Technology exploration and assessment

ISYS1186 The Global Network

GROUP ONE Indika Wickramanayake (S3316580) Phuong Nguyen (S3279008) Trine Christensen (S3447986) Rui Yu (S3426835) Kai Guan (S3407535) Qing Zhu (S3316294)

ISYS1186 The Global Network Assessment 2: Technology exploration and assessment

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Contents Abstract................................................................................................................................. 1

Introduction ........................................................................................................................... 2

Target users .......................................................................................................................... 2

MagicBands technology ........................................................................................................ 3

Benefits derived from technology to consumers .................................................................... 3

Benefits derived from technology to business ....................................................................... 4

Potential issues ..................................................................................................................... 5

Recommendations ................................................................................................................ 6

References ........................................................................................................................... 6

Abstract The MagicBand is one of the latest product of Disney Company by using potential RFID

technology to gain control over the level of engagement they have with customers and

connect with social media, which may revolutionize how we use the security passes and entry

tickets. It has been developed and currently use by Walt Disney World pass holders and

guests staying at select Walt Disney World Resorts. The MagicBand can be used as an

alternative to traditional entry passes/ticket for events (e.g. theatre, gaming zones, themes

parks) or security key (e.g. door keys, swap cards) for hotel rooms, offices etc. Users can just

swipe the MagicBands against the sensors or any appropriate devices to gain access to

relevant areas. MagicBands are water resistant, very durable and easy to wear around your

wrist. In this report we will discuss how this technology benefits customers and how it can be

utilized in different industries to enhance the efficiency and simplify the current business

processes. MagicBands are currently at the implementation and trial stage, where developers

still trying to find out potential threats like privacy and security issues with this new

technology and recommendations to address those issues.

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Introduction

The number of mobile-connected devices will surpass the total number of consumers,

globally, and by 2017, there will be nearly 1.4 mobile devices per person expected.

Understanding the rapid growth of smartphone users and its affect to e-business by mobile

payment, Disney is launching the MagicBand by using Radio-frequency identification

(RFID) technology, which is the most growing to improve in technology and cost decline of

smartphones (Bendavid, 2010).

The use of RFID is to wirelessly transmit data from cases of merchandise. In recent years

RFID emerged as powerful and disrupting technologies with hype and deep implications for

organizations B2B E-Commerce, it is still an emerging phenomenon with a relatively rapid

speed of adoption to spanning over industries in different continents. It has been proven

between 2008 and 2012 are of 23.2 percent with a RFID market size for 2008 of $3.7 billion,

$4.04 billion for 2009, and $4.7 billion in 2010, by 2012, it had valued at about $8.42 billion

(Bendavid, 2010), with expected the annual growth of over 12 percent until 2016 (Low,

2011).

"Businesses must consider upgrading their existing infrastructure, such as network and

storage, to enable RFID systems to work seamlessly, as opportunities will proliferate if a

more robust infrastructure is in place." says Frost & Sullivan Research Analyst Susan

Sahayan (Low, 2011). With the experiences in Walt Disney World Resort and having

positive feedbacks, RFID is continuing to be used as a way to expand, link and connect with

Disney’s customers. (Smith, 2007)

Target users Disney is one of the largest multinational media business in the world. By using multi-

segment targeting such as geographic (Europe, Japan, India, and of course the United States),

demographic (people of all ages; whether it is a child, teen, or parent which refer to all age,

genders, income and their life cycle), and psychographic (which is intended to satisfy the

parents' wants as well as their children's, while the child is browsing through the toys, the

parent is browsing through the Home Decor section). Disney’s core constituency is the urban,

median-income family who wants to have fun. ((Bui, 2012)

By understanding the target market inside out, the new coming MagicBands is a highlight in

product and apply potential technology of social market into their business which is based on

delighting the customer and it believes in continually improving its products and service

offerings.

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MagicBands technology The MagicBand carries a small data chip inside, which can memories each person’s

information and it can transmits a 2.4 GHz signal to an indoor wireless infrastructure. The

band has no on off switch and is powered with a non-replaceable coin cell (Brown, GS.

