Quick Order Pass Presented By: Carlton Northern Representing: Team Orange CS410 - Professional...

Quick Order Pass

Presented By: Carlton Northern

Representing: Team Orange

CS410 - Professional Workforce Development I

Team Members

Andrej CiricProject Manager

Christian CrisostomoDemographics

Kevin JonesCompetition Assessment

Christopher RobertsTechnical Feasibility

Software Development

Michael SchaeferManagement Methods

Carlton Northern Statement Support

Marketing

Overview

Societal ProblemProposed SolutionProject ObjectivesFeasibility

Societal Problem

The ordering process in coffee shops is time-consuming, inconvenient, and inefficient.

Traditional Transactions

Time Consuming Inefficient Inconvenient Error prone

Customer

Cash Register Operator

Amount Owed

Cash/Credit

Order

Return Change/ Credit& Receipt

Order

Amount Owed Cash/

Credit

Change/ Credit& Receipt

Proposed Solution

Develop a system that can digitally transmit order and payment to a cash register without verbal communication.

Typical Transaction with Our System

Saves time Order is Accurate Payment is Accurate Convenient Cash Register Operator

is optional

Customer

Order & Payment

Receipt

Consumer Use

Consumer waves transponder in front of reader.

Solution Characteristics

What the Quick Order Pass will do:

Allow simultaneous order and paymentGreatly reduce miscommunicationBe Flexible / ReprogrammableStore complex orders

Solution Will Not

Eliminate kitchen errorsInterfere with current ordering systems

Can always order and pay the old wayWork with non-computerized registers

Customer Hardware Package

Customer Software Package

Project Goals

Develop a Quick Order Pass (Q.O.P.) prototype

Submit S.B.I.R. for fundingPursue patent/copyright and licensingSell and implement system to coffee

shops

Management Organization

Weekly team meetingsTake minutes

Post to forum

Schedule deadlinesTeam assignmentsTeam status checks

Established CommunicationSoftware development protocols

CVS – (Concurrent Versions System )

Technical Goals

Acquire correct hardware from existing vendors

Develop software to interface with hardware

Integrate hardware – software and provide P.O.S emulation to test

Solution Implementation

RFID – Radio Frequency IdentificationComponents: Reader/Writer, Antenna, TagFunction: Store and retrieve a number

RFID transaction process

Technical Interface Diagram:

Examples of Transponders

Transponders come in many different flavors

Competition Table RFID Versus Magnetic Stripes

RFID Magnetic stripe

(Starbucks Card)

Reading Speed Multiple Tags One card

Durability Higher Durability Low Durability

Storage Capacity 1000+ Bytes 210 bytes

Flexibility of Information Dynamic Static

Security Hard Coded Encryption Counterfeited or Duplicated

Cost $0.25-$250 $0.01-$0.40

Feasibility Factor: Accuracy

RFID technology is highly accurate

Delta spokesman Reid Davis said accuracy levels in the test ranged from 96.7% to 99.9% during a test to track 40,000 pieces of luggage

Cost Analysis: Reader

Reader Costs Inexpensive:

RFID Reader: $40.00 - $50.00 depending on manufacturer

Cost Analysis: RFID Tag

Frequency R

ange

Read Only

8 bits

Read/Write

128 bits

Read/Write

1024 bits

Read/Write

256 Kbytes

Low 125-148 KHz

Inexpensive

High13.56 / 433 MHz

UHF915 MHz

$.46Microwave

2.4 GHz

Expensive$.46 price from http://biz.yahoo.com/prnews/040913/sfm013_1.html

Costs Analysis: Installation

According to Mohammad Khan, president and COO of ViVOtech:

“the technology is highly affordable, costing $150 to attach a contact-less RF reader to an existing POS terminal.”

Easy to interface

Readers can interface via USB, Wireless, Serial (RS 485, RS 232, PS2)

Market: Who is the customer?

A: Are you a repeat customer here?B: Do you order the same thing most of the time?C: If you had small device that could store your order would you use it?D: If you could pay with this device also, would you use it?

Starbucks Survey

98%

2%

70%

30%

54%

46%

52%

48%

0

10

20

30

40

50

60

Yes No Yes No Yes No Yes No

Am

ou

nt

of

Peo

ple

A B C D

Faster Service Generates Revenue

Statistics indicate that each six-second improvement in speed of service generates an extra 1 percent of sales.

Other wireless payment methods have shaved 15 to 20 seconds off transaction times

Starbucks Sales generated $241 million in 2003

Market cont. (Starbucks)

Only 30 percent of customers actually use the tables and couches

Everyone else grabs their java to go.

Market Growth

Starbucks plans to double the current number of domestic stores to nearly 12,000

Targeting a long-term goal of 30,000 Starbucks locations worldwide.

Revenue growth of 20% in 2003

Commitment to Innovation

“These strong trends can be attributed to an all-time high level of innovation, continued speed-of-service improvements, and successful new store concepts”

Jim Donald, Starbucks CEO designate

Risk

Consumer desireStarbucks Card: 35 million cards activated

to date.Intellectual property rights

Non-disclosure agreementsRetrofitting cost

Quick Order Pass:Cost to individual coffee shop

Item Number Base Cost TotalRFID Tags Dependent upon

customers served

Est. 2000

$1.00 ~$2000

RFID Readers Dependent upon

number of registers

Est. 5

~$80 ~$400

Data Cables Assuming 5 readers

~$5 ~$25

Licensing Fee Dependent upon

customers

TBD TBD

Mounting + Installation

Assuming 5 readers

~$110 ~$550

Grand Total ~$2975

Profitability

00.5

12

4

$0

$250,000$500,000

$1,000,000

$2,000,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

Ea

rnin

gs

Tags Sold (in millions)

Profitability From Tags

Development Staff Budget

Position Number

ofDuration Salary

MinSalary Max

Lead Project Manager

1 12 months $73,221 $89,076

Software Manager

1 12 months $85,403 $99,732

Hardware Engineer

1 12 months $51,643 $60,982

Software Engineer

3 12 Months $53,412 $67,203

Total 6 12 months $370,505 $451,400

Other Developmental Costs

Department Projected Cost

Marketing and

Research

$40,000

Development Software and Hardware

$12,000

Legal $100,000

Patent Licensing +

Application

$3,500

Travel+

Data Acquisition

$20,000

Total ~$175,500

Grand Total ~$627,000

Solution Advantages

Highly accurateInexpensiveSimple customer useEasily interfacedConvenient

Solution Disadvantages

Data must be stored the first time aroundWill not prevent kitchen errorsLost tags must be replacedExisting registers must be retrofitted

Summary

Efficient and convenientBased on developed technology

Highly accurate InexpensiveEasy to integrate

Strong market potential