Quick Order Pass
Presented By: Carlton Northern
Representing: Team Orange
CS410 - Professional Workforce Development I
Team Members
Andrej Ciric
Project Manager
Christian Crisostomo
Demographics
Kevin Jones
Competition Assessment
Christopher Roberts
Technical Feasibility
Software Development
Michael Schaefer
Management Methods
Carlton Northern
Statement Support
Marketing
Overview
Societal Problem
 Proposed Solution
 Project Objectives
 Feasibility

Societal Problem
The ordering process in coffee shops is
time-consuming, inconvenient, and
inefficient.
Traditional Transactions
Cash Register
Operator
Customer
Order

Time Consuming
 Inefficient
 Inconvenient
 Error prone
Amount Owed
Cash/Credit
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
Customer
Order & Payment

Saves time
 Order is Accurate
 Payment is Accurate
 Convenient
 Cash Register Operator
is optional
Receipt
Consumer Use

Consumer waves transponder in front of reader.
Solution Characteristics

What the Quick Order Pass will do:
Allow simultaneous order and payment
 Greatly reduce miscommunication
 Be Flexible / Reprogrammable
 Store complex orders

Solution Will Not
Eliminate kitchen errors
 Interfere with current ordering systems



Can always order and pay the old way
Work 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 funding
 Pursue patent/copyright and licensing
 Sell and implement system to coffee
shops

Management Organization

Weekly team meetings

Take minutes


Post to forum
Schedule deadlines
Team assignments
 Team status checks

Established Communication
 Software 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 Identification
Components: Reader/Writer, Antenna, Tag
 Function: 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 Range
Read
Only
8 bits
Low
Read/Write
128 bits
Read/Write
1024 bits
Read/Write
256 Kbytes
Inexpensive
125-148 KHz
High
13.56 / 433 MHz
UHF
915 MHz
Microwave
2.4 GHz
$.46
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?
Starbucks Survey
60
98%
Amount of People
50
70%
40
52%
54%
30
48%
46%
30%
20
10
2%
0
Yes
No
A
Yes
No
B
Yes
C
No
Yes
No
D
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?
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 desire


Intellectual property rights


Starbucks Card: 35 million cards activated
to date.
Non-disclosure agreements
Retrofitting cost
Quick Order Pass:
Cost to individual coffee shop
Item
Number
Base Cost Total
RFID Tags
Dependent upon
customers served
Est. 2000
$1.00
RFID Readers
Dependent upon
~$80
number of registers
Est. 5
~$400
Data Cables
Assuming 5
readers
~$5
~$25
Licensing Fee
Dependent upon
customers
TBD
TBD
Mounting +
Installation
Assuming 5
readers
~$110
~$550
Grand Total
~$2000
~$2975
Profitability
Profitability From Tags
$2,000,000
$2,000,000
$1,800,000
Earnings
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$1,000,000
$800,000
$600,000
$400,000
$500,000
$250,000
$200,000
$0
$0
0
0.5
1
Tags Sold (in millions)
2
4
Development Staff Budget
Position
Number
of
Duration
Salary
Min
Salary
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 accurate
 Inexpensive
 Simple customer use
 Easily interfaced
 Convenient

Solution Disadvantages
Data must be stored the first time around
 Will not prevent kitchen errors
 Lost tags must be replaced
 Existing registers must be retrofitted

Summary
Efficient and convenient
 Based on developed technology

Highly accurate
 Inexpensive
 Easy to integrate


Strong market potential