Mobile Commerce: Applications and Contributions MBE-09-37

Essay
Course : Computer Applications in Business
Instructor : Mr. Zubair Ahmad
Student Name : Zeeshan Faruqi
Roll Number : MBE-09-37

MBA Evening 2nd Semester

Session 2009-12

Institute of Management Sciences

With including quotation and references

Similarity Index Internet Sources Publications Student Papers

17% 10% 10% 14%

8% 5% 6% 7%

Without including quotation and references

Similarity Index Internet Sources Publications Student Papers

10% 5% 4% 9%

1% 0% 0% 1%

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Mobile Commerce: Applications and Contributions MBE-09-37

Abstract
A number of discussions have been screened out on mobile commerce and its applications when
it emerged via electronic commerce. Still by the passage of time its applications and their
effective uses are increased and satisfied their users in a meaningful form. The essay contains a
variety of mobile commerce (m-commerce) applications and mobile device contributions in this
modern era towards globalization. In this paper, first give the introduction about mobile
commerce and then explain the importance. There are several devices and technical terms are
attached with m-commerce to support it and give out the maximum output.

Mobile electronic commerce (e-commerce) is becomes the basic and essential part of every trade
and we can’t forget its importance and contribution. The contributions of mobile devices talk
about with economically, socially and technologically trends and explain how these factors
influenced on mobile commerce efficiency.

Keywords Mobile Commerce, Mobile Devices and its Application and Contribution

Introduction

Nowadays there is a period of computer technology. Our life is totally depends and connects
directly or indirectly through computer technology and its various applications. Commerce,
trade, businesses, industries, companies etc perform their business tasks and functions through
electronic commerce presently. E-commerce has variety of categories through which the
businesses are done globally. Any electronic commerce is accomplished under wireless
background especially via internet is called mobile commerce. M-commerce or m-business is
rapidly grown among all the producers worldwide. It is cost effective as well as time consuming.
With the help of internet, smart cards, computer devices, private communication lines etc you do
business deals without going anywhere and deliver your products to consumers additionally. It is
also increase your sales and generate revenue without bear any extra expenditure.
Mobile commerce also provides the platform to entertain existing customers with exciting
updated services, create awareness and catch the attention of fresh consumers in the market and
give tough time to your competitors through different strategies. Security is becoming the main
issue for prevent secret ideas, innovative development, customized software etc. M-commerce

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Mobile Commerce: Applications and Contributions MBE-09-37

provides security measures, instant sharing and delivery of ideas. The business model issues can
also be preventing from theft after applying security passwords. Its applications are also very
productive if properly utilized and have a strong monitoring system applied.

Enhancement of E-commerce via M-commerce

New production of cellular devices undoubtedly expands the significant use of internet in
productive manner and rapid growth of any business is now depending upon adoptability of
mobile commerce applications. Internet access through the customized PC waste the advantages
of internet world somehow but after the mobile technology creates and attracts more people and
increase their users because of the easily access of it. It is more convenient and provides a large
number of benefits. In view of this, we can say that electronic commerce is now being in the
period of rehabilitated into mobile commerce. It is due to the fact mobile technology is young
and easily adoptable by everyone and provides better results for the good and running business.
[1]
Currently electronic transactions are becoming more popular for the reason of convenience,
easily accessible and low-cost among users. System designers configured their systems
according to the latest wireless technology for the promotion of electronic commerce and make it
efficient for completion of business transactions rather than wired internet which is quite
expensive. With the expansion of mobile users, wireless technology network is also become the
basic necessity and compliment for mobile application [2]. Most of the transecting parties are
reliable and directly or indirectly depends on mobile computing environment through several
wireless computing devices. However, as security is concerns, wireless links can easily be
accessible because of its open access points. For nasty users, it is quite an easy task to gain
access of this wireless network and done unethical actions and carry out fraudulent activities.

