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NetkeyBuyOrBuildWhitePaper v2
- 1. A Netkey White Paper
© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
YOUR SELF-SERVICE SOLUTION: BUY OR BUILD?
6 Key Factors to Consider in Your Software Decision
Prepared by:
Netkey, Inc.
www.netkey.com
800.443.7924
203.483.2888
- 2. A Netkey White Paper
© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Table of Contents
The Promise of Self-Service Technology __________________________________ 1
The New Mantra – Buy Whenever Possible_________________________________ 2
First, A Primer on Kiosk Software ________________________________________ 4
Decision Factor #1: Core Competencies and Experience _____________________ 7
Decision Factor #2: Cost _______________________________________________ 13
Decision Factor #3: Resource Issues_____________________________________ 16
Decision Factor #4: Time to Market ______________________________________ 17
Decision Factor #5: Risks ______________________________________________ 19
Decision Factor #6: Flexibility, Adaptability and Scalability__________________ 20
Choosing A Self-Service Solutions Provider ______________________________ 24
Conclusion___________________________________________________________ 25
Bibliography _________________________________________________________ 27
Netkey Resources_____________________________________________________ 28
- 3. A Netkey White Paper
1© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
The Promise of Self-Service Technology
Self-service kiosks are emerging as a powerful new customer touch-point, finding a home in
banks, malls, grocery and retail stores, airports, movie theatres, hotel lobbies, and countless
other places. Connected, dynamic and embraced by consumers, self-service kiosks “Turn the
Monitor Around®” and deliver a rapid return on investment by bridging a company’s online and
in store, in branch or other public channels to sell products and service customers as never
before.
The promise of this technology has never been greater. Analyst firm Jupiter Media Metrix
predicts that consumers will purchase $6.5 billion dollars worth of goods and services through
kiosks by 2006.1
The proof can be also found in a growing number of self-service
success stories. For example, the Borders Books’ Title Sleuth kiosk
generates additional sales for the popular bookseller, with kiosk
users purchasing 20 percent more merchandise than other
customers. V.shop stores, part of the Virgin empire, reports that its
inventory extension kiosks contribute 10 percent of the company’s
sales.
Office supply giant Staples attributed $200 million dollars of its 2001
revenues to its in store kiosks, and a top packaged goods company
saw a double-digit sales increase for one of its product lines after
placing shelf-based kiosks in close proximity to products and
potential customers at the point of sale.
Perhaps the biggest self-service success story is the Kodak Picture
Maker Kiosk, in use in over 30,000 retail locations worldwide. Photo
buffs can use the kiosk to create enlargements of original photos in
just minutes. With an estimated 76 billion pictures taken annually
(but only 1 to 3 percent ever reprinted or enlarged), the kiosk
provides real value for both customers and retailers. In fact, it’s
reported that the kiosks produce a payback for retailers in less than
6 months, and 95 percent of the Picture Maker kiosk users
surveyed said they’d use the kiosk again.
Borders Title Sleuth kiosk
users purchase 20 percent
more merchandise than
other Borders customers.
With evidence of self-service success everywhere, organizations are quickly mobilizing to
deploy their own kiosk solutions. If you work for such an organization, one of the first decisions
you will face is how to go about transforming your self-service strategy into a self-service
success story. It’s the age-old buy vs. build question with a new spin. Will you use pre-packaged
software to create your self-service application? Will you build it from scratch? Or will you use a
combination of internal resources and external tools for a solution that leverages the best of
both worlds?
This white paper explores the benefits of a packaged software approach to building self-service
applications and provides some practical guidelines for selecting a kiosk solutions provider.
1
“Kiosks: Empowering Customers to Close the Sale,” Jupiter Media Metrix, Heather Dougherty, May 16, 2001
- 4. A Netkey White Paper
2© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
The New Mantra – Buy Whenever Possible
In the early days of computing, when packaged software solutions were scarce, building your
own software application was the only alternative. Today, companies can choose from a palette
of software solutions that solve many business problems – from the ubiquitous word
processing, spreadsheet and e-mail applications, to salesforce automation tools, human
resources systems, and high-end Enterprise Resource Planning (ERP) and Customer
Relationship Management (CRM) systems.
More often than not when faced with a decision of purchasing a packaged solution or building
an application from the ground up, companies are choosing to buy. The tribulations of
maintaining complex management solutions across rapidly changing environments are
uprooting homegrown software.2
In the past, buying a packaged solution often meant trading off customized features to get to
market faster with a more cost-effective solution. This is rarely the case today as packaged
software solutions overcome their former shortcomings in flexibility, customization and
scalability.
Gartner reports that buying is by far the dominant trend over building software applications.
“There has been a great deal of progress with packaged applications. They have found favor
within many enterprises and are now considered viable choices for many corporate tasks. In
fact, corporate edicts have been established that precludes even a discussion of the buy vs.
build process. Therefore, it appears that buying software, under all circumstances, is the
dominant trend.”3
“At one time there was a view that if you did it yourself, you'd have a proprietary advantage,''
comments James H. Nisbet, corporate vice president of information technology at Monsanto Co.
in St. Louis. But he acknowledges, many of those efforts didn't pay off compared to the high
cost of development.4
As with most IT solutions, the buy vs. build decision for developing a self-service kiosk
application is not black or white, but shades of gray. There are various options for implementing
a self-service solution, leveraging the strengths of your internal resources and the vast expertise
of a reputable kiosk solution provider.
One option is to use pre-packaged software as a platform on which to build your self-service
application. The software will dramatically reduce the programming time required, but
depending on the complexity of the solution, you will still need to take on some of the work in
house. If your organization lacks the core competencies to develop a self-service solution, you
can also engage the design and implementation services of a company that has expertise in this
area and other areas critical to the success of your project.
2
“The buy vs. build dilemma,” Network World Network Systems Management Newsletter, Dennis Drogseth, October 30, 2000
3
“Buy vs. Build – A key decision in the public sector software procurement process,” Systems & Computer Technology Corporation,
March 2000
4
“Corporate development puzzle: buy vs. build,” Computerworld, Frank Hayes, December 11, 1995
- 5. A Netkey White Paper
3© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Some providers also offer server-based or hosted management solutions that allow you to
manage and monitor your kiosk network for maximum reliability and lower cost of ownership.
As a final alternative, you may choose to go it alone, building your self-service solution totally
from the ground up and establishing your own internal infrastructure to manage and monitor
your kiosk network.
Whatever option you choose, there are many factors that you will want to weigh in making your
buy or build decision, including:
Decision Factor #1: Core competencies and experience –
Does your organization have the core competencies and experience necessary to build
a self-service solution in house?
Decision Factor #2: Cost –
Will it cost more to buy or to build? How will your decision impact your total cost of
ownership? What are the short-term and long-term cost implications?
Decision Factor #3: Resource issues –
What are the other resource implications of your decision? Will your organization have
the shear bandwidth to take on a project of this magnitude? And perhaps even more
importantly, will your organization have the bandwidth to support ongoing application
development?
