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1 Practicum Report 2005 Transaction Number: 996352 Movie: Madagascar Day: Thursday Time: 19.00 Adults: 2 Children 2 Donal Foley 53128451 Thomas Goulding 99003996 Vanessa Worrell 99420848 Louise Kirke 99412195 Business Supervisor: Dr. Teresa Hogan Technical Supervisor: Dr. Cathal Gurrin

Practicum Report 2005 - DCU School of Computingasmeaton/MECPracticums2005/M...theatres and airlines) still use paper based ticketing, This can be a frustrating experience due to issues

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1

Practicum Report 2005

Transaction Number: 996352

Movie: Madagascar

Day: Thursday

Time: 19.00

Adults: 2 Children 2

Donal Foley 53128451

Thomas Goulding 99003996

Vanessa Worrell 99420848

Louise Kirke 99412195

Business Supervisor: Dr. Teresa Hogan

Technical Supervisor: Dr. Cathal Gurrin

2

Table of Contents

Executive Summary ...........................................................................................4

Market Size and Trends...................................................................................5

Market Segmentation........................................................................................7

Business Model.....................................................................................................8

Growth Strategy ...................................................................................................8 Phase One: Market Entry .................................................................................................. 9 Phase Two: Expansion and Development of Market....................................................... 9 Future................................................................................................................................. 10

Marketing and Advertising ..........................................................................10

Below The Line Marketing............................................................................................... 10 Direct Marketing............................................................................................................... 10 Future Marketing.............................................................................................................. 11 After Sale Service .............................................................................................................. 11

Risk Assessment .................................................................................................12

Revenue Model ...................................................................................................13

Value Chain..........................................................................................................14

Value Proposition..............................................................................................15

PEST ........................................................................................................................18

Political and Legal Analysis ............................................................................................. 18 Economic Analysis ............................................................................................................ 18 Social Analysis ................................................................................................................... 18 Technological Analysis ..................................................................................................... 19 Mobile Phone Technology ................................................................................................ 19 Barcode Scanning Devices................................................................................................ 19

SWOT Analysis...................................................................................................20

Strengths ............................................................................................................................ 20 Weaknesses ........................................................................................................................ 20 Opportunities..................................................................................................................... 21 Threats ............................................................................................................................... 22

M-Solutions Competitive Review..............................................................23

Rivalry among competitive sellers ................................................................................... 23 Threat of new entrants ..................................................................................................... 23

3

Threat from substitutes .................................................................................................... 23 Power of suppliers ............................................................................................................. 23

Competing Technology ..................................................................................24

Research Methodology...................................................................................26

Primary Research ............................................................................................................. 26 Secondary Research.......................................................................................................... 27

Feedback from Cinemas................................................................................28

Feedback from Customers ...........................................................................30

Purchase of tickets online:................................................................................................ 30 Willingness to purchase tickets online: ........................................................................... 31 Cost concerns: ................................................................................................................... 31 Perceived benefits: ............................................................................................................ 31 M-Tickets as gifts: ............................................................................................................. 32 Frequency of intended use of M-Ticketing service: ....................................................... 32

Technical Report: - Overview of M-Solutions ..................................33 Internet Information Services (IIS) Web Server: .......................................................... 37 SQL Server 2000 ............................................................................................................... 39 Personalization:................................................................................................................. 40 Collaborative Filtering: .................................................................................................... 42 Security: ............................................................................................................................. 43 M-Ticket Purchases using a Mobile Phone Handset: .................................................... 49

Management Structure ..................................................................................54

Appendix ................................................................................................................56

M-Solutions Profit and Loss............................................................................................. 56 Cash Flow Year 1 .............................................................................................................. 57 Cash Flow Year 2 .............................................................................................................. 58 Cash Flow Year 3 .............................................................................................................. 59 Explanation of Costs ......................................................................................................... 60 Office Rent ......................................................................................................................... 60

Case Study .................................................................................................................... 62 Current process versus reengineered process of obtaining a mobile/paper cinema ticket. .................................................................................................................................. 63 User Manual – for M-Solutions prototype website. ....................................................... 64 Administrators’ Manual – for M-Solutions:................................................................... 83 Using Barcode Technology:.............................................................................................. 93

4

Executive Summary The objective of this practicum is to create a paperless system of issuing tickets for a

business entity such as a chain of cinemas. This is achieved through the issue of M-

Tickets. The aim is to allow customers to have their tickets electronically stored on

their mobile phones rather than being issued with paper tickets. The source of the idea

comes from the fact that virtually all organisations in Ireland (such as cinemas,

theatres and airlines) still use paper based ticketing, This can be a frustrating

experience due to issues like queuing for tickets at peak times, losing tickets as well

as environmental concerns such as the amount of litter that used tickets creates.

According to Nigel Drake, General Manager of The Vue, Liffey Valley, in an ideal

world all tickets would be pre-booked1. M-Solutions believe there is a gap in the

market for a mobile solution and that these issues can all be integrated and solved

with the introduction of M-Ticketing.

Essentially mobile ticketing offers a new channel of ticket distribution for cinema

chains to the customer. M-Solutions proposes a convenient alternative to traditional

methods of purchasing cinema tickets. The benefits of this system apply to both the

cinema and the customer. It is mutually beneficial relationship.

The aim of this report is to examine the potential of the market for this e-commerce

solution and to develop a working prototype. This was achieved through various

methods including in-depth interviews, questionnaires and research. To obtain an

insight into the Irish cinema market, interviews were conducted with general

managers and marketing managers of UCI, The Vue and the Ormonde. To gain an

accurate representation of the target markets opinions and values, questionnaires were

distributed among cinema patrons and the results analysed. The results of research

carried out for this project show that M-ticketing would be a successful and welcome

service if it were provided in cinemas throughout Ireland.

1 See interview in appendix

5

Market Size and Trends The cinema market is a big business. This is thanks to big blockbuster movies for

example “Batman Begins” and “Star Wars”. In 2004, cinemas profited from the

success of movies such as “Shrek 2” and “Harry Potter and the Prisoner of Azkaban”. Final Irish cinema admission figures for 2004 have been confirmed at 17.3m2. With

ticket prices at €8.50 on average, this creates a market worth €147m. Within this

market is the pre-booked sector. Again thanks to big movies, sequels and trilogies,

cinemas can almost take it as a given that the first week will sell out. When the last

“Lord of the Rings” movie was released in Ireland, The Vue made €150,000 in pre-

booked sales3.

Mobile-Internet is the fastest growing technology in Europe. Currently, there are more

mobile phones than PCs or fixed line phones and Ireland has one of the highest

mobile phone ownership rates in the world.4 This is extremely relevant to M-

Solutions’ implementation of mobile ticketing. According to the same statistics, the

Irish population, in general, are technology savvy. Hence, M-Solutions is statistically

stable in the Irish mobile and cinema market.

By 2007, it is estimated that the cinema market will reach €7.4bn in Europe alone.

The market was only worth €5.7bn in 2002. Admissions in the European cinema

market are expected to rise to 1bn in 2005. The rise in box office revenues is even

higher than the growth rate in admissions due to a cumulative rise in ticket prices. The

number of screens in Europe will rise to 31,593 by the start of 2007. Multiplex

screens will play a key role in European screen growth over the next five years and

there is still considerable room for growth in several European territories.5

M-Solutions will initially concentrate on the cinema market in Dublin. The number of

cinemagoers in Dublin has increased from 5,709 people in 1996 to 11,356 people in

2 Pearl and Dean, cinema advertisers 3 Nigel Drake, General Manager, The Vue (Liffey Valley) 4 Forrester Research 5 Screen Digest

6

2005. More information on the statistics of Dublin cinemas is available in the table

below.

Statistics 1996 2002 2005 Admissions 5709 8517 11356 Screens 64 98 121 Seats 15570 22752 30336 Person/screen 14886 15998 21198 Admin/screen 80209 86908 115772

Figure 1 Cinema Audiences in Ireland 1999 to 20056

There are a great number of different pricing schemes, special promotions and

concession structures throughout the cinema chains in Dublin. The average price for

an adult’s ticket is €8.50; a child’s ticket €5.75 and a family ticket is €22.00. The

majority of tickets are purchased and used during the weekend, 30% of the box office

revenue is generated on a Saturday.

7 8 9 8

17

29

21

0

510

1520

2530

%

Mon Tue Wed Thur Fri Sat Sun

Weekday

Box Office Share per day

Figure 2 Box Office Share per day

6 Dadona Research

7

Market Segmentation This market is made up of both cinema chains and independent cinemas. The

breakdown of this market is illustrated in the chart below. M-Solutions’ target market

will be the major cinema chain, particularly UCI and The Vue as they have

international connections. The Graph below demonstrates that they hold the largest

share of cinema screens. Therefore, M-Solutions will target them because they will be

incremental in the future profitability of the company. Also, in recent years there has

been increased consolidation in the entertainment industry. As a direct result many

independent cinemas have closed down in cities and the larger cinema chains are

dominating the market. Initially M-Solutions will be based in Dublin.

Market Segmentation

29%

14%3%6%12%

11%

7%2%

16%UCIVUEScreenSavoyIMCOmniplexOrmondeIFCUGC

Figure 3 Market Segmentation of Cinemas in Ireland

8

Business Model

The aim of M-Solutions is to implement the system into cinema chains around

Dublin. M-Solutions will charge a small once off fee for the implementation of the

system. This fee is necessary to cover the cost of the set up including equipment,

hardware and software and is more of an investment for the cinema. It also includes

staff training sessions etc. Annual maintenance is an industry-norm charge for yearly

services and any add on services required will be extra. In our trial implementation,

the cinema chain pays M-Solutions 3% of each M-Ticket transaction to use the

service. M-Solutions will increase this to 5% for new cinemas once the service is up

and running. We aim to have the system implemented in cinemas throughout Ireland

and later expand into the UK/Europe. M-Solutions initially tried to avail of an MMS

service provider. However, by owning its own server, it improves M-Solutions’

financial and market position in the long term.

