M-Commerce As We Know It

Group 1

Kris Allen, Ashley Jones, Olivia Lieblong, Larry Thomas

Key Words: GPRS, HCSD, UMTS, GSM

Mobile Commerce is the use of information technologies and communication technologies for the purpose of mobile integration of different value chains and business processes, and for the purpose of management of business relationships (Themanager.org). The job of M-Commerce is to generate business and distribute information in a mobile fashion. The emergence of M-Commerce benefits businesses by increasing the reach of customers, improves productivity, and providing convenient services through wireless links. Utilizing M-Commerce, businesses can target their customer’s needs with customized incentives and quick access to the server.

At a time when people thrive on the mobile lifestyle, M-Commerce plays an integral role in the ability for individuals to be on-the-go and still accomplish tasks. To create Mobile Commerce, the technologies of GPRS, HCSD, and UMTS must be utilized. To help M-Commerce achieve quick access, it uses a component called GPRS (General Packet Radio Service) that increases it's data transmissions tenfold. This pay-per-volume component allows users to download messages without connecting to the network over and over again. M-Commerce also utilizes the HCSD (High-speed Circuit Switch Data) component, which, although it requires an enormous bandwidth in mobile phone networks, it increases the transmission rate of GSM channels (Themanager.org).

GSM (Global System for Mobile Communications) is a standard mobile phone service in Europe and Japan. This service allows use of M-Commerce across up to 120 countries over the world. Another key component is the UMTS (Universal Mobile Telecommunications System), which allows users to receive all kinds of data to their wireless device. Once this system is implemented, the user will be worry-free of roaming interruptions (Themanager.org).

There are several advantages of M-Commerce, including convenience, customization, quick access, and increase the reach of customers. By allowing customers to purchase items wirelessly via cell phone, PDA, digital wallets, etc, businesses that utilize mobile commerce will have a jump on the competition by having a more versatile service. This convenient service also has a wide range of availability and quick access, which makes the companies using M-Commerce more attractive than others they can only access at home or in the office. Businesses can also customize their offers to customers by observing their past purchases and targeting that market. M-Commerce also allows businesses to track the location of customers if they are on the move. If businesses can locate their customers, they can pinpoint the nearest source for their products. M-Commerce is not just a store down the street, but it is on the web available to people over a longer range. Therefore, businesses get a larger variety of customers, as well as a larger number of customers.

As we all know, the popularity of mobile technology is increasing. We have Mobile TV, Mobile phones, I-Pods that cater to our entertainment wants, and other services that assist our increasingly mobile lives. M-Commerce is an advantageous tool for businesses by providing a better service to their customers and attracting new clientele. M-Commerce is E-Commerce over mobile devices (Mobileinfo.com).

References

CyberValley. M-Commerce. Retrieved April 15, 2006, from http://www.indiainfoline.com/cyva/repo/mcom/ch01.html

MobileInfo.com. M-Commerce. Retrieved April 21, 2006, from http://www.mobileinfo.com/Mcommerce/index.htm

TheManager.org. M-Commere -- The Next Hype?. Retrieved April 20, 2006, from http://www.themanager.org/resources/M-Commerce.htm

Unisys.com. The Future of M-Commerce. Retrieved April 21, 2006, from http://www.unisys.com/annual/annual2000/customers/cooper.asp