Decision Factor #4: Time to market –
How quickly do you need to bring your self-service solution to market? What are the
implications of a delayed launch? Will you have time to learn from your mistakes?
Decision Factor #5: Risks –
Are there any other risks associated with each approach? What are they? What level of
risk are you willing to take?
Decision Factor #6: Flexibility, adaptability and scalability –
Do you anticipate that your business needs may change over time? How important is it
that your self-service solution has the flexibility to adapt to these changing conditions?
- 6. A Netkey White Paper
4© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
First, A Primer on Kiosk Software
As mentioned in the introduction to this paper, when making your buy or build decision for your
self-service solution, you can choose to build your solution from the ground up entirely in house,
or you can elect to use packaged kiosk software as a platform for your application. Before we
delve into the 6 critical buy or build decision factors, let’s review some of the key capabilities of
today’s packaged kiosk software solutions:
Kiosk software – much like other purpose-built software solutions available today –
incorporates years of experience and lessons learned from thousands of customer
deployments. It provides a platform for implementing many of the functions and features that are
essential for today’s successful self-service applications. These functions and features fall into 7
main categories: interface design, attract loop creation, security, monitoring and management,
peripheral integration, dynamic applications and digital signage.
Interface Design: The kiosk interface is
critical to the success of your application. An
attractive, easy-to-use interface will maximize
usage of your kiosk. Packaged kiosk software
provides tools for designing a compelling yet
simple touch screen interface that will likely
include a number of elements: multi-media
attract loops, touch screen buttons, screen
routing rules, and more. The packaged kiosk
software’s graphical administration tools
guide you through a series of prompts and
responses that are modeled into a focused,
user-friendly interface. Jiffy Lube customers use the
Autopulse kiosk to get information on
their vehicles; access weather, sports
and financial news and data; send and
retrieve e-mail; and even shop on a
variety of retail sites.
The software easily handles the placement of
multiple browsers on a single kiosk screen.
This feature is ideal for incorporating multiple
messages on a single screen – for example
stock tickers, ads, video files, or other
content.
Packaged kiosk software can also provide
full multi-language Unicode support,
accommodating numerous international
languages. This means that you can design
your kiosk interface (buttons, titles) using
international characters supported by
Unicode. For kiosks deployed in international
languages, this also ensures kiosk
compatibility with software and peripherals
that may interact with your kiosk - for
example, international keyboards (important
for transactional applications), URLs that use international character sets, and
international versions of commonly used operating systems.
- 7. A Netkey White Paper
5© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
The software also provides full support for ActiveX controls so you can leverage your
own ActiveX controls or commercially available controls when developing your kiosk
application. Examples of ActiveX controls include Flash players, Portable Document
Format (PDF) readers, animated gifs, calendars, media players, and many others.
ActiveX allows for easier integration of these third party tools and non-Web-based
objects into a kiosk environment by allowing these objects to reside inside a "shell" and
operate on the Microsoft Windows® platform while being controlled by the kiosk
software. This advance significantly reduces the cost and timeframe of projects, while
allowing much richer functionality, dynamic graphics, and enhanced integration with
databases and backend systems.
Attract Loop Creation: Attract loops are screens or animations that display eye-
catching graphics designed to (as the name implies) “attract” people to your kiosk. An
attract loop may consist of a single screen, a series of screens, or an external multi-
media application. Using packaged kiosk software you can very easily create compelling
attract loops, and even include multi-media content (e.g. sound and video files) for
added impact. You can use popular animation packages – like Macromedia’s Flash or
Director products, or Adobe’s LiveMotion – to create animation files that can then be
seamlessly integrated into your kiosk application.
Security: By definition, kiosks are public access devices that are typically placed in
high-traffic environments. You want to encourage customers to use your Web-connected
kiosk for its intended purpose and at the same time prohibit unintended uses. Packaged
kiosk software enables you to restrict or allow access to specific URLs, and prohibit
Internet roaming. If you use a keyboard for the kiosk, the software also provides a
keystroke filter to lockdown the keyboard, prohibiting hackers from crashing the system
or accessing proprietary areas of your network.
Remote Monitoring & Management: Historically, kiosk networks have been difficult to
manage and prone to outages and breakdown due to the lack of a centralized, cost-
effective way to monitor, maintain and analyze system performance. A monitoring and
management solution can ensure the reliability of your kiosk network and reduce your
cost of ownership by:
o 1) remotely monitoring kiosk and peripheral activity and automating responses to
problems;
o 2) providing an easy-to-use, self-service desktop for business users to centrally
manage and update kiosk content;
o 3) enabling process improvements and ROI measurements by gathering and
analyzing key data about the performance of kiosks, including usage and URL
access.
A handful of kiosk solution providers offer monitoring and management products
available as server-based or hosted solutions.
- 8. White Paper
6© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
A Netkey
Peripheral integration: More and more kiosks are
being deployed with transactional capabilities that
require integration with hardware peripherals such
as credit card readers, bill acceptors, barcode
scanners, magstripe readers, change dispensers,
cash readers, printers, bill acceptors, IP phones and
security mats.
(pictured – assorted kiosk peripherals)
These capabilities can
burden an internally built
kiosk solution with
added complexity
and cost. Packaged
kiosk software can
cut your development time and cost, allowing you to use
peripheral wizards and common scripting languages, or
even existing peripheral integration scripts, to create
robust transactional kiosk applications.
Dynamic applications: Building complex self-service solutions from the ground up can
be a daunting task. The newest generation of enterprise self-service software provides a
platform for deploying a variety of dynamic applications. You can integrate a wide range
of data assets – such as those found in your POS system or on your Web site – into
your self-service solution to create a powerful and dynamic customer experience. For
example, you can leverage product, inventory, pricing, or other data to dynamically
render content on your kiosk, based on a user’s specific menu selections and store or
branch location. You can easily construct the flow of your kiosk application by creating
“application paths” that define the screen choices presented to the kiosk user, the user’s
possible responses, and the results of the user’s selections (different paths, URLs, or
item lists).
Using a data-driven screen rendering engine, dynamic menus and navigation structure,
you can deploy any of a variety of data-driven, ROI-maximizing self-service applications
in quick order – from virtual sales assistants, product locators and product ordering
kiosks to in-store self-service gift registries and loyalty kiosks.
Digital Signage: Packaged kiosk software and kiosk management solutions are also
used to create (and manage) digital signage systems. Digital signage is increasingly
being employed in a number of environments – from retail stores to airports, banks,
convenience stores and beyond. Dynamic signage is especially taking hold in retail
environments as these ad messages reinforce a company’s brand identity and deliver
product information closer to customers at the point of purchase (POP) decision. In
supermarkets, for instance, shelf-mounted digital signage units can seamlessly blend
multi-media, video and audio to showcase advertising messages, product facts and
recipes. Eye-catching and informational, digital signage devices influence consumers to
try and to buy. In fact, research shows that POP advertising can deliver sales lifts of 2 to
65 percent.
