Chapter Six: Mobile Commerce and Ubiquitous Computing 6-1

Online File W6.1 Wi-Fi and the Traveling Public

Perhaps nowhere else in the world is there a more compelling case for Wi-Fi connectivity than in the travel industry.
Airports, train stations, and hotels are the places that travelers are most likely to have spare time on their hands. Business
travelers are keen to make productive use of this “dead” time by answering e-mail or conducting business research on the
Web. Recreational travelers frequently want to send e-mail to or read e-mail from friends and family, catch up with fellow
travelers through instant messaging, or investigate activities at their next destination. Both types of travelers may need
to book accommodations, alert contacts at their destination of expected arrival times, or reserve taxis or shuttles.
Because of the demands and needs of the traveling public, Wi-Fi hotspots in airports and hotels have grown from a
novelty to a necessity. According to the 2008 edition of the iPass Broadband Mobility Index, Wi-Fi hotspots increased
46 percent from mid-2007 to mid-2008. For the first time, European business use of Wi-Fi hotspots eclipsed North
American business use, growing almost 90 percent and accounting for more than 45 percent of all usage worldwide.
Intercity travel venues remained the most popular Wi-Fi hotspots, accounting for 75 percent of sessions globally. Airports
were still the top venue with 40 percent of the overall sessions, with hotels coming in second with almost 35 percent of
the global share. However, hotel Wi-Fi hotspot usage grew faster than airport usage, with approximately 65 percent growth
compared to 30 percent growth for airports. “Commuter transit locations,” such as train stations, also showed strong
growth of approximately 80 percent (iPass 2008).
Besides the time spent in fixed locations like airports and hotels, another source of unproductive time is the time
spent actually traveling on a plane, bus, or train. In response, we’re beginning to see more mobile Wi-Fi hotspots.
In the past, Lufthansa offered in-flight Wi-Fi service on its long-haul fleet. The hotspots were connected to the
Internet via satellites, and the user paid fees similar to other Wi-Fi access services. However, Lufthansa discontinued the
service in 2006 due to low usage. In 2008, a number of airlines began either testing or providing broadband in-flight Wi-Fi
services. American, Canadian, and Virgin America airlines are some of the carriers that began providing these services on
select aircraft models or select flights. These services are based on Aircell’s (aircell.com) ground-to-air Gogo service.
In contrast, JetBlue, Alaska, and Southwest Airlines are relying on Row 44’s (row44.com) satellite service to provide
802.11 b/g Wi-Fi connections. Unlike Aircell’s service, Row 44 is not limited by international borders and is available
throughout North America.

REFERENCES FOR ONLINE FILE W6.1

Fleishman, G. “Comprehensive U.S. Airport Wi-Fi Guide.”
Wifinetnews.com, September 12, 2006. wifinetnews.com/
archives/006954.html (accessed January 2011).
iPass. iPass Mobile Broadband Index. September 22, 2008.
ipass.com/pressroom/pressroom_wifi.html (accessed
January 2011).
Reed, B. “How Four Airlines Plan to Connect Fliers to the
Web.” PC World, December 7, 2007. pcworld.com/
article/id,140416-c,wireless/article.html (accessed
January 2011).
6-2 Part 3: Emerging EC Platforms

