KIOSK Information Systems
and Dell team up to win new
business and reduce kiosk
downtime by 50 percent
• OEM Solution
“Dell has a much lower
failure rate than other
computer vendors we
have used, and Dell
reliability has given
our newest customer
confidence that
they made the
right choice.”
Tom Weaver, Chief Marketing Officer,
KIOSK Information Systems
Customer profile
Company: KIOSK Information Systems
Industry: Self-service kiosk technology
Country: Louisville, CO (USA)
Website: www.kiosk.com
Business need
Win the kiosk business of the world’s second-largest cell phone
provider, which had been disappointed by hardware failures and service
problems with other kiosk vendors.
Solution
KIOSK Information Systems, a Dell OEM Solutions Channel
Partner, helps implement a reliable bill payment kiosk solution and
comprehensive service plan to win the new business.
Benefits
• New kiosk design reduces system
downtime by 50 percent compared
with previous suppliers’ systems
• Cuts inventory costs for
KIOSK Information Systems by
approximately 15-20 percent
• Decreases service response time
by 45 percent by integrating Dell
into the customer service-level
agreement development process
• Ensures timely delivery using the
Dell “just-in-time” delivery model
• Wins a major new customer
representing over US$15 million
in revenue
They are an essential part of modern life. With them
you can buy tickets, print photos, place orders, and pay
bills. They are kiosks—self-service terminals that whisk
customers through lines at airports, supermarkets, and
amusement parks. KIOSK Information Systems is leading
the way as one of the largest producers of kiosks globally,
with more than 100,000 machines currently deployed.
“Combining Dell’s
reputation for
reliable technology
with KIOSK’s selfservice solution
expertise definitely
positioned us as
the most credible
OEM solution.”
Abby Boes, Senior Account Executive,
KIOSK Information Systems
The KIOSK team knows that having a
reliable computer at the heart of each
kiosk is essential for keeping its customers
in business. “Kiosks generate millions of
dollars in revenue for our customers, so
they can’t afford downtime,” explains Tom
Weaver, chief marketing officer at KIOSK.
“If the computer in a kiosk goes down, our
customers can lose thousands of dollars
per hour.”
Systems to potentially win the in-store
technology side of the account. To win
the new business, the Dell and KIOSK
team needed to present a high-caliber
solution that would enable the selfservice kiosks to make a stronger profit
contribution to the telecom’s stores.
Computer reliability had to be excellent,
and fast service response was essential if
a problem did occur.
Downtime was plaguing a major
telecommunications company that was
having reliability problems with another
kiosk vendor. “The telecom company,
one of the world’s largest cell phone
providers, had already tried two other
kiosk vendors,” says Weaver. “The first one
failed to provide a timely service response.
Computers from the second had a
very high failure rate. In both cases, the
telecom experienced costly downtime.”
Platform stability was another important
requirement. KIOSK needed to know
that the specified computer wouldn’t
change during the manufacturing cycle.
“Using alternate suppliers, we’ve had the
experience of placing an order for 500
computers and then seeing 250 of them
arrive with a different configuration
because the computer manufacturer
made a sudden change,” says Weaver.
“That can force delays and added costs
tied to recertifying customer software to
run on an altered configuration.”
Located in the telecom’s retail stores,
the kiosks are important because they
enable cellular customers to pay their
monthly bills, check upgrade status, and
review service plan information without
waiting in line at the counter. The kiosks
bring in revenue and boost counter
sales by allowing store personnel
to focus on selling new phones
and subscriber services, rather than
managing routine bill payments.
But downtime had been high, cutting
into store earnings, and it was clear
that the telecom company needed a
new solution. The telecom had been
using Dell desktop computers and
servers for some time, but had not
considered Dell a source for in-store
point-of-sale technology. The Dell
team learned of the kiosk problems
and teamed up with KIOSK Information
Finally, KIOSK required fast, flexible
computer manufacturing and delivery
Technology at work
Services
SLA design and service
performance monitoring
Hardware
Dell™ OptiPlex™ 780 computer
Dell E170S 17” flat panel
monitors
Software
Proprietary customer software
to win the new business. “If we won
the account, we would have to deploy
the kiosks quickly but not all at once,”
says Weaver. “We needed a computer
supplier that could provide ‘just-in-time’
delivery and keep pace with our weekly
field installation rate until the order was
completely fulfilled.”
