Program Solicitation: NSF 97-64
Closing Date: June 12, 1997
SUBTOPIC NO. (if any)
TOPIC TITLE
TOPIC NO.
000000-11111-1111-22222 N/A
PROPOSAL TITLE Quick Order Pass SBIR II Proposal
Quick Order Pass
NAME OF COMPANY
Quick Order System
EMPLOYER IDENTIFICATION NUMBER (EIN) OR
TAXPAYER IDENTIFICATION NUMBER (TIN)
111-222-3333
ADDRESS (including address of Company Headquarters and zip code plus four digit extension)
Quick Order System
Old Dominion University
Computer Science Department
4700 Elkhorn Ave. Suite 3300
Norfolk, VA 23529-0162
REQUESTED AMOUNT PROPOSED DURATION PERIOD OF PERFORMANCE
$800,000 12 months July, 2005 – July 2006
THE SMALL BUSINESS CERTIFIES THAT:
1. It is a small business as defined in this solicitation (Section 2.12)
2. It qualifies as a socially and economically disadvantaged business as defined in this solicitation. FOR STATISTICAL
PURPOSES ONLY.
3. It qualifies as a woman-owned business as defined in this solicitation. FOR STATISTICAL PURPOSES ONLY.
4. NSF is the only Federal agency that has received this proposal (or an overlapping or equivalent proposal) from the small business concern. If No, you must disclose overlapping or equivalent proposals and awards as required by this solicitation. (See
Section 3.3.m)
5. A minimum of two-thirds of the research will be performed by this firm in Phase II
6. The primary employment of the principal investigator will be with this firm at the time of award and during the conduct of the research.
Y/N
Y
N
N
Y
Y
Y
7. It will permit the government to disclose the title and technical abstract page, plus the name, address and telephone number of a corporate official if the proposal does not result in an award to parties that may be interested in contacting you for further information or possible investment.
Y
8. It will comply with the provisions of the Civil Rights Act of 1964 ( P. L. 88-352) and the regulations pursuant thereto.
9. It has previously submitted proposals to NSF (EXCLUDING PHASE I SBIR).
10. It previously submitted this proposal (which was declined previously) and significant modifications have been made as described in Section 4.5 of this solicitation.
Y
N
N
PRINCIPAL INVESIGATOR / PROJECT DIRECTOR
NAME Carlton Northern
SOCIAL SECURITY NO. HIGHEST DEGREE / YEAR
TITLE PRINCIPAL INVESTIGATOR
E-MAIL ADDRESS
111-22-3333
TELEPHONE NO.
555-1212
NAME
Carlton Northern
PRESIDENT'S NAME
Hill Price
Bachelor of Science/2005
FAX NO. cnorthern@cs.odu.edu
WEB ADDRESS
555-1213 http://www.cs.odu.edu/~vturnqui/qos/
COMPANY OFFICER (FOR BUSINESS AND FINANCIAL MATTERS)
TITLE TELEPHONE NO.
Principal Investigator/ Project Manager
OTHER INFORMATION
YEAR FIRM FOUNDED
555-1212
NUMBER OF EMPLOYEES AVERAGE
PREVIOUS 12 MO.: 8 CURRENTLY: 8
1995
PROPRIETARY NOTICE: See Section 5.4 for instructions concerning proprietary information.
(Check Here if proposal contains proprietary information.) NOTE: The signed Certification Page MUST be included immediately following this Cover Page with the original copy of the proposal only.
Certification Page
Certification for Principal Investigators
I certify to the best of my knowledge that:
(1) the statements herein (excluding scientific hypotheses and scientific opinions) are true and complete, and
(2) the text and graphics herein are as well as any accompanying publications or other documents, unless otherwise indicated, are the original work of the signatories or individuals working under their supervision. I agree to accept responsibility for the scientific conduct of the project and to provide the required progress reports if an award is made as a result of this application.
I understand that the willful provision of false information or concealing a material fact in this proposal or any other communication submitted to NSF is a criminal offense (U.S. Code, Title 18, Section 1001).
Name (Typed)
PI/PD Carlton Northern
Signature Date
Mar 2, 2005
Certification for Authorized Organizational Representative or Individual Applicant
By signing and submitting this proposal, the individual applicant or the authorized official of the applicant institution is: (1) certifying that statements made herein are true and complete to the best of his/her knowledge; and (2) agreeing to accept the obligation to comply with
NSF award terms and conditions if an award is made as a result of this application. Further, the applicant is hereby providing certification regarding Federal debt status, debarment and suspension, drug free workplace, and lobbying activities (see below), as set forth in the Grant
Proposal Guide (GPG), NSF 95-27. Willful provision of false information in this application and its supporting documents or in reports required under an ensuring award is a criminal offense (U.S. Code, Title 18, Section 1001).
