Automated Service Kiosk Milestones CS 410 Fall 2005 Presented by: Mylène Cover 16 November 2005 16 November 2005 CS 410 Red Group - A.S.K. 1 Team Organization Janet Brunelle General Manager Mylène Cover Project Manager Enrique Polanco Research and Marketing 16 November 2005 Keegan Morrison Hardware Specialist Web Master Scott Washburn SBIR Specialist Software Specialist CS 410 Red Group - A.S.K. Jared Miller Finance Web Master 2 Outline Problem & Solution Phases Milestones & Deliverables Budget Management Structure Staffing Design Plans Required Hard Resources 16 November 2005 CS 410 Red Group - A.S.K. 3 Societal Problem Defined Poor customer service is a cause for low customer retention. 16 November 2005 CS 410 Red Group - A.S.K. 4 Shopping Experience 16 November 2005 CS 410 Red Group - A.S.K. 5 Did you know…? Poor customer service is on the top ten list of reasons why businesses fail. - Center for Entrepreneurship 16 November 2005 CS 410 Red Group - A.S.K. 6 Belmont University: Center for Entrepeneurship 09/22/2005 [http://forum.belmont.edu/cornwall/archives/003452.html ] Why do customers leave? 16 November 2005 CS 410 Red Group - A.S.K. CRMGURU.com [http://www.rightnow.com/resource/RN_LoyaltyCRMGuru.html] 7 Customer Facts After a particularly bad experience with a service provider/customer service representative, these customers: Give feedback 4 Complain to family and friends 75 Take business elsewhere 85 0 20 40 60 80 100 Customer Percentage 16 November 2005 CS 410 Red Group - A.S.K. ITESGrads [http://www.bpoindia.org/research/customer-retention.shtml] 2004 Customer Service Survey Results [http://www.amdocs.com/documents/survey-results.html] 8 Problem Characteristics Customers unaware of all of their options Customers leave when they cannot find items Rearranged/sale item location Confusion Lack of information Not all associates are domain experts Associates difficult to find quickly Product availability 16 November 2005 CS 410 Red Group - A.S.K. 9 Keep your customers! 16 November 2005 Repeat customers spend 33% more than new customers It costs 6% more to sell to a prospective customer than to an existing customer Referrals among repeat customers are 107% greater than new customers Customers are 50% more likely to be influenced by word-of-mouth as opposed to ads CS 410 Red Group - A.S.K. Strategiy.com [http://www.strategiy.com/feature.asp?id=20051003030433] Stylus Systems, Inc. [http://www.outsource2india.com/services/customer_interaction_services.asp] 10 Proposed Solution Defined/Goal Provide an in-store customer service terminal that will serve as an alternative source of knowledge and help for consumers. 16 November 2005 CS 410 Red Group - A.S.K. 11 Solution Characteristics Display all available items at specific store Notify of stock availability Produce a map of inventory general location Compare products Explain key terms/in depth or quick overview of product description Analyze queries and hits/misses Notify of sales/availability of coupons Give customers an outlet for voicing in-store experiences 16 November 2005 CS 410 Red Group - A.S.K. 12 A.S.K. System 16 November 2005 CS 410 Red Group - A.S.K. 13 Technical Components Touch screen monitor ASK software 16 November 2005 Thin clients Inventory database interface Internal database Network connection Server CS 410 Red Group - A.S.K. 14 Scope 16 November 2005 CS 410 Red Group - A.S.K. 15 A.S.K. Database Overview ASK Database Integration Software Store Inventory Database ASK Interface Software ASK MySQL Database Predictive Analysis Database 16 November 2005 CS 410 Red Group - A.S.K. ASK KIOSK