Innovation Management - Group 22 - OneCard

Uploaded by ICInnovationMgmt22 on 05.12.2010

>> NARRATOR: Here's a brief history of contactless card technology
The Octopus Card was one of the first contactless smartcard systems to reach
the market,
and was developed in 1994 by the ERG Group, an Australian company who was responsible
for the building
and installation of the system components.
Released to the public in 1997, it quickly grew from a travel based contactless card
to a multi-purpose stored value card.
With cash and cheques quickly becoming a thing of the past,
cardholders can use their Octopus card to quickly and easily pay for groceries,
coffee and fast food, without having to fumble around for change!
In recent years, the Octopus card has also been used as an entry control device
for schools, offices and residential buildings
After the success of Hong Kong’s Octopus card,
London decided to follow suit with one of their own: the Oyster Card.
In 1998, a £100 million contract was signed with TranSys,
a consortium of technology companies.
After an initial rollout to Transport for London staff,
the Oyster card was released to the public in July 2003.
Unlike the Octopus card, it can only be used on public transport in and around London.
In September 2007, the OnePulse card was introduced by Barclaycard and Transport for London.
The card uses the NXP SmartMX chip to combine the existing
Chip and Pin functionality with Visa PayWave contactless payments,
and an Oyster card. Unfortunately, this card is locked to a single bank,
and doesn't allow users to add other information such as access to buildings,
loyalty cards, and university information.
The Oyster card has been wildly successful,
with 34 million cards issued, and over 80% of journeys in London made using it.
>> JIM: Hi everyone, welcome to our third innovation meeting… So guys, what have we
got so far?
>> NICK: We know we want to develop some kind of card that combines the Imperial ID card
with an Oyster card.
>> JIM: Ok...but isn’t that just like Hong Kong’s Octopus card?
>> HUGO: Yeah...maybe we should put some credit/debit card features as well.
>> JIM: Ok…isn’t that just like Barclaycard?
>> NICK: Ok guys look…
Imagine if we had that card we were talking about.
We could call it the OneCard.
It would start off as a platform for access control,
both in university and in the Tube,
and it would also function as a
credit and debit card for both online and offline payments.
However, what would make it different is that we could
partner with other organisations in order to expand its usage range. 0:03:04.160,0:03:05:160 >> JIM: Sounds good! 0:03:05:160,0:03:07.290 >> NICK: The thing is, we could create a website
where the card users would log in to in order to update their OneCard
whenever a new partner enables the technology to be used in its system.
Besides, the main difference between this card and the
Octopus card would not only be the ease-of-use,
but the way we interact and introduce partners.
>> HUGO: I don’t think that would be hard actually since the technology for it already
exists. What we are doing is only taking advantage of that existing technology and selling it
in an innovative way.
>> NICK: We can even develop a phone app for it, so that users could manage their accounts
anywhere and at any time. Also, because the system is going to be developed in such
an easy-to-use way its potential for recruiting new partners is very high over time.
>> JIM: The card can also work as a business facilitator for our partners. Imagine, whenever
a new partner joins our system they make more money in sales since these are done in a fast
and automated way. This would also be beneficial for us because more cards would be issued
when partners implement our system.
>> NICK: Let me see if I can print out a card and develop one using my Windows™ PC?
Ooh, built in printer! Oh look, there we go…
>> ALL: Whoa!
>> JIM: Yeah, that’s pretty good. I think I’ll present our idea to the director soon.
Everyone agree?
>> JIM: Nick, what do you think?
>> NICK: Yeah, what a great idea!
>> JIM: I’m just going to introduce you to the idea of the OneCard
and we’re going to present how we’re going to bring it to the market.
>> JIM (off-screen): Developing the OneCard is actually less complicated that you might
imagine – because the technology used in the card has been used in other systems, we
are simply implementing the system in a more user-friendly manner.
As each company has their own ways of storing data, careful liaison is required between
companies in order to ensure that the data we provide customers is as accurate as possible
>> NICK (off-screen): Issuing cards can be done using existing equipment and technology
– we simply need to provide blank cards to issuers. Instead of just being the banks
that issue the cards, they can be now also be issued by universities and employers –
basically anyone with a card printer. The cards can generally be printed within five
minutes , reducing the time taken to get up and running – and providing a way to get
a quick replacement if they are lost or stolen. Because the cards use existing technology
, they can be used in existing devices, such as on Underground turnstiles, Chip and PIN
machines as well as for entry systems as found on doors, reducing the investment required
to participate in the scheme.
>> JIM (off-screen): In order to get cardholders to make use of the OneCard, we will partner
with employers and universities to offer to combine their existing card system – this
will ensure that as customers already have the card, they are more likely to make use
of it and enable the additional features. The advantage of using a single card for all
transactions is that the issuers are able to track where it is being used and deliver
targeted promotions to the users based on their usage habits – for example, if the
card is being used in a shop, they might be able to see when it was last used there.
>> NICK (off-screen): Our end-user market are users who work in large companies/universities
who have an existing card solution, with an infrastructure already in place, as well as
potentially new users who are unaffiliated – these people could directly apply to
us to take advantage of the OneCard. Our partners would be the issuing banks, retailers
for loyalty card functions and Transport for London for the Oyster card functionality.
>> JIM (off-screen): OneCard can assess fees to the issuing parties for issuing a card,
enrolling a new user, and a per transaction cost.
The most important danger to look out for when designing the system would be data security
– a large amount of information is stored, so we must ensure that we are compliant with
the Data Protection Act (1998)
>> ISLAM: “This has revolutionised my life – I no longer have to worry about change
>> NOOR: “This is an awesome product, I believe it will have a huge impact and will
change the way we interact – the way we buy stuff from the supermarket”
>> NICK: “Simply tap… and go!”