IBM Unveils Initiative to Help Companies Improve Service to Consumers

New IBM Survey Finds Tech Savvy Consumers Expect Businesses to Provide More Self-Service Options



ARMONK, NY.-IBM (NYSE: IBM) Today announced a new initiative designed to help businesses across multiple industries connect to today’s technology savvy consumer, who -- according to a new IBM survey -- is increasingly self-sufficient.

As part of the IBM Consumer Services Initiative, the company is delivering new technologies and services, including a powerful self-service kiosk with built-in wireless capabilities and point-of-sale options, a new line of self checkout systems, enhanced systems management capabilities, and a services practice focused on delivering customer-facing solutions. IBM also introduced the Self Service Alliance program, intended to drive innovation and create new uses for self-service technologies through collaboration and standards-based technologies.

As part of its ongoing consumer research efforts, IBM detailed results of a U.S. consumer survey that showed 50 percent growth in the use of self-service technology in the past year, with 70 percent of respondents saying they expect businesses to offer more self-service options. Among the 1,000 people surveyed, the most stated reasons for using self-service were access to information and services outside of normal business, less time standing in line, ease-of-use, and greater privacy for certain transactions. (1)

“Consumer expectations have accelerated rapidly over the past 10 years -- like no other time in history, with no sign of a slow down in sight,” said Steve Ladwig, general manager, IBM Retail Store Solutions. “Consumers are demanding even greater flexibility and choice, creating opportunities for companies of all sizes to innovate and change the way consumers connect, interact and transact. This new generation of standards-based kiosks and self checkout technologies will enable IBM Business Partners to develop entirely new applications and create new connections between businesses and consumers. The future possibilities for self-service technologies are endless.”

One of the first products of this global initiative is the all-new ultra-compact self-service kiosk product line with built-in wireless capabilities and an industry-first 19-inch screen. The IBM AnyPlace Kiosk wireless capability allows it to be deployed quickly and easily in almost any environment. Enabled by a Sprint Mobile Broadband ExpressCard, or other wireless providers, consumers can connect to the Internet via kiosks inside stores, airports, hotels and more, significantly increasing their options by blending online experiences with the in-person experience. An IBM Strategic Alliance Partner, Sprint is working with IBM to increase the mobility options for kiosk users. Further information about the Sprint wireless card and mobile broadband coverage can be found at www.sprint.com/mobilebroadband.

The IBM AnyPlace Kiosk product family also includes 17-inch and 15-inch models, offering customers instant access to information, innovative services, and online commerce with dual video support capabilities like digital signage. With a rich multi-media format that includes full-motion video, high-quality audio, realistic 3D graphics and advanced infrared touch-screen technology, these kiosks offer businesses an even greater opportunity to help influence consumer decisions and increase employee productivity without requiring any additional real estate. In line with the IBM Green IT initiative, the new systems are powered by AMD high-performance, low-power Mobile Sempron and Turion dual-core processors.

As part of the IBM AnyPlace product line, IBM also introduced a feature that enables the new AnyPlace Kiosk to function as a flexible point-of-sale system. This AnyPlace POS solution leverages the integrated wireless, optional WAN, and range of integrated touch screens of the AnyPlace Kiosk product family.

Another focus area of this global initiative is the new IBM Self Checkout system which includes groundbreaking software for even greater control and flexibility for deploying self checkout. The new IBM Checkout Environment for Consumer-Service (CHEC) offers retailers a complete application and toolkit for customization. It also opens up opportunities for the IBM Business Partner network to customize, sell and implement IBM Self Checkout solutions.

IBM is the global leader in providing self-service kiosks to hotels and airlines, making it the clear leader in helping clients provide consumers with more choices than any other vendor for check-in and other business transactions.

IBM Client JetBlue Airways has kiosks installed at airport locations coast-to-coast that allow customers with carry-on bags to check in, select or change seat assignments, and obtain boarding passes.

Virgin Life Care -- a member of Sir Richard Branson’s Virgin Group, is using IBM kiosk technology to meet the needs of consumers in the healthcare field. The company needed a private, convenient way for its HealthMiles members to measure and track biometric data, so they collaborated with IBM to create the award-winning HealthZone system. The HealthMiles program motivates and incents consumers to improve their health by living more active lives. Its members earn rewards for being active, tracking results and improving key body metrics, such as blood pressure, body fat and weight. HealthMiles members currently use HealthZones at employer sites and at participating health clubs.

“In the past, consumers were typically passive participants in health care. They’d visit their doctor once a year, obtain measurements and hope they were healthier than the year before,” said Andrew Pelosi, Virgin Life Care Vice President of Marketing and Consumer Engagement. “Today, as employers share the burden of rising health care costs, consumers are looking for ways to take control of their health. The HealthZone allows them to do this by providing immediate access to validated health data that can be used to set goals, track progress and make educated decisions to live healthier lives.”

As part of its efforts to extend its leadership across multiple industries, IBM has forged relationships with some of the world’s foremost self-service integrators, original equipment manufacturers, hardware enclosure firms and independent software vendors. Already, 55 IBM partners across 11 different countries and 18 different categories of applications have joined the new IBM Self-Service Alliance program, which also leverages innovative airline check-in solutions from IBM Global Services.

Other elements of IBM’s Consumer Service initiative include:

* IBM Customer Facing Solutions Practice -- Leveraging years of expertise in building self-service solutions for customers in the airline, banking and retail marketplace, IBM Global Business Services has created a team of service consultants focused on delivering the next level of innovation for customer facing organizations.
* IBM Remote Management Agent (RMA) -- A component of IBM Store Integration Framework, the Remote Management Agent allows retailers to achieve end-to-end store system management of retail devices and applications along side traditional IT deployment. Retailers can configure and monitor the system remotely, distribute software, track assets and determine and diagnose problems. RMA comes as a free download available on the Web for use with all IBM Retail hardware (POS systems, self checkouts, mobile tablets, kiosks and retail printers).
* New Cashless Self Checkout Models -- Improved IBM ergonomic design and enhanced features allow retailers the flexibility to match end user payment habits to an individual store. Retailers have the option of deploying cash or cashless models, or both, depending on the purchasing demographics of the store.
* Green Design and Manufacturing -- IBM uses state-of-the-art design and manufacturing processes to help extend the life of its self-service technologies, thereby helping to protect the environment. IBM self-service systems are built to help companies expand and upgrade for a long life cycle, which can translate into companies disposing of fewer obsolete products. IBM self-service products also contain no paints in their material finishes, using powder coating for metal and impregnated color for plastic to help reduce harmful emissions that may occur in the painting processes. The IBM worldwide packaging engineering team strives to use materials with recycled content and common shipping methods to help optimize the sustainability of packaging materials.

(1) Survey Methodology

This summary is based on the findings of a telephone survey conducted by Opinion Research Corporation among 1,000 U.S. adults age 18 or older during the period September 6 through 9, 2007.

The total results reported are at the 95 percent confidence level with a margin of error of +/- 3 percent.

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For more information on IBM’s Consumer Services efforts please visit our online press kit at: www.ibm.com/press/consumerservices.