Archive | February, 2011

2011.08 | iPad as a Self Service Kiosk?

February 25, 2011 by Tim Dickey 15 Comments

I love my iPad.  It is a beautiful and elegant piece of technology that has become ubiquitous even to those outside of the world of technology and gadgets.  The simplicity of the solution and its broad appeal has lead to inquiries as to the potential of leveraging an iPad as a kiosk in a consumer facing environment.

It’s certainly possible to leverage iPad in a retail environment, and many are doing so – as electronic wine lists, for surveys, or for concierge type use for example.  While it may be tempting to use it as a replacement for a more traditional kiosk, using a consumer technology in a commercial application like unattended self service represents some challenges:

Form Factor - The iPad’s 9″ screen is beautiful clear and bright but for a self service application in a retail environment, it is a bit small.  Most screens for kiosk in consumer facing applications are 17″ and larger.  These screens where consumers can complete tasks are now competing for space with 42″ (and larger) touch widescreens mounted in portrait or landscape perspective within stores, and will increasingly play dual role as digital signage and interactive kiosk.  An iPad will be hard pressed to have visual appeal without having a bank of them.    If the units are used for any data gathering and the keyboard pops up, the real estate is now cut in half.  For many users this is fine, but a large segment of the population will find it a little cramped compared to the standard self service terminal in common use.

Audio - Many self service solutions make use of audio.  Unless users have their own headphones or another audio solution is connected, the iPad speakers will be very difficult to hear in most retail environments.

Connectivity - An important element of kiosk solutions is the flexibility to add peripherals to interface with customers in various ways.  At present, there is no  capability to connect any potential peripherals, as the iPad has only two physical ports.  That means no printer, no scanner, no imager, and no proximity solution (mat or infrared), no pinpad, and certainly no cash management peripherals.  Internet connectivity is also wireless only on the iPad.  While wireless internet is the default for all of us today, in most retail and self service, physical ethernet connectivity is still used for both security and reception.

Remote Support Capability – Any kiosk platform on the market today has remote support capability.  They generally send a heartbeat back to base to tell the support team that it is still functioning properly.  Units can call home with problems, can be remotely accessed for support purposes, rebooted, and even powered on and off with Intel AMT technology, and many widely available remote support tools.  I am not aware of any such functionality on the iPad at present.

Retail Hardening – Kiosk units placed in a retail environment are ruggedized to accommodate temperature fluctuations, millions of not so gentle touches on their screens, spills, dirt, dust, and leverage commercial grade components and materials so that they can be left out in the open in a store 7 days a week, 24 hours per year.  The iPad is a well made purpose built device for consumers.  It’s made for a user to read a book on a bus, or browse the web at the kitchen table.  It’s not made to be left on 24×7 in a store where it will be dropped, spilled on or accidentally hit.

Securing the Unit – If iPads are placed in a retail environment, they will need to be secured to avoid theft.  Most kiosks or large format touch screens do not invite theft as a desirable consumer gadget.   The iPad will be more of a target for the short term.  While the units could be tethered on a table with a cable as they are in the Apple Stores, it’s important to consider their situation in an unattended environment.  In Apple stores there are people everywhere and everything is wide open and exposed.  This is not the case in most retail environments, so either the units are tethered with cables (which takes away their simple elegance), or they would need to be placed into a custom surround to secure them.  It would not take long for the tethering costs to approach or supercede the cost of the iPads.  Environmental aspects also come into the equation.  Believe it or not, iPads can overheat, and with no fan, it will be important that any securing solution like a cabinet provides adequate ventilation and that the unit is placed away from any environmentally detrimental elements such as a kitchen or a window with direct sunlight.  I’ve only had my iPad overheat once – reading outside in the sun last summer – but it can happen.  The iPad will shut itself down to avoid damage – leaving the kiosk unusable while it cools.

Roadmap – Apple is notorious for changing their form factors, and as a consumer solution company, they have the need to do so.  Consider the changes in the iPod since its inception in 2001.   Most retail deployments take place over many years.  For this reason, kiosk hardware is made using a consistent chipset over many years, so that applications will behave uniformly over a deployment over many years over thousands of terminals, there is a consistent physical interface across a chain, and when changes are made to the hardware the cabinets and surrounds change as little as possible.  The kiosk hardware also has a mostly consistent form factor and common mounting options like Vesa mounting for displays.  If custom surrounds or secure connections are made for iPads, they will probably have to be adjusted every spring when Steve Jobs presents the new iPad.  This is a daunting ongoing effort for any organization.