KIOSK partners with Dell OEM
The KIOSK team partnered with Dell
OEM without hesitation. “The computer
is easily the most crucial component
in the system configuration,” says
Weaver. “Over the years, we have used
Dell computers in the vast majority of
our kiosk solutions, so we already knew
that Dell computers are reliable and
the company provides great service.
Selecting Dell is essentially a foregone
conclusion within KIOSK’s engineering
and supply-line management teams.”
Dell understood the importance of
change management for KIOSK. “As we’ve
worked with the Dell team over time, they
have consistently demonstrated in-depth
knowledge of the unique requirements
of the OEM marketplace,” says Weaver.
“For example, the Dell OEM program is
designed to give us a heads-up well in
advance of any revisions to the computer,
providing more than enough time to
adjust our process accordingly. That
platform stability makes Dell the right
choice for the most efficient supply chain.”
The Dell supply chain and inventory
management capabilities also fit the
KIOSK requirements for a phased
installation process. “The Dell team
agreed to incremental deliveries of
the computers that kept pace with the
customer’s installation schedule so we
weren’t forced to absorb the inventory
before it was needed.” says Weaver.
KIOSK and Dell team up to win
new business
Dell and KIOSK representatives met with
the telecom company together. As a
member of the Dell OEM Advantage
program, KIOSK can jointly engage
customers in need of a kiosk solution—
providing additional reach to KIOSK, more
visibility for their kiosk solutions, and
proliferation of industry standards through
Dell high-performance technology.
The meeting was a success. “We won
the account, and Dell was a big part of
the positive outcome,” says Abby Boes,
senior account executive at KIOSK. “Even
though KIOSK is a leader in our industry,
we’re not a household name. Dell is a
well-known and respected supplier with
strong customer credibility. There is no
question that partnering with Dell on
this account gave the customer added
confidence in the solution.”
Dell OptiPlex computers and LCD
screens integrate easily into kiosks
Based on its long-standing relationship
with Dell, the KIOSK team again
selected the Dell™ OptiPlex™ 780 as the
computer for the new platform. The
standards-based Dell computers are
easy for KIOSK to integrate with other
hardware components, including the
credit-card readers, bill acceptors, and
printers used for the kiosks. The KIOSK
team also chose LCD screens from
Dell. “The screens from Dell OEM are
designed for embedded applications
like kiosks, so they stand up to heavy use
and temperature extremes,” says Weaver.
“That makes them a great match for the
reliable Dell computer systems.”
When it is time to manufacture the
kiosks, Dell ships the OptiPlex systems
and LCD screens to the KIOSK team,
which then integrates the total
component set and loads the application
software. After KIOSK ships out the
finished product, Dell and KIOSK work
together to provide integrated customer
support for the new telecom customer.
KIOSK and Dell construct winning
SLA, speeding response by
45 percent
While price and delivery are always key,
field service and aggressive response
times were a critical part of winning
this telecom account. By leveraging
the Dell sales representative’s account
knowledge and service-level agreement
(SLA) contract experience, KIOSK
and Dell worked together to quickly
construct an SLA that was responsive,
aggressive, and achievable. Boes
adds, “In this deal, it was imperative to
propose a total solution which directly
resolved field service problems that were
undermining the client’s self-service
project profitability. Dell and KIOSK
won the business by creating a service
proposal that promised and delivered a
45 percent improvement in field service
“We see tremendous
value for our clients
in the OptiPlex
XE because we
do more outdoor
deployments than
anybody else in
the industry.”
Tom Weaver, Chief Marketing Officer,
KIOSK Information Systems
response.” Additionally, the redesigned
equipment on Dell’s computing platform
has substantially reduced the base failure
rates, resulting in a much more reliable
and profitable deployment.
