Introduction to Information Systems

Supporting and Transforming Business

CHAPTER 8

◦Wireless, Mobile
Computing,
and Mobile Commerce
TECHNOLOGY GUIDE OUTLINE & LEARNING OBJECTIVES

 8.1 Wireless 8.3 Mobile Computing

Technologies and Mobile Commerce
◦ 8.1 Identify the ◦ 8.3 Provide a specific
advantages and example of how each of
disadvantages of each of the five major m-
the three main types of commerce applications
wireless transmission can benefit a business.
media.
8.4 The Internet of
8.2 Wireless Computer Things
Networks and Internet ◦ 8.4 Describe the Internet
Access of Things, along with
◦ 8.2 Explain how examples of how
businesses can use short- organizations can use the
 Introduction
The ability to communicate anytime and anywhere
provides organizations with a strategic advantage by
increasing productivity and speed and improving
customer service.
The term wireless is used to describe
telecommunications in which electromagnetic waves,
rather than some form of wire or cable, carry the
signal between communicating devices
such as computers, smartphones, and tablets.
The term wireless means exactly what it says: without
wires.
In contrast, mobile refers to something that changes
its location over time.
Wireless technologies enable individuals and
organizations to conduct mobile computing, mobile
commerce, and the Internet of Things.
Mobile computing refers to a real-time, wireless
connection between a mobile device and other
computing environments, such as the Internet or an
intranet.
 Mobile commerce—also known as m-commerce—
refers to e-commerce (EC) transactions conducted
with a mobile device.
The Internet of Things is a scenario in which objects,
animals, and people are provided with unique
identifiers and the ability to automatically transfer
data over a network without requiring human-to-
human or human-to-computer interaction.
 8.1 Wireless Technologies

Wireless technologies include both wireless devices,

such as smartphones, and wireless transmission
media, such as microwave, satellite, and radio.
These technologies are fundamentally changing the
ways organizations operate.
Individuals are finding wireless devices convenient and
productive to use, for several reasons:
◦ First, people can make productive use of time that was
formerly wasted—for example, while commuting to work on
public transportation.
◦ Second, because people can take these devices with them,
their work locations are becoming much more flexible.
◦ Third, wireless technology enables people to schedule their
Wireless Devices
Wireless devices provide three major advantages to
users:
1. They are small enough to easily carry or wear.
2. They have sufficient computing power to perform
productive tasks.
3. They can communicate wirelessly with the Internet
and other devices

Modern smartphones exhibit a process called

dematerialization. Essentially, dematerialization
occurs when the functions of many physical devices are
included in one other physical device.

Figure 8.1 illustrates the process of dematerialization

Wireless Transmission Media
Wireless media, or broadcast media, transmit signals
without wires. The major types of wireless media are
microwave, satellite, and radio.
Table 8.1 lists the advantages and disadvantages of
each type.
Microwave Microwave transmission systems
transmit data through electromagnetic waves. These
systems are used for high-volume, long-distance, line-
of-sight communication.
◦ Line-of-sight means that the transmitter and receiver are in
view of each other. This requirement creates problems
because the Earth’s surface is curved rather than flat. For this
reason, microwave towers usually cannot be spaced more
than 50 km (about 30 miles) apart.
◦ Microwave transmissions offer only a limited solution to data
communications needs, especially over very long distances.
Microwave transmissions are also susceptible to
environmental interference during severe weather such as
heavy rain and snowstorms. Although long-distance
microwave data communications systems are still widely
used, they are being replaced by satellite communications
systems.
Satellite
Satellite transmission systems make use
of communication satellites.
◦ Currently, there are three types of satellites circling Earth:
geostationary-earth-orbit (GEO),medium-earth-orbit (MEO),
and low-earth-orbit (LEO). Each type has a different orbit,
with GEO being farthest from Earth and LEO being the
closest.
Three satellite applications: global positioning
systems, Internet transmission through satellites, and
commercial imaging.
Global Positioning Systems A global positioning
system (GPS) is a wireless system that uses
satellites to enable users to determine their position
anywhere on Earth. GPS is supported by MEO
satellites that are shared worldwide.
Internet over Satellite In many regions of the
world, Internet over satellite (IoS) is the only option
available for Internet connections because installing
cables is either too expensive or physically impossible.
IoS enables users to access the Internet from GEO
satellites on a dish mounted on the side of their
homes.
◦ Leading Internet over satellite companies include
HughesNet (www.hughesnet.com),
Viasat(www.viasat.com), EarthLink
(www.earthlink.net), and dishNET
(www.dishnet.com). OneWeb
(http://oneweb.world) was another microsatellite
network to bring Internet access to all corners of the
globe.
 Commercial Imaging Another satellite application is
commercial images from orbit, using very small satellites,
called nanosatellites. Several companies are involved in
launching nanosatellites for scientific and commercial
purposes. Let’s look at some of these companies here:
◦ TellusLabs (http://telluslabs.com) analyzes image data
from NASA and European SpaceAgency satellites to track
global crops, such as wheat, rice, and others.
◦ Global Fishing Watch (http://globalfishingwatch.org; GFW)
analyzes satellite ship-trackingimage data to help identify
where and when vessels are fishing illegally.
◦ Facebook is creating an Internet satellite. The company is
developing the Athena satellite. The satellite is intended to
efficiently provide broadband Internet access to unserved
and underserved areas throughout the world.
Radio Radio transmission It uses radio wave
frequencies to send data directly between
transmitters and receivers.

