A Strategic Business Tool for Mobile Infrastructure

Awangku Hairul Nizam P. H. Ali and Anthony S. Atkins

Faculty of Computing, Engineering and Technology, Staffordshire University

Octagon, Beaconside, Stafford, ST16 9DG, United Kingdom

Abstract. This paper outlines the use of a strategic business tool to assist

decision makers in applying mobile applications in their commercial operations.

Outline examples of mobile business applications in hospitals, retail operations

and customer relationship management are presented to improve quality of

service. The paper also describes examples of wireless technologies in relation

to geographic ranges and the implementation costs of mobile technology into

various business environments. A framework is proposed to assist practitioners

in applying mobile technology to business infrastructure.

1 Introduction

Mobile applications and e-business can offer competitive advantage by creating new

platforms to reach global markets [1]. The e-business services allow business

companies to reduce costs and increase revenue from distribution. Increased online

sales and the use of mobile devices can enhance mobile business activities. Mobile

applications are currently being used in warehousing, Small and Medium Enterprise

(SME) and Customer Relationship Management (CRM) systems that allow tracking

of parcels etc. These types of mobile devices suit the business needs and activities of

the companies concerned. This principle of distribution and transaction can be

adapted for e-government or e-society applications. In these cases information can be

distributed electronically similar to the e-society i2010, which the European

Commission is developing for a European Information Society that promotes growth

and jobs in the nation [2,3]. John Hopkins Hospitals implemented mobile

applications to assists in their medical activities, such as e-prescriptions. This

implementation saves the hospitals $1,000 per day by providing the pharmaceutical

information and the medicine that the patient needs [4]. Addenbrooke’s Hospital, in

Cambridge, England, uses Blackberry mobile devices that link to a central database to

provide access to donor list information relevant to emergency surgery and operations

[5]. Partly as a result of the success gained from 176 kidney and liver transplants, the

hospital has a reputation in the use of modern technology for retrieving quick and

accurate information [6,7]. The use of data retrieval through a mobile device can be

similarly used in warehousing; Wal-Mart stocks can be identified using Radio

Frequency Identification (RFID) tags read from a special mobile RFID reader [8].

Nissan automobiles have a similar approach with CRM activities that allow the

salesperson to answer customer queries on the spot [9].

Hairul Nizam P. H. Ali A. and S. Atkins A. (2007).

A Strategic Business Tool for Mobile Infrastructure.

In Proceedings of the 1st International Joint Workshop on Wireless Ubiquitous Computing, pages 23-32

DOI: 10.5220/0002416800230032

 SciTePress

Web-enabled and standalone databases are two mobile data retrieval technologies.

The Web-enabled architecture involves mobile devices to send and retrieve

information from a centralised database. Mobile devices that are used at John

Hopkin’s Hospital and Wal-Mart are examples of web enabled database applications.

With the standalone database, the data are distributed and stored on the mobile

devices. The database can share the data among mobile devices, but the original data

remain in the mobile device. Examples of this mobile application include survey

collecting mobile devices.

The type of wireless technology, such as Wireless Local Area Network (WLAN),

Wifi, Bluetooth and WiMax, will also affect the type of mobile application that a

company can apply in their business activities. The most popular ones are Bluetooth

and Wi-fi connections as they are simple and less expensive to use. Japanese

Wagamama restaurant chains in the UK [10] apply this type of mobile devices. Wi-fi

applications are more technically diverse as they can support both Personal Digital

Assistants (PDA) and computer laptops. The evolution of mobile technology has

provided new opportunities by extending mobile infrastructure into the business,

which enables the business to gain competitive advantage. Although there are many

strategic tools and techniques available such as Porter’s competitive analysis and

Value Chain [11], strategic tools for mobile applications appear to be limited. This

paper outlines a framework to assess strategic applications of mobile technology and

pertinent infrastructure.

2 Application of Wireless Technology

The recent evolution of mobile technology has been dramatic and is evident from the

range of specifications of mobile phones. In the last five years, the bandwidth of

media content transmission has increased from one to three gigabytes of data to

accommodate a variety of built-in cameras, mp3 players and web browser

capabilities. PDA applications evolved from organisational tools to combine GSM

(Global System for Mobile Communication), GPRS (General Packet Radio Service)

services while incorporating cellular coverage and wireless technology, like Bluetooth

and Wi-fi. In addition the mobile devices allow users to make phone calls and send

messages by Short Messaging Service (SMS), or Multimedia Messaging Services

(MMS). They can also send emails and have access to the web. British Telecom has

recently introduced BT Fusion, as shown in Figure 1, which allows mobile users to

switch their phone calls to Wi-fi allowing Voice over IP (VoIP) communication.