M-commerce Architecture Outline

The working of mobile commerce process is based on three things i-e End User, which are
consider as mobile clients. Mobile Operator, build network between mobile client and service
provider through several IP gateways. Mobile Commerce Provider, who performs various mobile
commerce applications for the users.

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Mobile Commerce: Applications and Contributions MBE-09-37

Look at the architecture below:

Mobile Network
Mobile Mobile
IP Gateway Commerce
Client
Application

This architecture enables to understand the whole process of mobile commerce in a short way.
Mobile phone services play a significant role to accomplish mobile e-commerce. Supply Chain
Management (SCM) process is also fully dependable on mobile commerce. If its work efficiently
then the SCM gives a good productivity. All this process is exist only because of electronic
commerce and its applications.

M-commerce Applications (Buyers’ and Consumers’ Prospective)

The mobile commerce has the ability to contact and interact with their users anytime and
anywhere. The communication provided by this process is quick and respond according to all
queries. Short messaging service (SMS) is the most successful way of communication nowadays
all over the world [3]. SMS attracted number of users in last few years. As from the records, “In
United Kingdom, 580 million users who sent 431 billion messages in 2003. In the first quarter of
2004 users sent 135 billion SMS messages and predictions are that 94.9 million mobile
commerce users in 2003 will grow to 1.67 billion users by 2008”.
We can classify mobile commerce application according to consumers and buyers business
prospective like business to business (B2B) and business to consumer (B2C).

Classes of Applications Examples

Financial Applications via Mobile (B2B, B2C)
Advertising via Mobile (B2C)
Mobile Office (B2C)
Data Centre with Wireless Environment (B2B,
B2C)
Distance Education via Mobile (B2C)
Payments made to mobile users and banking
functions performed
Particular advertisements sent to users to all
locations
In traffic jams, in airport and in conferences
continue your work
Download the information for vendors via
mobile
Through streaming audio and video, easily take

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Mobile Commerce: Applications and Contributions MBE-09-37

the class
Music/ Music-on-Demand via Mobile (B2C) Mobile device can download and play music.
Mobile Proactive Service Management (B2B, Transmission of Information related to
B2C) distributing components to vendors
Inventory Management via Mobile (B2B,
People, troops and goods can be locate
B2C)
Entertainment Services through Mobile Mobile users avail the service of video-on-
Technology (B2C) demand

Wireless Application Protocol

Majority of mobile commerce activities are done by the help of Wireless Application Protocol
(WAP). In wireless communication atmosphere, the wireless application protocol providing
several application layers according to international standards. Without WAP electronic trade is
also not possible nationwide as well as worldwide. Excessive use of wireless application protocol
connected the mobile web through a mobile phone or through a Personal Digital Assistance
(PDA). WAP providers give attractive services to their users which is beneficial for both
consumers and producers. It helps in placement of orders and gets meantime delivery to the
desired location and have a proper check and balance [4]. Following are the facilities provided
by the WAP.
It provides the basic and most important activity like E-mail which you can do anywhere,
anytime you want and need. We can check out the financial status and perform financial services
through mobile phone. Payment through credit cards is also done with the help of WAP.
Business individuals know the exact status of stock markets and do tracking of prices. Sports
lovers find out their required information. Corporate sector also get up-to-date through news
headlines related to their fields. Also download music and fulfills entertainment needs.

Adaptation of Banking Online Strategies

The internet arrival in the business market developed the transaction system as well as also
playing an important and significant role in banking sectors. In United States 1995, the Security
First Network Bank was the only bank who builds and starts Internet – Banking first time in
banking world around the globe. The concept of making the corporate website for their

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Mobile Commerce: Applications and Contributions MBE-09-37

customers and for business growth and also shows the presence in internet being developed.
Afterwards, banks starts to prepare software applications which give the right to access accounts
for the account holders and later allowed them to make transactions and fulfill their banking
needs and perform business functions online with the help of internet facility. In the end of 2003,
most of the commercial banks around the world can do internet banking and provide various
online services to their customers for their convenience. [5]

