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Mobile Devices into Information Systems: risks, facilitating factors and benefits

Alberto Carneiro

Abstract - This article intends to contribute to a better understanding of the mobile devices roles in information systems and its contribution to communications processes as a systemic competitive weapon. The main objective of this research has been to explore the evaluation of risks, facilitating factors, and benefits of mobile devices in small medium sized enterprises (SME). The results indicate that many SME are encountering significant benefits from the use of wireless technologies as other sectors of the economy, however they recognize that risks should be taken into account. Further empirical work will be required in order to appreciate executive's opinions, managerial implications, and to evaluate their statistical meaning. The major factors are discussed and directions for future research are suggested.

Index Terms - Mobile devices, risks, facilitating factors, benefits.

——————————  ——————————

1. INTRODUCTION

In the respective architecture, information systems include connections with different methods of communication, namely the use of mobile devices, which have recently become ubiquitous and offer easy connections to the different components of information systems. The use of wireless networks and mobile devices is growing. From the
1990s onwards, methods of doing business have had a great shift with the emergence of the electronic commerce (e- commerce). Advanced and mature wireless and mobile technologies facilitate organizations relationships conducted from a wired network to a wireless network. Users can simply use some mobile handheld devices such as Personal Digital Assistants (PDA) and mobile phones to conduct various e-commerce activities. The market for mobile technologies has seen significant growth in the past few years [1], [2].
The safe and efficient use of mobile devices can contribute to the competitive advantages of organizations. To be able to achieve the benefits offered by information systems, organizations have to overcome many risks, specially the issue of information security. Organizations may strengthen their credibility by increasing security levels and reducing the possibility of malicious intrusions and unauthorized access to their private data and information systems. Risks are also embodied in security and web site concerns, new types of payments, cost of technology; and related issues of technological innovation [3], [4]. Lastly, overcoming the risks and achieving the benefits of mobile devices is only possible through identifying essential success factors.
Many mobile devices allow a connection to the Internet and thus, users can have access to organizational information systems and perform data transfers. For some companies this connection provides benefits because some of their employees can work in virtual situations. However, it is also negative because it allows an intruder has access to information systems. Generally, mobile devices have a lot of information, including data needed to access domains and servers. Thus, an intruder can eavesdrop on the communication between a device and the information
system of an enterprise, if he penetrates the mobile device while it is connected to the internet.
Due their benefits in what concerns data flow, it is needed to face factors (facilitating factors) that may facilitate the presence of mobile devices into information systems. The major facilitating factors of mobile devices include general habits, more personalized communication with customers, and functional and user-friendly web site [5], [6]. However, these devices present serious risks. To be successful and benefit from mobile devices, organizations must recognize and then overcome the risks and challenges. When an employee uses the mobile device outside a secure information environment, for example, when there is a connection to the internet, the possibility of intrusions in the information system and unauthorized access to data increases. There are several ways of making calls and transferring data using mobile devices. It is essential that users be convinced that whenever a connection is established, there is an increased vulnerability and this poses a risk to information systems of their organizations. Other researchers highlight the problem of the misuse of communication systems and the need for appropriate legal controls to ensure information security and integrity [7].
In the transition from the industrial to the information age, mobile devices offer considerable benefits for new players who are ready for proactive action [8]. The use of electronic billing systems provides personalized service to customers leading to increased satisfaction and loyalty [9]. Nevertheless, organizations have to demonstrate perfect rationality regarding their valuation of risks and benefits regarding mobile devices disclosure.
The paper is organized as follows. In the next section, a brief literature review of the related problems is provided. In section 3, the methods of research used in the study are described. In section 4, the results of this research are discussed. Finally, further steps and some conclusions are presented in the last section.

