Monday, May 18, 2009

Barcodes of the future

By TANIA BUTTERFIELD - The Press

Last updated 11:39 21/04/2009


Picture this: you are out and about on a Saturday afternoon and see an advertisement at a bus stop for an outdoor concert.

In a corner of the advertisement are a couple of barcodes. Wanting to find out more about the concert, you pull out your 3G-capable mobile phone and take a picture of one of the codes.

It transfers you to the official website of the concert, where you find out that it is to be held tomorrow night and some of your favourite bands will be performing. However, the concert will be cancelled if it is raining. You take a picture of the next code, which transfers you to the latest weather information. Gutted! It's meant to rain.

As you walk along, you see another advertisement for the latest blockbuster film. Taking a photo of the code printed on the advertisement takes you to the session times for the film at the cinemas in your area.

Barcodes as we know them are meaningless to most people. But with the advancement of 3G mobile phone technology, 2D - or two-dimensional - barcodes could become one of the most useful consumer tools of our time.

2D barcodes were created by Japanese company Denso-Wave to track car parts, but have since developed into a tool that opens a world of opportunities for consumers. It is sometimes called mobile tagging.

2D barcodes contain information in both their horizontal and vertical indices, as opposed to the one-dimensional barcodes we normally see, for example, on supermarket products. These hold information only in the vertical index.

2D barcodes open up a world of opportunity. Imagine shopping at a supermarket and wanting to know that your fruit and vegetables are not genetically modified and the wine you will drink is of a good quality. A picture of the 2D barcode on the product's packaging leads you to a website where you can watch footage of the vegetables growing and the wine being made before you make your purchases.

Risa Takauchi, 22, of Osaka, Japan, first used the 2D Quick Response (QR) code a few years ago when she downloaded a discount coupon on to her mobile phone using a pre-installed barcode application.

Takauchi says she now uses the code several times a month. "I use it to get coupons or information about particular restaurants. At McDonald's I'll use it to get information on the food I'm eating, like calories and nutrition."

McDonald's Japan has the QR codes printed on the wrappers of their products linking consumers to nutritional information about the individual product.

Other codes printed by McDonald's lead to discount vouchers which can be redeemed by showing your phone at the front counter. This is the Japanese equivalent of vouchermate.com

Takauchi believes the success of QR codes in Japan is the way it makes website access so simple. "You just take a photo of the QR code and it takes you to the website immediately. It is really easy to go to the website and see only the web page of the information you really want to know."

New Zealander Michael Smith, 20, was introduced to the 2D code technology by a friend who discovered it while in Japan. He created his own code via the website mobilecodes.nokia.com and used the 2D sense application on his iPhone to test it.

"It was very easy to use. I think they would be useful in accessing information you might want when you are out and about, such as weather or event information. One click and you are there. It saves time googling everything," he says

"Everyone has a cellphone these days. If organisations put the codes on bus shelters or billboards - things people see when they are killing time - I'm sure people would use them."

Smith would like to see the QR codes used in New Zealand for "more promotions, links to free stuff, vouchers and cool stuff like that".

New Zealand-born exporter Kupa Hokianga has been developing QR codes for New Zealand and Australian exports to Japan since 2006, and says the technology has allowed his company, Gallerie, to bypass multiple levels of distribution in Japan.

"We started from scratch two years ago, and now fly pallets of gourmet products monthly, selling direct to consumers, cafes and cooking schools," he says.

Using QR codes, clients are supplied with information regarding ingredients, health warnings, recipes and the country of origin, as well as having the option to receive newsletters and special offers.

Without having advertised in the mainstream media, Gallerie now has a database of more than 200,000 consumers.

While New Zealand is yet to adopt this technology, QR codes are being used in Australia, Britain and the United States.

Last year, Sony, in conjunction with Telstra Australia, used QR codes to promote the cinema release of the James Bond film, Quantum of Solace. The treasure- hunt promotion attracted about 10,000 entries.

