Wireless Communications and E-Commerce
Posted: Tuesday, November 14, 2006
by Shwan Jaf
Introduction
E-commerce systems have traditionally relied on wired networks for most of the sensitive transactions. But the emerging advantages and benefits of wireless networking are pushing a number of business organizations into incorporating these technologies into the e-commerce activities. The initial reluctance in adopting wireless technology into e-commerce was largely due to two main reasons: wireless network security vulnerabilities and limited bandwidths. The state-of-art wireless communications have addressed these two issues, and more, such that there is a general push towards widespread use wireless technologies in present day e-commerce, resulting in the emerging paradigm of mobile-commerce or m-commerce. According to a recent TechRepublic survey [1], 75% of the respondents indicated increased focus on extending business to mobile workers. To fully exploit the benefits of wireless communications, business enterprises must “think outside the box" in order to turn the vision of wireless technology into a successful business reality. Businesses must appreciate the benefits and the challenges of this new technology, and effectively use these tools to achieve the core e-commerce goals. This paper discusses these issues, as well as highlighting the steps that organizations need to take in order to migrate from a totally wired network infrastructure to one that incorporates seamless mobility.
Wireless communication systems are now available that can cater for e-commerce applications [2]. The technologies can provide end-to-end wireless connectivity for mobile users from personal area networks (Bluetooth), to local wireless networks (Wifi), metropolitan wireless networks (WiMAX), and wide area wireless over cellular 3G or satellite data connections. Thus, the wireless technologies available encompass the whole scope of data communications. These technologies can be implemented in an e-commerce setting to provide productivity gains without compromising user experience, application performance or enterprise security. According to Motorola Seamless Mobility Vision [1], these technologies should implemented in such a manner that the network meets the following goals: • Always-on sessions that seamlessly cross networks and devices • Network-agnostic services that ensure full mobility across heterogeneous networks • Broadband-oriented, user-centric content that is both device- and context-sensitive • Embedded privacy, safety and security, ensuring a proactive and holistic approach to risk management.
Benefits of wireless communications for e-commerce
The wireless technology benefits for business enterprises rolling out e-commerce applications are far-reaching. The benefits that an enterprise stands to gain include increased productivity, portability, flexibility, improved support, etc. As in all successful business undertakings, the realization of these and other benefits are close tied to proper project management.
• Increased productivity stems from the fact that all concerned employees will have universal access to corporate data. Workers who are in the field or in conferences or sales calls, can still access the enterprise network through wireless technology. The employees will now have more hours of access to data. This will have a direct impact not only on productivity but also on accuracy and efficacy of their reports/actions.
• Mobile access to data from almost any location. A traveling salesman can access the enterprise database at any time and be fully updated all the time. Mobile workers can also update the database. Decisions can be made fast and accurately on the basis of the up-to-date information.
• Increased access to customer’s own data is another major benefit. Mobile customers can access data concerning the status of their orders, etc, at any time. This enables the customer to make informed decisions and also benefits the business by reducing reliance on human resources for availing of such information.
• Round the clock data availability since employees can work from any off-office location and at any time. Data must be available and accessible throughout for employees, customers and suppliers. This has several hidden benefits, such as evenly distributing the loading of the network resources.
• Improved IT support arises from relatively easier setup and substantially reduced cabling in comparison to wired networks. Support personnel can access the network from any location, at any time, without being physically tied to a site. With proper network design and implementation certain enterprise remote sites may not need to provide office/workshop space for support staff. In addition the support service is not now subject to the delays associated with transport and movement delays.
Challenges of wireless communications in e-commerce The use of wireless technologies is also faced with a number of challenges, including bandwidth limitations and issues associated with espousing new technology, competing technologies, data security, user reluctance and shortage of qualified staff.
• Bandwidth in personal area networks of 2 Mbps, or 54 Mbps in WLANs can be a limitation for certain applications, compared to 100Mbps or 1 Gbps speeds in wired LANs. Considering that the wireless devices themselves are largely handheld with limited memory, the limitation may not be serious. The higher speeds of wired networks are usually shared, while for the wireless devices most of the communications are point-to-point.
• New technologies often face challenge of lack of maturity, so that implementers end up being used as test cases. The support from the vendor will also be limited and expensive down times may be experienced. The early adopters of new technology “face the problem of being the “bleeding edge" of the cutting edge technology" [3].
