This article originally published in Self-Service World magazine, Dec. 2007.
Last year, we conducted the inaugural Self-Service World market survey. More than 100 executives from leading retailers, financial institutions, restaurants, hospitality providers and other customer-centric industries answered questions about how they were using self-service and how they planned to adjust their usage over the course of the coming years.
This year, we returned to that same pool of executives and asked them the same questions, hoping to see how their efforts were stacking up against the plans they revealed last year. We also asked them to look into their respective crystal balls, and share with us their self-service plans for the next five years.
Here, then, are the results of the 2007 Self-Service World market survey, along with some analysis comparing them to last year's responses.
GRAPH 1: The ATM is the granddaddy of customer self-service, so it's no surprise that it is the most deployed device among our respondents. It also is tops in their plans for the next year and five years, which may say as much about the make-up of the respondents as anything. Regardless, the ATM is a device the public has come to know, love and depend on.
Moving beyond ATMs, respondents again have their eyes on Internet access kiosks, which echo last year's results. Bill-payment kiosks figure prominently in the near term. The five-year view sees a growing number of businesses looking to the power of assisted-selling devices, which have massive potential for cost-savings and improved customer experience for virtually any industry.
GRAPH 2: A slight shift in mindset has taken place since last year. In the 2006 survey, respondents cited more often the ability of self-service technology to 
improve the customer experience, in part by making it more convenient. This year, while customer experience ranked very high, the No. 1 response was more about the deployer and how self-service can impact efficiency and the business side of the equation.
improve the customer experience, in part by making it more convenient. This year, while customer experience ranked very high, the No. 1 response was more about the deployer and how self-service can impact efficiency and the business side of the equation.One response that dropped fairly steeply from last year was "Lack of courteous service from humans." This can be read a couple of ways: Either service from employees has improved to the point where it no longer sends deployers looking to machines for relief, or deployers realize that no matter how good self-service technology is, customers always will appreciate warm, helpful interaction from staff.
GRAPH 3: A major shift from last year: "It is a core component of their business" was dead last in the 2006 survey, but for 2007 it ties for the No. 1 response. The change reflects an increased emphasis on self-service in general, an increased awareness of it in the minds of competitive companies or, more likely, a combination of the two.
GRAPH 4: Not much of a change from 2006. A strong majority of respondents plan to increase their short- and long-term self-service budgets. The number of companies whose spending will remain flat was itself r
elatively flat; these likely are companies whose self-service programs are mature.
elatively flat; these likely are companies whose self-service programs are mature.GRAPH 5: Similar to last year's results, respondents in 2007 said they care deeply about building a relationship with a self-service provider that understands their industry. Virtually every self-service application is a custom one, to one degree or another, and a deep knowledge of the specific world in which it will be installed is crucial to a pain-free and profitable roll out.
This year, many more of our respondents were interested in dealing with suppliers that could point to successes involving previous clients. Companies want firm numbers and real-world examples about the technology that is proving beneficial to others in their space. Smart providers are
arming themselves with case studies, prepared to name names about who is using which technology and to what ends.
arming themselves with case studies, prepared to name names about who is using which technology and to what ends.GRAPH 6: Here we see a slight increase over last year in the number of companies for whom self-service either is essential or very important, and a slight decrease in the number of companies for 
whom it is somewhat important. Over time, we believe this trend will accelerate as companies begin to see the ROI and customer experience benefits that self-service provides to everyone involved.
whom it is somewhat important. Over time, we believe this trend will accelerate as companies begin to see the ROI and customer experience benefits that self-service provides to everyone involved.Conclusions
In 2006 we noted that human resources were a woefully underutilized aspect of self-service. The number of companies using self-service for HR increased significantly this year — from 3.4 percent to 14.3 percent — but there is still much more potential there.
And to be clear, when we say "human resources," we're not just talking about job application kiosks. We're talking about the myriad ways a company can provide information in a self-service capacity to employees. That includes terminals for everything from benefit claims to ongoing education or any other use that frees up administrative staff and reduces the amount of paper generated.
We also notice businesses placing more value on dealing with companies that are well-versed in their specific industry — and the more specific the supplier can get the better. There's a great opportunity here for vendors and consultants to become extremely "vertical specific" and home in on specific problems with specific solutions.