It has been suggested that Australians will be using QR codes as a standard information portal within the next 12 months.

In Britain, softdrink maker Pepsi began a QR campaign at the end of 2008, printing codes on 400 million products. Through the code, users are transferred to a website where people can enter competitions and download games and wallpapers.

The QR code is open source, which is free to anyone to create a code for non-commercial use. To try the technology, go to mobilecodes.nokia.com

* Tania Butterfield is a journalism student at the University of Canterbury.

Saturday, May 16, 2009

Revamping Ticket Sales - Meepass

In the report there are references to vouchers and B2C. We make the comment that ticket sale, distribution and admission could be changed significantly. This is based in fact and one French company is make inroads into this model.

The consumer locks into their onboard code generator with their PIN number. This allows personal iormation to be encoded and solves the security/fraudulent use issue.



Next the user generates the code and presents the phone to the reader on the entrance gate.





The reader scans the barcode from the handset screen, one of the key benefits of the technology is the flexibility of media that can be used.



Success!! the reader identifies the consumer as a paying guest and allows access to the venue.



This could be used for all venue events. I could have a barcode set with my Wellington Rugby Football Union season ticket number. I could then present my phone to the reader when I go to watch the Hurricanes or Lions down at the cake tin.

txtBus 2.0

Metlink currently provide the txtBus service.

The basic premise is that a passenger can text the bus stop number to an SMS gateway run by Metlink. The passenger then gets an SMS by return that provides the next three services to run from that bus stop.

Problem 1: the number, although easy, is not displayed on all bus stops. That means I have to remember it :(

Problem 2: the bus stop already has a static timetable showing all of the [planned] service times departing from that bus stop, this is the same information used by Metlink. The problem is that buses never actually run on time.

GoWellington buses are running a smartcard system similar to London's Oyster, Hong Kong's Octopus and Singapore's EZLink cards. The Wellington Snapper service uses GPS tracking to determine the passengers boarding bus stop and their alighting bus stop. This provides the basis for fare calculation.

It should then be possible to use this information to provide a more accurate estimated arrival time for services approaching your bus stop. If this information was then made available through the SMS gateway and supplied to customers then service actually becomes useful.

Where th QR Code fits in is that each bus stop would then have a QR Code with the bus stop number encoded in the message and the txtBus phone number encoded in the recipient. Now a passenger has two click access to real time bus service data.

QR Codes used in Libraries

The University of Bath have a very active 2D barcode programme.

One use is embedding a QR Code into the Library information system where the QR code containing the books information (Title, Author, Location) is generated and presented to the searcher.

The benefit to me is the quick retrieval directly onto my handset, no more bits of paper (there is never a pen nearby anyway) the information is in my hand and with me as I start my search through the library.

Take this idea to another level....

More and more handsets also have GPS on them. One of the useful data sets to encode in 2D barcode is geocode information. Typically this is longitude and latitude. If you were to make this a triplet and include altitiude you have some very powerful tools at hand.

Map the book shelf location as a triplet:
  • How far left or right
  • How far ahead or behind
  • How far above or below
is the book's location from where I currently am. The shelf location can be inserted automatically as a waypoint and then I simply follow the directions that my phone gives me. Gets me to the right shelf stack more easily than trying to interpret one of the those maps like you get in Wellington Central Library and much easier than what is currently offered in the Rankine-Brown Library at Vic Uni.

2D Barcodes and RFID

Below is a brief comparison of the key features of 2D barcodes to one of its major competitors. Specifics: when used for identification, asset tracking or supply chain management.

Appendix E - First Read Reliability

One of the further advantages of the 2D barcode formats is the first read reliability.

Error Correction

The main 2D barcode symbologies support the Reed-Solomon error correction coding standard.

Raising the level of error correction improves the ability of the reader to decode dirty or damaged symbols but also increases the total amount of data and therefore symbol size.