2012). At the same time, the MagicBand also has a Radio-Frequency IDentification (RFID)

chip, which is a wireless system, used for transfering data through radio frequency

electromagnetic. (Want, R. 2006) That means people do not need to put up their hands and

touch the machine with the MagicBand at the entrance. What the consumers need to do is just

walk towards the entrance as normal, and the MagicBand will autoly transfer the individual

personal data to the entrance gate which may be 20 feet away. On the other hand, the

Disneyland has a huge database, which carries each person’s personal information, such as

name, photo and ID numbers; tickets information (which tickets he already bought); and also

the playing information (where he already visited and where not). People could check the

information through the internet and make a perfect plan for the next travel. Furthermore,

because every Disneyland’s data could be shared through the internet, people can use this

MagicBand in the Disneyland on matter they are in the American Disneyland or Hong Kong

Disneyland. (Brown, GS. 2012)

Figure 2: Disney-Magic Band

When people walk to the entrance with magic band, the RFID chip inside the magic band will

transmitting signal to the induction machine (see Figure 2). After this machine, which is

connected to the Internet and the Disneyland database, receive the signal, each person’s

individual information will be downloading from the database. With this individual

information, this machine could identify which magic band has paid for the entrance and

which is not. After identifying, this machine will show different colours to let people know

whether they can do inside or not. At the same time, the staff of the Disneyland who carry a

small displays and stand nearby the induction machine can also receive a photo when people

touch their magic band. This photo could help the staff to make sure that the magic bands are

using by their real owner. (Cha, B. 2013)

Benefits derived from technology to consumers There are great deals of benefits, which are derived from MagicBands to

consumers. MagicBand is a multifunctional tool for consumers who are using in Walt

Disney World. Firstly, MagicBand can serve consumers to unlock the doors of hotel rooms in

Disney Resort hotel, which act as a “room key” and can become consumers’ tickets for

entering theme and water parks. Becoming a very convenient way to adorn for consumers

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only need to wear around their wrists (Walt Disney World, 2013). Fourthly, MagicBand can

also serve consumers to check in at FastPass+ entrances by using MyMagic+ account will

allow consumers of a new app and Web site that is called My Disney Experience to pre-select

three FastPasses before leaving homes such as character meet-and-greets, seating for parades

(Barnes, 2013). Moreover, MagicBand can connect Disney PhotoPass images to consumers’

account (Walt Disney World, 2013). Besides, it can also be stored and encoded with all kinds

of consumers’ details for interacting with Disney employees. For example, generally, Disney

employees only say, “Hello” to the consumers when they enter the theme and water parks. In

contrast, Disney employees can clearly see consumers’ information when the consumers

touch their MagicBand to the machine of entrance. Hence, the Disney employees can call

consumer’s name such as “Hi, Angie,” It is necessary and beneficial to improve the quality of

service in Walt Disney World (Barnes, 2013). In addition, the MagicBand system will not be

concentrated to use by consumers. Consumers can select in an online options menu. With the

online options menu, it will provide different controls such as “Would you like Disney theme

park employees to understand your name?” “Would you like Disney theme park to provide

you special offers when you go home?” The consumers can select these different controls in

an online option menu so that the employees can understand the consumer's requirement

(Barnes, 2013). The MagicBand has a variety of attractive and popular Disney characters and

icon such as Tinker Bell, Mickey Mouse ears, rhinestone Minnie heads, Phineas & Ferb,

Sorcerer Mickey, Mickey Ice Cream Bars, etc. The purpose of different MagicBand designs

can attract the consumers to proudly use and display as their favourite MagicBands,

especially for the kids (Mancini, 2013).

Benefits derived from technology to business The MagicBand has boosted the guests spending because the technology makes it easier and

more fun to spend money. Disney has be testing the wristband in December 2012 at their

park at Florida resort with great results. The wristbands, which serves many functions for the

guest by being linked to the customer’s own database, is fast to use while the technology

allows the guests to easily purchase items in Disney World's hotels, four theme parks and

water parks in Orlando just by putting their wristband on a sensor. The wristband does not

only enhance retail transactions and the fun factor for visitors, it also helps with crowd

control and to reduce the time guests spend in queues by allowing them to book rides and

restaurants in advance (Buss, D. 2013).

