BY BHARAT RAO AND LOUIS MINAKAKis evoLution of mobile Location-based services UTILIZING USER LOCATION AS A MOBILE COMMERCE IS KEY DETERMINANT OF INFORMATION POISED TO MAKE A QUALI REQUIREMENT NEEDS TATIVE LEAP. KNOWL- EDGE OF THE END USER S LOCATION WILL BE USED TO DELIVER RELEVANT TIMELY AND ENGAGING CON- TENT AND INFORMATION. FOR MOBILE NETWORK OPERA TORS LOCATION-BASED SERVICES REPRESENT AN ADDITIONAL STREAM OF REVENUE THAT CAN BE GENER ATED FROM THEIR INVESTMENTS IN FIXED INFRASTRUC TURE. FOR THE END USER THESE SERVICES CAN HELP REDUCE CONFUSION. IMPROVE THE CONSUMPTION EXPE RIENCE, AND DELIVER HIGH-QUALITY SERVICE OPTIONS With the proliferation and out of new technologies integrated into spread adoption of mobile telephony lightweight mobile devices and termi and data, service providers have nals, pinpointing location is quickly eager to exploit customer information becoming an exact science. Carriers are they have acquired over time. User being forced by regulators to accurately location has traditionally been difficult position wireless emergency calls to pinpoint and use due to its inherent through E911 in the U.S., and E112 dynamism and unpredictability-the in the EU [3]. Agile technologies like customer's location in physical space. GPS, mobile cell phone identification With regulatory pressures and the roll- techniques, and network triangulation COMMUNICATIONS OF THE ACM December 2003/Vol 46. No 12 6I
COMMUNICATIONS OF THE ACM December 2003/Vol. 46, No. 12 61 Mobile commerce is poised to make a qualitative leap. Knowledge of the end user’s location will be used to deliver relevant, timely, and engaging content and information. For mobile network operators, location-based services represent an additional stream of revenue that can be generated from their investments in fixed infrastructure. For the end user, these services can help reduce confusion, improve the consumption experience, and deliver high-quality service options. With the proliferation and widespread adoption of mobile telephony and data, service providers have been eager to exploit customer information they have acquired over time. User location has traditionally been difficult to pinpoint and use due to its inherent dynamism and unpredictability—the customer’s location in physical space. With regulatory pressures and the rollout of new technologies integrated into lightweight mobile devices and terminals, pinpointing location is quickly becoming an exact science. Carriers are being forced by regulators to accurately position wireless emergency calls, through E911 in the U.S., and E112 in the EU [3]. Agile technologies like GPS, mobile cell phone identification techniques, and network triangulation UTILIZING USER LOCATION AS A KEY DETERMINANT OF INFORMATION REQUIREMENT NEEDS. EVOLUTION of Mobile Location-based Services BY BHARAT RAO AND LOUIS MINAKAKIS
A KEY driver of lBs will be a degree of fi between the syetem technical feasibility and the overall marketing trategy uiding itd lldage low carriers to zoom in further on customer activity accuracy in targeting a user's location. A number of in a narrowly defined physical location. As these capa- geo-location technologies promise an accurate pin- bilities become more accessible, accurate and pointing of an object or persons position on earth real-time, various service oppor- tunities have been conceptual ized. These location-based Type Methodology Pros Industry Applications ervices (henceforth referred to as cell Identifier Base station uses Relatively Hard to pin down Wireless network uency LBS) have therefore emerged as als to track mobile device n important component of m commerce strategy. The LBS sub- scriber base is forecast to reach rangeUser device real estate, security. in direct line of sight police force(not 680 million customers globally by successful in consumer evice needs special 2006 1. Predictions are that LBS will generate over $32 billion Assisted Enhancement No"cold s n Europe by 2005 [9]. Numer- Positioning ous firms have already emerged to aspes) uccessful in consumer tap into this growing opportunity. Platforms, Technologies, Relies on low- Complex to maintain Military applications. Standards Network architectures to user devi a global a key driver of LBS will be a network settings) degree of fit between the systems technical feasibility and the overall marketing strategy [12]. Three strategic consid- platform s fo 1. Mobile network forms(including PDAs and mobile phones)need to while choosing and deploying be connected and integrated with the wireless network these technologies. These include the range of cover- infrastructure, ranging from different types of servers age and scalability of applications; the degree of service to back-end databases. LBS Providers will need to quality that can be established and maintained at a rea- focus on blending software, hardware, and sonable cost; and the careful alignment of the overall connectivity into a plan for serving LBS technology costs with the