The Future of Check-Ins

1

January 5, 2011

THE

FUTURE

OF

CHECK-INS

By :

Pat Burns, President, DASH7 Alliance & Jayant Ramchandani, COO, Novitaz

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in 2.0” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps

2

TABLE OF CONTENTS

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in 2.0” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps

3

TABLE OF CONTENTS

A Check-in:

Quite simply, making your presence and identity known to an

establishment or business upon entry

4

Airline check in

counter,

circa 1965

Card swipe,

circa 1973

Location-based

services,

circa 2009

E-commerce cookies,

circa 1994

A History of Commerce Check-Ins

“Check-in 1.0”

6

Today, Check-ins Are A „Must Have” Feature for

social networks

When you visit Amazon, you effectively utilize a cookie-based online check-in, which

– Personalizes the e-commerce experience for every returning customer

– Enables real-time promotions, discounts, recommendations, targeted advertising

– Results in increased cross-sells and up-sells

Hello, Jane DoeJane’s Amazon.com

7

…yet E-Commerce Sites Have Been Using online

Check-Ins For Years

8

Of Sales Occur Offline!*

*Forrester Research 2010

However:

Like online cookies, next generation check-ins are

enabling future mobile advertising and commerce

spending AND …

9

… are creating an

Amazon.com-like

personalized experience

for brick-and-mortar

retailers

10

But the bigger

opportunity is NOT

about being the mayor

of a donut shop or

letting your friends

know where you are …

11

Next generation check-ins will

Enable Better Mobile Advertising,

Promotions, Search, & Mobile

Commerce

12

provides advertising

networks with

precise coordinates

of your location so

it can serve you

with more targeted

and meaningful

promotions

13

Introducing CHECK-IN 2.0

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Introducing CHECK-IN 2.0

Solving for the

“check-in problem”

also helps solve for

other lucrative

wireless marketing

programs

provides advertising

networks with

precise coordinates

of your location so

it can serve you

with more targeted

and meaningful

promotions

Check-ins form the basis

for accurate, auditable

mobile marketing campaigns,

a $24 billion opportunity in

2013.*

15*ABI Research, 2010

How Huge is The Check-In Market

Opportunity?

s

16

Use Case Example #1: Offline “Adsense”

Source: www.novitaz.com

Novitaz uses an inexpensive, long-range, wireless smartcard to provide retailers

with unprecedented visibility into the offline behavior of their customers while in their stores

RETAIL STOREe

WOMENSMENS

CHILDRENS

e

Customer

Enters

Services Infrastructure

determines relevant offers

based on in-store presence,

browsing and purchases

Product Offers sent on

mobile phoneNovitaz Hotspots

captures brand and

product interest

Customer

ExitsTargeted Offers

increases sales and

drives customers back to

the store

Customer Identified upon entry

Internal Hotspots

Entrance/Egress

Hotspots

17

Use Case Example #2: In-Store Marketing

Source: www.novitaz.com

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in 2.0” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps18

TABLE OF CONTENTS

Check-In 1.0

19

Check-In 1.0

20

Is:

Check-In 1.0

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• Not Battery-Friendly

Is:

22

GPS or WiFi Will

Drain Your

Battery In One

Day or Less

Check-In 1.0

23

• Not Accurate

• Not Battery-Friendly

Is:

24

Today, Your

Check-In Can Be

“Off” By 500

meters or more!

…

25

… And Usually

Fails Indoors …

Check-In 1.0

26

• Not Accurate

• Not Battery-Friendly

• Prone to Fraud

Is:

27

Check-In Fraud Is Common

Check-In 1.0

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• Without A Killer App

• Not Accurate

• Not Battery-Friendly

• Prone to Fraud

Is:

• On average, about one per week for each

Foursquare user* …

*Source: Mashable,

June 2010 29

Check-ins Today Are Infrequent

–

30

Check-In Fatigue Syndrome (CFS)

Check-In 1.0

31

• Inconvenient

• Without A Killer App

• Not Accurate

• Not Battery-Friendly

• Prone to Fraud

Is:

32

Check-In 1.0 Is High Maintenance

• NO automatic check-in

• User must consciously invoke an app

with each use

• Low quality location granularity …

requires significant manual intervention

33

High Power

Draw

Battery Life is Key To Happiness

= =Frequent

Battery

Recharges

34

In Summary

Check-ins today

are novelties with

limited long-term potential

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in 2.0” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps

35

TABLE OF CONTENTS

Massive battery drain 20-30 meter location granularity

Relies on imprecise geo-fencing approach

Easily hacked

Enables “fake” check-ins

Line-of-sight only. Fails indoors and in urban areas

Not portable to smartcards, keyfobs, most other non-phone devices

1-way signal, not encrypted

Can often require up to 30 seconds to “lock on” to

GPS

• 250-1000 meter

location granularity

• Requires monthly

carrier subscription

• Not portable to

smartcards,

keyfobs, other non-

phone devices

37

Cellular Location

Major battery drain

10-30m location granularity

Easily hacked, not encrypted.