Jay Rasulo the Chief Financial Officer stated in an interview on May 7th, 2013, that by

getting guests to plan ahead, they're less likely to be enticed by other parks and tourist

offerings. He goes on by saying they have known for a long time that getting their visitors to

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make decisions about where they spend their time before they leave home is a powerful

driver of visits per guest. "So if we can get people to plan their vacation before they leave

home, we know that we get more time with them. We get a bigger share of their wallet. […]

And the second thing is what happens to purchases when they become much more

convenient, and you don't spend time queuing up for a transaction, queuing up to get in the

park, and you actually have more time to enjoy the entertainment and, subsequently, spend

more money doing things — other than standing in line, which, of course, you can't spend

any money while you're doing that." (Businessweek, 2013).

Together with all the above; Disney will gain deep insight into how guest uses the resorts by

tracking the guests’ touch points and using the information to create tailored marketing

programs and generate additional revenue. The MyMagic+ system is completely under

Disney's control while no third party is involved and is thereby leading the way for mobile

wallet technologies, which others would want to follow. The system is maintaining the

customers trust with stringent data privacy policies, which is a core part of a mobile wallet

strategy. The well-designed mobile wallet solution extends the customer engagement and the

MagicBand handles the importance of a physical token in building customer relationship

(Clark, M. 2013).

Potential issues As James Mullock, head of privacy and data law at Osborne Clarke said "there's nothing

inherently illegal with the use of RFID chips so long as this and other data protection law

obligations – such as keeping the information secured – are met. Through openness they need

to win the confidence of their customers, and therefore their consent to being tracked”, the

MagicBand’s RFID technology security and privacy which concerned Disney have been

approved. The reason for the approval is that the bands contain only a randomly assigned

code rather than personal information, and they are securely linked to an encrypted database.

In case of lost or stolen, the bands can be disabled remotely and the associated credit card

cannot be accessed since a PIN code is required to authorize any purchases. Parents can also

place restrictions on their kids’ spending amount or completely disable that ability on through

MagicBands. Furthermore, the bands are not GPS-based devices and do not enable

continuous collection of location signals. Instead, MagicBands utilize both short and long

range readers located throughout the resort to make use of their functionalities (Marsden,

2013).

MagicBands have been tested with Disney employees and limited number of guests for

approximately two years with MyMagic+, the updated My Disney Experience website and

mobile app which allow visitors to plan various parts of their trips, make changes to

restaurant reservation and coordinate plans with friends and family, etc. Beside the benefits,

there are still several issues arose from trial period such as crashing in MagicBands system,

the occasional inability to purchase food and the delay in accessing rooms at the resort when

multiple bands are used (Mancini, 2013).

In addition, there remains a large portion of IT infrastructural work to deliver better customer

experiences of new technologies such as FastPass+, an attraction planning and reservation

system and Disney-wide Wi-Fi coverage project.

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However, while the advance planning might be a plus for some, it is likely to be a notice for

many others. A large percentage of Disney visitors are on non-routine basis and these guests

may feel unwelcome without FastPass+ as they need to queue for rides or wait for tables at

restaurants since the reserved spots are already allocated to register much smaller early

adapter FastPass+ users (Cha, 2013).

Acknowledging that no security measures are impenetrable, Disney promises that it is trying

to be more efficiently appealing to customers by paying more attention to the security,

integrity and confidentiality of personal information as well as increasing efforts in protecting

guest information from unauthorized access, disclosure, use and modification with technical,

administrative and physical security (World, 2013).

Recommendations This technology can be utilized as a security pass where users can have one access pass to

multiple security access points (e.g. hotel room, car door).

This can be used in supermarkets where user can swipe their MagicBand on price tag

when they take items from the shelves and at the register all they have to do is swipe the

MagicBand and walk out of the shop. MagicBand is link to their bank account and

payment will be directly deducted from their account. This will help to improve the

efficiency of the checkout process at the super markets.

Adding a display screen to this MagicBand can increase its potentials because then it can

be used to display information.

Online system or support line where users can go in and activate or deactivate their

MagicBand in an event like loss, stolen or damaged.

References BUSS, D. 2013. Disney's MyMagic+ Proves to be a Boon for Business at Parks [Online].