types of services customers Designing low-cost, reliable, and high-quality systems will pay for from a complex puzzle of disparate software, hard- Demand Drivers. The emergence of broadband ware,and connectivity components presents a chal- wireless infrastructure, through third-generation(3G) lenge. However, success in this area will accelerate wireless connectivity and wireless LANs (wi-Fi), has networking effects that lead to widespread adoption, broadened aspirations for delivering multiple types of an increase in the customer base, and lower operating mobile services. Devices have evolved from simple costs Ik-based services(first-gen herat on mobile phones)to Mobile Network Platforms. Several options are incorporate functions like downloading music and available with current mobile network platforms for ring tones, multimedia messaging, and video calls delivering LBS; these competing technologies and Public Wi-Fi networks are beginning to provide loca- techniques are briefly reviewed in Table 1. The central tion-based information and services to targeted audi- element in the network design focuses on the degree of ences. With the evolution of voice over WLAN December 2003/Vol 46, No 12 COMMUNICATIONS OF THE ACM
62 December 2003/Vol. 46, No. 12 COMMUNICATIONS OF THE ACM allow carriers to zoom in further on customer activity in a narrowly defined physical location. As these capabilities become more accessible, accurate and real-time, various service opportunities have been conceptualized. These location-based services (henceforth referred to as LBS) have therefore emerged as an important component of mcommerce strategy. The LBS subscriber base is forecast to reach 680 million customers globally by 2006 [1]. Predictions are that LBS will generate over $32 billion in Europe by 2005 [9]. Numerous firms have already emerged to tap into this growing opportunity. Platforms, Technologies, Standards A key driver of LBS will be a degree of fit between the system’s technical feasibility and the overall marketing strategy guiding its usage [2]. Several technologies and platforms (including PDAs and mobile phones) need to be connected and integrated with the wireless network infrastructure, ranging from different types of servers to back-end databases. LBS providers will need to focus on blending software, hardware, and wireless connectivity into a plan for serving LBS content. Designing low-cost, reliable, and high-quality systems from a complex puzzle of disparate software, hardware, and connectivity components presents a challenge. However, success in this area will accelerate networking effects that lead to widespread adoption, an increase in the customer base, and lower operating costs. Mobile Network Platforms. Several options are available with current mobile network platforms for delivering LBS; these competing technologies and techniques are briefly reviewed in Table 1. The central element in the network design focuses on the degree of accuracy in targeting a user’s location. A number of geo-location technologies promise an accurate pinpointing of an object or person’s position on earth [12]. Three strategic considerations assume importance while choosing and deploying these technologies. These include the range of coverage and scalability of applications; the degree of service quality that can be established and maintained at a reasonable cost; and the careful alignment of the overall technology costs with the types of services customers will pay for. Demand Drivers. The emergence of broadband wireless infrastructure, through third-generation (3G) wireless connectivity and wireless LANs (Wi-Fi), has broadened aspirations for delivering multiple types of mobile services. Devices have evolved from simple talk-based services (first-generation mobile phones) to incorporate functions like downloading music and ring tones, multimedia messaging, and video calls. Public Wi-Fi networks are beginning to provide location-based information and services to targeted audiences. With the evolution of voice over WLAN A KEY driver of LBS will be a degree of fit between the system’s technical feasibility and the overall marketing strategy guiding its usage. Type Methodology Cell Identifier (Cell ID) Global Positioning Systems (GPS) Assisted Global Positioning Systems (aGPS) Broadband Satellite Network Base station uses radio frequency signals to track mobile device 24-satellite network Enhancement over GPS Perpetually locates device and coordinates data flow, unlike GPS Relies on lowearth-orbit satellite architectures to create a global network Pros Relatively widespread infrastructure Outdoor precision within five-meter range No “cold starts” Faster fix on location Lower signal latency with user devices Cons Hard to pin down user’s exact location to a few meters Expensive User device must be in direct line of sight Device needs special embedded chips Expensive User device must be in direct line of sight Device needs special embedded chips Complex to maintain Industry Applications Wireless network providers, police force, banking government security, welfare Military applications, commercial applications like real estate, security, police force (not as successful in consumer settings) Military applications, commercial applications like real estate, security, police force (not as successful in consumer settings) Military applications, commercial applications like real estate, security, police force (not as successful in consumer settings) Table 1. Mobile network platforms for identification
