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Mobile Commerce

Mobile Commerce

Mobile Commerce

Mobile Commerce (M-commerce, MC) is a special form of electronic commerce using wireless communication and mobile devices. Mobile commerce refers to any kind of business transaction using the transaction partners in the context of service initiation, service agreement, or performance mobile electronic communication (such as wireless, wireless LAN or Bluetooth), in conjunction with mobile devices.

In addition to technical consider also economic aspects to consider, for example, the possibilities and specific design rules in the implementation of MC applications, safety aspects, the very specific value chain in mobile commerce, business and revenue models, accounting models, and the various uses of the Mobile Commerce. In particular, based on value-added SMS mediated in recent years been repeatedly discussed in public.

Implementation of MC applications

At the beginning of the considerations for MC applications were primarily the conviction is not sufficient to make an offer to existing available on a mobile device such as an existing website accessible mobile. On the one hand would have the use of mobile communication devices and specific advantages and disadvantages would be the other, the user typically needs differ significantly from those in applications outside of the MC.

This realization has had a number of business implications and also drew on the technical side of the application design is an important principle: “Design to Mobile”. This meant that a mobile application should be tailored specifically to the potential and problems of mobility. Problems related primarily to the MC-related interfaces that display and the input capabilities of the then (in the mass market) available target devices and the type and bandwidth available at the time data transmission (GPRS, HSCSD).

With the development of the mobile Internet, in particular the introduction of UMTS and HSDPA, and new billing models, on the one hand (country specific variable), and more powerful devices with more sophisticated, Mobile-based operating systems (e.g., Symbian OS) increased the restrictions on mobile applications as well. At the same time turned out to play much more mobile features such as location-based services in special applications (e.g., digital fleet management) than in the broad mass of a role.

Not least with the Apple iPhone has been the gap between what is useful for mobile devices available, and that which can be used with stationary devices, is smaller. The usage of mobile services such as browsing the Internet or watching videos is with the iPhone, well above the average .

Depending on the category and severity may interact with the user through various MC-relevant interfaces are implemented, may qualify this Interactive Voice Response, shipping / receiving SMS or MMS, Internet-easy interaction (e.g., via WAP or xHTML pages), simple applications (using simple scripting language) and complex applications (using regular higher programming languages, such as those based on J2ME, Symbian OS, Windows Mobile or BREW).

Moreover, we distinguish pull services where the user initiates the data transfer, and push services in which the user is actively addressed. The general user preferences in MC require fast applications that require little memory and intuitive with a few keystrokes are.

Security aspects

From the perspective of the agent can affect the level of information security of the applications it uses its business primarily in two ways: It provides a third-party damage caused by attacks or fraud by the customer, or customers do not perceive due to security concerns an offer.

This was especially at the beginning are a major issue: the security objectives authorization, confidentiality, integrity, authentication and non-repudiation of the rule by technical protection measures, particularly the use of cryptography to achieve. This in turn requires a certain amount of processing power on mobile devices, making the issues of CPU power and the charge quantity in the accumulator marched into view.

With significant progress in both areas, it is now possible to standard techniques, to protect the specific targets set in the MC, for the protection of the mobile terminal and the air interface. For protection against the installation of potentially malicious applications on mobile devices, digital certificates are used (e.g., security, Symbian OS). Furthermore, current mobile devices support thanks to significantly increased computing power today Hypertext Transfer Protocol Secure for encryption of communications.

To consider is, as always in information security, a difference between the actual objective of the security and those who perceive the user, the subjective certainty. This is often the cause when use due to security concerns is not an offer or retail management of a company decides against the use of mobile technologies.

Value chain

Within and in the environment of the MC held a variety of value-added activities. It is not only a strong interdependence between the different kinds of activities but often are also involved in several different fields of work. In the simple case, this is about disintermediation, which is, extending to adjacent value chain.

This could act as a content provider that provides its own content and even processed through a portal. In other cases, technological, or historical reasons of market power have led to the diversification of companies. There are typical examples of companies that have retail on the high level of recognition as a terminal supplier, engaging in their actual core business, but as an infrastructure supplier.

This web of relationships affects many processes and can only be recorded if the consideration of the value-added activities in the MC is applied much more broadly than, say, in Electronic Commerce. This is not only the primary activities – contributing directly to products or services listed in the above definition of the MC to take into account – but also secondary activities.

Total value added can be identified three major areas: the provision of equipment and applications, the provision of wireless communication networks and the provision of services and content for consumers.

Business, revenue and billing models

Business models in the MC can be divided into the basic building blocks (classical) Well, (classical) service, service, placement, integration, content and context disassemble. One way of evaluating business models provides the application of the theory> Informational value and its extension through the concept of the mobile value-added. Proceeds can be of three revenue sources: achieve directly by the user of an MC-bid, based indirectly on the users of the MC-tender (i.e., Revenue by third parties) and related indirectly to the MC-range (i.e., under a non-MC-bid).

To generate a direct transaction-income working, a mobile payment is required, in the simplest case by means of settlement on the mobile phone bill. Often, an MC-offer is purchased by the mobile operator and offered to the customer’s own account. In the age of 2.5 and 3G networks is made in the German market but also increasingly the offer directly through the service by.

Here comes one of the providers in a direct customer and, by the content and quality of the service provides a value added by the customer pays in addition to the transport of data. Between providers and network operators is in some form of compensation and provision of value-added expense.

If the data volume and value of the service separately priced, this is called a settlement by Premium Rate, the customer pays for using the service, a fixed sum, which includes transportation and value added, and this is called settlement by a fixed price. The required allocation of compensation between cellular and service providers is referred to as revenue sharing.

Mobile Commerce Applications

Important applications include

  • MC-applications and services offered by mobile communications, portal and specialized service providers to end users or for business, especially mobile commerce, portals and search and information services and entertainment. There are, for example, mobile banking, mobile entertainment and mobile information services (also known as mobile content), mobile marketing and mobile ticketing.
  • The application of mobile technologies for the integration of mobile workstations in the electronic chain operational performance, particularly in connection with the improvement of business (mobile business).

Study: From Wikipedia, the free encyclopedia. The text is available under the Creative Commons.

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