Using VoIP can be less expensive than standard land line calls [12]. When the user’s

mobile phones are close to a hotspot, or a Wi-fi connection, the phones automatically

changes its cellular coverage to Wi-fi connections. Currently, users can make calls

10p/hour on landline, 15p/hour on BT mobile phones, 25p/hour on other networks

and make cheaper calls overseas compared to a normal landline and mobile coverage.

The BT Fusion mobile phone features the ability to change network coverage to a Wi-

fi connection, as the user steps in and out of the Wi-fi zones. Setting up a Wi-fi

access point or WLAN, is uncomplicated but involves purchasing a wireless access

point and a monthly subscription for the internet connection. The wireless access

Fig. 1. BT Fusion and BT Wi-fi Phones [13].

point has a simple step-by-step instructions which the user can follow through and

apply the necessary security and internet settings. However, to set up a business

WLAN, such as BT openzone, requires expertise to set up an online payment website

to allow their customers to access to the WLAN or internet connection. Customers

can either pay for a prepaid voucher that allows them temporary access to the internet

or they can register and pay a monthly subscription that allows them full access the

wireless service [13].

The advantage of this wireless technology is that it can provide managers with access

to the wireless devices in their business activities. However, the system needs careful

planning to minimise costs and exclude unnecessary wireless components. Figure 2

depicts some available wireless technologies and the geographic range they can

provide in a business. The location of the wireless access point affects its effective

performance. WiMax provides an option covering a large area with wireless access.

It also supports mobile internet services which can be an advantage for most PDA

users. WiMax can however, be relatively costly to implement. Depending on how

many WiMax features are required at each base station, it costs around £8,000 to

£10,000 per unit [14]. Figure 2 indicates that it can be cost effective to mix Wi-fi and

long range relay components to maximise efficiency and provide appropriate

coverage for various business activities.

Fig. 2. Wireless Range Components and Costs.

In some cases the business may be located in geographical areas unsuited to direct

wireless coverage. While Wi-fi components can cover the area of the local

community, the clustered environment of a village and the distance of the nearest

neighbouring village, may limit the Wi-fi range. Wireless relay points can overcome

these obstacles, but the geographical landscape may block the frequency. In these

instances it can be advantages to apply WiMax technology to provide wireless

coverage, such as in Baramati, Calcutta as shown in Figure 3 [15]. The

implementation of WiMax is efficient compared to spreading numerous Wi-fi relay

points around the area. The advent of new 3G technologies and the coming of

WiMax involved around 47,000 base stations in the UK. Moreover two thirds of these

installations are on existing buildings. When WiMax is used in conjunction with Wi-

fi components, it can cause increased radiation exposure including thermal effects.

This radiation is concentrated around wireless installations [16]. For public safety,

base stations and wireless components are at a safe distance from densely populated

areas. Despite this separation, exposure to this radiation can affect some people in the

vicinity [16]. The health and safety issues with regard to implementing this

technology should be assessed to ensure the proposals comply with international

standards [17,18].

Fig. 3. Implementation of WiMax Base Station in the City of Baramati, Calcutta [16].

3 Strategic Planning Tool Model

Strategic planning is often used in starting a new product or in improving business

activities in a competitive environment. Managers often use strategic tools for

forward planning, or to propose a new solution to increase business profits. The

planning usually involves identifying weaknesses, or opportunities in the business

environment. The use of strategic management tools can provide insights helpful in

competing against competitors. Some business strategic tools involve applying new

technology, including sharing other business services to decrease costs and increase

profit. Other strategies suggest concentrating on the source of income, such as

ensuring customer satisfaction, or improving relations with the suppliers and buyers.

Some strategic ideas are ineffective because of the inability to predict environmental

changes, coordination, and communication with the suppliers and the customers.