In addition, if the applicant institution employs more than fifty persons, the authorized official of the applicant institution is certifying that the institution has implemented a written and enforced conflict of interest policy that is consistent with the provisions of Grant Policy Manual
Section 510; that to the best of his/her knowledge, all financial disclosures required by that conflict of interest policy have been made; and that all identified conflicts of interest will have conflict of interest policy. Conflicts which cannot be satisfactorily managed, reduced or eliminated must be disclosed to NSF.
Debt and Debarment Certifications (If answer "yes" to either, please provide explanation.)
Is organization delinquent on any Federal debt?
Is the organization or its principals presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by a Federal Department or agency?
YES
YES
NO X
NO X
Certification Regarding Lobbying
This certification is required for an award of a Federal contract, grant or cooperative agreement exceeding $100,000 and for an award of a
Federal loan or a commitment providing for the United States to insure or guarantee a loan exceeding $150,000.
Certification for Contracts, Grants, Loans and Cooperative Agreements
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer of employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal
Contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit
Standard Form-LLL, "Disclosure of Lobbying Activities," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents for all sub awards at all tiers including subcontracts, sub grants, and contracts under grants, loans, and cooperative agreements and that all sub recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.
Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
- 2 -
Authorized Organizational Representative
Name /Title (Typed)
Carlton Northern
Telephone Number
555-1212
Signature
Electronic Mail Address cnorther@cs.odu.edu
Date
May 2, 2005
Fax Number
555-1213
- 3 -
NAME OF FIRM Quick Order System
ADDRESS
FOR NSF USE ONLY
NSF PROPOSAL NO.
Old Dominion University
Hampton Boulevard
Norfolk, Virginia 23529
PRINICPAL INVESTIGATOR (NAME AND TITLE):
Carlton Northern, Project Manager
TITLE OF PROJECT: Quick Order Pass
TOPIC TITLE
Quick Order Pass
TOPIC NUMBER AND SUBTOPIC LETTER
000000-11111-1111-22222
PROJECT SUMMARY
(200 words or less)
- 4 -
Potential Commercial Applications of the Research
Key Words to Identify Research or Technology (8 maximum)
NSF Form 1304 (SBIR 12/96)
- 5 -
- 6 -
Hardware Feasibility
The Quick Order System integrates two additional hardware components into existing
Point of Sale (POS) terminal setups, an RFID reader and an RFID transponder (See Figure 1).
The QOS team used the most reliable RFID readers and transponders available for data transmission. During testing, several RFID readers were evaluated to ensure proper functionality. Preliminary RFID tests indicated ninety – nine percent accuracy and successful
QOS testing matched those parameters.
Figure 1. Diagram of Transponder and Reader
Transferring data with an RFID tag is both highly precise and consistent, necessitating data transfer in even the most severe conditions. Commercially available RFID tags are capable of transmitting data while completely submerged in water, and can also withstand extreme temperatures of up to 240 degrees Celsius. Additionally, RFID tags are able to operate from a low frequency of 150 KHz to a high frequency of 13.56 MHz. RFID transponders are tested for reliable data transmission by the manufacturer, utilizing processes that include testing chip integrity and simulating various environments. This testing also ensures a rapid data transfer that ensures speedy communication with the RFID reader.
In many cases, an RFID evaluation kit is provided with the reader and transponder combined to form a one-item unit, however, it is still possible to purchase the reader components separately creating a custom RFID reader device. This alternative is less expensive than purchasing a pre-assembled kit if soldering tools are available. Selected RFID
- 7 -
readers may be more compatible with certain POS terminals currently used in the industry.
Starbucks’ franchises within the United States choose the IBM-4695-322 as their primary brand of POS. The Quick Order System team chose the Texas Instruments 2000 RFID reader for evaluation during the initial phase of development.
Software Feasibility
Successful Quick Order System integration requires several different software components organized into four distinct modules (See Figure 1). The modules include the construction of a basic communication module, an Application Programmer Interface (API) module, a database communication module, and a Point of Sale (POS) Graphical User Interface
(GUI) module which allows a visual representation of data.
The first software component consists of a basic communication module which uses the
Radio Frequency Identification (RFID) protocol. This module allows a software process to read data provided by an RFID reader and pass that respective data to a software process. The data passed from the RFID key fob consists of a unique customer number passed as ASCII characters.