The specific error correction levels supported by QR Code are shown below. A codeword is a unit that constructs the data area of the symbol and is equal to 8 bits of data.



Processing Time

Some of the potential uses for 2D barcodes are away from the retail domain and are faced with competing technologies including Magnetic Cards, Radio Frequency Identification (RFID) cards, Optical Character Recognition for forms processing and Biological Identification for security access.

The process time of the 2D barcodes is comparable to magnetic cards and RFID cards, details in the table below. A further comparison between 2D barcode and RFIP is provided here.



First Read Rate Success

One of the key metrics for any barcode technology is the success rate for reading the code at the first attempt. First Read Rate (FRR). Barcodes are typically employed as a process automation solution as barcode scanning need to be faster than manual input.

A comparison of FRR statistics of some of the main 2D barcode symbologies is supplied below.

Appendix D - Calculating Code Size and Capacity

The code stamp size and the data capacity are influenced by the print media and the dpi (dots per inch) capability of the printer used.

The data in a 2D barcode is rendered as groups of modules. A module contains one or more dots and is equivalent to Binary 1. The residual white space in the code is treated as a Binary 0. The interplay between the black and white areas allows the meaning of the pattern to be referenced as data.

For the matrix code types of QR Code and DataMatrix, each black area or module is recommended to comprise of 4 or more dots to maximize the stability of the code stamp. The overall size of the stamp is then constrained by the printer head and the number of dots in a module, this relationship is detailed below.



The module size will then directly impact the overall size of the barcode stamp depending on the capacity required.

Carl Sewell has a spreadsheet that shows the relationship between barcode proportions (rows and columns) , the data capacity (Numeric, Alphanumeric and ASCII) and the stamp size in inches for the DataMatrix format,

Appendix C - 2D Code Generation and Code Reader Resources

These are a small sample of resources which will allow 2D barcodes to be generated from a webpage that then allows easy dynamic generation of barcodes. There are also various software libraries available that allow the same functionality to be embedded in applications.



Samples of 2D barcode readers available for mobile phones:

Appendix B - Using a QR Code Reader

Using a 2D barcode reader such as the Kaywa Reader is a simple process.

Appendix A - QR Codes in Japan

Since QR Codes have been in use in Japan for a number of years, they appear in everyday life. Below are some example.





Conclusion

The industries and uses discussed in this report suggest that 2D barcode technology can be used in a wide range of scenarios. However, it is apparent that the most natural use would be in business-to-consumer transactions.

Such technology is extremely useful for marketers and creates a bridge between the physical and online worlds that they can exploit to their benefit.

This does not however limit or constrain the technhology's potential. The scenarios presented within this report for other transaction types (B2B, C2B, C2C and eGov) highlight that the flexibility, size, data capacity and ease of adoption can prove to be useful outside of B2C transactions.

It is envisaged that the increasing influence of user generated content and convergence of the physical and virtual domains will only create more opportunities for 2D barcodes to be deployed in innovative ways.

The number of camera equipped mobile phones in-use today has created a market waiting to be tapped. 2D barcodes could prove to be one way to unlock this market's potential.

Force Field Analysis

Cost

For some uses, it is desirable for the user to browse content online through their mobile internet connection. For the majority of mobile phone price plans in New Zealand, this kind of data access is expensive.

However, if the mobile phone operators positioned themselves in the value chain, through partnering with content providers, network economics dictates that mobile internet becomes a viable revenue model then this could change in the customer's favour.

Security

The ease of generation and copy of 2D barcodes could be a concern. When used for vouchers careful consideration for control is essential to prevent fraudulent use. Some of these issues have already been resolved for the use of PDF417 standards for the airline industry. The lessons learned in this industry could be applied to other industries to mitigate the security risk.