Growth Strategy

The strategy for the rollout of M-Solutions involves the formation of the strategic

partnership with as many major cinema chains in Dublin as possible, with two

development stages – Market Entry and Expansion and Development of the Market. It

is envisaged that as soon as one cinema uses the service, the others will quickly

follow suit, as was the case with online booking. The Ormonde was the first cinema to

introduce online booking in Ireland in 1999, soon followed by other cinemas to offer

the service, which is now considered standard. The first phase allows M-Solutions to

penetrate the Irish cinema market in the hope of gaining the benefits of having the

early mover advantage in the mobile ticketing market. The second phase will be to

increase market share in Ireland and expand into the UK and Europe.

9

Phase One: Market Entry This phase will focus on the development and implementation of M-Solutions’

technology within the three targeted cinema chains. In keeping with its tradition, M-

Solutions intends to launch M-Ticketing in the Ormonde. This cinema was chosen for

a number of reasons:

Most importantly, the Ormonde family is part owners of the new cinema,

Movies @ Dundrum. This is going to be a huge suburban cinema with 10

screens and will be essential to the future growth and profitability of M-

Solutions.

As mentioned previously, the Ormonde is very innovative in implementing

new technology.

It has the largest percentage of pre-bookings, around 80% for new

releases.

The Ormonde has expressed an interest in using M-Solutions’ service and

its ability to gather information on its customers.

Next, M-Solutions intends to implement its M-Ticketing service in The Vue (Liffey

Valley) and the UCI chain. These cinemas have expressed interest as detailed in the

interviews – see appendix. The cinema chains believe that mobile ticketing is the

future solution for convenient booking and payment.

Phase Two: Expansion and Development of Market Once M-Solutions is successful in its primary market, it can roll out the system to all

cinemas throughout Dublin and Ireland. M-Solutions intends to expand into the

UK/European cinema market.

The Vue owns 49 cinemas throughout the UK. Depending on the success of

M-Ticketing in its Dublin cinema, it would be possible to implement the

system throughout all 49 UK chains7.

7 Nigel Drake, General Manager, The Vue, Liffey Valley

10

UCI is a global cinema chain. M-Solutions intends to enter these new markets

through these sister companies.

These contracts offer M-Solutions huge growth and profit potential. Our research

shows that the previously mentioned cinema chains (The Vue and UCI) are interested

in implementing the system, first in Ireland and then, pending successful take-up in

Ireland, throughout their chains.

Future The long-term goals for M-Solutions are to be the implementation of M-Ticketing in

America. This will be achieved through the UCI chain. UCI (United Cinemas

International) is a subsidiary of a major American cinema chain owned by Paramount

and Universal Studios.

Marketing and Advertising

Below The Line Marketing To create maximum awareness of our M-Ticketing service, M-Solutions will start to

promote the new service around December2005/January 2006. Our promotional

strategy will begin with website advertisements and on posters around the cinema

foyer. M-Solutions’ first implementation will be in the Ormonde this will be launched

in January/February 2006. M-Solutions will place a promotional team in each cinema

as the service is launched to ensure a smooth transition from traditional ticket booking

to M-Ticket booking8. The promotional team will spend two days in the cinema

demonstrating to customers how the service works. The aim of the promotional

campaign is to educate customers who may not be technology savvy, to create

awareness and to ensure that as much of the target market as possible is reached.

Direct Marketing The cinema chains will also send targeted emails to all their registered customers. The

cinemas’ registered customers will receive personalised emails introducing them to

8 This will not represent a major cost to M-Solutions because one of the directors already works in a promotions agency.

11

the service. There will also be creative, attractive advertisements on the cinemas’

websites. When customers visit a cinema’s website, they will see the advertisements

and an information page with instructions and regulations of the service. When the

customer goes to book a ticket using their credit card they will be given the option to

purchase an M-Ticket or a traditional ticket. If they were not aware of M-Tickets up

to this point they will now be curious as to what an M-Ticket is.

M-Solutions has chosen these methods of marketing because they are the most

efficient and cost-effective media to reach our target market. All of the advertising

efforts directly reach the most important segment of the target market, the cinema

patrons.

Future Marketing It will be necessary to keep the marketing strategy up to date and continually gather

new marketing information. The focus will be on the cinema market monopolizers,

such as UCI9, The Vue and Movies @ Dundrum. These are the large chains that will

bring in the most revenue for M-Solutions. Special offers on popcorn, drinks, sweets

and ice cream will all feature as part of the marketing strategy.

After Sale Service The after sale service allows M-Solutions to become a part of the cinemas’ operations.

A major part of the service is M-Solutions’ quality control procedures. As technology

advances, M-Solutions will be able to add to the services it provides. This will be

done at a charge. Proper quality control testing will be carried out on the entire

system, software and website. The aim of this is to ensure optimum satisfaction with

the service for both the cinema and the customer.

9 Marketing Manager UCI

12

Risk Assessment Risks identified are:

The service will not catch on due to its technical nature.

Action: M-Solutions will ensure that the service is easy to use by the target market. A

‘how to use M-Ticketing’ page will be available on the website to talk new customers

through the process. Promotions carried out in the cinema chain foyers educating

customers about the service will create awareness, while at the same time teaching

them how to use the service via demonstrations. Most importantly, word of mouth

among existing users will be crucial to the success of the service.

No cinema chain will want to use the system

Action: Research has been conducted with the main large cinema chains in Ireland to

combat this potential risk. Feedback given from interviews held with the cinema

managers resulted in M-Solutions gaining an insight into the values of the cinemas

and what they would like to see the service do for them. This information has allowed

M-Solutions to tailor the service to these specifications. For example, initially M-

Solutions considered the fact that staff would be free to concentrate on other

activities, a very positive selling point to the service, however, the reality is that this

was not valued very highly by the cinema chains. Other advantages to M-Ticketing,

such as being able to attract people to buy popcorn and drinks by offering money off

was a bigger incentive to the cinema chains than the freeing up of staff.

Not enough M-Tickets will be sold to sustain profitability

Projected demand for M-Tickets are based on the network effect, the more people that

use the service, the more successful it will be. As one person uses it to book two

tickets, their friends will learn about it and be likely to use the service the next time

they are booking tickets. To ensure demand for the service grows substantially, it will

be necessary to ensure that the process is error free and that excellent customer

13

service is provided. This also involves testing that the cinema chains are satisfied and

will not withdraw their service.

Revenue Model

M-Solutions will charge the cinema a small fee of 3% per transaction. Revenues will

mainly be based on cinema ticket sales and redemption of lost and deleted tickets. The

initial implementation charge simply covers the cost of the equipment necessary for

the system such as scanners.

The players in the revenue model are:

Customer: The customer has two payment options. The first one is credit card via M-

Solutions integrated into the cinema’s website. The second one is to use their mobile

phone credit. With this specific micro payment service, the customer can turn his

mobile terminal into a payment device and use it to pay for items and services.

Merchant: M-Solutions is providing the service. The costs included are the

technologies used to develop the service for example, the purchase of an SMS/MMS

server.

Payment Service Provider: Visa supports the financial transactions and provides a

secure service, reassuring customers that their credit card information is safe.

Mobile Operator: M-Solutions will provide the network service for the distribution

of barcodes.

14

Value Chain

Figure 4 M-Solutions Value Chain

Stage One

The customer visits the cinema’s website and has two options. He can become a

member by registering his details once or he can remain a non-member but will have

to enter his details each time he wants to purchase an M-Ticket.

Stage Two

There are three options for payment. They are via credit card, mobile payments and E-

Wallets. Credit card payment is via the cinema website and processed by the credit

card companies. Other possible payment methods are mobile payments, where the

cost of the ticket is deducted from the customer’s phone credit. E-Wallets are another

possible method of payment where money is virtually stored on the customer’s SIM

card. However, this technology is not yet available in Ireland.

Stage Three

There are two options available for barcode transmission. One method is through the

use of facilities of networks such as O2, Vodafone, Meteor and 3 (coming soon to

Ireland). The other method is the purchase of an SMS/MMS server. M-Solutions

intends to take the second option and purchase an SMS/MMS server. This is more

beneficial, financially in the long term.

15

Stage Four

When the customer goes to the cinema, an usher will scan their mobile barcode. This

will invalidate their mobile ticket. If the ticket has been invalidated i.e. if it is scanned

already or by human error, it cannot be used again. However, a facility is available to

allow the customer to redeem their M-Ticket if it is lost or accidentally invalidated.

Value Proposition The main selling point of the M-Ticketing system to cinemas is the potential it offers

to increase a their pre-booked ticket sales, drive customers into the cinema where they

will purchase popcorn, drinks or sweets (a huge profit source for cinemas), provide

them with a method of collecting information about their customers (through

membership of the website and usability patterns), which can improve their direct

marketing campaigns and ultimately resulting in more ticket sales. Other benefits

include a reduction of the chain’s costs due to the massive reduction of paper needed

to print tickets, printing materials and staff costs of keeping a number of ticket booths

open. In addition, less cash will be held on the premises, thus reducing security

concerns.