The second software component is an API communication module. The API communication module is responsible for calling the emulated API functions that communicate with the POS software API. API functionality allows existing POS functions to take place, such as order totaling, order processing, and payment processing, but is also responsible for converting the data from the database to a meaningful nomenclature recognized by the POS
API.
The third software module is the database communication module. Data stored within the database consists of all prudent customer information required for placing repeat orders
(favorite order), customer info, and credit balances remaining. Beta versions of both the POS
- 8 -
and API software have already been provided by Micro’s Inc ©. The primary high level programming language used in the software implementation is C++. The database communication module is designed to facilitate information exchange between the API of the register and the customer information database.
The final software module consists of an emulated POS terminal capable of replicating an accurate simulation of how the system interfaces with a cash register. The emulated software provides functional APIs similar to existent APIs in use in current retail point of sale terminals.
- 9 -
Commercial Applications
The Quick Order System was developed for markets where repeat order frequency and customer volume is high. It is important that the target customer for the
QOS has an extensive market share, strong future growth and revenue potential, and a compatible market strategy. Starbucks
Corporation, which owns 36.6% of the market share in the multi-billion dollar coffee industry, is currently the leading market prospect. The QOS company's objective is to establish
Starbucks as the most recognized and respected franchise in the world. According to Jim
Donald, Starbucks CEO Designate, “Starbucks strong trends can be attributed to an all-time high level of innovation, continued speed-of-service improvements, and successful new store concepts”. The QOS system has the potential to be the next step in Starbucks’ innovative storefront.
Beyond Starbucks, the QOS has the potential to be used in any repeat ordering environment. The first step in outlining potential customers consists of researching applications in various sandwich shops. These shops, like Starbucks, have a high tendency for repeat orders. QOS Inc. will consider these options further as the product’s development progresses.
Continued Support Justification
QOS Inc. has demonstrated in Phase I that the Quick Order Pass has a wide variety of useful applications. Using the Quick Order System, Starbucks can provide customers with a
- 10 -
convenient way to improve their Starbucks purchasing experience. The QOS offers Starbucks an opportunity to decrease customer wait time and improve order accuracy.
- 11 -
The Quick Order System will increase overall productivity and order efficiency in coffee shops by increasing customer throughput and ensuring order accuracy. The basis for these improvements stems from the innovative integration of Radio Frequency Identification (RFID) technology with current ordering systems. The QOS will allow customers to quickly transmit their favorite order encapsulated on an RFID tag through a transponder which is linked to an external database. The database will decipher the digital stream of data and translate it into the customer’s favorite order. The RFID tag will also contain a field that is linked to a unique account. By eliminating the person to person communication that often leads to many errors in the ordering process, the QOS creates a harmonious and virtually error free transaction experience.
In a world where time is money, increasing the speed of service is mandatory within any growth environment. The needs of the customer are best served by focusing on the most important aspects of customer satisfaction: fast efficient service and customer loyalty. With
RFID technology, there is no requirement for the customer to verbally interact with an employee.
Any time a step is eliminated in any type of ordering transaction, the overall process time improves rather than stagnates. This is the heart of the fast food business, and coffee shops certainly fall under that umbrella.
Building a customer loyalty base is important to not only the company or franchise, but to the customer as well. Providing a device that will allow a customer to bypass the traditional waiting line will cut the standard one minute order-to-receipt time down to ten seconds.
Customers will use their RFID tag, which is coded with a unique identification number.
The Reader Input Module will then communicate the ID number with the Database
Communication Module. This will cause the customer’s order and account balance to be queried. That information will be passed to the Application Program Interface (API), and routed
- 12 -
to the preexisting Point of Sale terminal. Funds will be deducted from the customer’s account balance, if they are sufficient for the transaction. The account balance and any other modifications made to the customer’s favorite order will be transmitted back to the central database and stored for future use.
Figure 3. Software Diagram
- 13 -
To increase customer satisfaction and to ensure successful order processing, food chains are constantly upgrading POS systems and processes. Starbucks currently uses a card that allows a customer to store a prepaid balance on a unique account and deduct an order amount from that total. With RFID technology, QOS will improve this process. Incorporating the notion of “paper money-free” transactions with non-verbal ordering, the QOS is not only practical, but revolutionizes the ordering process. With the cost to retrofit a store with a reader and RFID tags costing approximately $100.00 (not including software and database maintenance), the QOS makes this upgrade very feasible, considering the advantages of the system.
