Quick Order Pass

1. Quick Order Pass Presented By: Andrej Ciric and Chris Roberts Representing: Quick Order Systems, Inc. CS410 - Professional Workforce Development I

2. Team Members

3. Overview • Societal Problem • Proposed Solution • Project Schedule

4. Societal Problem The process coffee houses use to provide specialty orders is inefficient, inconvenient and error prone.

5. Inherent Complexity of Specialty Orders Starbucks menu: 73 Regular Menu Items 10 Flavors of Syrup 13 Modifiers 9490 possible combinations assuming only (1) of each is selected. http://www.starbucks.com

6. Traditional Transactions Order • Inefficient • Inconvenient • Error prone Amount Owed Cash/Credit Change/Credit & Receipt Order Amount Owed Consider a typical order by a daily customer: Cash/ Credit Change/ Credit & Receipt “ I’d like a double tall, non-fat, decaf, vanilla latte, one-pump walnut, with room, please”

7. Proposed Solution • Develop a system that can digitally: • Retrieve an order • Provide payment Without verbal communication.

8. Typical Transaction with Our System • Quick • Order is accurate • Payment is precise • Easy to use Order & Payment Receipt

9. Typical System Use: Customer #, 30bits 1010010111101010101 Waves Pass Customer # Receipt Customer # Customer # Order & Account Balance Central Database New Account Balance

10. Solution Will Not • Eliminate preparation errors • Preclude current ordering systems • Can always order and pay • Prohibit order changes • Eliminate the casual customer

11. Project Organization

12. Management Organization • Weekly team meetings • Take minutes • Progress performance assessment • Schedule deadlines • WBS • Team status checks • Technical Progress and Reporting • Evaluation plan • Software development protocols • CVS – (Concurrent Versions System ) • Design Documentation

13. Evaluation Plan • Design Reviews • All design documents evaluated before implementation • Industry consultation as necessary • Documentation generated • Quality Reviews • Deliverables evaluated at each phase by team and independent testers • Post mortem evaluation of group process and effectiveness • Documentation generated • Testing • Testing at each stage of Research and Development • Independent evaluation of product • Documentation of testing process and integration

14. Evaluation Plan, Cont. • Beta-site testing • Product in real world environment • Customer feedback • Consumer feedback • Seamless integration

15. Funding Plan • SBIR Grant Funding • National Science Foundation • The NSF support’s high quality projects on important scientific, engineering, or science/engineering education problems and opportunities that lead to significant commercial and public benefit. • Phase 1 • Maximum 100k • December 8th • Phase 2 • January 29th • Maximum 750k • Old Dominion University • Provides • Facilities • Ethernet

16. Marketing Plan Major coffee shop retailer criteria: • Extensive market share • Strong future growth and revenue potential • Compatible market strategies in regards to our product • High repeat order frequency

17. Market Identified • Net Revenue 2003: $4.1 billion • Net Earnings 2003: $268.3 million • 77% of Net Revenue from beverage sales http://www.fool.com/news/commentary/2004/commentary040130ram.htmhttp://www.starbucks.com/

18. Starbucks U.S. Market by Stores • Source: http://www.organicconsumers.org/starbucks/indie-coffee.cfm AND http://www.starbucks.com/aboutus/pressdesc.asp?id=454

19. Market: Customer Use 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?

20. Faster Service Generates Revenue • Statistics indicate that each six-second improvement in speed of service generates an extra 1 percent of sales. • Wireless payment methods have shaved 15 to 20 seconds off transaction times. • http://pittsburgh.bizjournals.com/pittsburgh/stories/2004/05/31/story6.html?t=printable%208sep04 • http://www.chainleader.com/archive/0702/0702tech.html

21. Starbucks Card • Consumer use • Stored value card • Starbucks Card: 35 million cards activated to date. • Customer “buys” card at store, over the phone, or on the Starbucks website • Customer registers on Website or over the phone • Ties registered user to unique number on card

22. Quick Order System • Will follow exact same registration process as current system • Transponder can be in card or keychain format • Requires addition of customer order number field in the central database

23. Required Hardware Hardware Required: • RFID Reader • Model p_1023 • Transponder • POS Terminal • IBM 4695-322

24. Software GUI Register Person: Hi, How may I take your order? Customer: I would like a double café latte please. Register Person: Double café latte, that will be $1.03 please. Customer: Here is $2.00. Register Person: Okay $2.00 Register Person: here is your change and receipt. Thank you and have a nice day. Order Display: Double café latte Total: $1.03 Payment: $2.00 Change: $0.73

25. Quick Order Pass Full Use Order Display: Double café latte Total: $1.03 Change: $0.00 Register Person: Hi, how may I help you? Customer: (Uses Quick Order Pass) Register Person: Thank you and have a nice day. Save Order Pass

26. Phase 0: Deliverables • Feasibility presentation • Milestone presentation • WBS • Final Approval presentation • SBIR • Project Website

27. Phase 0: Conception Schedule

28. Phase 0: Project Conception

29. Phase 0: Budget • None

30. Phase 1: Deliverables • Documentation • Technical Description Paper • Budget White Paper • Draft Sub-contractual Paper • User’s Manual • Market Research • Prototype Design • Lab Prototype • Project Website • SBIR Phase 2

31. Phase 1: Proof of Concept Schedule

32. Phase 1: Organization

33. Phase 1: Budget

34. Phase 2: Deliverables • Production Specifications • Beta-test contracts • Management plan • Personnel plan • Test/Evaluation plan • Marketing plan

35. Phase 2: Prototype Development

36. Phase 2: Prototype Development Organization Chart

37. Phase 2: Budget

38. Phase 3: Deliverables • Sales Contracts • Product Manuals • Customer Support Location • Product Roll-out • Out Year Strategy

39. Phase 3: Production Schedule

40. Phase 3: Production Organization Chart

41. Phase 3: Budget

42. Risk Analysis/Mitigation

43. Risk Analysis

44. Summary • Efficient and convenient • Based on developed technology • Highly accurate • Easy to integrate • Strong market potential

45. Questions • ?

46. Appendix • A. Determining Cost • B. Hardware Cost • C. Survey Raw Data

47. Hardware Installation Profit Table

48. Hardware Cost • Hardware cost: • RFID Readers: Base cost is 45.00, Cost to Starbucks 90.00 • Cables: Base cost is 3.00, Cost to Starbucks 6.00 • Installation: Base Cost is 110.00, Cost to Starbucks 220.00 • Figures from Hardware Installation Table assume 3 registers. • Transponder: Base Cost is 0.20, Cost to Starbucks is 0.30 • 5500 stores are capable of accepting the Starbucks Card currently http://www.phidgetsusa.com/viewcategory.asp?category=USB+Sensorshttp://www.starbucks.com

49. Hardware Costs to Starbucks Refer to Appendix for details

50. Transponder Cost to Starbucks Refer to Appendix for details