For customers, M-Tickets dramatically cut the amount of time they will have to

queue. They can proceed straight into the cinema once an attendant has scanned their

M-Ticket. The current situation requires customers to either queue up to purchase

their tickets and then queue again to present their tickets to the attendant, or to book

their tickets online, collect them from a collection machine and then queue to have

their tickets checked by an attendant. In cinemas such as The Vue, (Liffey Valley) this

is a major issue and queues can be 15 people long at the refreshments stand. This can

be quite off putting for customers. M-Ticketing will greatly reduce the amount of time

customers have to wait before they can view their movie and make the experience a

lot more enjoyable. Customers can arrive just before the movie starts, have their M-

Ticket scanned and enjoy the movie, there’s no need for attendants to physically

check the date and time on the ticket. The system will check this automatically, in an

16

instant. Extra features such as the ability to pre-pay for refreshments and have them

almost ready to pick up at a separate station or ‘speed lane’10 can be built in the

service. The Ormonde expressed particular interest in this feature.

Other benefits include:

The cinema’s paper and printing costs are reduced. These savings could

possibly be passed onto the consumer.

A user can void his M-Tickets if his phone is stolen or lost. He simply enters

the barcode and transaction numbers of the M-Tickets affected and the system

reissues them to his new mobile phone number. The reissued M-Tickets are

assigned new barcode numbers. The barcode numbers of the original M-

Tickets are invalidated.

There is a facility for users to have their M-Tickets resent to their mobile

phones if they accidentally delete the tickets. Again, this is done through the

website using the barcode and transaction numbers of the M-Tickets affected.

Registered users also have the option of having their M-Tickets reissued using

their mobile phone handsets.

Users can transfer an M-Ticket to another phone (for example as a gift to

another person – via texting the M-Ticket). It does not matter if the ticket is on

a number of phones as once it is used it is immediately invalidated.

Offers can be sent out to users on an opt-in basis for movie promotions or

cheaper M-Tickets during quiet times. Through the use of collaborative

filtering, the system can recommend up and coming movies based on the

user’s and other users with similar profiles’ choices.

There are potential long-term benefits to the environment because less paper

will be used as people become used to booking M-Tickets.

Registered customers to the cinema chain could receive special offers. Regular

users have the facility to register their details on the website though this is not

necessary to use the service. The benefits are that the cinema gains

information about its target market that can be used to build customer profiles

and build marketing promotions.

10 Nigel Drake, General Manager, The Vue, Liffey Valley

17

The customer will benefit from fewer queues.

Value Proposition: To the cinema, M-Solutions offers a convenient, easy to use

method of distributing tickets to customers. Cinemas get up to date and accurate

information about their customer base through the membership pages on the website.

This information can be used for highly targeted, direct marketing. This should result

in increased ticket sales. For customers, M-Ticketing offers them the convenience to

be able to book cinema tickets from home and have them delivered instantly. Our

research conducted in the Ormonde cinema showed that a popular new release would

be fully booked for its first week of showing for up to a week beforehand. With

popular movies such as “Batman Begins”, this can even stretch to two weeks.11 These

customers would then come in to the cinema around two day before the showing to

collect their tickets. M-Ticketing will save them this extra trip, give them peace of

mind, reduce the amount of time they have to queue before they can view their movie

and makes the experience more enjoyable overall. Customers can arrive just before

the movie starts, have their ticket scanned and enjoy the movie.

11 Elaine Grange, General Manager, The Ormonde, Stillorgan

18

PEST

Political and Legal Analysis

Mobile Spamming is illegal in Ireland12. Sending direct mail to customers requires

direct consent. Therefore it is necessary to have an ‘opt in’ option on the cinema

website using M-Solutions’ software.

Economic Analysis

In the second half of 2004, total revenues for fixed, mobile and broadcasting markets

in Ireland amounted to an estimated €4 billion per annum, representing an increase of

approximately 5.8%13. M-commerce is appealing because wireless Internet offers

customer-location information, personalized consumer interaction and constant

connection to the Internet. But the m-commerce marketplace requires new business

models for wireless Internet.

Social Analysis

February 2005’s text-messaging figure reached a total of 2.19 billion messages,

according to figures released by the Mobile Data Association (MDA). 9 million text

messages were sent per day in Ireland in 2004. Mobile phone usage in Ireland is the

largest in Europe per head of population. There are 3.4 million mobile phones in

Ireland and the average user sends 82 text messages per month. According to Merrill

Lynch, m-commerce revenue will top $45 million by 2005. Other analysts predict

worldwide transactions to generate more than $100 billion in revenues by 2005.14

12 EU Directive 2002/58/EC 13 Wireless World Forum 14 Mobile Data Association

19

Technological Analysis

Mobile ticketing is going to be one of the hot new concepts of 200515. The demand

for mobile digital communications devices is outstripping computer sales.

Mobile Phone Technology

There are 1.5 billion mobile telecom users today — a quarter of the world's

population. A further 3.5 billion people live within the coverage area of a mobile

cellular network. European mobile operator executives will try to carefully manage

the risks of commercializing their brand-new 3G technologies; deal with a growing

number of competitors; strive for more loyal customer base; try to capitalize on fixed-

mobile convergence; and aim to unleash corporate mobile data take-up. Behind all

this lies their need to protect market share and margins, and secure further growth.16

Barcode Scanning Devices

Barcode scanners are becoming more popular due to their convenience and ease of

use. Ireland is one of the first adopters of barcode scanning technology on mobiles,

with the introduction of M-Ticketing through Aircoach and m-coupons with Puca17.

Ireland has good suitability because of the fact that we use GSM/SMS enabled

mobiles.

15 www.enn.ie 16 www.comreg.com 17 www.aircoach.ie

20

SWOT Analysis

A SWOT analysis provides a good overview of whether a firm’s position is healthy or

unhealthy.

Strengths M-Solutions’ product allows a cinema to deliver a high level of customer service in

an efficient and cost effective manner. Implementation of mobile ticketing will result

in both process and transaction efficiency gains in the cinema. M-Solutions has

designed and developed the mobile application in consultation with cinema

professionals. Therefore, it facilitates all major activities carried out by cinema

management. No other company has produced a similar product for the Irish market.

Therefore, M-Solutions hopes to secure a solid foothold in the market quickly by

relying on first mover advantage. Mobile ticketing facilitates cross-departmental

sharing of customer information and eliminates the duplication of tasks and

information to be recorded.

M-Solutions’ other strengths are strong e-commerce expertise, technological know-

how, excellent customer service and a strong management team. M-Solutions has

experienced and talented employees in key areas and advanced know-how in

customers’ desires due to extensive research that was carried out.

Weaknesses

As M-Solutions is a start up company a possible weaknesses could be a weak balance

sheet. M-Solutions could take a couple of years to become a profitable venture. It may

require a large funding to get it off the ground. This could result in some debt. Other

weaknesses would be the general barriers to e-commerce that exist.

21

Figure 5 Barriers to E-Commerce

Opportunities

M-Solutions offers a new improved solution to traditional ticketing systems. This

presents the opportunity to grow rapidly and potentially expand into new markets,

such as the UK. Credit cards are increasingly being used for payment via the Internet

and mobile phones18. More specifically, people are using their credit cards for

purchasing entertainment tickets. This is demonstrated in the graph below.

18 Central Statistics Office

22

Figure 6 Credit Card use in Ireland for Ticketing Events

Threats

There is always the threat of competition from new start-up companies or existing

ticketing companies wishing to pursue e-commerce strategies. To counteract this

threat, we intend to lock in customers through add on services and maintenance

requirements and to build strong collaborative relationships between M-Solutions and

its partners.

23

M-Solutions Competitive Review

Rivalry among competitive sellers Competitive rivalry in the M-Ticketing market is not yet particularly strong as it is a

new technology. There are few rivals19 in the M-Ticketing market and none in the M-

Ticketing cinema market. However, there is always the possibility of new entrants.

Threat of new entrants There is a high threat of new entrants as mobile technology is becoming increasingly

popular. Numerous technology companies that have easy access to the relevant

technology have lower entry barriers. They already have access to the investment and

resources required to enter the market. However, as M-Solutions is the first to offer

the service for the entertainment industry in Ireland, building relationships and

locking customers in can create barriers. Relationship building will be an important

element of the directors’ positions.

Threat from substitutes Substitutes for M-Solutions’ mobile ticketing are traditional paper based ticketing and

online booking. While these substitutes provide a similar service for the same price

they do not offer the customer as much convenience as they still need to queue to

collect or print their tickets before entering the cinema.

Power of suppliers Network providers are essential in the provision of M-Ticketing services; therefore,

they have a lot of bargaining power. It will be to their benefit to enhance M-Solutions’

competitiveness because the more successful M-Solutions is, the more they will

profit. This will be an incentive for suppliers to work with M-Solutions as partners in

providing this service. However, M-Solutions intends to use a private SMS/MMS

server, thus reducing the power suppliers will have.

19 Textus based in Invent, DCU

24

Power of buyers

The power of the cinema chains is high as they are the customers who must take the

risk of implementing this system. However, at the moment M-Solutions is the only

provider of this service and once implemented, high switching costs will create buyer

lock-in. It will be costly for them to change to another provider.

