Information Systems Project - Technology #2

Touch Screens


What Is It?
Touch screens have the ability to detect the sense of touch within the screen area. This technology can easily replace keyboards and mouses on computers, laptops, and lately, phones have started to adopt this new method of input (ie iPhone). It is also used in many everyday items such as an ATM machine.

Examples of New Usage of Touch Screens
iPhone

Apple launched the iPhone in the summer of 2007 and was able to capture the majority of the phone market share in the United States despite having a mid-year launch.

The iPhone has a virtual keyboard on the touchscreen as you can tell by the picture on the left. There are other phones, such as the Motorola A1200, with the touchscreen application, but Apple is the first company to launch products (iPhone and iTouch) with a virtual keyboard on their touchscreen, which has become very popular in the past six months.
Canova Dual Touch Screen Laptop
This laptop is a touch screen notebook created by V12 Design. Canova has the same usage applications as other notebook, but everything is in touch screen (touch screen keyboard).



Nintendo DS
The bottom screen of the Nintendo DS is a pressure-sensitive touchscreen that accepts input from a stylus included in the packaging. It is also sensitive enough to respond to the user's fingers.
This is a relatively new form of playing video games and the Nintendo DS is rather popular worldwide.

Porter's Five Forces Model

Touchscreen technology has become a very popular alternative to a keyboard in various products. Thus, many display manufacturers worldwide have acknowledged this popular and growing trend and have begun to integrate the touchscreen application into their fundamental designs of their products. Since many manufacturers are choosing to integrate touchscreen functionality, the marginal cost of touchscreen technology is usually absorbed into the product that it is incorporated in and is effectively eliminated. Thus, with the popularity and the acceptable marginal costs of this application, there is high competition between the existing manufacturers in the industry. Since touchscreens are only sold as an integration of another product, it could affect the overall product. This can range from phones to video games. Since there is an existing high competition between, for example, the phone industry, touch screens could potentially affect the price for phones, further lowering the price to attract consumers and gain a sufficient market share.

Touchscreen technology is currently in its mature stage. It is currently at the point where its reliability is undeniable. Many consumers have come accustomed to this new technology and are looking for the next new product that features this application. Touchscreen has almost become a requirement for the next big thing in the technological world.

It is not difficult to switch from one company to another when it comes to purchasing a product with integrated touchscreen technology. There are many phone companies, computer companies etc. Since there are so many manufacturer companies, buyers ultimately have power, so prices cannot be raised. Instead, they are usually lowered as time passes due to this fast-paced industry. This strategy is used to attract more customers, hopefully convincing some to move from one company to another because of the lower prices for the relatively same product. Each company's goal is to increase their market share from year to year.


References
Touchscreen.com "How Does a Touchscreen Work?" Available at http://www.touchscreens.com/intro-anatomy.html
Gizmodo "Canova's Dual-Screen Laptop." Available at http://gizmodo.com/gadgets/canova/canovas-dualscreen-laptop-likes-being-touched-233200.php

Information Systems Project - Technology #1

Smart Cards

Also known as:
Chip Card and Integrated Circuit Card (IC)

What Is It:
These credit-card sized chip cards are embedded with a microchip that stores the bearer's information electronically. They are also embedded with integrated circuits which can process information at any corresponding interactive kiosks. Smart cards are widely used around the world, mostly for public transportation.
This form of technology includes the fusion of RFID, biometrics, and integrated circuit to make life a little more easy, especially for cities with a huge population.
However, for the simplicity of this assignment, I will be discussing only two forms of Smart Cards: the HK Octopus card and the HK Identity Card.

There are two types of smart cards: contact and contactless .

Contact smart cards have an actual contact area which is embedded with a chip that makes contact with electrical connectors that can read information from the chip and write information back. The picture of the left (HK Identity Card) is an example of contact card. The golden square on the left is the contact area. This card is the official identity document of Hong Kong and it is issued to person who have the right of abode in Hong Kong Special Administrative Region. These are similar to Britain's national identity card.

These cards prove to be extremely useful for HK residents going through customs at the airport. Instead of waiting in the long line-ups with passengers with passports, HK residents have the privilege of going through self-service control points where the card is inserted in one station and a fingerprint identification (biometrics) is required at the next station; all done so without a customs officer. The Hong Kong Identity Smart Card has information such as traveling history, age, date and location of birth, full name etc, as well as both thumb fingerprints.

Here is a link for a video showing how the machine works at the customs check point (sorry, it's in Chinese; no English version): http://www.youtube.com/watch?v=IT6MPGLGtgc&feature=related

Contact smart cards are the same cards; however, they do not have an actual contact area. The chip in the card communicates with the card reader through RFID induction technology. The card only needs to be in close proximity for a complete transaction. This can be done so without taking the card out of the wallet. Examples of this include McGill's own ID card (for entrance to the Bronfman lab for example) and Hong Kong's Octopus Card, primarily used for public transportation.
As you can tell from the colorful card above (on the right), there is no contact area like the HK ID Card on the left. In Hong Kong, this card stores money and can be used for any public transportation in the HK area, as well as any vending machine, 7-11 locations, and several grocery stores and fast-food restaurants.
These cards can be refilled at the Add Value machines present at every metro station in Hong Kong.


Octopus card reader at MTR (metro) ticket gate

Porter's Five Forces Model

There are a couple of maufacturer's that specialize in this new technology, the smart card system. The Octopus card is manufactured by an Australian-based technology company called ERG Group. This group's innovative smart card system for public transportation was first launched in Hong Kong, making Hong Kong the first city to use this smart card system for public purposes.

The Octopus card was invented and implemented for the convenience of the population. Hong Kong has a population of about 6,000,000 people. Public transportation is very important in this city. They have a very intricate public transportation system consisting of buses, metro (MTR), and ferries, which are used daily by the majority of the population. This smart card was implemented to keep the flow moving since many complained about not having the correct change for buses, which held up the line for the passenger behind them. Due to the convenience of this innovative invention, it is not likely that the HK government or any other manufacturer company will or can implement a similar product that is just as effective. Furthermore, as a HK resident myself, it is unlikely that I will meet someone who does not own an Octopus card. Because of this, few people would be willing to switch to an alternative product. Therefore, the threat of a substitute product or service is very low.

As mentioned before, they are a couple of manufacturer companies that either specialize in smart cards or have started to invest in the smart card systems. I believe that since the smart card is still considered a new invention, there isn't a prominent leading manufacturer company, but there are definetly a few such as ERG Group who have started developing a leading reputation for themselves (with the Octopus card). Since there isn't a dominant company, I assume that there is an intra-indutry rivalry, which can decrease the price of their products. However, since these manufacturer companies for smart cards usually strike a deal with the government, the cost can still remain pretty high.

When it comes to the Octopus card and especially with the HK Identity Card, it is pretty much a requirement to purchase/apply for these cards. It is such a hassle in Hong Kong to not have an Octopus card that even small children have it and of course, it is by law that every HK resident have their HK Identity Card with them at all times for random security checks by policemen. Due to these government regulations and convenience (of the Octopus card), the customers have limited bargaining power. It is safe to assume that the Octopus card is manufactured by just one company and same with the HK ID Card. Thus, if the manufacturer chose to raise their prices (although this is unrealistic since they probably already have a fixed price with the city), customers will have no choice but to go back to that company to purchase their smart cards.


References
http://www.answers.com/topic/chip-card?cat=biz-fin
http://www.erggroup.com/products/index.asp
http://www.smartid.gov.hk/en/