Online File W6.2 Wi-Fi Mesh Networks, Google Talk, and Interoperability

Researchers in India have developed a protocol that will enable wide area coverage of Wi-Fi networks, which are called
Wi-Fi mesh networks. With the conventional Wi-Fi networks that are common in Internet cafés and airports, radio signals
are exchanged between portable devices and the base station, which has a wired connection to the Internet. Their range is
only 100 meters or less. With a Wi-Fi mesh network, several nodes can exchange radio signals with each other as well as
with the devices. The range of a Wi-Fi mesh network is up to 40 kilometers (approximately 25 miles) and at speeds up to
20 times faster than traditional Wi-Fi. This arrangement provides wider geographical Wi-Fi coverage at a lower cost than a
series of conventional Wi-Fi networks, because not all the nodes have to be wired to the Internet.
Another development is Google’s Google Talk service, which allows for voice connections and IM (google.com/talk).
In May 2006, Google and Nokia launched a handheld Internet browsing device that contained Google Talk, which relies on
Wi-Fi instead of cell phone networks. As many as 300 municipalities, including San Francisco; Philadelphia; Suffolk County
in Long Island, New York; and the entire state of Connecticut, plan to offer the Wi-Fi service free of charge. Initially, because
of the different protocols, the device cannot call regular phones. However, cell phone equipment manufacturers, including
Avaya, Cisco Systems, and Motorola, are testing devices that have both Wi-Fi and cell phone network capabilities. For example,
Motorola partnered with eBay’s VoIP provider Skype. Customers with Wi-Fi-enabled mobile phones will have the option of using
Skype’s service in place of a landline service as long as they are within range of a Wi-Fi signal. Once out of Wi-Fi range, the
phones switch to cellular technology. Sales of mobile phones with both cellular and Wi-Fi capability began to grow in 2010.

REFERENCES FOR ONLINE FILE W6.2

Fleetwood, C. “Nokia, Google Partnership Highlights Wikipedia. en.wikipedia.org/wiki/Google_Talk (accessed
WiFi Trend.” CNNMoney.com, May 12, 2006. cellular- April 2011).
news.com/story/17361.php (accessed January 2011). Technology Review. “Long-Distance Wi-Fi.” October 2005.