( WLAN), it is possible the cellular network back- borhood, personal preferences, and time of day. These bone will be replaced by wireless broadband. Mean- can be matched with a variety of service offerings while, phones are converging with PDAs(the Palm There is an urgent need for sophisticated mobile 1705, Palm m500 series, and the Handspring Treo, for marketing techniques based on detailed knowledge of example) to create a new breed of mobile devices pro- customer profiles, history, needs, and preferences viding capabilities originally found exclusively within Information existing in customer databases developed the various disparate devices. NTT DoCoMo's hugely by retailers like Amazon. com, for example, can be used popular iMode service, which provides always-on in parallel with location-based information. New ser- Internet connectivity, is delivered through a propri- vices can also emerge at the interface of the customer etary GPRS network [7]. As the demand for multime- and other third parties wishing to deliver location- dia mobile connectivity grows, and as operators based services, including retailers, media companies, proliferate, it is likely that LBS will become a critical stadiums, and restaurants. These incremental enhance- element of a mobile operator's marketing strategy and ments will be delivered and monetized through exist contribute to the bottom lir The Customer value Consumer Demand Maps, Driving Directions, Proposition Location and Navigation Yellow Pages view, syndication, micropayments Personalized Content While the idea of using informa Niche Consumer and ion about customer location toBusines Maps, Shopping Locator Services ts, Alerting services revenue-sharing. micropayments deliver focused services is Industrial/Corporate Supply Chain Management, Inventory Application service provide extremely appealing, the area is fraught with risks and caveats and Systems Infrastructure First, there has been much hype generated about LBS, and some of its benefits are Table 2. Business ing delivery platforms where the either exaggerated or infeasible [11]. Second, limita- opportunities in mobile operator has a billing rela tions in technologies and aggregation capabilities tionship with the customer or end mean LBS is not about to become widespread for the user. NTT Do CoMos iMode service offers a preview next year or more. Third, LBS can potentially intrude of this walled garden"type of model, where third- customer privacy. Finally, there has not been a sus- party service providers are aggregated under a branded ed effort in developing sustainable business models iMode umbrella. that sufficiently address and enhance the customer Addressing Privacy Concerns. Digital fraud has experience [6] substantially increased as more consumers use the Location, Location, Location. Location plays a key Internet to complement offline purchasing. Similarly role in determining the type and nature of human unauthorized resale of personal information, intrusion activity. Location can determine consumers' informa- and theft of customer databases, and the unauthorized tion needs and their product and service choices. If a use of lost or stolen mobile devices all represent poten- mobile service provider knows the end user's exact tial threats to the adoption of lBs. LBS providers location, and is able to target useful(and billable) must alleviate consumer privacy fears by implementing information at that point in time, the benefits can be secure network and encryption technologies to curb mutual. However, knowledge of the user's location is illegal activity and by developing clear communication only part of the problem. Depending on where, when, strategies to interact with customers and allay thei how, with whom, and why customers are navigating in fears. Providers need to balance privacy concerns with physical space, their needs will vary. A baseball fan the overall costs of implementing LBS tending a game with friends is likely to have a com- pletely different LBS need/consumption profile from Business Opportunities in LBS that of a person on a routine trip to the supermarket. LBS can be classified based on the type of underlying Even if the lBS provider was able to push information customer need they seek to serve and also the type of 田 bt have an extremely difficult time fouring configuation the maior drivers of demand will be out what the customer is doing or wants at that loca- mass-market consumers; consumers in niche specialty tion in real time. One can attempt to classify such application markets; business and industrial customers information needs along criteria, such as location type, with specialty needs; and a large variety of objects and amount and type of time available, individual or group inventory that can be identified and tracked in physi- needs, the context of the immediate physical neigh- cal space. We describe typical services and business COMMUNICATIONS OF THE ACM December 2003/Vol 46, No 12 63