Radio transmission has several advantages.

First, radio wavestravel easily through normal office
walls.
Second, radio devices are fairly inexpensive and easy
to install.
Third, radio waves can transmit data at high speeds.
For these reasons, radio increasingly is being used to
connect computers to both peripheral equipment and
local area networks (LANs; discussed in Chapter 6).
(Note: Wi-Fi and cellular also use radio frequency
s with other technologies, however, radio
transmission has its drawbacks.
First, radio media can create electrical
interference problems.
Also, radio transmissions are susceptible to
snooping by anyone who has similar equipment
that operates on the same frequency.
Another problem with radio transmission is that
when you travel too far away from the source
station, the signal breaks up and fades into
static.
Wireless Security
Clearly, wireless networks provide numerous benefits
for businesses. However, they also present a huge
challenge to management—namely, their inherent lack
of security.
Wireless is a broadcast medium, and transmissions can
be intercepted by anyone who is close enough and has
access to the appropriate equipment.
 8.2 Wireless Computer Networks and Internet Access

shortrange,
medium range, and
wide area
Short-Range Wireless Networks
Short-range wireless networks simplify the task of
connecting one device to another.
They also eliminate wires, and they enable users to
move around while they use the devices.
In general, short-range wireless networks have a
range of 30 m (100 ft) or less.
Basic short-range networks:
Bluetooth,
ultra-wideband (UWB), and
near-field communications (NFC)
Bluetooth Bluetooth (www.bluetooth.com) is an
industry specification used to create small personal
area networks.
◦ A personal area network is a computer network
used for communication among computer devices
(e.g., telephones, personal digital assistants,
smartphones) located close to one person.
Bluetooth uses low-power, radio-based
communication.

 Ultra-Wideband Ultra-wideband (UWB) is a high-

bandwidth wireless technology with transmission
speeds in excess of 100 Mbps.
Near-Field Communication Near-field
communication (NFC) has the smallest range of any
short-range wireless network.
It is designed to be embedded in mobile devicessuch
as cell phones and credit cards.
 For example, using NFC, you can wave your device or
card within a few centimetres of POS terminals to pay
for items. NFC can also be used with mobile wallets .
Medium-Range Wireless Networks
Medium-range wireless networks are the familiar
wireless local area networks (WLANs).
The most common type of medium-range wireless
network is Wireless Fidelity (Wi-Fi).
Wireless Fidelity is a medium-range WLAN, which is a
wired LAN but without the cables.
In a typical configuration, a transmitter with an
antenna, called a wireless access point (seeFigure
8.4), connects to a wired LAN or to satellite dishes
that provide an Internet connection.
A wireless access point provides service to a number
of users within a small geographical perimeter (up to
approximately 100 m or 300 ft), known as a hotspot.
The major benefits of Wi-Fi are its low cost and its
ability to provide simple Internet access. It is the
greatest facilitator of the wireless Internet—that is,
the ability to connect to the Internet
wirelessly.
MiFi MiFi is a small, portable wireless device
that provides users with a permanent Wi-Fi
hotspot wherever they go. Thus, users are
always connected to the Internet. The range of
the
MiFi device is about 10 m (roughly 30 ft).
Li-Fi Light Fidelity (Li-Fi) is a technology for wireless
communication among devices using light to transmit
data and position.
Li-Fi is a visible communications system that can
transmit
data at high speeds over the visible light spectrum,
ultraviolet, and infrared radiation.
Oledcomm (http://oledcomm.com) currently offers
different products and services based on Li-Fi.
In terms of users, Li-Fi is similar to Wi-Fi. The key
difference is that Wi-Fi uses electromagnetic waves at
radio frequencies to transmit data.
Using light to transmit data allows Li-Fi to offer several
advantages over Wi-Fi:
• Li-Fi provides far greater bandwidth capacity.
• Li-Fi provides very high peak data transmission rates
(up to 10 Gbps).
• Li-Fi enables communications among 100 times
more devices on the Internet of Things.
• Li-Fi provides enhanced security for wireless
communications due to reduced interception of
signals.
• Li-Fi is more effective in areas susceptible to
electromagnetic interference, such as aircraft cabins
and hospitals.
Wide-Area Wireless Networks
Wide-area wireless networks connect users to the
Internet over a geographically dispersed territory.
Wide-area wireless network technologies fall into two
categories:
1. Cellular Radio Cellular telephones (cell phones)
provide two-way radio communications over a
cellular network of base stations with seamless
handoffs.
2. Wireless Broadband, or WiMAX Worldwide
Interoperability for Microwave Access, popularly
known as WiMAX.
◦ WiMAX has a wireless access range of up to 50 km (31 miles),
compared to 100 m (300 ft) for Wi-Fi. WiMAX also has a data
 8.3 Mobile Computing and Mobile Commerce