Enables “fake” check-ins

Fails while moving

Not portable to smartcards, keyfobs, and most other non phone

devices

1-way signal

No global standard for WiFi location

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Wi-Fi

• User must actively invoke application, no background check-ins. Creates

check-in fatigue.

• Major battery drain

• Very poor location granularity

• Ultrasound detection is unreliable in many cases, e.g. carrying phone while

inside purse/jacket

• Not portable to smartcards, keyfobs, other non-phone devices

• Easily hacked, not encrypted. Unsecured signal creates phantom

check-in risks

• 1-way signal

• Proprietary, no global standard for ultrasound location 39

Ultrasound

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps

40

TABLE OF CONTENTS

“A better solution would be for the various services to adopt a

standard for places.”-- MC Siegler, TechCrunch

41

Check-ins Require a Global Wireless

Standard Beyond GPS!

42

For solution

providers:

ensures

interoperability

across a diverse

array of devices and

markets

For end users:

Solutions that are

easier to use and

less costly than

proprietary

solutions

For advertisers:

A common metric for

auditing advertising

spend

Multiple Benefits Of A

Check-In Standard

Yet without a Check-in Standard

• Merchants would be required to deploy and

maintain multiple, incompatible check-in

technologies

• Handset and other device vendors will have

to deploy multiple check-in technologies on

their devices

• Customers would feel pain

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In short, a huge revenue opportunity will be STALLED

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in 2.0” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps

44

TABLE OF CONTENTS

• A huge audience

• Repeated, ongoing check-ins

• Repeated, ongoing merchant participation

• Reliable, “fraud free” targeting

• Auditable results

• Surmountable privacy concerns

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To Invest in Check-in 2.0, Local Advertisers Will

Require:

46

“What is not going to happenIn 2011”, Dec 17, 2010

It‟s Not Just About Phones

• Do not limit check-ins to mobile phones!

• Include smartcards, keyfobs, tickets, tablets,

watches, laptops …

47

Allow end users to “check in” using the form factor that is most familiar and convenient to them …

To Attract A Large Audience

– Automatic/background check-in option

– Many device options

– No setup or maintenance hassle

– Low or zero incremental cost

48

To Encourage Frequent Check-ins, Make It

Reeeeeaally Easy For The Customer

49

And While The Standard

Should Enable Check-ins …

50

… What About

Checking Out?

51

Check-in 2.0 Should Include

“Check Out” Capability!

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

52

Requirements For A Standard

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

• Enables “background location”

so end user doesn’t need to

“do” anything when entering a

“place”

• Users can continuously share

where they are with friends or

merchants

• Allows users to “passively”

check-in and check-out without

invoking an application

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Requirement #1: Automatic

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

54

Requirement #2: Location Precision

• Must be accurate indoors and

in urban areas

• Locates customers with

precision of a few feet

• Prevents “fake” check-ins

• Not impacted by location of

the device (e.g. in purse or

wallet)

• Minimal impact to a smartphone

battery … no more energy than

a phone’s LED “message

waiting” light

• Multi-year battery life for

very small form factor devices

(e.g. smartcard, keyfob)

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

55

Requirement #3: Battery-Friendly

• Allows check-ins while the

customer is moving, i.e.

customer does not have to

“stand still” to check in

• In the future, allows the

customer to check-in to a

moving object (e.g. Conan

O’Brien’s blimp)

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

56

Requirement #4: Low Latency

• Not limited to a single

device type (e.g. smartphones)

but can be used in a variety

of consumer devices including

smartcards, keyfobs, access

control badges, etc.