- 9. A Netkey White Paper
7© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Decision Factor #1: Core Competencies and Experience
Perhaps the most important question to ask when assessing whether to build your self-service
solution from the ground up or leverage the packaged offerings and professional services of a
kiosk expert is: “What are my organization’s core competencies in this area?” Companies need
to understand the core competencies that are required to build a self-service solution, and then
conduct an honest assessment of their own internal competencies. Here are some things to
consider:
Domain knowledge: The self-service marketplace is still in its infancy, and a lack of
knowledge about what works and what doesn’t work pervades the industry. Many kiosk
pilots fail because organizations lack experience and knowledge. In fact, organizations
deploying a kiosk solution for the first time have virtually no window into the failures and
successes of others who’ve gone before them.
Experience shows that organizations can expect the greatest return on their self-service
solution by identifying the desired results from a system, rather than specifying features
in great detail. Unfortunately, one of the biggest mistakes newcomers make is to focus
on features first, instead of the self-service value proposition. “We find that (enterprises)
are interested in kiosks…but their thoughts about what’s the value to the consumer and
the enterprise are not very well formed,” says Gartner analyst Carol Ferrara. “It’s just
something that’s cool.”5
One of the benefits of using
the consulting services of a
kiosk solutions provider is that
the vendor can help you to
take a more ROI-driven
approach to designing and
developing your self-service
system. They’ll be able to help
you focus on self-service
applications that mesh with
your business strategy and
provide a clear and
measurable ROI.
A kiosk solutions provider can help to design your
kiosk interface for the greatest ease of use.Additionally, having deployed
thousands of self-service
solutions, the vendor will have
a keen understanding of the factors that will impact the success or failure of your project.
A kiosk solutions provider can: help to design your kiosk interface for the greatest ease-
of-use; help you select the right hardware and peripherals; advise you on where to
locate your kiosks for maximum usage; provide tips for encouraging customer and
employee adoption; provide security recommendations; and more. Working with a kiosk
solutions provider allows you to tap into the vendor’s experience and leverage the
lessons learned from numerous projects.
5
“Kiosk Mania: Retailers, Travel Companies Deploy Thousands of Kiosks,” Computerworld, Stacy Collett, August 6, 2001
- 10. A Netkey White Paper
8© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Customer facing technology: Most corporate MIS departments focus on internal
systems that are built around a model that is designed to keep people out, as opposed
to inviting them in. Even companies that have invested significant sums of money and
resources in developing their Web assets and e-commerce infrastructure, and have
been successful in doing so, quickly learn that creating a public-access self-service
solution is an entirely different challenge. It requires an understanding of how customers
interact with this new touch-point, knowledge that can be gained only through
experience.
Many companies mistakenly think they can capture the on-premise customer simply by
placing their Web site on a self-service kiosk "as is." But they learn the hard way that
that is a formula for failure. Why? A self-service kiosk is a unique medium, requiring a
different set of software tools, merchandising functionality and rules than a Web site.
Fidelity Investments “Before and After “ --
Compare the Fidelity Investment Web site
(above) to the focused content and ease-of-
use of the Fidelity Investment kiosk interface
on the right.
The experience of browsing and surfing the Web is much different from the "instant
gratification" type of experience that customers want in a public environment. Web sites
are generally more global in purpose, designed for extensive content and deep
navigation. They are not “touch friendly.” On the other hand, kiosk content and
navigation should be streamlined and focused on the specific purpose of the kiosk.
Additionally, because a kiosk is an unattended, self-service device, it must be 100
percent intuitive. It must provide immediate clarity to the potential user, in a way that
grabs the user's attention. The user must instantly know what the kiosk "wants" them to
do.
- 11. A Netkey White Paper
9© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Accustomed to the speed and simplicity of ATMs, customers want their kiosk self-service
experience to be simple and fast (in most cases under a minute). An experienced kiosk
solutions provider will understand all of these interactivity subtleties and guide you in
designing a kiosk solution that will result in a positive customer experience.
An iceberg of complexity: The simple graphical interface of a touch screen self-service
device masks the underlying complexity of a kiosk project. The sub-second response
time, intuitive interface, and other human factors related to public interactivity makes
programming kiosks extremely difficult. Add to this the myriad of disciplines required and
you have an iceberg of complexity. Implementing a self-service kiosk solution requires a
variety of cross-disciplinary skills including software programming, hardware knowledge
and design expertise.
The tip of the iceberg…the simple
graphical interface of a kiosk
The underlying complexities…
Best Practices/Domain Knowledge
Ongoing Management/Maintenance
Project Management
Enclosure Considerations
Network Connectivity
Application Integration
Peripheral Selection/Integration
Multi-media Expertise
Interface Design
Software Programming
Self-service kiosk projects are an iceberg
of complexity. The simple graphical
interface of a kiosk masks the many
underlying components of the project.
Software Programming
Programming a solution entirely from the ground up can be complex, costly and time
consuming. The programming skills that are required will vary depending upon the
platform you choose for your self-service application. A Windows-based platform means
you’ll need a team of programmers proficient in IIS 5.0, Windows 2000 Server, IE, Visual
Basic 6.0, MS SQL Server 2000, VBScript, Visual C++, etc. Pursuing a Java strategy in
the Unix environment may involve resources skilled in Apache, Unix and Oracle,
Informix or DB2. On the other hand, packaged kiosk software solutions provide much of
the required functionality “out of the box,” eliminating the need to program in house and
significantly speeding time to market.
- 12. A Netkey White Paper
10© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Interface Design
D
The stylish BMW VSC application delivers an
xciting customer experience, incorporating
etkey technology and design expertise to
b
e
N
seamlessly blend full-motion video, audio, We
content, and other information.
esigning a kiosk interface is an art unto itself. If you develop your solution in-house,
nced designers who understand the unique interactivity requirements
lements such as streaming audio and
irement of your
o
C)
, BMW of North
merica’s consumer events manager
l rather
get
the project was to
overcome the technological hurdles of
that arose was how
to get the large video files onto the
, so
eo files to
you’ll need experie
of the self-service kiosk medium, and can use that knowledge to create a rewarding
experience for your customers.
Multi-media Expertise
E
video may also be a requ
kiosk design. Sometimes, this multi-
media aspect can introduce technical
complexities into the project. For
example, when Netkey was called on t
develop a Virtual Sales Center (VS
for BMW, we integrated scores of film
clips, television commercials and other
multi-media assets, along with BMW’s
vast Web assets into the VSC interface,
using Netkey software.
Commenting on the VSC
A
Holly Babich said in a recent
KioskMarketplace.com article: “We
wanted to make it experientia
than just informative. We wanted to
an experience on the kiosk that you
wouldn’t get at home while making it
informative as well.”