ONLINE FILE W6.3

Application Case
MOBILE SALES SOLUTION RESULTS IN £1 MILLION
REVENUE BOOST AT HILLARYS
Founded in 1971, Hillarys is one of the United Kingdom’s
leading made-to-measure blinds manufacturers, with revenues
of more than £85 million a year and a 23 percent share of the
domestic made-to-measure blinds market. Hillarys employs
800 self-employed advisors who visit customers in their
homes to provide guidance on the company’s range of blinds,
awnings, and canopies. The advisors take orders and measure
windows. When the blinds have been manufactured, the
advisors return to customers’ homes to fit them. Each week,
8,500 orders are processed and 25,000 individual blinds are
sold, manufactured, and fitted.
In the past, orders were done manually by completing a
paper form and submitting the form to Hillarys’s head office.
This resulted in a four-day delay from the time an order was
taken to the time that it was manually entered into the system
at the head office. Because the forms were handwritten,
details were sometimes prone to error and misinterpretation.
Manual order entry and processing often leads to inaccurate
information, and it also requires a substantial amount of extra
work to chase down the correct information. Hillarys processes
approximately 10,000 orders a week. About 20 percent of
those orders require correction. Considering that the amount
of time required to correct the entries averages about 4 days,
customers often experienced large delays in their orders.
Hillarys recognized that it required a cost-effective
solution that would improve the efficiency and accuracy of
ordering and that was integrated with its existing SAP
system. The solution also had to be easy to use and needed
to fit with its existing sales cycle and processes.
After a thorough review of the situation, Hillarys
responded to a proposal from Fujitsu Services to develop a
mobile solution. The solution was based on Microsoft
(continued)
 Chapter Six: Mobile Commerce and Ubiquitous Computing
Online File W6.3 (continued)
Windows Mobile-based Pocket PC Phone Edition technology
running on handheld personal digital assistants (PDAs).
Fujitsu Services developed a solution running on Vodafone
Qtek 2020 devices. Hillarys called the solution Sales Advisory
Mobilisation (SAM). SAM offered real-time, two-way commu-
nication from the PDAs to the back office. It also integrated
seamlessly with the organization’s existing SAP ordering and
diary-management system.
Using SAM, advisors access their daily schedules on
their PDAs. This gives them customer details, timing, and the
nature of appointments. Customer and appointment informa-
tion, which is gathered centrally in Hillarys’s call center, is
sent to the advisors’ devices daily. The automated allocation
is based on their location, availability, and specialist skills.
The device leads the sales advisor through the sales
process. Using a series of drop-down menus and pick lists,
the advisor captures order information about window size,
product type, and other special instructions. Complex pricing
and promotions information is retrieved from a pocket
edition of Microsoft’s SQL Server database running on the
PDA. This ensures that the customer gets the best deal. The
advisor can then give the customer a quote, which he or she
can print out on a portable printer, or take payment with a
credit or debit card. The device submits credit card informa-
tion to the bank for on-the-spot authorization.
The order is sent to the head office in real time and is
uploaded automatically into the SAP ordering system, eliminat-
ing the risk of processing errors associated with handwritten
forms.
The advisors helped Fujitsu design the screens, the
application flow, and the language used. As a result, the
solution mimics its sales process. By the time the project is
complete, there will be 700 advisors using the device, which
is about 85 percent of Hillarys’s sales force.
The mobile solution provided by Fujitsu resulted in a
number of benefits for Hillarys. Among the most important
were the following:
◗ Increased efficiency and productivity. Through the
electronic capture of data and its immediate transmission
REFERENCES FOR ONLINE FILE W6.3
Fujitsu. “Hillary Blinds.” 2005. fujitsu.com/downloads/SVC/
fs/casestudies/hillarys-blinds.pdf (accessed January 2011).
6-3
to the ordering system, the need for time-consuming,
unproductive work is dramatically reduced. Better customer
service is achieved by field advisors getting to their
appointments promptly, pricing is more accurate, debit and
credit card transactions are more secure, and blinds are
fitted on time. Hillarys was able to redeploy resources into
more productive areas. Queries are resolved much earlier in
the sales cycle. If an order changes, the information is
automatically uploaded from the device to the back office.
◗ Increased revenue. Results from the pilot demonstrated
sales opportunities of around £1.1 million a year as a
result of improved accuracy in the pricing of blinds. The
system calculates the price automatically, which is more
effective than a manual system.
◗ Reduced costs. Hillarys expected to achieve return on
investment (ROI) in the first year of rollout and deliver net
cost savings of around £25 million a year thereon. Hillarys
has greater visibility of incoming orders, and the organiza-
tion can more effectively balance income with advertising
and direct-labor costs. The increased accuracy of advisors’
diary information means fewer wasted trips and consider-
ably less paperwork for them to complete at the end of
each day.
Not only does the system impact the company’s overall
revenues, but it also impacts the costs and earnings of the
individual advisor. The company estimated that SAM would
save the average advisor around £700 a year and would
increase his or her incremental commission by £2,000 a year.
Questions
1. Draw the supply chain for the old process.
2. Describe the problems along the supply chain of the
old system.
3. Describe how m-commerce solved the problems. Use a
diagram to illustrate the solution.
4. What other benefits were derived from the wireless
system?
Microsoft. “Large Field Sales Operation to Boost Revenues
by More Than £1 Million with Mobile Solution.” 2005.
whitepapers.techrepublic.com.com/thankyou.aspx?
&docid=268246&view=268246 (no longer available
online).
6-4 Part 3: Emerging EC Platforms