Competing Technology Textus, a Dublin mobile software firm, has introduced SMS barcodes that can be used

in point-of-sale transactions. The M-Scan device communicates with the Textus

server via GPRS, and then issues a physical ticket from an internal thermal printer and

the mobile phone user presents it as a ticket, or as a promotional offer. The

technology is currently being piloted by Miller Beer in Ireland and is being used

actively by another brewer, Stella Artois, in Northern Ireland. Workers in the field are

the target market for the Mobile Employee project, an initiative of Digital North

Denmark.20

Cambridge Consultants has demonstrated a wireless tagging technology based on

new-generation 'ultra-wide band' communications, providing a step-change in

capability compared with today's paperless transport ticketing. Offering a very large

sensing zone - with the option of 3D-positional information on tags - the technology

has the potential to give commuters an invisible license to travel. It could be used to

eliminate barriers in railway systems and allow revenue-checking staff to target only

ticket-less passengers.21

Airline leaders have committed to implement e-ticketing by 2007 to simplify airline

business processes. The International Air Transport Association (IATA), which

distributes 300 million paper tickets each year, said that paperless ticketing would

save the industry up to $3 billion in direct costs. In July 2005, delegates at the IATA

annual general meeting and World Air Transport Summit in Singapore approved the

use of self-service kiosks in check-in areas. To reduce queues at airports and airline

20 Textus – Google search 21 Cambridge Consultants – Google search

25

check-in costs, the industry group is also to push for boarding passes with bar codes

that can be self-printed.22

Gavitec's technology enables barcode scanning with camera-equipped mobile phones.

Codes can be printed in newspapers and magazines, on posters or on the product

itself. The Lavasphere platform-independent code needs no additional scanner

hardware to turn camera-enabled devices into universal code readers. It is easy to

integrate into current and future camera-enabled mobile phones – regardless of the

operating system used. The system allows camera phones to read Data Matrix and a

variety of other two-dimensional printed codes, as well as traditional one-dimensional

barcodes. The company also develops and distributes hardware units that make it

possible to read codes presented on the display of a mobile phone. Possible uses

include e-ticking applications and electronic vouchers.23

Semacode is a free mobile barcode-scanning system created by Simon Woodside, a

programmer from Canada. The system encodes standard URLs as two-dimensional

Data Matrix codes. An application on the user's phone converts the Data Matrix code

back into a URL and passes the information to the phone's browser.24

RegiSoft has been developing ticket sales on mobile devices, and now the first such

wireless transaction system is up and running in Singapore. RegiSoft has announced

the successful completion of the first show offering ticket sales using mobile

devices.25

22 Airline leaders – google search 23 www.gavitech.com 24 www.semacode.com 25 www.regisoft.com

26

Research Methodology

To gain an understanding of the mobile ticketing market, research was conducted into

the value chains of traditional ticketing and mobile marketing. During the course of

this project, both primary and secondary methods were used to investigate the

potential of M-Solutions as a mobile ticketing solution.

M-Solutions conducted in-depth research in Ireland and has sourced information from

America, Europe, Asia and other countries. The following areas have been focused

on:

All current processes within cinemas.

The use of mobile technology in the entertainment sector.

The capabilities and limitations of existing technology.

Exploring the opportunities of future solutions.

Cinema customer demographics obtained using questionnaires.

Comprehensive analysis into the structure of cinemas in Ireland.

Trends in spending on mobiles in Ireland.

Detailed financial study into costs.

Direct and indirect competitors.

The questionnaire and survey provided useful information concerning cinema

customers’ interests and thoughts on mobile ticketing.

Primary Research

Our primary research consisted of questionnaires, interviews, surveys and emails. The

purpose of the customer questionnaire was to discover the attitudes of potential

customers that would use mobile ticketing. To complete our primary research, we

carried out a cinema chain questionnaire and interviews with major cinemas in

Dublin. This gave us an understanding of how well our solution would be accepted in

the market place as well as its perceived strengths and weaknesses. The questioning

sequence was designed to invite the respondents to focus on general aspects of the

27

cinema environment. The questions then concentrated on the specific use of mobile

and general technology in conjunction with their everyday work. This approach

ensured that the interviewees became relaxed and familiar with the content of the

questionnaire. It was decided that the composition of the questionnaires should consist

of both open and closed-ended questioning. Closed-ended questions were included in

the questionnaire to measure different aspects of each topic. It was felt that these

questions were an appropriate tool to gain an answer to the specific questions. Some

open-ended questions were included at the end of the questionnaire to allow people to

use their own words to tell us what they thought about the issue of using mobile

phone technology in their professional environment as well as any other opinions

about mobile ticketing.

Secondary Research

Using books, articles and web sites, listed in the bibliography, extensive secondary

research was carried out. All business aspects of mobile couponing were fully

researched using secondary material; many of the articles providing supporting

evidence for this document are quoted. The technical aspects of the project, including

the M-Solutions demo, were researched and developed using the assistance of web

sites and online forums.

28

Feedback from Cinemas

We interviewed four cinema chains, The Ormonde (Stillorgan), The Vue

(Liffey Valley), UCI (Tallaght) and The Odessey (Belfast). They filled out a

survey, see appendix. The results are as follows:

75% of the cinemas thought the service would be very beneficial, 25% thought

it would be the same as normal on-line booking. UCI said it would depend on

cost and whether it would increase sales.

At the moment 75% of the cinemas rely on their websites for customer

information and through newsletters and “cinemail” (an on-line customer

survey).

The Ormonde estimated that each ticket cost .03c.

The Vue and The Odessey estimated that each ticket cost .007c, the cost of

which they try to offset with advertising on the back of the ticket.

The Vue and The Odessey thought that both the cinema and the customer

would benefit, while the Ormonde thought that the customer would benefit

most and UCI thought the cinema would receive the most benefit because of

the advantages of advanced bookings.

Managers were asked to assign each benefit of the service a grade of importance with

1 being the most important and 5 being the least important. The results are as follows:

On average, customer convenience was rated most important, increased sales

and lower cost were rated second most important, being seen as technology

savvy rated third most important, other tasks such as allowing employees to

concentrate on other value added tasks was considered the least important by

most cinemas.

29

Lower Costs 5 5 5 1

More free staff 4 4 4 4

Increased Sales 2 1 2 2

Technology Savvy 3 3 3 5

Customer Convenience 1 2 1 3

Figure 7 Cinema Managers' grading of the importance of the benefits of using M-Ticketing

Other benefits that the cinemas mentioned were:

The advantages of having customers book in advance.

Further customer data.

Ability to track customer interaction with the system.

More visitors.

When asked if they were interested in implementing the system, they all

said yes (depending on obvious practicalities).

Other features they would like to see added were:

The addition of some kind of control mechanism regarding under age

customers gaining access to age rated films. There may always be a need

for human controls i.e. ushers.

At the moment UCI have no paper trail of sales so they would like to see

this feature added.

The ability to pre-book food and drinks so that the customer can just come

up to the counter and collect them.

Problems that the cinemas envisaged from use of the service were as follows;

Integration problems

Kids using parents credit card to gain access to overage films

Communicating the service to customers.

30

Feedback from Customers The customer survey also provided feedback that was utilised in planning the

marketing strategy. It provided useful customer demographics, cinema and mobile

phone statistics.

Mobile Phone Ownership Yes = 100% No = 0%

Credit Card Access Yes = 90% No = 10%

Internet Access Internet = 90% WAP = 10%

Figure 8 Breakdown of Mobile Phone, Credit Card and Internet Ownership

Purchase of tickets online: 60% do not buy cinema tickets on-line. The following reasons were given for this:

Don’t trust it.

Prefer to pay bills in cash.

Can’t use a computer.

Haven’t always decided what to go and see.

Not Internet and computer savvy.

Prefer to use the telephone.

31

Willingness to purchase tickets online:

80% would purchase an M-Ticket if the facility were available. 10% said maybe and

10% said they would not. The reason being as follows:

Maybe, depending on how safe it was.

Don’t want to use their credit card on-line.

Cost concerns: 90% of customers would be more inclined to use M-Ticketing if it resulted in lower

priced tickets.

Perceived benefits: Customers were asked to assign each benefit of the service a grade of importance with

1 being the most important and 5 being the least important. As the table shows, value

for money was the customers’ top priority and environmental awareness was of least

importance.

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

1 2 3 4 5 6 7 8 9 10

ConvenienceEnvironmental AwarenessValue for moneyKeeping up with technologyLess queuing

Figure 9 Customers' Top Priorities for using M-Ticketing

32

M-Tickets as gifts: 80% think the facility to send an M-Ticket to another person’s phone as a gift is a

great idea. 20% said they would not use it.

Frequency of intended use of M-Ticketing service: When asked how often they would use the service, 40% said they would use M-

Ticketing every time they went to the cinema, 40% would use it sometimes and 20%

said they would not use it very often. The reasons given for this were as follows:

Don’t plan what film to see in advance.

Because I am not always very organised.

Can’t use Internet.

Prefer to pay in cash.

Prefer to pay in cash to avoid extra bills.

33

Technical Report: - Overview of M-Solutions At home

Figure 10 Overview of M-Solutions

Web Browser

IIS Web Server SQL

Server

User can: Browse Movies, Book an M-Ticket, Become a Registered User

Database contains: Movie information, Information on Users (Passwords are hashed), Information of M-Ticket purchases. Purchase M-Tickets,

View his/her purchases, View his/her current membership details, Change his/her M-Ticket details, Retrieve a lost M-Ticket.

Web Browser

Barcode Number and Transaction Number of M-Ticket are sent to user, along with details of his/her M-Ticket purchase.

User’s email account

\\\\\\\\\\\\

User’s Mobile Phone

Scanner

At Cinema

1: User scans M-Ticket, 2: User enters his M-Ticket Transaction Number on keypad (this is printed underneath the barcode), 3: M-Ticket is immediately invalidated.

User purchases M-Ticket

34

Figure 11 Map of M-Solutions Website for cinema customers

Home

Login Page View this week’s movies

Book an M-Ticket

Become a registered user

Retrieve lost M-Ticket

Book a Movie

Are you a Member?

Yes No

Login Page M-Ticket Booking Form (Non-Members)

Become a Member

Are you a Member?

Yes No

Login Page M-Ticket retrieval page (Non-Members)

Successful Login?

