October 25, 2003

South Africa and Kiosk Market

The South African kiosk market has its own unique challenges that are a direct result of the diversity of the demographics of the region

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South African Kiosk market

allAfrica.com: Southern Africa: Tecor Group Identifies Self-Service Technology As Key Growth Area in Southern Africa

The South African kiosk market has its own unique challenges that are a direct result of the diversity of the demographics of the region, in terms of literacy levels, low technology adoption rates, poor infrastructures, high HIV/AIDS statistics and crime rates.

Furthermore, the culture of the largest part of our population makes the adoption rate of this technology slower than in First World countries.

At the same time, the country faces steep political changes where government is under pressure to pay much needed attention to provide the majority of the population with the most basic services that include easier access to information. The empowerment of people through information and knowledge provides an excellent platform for Self-Service Terminal (SST) and kiosk solutions to government and service organisations.

In addition, corporations are faced with steep competitive issues. The only place where bottom line improvements can be made is through leaner and meaner infrastructures, the more effective use of technology and an increased focus on customer service and retention.

"All of these critical business and government issues can be addressed through the clever implementation and use of SST's and kiosk application solutions," says Nico Oosthuisen, CEO of Tecor Group (Pty) Ltd.

The kiosk industry is an emerging one, with a mix of established companies and other players seeking to stake their claim within the market. The kiosk market continues to grow rapidly and according to the Summit Research Associates' 2002 edition of its flagship report "Kiosk" and "Internet Technology"; the number of kiosks deployed worldwide is expected to increase by 75.6% by 2005. Self-service technology and the Internet will trigger much of this growth.

Why deploy kiosks, you may ask? The answer is not always easy, because there is no universal answer. Some kiosks generate revenue, while others save money by replacing human resources. Others serve as shopping portals in retail stores, while a growing number of kiosks simply provide information.

In addition, kiosks can be expensive to build and maintain, so naturally many are created with the goal of bringing in revenue. Key to the deployment of any kiosk project is to prove some sort of return on investment, whether it is in cash, customer goodwill or cost savings.

Accounting for an investment return on kiosks that don't generate revenue is a tricky issue. When deploying kiosks, one must make judgements on the value of the kiosk project based on intangibles. While the cost of the kiosk is measured in rands, the value of a satisfied customer can be priceless. An information kiosk, for example, offers a variety of services that do not generate revenue, but rather produce an enormous amount of customer goodwill.

Some of the more successful kiosk projects are those that enable users to do something they could not do otherwise.

Being at the forefront, Tecor is able to provide the following types of kiosk solutions:

* Internet kiosks usually are strictly pay-for-use machines offering access to the Web, though some deployments offer free Internet services and generate revenue through advertising income.

* Informational kiosks are those that dispense information and are considered to part of the soft benefit category. These might be used for trade show information, surveys, data collection, etc.

* Architectural kiosks can be any of the above. These are normally custom designed kiosks specifically made to enhance their surroundings while performing whatever tasks they are given.

"Implementation of any SST project requires knowledge and skills on a network environment - Tecor boasts good design and implementation skills across a variety of network products. Our excellent supplier and partner relationships give us accessibility to competitive price and solution offerings. Tecor chooses and customises the solution that best fits the customer's architecture and infrastructure," states Oosthuizen.

"In addition, the biggest contributor to a successful SST solution is a software application that delivers the message and functionality that a company wants to offer its clients."

Kiosk solution providers face a significant challenge from the moment the kiosk idea is born. The most important consideration throughout the entire process is the mindset of the ultimate user. The kiosk must make life easier for the user in some way, by solving a problem, automating a process or delivering a desired service. Electronic kiosks are therefore often the vehicles for moving client-customer relationships to a higher level. Any effort to reach out to customers, provided it is not too intrusive or time-consuming, can empower customers and make them feel more involved in the process.

Posted by Craig at October 25, 2003 04:23 PM