Mobile computing refers to a real-time connection

between a mobile device and other computing
environments, such as the Internet or an intranet.
Mobile computing has two major characteristics that
differentiate it from other forms of computing: mobility
and broad reach.
Mobility means that users carry a device with them and
can initiate a real-time contact with other systems from
wherever they happen to be.
Broad reach refers to the fact that when users carry an
open mobile device, they can be reached instantly,
even across great distances.
Mobility and broad reach create five value-added
attributes that break the barriers of geography and
time: ubiquity, convenience, instant connectivity,
personalization, and localization of products and
services.
◦ A mobile device can provide information and communication
regardless of the user’s location (ubiquity).
◦ With an Internet-enabled mobile device, users can access the
web, intranets, and other mobile devices quickly and easily,
without booting up a
PC or placing a call through a modem (convenience and
instant connectivity).
◦ A company can customize information and send it to
individual consumers as a short message service (SMS)
(customization).
◦ And, knowing a user’s physical location helps a company
Mobile Commerce
Mobile commerce (m-commerce) refers to
electronic commerce (EC) transactions that are
conducted in a wireless environment,
especially on the Internet.
M-commerce creates opportunities for
businesses to deliver new services to existing
customers and to attract new customers.
The development of m-commerce is driven by
the widespread availability of mobile devices,
the declining prices of such devices, and
rapidly improving wireless bandwidth
Mobile Commerce Applications
Financial Services Mobile financial applications
include banking, wireless payments and
micropayments, money transfers, mobile wallets, and
bill payment services. The bottom line for mobile
financial applications is to make it more convenient
for customers to transact business regardless of
where they are or what time it is.
◦ A mobile wallet (m-wallet), also called a digital wallet, is
an application (app) that people use to make financial
transactions. These apps can be downloaded on users’
desktops or on their smartphones.
◦ When the app is on a smartphone, it becomes a mobile
wallet. Mobile
wallets replace the need to carry physical credit and debit
cards, gift cards, and loyalty cards, as well as boarding
Location-Based Applications and Services M-
commerce B2C applications include location-based
services and location-based applications.
Location-based mobile commerce is called location-
based commerce (L-commerce).
Location-based services provide information that is specific to
a given location.
◦ For example, a mobile user can (1) request the nearest
business or service, such as an ATM or a restaurant;
◦ (2) receive alerts, such as a warning of a traffic jam or an
accident; and
◦ (3) locate a friend. Wireless carriers can provide location-
based services such as locating taxis, service personnel,
doctors, and rental equipment; scheduling fleets; tracking
objects such as packages and train boxcars; finding
information such as navigation, weather, traffic, and room
Mobile Advertising Mobile advertising is a form of
advertising through cell phones, smartphones, or
other mobile devices.
Intrabusiness Applications Although business-to-
consumer (B2C) m-commerce receives considerable
publicity, most of today’s m-commerce applications
actually are used within organizations
Accessing Information Another vital function of
mobile technology is to help users obtain and use
information.
Telemetry Applications Telemetry refers to the
wireless transmission and receipt of data gathered
from remote sensors.
 Telemetry has numerous mobile computing applications. For
example, technicians can use telemetry to identify
maintenance problems in equipment, and doctors can
monitor patients and control medical equipment from a
distance.
 An interesting telemetry application for individuals is an
iPhone app called Find My iPhone. Find My iPhone is a part
of the Apple iCloud (www.apple.com/icloud). This app
provides several very helpful telemetry functions. If you
lose your iPhone, for example, it offers
two ways to find its approximate location on a map.
 8.4 The Internet of Things
The Internet of Things (IoT), also called the
Internet of Everything, the Internet of Anything, the
Industrial Internet, and machine-to-machine (M2M)
communication, is a system in which any object,
natural or manmade, has a unique identity (i.e., its
own IP address) and is able to send and receive
information over a network (i.e., the Internet) without
human interaction.
Wireless sensors are an underlying technology of the
Internet of Things.
A wireless sensor is an autonomous device that
monitors its own condition as well as physical and
environmental conditions around it, such as
Radio-Frequency Identification
Radio-frequency identification (RFID) technology
allows manufacturers to attach tags with antennas and
computer chips on goods and then track their
movement using radio signals.
RFID was developed to replace bar codes.
RFID systems use tags with embedded microchips,
which contain data, and antennas to transmit radio
signals over a short distance to RFID readers.
The readers pass the data over a network to a
computer for processing. The chip in the RFID tag is
programmed with information that uniquely identifies
an item. It also contains information about the item
such as its location and where and when it was made.
Examples of the Internet of Things in Use
The Smart Home: In a smart home, your home
computer, television, lighting and heating controls,
home security system (including smart window and
door locks), thermostats, and appliances have
embedded sensors and can communicate with one
another through
a home network. You control these networked objects
through various devices, including your pager,
smartphone, television, home computer, and even your
automobile.
Environmental Monitoring: Sensors monitor air and
water quality, atmospheric and soil conditions, and the
movements of wildlife.
 Chapter Glossary
Bluetooth Chip technology that enables short-range
connection (data and voice) between wireless devices.
cellular telephones (cell phones) Phones that
provide two-way radio communications over a cellular
network of base stations with
seamless handoffs.
global positioning system (GPS) A wireless system
that uses satellites to enable users to determine their
position anywhere on Earth.
hotspot A small geographical perimeter within which
a wireless access point provides service to a number
of users.
 Chapter Glossary