In a survey conducted at a local Starbucks coffee shop, the average order time was 42 seconds. This time was recorded from “greet to receipt”, or from the time the employee greeted the customer to the time the receipt was delivered. This time will be reduced by up to 90% if the human-to-human interface is eliminated. The QOS allows the customer to use the RFID tag to order, pay, and obtain a receipt instantaneously, reducing the ordering process to a wave of the hand.
Phase II: Prototype Development Plan (WBS)
- 14 -
Quick Order System
Annual Income Statement
For the period ending May 2, 2005
Total Revenue
Expenses
Wages and Salaries
Project Manager
Software Engineer IV
Software Engineer I
Hardware Engineer II
Database Developer
Systems Engineer
Preliminary Personnel Totals
40% Overhead
Total Personnel
Required Hard Resources
Server (database)
Workstations (6)
RFID Readers (14)
RFID Transponders (75)
Network Switch
Red Hat ES (Database Server)
Misc. Supplies
Total Resources
Consultants
POS Consultant
Total Consultants
Travel
NSF Grantee Workshop
Airfare
Hotel
Misc. (car rental, meals, etc)
Total Travel
Total Expenses
QOS Net Revenue
(16,899)
$ 0.00
(14,851)
(6,919)
(5,504)
(6,327)
(5,517)
(56,017)
(22,407)
(2500)
(6000)
(700)
$ (78,424)
(15)
(50)
(349)
(1500)
(5000)
$ (11,114)
(1000)
(400)
$ (5,000)
(400)
$ (1,800)
$ (96,300)
$ (96,300)
- 15 -
Phase I Staffing Plan
Carlton Northern
Project Manager
Jack Groder
Hardware Engineer
Vicki Turnquist
Hardware Engineer
Matt Bass
Software Engineer
Chris Roberts
Database Developer
Kevin Jones
Systems Engineer
Thomas Hansen
Software Engineer
Mike Edmonds
Database Engineer
Abby Brown
POS software designer
SBIR Phase I Staffing Plan (current profile)
Management
Project Manager
Staff Member: Carlton Northern
Employment Status: Part-time position
Technical
Hardware Engineer
Staff Members: Jack Groder, Vicki Turnquist
Employment Status: Part-time position
- 16 -
Software Engineer
Staff Members: Matt Bass, Thomas Hansen
Employment Status: Part-time position
Database Development
Staff Members: Chris Roberts, Mike Edmonds
Employment Status: Part-time position
Systems Engineer
Staff Member: Kevin Jones
Employment Status: Part-time position
- 17 -
Phase II Staffing Plan
Carlton Northern
Project Manager
Matt Bass
Contracts
Administration
Jack Groder
R & D Manager
Chris Roberts
Database Developer
Joan Smith
Business Consultant
IAS, Inc.
Thomas Hansen
Software Engineer
IV
Abby Brown
POS software designer
Software Engineer
IV
Vicki Turnquist
Database
Engineer
Systems Engineer
Kevin Jones
Budget Manager
Mary L. Brewer CPA
Accounting Professor
ODU
Software Engineer I Technical Writer
Quality Assurance
Management
Project Manager (Carlton Northern)
SBIR Phase II Staffing Plan
Employment Status: Available Full-time
Quick Order System currently employs one Project Manager. The Project Manager ensures that the team does not run over budget or time by managing trade-offs between schedule, cost and performance. He or she assists in the coordination of various development teams and keeps up to date on any of the technical details of the project.
- 18 -
Research and Development Manager (Jack Groder)
Employment Status: Part-time position
The Research and Development Manager will direct the software development of the prototype, ensuring that all project milestones are met according to project deadlines.
Database Developer (Chris Roberts)
Employment Status: Part-time position
Quick Order System currently employs one Database Developer. The Database Developer design’s the database layout for the project.
Budget Manager (Kevin Jones)
Employment Status: Available Full-time
The main focus of the Budget Manager will be to manage the spending of all facets of the project. The Budget Manager ensures that all financial expenditures are properly accounted for, and maintains a daily report of allocated funds. It will also be necessary for the Budget
Manager to plan future expenses to comply with the budget.
Administration
Contracts Administration (Matt Bass)
Employment Status: Part-time position
The Contracts Administrator will be responsible for handling the legal contractual aspects of the project.
- 19 -
Technical
Hardware Engineer II (available)
Quick Order System currently employs one Hardware Engineer II. The Hardware Engineer II is responsible for researching and testing various RFID readers and transponders, and for verifying which RFID readers and transponders will work properly with our project.
Database Engineer (Vicki Turnquist)
Employment Status: Part-time position
The Database Engineer will be required to design and configure the first version of the final database configuration for the Quick Order Pass. They will also be responsible for monitoring all database performance related issues to confirm that the database is always running at the fastest possible speed.
Software Engineer IV (Thomas Hansen)
Employment Status: Available Full-time
Quick Order System currently employs one Software Engineer IV. This position is filled by the team’s most experienced Software Engineer, who is responsible for designing the entire code base for the project. In addition to designing the project code, the Software Engineer IV is responsible for the development of the Quick Order System software, and for assigning software development tasks to both the Software Engineer I and the Database Developer.
Software Engineer I (Position Available)
Employment Status: Part-time position
Quick Order System currently employs one Software Engineer I. The Software Engineer I assists the Software Engineer IV in direct development tasks. He or she is also responsible for developing any software modules as required.
- 20 -
Systems Engineer (Position Available)
Employment Status: Part-time position
Quick Order System currently employs one Systems Engineer. The Systems Engineer sets up and installs all workstations and the database server, and installs and configures Red Hat
Enterprise Server software onto the database server.
Quality Assurance (Position Available)
Employment Status: Part-time position
The Quality Assurance personnel will work in a variety of roles of the project, including production, planning and other aspects of management. It is important for Quality Assurance personnel to act as catalyst for performance and excellence.
Technical Writer (Position Available)
Employment Status: Part-time position
The Technical Writer’s prime objective is to produce a document that will be used as a manual to be shipped with the final product. It is important that this document is clear-cut and easy document to comprehend.
POS Consultant (Abby Brown)
Abby Brown: Works in the RES Professional Services department of Micros Systems
Incorporated. Micros Systems Inc. is a producer of POS terminals aimed at the restaurant and hotel industry. Her most current endeavor attributed to the development of the API system used in the Micros 3700 POS terminal that is currently used by Starbucks cafes in U.S. Airports,
Greece and Australia. She will be paid a flat fee of $15,000 during Phase I for providing feedback and answering questions related to POS terminal software.
- 21 -
Future Staffing Plans
During Phase II of the Quick Order System project, additional staffing will be hired as necessary. The projected staff in Phase II includes 11 employees in the following technical, managerial, administrative, and marketing and manufacturing capacities:
Project Manager (one, managerial)
Budget Manager (one, administrative)
Software Engineer IV (one, technical)
Software Engineer I (one, technical)
Systems Engineer (one, technical)
Database Engineer (one, technical)
Database Developer (one, technical)
Quality Assurance personnel (three, manufacturing)
Technical Writer (one, technical)
- 22 -
Accounting Consultant
Mary Brewer: Works for Old Dominion University, and is a C.P.A., as well as an accounting professor. This accounting consultant will work in conjunction with the Budget Manager during
Phase II to ensure that cost overruns do not occur, and that proper fiscal management tools are used to keep Quick Order Systems within SBIR budget limits. The accounting consultant will be paid a flat fee of $15,000 during Phase II of the developmental cycle.
Business Consultant
Joan Smith: Works for IAS, Inc. Sold Blue Eye Technology and INCR Chesapeake to Northrop
Grumman. Joan is our marketing and business consultant. She will be in charge of directing our marketing plan and business model, as well as advising on contractual obligations and proprietary issues. This business consultant will also assist in developing non-disclosure agreements to prevent proprietary information from becoming public. The business consultant will be paid a flat fee of $15,000 during Phase II of our developmental cycle.
POS Consultant
Abby Brown: Works in the RES Professional Services department of Micros Systems
Incorporated. Micros Systems Inc. is a producer of POS terminals aimed at the restaurant and hotel industry. Her most current endeavor contributed to the development of the API system used in the Micros 3700 POS terminal that is currently used by Starbucks cafes in U.S. Airports,
Greece and Australia. She will be paid a flat fee of $15,000 during Phase I for providing feedback and answering questions related to POS terminal software.
