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Ubiquitous Computing and Its Effects on Small Businesses Serv Bus (2008) 2:347–358 DOI 10.1007/s11628-008-0048-0 ORIGINAL PAPER Ubiquitous computing and its effects on small businesses Sang M. Lee Æ Sang-hyun Park Æ Seong No Yoon Æ Taewon Hwang Received: 4 February 2008 / Accepted: 28 May 2008 / Published online: 31 July 2008 Ó Springer-Verlag 2008 Abstract Much of the previous literature on ubiquitous computing (UbiComp) has been limited to case studies, reporting innovative practices of specific technologies (e.g., RFID) and social issues. There is a general paucity of research on strategic application of UbiComp, especially to small businesses. To address this issue, this study provides a broad overview of the current practices of UbiComp in leading countries and presents possible future directions. Then, the effects of UbiComp on small businesses are discussed. Through a cross-national comparative analysis, we present four strategies to provide some guidance to the countries that are currently considering entering into the UbiComp race. Keywords Ubiquitous computing Á RFID Á Cross-national comparative analysis Á Small businesses S. M. Lee (&) Á T. Hwang College of Business Administration, University of Nebraska-Lincoln, Lincoln, NE 68588-0491, USA e-mail: [email protected] T. Hwang e-mail: [email protected] S.-h. Park National Information Society Agency, NIA Bldg, 77, Mugyo-dong, Jung-gu, Seoul 100-775, Korea e-mail: [email protected] S. N. Yoon College of Business Administration, Savannah State University, Savannah, GA 31404, USA e-mail: [email protected] 123 348 S. M. Lee et al. 1 Introduction Introduced by Mark Weiser more than a decade ago, ubiquitous computing (UbiComp) is a paradigm shift in information technology (IT) and a vision of the future information society where technology becomes virtually invisible in our lives. Based on networks with massive quantities of chip sensors that are interlinked through wireless connection and accessible using mobile devices from virtually anywhere and at any time, UbiComp is expected to bring major changes to our daily lives from e-commerce to ubiquitous lifestyles. Today, global competition is the catalyst for a rapid development of the ubiquitous technology. Advanced countries are striving to develop ubiquitous technology of their own and ultimately an intelligence-based society. The main reason for this trend appears to be the apparent economic benefits and opportunities created by new markets through UbiComp. This new trend in the IT area has stimulated many nations to prepare for a technological base for UbiComp and to establish national strategies. The most technologically advanced countries, particularly the U.S., Western European members of the E.U., and several developed countries in Asia, are leading the global phenomenon of UbiComp as they have in the information and communication technology (ICT) industry. These countries have pioneered the global standards and implemented a variety of policies related to UbiComp. They have exerted their efforts on establishing mid- and long-term strategies, development of core technologies, and commercialized products and services. Much of the previous UbiComp literature focuses on projecting its benefits in the future society, application design issue, new classes of future business, or on social issues (e.g., CACM 2002 December issue on ubiquitous computing). Radio frequency identification (RFID), one of the embedded technologies of UbiComp, enables new types of service. Creative applications of RFID can be found in a variety of areas: the EZ-Pass at the highway toll gates, the Delta Air Lines baggage tracking system, and so on (see CACM 2005 September issue on RFID). The potential wide application of UbiComp will involve some important issues, especially privacy and security (Gershman and Fano 2005). Many people are concerned about technologies that support ubiquitous society, such as RFID technology, as surveillance systems to monitor their behavior. Lack of trust caused by security and privacy problems is one of the most frequently cited reasons for people not to accept new technologies and ubiquitous commerce (Lee et al. 2007). Solutions for RFID-related privacy issues have been proposed by many researchers, including adoption of more secure techniques or guidelines. Thus, without resolving the privacy and security concerns, it might be difficult to realize the ubiquitous society. This paper presents the trends and application practices of UbiComp in some of the leading technology country. Then, the effects of UbiComp on small businesses are examined in leading countries. Strategies for UbiComp for the follower countries are also suggested. 123 Ubiquitous computing and its effects on small businesses 349 2 Ubiquitous computing practices in leading countries Here we provide a concise review of current practices of leading UbiComp countries, namely the U.S., the European Union, and some countries in Asia. We chose these three regions because not only were they the most technologically advanced countries which were pioneers in the adoption of the Internet, e-commerce, and advanced ICTs, but also they have been leading the way with the UbiComp initiatives. 