Yes No

Registered User’s Personal Page

Make an M-Ticket Booking (Members)

M-Ticket Booking Form (Members)

View Member’s Current Bookings

Retrieve Member’s Lost M-Ticket

Change Member’s Membership Details

View Member’s Personal Details

Change Member’s M-Ticket Details

User enters Lost M-Ticket Barcode and Transaction Numbers

User Enters New Details

User Enters Barcode and Transaction Numbers of M-Ticket to Change

35

Figure 12 Map of M-Solutions Website with Administrators' Options

Figure 13 Map M-Solutions Website with Staff Members' Options

Administrators’ Page

Admin. scans M-Ticket Barcode and asks user to enter M-Ticket Transaction Number

Get Info. on M-Ticket Bookings

Admin. selects a Movie and/or Day and/or Time and/or Gender and gets info. On M-Ticket bookings made

Get Info. on Registered Users

Admin. enters a User Name to get that user’s profile or can select ALL users’ profiles

Revalidate an Invalid M-Ticket

If M-Ticket is scanned in error, admin. can revalidate that M-Ticket by scanning it and entering M-Ticket’s Transaction Number

Admin. can view a log of Staff Members’ activities or add a new Staff Member to Staff database

View Staff Log/Add new Staff Member

Ger a User Profile

Admin. enters a User’s User Name and can view all M-Tickets purchased by that Member

View Users Targeted

Returns a list of Users chosen by system to target with Special Offers

M-Ticket Validation

Staff Page

M-Ticket Validation

Staff Member Scans M-Ticket Barcode and asks user to enter M-Ticket Transaction Number

36

Figure 14 M-Solutions Home page (when used with UCI Cinemas Website)

At M-Solutions, we have chosen to implement our system using Visual C#.NET,

ASP.NET, Internet Information Services (IIS) Web server and Microsoft SQL server

2000.

• The .NET Framework addresses the issues of incompatibilities between

programming languages and unrelated technologies. As M-Solutions will be

installing its M-Ticketing software for a number of different cinema chains, it

is essential that it is compatible with the various legacy systems that they

currently implement. Based on our interviews with various cinema chains,

they would not be in a position to change their current systems. Using the

.NET Framework means that they will not be required to change their systems,

they can simply use M-Solutions’ software as an add-on to their current

systems. At M-Solutions, we believe this to be a major selling point for our

system. The .NET Framework therefore provides a method of using the

Internet to solve the issues of incompatibilities between systems by using

standards such as XML Web Services.

• The .NET Framework brings the concept of Object Oriented programming to

the Web. It provides a common Application Programming Interface (API) for

all languages. The choice of language used can be changed as the project

proceeds, but the final outcome will be the same.

37

• The .NET Framework makes use of Web Services such as XML to exchange

data, for example, to authorise credit card purchases, using standards such as

HTTP and Simple Object Application Protocol (SOAP) to allow applications

to interoperate. It simplifies the process of writing Web Services.

• ASP.NET is the next generation of the Active Server Pages (ASP) server side

scripting languages and is fundamental to the .NET Framework.

• All code written using the .NET Framework is reduced to the Common

Intermediate Language (CIL), the language used does not affect the

application’s design and operation. The language chosen is simply a syntactic

device for producing a CIL. All applications use the same API – the .NET

Framework Class Library. A class can be written in one language (for

example, C#) and then derived into a different language (for example, Visual

Basic). CIL compilers can support many languages such as Perl or JScript,

each producing the same result as if it were written using C# or Visual Basic.

Internet Information Services (IIS) Web Server:

At M-Solutions, we have decided to implement our Website using the IIS Web

Server 6.0. The main reasons for this are:

1. Reliability – IIS 6.0 is a powerful Web server, which provides a highly

reliable Web application infrastructure. It provides a high-performance

platform for applications built using ASP.NET and the .NET

Framework. IIS 6.0 ensures that one application’s problems do not

cause other applications or the server itself to fail. Administrators can

spend less time managing these applications. It provides a fault tolerant

architecture. Applications can be isolated, but everything else remains

running. The server automatically disables applications that fail too

often within a short period of time.

38

2. Easier Server Management – IIS 6.0 provides a set of management

tools designed to reduce the amount of time it takes to manage Web

server infrastructure. It also features an XML configuration file that

can be modified without having to stop the server. Many applications

can be hosted on a single server, thus reducing hardware costs and site

management costs.

3. Faster Application Development – IIS 6.0, the .NET Framework and

ASP.NET allow developers to develop applications rapidly, using a

wide choice of languages (for example, C# or Visual Basic) and

reliable hosting performance.

4. Increased Security – Authentication and authorization procedures have

been improved in IIS 6.0. Administrators can now grant or deny

authorization to particular computers and users. IIS 6.0 also takes

advantage of the Secure Sockets Layer (SSL) suite of protocols.

Automatic security patch management and a variety of authentication

schemas reinforce security.

5. XML Web Services – IIS 6.0 provides a high performance platform for

XML Web Services. This feature is extremely important if M-

Solutions is to integrate with cinemas’ existing systems.

A survey of the 2005 Fortune Top 1,000 Websites reports that ASP.NET and

IIS Web Server serve the majority of leading U.S. corporate Websites26. IIS is

used by 53.7% of these companies, Apache by 22.7%, Netscape Enterprise by

10.8% and the remaining 12.8% use other Web servers.

43.6% of these companies use ASP.NET, whereas 12.2% use J2EE, JSP or

Tomcat.

26 www.port80Software.com

39

0

10

20

30

40

50

60

Web Server Used

IISApacheNetscape EnterpriseOthers

Figure 15 Servers used by the Fortune Top 1,000 US companies

SQL Server 2000 At M-Solutions, we have chosen to implement SQL Server 2000 Developer

Edition as our database of choice.

1. SQL Server 2000 Developer Edition is designed to allow developers to

build any type of application on top of a SQL Server. It runs on a

variety of platforms and can be easily upgraded to the larger Enterprise

Edition as M-Solutions grows as a business.

2. SQL Server 2000 provides a data management platform that

organisations such as M-Solutions require in a fast changing

environment.

3. SQL Server 2000 is a full database system, which provides core

support for XML Web Services.

4. SQL Server 2000 provides users with critical, timely business

information, which is tailored to their specific information needs.

5. SQL Server 2000 provides data mining capabilities, which allow users

to make predictions about future business trends.

40

M-Solutions provides many useful services for both cinemas using the service

(profiles can be built on users purchasing M-Tickets) and customers

(convenience).

Personalization:

When a registered user logs onto the website, a session cookie is created and

stored on the user’s hard drive. The user can return to the home page and his

user name is extracted from the cookie. If the user closes the Web browser, the

cookie is destroyed. The server will also destroy the cookie after a certain date

expires.

ASP.NET uses sessions to enable Web applications to store each user’s state.

If the site receives no request from a registered user within 20 minutes of

logging in to his personal page, the server discards the session.

Figure 16 A registered user's personal page

Facilities available to registered users

41

M-Solutions allows registered users to:

1. Make an M-Ticket booking – It is no longer necessary to enter information

such as email address, mobile phone number, age group, gender etc. each time

an M-Ticket is booked. The user simply enters the number of M-Tickets he

wants to purchase and his credit card details. The system automatically links

up the M-Ticket sale with the user’s personal information on the database.

This provides registered users with additional convenience and encourages

customers to register their details on the M-Solutions Website. The benefit for

cinemas using M-Solutions is that they can build up a detailed profile of each

of their registered customers and tailor offers of interest to them.

2. View current bookings – Each registered member has the facility to view

their bookings made.

3. Retrieve a Lost M-Ticket – If a registered member accidentally deletes the

text message containing his M-Ticket, he can simply revisit his personal page,

enter the Barcode number and Transaction number of the lost M-Ticket and it

will be re-sent to the user’s registered mobile phone. He can retrieve the

Barcode and Transaction numbers from his personal page or from the

automated email sent to him when he originally booked the M-Ticket. This

facility will cost the user 80c to cover the cost of reissuing the M-Ticket and to

discourage users from carelessly deleting their M-Tickets. A registered user

can also retrieve his lost M-Ticket using his mobile phone handset.

4. Change Membership Details – At any time, a user can change the personal

information stored about him, for example if he purchases a new mobile phone

and wants to replace his old registered number with his new number or if he

no longer wants to receive email newsletters from M-Solutions. The only

detail that cannot be changed is the user’s user name.

5. View Membership Details – At any time, a user can view the personal

information stored about him by M-Solutions.

42

6. Change M-Ticket Booking – A registered user can change the details of his

M-Ticket booking up to 1 hour before the start of performance. He simply

enters the Barcode and Transaction numbers of the M-Ticket concerned and

can then add extra users to the M-Ticket. He is then prompted for his credit

card details to pay the additional charge. Also, if his mobile phone containing

his M-Ticket is lost or stolen, he can change his registered mobile number on

his personal page and then proceed to have the M-Ticket on the lost or stolen

phone cancelled and reissued (with a new Barcode and Transaction number) to

the new phone. The system will no longer recognise the original M-Ticket.

Collaborative Filtering:

Figure 17 Collaborative Filtering applied to a registered user

Movies suggested for a particular

user based on his past purchases

and similar users' purchases

Special offer for registered users purchasing > 4 M-Tickets in August

43

Security: M-Solutions takes the issue of security very seriously and has designed its Website

with security in mind. M-Solutions requires users to provide some personal

information in order to allow cinemas using M-Solutions’ software to build up

profiles on their customers. Data Protection legislation requires that information

stored on computers is stored securely so that it doesn’t fall into the wrong hands.

The following are some of the security policies implemented by M-Solutions.

• Certain pages (for example, pages containing users’ personal information) can

only be accessed by people with administrative privileges to the system, for

example, the cinema manager.

