ECT 589

1. ECT 589 Mobile Enterprise Part 2

2. Case: Marriott International’s Wireless Initiatives

3. Some overarching trends Consumer (Guest) Mindset • Consumers increasingly expect “Full Range Connected Mobility”, i.e., seamless and fast connectivity anytime, anywhere • The “office” as a fixed location is giving way the notion of the office as just the act of paying attention to work through “always-on” mobile technology • Self-service technologies will be adopted widely, not just because they have a fast ROI, but because a significant segment of the population prefer this mode of interaction and become willing and at times, demanding participants

4. Monitoring and educating on technologies, applications, processes • Interconnected on-duty Hotel Employees - Locate, Communicate, Facilitate, Monitor and Direct - all associates, all activities • Wireless connectivity in all its forms - both associate- and customer-facing • Occasionally Connected Computing Architecture - perform offline just as if online • Network Convergence - voice, data, video, images, on a single network • Digital Video technology - entertainment and productivity converge

5. Monitoring and educating on technologies, applications, processes • Natural Language Interfaces - voice-based computer interaction • Biometric technology - something you “are”, versus something you “have”, for security and authentication • New applications for Card Technology - smart and traditional • New applications for Geo-positioning Technology - knowing where you are and what is available there

6. Pre-Arrival Prep Performed Guest Welcomed Guest Check In Performed Check-in Scenario “Standard” Kiosk • Upon arrival, guest inserts credit card into self-service kiosk • Kiosk authenticates guest and obtains room assignment from property system • Guest checks in at kiosk, including option of changing room, and receives room key and printed welcome with room number • Guest Stay record is opened in Property Management System • Guest proceeds to room number printed welcome • Guest enters the room, opening the door with encoded key dispensed from kiosk

7. Pre-Arrival Prep Performed Guest Welcomed Guest Check In Performed Check-in Scenario Biometric Kiosk • Upon arrival, guest speaks their name and a random sequence of numbers as directed by voice activated kiosk • Kiosk authenticates guest based on voice pattern analysis and obtains room assignment from property system • Guest checks in at kiosk with voice commands, including option of changing room, and receives room key and a printed welcome with room number • Guest Stay record is opened in Property Management System • Guest proceeds to room number printed on printed welcome • Guest enters the room, opening the door with encoded key dispensed from kiosk

8. Pre-Arrival Prep Performed Guest Welcomed Guest Check In Performed Check-in Scenario Guest Handheld • Property system delivers room assignment to guest’s handheld within a standard window of time, prior to arrival, based on profile • Guest has option of requesting room change prior to arrival • Upon arrival, guest’s handheld device wirelessly signals to property system that guest is present in the hotel • Property system wirelessly sends welcome message and options for check in, including another room change opportunity • Encoded key data, room number and welcome data are wirelessly delivered to guest’s handheld • Guest Stay record is opened in Property Management System • Guest proceeds to room number displayed on handheld • Guest enters the room, opening the door lock with handheld’s wireless encoded key signal

9. Pre-Arrival Prep Performed Guest Welcomed Guest Check In Performed Check-in Scenario Guest Handheld • Property system delivers room assignment to guest’s handheld within a standard window of time, prior to arrival, based on profile • Guest has option of requesting room change prior to arrival • Upon arrival, guest’s handheld device wirelessly signals to property system that guest is present in the hotel • Property system wirelessly sends welcome message and options for check in, including another room change opportunity • Encoded key data, room number and welcome data are wirelessly delivered to guest’s handheld • Guest Stay record is opened in Property Management System • Guest proceeds to room number displayed on handheld • Guest enters the room, opening the door lock with handheld’s wireless encoded key signal

10. In-Room Services Performed Ancillary Services Performed In-room Entertainment & Work Scenario • Guest’s handheld device is the “hub” of their personal network, containing an incredible variety and volume of content. • Utilizing technologies such as Bluetooth and WiFi, this hub automatically “negotiates” wireless connections with built-in room infrastructure • Video Screen (plasma, LCD) • Television Tuner • Video Player • Music Player • High fidelity speaker system • High Speed Networking • Guest is offered options (with related pricing) of • Playing their own video, music, audio book library, or other content • Purchasing entertainment available in the hotel entertainment system • Watching free-to-guest programming • Connecting to high speed network • Using the video screen and in-room wireless keyboard to perform work