Available:http://www.brandchannel.com/home/post/2013/07/12/Disney-MyMagic-

Success-071213.aspx [Accessed 10 September 2013].

CLARK, M. 2013. Disney MyMagic+ sets a new bar for mobile wallet design [Online]. NFC

World. Available: http://www.nfcworld.com/2013/03/12/323001/disney-mymagic-

sets-a-new-bar-for-mobile-wallet-design/ [Accessed 11 September 2013].

BUSINESSWEEK. 2013. On the Call: Disney CFO explains MyMagic+ [Online].

Businessweek: Bloomberg Businessweek News. Available:

http://www.businessweek.com/ap/2013-05-07/on-the-call-disney-cfo-explains-

mymagic-plus [Accessed 9 September 2013].

BROWN, G. S. 2012. Disney Parks Reportedly Eying 'Magic Band' for Customer Entry

[Online]. ABC News: ABC News. Available: http://abcnews.go.com/Travel/disney-

world-reportedly-eying-magic-band-customer-entry/story?id=17442502 [Accessed 10

September 2013].

WALT DISNEY WORLD. 2013. Unlock the Magic with Your MagicBand or Card [Online].

Disney: Disney Parks & Travel. Available:

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https://disneyworld.disney.go.com/plan/my-disney-experience/bands-cards/

[Accessed 26 August 2013].

BARNES, B. 2013. At Disney Parks, a Bracelet Meant to Build Loyalty (and Sales) [Online].

The New York Times. Available:

http://www.nytimes.com/2013/01/07/business/media/at-disney-parks-a-bracelet-

meant-to-build-loyalty-and-sales.html?pagewanted=all&_r=1& [Accessed 27 August

2013].

MANCINI, N. 2013. Disney’s MagicBand Accessories…Revealed! [Online]. WorldPress:

DIS. Available: http://blog.wdwinfo.com/2013/06/20/magicband-accessories-

revealed/ [Accessed 26 August 2013].

CHA, B. 2013. Tomorrowland Today: Disney MagicBand Unlocks New Guest Experience for

Park Goers [Online]. All Things Digital Dow Jones & Company Inc. Available:

http://allthingsd.com/20130529/tomorrowland-today-disney-magicband-unlocks-new-

guest-experience-for-park-goers/ [Accessed 5 September 2013].

MANCINI, N. 2013. Disney MagicBand News for Annual Passholders [Online]. DIS:

WorldPress. Available: http://blog.wdwinfo.com/2013/04/06/disney-magicband-news-

for-annual-passholders/ [Accessed 5 September 2013].

MARSDEN, R. 2013. Mickey is watching you: Does Disney's new 'Magic Band' infringe on

consumer freedoms? [Online]. UK: The Independent. Available:

http://www.independent.co.uk/life-style/gadgets-and-tech/features/mickey-is-

watching-you-does-disneys-new-magic-band-infringe-on-consumer-freedoms-

8503823.html [Accessed 5 September 2013].

WORLD, W. D. 2013. My Disney Experience [Online]. California, USA: Walt Disney

World. Available: https://disneyworld.disney.go.com/faq/my-disney-

experience/privacy-policy/ [Accessed 10 September 2013].

BUI, D. 2012. The Best of Disney’s Marketing Strategies [Online]. Saleschase.

Available:http://www.saleschase.com/blog/2012/05/14/best-disneys-marketing-

strategies/ [Accessed 10 September 2013].

WANT, R. 2006. An Introduction to RFID Technology. RFID TECHNOLOGY.

SMITH, I. 2007. The Growing Importance of RFID around the World [Online]. BCS.

Available: http://www.bcs.org/content/ConWebDoc/39239 [Accessed 16 September

2013].

BENDAVID, Y. 2010. R D na led B B - o erce Technologies and A lications.

lo al AM niversit d ec Montr al anada A AD M A R D

Canada.

LOW, D. J. C. 2011. Global RFID Market Thrives as Solutions Drive Efficient and

Intelligent Businesses [Online]. Frost & Sullivan, the Growth Partnership Company:

Frost & Sullivan, the Growth Partnership Company. Available:

http://www.frost.com/prod/servlet/press-release.pag?docid=240308102 [Accessed 9

September 2013].