NFC and consumers –  Success factors and limitations in retail business <ul><li>Florian Resatsch </li></ul><ul><li>WIMA Mo...
Structure  <ul><li>Introduction  </li></ul><ul><li>Situation and limitations  </li></ul><ul><li>Ideas  </li></ul><ul><li>C...
Institute of Electronic Business – I  <ul><li>The Institute of Electronic Business (IEB) is an affiliated institute of the...
Institute of Electronic Business – II <ul><li>Main Research Areas </li></ul><ul><li>Ubiquitous Computing  </li></ul><ul><l...
Structure  <ul><li>Introduction  </li></ul><ul><li>Situation and limitations  </li></ul><ul><li>Ideas  </li></ul><ul><li>C...
Retailer Situation: Statement <ul><li>An  average  choice of products with an  average  shopping experience with  average ...
Situation: But what is the difference?
Situation: Stress factors in stores  <ul><li>time pressure  </li></ul><ul><li>lack of response by retailers   </li></ul><u...
Structure  <ul><li>Introduction  </li></ul><ul><li>Situation and limitations  </li></ul><ul><li>Ideas   </li></ul><ul><li>...
„ Intention economy“  http://www.trendwatching.com/briefing/ Example: Name your price Doc Searls: http://www.linuxjournal....
Special interest communities Example: Wine community
Crowd Spirit – New Start Up http://www.trendwatching.com/briefing/ Example: Customer integration in product development
Example: Quick  Check out!
 
 
Ubiquitous Computing how to bridge  the gap? Mechanisms Ubiquitous-Computing Things & Information unite 01001 01001 01001 ...
Structure  <ul><li>Introduction  </li></ul><ul><li>Situation and limitations  </li></ul><ul><li>Ideas  </li></ul><ul><li>C...
Case study: Problem <ul><li>Most available information  </li></ul><ul><li>about products is  </li></ul><ul><li>separate fr...
Case study: Consumer issues <ul><li>For the customer </li></ul><ul><ul><li>The consumer relies upon the sales assistant at...
Case study: Retailer issues  <ul><li>For the retailer </li></ul><ul><ul><li>The customers subjective feeling of insecurity...
The Mobile Prosumer <ul><li>Display of relevant product information on the mobile phone. </li></ul><ul><li>Modular and per...
Core of the application  Service Local data 3rd party Content Sources Easy  interaction Community Sources Producer Distrib...
Technical Overview / Underlying Magic <ul><li>SOA  – Service Oriented Architecture </li></ul><ul><li>EPC / EPCIS  – Electr...
Current evaluations include  <ul><li>What product categories are considered useful by the consumer? </li></ul><ul><li>Tech...
Success factor: Value Proposition for both <ul><li>Value Proposition for the consumer   </li></ul><ul><li>The Mobile Prosu...
Structure  <ul><li>Introduction  </li></ul><ul><li>Situation and limitations  </li></ul><ul><li>Ideas  </li></ul><ul><li>C...
Supply Chain to Consumer: Tag Benefits Serialised Global Trade Item Number (SGTIN) Supplier Distributor Store Customer Glo...
But: The frequency problem  <ul><li>(potential)  sweet-spot for item-level tagging   </li></ul><ul><li>lower, but sufficie...
Challenges in Retail  <ul><li>Because of the  </li></ul><ul><li>relatively high cost of NFC/RFID deployment </li></ul><ul>...
BUT: more important open questions! <ul><li>Exemplary: Tag placement for users?  </li></ul>(Source: www.bayerische-papierv...
Self-checkout?  (Source: http://en.wikipedia.org/wiki/Image:Wal-Mart_Self_Checkout.jpg)
Solution: Limit the stress factors and learn from Internet convenience  <ul><li>Improvements for consumers & retailers </l...
Structure  <ul><li>Introduction  </li></ul><ul><li>Situation and limitations  </li></ul><ul><li>Ideas  </li></ul><ul><li>C...
Or: Create something completely new Picture: © Peter Stulz (xoio.de)
Every great advance in science has issued from a new audacity of imagination .  John Dewey Kontakt Florian Resatsch [email...
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NFC and consumers - Success factors and limitations in retail business - Florian Resatsch

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Shown at the WIMA 2007 in Monaco, this presentation covers ideas and discussions around frequencies for retail business. Consumer applications with NFC are also discussed.

