Industry:
Retail Vending

Situation:
San Francisco, CA-based ZoomSystems wanted to reduce the installation costs and time-to-money of its interactive ending locations while increasing potential placement opportunities where landline connectivity issues were a problem.

Solution:

• Sprint Mobile Broadband (EV-DO)
• Sierra Wireless Raven E modems
• ALEOS embedded intelligence

Benefits:

• Saved thousands of dollars on each landline installation in airports and similar locations
• Reduced the average airport installation time frame by two months, accelerating cash flow
• Opened up the market to short-term vending placements at trade shows and events

"3G has taken the hard work out of placing our locations in airports. We know that 90% will be accessible via cell signal, eliminating the need to pull wires. Overall, it saves us significant time and money."

- Matt Moses, VP of Operations, ZoomSystems

OBJECTIVE

ZoomSystems had an evolutionary concept: use interactive technology to take advantage of the foot traffic, audience captivity, and impulse buying power in crowded places like airports, malls and event facilities to bring the vending machine paradigm to a new level. Its 40-squarefoot retail spaces—enclosed in shatter-proof glass—use touch screens and robotics to shrink the size and overhead costs associated with setting up typical retail shops.

ZoomSystems still had to overcome several broadband connectivity issues, particularly in airport terminals. The most expensive part of the automated store installation process was pulling Ethernet cable. Costs ranged from $1,000 to $5,000 to hardwire a location, and in some areas landlines were not even an option. Airport facilities also presented vendors with a lot of bureaucratic hurdles, which caused a significant administrative burden.

“When installing DSL into airport locations, we were required to use approved airport contractors instead of being able to bid for a lower cost option,” explains Matt Moses, VP of operations for ZoomSystems. “And if any drilling or construction was necessary, we had to work with their environmental department and do inspections for hazardous materials, which could drastically increase the lead time for installing a vending store.”

SOLUTION DESCRIPTION

To alleviate the costs and delays of DSL, ZoomSystems turned to 3G connectivity using the Sprint Mobile Broadband Network and Sierra Wireless AirLink Raven-E intelligent wireless modems. The ALEOS™ embedded intelligence in the modem enabled remote configuration, packet-level diagnostics and a persistent network connection.

The company began rolling out its wireless-driven stores in airports in February 2006 and to date have approximately 200 wireless installations in place. The EV-DO solution allows the new stores to be virtually plug-and-play. The faster data rates of 3G, coupled with the modem’s ability to establish and maintain its network connections, yields the mission critical uptime that is required to run the stores.

“3G has taken the hard work out of placing our locations in airports,” Moses points out. “We know that 90% will be accessible via cell signal, eliminating the need to pull wires. We can quickly verify the signal with our PCs and start the installation process. Overall, it saves us significant time and money.”

The ALEOS overlay also enables seamless integration with proprietary software, so the company can proactively detect issues and fix them remotely or dispatch a field technician as necessary. This 24/7 monitoring gives Moses the peace of mind that his stores are always on-line.

“We are a 24/7 retailer with no human fallback, so uptime is crucial,” Moses emphasizes. “We were skeptical that wireless could manage the speed and load size requirements for our application, but the performance and uptime have been no different than with our hardwired network locations.”

Going wireless also makes Moses’ stores very portable. “We don’t have to rely on DSL being available. And if traffic flow patterns change, we can relocate the units quickly without incurring huge reinstallation expenses.”

RESULTS

In going wireless, ZoomSystems leveraged Sprint’s nationwide 3G footprint to both increase its market reach and reduce its deployment costs. As a result, major brands such as Sony, Proactiv Solution, Motorola and Johnson & Johnson are able to get their product lines in front of more purchase-ready customers.

“We’ve saved thousands of dollars on each installation by not having to run landline cabling,” says Moses. “And our average airport installation timeline has been reduced by up to two months.”

“By shortening our time to revenue-generation, we’re able to achieve immediate monetization of our sites,” Moses adds. “Moreover, by eliminating the need for hardwired connectivity, we have a more portable solution that can be deployed for spontaneous and short-term opportunities like trade shows and special events.”