open mobile device, they can be accessed instantaneously (Turban, Leidner, McLean, & Wetherbe, 2005). 7.9- Instant Connectivity Mobile devices allow users to connect without problems and rapidly to the Internet, intranets, additional devices, and database (Turban, Leidner, McLean, & Wetherbe, 2005). 8- Problems in Mobile Commerce This part of paper discusses the problems regarding the Mobile Commerce business solution: Mobile devices are less vulnerable to attack by malicious code but that does not mean that m-commerce is more protected than e-commerce. By their varied environment mobile transactions create various security challenges (Turban, Leidner, McLean, & Wetherbe, 2005). 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 users can face lot of security and privacy risks (Scourias, 2003). Another significant disadvantage that users can 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 (Business Link, 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 (Business Link, 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 (Business Link, 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). 8- Conclusion Mobile phone technology greatly occupies the marketplace as compared to some other technology, at the present this is useful to sell and purchase the goods and services using mobile phones. Presently we have facilities 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. This paper has presented detailed overview of the m-commerce technology. This research has outlined different aspects of this technology its history, emergence, implementation areas, working mechanism, potential benefits and some difficulties with operating of this technology. I hope this research will offer a detailed overview of the m-commerce and its working areas and implementation. 9- Bibliography Business Link. (2009). 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