Inventory Database Product Name UPC Code Specifications Price Availability Location Coupons 16 A.S.K. will not… Replace associates Collect personal information from the shopper Act as a point-of-sale device Have autonomous inventory updates 16 November 2005 CS 410 Red Group - A.S.K. 17 Project Objectives Design a friendly customer interface Produce interface with inventory database Design and organize queries to databases for product comparisons and search analyses Create ability to notify customer of sales/coupons 16 November 2005 CS 410 Red Group - A.S.K. 18 Pros 15% to 20% average increase in sales Improve customer experience Help is there when needed Provide efficient help alternative Decreased wait time Improved response time Immediate gratification Better inform customers of products available Analyze the inquiry process Keep customers, increase sales, succeed! Increased customer satisfaction = increased sales 16 November 2005 CS 410 Red Group - A.S.K. Kiosk Market Sales [http://www.kioskmarketplace.com/news_story.htm?i=22182] Inter-media Kiosks [http://www.intermediakiosks.com/news/03-09-26_pressrelease.html] 19 Cons Complexity of administration and maintenance Customer reluctance Associates might feel replaced 16 November 2005 CS 410 Red Group - A.S.K. 20 Ideal Customer Store that: Is highly profitable Products available: High-end products Products that require explanations/help during purchase Has a large customer base Has a problem with customer service 16 November 2005 CS 410 Red Group - A.S.K. 21 Market Share Comparison 500 450 400 350 300 250 200 150 100 50 0 16 November 2005 469 Best Buy Circuit City Office Max 173 70.9 2004 Yearly Income (in Millions) CS 410 Red Group - A.S.K. 22 Best Buy Customer Service Rating on resellerrating.com: 2.04/10 Customer Testimonials: 16 November 2005 “Their customer service policy is a joke. “ “The management treated me as if I was a common criminal and made me pay a 15% restock fee even though I was exchanging an item for something else. I returned every thing I purchased with the order and canceled my best buy credit card. ” CS 410 Red Group - A.S.K. Reseller Rating [http://www.resellerratings.com/seller1823.html] 23 Marketing Plan Primary Target Market BestBuy Why Best Buy? Many stores 21 in Virginia 830 US & Canada 109,000 employees $469 million – 2004 Yearly Income Poor customer service 16 November 2005 CS 410 Red Group - A.S.K. 24 Marketing Plan Best Buy’s Vision Statement: “Best Buy meets its customers at the intersection of technology and life.” Best Buy’s Mission Statement: “We improve people’s lives by making technology and entertainment products affordable and easy to use.” 16 November 2005 CS 410 Red Group - A.S.K. 25 Kiosk Sales Increase Average of 15% - 20% increase in sales from customer-operated kiosks 100 93.80 80 60 70.04 Best Buy 40 20 0 15% 20% Projected Increase in Sales (In Millions) 16 November 2005 CS 410 Red Group - A.S.K. 26 Best Buy ROI Sales (in millions) Best Buy Projected Increase in Sales from A.S.K. 100 80 60 40 20 0 1 2 3 4 5 Years 16 November 2005 CS 410 Red Group - A.S.K. 27 Competition Matrix 16 November 2005 CS 410 Red Group - A.S.K. 28 Customer-Operated Kiosk Market Data 16 November 2005 CS 410 Red Group - A.S.K. JBS Interactive [http://www.jbsinteractive.com/opportunities.html] 29 Process Flow Customer Shopping for Camera Help is limited due to poor service Customer Approaches A.S.K. Main Menu Locate Compare Find Discount Customer Compares two cameras A.S.K. Informs Customer 16 November 2005 CS 410 Red Group - A.S.K. 30 GUI View 16 November 2005 CS 410 Red Group - A.S.K. 