One big challenge for
layering BMW's rich Web assets over
full-screen video (in both standard and
letterbox formats) to create a seamless
experience for customers using the
VSC. This was achieved using the
Netkey software.
Another challenge
kiosks. The files were too big to stream
and still maintain quality in real-time
BMW used a remote content
management tool from Netkey to
schedule downloads of the vid
the kiosks.
- 13. A Netkey White Paper
11© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Peripheral Selection/Integration
With the transition from purely informational to transactional self-service applications,
more and more companies are also integrating peripherals into their kiosks. These
include printers, security mats, and a host of other devices. If your kiosk plan calls for
peripherals, you’ll need an internal technical resource to research your options and
propose the best solution.
For example, if you were to develop an application where customers accessed private
information through the kiosk, you would need to determine the best method for ensuring
that the information remained secure and private. Would a security mat or a proximity
detector better suit your needs, and which brands and models would work best?
Application Integration
If you want your self-service application – such as a gift registry, inventory extension
application, or loyalty program – to be linked to other applications, you’ll need to scope
out and manage that aspect of the project as well. This may involve integrating one of
more databases within your POS environment – for example, product, inventory, pricing
or customer data – into your kiosk application.
Network Connectivity
You will also need to research connectivity options for
your kiosk network. More complex applications that
integrate “rich media” (such as video or other multi-
media content) may require a higher bandwidth. Speed
is also a critical consideration for customer-facing
applications.
Enclosure Considerations
A key component of any self-service project is the kiosk
enclosure. You will need to determine which enclosure
will work best based on your budget and project goals.
Will you need a custom enclosure, a simple desktop PC,
or something in between? Do you need a ruggedized
enclosure for high-volume or outdoor public use?
A kiosk enclosure should entice people to stop, look and
use the kiosk; exude the “purpose” of the kiosk; reinforce
your brand and image; and be functional, practical and
ergonomic, yet distinctive at the same time. When
choosing an enclosure, you should also consider usage,
space and environmental factors, as well as the
surrounding environment.
Project Management
Most importantly, you’ll need a dedicated project manager
who can bring all of the elements together to get your
solution to market on time and within budget.
The IBM Netvista
kiosk running a
Netkey-powered
retail application.
- 14. A Netkey White Paper
12© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Ongoing Maintenance
Lastly, you’ll need to consider who will service your network of kiosks – from the
mundane every day tasks like “windexing” the screens to replenishing ink cartridges and
paper.
Engaging a kiosk solution company to provide all or some of the above services has
many advantages. Having worked with different enclosure manufacturers, peripheral
providers, and kiosk servicing companies, the vendor will be able to recommend the best
solution for your needs, and if necessary, integrate all of the necessary elements to
provide a total turnkey solution.
You can also capitalize on the vendor’s experience and resources and save the time and
cost of acquiring this expertise in-house.
- 15. A Netkey White Paper
13© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Decision Factor #2: Cost
Another key factor that organizations immediately zero in on when making a buy or build
decision is cost. If you custom program your system from the ground up, you will need to
calculate hard costs in terms of the human resources it will take to design, develop, and test
your solution. If you use pre-packaged software as a framework for building your solution, the
costs will include any costs related to time spent evaluating and selecting a software solution,
the cost of the software licenses, and any related costs for additional time spent customizing the
application once you have the packaged software in house. If you outsource your project
entirely, there will be additional professional services fees.
When it comes to self-service kiosk projects, organizations may find that estimating “build costs”
can be tricky. Because the industry is still in its infancy, organizations (especially those
embarking on a kiosk project for the first time) can often miss the mark when scoping out the
time and resources required to design, develop, and test their solution.
For example, one large bank spent a full year and over $700,000 developing a custom kiosk
software solution. When the bank’s IT department estimated that it would cost another $100,000
to add a feature that had been omitted from the original scope of work, the company started
looking at alternatives. In hindsight, the bank discovered that a packaged solution approach,
combined with a professional services engagement, would have cost half as much as
developing the application in house.
If you are considering building your own self-service solution from the ground up, it could take
your organization many thousands of days and cost hundreds of thousands of dollars to
replicate all of the powerful features found in these advanced kiosk software packages. In fact,
by some estimates, using packaged software as a platform on which to develop your solution
can result in substantial cost savings when you consider the time and resources it would take to
design, develop and test a comparable solution in-house.
Costs based on estimated person days to design, develop and test software solution in house vs. cost to license or purchase
purpose-built kiosk software; estimates based on 250 kiosks. SOURCE: Netkey
- 16. A Netkey White Paper
14© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Why is it more cost effective to use packaged software? When you buy pre-packaged software
you are sharing the costs that the developer incurred to create the software with the many other
organizations that will purchase the same product. Let’s say for example it cost your company
$1 million to develop a system internally. Your organization would have to absorb the entire cost
of that development. On the other hand, if a commercial software development firm invests $1
million to develop a packaged solution, the company does so with the expectation that the
package will be licensed to multiple clients. The firm does not have to recover its entire cost
from one client.
Here are some other important cost-related factors to consider in your buy or build decision:
Hidden costs: When evaluating the cost of developing your own custom software, don’t
forget the hidden costs. For instance, even though the cost of a programmer may be
calculated by the hour, or day, this rarely includes intangibles, such as benefits, health
care, and pension, or the cost of office tools such as a computer, a desk, and office
space. When all of these are included the average cost of a capable software engineer
can easily reach $150,000 per year.
Lost opportunity costs: Programmers often get mired in other details of the project
long after testing is complete and your self-service initiative is well underway. You
should also consider the associated “opportunity costs” arising from lost engineering
time when members of your IT team are called on to assist with support, training or
documentation. Ask yourself, “What other important internal business projects might they
have been working on instead?”
Documentation: Technical documentation is especially critical when the system is to be
maintained by internal staff, because it must be assumed that the “experts” on the
system at the time of development won’t be around forever. Don’t forget to factor in the
hours required to produce this documentation.
Tech support: The project doesn’t end on the date the system goes “live.” Whether your
kiosks are being deployed in a bank, retail location, or on an automobile showroom floor,
your field representatives – who are not likely to be as tech-savvy as your IT team – will
require assistance throughout the life cycle of the application. Who will take their phone
calls? Who will provide day-to-day tech support? Who will answer their questions when
problems arise? What is the cost of providing this support?
Monitoring: The kiss of death for a self-service project is a kiosk that is out of order. It
only takes one bad experience to sour a customer, and possibly ruin your reputation.
What infrastructure will you provide to ensure your kiosk network is up and running
24/7? Will you develop your own software to automate this critical function? Who will be
responsible for monitoring your kiosks and troubleshooting any problems that arise?
Content management: Your business is continuously adapting to changing market
conditions. Your self-service solution must adapt as well. How will you keep your kiosk
content up-to-date? Will a business user be able to update content and manage your
kiosk network without the involvement of IT?