11. In-Room Services Performed Ancillary Services Performed Future Scenario Performing Arts Connection • Guest profile could contain their “top ten” list of performing artists they would like to see in concert • Upon reservation (or within a window thereafter, including at check-in time) Marriott systems “connect” to Ticket Master systems to determine if favorite artist(s) are in town during stay • If so, and tickets are available, an offer to purchase concert tickets is delivered to guest’s wireless handheld device • Customer accepts or declines offer on their wireless handheld • Marriott (Ticket Master) executes an order and delivers tickets either electronically to handheld, or prints tickets and presents upon customer check in • Marriott takes a service fee for arranging the transaction

12. In-Room Services Performed Ancillary Services Performed Future Scenario Performing Arts Connection • Guest profile could contain their “top ten” list of performing artists they would like to see in concert • Upon reservation (or within a window thereafter, including at check-in time) Marriott systems “connect” to Ticket Master systems to determine if favorite artist(s) are in town during stay • If so, and tickets are available, an offer to purchase concert tickets is delivered to guest’s wireless handheld device • Customer accepts or declines offer on their wireless handheld • Marriott (Ticket Master) executes an order and delivers tickets either electronically to handheld, or prints tickets and presents upon customer check in • Marriott takes a service fee for arranging the transaction

13. Primary focus - on-property productivity, service, and “changing the game” • Identify opportunities and all classes of properties • Identify GM’s and RVP’s disposed to technology leadership • Perform proofs of concept (POC’s) in leadership-oriented properties for high potential applications and technologies • Compile results of POC’s • Educate the business and IR on the • Results of POC’s, • Implications for industry and Marriott • Possible approaches for dealing with implications Identify Opportunity Identify High Potential Properties Perform Proof of Concept Compile POC Results Educate Business & IR on Implications Marriott Desire to Retain Leadership Marriott Educated on Implications of Leadership

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

15. Proofs of Concept - Completed • Enterprise Instant Messaging • Self Service Kiosk for Check-in and Check-out (remote and in-hotel) • “Push to Talk” cellular phones for hotel associates • Wireless Tableside Order Taking • Voice Over IP for intra- and inter-property connections

16. Wireless handhelds for Micros point of sale Compaq IPAQ Symbol technology

17. Wireless bridge to distant golf maintenance building • Golf Course predated the Hotel • Maintenance Building had no LAN or phones. • This was “discovered” late in the opening cycle. • “Wiring” for phones and LAN deemed too costly, disruptive and time-consuming • Solution: • Place transceiver-antenna on Hotel roof and reciprocal unit on Maintenance building roof • Connectivity to the Hotel PBX for VoIP phones • Distributed LAN connection

18. Proofs of Concept - Planned • Wireless Handheld Check-in and Room Entry • Wireless connection of guest Music and Video devices to in-room infrastructure • Voice activated Check-in and Room Entry • RFID for high-value assets and “presence” applications • Smart panel arrays for significantly improved WiFi propagation • WiFi phones for hotel staff instead of pagers, walkie talkies, cell phones (possible integration with Spectralink)

19. VoIP and Wireless Connectivity in other Hotels • Marriott Waterside and Marriott Westshore connected via Wireless link, and VoIP • Kuwait Marriott – Complete VoIP for guests and associates • Product Development Committee standard “Room of the Future” – embedded wireless connectivity between guest devices and in-room infrastructure

20. STSN Wireless HSIA Connectivity in Public Areas • Part of our Wireless initiative with Intel and STSN – “Wired for Business” • Allows connectivity to the Internet from Lobby and Other Public Areas, including outdoors such as around the pool, beach, and golf courses • Complements wired Guest Room and Meeting Space HSIA by STSN and other providers

21. RFID Trends and Issues

22. Active and Passive RFID Applications Data Synchronization Lot Traceability POS Data High-Speed Sorting ASN Transmission Counting Returnable Assets Third-Party Data Collection Data Collection Smart Appliances

23. Critical Issues on RFID Implementation 1. What are the current and future capabilities of the RFID technology? 2. Which vision of RFID usage will emerge as beneficial to enterprises and consumers, and which will remain “science fiction”? 3. What does an enterprise need to do in the next five years to harness the technology for competitive advantage?