31 GUI View Product Specifications 16 November 2005 CS 410 Red Group - A.S.K. 32 GUI View Product Comparison 16 November 2005 CS 410 Red Group - A.S.K. 33 Estimated Hardware Cost Per Unit Price 3 Com Network Switch (up to 24 ports) Dell Precision 380n & Dell E153FPT Touch Screen Monitor (x5) Dell Xeon Server (x2) $550.00 $6,240.00 $10,000.00 Network Integration Materials $500.00 Installation $1000.00 Database License (MySQL) Free! Testing & Building $1,829.00 Total Cost $20,119.00 Added cost per additional thin client & touch screen monitor (each) 16 November 2005 Dell.com [http://www.dell.com] 3Com [http://www.3com.com/] CS 410 Red Group - A.S.K. $1,248.00 34 Monetary Feasibility Cost per Unit to Customer Cost: $50,000 Terminals (5) Server Networking Components 16 November 2005 Software CS 410 Red Group - A.S.K. + $1,500 per additional terminal 35 Phase 0: Conception ODU Semester 1 (CS 410) Q3 05 ID Task Name Start Finish Aug 1 0.0 A.S.K. Conception 8/29/2005 12/16/2005 110d 2 0.1 Develop Project Team 8/29/2005 9/1/2005 4d 3 0.2 Define Project 9/15/2005 9/25/2005 11d 4 0.3 Planning 9/18/2005 10/27/2005 40d 5 0.4 Initial Research 9/15/2005 11/20/2005 67d 6 0.5 Feasibility Presentation 10/25/2005 11/2/2005 9d 7 0.6 Plan Phases 9/12/2005 11/2/2005 52d 8 0.7 Documentation 11/10/2005 11/20/2005 11d 9 0.8 Milestone Presentation 11/16/2005 11/16/2005 1d 10 0.9 Approval Presentation 9/24/2005 12/1/2005 69d 11 0.10 SBIR 12/12/2005 12/12/2005 1d 16 November 2005 CS 410 Red Group - A.S.K. Q4 05 Q1 06 Duration Sep Oct Nov Dec Jan Feb 36 Phase 0: Conception ODU Semester 1 (CS 410) Deliverables Feasibility Presentation Milestone Presentation Final Presentation SBIR Grant Proposal Project Website 16 November 2005 CS 410 Red Group - A.S.K. 37 Phase 0: Conception ODU Semester 1 (CS 410) Management Structure Janet Brunelle General Manager Mylène Cover Project Manager Enrique Polanco Research and Marketing Keegan Morrison Web Master Scott Washburn SBIR Specialist Software Specialist Professor Dennis Ray CS Department Old Dominion University Dr. Larry Filer ODU Business Department Marketing Expert 16 November 2005 Jared Miller Hardware Specialist Finance CS 410 Red Group - A.S.K. 38 Phase 1: Proof of Concept ODU Semester 2 (CS 411) Q4 05 ID Task Name Start Finish Dec 1 1.0 Phase 1 12/13/2005 5/12/2006 109d 2 1.1 Develop Project Team 12/19/2005 12/30/2005 10d 3 1.2 Planning 12/30/2005 1/12/2006 9d 4h 4 1.3 Requirements 1/11/2006 2/28/2006 34d 4h 5 1.4 Set Up 3/1/2006 4/4/2006 25d 6 1.5 Design 3/22/2006 3/31/2006 8d 7 1.6 Developement 4/3/2006 4/21/2006 15d 8 1.7 Testing 4/24/2006 4/28/2006 4d 4h 9 1.8 Implementation 5/1/2006 5/4/2006 3d 4h 10 1.9 SBIR Phase 2 5/8/2006 5/12/2006 5d 16 November 2005 Q1 06 Q2 06 Duration Jan CS 410 Red Group - A.S.K. Feb Mar Apr May Jun 39 Jul Phase 1: Proof of Concept ODU Semester 2 (CS 411) Deliverables Assemble Team Papers Creative Writing Paper Descriptive Writing Paper Technical Supports Paper Budget White Paper User Manual Prototype Design Market Research Project Website Lab Prototype SBIR Proposal (Phase II) 16 November 2005 CS 410 Red Group - A.S.K. 40 Phase 1: Proof of Concept ODU Semester 2 (CS 411) Management Structure Janet Brunelle General Manager 1 Mylène Cover Project Manager Enrique Polanco Software Engineer Research & Marketing Keegan Morrison Software Engineer Web Master Scott Washburn Database Specialist Software/SBIR Specialist Jared Miller GUI Programmer Hardware/Finance Specialist Senior Software Engineer 16 November 2005 CS 410 Red Group - A.S.K. 41 Phase 1: Proof of Concept ODU Semester 2 (CS 411) Budget: Project