Assessing the Future of Location-Based Services: Technologies, Applications, and Strategies

Assessing the Future of Location-Based Services: Technologies, Applications, and Strategies

Robert Harmon (Portland State University, USA) and Tugrul Daim (Portland State University, USA)
DOI: 10.4018/978-1-60566-156-8.ch005
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Location-based services (LBS) are approaching an inflection point. The continued rollout of the technological infrastructure, the availability of LBS applications, and the market’s increasing awareness of their potential value should lead to increasing business opportunities. However, there is still a high degree of uncertainty in the LBS space. Challenges are emerging to the cellular network operator-centric LBS model. Hardware companies, application providers, competing infrastructure technologies (such as Wi-Fi, WiMAX, and satellite networks), and new competitors from the computer and Internet industries are all vying for market position. Customers are becoming interested in location services, but the uptake has been slow. New LBS business models and new strategies need to be considered. This chapter evaluates the future of location-based services through a critical assessment of the technology, service applications, market trends, and strategic issues.
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Are location-based services (LBS) finally ready to take off? For almost ten years LBS has been heralded as the next killer application in the wireless space. Yet the uptake for LBS has been very slow. Potential customers, both business and consumer, have a poor understanding of what LBS is. They perceive LBS to be complex, costly, and offering insufficient value to warrant adoption. Mobile operators may be mostly to blame for this. They have been slow to roll out services, targeted niche markets, offered poor service quality, charged high subscription fees, and limited the access of innovative third-party application providers to their closed networks. In a very real sense the operators’ “walled gardens” have choked off promising paths for innovation. Joe Astroth, VP of the LBS division of Autodesk sums it up well: “LBS is the killer application that got killed on the way to the mainstream” (Baig, 2006).

However, this disappointing situation may be about to change. ABI Research projects worldwide subscribers of GPS-enabled LBS will grow from 12 million in 2007 to reach 315 million in 2011 (Morse, 2006). International Data Corporation (IDC) projects the location-based advertising (LBA) market alone to be a $2 billion market opportunity by 2011 (Boulton, 2007). North America and Western Europe will likely see the greatest growth. In North America, operators such as Verizon Wireless and Sprint with 3G networks have embraced GPS. European LBS has been limited by the lack of GPS capability. However, the continuing rollout of W-CDMA enabled smartphones with GPS chipsets will enable the growth of LBS there.

The extended gestational period for LBS has engendered reevaluation regarding its potential and its role as a standalone class of mobile services. Three key issues will determine the future of LBS:

  • 1.

    Will LBS be a service category unto itself or will it be an added feature to existing services--adding value by increasing usability and enhancing the user’s experience?

  • 2.

    How will changes in customer expectations of the mobile Internet experience impact LBS?

  • 3.

    What changes in LBS business models will occur as the mobile operators are challenged by Internet-based business models from competitors such as Google, Nokia, and Apple?

As the Internet and mobile worlds converge and LBS starts to look more promising, competitive issues will abound. The industry dynamics are already in flux as key players in the mobile ecosystem vie for power. Handset manufacturers are including GPS, Wi-Fi, VoIP, and soon WiMAX capabilities on their smartphone platforms that will enable users to bypass cellular networks. Google, with a regulatory boost from the Federal Communications Commission, is pushing to disrupt the market with the potential for a network-neutral open cellular system in the 700 MHz band (Gapper, 2007). LBS application providers are leveraging new handset and network technologies and partnering with other members of the operators’ value chain to create innovative applications and to challenge the operators’ channel power. They are also developing applications that enable customers to “free ride” on cellular networks. The basic questions here are: What LBS services do users want, where will that value be generated in the LBS ecosystem, and who will capture it?

The Internet is by its very nature an open system. Anyone can launch a website or an e-commerce service. This is anathema for mobile operators who limit choice and competition with their walled-garden networks. The operators are coming under increasing pressure from customers, regulators, partners, and competitors to open their networks to innovation. With or without the operators’ acquiescence, this opening is starting to happen with Wi-Fi and VoIP-capable smartphones. WiMAX, which recently became a 3G standard, will further challenge the operators’ closed networks (Allison, 2007). Apple’s Wi-Fi-enabled iPhone is the first major breach of AT&T’s network and brand dominance. More openness and disruption is on the way which should favorably impact the growth of LBS.

Key Terms in this Chapter

Mobile Data Networks: 3G and 4G high-speed mobile networks that enable Internet access on mobile devices. 3G networks are circuit and packet switched and 4G is packet switched. Such networks use W-CDMA, CDMA2000, and WiMAX technology for 3G networks. OFDMA technologies such as Long Term Evolution (LTE) for GSM networks and Ultra Mobile Broadband (UMB) for CDMA networks and Mobile WiMAX are standards being proposed for 4G networks.