(VoWLAN), it is possible the cellular network backbone will be replaced by wireless broadband. Meanwhile, phones are converging with PDAs (the Palm i705, Palm m500 series, and the Handspring Treo, for example) to create a new breed of mobile devices providing capabilities originally found exclusively within the various disparate devices. NTT DoCoMo’s hugely popular iMode service, which provides always-on Internet connectivity, is delivered through a proprietary GPRS network [7]. As the demand for multimedia mobile connectivity grows, and as operators proliferate, it is likely that LBS will become a critical element of a mobile operator’s marketing strategy and contribute to the bottom line. The Customer Value Proposition While the idea of using information about customer location to deliver focused services is extremely appealing, the area is fraught with risks and caveats. First, there has been much hype generated about LBS, and some of its benefits are either exaggerated or infeasible [11]. Second, limitations in technologies and aggregation capabilities mean LBS is not about to become widespread for the next year or more. Third, LBS can potentially intrude on customer privacy. Finally, there has not been a sustained effort in developing sustainable business models that sufficiently address and enhance the customer experience [6]. Location, Location, Location. Location plays a key role in determining the type and nature of human activity. Location can determine consumers’ information needs and their product and service choices. If a mobile service provider knows the end user’s exact location, and is able to target useful (and billable) information at that point in time, the benefits can be mutual. However, knowledge of the user’s location is only part of the problem. Depending on where, when, how, with whom, and why customers are navigating in physical space, their needs will vary. A baseball fan attending a game with friends is likely to have a completely different LBS need/consumption profile from that of a person on a routine trip to the supermarket. Even if the LBS provider was able to push information or advertising with great reliability to these customers, they might have an extremely difficult time figuring out what the customer is doing or wants at that location in real time. One can attempt to classify such information needs along criteria, such as location type, amount and type of time available, individual or group needs, the context of the immediate physical neighborhood, personal preferences, and time of day. These can be matched with a variety of service offerings. There is an urgent need for sophisticated mobile marketing techniques based on detailed knowledge of customer profiles, history, needs, and preferences. Information existing in customer databases developed by retailers like Amazon.com, for example, can be used in parallel with location-based information. New services can also emerge at the interface of the customer and other third parties wishing to deliver locationbased services, including retailers, media companies, stadiums, and restaurants. These incremental enhancements will be delivered and monetized through existing delivery platforms where the mobile operator has a billing relationship with the customer or end user. NTT DoCoMo’s iMode service offers a preview of this “walled garden” type of model, where thirdparty service providers are aggregated under a branded iMode umbrella. Addressing Privacy Concerns. Digital fraud has substantially increased as more consumers use the Internet to complement offline purchasing. Similarly, unauthorized resale of personal information, intrusion and theft of customer databases, and the unauthorized use of lost or stolen mobile devices all represent potential threats to the adoption of LBS. LBS providers must alleviate consumer privacy fears by implementing secure network and encryption technologies to curb illegal activity and by developing clear communication strategies to interact with customers and allay their fears. Providers need to balance privacy concerns with the overall costs of implementing LBS. Business Opportunities in LBS LBS can be classified based on the type of underlying customer need they seek to serve and also the type of information that can be delivered in a given space-time configuration. The major drivers of demand will be mass-market consumers; consumers in niche specialty application markets; business and industrial customers with