- 17. A Netkey White Paper
15© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Maintenance, ongoing enhancements: Software is rarely stagnant. As your business
model changes, you will want to enhance your self-service application. Also, if you’ve
built your application in house, you will need to allocate time and resources to maintain
the software, as bugs are uncovered. When it comes to maintenance costs, pre-
packaged software usually provides a significant advantage over the “build-it-yourself”
approach. Paul Scarpa, an analyst at The Yankee Group in Boston notes: "Even today,
you're seeing many of the largest companies reconsidering their internally developed
software because it's not just an issue of how much it costs to deliver. Eighty percent of
the cost of software is in maintenance.” 6
Front-loaded costs and risks: In many environments, organizations are developing
new customer touch-points around the Internet, kiosks and wireless devices. There is a
strong willingness to adopt kiosk technology. However, organizations with substantial
self-service deployments usually opt to conduct kiosk pilots before a full-scale rollout.
This has implications for a buy vs. build decision.
When an organization makes a decision to build a self-service solution in house, the up-
front costs of custom programming come at the beginning of the project’s life cycle. All of
the development costs, and the associated risks are incurred before the pilot is
completed and before the company has had an opportunity to test out whether the
solution is likely to produce a solid return on investment.
On the other hand, using pre-packaged software helps to minimize this up front risk and
cost since you only need to purchase as many software licenses as are required for the
initial kiosk rollout. The software investment for the full-scale rollout can follow, after the
project has been fully validated through the pilot stage.
One last key point on cost considerations – as we move into the age where technology not only
supports business, but enables and creates business, many organizations are edging away
from focusing on costs as a key criteria in buy or build decisions and evaluating the potential
return on their opportunity.
“Rather than looking at cost, the real bottom line is opportunity,” notes Gartner. “How many new
services can you create, provision, deliver, monitor, manage, and account and bill for with your
‘business infrastructure software’ investment? And what is the cost of not doing so, quickly and
effectively?”7
6
“Web site upgrades: build or buy?,” Computerworld, Carol Sliwa, January 17, 2000
7
“The buy vs. build dilemma,” Network World Network Systems Management Newsletter, Dennis Drogseth, October 30, 2000
- 18. A Netkey White Paper
16© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Decision Factor #3: Resource Issues
There are other resource issues, not related to costs or experience, to consider when making a
buy or build decision for your kiosk project. Reorganizations, downsizings and re-engineering
are affecting build vs. buy decisions, because leaner organizations have less time and staff
available to build applications. Consider the following resource-related issues when making a
buy or build decision for your self-service project:
IT bandwidth: Depending on the magnitude and complexity of your kiosk project, it can
take a team of 5 to 6 developers and 2 quality assurance testers about a year to design,
develop and test a kiosk solution. Do you have the IT bandwidth to take on a project of
this magnitude internally? And perhaps even more importantly, will your organization
have the bandwidth to support ongoing application development? This can be especially
problematic for smaller and mid-sized companies that have fewer resources to allocate
to IT projects beyond those that are internal in scope.
Additionally, consider whether scheduling issues and resource constraints might put a
damper on your kiosk project.
Also ask, how is my IT department’s time best utilized, given current business objectives
and priorities?
The connection between capability and quality: Another factor in a buy vs. build
decision is the maturity of your application development (AD) organization. “Poorly
structured organizations (in terms of their use of project management, development
methodologies, metrics, data administration and other factors) tend to produce lower-
quality systems,” notes Gartner. “Enterprises poor in AD technology have trouble
delivering applications in a timely manner. Enterprises should do a self-assessment to
determine their level of AD maturity. This level is likely to be rated lower in light of
complex architectures and technologies, such as those found in CRM projects.” 8
IT Churn: The biggest nightmare of software built in-house or by a contractor is that the
author will leave, and nobody else will know how the code works or even where the code
is. Companies can become trapped when key developers involved in the projects leave
or move on to other projects. When making a buy vs. build decision, always assess your
IT churn risk. Ask yourself what you would do with 2 million lines of code, no system
design documentation, and no one with any prior experience on the system? When your
engineers leave the company, the knowledge leaves with them.
8
“CRM Applications: Buy, Build or Outsource?,” Gartner, Inc., September 2000
- 19. A Netkey White Paper
17© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Decision Factor #4: Time to Market
Many custom software projects fail because they do not meet all of their cost, schedule, quality,
or requirements objectives. In the worst-case scenario, failures are often discovered post-
mortem when it is too late to change direction, and the kiosk project never gets off the ground.
In other cases, unforeseen requirements can delay your project’s launch. Many times,
companies embark on kiosk projects without fully understanding the magnitude of the task. A
custom programming team can believe they are 90 percent done with a project when they run
into a "little snag" that takes them 6 months or longer to fix. By the time the project is
“completed,” your business strategies have changed and your self-service solution is no longer
viable. Combine that with other IT projects that get thrown into the mix, and shifting IT priorities,
and your self-service project could end up permanently grounded.
If time to market is a key consideration for your buy vs. build decision, you should consider the
following:
Development time: As mentioned previously, it would take a team of 5 to 6 developers
and 2 quality assurance testers about a year to replicate the features found in most
packaged kiosk software solutions. On the other hand, using “off-the-shelf” software,
kiosk projects can be brought to market very quickly.
Time to market estimates based on estimated time to design, develop and test software solution in house vs. estimated time to
deploy solution using purpose-built kiosk software. SOURCE: Netkey.
- 20. A Netkey White Paper
18© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Fast ROI: One of the most important criteria for an IT investment, especially in the retail
industry, is achieving a fast ROI. Using purpose-built packaged software as a foundation
for your self-service solution can shave months off of your development time, which not
only translates into faster time to market, but a quicker ROI as well.
Competitive edge: In today’s competitive marketplace, faster time to market can mean
more than a “first-mover” advantage. It can literally mean survival. A packaged software
approach to developing your self-service solution can help you get to market faster,
enhance customer service, and give you a competitive edge.
The functionality slope: Buying a packaged solution means you can get more features
faster. On the other hand, building your own solution usually means you get critical
features initially and the rest of the features “along the way.” In fact, companies that
undertake custom development of their own kiosk solution in house often find that their
projects never seem to get past the 90 percent complete stage as a result of “scope
creep.”
- 21. A Netkey White Paper
19© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Decision Factor #5: Risks
Companies that choose to build their own complex self-service solutions from the ground up
face many risks including budget overruns, time delays and worse still, projects that can
become abject failures. Many failures originate before the first line of code is even written, due
to ill-conceived projects.
According to a widely quoted survey of thousands of software projects (conducted by the
Standish Group), only one-sixth of all software projects were completed on time and within
budget; 40 percent of software projects failed completely; an additional 33 percent were
“challenged” (meaning that they were completed late, went over budget, or were completed with
fewer features and functions than originally specified).9
Additionally, the survey reported that close to 53 percent of the projects cost 189 percent of
original estimates, substantiating what most commercial software firms and many public sector
development staffs already know – it is extremely difficult to estimate the time and expense
associated with a major development project at the outset of the project.10
Packaged software minimizes these risk factors. First of all, the cost of implementing a self-
service solution using packaged software is easy and straightforward to calculate.