Benefits

Currently, the mobile technology groomed in every aspect of life then why banking sector did
not give importance to this technology and create the ways to get benefit from this. As we know,
mobile is becoming the major part of our lifestyles and now without cell phone we can’t even
imagine our lives. Banking geniuses’ now making strategies to do banking through mobile
technology and increase their users and generate profits. Mobile commerce is the best example
of this activity governed by the bankers to attract more customers. [6] They offer value added
services which directly serve their account holders through SMS (short messaging services)
alerts like complete know how about their current account position. If they make any transaction
through credit cards, SMS will give the complete information about his/her transaction and
making records of their transactions in mobile INBOX etc. this is a very secure system and any
misuse of credit card will notify their customer in the meantime and he/she easily control this
violation and take action against this. The deposits and withdrawals through account by anybody
will intimate by the accountholder through short messaging service alerts. Not only banks
generate revenue, cellular companies also increase profits through m-commerce which is the
fastest strategy adopt by all the commercial banks by giving number of value added services with
the fully cooperation of cellular companies. E-commerce is closely related to m-commerce
nowadays because of mobility and convenience and gives best output from the side of the
consumers in busy lives.

M-Commerce Driving Forces

The m-commerce is an application which gives opportunity for better and secure communication
for private or for business purposes. It makes everyone habitual that they even pay or bear more

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Mobile Commerce: Applications and Contributions MBE-09-37

cost to use this in a prospectus way. This divides the customers in segmentations and this shows
their willingness in different ways. For this purpose, the companies designed interfaces which
give access in a special manner for their users and get information which they need and company
also get the fastest feedback through this force. The entire structure is becoming quite
understandable through the development in mobile commerce.
The transmission related driving factors which are working under technology also enhance the
mobility. We separate the lines and fixed them for the particular use and get output through this
and maintain the quality like voice transmission. These forces created the global roaming as well
after assigning the frequencies.
The network access, low cost, reasonable prices of mobile services, changeover possibilities and
external factors are contributing significantly for the market growth. These are known as the
economic drivers as land-line connections are replaced by the mobile connections for achieving
the better future. Conclude on these facts of above forces we must say that the mobile
environment would be the next future for all markets and electronic commerce is slightly
emerged in mobile commerce. [7]
Economic trends are always depends upon the economy of the country. Some countries are
specialized in making and generating softwares which creates the monopoly in all the
communication world. Other countries are totally depends upon them for better communication
and spend a lot money on installation of that developed system. The economy of that country
becomes strong as compare to others.
The prices of all devises also create inflation in case of monopoly. But, the main benefit for the
consumers is that social trends increase and a good interaction among customers and producers
build. They perform their business and daily life important activities anywhere anytime they
want because of mobility. Now we understand that technology plays a remarkable role in
achieving the target and goals we set. Third world countries also grow after this rapid and fast
communication among the world and build a good socialize network which gives awareness and
benefits to them.

Contribution of Mobile Communication

Mobiles is become the basic necessity of our routine life. It involves in our life as other elements
and plays a role in technology development with mobility. Economic trends depend upon

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Mobile Commerce: Applications and Contributions MBE-09-37

positive net effects, substitutes, prices for mobile devices, special softwares and demand factors
of application devices. Social trends increase mobility and comfort, market liberalization,
business activities anywhere anytime and real time discussion on current topics. Technological
trends provide shorter innovation cycles, additional services due to broadband communication
devices, semiconductor and software development.
This can also be summarizing by the following figure:

positive net effects

substitutes
Economic
Trends prises for mobile devices
special softwares

increase mobility and

comfort
market liberalization
Social
Trends business activities,
anywhere anytime
real time discussion on
current topics

shorter innovation cycles

additional services sue to
Technologic broadband
al Trends communication devices
semiconductor
software development

Economically, socially and technologically mobile communications contributes a bundle of ease

and convenience in all activities.

