368 IntJ Mobile Communications, Vol 2 No. 4. 2004 A framework for mobile business applications Lei-da chen*and ravi nath College of Business Administration, laha. Ne 68178. USA E-mail: lchen @creighton. edu E-mail: math@@creighton. ed Corresponding author Abstract: Many predict that mobile business(m-business) will revolutionise modern corporations as e-commerce did in the last decade. However, many resolved technical, application, and global issues relevant to m-business are preventing companies from adopting m-business as a prudent business model Furthermore little academic research in this area has been attempted to provide ictitioners with guidance to more effective utilisation of wireless technologies. To partially fill this void, this paper presents a framework for m-business applications that is designed to give managers a systematic approach to discovering m-business opportunities in their organisations Keywords: mobile business application; impact/value framework. Reference to this paper should be made as follows: Chen, L and Nath, R (2004)'A framework for mobile business applications,, Int. J. Mobile Communications, Vol 2, No 4, pp. 368-381 Biographical notes: Lei-Da Chen is an Assistant Professor of Information Systems and Technology in the College of Business Administration of Creighton University. Dr Chen holds an MBA from The University of Central Arkansas and a PhD in Management Information Systems from The University of Memphis. His research and consulting interests include electronic commerce, nobile e-commerce, Web-based systems development, data warehousing and ning, and diffusion of information technology in organisations. Dr. Chen has ublished over 40 professional papers in refereed journals and national and nternational conference proceedings. His research has appeared in Information management, Communications of AlS, Journal of Management Systems formation Systems Management, Logistics Information Management, Information Resources Management Journal, Journal of Computer Information Systems, Electronic Markets, and Journal of Education for MisS. Ravi Nath is the jack and Joan McGraw Endowed Professor of Information Technology Management, the founding Director of the Joe Ricketts Center in Electronic Commerce and Database Marketing. and Chairman of the Department of Information Systems and Technology in the College of Business Administration at Creighton University. In 2001, Dr. Nath was named Technology Professor of the Year'in the state of Nebraska by the Applied Information Management(AIM)Institute. He has published over 80 research apers in the area of Electronic Commerce and Information Systems in various State University and a PhD from Texas Tech Universil ducts research ational and international publications. Dr. Nath teaches and cor in Information Systems, Electronic Commerce, and Data Mining. He is Frequent Speaker at local and national business events. the boards of several organisations. He holds a master opyright o 2004 Inderscience Enterprises Ltd
368 Int. J. Mobile Communications, Vol. 2, No. 4, 2004 Copyright © 2004 Inderscience Enterprises Ltd. A framework for mobile business applications Lei-da Chen* and Ravi Nath College of Business Administration, Creighton University, Omaha, NE 68178, USA E-mail: lchen@creighton.edu E-mail: rnath@creighton.edu *Corresponding author Abstract: Many predict that mobile business (m-business) will revolutionise modern corporations as e-commerce did in the last decade. However, many unresolved technical, application, and global issues relevant to m-business are preventing companies from adopting m-business as a prudent business model. Furthermore, little academic research in this area has been attempted to provide practitioners with guidance to more effective utilisation of wireless technologies. To partially fill this void, this paper presents a framework for m-business applications that is designed to give managers a systematic approach to discovering m-business opportunities in their organisations. Keywords: mobile business application; impact/value framework. Reference to this paper should be made as follows: Chen, L. and Nath, R. (2004) ‘A framework for mobile business applications’, Int. J. Mobile Communications, Vol. 2, No. 4, pp.368–381. Biographical notes: Lei-Da Chen is an Assistant Professor of Information Systems and Technology in the College of Business Administration of Creighton University. Dr. Chen holds an MBA from The University of Central Arkansas and a PhD in Management Information Systems from The University of Memphis. His research and consulting interests include electronic commerce, mobile e-commerce, Web-based systems development, data warehousing and mining, and diffusion of information technology in organisations. Dr. Chen has published over 40 professional papers in refereed journals and national and international conference proceedings. His research has appeared in Information & Management, Communications of AIS, Journal of Management Systems, Information Systems Management, Logistics Information Management, Information Resources Management Journal, Journal of Computer Information Systems, Electronic Markets, and Journal of Education for MIS. Ravi Nath is the Jack and Joan McGraw Endowed Professor of Information Technology Management, the founding Director of the Joe Ricketts Center in Electronic Commerce and Database Marketing, and Chairman of the Department of Information Systems and Technology in the College of Business Administration at Creighton University. In 2001, Dr. Nath was named ‘Technology Professor of the Year’ in the state of Nebraska by the Applied Information Management (AIM) Institute. He has published over 80 research papers in the area of Electronic Commerce and Information Systems in various national and international publications. Dr. Nath teaches and conducts research in Information Systems, Electronic Commerce, and Data Mining. He is a Frequent Speaker at local and national business events. Dr. Nath also serves on the boards of several organisations. He holds a Masters degree from Wichita State University and a PhD from Texas Tech University