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2. INFORMATION SYSTEMS AND WIRELESS

TECHNOLOGY

2.1 Mobile Devices in Business and Social Life

Currently companies have a high level of connectivity between sales teams, back-office, managers, suppliers and customers. Direct communication with several markets and business partners can be accomplished in several ways using native or Web-based applications, which enables personalized and faster processes.
The new developments in mobile technology offer the prospect of improved access to information wherever the user may be. This includes not only the provision of higher data transfer rates to support access to multimedia information (especially by upcoming technologies such as Universal Mobile Telecommunications System - UMTS) but also new developments such as the introduction of location awareness [10]. There are various techniques that are currently being tried out by network providers with different degrees of accuracy associated with them. The simplest of these depends on the cell id of the nearest transmitter and systems based on this approach are already operational. However, the accuracy of such systems is dependent on cell size, which can be quite large. More sophisticated techniques provide increasing accuracy but rely on specialized hardware and changes to the mobile devices.
When companies started using mobile wireless communications devices, the difference between internal and external world information systems has become less defined. Currently, the vast majority of people and companies can communicate over the internet and transfer data. Furthermore, access to private, sensitive or critical information became simpler, requiring a more careful attention to security policies and protection mechanisms, namely the monitoring of network traffic.
Although computer security is in constant development and there are some advances successfully, companies do not have definitive and fully secure solutions in order to protect their information systems from cyber criminals. Some companies can minimize risk aided by hardware implementation that specifically monitors the potential dangers that Internet traffic might bring [11], and intrusion prevention / detection systems in order to avoid attacks on information systems [12]. Some companies that are developing safety software are already providing advanced safety software for mobile devices [13] and firewalls, which monitor Internet traffic on the mobile device and the information system [14]. There is software that helps companies to prepare their own safety guidelines in what concerns the use of mobile devices [15]. Employees usually have passwords to wireless networks [16]. Some corporations implemented their own rules for maintaining information security in the process of acquiring the ISO
27001 certificate [17], [18].
Mobile devices may be present in four communication
channels, where they present their benefits but also reveal
its risks. About these four channels it is convenient to
remember the following:
• Instant Messenger (IM): results from the simplification of Internet Relay Chat, and allows two or more people have a conversation in real time, sharing text messages. The use of this channel contributes to various social relations [19], [20], [21]. In personal and professional life, there are many reasons to explain the high frequency of this communication channel [20];
• Short Message Service (SMS) or text messages.
This channel started being used in 1992. SMS
messages are characterized by their speed, ease
and reduced price [22]. Moreover, is more
private than using e-mail [23], and enables social
and professional networking relationships;
• Mobile phone calls: there are millions of mobile
devices users [24]. Some research into the
reasons for the use of mobile phones has been
held and it is already known that they are
essential for social, professional and even for
some parental control [25]. For the vast majority
of people, the mobile phone is an essential tool
in almost every facet of their lives [26];
• Email: This form of communication is now
widely used in business communications and its
rapidity facilitates the processes between
business partners. Investigations on e-mail show
that contacts between people are more open and
uninhibited, allowing wider circles of
communication [27] and enable the
development of relationships [28].

2.2 Risks of Information Security

The business world has understood very quickly that mobile devices are a useful tool for companies, suppliers and customers. For this reason, the wireless communications industry strives to find ways to mitigate the risks associated with their use [29].
The loss and / or theft of mobile devices is a clear security threat to personal safety and to accumulated data [30], since mobile devices are widely used in business.
There is some complexity in the types of risks associated with mobile devices. For this reason and to achieve a better risk management, it is necessary for security professionals to fully understand the various concepts, including the following:
• Lost or stolen devices – Surely, companies that are concerned with security policies of information systems should consider this loss as a serious threat. Often these devices contain confidential data relating to business affairs and contacts with customers and therefore cannot suffer possible intrusions or unauthorized access. Naturally, the higher number of mobile devices is proportional to the increase in risk;
• Mobile malware – The possibility of applications that allow access to data and other information system resources increases the likelihood of this risk. In the field of computer security, companies can create ways to limit access to applications and

