Customer profile

Company: KIOSK Information Systems

Industry: Self-service kiosk technology

Country: Louisville, CO (USA)

Website: www.kiosk.com

Business needWin the kiosk business of the world’s second-largest cell phone provider, which had been disappointed by hardware failures and service problems with other kiosk vendors.

SolutionKIOSK Information Systems, a Dell OEM Solutions Channel Partner, helps implement a reliable bill payment kiosk solution and comprehensive service plan to win the new business.

“Dell has a much lower failure rate than other computer vendors we have used, and Dell reliability has given our newest customer confidence that they made the right choice.”Tom Weaver, Chief Marketing Officer, KIOSK Information Systems

KIOSK Information Systems and Dell team up to win new business and reduce kiosk downtime by 50 percent

Benefits

• New kiosk design reduces system downtime by 50 percent compared with previous suppliers’ systems

• Cuts inventory costs for KIOSK Information Systems by approximately 15-20 percent

• Decreases service response time by 45 percent by integrating Dell into the customer service-level agreement development process

• Ensures timely delivery using the Dell “just-in-time” delivery model

• Wins a major new customer representing over US$15 million in revenue

• OEM Solution

The KIOSK team knows that having a reliable computer at the heart of each kiosk is essential for keeping its customers in business. “Kiosks generate millions of dollars in revenue for our customers, so they can’t afford downtime,” explains Tom Weaver, chief marketing officer at KIOSK. “If the computer in a kiosk goes down, our customers can lose thousands of dollars per hour.”

Downtime was plaguing a major telecommunications company that was having reliability problems with another kiosk vendor. “The telecom company, one of the world’s largest cell phone providers, had already tried two other kiosk vendors,” says Weaver. “The first one failed to provide a timely service response. Computers from the second had a very high failure rate. In both cases, the telecom experienced costly downtime.”

Located in the telecom’s retail stores, the kiosks are important because they enable cellular customers to pay their monthly bills, check upgrade status, and review service plan information without waiting in line at the counter. The kiosks bring in revenue and boost counter sales by allowing store personnel to focus on selling new phones and subscriber services, rather than managing routine bill payments.

But downtime had been high, cutting into store earnings, and it was clear that the telecom company needed a new solution. The telecom had been using Dell desktop computers and servers for some time, but had not considered Dell a source for in-store point-of-sale technology. The Dell team learned of the kiosk problems and teamed up with KIOSK Information

Systems to potentially win the in-store technology side of the account. To win the new business, the Dell and KIOSK team needed to present a high-caliber solution that would enable the self-service kiosks to make a stronger profit contribution to the telecom’s stores. Computer reliability had to be excellent, and fast service response was essential if a problem did occur.

Platform stability was another important requirement. KIOSK needed to know that the specified computer wouldn’t change during the manufacturing cycle. “Using alternate suppliers, we’ve had the experience of placing an order for 500 computers and then seeing 250 of them arrive with a different configuration because the computer manufacturer made a sudden change,” says Weaver. “That can force delays and added costs tied to recertifying customer software to run on an altered configuration.”

Finally, KIOSK required fast, flexible computer manufacturing and delivery

They are an essential part of modern life. With them you can buy tickets, print photos, place orders, and pay bills. They are kiosks—self-service terminals that whisk customers through lines at airports, supermarkets, and amusement parks. KIOSK Information Systems is leading the way as one of the largest producers of kiosks globally, with more than 100,000 machines currently deployed.

“Combining Dell’s reputation for reliable technology with KIOSK’s self-service solution expertise definitely positioned us as the most credible OEM solution.”Abby Boes, Senior Account Executive, KIOSK Information Systems

Technology at work

Services

SLA design and service performance monitoring

Hardware

Dell™ OptiPlex™ 780 computer

Dell E170S 17” flat panel monitors

Software

Proprietary customer software

to win the new business. “If we won the account, we would have to deploy the kiosks quickly but not all at once,” says Weaver. “We needed a computer supplier that could provide ‘just-in-time’ delivery and keep pace with our weekly field installation rate until the order was completely fulfilled.”

KIOSK partners with Dell OEM

The KIOSK team partnered with Dell OEM without hesitation. “The computer is easily the most crucial component in the system configuration,” says Weaver. “Over the years, we have used Dell computers in the vast majority of our kiosk solutions, so we already knew that Dell computers are reliable and the company provides great service. Selecting Dell is essentially a foregone conclusion within KIOSK’s engineering and supply-line management teams.”

Dell understood the importance of change management for KIOSK. “As we’ve worked with the Dell team over time, they have consistently demonstrated in-depth knowledge of the unique requirements of the OEM marketplace,” says Weaver. “For example, the Dell OEM program is designed to give us a heads-up well in advance of any revisions to the computer, providing more than enough time to adjust our process accordingly. That platform stability makes Dell the right choice for the most efficient supply chain.”

The Dell supply chain and inventory management capabilities also fit the KIOSK requirements for a phased installation process. “The Dell team agreed to incremental deliveries of the computers that kept pace with the customer’s installation schedule so we weren’t forced to absorb the inventory before it was needed.” says Weaver.

KIOSK and Dell team up to win new business

Dell and KIOSK representatives met with the telecom company together. As a member of the Dell OEM Advantage program, KIOSK can jointly engage customers in need of a kiosk solution—providing additional reach to KIOSK, more visibility for their kiosk solutions, and proliferation of industry standards through Dell high-performance technology.

The meeting was a success. “We won the account, and Dell was a big part of

the positive outcome,” says Abby Boes, senior account executive at KIOSK. “Even though KIOSK is a leader in our industry, we’re not a household name. Dell is a well-known and respected supplier with strong customer credibility. There is no question that partnering with Dell on this account gave the customer added confidence in the solution.”

