The Octopus Cards Limited Information Technology Essay

The devilfish tantalize game limited In pathation technology Essay octopus wit hold in is wholly owned by devilfish Holdings moderate. The manta ray tease is a contactless smartcard which bath be utilise for ordinary ecstasy and for some former(a)s earnings and nonpayment application. The Octopus smartcard agreement was launched in September 1997. Octopus separate placement is the most popular smartcard system in the world with more than 95% marketplace sh atomic number 18 in Hong Kong. Octopus Cards confine has oer 10m daily transactions and cling to over HK$90m. In this discussion paper, the innovation and creativity technology choose by the Octopus Cards limited in Hong Kong will be addressed.Radical and crossing innovationAwareness of problem and identify securities industry needsBeing an international financial center, Hong Kong has a closely-developed and expeditious national transportation network. The increasing number of passengers has created a need and opportunity for transport operators to develop a more comprehensive ticketing system.Ideas Generation of Octopus CardsIn the past, besides the transportment of coins for fare payment, MTR used magnetic waxy cards technology for single journey and its stored value ticket. However, the magnetic quotation card cards plainly back tooth be used in the MTR. In 1993 the MTR took the lead in reviewing its fare collection technology and it was found out(p) the contactless smartcard technology is the most appropriate political program for future need. In 1994, MTR united with other four major public transport operators namely, KCRC, KMB, Citybus and Hong Kong Yaumati Ferry (HKF) to form a roastt venture community named Creative Star peculiar(a) (later as Octopus Cards Limited in 2002) to oversee the contactless smartcard systems growth and implementation. (Ref accompaniment I)Octopus Technology-Product innovationThe Octopus Cards is manufactured by Sony. It has a bui lt-in IC chip and smoke communicate with divergent fare processors through the use of card reader/writer. User obviously holds the Octopus Card over a reader after consultation a Dong sound, the correct fare amount will be deducted from the card automatic aloney. The features of Octopus Cards are convenient and fast, secure and reliable, efficient and accurate, cost saving, contactless, multi- physical exercise, easy reloading, and domiciliate be applied on discounts/ loyalty programmes.The reasons for Octopus Cards successOctopus card fulfills the Cooper and Kleinschmidt (1991) one-third key factors for innovation success result unique feature, proficiency of predevelopment and market needs (Szeto R. Cheng E., From Creative People to innovational Organisations, 2010, Pg 157). The confederacy as well does well on below reciprocal Ventures with other-synergies effectNew technology is often risky and when the cost of entry into a new market or the cost of a new product so unds too large, the s recognises become too high for a single organization. (Szeto R. Cheng E., From Creative People to Innovative Organisations, 2010, Pg 135)Use Co-operation strategies lead to the success of Octopus. When the MTR management developed the payment system, they co-operated with other transport operators rather than self development of own payment system. some other benefit from joint venture was widen the chore network. Octopus system technology allows passengers to travel across multiple public transport modes apply one single card. With wide system coverage and support for the public transport operator, Octopus system becomes popular and gains fast acceptance to public. severalise the market needs and consumer behavior.In previous years, the consumer only quite a little use credence card and EPS as an electronic payment tools. However the credit card and EPS cannot be used for elfin amount of payment. Moreover the credit card company has to review the applica nt credit status originally approval. Octopus Cards can tackle these market loopholes.Most of passengers are not willing to carry lots of coins, with the advantage of Octopus Cards, it provides a convenient way to them. With its security features, same as store value card, the customers are more willing to use Octopus Cards to obtain small value things. In addition, the contactless design also provides convenience to passengers without withdrawing cards from wallets.Innovation and multi usage functionOctopus Cards IC chips can storage difference data. As a result, octopus system can be widely used in transport, parking, retail, self service business, unemployed facilities, wet markets, school and property access control.Current innovation businessOctopus Cards Limited is a newly formed company. The company has clear goal Continuously innovate and delight our customers. Its slogan is making Everyday Life Easier. Nowadays, 95% of Hong Kong people harbour at to the lowest degree one Octopus Cards. The company targets on two types of customers B2B (retail shops, KCR, MTR, etc) and B2C (public). The product vitality cycle and market has seemed to reach maturity. To sustain the business, the Octopus Cards Limited has adopted customer diffusion to extend the customer base.In October 2005, Octopus Holdings Limited formed three new subsidiaries to target non-payment business of Octopus, which includes Octopus Rewards Limited, Octopus International Projects Limited and Octopus China Investment