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prevent intrusions. However, malware authors are always developing new techniques of infecting devices;
• Advanced Threats – In order to prepare their reactions to incidents and disasters caused by cyber adversaries when performing network attacks, companies need contingency plans drawn up in detail. In what concerns protection mechanisms, organizations implement intrusion detection systems (IDS) and other tools to detect suspicious activities. However, and with regard to the traffic on mobile devices, it is very difficult to track the possible problems of these threats;
• Software Vulnerabilities – The evolution of technologies in relation to operating systems can be faster than the creation of new protection mechanisms. Due to jailbreak and rooting, mobile devices can become vulnerable to outside attacks. Sometimes, some users fail to realize that their mobile devices are jail broken;
• End-user Behavior – This means that users may not have the necessary care regarding how they use their mobile devices. It is necessary to consider that the cloud-based storage for organization data has a significant risk. In addition, users can inadvertently download an application that contains crime ware, enabling access or theft of confidential data. Since companies do not have full control over the behavior of their employees, allowing the use of their personal mobile devices can also mean a risk to consider;
• Compliance and Legal Issues – Risk management
in business and user privacy can be affected by the
introduction of personal and professional
information in a single device. Enterprises must
understand the risks they take when they use the
practice of BYOD (By Your Own Device) because
the existing law prevents companies retain mobile
devices if an employee turns off the organization.

2.3 Facilitating Factors for Adoption

These are factors in the environment that users perceive as making an act easy to do, including providing technical and computer assistance [31]. Internal organizational training and technical support are significantly associated with adoption behaviors among clinicians, nurses in particular [32], [33] and also physicians [34]. In addition, technical issues such as poor connectivity were perceived as barriers of adoption, and health professionals believe that supported technical improvement would improve their adoption intention and/or actual use. Furthermore, Hsiao et al also showed that external suppliers’ support is a significant predictor of attitude. Hence, the external environment (outside of the users’ organization) also constitutes a significant adoption factor, specifically through external business competition [32], [33], and trends of use of the technology (i.e. smartphones, PDAs, etc.) in the market [33]. The internal organizational needs were also associated with adoption [32]. One study, however, found
that the hypotheses for technical support and training effects on the perceived usefulness and perceived ease of use were not supported [35].
Facilitating conditions become important in technology adoption, can influence user’s attitudes and behavioral intention, and includes variables such as system service, quality, and cost [36]. Some research shows that in education [37] and in organizations, the use of mobile devices is supported by a range of factors, including:
• Portability – these devices are small in physical size;
• Connectivity – These devices allow various forms of connections due to its communication technologies that are built-in or add-on (infra-red port, bluetooth, WLAN, mobile phone);
• Functionality – there are a varied number of functions that they can perform (address book, calendar, to-do list, memo pad, e-mail client, Web / WAP browser, flash and audio player);
• Capacity – they present an internal memory with
essential applications already installed and it
would be possible to install other applications;
• Ease of use – these devices present an user-friendly
interface;
• Low additional costing – they can work with
freeware applications and trial versions of
shareware.

2.4 Benefits of Mobile Devices

Mobile technology offers many benefits, even in the professional field, for example, allowing an employee to work for his/hers company at home or while traveling. Moreover, the evolution of cloud computing is positive for the use of mobile devices because supports more flexible working practices by offering possibilities for communication and other services over the internet.
Mobile technology solutions may include mobile infrastructure, access to website and/or application development, marketing solutions, communication solutions, software management solutions, and many other positive procedures.
Mobile technology has created a new dimension of computer technology as a support of marketing processes. Potential customers can now have business ads on mobile phones through a wide variety of mobile marketing technologies, including: SMS (text), mobile websites, mobile apps, and other techniques. The integration of mobile devices such as laptops, tablets, PDAs and smartphones, along with its various applications and software, facilitates collaboration between workers and firms so that they can communicate clients and suppliers. The development of mobile technology enables customers to have an interactive and more direct role in the performance of companies.
Mobile Accessibility - In the field of business and organizations relationships, accessibility is one of the major benefits of using mobile devices. Businesses may continue even when managers and other employees are not present in the office. Thus, communication is at the center of operations and management decisions, which may create

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competitive advantages and ensure continuous support of
information systems for performance of companies.
Mobile Internet - The possibility of a permanent internet
access has a high value for enterprise management. Laptops
are not always available. The use of mobile phones with
internet access allows that there is a constant connection
between the company's employees and its customers. This
possibility highlights huge advantages, especially when
those employees are not in their normal working hours, but
need to receive or provide important information to close a
deal. Moreover, it allows quick access to the internet to
confirm events, analyze data and obtain other necessary
information.
Organization / Structure - The level of organization and
structure is another important advantage that mobile
phones can offer in the business world. Entrepreneurs,
managers and representatives can have all of their valuable
contacts’ information, including names, phone numbers,
electronic and physical addresses in only one small device.
Mobile phones also offer programs that allow users to
organize and plan their day in order to successfully
maintain productivity levels and achieve predefined
objectives.