ONLINE FILE W6.4

Application Case
NEXTBUS: A SUPERB CUSTOMER SERVICE
The Problem
Buses in certain parts of San Francisco have difficulty keeping
up with the posted schedule, especially during rush hours.
Generally, buses are scheduled to arrive every 20 minutes, but
at times passengers may have to wait 30 to 40 minutes. The
scheduled times then become meaningless, and passengers are
unhappy because they waste time.
The Solution
San Francisco bus riders carrying an Internet-enabled wire-
less device, such as a cell phone or PDA, can quickly find out
when a bus is likely to arrive at a particular bus stop. The
NextBus (nextbus.com) system tracks public transportation
buses in real time. Knowing where each bus is and factoring
in traffic patterns and weather reports, NextBus calculates
the estimated arrival time of the bus to each bus stop on the
route. Arrival times also are displayed on the Internet and on
a public screen at each bus stop.
The NextBus system has been used successfully in
several other cities around the United States, in Finland,
and in several other countries. Exhibit W6.4.1 shows how the
NextBus system works. The core of the NextBus system is the
set of GPS satellites that lets the NextBus information center
know where a bus is located. Based on a bus’s location, the
scheduled arrival time at each stop can be calculated.
Currently, NextBus is an ad-free customer service, but in
the near future it may contain advertising. Because the
system knows exactly where riders are when they request
information and how much time they have until their next
bus, in the future, the system may send riders to the nearest
Starbucks for a cup of coffee, giving them an electronic
discount coupon.
The Results
Passengers in San Francisco are happy with the system;
worries about missing the bus are diminished. A similar
system is used in rural areas in Finland, where buses are
infrequent and the winters are very cold; passengers can
stay in a warm coffeehouse not far from the bus stop rather
than wait in the cold for a bus that may be an hour late.
A bus company can also use the system to improve
scheduling, arrange for extra buses when needed, and
improve its operations.
By 2011, numerous public transportation systems in
Canada (4 provinces) and the United States (29 states) were
using the NextBus GPS technology to track buses and keep
passengers informed of arrival times (NextBus 2011). To find
out how to access NextBus with your cell phone, visit its
website.

EXHIBIT W6.4.1 NextBus Operational Model

GPS Satellites
Real-Time
Arrival
NextBus Predictions 0100100
Wireless Information 1010110
1100100
1011010
Communication Center 1001010

Location and 0100100

Real-Time
Bus ID Reported 1010110
1100100
1011010
Passenger
to Automatic 1001010
Messages
Vehicle Location 0100100
1010110
1100100
(AVL) at NextBus 1011010

Information Center
1001010
World
Transit Wide Web
Management
Information

Wireless Phone
and Mobile Devices

Wireless 22 Fillmore Shelter Signs

Communication 7 min & 12 min and Public Displays

Pole Signs

Source: Used with permission of NextBus Information Systems, Inc. Copyright (c) 2005.
 Chapter Six: Mobile Commerce and Ubiquitous Computing 6-5

REFERENCES FOR ONLINE FILE W6.4

ITS America. “NextBus Expands Real-Time Transit
Information in the Bay Area with AC Transit.” ITS
America, August 9, 2001. nextbus.com/corporate/press/
#actransitExpansion (accessed January 2011).
NextBus. “Intelligent System Predicts Bus Arrival Times
and Reduces Transportation Complaints.” Press release,
September 26, 2007. nextbus.com/corporate/press/
inthenews.htm (accessed January 2011).
NextBus. nextbus.com (accessed January 2011).

Online File W6.5 Warehouse Management Systems: Mobile Solutions

Introduction
Mobile solutions play a major role in warehouse management. Warehouses are the center of manufacturing, retail, service
and other organizations. To run a successful operation, managers need to ensure that materials, goods, and products flow
effortlessly throughout the warehouse. Companies can achieve this with the help of warehouse management systems
(WMS) software and a mobile data collection and communication system.
Your warehouse plays a key role in ensuring that your company meets its productivity goals. A WMS that includes
inventory management, receiving, storing, picking, and shipping solutions enables you to move goods and information
through your warehouse, distribution center, stockroom or store, at a greater speed with no errors.
WMS tools can help you move and store inventory at maximum efficiency and minimum cost. Faster order cycles and
cost savings are just some of the other benefits of the technologies. Major benefits include: streamlining processes to
move items faster and store them more efficiently, reducing inventories and labor costs, and increasing accuracy and
customer satisfaction. This online file will list some mobile warehouse applications. For information on WMS, see
searchmanufacturingerp.techtarget.com/tutorial/Warehouse-management-systems-software-guide and
prospectasoftware.com/Resources/sap_wm.pdf.

