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