Equity

To make the optimal use of the benefits offered by 2D barcodes, mobile phones need to be of a reasonable specification. A minimum requirements is a camera, but GPRS or a similar mobile internet technology is desirable. Such "smartphones" are still relatively expensive in New Zealand which could constrain the size of the market.

Usability

2D barcodes are intended to be an efficient and effective presentation mechanism on a mobile device. The adoption would be limited if the content being shown is not visible and usable on the handset.

To address this, content publishers need to create websites that are consistent with the dot.mobi domain standards. Further enhancement could be delivered using the principles adopted by the reader selection site. This website automatically detects the phone you are using in order to recommend a barcode reader. This same process could be used to filter the capabilities of the handset and present appropriate content.

A second consideration for usability is installing the reader onto the mobile phone. The process is relatively simple and not very technical. However, some users could struggle. If large scale adoption of 2D barcodes started to occur then mobile operators could offer an installation service for users who would otherwise struggle to install the reader themselves.

Issues and Barriers

As with any new technology comes issues and barriers that have to be addresses. This section discusses some of the potential issues and barriers to the entry of 2D barcodes in New Zealand.
  • Usability
  • Equity
  • Security
  • Cost

Form Processing Efficiency

Data standardisation has long been targeted by Government agencies to facilitate the flow of information between separate departments.

Example:

When applying for a new passport in New Zealana, a citizen passes an application to the Department of Internal Affairs (DIA). As part of the passport processing, the DIA passport officer needs to request checks from at least:
  • Births, Deaths and Marriages section within DIA
  • Department of Labour for immigration and residency status
  • Ministry of Justice for any criminal convictions
  • Department of Corrections for any information on community service or parole conditions
Today all of these departments run different information systems that make software integration complex and therefore expensive or impractical. As a result, the proess relies heavilty on a system of paper, email and faxes.

The adoption of 2D barcodes would assist this scenario by encoding key citizen data used by the associated stakeholders in the passport issuance process. This information could be stored as an XML structure in a 2D barcode that would allow an automatic interface to be coded rather than relying on current OCR technologies. This would enable faster seraches to occur and minimise the human interactions required.

eGov

The opportunity for 2D barcodes to penetrate Government organisations as viable solutions is currently limited by the technology. Specifically, concerns over security and the strict structure and organisation of Government institutions. However, there are some examples of how 2D barcodes can be integrated into paper intensive transactions.

Tax Returns

The equivalent departments to New Zealand's IRD in the US and Taiwan have been experimenting with 2D barcode representation of tax return information.

The key value driver is to move away from hand writing recognition expenses and to reduce the overall cost of optical character recoginition (OCR) software. The combination of compact size and high capacity of 2D barcode formats, such as PDF417 and QR Code, allow more data elements to be included in a form to further increase processing efficiency.

Current OCR solutions are limited by the capacity of a linear barcode. Information from this barcode tends to be limited to form or personal identifier that helps the person processing the form to the right area for data entry.

The increased capacity offered by 2D barcodes enables the actual tax return data to be encoded by the person filing the claim.

On receipt in the tax department, all information can be captured in a single scan and inserted into the IRD database as part of the OCR process.


This is possible given the given the flexibility of 2D barcodes, the image above shows XML data being stored in PDF417 format. This allows an automated interface to a transaction processing system to insert the data record from the 2D barcode.

This increases overall processing efficiency and reduces errors that can be introduced through manual intervention.

The example form shown below was proposed by the IRS in 2004 as a means of increasing overall efficiency in tax filing.

C2C

There are several free 2D barcode generators available online. The readers are readily available for most mobile phones and are relatively simple to install (Appendix C). This combination makes the technology easily accessible to consumers.

Classified Advertisements 2.o

The business models for newspapers and magazines are being disrupted by web technology. However, there is still some value in their content and 2D barcodes could be a means of converging print media and the online world.

The Dominion Post still runs a large classified advertisement section at the weekend for rental properties. If this was extended to include a 2D barcode, containing the contact details and contact method, it could assist property seekers making contact with prospective landlords.