Software Updates – Current kiosk solutions provide for remote updating of applications.  While the iPhone has the capability for corporate push features for apps, or even using a web based interface to a self service application, a different protocol for solution updates would be required.  If the corporate push features are used, it may still be necessary to have on-site staff go to the units to visit the App Store to download updated versions, and there is no way to verify in a simple enterprise manner that this has been completed.

Locking Down the Browser – Self Service Kiosk platforms have browsers or software that are locked down so that users can’t go outside the areas perscribed by the retailer.  The solutions do not allow operating system keystrokes like Control-Alt-Delete or Alt-Tab so that users stay on the prescribed application, can’t hack the corporate network, or just ruin the look and feel of the kiosk. I’m not aware of any such capability that is universally available on iPads to lock down the icons, stop the loading of free apps on the units or even limit where users can go on the internet on Safari.  Default applications like iPod and Safari can’t even be removed.    This is security risk, or at the very least will threaten the look and feel as people add items, type random musings on the system or ignore the suggested application and turn the ‘kiosk’ into an internet cafe.

Ongoing Support – Commercial grade kiosk solutions are designed to last for 7-10 years and more. The components can often be upgraded.  On-site service is available for many years to support the life cycle required for self service devices.  At present, iPads are consumer devices with increasing power and features that encourage the abandonment of older models for new instead of upgrade and repair.    Given new units every year, the only support option will be to send in units for repair in a depot fashion, and it is unlikely that this support will be available for the longer term.  Most likely units will need to be replaced on an ongoing basis, which will result in a difficult to support population of units of varying ages and capabilities.

The future of tablets is incredible, with the coming of new models from Samsung, Motorola, and RIM.  While there is great potential to leverage these solutions in retail environments, they are not purpose built for self service applications, and even if not used as a self service device, the experience from decades of use of technology in retail should be remembered.  Any solution that goes into place has to be supported for the long term if it is to be successful, so retailers should be sure that the infrastructure necessary to support these initiatives considers factors like those listed above.

Using iPad hardware is not the only answer to changing the consumer experience.   Current kiosk software solutions can leverage interfaces to provide a similar user experience to the iPad.  The simplified and lifelike interface is a big part of what has changed the attitude towards this mobile device, and that can and should be leveraged.  More and more commercial grade consumer facing solutions are imitating the physics based, shiny glass button look that iPads and apple solutions provide while providing a larger format, as well as all of the long term support strength needed to succeed.

dining & qsr, food & drug, general merchandise, retail
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2011.07 | eBooks – Are Bookstores Dead?

February 18, 2011 by Tim Dickey 0 Comments

eBooks are a topic on everyone’s technology discussion list these as of late.  For a great overview of what is taking place in this industry, listen to the excellent podcast Closing the Book by Sean Prpick from CBC’s Ideas.  A recent post on CBC’s Spark also discussed new creative directions for digital publishers. 

The recent bankruptcy of Borders Books in the US has certainly brought home the weight of the changes taking place.  The Kindle is Amazon’s best selling item of all time, and eBooks seem poised to overtake paperbacks and hardcover books in sales – at least at Amazon.  The New York Time is also going to start publishing a best sellers list for eBooks. 

While I knew it was a big deal when the Kindle came out in 2007, and then the Kobo and iPad in 2010, but it really struck me that the eBook was mainstream when my mother asked whether she should get an iPad, Kindle, Kobo, or Sony eReader.  I used to think eReading was for geeks at the airport reading books on their Palm Pilots.  These gadgets are for your mom now.  (Just don’t try to explain to her how she can access the internet for free on her Kindle without it being connected to anything.  Trust me.)

For eBooks, the store is now a device instead of a brick and mortar structure.  Realizing that it was important to be competitive in this new reality, many of the eReader providers have developed software that easily crosses platforms to avoid customers getting locked into a store with a device as much as possible.  Most of the of main reading solutions are able to be used on multiple devices – providing access to your reading material on the eReaders PCs, Macs, iPhones, iPads, Blackberries, Android phones and ereaders.  For eBooks in Canada, one can use software based reading applications such as Amazon Kindle, Kobo, iBooks, GoodReader, Stanza and more.  Consumers can now hear about a book, comparison shop across various stores and purchase a book in the time it takes to get out of the house and get into a car.   The eReading app even remembers where you were in the book when you open it on a different device.

