Information Technology Reference
In-Depth Information
Figure 8.5
Web site that uses https in the
address and a secure site lock
icon
http
s
As discussed briefly in Chapter 1, mobile commerce (m-commerce
)
relies on the use of mo-
bile, wireless devices, such as personal digital assistants, cell phones, and smartphones, to
place orders and conduct business. Handset manufacturers such as Ericsson, Motorola,
Nokia, and Qualcomm are working with communications carriers such as AT&T, Cingular,
Sprint/Nextel, and Verizon to develop such wireless devices, related technology, and services.
The Internet Corporation for Assigned Names and Numbers (ICANN) created a .mobi
domain to help attract mobile users to the Web. mTLD Top Level Domain Ltd of Dublin,
Ireland, administers this domain and helps to ensure that the .mobi destinations work fast,
efficiently, and effectively with user handsets.
Mobile Commerce in Perspective
The market for m-commerce in North America is maturing much later than in Western
Europe and Japan for several reasons. In North America, responsibility for network infras-
tructure is fragmented among many providers, consumer payments are usually made by
credit card, and many Americans are unfamiliar with mobile data services. In most Western
European countries, communicating via wireless devices is common, and consumers are
much more willing to use m-commerce. Japanese consumers are generally enthusiastic about
new technology and are much more likely to use mobile technologies for making purchases.
M-commerce spending in the United States is expected to exceed $500 million in 2008
and grow to almost $2 billion by 2010 according to Juniper Research. For perspective, U.S.
e-commerce exceeded $100 billion in 2006.
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It is estimated that 40 percent of U.S. companies with annual revenue exceeding $50
grow because of advances in wireless broadband technologies, the development of new and
useful applications, and the availability of less costly but more powerful handsets. For ex-
ample, Yahoo's oneSearch 2.0 mobile search service includes a predictive text-search com-
pletion capability as well as voice recognition technology that adapts to a user's vocal
be overcome to ensure rapid m-commerce growth.
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When it comes to mobile Web sites and mobile Web browsing capabilities, “just because
you build it, doesn't mean they'll come,” says Nikki Baird, managing partner at Retail
Systems Research LLC. “You have to make consumers aware. It's all about getting people to
try something new in the hope they'll come back for more.”
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M-Commerce Web Sites
A number of retailers have established special Web sites for users of mobile devices.
FlowerShop.com launched its m-commerce site, FlowerShopMobile.com, just in time to
take advantage of one of its biggest shopping days of the year, Valentine's Day. Mobile device
users can browse and buy floral gifts, plants, gift baskets, and gourmet foods. “The decision
to go mobile was a natural one for FlowerShop.com,” says Eric Luoma, the firm's president.
“Flowers tend to be an on-the-fly purchase. If you're in an airport and it's your anniversary,
it makes sense to pull out your phone and order flowers for your wife.”
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mdog.com is a portal for your mobile device's Web browser. You direct your browser to
mdog.com and many of your favorite Web sites (e.g., eBay, Craigslist, Wikipedia, Citysearch,
and MySpace) and blogs are displayed in a format convenient for your mobile device.