• Competing technologies that have no established agreed common standard, such as is the case with cellular telephony products. An enterprise may select a solution that may fade away when a standard emerges, and hence lose on the investement. This calls for choosing a technology that not only meets the current business objectives of the e-commerce but also protects against future obsolescence.
• Data security has been a major concern, arising from the fact wireless technologies rely on a broadcast air medium. This makes it relatively easy for an intruder to access the network and compromise data security. Most of the evolving standards and security mechanisms are able to address these concerns.
• Lack of qualified staff is a problem that must be addressed before implementing a wireless solution. Wireless technology requires staff with sound knowledge of wireless communication principles, in addition to the traditional wired networks.
• User resistance to change is a reality. Adapting to new wireless technology and procedures is often difficult and users must be adequately prepared for the change.
Implementing a wireless network infrastructure Once an enterprise has decided to integrate a wireless network with the existing or a new-wired network, the following steps will be essential. Some of the steps may be bypassed if they are already catered for in the enterprise project management procedures:
• Needs evaluation or assessment is always a necessary first step. This involves looking at the organization afresh as well as the current network, in the light of the project. All relevant information is gathered and project cost is determined. At this point, for instance, issues to do with network security and availability are addressed to the details that match the objectives of the enterprise. Information gathering may include sending out Request For Information (RFI) from prospective vendors. Many enterprises will calculate the Return On Investment (ROI) as the test for project viability.
• Once the need is identified and the ROI is positive, the next step is to develop a project plan. Developing a sensible and workable plan is a critical component of the whole process. All stake holders, particularly IT staff, must be involved to provide input to the plan. Users must also be involve to factor all the operational influences into the plan as well as to avoid future user resistance related problems. It is often necessary to involve the vendor and external consultants in evolving a workable plan.
• Request For Proposal (RFP) is the next step. It is amore detailed planning document that is sent out vendors with precise specifications for products and services. The RFP is a major contributor to the success of the effort and includes details such as statement of values, description of operations, current network and applications, timetable and milestones, etc. The response to the RFP should contain detailed information regarding what will be installed, timeliness and cost. This provides the basis of comparison among the various offers.
• A Limited trial should always follow once the appropriate vendor has been selected. This can be done through sample hardware and software from the vendor. The wireless technologies are tried through definite and carefully selected stages, which will test how the technology will perform under normal and unusual conditions. Security should be thoroughly tested to ensure there would be no known flaws and vulnerabilities as outlined in the RFP document. During the trial the users, support staff and management have the initial opportunity to see the technology in action.
• Training of users and support staff follows the trial period. Training serves to increase the effectiveness of new technology once installed. A good and effective training will ensure the enterprise will fully realize the claimed benefits of wireless technology in business.
• Rolling out to users should start towards the end of the training. Wireless technology is best implemented in phases, rather than in a bang. This helps IT staff and users get used to the system gradually and confidently. During the implementation, any further training need can be identified and addressed.
• Support and maintenance are a necessary continued follow-up for answering questions and assisting users. User support may involve suitable organizational approaches such as maintaining a support desk; creating formal user support groups; assigning the support function to the IT department, etc. much will depend on the enterprise set up and policies. The above steps are just indicators of what issues one need consider in implementing a wireless solution for e-commerce applications. Most of the steps follow along well known IT project management lines. There are details that are not included, such as the formation of a project team and the appointment of a project manager. Summary The paper has discussed various issues relating the use of wireless technologies in e-commerce environments. There are no special wireless technologies for e-commerce, but there are special requirements for e-commerce applications. The major requirements are security, availability and bandwidth. The paper has not addressed these requirements in detail. The major thrust has been to highlight the benefits, challenges and the implementation steps. If properly selected and implemented wireless communication presents businesses with several advantages associated with flexibility, increased productivity, etc., which can make the business competitive in terms of products and services. But there are also challenges to be contended with, including data security, bandwidth limitations, new technology teething problems, etc.
References
[1] Motorola White Paper (May 2006) “Building a Secure Foundation for Enterprise Mobility" available at http://www.motorola.com
[2] Arbaugh W.A, (2004) “Wired on wireless’ http://csdl2.computer.org/comp/mags/sp/2004/03/j3026.pdf
[3] Ciampa M. (2002) “Guide to Wireless Communications"
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