24. Much Work Remains on the Three Basic Hardware Components for RFID Systems • Transceiver • RF Module • Decoder • Handheld or Fixed • “Interrogator” • Tags • IC and Antenna • Passive or Active • Various Packaging Options • Antenna • Radiate RF • Activate Tag • Can Be an Array • Can Be Separate From Transceiver Transceiver Photos: Intermec Technologies Corp. Photos

25. RFID Frequencies:One Size Does Not Fit All Range Data Transfer Rate Low Frequency ~125KHz High Frequency 13.56MHz General Characteristics Ultrahigh Frequency 850 to 1,000MHz Microwave Frequency 2.45GHz Permeability

26. The Five-Cent RFID Tag Does Not Exist, but Some Mainstream Applications Are Still Relevant Production Cost Components of Passive Tags Packaging Assembly Antenna Silicon $0.15 Capital/Scale-Sensitive $0.05 Current: At Least $0.40

27. Most Benefits of RFID Will Not Happen Until Enterprises Adopt RFID-Centric Processes Using RFID to Create New Processes and Strategies Open-System RFID Applications RFID-Centric 2007-2012 RFID-Enabled Closed-Loop Pilots Based on Open Standards Strategic Power 2004-2007 2002-2004 Closed-Loop Applications Pre-2002 Phase 1 2 3 4 Scope of Solution

28. Issue #1: An Incremental Operational Cost of Collecting Data? Enterprises Trade Off Operational Costs for IT and Capital Costs Operational Costs IT Costs: Architecture, Infrastructure, Applications Costs of Data Collection Operational Costs: Productivity Amortized Fixed Costs Increasing RFID Use

29. Issue 2: Operations Limitations Keep the Scale of Data Manageable? Can Your Systems Handle: 20 Billion Inventory Events?

30. Issue #3: Facility Layout and Process Design Involve Line-of-Sight Verification? Considerations in RFID Process and Facility Design Data Latency Sorting/Identification Real Time Lag Time Environmental Concentration of Tags/Speed of Tag Reads Transceiver Photos: Intermec Technologies Corp. Photos

31. Issue 4: Can’t Trust Information from Others? 2007 Enterprise: Virtually Integrated, “Real-Time” Customers “Multienterprise Grid” Enterprise/ Suppliers/ Partners Industry Networks • Traditional Inhibitors • Bad Data • Can’t Depend on Operations

32. Issue 5: Most Assets Are Too Trivial to Track in Detail Shrink RFID + Information Benefits Bar Coding RFID Asset Value

33. Still Developing a Strategy: What Will Wal-Mart Require, and How Will This Play Out? • Only Using Standards-Based Technology • Cares About UCCnet, ePC and RFID • Wants to Collaborate With Suppliers Wal-Mart Compromises and Rationalizes Requirements Limited Tagging in Production Environments Begins Wal-Mart Announcement Wal-Mart Supplier Conference Wal-Mart Finalizes Requirements Beyond 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 ePC Standards Announced Supplier Enablement Implementation Begins Suppliers Attempt Cost Rationalization With Wal-Mart — Propose Some GTIN on Bar Codes Suppliers Develop and Implement Win-Win Business Cases With Wal-Mart Vendors Promise Solutions Vendors Announce Concrete Solutions

34. RFID-Centric Retailing Enables Sophisticated Management of Store Operations 2008 2013 Beyond  Manage Labor and Tasks  Granular View of Some Case Inventory  Granular View of Item Inventory  Eliminate POS Individual Promotions Huge Stores 

35. Emerging Market: RFID Prototyping Environments Will Facilitate New Processes System of RecordWMS, Manufacturing, Retail Functionality Migration RFID Data Collection State Management DB RAD Environment (Portals)

36. Some Implementation Issues • Begin planning now for customer-driven RFID labeling requirements by 2005. • Immediately review all RFID projects to ensure that RFID is intrinsic to the project — specifically, look at data synchronization and data collection projects. • Identify and prioritize projects that create competitive advantage by breaking “Strategic Bar Code Assumptions.” • Triple the money allocated for process re-engineering to get RFID-centric processes.