Practicum Report 2005 Donal Foley 53128451 Thomas Goulding 99003996
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Practicum Report 2005 Donal Foley 53128451 Thomas Goulding 99003996
Practicum Report 2005 Transaction Number: 996352 Movie: Madagascar Day: Thursday Time: 19.00 Adults: 2 Children 2 Donal Foley 53128451 Thomas Goulding 99003996 Vanessa Worrell 99420848 Louise Kirke 99412195 Business Supervisor: Dr. Teresa Hogan Technical Supervisor: Dr. Cathal Gurrin 1 Table of Contents Executive Summary ...........................................................................................4 Market Size and Trends ...................................................................................5 Market Segmentation ........................................................................................7 Business Model.....................................................................................................8 Growth Strategy ...................................................................................................8 Phase One: Market Entry .................................................................................................. 9 Phase Two: Expansion and Development of Market....................................................... 9 Future................................................................................................................................. 10 Marketing and Advertising ..........................................................................10 Below The Line Marketing............................................................................................... 10 Direct Marketing............................................................................................................... 10 Future Marketing.............................................................................................................. 11 After Sale Service .............................................................................................................. 11 Risk Assessment .................................................................................................12 Revenue Model ...................................................................................................13 Value Chain..........................................................................................................14 Value Proposition..............................................................................................15 PEST ........................................................................................................................18 Political and Legal Analysis ............................................................................................. 18 Economic Analysis ............................................................................................................ 18 Social Analysis ................................................................................................................... 18 Technological Analysis ..................................................................................................... 19 Mobile Phone Technology ................................................................................................ 19 Barcode Scanning Devices................................................................................................ 19 SWOT Analysis...................................................................................................20 Strengths ............................................................................................................................ 20 Weaknesses ........................................................................................................................ 20 Opportunities..................................................................................................................... 21 Threats ............................................................................................................................... 22 M-Solutions Competitive Review ..............................................................23 Rivalry among competitive sellers ................................................................................... 23 Threat of new entrants ..................................................................................................... 23 2 Threat from substitutes .................................................................................................... 23 Power of suppliers ............................................................................................................. 23 Competing Technology ..................................................................................24 Research Methodology ...................................................................................26 Primary Research ............................................................................................................. 26 Secondary Research .......................................................................................................... 27 Feedback from Cinemas................................................................................28 Feedback from Customers ...........................................................................30 Purchase of tickets online:................................................................................................ 30 Willingness to purchase tickets online: ........................................................................... 31 Cost concerns: ................................................................................................................... 31 Perceived benefits: ............................................................................................................ 31 M-Tickets as gifts:............................................................................................................. 32 Frequency of intended use of M-Ticketing service: ....................................................... 32 Technical Report: - Overview of M-Solutions ..................................33 Internet Information Services (IIS) Web Server: .......................................................... 37 SQL Server 2000 ............................................................................................................... 39 Personalization:................................................................................................................. 40 Collaborative Filtering: .................................................................................................... 42 Security: ............................................................................................................................. 43 M-Ticket Purchases using a Mobile Phone Handset: .................................................... 49 Management Structure ..................................................................................54 Appendix ................................................................................................................56 M-Solutions Profit and Loss............................................................................................. 56 Cash Flow Year 1 .............................................................................................................. 57 Cash Flow Year 2 .............................................................................................................. 58 Cash Flow Year 3 .............................................................................................................. 59 Explanation of Costs ......................................................................................................... 60 Office Rent ......................................................................................................................... 60 Case Study .................................................................................................................... 62 Current process versus reengineered process of obtaining a mobile/paper cinema ticket. .................................................................................................................................. 63 User Manual – for M-Solutions prototype website. ....................................................... 64 Administrators’ Manual – for M-Solutions:................................................................... 83 Using Barcode Technology:.............................................................................................. 93 3 Executive Summary The objective of this practicum is to create a paperless system of issuing tickets for a business entity such as a chain of cinemas. This is achieved through the issue of MTickets. The aim is to allow customers to have their tickets electronically stored on their mobile phones rather than being issued with paper tickets. The source of the idea comes from the fact that virtually all organisations in Ireland (such as cinemas, theatres and airlines) still use paper based ticketing, This can be a frustrating experience due to issues like queuing for tickets at peak times, losing tickets as well as environmental concerns such as the amount of litter that used tickets creates. According to Nigel Drake, General Manager of The Vue, Liffey Valley, in an ideal world all tickets would be pre-booked1. M-Solutions believe there is a gap in the market for a mobile solution and that these issues can all be integrated and solved with the introduction of M-Ticketing. Essentially mobile ticketing offers a new channel of ticket distribution for cinema chains to the customer. M-Solutions proposes a convenient alternative to traditional methods of purchasing cinema tickets. The benefits of this system apply to both the cinema and the customer. It is mutually beneficial relationship. The aim of this report is to examine the potential of the market for this e-commerce solution and to develop a working prototype. This was achieved through various methods including in-depth interviews, questionnaires and research. To obtain an insight into the Irish cinema market, interviews were conducted with general managers and marketing managers of UCI, The Vue and the Ormonde. To gain an accurate representation of the target markets opinions and values, questionnaires were distributed among cinema patrons and the results analysed. The results of research carried out for this project show that M-ticketing would be a successful and welcome service if it were provided in cinemas throughout Ireland. 