Staffing Requirements Title Needed Yearly Salary Employment Duration Cost of Employment Software Engineer 2 $50,162 45 days $12,369 Senior Software Engineer 1 $73,533 30 days $6,044 Database Analyst/Specialist 1 $95,940 20 days $5,257 GUI Programmer 1 $56,743 20 days $3,109 Project Manager 1 $84,546 85 days $19,689 Overhead – 40% $18,587 Total Cost 16 November 2005 Salary.com [http://www.salary.com] $65,055 CS 410 Red Group - A.S.K. 42 Phase 1: Proof of Concept ODU Semester 2 (CS 411) Budget: Required Hard Resources Item Units Price Terminal Operating System (*nix) 1 Free Gcc Compiler 1 Free Mock MySQL Database 1 Free Mock A.S.K. Server 1 $5,000 Mock Inventory Database Server 1 $5,000 Employee Workstations (ODU provided) 5 $7,423 Network, Networking Materials (ODU provided) 1 Free Prototype Terminal 1 $1,248 Prototype Housing 1 $200 Total Cost 16 November 2005 $19,171 CS 410 Red Group - A.S.K. 43 Phase 2: Critical Design Q2 06 ID Task Name Start Finish May 1 2.0 ASK Phase 2 5/5/2006 5/2/2008 521d 2 2.1 Develop Project Team 5/5/2006 5/24/2006 14d 3 2.2 Planning 5/23/2006 6/9/2006 14d 4 2.3 Requirements 6/19/2006 7/21/2006 25d 5 2.4 Set Up 8/4/2006 10/5/2006 45d 6 2.5 Design 3/19/2007 6/25/2007 71d 7 2.6 Developement 6/25/2007 9/25/2007 67d 8 2.7 Testing 12/26/2007 1/22/2008 20d 9 2.8 User Documentation 2/18/2008 4/9/2008 38d 10 2.9 Implementation 4/9/2008 4/11/2008 3d 11 2.10 Prototype Developed 5/1/2008 5/2/2008 2d 16 November 2005 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Duration Jun Jul Aug Sep Oct Nov Dec Jan Feb CS 410 Red Group - A.S.K. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 44 May Phase 2: Critical Design Deliverables Product Design Specifications Management Plan Testing & Evaluation Plan Working Product Model Personnel Plan Software Integration of Hardware Marketing Plan Contract 16 November 2005 CS 410 Red Group - A.S.K. 45 Phase 2: Critical Design Management Structure Janet Brunelle General Manager Mylène Cover Project Manager Enrique Polanco Software Engineer Software Engineer X 2 Keegan Morrison Software Engineer Senior Software Engineer 16 November 2005 Scott Washburn Database Specialist Technical Writer X 2 CS 410 Red Group - A.S.K. Jared Miller GUI Programmer Quality Assurance Manager Marketing Manager GUI Programmer 46 Phase 2: Critical Design Budget: Project Staffing Requirements Title Needed Yearly Salary Employment Duration Cost of Employment Software Engineer 4 $50,162 90 days $49,475 Senior Software Engineer 1 $73,533 110 days $22,160 Database Analyst/Specialist 1 $95,940 75 days $19,714 GUI Programmer 2 $56,743 40 days $12,437 Project Manager 1 $84,546 240 days $55,592 Technical Writer 2 $39,846 30 days $6,550 Quality Assurance Manager 1 $87,423 110 days $26,347 Marketing Manager 1 $74,498 150 days $30,616 Overhead – 40% $89,156 Total Cost 16 November 2005 Salary.com [http://www.salary.com] $312,047 CS 410 Red Group - A.S.K. 47 Phase 2: Critical Design Budget: Required Hard Resources Item Units Price Terminal Operating System (*nix) 5 Free GCC Compiler 1 Free MySQL Database 1 Free Network Switch 1 $550 Network Integration Materials 1 $1,000 A.S.K. Terminal 5 $6,240 A.S.K. Server 2 $10,000 Employee Workstations 5 $7,423 Housing 5 $1,000 Total Cost $26,213 Store inventory database server (only if needed) 1 $5,000 Store inventory database (oracle, only if needed) 1 $40,000 Total with optional database & database server 16 November 2005 CS 410 Red Group - A.S.K. $71, 213 48 Phase 3: Production Out Years Q2 08 ID Task Name Start Finish Apr 1 3. 