TABLE 1

Risks

Device loss or theft

Loss of data

Lack of privacy

Unauthorized access to confidential data

Greater number of threats in the network

Deliberate software attacks

End-user Behavior

Internet risks (worms, spoofing, spam, denial of service, etc.)

Mobile Malware

Security flaws in software

TABLE 2

Facilitating factors

3. RESEARCH

The purpose of this research was to explore the potential of mobile devices as a tool to increase the strategic value of information systems. More specifically to identify:
• The risks of mobile devices;
• The facilitating factors of mobile devices; and
• The benefits of mobile devices offered to the
strategic use of information systems.
This study examines the evaluation of risks, facilitating
factors, and benefits of mobile devices and their importance
in the field of information systems in SME. A sample of 276
SME, through managers (top and middle level) was sent a
mailing. This sample was selected from SME located in two
towns: Lisbon and Setubal. This questionnaire was
designed in order to understand: 1) how subjects evaluate
the importance of mobile devices variables; 2) how they
perceive their own positions facing the use of mobile
devices and finally 3) the connection between their
management roles and mobile devices.
According to a previous exploratory study involving

3.1 Research Method

TABLE 3

Benefits

eighteen managers, a set of variables were grouped by
risks, facilitating factors and benefits. Tables 1, 2 and 3
show the ten key variables in each group.
According to this initial appreciation, respondents were
asked to evaluate the use of mobile devices in what
concerned these variables. For each of those elements,
respondents indicated how much they valued them and the
answers were scored on a Likert scale, ranging from 0
indicating "no impact" to 5 indicating the "greatest impact".
The resulting data were statistically discussed. One
hundred eighty eight (127) usable responses (86 middle
managers and 41 top managers) were received, yielding a
response rate of 46 percent.
The compiled data from the study were analyzed using
SPSS, the tests conducted were:
• Sign tests: performed to establish if there was a
significant difference between the anticipated and

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identified risks, facilitating factors, and benefits of
mobile devices in the various participating
organizations;
• Rank order: a comparison of rank orders was used
to establish the differences in importance of

TABLE 5

Top 10 facilitating factors of mobile devices

Sign

encountered risks, identified risks and achieved

Rank Facilitating factors Median

T. /

Signif.

1.000

eighteen managers, 276 questionnaires were sent and 127 usable responses were received providing an overall response rate of 46%.

4.1 Rank Order and Sign Test Results

The results of the Sign Test and Rank Order for risks of mobile devices in the SME are presented in Table 4.

TABLE 4

Top 10 risks of mobile devices

Signif.

1 Device loss or theft 3.50 .633

2 Loss of data 3.00 .578

Table 5 indicates that the most commonly identified facilitating factors in the industry include “More personalized customer service”, “Portability”, “Connectivity”, “Internal organizational training”, “Technical support”, “External environment”, “Internal organizational needs”, etc. The results of the Sign Test and Rank Order for benefits of mobile devices in the SME are presented in Table 6.

TABLE 6

Rank Benefits Median Sign T. /

Signif.

Faster access to critical

3 Lack of privacy 3.00 .252

Unauthorized access to

confidential data 3.00 1.000

1 information for better decision making

3.00 .498

5 Greater number of threats

2 Competitive advantage 3.00 .061

in the network 3.00 .247

6 Deliberate software attacks 3.00 .221

7 End-user Behavior 3.00 .633

Internet risks (worms,

3 Interactivity with colleagues and hierarchy

4 Increased employee productivity and lower cost

3.00 .125

3.00 .372

8 spoofing, spam, denial of service, etc.)