There is a need for strategic tools, providing managers with guidance to assess and

coordinate the business and to provide possible competitive advantage in the business

environment. To find a strategic tool that applies to the specific business tends to be

problematic. Business tools such as the SWOT (Strength, Weaknesses, Opportunities

and Threats) and PEST (Political, Economical, Socio-Cultural and Technological) are

commonly used for marketing and in IT for business strategy. Strategic tools, such as

the Strategic Grid [19], Porter’s Five Forces [11], Value Chain [11], IT Business

Alignment tool [20], can improve business activities and assist in providing

competitive advantage. The proposed Mobile Business Application Framework,

shown in Figure 4, is an aid to business management in decision making within the

three regions of user mobility. The framework consists of two sections, firstly the

Financial Scorecard, as shown in Section A of Figure 4. The Financial Scorecard is

used to assess the business process, activities and financial standing, similar to a cost

WiMax Base

Station

Fig. 4. Mobile Business Application Framework – Financial Scorecard (Section A).

benefit analysis, and can identify the weaknesses and opportunity of the company

[21]. The Financial Scorecard helps the business to measure performance and resolve

customer relations and strategy issues. Figure 4 illustrates that the financial scorecard

has four types of perspective as shown in Section A: the Financial, Customer,

Learning, and Growth, and Internal Business Process respectively. Each of these

perspectives evaluates the strength and weaknesses of the business by assessing the

previous records of its activities. An example of the use of the scorecard is when a

company is considering implementing a mobile technology to improve the inventory

system using Radio Frequency Identification (RFID) technology. The company could

evaluate the expected benefits by using the process cycle of the Financial Scorecard.

1. In Part 1 of Figure 4, the process cycle of the Financial Scorecard starts with the

Financial Perspective. Management assess Financial Perspective, looking at

previous records or accounts of the business activities, to set objectives, measures

and operational goals. At the end of the business process, the management can

view the record and comment on the Management Initiatives. This feedback

checks if the business has reached their intended goals or requires additional

procedures to enhance their business.

2. These Scorecard procedures are repeated for the Customer, Learning and Growth,

and the Internal Business Perspective.

3. The Internal Business Process uses the Mobile RFID Technology to enhance

stock location processes in the warehouse. The Management Initiatives column

indicated in Part 2 of Figure 4 will be used to record the success factor at the end

of the implementation.

4. As the cycle repeats, the Management Initiatives for the Financial Perspective are

assessed and recorded, to monitor the effects of implementing a mobile

technology in the business. This iterative process is repeated for the Customer,

and the Learning and Growth Perspective.

5. After completing the cycle (anti-clockwise in Part 1 of Figure 4) the Internal

Business Process for implementing the mobile technology is assessed against the

target goals as shown in Part 3.

In Figure 5, Section B illustrates the strategic framework and identifies the type of

mobile device that would be suitable to the business. The framework indicated in Part

1 illustrates a radial wave, or a ripple, which depicts the mobility range for mobile

applications involving the Internet, Extranet, and Intranet (Mobile Application

Region). These three regions are shown on the horizontal axis of the Framework.

Part 2 of Figure 5 shows the implementation of the mobile RFID technology is

contained within the warehouse, consequently this is an Intranet region. In each

region, there are also circular bands of mobile usage. These bands are colour coded to

signify ‘critical data transfer,’ which indicates the importance of data transmission to

the business applications. The three different regions differentiate the types of mobile

device and determine how the software application can be implemented in relation to

business operations. The type of mobile device, or application, used in the business

is shown by the vertical axis of the diagram (Mobile Technology Infrastructure, Part

3). The Intranet and Extranet region of the framework, illustrated in Figure 5, can

apply a fully integrated mobile device or customised application using normal mobile

phones, such as Wal-Mart Wireless Inventory Checking [8]. Also users within the

Fig. 5. Mobile Business Application Framework – Mobile Technology Application (Section B).

Internet region can use normal mobile devices but they will link or visit a web-

enabled e-commerce database, to connect to an application, for example an SMS

vending machine [22].

4 Conclusion

The strategic framework tool presented here is designed to help managers identify

where mobile technology can enhance their strategic business operations. The

business strategy should align with IT strategy, organisational infrastructure and

information system infrastructure, in order to provide competitive advantage. Popular

types of wireless technology are Wi-fi and Bluetooth technology. These technologies

are effective because of the small wireless range. A short wireless range allows a

more secure system, as the data transmission signal may be contained within the

business area; the Japanese restaurant Wagamama [10] have implemented short range

Bluetooth technology within their business. WiMax, can be normally used to

overcome geographical boundaries, or to avoid the costs of cabling, as it has a greater

geographical range. This paper outlines the applications of the proposed strategic

framework to several mobile commercial applicants. It demonstrates the use of a

Financial Scorecard to evaluate the business cost effectiveness. Departmental goals

within the company can be assessed, allowing managers to identify and align strategic

initiatives to the business [21]. In the case of mobile technology, the strategic

framework assesses the suitability of mobile devices for the business and considers

the type of security and applications appropriate for a particular mobile device. The

proposed mobile strategic framework is designed to assist mangers to make informed

decisions and increase competitive advantage in mobile infrastructure enhancements.

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