Secondly, when you use packaged software as a platform for your kiosk solution, you can take
comfort in the fact that you are building your customer facing application on a platform that has
been time-tested and proven through many deployments and potentially billions of customer
interactions.
An outsourced monitoring service or server-based monitoring solution can also take the day-to-
day worry out of your kiosk network by providing a centralized, cost-effective way to monitor and
analyze system performance for large numbers of kiosks on a 24/7 basis.
The monitoring system checks the kiosk’s heartbeat and other vital functions. Administrators or
technicians can monitor kiosks online at a glance. The system can even generate an e-mail
alert notification when problems do occur. While a monitoring solution is critical to a kiosk
project’s success, it is often an afterthought for companies that take on an entire self-service
project in house.
Minimizing the risk of kiosk failure is critical when you consider that your self-service application
– like so many other corporate touch-points – is your face to the customer. A kiosk that is not
working will not only hurt your company’s image but will likely result in lost revenue as well.
9
“Buy vs. Build – A key decision in the public sector software procurement process,” Systems & Computer Technology Corporation,
March 2000
10
Ibid
- 22. A Netkey White Paper
20© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Decision Factor #6: Flexibility, Adaptability and Scalability
Your self-service solution will need to adapt over time to new market conditions, new customer
needs, changes in business strategy, and emerging technology. Organizations that build self-
service solutions from the ground up can often find that they code themselves into a corner.
Translation – they end up building a solution that is not flexible, adaptable or scalable.
One software consultant compares building a software solution to building a house. “You should
“’plumb’ and ‘wire’ for features and additions you have not thought of yet,” he notes. “Then,
when unanticipated needs or business changes arise, you can add or modify without performing
the software equivalent of ‘ripping apart the walls and rebuilding them again.’” Unfortunately, the
consultant adds, oftentimes, software developers will “build with no more forethought than the
man who built a beautiful boat in his workshop and then could not get it out the door. If you do
the [architecture] right, no one will ever realize it. But if you do it wrong, you will suffer death by
a thousand cuts. Bad choices show up as long-term limitations, aggravation, and costs."11
One key advantage of taking a pre-packaged software solution approach to building your self-
service application is that it will be easier to adapt down the road. Consider the following:
Reconfigure vs reprogram
Before pre-packaged kiosk software was readily available, early adopters of kiosk
technology found out the hard way that the software solutions they had hard coded were
not readily adaptable or scalable as the organization’s needs changed.
One company that deployed kiosks at tradeshows related its frustration over a custom,
hard-coded solution. “There were huge problems with the system design,” said the
project leader for the company. “It should have been a database-driven application.
Instead, it was hard-coded. It was rather a nightmare. We would need 2 to 3 people on-
site to implement this system whereas it should have taken just one. Conceptually, it had
a lot of opportunity but it just didn’t pan out.“
In the past, tweaking your self-service application meant going back to your IT
department for programming resources – an often costly and time-consuming
proposition. In contrast, with today’s packaged kiosk software, a business user with little
technical experience can easily reconfigure a self-service application using browser-
based configuration and authoring tools. For example, if you have a self-service ordering
kiosk you can easily add new products or new categories of products for customers to
view or order. Want to “dress up” your kiosk for the holidays or update your kiosk
interface’s look to match your new branding? You can quickly “trade out” and remotely
update background images, buttons and other design elements for all kiosks on your
network without any IT assistance.
Single purpose vs repurposed
Additionally, self-service applications that you build using pre-packaged software are
easily repurposed. One executive from a large Canadian retailer that owned and
operated department stores under different brand names recently related to us his
frustration over a gift registry application that the company had developed for one of its
11
“Major Causes of Software Project Failures,” Crosstalk: The Journal of Defense Software Engineering, Lorin J. May, July 1998
- 23. A Netkey White Paper
21© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
retail outlets. The application was wildly successful and the company wanted to roll it out
to another group of department stores. However, the application was not readily portable
because the company had followed a hard-coded rather than a template-based
approach to designing the solution. It was not adaptable to the other store’s systems,
products, or brands. In contrast, today’s enterprise self-service software platforms
employ a data-driven application engine and easily editable design templates. A self-
service application developed for one retail outlet can be rapidly repurposed and
deployed for a sister company in a matter of days.
Adding peripherals: today a printer, tomorrow a credit card reader
As your requirements change, you can also easily integrate new peripheral devices
without the need for custom coding. For example, one well-known bookseller developed
a virtual sales assistant/inventory extension kiosk that customers use to search for
books, videos and compact discs. The kiosk also incorporates a “print it” feature that
allowed customers to print out information relating to the titles of interest to them. If an
item is out of stock, customers can use the kiosk to check to see if it is in stock at
another local store, or find out how long it will take to deliver to the store for pick up.
Currently, customers cannot actually order or pay for books using the kiosk. However,
because the application was created using pre-package software that includes
embedded peripheral wizards, this is a capability that can easily be added in the future
without re-engineering the entire application.
Updating kiosk content
To be flexible and adaptable, a kiosk management system should incorporate browser-
based content management and scheduling tools that allow a business user to manage
and update kiosk-specific content from a central location through an easy-to-use, self-
service desktop. Using these tools, a person with virtually no technical skills can change
the look or content that appears on a kiosk, even customize kiosk content to a specific
kiosk or group of kiosks, or based on a pre-determined schedule (e.g. a day of week or
time of day). Content updates can be done remotely without any on-site technical
assistance.
Field Techs…
click here to
install kiosk
Web Architect…
upload interfaces
and content
Administrators…
create profiles
and settings
Marketing…
create and view
reports
Business Users…
create and
maintain location
and item data
- 24. A Netkey White Paper
22© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
The architecture of today’s kiosk software platforms also lets you leverage your internal
data sources (e.g. product, inventory, pricing, or other data) to dynamically display
content on your kiosk interface based on a user’s specific menu selections. For the
displayed content to relevant to the user, the data “driving” the application must be
accurate and up-to-date.
The newest enterprise kiosk software platforms incorporate a database that can support
store-level and item-level data. This accommodates differences in pricing down to a
store level, in addition to sale pricing and item organization by department or
manufacturer. The software also provides utilities (data loaders and data refreshers) that
non-technical business users can use to modify and update the data. Through a browser
interface, a user can maintain stores, items, available quantities, handling instructions,
and many other attributes. Data can be updated and maintained without the
involvement of technical personnel.
Multiple applications – one platform
When self-service solutions are custom-built, they are often architected with little
foresight as to future applications. For example, a retailer may build a virtual sales
assistant (VSA) application for a specific product line – digital cameras, for instance.
