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U-Commerce Is Here, Are We Ready? Proceedings of the 20th Central European Conference on Information and Intelligent Systems 97 U-commerce Is Here, Are We Ready? Damir Novotny a, Zvonimir Sabati b, Renata Mekovec b a T&MC Group, Technology & Management Consultants, Grada Vukovara 284/D, Zagreb, Croatia [email protected] b Faculty of Organization and Informatics University of Zagreb Pavlinska 2, 42000 Varaždin, Croatia {zvonimir.sabati, renata.hudek}@foi.hr Abstract . Ubiquitous networks which can be environment which is pervasive, could be customized accessed at any time form any place and using a to individual’s needs and response to his needs [13]. range of devices are base of new kind of commerce. In that respect various versions of u-commerce Commerce that offers unique and personalized systems have been developed which have been service to every customer individually using experimentally implemented in homes, hospitals and ubiquitous networks is called u-commerce. U- public sector facilities. However it has been commerce is abbreviation that stands for ubiquitous recognized that development and implementation of commerce, also called ubicomp or ultimate commerce the systems which will indeed “understand” an or pervasive computing. U-commerce is combination individual’s behavior, moods and intentions is hard of e-commerce, m-commerce, television, voice and [12]. There are a number of u-commerce systems, silent commerce. It can be seen as extension of most of them are not applicable in real life but are current types of commerce, but not as their rather implemented in a laboratory environment. replacement. Main u-commerce characteristics are U-commerce systems are based on delivering described using the four u-constructs: ubiquity, personalized service to their customers. Delivering of universality, uniqueness, and unison. Although u- personalized, improved and differentiated service commerce brings many benefits the principal obstacle depends on detecting customer’s characteristics and to u-commerce development and adoption are preferences. In u-commerce environment obtaining customer concerns for their privacy protection. customer’s personal information that are stored on his mobile device, (e.g. PDA or cell phone) becomes Keywords. U-commerce, ubicomp, privacy concerns, easier. However, growing capability of collecting, personalizatized service, personalization-privacy storing and using personal information raises paradox customer’s privacy concerns. The customer is facing with the personalization-privacy dilemma. In order to perform interaction successfully customer must 1 Introduction provide some personal information, but in doing so he is at risk that disclosed information will be used for A number of authors in order to explain what u- another purposes beyond his knowledge. commerce stands for are quoting Mark Weiser’s Privacy is not a now problem but u-commerce article “The computer for 21 st century” [4], [9], [12], introduces new privacy issue: timely and accurate [13]. It is commonly acknowledged that Weiser [17] location data can be collected about u-commerce established foundation of u-commerce development customers. Apart of social, economic or legal issue describing how is Mrs. Sal spending her day at work that are connected to u-commerce development and and at home. Weiser has predicted two decades ago adoption, customer’s privacy concerns are identified that computers and new technologies will be part in as the major obstacle. all segments of our lives. U-commerce goal is to The remaining of this paper is organized as make individual’s life simplified by using digital follows. Section 2 presents definition and components Varaˇzdin, Croatia Faculty of Organization and Informatics September23-252009 Proceedings of the 20th Central European Conference on Information and Intelligent Systems 98 of u-commerce. In Section 3 u-commerce with software applications. Increase in types of characteristics are described, and Section 4 is focused devices opens new challenge because every new on personalization-privacy paradox. Conclusion is device type asks for new application given in Section 5. development. 3. Integration – integration of communication 2 U-commerce devices in unique platform will be very complex. Servers are challenged to support thousands of clients; increasing number of new devices At the beginning of this chapter u-commerce will be connected to the server will rapidly exhaust defined. U-commerce will be described through its server’s capacity. A solution could be clustering major components. of servers. Integration of devices various types on unique platform affects reliability and quality 2.1 U-commerce definition of service, invisibility and security of the whole network. 4. Invisibility – human intervention on invisible U-commerce stand for world in which customer (user) systems is needed only in the case if predictable can approach to any network from any place and in reaction of managed environment is not any time by using various technology devices in order achieved. Human interventions can be reduced to get unique and personalized service [16]. with continues environment learning cycle in a U-commerce could be defined as usage of way that automatic adjustment is achieved ubiquitous networks in order to achieve personalized without abortion of user’s focus. and continues communication between companies and 5. Perception: context-awareness – u-commerce their clients. This approach is creating added value to includes also devices which are aware of the traditional business transactions [15]. context. Perception or context-awareness Technology is the enabler for u-commerce, it involves issues such as location perception, relates physical and digital world. Every real life uncertain modeling, data processing in real time object has its representation in digital world [6]. U- and integration of data which entered by commerce could be described as combination of e- multiple touch-points. commerce, wireless business, e-business through 6. Smartness: context management – since a iDTV channel (inter-active digital television channel), system can be aware of current context, it has to and voice telephony business ( voice commerce ) and be able to use the perception efficiently. so called silent commerce. This combination enables Smartness includes accurate data processing interaction and transaction anywhere and everywhere enabled either with intelligent control system or without online connection [2]. Watson and Junglas interaction between devices and users. [16] are arguing that u-commerce is opening new era in e-business, starting with e-commerce and continuing with m-commerce. Like m-commerce 2.2 Components of u –commerce didn’t replace e-commerce (e-business), u-commerce will not replace m-commerce. E-commerce and m-commerce enabling technologies U-commerce is faced with several challenges [13]: integration we are defining as u-commerce. However 1. Scalability – further development in u-commerce beside known technologies, u-commerce is including will include more and more customers (users), new ones which are in development phase. applications, hardware devices and interaction According to some authors u-commerce is integrating between them. For any increase in number of five types of business models [2]: users and devices, further development in 1. Traditional e-commerce – usage of Internet for applications will be needed. If it would be both communication and business transactions; possible that basic application logics and 2. Wireless commerce – usage of mobile and wireless standard architecture could be achieved, devices for both communication and business scalability issue would be solved. Applications transactions; are usually installed and distributed with 3. Voice commerce – usage of voice digitalization communication devices. Each device such as voice recognition, voice identification and manufacturer is developing own applications, voice-to-speech (voice-to-text) transmission; therefore standardization would be a goal in the 4. Television commerce – usage of iDTV; future. Increase in number of communication 5. Silent commerce – radio frequency identificator - devices worldwide makes installation and RFID usage in order to achieve intelligent and implementation of specific applicable software interactive communication between users. impossible. Rogers [12] is arguing that within u-commerce 2. Heterogeneity – if standard and compatible u- could be identified following research fields: context- commerce environment would not be achieved, aware computing, ambient and ubiquitous heterogeneity becomes an issue. However intelligence, recording/tracking and monitoring. heterogeneity issue becomes a huge problem Context aware computing includes individual’s Varaˇzdin, Croatia Faculty of Organization and Informatics September23-252009 Proceedings of the 20th Central European Conference on Information and Intelligent Systems 99 movement or action or location identification in order Uniqueness is standing for unique, personalized to collect information which can be used in further approach in delivery of goods and services from processing. This is including RFID technologies, business to customers. Customer will get all needed satellite and GPS technologies. Ambient and information depending on time, location and current ubiquitous intelligence is based on knowledge and role (parent, tourist, and employee) as well as all research achievements in the field of artificial benefits/special requirements which he has specified
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