A framework for mobile business applications 1 Introduction Agility is the key to success in a competitive business environment and an agile organisation needs the capability to deliver vital business information from any where and at anytime to its constituents. It is this imperative that is prompting many organisations to implement mobile systems in support of mission critical activities and processes. Additional drivers for the acceptance of wireless technology-based systems by firms include the proliferation of handheld wireless devices, advances in wireless communication technologies, and the integration of web-based systems with back-end legacy systems. In the popular press, wireless systems that support business functions are referred to as mobile business(m-business)or m-commerce. Leung and Antypas [1] define m-business as"content delivery (notification and reporting)and transaction (purchasing and data entry)on mobile devices wor Organisations that have successfully implemented m-business applications for their kforce have demonstrated that these applications contribute to the organisations operational efficiency and productivity. According to Glass [2 the wireless business "removes costly and time-intensive delays from traditional business processe For example, by using a new kitchen control system operating on Palm devices in its 500 company-owned restaurants, Burger King restaurants reduced the time it took a manager to program product-holding cabinets from 30 minutes to 4-5 seconds. Such a dramatic reduction in a delay in the business process allowed Burger King restaurants to efficiently adjust kitchen operations and equipment for new advertising campaigns [3]. In another example, John Hopkins Hospital is achieving a saving of $1,000 a day per pharmacist by delivering timely information to the pharmacists'handheld devices [4] European and Asian countries have lead many developments in m-business. Notable among these countries are Finland, UK, Japan, and South Korea [5]. However, the USA is not too far behind in exploiting the potential of wireless technologies to enhance the efficiency of information distribution and increase channels of interaction with customers, employees, and business partners. It is predicted that m-business will grow to S200 billion worldwide by 2004 and the number of US m-business users will grow to :9 million [6]. As elucidated above, the factors driving the m-business include the followins Mobile devices such as internet-enabled mobile phones and personal digital assistants(PDAs)are gaining popularity among business users and consumers. The growing number of travelling employees who demand access to critical business information from anywhere at any time. The old ways of communication are no longer suitable for today's fast-paced business environment. M-business offers businesses new ways to improve operational efficiency. Both corporate and individual customers are demanding more channels for interaction and services. M-business can offer convenient immediate and personalised services to these customers. The wireless infrastructure and support are constantly being upgraded by vendors in order to provide seamless and affordable access
A framework for mobile business applications 369 1 Introduction Agility is the key to success in a competitive business environment and an agile organisation needs the capability to deliver vital business information from anywhere and at anytime to its constituents. It is this imperative that is prompting many organisations to implement mobile systems in support of mission critical activities and processes. Additional drivers for the acceptance of wireless technology-based systems by firms include the proliferation of handheld wireless devices, advances in wireless communication technologies, and the integration of web-based systems with back-end legacy systems. In the popular press, wireless systems that support business functions are referred to as mobile business (m-business) or m-commerce. Leung and Antypas [1] define m-business as “content delivery (notification and reporting) and transactions (purchasing and data entry) on mobile devices”. Organisations that have successfully implemented m-business applications for their workforce have demonstrated that these applications contribute to the organisations’ operational efficiency and productivity. According to Glass [2], the wireless business “removes costly and time-intensive delays from traditional business processes”. For example, by using a new kitchen control system operating on Palm devices in its 500 company-owned restaurants, Burger King restaurants reduced the time it took a manager to program product-holding cabinets from 30 minutes to 4–5 seconds. Such a dramatic reduction in a delay in the business process allowed Burger King restaurants to efficiently adjust kitchen operations and equipment for new advertising