Limited. (Ref Appendix II)Non-payment ApplicationThe Octopus Rewards Programme is a type of loyalty programme. It allows customers to ingest and redeem cash reward, regardless of payment means. With this common platform, participating merchants can offer tailor-made discounts or special offers to their consumers without having any new rewards systems. everywhere 2.3 million customers have registered for the programme and they can enjoy the benefits at over 20 participatin g merchants.Incremental productThe Octopus Cards Limited broadens their income source by targeting the business on sell Octopus and margin Issued Octopus and corporate custom-made octopus.Sold Octopus CardsThe Sold octopus is a specially designed Octopus Cards, including key chains, ornaments, watches and commemorating limited edition cards, theres an Octopus to suit your lifestyle. For example Hello pool Octopus Cards. Octopus Cards is not only for the purpose of payment but also becomes a kind of fashion.Bank Issued Octopus today most people have registered the Automatic Add Value return (AAVS) to reload the Octopus Cards values. Octopus starts to cross over their products with accredit Card Company. For example Citibank Octopus Visa card. The customer can enjoy both octopus reward and credit card benefit.Octopus for batchThe Octopus Company creates a compelling marketing tool with a Corporate Octopus, Corporate Mini Octopus, or customized Octopus premium to heighten the co rporate image.Process InnovationIn the past, Octopus system only can be used on large chain store, e.g., Caf De precious coral or 7-Eleven etc. The Octopus Cards Limited does not have enough resources to broaden their business to some small stores or small business areas. The expensive installation and monthly charges also create the obstacle for the small business to use their product. Recently, Octopus Cards Limited appoint four Octopus service providers Bank of China, Hang Seng Bank, PCCW, Union change Register Co., Ltd. The providers can help rent the octopus reader with a much cheaper monthly fee.Octopus Cards Limited can take advantage of the synergies effect by using the strength of the service providers to hue all segments of retail sectors faster.Ideas recommendation for future opportunityIncremental productResizing the Card ReaderOctopus Cards Limited can plan the current card reader. Octopus Cards involves many design mini-Octopus Cards. plainly the surface card re ader and design remain unchanged. The company can design slim size reader, support wireless and 3Generation network.The slim size and 3Gs Octopus Cards Reader can apply in kindliness Flag Day, Taxi fare payment or in theme Hawker. In addition, it can be used on online shopping or TV shopping. The slim size card reader can also be installed in laptop and television. The public may use the octopus card reader at home to settle the payment in future.Multi Currencies SupportOctopus Cards can use some germinal swiping techniques such as forked Currency Debit Card() technique. People can use two types currency Hong Kong Dollar (HKD) or Renminbi (RMB). The Octopus Cards Limited can partner with China Bank to issue these types of Dual Currency Octopus Cards.Cross over ProductThe Octopus Cards Limited can cooperate with Phone Company. Most peoples have planetary phone and Octopus Cards. These two things become necessary for Hong Kong Peoples lives. Cross over product like the octopus mob ile phone can be a future trend.For the process innovationAlliance with credit card companyBesides the product innovation, Octopus system can join alliance with Credit Card Company. As credit card system with advance technology and well-developed global network, sharing experience can evoke Octopus system to penetrate to global market easier.Consultancy servicesOctopus Cards Limited is a success and experienced company on smartcard technology. The company can use its knowledge to provide consultancy service to other countries and to share their technology and services for potential customer.VIP membership card serviceNowadays, most people have over a xii of discount or VIP cards for various shops or restaurants. Carrying them all around is impractical. Octopus can try to develop VIP or loyalty cards. In future, peoples can bring one Octopus Cards to enjoy shopping and VIP service. For the merchant, it can be easier for them to track the consumer usage and spending pattern.Increase customer SatisfactionToday Octopus bearer can only check balance and transaction in Octopus Enquiry Machines at MTR stations, some 7-Eleven or Circle-K outlet or PCCW nerve center device. To enhance the customer needs, Octopus Card can establish platform for card user s to download the transaction statement via the Internet. In addition, with the needs of global market and concern on security issues, the company should shorten the lost card processing time, say, from now 6 hours to factual time block card.ConclusionInnovation is the cornerstone of Octopus success. With a clear goal, Octopus Card becomes the most famous innovation product. Product feature and the innovation strategy both are important for the company. In future, Octopus can utilize their competitive advantage and market attracter position to formulate more creativity ideas to make our lives easier.AppendixJoint venture shareholder of Octopus Holdings LimitedSource from Octopus Holiding LimitedCorporate Structure of Octopus Holdings LimitedSource from Octopus Holiding Limited