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

57

Requirement #5: Cross-Platform

• Minimal impact to smartphone

bill of materials

• Minimal impact to smartcard

or keyfob bill of materials

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

58

Requirement #6: Inexpensive

• “Out of the box”

interoperability

• An actual global, ISO

standard. NOT proprietary

• Globally available frequency,

single SKU

• Low total cost of

ownership

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

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Requirement #7: Easy to Implement

Automatic

Location Precision

Battery-friendly

Low latency

Cross-platform

Inexpensive

Easy to implement

Secure

60

Requirement #8: Secure

• Avoids risks of spoofing or

fraud

• Allows user to

configure/turn off automatic

check-ins as desired

• Allows full public key

encryption, if desired

• Accurate

• Automatic

• Auditable

• Low Power

• Multi-device

• Standardized

• Secure61

A Comparison

Check-in 1.0 Check-in 2.0

• Inaccurate

• Not Automatic

• Subject to fraud

• Power Hog

• Limited to phones

• Non-standardized

• Not secure

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in 2.0” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps

62

TABLE OF CONTENTS

63

• DASH7 is the ISO 18000-7 Standard for Active RFID

• Uses a globally available frequency – 433.92 MHz

• Works in tandem with 13.56MHz Near Field Communications

• Long Range

• High Precision

• Multi-year battery life

• Low Cost

• Low Latency

• AES 128 Crypto Support

A Global Standard That is

Uniquely Suited for Check-In 2.0

GPS Cellular

Triangulation

Dog Whistle

Automatic Location Yes Yes No Yes

Indoor/Urban Location

Precision

No No No Yes

Battery friendly No No No Yes

Low latency No Yes Yes Yes

Platform agnostic No No No Yes

Inexpensive No No Yes Yes

Easy to implement Yes Yes Yes Yes

Secure No Yes No Yes

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Feature Comparison

Manual

Presence Location Fidelity

Check-

in M

ethod

Vicinity

Auto

Automatic &

Authenticated

GPSCellular

& WiFi

65

Ultrasound

Check-in Technology Comparison

DASH7 Is “Piggybacking” the Introduction

Of 13.56MHz NFC in Smartphones, Smartcards,

And other Devices

With the addition of a two-cent circuit to current 13.56 MHz NFC silicon, all NFC-

enabled smartphones become DASH7-enabled

1. DASH7 operates at 433.92 MHz worldwide

2. NFC operates at 13.56 MHz worldwide

3. 13.56 x 25 = 433.92 … i.e. DASH7 operates at the 5th harmonic above NFC

4. DASH7 utilizes the same antenna and nearly the same silicon as NFC, apart from a single two-cent circuit

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DASH7‟s “Goldilocks Zone”

68

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Pioneering Check-in 2.0 Product

Novitaz DASH7 Loyalty Card

Includes:

• ISO 7810 Compliant Smartcard

• Integrated 433 MHz DASH7

radio

• Thin battery

Existing Loyalty Card

What a guest purchased

Identifies cross-sells

Mass Marketing

Generic rewards based on

spend

Check-In 2.0 powered Loyalty Card

What a guest is interested in purchasing

Identifies new and lost opportunities

In-Store Presence Marketing

Loyalty based on understanding in-store

browsing behavior

Enhanced Loyalty

Enhanced Loyalty

71

• Requires an ecosystem of suppliers, systems

integrators, and end users like the DASH7

Alliance (www.dash7.org)

• Requires readily available and inexpensive

silicon and thin batteries

72

Bringing Check-in 2.0 To Market

1. Excuse Me, But What Is A Check-In?

2. These Check-ins Today Are So Lame!

3. Let’s Compare Current Check-In Technologies

4. Why We Need A “Check-in 2.0” Standard

5. What Should The Standard Require?

6. A Modest Proposal for A Global Check-in Standard

7. Next Steps

73

TABLE OF CONTENTS

• Join the new DASH7 smart card working group

– Encompasses a range of interests including SIM, NFC,

mobile telephony, credentials, ticketing, more …

• Attend the DASH7 Alliance Annual meeting in San Diego on

February 1, 2011 http://ht.ly/3xXGb

• For more information, visit www.dash7.org or email our

executive director, Paul Ritchie, at [email protected]

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Join The Fun

Google, Foursquare, Facebook, Loopt, Gowalla, DASH7, NFC, NXP, Infineon, ST Microelectronics,Orange, KT Telecom, Vodaphone, AT&T, Microsoft, Motorola, Nokia, RIM, Apple, Shopkick, NTT, SK Telecom, LG, Samsung, China Telecom, Hutchison, Melexis, Semtech, Texas

Instruments,

G&D, Gemalto, Oberthur,

Smartrac, Best Buy, Target,

Starbucks, NFC 2.0, Twitter,Skout, Yelp, Ericsson,

Huawei, ADT, Assa Abloy,

HID, Sony, Panasonic, HTC,

TSMC, EM Micro, Nordic Semiconductor, Austria Microsystems, IBM, Accenture, EDS, HP