• The Web server identifies registered users using a mechanism known as

authentication. Once a user is authenticated, by supplying a valid user name

and password, he is authorised to view certain pages. The server denies access

to any unauthorised person trying to access users’ individual pages.

• The IIS Web Server accepts connections from remote clients and responds to

HTTP requests through those connections. A remote client cannot access files

from a subdirectory that he doesn’t have access rights to.

• When a remote client requests access to certain files, the Access Control List

checks which resources are being targeted by the user. If the user does not

have authorization to read the file, the server denies him access. IIS also

allows certain domain names to be denied access to the system if required.

• IIS supports the Secure Sockets Layer (SSL) family of protocols, thus

preventing eavesdropping on conversations between Web servers and remote

clients.

44

• Registered users are required to enter a valid user name and password to gain

access to their personal pages and perform such functions as booking M-

Tickets using their user names or change their M-Ticketing information or

personal information. The browser transmits the user name and a hashed

version of the password to the Web server.

Figure 18 IIS forwarding to ASP.NET a user's access token before granting or denying access to that user27

• M-Solutions uses IIS version 6.0 as its Web server due to the fact that it

provides a much more robust security model than its previous versions. When

ASPNET_isapi.dll forwards a HTTP request to ASPNET_wp.exe, it also

forwards an access token, obtained from IIS. ASPNET_wp.exe then performs

security checks on the access token before granting a user access to personal

pages. ASP.NET performs an Access Control List check, using the access

token presented to it from IIS. If the Access Control List is set up to deny a

particular user access to the system, he or she will be denied access. This is

known as Forms Authentication and it relies on the credentials entered at login

as the basis for authorising users.

• Using Forms Authentication, when a user successfully logs in, ASP.NET

issues him with an authentication ticket in the form of a cookie. The user is 27 Diagram reprinted from ‘Programming Microsoft. NET’

IIS

ASP.NET

ASPNET_isapi.dll

Web Application

ASPNET_wp.exe

HTTP Request

45

then redirected to his personal page. The authentication ticket allows that user

to visit and re-visit protected elements of the website, without having to keep

re-entering his user name and password. The lifetime of the authentication

ticket is decided by the website administrators. M-Solutions has limited the

lifetime of the authentication cookie to 30 minutes, using a timeout attribute.

When a person attempts to view a file in a protected directory, ASP.NET

checks to see if the authentication cookie attached to the request is valid. If it

is valid, ASP.NET decrypts it and validates it to ensure that it has not been

tampered with. The user is then redirected to his personal pages. If the

authentication cookie is invalid, the user is redirected back to the login page.

Only registered users can access files in the protected directory. All attempts

made to access the directory other than with a registered user name and

password will be denied and the user redirected to the M-Solutions homepage.

Once a registered user signs out of his personal page, a cookie is created with

an expiry date set to a date in the past, thus destroying the authorization cookie

created. The user will have to log in again if he revisits the site.

Figure 19 An invalid login after the access token supplied by the user was invalid

• All authentication cookies are both encrypted and hashed. The hash value is

appended to the original authentication cookie. This allows ASP.NET to verify

that the authentication cookie has not been tampered with. It does this by re-

hashing the authentication cookie and comparing it to the hash sent with the

cookie. Both cookie and hash value appended are encrypted to ensure that an

authentication cookie cannot be read if it is intercepted.

46

The timeouts attached to authentication cookies help prevent replay attacks.

These timeouts work because M-Solutions uses session cookies rather than

persistent cookies.

• M-Solutions performs validation controls at both the client side and server

side. If a page contains invalid inputs, for example if a user enters 17 digits as

her credit card number or enters letters instead of numbers or leaves the field

blank, the information will not be posted back to the server. Instead, the user

will be prompted to enter the information required. Once the user has entered

the correct information, it is sent to the server and checked again on the server

side before being stored in the database. ASP.NET allows the use of required

field validators, range validators and regular expression validators to check

user inputs on the client side. All validation errors are presented to the user as

a pop-up window containing a summary of the user’s errors.

Figure 20 Validation checks performed on the client side

47

Transaction Number: 996352

Movie: Madagascar

Day: Thursday

Time: 19.00

Adults: 2 Children 2

Figure 21 An M-Ticket

• All user passwords are hashed before being stored in the Members’ table in

the database. This ensures that nobody viewing the Members’ table can access

a user’s password. When a user enters his user name and password, the

password entered is hashed.

Figure 22 The Members' database. All Members' passwords are stored in a hashed format

• If the hashed password entered by the user matches the hashed password

stored in the database, then the user is granted access to his or her personal

page, otherwise, he or she is denied access.

• Users’ credit card information is not accessible to M-Solutions or any of the

cinemas using M-Solutions’ software. All such information proceeds via a

payment gateway to the Credit Card Authorization Centre.

All user passwords are hashed before being stored in the database

48

• Extra security measures implemented by M-Solutions are:

1. When using an M-Ticket, the user must also enter a unique Transaction

Number which is sent with the M-Ticket when it is originally booked.

This prevents people from making up a random barcode and trying to

use it at a cinema.

2. M-Tickets can only be validated at the cinema within 1 hour of the

start of performance. It is computationally infeasible for an attacker to

successfully generate a valid M-Ticket with a valid corresponding

Transaction number and use it at the correct movie, within 1 hour of

the movie starting.

3. M-Tickets can only be reissued to a user’s registered mobile number or

the mobile number used to book the M-Ticket (if the user is not a

registered member).

4. Users who lose their mobile phones and purchase a new one can

update their membership details with the new mobile phone number.

The user can then have his or her M-Ticket reissued to the new phone.

This will cost the user 80c per M-Ticket reissued.

5. M-Solutions plans to implement a 2D barcoding system. This offers

customers extra security as much larger numbers can be converted into

barcodes, thus making it impossible to forge a valid M-Ticket.

49

M-Ticket Purchases using a Mobile Phone Handset:

At M-Solutions, we have provided a number of facilities that registered users can

access on their mobile phone handsets.

Figure 23 Booking an M-Ticket from a Mobile Phone Handset

Registered users are also provided with the facility to retrieve a lost M-Ticket directly

from their mobile phone handsets. It is not necessary for them to retrieve their M-

Ticket Barcode or Transaction numbers from the M-Solutions website. The user

simply enters his or her user name and password, chooses to retrieve an M-Ticket and

is presented with a list of M-Tickets currently booked. The user then chooses the M-

50

Ticket he wishes to retrieve, is asked to confirm his choice and reminded that he will

be charged 80c per M-Ticket retrieved. The M-Ticket is then resent to the user’s

registered mobile phone. Non-registered users can only retrieve a lost M-Ticket on the

website, not from a mobile phone handset.

Figure 24 Retrieving a lost M-Ticket from a Mobile Phone Handset

Registered users are offered the facility to alter the number of people booked on their

M-Tickets. For example, if a user has booked an M-Ticket containing 2 adults and 2

children and wishes to add 1 more adult and 2 more children to the same M-Ticket, he

simply visits his personal page, chooses the ‘Change my M-Ticket Details’ link,

enters the extra adults and children and confirms that he agrees to be charged the extra

people to his credit card. There is no extra charge for this service as it is not necessary

to reissue the M-Ticket.

If a registered user’s mobile phone containing an M-Ticket is lost or stolen, the user

can have the M-Ticket cancelled and reissued to his new mobile phone number. The

reissued M-Ticket has a different barcode; the original M-Ticket’s barcode is null and

void and so cannot be used by anyone else.

51

Figure 25 Adding extra people to a user's M-Ticket booking

User enters Barcode and Transaction numbers of M-Ticket he wants to change

User enters the extra Adult and Children’s seats he wants to add to his M-Ticket

Updated M-Ticket details

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User registers his NEW mobile phone number

User enters details of M-Ticket he wants reissued

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Figure 26 Changing the details of a booked M-Ticket

M-Ticket is reissued to user’s new registered mobile phone number

New Barcode and Transaction number of reissued M-Ticket.

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Management Structure

Figure 27 M-Solutions Management Structure

Chief Executive Officer and Chief Financial Officer – CEO and CFO

Vanessa has been selected as the CEO and CFO. Her duties include:

• The selection and control of budgets.

• Controlling the development, implementation, and monitoring of the

company-wide financial and management systems.

• Reviewing the financial and business activities.

• Providing accurate reports of past and present financial spending activities.

• Projecting future spending and revenue levels.

• Serve as principal advisor to the rest of management in matters relating to

financial and resources management.

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Chief Operations Officer - COO

As COO Donal’s duties are:

• Directing resource and project management.

• Acting as Chief Information Officer (CIO).

• Supervising communication between all management positions.

• Ensuring information flows smoothly within the company.

• Identifying technical issues.

• Supervising administrative, managerial, professional and technical recruiting

(in consultation with other management members).

Chief Technical Officer – CTO

Tom will act as the companies CTO. His job involves:

• Researching potential technologies that could be used by M-solutions.

• Investigating potential solutions to business issues every quarter.

• Staying up to date with potential innovations.

• Analysing the data provided via the customer databases.

• Liaising with the COO.

Director of Marketing and Sales

Louise is the Head of the Marketing and Sales Department. Her responsibilities

include:

• Creating the company’s corporate awareness

• Building a brand name for the product “M-Solutions”.

• Identifying potential customers that can adopt and market the platform

successfully.

• Acting as Sales Representative in Ireland.

• Meeting with clients presenting M-Solutions’ technology and discussing the

sales process.