Dell OEM helps reduce kiosk
downtime by 50 percent
By adopting the Dell hardware–based
kiosk, the telecom company has reduced
downtime by approximately 50 percent.
“Dell has a much lower failure rate than
other computer vendors we have used,
and Dell reliability has given our newest
customer confidence that they made the
right choice,” says Weaver. “The reduced
downtime enables our customer to
minimize sales disruptions, reinforce its
reputation as a premier service provider,
and retain thousands of dollars of instore revenue that might otherwise be
lost. Selecting the best technology to
support maximum system uptime will
ultimately provide the customer with the
lowest cost of ownership.”
“Just-in-time” delivery saves
approximately 15-20 percent in
inventory costs
With Dell building the OptiPlex 780
computers and LCDs to order and
inventorying them at the Dell factory,
KIOSK avoided the expense of carrying
costs and dedicated warehouse space
for the computers. “We estimate we
saved at least 15 to 20 percent in carrying
costs because we weren’t stuck with
warehousing huge pallets of computers
and LCDs in advance,” says Boes.
For the telecommunications retailer
account, KIOSK needed to install 125
kiosks per week. Dell OEM provided
the computers and LCD screens on an
as-needed basis so KIOSK could get
them into its manufacturing line and
out into the field on schedule. “Dell had
the flexibility to match our installation
rate, and that really reduced our costs,”
says Boes. “In a nationwide deployment
with thousands of kiosks, JIT delivery
is a substantial element in meeting the
overall cost and delivery goals.”
The KIOSK team also appreciates the fact
that Dell OEM can quickly deliver even
larger orders when needed. “We perform
huge nationwide deployments,” Weaver
explains. “We’ve done jobs where we
have installed 3,000 units in less than
six weeks. We are confident that we
can produce and install more units than
anybody else in the industry, and the
ability of Dell to get us the equipment
we need when we need it is a key
component of our scalability and agility.”
KIOSK standardizes on
Dell platforms
Based on its positive experience with Dell
OEM, KIOSK uses Dell computers for the
vast majority of its kiosks. “We use Dell
OptiPlex computers in virtually every kiosk
we build now. Plus, Dell LCD monitors
are our standard display,” says Weaver. “In
the past, we considered integrating white
boxes or generic systems. But when you
assess the financial impact of service
requirements, replacement parts, and the
timely delivery of new systems, the cost
of ownership is much higher with that
strategy. Standardizing on Dell platforms
enables KIOSK to provide exceptional field
reliability, while simultaneously minimizing
product lead time and service costs.”
The KIOSK team is now evaluating the
Dell OptiPlex XE computer for kiosks
in harsh environments. The OptiPlex
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June 2010. © 2010 Dell Inc. Dell is a trademark of Dell Inc. Other trademarks and trade names may be used in
this document to refer to either the entities claiming the marks and names or their products. This case study is
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10008626
XE offers long-term stability, remote
management, and robust purpose-built
features that enable it to operate at up
to 55°C and in high-dust environments.
“We see tremendous value for our clients
in the OptiPlex XE because we do more
outdoor deployments than anybody else
in the industry,” says Weaver. “We can
also use them in airports, train stations,
and other heavy-duty locations. Plus, the
three-and-a-half-year life cycle gives us
great stability so we can avoid expensive
recertification costs.”
Weaver also likes the remote
management features built into the
Dell OptiPlex XE platform. “With our
customers’ revenue at stake if a kiosk
goes down, we’re always looking for
ways to boost uptime,” says Weaver.
“The OptiPlex XE has an optional
integrated watchdog timer with selfmonitoring capabilities that can restore
a hung system to a working state. We
think that will help reduce downtime and
also cut the number of in-person visits
required by our support personnel.”
Combining strengths to beat
the competition
The KIOSK team credits Dell with
helping to win and retain the new
telecommunications customer, adding
to a roster of other Fortune 1000
KIOSK clients. “We were up against
strong competition from another major
equipment provider,” says Boes. “We
won the account by leveraging the best
of both companies. Combining Dell’s
reputation for reliable technology with
KIOSK’s self-service solution expertise
definitely positioned us as the most
credible OEM solution.”