The digital camera VSA application turns out to be so successful that the retailer decides
to create more VSAs for other departments and product lines. This would be a time
consuming and costly endeavor in a hard-coded environment.
In fact, one of the big challenges for retailers and other companies undertaking self-
service initiatives is the proliferation of stand-alone, single purpose kiosk solutions. While
many of these applications have demonstrated a substantial return on investment,
companies are struggling to support the disparate technologies upon which they are
built. It is not uncommon for different kiosks to have different hardware and software
components, networking requirements, and even different contractual support
requirements.
The newest enterprise self-service platforms address this need by providing a common
architecture to support any number of kiosk applications. This is accomplished through
the use of a common database and common navigation engine. You can use the same
platform to create a variety of virtual sales assistant (VSA) applications for different retail
departments. Additionally, the same platform used to create a VSA today can be used to
deploy a gift registry application or inventory extension application down the road, if your
business plan calls for it.
You can also use a single platform to create a double-duty kiosk – one that is customer-
facing during the day (e.g. a gift registry kiosk) but transforms into an employee-facing
kiosk after hours (e.g. for HR self-service).
One application – multiple environments
Another benefit of taking a packaged software solution approach to building your self-
service application is that you can create a data-driven self-service application and then
deploy it in multiple environments. Self-service applications can be delivered in both
kiosk and Web environments, increasing access to your application, ensuring
consistency of message and brand, and saving time and money.
- 25. A Netkey White Paper
23© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Scalability: growing your kiosk network
Consider this likely scenario. Your initial kiosk plan calls for a 50-kiosk network. Your IT
organization programs your solution to this exact specification. One day, you discover
that your kiosk program is very successful and you want to add kiosks in 1000 new
locations. Chances are if you custom programmed your solution, you will need to get
your IT department to do a lot more programming to scale to that number of kiosks.
In contrast, building a kiosk network using packaged self-service software makes it very
easy to scale your solution down the road. Once the kiosk hardware is installed on-site
and a network connection is established, your kiosk application can be easily installed
on additional kiosks simply by popping a CD into the kiosk drive. The program
automatically runs an installation and configuration process and reboots the kiosk. In
minutes your new kiosks are operational and ready for use.
Adapating to technology changes
Building your self-service solution on a pre-packaged software platform also means your
solution will be more adaptable to whatever technology changes the future may bring.
More than likely your IT department won’t have the time and resources to stay on top of
these self-service technology trends. On the other hand, a self-service software
company’s very survival may hinge on doing so.
This includes keeping software up-to-date and compatible with new operating systems,
hardware platforms, peripheral devices, programming languages, and databases. It also
includes tracking new advancements in technology that can enhance the value of, and
possibly even lead to the creation of new self-service applications.
For example, many kiosk solution providers are already integrating new technologies
(handheld scanners, shelf-mounted touch screen displays) into kiosk applications, and
researching how other technologies (PDAs, Internet-ready phones, voice recognition,
etc.) will play a role in the self-service experience of the future.
Application Integration
Many companies looking to deploy self-service technology also typically want to layer
additional applications – like a gift registry, virtual sales assistant, or inventory extension
application – on top of the standard kiosk functionality. These applications require
integration with other sources of information, such as POS, inventory, pricing and
customer data.
Taking on this integration programming in house can be a huge endeavor. On the other
hand, leveraging an enterprise platform purpose-built to solve these business problems
can significantly reduce the amount of coding that is required for multiple applications,
accelerating your time to market and lowering your cost of ownership.
- 26. A Netkey White Paper
24© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Choosing A Self-Service Solutions Provider
As mentioned at the beginning of this paper, there are various options for implementing a self-
service solution. If you are leaning in the “buy” direction, here are some questions that can
serve as guidelines for choosing a self-service technology company:
Experience: Assess the company’s experience in the self-service industry. How long
has the company been in business? Does the company have a proven track record of
delivering self-service solutions? Who are some of the company’s key customers? (Ask
for examples of successful customer deployments.) Has the company done a project
similar to your project? Has the company won any industry awards that demonstrate its
technology leadership? Has the company been awarded any patents for its technology?
Total solution: If necessary, can the company provide a total, turnkey solution that
addresses your needs? If the company provides only one component of the solution
(e.g. software, hardware, etc.), does the company partner with others in the industry to
provide a total client solution? Who are some of the partners with whom the company
does business?
Maximum ROI: Does the company offer consulting, design and implementation services
to assist you in developing and implementing your self-service solution to ensure a
maximum return on investment?
Accelerated time-to-market: If you are thinking of implementing a complex data-driven
kiosk application, does the company offer an enterprise solution that will minimize
custom coding and accelerate your time-to-market?
Lower cost of ownership: Can the company provide a common architecture to support
all of your self-service applications, today and in the future?
Dual purpose tool saves time, money: Does the company offer a dual-purpose
solution that lets you create self-service applications that can then be deployed both on
premises and online?
Easy-to-use and maintain: Does the company’s solution provide graphical
administration tools and powerful content management capabilities that can be used by
business users for easy management and updating of kiosk content?
Mission critical reliability: Can the company provide a monitoring solution to ensure
that your kiosk application is bulletproof, and that customers who use your kiosk are
getting the service they expect and deserve?
Support: Does the company offer support services ranging from technical support and
training, to a fully outsourced support staff?
Adaptability, scalability and flexibility: Can the company provide a self-service
solution that is flexible, scalable and adaptable? Will the solution be able to address new
market conditions, new customer needs, and changes in technology when they occur?
- 27. A Netkey White Paper
25© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Conclusion
In this white paper, we’ve explored the benefits of a packaged software approach to building
self-service applications and provided some practical guidelines for selecting a kiosk solutions
provider.
There are a number of key decision factors to consider in making a buy or build decision for a
self-service solution. These include: core competencies; costs; resource issues; time to market;
risks; and flexibility, adaptability and scalability. When all of these decision factors are
examined, we find that “buying” self-service software has numerous benefits over “building” a
solution from scratch. (See chart on page 26, “Summary of Buy vs. Build Decision Factors
for Self-Service Kiosks” for details.)
Packaged kiosk software incorporates years of experience and lessons learned from thousands
of customer deployments, and features that are essential for successful self-service
applications. Replicating all of these powerful features could take many thousands of person
days and hundreds of thousands of dollars. Using a packaged kiosk software solution, you can
very quickly create and deploy your self-service application, and maintain that application for a
very low cost of ownership.
As stated earlier in this paper, the buy vs. build decision for developing a self-service application
is not black or white, but shades of gray. There are various options for implementing a self-
service solution, leveraging the strengths of your internal resources and the vast expertise of a
reputable kiosk solution provider. If your organization lacks the core competencies to develop a
self-service solution, you can also engage the design and implementation services of a
company that has expertise in this area.
There are many benefits to this approach. A company with expertise in this area can help you to
take a more ROI-driven approach to your self-service solution. Additionally, having deployed
thousands of kiosks and understanding the unique interactivity requirements of public-access
self-service devices, the vendor will be able to create a solution that will maximize both your
customer’s experience and your return on investment.