Finally, we can predict a greatly heightened emphasis on assisted-selling devices in the coming years. These devices, which take any number of forms and usages, serve all of their masters well. They save the company money, they make employees' jobs easier and they make customers happier. Retailers especially benefit from an increased drive toward assisted-selling devices, but all industries can gain by deploying technology to help customers make purchasing decisions.
| The top stories of 2007 — Shawna Miller |
In a few short weeks, 2007 will be just another binder in a bookcase, a collection of transactions and informaÂtion that recedes into corporate history as all our focus turns to meeting the new year. Before that happens, let's stop to take a look back. What were the year's most important stories, events, technologies and trends for the self-service industry — and what can they teach us?
RFID takes steps, struggles
RFID heads the list due to the sheer volume of information pubÂlished about it in 2007. RFID and RFID developments appeared in Self Service World's news more than 100 times, with the greatest concentraÂtion in March (38 stories) and April (32 stories).
| For access to the top headlines of 2007 in self-service technology, digital signs and industry mergers and acquisitions, visit selfserviceworld.com/07news_wrapup. |
In February, Texas Instruments launched a line of RFID transponders designed to perform in extreme heat and contact with chemicals. A SingaÂpore-based manufacturer, Innotech Resources, announced it had developed a machine that can embed RFID tags into paper or film labels at a rate of 100 per minute. Hitatchi announced its "powdered" RFID chips. The devices are a super-small 0.05 x 0.05mm but have a 128-bit memory. In March, Intel anÂnounced its launch of a low-cost RFID reader chip; ADT set up a permanent testing facility; Accu-Sort developed a tag reader that tunes itself and PrinÂtronix's printer supported wide RFID range. In April, Australia-based Mikoh Corp. said it had developed a convertÂible RFID product tag that could help protect customer privacy.
These developments in chips, antennas, electronic ink and labelÂing move RFID closer to becoming a significant player in self-service, but it is notable that the number of developments actually is few. Perhaps this fact is related to sevÂeral concerns about RFID that are inhibiting its adoption, concerns that include consumer and industry issues.
Consumer concerns include priÂvacy, security and an awareness of the innate power of this technology, as well as the potential for its abuse. For the industry, overcoming these consumer issues are primary challenges, all comÂplicated by a shortage of workers who are well-versed in RFID technology.
RFID continues to be a wait-and-see tool for self-service. Although the possibilities are many, getting all of the components of this movement moving in the same direction has been difficult.
A recent study, a survey released in June by the Computing Technology Industry Association (CompTIA), found that technology resellers and soluÂtion providers are poised to add RFID solutions to their portfolios, but their customers have been slow to embrace the technology. According to the survey, 84 percent of technology resellers, solution providers, systems integraÂtors and consultants will or may offer RFID products and solutions in the next three years, but 65.6 percent said their customers have yet to implement RFID solutions and most said less than 20 percent of their customers are using the technology.
In an article on UsingRFID.com about the survey, David Sommer, CompTIA's vice president of e-busiÂness and software solutions, said, "The results of our survey are reflective of the RFID market, where rosy forecasts about rapid and widespread adoption have given way to the reality of dealÂing with a technology whose broader deployment has been challenged by equipment and tagging costs, murky and unclear return-on-investment for supply chain applications, and a workÂforce skills shortage."
Multitouch
From the sensation created by Jefferson Han's multitouch touchscreen demonstration at the 2006 
TED Talks, the casual industry observer may not guess that it wasn't the first demonstration of such a screen. In fact, pioneering work with multitouch screens began in 1982 (according to Wikipedia), with devices appearing at tradeshows as early as 2002. What set apart Han's demonstration from previÂous ones was reduced cost, improved scalability and increased resolution.
TED Talks, the casual industry observer may not guess that it wasn't the first demonstration of such a screen. In fact, pioneering work with multitouch screens began in 1982 (according to Wikipedia), with devices appearing at tradeshows as early as 2002. What set apart Han's demonstration from previÂous ones was reduced cost, improved scalability and increased resolution.This year, heavy-hitters Apple and Microsoft have emerged in the multitouch space. In May, Microsoft announced its Surface, a multitouch screen powered by the company's Vista operating system and embedded in a black table base. Several of the maÂchines currently are in pilot projects in the hospitality and gaming industries.
In June, Apple released its greatly anticipated multitouch screen iPhone, and in July the company made a move to register the word "multi-touch" as a trademark. Self-service vendors also have moved into the playing field, but there is room for more.
E-voting
If any technology garners a groan, star-crossed e-voting surely tops the list. Like the controversial Registered Traveler program, this is another techÂnology that began with great promise but soon became mired in political and legal wrangling and security concerns.