Wireless Solutions for the Warehouse

Wireless solutions in the warehouse environment can be found along the company’s internal supply chain and in the
interaction points with its partners. Some of the major categories of applications are:
Data Collection and Transfer. Data collection can be done by scanning bar codes (using a bar code reader) or reading
RFID tags with RFID readers. Data collection can also be done using iPhone applications. (Note that RFID is still expensive
and difficult to deploy especially if partners are involved; see Chapter 11).
The problem is not only to collect the data but also to transfer it to another device, to a server, or to the network.
This can be done by using Bluetooth for example. With appropriate data collection, you can optimize the inventory
management (including counting items), optimally use all of the storage bins, mix pallets belonging to several depart-
ments, and find exactly where a particular material is located in the plant at all times.
Communication. The warehouse environment can be noisy, dirty, involved with moving items and vehicles, include refrig-
erators and/or ovens, and more. Multiple tools are available to overcome person-to-person and computer to people
communication problems. Several devices enable hands-free operations while others are voice operated. Communication
enables picking and replenishment, and optimizes work flow.
Other Applications. Other applications include:
◗ Cross docking solutions that expedite the flow of products from receiving to shipping.
◗ Cold storage and freezer solutions that optimize operations inside refrigerators and maximize productivity in cold storage
environments.
◗ Hands-free and voice solutions for the warehouse that increase mobility and relay information quickly and accurately.
◗ RFID distributions and warehouse solutions that enable smooth workflow processes while enhancing efficiency.
◗ Order picking and replenishment solutions that allow the processing of more orders per day, reducing errors and improving
customer service.
◗ Vehicle mount solutions that allow you to achieve high levels of productivity and accuracy across warehouse operations.
(continued)
6-6 Part 3: Emerging EC Platforms

Online File W6.5 (continued)

For more details on these applications, see motorola.com/Business/US-EN/Business+Solutions/Industry+Solutions/

Manufacturing/Materials+and+Warehouse+Management_US-EN.

Example: Hame Ltd.