Kiosk projects are also an iceberg of complexity. The vendor can help you wrestle through all of
the different facets of the project – from interface design and peripheral requirements to
connectivity issues, enclosure considerations, and other integration concerns – to bring your
solution to market on time, within budget, and with enhanced reliability. Using this approach,
you can shave many months off of your development time, which translates into faster time to
market and a quicker ROI.
Lastly, building your self-service solution using packaged software, instead of custom coding
from the ground up, protects your investment for the future. Your kiosk application will be able to
more easily adapt to new market conditions, new customer needs, changes in business
strategy, and emerging technology.
- 28. A Netkey White Paper
26© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
SUMMARY OF BUY VS. BUILD DECISION FACTORS FOR SELF-SERVICE KIOSKS
Buy Build
Decision
Factors
Pre-packaged software Outside
professional
services
Build self-service solution
in house
Core
Competencies
& Experience
Packaged software incorporates best practices and
learning from thousands of deployments
Allows you to tap into vendor’s
experience and lessons learned
Ensures ROI-driven (rather
than feature-driven) approach to
self-service solution
Ensures that unique
interactivity requirements of kiosk
medium are addressed
Ensures multi-faceted
expertise required for success
Saves time and cost of
acquiring expertise in house
No window into self-service failures and
successes; what works and what doesn’t
Customer-facing technology has unique
requirements; traditionally MIS organizations
focus on designing solutions “that keep
people out”
Lack of domain knowledge and
experience can result in a poorly designed
solution
Difficult to obtain all of the cross-
disciplinary skills in house
Costs
Provides platform and features essential for
successful self-service applications
Saves development time and money
Minimizes upfront costs (and risks) associated with
pilot kiosk deployment
Lower cost of ownership
Ensures project is done right
the first time, saving money in the
long run
Difficult to estimate scope and costs
Time consuming and very costly to
replicate features of purpose-built software
Higher development costs
Higher cost of ownership
Resource
Issues
Pre-packaged software platform eliminates resource
concerns, because solution is 90 percent built
Pre-packaged approach to building self-service
solution lets your company apply IT resources and time
to important internal initiatives
Building in house may require a large
team of developers, QA testers, etc.
Can take a year or more to deploy
Self-service project may compete with
other in house projects for time and
resources
Scheduling issues and resource
constraints can put kiosk project at risk
IT churn risk – when engineers leave the
company the knowledge leaves with them
Time to Market
Packaged software approach means you get more
features faster
Reduces development and deployment time
significantly
Translates into faster ROI and competitive edge
In house solutions can take a year or more
to develop
Get features “along the way”
Risks competitive edge, maybe survival
Risks
Your self-service solution is “your face” to the
customer. It must be bulletproof!
Packaged software is time-tested through billions of
customer interactions
Packaged monitoring solutions and services ensure
mission critical reliability and 24/7 uptime
Internal software projects can often result
in delays, cost over-runs or feature
deficiencies
Kiosk failure is the “kiss of death” for your
kiosk project, but monitoring solutions are
often an afterthought for in house initiative
Flexibility,
Adaptability &
Scalability
Business users can reconfigure the application using
browser-based configuration and authoring tools
Applications can be easily re-purposed and updated
Multiple self-service applications can be built on one
platform, maximizing your ROI
Applications can be deployed both in store and online
for consistent branding and greater customer access
Kiosk networks can be quickly and easily scaled
Powerful, data-driven custom applications can be
brought to market faster
Easily adaptable to future technology changes
Protects your IT investment for the future
Changes mean going back to IT for
programming resources
Hard-coded solutions are less flexible,
adaptable and scalable translating into lower
ROI, higher costs down the road, and a
shorter-lived IT investment
- 29. A Netkey White Paper
27© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Bibliography
Collett, Stacy. “Kiosk Mania: Retailers, Travel Companies Deploy Thousands of Kiosks,”
Computerworld, August 6, 2001
Dougherty, Heather. “Kiosks: Empowering Customers to Close the Sale,” Jupiter Media Metrix,
May 16, 2001
Drogseth, Dennis. “The buy vs. build dilemma,” Network World Network Systems Management
Newsletter, October 30, 2000
Eisenfeld, B; Amuso, C; Close, W. “CRM Applications: Buy, Build or Outsource?,” Gartner, Inc.,
September 2000
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- 30. A Netkey White Paper
28© 2002 Netkey, Inc. All rights reserved. Management software for the self-service channel
Netkey Resources
Netkey invites you to take advantage of these resources to learn more about self-service
technology and available products and services.
ATTEND A FREE EDUCATIONAL WEB SEMINAR
Are you planning a kiosk deployment? Don't miss the opportunity to sign up for a free Netkey
Web seminar and learn how to make your kiosk project successful. Learn the 15 best practices
for implementing a self-service kiosk. Discover the powerful applications and ROI of self-service
kiosks in financial service and retail environments. Hear how kiosks can quickly and cost-
effectively extend employee self-service from the desktop to a factory floor, warehouse,
cafeteria or other common area. Register online at http://netkey.raindance.com.
VISIT NETKEY’S ONLINE RESOURCE CENTER
If you're looking for resources relating to kiosks and self-service, you may want to visit Netkey's
Online Resource Center. Here you'll find a wealth of helpful resources including case studies,
customer profiles, collateral, newsletters, and articles galore. You’ll also find a collection of white
papers including our "Kiosk Applications and ROI" white paper that explores the applications
and benefits of kiosks in supermarkets, retail, financial services, employee self-service, and
other areas. Learn about the technology and services needed for a successful kiosk
implementation, and take a look at how leading organizations are employing self-service
technology in a variety of applications to produce positive results. The Online Resource Center
also serves as a portal to other information-rich Web sites for the self-service industry. Go to
www.netkey.com and click on “resources.”
TRY NETKEY CREATOR OR CREATOR STUDIO FREE FOR 30 DAYS
A powerful kiosk application authoring software package, the patented Netkey Creator software
is purpose-built for developing robust Web-based self-service applications. Use Netkey Creator
to design and deploy public access Web applications with user-friendly interactive touch-screen
interfaces, URL restriction and surf control, keyboard lockdown and multimedia welcome
screens. Designed for advanced developer needs, Netkey Creator Studio lets you use common
scripting languages to create robust transactional kiosk applications that seamlessly integrate to
a host of peripheral devices - such as credit card readers, bill acceptors, bar code readers and
security mats. To try Netkey Creator or Netkey Creator Studio free for 30 days, go to
www.netkey.com and click on “Download free trial.”
Netkey, Inc.
32 Park Drive East
Branford, CT 06405
Web site: www.netkey.com
Web seminars: http://netkey.raindance.com
Toll-free: 800.443.7924
Ph: 203.483.2888
E-mail: info@netkey.com