Features Of Mobile Commerce

Published Date: 02 Nov 2017

INTRODUCTION

Ghana’s Industrial policy seeks to make Ghana competitive in the world. The policies formulated by the Ministry of Trade and Tourism is numerous however for the purpose of this assignment shall be limited to the telecommunication sector.

The Policy context is to provide efficient communication infrastructure and services critical for competitive production and distribution. The policy objective is to ensure adequate and cost-effective telecommunications services to industry.

The policy prescriptions are as follows:

1.    Government will initiate measures to support the development of the telecommunications sector through the implementation of the National Communications Policy.

2.    Government will encourage the private sector to increase investment in the telecommunications sector to meet the growing demand from industry.

The term SME has a wide range of definitions varying from country to country and between the sources reporting SME statistics. In the Ghanaian context, the National Board for Small Scale Industries (NBSSI) defines SME as an enterprise with turnover greater than US$200,000 and not more than US$5 million equivalent.

The SME market constitutes the vast majority of businesses in Ghana and over the years, they have evolved to become key suppliers and service providers to large corporations, inclusive of multinational and transnational corporations. SMEs have a stronger motivation to invest in implementing ICT in their operations.

M-commerce is defined as the process of undertaking an activity via a mobile device. The convergence of the two fastest growing industries – the internet and the mobile communication – has led to the creation of an emerging market for mobile commerce (M-commerce). Although the M-commerce market is relatively young, mobile online payment and shopping is rapidly reaching a critical mass of businesses and individual users. Changing the manner business transactions are carried out.

Smart phones using Quick Response Code (QR codes) technology provide real time information for commuters to choose alternative routes saving time, provide food quality information, create virtual stores and personalise gifts. M-commerce technologies such as that used by essoko are used in the agriculture sectors to provide farmers with latest information on agricultural products and services. They can also be used to improve health care by reducing errors in prescription as well as provide real time information on patients

Regardless of the great prospects m-commerce presents to SMEs, numerous challenges saddle this field. The proceeding chapters discuss some of these challenges while considering ethical, legal, security as well as infrastructural requirement issues. The final chapter looked at the various e-commerce models and how they are applicable to the operations of SMEs.

CHAPTER 1

1.1 PROSPECTS IN ADOPTING M-COMMERCE

It has been realised that m-commerce has transformed the industrial and tourism sectors of countries. Online travel businesses are becoming successful because information on products and services are readily available and accessible anytime via mobile devices as opposed to selling and shipping of tangible goods. Thus, avoiding logistical challenges that affect other types of fledgling electronic commerce companies trying to market, sell and move tangible goods (Forrester, 2001).

M-commerce also shows high prospect for ticketing and booking for facilities via a mobile device. Thus tickets need not be sent by mail or a user having to visit an office to make reservations. It is also provides a tool for communication between tourism suppliers, intermediaries, as well as end-consumers (Reynolds, 2006).

The Organization for Economic Co-operation Development (OECD, 2000) revealed that the advent of Internet-based electronic commerce offers considerable opportunities for firms to expand their customer base enter new product markets and rationalize their business. World Tourism Organization (WTO) 2001 also indicated that electronic business offers SMEs the opportunity to undertake their business in new and more cost-effective ways. According to WTO (2001) the internet is revolutionizing the dissemination of tourism information and sales.

Tourism is ranked as one of the world’s largest industry, with a global GDP of 11% and also the largest online industry (Roger, 2002). In Ghana, tour companies including travel agencies as well hospitality businesses have also been able to obtain a significant amount of new business through the internet, much of which is organized through electronic mail (GOK, 2010). Tour companies use their websites as their primary channel for obtaining new customers or booking return visits (Scupola, 2008).

The developments of tourism in Ghana using mobile technology has the capacity to increase growth of the country’s Gross Domestic Product (GDP), raise the foreign exchange earning capacity and create employment opportunities.

Jagun et al. (2007) noted in their study on mobile telephony that there are three main steps of trading that rely heavily on information (Norton 1992; Casson 1997):

1. Information acquired before to trading for identification, reputation, trustworthiness and price;

2. Information disseminated during trading on the quality of items and money offered as part of negotiation;

3. Information obtained after trading to ascertain that agreed terms of contract have been met (Jagun et al., 2007: 3). Since information such as timeliness, cost and risk related to uncertainties are challenges in trade, m –commerce is there a very viable tool for trade.