Self-Service World has been trackÂing e-voting's progress since 2002. Even then it was a hot topic. Through 2004, there seemed to be some optiÂmism that, ultimately, e-voting could work. But in 2005 and 2006, several state counties dropped e-voting and more officials expressed concerns. This year, it seemed, the gloves came off and critics abused e-voting, finding fault with everything from software to hardÂware, coding, security and manufacturÂing, until Diebold, the leading manuÂfacturer of e-voting kiosks, decided the product was too hot to handle any longer. It placed its e-voting division on the block. When it failed to attract a buyer, Diebold decided in August 2007 to let its election-systems subsidiary, now called Premier Election Systems, operate more independently.
Interestingly, it doesn't seem to be the voters who object to e-voting. According to a Field Poll conducted by the San Diego (Calif.) Union-Tribune in August, 85 percent in the state report confidence in e-voting. Of those polled, 44 percent reported having "a great deal of confidence," while 41 percent said "some confidence" and 11 percent said "only a little confidence." Although these statistics apply only to one state, users, though cautious, seem to accept e-voting.
After the beating it has received in recent months, touchscreen voting may be down for the count. For now.
Music and DVD kiosks
Both music and DVD kiosks have been in the news throughout '07. For the last year or so, music kiosks seem to 
have been a smoldering concept. In 2006, Self-Service World posted nearly 100 news articles about the technology, but 2007 saw half that many stories. The concept seems to have put off a lot of smoke, but never caught fire. Tight copyright controls have smothered the promise for this technology.
have been a smoldering concept. In 2006, Self-Service World posted nearly 100 news articles about the technology, but 2007 saw half that many stories. The concept seems to have put off a lot of smoke, but never caught fire. Tight copyright controls have smothered the promise for this technology.Out of the ashes, though, have emerged digital downloading kiosks that better resonate with the iTunes-using, iPod-toting generation.
Where music kiosks have stuttered along, DVD kiosks, particularly rental kiosks, have taken off. Companies such as redbox, DVDPlay and TNR have enjoyed immense growth and expandÂing deployments this year, with redbox anticipating 6,000 locations by year-end. The rise of DVD-rental kiosks has been so meteoric that TNR has put on the brakes, announcing that it will turn its attention from growth to quality.
In development are technoloÂgies that will allow deployers to rent movies via download. Movies can be sent to a blank disc, a flash drive or a device with DRM that expires after a set period.
Payment media is another growing space. Where in the past self-service payments have been limited to cash or charge, this year contactless has gained even more ground and suppliers are making more developments in the pay-by-cell space.
Understanding that fewer average Joes or Janes carry cash any more, manufactures and deployers have followed the money and added card readers to their vending and transactional kiosks. Others are experimenting with the emergent contactless payment wave. And cell phones — which for years have done photos, text messaging and Internet surfing better than holding a call — now can add another trick to their repertoire: payments.
While credit card companies have long dreamed of a cashless society, the developers behind pay-by-cell have an even larger vision: a society without wallets. If you can carry family pictures
on the cell, why not membership cards and payment information, too? Via an embedded RFID chip carrying payment information, the cell phone could be all you need to carry.
Security
A hot topic no matter what the industry, security is especially important for any industry dealing with customers' payment information. With the risk of fraud and identity theft, it is important for deployers of transactional self-service to be PCI compliant to safeguard the sensitive data that enters their machines.
Although few self-service-related security disasters have crossed the news wires this year, the magnitude of the TJX security breach sent shockwaves through the retail world. That kiosks seem to have been a point of entry for the data thieves is a warning to the entire self-service inÂdustry. Even more recently, kiosks have been targeted to collect PINs.
Other trends
WINDOW SHOPPING 2.0. Over the year, retailers Ralph Lauren, Nike and Roots have found their way into Self-Service World's news by introducing their customers to the next generation of window shopping, enabling customÂers to shop and order online without being at home or in the store. TouchÂscreen overlays allowed the retailers to transform their store windows into interactive terminals.
ECO-FRIENDLINESS. Emerging over the year is a greater awareness on the part of suppliers and deployers of their technology's impact on the enviÂronment. From energy-efficient display batteries to processors to kiosks and whole corporate initiatives, everyone — not just the auto industry, as it turns out ever more hybrid cars — is becomÂing more aware of the allure of green and is clamoring to get into the game.
ADA COMPLIANCE. Although its presence in the news has been someÂwhat understated, the risk of non-comÂpliance with the Americans with DisÂabilities Act (ADA) has reared its head. ADA attorneys have labeled kiosks fair game in the quest to ensure accesÂsibility. This, too, is a warning to the industry to make sure that prior to roll out — and, preferably, from Day 1 of project concepting and design — ADA compliance is considered and assured.