1 See interview in appendix 4 Market Size and Trends The cinema market is a big business. This is thanks to big blockbuster movies for example “Batman Begins” and “Star Wars”. In 2004, cinemas profited from the success of movies such as “Shrek 2” and “Harry Potter and the Prisoner of Azkaban”. Final Irish cinema admission figures for 2004 have been confirmed at 17.3m2. With ticket prices at €8.50 on average, this creates a market worth €147m. Within this market is the pre-booked sector. Again thanks to big movies, sequels and trilogies, cinemas can almost take it as a given that the first week will sell out. When the last “Lord of the Rings” movie was released in Ireland, The Vue made €150,000 in prebooked sales3. Mobile-Internet is the fastest growing technology in Europe. Currently, there are more mobile phones than PCs or fixed line phones and Ireland has one of the highest mobile phone ownership rates in the world.4 This is extremely relevant to MSolutions’ implementation of mobile ticketing. According to the same statistics, the Irish population, in general, are technology savvy. Hence, M-Solutions is statistically stable in the Irish mobile and cinema market. By 2007, it is estimated that the cinema market will reach €7.4bn in Europe alone. The market was only worth €5.7bn in 2002. Admissions in the European cinema market are expected to rise to 1bn in 2005. The rise in box office revenues is even higher than the growth rate in admissions due to a cumulative rise in ticket prices. The number of screens in Europe will rise to 31,593 by the start of 2007. Multiplex screens will play a key role in European screen growth over the next five years and there is still considerable room for growth in several European territories.5 M-Solutions will initially concentrate on the cinema market in Dublin. The number of cinemagoers in Dublin has increased from 5,709 people in 1996 to 11,356 people in 2 Pearl and Dean, cinema advertisers Nigel Drake, General Manager, The Vue (Liffey Valley) 4 Forrester Research 5 Screen Digest 3 5 2005. More information on the statistics of Dublin cinemas is available in the table below. Statistics Admissions Screens Seats Person/screen Admin/screen 1996 5709 64 15570 14886 80209 2002 8517 98 22752 15998 86908 2005 11356 121 30336 21198 115772 Figure 1 Cinema Audiences in Ireland 1999 to 20056 There are a great number of different pricing schemes, special promotions and concession structures throughout the cinema chains in Dublin. The average price for an adult’s ticket is €8.50; a child’s ticket €5.75 and a family ticket is €22.00. The majority of tickets are purchased and used during the weekend, 30% of the box office revenue is generated on a Saturday. Box Office Share per day 29 30 25 21 20 17 % 15 10 7 8 9 8 Mon Tue Wed Thur 5 0 Fri Sat Sun Weekday Figure 2 Box Office Share per day 6 Dadona Research 6 Market Segmentation This market is made up of both cinema chains and independent cinemas. The breakdown of this market is illustrated in the chart below. M-Solutions’ target market will be the major cinema chain, particularly UCI and The Vue as they have international connections. The Graph below demonstrates that they hold the largest share of cinema screens. Therefore, M-Solutions will target them because they will be incremental in the future profitability of the company. Also, in recent years there has been increased consolidation in the entertainment industry. As a direct result many independent cinemas have closed down in cities and the larger cinema chains are dominating the market. Initially M-Solutions will be based in Dublin. Market Segmentation 16% 29% 2% 7% 11% 14% 12% 6% 3% UCI VUE Screen Savoy IMC Omniplex Ormonde IFC UGC Figure 3 Market Segmentation of Cinemas in Ireland 7 Business Model The aim of M-Solutions is to implement the system into cinema chains around Dublin. M-Solutions will charge a small once off fee for the implementation of the system. This fee is necessary to cover the cost of the set up including equipment, hardware and software and is more of an investment for the cinema. It also includes staff training sessions etc. Annual maintenance is an industry-norm charge for yearly services and any add on services required will be extra. In our trial implementation, the cinema chain pays M-Solutions 3% of each M-Ticket transaction to use the service. M-Solutions will increase this to 5% for new cinemas once the service is up and running. We aim to have the system implemented in cinemas throughout Ireland and later expand into the UK/Europe. M-Solutions initially tried to avail of an MMS service provider. However, by owning its own server, it improves M-Solutions’ financial and market position in the long term. Growth Strategy The strategy for the rollout of M-Solutions involves the formation of the strategic partnership with as many major cinema chains in Dublin as possible, with two development stages – Market Entry and Expansion and Development of the Market. It is envisaged that as soon as one cinema uses the service, the others will quickly follow suit, as was the case with online booking. The Ormonde was the first cinema to introduce online booking in Ireland in 1999, soon followed by other cinemas to offer the service, which is now considered standard. The first phase allows M-Solutions to penetrate the Irish cinema market in the hope of gaining the benefits of having the early mover advantage in the mobile ticketing market. The second phase will be to increase market share in Ireland and expand into the UK and Europe. 8 Phase One: Market Entry This phase will focus on the development and implementation of M-Solutions’ technology within the three targeted cinema chains. In keeping with its tradition, MSolutions intends to launch M-Ticketing in the Ormonde. This cinema was chosen for a number of reasons: Most importantly, the Ormonde family is part owners of the new cinema, Movies @ Dundrum. This is going to be a huge suburban cinema with 10 screens and will be essential to the future growth and profitability of MSolutions. As mentioned previously, the Ormonde is very innovative in implementing new technology. It has the largest percentage of pre-bookings, around 80% for new releases. The Ormonde has expressed an interest in using M-Solutions’ service and its ability to gather information on its customers. Next, M-Solutions intends to implement its M-Ticketing service in The Vue (Liffey Valley) and the UCI chain. These cinemas have expressed interest as detailed in the interviews – see appendix. The cinema chains believe that mobile ticketing is the future solution for convenient booking and payment. Phase Two: Expansion and Development of Market Once M-Solutions is successful in its primary market, it can roll out the system to all cinemas throughout Dublin and Ireland. M-Solutions intends to expand into the UK/European cinema market. The Vue owns 49 cinemas throughout the UK. Depending on the success of M-Ticketing in its Dublin cinema, it would be possible to implement the system throughout all 49 UK chains7. 7 Nigel Drake, General Manager, The Vue, Liffey Valley 9 UCI is a global cinema chain. M-Solutions intends to enter these new markets through these sister companies. These contracts offer M-Solutions huge growth and profit potential. Our research shows that the previously mentioned cinema chains (The Vue and UCI) are interested in implementing the system, first in Ireland and then, pending successful take-up in Ireland, throughout their chains. Future The long-term goals for M-Solutions are to be the implementation of M-Ticketing in America. This will be achieved through the UCI chain. UCI (United Cinemas International) is a subsidiary of a major American cinema chain owned by Paramount and Universal Studios. Marketing and Advertising Below The Line Marketing To create maximum awareness of our M-Ticketing service, M-Solutions will start to promote the new service around December2005/January 2006. Our promotional strategy will begin with website advertisements and on posters around the cinema foyer. M-Solutions’ first implementation will be in the Ormonde this will be launched in January/February 2006. M-Solutions will place a promotional team in each cinema as the service is launched to ensure a smooth transition from traditional ticket booking to M-Ticket booking8. The promotional team will spend two days in the cinema demonstrating to customers how the service works. The aim of the promotional campaign is to educate customers who may not be technology savvy, to create awareness and to ensure that as much of the target market as possible is reached. Direct Marketing The cinema chains will also send targeted emails to all their registered customers. The cinemas’ registered customers will receive personalised emails introducing them to 8 This will not represent a major cost to M-Solutions because one of the directors already works in a promotions agency. 10 the service. There will also be creative, attractive advertisements on the cinemas’ websites. When customers visit a cinema’s website, they will see the advertisements and an information page with instructions and regulations of the service. When the customer goes to book a ticket using their credit card they will be given the option to purchase an M-Ticket or a traditional ticket. If they were not aware of M-Tickets up to this point they will now be curious as to what an M-Ticket is. M-Solutions has chosen these methods of marketing because they are the most efficient and cost-effective media to reach our target market. All of the advertising efforts directly reach the most important segment of the target market, the cinema patrons. Future Marketing It will be necessary to keep the marketing strategy up to date and continually gather new marketing information. The focus will be on the cinema market monopolizers, such as UCI9, The Vue and Movies @ Dundrum. These are the large chains that will bring in the most revenue for M-Solutions. Special offers on popcorn, drinks, sweets and ice cream will all feature as part of the marketing strategy. After Sale Service The after sale service allows M-Solutions to become a part of the cinemas’ operations. A major part of the service is M-Solutions’ quality control procedures. As technology advances, M-Solutions will be able to add to the services it provides. This will be done at a charge. Proper quality control testing will be carried out on the entire system, software and website. The aim of this is to ensure optimum satisfaction with the service for both the cinema and the customer. 9 Marketing Manager UCI 11 Risk Assessment Risks identified are: The service will not catch on due to its technical nature. Action: M-Solutions will ensure that the service is easy to use by the target market. A ‘how to use M-Ticketing’ page will be available on the website to talk new customers through the process. Promotions carried out in the cinema chain foyers educating customers about the service will create awareness, while at the same time teaching them how to use the service via demonstrations. Most importantly, word of mouth among existing users will be crucial to the success of the service. No cinema chain will want to use the system Action: Research has been conducted with the main large cinema chains in Ireland to combat this potential risk. Feedback given from interviews held with the cinema managers resulted in M-Solutions gaining an insight into the values of the cinemas and what they would like to see the service do for them. This information has allowed M-Solutions to tailor the service to these specifications. For example, initially MSolutions considered the fact that staff would be free to concentrate on other activities, a very positive selling point to the service, however, the reality is that this was not valued very highly by the cinema chains. Other advantages to M-Ticketing, such as being able to attract people to buy popcorn and drinks by offering money off was a bigger incentive to the cinema chains than the freeing up of staff. Not enough M-Tickets will be sold to sustain profitability Projected demand for M-Tickets are based on the network effect, the more people that use the service, the more successful it will be. As one person uses it to book two tickets, their friends will learn about it and be likely to use the service the next time they are booking tickets. To ensure demand for the service grows substantially, it will be necessary to ensure that the process is error free and that excellent customer 12 service is provided. This also involves testing that the cinema chains are satisfied and will not withdraw their service. Revenue Model M-Solutions will charge the cinema a small fee of 3% per transaction. Revenues will mainly be based on cinema ticket sales and redemption of lost and deleted tickets. The initial implementation charge simply covers the cost of the equipment necessary for the system such as scanners. The players in the revenue model are: Customer: The customer has two payment options. The first one is credit card via MSolutions integrated into the cinema’s website. The second one is to use their mobile phone credit. With this specific micro payment service, the customer can turn his mobile terminal into a payment device and use it to pay for items and services. Merchant: M-Solutions is providing the service. The costs included are the technologies used to develop the service for example, the purchase of an SMS/MMS server. Payment Service Provider: Visa supports the financial transactions and provides a secure service, reassuring customers that their credit card information is safe. Mobile Operator: M-Solutions will provide the network service for the distribution of barcodes. 