Internet of Things (IoT) A scenario in which objects,

animals, and people are provided with unique
identifiers and the ability to
automatically transfer data over a network without
requiring human-to-human or human to-computer
interaction.
location-based commerce (L-commerce) Mobile
commerce transactions targeted to individuals in
specific locations, at specific times.
microwave transmission A wireless system that
uses microwaves for high-volume, longdistance, point-
to-point communication.
mobile commerce (or m-commerce) Electronic
 Chapter Glossary

mobile computing A real-time connection between a

mobile device and other computing environments,
such as the Internet or an intranet.
mobile wallet (m-wallet) A technology that allows
users to make purchases with a single click from their
mobile devices.
near-field communication (NFC) The smallest of
the short-range wireless networks that is designed to
be embedded in mobile
devices like cell phones and credit cards.
personal area network A computer network used
for communication among computer devices close to
one person.
 Chapter Glossary

radio-frequency identification (RFID) technology

A wireless technology that allows manufacturers to
attach tags with antennas and computer chips on
goods and then track their movement through radio
signals.
radio transmission The use of radio-wave
frequencies to send data directly between
transmitters and receivers.
satellite radio (or digital radio) A wireless system
that offers uninterrupted, near CD-quality sound that
is beamed to your radio from satellites.
satellite transmission A wireless transmission
system that uses satellites for broadcast
 Chapter Glossary
telemetry The wireless transmission and receipt of
data gathered from remote sensors.
ultra-wideband (UWB) A high-bandwidth wireless
technology with transmission speeds in excess of 100
Mbps that can be used for applications such as
streaming multimedia from, say, a personal computer
to a television.
wireless Telecommunications in which
electromagnetic waves carry the signal between
communicating devices.
wireless access point An antenna connecting a
mobile device to a wired local area network.
 Chapter Glossary
Wireless Fidelity (Wi-Fi) A set of standards for
wireless local area networks based on the IEEE 802.11
standard.
wireless local area network (WLAN) A computer
network in a limited geographical area that uses
wireless transmission for
communication.
wireless sensor An autonomous device that
monitors its own condition as well as physical and
environmental conditions around it, such as
temperature, sound, pressure, vibration, and
movement.