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Appendix M-Solutions Profit and Loss Profit and Loss, M-solutions Year 1 Sales 41989.00 Less cost of Sales 169220.00 Gross Profit -127231.00Vat @ 21% 26737 Net Profit -153968 Profit and Loss, M-solutions Year 2 Sales 177672.00 Less cost of Sales -130120.00 Gross Profit 47552.00Vat @ 21% 9985 Net Profit 37567.00 Profit and Loss, M-solutions Year 3 Sales 150432.00 Less cost of Sales -130920.00 Gross Profit 19512.00Vat @ 21% 4097 Net Profit 15415.00 15415.00

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Cash Flow Year 1

January February March April May June Opening Balance 60000.00 33973.00 24046.00 14119.00 4192.00 -5735.00 Direct Costs Staff Costs 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00 Legal Fees 10000.00 10000.00 Promotion 1000.00 Equipment 4100.00 Expenses Insurance 100.00 100.00 100.00 100.00 100.00 100.00 Phone Bills 160.00 160.00 160.00 160.00 160.00 160.00 Office Rent 1000.00 Total Debts -26360.00 -10260.00 -10260.00 -10260.00 -10260.00 -20260.00 Sales The Ormonde, Sales 333.00 333.00 333.00 333.00 333.00 333.00 UCI, Sales 1768.00 Dundrum, Sales The Vue, Sales Total Sales 333.00 333.00 333.00 333.00 333.00 2101.00 Account Balance 33973.00 24046.00 14119.00 4192.00 -5735.00 -23894.00

July August September October November December End of yearOpening Balance -23894.00 -32053.00 -46763.00 -59380 -61997.00 -64614.00 60000.00Direct Costs Staff Costs 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00 120000.00Legal Fees 10000.00 10,000 40000.00Promotion 1000.00Equipment 4100.00 Expenses Insurance 100.00 100.00 100.00 100.00 100.00 100.00 1200.00Phone Bills 160.00 160.00 160.00 160.00 160.00 160.00 1920.00Office Rent 1000.00 Total Debts -10260.00 -20260.00 -20260.00 -10260.00 -10260.00 -10260.00 -169220.00 Sales The Ormonde, Sales 333.00 333.00 333.00 333.00 333.00 333.00 3996.00

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UCI, Sales 1768.00 1768.00 1768.00 1768.00 1768.00 1768.00 12376.00Dundrum, Sales 3449.00 3449.00 3449.00 3449.00 3449.00 17245.00The Vue, Sales 2,093.00 2,093.00 2,093.00 2,093.00 8372.00 Total Sales 2101.00 5550.00 7643.00 7643.00 7643.00 7643.00 41989.00 Account Balance -32053.00 -46763.00 -59380 -61997.00 -64614.00 -67231.00 -67231.00 Cash Flow Year 2 Year 2

January April July October End of year Opening Balance -67231.00 -56093.00 -43955.00 -31817.00 -67231.00 Direct Costs Staff Costs 30000.00 30000.00 30000.00 30000.00 120000.00 Legal Fees 1500.00 1500.00 1500.00 1500.00 6000.00 Expenses Insurance 300.00 300.00 300.00 300.00 1200.00 Phone Bills 480.00 480.00 480.00 480.00 1920.00 Office Rent 1000.00 1000.00 Total Debt -33280.00 -32280.00 -32280.00 -32280.00 -130120.00 Sales Sales (The Ormonde) 2013.00 2013.00 2013.00 2013.00 8052.00 Sales (UCI) 14859.00 14859.00 14859.00 14859.00 59436.00 Sales (Dundrum) 20229.00 20229.00 20229.00 20229.00 80916.00 Sales (The Vue) 7317.00 7317.00 7317.00 7317.00 29268.00 Total Sales 44418.00 44418.00 44418.00 44418.00 177672.00 Account Balance -56093.00 -43955.00 -31817.00 -19679.00 -19679.00

59

Cash Flow Year 3 Year 3 January April July October End of year Opening Balance -19679.00 -14801.00 -9923.00 -5045.00 -19679.00 Direct Costs Staff Costs 30000.00 30000.00 30000.00 30000.00 120000.00 Legal Fees 1500.00 1500.00 1500.00 1500.00 6000.00 Expenses Insurance 300.00 300.00 300.00 300.00 1200.00 Phone Bills 480.00 480.00 480.00 480.00 1920.00 Office Rent 450.00 450.00 450.00 450.00 1800.00 Total Debt -32730.00 -32730.00 -32730.00 -32730.00 -130920.00 Sales Sales (The Ormonde) 2352.00 2352.00 2352.00 2352.00 9408.00 Sales (UCI) 13362.00 13362.00 13362.00 13362.00 53448.00 Sales (Dundrum) 8700.00 8700.00 8700.00 8700.00 34800.00 Sales (The Vue) 13194.00 13194.00 13194.00 13194.00 52776.00 Total Sales 37608.00 37608.00 37608.00 37608.00 150432.00 Account Balance -14801.00 -9923.00 -5045.00 -167.00 -167.00

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Explanation of Costs

Funding

Each of our four directors is also investing €15,000 from personal savings. The cash

flow shows that M-Solutions will be in debt for the first three years, almost becoming

profitable at the end of year 3. This cash flow was based on pessimistic figures,

assuming M-Solutions receives no grant. In reality M-Solutions would expect to be in

receipt of a grant from Enterprise Ireland. If this were not possible, a bank loan or

venture capital would be required.

Staff Costs

Each of the directors will earn €25,000 per year before tax.

Legal Fees

Estimated to be around €10,000. Each time the system is implemented in a cinema,

new contracts will need to be drawn up. In year two and three they are estimated to be

around €1,500.

Phone Bills

Four mobile phone contracts at €40 each per month = €160

Office Rent

M-Solutions intends to avail of the Invent Virtual Incubation service. This allows the

use of address and access to facilities for €1,000 per year. In year three, M-Solutions

will rent an office for €450 per month.

Promotion:

Cost of promotional activity carried out will be around €1,000.

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Equipment:

Visual Studio licence: €1,200

SQL Server licence: €600

Web Space: €300

SMS/MMS Server: €2,000

Total: €4,100

62

Case Study Case studies are an important element of the research. They demonstrate that there is

a strong possibility that M-Solutions will be successful. This is because similar

systems are currently being researched or implemented.

E-tickets on airlines to burst into Chinese market28

E-ticketing is going to be one of hot new concepts of 2005; some people say that 2005

will be China's e-ticket year. Experts estimate that in China's domestic air market, the

use of e-tickets will reach 50% during 2005, which will mean that e-ticket sales will

surpass 30 billion RMB (€3.6 billion). Given the attraction of this enormous market,

traditional ticket agents are seeking to enter into technology alliances. IT companies

are gradually infiltrating this market and existing travel sites aren't giving up, so who

in the end will be able to push China’s e-ticket market forward?

The reason for the sudden and rapid development of e-tickets lies in their economic

benefits. A China Southern spokesman confirmed that the proportion of e-tickets had

already reached 20% of tickets sold, saving close to 100 million RMB (€12 million)

in expenses. According to estimates, one regular paper ticket costs about 40 or 50

RMB (€5 to €6), including printing, delivery and settlement costs. Calculating

according to the total number of annual passengers on domestic flights

(approximately 70 million), the whole airline industry could save at least 2.1 billion

RMB (€250m) a year.

Because e-tickets are virtual (not material), they don't have to be delivered, thus

reducing the airlines’ investment in sales outlets and distribution networks. Moreover,

the settlement and ticket payment problems between the airlines and agents are

resolved. With traditional tickets, settlement for tickets took two weeks or more, and

each day as much as 10 million RMB (€1.2 million) wasn't received on time,

occupying significant amounts of airlines' capital resources. Using web-based

payment to settle e-tickets greatly reduces the number of steps in the settlement

process.

28 www.9588.com/mediaroom

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Current process versus reengineered process of obtaining a mobile/paper cinema ticket. Re-Engineering Process Current process

Unique identifier allowing immediate access to customer records via database.

Slow delivery

Consequent time efficiency at pre-booking stage.

High distribution costs

Improved co-ordination of customer information between departments.

High operational costs

Improved co-ordination of system information between departments.

Increased Touting

Reduction of paper intensive procedures

Lack of customer information

Higher throughput in the number of patients

Lack of customer convenience

Tickets can be sold right up to the last minute.

No insurance on ticket

The tickets are delivered immediately. No guarantee on ticket Cheaper than printing and posting a

paper ticket. No integration between

systems The tickets can’t simply be transferred

like a paper ticket. Constant machine failure

Organisers can track attendance at the event automatically.

Poor after sales service

No need to queue at the box office to collect paper tickets.

No need for panic if the customer loses his M-Ticket, it can be cancelled and reissued effortlessly.

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User Manual – for M-Solutions prototype website.

1. Facilities for NON-MEMBERS:

Figure 28 M-Solutions Home Page

The user visits the M-Solutions website (in reality, the cinema’s website using M-

Solutions’ software) – figure 28.

The user can view the week’s movies – the seats available column decreases when an

M-Ticket booking is made so this column is constantly changing – figure 29.

Figure 29 Movies available this week

Seats available for each movie

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A user can then proceed to book an M-Ticket – he is asked whether or not he is a

registered member. A user does not need to be a registered user to purchase an M-

Ticket – figure 30.

Figure 30 User is asked if he is a registered member

If the user is not a registered member and does not wish to become one at this time, he

is presented with an M-Ticket booking form for non-members – figure 31.

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Figure 31 M-Ticket booking form for non-members

The movie, day, time, adult seats and child seats dropdown menus are all dynamic. A

user cannot choose a day without first choosing a movie, or a time without first

choosing a movie and day. This ensures that users cannot book an M-Ticket for a day

or time that a particular movie is not showing.

Once the user has entered all the required information correctly, he is presented with a

confirmation screen – figure 32.