13 Value Chain Figure 4 M-Solutions Value Chain Stage One The customer visits the cinema’s website and has two options. He can become a member by registering his details once or he can remain a non-member but will have to enter his details each time he wants to purchase an M-Ticket. Stage Two There are three options for payment. They are via credit card, mobile payments and EWallets. Credit card payment is via the cinema website and processed by the credit card companies. Other possible payment methods are mobile payments, where the cost of the ticket is deducted from the customer’s phone credit. E-Wallets are another possible method of payment where money is virtually stored on the customer’s SIM card. However, this technology is not yet available in Ireland. Stage Three There are two options available for barcode transmission. One method is through the use of facilities of networks such as O2, Vodafone, Meteor and 3 (coming soon to Ireland). The other method is the purchase of an SMS/MMS server. M-Solutions intends to take the second option and purchase an SMS/MMS server. This is more beneficial, financially in the long term. 14 Stage Four When the customer goes to the cinema, an usher will scan their mobile barcode. This will invalidate their mobile ticket. If the ticket has been invalidated i.e. if it is scanned already or by human error, it cannot be used again. However, a facility is available to allow the customer to redeem their M-Ticket if it is lost or accidentally invalidated. Value Proposition The main selling point of the M-Ticketing system to cinemas is the potential it offers to increase a their pre-booked ticket sales, drive customers into the cinema where they will purchase popcorn, drinks or sweets (a huge profit source for cinemas), provide them with a method of collecting information about their customers (through membership of the website and usability patterns), which can improve their direct marketing campaigns and ultimately resulting in more ticket sales. Other benefits include a reduction of the chain’s costs due to the massive reduction of paper needed to print tickets, printing materials and staff costs of keeping a number of ticket booths open. In addition, less cash will be held on the premises, thus reducing security concerns. For customers, M-Tickets dramatically cut the amount of time they will have to queue. They can proceed straight into the cinema once an attendant has scanned their M-Ticket. The current situation requires customers to either queue up to purchase their tickets and then queue again to present their tickets to the attendant, or to book their tickets online, collect them from a collection machine and then queue to have their tickets checked by an attendant. In cinemas such as The Vue, (Liffey Valley) this is a major issue and queues can be 15 people long at the refreshments stand. This can be quite off putting for customers. M-Ticketing will greatly reduce the amount of time customers have to wait before they can view their movie and make the experience a lot more enjoyable. Customers can arrive just before the movie starts, have their MTicket scanned and enjoy the movie, there’s no need for attendants to physically check the date and time on the ticket. The system will check this automatically, in an 15 instant. Extra features such as the ability to pre-pay for refreshments and have them almost ready to pick up at a separate station or ‘speed lane’10 can be built in the service. The Ormonde expressed particular interest in this feature. Other benefits include: The cinema’s paper and printing costs are reduced. These savings could possibly be passed onto the consumer. A user can void his M-Tickets if his phone is stolen or lost. He simply enters the barcode and transaction numbers of the M-Tickets affected and the system reissues them to his new mobile phone number. The reissued M-Tickets are assigned new barcode numbers. The barcode numbers of the original MTickets are invalidated. There is a facility for users to have their M-Tickets resent to their mobile phones if they accidentally delete the tickets. Again, this is done through the website using the barcode and transaction numbers of the M-Tickets affected. Registered users also have the option of having their M-Tickets reissued using their mobile phone handsets. Users can transfer an M-Ticket to another phone (for example as a gift to another person – via texting the M-Ticket). It does not matter if the ticket is on a number of phones as once it is used it is immediately invalidated. Offers can be sent out to users on an opt-in basis for movie promotions or cheaper M-Tickets during quiet times. Through the use of collaborative filtering, the system can recommend up and coming movies based on the user’s and other users with similar profiles’ choices. There are potential long-term benefits to the environment because less paper will be used as people become used to booking M-Tickets. Registered customers to the cinema chain could receive special offers. Regular users have the facility to register their details on the website though this is not necessary to use the service. The benefits are that the cinema gains information about its target market that can be used to build customer profiles and build marketing promotions. 10 Nigel Drake, General Manager, The Vue, Liffey Valley 16 The customer will benefit from fewer queues. Value Proposition: To the cinema, M-Solutions offers a convenient, easy to use method of distributing tickets to customers. Cinemas get up to date and accurate information about their customer base through the membership pages on the website. This information can be used for highly targeted, direct marketing. This should result in increased ticket sales. For customers, M-Ticketing offers them the convenience to be able to book cinema tickets from home and have them delivered instantly. Our research conducted in the Ormonde cinema showed that a popular new release would be fully booked for its first week of showing for up to a week beforehand. With popular movies such as “Batman Begins”, this can even stretch to two weeks.11 These customers would then come in to the cinema around two day before the showing to collect their tickets. M-Ticketing will save them this extra trip, give them peace of mind, reduce the amount of time they have to queue before they can view their movie and makes the experience more enjoyable overall. Customers can arrive just before the movie starts, have their ticket scanned and enjoy the movie. 11 Elaine Grange, General Manager, The Ormonde, Stillorgan 17 PEST Political and Legal Analysis Mobile Spamming is illegal in Ireland12. Sending direct mail to customers requires direct consent. Therefore it is necessary to have an ‘opt in’ option on the cinema website using M-Solutions’ software. Economic Analysis In the second half of 2004, total revenues for fixed, mobile and broadcasting markets in Ireland amounted to an estimated €4 billion per annum, representing an increase of approximately 5.8%13. M-commerce is appealing because wireless Internet offers customer-location information, personalized consumer interaction and constant connection to the Internet. But the m-commerce marketplace requires new business models for wireless Internet. Social Analysis February 2005’s text-messaging figure reached a total of 2.19 billion messages, according to figures released by the Mobile Data Association (MDA). 9 million text messages were sent per day in Ireland in 2004. Mobile phone usage in Ireland is the largest in Europe per head of population. There are 3.4 million mobile phones in Ireland and the average user sends 82 text messages per month. According to Merrill Lynch, m-commerce revenue will top $45 million by 2005. Other analysts predict worldwide transactions to generate more than $100 billion in revenues by 2005.14 12 EU Directive 2002/58/EC Wireless World Forum 14 Mobile Data Association 13 18 Technological Analysis Mobile ticketing is going to be one of the hot new concepts of 200515. The demand for mobile digital communications devices is outstripping computer sales. Mobile Phone Technology There are 1.5 billion mobile telecom users today — a quarter of the world's population. A further 3.5 billion people live within the coverage area of a mobile cellular network. European mobile operator executives will try to carefully manage the risks of commercializing their brand-new 3G technologies; deal with a growing number of competitors; strive for more loyal customer base; try to capitalize on fixedmobile convergence; and aim to unleash corporate mobile data take-up. Behind all this lies their need to protect market share and margins, and secure further growth.16 Barcode Scanning Devices Barcode scanners are becoming more popular due to their convenience and ease of use. Ireland is one of the first adopters of barcode scanning technology on mobiles, with the introduction of M-Ticketing through Aircoach and m-coupons with Puca17. Ireland has good suitability because of the fact that we use GSM/SMS enabled mobiles. 15 www.enn.ie www.comreg.com 17 www.aircoach.ie 16 19 SWOT Analysis A SWOT analysis provides a good overview of whether a firm’s position is healthy or unhealthy. Strengths M-Solutions’ product allows a cinema to deliver a high level of customer service in an efficient and cost effective manner. Implementation of mobile ticketing will result in both process and transaction efficiency gains in the cinema. M-Solutions has designed and developed the mobile application in consultation with cinema professionals. Therefore, it facilitates all major activities carried out by cinema management. No other company has produced a similar product for the Irish market. Therefore, M-Solutions hopes to secure a solid foothold in the market quickly by relying on first mover advantage. Mobile ticketing facilitates cross-departmental sharing of customer information and eliminates the duplication of tasks and information to be recorded. M-Solutions’ other strengths are strong e-commerce expertise, technological knowhow, excellent customer service and a strong management team. M-Solutions has experienced and talented employees in key areas and advanced know-how in customers’ desires due to extensive research that was carried out. Weaknesses As M-Solutions is a start up company a possible weaknesses could be a weak balance sheet. M-Solutions could take a couple of years to become a profitable venture. It may require a large funding to get it off the ground. This could result in some debt. Other weaknesses would be the general barriers to e-commerce that exist. 20 Figure 5 Barriers to E-Commerce Opportunities M-Solutions offers a new improved solution to traditional ticketing systems. This presents the opportunity to grow rapidly and potentially expand into new markets, such as the UK. Credit cards are increasingly being used for payment via the Internet and mobile phones18. More specifically, people are using their credit cards for purchasing entertainment tickets. This is demonstrated in the graph below. 