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NFC and consumers - Success factors and limitations in retail business - Florian Resatsch

  1. 1. NFC and consumers – Success factors and limitations in retail business <ul><li>Florian Resatsch </li></ul><ul><li>WIMA Monaco - April, 18th 2007 </li></ul>
  2. 2. Structure <ul><li>Introduction </li></ul><ul><li>Situation and limitations </li></ul><ul><li>Ideas </li></ul><ul><li>Case Study: Mobile Prosumer </li></ul><ul><li>NFC in retail business </li></ul><ul><li>Open Questions/Discussion </li></ul>
  3. 3. Institute of Electronic Business – I <ul><li>The Institute of Electronic Business (IEB) is an affiliated institute of the University of Arts, Berlin </li></ul><ul><li>Consultancy and research in the area of electronic business , communications and design </li></ul><ul><li>Network to connect scientists and practitioners </li></ul>
  4. 4. Institute of Electronic Business – II <ul><li>Main Research Areas </li></ul><ul><li>Ubiquitous Computing </li></ul><ul><li>Human Computer Interface Digital Communication </li></ul><ul><li>e-Government </li></ul><ul><li>Performance Marketing </li></ul><ul><li>Key Facts </li></ul><ul><li>Employees: 25 </li></ul><ul><li>Number of students: 160 </li></ul><ul><li>Public-Private-Partnership (many Industry partners) </li></ul><ul><li>Director: Prof. Dr. Dr. Thomas Schildhauer </li></ul>
  5. 5. Structure <ul><li>Introduction </li></ul><ul><li>Situation and limitations </li></ul><ul><li>Ideas </li></ul><ul><li>Case Study: Mobile Prosumer </li></ul><ul><li>NFC in retail business </li></ul><ul><li>Open Questions/Discussion </li></ul>
  6. 6. Retailer Situation: Statement <ul><li>An average choice of products with an average shopping experience with average priced goods does not make a difference – </li></ul><ul><li>the consumer is depending on the price as a decision criterion between different stores. </li></ul>(Source: Mercer Management Consulting - http://www.mercermc.de/veroeffentlichungen/studien/branchenkompetenz/ handel/layout_handel/browse/4/article/preiskommunikation.html) ?
  7. 7. Situation: But what is the difference?
  8. 8. Situation: Stress factors in stores <ul><li>time pressure </li></ul><ul><li>lack of response by retailers </li></ul><ul><li>crowd density </li></ul><ul><li>staff attitude and training </li></ul><ul><li>store layout/relocation </li></ul><ul><li>impulse purchasing pressure </li></ul><ul><li>location </li></ul><ul><li>product assortment </li></ul><ul><li>music </li></ul><ul><li>lighting </li></ul>{Source: Aylott, 1998 „An exploratory study of grocery shopping stressors“}
  9. 9. Structure <ul><li>Introduction </li></ul><ul><li>Situation and limitations </li></ul><ul><li>Ideas </li></ul><ul><li>Case Study: Mobile Prosumer </li></ul><ul><li>NFC in retail business </li></ul><ul><li>Open Questions/Discussion </li></ul>
  10. 10. „ Intention economy“ http://www.trendwatching.com/briefing/ Example: Name your price Doc Searls: http://www.linuxjournal.com/node/1000035
  11. 11. Special interest communities Example: Wine community
  12. 12. Crowd Spirit – New Start Up http://www.trendwatching.com/briefing/ Example: Customer integration in product development
  13. 13. Example: Quick Check out!
  14. 16. Ubiquitous Computing how to bridge the gap? Mechanisms Ubiquitous-Computing Things & Information unite 01001 01001 01001 01001 01001 01001 01001 01001 01001 01001 Internet Real World Information
  15. 17. Structure <ul><li>Introduction </li></ul><ul><li>Situation and limitations </li></ul><ul><li>Ideas </li></ul><ul><li>Case Study: Mobile Prosumer </li></ul><ul><li>NFC in retail business </li></ul><ul><li>Open Questions/Discussion </li></ul>
  16. 18. Case study: Problem <ul><li>Most available information </li></ul><ul><li>about products is </li></ul><ul><li>separate from them. </li></ul>
  17. 19. Case study: Consumer issues <ul><li>For the customer </li></ul><ul><ul><li>The consumer relies upon the sales assistant at the point of sale to access relevant information concerning the product </li></ul></ul><ul><ul><li>Independent decision making is difficult based on this information source </li></ul></ul><ul><ul><li>This increases the customers subjective feeling of insecurity. </li></ul></ul><ul><ul><li>Lack of time </li></ul></ul><ul><ul><li>Lack of influence on the product development (feedback channel) </li></ul></ul><ul><ul><li>Stressor situations </li></ul></ul>(Bildquelle: www.trendwatching.com , 2006)
  18. 20. Case study: Retailer issues <ul><li>For the retailer </li></ul><ul><ul><li>The customers subjective feeling of insecurity leads to fewer spontaneous purchases, and less customer loyalty. </li></ul></ul><ul><ul><li>Consumer behaviour at the point of sale is difficult to measure (e.g. overlooked target group) </li></ul></ul><ul><ul><li>There is no further information on a specific product and no communication channel for additional benefits </li></ul></ul><ul><ul><li>The customer becomes more aware and more critical </li></ul></ul>(Bildquelle: www.trendwatching.com , 2006)