- 23 -
- 24 -
- 25 -
- 26 -
RFID http://www.ems-rfid.com/whatisrfid.html
http://www.dimension-x.com/cf-mag.htm
Accuracy http://www.biz-architect.com/breakthroughs_at_drivethroughs.htm
http://dsonline.computer.org/0303/d/p1app_print.htm
http://www.qsrweb.com/hottopic_fastlane.htm
http://www.g3act.com/qsr/2001QSR.pdf
http://web.mit.edu/ctl/www/research/sc2020/SC2020%20IAC%20Proceedings.pdf
http://www.qsrmagazine.com/drive-thru/2003/page3.phtml
http://www.restaurant.org/rusa/magArticle.cfm?ArticleID=443 http://www.g3act.com/qsr/2001QSR.pdf
http://www.kioskcom.com/articles_detail.php?ident=1942
Speed http://www.nytimes.com/2004/07/18/business/yourmoney/18mac.html?ex=1097640000&en=529 d90459b9e77a7&ei=5070&oref=regi http://www.hme.com/pdfs/WirelessIQ.pdf
http://www.qsrmagazine.com/drive-thru/2002/index.phtml
http://www.usatoday.com/money/covers/2002-04-03.htm
http://www.mindfully.org/Technology/2004/HyperActive-Bob8sep04.htm
http://www.chainleader.com/archive/0702/0702tech.html
Starbucks http://www.msnbc.msn.com/id/6100243/site/newsweek/ http://www.starbucks.com
http://biz.yahoo.com/bw/041014/145258_1.html
http://www.fool.com/news/commentary/2004/commentary040130ram.htm
http://biz.yahoo.com/e/040810/sbux10-q_a.html
- 27 -
http://www.entrepreneur.com/article/0,4621,315202,00.html
http://www.hoovers.com/starbucks/--ID__15745--/free-co-fin-annual.xhtml
http://seattlepi.nwsource.com/business/114224_starbucks26.shtml
http://biz.yahoo.com/bw/041014/145727_1.html
Growth http://www.starbucks.com/aboutus/pressdesc.asp?id=449 http://www.starbucks.com/aboutus/pressdesc.asp?id=453
Customers http://www.fool.com/specials/2004/04020200ceo.htm
http://www.franchise-chat.com/resources/whats_new.htm
Starbuck’s Card http://www.starbucks.com/aboutus/pressdesc.asp?id=451 http://www.starbucks.com/aboutus/pressdesc.asp?id=397
Customer Service http://www.msue.msu.edu/msue/imp/modtd/33300010.html
http://news.bbc.co.uk/1/hi/business/3833433.stm
http://www.spcnetwork.com/mii/2001/010423.htm
http://www.prophet.com/knowledge/articles/downloads/brand_contract_sd.pdf
http://www.southcoasttoday.com/daily/07-01/07-15-01/b03bu066.htm
http://www.qsrweb.com/news_fastcasual_loyalty_93003.htm
http://www.hme.com/pdfs/Communication.pdf
http://www.hme.com/pdfs/pr082300_clearsound3.pdf
http://www.hme.com/pdfs/pr070102.pdf
http://msnbc.msn.com/id/5233899/
Definitions http://www.nationmaster.com/encyclopedia/Fast-food-restaurant http://www.media.mcdonalds.com/secured/news/pressreleases/2004/Press_Release03252004e
.html
- 28 -
Carlton Northern
– Carl is a senior at Old Dominion University and is expecting to graduate with a bachelor of Computer Science in May of 2005. Currently, Carl is working as a System
Administrator for the Digital Library Research Group of ODU. Carlton’s skills include C++,
HTML, Linux Administration, Oracle Administration, SQL, Shell and Bash Scripting, and Parallel
Processing with MPI.
Christopher Roberts – Christopher is a senior at Old Dominion University pursuing a B.S. in
Computer Science. He expects to graduate from ODU in the summer of 2005. Chris currently works full time as a DOD contractor for General Dynamics – Advanced Information Systems.
He has been working with the company since July 1998 supporting the US Joint Forces
Command Joint War Fighting Center as a UNIX Systems Administrator. Chris’ technical capabilities relevant to this project include; C/C++ programming, PERL, shell scripting, MySQL,
HTML/PHP, and Solaris/Linux administration.
Kevin Jones – Kevin is a senior at Old Dominion University majoring in Computer Science.
Kevin is originally from Pittsburgh, Pennsylvania. He holds a B.S. from Virginia State University in Mathematics with a concentration in Engineering. Presently, Kevin works as a sixth grade math teacher in the Newport News Public School System.
Jack Groder - Jack is a senior at Old Dominion University majoring in Computer Science with a minor in Business Administration. Jack previously earned an Associates in Business degree from Baton Rouge Community College. Jack also has an Associates in General Science and an Associates in Computer Science from Tidewater Community College. He is currently employed by Old Dominion University’s department of Mathematics and Statistics as a
- 29 -
computer lab empl oyee, as well as a computer operator and auditor by an outside firm. Jack’s anticipated graduation date is May of 2005.
Tom Hansen - Tom is a full-time senior at Old Dominion University majoring in Computer
Science with minors in Engineering Management and Actuarial Mathematics. He has 7+ years experience as general and district managers within high volume, cost-driven organizations.