specialty needs; and a large variety of objects and inventory that can be identified and tracked in physical space. We describe typical services and business COMMUNICATIONS OF THE ACM December 2003/Vol. 46, No. 12 63 Demand Level Consumer Demand Location and Navigation Personalized Content Niche Consumer and Business Industrial/Corporate Typical Services Maps, Driving Directions, Yellow Pages Maps, Shopping Locator Services, Coupon Discounts, Alerting services Supply Chain Management, Inventory Management, Customer Relationship Management, Intelligent Transportation, and Systems Infrastructure Typical Business Models Subscription-based services, pay-perview, syndication, micropayments Subscription-based services, advertising, revenue-sharing, micropayments Application service provider, consulting services, infrastructure provider Table 2. Business opportunities in LBS
ADVANCEs IN modular software and colin along with capabilities in customization and personalization toold, will be critical to seamless integration of location inFormation, Customer needs, and vendor oterungd models for each of these demand categories in Table 2. Point of Need Information Delivery. The second Where am I" Queries. One major type of con- type of demand relates to usable, personalized info sumer demand relates to information about location mation delivered at the point of need. This includes and navigation, such as"Where am I? " and"How can information about new or interesting products and get there? " queries. Maps, driving directions, direc- services, promotions, and targeting of customers based tory and yellow page listings, and business descriptions on more advanced knowledge of customer profiles and in a given geographical radius all constitute the preferences. Service providers will need access to cus- answers to such queries. These types of LBs have tomers preference profiles either through a propri- taken off in Japan, while they are a more recent phe- etary database(and find the best way to deliver the nomenon in the U.S. Some industry analysts suggest information) or use an arrangement with a LBS the Japanese context is unique and may not be replic- provider (who matches customer profiles to vendor able elsewhere. For example, in a dense urban area like offerings). For this type of activity to take place trans- Tokyo, there are few street names. GPS capabilities parently and efficiently, there needs to be further inte- allow customers to find their way to their destinations gration in the types of software that link these multiple nd alert friends and colleagues to their whereabouts. parties. Advances in modular software and coding, Further, as Japanese employees get transferred fre- along with capabilities in customization and personal quently, they use mobile location-based services to ization tools, will be critical to this kind of seamless familiarize themselves with their new surroundings. In integration of location information, customer needs, the U.S., for example, the car could become the focus and vendor offerings. of lBS providers. Getting detailed maps and direc- Niche Consumer Applications. a third major type tions,real-time alerts on traffic conditions, and infor- of demand relates to specialized applications aimed at mation about highway services like gas, food, and certain concentrated segments of the market. This can lodging will be an important benefit to drivers. Auto include demand by individual consumers, as well as manufacturers, hardware vendors, software developers, business and industrial buyers. At the individual con- and third-party service providers eagerly anticipate the sumer level, several specialized LBS are under develop. next stage of evolution of the car as a mobile comput- ment. A number of them combine the inherent ing platform, as well as the emergence of a telematics technological possibilities with detailed knowledge of industry along with it [5]. the characteristics and idiosyncrasies of target seg- At this early stage, however, these developments ments and will be deployed at the network level. One have not yet come to fruition. Instead, there has been can expect early-stage devices like golfing assistants a market rollout of relatively inexpensive handheld and fish finders to evolve beyond their current capa- homing devices. These include devices like golfing bilities and provide more features, functionality, and assistants mounted on golf carts that provide every- real-time networking. Target segments could include thing from course maps to teeing tips, fish finders that sports enthusiasts, outdoorsmen, and families, for combine sonar and gPs capabilities to allow anglers example, and delivered services could be extremely to pinpoint locations of schools of fish, and so-called rich and narrow in their focus. One early example is people locators, which enable parents to locate chil- Gate5, a software developer in Berlin, whose"People dren in urban areas and shopping environments [8. Finder program lets users of handheld devices display The key to unlocking the potential of such services is maps with the location of other cell phone users. Once their application in a networked setting. Combining a person is located, the two cell phone users can ed at devices with other proximate and distant cousins, net- on their phones in real time. The service is targe worked applications could potentially multiply the mobile carriers, whose customers must opt into the range and utility of these services program, which works on handsets and PDAs with December 2003/Vol 46, No 12 COMMUNICATIONS OF THE ACM