0 ASK Phase 3 5/5/2008 1/5/2010 611d 2 3.1 Develop Project Team 5/6/2008 5/8/2008 3d 3 3.2 Prepare Production 5/8/2008 12/22/2009 594d 4 3.2.1 Manufacture 5/8/2008 1/16/2009 254d 5 3.2.2 Warehouse 5/14/2009 8/10/2009 89d 6 3.2.3 Marketing 6/10/2009 12/12/2009 186d 7 3.2.4 Website 9/4/2009 12/13/2009 101d 10/2/2009 12/31/2009 91d 8 3.2.4.1 Website Front End 16 November 2005 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Duration May Jun Jul Aug Sep Oct Nov CS 410 Red Group - A.S.K. Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 49 Feb Phase 3: Production Out Years Deliverables Maintenance Customer Service Patches/Updates Newer Versions 16 November 2005 CS 410 Red Group - A.S.K. 50 Phase 3: Production Out Years Management Structure Janet Brunelle General Manager Mylène Cover Project Manager Enrique Polanco Software Engineer Keegan Morrison Software Engineer Senior Software Engineer 16 November 2005 Scott Washburn Database Specialist Technical Writer CS 410 Red Group - A.S.K. Jared Miller GUI Programmer Quality Assurance Manager Marketing Manager 51 Phase 3: Production Out Years Budget: Project Staffing Requirements Title Needed Yearly Salary Employment Duration Cost of Employment Software Engineer 2 $50,162 Annual $100,324 Senior Software Engineer 1 $73,533 Annual $73,533 Database Analyst/Specialist 1 $95,940 Annual $95,940 GUI Programmer 1 $56,743 Annual $56,743 Project Manager 1 $84,546 Annual $84,546 Technical Writer 1 $39,846 Annual $39,846 Quality Assurance Manager 1 $87,423 Annual $87,423 Marketing Manager 1 $74,498 Annual $74,498 Overhead – 40% $218,669 Total Cost 16 November 2005 Salary.com [http://www.salary.com] $831,522 CS 410 Red Group - A.S.K. 52 Phase 3: Production Out Years Budget: Required Hard Resources Maintenance/Service Outsourced Sub-contracted Workstations for developers (patches/updates/new versions) Re-used 16 November 2005 from prior phases CS 410 Red Group - A.S.K. 53 Milestones Recap 2005 ID Task Name Start Finish Q4 1 Phase 0 8/29/2005 12/16/2005 80d 2 Phase 1 12/13/2005 5/12/2006 109d 3 Phase 2 5/5/2006 5/2/2008 521d 4 Phase 3 5/5/2008 1/5/2010 437d 16 November 2005 2006 2007 2008 2009 2010 Duration Q1 Q2 Q3 Q4 Q1 Q2 CS 410 Red Group - A.S.K. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 54 Q2 Budget Recap Cost Phase 1 Resources $19,171 Phase 1 Staffing Phase 2 Resources Phase 2 Staffing $65,055 $26,213 $312,047 Phase 3 Staffing Total Development Cost 16 November 2005 CS 410 Red Group - A.S.K. $831,522 $1,254,008 55 A.S.K. Break-Even Analysis Break-Even Analysis Cost per Unit $20,119 Price per Unit $50,000 Profit per Unit $29,881 Units needed for Break-Even Units sold (weekly) Break-Even Time 16 November 2005 42 2 21 CS 410 Red Group - A.S.K. 56 Funding Plan SBIR Funding Agency: Department of Commerce CIT Assistance SBIR Funding Agency: Department of Commerce Phase 1: $100,000 Phase 2: $750,000 STTR Phase 1: $30,000 Phase 2: $500,000 Small Business Loan (Phase 3) Preliminary Contract from Best Buy / Other Customer 16 November 2005 CS 410 Red Group - A.S.K. 57 Management Plan 16 November 2005 CS 410 Red Group - A.S.K. 58 Risks # 1 Risk 2 Real-time lookup speed 3 Server load 4 5 6 Unforeseen testing expenses 7 8 9 10 Inaccurate retrieved data Complexity of maintenance Competition meets needs Customer acceptance Likelihood Database availability/integration 4 9 1 5 3 8 10 Network downtime 2 6 7 Consequence Power outages 16 November 2005 CS 410 Red Group - A.S.K. 59 Risk Management Plan 1. Major Risk: Database availability/integration • Mitigation: Effective interface & provision of alternate database if needed 2. Major Risk: Real-time lookup speed • Mitigation: Increased bandwidth, tuned