2.1 The United States The total R&D investment in science and technology in the U.S. is the largest in the world and has brought immeasurable benefits to the economy, national security, and welfare over the past 50 years. The U.S. is leading the global standards of UbiComp under the government’s initiative, with an astronomical amount of R&D investment in the development of core technologies and business models. The core technologies developed include smart dust, RFID systems, and ubiquitous sensor networks. At the core of the practices of UbiComp in the US is a program supported by the federal government, the Networking and Information Technology Research and Development (NITRD) program. The NITRD program was instituted by the High-Performance Computing Act of 1991 and the Next Generation Internet Research Act of 1998. The NITRD program, as shown in Fig. 1, represents the coordinated efforts of fourteen federal agencies that support R&D in networking and information technology. The budget for NITRD has grown sixfold from $489 millions in 1991 to $2.97 billion in 2007. The 2008 budget is estimated to be over $3 billion (Networking et al. 2007). The Presidential IT Advisory Council recognizes NITRD as one of the exemplary programs by the federal government, as about 40% of the total number of patents issued in the U.S. in 2004 was attributed to the research output of NITRD. In addition, the U.S. has invested intensively in nanotechnology, which has been recognized as a core technology for implementing UbiComp. The budget for the National Nanotechnology Initiative has grown approximately three times from $464 million in 2001 to $1.35 billion in 2007, and the budget for 2008 is estimated to reach $1.45 billion (National Science and Technology Council 2007). 2.2 The European Union The informatization strategy of EU is divided into two sectors: policy and R&D. The two sectors function cooperatively, the policy sector providing directions for R&D and the R&D sector providing practical feedback to the policy sector (Europe’s Information Society 2007). EU’s vision of UbiComp-related policy centers on the concept known as Ambient Intelligence (AmI). EU believes AmI is the next generation informatiza- tion vision for making Europe a world-class information society that can serve as a test bed based on open software providing a user-friendly interface and network 123 350 S. M. Lee et al. Fig. 1 NITRD Program Coordination. Source: http://www.nitrd.gov/subcommittee/orgchart.html infrastructure (Information Society Technologies 2002). AmI has been broadly embedded in Information Society work programs and became the core concept in developing the Information Society Technologies sector of the 7th Framework Program (years of 2007–2011). EU has established numerous R&D sectors and projects that must now be executed in order to develop and implement the AmI vision. To answer how AmI should be implemented over the next 10 years, the Information Society Technol- ogies Advisory Group (ISTAG) studied and presented a new concept called the Ambient Intelligence Space. This refers to a space where technology, infrastructure, applications, and services are combined in order to deploy and manage a seamless environment in which AmI can be implemented (Information Society Technologies 2004). The ambient intelligence space concept has thus far been an abstract concept that can be utilized for building specific environments, and ISTAG has established a 3- layer model to further materialize the concept (See Fig. 2). The top layer represents societal and economic challenges while the base layer is for technological challenges, and the middle layer, or ambient intelligence space, fills the gap between the societal/economic challenges and the technological challenges. Thus, the ambient intelligence space is not simply composed of infrastructure, hardware platforms, services, and applications in a physical aspect, but also refers to a state wherein all those elements are combined into one. 123 Ubiquitous computing and its effects on small businesses 351 Fig. 2 The ambient intelligence space. Source: E.U. ISTAG Traditionally, Europe has had its own IT R&D culture and environment, different from the US. Europeans conceive new information technologies such as UbiComp from a more human-oriented perspective as a means of changing the way of life and ensuring an affluent lifestyle, rather than from a technical point of view. Accordingly, EU views AmI as a vision that addresses social needs of Europeans and the labor class. EU’s concept in approaching ubiquitous informatization clearly states its welfare-oriented ideology of providing user-friendly services (Information Society Technologies 2002). 2.3 Japan The Ministry of Internal Affairs and Communications of Japan launched the Ubiquitous Network Society Meeting in March 2004. The Economy and Finance Advisory Council proposed the u-Japan Vision in May 2004 to realize the ubiquitous network society.
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