campaigns [3]. In another example, John Hopkins Hospital is achieving a saving of $1,000 a day per pharmacist by delivering timely information to the pharmacists’ handheld devices [4]. European and Asian countries have lead many developments in m-business. Notable among these countries are Finland, UK, Japan, and South Korea [5]. However, the USA is not too far behind in exploiting the potential of wireless technologies to enhance the efficiency of information distribution and increase channels of interaction with customers, employees, and business partners. It is predicted that m-business will grow to $200 billion worldwide by 2004 and the number of US m-business users will grow to 29 million [6]. As elucidated above, the factors driving the m-business include the following: • Mobile devices such as internet-enabled mobile phones and personal digital assistants (PDAs) are gaining popularity among business users and consumers. • The growing number of travelling employees who demand access to critical business information from anywhere at any time. The old ways of communication are no longer suitable for today’s fast-paced business environment. M-business offers businesses new ways to improve operational efficiency. • Both corporate and individual customers are demanding more channels for interaction and services. M-business can offer convenient, immediate, and personalised services to these customers. • The wireless infrastructure and support are constantly being upgraded by vendors in order to provide seamless and affordable access
370 L Chen and R Nath The marketplace offers a wide range of mobile devices, and these allow users access to a myriad of wireless services and applications. Leung and Antypas [l] identify five categories of wireless device: two-way pagers and short message systems (SMS), wireless application protocol (WAP)-equipped cellular phones, PDA with wireless modems, wireless internet access on laptop computers, and in-premise IEEE 802.11(a/b) wireless network devices. However, a number of industry-specific wireless devices do not fall into any of these five categories. For example, transportation companies such as FedEx have relied on handheld computers ranging from handheld scanners to global positioning systems (GPS) systems for data collection and communication for Business and individuals deploy a number of wireless network solutions, including wireless personal area networks(WPANS), wireless local area networks (WLANS), and wireless wide area networks (WWANS). with a wide range of mobile devices and multiple technical platforms coexisting, it is important to put all these in perspectives Table 1 summarises these different types of wireless networks and their attendant technologies. Within personal areas(e. g, an office), one of the most promising wireless technologies is Bluetooth. Bluetooth is a global standard for wireless connectivity that is being fast adopted by many device manufacturers. The technology has the potential to replace cables that connect digital devices and offer users a higher level of freedom within users' personal areas. Its relatively high data transfer speed and extremely low power consumption have made it an ideal technology to be deployed in many Table 1 Wireless networks and their attendant technologies WPANS WLANS Spread spectrum technology (802.11b), Orthogonal Frequency Division Multiplexing(802.1la), infrared, and narrowband technology WWANs Analogue cellular networks, digital cellular systems and PCs, Cellular Digital Packet Data( CDPD), Code Division Multiple Access(CDMA), Time Division Multiple Access(TDMA), Global System for Mobile Communications(GSM), General Packet Radio Service(GPRS) CDMA2001x. W-CDMA and satellites Analogous to a traditional wired local area network (LAN), many organisations have adopted the IEEE802. 1lb technology to provide wireless access to users within a local geographical area(e.g, a building, campus, airport, coffee shop, or hotel). According to a recent study, the market penetration of WLANs in the USa has reached 10%, and users have credited WLANS with attainment of convenience, flexibility, mobility, time saving, and productivity gains [8]. While IEEE802. 1lb technology is the most popular WLAN solution among US businesses today, new technologies(e.g IEEE802. 1la)are promising higher data speeds and more security in the near future. WWaNs allow users to communicate and access resources within a wide geographical area such as a city, a region, or the entire country. Due to its wide coverage and the unprecedented freedom for its users, a WwAN allows maximum flexibility However, in the absence of new generation cellular networks(2.5G or 3G), low data transfer rates are an impediment for certain business applications. Nevertheless