database 3. Major Risk: Server load • Mitigation: Backup server 16 November 2005 CS 410 Red Group - A.S.K. 60 Evaluation Plan Design Reviews All plans evaluated and updated during each sub phase and at the end of each of the production phases. Past review used in initiation phase review to correct mistakes Quality Reviews Evaluate manner in which tasks are completed by team members Evaluate deliverables at every stage Ensure documentation is being created Testing Testing at every phase Testing of integration phases Testing of overall product Customer Satisfaction Evaluation 16 November 2005 CS 410 Red Group - A.S.K. 61 Evaluation Plan Phase 1 Only Improved customer satisfaction will be the measure of success Software Testing Software team will use CMMI Usability testing Performed by team whenever new features are implemented In-store trials and polls 75% of those polled must react positively to the product Analysis of usage could evince problems Performed after product passes in-house testing Testing Risks The in-store trials and polls could agitate customers Participation should clearly be optional 16 November 2005 CS 410 Red Group - A.S.K. 62 Forum/Expert Feedback Of 550 people surveyed, 85% would go to a store if a A.S.K. was available Managers at Radio Shack, Best Buy, and Office Max expressed interest in a product that would provide the functionality of A.S.K. 16 November 2005 CS 410 Red Group - A.S.K. 63 Happy Shopper = Profit for Store 16 November 2005 CS 410 Red Group - A.S.K. 64 Conclusion Poor customer service is a problem A.S.K. will: Improve customer’s in-store experience Help the store better meet customer needs 16 November 2005 CS 410 Red Group - A.S.K. 65 16 November 2005 CS 410 Red Group - A.S.K. 66 Backup 1: Reasons Businesses Fail 10. Over-expansion. The need to get there first or to demonstrate revenue growth to anxious investors leads businesses to grow too fast. 9. Poor Capital Structure. Companies take on too much debt… Enough said! 8. Failure to Control the Controllable Costs. Businesses spend down the initial cash before it is flowing in at a positive rate. 7. Failure to Prepare for Volatility of Uncontrollable Costs. For example, energy, materials, labor, or insurance. 6. Add New Products or Divisions that Drag Down the Profitable Ones 5. Poor Internal Controls and Execution — customer service, accounting controls, theft, fraud 4. Poorly Designed Business Model 3. Reliance on Critical Financing that Dries Up 2. Failure to Adapt to a Changing Market AND THE #1 REASON? Management in Complete Denial… 16 November 2005 CS 410 Red Group - A.S.K. 67 Belmont University: Center for Entrepreneurship 09/22/2005 [http://forum.belmont.edu/cornwall/archives/003452.html ] Backup 2: Kiosk Acceptance 16 November 2005 CS 410 Red Group - A.S.K. JBS Interactive [http://www.jbsinteractive.com/opportunities.html] 68 Backup 3: Competition Matrix Available to Associates 16 November 2005 CS 410 Red Group - A.S.K. 69 Backup 4: Forum Results Would you use A.S.K.? 85% of respondents (n = 550) said YES Respondent Testimonials “ You could change the way stores work forever with an idea like this. It's awesome.” “I think the best part is the item location in the store. I've had countless times when I went into a best buy or circuit city already knowing exactly what I wanted, but then had to spend like 30 minutes finding it. The sales reps are sometimes helpful with this, but you can't expect them to know the exact location of everything, and this method would be much quicker and not waste a sales rep's time.” 16 November 2005 CS 410 Red Group - A.S.K. 70