18 Central Statistics Office 21 Figure 6 Credit Card use in Ireland for Ticketing Events Threats There is always the threat of competition from new start-up companies or existing ticketing companies wishing to pursue e-commerce strategies. To counteract this threat, we intend to lock in customers through add on services and maintenance requirements and to build strong collaborative relationships between M-Solutions and its partners. 22 M-Solutions Competitive Review Rivalry among competitive sellers Competitive rivalry in the M-Ticketing market is not yet particularly strong as it is a new technology. There are few rivals19 in the M-Ticketing market and none in the MTicketing cinema market. However, there is always the possibility of new entrants. Threat of new entrants There is a high threat of new entrants as mobile technology is becoming increasingly popular. Numerous technology companies that have easy access to the relevant technology have lower entry barriers. They already have access to the investment and resources required to enter the market. However, as M-Solutions is the first to offer the service for the entertainment industry in Ireland, building relationships and locking customers in can create barriers. Relationship building will be an important element of the directors’ positions. Threat from substitutes Substitutes for M-Solutions’ mobile ticketing are traditional paper based ticketing and online booking. While these substitutes provide a similar service for the same price they do not offer the customer as much convenience as they still need to queue to collect or print their tickets before entering the cinema. Power of suppliers Network providers are essential in the provision of M-Ticketing services; therefore, they have a lot of bargaining power. It will be to their benefit to enhance M-Solutions’ competitiveness because the more successful M-Solutions is, the more they will profit. This will be an incentive for suppliers to work with M-Solutions as partners in providing this service. However, M-Solutions intends to use a private SMS/MMS server, thus reducing the power suppliers will have. 19 Textus based in Invent, DCU 23 Power of buyers The power of the cinema chains is high as they are the customers who must take the risk of implementing this system. However, at the moment M-Solutions is the only provider of this service and once implemented, high switching costs will create buyer lock-in. It will be costly for them to change to another provider. Competing Technology Textus, a Dublin mobile software firm, has introduced SMS barcodes that can be used in point-of-sale transactions. The M-Scan device communicates with the Textus server via GPRS, and then issues a physical ticket from an internal thermal printer and the mobile phone user presents it as a ticket, or as a promotional offer. The technology is currently being piloted by Miller Beer in Ireland and is being used actively by another brewer, Stella Artois, in Northern Ireland. Workers in the field are the target market for the Mobile Employee project, an initiative of Digital North Denmark.20 Cambridge Consultants has demonstrated a wireless tagging technology based on new-generation 'ultra-wide band' communications, providing a step-change in capability compared with today's paperless transport ticketing. Offering a very large sensing zone - with the option of 3D-positional information on tags - the technology has the potential to give commuters an invisible license to travel. It could be used to eliminate barriers in railway systems and allow revenue-checking staff to target only ticket-less passengers.21 Airline leaders have committed to implement e-ticketing by 2007 to simplify airline business processes. The International Air Transport Association (IATA), which distributes 300 million paper tickets each year, said that paperless ticketing would save the industry up to $3 billion in direct costs. In July 2005, delegates at the IATA annual general meeting and World Air Transport Summit in Singapore approved the use of self-service kiosks in check-in areas. To reduce queues at airports and airline 20 21 Textus – Google search Cambridge Consultants – Google search 24 check-in costs, the industry group is also to push for boarding passes with bar codes that can be self-printed.22 Gavitec's technology enables barcode scanning with camera-equipped mobile phones. Codes can be printed in newspapers and magazines, on posters or on the product itself. The Lavasphere platform-independent code needs no additional scanner hardware to turn camera-enabled devices into universal code readers. It is easy to integrate into current and future camera-enabled mobile phones – regardless of the operating system used. The system allows camera phones to read Data Matrix and a variety of other two-dimensional printed codes, as well as traditional one-dimensional barcodes. The company also develops and distributes hardware units that make it possible to read codes presented on the display of a mobile phone. Possible uses include e-ticking applications and electronic vouchers.23 Semacode is a free mobile barcode-scanning system created by Simon Woodside, a programmer from Canada. The system encodes standard URLs as two-dimensional Data Matrix codes. An application on the user's phone converts the Data Matrix code back into a URL and passes the information to the phone's browser.24 RegiSoft has been developing ticket sales on mobile devices, and now the first such wireless transaction system is up and running in Singapore. RegiSoft has announced the successful completion of the first show offering ticket sales using mobile devices.25 22 Airline leaders – google search www.gavitech.com 24 www.semacode.com 25 www.regisoft.com 23 25 Research Methodology To gain an understanding of the mobile ticketing market, research was conducted into the value chains of traditional ticketing and mobile marketing. During the course of this project, both primary and secondary methods were used to investigate the potential of M-Solutions as a mobile ticketing solution. M-Solutions conducted in-depth research in Ireland and has sourced information from America, Europe, Asia and other countries. The following areas have been focused on: All current processes within cinemas. The use of mobile technology in the entertainment sector. The capabilities and limitations of existing technology. Exploring the opportunities of future solutions. Cinema customer demographics obtained using questionnaires. Comprehensive analysis into the structure of cinemas in Ireland. Trends in spending on mobiles in Ireland. Detailed financial study into costs. Direct and indirect competitors. The questionnaire and survey provided useful information concerning cinema customers’ interests and thoughts on mobile ticketing. Primary Research Our primary research consisted of questionnaires, interviews, surveys and emails. The purpose of the customer questionnaire was to discover the attitudes of potential customers that would use mobile ticketing. To complete our primary research, we carried out a cinema chain questionnaire and interviews with major cinemas in Dublin. This gave us an understanding of how well our solution would be accepted in the market place as well as its perceived strengths and weaknesses. The questioning sequence was designed to invite the respondents to focus on general aspects of the 26 cinema environment. The questions then concentrated on the specific use of mobile and general technology in conjunction with their everyday work. This approach ensured that the interviewees became relaxed and familiar with the content of the questionnaire. It was decided that the composition of the questionnaires should consist of both open and closed-ended questioning. Closed-ended questions were included in the questionnaire to measure different aspects of each topic. It was felt that these questions were an appropriate tool to gain an answer to the specific questions. Some open-ended questions were included at the end of the questionnaire to allow people to use their own words to tell us what they thought about the issue of using mobile phone technology in their professional environment as well as any other opinions about mobile ticketing. Secondary Research Using books, articles and web sites, listed in the bibliography, extensive secondary research was carried out. All business aspects of mobile couponing were fully researched using secondary material; many of the articles providing supporting evidence for this document are quoted. The technical aspects of the project, including the M-Solutions demo, were researched and developed using the assistance of web sites and online forums. 27 Feedback from Cinemas We interviewed four cinema chains, The Ormonde (Stillorgan), The Vue (Liffey Valley), UCI (Tallaght) and The Odessey (Belfast). They filled out a survey, see appendix. The results are as follows: 75% of the cinemas thought the service would be very beneficial, 25% thought it would be the same as normal on-line booking. UCI said it would depend on cost and whether it would increase sales. At the moment 75% of the cinemas rely on their websites for customer information and through newsletters and “cinemail” (an on-line customer survey). The Ormonde estimated that each ticket cost .03c. The Vue and The Odessey estimated that each ticket cost .007c, the cost of which they try to offset with advertising on the back of the ticket. The Vue and The Odessey thought that both the cinema and the customer would benefit, while the Ormonde thought that the customer would benefit most and UCI thought the cinema would receive the most benefit because of the advantages of advanced bookings. Managers were asked to assign each benefit of the service a grade of importance with 1 being the most important and 5 being the least important. The results are as follows: On average, customer convenience was rated most important, increased sales and lower cost were rated second most important, being seen as technology savvy rated third most important, other tasks such as allowing employees to concentrate on other value added tasks was considered the least important by most cinemas. 28 Lower Costs 5 5 5 1 More free staff 4 4 4 4 Increased Sales 2 1 2 2 Technology Savvy 3 3 3 5 Customer Convenience 1 2 1 3 Figure 7 Cinema Managers' grading of the importance of the benefits of using M-Ticketing Other benefits that the cinemas mentioned were: The advantages of having customers book in advance. Further customer data. Ability to track customer interaction with the system. More visitors. When asked if they were interested in implementing the system, they all said yes (depending on obvious practicalities). Other features they would like to see added were: The addition of some kind of control mechanism regarding under age customers gaining access to age rated films. There may always be a need for human controls i.e. ushers. At the moment UCI have no paper trail of sales so they would like to see this feature added. The ability to pre-book food and drinks so that the customer can just come up to the counter and collect them. Problems that the cinemas envisaged from use of the service were as follows; Integration problems Kids using parents credit card to gain access to overage films Communicating the service to customers. 