3.00 1.000

5 Interactive order processing

3.00 .183

9 Mobile Malware 3.00 .678

10 Security flaws in software 2.00 .227

6 More time for customer

value-added work

7 Make better use of the

3.00 .031

ERP solution 3.00 1.000

8 Reduced operation costs 3.00 .372

Table 4 suggests that the most frequent risks encountered in
SME are “Device loss or theft”, “Loss of data”, followed by

9 Checking stock levels via the office network

Ability to monitor project’s

3.00 1.000

“Lack of privacy”, “Unauthorized access to confidential
data”, “Greater number of threats in the network”,
“Deliberate software attacks”, etc. The results of the Sign
Test and Rank Order for facilitating factors of mobile
devices in the SME are presented in Table 5.

10 progress 3.00 .018

Table 6 indicates that among the most achieved benefits in the industry are “Faster access to critical information for better decision making”, “Competitive advantage”, and “Interactivity with colleagues and hierarchy”, “Increased employee productivity and lower cost”, “Interactive order processing”, etc. To identify the differences between the evaluations of top managers and middle managers, the rank orders were computed. Tables 7, 8, and 9 presents rank orders for top 10 risks, facilitating factors and benefits in both groups (top and middle managers).

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TABLE 7

Rank Order of top 10 Risks (Top and Middle

Managers)

1 Device loss or theft Device loss or theft

2 Loss of data Deliberate software

TABLE 9

Rank Order of top 10 Benefits (Top and Middle

Rank Top Middle

attacks

3 Lack of privacy End-user Behavior

1 Faster access to critical information

Competitive advantage

4 Unauthorized access

to confidential data

5 Greater number of

threats in the network

6 Deliberate software attacks

Unauthorized access

to confidential data

Internet risks

(worms, spoofing, spam, denial of service, etc.) Mobile Malware

for better decision

making

2 Competitive

advantage

3 Interactivity with colleagues and

Interactivity with colleagues and hierarchy

Faster access to critical information

for better decision

7 End-user Behavior Lack of privacy

hierarchy

making

8 Internet risks

(worms, spoofing, spam, denial of

service, etc.)

Greater number of

threats in the network

4 Increased employee productivity and lower cost

5 Interactive order

Increased employee productivity and lower cost

More time for

9 Mobile Malware Loss of data

customer value-

10 Security flaws in software

TABLE 8

Security flaws in software

processing

6 More time for customer value- added work

7 Make better use of

the ERP solution

8 Reduced operation costs

9 Checking stock levels via the office network

added work

Make better use of

the ERP solution

Reduced operation costs

Ability to monitor

project’s progress

Checking stock levels via the office network

Rank Order of top 10 Facilitating Factors (Top

10 Ability to monitor

Interactive order

and Middle Managers)

Rank Top Middle

project’s progress proc es sing

1 More personalized customer service

Portability

4.2 Kruskal Wallis Test

2 Portability More personalized

customer service

3 Connectivity Functionality

To establish whether the differences for the risks, facilitating factors, and benefits in top managers in

4 Internal

organizational

training

Internal

organizational needs

comparison with the opinions of middle managers were statistically significant, the Kruskal-Wallis test was

5 Technical support Connectivity

6 External environment Functionality

performed. Coinciding with the results of semi-structured

7 Internal organizational needs

Internal organizational training

interviews with managers (top and middle) in eighteen

companies prior to this study in 276 SME, most participants

8 Functionality Low additional costing

9 Ease of use Technical support

were at the same stage of using mobile devices and,

therefore, very similar opinions were obtained.

10 Low additional costing

Ease of use

4.3 Correlation Analysis

Since these variables are considered as important to give a sight over the adoption of mobile devices, it would be adequate to evaluate the correlation among them. The correlation analysis indicated that a number of factors were correlated as well as statistically significant. In Tables 10 and 11 only statistically significant and logical correlations are presented.