Work experience acquired regulating product costs, labor costs, inventory, scheduling, hiring, training and balanced budgeting. Tom is technically fluent in installing, programming and integrating high-definition audio and video equipment, as well as connecting and troubleshooting high-frequency independent and expandable PBX communication systems.
Matthew Bass - Matthew is employed as a programmer for AMSEC LLC. He has had experience developing data mining software for fleet wide NAVY use. C++, Visual C++, and
Visual Basic programming experience. Matthew also has additional hardware integration experience.
Michael Edmonds - Michael is a part-time Computer Science student at Old Dominion
University and a full-time Systems Administrator for General Dynamics Corporation, a large government contractor. He is in his last semester and expects to graduate in Summer 2005 with his Bachelor of Science degree. Michael brings real-world technical expertise to the Quick
Order System group.
Vicki Turnquist - Vicki is a full-time senior at Old Dominion University, majoring in Computer
Science with an expected graduation date of May 2005. Vicki previously earned an Associates in Computer Science at Tidewater Community College. She has 4+ years experience as a desktop technician and is A+ Certified. Vicki also has 4+ years experience with C++ and Java.
- 30 -
She is currently employed by Electronic Systems, Inc. as part of the Sentara Healthcare division. Other interests include web programming and graphic design with extensive experience using Dreamweaver, Fireworks, Flash, Freehand, Photoshop, Illustrator, 3D Studio
MAX and Bryce.
- 31 -
Phase II: Prototype Development
Project Manager
Budget Manager
Software Engineer IV
Software Engineer I
Systems Engineer
Database Developer
Database Engineer
Accounting Consultant
Business Consultant
POS Consultant
Quality Assurance
Contracts Administration
R&D Manager
Technical Writer
Preliminary Personnel Total
40% Overhead
Total Personnel
Personnel
Quantity Yearly Salary Days
1
1
2
$ 82,077
$ 74,175
$ 78,594
365
360
360
1
1
1
1
1
1
1
1
1
1
1
$ 47,088 200
$ 74,175 200
$ 46,187 120
$ 74,175 50
$ 15,000
$ 15,000
$ 75,000
$ 53,240
$ 79,247
$ 46,287
$ 50,222 na na
75
40
30
150
330
POS Terminal (IBM 4695-322)
Workstation
RFID Readers (USB)
RFID Transponders (Tags)
Misc (cables, connectors, etc)
Total Resources
Required Hard Resources
Unit Cost
$ 1,000
$ 1,000
Units
6
7
$ 50 10
$ 0.20 1000
$ 2,500 1
Accounting Consultant
Business Consultant
POS Consultant
Total Consultants
Consultants
Quantity Yearly Salary Days
1 $ 15,000 N/A
1
1
$ 15,000
$ 15,000
N/A
N/A
Budget Summary
Total Personnel Cost
Total Hard Resource Cost
Total Consultants Cost
Total Phase II Budget
Salary Cost
$ 82,077
$ 73,159
$ 155,035
$ 25,802
$ 40,644
$ 15,185
$ 10,161
$ 15,000
$ 15,000
$ 15,411
$ 5,835
$ 6,513
$ 19,022
$ 45,406
$ 524,249
$ 209,700
$ 733,949
Total Cost
$ 6,000
$ 7,000
$ 500
$ 200
$ 2,500
$ 16,200
Salary Cost
$ 15,000
$ 15,000
$ 15,000
$ 45,000
$ 733,949
$ 16,200
$ 45,000
$ 795,149
- 32 -
POS Terminals (Quantity 6)
Starbucks currently uses IBM 4695-322 as their point of sale terminal in their cafes. The terminals will be used to build an accurate working prototype. Six will be purchased
Workstations (Quantity 7)
As additional staff will be hired this phase, the Quick Order System team will require additional workstations. The workstations will be used by the staff for day-to-day project development work. These machines will be preloaded by the manufacturer to include office productivity and development software as required by the staff. The workstations will be able to communicate with the database server to gain access to the database, source code, network shares, email, and web services.
RFID Readers (Quantity 10)
RFID readers will be required to read the data stored on the RFID transponders. Various types of RFID readers will be purchased to be evaluated.
RFID Transponders (Quantity 1000)
RFID transponders will store a unique customer number, which will be read by the RFID reader.
One thousand transponders will be required for testing the prototype. The majority of the transponders will be delivered directly to the Starbucks beta test site beta testers.