29 Feedback from Customers The customer survey also provided feedback that was utilised in planning the marketing strategy. It provided useful customer demographics, cinema and mobile phone statistics. Mobile Phone Ownership Yes = 100% No = 0% Credit Card Access Yes = 90% No = 10% Internet Access Internet = 90% WAP = 10% Figure 8 Breakdown of Mobile Phone, Credit Card and Internet Ownership Purchase of tickets online: 60% do not buy cinema tickets on-line. The following reasons were given for this: Don’t trust it. Prefer to pay bills in cash. Can’t use a computer. Haven’t always decided what to go and see. Not Internet and computer savvy. Prefer to use the telephone. 30 Willingness to purchase tickets online: 80% would purchase an M-Ticket if the facility were available. 10% said maybe and 10% said they would not. The reason being as follows: Maybe, depending on how safe it was. Don’t want to use their credit card on-line. Cost concerns: 90% of customers would be more inclined to use M-Ticketing if it resulted in lower priced tickets. Perceived benefits: Customers were asked to assign each benefit of the service a grade of importance with 1 being the most important and 5 being the least important. As the table shows, value for money was the customers’ top priority and environmental awareness was of least importance. 5 4.5 4 3.5 Convenience 3 Environmental Awareness 2.5 Value for money 2 Keeping up with technology 1.5 Less queuing 1 0.5 0 1 2 3 4 5 6 7 8 9 10 Figure 9 Customers' Top Priorities for using M-Ticketing 31 M-Tickets as gifts: 80% think the facility to send an M-Ticket to another person’s phone as a gift is a great idea. 20% said they would not use it. Frequency of intended use of M-Ticketing service: When asked how often they would use the service, 40% said they would use MTicketing every time they went to the cinema, 40% would use it sometimes and 20% said they would not use it very often. The reasons given for this were as follows: Don’t plan what film to see in advance. Because I am not always very organised. Can’t use Internet. Prefer to pay in cash. Prefer to pay in cash to avoid extra bills. 32 Technical Report: - Overview of M-Solutions At home Web Browser IIS Web Server SQL Server User can: Browse Movies, Book an M-Ticket, Become a Registered User User purchases MPurchase M-Tickets, Ticket View his/her purchases, View his/her current membership details, Change his/her M-Ticket details, Retrieve a lost M-Ticket. User’s email account Database contains: Movie information, Information on Users (Passwords are hashed), Information of MTicket purchases. User’s Mobile Phone \\\\\\ \\\\\\ Web Browser Barcode Number and Transaction Number of MTicket are sent to user, along with details of his/her MTicket purchase. At Cinema Scanner 1: User scans M-Ticket, 2: User enters his M-Ticket Transaction Number on keypad (this is printed underneath the barcode), 3: M-Ticket is immediately invalidated. Figure 10 Overview of M-Solutions 33 Home Login Page View this week’s movies Book an MTicket Become a registered user Retrieve lost M-Ticket Are you a Member? Yes Book a Movie Are you a Member? No Yes No Become a Member Login Page M-Ticket Booking Form (NonMembers) Login Page M-Ticket retrieval page (Non-Members) Successful Login? Yes No Registered User’s Personal Page Make an MTicket Booking (Members) M-Ticket Booking Form (Members) View Member’s Current Bookings Retrieve Member’s Lost MTicket User enters Lost MTicket Barcode and Transaction Numbers Change Member’s Membership Details View Member’s Personal Details User Enters New Details Change Member’s MTicket Details User Enters Barcode and Transaction Numbers of M-Ticket to Change Figure 11 Map of M-Solutions Website for cinema customers 34 Administrators’ Page M-Ticket Validation Admin. scans MTicket Barcode and asks user to enter MTicket Transaction Number Get Info. on M-Ticket Bookings Admin. selects a Movie and/or Day and/or Time and/or Gender and gets info. On M-Ticket bookings made Get Info. on Registered Users Admin. enters a User Name to get that user’s profile or can select ALL users’ profiles Revalidate an Invalid MTicket If M-Ticket is scanned in error, admin. can revalidate that M-Ticket by scanning it and entering M-Ticket’s Transaction Number View Staff Log/Add new Staff Member Admin. can view a log of Staff Members’ activities or add a new Staff Member to Staff database Ger a User Profile View Users Targeted Admin. enters a User’s User Name and can view all MTickets purchased by that Member Returns a list of Users chosen by system to target with Special Offers Figure 12 Map of M-Solutions Website with Administrators' Options Staff Page M-Ticket Validation Staff Member Scans M-Ticket Barcode and asks user to enter MTicket Transaction Number Figure 13 Map M-Solutions Website with Staff Members' Options 35 Figure 14 M-Solutions Home page (when used with UCI Cinemas Website) At M-Solutions, we have chosen to implement our system using Visual C#.NET, ASP.NET, Internet Information Services (IIS) Web server and Microsoft SQL server 2000. • The .NET Framework addresses the issues of incompatibilities between programming languages and unrelated technologies. As M-Solutions will be installing its M-Ticketing software for a number of different cinema chains, it is essential that it is compatible with the various legacy systems that they currently implement. Based on our interviews with various cinema chains, they would not be in a position to change their current systems. Using the .NET Framework means that they will not be required to change their systems, they can simply use M-Solutions’ software as an add-on to their current systems. At M-Solutions, we believe this to be a major selling point for our system. The .NET Framework therefore provides a method of using the Internet to solve the issues of incompatibilities between systems by using standards such as XML Web Services. • The .NET Framework brings the concept of Object Oriented programming to the Web. It provides a common Application Programming Interface (API) for all languages. The choice of language used can be changed as the project proceeds, but the final outcome will be the same. 36 • The .NET Framework makes use of Web Services such as XML to exchange data, for example, to authorise credit card purchases, using standards such as HTTP and Simple Object Application Protocol (SOAP) to allow applications to interoperate. It simplifies the process of writing Web Services. • ASP.NET is the next generation of the Active Server Pages (ASP) server side scripting languages and is fundamental to the .NET Framework. • All code written using the .NET Framework is reduced to the Common Intermediate Language (CIL), the language used does not affect the application’s design and operation. The language chosen is simply a syntactic device for producing a CIL. All applications use the same API – the .NET Framework Class Library. A class can be written in one language (for example, C#) and then derived into a different language (for example, Visual Basic). CIL compilers can support many languages such as Perl or JScript, each producing the same result as if it were written using C# or Visual Basic. Internet Information Services (IIS) Web Server: At M-Solutions, we have decided to implement our Website using the IIS Web Server 6.0. The main reasons for this are: 1. Reliability – IIS 6.0 is a powerful Web server, which provides a highly reliable Web application infrastructure. It provides a high-performance platform for applications built using ASP.NET and the .NET Framework. IIS 6.0 ensures that one application’s problems do not cause other applications or the server itself to fail. Administrators can spend less time managing these applications. It provides a fault tolerant architecture. Applications can be isolated, but everything else remains running. The server automatically disables applications that fail too often within a short period of time. 37 2. Easier Server Management – IIS 6.0 provides a set of management tools designed to reduce the amount of time it takes to manage Web server infrastructure. It also features an XML configuration file that can be modified without having to stop the server. Many applications can be hosted on a single server, thus reducing hardware costs and site management costs. 3. Faster Application Development – IIS 6.0, the .NET Framework and ASP.NET allow developers to develop applications rapidly, using a wide choice of languages (for example, C# or Visual Basic) and reliable hosting performance. 4. Increased Security – Authentication and authorization procedures have been improved in IIS 6.0. Administrators can now grant or deny authorization to particular computers and users. IIS 6.0 also takes advantage of the Secure Sockets Layer (SSL) suite of protocols. Automatic security patch management and a variety of authentication schemas reinforce security. 5. XML Web Services – IIS 6.0 provides a high performance platform for XML Web Services. This feature is extremely important if MSolutions is to integrate with cinemas’ existing systems. A survey of the 2005 Fortune Top 1,000 Websites reports that ASP.NET and IIS Web Server serve the majority of leading U.S. corporate Websites26. IIS is used by 53.7% of these companies, Apache by 22.7%, Netscape Enterprise by 10.8% and the remaining 12.8% use other Web servers. 43.6% of these companies use ASP.NET, whereas 12.2% use J2EE, JSP or Tomcat. 26 www.port80Software.com 38 60 50 IIS 40 Apache 30 Netscape Enterprise 20 Others 10 0 Web Server Used Figure 15 Servers used by the Fortune Top 1,000 US companies SQL Server 2000 At M-Solutions, we have chosen to implement SQL Server 2000 Developer Edition as our database of choice. 1. SQL Server 2000 Developer Edition is designed to allow developers to build any type of application on top of a SQL Server. It runs on a variety of platforms and can be easily upgraded to the larger Enterprise Edition as M-Solutions grows as a business. 2. SQL Server 2000 provides a data management platform that organisations such as M-Solutions require in a fast changing environment. 3. SQL Server 2000 is a full database system, which provides core support for XML Web Services. 4. SQL Server 2000 provides users with critical, timely business information, which is tailored to their specific information needs. 5. SQL Server 2000 provides data mining capabilities, which allow users to make predictions about future business trends. 39 M-Solutions provides many useful services for both cinemas using the service (profiles can be built on users purchasing M-Tickets) and customers (convenience). Personalization: When a registered user logs onto the website, a session cookie is created and stored on the user’s hard drive. The user can return to the home page and his user name is extracted from the cookie. If the user closes the Web browser, the cookie is destroyed. The server will also destroy the cookie after a certain date expires. ASP.NET uses sessions to enable Web applications to store each user’s state. If the site receives no request from a registered user within 20 minutes of logging in to his personal page, the server discards the session. Facilities available to registered users Figure 16 A registered user's personal page 40 M-Solutions allows registered users to: 1. Make an M-Ticket booking – It is no longer necessary to enter information such as email address, mobile phone number, age group, gender etc. each time an M-Ticket is booked. The user simply enters the number of M-Tickets he wants to purchase and his credit card details. The system automatically links up the M-Ticket sale with the user’s personal information on the database. This provides registered users with additional convenience and encourages customers to register their details on the M-Solutions Website. The benefit for cinemas using M-Solutions is that they can build up a detailed profile of each of their registered customers and tailor offers of interest to them. 2. View current bookings – Each registered member has the facility to view their bookings made. 3. Retrieve a Lost M-Ticket – If a registered member accidentally deletes the text message containing his M-Ticket, he can simply revisit his personal page, enter the Barcode number and Transaction number of the lost M-Ticket and it will be re-sent to the user’s registered mobile phone. He can retrieve the Barcode and Transaction numbers from his personal page or from the automated email sent to him when he originally booked the M-Ticket. This facility will cost the user 80c to cover the cost of reissuing the M-Ticket and to discourage users from carelessly deleting their M-Tickets. A registered user can also retrieve his lost M-Ticket using his mobile phone handset. 