Hame Ltd. is a Czech company that manufactures long-life and convenience food, including meat, tomato puree, fruits and
vegetables. In 2011 it manufactured more than 100,000 tons of food products, making it one of the Czech Republic’s
biggest food producers. The company also exports to more than 35 countries.
HAME was facing many challenges in its logistics processes. First, the nature of its distribution business meant that it
had many different pickup and dispatch locations, including several external warehouses, which frequently had limited
space. A lot of the information about dispatch and delivery was also recorded manually on paper, which meant that data
had to be re-entered manually into the computerized logistics system where mistakes occurred.
Both of these factors resulted in Hame often paying excessive costs in order to transport goods from its manufacturing
plants to different dispatch departments and warehouses.
In 2010, Hame opened a new, large central distribution center that consolidated the large number of pickup and
dispatch positions into one main place so that all deliveries would come to and from one location.
Hame chose a WMS called Osiris ICZ, which was linked to the central ERP system. It was chosen because it would
enable Hame to automate its goods identification process by using wireless barcode scanners and provide real-time visibility
into warehouse management.
The WMS is supported by Motorola VC5090 vehicle-mounted mobile computers that have a laser reader, enabling them
to capture bar code data quickly. The device has an extremely rugged and robust design so it can withstand multiple falls
to concrete from up to 1.8 meters. Hame also needed a device that could scan a bar code from long distance, because the
storage racks in the warehouse can be up to 10 meters high. As a result, Motorola MC9000 mobile computers were selected
for rapid data capture, to be carried around by warehouse staff.
The bar codes contain additional data such as the exact description and location of goods, forklifts and trolleys, and
storage areas within each warehouse, and this information is fed directly into the back-end system in real-time via the
wireless network. The mobile devices are ideal for use in Hame’s warehouses where conditions can be extremely dusty and
humid. For details, see the case study, “Hame uses Motorola Mobile Computers and Wireless LAN Solution to Improve
Inventory Processes in New Distribution Center and Improves Efficiency by 30%,” published by Motorola.com (2009).
 Chapter Six: Mobile Commerce and Ubiquitous Computing
ONLINE FILE W6.6
Application Case
WI-FI SENSOR NET AIDS WINEMAKERS
Pickberry, a Sonoma/California vineyard, is using a sensor
network to address an age-old conundrum: how to grow better
grapes. Grapes that produce good wine sell at a premium, so
getting the right conditions for good growth can mean the
difference between profit and loss for small vineyards.
One problem Pickberry (now Ravenswood Pickberry
Vineyard) faces is that the Sonoma County vineyard is spread
over a hill, and the growing conditions vary over the different
parts of the slope. In order to monitor key growing condi-
tions, such as temperature, humidity, and soil moisture,
measurements need to be taken at various points throughout
the vineyard. Field monitor sensors have been available for
some time, but running data cables through the vineyard has
been prohibitively expensive to install and maintain and
therefore impractical. Pickberry’s viticulturists also want infor-
mation that can help them work out what grape-growing
conditions produce good quality grapes. In the past, they
have had to speculate retrospectively why vines growing in
one part of the vineyard in one year produced better grapes
than vines in another part of the vineyard in another year.
The solution is a sensor net that uses Wi-Fi for data con-
nectivity. Sensors that monitor the conditions known to be
key influences on grape quality have been placed throughout
the vineyard. A sensor communicates its data to a central
server by hopping from one Wi-Fi access point to another.
The analysis engine on the server has a series of alerts built
in that tells the growers when particular levels of indicators,
such as soil moisture or temperature, are reached. Then
corrective action can be taken.
Wireless was a natural choice for the grape growers,
according to Bill Westerman, an associate partner at
Accenture who worked on the project. “We are able to get
data from 30 acres back to home base without having to run
cables and without having to have radio transmitters that are
powerful enough to make the leap from one end of the field
to the other,” said Westerman.
The remote sensor network provides Pickberry with the
ability to:
◗ Make calculated decisions. Decisions can be made
almost vine-by-vine—thanks to the granular level of the
REFERENCES FOR ONLINE FILE W6.6
Accenture. “Pickberry Vineyard: Accenture Prototype Helps
Improve Crop Management.” 2006. Accenture.com/xd/
xd.asp?it=enweb&xd=servicespercent5Ctechnologyper
cent5Ccasepercent5Cpickberry.xml (accessed December
2008).
6-7
data obtained in near real time. For example, Pickberry
can use the data to adjust watering schedules for a
specific area.
◗ Combine vineyard data with other data sources.
This enables Pickberry to manage operations and
resources, such as water usage, more scientifically. Live
data on soil moisture and air humidity can be correlated
with weather forecast data to match estimated water
demand with well supply.
◗ Detect potentially devastating events. Frost, disease,
and pests can be detected early on.
What are the results? Obviously the data are helping the
Pickberry grape growers know much more about the health of
their vines in different parts of the vineyard. They better
understand how water is being retained and how much water
needs to be applied, promoting both healthy vines and water
conservation. The analysis also has been used to reduce the
application of fungicides to control mildew. Now fungicides
are applied only when and where they are needed rather than
blanket coverage on a regular schedule, as was done before
the sensor net.
The data also are helping the viticulturists work out
the conditions that produce the best grapes. According to
Westerman, “They are using this data in part to verify what
they did before and to get details they never had before.”
Armed with insight provided from sensor applications,
Pickberry can take immediate action. These capabilities lead
to more effective crop management, lowering costs while
raising product quality.
Questions
1. How is the Wi-Fi sensor net contributing to Pickberry’s
core competency of grape production?
2. Why is Wi-Fi such an important part of this solution?
3. What are the benefits for Pickberry, for the environ-
ment, and for the wine industry?
Ward, M. “Wi-Fi Sensor Net Aids Winemakers.” BBC
News, July 6, 2004. news.bbc.co.uk/2/hi/technology/
3860863.stm (accessed December 2008).
6-8 Part 3: Emerging EC Platforms

