Microsoft Windows XP Tablet PC Edition Customer Solution Tablet PC Brings Increased Productivity to Corner Stores Published: November 2002 Convenience store giant 7-Eleven is evaluating the Tablet PC and Microsoft® Windows® XP Tablet PC Edition to provide a natural, intuitive computing experience for store employees. Workers can enter merchandising data directly into their Tablet PCs with a digital pen, enhancing data flow from the stores to the company’s network and streamlining business processes—all while interacting with customers in the store. When 7-Eleven maintenance crews replace pen and paper with Tablet PCs during store asset surveys, the company estimates that it will reduce the cost of field inventory work by an estimated U.S. $3–5 million annually. Knowledge workers also can capitalize on the lightweight form factor and Windows Journal note-taking utility to increase productivity while on the road and in meetings. Situation 7-Eleven pioneered the convenience store concept in 1927 at the Southland Ice Company in Solution Overview Customer Profile 7-Eleven, Inc., founded in 1927 in Dallas, Texas, is the world's largest operator, franchiser, and licensor of convenience stores. More than 23,700 units worldwide, including 6,000 in the United States and Canada serve 6 million customers a day. Business Situation 7-Eleven is evaluating the Tablet PC to eliminate bottlenecks in collecting store profile data and to improve knowledge workers’ productivity while out of the office. Solution Microsoft® Windows® XP Tablet PC Edition provides all the power of Windows XP Professional plus enhancements for pen-based computing in a mobile, lightweight form factor. Dallas, Texas. In addition to selling blocks of ice to refrigerate food, an enterprising ice dock Benefits employee began offering milk, bread, and eggs on Sundays and evenings when grocery stores 7-Eleven expects the Tablet PC to: Reduce the need for resurveys by 50–75 percent Save an estimated U.S.$3–5 million annually Improve knowledge workers’ productivity while away from their desks were closed. Not surprisingly, this new business idea produced satisfied customers and increased sales. Today, 7-Eleven is the undisputed leader in convenience retailing with almost 24,000 stores operating in the United States and 18 other countries and U.S. territories and total sales of more than U.S. $31 billion in 2001. To a great extent, the company’s success comes from the fact that 7-Eleven still holds on to the tenets of its origins: The essence of successful retail is based on the personal interaction between customers and individual store operators. This strategy, called Retailer Initiative, decentralizes decision-making responsibility and empowers store managers and field consultants to leverage their understanding of local customers into making better retail business decisions. Using technology to support its business model is another success factor for 7-Eleven. “Technology is the driver behind our Retailer Initiative,” says Keith Morrow, Vice President of Information Systems and CIO at 7-Eleven. “Our fundamental business model hasn’t changed, but our operations have. We are a $10 billion company, with more than 23,000 stores, each typically containing between 2,000 and 3,000 items. Technology can empower our people to make sense of all that data. Anytime we can capitalize on technology right at the point of sale, we will do a better job of understanding our customers to stay ahead of their needs.” Software and Services Microsoft Windows XP Tablet PC Edition Microsoft Office XP Microsoft SQL ServerTM 2000 Microsoft Consulting Services Hardware Acer TravelMate 100 Solution “The Tablet PC will allow us When 7-Eleven heard about the Tablet PC and Microsoft ® Windows® XP Tablet PC Edition, the to reduce resurvey work in company’s Director of Emerging Technologies immediately began thinking about the potential of the field by 50 to 75 percent, this latest evolution of the notebook computer. “We decided to participate in Microsoft’s Rapid Adoption Program for the Tablet PC because we could see that the power, mobility, and versatility of this new platform could help improve productivity and reduce costs for several user groups in different business processes,” says Kathy Walsh. “In particular, we liked the way the Tablet PC could be used right in the store by our maintenance crews to take inventory, by our field consultants doing a store walk, and by our store managers as they do merchandising—in short, by supporting our Retailer Initiative. Instead of using a notebook PC, we envisioned how knowledge workers in our IT, Legal, and Demand Chain Integration departments could take a Tablet PC with them on the road or to meetings and benefit from its added capabilities.” Windows XP Tablet PC Edition, a superset of the Windows XP Professional operating system, offers additional features to a notebook PC that allow a user to control the Tablet PC by using a digital pen, create and save searchable handwritten documents and convert them into typed text for use in other applications through the Microsoft Windows Journal utility. With a digital pen and speech recognition capabilities, the Tablet PC becomes a writing pad that’s easily carried around for maximum mobility. And by downloading the Microsoft Office XP Pack for Tablet PC, users can integrate electronic “ink” into everyday Office XP programs. All 7-Eleven Tablet PCs are equipped with Office XP, as well as the Office XP Pack for Tablet PC. Benefits To date, 7-Eleven has deployed Tablet PCs to users in the Demand Chain Integration, the IT, and Maintenance groups. The company is looking at deploying Tablet PCs to its field consultants in the future. There are two ways that 7-Eleven expects the Tablet PC to deliver business value: By streamlining specific business processes through improved information flow from the store to back-end systems By improving the productivity of employees, who can use the Tablet PC more often and in more situations than ever before The Power of a Desktop in Your Hands The Tablet PC gives users the portability of a personal digital assistant (PDA) with the