Misc. Supplies and Materials
This budget will be used to purchase any required materials. Some of the known materials required will be:
- 33 -
Networking cables
DDS-5 backup tapes (to backup the data on the server)
Blank media
Office supplies (Paper, pens, pencils, staples, etc.)
- 34 -
Introduction of the SBIR Project and Expected Outcomes
The Quick Order System (QOS) is an innovative method of reducing errors during the ordering process in coffee shops or specialty eateries. The current ordering process used in coffee shops to provide specialty-orders is inconvenient, inefficient and error prone. The resulting inefficiencies stem from inherent menu board complexity and the human-to-human flow of data which results in decreased customer throughput and restaurant revenue.
The QOS will revolutionize the ordering process by eliminating many of the previously mentioned possible errors. By using Radio Frequency Identification (RFID) technology, the
QOS allows for a non-verbal contact-less ordering process where a customer may easily wave his or her tag to place and order, and pay for it without having to verbally communicate or exchange any currency. This will allow a company such as Starbucks to increase customer thorough-put and increase profits.
Company Information
The Quick Order System originated as a senior project at Old Dominion University. The project lasted two semesters and was brought to life with a dedicated team of undergraduate
Computer Science students.
The goal of Phase III of the Quick Order System project is to implement the Quick Order
System in Starbucks coffee shops. By testing the durability and reliability of the Quick Order
System the project team may make any minor modifications required to prepare the Quick
Order System to become an asset to Starbucks on a universal scale.
- 35 -
The Market, Customer and Competition
The Market
In a society where time is money it necessary for companies to be the as efficient as possible in what they do and how they do it. In the fast food industry time is money. A study shows that with a six second improvement in speed of service, a retail establishment will generate an additional 1% in sales.
Increasing throughput of fast food chains is always a challenge. Many ideas have been implemented with various results. With the advent of wireless technology this has revolutionized many aspects of different types of payment transactions. Having the ability to pay for an order without using any exchange of currency increases a companies profit by reducing transaction times. Studies show that wireless payment methods have shaved 15 to 20 seconds off of transaction times.
Customer
In the search for an adequate customer for the Quick Order System, the project team researched where the Quick Order System could optimize the ordering process and also be a valuable tool for the user. The Quick Order System was designed to help patrons whose orders are complex in nature; orders that may consist of different modifiers or added ingredients that could through verbal communication result in an inaccurate product being served. The Quick
Order System team determined that Starbucks would be an ideal establishment to implement the Quick Order System.
Starbucks dominates the coffee shop industry. It is the largest coffee chain in America with almost 37 percent share of all coffee shops. In 2003 Starbucks earned over $4 billion in net revenue, 77% of which came from beverage sales. Starbucks also satisfies the need of the
Quick Order System in simplifying complex orders. With a broad menu and over 20 modifiers
- 36 -
possible for any drink, it is possible for a Starbucks customer to create an order that is very intricate in nature.
.
Starbucks Store Growth
30,000
30000
25000
20000
Number of Stores 15000
10000
5000
0
15,000
8700
4400
1000
1998 2001 2004
Year
2006
Figure 1. Source: www.starbucks.com long term
- 37 -
Competition
The primary competition for the Quick Order Pass surprisingly comes from Starbucks itself, in the form of the Starbucks card, which uses a magnetic stripe to store data. These magnetic strips are not nearly as durable or versatile as Radio Frequency Identification technology.
The Quick Order Pass, however, has several advantages over the Starbucks card. RFID data transmission rates are far greater than those of magnetic stripes, and RFID tags are capable of storing much more data than magnetic stripes. Additionally, RFID tags support encryption (magnetic stripes do not), and RFID tags do not wear out after repeated use.
Transaction time
RFID
15-20 seconds faster
Starbucks Card
(Magnetic Stripe)
Normal
Duration
Durability
Storage Capacity
100,000 cycles
High Durability
1000+ Bytes
1,000 cycles
Low Durability
210 bytes
Security Encryption possible No Encryption
Cost $0.20 + $0.01-$0.40
Figure 2. Competition Matrix
- 38 -
Intellectual Property
To protect intellectual property rights, the Quick Order System project team intends to obtain patents for the Quick Order Pass, as well as copyrights for all documents generated.
Financing
The Quick Order System project team intends to charge Starbucks a flat fee to retrofit their restaurants with the QOS. Continued profitability of the QOS will be ensured by selling service contracts to the locations where the system is installed. The flexibility of the Quick
Order System will permit modification of the product to serve the needs of other entities such as other fast food chains or state lotteries.
- 39 -