4. Change Membership Details – At any time, a user can change the personal information stored about him, for example if he purchases a new mobile phone and wants to replace his old registered number with his new number or if he no longer wants to receive email newsletters from M-Solutions. The only detail that cannot be changed is the user’s user name. 5. View Membership Details – At any time, a user can view the personal information stored about him by M-Solutions. 41 6. Change M-Ticket Booking – A registered user can change the details of his M-Ticket booking up to 1 hour before the start of performance. He simply enters the Barcode and Transaction numbers of the M-Ticket concerned and can then add extra users to the M-Ticket. He is then prompted for his credit card details to pay the additional charge. Also, if his mobile phone containing his M-Ticket is lost or stolen, he can change his registered mobile number on his personal page and then proceed to have the M-Ticket on the lost or stolen phone cancelled and reissued (with a new Barcode and Transaction number) to the new phone. The system will no longer recognise the original M-Ticket. Collaborative Filtering: Movies suggested for a particular user based on his past purchases and similar users' purchases Special offer for registered users purchasing > 4 MTickets in August Figure 17 Collaborative Filtering applied to a registered user 42 Security: M-Solutions takes the issue of security very seriously and has designed its Website with security in mind. M-Solutions requires users to provide some personal information in order to allow cinemas using M-Solutions’ software to build up profiles on their customers. Data Protection legislation requires that information stored on computers is stored securely so that it doesn’t fall into the wrong hands. The following are some of the security policies implemented by M-Solutions. • Certain pages (for example, pages containing users’ personal information) can only be accessed by people with administrative privileges to the system, for example, the cinema manager. • The Web server identifies registered users using a mechanism known as authentication. Once a user is authenticated, by supplying a valid user name and password, he is authorised to view certain pages. The server denies access to any unauthorised person trying to access users’ individual pages. • The IIS Web Server accepts connections from remote clients and responds to HTTP requests through those connections. A remote client cannot access files from a subdirectory that he doesn’t have access rights to. • When a remote client requests access to certain files, the Access Control List checks which resources are being targeted by the user. If the user does not have authorization to read the file, the server denies him access. IIS also allows certain domain names to be denied access to the system if required. • IIS supports the Secure Sockets Layer (SSL) family of protocols, thus preventing eavesdropping on conversations between Web servers and remote clients. 43 • Registered users are required to enter a valid user name and password to gain access to their personal pages and perform such functions as booking MTickets using their user names or change their M-Ticketing information or personal information. The browser transmits the user name and a hashed version of the password to the Web server. IIS ASP.NET Web Application HTTP Request ASPNET_isa pi.dll ASPNET_ wp.exe Figure 18 IIS forwarding to ASP.NET a user's access token before granting or denying access to that user27 • M-Solutions uses IIS version 6.0 as its Web server due to the fact that it provides a much more robust security model than its previous versions. When ASPNET_isapi.dll forwards a HTTP request to ASPNET_wp.exe, it also forwards an access token, obtained from IIS. ASPNET_wp.exe then performs security checks on the access token before granting a user access to personal pages. ASP.NET performs an Access Control List check, using the access token presented to it from IIS. If the Access Control List is set up to deny a particular user access to the system, he or she will be denied access. This is known as Forms Authentication and it relies on the credentials entered at login as the basis for authorising users. • Using Forms Authentication, when a user successfully logs in, ASP.NET issues him with an authentication ticket in the form of a cookie. The user is 27 Diagram reprinted from ‘Programming Microsoft. NET’ 44 then redirected to his personal page. The authentication ticket allows that user to visit and re-visit protected elements of the website, without having to keep re-entering his user name and password. The lifetime of the authentication ticket is decided by the website administrators. M-Solutions has limited the lifetime of the authentication cookie to 30 minutes, using a timeout attribute. When a person attempts to view a file in a protected directory, ASP.NET checks to see if the authentication cookie attached to the request is valid. If it is valid, ASP.NET decrypts it and validates it to ensure that it has not been tampered with. The user is then redirected to his personal pages. If the authentication cookie is invalid, the user is redirected back to the login page. Only registered users can access files in the protected directory. All attempts made to access the directory other than with a registered user name and password will be denied and the user redirected to the M-Solutions homepage. Once a registered user signs out of his personal page, a cookie is created with an expiry date set to a date in the past, thus destroying the authorization cookie created. The user will have to log in again if he revisits the site. Figure 19 An invalid login after the access token supplied by the user was invalid • All authentication cookies are both encrypted and hashed. The hash value is appended to the original authentication cookie. This allows ASP.NET to verify that the authentication cookie has not been tampered with. It does this by rehashing the authentication cookie and comparing it to the hash sent with the cookie. Both cookie and hash value appended are encrypted to ensure that an authentication cookie cannot be read if it is intercepted. 45 The timeouts attached to authentication cookies help prevent replay attacks. These timeouts work because M-Solutions uses session cookies rather than persistent cookies. • M-Solutions performs validation controls at both the client side and server side. If a page contains invalid inputs, for example if a user enters 17 digits as her credit card number or enters letters instead of numbers or leaves the field blank, the information will not be posted back to the server. Instead, the user will be prompted to enter the information required. Once the user has entered the correct information, it is sent to the server and checked again on the server side before being stored in the database. ASP.NET allows the use of required field validators, range validators and regular expression validators to check user inputs on the client side. All validation errors are presented to the user as a pop-up window containing a summary of the user’s errors. Figure 20 Validation checks performed on the client side 46 Transaction Number: 996352 Movie: Madagascar Day: Thursday Time: 19.00 Adults: 2 Children 2 Figure 21 An M-Ticket • All user passwords are hashed before being stored in the Members’ table in the database. This ensures that nobody viewing the Members’ table can access a user’s password. When a user enters his user name and password, the password entered is hashed. All user passwords are hashed before being stored in the database Figure 22 The Members' database. All Members' passwords are stored in a hashed format • If the hashed password entered by the user matches the hashed password stored in the database, then the user is granted access to his or her personal page, otherwise, he or she is denied access. • Users’ credit card information is not accessible to M-Solutions or any of the cinemas using M-Solutions’ software. All such information proceeds via a payment gateway to the Credit Card Authorization Centre. 47 • Extra security measures implemented by M-Solutions are: 1. When using an M-Ticket, the user must also enter a unique Transaction Number which is sent with the M-Ticket when it is originally booked. This prevents people from making up a random barcode and trying to use it at a cinema. 2. M-Tickets can only be validated at the cinema within 1 hour of the start of performance. It is computationally infeasible for an attacker to successfully generate a valid M-Ticket with a valid corresponding Transaction number and use it at the correct movie, within 1 hour of the movie starting. 3. M-Tickets can only be reissued to a user’s registered mobile number or the mobile number used to book the M-Ticket (if the user is not a registered member). 4. Users who lose their mobile phones and purchase a new one can update their membership details with the new mobile phone number. The user can then have his or her M-Ticket reissued to the new phone. This will cost the user 80c per M-Ticket reissued. 5. M-Solutions plans to implement a 2D barcoding system. This offers customers extra security as much larger numbers can be converted into barcodes, thus making it impossible to forge a valid M-Ticket. 48 M-Ticket Purchases using a Mobile Phone Handset: At M-Solutions, we have provided a number of facilities that registered users can access on their mobile phone handsets. Figure 23 Booking an M-Ticket from a Mobile Phone Handset Registered users are also provided with the facility to retrieve a lost M-Ticket directly from their mobile phone handsets. It is not necessary for them to retrieve their MTicket Barcode or Transaction numbers from the M-Solutions website. The user simply enters his or her user name and password, chooses to retrieve an M-Ticket and is presented with a list of M-Tickets currently booked. The user then chooses the M- 49 Ticket he wishes to retrieve, is asked to confirm his choice and reminded that he will be charged 80c per M-Ticket retrieved. The M-Ticket is then resent to the user’s registered mobile phone. Non-registered users can only retrieve a lost M-Ticket on the website, not from a mobile phone handset. Figure 24 Retrieving a lost M-Ticket from a Mobile Phone Handset Registered users are offered the facility to alter the number of people booked on their M-Tickets. For example, if a user has booked an M-Ticket containing 2 adults and 2 children and wishes to add 1 more adult and 2 more children to the same M-Ticket, he simply visits his personal page, chooses the ‘Change my M-Ticket Details’ link, enters the extra adults and children and confirms that he agrees to be charged the extra people to his credit card. There is no extra charge for this service as it is not necessary to reissue the M-Ticket. If a registered user’s mobile phone containing an M-Ticket is lost or stolen, the user can have the M-Ticket cancelled and reissued to his new mobile phone number. The reissued M-Ticket has a different barcode; the original M-Ticket’s barcode is null and void and so cannot be used by anyone else. 50 User enters Barcode and Transaction numbers of MTicket he wants to change User enters the extra Adult and Children’s seats he wants to add to his M-Ticket Updated MTicket details Figure 25 Adding extra people to a user's M-Ticket booking 51 User registers his NEW mobile phone number User enters details of M-Ticket he wants reissued 52 M-Ticket is reissued to user’s new registered mobile phone number New Barcode and Transaction number of reissued MTicket. Figure 26 Changing the details of a booked M-Ticket 53 Management Structure Figure 27 M-Solutions Management Structure Chief Executive Officer and Chief Financial Officer – CEO and CFO Vanessa has been selected as the CEO and CFO. Her duties include: • The selection and control of budgets. • Controlling the development, implementation, and monitoring of the company-wide financial and management systems. • Reviewing the financial and business activities. • Providing accurate reports of past and present financial spending activities. • Projecting future spending and revenue levels. • Serve as principal advisor to the rest of management in matters relating to financial and resources management. 