Implementing a Kiosk at POS - Essay Example

Literature Review and Project Specification (Study) - etc LITERATURE REVIEW 1 Kiosk Technology The main theme behind introducing the concept of Kiosk technology was to initiate the theme of 'self service'; in an attractive, well organized way that could spur the sales and customer satisfaction ratio. Kiosk point-of-sale systems provide 24 x 7 availability to the customers where they can make transactions in an easy, user-friendly manner (Silicon Landmark, n.d.). In addition, these provide customers with product information and interactive features that improves the overall image of the company in customers' minds. Kiosks are available in various types and for various purposes. Ranging from a simple cash register to a complex and integrated ATM (Automated Teller Machine), kiosks are believed to improve customer relationships, reduce headcounts for manual/ traditional operations, to take benefit of technology boom, to achieve accuracy and efficiency in operations and to improve customers' perception about the company by providing various marketing and product/ services information on the kiosk terminals. However, as yet no study has been conducted to verify the above claims of kiosk vendors. Using a kiosk system, the customers are relieved from standing in the queue for getting a product or service (Whitech Solutions, n.d.); rather they can use the self service feature that is provided by the kiosk system at POS sites to reduce the response time that is otherwise on a higher side in traditional systems. The kiosk software communicates directly with organization's database systems from where it fetches information to the customer at the kiosk site. 1.2 Implementing a Kiosk at POS A company needs to adopt an organized approach for implementing a kiosk system at its POS sites. This strategic IT decision should be taken after careful analysis of costs and the perceived expected benefits of the implementation. The site, technology, type of kiosk to implement, the hardware and software requirements, the vendors and strategic partners for the implementation are needed to be identified well before the actual implementation gets underway. As with any strategic IT implementation, the Return On Investment (ROI) must be calculated for this decision as well. However, since a number of qualitative factors are involved in this scenario, it is relatively a bit difficult to do a quantitative analysis to determine the degree of effectiveness and efficiency that a kiosk will provide to the business. This inherent limitation requires the organization to apply a focused effort to carefully examine and evaluate different criteria that it believes will have an impact on the overall implementation. 1.3 Managing the Change Although it is believes that kiosks add value to the business, yet the implementation needs to be monitored and supervised. A great technology with great potential in a great market will be useless if there is lack of support for it by employees and customers (Mitra, 2007). The project should be appropriately managed taking the employees into confidence that there jobs will not be at stake once the new system gets implemented. In addition, they need to be assured that the new system will actually assist them in improving their performance; for instance, installing a self service kiosk at a retail store will reduce the queue at the till, thus allowing the customer service personnel to give more time to each customer, and improve the quality of customer service; which will ultimately be reflected in his/her appraisal. 1.4 Benefits of Kiosk Implementations Kiosks have been implemented in organizations of all sizes, forms and belonging to various industries (Harris, 2006, p.1). The goal of any kiosk implementation can range from more sales, improved services to customers, controlling human resource related cost overheads, and create customer loyalty by offering an attractive, fast and responsive self service technique. 1.5 Issues with Kiosk Implementations Not all kiosk implementations have been able to satisfy the stated goals of the organizations who have implemented these solutions. These failures were not only unsuccessful in creating and adding value to customers' perception, but also resulted in financial losses to the companies. These failed implementations are sometimes attributed to the lack of feasibility analysis before implementing the kiosks, inadequate funding and selection of optimal type of kiosk to implement, lack of post implementation support in keeping the systems up to date and in working conditions, or lack of customer's interests in using kiosks at a location. It can be said that an accurate and reliable description of the parameters that affect the kiosk implementations are yet to be discovered, and a relationship has not be developed so far with critical success factors of the kiosk implementation to derive the business benefits that the technology promises to provide. 2. PROJECT SPECIFICATION 2.1 Intention The project results will be used to generate a research paper. 