models for each of these demand categories in Table 2. “Where am I” Queries. One major type of consumer demand relates to information about location and navigation, such as “Where am I?” and “How can I get there?” queries. Maps, driving directions, directory and yellow page listings, and business descriptions in a given geographical radius all constitute the answers to such queries. These types of LBS have taken off in Japan, while they are a more recent phenomenon in the U.S. Some industry analysts suggest the Japanese context is unique and may not be replicable elsewhere. For example, in a dense urban area like Tokyo, there are few street names. GPS capabilities allow customers to find their way to their destinations and alert friends and colleagues to their whereabouts. Further, as Japanese employees get transferred frequently, they use mobile location-based services to familiarize themselves with their new surroundings. In the U.S., for example, the car could become the focus of LBS providers. Getting detailed maps and directions, real-time alerts on traffic conditions, and information about highway services like gas, food, and lodging will be an important benefit to drivers. Auto manufacturers, hardware vendors, software developers, and third-party service providers eagerly anticipate the next stage of evolution of the car as a mobile computing platform, as well as the emergence of a telematics industry along with it [5]. At this early stage, however, these developments have not yet come to fruition. Instead, there has been a market rollout of relatively inexpensive handheld homing devices. These include devices like golfing assistants mounted on golf carts that provide everything from course maps to teeing tips, fish finders that combine sonar and GPS capabilities to allow anglers to pinpoint locations of schools of fish, and so-called people locators, which enable parents to locate children in urban areas and shopping environments [8]. The key to unlocking the potential of such services is their application in a networked setting. Combining devices with other proximate and distant cousins, networked applications could potentially multiply the range and utility of these services. Point of Need Information Delivery. The second type of demand relates to usable, personalized information delivered at the point of need. This includes information about new or interesting products and services, promotions, and targeting of customers based on more advanced knowledge of customer profiles and preferences. Service providers will need access to customers’ preference profiles either through a proprietary database (and find the best way to deliver the information) or use an arrangement with a LBS provider (who matches customer profiles to vendor offerings). For this type of activity to take place transparently and efficiently, there needs to be further integration in the types of software that link these multiple parties. Advances in modular software and coding, along with capabilities in customization and personalization tools, will be critical to this kind of seamless integration of location information, customer needs, and vendor offerings. Niche Consumer Applications. A third major type of demand relates to specialized applications aimed at certain concentrated segments of the market. This can include demand by individual consumers, as well as business and industrial buyers. At the individual consumer level, several specialized LBS are under development. A number of them combine the inherent technological possibilities with detailed knowledge of the characteristics and idiosyncrasies of target segments and will be deployed at the network level. One can expect early-stage devices like golfing assistants and fish finders to evolve beyond their current capabilities and provide more features, functionality, and real-time networking. Target segments could include sports enthusiasts, outdoorsmen, and families, for example, and delivered services could be extremely rich and narrow in their focus. One early example is Gate5, a software developer in Berlin, whose “People Finder” program lets users of handheld devices display maps with the location of other cell phone users. Once a person is located, the two cell phone users can chat on their phones in real time. The service is targeted at mobile carriers, whose customers must opt into the program, which works on handsets and PDAs with 64 December 2003/Vol. 46, No. 12 COMMUNICATIONS OF THE ACM ADVANCES IN modular software and coding, along with capabilities in customization and personalization tools, will be critical to seamless integration of location information, customer needs, and vendor offerings