The contact method is a choice that can be embedded into the 2D barcode (initiate SMS, start a call, send an email or display contact details). This could help drive seekers down the best contact channel for the landlord or agent. For SMS, the message can be automatically included which helps as a filter for the landlord if they are managing several properties.

C2B

Consumer-to-Business transactions do not offer many opportunities for 2D barcodes. One potential scenario is referral hiring.

Fast Access Contact Information

As the age of the free-agent starts to emerge and we enter an era of resource exchanges, a mechanism for quick retrieval of contact information will become an advantage.

The standard information for contact details, name, address, phone number(s) and email address can be easily encoded into a 2D barcode. Further, the data capacity of these barcodes formats also allows for a succinct resume and a truncated skill set to be included as well. This allows for a quick retrieval of pertinent information from a business card and defers the need to look up a CV from file.

Dynamic Advertisement

2D barcodes can turn the traditional static billboard advertisements into a more dynamic marketing platform. For instance, with 2D barcodes incorporated into the billboard, consumers are able to access the movie trailer with a single click on their phone, obtain the ticket price or receive promotional vouchers.

B2C

The largest opportunity for the adoption of 2D barcodes will be within the B2C segment through the distribution of tickets and promotional coupons, generically referred to as vouchers.

Vouchers

These can be earned through paying for a service or by receiving a coupon for a free item, for example a coffee from your nearest Starbucks.

Air New Zealand has already adopted the use of 2D barcodes, specifically the PDF417 format, as a key enabler of their self service check-in solution. This approach could easily be transcribed to adjunct service providers as a means of distributing tickets to customers.

By applying a different format that can be easily presented from a mobile phone screen to an appropriate barcode reader, TicketMaster could transform the purchase, distribution and admission process for venue events for example; concerts, sporting events, trade shows and cinemas.


Similarly businesses that wish to reward customers with free products or merchandise through a promotion, typically be sending coupons, could utilise 2D barcodes to revolutionise this form of marketing campaign.

A coffee franchise could adopt 2D barcodes in the following process. First, send the coupon in the form of a matrix code to a known customer as an SMS or MMS. On receiving the electronic message, the customer can then present the coupon on their mobile handset. The square, compact nature of matrix codes such as QR Code or DataMatrix, lends itself to the size and proportiions of the average mobile phone screen. This is not the case for traditional linear barcodes. The data capacity of 2D barcodes gives the franchisee greater flexibility in tailoring coupon content. It is therefore possible to achieve personalised coupons that contain coffee choice, member information and location data in a very compact and portable coupon form.

Another example: Dynamic Advertisement

Product Identification Data

2D barcodes allow for new possibilities for stock management right through the supply chain to the customer. The 2D barcode could store expiry dates, batch codes or storage requirements for perishable goods. For durable goods - details of the make, model, serial number and service tags.

This deeper level of information can also be accessed by the customer as they can now use their camera phone to access opposed to any specialised equipment.

The product data could also include dimension data (height, width, length, volume, weight) that could aid warehouse efficiency of stock handling. Combine this with a warehouse map that includes information such as current shelf weight and space data to maximise the storage capacity of a warehouse.

B2B

The original conception of 2D barcodes was a commercial application within the car manufacturing supply chain. The Denso-Wave Corporation of Japan created the QR Code format as a means of tracking individual car parts from point of manufacture through to assembly.

The value driver for this mode of operation was the density of data that allowed the compression of parts information to be stamped on to the increasing smaller car parts.

From the car parts supply chain to the B2B value chain, 2D barcodes can be applied to address efficiency and effectiveness challenges of today's business environment.

One example use is Product Identification Data.

Industries and Uses

The inherent flexibility of 2D barcodes does not limit the application to that of traditional barcodes, namely the retail industry. This section proposes target industries and potential uses of 2D barcodes.2D barcodes can be utilised in the following business transactions types: