A Study of e-trading System over Mobile Applications

, pp. 55-64 http://dx.doi.org/10.14257/ijseia.2014.8.8,06 A Study of e-trading System over Mobile Applications Cheol-Woong Lee 1, Jong Wook Kim 2 and Sae-Hong Cho 3 1 Dept. of Digital Culture Technology & Contents, at Hansung University 389 Samsun-Dong 2-Ga, Sungbuk-Gu, Seoul, Korea 2 Dept. of Media Software at Sangmyung University 20-Gil, Hongji-dong, Jongno-gu, Seoul, Korea 3 Dept. of Multimedia Engineering at Hansung University 389 Samsun-Dong 3-Ga, Sungbuk-Gu, Seoul, Korea 1 cyber@hansung.ac.kr, 2 jkim@smu.ac.kr, 3 chosh@hansung.ac.kr Abstract The developments of information technology and hardware devices have expedited the information society and changed the IT paradigm. From PC to internet to mobile and to smart era, the change of paradigm has expanded the ubiquitous mobile platform. The exchange of data and information recording through mobile devices has become possible at anywhere, anytime. This paper focuses on the effective application of electronic commerce which highly relies on the data s reliability and importance to mobile application platform. It also proposes effective use of the uniform mobile e-marketplace system model through analyzing electronic commerce process and its problems. Keywords: e-marketplace, mobile app, mobile platform, e-trade system, mobile system 1. Introduction With the development of information technology, IT devices such as tablet pc s, smartphones are widely used as ubiquitous items. Mobile devices, especially, are rapidly changing as they are adapted faster than other devices. Despite their portability, its specifications are fast approaching to those of laptop and other PC devices. Thus, the society is focusing on its limitless possibilities. Mobile platform and applications have basic computer compositions of processor, memory and operating system and support varying inputs such as sound, image, touch, gestures and location services. Furthermore, it also have real time wireless network access through wireless communication and bluetooth. The development of technology has also impacted the industry. It also have proposed limitless possibilities as a new paradigm to overcome the limits of time and space in international trading industry. Therefore, electronic commerce has grown exponentially and created new online trading industry called e-marketplace. E- marketplace has escaped the idea of commercing at offline where the buyer and seller are at same place at the same time and created new online trading system, B2B e- marketplace, where numerous buyers and sellers can execute trades and B2C e- marketplace between consumer and sellers. E-marketplace have reduced the distribution stage and the transaction costs. It also manages all transactions with computer allowin g utility and transparency. Relationships transparency, reduction of transaction costs and excessive materials and changing of work processes, increase in transactions, reduction of marketing price and much more market information are its benefits. Howeve r, e- ISSN:1738-9984 IJSEIA Copyright c 2014 SERSC

marketplace is based on the web system and is not preparing for the mobile platform system. Ubiquitous mobile devices overcome the limits of time and space and provide free electronic commerce environment. This paper uses application on mobile platfor m system and studies e-marketplace to provide basic model. This paper is consisted of as follows: In Section 2, we provide theoretical backgrounds for this paper: First, we define the mobile application, and sort various mobile application platforms. Then, we describe the types and characteristics of mobile applications. Finally, we present the concept of e-marketplace including definition, characteristics, and supporting systems. In Section 3, we propose a mobile e-marketplace application system based on the e- marketplace business processes. Finally, we conclude this paper in Section 4. 2. Theoretical Background 2.1. Defining Mobile Application Mobile Application is widely called as App and is designed to operate in mobile devices based on mobile operating system (mobile OS) to improve mobile devices. It was first introduced in 2007 by Apple and expanded with the development of smartphone and tablet PC. Mobile applications are provided from the App Store (online contents store) and exist on different platforms mainly Apple s ios and Google s Android. 2.2. Mobile Application Platforms Mobile software platforms are middlewares and applications based on operating systems and provide different services to consumers. They are either open system for developers API or open source system that provides source code. API platforms include Symbian, Windows Mobile, iphone OS and open source system includes Linux based LiMo and Android. Table 1 shows the current situation of mobile software platform. Table 1. Status of Mobile Software Platforms LiMo (Linux Mobile) LiMo Foundation based on open source was created by 32 companies such as Samsung Electronics, LG Electronics, NEC and Vodafone in January, 2007. It created LiMo to reduce the price and length of developing cell phones. It is based on the open source system and have separate modular, plug-in and hardware system to safely operate applications. It has benefits of easily distributing developed applications as the source code is freely distributed. 56 Copyright c 2014 SERSC

Android In November, 2011, Google created Open Handset Alliance with many other mobile companies and announced Android. Open Handset Alliance members are composed of Mobile Communication Companies, phone companies, software providers, semiconductor producers. Android includes applications created by Java language, operating system and middleware. It opens its Android source so that everyone can use Android without limits. iphone OS iphone is developed and sold by Apple. It is first released in 2007 and kept upgrading. ios has basis on Mac OS X which has its basis on mach used by OPENSTEP and unifies the BSD and NetBSD technologies. It is similar to UNIX system. Windows Phone7 Symbian Windows Phone 7 has improved its touchscreen system by disregarding the stylus and applications are based on Silverlight and.net. Unlike previous systems, applications can be only sold after Microsoft approves them. Nokia s Symbian was released in February, 2010 through an open source system. Nokia, NTT Docomo, Sony Ericsson created Symbian Foundation and are developing Symbian platform. Symbian s Kernel have micro kernel system and provide real time scheduling function. Blackber ry Blackberry is the most popular platform in the United States with easiness to send and receive e-mail; it is most widely used after Symbian. Blackberry OS is created by Blackberry and provide multitasking, MIDP and WAP. It also supports syncing with Microsoft s Exchange server, Lotus Domino s email system and Novell s Group Wise. 2.3. Types and Characteristics of Mobile Applications 2.3.1. Web App Web App is a website specifically designed for smartphones through using developing tools, design and web technologies used for website. It can be developed on different operating system and be specifically developed for each mobile device. It doesn t require users to install anything on smartphones nor use mobile markets. Any users with phones that have web browsing functions can access URL. It can also be fixed real time as only web file needs to be fixed. A noticeable benefit of Web App is that a developer can use his/her current developing tools. On the other hand, a Copyright c 2014 SERSC 57

developer can experience difficulties in developing a detailed UI because HTML 5 is used in processing. Web App s benefits and weaknesses are shown in the Table 2. Table 2. Web App Features [5] Types Benefits Descriptions - Web Developers can use the current developing tools - Using original web design and developing functions - Can be accessed with only web browsers - Fast developing and real time fixing of bugs. Weaknesses - Partially supporting devices hardware such as camera and GPS - Limitations on approval system. - Detailed UI development is hard due to usage of HTML 5. 2.3.2. Native App Native App is an application that uses separate programming language provided by each smartphone platform environment and SDK (Software Development Kit). Limitations exist as programming languages such as Object-C, Java, C# must be used and be on each operating systems. Unlike Web App, accelerometer, camera can be used, but developing period is longer. A distinctive advantage of native app is easy downloading process when using online commerce system. Requiring a specific operating system is one of disadvantages of native app. Table 3 shows the benefits and weaknesses of the native app. Table 3. Native apps Features Types Benefits Descriptions - Apps can be easily downloaded using online commerce system - Different hardwares can be used - Only web browser is needed to operate - Detailed UI system can be created 58 Copyright c 2014 SERSC

Weaknesses - Specific operating system is needed - With different programming language, development, compile, distribution, redevelopment periods are longer. - Approval is needed to be listed on the market 2.3.4. Hybrid App Hybrid App uses the benefits of Web App and Native App and utilizes the web standard technologies to develop Web App and distribute after changing it to Native App through Open Source Cross Framework. Open Source Cross Framework means a free developing environment where an application can be operated on different environment than one which it was created. PhoneGap, Appspresso, Titanium are famous cross framework. Web Developing Language, HTLML, CSS and Javascript, is used to create applications; hence, applications can be operated on different smartphone platforms without changing source code, but through cross framework. 2.4 Defining e-marketplace Trading e-marketplace has different definitions by researchers. Mooer and four other people define it as the online market where several buyers and sellers complete transactions [6]. Bakos has the definition of information system that exchanges products information including price between buyers and sellers [7]. Malone and other two people define it as the intermediary between many buyers and sellers to complete smooth transactions [8]. Trading e-marketplace is operated by a third party and acts as an intermediary between sellers and buyers to complete economic transactions. It can also work as intermediaries between companies without halting processes. E- marketplace s development stages are shown in Figure 1. From Batch EDI(Electronic Data Interchange) to current C-Commerce(Collaborative Commerce), efficiency of electronic business is certainly increased. Furthermore, the participants in electronic business (both sellers and customers) can have a relatively great benefit in compare with the traditional off-line markets. Batch EDI Basic E- Commerce B2B Marketplace C- Commerce 2.5. Characteristics of e-marketplace Figure 1. Development of e-marketplace Customer Increases Value, efficiency increase E-marketplace is a new business model which can create new revenue and reduce costs and time spent for purchases, production, selling, distribution and marketing. It supports a business process with many users having n:n online business model with Copyright c 2014 SERSC 59

collaboration within product development, user management and distribution. E- marketplace s business pattern, which is a process between sellers and buyers, is shown in Table 4. Basically sellers provide the basic information like the characteristics of goods and price to customers through e-catalog. Then, customers who have concerns the items start a purchasing process with sellers. Table 4. E-Marketplace Business Pattern Business Pattern e-catalog Offer Reverse offer Characteristics Seller sets the price and characteristics; buyer obtains information and purchases Buyer offers the price and negotiates Seller provides counteroffer and negotiates. E-marketplace is classified according to its types and structures. Table 5 shows e- marketplace which is classified by its types: Vertical e-marketplace and Horizontal e- Marketplace. In a vertical e-marketplace, professional information supports work processes. On the other hand, functions such as purchasing materials, distribution, managing service have important meanings in a horizontal e-marketplace. Table 5. Classification by Type Classifications Vertical e-marketplace Horizontal e-marketplace Characteristics Limited to certain industries Work process is supported by professional information Automobile, chemistry, textile industry characteristics are utilized Multiple industries can be used Functions such as purchasing materials, distribution, managing service, MRO are main focus As many sellers and buyers can utilize Table 6 shows e-marketplace which is classified by its structures: Public e- Marketplace and Private e-marketplace. Multiple sellers and buyers transact in n:n form in the public e-marketplace, while one seller can sell to multiple buyers with 1:n system or vice versa in the private e-marketplace. 60 Copyright c 2014 SERSC

Table 6. Classification by Structure Classification Public e-marketplace Private e-marketplace Characteristics Multiple sellers and buyers transact in n:n form Market power is distributed and thus can work as an intermediary Efficiency of transaction improves with an open system One seller can sell to multiple buyers with 1:n system or vice versa One company dominates the market Automobile and airline industries created with time to market s aim. 2.6. e-marketplace System Original e-marketplace system is based on system architecture that has basis on web. Original e-marketplace system s structure is shown in the Figure 2. Figure 2. B2B e-marketplace Architecture As shown in Figure 2, B2B e-market place system can be said a SOAP(Simple Object Access Protocol)-based web service. SOAP is defined as following in W3C technical report. "SOAP is a lightweight protocol for exchange of information in a decentralized, distributed environment. It is an XML based protocol that consists of three parts: an envelope that defines a framework for describing what is in a message and how to process it, a set of encoding rules for expressing instances of application-defined datatypes, and a convention for representing remote procedure calls and responses. SOAP can potentially be used in combination with a variety of other protocols; however, the only bindings defined in this Copyright c 2014 SERSC 61

document describe how to use SOAP in combination with HTTP and HTTP Extension Framework." [9] In a e-marketplace system, the processes between customer and supplier are working on e- Marketplace application. The customers' initial request represented by a query is sent to RDQL generator in an e-marketplace application. "An RDQL is a query language for RDF, which is specifically a query language for databases, able to retrieve and manipulate data stored in Resource Description Framework format."[10] Then the generated query triggers a JENA interference engine which is an essential core in an e-marketplace application. "JENA (or Apache Jena) is an open source Java framework for building semantic web and Linked Data applications. The framework is composed of different APIs interacting together to process RDF data."[11] JENA interference engine uses OWL interference rules to take care of the customer's requests. "The W3C Web Ontology Language (OWL) is a Semantic Web language designed to represent rich and complex knowledge about things, groups of things, and relations between things. OWL is a computational logic-based language such that knowledge expressed in OWL can be exploited by computer programs, e.g., to verify the consistency of that knowledge or to make implicit knowledge explicit. OWL documents, known as ontologies, can be published in the World Wide Web and may refer to or be referred from other OWL ontologies. OWL is part of the W3C s Semantic Web technology stack, which includes RDF, RDFS, SPARQL, etc." [12] In a supplier side in a B2B e-market place system, JESS interference engine, which uses business rules such as customer management rules, delivery rules, and production scheduling rules, plays a core role. "JESS is a rule engine for the Java platform that is a superset of the CLIPS programming language. The language provides rule-based programming for the automation of an expert system, and is frequently termed as an expert system shell. Rather than a procedural paradigm, where a single program has a loop that is activated only one time, the declarative paradigm used by Jess continuously applies a collection of rules to a collection of facts by a process called pattern matching. Rules can modify the collection of facts, or they can execute any Java code." [13] 3. Proposing System Web based e-marketplace overcomes the limitations of original trading method and provides new paradigm. With the fast development of technology, the era of mobile platform has arrived and original web based mobile platform is not sufficient to be applied. Therefore, new mobile platform is applied to create e-marketplace system based on mobile application. Furthermore, system to improve user information that has been problematic on web based system is proposed. Figure 3 shows an e-marketplace business process, which is typical in e-commerce system. It includes searching a market, contacting buyers, negotiating processes, contracting procedures and paying steps. Market Research Contact buyers Offer Negotiation contract Payment Delivery Figure 3. e-marketplace Business Processes 62 Copyright c 2014 SERSC

Within electronic commerce, B2B e-marketplace system takes place before the contract to negotiation and B2C marketplace takes place until payment. E-marketplace mobile application system improves the reliability of information of company and users as business process are united. The system is shown in Figure 4. Figure 4. Mobile e-marketplace Application System Mobile application improves the reliability as B2B and B2C system certify the information. Reliability among users can also improve through inputting additional information. In addition, selective information input can support payment system in B2B system. Contract can be also be in electronic format and improve original e- marketplace system. 4. Conclusion This paper proposes application system that used mobile platform which has been increasing in usage due to importance of information in electronic commerce that accentuates reliable and safe information. To do so, this paper researches the mobile platform and application s technology and characteristics to apply e-marketplace system to mobile application platform. In addition, this paper also researches the problems of e-marketplace system to improve the reliability of information and transaction through certification system and propose e-marketplace system. Based on the garnered data, system model shown in image 4 is created. This research hopes to see the increase in usage and efficiency of trading industry and electronic commerce that uses mobile platform. Acknowledgements This research was financially supported by Hansung University References [1] Pew Internet & American Life, Half of adult cell phone owners have apps on their phones, from http://pewinternet.org/ Reports/2011 /Apps-update.aspx, (2011). [2] S.H. Oh and K.Y. Kim, Trend Analysis of the operating system for handheld devices based linux system, ETRI, vol.23 no.3, (2008), pp.152-162. Copyright c 2014 SERSC 63

[3] http://www.gnustep.org/resources/openstep-spec [4] http://www.netbsd.org/ [5] G. E. Lee and J. W. Lee, Comparison Study of Web Application Development Environments in Smartphone, Journal of KOCON, vol.10, no.12, (2010), pp.155-163. [6] B. Mooer, M. Fielding, C. Wilson, A. Avanesian and P. Viljoen, E-Marketplace Pattern using Websphere Commerce, Suit Marketplace Edition Patterns for E-Business Series, IBM Redbooks, (2000). [7] J. Y. Bakos, Reducing Buyer Search Costs: Implication for Electronic Marketplace, Management Science, vol.43, no.12, (1997). [8] T. W. Malone, J. A. Yates and R. I. Benjamin, Electronic Markets and Electronic Hierarchies, Communication of the ACM, vol.30, no.6, (1987), pp.484-497. [9] http://www.w3.org/tr/soap/ [10] http://www.w3.org/submission/2004/subm-rdql-20040109/#introduction [11] https://jena.apache.org/ [12] www.w3.org/2004/owl/ [13] http://en.wikipedia.org/wiki/jess_(programming_language) Authors Cheol-Woong Lee Assistant Professor, Sangmyung University Dept. of Digital Culture Technology & Content Interest Area: Multimedia, Electric Trading System, Big Data e-mail: cyber@hansung.ac.kr Jong-Wook Kim Assistant Professor, Sangmyung University Dept. of Media Software Interest Area: Web Data Mining, Information Retrieval, DB Systems e-mail: jkim@smu.ac.kr Sae-Hong Cho Professor, Hansung University Dept. of Multimedia Engineering Interest Area: Multimedia, Virtual Reality, Big Data, Digital Contents e-mail: chosh@hansung.ac.kr 64 Copyright c 2014 SERSC