Online File W6.7 Representative Wireless Industrial Sensor Network Applications

Many companies offer sensor network-based solutions. One example is Banner Engineering (bannerengineering.com).
Banner Engineering’s SureCross product line offers reliable wireless industrial I/O monitoring and control solutions for
most applications, including:
◗ Factory automation
◗ Process automation
◗ Agriculture and irrigation
◗ Water and wastewater monitoring landfill and biomass
◗ Tank level monitoring
◗ Material handling
The following are some sample applications.
1. Production line notification (factory automation). The flexibility and ease-of-use for these products makes it easy
to integrate the SureCross product line into any existing indoor or outdoor facility. A sensor system lets managers,
technicians, and clerks know when they are needed on the production line.
2. Delivery truck arrival notification. A wireless sensor network is mounted above the loading dock to detect when a
delivery truck has arrived at the facility. When the sensor detects a truck in the loading dock, the wireless network
sends a signal that lights up several blinking color lights mounted at strategic locations to notify personnel.
3. Call for a forklift. Sensors call the forklift to bring parts to the assembly line when they sense a forthcoming need.
Thus, parts arrive just-it-time; no waiting time.
4. Material handling. Throughout an assembly plant, conveyor systems carry subassemblies to the assembly line. For
process and control monitoring, sensors need to detect if a carrier is full or empty. Using a wireless sensor network to
detect the presence of product makes data gathering and network maintenance easier and less costly.
5. Bin risk. Applying lean manufacturing principles in existing assembly facilities is increasingly common (e.g., in mass
customization) with manufacturers looking to speed up production times by eliminating mistakes made when the
wrong parts are selected. Using a wireless sensor network and lighted indicators makes picking the correct parts faster
and it improves manufacturing efficiency.
6. Automated guided vehicle. An automated guided vehicle (AGV) delivers assembly line parts to workstations when
the parts are needed. Remote, self-contained push buttons attached to SureCross Wireless Nodes can be placed at
assembly line workstations to signal a wireless gateway-equipped automated guide vehicle (AGV) for replenishment of
assembly parts.
7. Wireless perimeter guard. Storing large items outdoors presents a potential risk of property damage through
vandalism or loss from theft. Using a solar-powered wireless alert system prevents damage or loss by alerting security
personnel when someone has entered your outdoor storage area without clearance.
8. Retail traffic analysis. Large retail stores require an easy-to-install wireline and wireless sensor solution for
monitoring customer traffic in various parts of the store. These monitors generate statistics that are analyzed and can
help optimize placement of products and advertising, thus increasing sales.
9. Railcar axle mover. In grain stations and ports, railcar axle movers push railway cars so that train engines are not
needed. A railcar mobile wheel monitoring system detects the railcar wheels and triggers an axle pushing arm to
activate, pushing the railcars to the next loading or unloading station.
For details on these and other applications, see bannerengineering.com/en-US/wireless/surecross_web_appnotes and
motorola.com/Business/US-EN/Business+Product+and+Services.
 Chapter Six: Mobile Commerce and Ubiquitous Computing 6-9