370 L. Chen and R. Nath The marketplace offers a wide range of mobile devices, and these allow users access to a myriad of wireless services and applications. Leung and Antypas [1] identify five categories of wireless device: two-way pagers and short message systems (SMS), wireless application protocol (WAP)-equipped cellular phones, PDA with wireless modems, wireless internet access on laptop computers, and in-premise IEEE 802.11(a/b) wireless network devices. However, a number of industry-specific wireless devices do not fall into any of these five categories. For example, transportation companies such as FedEx have relied on handheld computers ranging from handheld scanners to global positioning systems (GPS) systems for data collection and communication for years [7]. Business and individuals deploy a number of wireless network solutions, including wireless personal area networks (WPANs), wireless local area networks (WLANs), and wireless wide area networks (WWANs). With a wide range of mobile devices and multiple technical platforms coexisting, it is important to put all these in perspectives. Table 1 summarises these different types of wireless networks and their attendant technologies. Within personal areas (e.g., an office), one of the most promising wireless technologies is Bluetooth. Bluetooth is a global standard for wireless connectivity that is being fast adopted by many device manufacturers. The technology has the potential to replace cables that connect digital devices and offer users a higher level of freedom within users’ personal areas. Its relatively high data transfer speed and extremely low power consumption have made it an ideal technology to be deployed in many environments. Table 1 Wireless networks and their attendant technologies Wireless networks Attendant technologies WPANs Line-of-sight infrared, radio frequency (RF), and Bluetooth WLANs Spread spectrum technology (802.11b), Orthogonal Frequency Division Multiplexing (802.11a), infrared, and narrowband technology WWANs Analogue cellular networks, digital cellular systems and PCS, Cellular Digital Packet Data (CDPD), Code Division Multiple Access (CDMA), Time Division Multiple Access (TDMA), Global System for Mobile Communications (GSM), General Packet Radio Service (GPRS), CDMA2001x, W-CDMA, and satellites Analogous to a traditional wired local area network (LAN), many organisations have adopted the IEEE802.11b technology to provide wireless access to users within a local geographical area (e.g., a building, campus, airport, coffee shop, or hotel). According to a recent study, the market penetration of WLANs in the USA has reached 10%, and users have credited WLANs with attainment of convenience, flexibility, mobility, time saving, and productivity gains [8]. While IEEE802.11b technology is the most popular WLAN solution among US businesses today, new technologies (e.g. IEEE802.11a) are promising higher data speeds and more security in the near future. WWANs allow users to communicate and access resources within a wide geographical area such as a city, a region, or the entire country. Due to its wide coverage and the unprecedented freedom for its users, a WWAN allows maximum flexibility. However, in the absence of new generation cellular networks (2.5G or 3G), low data transfer rates are an impediment for certain business applications. Nevertheless
A framework for mobile business applications innovative wireless business systems utilising existing cellular and satellite networks are capable of providing value in areas such as wireless banking, wireless stock trading, remote monitoring and location-based wireless services In spite of its potential, the growth of m-business has been slower than anticipated [6,9]. Factors that have attributed to this slow growth include the immaturity of the wireless technology, the existence of a chaotic array of competing technologies and standards, and the lack of killer wireless applications [10]. To better illustrate these obstacles, Tarasewich et al. [5 identified three dimensions of m-business issues technical, application, and global issues Mobile e-commerce technical issues include the questions relevant to mobile devices and infrastructure that must be answered. For m-business to grow, problems such as the device limitations, user interfaces with low usability, lack of technical standardisation, and high initial cost of wireless infrastructure must be resolved. The m-business field is governed by a chaotic array of platforms, devices, and standards. Each device class differs from other classes in terms of screen resolution and button function tremendously [11]. Developing business applications for such a diverse group of client devices proves to be extremely difficult. Furthermore, the small screens of mobile devices and their limited input capabilities have created many design challenges. Mobile devices have been tremendously miniaturised in the last few years. This phenomenon has resulted in many mobile devices with screens that are often too small to display any meaningful data. The limited keypad of mobile phones has also made m-business applications clumsy and hard to use. In addition, the low bandwidth and unreliability of wireless data services have also limited the growth of m-business. Hence, wireles devices are often only useful in bandwidth-limited applications such as text messaging and stock quotes [5] Mobile e-commerce application issues deal with the challenges faced by busine managers and technical developers when developing m-business applications. Among the application-related issues, the most daunting challenges are identifying killer applications, maintaining data integrity, ensuring data security, and attending to legal and privacy issues. While most of the internet security threats and privacy issues pervade m-business applications, m-business applications introduce new risks due to the mobility and communication medium [12]. These risks are severely dampening the speed of businessand consumers'adoption of m-business as a mainstream business practice The last category, mobile e-commerce global issues, raises the question of what impact social, legal, and cultural characteristics of different nations will have on the globalisation of m-business. Issues