Article

Shopping the software scene

There are few limits on what kiosks can do -- provided they're equipped with the right software. Here are some hints on picking and choosing a software partner.

March 27, 2004

When Dave Hanzal, IT project manager for TravelCenters of America, first looked into using kiosks as a self-service tool for truck drivers, he had no idea of the potential those kiosks would have. That was over three years ago, and today, customer self-service is so ingrained at TravelCenters, the company has to update its kiosk capabilities every two months.

"A short time ago, we were completely paper based. I never realized the success we would achieve with our kiosks," said Hanzal. What started out as a simple tool for drivers to cash in on incentives has turned into a machine containing an advanced loyalty program for fuel purchases, a bill and credit-card accepter for shower payments, and a marketing module.

That's the power of software: providing the ability to create valuable and exciting self-service applications on an ongoing basis.

TravelCenters' Roadmile Marker computer kiosk runs on customized software from Apunix Computer Services. Other kiosk software vendors in the industry include Netkey Inc., NetShiftand Provisio GmbH, developer of SiteKiosk software. These companies, and others, provide the brains inside kiosks. All agree that cutting-edge applications drive the kiosk market. And their customers keep asking for more. (For more on Kiosk Software, check out the KIOSKmarketplace software research center).

"We've seen that self service is the way to go," said Hanzal. Before taking the plunge, TravelCenters, based in Westlake, Ohio, had been watching the kiosk revolution at a neighboring business, Continental Airlines.

"We saw the success they were having with kiosks, and I thought that was a strong indication of what we could do," Hanzal said. He went online to start his research into vendors.

First Stop, OS

Industry experts said several factors kiosk deployers should be considered before selecting a software vendor, including application reliability and stability, flexibility, ease of use, manageability, security and return on investment.

Deployers should ensure that application software, sometimes referred to as "middleware," is compatible with their chosen operating systems. The most commonly suggested operating systems are Windows 2000, XP and NT; and Linux.

Software from Apunix drives a casino application

Linux is the operating system recommended by Apunix. "Our applications are written in Java, so we run on any platform. But we choose to deploy in the Linux environment because of its unprecedented uptimes," said Syvia Berens, Apunix vice president. "Most customers take our recommendation, but we do give them choices," she added.

Netkey, NetShift and Provisio each recommend Microsoft Windows. "Windows is the most used and supported by compatible vendors in the marketplace," said Bob Ventresca, director of marketing for Netkey. "Corporate IT knows how to support it. It handles video, audio, animations and Internet connectivity well."

Old Reliable

Most of the vendors agree that reliability and stability are the first issues about which a deployer should ask a software vendor. The reason? Business depends on constant uptime.

"A kiosk has to run, or it completely loses its value," said Berens. "If a kiosk is down, it gives a business a bad image. Consumers expect an ATM to run, for example." She said Apunix customers require kiosks to function for years without a reboot.

Hanzal said that is the case with the TravelCenters implementation. The company has 155 kiosks across the country, each handling about 65 daily transactions. More than 350,000 drivers are enrolled in the company's incentive program.

"With self-service, uptime is critical," said Hanzal. "I have some locations that have never called me about application issues in over three years." He said that's significant because TravelCenters employees are there "to serve customers, not babysit machines."

Robert Gallner, vice president of sales, USA, for NetShift, said software stability is a key element of the reliability equation. He explained that stability only comes from having the software out in the field and fixing bugs as they occur.

"NetShift has thousands of deployed copies of its software. By having such a larger user base, we have an advantage of eliminating any known issues. We also get considerable feedback for future enhancements and releases," Gallner said.

He added that software must be "industrial" to the point where it has the type of always-running functionality with which professional programmers and designers can identify and feel comfortable.

Ventresca said users should also address the reliability of the vendor themselves, aside from their products. Do they have a proven track record of deployments? Do they have the financial backing to be around for awhile? Do they have a help desk that can be easily accessed for support and an experienced services team that can assist in design and implementation?