Figure 32 A successful M-Ticket purchase by a non-member

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The user’s M-Ticket is then sent to his mobile phone. The barcode number is

converted into a barcode and sent along with the transaction number and details of the

movie, day and time chosen – figure 33. This information is also sent as an automated

email to the user’s email address. The user is also reminded again of the convenience

offered to him of becoming a registered member.

Transaction Number: 996352

Movie: Madagascar

Day: Thursday

Time: 19.00

Adults: 2 Children 2

Figure 33 An M-Ticket

A user can choose to become a registered member of M-Solutions. He does this by

filling out a membership form – figure 34.

Figure 34 Application to become a registered member

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The user’s user name must be unique – if the user chooses a user name that has

already been chosen by another user, he is asked to choose a different user name.

Upon successfully registering, the user is redirected to the Login screen – figure 35.

Figure 35 A successful user registration

The user can choose to have an M-Ticket reissued to the mobile phone number used

to make the original booking, if he accidentally deletes the M-Ticket – figure 36. This

facility costs the user 80c per M-Ticket reissued.

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Figure 36 Retrieval of a lost M-Ticket (non-members)

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Users can find out more about M-Solutions and mobile ticketing by clicking on the

FAQ page – figure 37.

Figure 37 Frequently Asked Questions about M-Ticketing

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2. Facilities for REGISTERED MEMBERS:

Figure 38 Members' Login Screen

Figure 39 A Registered User's personal page

Once a registered user logs in (figure 38), he is presented with his personalised page,

along with some suggestions of movies of interest to registered users with a similar

profile – figure 39.

New registered user, so no profile built yet

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A registered user can make an M-Ticket booking. Because his personal details are

already stored by M-Solutions, he doesn’t have to reenter them when booking an M-

Ticket. This provides registered users with a booking form that is much more

convenient to fill out – figure 40. The user’s name is already entered automatically on

the booking form and cannot be changed. All he needs to do is choose a movie, day,

time, number of adult seats and number of children’s seats required. As M-Solutions

does not store users’ credit card details, he is required to enter them for each M-Ticket

purchase. In this instance, M-Solutions has placed security as a greater priority than

convenience.

Figure 40 M-Ticket booking form (Members)

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The user is presented with a screen confirming his purchase – figure 41. His M-Ticket

is then sent to his registered mobile phone along with an automated email to his

registered email address.

Figure 41 Confirmation screen for a successful Member's M-Ticket booking

The user’s personal page is updated with information about the booking. As the user

has chosen a movie of genre type ‘Action’, the system suggests a soon to be released

action movie. Also, as the user has booked more than four M-Tickets in the one

transaction, he is presented with a special offer – figure 42.

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Figure 42 User’s personal page – updated with his recent purchase

A registered user can view a list of all M-Tickets currently booked by him – figure 43.

Figure 43 M-Tickets currently booked by this member

User is targeted with a soon to be released movie based on the same genre of M-Ticket purchased

Regular users are targeted with special offers

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A registered user can have his M-Ticket reissued if he accidentally deletes it. This

service costs the user 80c per M-Ticket reissued – figure 44.

Figure 44 Registered user's M-Ticket reissued

A registered user can change or update his personal details, for example change his

registered mobile phone number – figure 45.

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Figure 45 Registered users can update their personal information

A registered user can view his personal details stored by M-Solutions at any time –

figure 46.

Figure 45 Personal details of a registered user

User has updated his Mobile Phone Number

Information already in form so user doesn’t have to reenter it

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A registered user can change the details of his M-Ticket purchase, for example he can

add or remove people from the M-Ticket booking – figure 47.

Figure 46 Changing details of a registered user's M-Ticket purchase

User enters Barcode and Transaction number of the M-Ticket he wants to alter

Extra people are being added to this M-ticket booking

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If a registered user has his mobile phone containing an M-Ticket stolen or loses it, he

can cancel the M-Ticket and reissue it with a new Barcode to his new mobile phone.

The original M-Ticket is then null and void – figure 48.

User enters his new mobile phone number here

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Figure 47 Cancelling and reissuing an M-Ticket from a lost or stolen Mobile Phone

User enters Barcode Number and Transaction Number of M-Ticket he wants cancelled and reissued

M-Ticket is assigned a new Barcode number and Transaction number

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3. Mobile Facilities for MEMBERS:

Registered members have the facility to book M-Tickets directly from their

mobile phones.

Figure 48 Mobile Phone Login Screen

After the user successfully logs in, he is given the choice of booking or retrieving

an M-Ticket – figures 49 and 50.

Figure 49 User choosing to purchase an M-Ticket

User can choose to purchase an M-Ticket or to retrieve an M-Ticket

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The user is then presented with a list of movies, days and times to choose from

and is asked to choose the number of adult’s and children’s M-Tickets he wants to

purchase – figure 51.

Figure 50 User choosing a movie, day, time and the number of adult and children's M-Tickets he wants to purchase

The user can choose to have an M-Ticket reissued using his mobile phone handset

- figure 52.

Figure 51 User chooses the M-Ticket he wants reissued

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He is presented with a list of M-Tickets he has purchased, chooses the one he wants

reissued and confirms his choice.

83

Administrators’ Manual – for M-Solutions:

This manual provides instructions for Administrators (for example, cinema managers)

to use M-Solutions.

All administrators must authenticate themselves using an administrator’s login and

password – figure 53.

Figure 52 Administrators' Login Screen

Upon successfully logging in, the administrator is presented with an administrators’

screen, consisting of a set of options – figure 54.

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Figure 53 Administrators' list of options

An administrator can:

1. Validate a customer’s M-Ticket. He simply asks the customer to scan his M-

Ticket and enter his M-Ticket transaction number. The administrator can then

check the M-Ticket booking details and most importantly, that the M-Ticket is

valid and hasn’t been used already. If the M-Ticket has already been used, the

administrator will be informed by the M-Solutions system that the system is

invalid – figure 55.

85

Figure 54 Administrator's screen after validating an M-Ticket

M-Ticket is Valid

Details of M-Ticket being validated

86

2. Get information on particular M-Ticket Bookings. The administrator can

select a movie and/or day and/or time and/or user gender and find out

information about what types of people are booking particular movies at

particular times and build up profiles of the age groups and genders of people

purchasing action, sci-fi or animation movies – figure 56.

Figure 55 Administrator enters a query and relevant Members' and Non-Members' M-Ticket bookings are returned

Administrator wants to view M-Ticket bookings for ‘Batman Begins’ on Thursday for all performances for both male and female bookings

Non-Member M-Ticket bookings

Members’ M-Ticket bookings

87

3. Get information on registered users and their M-Ticket purchases. The

administrator enters a registered user’s user name and the M-Solutions system

returns the information required – figure 57.

Figure 56 Information about a particular user

88

4. Revalidate a mistakenly invalidated M-Ticket. If a cinema usher mistakenly

invalidated a customer’s M-Ticket, an administrator can immediately

revalidate it – figure 58.

M-Ticket is Invalid

89

Figure 57 Administrator revalidating a mistakenly invalidated M-Ticket

5. View the staff log and add new staff (ushers) to the staff database. Ushers can

validate M-Tickets by asking the customer to scan his M-Ticket and enter his

transaction number on a keypad. Staff members do not have administrative

rights, however – figures 59 and 60.

M-Ticket is Valid

90

Figure 58 The staff log

Figure 59 New staff member (usher) added, with staff but not admin rights

Most recently revalidated M-Ticket

91

6. Get a user profile. An administrator can enter a registered user’s user name

and view all M-Tickets purchased by that member and get a breakdown by

movie genre – figure 61.

Figure 60 Breakdown of M-Tickets booked by this registered member

7. View users targeted by the system. If a user is purchasing M-Tickets regularly,

the system will recognise this and target that user for special offers, for

example half price popcorn or reduced price M-Tickets at quieter times during

the week or up and coming he may be interested in viewing – figure 62.

Administrator can see that this user has already used his M-Ticket booked.

User administrator wants information on

92

Figure 61 Recommendations made by the system based on users’ past purchases

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Using Barcode Technology: After researching various technical solutions for encoding the cinema ticket

information, sending it to the customer’s phone and then allowing it to be validated at

the cinema, the most cost efficient and practical solution was to use barcodes.

As customers are already familiar with barcodes, typically 1D Barcode technology,

which appear on everything from packets of biscuits to technical products, we felt that

our customers would not be intimidated by using them in our solution. Another factor

was, because of the familiarity, customers would feel secure in the fact that their

cinema ticket information was encoded sufficiently and thus only the cinema would

be able to decode the information and validate their ticket.

Figure 63 1 Dimensional Barcode

Figure 64 2 Dimensional Barcode

After further investigation into whether to use 1 Dimensional (1D) or 2

Dimensional (2D) barcodes, we decided to use 2D barcodes as they can contain more

information than conventional 1D barcodes.

One factor in choosing 2D barcodes over conventional barcodes is that 1D barcodes

get wider as more data is encoded. This would result in problems, especially as some

screens on mobile phones are narrower than others. 2D barcodes make use of the

vertical dimension to pack in more data, which in our case results in barcodes, which

are square and which fit nicely on the screens of most mobile phones.

94

When the user has entered their details on the website and has selected an M-Ticket, a

unique transaction number and barcode number is automatically generated. A 2D

barcode is generated from this barcode number and the barcode is sent to the

customer’s mobile phone as an image.

Once the customer shows this image on their mobile phone to the usher at the cinema

the usher scans the 2D barcode with a 2D barcode scanner, the customer is asked to

enter their transaction number (printed under the barcode), thus invalidating the M-

Ticket.

Figure 65: Typical 2D scanner