Dell OptiPlex computers and LCD screens integrate easily into kiosks

Based on its long-standing relationship with Dell, the KIOSK team again selected the Dell™ OptiPlex™ 780 as the computer for the new platform. The standards-based Dell computers are easy for KIOSK to integrate with other hardware components, including the credit-card readers, bill acceptors, and printers used for the kiosks. The KIOSK team also chose LCD screens from Dell. “The screens from Dell OEM are designed for embedded applications like kiosks, so they stand up to heavy use and temperature extremes,” says Weaver. “That makes them a great match for the reliable Dell computer systems.”

When it is time to manufacture the kiosks, Dell ships the OptiPlex systems and LCD screens to the KIOSK team, which then integrates the total component set and loads the application software. After KIOSK ships out the finished product, Dell and KIOSK work together to provide integrated customer support for the new telecom customer.

KIOSK and Dell construct winning SLA, speeding response by 45 percent

While price and delivery are always key, field service and aggressive response times were a critical part of winning this telecom account. By leveraging the Dell sales representative’s account knowledge and service-level agreement (SLA) contract experience, KIOSK and Dell worked together to quickly construct an SLA that was responsive, aggressive, and achievable. Boes adds, “In this deal, it was imperative to propose a total solution which directly resolved field service problems that were undermining the client’s self-service project profitability. Dell and KIOSK won the business by creating a service proposal that promised and delivered a 45 percent improvement in field service

“We see tremendous value for our clients in the OptiPlex XE because we do more outdoor deployments than anybody else in the industry.”

Tom Weaver, Chief Marketing Officer, KIOSK Information Systems

response.” Additionally, the redesigned equipment on Dell’s computing platform has substantially reduced the base failure rates, resulting in a much more reliable and profitable deployment.

Dell OEM helps reduce kiosk downtime by 50 percent

By adopting the Dell hardware–based kiosk, the telecom company has reduced downtime by approximately 50 percent. “Dell has a much lower failure rate than other computer vendors we have used, and Dell reliability has given our newest customer confidence that they made the right choice,” says Weaver. “The reduced downtime enables our customer to minimize sales disruptions, reinforce its reputation as a premier service provider, and retain thousands of dollars of in-store revenue that might otherwise be lost. Selecting the best technology to support maximum system uptime will ultimately provide the customer with the lowest cost of ownership.”

“Just-in-time” delivery saves approximately 15-20 percent in inventory costs

With Dell building the OptiPlex 780 computers and LCDs to order and inventorying them at the Dell factory, KIOSK avoided the expense of carrying costs and dedicated warehouse space for the computers. “We estimate we saved at least 15 to 20 percent in carrying costs because we weren’t stuck with warehousing huge pallets of computers and LCDs in advance,” says Boes.

For the telecommunications retailer account, KIOSK needed to install 125 kiosks per week. Dell OEM provided the computers and LCD screens on an

as-needed basis so KIOSK could get them into its manufacturing line and out into the field on schedule. “Dell had the flexibility to match our installation rate, and that really reduced our costs,” says Boes. “In a nationwide deployment with thousands of kiosks, JIT delivery is a substantial element in meeting the overall cost and delivery goals.”

The KIOSK team also appreciates the fact that Dell OEM can quickly deliver even larger orders when needed. “We perform huge nationwide deployments,” Weaver explains. “We’ve done jobs where we have installed 3,000 units in less than six weeks. We are confident that we can produce and install more units than anybody else in the industry, and the ability of Dell to get us the equipment we need when we need it is a key component of our scalability and agility.”

KIOSK standardizes on Dell platforms

Based on its positive experience with Dell OEM, KIOSK uses Dell computers for the vast majority of its kiosks. “We use Dell OptiPlex computers in virtually every kiosk we build now. Plus, Dell LCD monitors are our standard display,” says Weaver. “In the past, we considered integrating white boxes or generic systems. But when you assess the financial impact of service requirements, replacement parts, and the timely delivery of new systems, the cost of ownership is much higher with that strategy. Standardizing on Dell platforms enables KIOSK to provide exceptional field reliability, while simultaneously minimizing product lead time and service costs.”

The KIOSK team is now evaluating the Dell OptiPlex XE computer for kiosks in harsh environments. The OptiPlex

XE offers long-term stability, remote management, and robust purpose-built features that enable it to operate at up to 55°C and in high-dust environments. “We see tremendous value for our clients in the OptiPlex XE because we do more outdoor deployments than anybody else in the industry,” says Weaver. “We can also use them in airports, train stations, and other heavy-duty locations. Plus, the three-and-a-half-year life cycle gives us great stability so we can avoid expensive recertification costs.”

Weaver also likes the remote management features built into the Dell OptiPlex XE platform. “With our customers’ revenue at stake if a kiosk goes down, we’re always looking for ways to boost uptime,” says Weaver. “The OptiPlex XE has an optional integrated watchdog timer with self-monitoring capabilities that can restore a hung system to a working state. We think that will help reduce downtime and also cut the number of in-person visits required by our support personnel.”

Combining strengths to beat the competition

The KIOSK team credits Dell with helping to win and retain the new telecommunications customer, adding to a roster of other Fortune 1000 KIOSK clients. “We were up against strong competition from another major equipment provider,” says Boes. “We won the account by leveraging the best of both companies. Combining Dell’s reputation for reliable technology with KIOSK’s self-service solution expertise definitely positioned us as the most credible OEM solution.”

June 2010. © 2010 Dell Inc. Dell is a trademark of Dell Inc. Other trademarks and trade names may be used in this document to refer to either the entities claiming the marks and names or their products. This case study is for informational purposes only. DELL MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS CASE STUDY. 10008626

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