power of a desktop or notebook PC. Moreover, 7-Eleven developers are taking advantage of the powerful Windows XP Tablet PC Edition platform to add ink and speech capabilities to the Store Profile application used by maintenance crews—extending the power of the Tablet PC far beyond that of a regular notebook PC. “Deployed on the Tablet PC, this application can go wherever our maintenance crews go; up ladders, into crawl spaces, or behind a Slurpee® beverage machine to get a serial number,” says Morrow. “Instead of resorting to filling out lengthy store inventory surveys by hand, maintenance crews can write or tap with their pens. They can also do drawings with rough measurements, for example, if they recommend putting in a new machine. The Tablet PC is easy, intuitive, and requires very little training.” saving anywhere from $3 million to $5 million a year.” Keith Morrow Chief Information Officer 7-Eleven, Inc. Versatility Drives Efficiency and Cuts Costs Instant screen rotation that allows the user to carry the Tablet PC like a clipboard adds up to a “The Tablet PC is a perfect more natural computing experience for the maintenance workers as they complete store asset tool for our retailers to make surveys. Instead of having to rekey store inventory survey data back into the database, a better decisions about maintenance worker simply docks the Tablet PC at the end of the day to upload all the satisfying customer needs. information collected in the Store Profile application to the main database. Once the data is uploaded to the database, it’s immediately accessible to other maintenance crews and contractors. So, if 7-Eleven needs to hire a contractor to install a new six-barrel Slurpee machine, all the information is immediately available to speed up that process: the measurements and data from the store, notes about power availability, plumbing requirements, where exactly the counter will have to be cut. Not only does this streamline a particular business process, but it also allows 7-Eleven to electronically build an accurate, up-to-the-minute profile of each store, reducing the need for resurveys or partial surveys just to change a coffee pot. “The Tablet PC will allow us to reduce resurvey work in the field by 50 to 75 percent, saving anywhere from $3 million to $5 million a year,” says Morrow. Deploying Tablet PCs to field consultants, who spend most of the day on the road visiting the stores and working with managers, will provide similar benefits. Field consultants fill out lengthy paper questionnaires as they walk the store. This usually takes an hour and a half out of a typical four-hour visit. They check everything from the fuel pumps to the dumpsters to the store interior in great detail and confer with the manager using notes they’ve brought from the previous meeting. “Deploying the Tablet PC to our field consultants is another perfect scenario for this technology,” says Morrow. “It’s difficult to find a spot to lay a notebook computer in a busy store, and typing on a keyboard cuts down on interaction with the customers. Using the Tablet PC to input data also makes that information readily accessible to anyone else in the company. It could be instantly uploaded to our store managers’ knowledge portal, for example. We could also deploy Tablet PCs to the store managers so they could walk around while they were doing their merchandising, observing and interacting with the customers to refine a product order list to meet their needs. Right now, store managers are confined to working at a desktop in the back room. “The Tablet PC is a perfect tool for our retailers to make better decisions about satisfying customer needs,” Morrow adds. “That’s the essence of our Retailer Initiative and the key to our success.” Mobility Increases Productivity The Tablet PC has added benefits to knowledge workers who spend a lot of time on the road or in meetings. “I’m hearing loud and clear from our road warriors that the Tablet PC is a powerful tool for being as productive as possible while away from their desks,” says Walsh. David Anderson, Logistics Department Director and liaison with 10 Combined Distribution Centers serving 7-Eleven stores in the western United States, concurs: “I quit using my notebook PC in favor of the Tablet PC. During this trip to California, I didn’t have to pack large paper files. I use the note-taking feature to organize and save information. In the last couple of weeks, I attended 18 meetings, and I had all the information I needed to refer back to—and not one piece of paper.” That’s the essence of our Retailer Initiative and the key to our success.” Keith Morrow Chief Information Officer 7-Eleven, Inc. In a corporate culture that discourages notebook computers in meetings, Walsh can still discretely write the minutes in her steering committee meeting, send them in e-mail to participants for review as soon as they get back to their offices, and have them published a few hours later. For Morrow, who spends between one half to three quarters of each day out of his office, the Tablet PC provides him with the productivity that comes with portable knowledge: “While on a recent flight, I was talking with my colleagues and was able to refer back to the Tablet PC Windows Journal utility where I store my notes. I was able to add significantly to our discussion with three or four thoughts that I had written down, but had not remembered,” he says. “It’s hard to measure how much specific ideas are worth, but the Tablet PC means I always have information with me, where it’s the most valuable.” Microsoft Windows XP Tablet PC Edition provides a more versatile computing experience, enabling you to use your PC in more places and more ways. For more information about Windows XP Tablet PC Edition, go to: http://www.microsoft.com/windowsxp/tabletpc/ For More Information For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: http://www.microsoft.com/ For more information about 7-Eleven, visit the Web site at: http://www.7-11.com/ © 2002 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Windows, and the Windows logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.