Exclusivity with one or another bookstore by certain authors can make it more costly to obtain some books, but it seems that the publishing houses (and retailers) have learned from the staggering success of iTunes to ensure that there is availiability of titles via multiple bookstores, so there is a greater opportunity to shop around more quickly than there was with music in the early days.  The process is so simple that my mom can do it without thinking. Bookstores not connected to any reader are also popping up a lot faster than music sites did – sites like: eBooks.com and Google eBookstore.  Most avid readers also know that there are millions of free books available online at the retail bookstores as well as via sites like Project Gutenburg and the Internet Archive that provide material in various electronic formats.   With solutions from Overdrive becoming increasingly common it is also possible to borrow eBooks from many local libraries.  Kindle users in US are able to lend books to each other for two weeks, spawning services like Lendle to allow strangers to loan each other eBooks.

So much for going to the old bookstore for books.  What about magazines?  Many of the magazine publishers have jumped into the iPad publishing craze.  Some magazine specific iPad apps include Wired, Popular Mechanics (you would expect those for the techheads among us), but also Time, People, Oprah’s ‘O’ Magazine and Martha Stewart Living.  These are the mainstays of magazine racks everywhere.  Do these apps deliver a better experience than the magazine?  Maybe for some.  While they are enjoyable, I personally feel it makes reading the magazines feel more like being online.  I’d rather just enjoy the magazine as I always have so far. 

This reality has driven me and many others to Zinio.    Zinio works much like the eReader apps but for magazines.  Subscribe to magazines for around the same price as the paper copy and you can read it on Mac or PC, iPad or iPhone.  One of the biggest annoyances of subscribing to a magazine was seeing the new edition on the newstand for a week or so while you waited for it to arrive at your front door.  Now consumers get the magazine immediately when it is released.  Almost any mainstream (and some non-mainstream) magazine you can imagine is on the service.  No paper to mail or throw out, and even better, no subscription cards stuck in every 3 pages.  One of the best innovations of Zinio is being able to see all of the magazine subscription information and expiry dates in one place.   No more reminders every time you go to the mailbox that it’s your last notice to renew. 

So does all of this ease of purchase and ease of use mean the death of the bookstore?  Perhaps as we know it, yes, but most retailers have learned from the past.  Decades ago railroads missed the fact that they were in the transportation business, and not the train business – losing all of their business to trucks and other formats.  Booksellers and Music Stores realize that they are in the business of selling content – not books or CDs.  You can already see these retailers changing their product mix to meet the new realities. 

Those retailers that know their businesses work as curators.  They provide advice, ideas, and interfaces into experiences.  Today’s time starved consumer is overwhelmed by the massive selection of ways to spend their time, and media to consume.  Physical stores are not going to disappear, just as books will not go away completely.  Stores will continue to act as a hub of communal interest – providing reading, performances and discussion forums. 

Brick and mortar retailers will provide value beyond the book or the CD.  Product, Price, Place, and Promotion as elements of offers don’t change – but the delivery mechanism is, and that needs to be recognized.  Understanding of the consumer, and the ability to provide what that specific consumer wants, when they want it, is absolutely key.  It’s those tools that are really just starting to come into their own.

general merchandise, retail
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2011.06 | Electronic Payments and Gratuities

February 13, 2011 by Tim Dickey 0 Comments

Different cultures treat gratuities differently. For instance, visiting a Tim Horton’s in Quebec, customers often encounter a broad swath of coins in front of the point of sale unit. Consider this the horizontal approach to the traditional tip jar. It’s a simple visual cue to remind customers to leave their nickels, dimes, quarters, or the odd loonie at the end of a transaction. You don’t see that in Ontario where a a jar or cup are the favoured vehicle.

What becomes of tip jars in the electronic age? If there is no silver (nickel, copper, zinc) passing from hand to hand in a transaction, what happens to the tip jar?  This is a gap in the current move towards electronic payments. In this case, there is not an app for that – at least not one I’ve noticed.