  19. 21. The Mobile Prosumer <ul><li>Display of relevant product information on the mobile phone. </li></ul><ul><li>Modular and personalised information service at the point of sale </li></ul><ul><li>Real-time monitoring of consumer behaviour </li></ul><ul><li>Feedback channel producer and Retailer (CRM) </li></ul>
  20. 22. Core of the application Service Local data 3rd party Content Sources Easy interaction Community Sources Producer Distributor Retailer Store (ERP) Supply chain information EPCIS NFC tagged product Feedback Channel DB Usage info
  21. 23. Technical Overview / Underlying Magic <ul><li>SOA – Service Oriented Architecture </li></ul><ul><li>EPC / EPCIS – Electronic Product Code / Electronic Product Code Information Service </li></ul><ul><li>ONS – Object Naming Service </li></ul><ul><li>NFC – Near Field Communication </li></ul>
  22. 24. Current evaluations include <ul><li>What product categories are considered useful by the consumer? </li></ul><ul><li>Technology acceptance of application </li></ul><ul><li>Human-computer interaction (Tag placements) </li></ul><ul><li>Motivational usage components </li></ul><ul><li>Retail integration </li></ul><ul><li>Interesting community sources </li></ul><ul><li>Business case </li></ul>
  23. 25. Success factor: Value Proposition for both <ul><li>Value Proposition for the consumer </li></ul><ul><li>The Mobile Prosumer enables the buyer to easily get relevant information at the point of sale </li></ul><ul><li>Value Proposition for the retailer </li></ul><ul><li>The Mobile Prosumer enables the retailer to be the attorney of the consumer and assist him in his daily life </li></ul>
  24. 26. Structure <ul><li>Introduction </li></ul><ul><li>Situation and limitations </li></ul><ul><li>Ideas </li></ul><ul><li>Case Study: Mobile Prosumer </li></ul><ul><li>NFC in retail business </li></ul><ul><li>Open Questions/Discussion </li></ul>
  25. 27. Supply Chain to Consumer: Tag Benefits Serialised Global Trade Item Number (SGTIN) Supplier Distributor Store Customer Global Returnable Asset Identification (GRAI) Serial Shipping Container Code (SSCC) Mobile inventory taking Shelf management POS check-out Theft protection Everyday assistance Realtime information services Neutral information sources Pallets: Object monitoring & counting Shipping containers: Object monitoring & counting Item Level Information Information 800/900 MHz - ? 13,56 MHz A lot of information gathered
  26. 28. But: The frequency problem <ul><li>(potential) sweet-spot for item-level tagging </li></ul><ul><li>lower, but sufficient range </li></ul><ul><li>desired cost-point <1cent </li></ul><ul><li>ultra-low-cost RFID is near with printed RFID tags </li></ul><ul><li>likely to gain more acceptance with customers </li></ul>13.56MHz <ul><li>is pushed by retailers to extent physical supply chain (logistics) </li></ul><ul><li>current cost-point >10cent </li></ul><ul><li>use on pallet level </li></ul><ul><li>higher range </li></ul><ul><li>very bad with RF-absorbing fluids (water, milk) and surfaces (metal) </li></ul>800/900MHz (see also Subramanian, V., P. C. Chang, et al. (2006). Progress Toward Development of All-Printed RFID Tags: Materials, Processes, and Devices . Proceedings of the 19th International Conference on VLSI Design (VLSID’06)) vs.
  27. 29. Challenges in Retail <ul><li>Because of the </li></ul><ul><li>relatively high cost of NFC/RFID deployment </li></ul><ul><li>plus low profit margin (supermarkets) </li></ul><ul><li>item-level tagging seems far away. </li></ul><ul><li>But retailers need </li></ul><ul><li>On-Shelf Availability </li></ul><ul><li>Out of Stock Improvement & Replenishment </li></ul><ul><li>Labour Saving </li></ul><ul><li>Inventory Management </li></ul><ul><li>Things item level tagging could help! </li></ul>
  28. 30. BUT: more important open questions! <ul><li>Exemplary: Tag placement for users? </li></ul>(Source: www.bayerische-papierverbaende.de)
  29. 31. Self-checkout? (Source: http://en.wikipedia.org/wiki/Image:Wal-Mart_Self_Checkout.jpg)
  30. 32. Solution: Limit the stress factors and learn from Internet convenience <ul><li>Improvements for consumers & retailers </li></ul><ul><li>response by retailers </li></ul><ul><li>staff attitude and training </li></ul><ul><li>easier impulse purchasing pressure </li></ul><ul><li>improve product assortment </li></ul><ul><li>music (maybe  ) </li></ul><ul><li>community integration </li></ul><ul><li>reverse pricing? </li></ul><ul><li>customer feedback channel </li></ul><ul><li>easy checkout </li></ul>{Picture source: lovelandia.com
  31. 33. Structure <ul><li>Introduction </li></ul><ul><li>Situation and limitations </li></ul><ul><li>Ideas </li></ul><ul><li>Case Study: Mobile Prosumer </li></ul><ul><li>NFC in retail business </li></ul><ul><li>Open Questions/Discussion </li></ul>
  32. 34. Or: Create something completely new Picture: © Peter Stulz (xoio.de)
  33. 35. Every great advance in science has issued from a new audacity of imagination . John Dewey Kontakt Florian Resatsch [email_address]
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