1.2 FEATURES OF MOBILE COMMERCE

The features of m-commerce give it great prospects. M-commerce has tremendous advantages for businesses. These features are highlighted as follows:

1.2.1 MOBILITY

It offers businesses the opportunity to reach their customers regardless of their location. It is meant to deliver information to a user at the right place, right time without any hassle.

1.2.2 CONNECTIVITY

It offers users the ability to access the Internet from any location at any time, the ability to identify an individual mobile terminal user’s location, the functionality to access information at the point of need, and a need-based data/information update.

1.2.3 UBIQUITY

Ubiquity is the primary advantage of mobile commerce. Users can get any information that they are interested in, whenever they want irrespective of their location via their mobile devices. It offers a user such as a tourist or investor the ability to engage in activities such as meeting fellow business people, travelling information, tourist destination sites and hotels among others regardless of his/her location.

1.2.4 REACHABILITY

Mobile devices give service providers such as tour operators, managers of SMEs and even large corporations the ability to reach their through their mobile devices. The mobile device also helps sales agents stay in touch with their supervisors back at the office.

1.2.5 LOCALIZATION

Mobile devices also provide users with information concerning their location, businesses around them, stores that they could visit to shop and even provide direction to a place they would want to visit without prior knowledge of where the place could be located.

1.2.6 PERSONALIZATION

Mobile users receive diverse information while using the internet. A user can however customise his or her preferences relating to information that he/she wishes to receive.

1.2.7 DISSEMINATION

With wireless infrastructures supporting simultaneous delivery of data to mobile users within a specific locality it is easy disseminate information to a large consumer population. The government can also use this medium to reach the populace concerning issues that are emergencies and could cause catastrophic effects to the populace.

1.3 CHALLENGES ADOPTING M-COMMERCE

Despite the numerous benefits that m-commerce appears to offer, there are, like any other technology, bottlenecks associated with the deployment of mobile technology. These challenges are enumerated in this section.

1.3.1 AWARENESS AND KNOWLEDGE

Research conducted by Jillbert and Ahmad (2003) proved that the awareness and knowledge about the mobile commerce services impinges the adoption of M-commerce services. Consumers with a high awareness and knowledge of M-commerce services are most likely to adopt M-commerce services.

1.3.2 CONVENIENCE

A technology is easily adopted if it offers convenience to daily life. (Hossain

and Prybutok, 2008). Tang and Veijalinen (2001) assert that the main reason for the high acceptance of M-commerce is its convenience and efficiency in carrying out simple transactions. The screen size makes it easier for the user to navigate and perform any M-commerce transaction. Moreover, having WAP/GPRS enabled in the mobile phone plays a vital role in running M-commerce applications. Thereby increasing the likelihood of m-commerce services usage. However, the input mechanisms, screen resolution and screen size does give it a certain drawback compared to traditional personal computers.

Convenience of mobile and WAP/GPRS enabled devices will increase the likelihood of consumer adoption of M-commerce services.

1.3.3 COST AND PRICING

Research also undertaken by Heinonen (2002) showed that the cost and pricing of m-commerce services was a determining factor for adoption. The relatively lower the price the more easily it is to be adopted. The higher the price, the more likely users would be deterred from using m-commerce. The high cost of bandwidth is also a deterring factor. In Ghana, the cost of high speed bandwidth is high thus acts as a setback for m-commerce uptake.

1.3.4 SECURITY

Hossain and Prybutok, 2008 posits that a technology would be acceptable depending on the extent to which users are willing to sacrifice their security for the benefits the technology offers. The lower the perceived risk from the use of m-commerce services, the less likely the service would be adopted. Details of security are addressed in chapters two and three of this assignment.

1.3.5 RICH AND FAST INFORMATION

Jellbert and Ahmad (2003) suggest the minimal textual display on the mobile devices was likely to inhibit the use of m-commerce. However, the higher the perception of rich and fast information the more likely the adoption of M-commerce services among consumers.

1.3.6 USEFULNESS

Evaluating technological adoption and use often tests against the Technology Acceptance Model (TAM) (Davis, 1989). Perceived usefulness is defined as "the degree to which a person believes that using a particular system would enhance his or her productivity. (Davis, 1989, p. 320). Huei (2004) points out that perceived usefulness has a significant positive influence on the acceptance of the m-commerce. When a perceives that he/she can transact a particular business using a mobile device instead of travelling a long distance to do same, he/she is most likely to use the mobile device.

1.3.7 SELF-EFFICACY

Rosa, Marisa and Maria (2001) noticed that there was high level of occupational stress in adopting new technology. Therefore the degree of self-efficacy of a consumer will have a moderating effect on the adoption of m-commerce services. Gist (1989) suggests that

self-efficacy is an important motivational variable, influencing effort persistence and motivation. In addition, individuals who feel less capable of handling a situation may resist it because of their feelings of inadequacy or discomfort.

CHAPTER 2

2.1 ETHICAL, LEGAL AND SOCIAL ISSUES IN M-COMMERCE

One ethical issue that a mobile user could be subjected is a barrage of unsolicited advertisement from a service provider. This could cause the user of an m-commerce application feel harassed. As such, there is the need for legislation in this regard. Legislation passed could involve anonymity of users’ location, prohibition of a message sender’s identification; a subscriber should be able to opt out of any advertising service any time. The user must also be made aware when a location data is being collected, why it’s been collected and for how long. However, the potential to increase brand awareness and loyalty offers incentive to SMEs that adopt mobile technology ethically. It would be of significant benefit to a tourist as part of their travel package if, upon arrival, information is made available to them relating to restaurants, tourists attractions near them, maps and directions to these attraction destinations as well as businesses near them that provide service they might need.

Secondly, M-commerce application could also be used to save lives by providing emergency services with information to a user’s location within an acceptable range. A user of such a service would not have to seek permission to have his/her personal information released in this regard, however authorization would have to be sought.

In addition, Employers would have to undertake a risk assessment of places that employees that use mobile technology as part of their work such as hospitals or other sensitive areas, to ascertain healthy conditions are fully met in order not to pose a health risk to the employee. This assessment could however be difficult to undertake in certain areas. Employees would therefore have to be given the appropriate training to work in these areas to forestall the occurrence of accidents as well as provided the requisite equipment and clothing.

Moreover, the issue of liability would have to be addressed as well. Employees and some tourists nowadays, use mobile devices such as tablets, ipads and other sophisticated phones. These devices may contain legitimate data such as vital corporate information and trade secrets, names of customers and their addresses and even their signatures. There is the possibility for this information to be compromised and used illegitimately.

A mobile device could also contain illegal content that may be subjected to accidental or illegal use that poses a threat to the owner of such devices including the organisation he/she may work for as well as any third party. Vital corporate information and trade secrets stolen or acquired by a competitor could also spell doom for an SME. This could lead to litigation, arrest or termination of employment contract. Employers are normally held liable for disclosure of personal information of employees in the pursuance of their duties.

Firewalls provide audit trails and computer systems are regularly scanned for content that is not appropriate to ensure that corporate computer systems are abused. SMEs deploring mobile devices cannot guarantee that these devices will not be used to access illegal content. To discourage such abuse, mobile devices will have to be subjected to regular scans to deter abuse. An employee could also transmit information to the superiors on a project. This information could be intercepted though the intent of the employee is not malicious. Posing another liability issue to the SME.

A displeased employee or third party appropriating the mobile device could cause malicious damage by disseminating virus or false information to customers. The onus still lies with the SME. This would also raise legal implications as well as social issue if the information is a society related.

An employee’s mobile device could contain information on the employee’s identity. This identity could be stolen by a third party. It is therefore appropriate for an SME to ensure that adequate protection is provided to protect the employee’s identity. Where appropriate security is provided, an SME can still be held liable for security breaches.

Moreover, content distributed by and to mobile devices owned by an SME makes the SME liable for harassment and that appropriate remedial actions need to be taken by the SME to avoid litigation.

2.1.1 REDUCING THE EFFECT OF LIABILITY

An employee’s privacy is also has to be taken into consideration when monitoring their use of a company’s mobile device. It is best to develop an Acceptable Use Policy document duly signed by the employer and employee and reviewed periodically.

Adequate training also has to be provided to employees with records of employee’s training documented to make room for changes in legislation and threats.

CHAPTER 3

3.1 INFRASTRUCTURAL REQUIREMENTS AND SECURITY ISSUES

A technology infrastructure is the integrated framework that digital networks use to function. The Architecture of M-Commerce Systems consists of Mobile Enduser Devices (Phones, PDAs, Tablets, Ipads and Communicators), Data Center hosting m-commerce applications, a Security Authority, a Clearing Authority (e.g., a bank) and merchants. At the centre of this architecture is the Data Center. It directs and control m-commerce transactions sent from the mobile devices, issues shipping requests to the Suppliers, charges credit cards, among others. The Data Center is made up of a cluster of server computers running the server side of the m-commerce

system, maintaining transaction information in a database.

3.1.1 KEY REQUIREMENTS OF M-COMMERCE SYSTEMS

3.1.1.1 DEVICE INDEPENDENCE

In order for M-Commerce systems to be successful they have to be able to run on varied mobile device platforms. A browser-based architecture such as WAP can be sufficient for some

m-commerce solutions, but others will require the deployment of a mobile application such as trading user interface.

3.1.1.2 BEARER INDEPENDENCE

This also means that different wireless bearers need to be supported: WAP, SMS and GPRS. Security Identification, authentication via the Security Authority, access controls and end-to-end data encryption must be supported for any m-commerce solution to be acceptable.

3.1.1.3 RELIABILITY

A middleware is used to enhance reliability where there is weak or intermittent network coverage. This is necessary because network reception is poor in some parts of the country. There are areas where reception is excellent however some few inches away from this area and network reception is unavailable. Moreover, in Ghana, it is not all the telecom companies that have reception across the entire country.

3.1.1.4 NOTIFICATIONS

Another requirement is being able to send notifications to the customer to inform him/her that a transaction has taken place and his/her mode of payment such as credit card has been

surcharged.

3.1.1.5 MITIGATING THE CHALLENGES

Where special m-commerce software for complex business transactions is to be used, Java can be deployed. This makes it possible to run various applications on the mobile platform without changing the operating system However, deploying Java does not provide the features for developing scalable and secure m-commerce systems that guarantee delivery of transactions security, timely delivery of notifications, and integration of the data center software with the logistics systems of suppliers. A messaging middleware can be used to mitigate this. A middleware is software residing between an application and the underlying operating system environment. The messaging middleware ensures the reliable delivery of m-commerce transactions, from a mobile device to the data center. A Messaging middleware also makes it possible to integrate m-commerce services in the data center with the logistics information system at the suppliers. Another distinctive feature of messaging middleware is its ability to deliver real-time information.

3.2 SECURITY ISSUES

Security in an m-commerce system may generally be classified into three main parts for this assignment. These are hardware security, software security and access security. The access security involves both physical access and logical access. Deise identified a change in the concentration of IT security in businesses incorporating security into business processes and transactions while protecting the corporate IT infrastructure, culminating into new security policies focused on reliability, availability and trust.

3.2.1 SECURITY THREATS ARISING FROM MOBILE COMMERCE

Security threats in mobile commerce range from eavesdropping on others’ messages to stealing user's data. In a RF operated mobile commerce it is easier to do this. Another problem is the inherent security risk involved in the transmission of data via a network. This can be highlighted into two: identification integrity and message integrity. Zhang and Lee identified these two to cause a lot of concern to both parties involved in the transmission. The sender could have his/her personnel information compromised while the merchant could be liable for repudiation of the transaction and resultant non-payment. In addition, the mobile technology most often involves payment for services offered. This is evident special charges levied on users access other network carriers. These payments are normally done using the user's account details which is transmitted via a network for authentication. Security breaches could occur if these networks are not adequately secured. A security breach can also occur during the transformation of a user's encrypted data for decryption. A WAP Gap could occur during these stages when translating one protocol to another. A hacker can compromise the security of the session, capturing the data of the user at this point. Encryption technology consists of algorithms which a hacker could identify weaknesses and since most of data transmission is based on encryption technology; it is obvious that data security is not fully assured.

Furthermore, there is no international regulatory framework to enforce security concerns committed across national boundaries. When a security of an international transaction is breached, no single country can prosecute the perpetrator. This therefore makes a user less confident in using an m-commerce application and an obvious loss of revenue to the SME concerned.

Trust is also crucial to the success of m-commerce. Trust is the result of the relationships that exist between transacting parties’ familiarity with procedures and mechanisms for redress. In m-commerce, consumer trust is built on secure and reliable network services that guarantee safe transaction. However since these networks do not guarantee total security. A user does not feel completely safe using the technology. Therefore the challenge is not to make m-Commerce devoid of risk but to make the system reliable.

3.2.2 SECURITY THREATS THAT CAN IMPACT FINANCIAL TRANSACTIONS

Security threats can pose tremendous security risk in an m-commerce environment. These threats can be classified into traditional risks and non-traditional risks. Traditional risks normally involve the loss or damage to tangible physical assets such as computer hardware such as data disks. Non-traditional risks involve stolen information, damages to web sites by hackers, hijack of web sites and viruses, worms and trojans. This could be undertaken for financial gain or industrial espionage to give competitors advantage. Non-traditional security risks also include any unauthorised access or use of a company's computer system and data by a hacker or insider in order to cause damage to the system or data. Due to businesses’ reliance on computers for their daily operations, breaches of a company's information security system are a risk to almost all functional components of businesses. The use of software to encrypt and, thus, safeguard communications provides some protection but also adds a risk that a virus or other bug could damage equipment or data.

Further, according to Dang, theft of information such as critical electronic files that include financial data, customer information, marketing and new product data, trade secrets and may provide competitors with a strategic advantage, criminals with the means to commit fraud and others the opportunity to undermine the company. Dornan states the use of misappropriated information may harm third parties such as customers, employees, and business partners. The theft of information may undermine an acquisition or cause a public relations problem and hence potential loss of revenue.

Another security issues worth noting is the insertion of viruses, worms or Trojan horses into one or more computer systems; the fraudulent transfer of money to personal accounts; the use of forged electronic signatures; the theft of credit card information and credit card fraud; the theft of intellectual property, illegal use of software; stock and commodity market manipulations; and similar illegal activities. A hacker may use a number of methods such as insertion of viruses, spamming and web snatching to access computer systems and data and cause resulting damage. Damage may occur at data centres or to transmission networks, routers, and power sources.

Virus attacks may also come from innocent parties who pass on an infection without knowing that the system is contaminated. Using another technique called a distributed denial of service a hackers can attack a highly secured web. This technique hijacks numerous computers on the Internet and instructs each one to flood a target site with phoney data. The target site trying to accommodate the phoney data becomes overworked and soon begins to lose memory. The result is effectively slowing or shutting down the entire site to real customers.

Another technique used to undermine security is Web snatching. Web snatching is a practice in which one party plant a virus in another party's website that automatically moves the viewer from the selected site to a site run by the web snatcher. This is done without the permission of the selected website owner or the site visitor. It is generally accepted that government legislation is needed to enforce security on the Internet since business owners are not very likely to succeed doing it alone. This will enhance users `confidence in the use of m-commerce.

3.2.3 SECURITY RISKS IN MOBILE COMMERCE EMERGING FROM RELIANCE ON THIRD PARTIES

There are security risks associated with using third party security providers. A business would decide to use a third party security due to a lack of expertise or to save cost. Both traditional risks and non-traditional security risks can interfere with business operations or make it shut down completely. In m-commerce, Suppliers and customers can depend on each other's electronic data systems and on mutual systems. When one system fails, it may cause the other systems to fail as well. Failure may be a slowdown in the dependent system, also called the "brownout," or a total denial of service, also called the "blackout." The losses arising from reliance on a third party can generally be grouped into: (1) loss or damage to property, both tangible and intangible, (2) business extra expense. Government legislation will be needed to ascertain to what extent data can be considered as tangible asset. This is necessary to assist insurers quantify damage to data when it occurs.

Property losses can also occur when an organisation's intangible or intellectual property is infringed or violated. Copyrighted materials can be copied without permission, trademarks can be infringed upon or diluted, and patented property or ideas can be stolen. In a competitive knowledge based world, a firm's intellectual property is its most valuable asset as such needs to be protected.

There is also the element of time loss due to business interruption and service interruption losses. Business interruption losses may result from the inability to access data, the theft of data, or a threat to the integrity of the database. Necessitating that the system be shut down for assessment. Business interruption may have several consequences such as loss of income, extra expenditure to recover, loss of customer, partner and shareholder confidence and ultimately reduced market share.

Third parties harmed by the denial of service may sue, adding liability losses to first-party damages. In some cases, business interruption may constitute a breach of contract. According to Lee, service denial may cause a customer business interruption, network suspension, or a disruption in or delay of services. Service denials may result in damage claims or lawsuits for breach of contract.

3.2.4 EXPENDITURE INCURRED BY ORGANISATIONS DUE TO BUSINESS INTERRUPTIONS

In the event of an interruption, a business may incur extra cost to resume operations as quickly as possible. Extra expense coverage is for those costs incurred by the policyholder in excess of the normal costs that would have been incurred to conduct business during the same time had there not been any loss or damage. In mobile commerce, costs may range from insurance, including additional costs of operating websites from alternative servers, costs of operating web sites through alternative providers, costs to repair web sites damaged by hackers or equipment failures to costs of rebuilding other lost information. Thus, various security risks arising from a combination of issues deserve a closer scrutiny for assessment of an organisation's IT requirements in order to facilitate a secured financial transaction

CHAPTER 4

M-COMMERCE MODELS

4.1 M- COMMERCE MODELS

These are business models informing how an SME or any business entity intends to generate money from its business operations. The setting up an e-commerce solution mainly involves creating and deploying an e-commerce site. These models can also help a business identify the most cost effective means of payment for services delivered.

The first step in the development of an e-commerce site is to identify the e-commerce model.

Depending on the parties involved in a transaction, e-commerce can be classified into different models. These are Business – to – Business (B2B) model, Business – to – Consumer (B2C) model, Consumer – to- Consumer (C2C) model, Consumer – to – Business (C2B) model, Government –to- Government (G2G) model, Government –to- Customer (G2C) model and Customer – to – Government (C-2-G), Business-to-Government (B2G) model, Government-to-Business (G2B)

4.1.1 BUSINESS-TO-BUSINESS (B2B) MODEL

The B2B model involves online transactions for making orders, purchasing and also administrative tasks between businesses. It includes trading goods such as business subscriptions, professional services, manufacturing, and wholesale dealings. Businesses do not necessarily need to have a physical presence.

A typical example is alibaba.com. Ampe is a tablet manufacturing company in China. It manufactures and sells tablet computers. Rlg is another company that assembles tablet PCs. Rlg finds Ampe to be a suitable business entity and therefore decides to make a purchase. Rlg would then have to send a request for more information about Ampe. Ampe sends quotations to Rlg. It is satisfied with the information collected and therefore decides to make a purchase. To do this Rlg makes an order on alibaba.com. After Ampe receives the order details, it validates the information. As soon as the order is confirmed, the payment procedures are settled. Ampe finally sends an acknowledgement of payment to Rlg and delivers the goods as per the shipment details decided between the two companies. This model provides for the efficient movement of supply chain and manufacturing processes. It also makes it possible to automate business processes in order to facilitate the fast delivery of the right products and services.

4.1.2 BUSINESS-TO-CONSUMER (B2C) MODEL

The B2C model involves online transactions between the business and consumers. It applies to any business selling its products or services to consumers over the web. The sites of these businesses display product information in an online catalogues and a database used to store the information.

This is exemplified in the business of the West African Examination Council (WAEC). WAEC displays a variety of courses to be undertaken by the student (Customer) .The detailed information of all their courses is contained in the huge catalogues maintained by WAEC. A student who desires to rewrite a paper registers and logs on to the site of WAEC and selects a course he/she wishes to rewrite from the course catalogue. The student also gets the detailed information about the courses and their respective costs including centres and dates of examination. Finally, when he/she decides, the registration for the courses is done and upon completion of registration an invoice is generated. The student decides to pay via the bank or using credit card. If the student decides to make payment using the visa card, the student’s credit card information is then validated by WAEC and stored in their database. Upon verification of the information the registration is processed and the transaction completed. This model is however susceptible to security threats because the student provide credit card and personal information on the site. Some consumers doubt the security of these model as such a robust security mechanisms that can guarantee a consumer’s information is needed.

4.1.3 CONSUMER-TO-CONSUMER (C2C) MODEL

The C2C model involves online transaction between consumers. In this model, a consumer sells directly to another consumer.

Google trade permits a consumer to advertise and sell their products online to another consumer. However before a customer can transact business on google trade, the consumer need to register using a gmail account. No fee is charge by google for business transaction occurring between the consumers. Some websites such as eBay charge fees for these services though. This platform provided by google has made it possible for individuals to sell items they no longer need and wish to dispose off, most often at cheaper prices. A waakye seller can also use this model as a means of receiving payment using mobile money.

4.1.4 CONSUMER-TO-BUSINESS (C2B) MODEL

The C2B model involves the online transaction that is conducted between a consumer and a business. This model is similar to the B2C model, however, the difference is that in the case of the C2B, the consumer is the seller and a business organization is the buyer. Under this model, the consumer decides the price of a product or service and not the supplier.

Ghanajobs.com is another example of this type of model. In this model, a consumer can post his bio-data for the services he can offer. Any company interested in employing the consumer contacts him for his services. The consumer negotiates the price of the services to be rendered. The business agrees to pay or turns it down. The Utility companies can use this model as a means of receiving payment for services.

4.1.5 GOVERNMENT-TO-GOVERNMENT (G2G) MODEL

This model involves the online transactions between two governments.

This is demonstrated in the purchase of crude oil by the Ghanaian Government from the Government of Nigeria. The value of the transaction in this model is extremely high and requires a high level of security. Deals under this model, are normally sealed face to face.

4.1.6 GOVERNMENT-TO-CONSUMER (G2C) MODEL

In this model, the government transacts with an individual consumer who normally is a citizen. However, this form of transaction can occur between a government and the citizen of another country. A government enforcing laws concerning tax payments on individual consumers over the internet is an example of the G2C model.

4.1.7 CONSUMER-TO-GOVERNMENT (C2G) MODEL

In this model, an individual consumer interacts with the government.

For example, a consumer (a citizen, expatriate or investor) can pay his income tax, IRS or VAT online. The transactions involved in this case are an example of C2G transactions.

4.1.8 GOVERNMENT-TO-BUSINESS (G2B) MODEL

This model involves transactions between a government and a business. A government can require that a business files it tax returns via the internet or request that tenders from various contractors for a project be made online.

4.1.9 BUSINESS-TO-GOVERNMENT (B2G) MODEL

In this model, the business entity transacts with the government over the Internet. Just as an individual consumer can file tax returns, a business can also pay its IRS, VAT and income taxes via the internet.

Based on the above analysis, the following models will be appropriate for the operations of SMEs and these are Business-to-Government (B2G) model, Government-to-Business (G2B) model, Consumer-to-Business (C2B) Model, Business-to-Consumer (B2C) Model and Business-to-Business (B2B) Model.

CHAPTER 5

CONCLUSION

It can be concluded therefore that m-commerce deployment is a critical developmental issue especially for a developing country like Ghana. A developmental issue requiring high level of investment to provide adequate infrastructure as well as appropriate legislation not limited to consumer protection, security of transactions, privacy of records and intellectual property in order to fully harness the opportunities m-commerce offers to a country. These legislations would seek to mitigate the risk involved in online transactions as well as increase the citizens’ trust and confidence in mobile technology and also adequate infrastructure to make mobile transactions more efficient, effective and reliable.

In addition, SMEs should realise that employee’s and other users of mobile devices are susceptible to risk due to disclosure of sensitive information relating to customer’s personal information. Providers of mobile services need to be aware of their ethical responsibilities to avoid potential abuse. There is no quick rule as to protecting all parties involved in m-commerce transaction usage; however the use of evaluation techniques should be able to mitigate against risk and subsequently save an SME from litigation.

All of these factors are to be taken into cognisance when formulating policies which will serve as the framework within which business strategies and technologies will operate.