In the past, paying with a card in a lunch line would have been considered pretentious – an inconvenience to the store and the customers in line. Now the pendulum is swinging the other way.  An article today in QSR quoted a shop owner who said that half of clients coming into his store want to use electronic payment. While the electronic option is a tremendous convenience to consumers, there are well documented costs to the store owners to provide this convenience.

The part of these new electronic transactions that has not been addressed in the media or in an electronic manner is the gratuity. While those of us who do not work directly in the service industry probably don’t give it more than a passing thought, those tip jars, and the income they represent are certainly important to the people that help us every day. Without the opportunity to leave a tip, consumers lose a chance to thank those who help us with a small token of appreciation. With the onset of increasing electronic payments, consumers are less likely to throw a few coins of change into the jar or on the pile, as there is no residual change to jingle in their pocket.

Casual and formal dining establishments certainly provide the capacity to tip electronically by providing a gratuity step in the electronic purchase but what about the coffee shops, sandwich shops, and independent burger joints? QSR establishments do not have any sort of capability to enable a gratuity to be passed via an electronic purchase.

What to do?  In some areas, tips can make a difference for employees, and for retailers a small perquisite with which to attract top notch help that can drive more business.  As usage of cash starts to decrease, innovative retailers and solutions vendors will find a way to continue the tradition.  I suggest the following thoughts:

  • Ensure any solution is unobtrusive and passive.  I personally loathe being asked if I want to pay $1 to support charity of the day.  I support various charities on an ongoing basis and applaud their work, but refuse to pay any of these point of sale charity fees on principle as it feels to me like someone is trying to shame me into doing the right thing by having a rosy cheeked teen ask me if I want to plant a tree for $1.  Tipping can NOT go in this direction if it is to be successful.   Any opportunity to leave a gratuity for good service needs to be understated and private.  The slot under the window for Ronald McDonald House at the McDonalds Drive Thru will see some of my change, as it doesn’t judge me.
  • Leverage solutions already in place to ensure ease of use and universal capability.  While it may be tempting to use an iPhone app to tip someone, adding a step to a low value transaction could potentially slow the line, and remove the potential of further gratuities for the server.  If the solution is only an iPhone or Blackberry app, what about the good old plastic card carriers?
  • Make any solution simple and ensure it is operationalized. Today, for small value purchases on credit, cashiers quickly swipe the card and hand it back – no signature required.  Given that card payments are moving to chip and pin in Canada, customers are more accustomed to swiping, dipping, or tapping their own cards.  Why not encourage customers to swipe their own card, and on the pinpad screen provide a single button press to round up to the next dollar with the push of a single button.  Nobody sees the transaction but the client, and the server can be rewarded.  In fact, now the retailer can see who’s really pulling customers into the store.

Tipping is complicated at the best of times.  Are they individual, are they pooled, would servers want to hide how much they get in tips from their employers, or from the tax authority?  While it’s hard to say the direction it will go, it seems inevitable that some electronic mechanism for tipping for low dollar transactions will occur.  Maybe one day it won’t be a trail of coins at the POS, but a tap of a contactless card to a separate reader that says tips – the true electronic tip jar…

dining & qsr, retail
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2011.05 | Novel Implementations in Retail

February 4, 2011 by Tim Dickey 2 Comments

A few implementations in consumer facing situations with some unique properties observed in recent news:

  • Royal Bank debuted their first branch with the new branch concept using solutions like Microsoft Surface – for more details on the solution elements and some video check out my prior post.
  • Couche Tard is piloting a bluetooth mobile coupon solution tied to digital signage solutions for Red Bull.  Here’s hoping it doesn’t become mobile spam!
  • Starbucks Canada has placed interactive screens in the front window of one site in both Toronto and Vancouver as part of their Tazo Loose Leaf Tea campaign.  Visit them prior to February 26 to try them out.
  • London Luton Airport in the UK debuted ‘holographic’ hosts to assist airport travellers in navigating the security process.  They are rear-projections of real people onto full size human shaped screens.
  • Walgreens is now providing the capability for customers to renew their prescriptions via their mobile device by taking an image of the barcode on the bottle.
  • Kraft has a new kiosk that they showed off at NRF’s big show in New York last month that recommends recipes based on users’ appearance.   There’s something of the old carnival weight guesser about this one.  It makes you wonder if vegans look a mite greener, perhaps.  Next up, drive through kiosks that guess your order based on your car.
food & drug, general merchandise, retail, travel
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