2.2 Project Title Whether and How Kiosk Technology Adds Value to POS Systems 2.3 Project Topic Area Overview Kiosk is relatively a new technology that has been started to be used with Point-Of-Sale Systems in environments like retail stores, check out counters etc. The purpose of using kiosks is considered to be two fold - it not only attracts the customers due to its attractive layout and features; but also develops a self service culture that in turn allows the company to reduce head counts by relying on technology to make transactions with speed, reliability and accuracy, and getting rid of extra staff that adds to overheads. 2.4 Situation Overview The research will be conducted through surveys at various locations and stores in the city, and will focus on obtaining customers and business management's views regarding the unproven belief that kiosk technology provides high value addition to customers at POS systems. 2.5 Presenting Problem Definition How effective kiosks are in adding to customer delight at the point of sale sites. My research will help establish a relationship between kiosks and the POS systems which can be used as part of feasibility analysis for strategic IT investment in kiosk technology by companies at their point of sale systems sites. 2.6 Real World Target I will establish a relationship between customer interaction with kiosk at POS systems and the perceived value addition they derive from it, using qualitative and quantitative methods. In addition, I will also study different techniques of implementing kiosks at the POS sites, and the features and facilities these provide to users. This can be used as a starting point by organizations in their feasibility analysis for strategic IT investment in their businesses. 2.7 Research Question Whether kiosks add value and provide customer satisfaction to the consumers at the point of sale terminals sites 2.8 Personal Theory Companies are quickly converting their point of sale systems to have kiosk technology. This integration has offered various advantages to the companies including ease of use by customers, self service features that reduce the human resource needs, and centralization of customer records. It is also being used as an attraction to appeal customers since the systems can be linked to other services like bill payments, banks and others. This high rate of growth of kiosks in recent years shows that this technology offers a number of advantages to supplement POS systems of the companies. Though, the specific reasons for such high growth will be explored in detail in my research, it can be said that a company that installs kiosks at its retail stores, definitely succeeds in capturing eyes of the customers. 2.9 Intended Project Outcome Outcome will be an evaluation report measuring changes in customer interaction, satisfaction levels, and the value businesses are getting by installing kiosk with POS. If available, I will try to gather data to measure above parameters before and after kiosk implementation at POS sites. Otherwise, I will provide a relationship between the features that kiosks provide through POS and the degree of customer liking to use such systems. 2.10 Strategic IT Value The outcome of the research will assist entrepreneurs and organizations' management to decide whether they should opt for kiosks at their existing and new POS systems. It will also serve as the starting point for developing feasibility studies around the use of kiosk technology for POS systems. 2.11 Ethical Overview There are no ethical consequences of such systems as such; with an exception that frauds can be committed at kiosks, using new and innovative ways. Every new IT system brings new risks and security threats with itself and kiosk is no exception. The kiosk frauds can be perpetuated by staff, customers and/or third parties; and the companies installing kiosks should take appropriated steps to adequately secure the systems and their usage. 2.12 Aim To establish qualitative and quantitative metrics for measuring the impact of using kiosk technology with POS systems. 2.13 Objectives To develop and conduct surveys an interviews with people who have implemented and used kiosk systems at POS terminals, and document the results To establish and document qualitative and quantitative metrics to measure impact of using kiosks on businesses and customers To establish and document a relationship between kiosk implementation and the value addition the customers derive from it, if any To comment on the effectiveness of kiosk systems in improving the goodwill, and customer base in the form of a report To identify and report techniques of implementing a kiosk system and to compare these with a view to establish a rule of thumb for kiosk implementation 2.14 Research Design - Research Method The research method that will be used for the research project is based on the use of surveys and questionnaires, and interview sessions with managers of businesses who have implemented kiosks, and the customers who have experienced the use of kiosks at POS systems. The research is a mix of qualitative and quantitative analysis. I will test the hypothesis that kiosks add value to the business of an organization. 2.15 Research Design - Phase 1: Primary Data Collection Process 2.15.1 Basic Activity for Generating Data The spotlight is on determining the effectiveness of kiosk implementation with POS from business point of view, and degree of customer satisfaction associated with it. 2.15.2 Primary Data I will get statistics like number of kiosk implementations with POS; number of customers using it; nature of services offered; degree of satisfaction customers derive from it, etc. I will try to quantify the qualitative data using scales like 1-5, and providing descriptions for each rating. I plan to gather 30 different responses from people at 4-5 sites in the city where kiosks have been used at the point of sale systems. 