Example

When the markets of Eastern Europe emerged, it’s also provided the productive ground to the
Western Europe Markets. Markets of Europe (western) expanded its payment modes on
modernization basis and only mobile commerce played a significant role to develop these new
methodologies.

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Mobile Commerce: Applications and Contributions MBE-09-37

In Poland, customers rapidly switch to debit cards instead of using cash and cheque withdrawals.
In Romania, Automated Teller Machine (ATM) not only given out cash but also gives the
facility to clear utility bills as well as recharged prepaid phones.
In China, mobile communication is widely use and a need of many environments and finished
the gap between work and leisure usage [8].

Bluetooth and M-commerce

Bluetooth is the product name which is physically tiny, cheap and wireless technology device
with little range. Its specification is quite friendly and it is become the attractive feature of
mostly mobile devices. It does not required or need to purchase cables and also not mandatory
for connecting with their specified users through cables for computing and technological
operations. This is also a cost effective element in mobile commerce. Bluetooth enables mobile
phones, computers and Personal Digital Assistant (PDA) to connect buyers to consumers as well
as consumers to buyers. It requires not any other device or spare parts but frequently using in
radio waves due to short range capability and also give chance to communicate with each other
for any purpose.

Bluetooth device offers security measures among rest of the devices for secrecy and consumer
safety for the purpose of verification. It also secures date from wastage between two devices.
Authorization process is the attractive part of these devices (whether device X is allowed to have
access service Y).

Impact on Social Network

Mobile E-commerce supports all the trade running between different countries cultures, religions
etc. As becoming more popular in daily routine business, mobile e-commerce become an
effective tool and rapidly adopted by every age group [9]. It can eventually create a social
network between buyer and seller which leads to trust, confidence, assurance and guarantee.
Customer relationship builds and practiced for long-term basis and mechanically healthy
communication stars for business welfare. Trust not only decreases risk of security but also
streamline the transaction process with ease. Because of this customers obtain a confidence

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Mobile Commerce: Applications and Contributions MBE-09-37

though wed sites and have a proper ground for interaction. After emerging mobile commerce
with electronic commerce, users are increasing because of mobility and social circle enhanced by
doing their business with the help of mobile devices. [10]

Connecting Mechanism

Mobile devices were made for the purpose to connecting all the modes of communications
through electronic trade for productive results. This also mechanized other fields directly or
indirectly related to commerce. Customer Relationship Management (CRM) and Supply Chain
Management (SCM) are the good examples to elaborate this mechanism. These are the such
process which builds social network as well [11]. The m-commerce is widely and rapidly
accepted phenomena among all over the world. It is competent to get a hold on services and
easily operate the applications where ever and when ever required [12].

Training
For understand this mechanism, the companies arrange special training sessions for their
employees and train them according to the current need and provide technical knowledge. For
users, media will play an effective role for create the awareness among the general public. This si
not much difficult to understand, proper time and frequently practice will make a user friendly
for such mobile devices.

Conclusion

We all know the importance of E-commerce in our lives. It is the very broader term to evaluate
in such small script. Its variety of kinds are emerged in our daily life that we cannot eliminate
and also failed to do this. Currently, mobile phones are becoming stronger for better and quick
communication in such busy life where find uncertainty everywhere. Smart business men
develop different strategies to overcome the cost and get maximum profits. That’s why electronic
trade become more active and considers it more useful and also easy to adopt because internet is
the only source to perform such activities. After e-commerce, mobile commerce is widely
adopted by everyone due to its mobility and easily carries with self where ever the user wants. I
conclude that, this whole essay contains the benefits and contribution of mobile commerce and

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Mobile Commerce: Applications and Contributions MBE-09-37

create awareness among users that how they get maximum benefits from it. Furthermore, I
suggest adopting mobile commerce for trade, business and import/export activities. This is
cheap, cost effective and also time consuming.

References

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Mobile Commerce: Applications and Contributions MBE-09-37

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