54 Chief Operations Officer - COO As COO Donal’s duties are: • Directing resource and project management. • Acting as Chief Information Officer (CIO). • Supervising communication between all management positions. • Ensuring information flows smoothly within the company. • Identifying technical issues. • Supervising administrative, managerial, professional and technical recruiting (in consultation with other management members). Chief Technical Officer – CTO Tom will act as the companies CTO. His job involves: • Researching potential technologies that could be used by M-solutions. • Investigating potential solutions to business issues every quarter. • Staying up to date with potential innovations. • Analysing the data provided via the customer databases. • Liaising with the COO. Director of Marketing and Sales Louise is the Head of the Marketing and Sales Department. Her responsibilities include: • Creating the company’s corporate awareness • Building a brand name for the product “M-Solutions”. • Identifying potential customers that can adopt and market the platform successfully. • Acting as Sales Representative in Ireland. • Meeting with clients presenting M-Solutions’ technology and discussing the sales process. 55 Appendix M-Solutions Profit and Loss Profit and Loss, M-solutions Year 1 Sales Less cost of Sales Gross Profit Vat @ 21% Net Profit Profit and Loss, M-solutions Year 2 Sales Less cost of Sales Gross Profit Vat @ 21% Net Profit Profit and Loss, M-solutions Year 3 Sales Less cost of Sales Gross Profit Vat @ 21% Net Profit 41989.00 169220.00 -127231.00 26737 -153968 177672.00 -130120.00 47552.00 9985 37567.00 150432.00 -130920.00 19512.00 4097 15415.00 15415.00 56 Cash Flow Year 1 Opening Balance Direct Costs Staff Costs Legal Fees Promotion Equipment Expenses Insurance Phone Bills Office Rent January February March April May 60000.00 33973.00 24046.00 14119.00 4192.00 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00 1000.00 4100.00 100.00 160.00 1000.00 Total Debts June -5735.00 100.00 160.00 100.00 160.00 100.00 160.00 100.00 160.00 100.00 160.00 -26360.00 -10260.00 -10260.00 -10260.00 -10260.00 -20260.00 Sales The Ormonde, Sales UCI, Sales Dundrum, Sales The Vue, Sales Total Sales Account Balance 333.00 333.00 333.00 333.00 333.00 333.00 1768.00 333.00 333.00 333.00 333.00 333.00 2101.00 33973.00 24046.00 14119.00 4192.00 -5735.00 -23894.00 July August September October November December End of year Opening -23894.00 -32053.00 -46763.00 -59380 -61997.00 -64614.00 60000.00 Balance Direct Costs Staff Costs 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00 120000.00 Legal Fees 10000.00 10,000 40000.00 Promotion 1000.00 Equipment 4100.00 Expenses Insurance Phone Bills Office Rent Total Debts Sales The Ormonde, Sales 100.00 160.00 100.00 160.00 100.00 160.00 100.00 160.00 100.00 160.00 100.00 160.00 1200.00 1920.00 1000.00 -10260.00 -20260.00 -20260.00 -10260.00 -10260.00 -10260.00 -169220.00 333.00 333.00 333.00 333.00 333.00 333.00 3996.00 57 UCI, Sales Dundrum, Sales The Vue, Sales 1768.00 Total Sales 2101.00 Account Balance 1768.00 1768.00 1768.00 1768.00 1768.00 12376.00 3449.00 3449.00 3449.00 3449.00 3449.00 17245.00 2,093.00 2,093.00 2,093.00 2,093.00 8372.00 7643.00 7643.00 7643.00 7643.00 41989.00 -59380 -61997.00 -64614.00 -67231.00 -67231.00 5550.00 -32053.00 -46763.00 Cash Flow Year 2 Year 2 Opening Balance Direct Costs Staff Costs Legal Fees Expenses Insurance Phone Bills Office Rent January April July October End of year -67231.00 -56093.00 -43955.00 -31817.00 -67231.00 30000.00 30000.00 30000.00 30000.00 1500.00 1500.00 1500.00 1500.00 300.00 480.00 1200.00 1920.00 1000.00 -33280.00 -32280.00 -32280.00 -32280.00 -130120.00 Sales Sales (The Ormonde) Sales (UCI) Sales (Dundrum) Sales (The Vue) 2013.00 2013.00 2013.00 2013.00 14859.00 14859.00 14859.00 14859.00 20229.00 20229.00 20229.00 20229.00 7317.00 7317.00 7317.00 7317.00 8052.00 59436.00 80916.00 29268.00 Total Sales 44418.00 44418.00 44418.00 44418.00 177672.00 -56093.00 -43955.00 -31817.00 -19679.00 -19679.00 Total Debt Account Balance 300.00 480.00 1000.00 300.00 480.00 300.00 480.00 120000.00 6000.00 58 Cash Flow Year 3 Year 3 Opening Balance Direct Costs Staff Costs Legal Fees Expenses Insurance Phone Bills Office Rent Total Debt January April July October End of year -19679.00 -14801.00 -9923.00 -5045.00 -19679.00 30000.00 30000.00 30000.00 1500.00 1500.00 1500.00 30000.00 1500.00 120000.00 6000.00 300.00 480.00 450.00 1200.00 1920.00 1800.00 -32730.00 -32730.00 -32730.00 -32730.00 -130920.00 300.00 480.00 450.00 300.00 480.00 450.00 300.00 480.00 450.00 Sales Sales (The Ormonde) Sales (UCI) Sales (Dundrum) Sales (The Vue) 2352.00 2352.00 2352.00 13362.00 13362.00 13362.00 8700.00 8700.00 8700.00 13194.00 13194.00 13194.00 2352.00 13362.00 8700.00 13194.00 9408.00 53448.00 34800.00 52776.00 Total Sales 37608.00 37608.00 37608.00 37608.00 150432.00 -14801.00 -9923.00 -5045.00 -167.00 -167.00 Account Balance 59 Explanation of Costs Funding Each of our four directors is also investing €15,000 from personal savings. The cash flow shows that M-Solutions will be in debt for the first three years, almost becoming profitable at the end of year 3. This cash flow was based on pessimistic figures, assuming M-Solutions receives no grant. In reality M-Solutions would expect to be in receipt of a grant from Enterprise Ireland. If this were not possible, a bank loan or venture capital would be required. Staff Costs Each of the directors will earn €25,000 per year before tax. Legal Fees Estimated to be around €10,000. Each time the system is implemented in a cinema, new contracts will need to be drawn up. In year two and three they are estimated to be around €1,500. Phone Bills Four mobile phone contracts at €40 each per month = €160 Office Rent M-Solutions intends to avail of the Invent Virtual Incubation service. This allows the use of address and access to facilities for €1,000 per year. In year three, M-Solutions will rent an office for €450 per month. Promotion: Cost of promotional activity carried out will be around €1,000. 60 Equipment: Visual Studio licence: €1,200 SQL Server licence: €600 Web Space: €300 SMS/MMS Server: €2,000 Total: €4,100 61 Case Study Case studies are an important element of the research. They demonstrate that there is a strong possibility that M-Solutions will be successful. This is because similar systems are currently being researched or implemented. E-tickets on airlines to burst into Chinese market28 E-ticketing is going to be one of hot new concepts of 2005; some people say that 2005 will be China's e-ticket year. Experts estimate that in China's domestic air market, the use of e-tickets will reach 50% during 2005, which will mean that e-ticket sales will surpass 30 billion RMB (€3.6 billion). Given the attraction of this enormous market, traditional ticket agents are seeking to enter into technology alliances. IT companies are gradually infiltrating this market and existing travel sites aren't giving up, so who in the end will be able to push China’s e-ticket market forward? The reason for the sudden and rapid development of e-tickets lies in their economic benefits. A China Southern spokesman confirmed that the proportion of e-tickets had already reached 20% of tickets sold, saving close to 100 million RMB (€12 million) in expenses. According to estimates, one regular paper ticket costs about 40 or 50 RMB (€5 to €6), including printing, delivery and settlement costs. Calculating according to the total number of annual passengers on domestic flights (approximately 70 million), the whole airline industry could save at least 2.1 billion RMB (€250m) a year. Because e-tickets are virtual (not material), they don't have to be delivered, thus reducing the airlines’ investment in sales outlets and distribution networks. Moreover, the settlement and ticket payment problems between the airlines and agents are resolved. With traditional tickets, settlement for tickets took two weeks or more, and each day as much as 10 million RMB (€1.2 million) wasn't received on time, occupying significant amounts of airlines' capital resources. Using web-based payment to settle e-tickets greatly reduces the number of steps in the settlement process. 28 www.9588.com/mediaroom 62 Current process versus reengineered process of obtaining a mobile/paper cinema ticket. Re-Engineering Process Current process Unique identifier allowing immediate Slow delivery access to customer records via database. Consequent time efficiency at preHigh distribution costs booking stage. Improved co-ordination of customer High operational costs information between departments. Improved co-ordination of system Increased Touting information between departments. Reduction of paper intensive Lack of customer procedures information Higher throughput in the number of Lack of customer patients convenience Tickets can be sold right up to the last No insurance on ticket minute. The tickets are delivered immediately. No guarantee on ticket Cheaper than printing and posting a No integration between paper ticket. systems The tickets can’t simply be transferred Constant machine failure like a paper ticket. Organisers can track attendance at the Poor after sales service event automatically. No need to queue at the box office to collect paper tickets. No need for panic if the customer loses his M-Ticket, it can be cancelled and reissued effortlessly. 63 User Manual – for M-Solutions prototype website. 1. Facilities for NON-MEMBERS: Figure 28 M-Solutions Home Page The user visits the M-Solutions website (in reality, the cinema’s website using MSolutions’ software) – figure 28. The user can view the week’s movies – the seats available column decreases when an M-Ticket booking is made so this column is constantly changing – figure 29. Seats available for each movie Figure 29 Movies available this week 64 A user can then proceed to book an M-Ticket – he is asked whether or not he is a registered member. A user does not need to be a registered user to purchase an MTicket – figure 30. Figure 30 User is asked if he is a registered member If the user is not a registered member and does not wish to become one at this time, he is presented with an M-Ticket booking form for non-members – figure 31. 