Location Enablement: The use of GPS or other location technology, handsets, networks, applications, and infrastructure to deliver location-relevant information to any portable wireless device that has the capacity to display multimedia content.

Mobile Web2.0: The foundation of Mobile Web 2.0 consists of personal information and social connections that people share to form social networks. The Mobile Web as accessed from cell phones, PDAs, and other mobile devices deliver Internet protocol (IP) multimedia to mobile users. It essentially harnesses user-generated content as the means for creating a rich user experiences capable of creating superior customer value.

Location Technology: Advanced technologies that determine the location of a mobile handset device. Network based technologies use the cellular network to determine the user’s location. The primary handset-based technology is the satellite based Global Positioning System (GPS). Hybrid technologies such as A-GPS attempt to minimize the line-of-sight drawbacks from pure GPS handset solutions. It incorporates the accuracy of a GPS solution for outside open areas and is network-assisted for poor GPS signal locations such as indoors. Short-range local positioning technologies such as Wi-Fi, Bluetooth, and Radio Frequency Identification (RFID) that may be built into the handset can provide accurate location data since the access point location is known.

Industry Food Chain: A hierarchical business ecosystem where the identity, roles, and relative power of the industry’s participants define their market position. Industry food chain participants exist in an economic, political, and physical environment where the dynamics of their relationships affect strategic choices and outcomes and are characterized by uncertainty. Studying an industry’s food chain can identify roles and strategic options of the participants and help to foresee competitive disruptions that may be on the horizon.

Mobile Social Network: A mobile location-enabled social structure made of nodes of individuals or organizations that are linked by values, visions, ideas, or friendship. The mobile social network is a map of all of the relevant ties between the nodes being studied leveraged by knowledge of each member’s location. The network determines and leverages the social capital of individual actors to enhance each user’s experience and the collective value of the network.

Location-Relevant Services: Location determination is a building block for creating interactive services where contextual awareness is a key attribute. Context means enabling marketers to reach customers at the right location with the right solution at the precise time they are ready to buy. Location-relevant services bring the Internet site to the user, personalizing relevant information to fit the customer’s real-time requirements at the point of need.

LBS Applications: Location-enabled services such as navigation, family tracking, emergency services, asset tracking, logistics planning, workforce management, customer management, location-based advertising, and social networking that are delivered over a mobile network to a location-ready multimedia handset.

Location-Based Services (LBS): Location-based services (LBS) provide location-specific information, often in context with other mobile applications, which is relevant to the mobile user’s real-time choice behavior. These services determine the exact location of the user and can use push and/or pull information methods to respond to queries or suggest possible decision options to the mobile user. Knowledge of the user’s location can be used to deliver context-relevant information to customers where and when they are most likely to buy.

Complete Chapter List

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Editorial Advisory Board
Table of Contents
Elaine Lawrence
Bhuvan Unhelkar
Bhuvan Unhelkar
Chapter 1
Houman Younessi
Business value from any technology comes when it is applied, in practice, by the business to earn economic as well as social advantage. This is... Sample PDF
Strategic View on Creating Business Value through Mobile Technologies
Chapter 2
Rajeev Agrawal
Game theory is a tool used in the context of conflict interest among interacting decision makers. Game theory may be considered as a generalization... Sample PDF
Game Theory as a Tool in Mobile Technologies and Applications
Chapter 3
Ioakim (Makis) Marmaridis
Enabling interorganizational collaboration for SMEs holds a lot of promise for increased competitiveness and global reach in a connected economy... Sample PDF
A Methodology and Framework for Extending Mobile Transformations to Mobile Collaborations for SMEs
Chapter 4
Jhoanna Rhodette Pedrasa, Eranga Perera, Aruna Seneviratne
Context is any information that can enhance a computing system’s relevance, timeliness, and usefulness to the user. Recent research has been devoted... Sample PDF
Context Aware Mobility Management
Chapter 5
Robert Harmon, Tugrul Daim
Location-based services (LBS) are approaching an inflection point. The continued rollout of the technological infrastructure, the availability of... Sample PDF
Assessing the Future of Location-Based Services: Technologies, Applications, and Strategies
Chapter 6
Bhuvan Unhelkar
This chapter presents the creation of a process framework that can be used by enterprises in order to transition to mobile enterprises. This... Sample PDF
Creation of a Process Framework for Transitioning to a Mobile Enterprise
Chapter 7
Bhuvan Unhelkar, Amit Tiwary, Abbass Ghanbary
Web Services (WS) technologies create the potential for an organization to collaborate with partners and customers by enabling its software... Sample PDF
Transitioning Business Processes to a Collaborative Business Environment with Mobility: An Action Research Based on a Service Organization
Chapter 8
Bhuvan Unhelkar, Abbass Ghanbary
This chapter is based on a study at a selected organization to evaluate the impact of mobile technology and collaborative environment on its... Sample PDF
Transitioning of Existing Business Processes to Collaborative and Mobile Business Processes: An Action Research Based on a Security Service Organization
Chapter 9
Keith Sherringham, Bhuvan Unhelkar
The Internet wave that swept through business is likely to be seen as a ripple in a pond compared to the changes that are predicted from the... Sample PDF
Strategic Elements for the Mobile Enablement of Business
Chapter 10
Anthony S. Atkins
It is becoming evident that mobile technology can enhance a current e-business system to provide competitive advantage in business activities. These... Sample PDF
Mobile Strategy for E-Business Solution
Chapter 11
Norshuhada Shiratuddin, Siti Mahfuzah Sarif
Mobile computing is getting more and more attention these days, but the fact that there is still inadequate source of development methodologies to... Sample PDF
Construction of Matrix and eMatrix for Mobile Development Methodologies
Chapter 12
Norshuhada Shiratuddin, Shahizan Hassan, Syamsul Bahrin Zaibon, Sobihatun Nur Ab Salam
Studies on the use of mobile payment (m-payment) method for buying electronic book (e-book) are very scarce, possibly not yet available.... Sample PDF
eBook Mobile Payment Process Model
Chapter 13
Dilupa Ranatunga, Rasika Withanage, Dinesh Arunatileka
This chapter describes marketing strategies in concept for wireless broadband services in the Sri Lankan market. It also emphasizes different... Sample PDF
Innovative Marketing Strategies for Wireless Broadband Services in the Sri Lankan Context
Chapter 14
Amit Lingarchani
This chapter discusses how to extend the collaborative business process model with mobility and how to implement such a model in the “Medical... Sample PDF
Extending Collaborative Business Model with Mobility and its Implementation in the Medical Tourism Industry
Chapter 15
Rok Rupnik
The chapter introduces mobile applications development methodology. Mobile applications represent a new application model being introduced to... Sample PDF
Mobile Applications Development Methodology
Chapter 16
Keith Sherringham, Bhuvan Unhelkar
For business decision making to occur, data needs to be converted to information, then to knowledge and rapidly to wisdom. Whilst Information... Sample PDF
Real Time Decision Making and Mobile Technologies
Chapter 17
Rishi Kalra, Amit Nanchahal
Marketing and sales channels are a significant lifeline for the sales force of a business. Sales professionals work on the concept of creating and... Sample PDF
Channel Optimization for On Field Sales Force by Integration of Business Software on Mobile Platforms
Chapter 18
Mohammed Maharmeh, Bhuvan Unhelkar
This chapter presents the use of Composite Application Software Development Process Framework (CASDPF) for Mobile Applications Development. This... Sample PDF
A Composite Software Framework Approach for Mobile Application Development
Chapter 19
Carol Charsky, Mahesh Raisinghani
Mobile devices are comprised of a multitude of various applications and operating systems that have significantly impacted the way people interact... Sample PDF
Mobile Devices and Mobile Applications: Key Future Trends
Chapter 20
Walied Askarzai, Bhuvan Unhelkar
This chapter discusses the importance of strategic approach to the phenomenon of globalization with mobile business. Globalization is the exclusion... Sample PDF
Strategic Approach to Globalization with Mobile Business
Chapter 21
Keith Sherringham, Bhuvan Unhelkar
Information Communication Technology (ICT) needs to provide the knowledge worker with an integrated support system of information management and... Sample PDF
Business Driven Enterprise Architecture and Applications to Support Mobile Business
Chapter 22
Rajani Shankar Sadasivam
The integration of large systems remains problematic in spite of advances in composite services approaches, such as Web services and business... Sample PDF
Composite Process-Personalization with Service-Oriented Architecture
Chapter 23
Ralf Wagner, Martin Klaus
Culture predefines the framework of needs, beliefs, and norms in most decisions humans make in their lives. However, the impact of culture often... Sample PDF
Cultural Impacts on the Spread of Mobile Commerce: An International Comparison
Chapter 24
Calin Gurau
This paper presents the situation of the mobile services market in France, based on a survey conducted in the city of Montpellier, in November-... Sample PDF
The Mobile Services Market: An Exploratory Analysis of Mobile Phone Usage by French Consumers
Chapter 25
Mobile Direct Marketing  (pages 269-281)
Ralf Wagner, Martin Klaus
The role of mobile terminals such as mobile telephones, or PDAs, is shifting from gadgetry to serious platforms for direct marketing actions. The... Sample PDF
Mobile Direct Marketing
Chapter 26
Joaquin Aldas-Manzano, Carla Ruiz-Mafe, Silvia Sanz-Blas
The chapter aims to present an in-depth study of the factors influencing mobile commerce adoption. The authors analyze the influence of Mobile use... Sample PDF
Mobile Commerce Adoption in Spain: The Influence of Consumer Attitudes and ICT Usage Behaviour
Chapter 27
Fernando Ferri, Patrizia Grifoni, Tiziana Guzzo
This chapter analyzes how the development and use of mobile and Web technologies are changing the way to search information, to plan, to buy, and to... Sample PDF
Social Aspects of Mobile Technologies on Web Tourism Trend
Chapter 28
Heikki Karjaluoto, Teemu Kautonen
The chapter investigates different sources of trust as factors affecting consumers’ willingness to provide companies with personal information and... Sample PDF
Sources of Trust and Consumers' Participation in Permission-Based Mobile Marketing
Chapter 29
Alessia D’Andrea, Fernando Ferri, Patrizia Grifoni
Mobile technologies, such as PDAs, pocket PCs and cell phones, are transforming interpersonal communications, making them independent from a fixed... Sample PDF
Social Impacts of Mobile Virtual Communities on Healthcare
Chapter 30
Jigisha Gala, Bhuvan Unhelkar
This chapter discusses and depicts the wide range of changes induced in the lives of adolescents by the use of mobile gadgets, as viewed by a... Sample PDF
Impact of Mobile Technologies and Gadgets on Adolescent's Interpersonal Relationships
Chapter 31
Heikki Karjaluoto, Matti Leppäniemi, Jari Sall, Jaako Sinisalo, Feng Li
This chapter discusses the mobile network as a new medium for marketing communications. It illustrates that the mobile medium, defined as two-way... Sample PDF
The Mobile Network as a New Medium for Marketing Communications: A Case Study
Chapter 32
Keyurkumar J. Patel
Wireless Technology is growing at a phenomenal rate. Of the many present challenges highlighted by the author, increased security is one of the main... Sample PDF
Successful Implementation of Emerging Communication Technologies in a Mobile-Intense Organization: A Case Study of Sydney Airport
Chapter 33
Kumar Priyatam, R. M. Banakar, B. Shankaranand
Physical layer issues of broadband wireless communication systems form the bottleneck in providing fast and reliable communication over wireless... Sample PDF
ISI Cancellation in 4G Wireless Mobiles
Chapter 34
Sumeet Gupta, Miti Garg, Heng Xu, Mark Goh
Supply chains have become increasingly complex and interdependent in the globalization era. Regulatory authorities are demanding stricter customer... Sample PDF
RFID and Supply Chain Visibility
Chapter 35
Ioannis P. Chochliouros, Anastasia S. Spiliopoulou, George Agapiou, Nikolaos Lazaridis M.D. Ph.D
In the scope of the present chapter, the authors evaluate several potential opportunities from the suggested use of cell broadcasting systems in... Sample PDF
Cell Broadcasting Opportunities of Modern Mobile Communications and Its Usage in Emergency Warning Facilities
Chapter 36
Matthew Tatham, Arsi Honkanen
Securing data is a key concern for individuals and organisations throughout the world, especially within information and communications... Sample PDF
Mobility for Secure Multi-Factor "Out of Band" Authentication
Chapter 37
Anand Kuppuswami
Mobile agents and framework built on mobile agents have been the key research area for the past few years. The major impedances like latency factor... Sample PDF
Asynchronous Communication Protocol for Multiple Transactions in Mobile Architecture for a Mobile Agent System
Chapter 38
R. B. Patel, Vijay Athavale
Mobile computing extends the horizons of conventional computing model to a ubiquitous computing environment that serves users at anytime, anywhere.... Sample PDF
Reliable Computing in Heterogeneous Networks: A Review Report
Chapter 39
Mobility in IP Networks  (pages 422-431)
Sanjay Jasola, Ramesh C. Sharma
With the ever increasing use of portable and hand held devices for voice and data transfer, there is a growing expectation to access information... Sample PDF
Mobility in IP Networks
Chapter 40
Bharti Trivedi, Bhuvan Unhelkar
This chapter aims to investigate and expand the role of mobile technologies in an Environmentally Responsible Business Strategy (ERBS). An ERBS with... Sample PDF
Role of Mobile Technologies in an Environmentally Responsible Business Strategy
Chapter 41
Dirk Werth, Paul Makuch
Nowadays the majority of enterprises use Enterprise Resource Planning (ERP) software to improve their business processes. Simultaneously, mobile... Sample PDF
Mobile Technologies Extending ERP Systems
Chapter 42
Ataul Bari, Arunita Jaekel
A sensor network consists of tiny, low-powered and multifunctional sensor devices and is able to perform complex tasks through the collaborative... Sample PDF
Techniques for Exploiting Mobility in Wireless Sensor Networks
Chapter 43
Sargam Parmar, Bhuvan Unhelkar
In commercial cellular networks, like the systems based on direct sequence code division multiple access (DSCDMA), many types of interferences can... Sample PDF
Independent Component Analysis Algorithms in Wireless Communication Systems
Chapter 44
Bhargav Bhatt
This chapter describes a case study in installation of a Wi-Fi network in a chemical manufacturing company. This project, carried out in India, was... Sample PDF
A Case Study in the Installation of Wi-Fi Networks in a Chemical Manufacturing Unit in India
Chapter 45
Andrew P. Ciganek, K. Ramamurthy
The purpose of this chapter is to explore and suggest how perceptions of the social context of an organization moderate the usage of an innovative... Sample PDF
Social Context for Mobile Computing Device Adoption and Diffusion: A Proposed Research Model and Key Research Issues
Chapter 46
Ming-Chien (Mindy) Wu, Bhuvan Unhelkar
The Enterprise Architecture (EA) brings together various business processes, technologies, standards, systems, and IT infrastructure of the... Sample PDF
Extending Enterprise Architecture with Mobility
Chapter 47
Abbass Ghanbary, Bhuvan Unhelkar
Web Services (WS) technologies, generally built around the ubiquitous Extensible Markup Language (XML), have provided many opportunities for... Sample PDF
Extending Enterprise Application Integration (EAI) with Mobile and Web Services Technologies
Chapter 48
Wenbing Zhao
Wireless Web services are becoming a reality, if they have not already. The unique characteristics of the mobile devices and wireless communication... Sample PDF
Increasing the Performability of Wireless Web Services
Chapter 49
David Curtis, Ming-Chien (Mindy) Wu
Enterprise Architecture (EA) is a role or function that primarily ensures the Information Technology strategy and implementation within an... Sample PDF
Investigation into the Impact of Integration of Mobile Technology Applications into Enterprise Architecture
Chapter 50
Ekata Mehul, Vikram Limaye
Securing a “Wireless Ad Hoc Network” (WAHN) is a major concern of network administrators. This is particularly so in case of the wireless networks... Sample PDF
Security in Mobile Ad Hoc Networks
Chapter 51
Barin N. Nag, Mark Siegal
The recent advances in wireless communication technologies have made possible the development of wireless systems for monitoring the health and... Sample PDF
Data Warehousing and Decision Support in Mobile Wireless Patient Monitoring
Chapter 52
Marco Garito
Th first part of this chapter deals with various mobile business applications and initiatives taken from real-life companies of which successfully... Sample PDF
Case Studies in Mobile Business
Chapter 53
Chitra Subramanian
Mobile commerce offers consumers the convenience and flexibility of mobile services anytime and at any place. Secured and private mobile business... Sample PDF
Secure Payment in Mobile Business: A Case Study
Chapter 54
Marco Garito
The word “convergence” refers to the combination of fixed and mobile communication, a situation where a private or business user can take advantage... Sample PDF
Convergence in Mobile Internet with Service Oriented Architecture and Its Value to Business
Chapter 55
N. Raghavendra Rao
Recent changes in global economy have been focusing on the need for a proactive approach in the International Financial Services sector. Integrating... Sample PDF
Balancing Business, Technology, and Global Expertise
Chapter 56
Tagelsir Mohamed Gasmelseid
This chapter introduces the use of mobile medical informatics as a means for improving clinical practice in Sudan. It argues that mobile medical... Sample PDF
Improving Clinical Practice through Mobile Medical Informatics
Chapter 57
Ishan Bhalla, Kamlesh Chaudhary
Mobile WiMAX has gained extensive support in the industry. Demand on wireless Internet bandwidth is increasing. Mobile WiMAX, also called... Sample PDF
Traffic Management System (TMS) using WiMAX
Chapter 58
Abbass Ghanbary, Manish Desai, Bhuvan Unhelkar
This chapter discusses the results of an action research project carried out at ImpexDocs in Sydney, Australia, by the lead author. The purpose of... Sample PDF
Transformation of Business Processes of Export Companies to a Proposed Collaborative Environment with the Aid of Web Services and Mobile Technologies
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