During the year, industry suppliers already have taken proactive steps toÂward ADA compliance, even though the industry as a whole may be less aware of the risks.
| 2008: Stories to keep an eye on — James Bickers |
While 2007 was an eventful year, we predict 2008 will be even more so.
A few notable technologies and applications are on our radar for 2008; stories-in-the-making that we think might have a big impact on how you use technology to interface with your audience. Here are a few of the stories we're monitoring for you as we head into the new year:
Multitouch displays
A lot of buzz surrounded the Apple iPhone this year, and a someÂwhat smaller furor over the Microsoft Surface tabletop computer. While the two devices differ drastically in terms of size and price, they have one key aspect in common: They both are introducing consumers to the concept of multitouch displays, which have the potential to change the way human beÂings interact with computers.
The Surface, woefully overpriced at $10,000 a pop, is far from being a viable product for most uses at this point. But if the idea of a true "comÂputer appliance" takes hold, it not only could give Microsoft and its competiÂtors the opportunity to remodel the average American home, it also will offer retailers an amazing new palette on which to paint the customer experiÂence.
DVD kiosks
In an amazingly brief period of time, redbox has given the movie-rentÂal industry a good, solid shake. People are turning up and standing in line outside McDonald's locations to rent movies from a kiosk — and, perhaps most amazingly, waiting in line to return those movies the next day, not just for the gee-whiz factor, but also because of the very attractive price of $1 per day.
The synergy of the co-location scheme can't be ignored, either. The benefits of placing an entertainment rental device alongside a popular destination for lunchtime or on-the-way meals makes for some powerful marketing opportunities. And that makes for a lot of discs going in and out of a lot of big red boxes.
Redbox isn't the only company trying to stake out this territory, and 2008 likely will be a year where a few major players emerge and end up butting heads. Some comÂpanies have recently seen a slight slowing in their growth numbers, suggesting that the battle already has begun.
Self-checkout and shrinkage
In October, Wal-Mart began upgrading the software on its self-checkout units, and it appears that shrinkage is one of the driving motivaÂtions. Self-checkout provides some amazing benefits to the retailer on both the customer service and operational sides, but also it provides a temptaÂtion for shoplifters, particularly during hours when staffing levels are low.
Watch for new strategies to emerge that will rely less on weight sensors and more on video monitorÂing. And those four magic letters that dance through every retailer's dreams — RFID — still are on the horizon as a potential solution.
Energy-efficient displays
LCD and plasma displays have changed the face of the business world in recent years, as flat panels continue 
to proliferate in retail stores, banks, hotels, universities, corporate camÂpuses and anywhere else the need for timely communication overlaps with a need for an enhanced customer experiÂence.
to proliferate in retail stores, banks, hotels, universities, corporate camÂpuses and anywhere else the need for timely communication overlaps with a need for an enhanced customer experiÂence.But those displays use a lot of energy, and that is not going unnoticed. In Australia, a government energy committee commissioned a report on plasma and LCD technology. RecomÂmendations that came back included a set of efficiency standards that would effectively ban most of the models curÂrently on the market.
What to do? One answer might come from Liquid Fiber Displays, a company that was born from research conducted at McMaster University. The team has developed a woven fiber-optic array that replaces about 90 percent of the blue, green and red LEDs used in a traditional display.
LFD is one of many companies tryÂing to find the answer to the energy efÂficiency puzzle. Watch for some amazÂing developments in 2008 that could make all of those displays as efficient as they are lovely.
Audience measurement
Advertisers love numbers. They love proof that their ads are being seen. And they love it even more when those numÂbers are detailed enough to show that the ads not only are being seen but also are generating sales. Retailers love these kinds of numbers, too, because they help them decide what types of marketÂing they should do, and where, and when.
Several companies have emerged over the past year with high-tech tools aimed at satisfying these desires. TruMedia, MISA and Xuuk have developed hardware and software tools that use facial recognition to tell who is looking at a screen or a device, how long he looked and what part of the screen he looked at. Various levels of demographic inforÂmation, such as gender, race and apÂproximate age, also are measured.
TruMedia recently released an API designed to make it easy to integrate its solution with digital-signage software platform Scala. If enough of Scala's army of resellers gets excited about the product, it could be the start of something very big.
Traditional media also is working on measuring activity and attention in the retail space. The Nielsen Company, long associated with television ratings, said 2008 will be the year it will have syndicated measurement of in-store traffic. And expect to hear a lot more about the Arbitron Portable People Meter, a pager-like device that "hears" and records all of the media a person is exposed to throughout the course of a day, whether he is at home, in the car or in a store.
Shawna Miller, managing editor for Self-Service World magazine, contributed to this story.