65 Figure 31 M-Ticket booking form for non-members The movie, day, time, adult seats and child seats dropdown menus are all dynamic. A user cannot choose a day without first choosing a movie, or a time without first choosing a movie and day. This ensures that users cannot book an M-Ticket for a day or time that a particular movie is not showing. Once the user has entered all the required information correctly, he is presented with a confirmation screen – figure 32. Figure 32 A successful M-Ticket purchase by a non-member 66 The user’s M-Ticket is then sent to his mobile phone. The barcode number is converted into a barcode and sent along with the transaction number and details of the movie, day and time chosen – figure 33. This information is also sent as an automated email to the user’s email address. The user is also reminded again of the convenience offered to him of becoming a registered member. Transaction Number: 996352 Movie: Madagascar Day: Thursday Time: 19.00 Adults: 2 Children 2 Figure 33 An M-Ticket A user can choose to become a registered member of M-Solutions. He does this by filling out a membership form – figure 34. Figure 34 Application to become a registered member 67 The user’s user name must be unique – if the user chooses a user name that has already been chosen by another user, he is asked to choose a different user name. Upon successfully registering, the user is redirected to the Login screen – figure 35. Figure 35 A successful user registration The user can choose to have an M-Ticket reissued to the mobile phone number used to make the original booking, if he accidentally deletes the M-Ticket – figure 36. This facility costs the user 80c per M-Ticket reissued. 68 Figure 36 Retrieval of a lost M-Ticket (non-members) 69 Users can find out more about M-Solutions and mobile ticketing by clicking on the FAQ page – figure 37. Figure 37 Frequently Asked Questions about M-Ticketing 70 2. Facilities for REGISTERED MEMBERS: Figure 38 Members' Login Screen New registered user, so no profile built yet Figure 39 A Registered User's personal page Once a registered user logs in (figure 38), he is presented with his personalised page, along with some suggestions of movies of interest to registered users with a similar profile – figure 39. 71 A registered user can make an M-Ticket booking. Because his personal details are already stored by M-Solutions, he doesn’t have to reenter them when booking an MTicket. This provides registered users with a booking form that is much more convenient to fill out – figure 40. The user’s name is already entered automatically on the booking form and cannot be changed. All he needs to do is choose a movie, day, time, number of adult seats and number of children’s seats required. As M-Solutions does not store users’ credit card details, he is required to enter them for each M-Ticket purchase. In this instance, M-Solutions has placed security as a greater priority than convenience. Figure 40 M-Ticket booking form (Members) 72 The user is presented with a screen confirming his purchase – figure 41. His M-Ticket is then sent to his registered mobile phone along with an automated email to his registered email address. Figure 41 Confirmation screen for a successful Member's M-Ticket booking The user’s personal page is updated with information about the booking. As the user has chosen a movie of genre type ‘Action’, the system suggests a soon to be released action movie. Also, as the user has booked more than four M-Tickets in the one transaction, he is presented with a special offer – figure 42. 73 User is targeted with a soon to be released movie based on the same genre of MTicket purchased Regular users are targeted with special offers Figure 42 User’s personal page – updated with his recent purchase A registered user can view a list of all M-Tickets currently booked by him – figure 43. Figure 43 M-Tickets currently booked by this member 74 A registered user can have his M-Ticket reissued if he accidentally deletes it. This service costs the user 80c per M-Ticket reissued – figure 44. Figure 44 Registered user's M-Ticket reissued A registered user can change or update his personal details, for example change his registered mobile phone number – figure 45. 75 Information already in form so user doesn’t have to reenter it User has updated his Mobile Phone Number Figure 45 Registered users can update their personal information A registered user can view his personal details stored by M-Solutions at any time – figure 46. Figure 45 Personal details of a registered user 76 A registered user can change the details of his M-Ticket purchase, for example he can add or remove people from the M-Ticket booking – figure 47. User enters Barcode and Transaction number of the MTicket he wants to alter Extra people are being added to this M-ticket booking Figure 46 Changing details of a registered user's M-Ticket purchase 77 If a registered user has his mobile phone containing an M-Ticket stolen or loses it, he can cancel the M-Ticket and reissue it with a new Barcode to his new mobile phone. The original M-Ticket is then null and void – figure 48. User enters his new mobile phone number here 78 User enters Barcode Number and Transaction Number of MTicket he wants cancelled and reissued M-Ticket is assigned a new Barcode number and Transaction number Figure 47 Cancelling and reissuing an M-Ticket from a lost or stolen Mobile Phone 79 3. Mobile Facilities for MEMBERS: Registered members have the facility to book M-Tickets directly from their mobile phones. Figure 48 Mobile Phone Login Screen After the user successfully logs in, he is given the choice of booking or retrieving an M-Ticket – figures 49 and 50. User can choose to purchase an M-Ticket or to retrieve an M-Ticket Figure 49 User choosing to purchase an M-Ticket 80 The user is then presented with a list of movies, days and times to choose from and is asked to choose the number of adult’s and children’s M-Tickets he wants to purchase – figure 51. Figure 50 User choosing a movie, day, time and the number of adult and children's M-Tickets he wants to purchase The user can choose to have an M-Ticket reissued using his mobile phone handset - figure 52. Figure 51 User chooses the M-Ticket he wants reissued 81 He is presented with a list of M-Tickets he has purchased, chooses the one he wants reissued and confirms his choice. 82 Administrators’ Manual – for M-Solutions: This manual provides instructions for Administrators (for example, cinema managers) to use M-Solutions. All administrators must authenticate themselves using an administrator’s login and password – figure 53. Figure 52 Administrators' Login Screen Upon successfully logging in, the administrator is presented with an administrators’ screen, consisting of a set of options – figure 54. 83 Figure 53 Administrators' list of options An administrator can: 1. Validate a customer’s M-Ticket. He simply asks the customer to scan his MTicket and enter his M-Ticket transaction number. The administrator can then check the M-Ticket booking details and most importantly, that the M-Ticket is valid and hasn’t been used already. If the M-Ticket has already been used, the administrator will be informed by the M-Solutions system that the system is invalid – figure 55. 84 M-Ticket is Valid Details of MTicket being validated Figure 54 Administrator's screen after validating an M-Ticket 85 2. Get information on particular M-Ticket Bookings. The administrator can select a movie and/or day and/or time and/or user gender and find out information about what types of people are booking particular movies at particular times and build up profiles of the age groups and genders of people purchasing action, sci-fi or animation movies – figure 56. Administrator wants to view M-Ticket bookings for ‘Batman Begins’ on Thursday for all performances for both male and female bookings Non-Member M-Ticket bookings Members’ M-Ticket bookings Figure 55 Administrator enters a query and relevant Members' and Non-Members' M-Ticket bookings are returned 86 3. Get information on registered users and their M-Ticket purchases. The administrator enters a registered user’s user name and the M-Solutions system returns the information required – figure 57. Figure 56 Information about a particular user 87 4. Revalidate a mistakenly invalidated M-Ticket. If a cinema usher mistakenly invalidated a customer’s M-Ticket, an administrator can immediately revalidate it – figure 58. M-Ticket is Invalid 88 M-Ticket is Valid Figure 57 Administrator revalidating a mistakenly invalidated M-Ticket 5. View the staff log and add new staff (ushers) to the staff database. Ushers can validate M-Tickets by asking the customer to scan his M-Ticket and enter his transaction number on a keypad. Staff members do not have administrative rights, however – figures 59 and 60. 89 Most recently revalidated M-Ticket Figure 58 The staff log Figure 59 New staff member (usher) added, with staff but not admin rights 90 6. Get a user profile. An administrator can enter a registered user’s user name and view all M-Tickets purchased by that member and get a breakdown by movie genre – figure 61. User administrator wants information on Administrator can see that this user has already used his MTicket booked. Figure 60 Breakdown of M-Tickets booked by this registered member 7. View users targeted by the system. If a user is purchasing M-Tickets regularly, the system will recognise this and target that user for special offers, for example half price popcorn or reduced price M-Tickets at quieter times during the week or up and coming he may be interested in viewing – figure 62. 91 Figure 61 Recommendations made by the system based on users’ past purchases 92 Using Barcode Technology: After researching various technical solutions for encoding the cinema ticket information, sending it to the customer’s phone and then allowing it to be validated at the cinema, the most cost efficient and practical solution was to use barcodes. As customers are already familiar with barcodes, typically 1D Barcode technology, which appear on everything from packets of biscuits to technical products, we felt that our customers would not be intimidated by using them in our solution. Another factor was, because of the familiarity, customers would feel secure in the fact that their cinema ticket information was encoded sufficiently and thus only the cinema would be able to decode the information and validate their ticket. Figure 63 1 Dimensional Barcode Figure 64 2 Dimensional Barcode After further investigation into whether to use 1 Dimensional (1D) or 2 Dimensional (2D) barcodes, we decided to use 2D barcodes as they can contain more information than conventional 1D barcodes. One factor in choosing 2D barcodes over conventional barcodes is that 1D barcodes get wider as more data is encoded. This would result in problems, especially as some screens on mobile phones are narrower than others. 2D barcodes make use of the vertical dimension to pack in more data, which in our case results in barcodes, which are square and which fit nicely on the screens of most mobile phones. 93 When the user has entered their details on the website and has selected an M-Ticket, a unique transaction number and barcode number is automatically generated. A 2D barcode is generated from this barcode number and the barcode is sent to the customer’s mobile phone as an image. Once the customer shows this image on their mobile phone to the usher at the cinema the usher scans the 2D barcode with a 2D barcode scanner, the customer is asked to enter their transaction number (printed under the barcode), thus invalidating the MTicket. Figure 65: Typical 2D scanner 94