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TABLE 10

Correlation between risks and facilitating factors

Risks Facilitating factors Sig. Device loss or theft Portability .012

Lack of privacy Connectivity .015

organizational needs, functionality of mobile devices, and others (Table 2).
• The major benefits of mobile devices achieved in this sample in SME field are: faster access to critical information for better decision making, competitive advantage, interactivity with colleagues and hierarchy, increased employee

Loss of data More personalized customer service

.037

productivity and lower cost, interactive order
processing, more time for customer value-added

Greater number of

threats in the network Functionality .033

work, the possibility of making better use of the

Deliberate software attacks

Internal organizational needs

.043

ERP solution, reduced operation costs, the
possibility of checking stock levels via the office

Unauthorized access to

confidential data

Mobile malware

Technical support .034

Internal organizational

training .039

TABLE 11

network and ability to monitor project’s progress
(Table 3).
• Many organizations appeared to be using their
Web sites and mobile devices as to communicate
with present customers and some of them try to
reach potential customers. The strategic power of
mobile technology has to be highly correlated with
SME competitiveness. The rapid pace of adoption
and advancement of mobile devices creates

Correlation between facilitating factors and benefits

Facilitating factors Benefits Sig.

opportunities for innovative services and better relationships.

More personalized customer service

Faster access to critical information for better decision making

.033

• From an academic perspective, this study
represents an approach to examine the use of

Portability Competitive advantage .018

Increased employee

mobile devices in SME activities and appreciate
managers’ assessment about the way how mobile

Functionality

Internal organizational needs

productivity and lower cost

Interactivity with

colleagues and

hierarchy

.031

.029

devices can support a number of activities and
should faced as components of information
systems architecture.

Ease of use Competitive advantage .049

5. CONCLUSIONS

Internal organizational

training

Connectivity

Reduced operations

costs

Faster access to critical information for

better decision making

.018

.026

This study provides insights to how SME managers evaluate the use of mobile devices as components of their information systems and identify risks, facilitating factors

Technical support More time for customer value-added work

Make better use of the

.049

and benefits of mobile devices. It facilitates also a better
understanding of making-decision process in what

External environment

4.4 Discussion

ERP solution .029

concerns the possibility to exploit its benefits while keeping
the need to protect the information assets and the
effectiveness of their countermeasures.
The findings from this research can be used as a guide in
successful adoption and implementation of mobile devices
This paper argues that organizations involved in mobile
devices have to be aware of challenges, facilitating factors
and benefits in order to be successful in mobile devices
nowadays. The main findings from this research include:
• The major risks of mobile devices encountered in
this sample in SME field are: device loss or theft,
loss of data followed by lack of privacy,
unauthorized access to confidential data, greater
number of threats in the network, deliberate
software attacks, and others as can be seen in table
1.
• The major facilitating factors of mobile devices
identified in the sample are: more personalized
customer service, portability and connectivity of
mobile devices, internal organizational training,
technical support, external environment, internal
in companies that are starting to engage in this new way of
conducting businesses. Although this research addresses
SME, the nature of mobile devices is such that it is global
and should be applicable to organizations over a much
wider scope. Consequently, the results reported here
represent an important step forward in unraveling the
complicated communication network where wireless
technology is present.
Limitations: These results should be interpreted in light
of some limitations. First, the sample size is limiting the
generalization of findings. Moreover, it does not permit the
comparison between SME from different industries. A
second limitation arises because it was not possible to
differentiate the users of mobile devices and its relationship
with external and internal organizational information
systems. A research strategy that may overcome this

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limitation is to conduct further studies in which these variables and their relationships may be considered and also the extent to which managers can focus on the value and security of mobile devices in the context of competitive decisions and daily business processes.
Directions for future research: it should attempt also to incorporate improved differences between internal and external information sources relating them with a better utilization of mobile devices. Because the measures used in this study represent general opinions and attitudes, researchers have to be cautious about interpreting these results as indicative of causal relationships between dependent and independent variables. Finally, future research on managers' attitudes facing the linkages between strategic management and wireless technology may have to examine carefully the evolution of the use of mobile devices as a common effort to support adequately strategic communication with markets and business partners.

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