SMS and email capabilities. While some of these ser- time reports and work orders. Development of such vices may raise the hackles of privacy advocates, a dynamic applications will accelerate once the conver- number of business models will rely on opt-in or pull- gence of identification, connectivity, and inference are based delivery. truly in place. Industrial and Corporate Applications. The fourth major type of demand will emerge from busi- Conclusion ness customers. In fact, a quiet revolution has been tak- LBS can be a new source of revenue opportunity f ing place in this category as businesses begin to use and multiple stakeholders in the mobile value chain.Given deploy location-based technologies to track material, existing technical limitations like device form factors people, and projects using innovative means. Much of and the speed of data access, combined with human this change can be attributed to three major develop- limitations like reduced consideration sets and the ments [10]. First, the widespread adoption of relatively need for speed and convenience, LBS must deliver rel- es expensive bar-code scanning means products mov- evant, targeted, and timely information to consumers ing through the supply chain can be digitally identi- at the time and place of their choice [4]. Competitive fied, both in terms of their underlying characteristics advantage will accrue to lBS providers who focus on (product number, dimensions, weight, price) and their superior customer experiences, distinctive, secure, and movement in the supply chain (real-time location, high-quality service, and branding. C speed of movement, bottlenecks). Second, the connec- ivity revolution has enabled the networking of REFERENCEs portable wireless devices and wearable computers that 1. Analysis. Mobil location services and T mologies, February 13, 2001 can provide new types of usable knowledge to buyers,Alated Telecommanications Revicu, fint quarter, 2001). 71-76. of a globally dispersed supply chain. Combining iden- 4. Kannan, PK, Chang, A.M., and Whinston, A.B. Wireless commerce ification and connectivity, along with new types of Marketing issues and possibilities. In Proceedings of the 34th Hawaii Inter- inference algorithms and techniques, will enable seam-5 Kutiatil o n trand venkatram ai ne. zote rategic options in the digital era. rials and products through the global supply chain. 6. Nohria, M, ey Reviewv 12. 4(Apr 2001) Leestma, M. A moving target: The mobile From the location-based technology point of view, an 7. Rao, B NrT DoCoMo: Defining the Mobile Frontie. Institute for Tech- extensive range of enabling technologies will make this nology and Enterprise, Polytechnic University, New York, June 2000 happen in conjunction with existing network infra- 8. Spagat, E. Handheld homing devices: GPS hits houschold gadgets. Wall structure. Finally, Swartz [10 posits another type of 9. Strategis Group. European Wires Location Services. Apr 2000 This is similar to the concept of ambient intelligence, and inference engines. Technology in Socicy 23,(2001),159-1 orpervasivecomputingproposedbyotheradvocatesof2001.dIrertionsmagaiNcwww.dirctionsmagaom/artidephparide_id=144. arguing that almost all types of physical material and 12 Varshney, U Addressing location in mobile commerce. In procced- devices will be embedded with smart sensors and effec. ings of the 26th Annual IEEE Cor inference on Local Computer Networks rely form a large-scale intelligent network. This net work will sense customer needs and deliver them intelligently" irrespective of time and space. BHARATRAO(brao@usa.net)isanassociateprofessorof EVenwithcurrenttechnologiesindustryanalystsLoUisMinaKAkiS(ouisminakakisoipmorgan.com)is xpect significant demand in areas like fleet tracking, technology officer with JPMorgan Chase Bank in New York force. One example that incorporates numerous loca- prior specific pemission and/or a fe tion-based features includes a prototype system recently deployed during the Pentagons $700 million wearable computer system, this project gathers, stores, and analyzes data about daily room-by-room inspec tions at a construction site and seeks to improve com- munications between on- and offsite supervisors by creating more accurate and timelier inspection check- lists, location-specific task recommendations, and real- o 2003 ACM0002-0782/03/1200$5.0 COMMUNICATIONS OF THE ACM December 2003/Vol 46, No 12