Ventresca pointed to Netkey's reference list as an example. Any vendor should be willing to provide prospective clients with such a list, as well as contact information. Netkey customers include Borders Books and Music, 3,000 kiosks; Publix Super Markets, 750 kiosks; BMW, 350 kiosks; Fidelity Investments, 350 kiosks.

Ability to Adapt

Flexibility is another point Hanzal said he looked for when first researching software vendors.

"Our original scope document for the kiosk project was two pages. Now it's at five as we've done more and more. You have to be able to expand your capabilities--and on a fast timeframe," said Hanzal.

TravelCenters pushes out upgrades over its Frame Relay network. The kiosks are Oracle-database driven, and are deployed on Linux.

Heinz Horstmann, sales team member for Provisio, said his company's SiteKiosk software is adaptable to the market requirements of retail, hospitality, industry and government.

SiteKiosk for Windows offers a secure Web browser, different payment options (bill, coin, card, code), video and photo mail, content filtering, remote management, log files and stats, touch-screen support and a JavaScript-based programming language that enables users to customize their software.

Easy to Manage

Once deployers have software in place, they should be able to make changes, or check the status of kiosks anytime, anywhere. Netkey Manager management software, for instance, has been proven in managing thousands of kiosks.

Remote management is another key selling point for kiosk buyers.

Safe and Sound

Horstmann cites security as the biggest software issue. "Kiosk software needs to use state-of-the-art techniques to make sure that users cannot tamper with the kiosk," he said. "Errors at kiosks induce extra costs for service and narrows the profit margin of the terminal company."

He said OfficeMax.com, for example, is deploying HP Vectra Vl400 PCs with SiteKiosk software to secure the machines against manipulation.

More than two thousand are being deployed, one per OfficeMax store, with the purpose of selling HP PCs to consumers. HP has written a custom Web site to allow consumers to configure their own PCs and have them shipped direct to their homes.

OfficeMax is using Cisco wireless technology within the store to connect the PCs to the corporate Frame Relay network, and then to the Internet. The PCs authenticate through a Windows 2000 network and use Microsoft's ISA server for web caching, proxy server and security from the Internet.

All-Important ROI

Finally, there is the bottom line: cost and the return on investment.

"ROI is what drives our industry. All projects need some type of justification and validation," Gallner said. There are a number of different ways ROI can be measured, the most obvious being in a device that is transactional. ROI can also be measured by a company's ability to lower payroll costs by automating certain tasks, as well as being more efficient.

But Ventresca argues that ROI is overrated. "If you are a manager in a company tasked with rolling out a kiosk project to your customers, and your career is on the line, are you going to go with the least expensive solution, or the one that you can trust to do the job? It's far more costly to fail."

He said the measurement of ROI for kiosks is complicated, and often misunderstood. "You may not be generating sales directly off a kiosk, but that system can help your customers make informed decisions and sell products elsewhere in your store or bank, and will reduce the cost of that making that sale or providing that information."

Kiosks provide the intangibles of providing fast, effective customer service, or helping a company stand out in a competitive marketplace.

Going It Alone

Naturally, the vendors caution potential deployers against developing kiosk software in house.

Said Gallner, "There is really no `off-the-shelf' software that will work magically in every application. Many apps require some type of customization."

He said companies trying to save money task their own internal teams with the development of a kiosk application, often a costly mistake. Most of these deployments end up in failure because the people doing the design work may have no previous experience in designing kiosk applications.

Said Gallner, "By the time they figure out what they are doing, budgets have been spent or the business case may have changed dramatically. We are specialists at what we do."

Berens said another costly mistake is trying to leverage money spent on a Web site by throwing site content onto a kiosk, a completely different medium.

"Customers don't want a bunch of links and ancillary information when they are trying to get their business done. They want to get on the kiosk quickly, and get off."