ECT 589

Mobile Enterprise

Part 2

Case: Marriott International’s Wireless Initiatives

Some overarching trendsConsumer (Guest) Mindset

• Consumers increasingly expect “Full Range Connected Mobility”, i.e., seamless and fast connectivity anytime, anywhere

• The “office” as a fixed location is giving way the notion of the office as just the act of paying attention to work through “always-on” mobile technology

• Self-service technologies will be adopted widely, not just because they have a fast ROI, but because a significant segment of the population prefer this mode of interaction and become willing and at times, demanding participants

Monitoring and educating on technologies, applications, processes• Interconnected on-duty Hotel Employees - Locate,

Communicate, Facilitate, Monitor and Direct - all associates, all activities

• Wireless connectivity in all its forms - both associate- and customer-facing

• Occasionally Connected Computing Architecture - perform offline just as if online

• Network Convergence - voice, data, video, images, on a single network

• Digital Video technology - entertainment and productivity converge

Monitoring and educating on technologies, applications, processes

• Natural Language Interfaces - voice-based computer interaction

• Biometric technology - something you “are”, versus something you “have”, for security and authentication

• New applications for Card Technology - smart and traditional

• New applications for Geo-positioning Technology - knowing where you are and what is available there

Check-in Scenario “Standard” Kiosk

• Upon arrival, guest inserts credit card into self-service kiosk

• Kiosk authenticates guest and obtains room assignment from property system

• Guest checks in at kiosk, including option of changing room, and receives room key and printed welcome with room number

• Guest Stay record is opened in Property Management System

• Guest proceeds to room number printed welcome• Guest enters the room, opening the door with encoded

key dispensed from kiosk

Pre-Arrival Prep

Performed

Guest Welcome

d

Guest Check In Performe

d

Check-in Scenario Biometric Kiosk

• Upon arrival, guest speaks their name and a random sequence of numbers as directed by voice activated kiosk

• Kiosk authenticates guest based on voice pattern analysis and obtains room assignment from property system

• Guest checks in at kiosk with voice commands, including option of changing room, and receives room key and a printed welcome with room number

• Guest Stay record is opened in Property Management System

• Guest proceeds to room number printed on printed welcome• Guest enters the room, opening the door with encoded key

dispensed from kiosk

Pre-Arrival Prep

Performed

Guest Welcome

d

Guest Check In Performe

d

Check-in Scenario Guest Handheld

• Property system delivers room assignment to guest’s handheld within a standard window of time, prior to arrival, based on profile

• Guest has option of requesting room change prior to arrival• Upon arrival, guest’s handheld device wirelessly signals to property

system that guest is present in the hotel• Property system wirelessly sends welcome message and options for

check in, including another room change opportunity• Encoded key data, room number and welcome data are wirelessly

delivered to guest’s handheld• Guest Stay record is opened in Property Management System• Guest proceeds to room number displayed on handheld• Guest enters the room, opening the door lock with handheld’s wireless

encoded key signal

Pre-Arrival Prep

Performed

Guest Welcome

d

Guest Check In Performe

d

Check-in Scenario Guest Handheld

• Property system delivers room assignment to guest’s handheld within a standard window of time, prior to arrival, based on profile

• Guest has option of requesting room change prior to arrival• Upon arrival, guest’s handheld device wirelessly signals to property

system that guest is present in the hotel• Property system wirelessly sends welcome message and options for

check in, including another room change opportunity• Encoded key data, room number and welcome data are wirelessly

delivered to guest’s handheld• Guest Stay record is opened in Property Management System• Guest proceeds to room number displayed on handheld• Guest enters the room, opening the door lock with handheld’s wireless

encoded key signal

Pre-Arrival Prep

Performed

Guest Welcome

d

Guest Check In Performe

d

In-room Entertainment & Work Scenario

• Guest’s handheld device is the “hub” of their personal network, containing an incredible variety and volume of content.

• Utilizing technologies such as Bluetooth and WiFi, this hub automatically “negotiates” wireless connections with built-in room infrastructure– Video Screen (plasma, LCD)– Television Tuner– Video Player– Music Player– High fidelity speaker system– High Speed Networking

• Guest is offered options (with related pricing) of– Playing their own video, music, audio book library, or other content– Purchasing entertainment available in the hotel entertainment system– Watching free-to-guest programming– Connecting to high speed network– Using the video screen and in-room wireless keyboard to perform work

In-Room Services Performe

d

Ancillary Services Performe

d

Future Scenario Performing Arts Connection

• Guest profile could contain their “top ten” list of performing artists they would like to see in concert

• Upon reservation (or within a window thereafter, including at check-in time) Marriott systems “connect” to Ticket Master systems to determine if favorite artist(s) are in town during stay

• If so, and tickets are available, an offer to purchase concert tickets is delivered to guest’s wireless handheld device

• Customer accepts or declines offer on their wireless handheld• Marriott (Ticket Master) executes an order and delivers tickets

either electronically to handheld, or prints tickets and presents upon customer check in

• Marriott takes a service fee for arranging the transaction

In-Room Services Performe

d

Ancillary Services Performe

d

Future Scenario Performing Arts Connection

• Guest profile could contain their “top ten” list of performing artists they would like to see in concert

• Upon reservation (or within a window thereafter, including at check-in time) Marriott systems “connect” to Ticket Master systems to determine if favorite artist(s) are in town during stay

• If so, and tickets are available, an offer to purchase concert tickets is delivered to guest’s wireless handheld device

• Customer accepts or declines offer on their wireless handheld• Marriott (Ticket Master) executes an order and delivers tickets

either electronically to handheld, or prints tickets and presents upon customer check in

• Marriott takes a service fee for arranging the transaction

In-Room Services Performe

d

Ancillary Services Performe

d

Primary focus - on-property productivity, service, and “changing the game”

• Identify opportunities and all classes of properties• Identify GM’s and RVP’s disposed to technology leadership• Perform proofs of concept (POC’s) in leadership-oriented

properties for high potential applications and technologies• Compile results of POC’s• Educate the business and IR on the

– Results of POC’s, – Implications for industry and Marriott– Possible approaches for dealing with implications

Identify Opportunit

y

Identify High

Potential Properties

Perform Proof of Concept

Compile POC

Results

Educate Business &

IR on Implication

s

Marriott Desire to

Retain Leadership

Marriott Educated on Implications

of Leadership

Guest Connectivity at Marriott Hotels

Wired HSIA in rooms and Wired HSIA in meeting space WiFi in meeting space WiFi in rooms Cellular, PCS and wireless PDA signal access Enhanced handheld formatting for Marriott.com Mobile-enabled applications

Proofs of Concept - Completed• Enterprise Instant Messaging• Self Service Kiosk for Check-in and Check-

out (remote and in-hotel)• “Push to Talk” cellular phones for hotel

associates• Wireless Tableside Order Taking• Voice Over IP for intra- and inter-property

connections

Wireless handhelds for Micros point of sale

Symbol technology

Compaq IPAQ

Wireless bridge to distant golf maintenance building

• Golf Course predated the Hotel • Maintenance Building had no LAN or phones.• This was “discovered” late in the opening cycle.• “Wiring” for phones and LAN deemed too costly,

disruptive and time-consuming• Solution:

– Place transceiver-antenna on Hotel roof and reciprocal unit on Maintenance building roof

– Connectivity to the Hotel PBX for VoIP phones – Distributed LAN connection

Proofs of Concept - Planned• Wireless Handheld Check-in and Room Entry• Wireless connection of guest Music and Video

devices to in-room infrastructure• Voice activated Check-in and Room Entry• RFID for high-value assets and “presence”

applications• Smart panel arrays for significantly improved

WiFi propagation• WiFi phones for hotel staff instead of pagers,

walkie talkies, cell phones (possible integration with Spectralink)

VoIP and Wireless Connectivity in other Hotels

• Marriott Waterside and Marriott Westshore connected via Wireless link, and VoIP

• Kuwait Marriott – Complete VoIP for guests and associates

• Product Development Committee standard “Room of the Future” – embedded wireless connectivity between guest devices and in-room infrastructure

STSN Wireless HSIA Connectivity in Public Areas

• Part of our Wireless initiative with Intel and STSN – “Wired for Business”

• Allows connectivity to the Internet from Lobby and Other Public Areas, including outdoors such as around the pool, beach, and golf courses

• Complements wired Guest Room and Meeting Space HSIA by STSN and other providers

RFID Trends and Issues

Data Synchronization

POS Data

Data Collection

Lot Traceability

ASN Transmission

High-Speed Sorting

Counting Returnable

Assets

Smart Appliances

Third-Party Data Collection

Active and Passive RFID Applications

Critical Issues on RFID Implementation

1. What are the current and future capabilities of the RFID technology?

2. Which vision of RFID usage will emerge as beneficial to enterprises and consumers, and which will remain “science fiction”?

3. What does an enterprise need to do in the next five years to harness the technology for competitive advantage?

Antenna Radiate RF Activate Tag Can Be an Array Can Be Separate From Transceiver

Tags IC and Antenna Passive or Active Various Packaging Options

Transceiver RF Module Decoder Handheld or Fixed “Interrogator”

Transceiver Photos: Intermec Technologies Corp. Photos

Much Work Remains on the Three Basic Hardware Components for RFID Systems

Low Frequency

High Frequency

Ultrahigh Frequency

Permeability

Range Data Transfer Rate

Microwave Frequency

~125KHz

13.56MHz

850 to 1,000MHz

2.45GHz

General Characteristics

RFID Frequencies:One Size Does Not Fit All

Silicon Antenna Assembly Packaging

$0.15 $0.05 Capital/Scale-Sensitive

Current: At Least $0.40

Production Cost Components of Passive Tags

The Five-Cent RFID Tag Does Not Exist, but Some Mainstream Applications Are Still Relevant

Closed-Loop ApplicationsPre-2002

Closed-Loop Pilots Based on Open Standards

2002-2004

Open-System RFID Applications

Using RFID to Create New Processes and Strategies

2004-2007

2007-2012

Scope of Solution

StrategicPower

Phase 1 2 3 4

RFID-Enabled

RFID-Centric

Most Benefits of RFID Will Not Happen Until Enterprises Adopt RFID-Centric Processes

IT Costs:Architecture,Infrastructure, Applications

Operational Costs: Productivity

Increasing RFID Use

Costs ofData

Collection

Enterprises Trade Off Operational Costs for IT and Capital Costs

Amortized Fixed Costs

Operational Costs

Issue #1: An Incremental Operational Cost of Collecting Data?

Can Your Systems Handle:

Issue 2: Operations Limitations Keep the Scale of Data Manageable?

Considerations in RFID Process and Facility Design

Data Latency Sorting/Identification

Concentration of Tags/Speed of Tag Reads

Environmental

Transceiver Photos: Intermec Technologies Corp. Photos

Real Time Lag Time

Issue #3: Facility Layout and Process Design Involve Line-of-Sight Verification?

2007 Enterprise: Virtually Integrated, “Real-Time”

“Multienterprise Grid”Enterprise/

Suppliers/ Partners

Traditional Inhibitors Bad Data Can’t Depend on Operations

Customers

Industry Networks

Issue 4: Can’t Trust Information from Others?

Shrink

Asset Value

Bar CodingRFID

RFID +InformationBenefits

Issue 5: Most Assets Are Too Trivial to Track in Detail

Still Developing a Strategy: What Will Wal-Mart Require, and How Will This Play Out?

• Only Using Standards-Based Technology• Cares About UCCnet, ePC and RFID• Wants to Collaborate With Suppliers

Wal-Mart Announcement

ePC Standards Announced

Wal-Mart Supplier Conference

Supplier Enablement Implementation Begins

Vendors Announce Concrete Solutions

Vendors Promise Solutions

Wal-Mart Finalizes Requirements

Suppliers Attempt Cost Rationalization With Wal-Mart — Propose Some GTIN on Bar Codes

Wal-Mart Compromises and Rationalizes Requirements

Limited Tagging in Production Environments Begins

Suppliers Develop and Implement Win-Win Business Cases With Wal-Mart

2Q03 3Q03 4Q03 2Q041Q04 3Q04 4Q04 1Q05 Beyond

2008 2013

Manage Labor and Tasks

Granular View of Some Case Inventory

Granular View of Item Inventory

Eliminate POS

Individual Promotions

Huge Stores

Beyond

RFID-Centric Retailing Enables Sophisticated Management of Store

Operations

Emerging Market: RFID Prototyping Environments Will Facilitate New Processes

System of RecordSystem of RecordWMS, Manufacturing, RetailWMS, Manufacturing, Retail

RFIDRFIDDataData

CollectionCollection

StateStateManagementManagement

DBDB

RADRADEnvironmentEnvironment

(Portals)(Portals)

FunctionalityMigration

Some Implementation Issues• Begin planning now for customer-driven RFID

labeling requirements by 2005.• Immediately review all RFID projects to ensure that

RFID is intrinsic to the project — specifically, look at data synchronization and data collection projects.

• Identify and prioritize projects that create competitive advantage by breaking “Strategic Bar Code Assumptions.”

• Triple the money allocated for process re-engineering to get RFID-centric processes.