SMS and email capabilities. While some of these services may raise the hackles of privacy advocates, a number of business models will rely on opt-in or pullbased delivery. Industrial and Corporate Applications. The fourth major type of demand will emerge from business customers. In fact, a quiet revolution has been taking place in this category as businesses begin to use and deploy location-based technologies to track material, people, and projects using innovative means. Much of this change can be attributed to three major developments [10]. First, the widespread adoption of relatively inexpensive bar-code scanning means products moving through the supply chain can be digitally identified, both in terms of their underlying characteristics (product number, dimensions, weight, price) and their movement in the supply chain (real-time location, speed of movement, bottlenecks). Second, the connectivity revolution has enabled the networking of portable wireless devices and wearable computers that can provide new types of usable knowledge to buyers, suppliers, manufacturers, retailers, and other members of a globally dispersed supply chain. Combining identification and connectivity, along with new types of inference algorithms and techniques, will enable seamless, efficient, and transparent movement of raw materials and products through the global supply chain. From the location-based technology point of view, an extensive range of enabling technologies will make this happen in conjunction with existing network infrastructure. Finally, Swartz [10] posits another type of revolution, that of large-scale inference capabilities. This is similar to the concept of ambient intelligence or pervasive computing proposed by other advocates arguing that almost all types of physical material and devices will be embedded with smart sensors and effectively form a large-scale intelligent network. This network will sense customer needs and deliver them “intelligently” irrespective of time and space. Even with current technologies, industry analysts expect significant demand in areas like fleet tracking, asset management, personal and asset safety, network fault detection and maintenance, and the provision of CRM and other tools to an increasingly mobile workforce. One example that incorporates numerous location-based features includes a prototype system recently deployed during the Pentagon’s $700 million reconstruction and restoration project. Based on a wearable computer system, this project gathers, stores, and analyzes data about daily room-by-room inspections at a construction site and seeks to improve communications between on- and offsite supervisors by creating more accurate and timelier inspection checklists, location-specific task recommendations, and realtime reports and work orders. Development of such dynamic applications will accelerate once the convergence of identification, connectivity, and inference are truly in place. Conclusion LBS can be a new source of revenue opportunity for multiple stakeholders in the mobile value chain. Given existing technical limitations like device form factors and the speed of data access, combined with human limitations like reduced consideration sets and the need for speed and convenience, LBS must deliver relevant, targeted, and timely information to consumers at the time and place of their choice [4]. Competitive advantage will accrue to LBS providers who focus on superior customer experiences, distinctive, secure, and high-quality service, and branding. References 1. Analysis. Mobile Location Services and Technologies. February 13, 2001. 2. Dru, M-A. and Saada, S. Location-based mobile services: The essentials. Alcatel Telecommunications Review, (first quarter, 2001), 71–76. 3. Geer, D. The E911 dilemma. Wireless Business and Technology (Nov./Dec. 2001), 40–44. 4. Kannan, P.K., Chang, A.M., and Whinston, A.B. Wireless commerce: Marketing issues and possibilities. In Proceedings of the 34th Hawaii International Conference on Systems Sciences (2001). 5. Kulatilaka, N. and Venkatraman, N. Strategic options in the digital era. Business Strategy Review 12, 4 (Apr. 2001). 6. Nohria, N. and Leestma, M. A moving target: The mobile commerce customer. MIT Sloan Management Review (Spring 2001). 7. Rao, B. NTT DoCoMo: Defining the Mobile Frontier. Institute for Technology and Enterprise, Polytechnic University, New York, June 2000. 8. Spagat, E. Handheld homing devices: GPS hits household gadgets. Wall Street Journal (Sept. 11, 2002). 9. Strategis Group. European Wireless Location Services. Apr. 2000. 10. Swartz, J. E-commerce and megamachines: Identification, connectivity, and inference engines. Technology in Society 23, (2001), 159–175. 11. VanderMeer, J. Hype vs. reality of location-based services: LBS at the end of 2001. DirectionsMagazine; www.directionsmag.com/article.php?article_id=144. 12. Varshney, U. Addressing location issues in mobile commerce. In Proceedings of the 26th Annual IEEE Conference on Local Computer Networks (2001), 184–192. Bharat Rao (brao@usa.net) is an associate professor of management at Polytechnic University in Brooklyn, NY. Louis Minakakis (louis.minakakis@jpmorgan.com) is a technology officer with JPMorganChase Bank in New York. 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