such as the lack of global standards, the disparity in wireless technology adoption, and global access-pricing variations must be addressed Many of these three categories of issues still remain unresolved today for businesses to seize the potential opportunities in m-business; therefore, currently it is still difficult to predict consumers' and businesses'acceptance of this new means of communication and Given the nascent nature of m-business and the existence of a plethora of competing and emerging wireless technologies, there is little understanding of how, when, where, and why m-business can add value. Therefore, it is critical for business managers to understand the fundamental value that can be derived from m-business. This in turn enables managers to identify areas and applications within their firms that are candidates for m-business. Given the paucity of research in this area, this paper proposes a generic framework for studying and developing m-business applications. The proposed
A framework for mobile business applications 371 innovative wireless business systems utilising existing cellular and satellite networks are capable of providing value in areas such as wireless banking, wireless stock trading, remote monitoring, and location-based wireless services. In spite of its potential, the growth of m-business has been slower than anticipated [6,9]. Factors that have attributed to this slow growth include the immaturity of the wireless technology, the existence of a chaotic array of competing technologies and standards, and the lack of killer wireless applications [10]. To better illustrate these obstacles, Tarasewich et al. [5] identified three dimensions of m-business issues: technical, application, and global issues. Mobile e-commerce technical issues include the questions relevant to mobile devices and infrastructure that must be answered. For m-business to grow, problems such as the device limitations, user interfaces with low usability, lack of technical standardisation, and high initial cost of wireless infrastructure must be resolved. The m-business field is governed by a chaotic array of platforms, devices, and standards. Each device class differs from other classes in terms of screen resolution and button functions tremendously [11]. Developing business applications for such a diverse group of client devices proves to be extremely difficult. Furthermore, the small screens of mobile devices and their limited input capabilities have created many design challenges. Mobile devices have been tremendously miniaturised in the last few years. This phenomenon has resulted in many mobile devices with screens that are often too small to display any meaningful data. The limited keypad of mobile phones has also made m-business applications clumsy and hard to use. In addition, the low bandwidth and unreliability of wireless data services have also limited the growth of m-business. Hence, wireless devices are often only useful in bandwidth-limited applications such as text messaging and stock quotes [5]. Mobile e-commerce application issues deal with the challenges faced by business managers and technical developers when developing m-business applications. Among the application-related issues, the most daunting challenges are identifying killer applications, maintaining data integrity, ensuring data security, and attending to legal and privacy issues. While most of the internet security threats and privacy issues pervade m-business applications, m-business applications introduce new risks due to the mobility and communication medium [12]. These risks are severely dampening the speed of business’ and consumers’ adoption of m-business as a mainstream business practice. The last category, mobile e-commerce global issues, raises the question of what impact social, legal, and cultural characteristics of different nations will have on the globalisation of m-business. Issues such as the lack of global standards, the disparity in wireless technology adoption, and global access-pricing variations must be addressed. Many of these three categories of issues still remain unresolved today for businesses to seize the potential opportunities in m-business; therefore, currently it is still difficult to predict consumers’ and businesses’ acceptance of this new means of communication and business transaction. Given the nascent nature of m-business and the existence of a plethora of competing and emerging wireless technologies, there is little understanding of how, when, where, and why m-business can add value. Therefore, it is critical for business managers to understand the fundamental value that can be derived from m-business. This in turn enables managers to identify areas and applications within their firms that are candidates for m-business. Given the paucity of research in this area, this paper proposes a generic framework for studying and developing m-business applications. The proposed
