1 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Wireless Applications Retail Vertical Dean Olson Team Lead SE

2 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.comAgenda Retail Trends Today’s Applications Forward Visions WLAN Evolution History FHSS vs. DSSS Scenarios

3 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Today’s Retail Real-time updates for bar coding applications, including: Inventory - fewer errors, faster restock Price shelf audits - verifies register price matches shelf labels (products no longer individually labeled) Price labeling - change shelf price, produce new label, and update cash register all within seconds

4 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Today’s Retail (cont.) POS/Cash Register Downloads Update new pricing structures in Real-Time from a Central Site Customer Kiosks Provide coupon generation, based on demographics Provide customer price verification

5 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com New Business Impact Ventures RF Price Label tags - Cut Man Hours More Product information (I.E. Pricing per Unit) Immediate Price Change from a Central Site Multi-Vendor End Node devices – **Propriety Solutions are falling to the way side Allows the Best Technology Devices Leverage Multiple Manufactures for Best Pricing Over all Lower cost of ownership!

6 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com New “Customer Focused” Ventures Interactive touch display attached to cart providing - Store Directory Product Information Associated Products *ROI - Paid Advertisements from Major Manufacturers Web touch-screen stations for Internet services – Locate Manufacture Information Price & Value Comparison Manufactures receive orders Direct Combined with a CDN solution, Retailers have the ability to mine data that the Internet users are referencing PDA Internet access – Customer bring in their.11b PDA with their shopping lists shopping map to benefit the customers’ experiences

7 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Retail WLAN Evolution Spread Spectrum

8 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com WLAN Evolution: 1980s  ISM bands  Telesystems founded Retailers Federated Krogers Sears Wal-Mart 900 MHz Radio Proprietary Network 860 Kbps Speed

9 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com WLAN Evolution: 1990s  ISM bands  Telesystems founded  Telxon acquires Telesystems Retailers Federated Krogers Sears Wal-Mart  IEEE Begins Drafting Network Proprietary Speed 860 Kbps 1 and 2 Mbps Radio 2.4 GHz 900 MHz

10 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com WLAN Evolution:  ISM bands  Telesystems founded  Telxon acquires Telesystems Retailers Federated Krogers Sears Wal-Mart Radio Network Speed  IEEE Begins Drafting  IEEE Ratified  IEEE b Ratified 2.4 GHz 900 MHz Radio 2.4 GHz 860 Kbps 1 and 2 Mbps Speed 11 Mbps Proprietary Network Standards-Based

11 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Spread Spectrum Approaches “BOTH” Technologies Are Viable Direct SequenceFrequency Hopping

12 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Time Frequency 2.4 GHz GHz Frequency 2.4 GHz GHz Frequency HoppingDirect Sequence DS v.s. FH: A Summary on Interference Handling FH system hops around interference Lost packets are retransmitted on next hop Data may be decoded from redundant bits Can move to an alternate channel to avoid interference Channel 1 Channel 3 Channel 2

13 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Data Rates - DS vs. FH The “over-the-air” data rate at a given range, given similar implementations, will favor DSSS by a factor of 2 to 1 At 1Mbps, a DSSS system should have twice the range of a 1Mbps FHSS A DSSS system at 2Mbps will offer comparable range to 1Mbps FHSS For these reasons, the data rate advantage goes to DSSS

14 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Range - DS vs. FH Range depends on a number of implementation details; these include: – Environmental conditions – Power transmission – Antenna system (including antenna gain, cable loss, and whether diversity is used) – Radio sensitivity – Processing gain (processing gain results from the DSSS technique of redundantly transmitting bit) Because of this processing gain, the DSSS technology will have more range than FHSS at a given data rate

15 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Scalability—DS vs. FH Scalability is the ability to locate more than one AP in the same area, increasing the bandwidth of that area for all users local to that AP Direct Sequence Blue= 11Mb Red=11Mb Total Bandwidth=33MB!!! Green=11Mb

16 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Scalability—FH vs. DS Cost Effective?

17 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Retail Scenarios

18 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Retail Design In-Store Maximum Coverage NON-Autorate Negotiation (2 Mbps) Cabling Available to Middle of Store Ground Plane Antennas—Well Hidden 2000’ 850’ Expanded Opportunity by implementing Inline powered switches w/350’s Powered

19 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Peripheral Applications In-Store Consumer Bar Coders Kiosk Applications Price Checkers Wireless POS 2000’ 850’ Staff Support Data & Telephony

20 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Retail Design Parking Lot Spontaneous Coverage Repeater Mode Extend Wireless Coverage when needed.. Parking Lot Store No LAN Wiring

21 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com IEEE Compliance Offers Retail Retailing has many vendors wireless devices Bar coders, phones, price checkers, etc. A very high-performance WLAN system Efficient MAC and high-quality radio products perform better than proprietary systems Client interoperability WEP-standard privacy and authentication Standards-based migration path for system growth

22 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com Some Present Retail Users of Cisco Wireless

23 WB-Retail-Marketing-01/01-do© 2001, Cisco Systems, Inc. – CONFIDENTIAL! Cisco.com