Online File W6.8 Security Approaches for Mobile Computing

WEP
Wired equivalent privacy (WEP) is a security protocol for Wi-Fi networks that encrypts the communications between a
mobile device and the wireless access point. WEP provides weak encryption, meaning that it is secured against casual
hacking as long as the person setting up the network turns on the encryption. Unfortunately, many small business owners
and home owners operating a WLAN fail to do just that.
Although WEP offers a measure of security, the trade-off is inconvenience. In order to employ WEP, all Wi-Fi users
must be educated on how it works, their computers must be reconfigured to connect to the network, and the encryption
code must be changed frequently. Additionally, every authorized user must be given the encryption key, which means that
a lot of people will be carrying around the keys to the network. In larger companies, if a hacker can gain access to the
encryption key or can get through the WEP security in some other way—which is easily done with readily available soft-
ware, such as Aircrack-ng (aircrack-ng.org/doku.php) or WEPCrack (wepcrack.sourceforge.net)—the damage is often greater,
because companies have a habit of installing their wireless access points behind their firewalls.
There are alternatives to WEP. If a company is concerned about the security of wireless data communications, it can
use VPN technology to create a secure connection over the wireless link. Also, a new Wi-Fi security standard—Wi-Fi
Protective Access (WPA)—is under development. This standard has the backing of the Wireless Fidelity Alliance and the
Institute of Electrical and Electronics Engineers (IEEE). WPA provides enhanced encryption and supports user authentica-
tion, something that was missing from WEP. The alliance has already begun certifying Wi-Fi products with WPA security. The
WPA encryption was cracked in 2007, and experts recommend using WPA2 when securing wireless networks (Vamosi 2008).

SIM-Based Authentication
GSM and its 2.5G–4.0G counterparts all include SIM. This module is usually implemented as a smart card that contains an
authentication key along with other vital information about the subscriber. The authentication key also is stored on a
“home location registry,” which can be thought of as a database that is part of the mobile network. When the phone is
turned on, the user is asked to enter a PIN number. This protects the cell phone against illegal use if it happens to be
stolen or lost. If the PIN is correct, the cell phone and the network engage in a “challenge-response” process of authenti-
cation. A network authentication center sends a random number to the cell phone’s SIM. The SIM computes a “signed
response” by combining the random number with its authentication key. The signed response is sent over the network
to the authentication center, which performs the same computation using a copy of the authentication key stored on the
home-location registry. If the signed response matches the value computed by the authentication center, then the cell
phone is authenticated. After that, communication takes place through “symmetric encryption,” using a key generated by
both the authentication center and the SIM.
Although SIM cards protect against unauthorized use of a particular subscriber’s account, they do not prevent the use
of a stolen cell phone. If a thief steals a phone, the thief can simply replace the existing SIM card with another one and
sell it on the open market. The police in Amsterdam employed an interesting method to thwart this practice. Using a cell
phone’s International Mobile Equipment Identity number, the police are able to track down the mobile phone number
being used on the stolen phone. Once the number is known, the police employ a special computer program to send out an
SMS message to the stolen phone every three minutes. The message reads, “This handset was nicked [stolen]; buying or
selling it is a crime. The Police.” Obviously, this makes the stolen phone a lot less attractive to prospective buyers.

WTSL and WIM

The transmissions between the WAP gateway and the Web server can be secured through the wired Internet security
protocols (e.g., PKI, SSL, and TSL). These protocols cannot be used on the mobile side of the gateway. Instead, WAP relies
on the Wireless Transport Layer Security (WTLS). Like its wired counterpart (TSL), WTLS enables encrypted communications
between a mobile device and the WAP gateway. Additionally, WTLS supports the key elements of PKI—public and private
encryption keys, digital certificates, digital signatures, and the like.
A wireless identity module (WIM) can be used in combination with WTLS. A WIM is a smart card device, much like a
SIM (and, in fact, can be implemented on a SIM). It is designed to hold the security keys and digital certificates used by
the gateway and the Web server to encrypt/decrypt communications. One of the advantages of a WIM is that it can be
issued by a bank or other financial institution to handle m-commerce payments and transactions.
6-10 Part 3: Emerging EC Platforms

REFERENCES FOR ONLINE FILE W6.8

Evers, J. “Dutch Police Fight Cell Phone Theft with SMS Vamosi, R. “WPA Wireless Encryption Cracked.” CNET
Bombs.” IDG News Service, March 27, 2001. archives. News, November 6, 2008. news.cnet.com/8301-10789_
cnn.com/2001/TECH/ptech/03/28/SMS.bomb.idg/ 3-10083861-57.html (accessed January 2011).
index.html (accessed January 2011).