372 L Chen and R Nath framework can guide a researcher in future research and provide practitioners with a systematic approach to identifying m-business opportunities in their industries 2 A framework for m-business applications At this infant stage of m-business, the lack of academic research and industry experience have left many practitioners in the dark when trying to identify m-business opportunities that will contribute to the business value in their organisations. Only a paucity of literature provide useful frameworks to assist businesses understand m-busines opportunities(e. g. [13, 14)), and no published study has offered any application-oriented framework. To partially fill this void, we present a framework for m-business applications. Besides the theoretical contribution, another purpose of this framework is to provide managers with a systematic approach to identifying m-business opportunities in their organisations. The framework consists of two components. In the first part, the value proposition of m-business applications is examined, and the business processes where m-business applications will bring the most value are identified. The second part of the framework is a technology-independent and application-oriented framework that will help managers device m-business applications that will meet the organisation,'s goals and objectives. The two components of the framework are discussed in the forthcoming ections. 2.1 Part 1: value proposition of m-business applications As a starting point of their pursuit, business managers must understand how m-business applications will contribute to the success of the company. The business value of m-business lies in its ability to provide users with time-sensitive data and the ability to transact from anywhere at any time. Therefore, it can be argued that the value of m-business is a function of the time-sensitivity of the data or transaction and the mobility information user. The value of m-business increases with increases in user mobility me-sensitivity of the required data or transaction. At one extreme, we have a travelling stock broker whose ability to have access to the most up-to-date stock quotes and market news at all times is essential to his or her effectiveness in the job. Stock quotes and news are highly time-sensitive as they are updated virtually every second As the stockbroker travels from place to place, being able to use one or more mobile devices to access the latest market information and to execute transactions is highly valuable. At the other extreme. in a situation where the information has little or no time-sensitivity(e.g. historical or periodical reports)or where decisions do not need to be made in real-time or where the user is mostly stationary, the value of wirelessly enabling such applications becomes minimal. Information can be delivered to the user using such as paper reports, newsletters, or electronic workstation. The value of m-business applications can be demonstrated using the diagram in Fl
372 L. Chen and R. Nath framework can guide a researcher in future research and provide practitioners with a systematic approach to identifying m-business opportunities in their industries. 2 A framework for m-business applications At this infant stage of m-business, the lack of academic research and industry experience have left many practitioners in the dark when trying to identify m-business opportunities that will contribute to the business value in their organisations. Only a paucity of literature provide useful frameworks to assist businesses understand m-business opportunities (e.g. [13,14]), and no published study has offered any application-oriented framework. To partially fill this void, we present a framework for m-business applications. Besides the theoretical contribution, another purpose of this framework is to provide managers with a systematic approach to identifying m-business opportunities in their organisations. The framework consists of two components. In the first part, the value proposition of m-business applications is examined, and the business processes where m-business applications will bring the most value are identified. The second part of the framework is a technology-independent and application-oriented framework that will help managers device m-business applications that will meet the organisation’s goals and objectives. The two components of the framework are discussed in the forthcoming sections. 2.1 Part I: value proposition of m-business applications As a starting point of their pursuit, business managers must understand how m-business applications will contribute to the success of the company. The business value of m-business lies in its ability to provide users with time-sensitive data and the ability to transact from anywhere at any time. Therefore, it can be argued that the value of m-business is a function of the time-sensitivity of the data or transaction and the mobility of the information user. The value of m-business increases with increases in user mobility and time-sensitivity of the required data or transaction. At one extreme, we have a travelling stock broker whose ability to have access to the most up-to-date stock quotes and market news at all times is essential to his or her effectiveness in the job. Stock quotes and news are highly time-sensitive as they are updated virtually every second. As the stockbroker travels from place to place, being able to use one or more mobile devices to access the latest market information and to execute transactions is highly valuable. At the other extreme, in a situation where the information has little or no time-sensitivity (e.g. historical or periodical reports) or where decisions do not need to be made in real-time or where the user is mostly stationary, the value of wirelessly enabling such applications becomes minimal. Information can be delivered to the user using traditional channels such as paper reports, newsletters, or electronically to the user’s PC workstation. The value of m-business applications can be demonstrated using the diagram in Figure 1