2.15.3 Location I will visit retail stores, grocery stores, and food chains in the area that have installed kiosk at their sites, and will meet customers and business management to carry out the surveys and interviews. 2.15.4 Collection Protocols My choice for doing the research is through random Survey Questionnaires - including Customer Surveys, and Business Surveys; that is, the vehicle to be followed for data collection will be interviews, survey questionnaires and meetings with stakeholders and users of the kiosk systems. The recording profile will include written surveys, interview answers in document form, documented minutes of meetings, and interview minutes. The sample technique that will be used will be random sampling for conducting the interviews and surveys, and stratified sampling to identify the targeted site to visit - one in each area of the city, to achieve maximum coverage. Permission will be sought from business management before conducting the surveys at their sites and results will be communicated to them as well. 2.15.5 Primary Data Collection Presentation The sets of primary data and the results of surveys will be presented in appendices of the project report document. The completed survey sheets will be attached in original, and minutes of meetings will be attached after necessary formatting. 2.16 Research Design - Phase 2: Processing and Presentation 2.16.1 Design of Pre-Processing for Primary Data Collection I will define statistics I want, like average age of people who use kiosks at POS sites, percentage usage of kiosks at different locations, the degree of satisfaction derived by using kiosks, increase in perceived business value, improvements in customer relations and other measures that the businesses have developed to evaluate the effectiveness of kiosks at their POS systems etc. 2.16.2 Design for Results Presentation I will develop charts and graphs showing the level of customer satisfaction before and after installation of kiosks; and reasons for such changes. I will also group the gathered data under appropriate categories like customer age group using kiosk, companies most successful in implementing kiosk with POS etc. 2.16.3 Design for Generating the Intended Project Outcome Based on the primary data presentation charts and statistics identified above, I should be in a position to conclude whether kiosk technology helps POS systems, or it is just another fad by management desiring to invest in IT. I will also provide an analysis of the perceived and actual benefits that kiosks provide to businesses by improving customer relationship with the company and its systems; and what are the key features requirements of kiosks. 2.17 Logistics and Tools - Resources Required The research work requires visits to the sites where kiosks are installed and to meet people there. No specific resources are required for these. For data analysis, a spreadsheet and analysis tool like Microsoft Excel is required which is available at the university. Report will be developed using Microsoft Word which is also available at the university. 2.18 Outline of Content List for the Project The outline of project report contents is shown below: 1. Introduction to Kiosk Technology and POS Systems a. Introduction b. Presenting problem definition c. Real world target d. Personal theory e. Research question and discussion f. Project aims and objectives 2. Literature Research a. Kiosk technology b. Point-Of-Sale systems c. The integration - history and current situations d. Features provided by kiosks e. Main vendors and players in the market 3. Research Design a. Research method selection and rationale b. Primary data collection process c. Processing of primary data 4. Results Discussion and Presentation 5. Evaluation a. Evaluation of project outcome b. Evaluation of Research Methods used 6. Conclusions a. Generalization on the research outcome b. Lessons learnt c. The way forward 7. References and Bibliography 8. Appendices a. Project schedule, b. Questionnaires, c. Surveys, d. Interview minutes, e. Datasheets / spreadsheets, etc. 2.19 References 1. Silicon Landmark. (n.d.). Point of Sale Systems. Retrieved February 25, 2007 from the World Wide Web: http://siliconlandmark.com/PoSSys.php 2. Whitech Solutions. (n.d). Q'less Self Service Food Order Stations. Retrieved February 27, 2007 from the World Wide Web: http://www.whitechsolutions.com/food_intro.html 3. Harris, B. Ten Steps to Better Kiosk ROI. Self Service and Kiosk Association. 2006. 4. Mitra, D. How to Self Service My Business. Kiosk Europe. Spring 2007. 2.20 Project Plan Activities Duration in Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Development of Surveys Development of interview questionnaires Identification and selection of sites to visit Conducting surveys, interviews and meetings Data compilation Identification of required metrics and analysis Data analysis, charts and graphs development Development of data relationships Project report development Read More