1. The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance By Melanie Gutsche & Sascha Jork The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 1

2. Index 1.Development, Technological Characteristics and Customer Requirements for Usage of Quick- Response Codes 2.Use and Acceptance of QR-Codes 3.Organizational Innovation Adoption of QR-Code Technology The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 2

3. Index 1.Development, Technological Characteristics and Customer Requirements for Usage of Quick-Response Codes 2.Use and Acceptance of QR-Codes 3.Organizational Innovation Adoption of QR-Code Technology The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 3

4. Development The Quick Response-Code (QR-Code) technology was developed in 1994 by Denso Originally used in logistics License-free Approved as an ISO international standard (ISO/IEC18004:2000) Nowadays used in: –real-time information data –marketing –e-commerce –payment and ticketing –widely accepted Denso Wave Inc. (2012) Soon (2008) Uitz/Harnisch (2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 4

5. Technological Characteristics of QR- Codes and customer requirements for usage Technological Characteristics: 2D-Code Technology, 40different types Integrated error correction from 7% up to 30% Approximately 100 times more data compared to the linear 1D-Code: –7089 numerical or 4296 alphanumerical characters Support JIS Level 1, JIS Level 2, Kanji, Kana and Hiragana symbols. Technical Requirements for End-Users Cellphone with: Camera Moilbe internet connection Installed software for encoding Knuchel et al. (2001) Uitz/Harnisch (2012) and Soon (2008) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 5

6. QR-Code Design Uitz/Harnisch (2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 6

7. Area of application in public transportation Payment: Ticket payment via scanning of QR- Codes Ticketing:Mobile Tickets encoded in a QR- Code Information:Information service providing connection information at stations through scanning of QR- Codes Uitz/Harnisch (2012) Quelle:http://www.mvg-mobil.de/qr The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance BVG 2011 http://www.tagmotion.de/qr-code-itellium.jpg 7

8. Index 1.Development, Technological Characteristics and Customer Requirements for Usage of Quick-Response Codes 2.Use and Acceptance of QR-Codes 3.Organizational Innovation Adoption of QR-Code Technology The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 8

9. Use and Acceptance of QR-Codes Determination of research questions: 1. Has the QR-Code already established itself in the customers everyday life? 2. What are the determinants for that? 3. What makes Non-Users still refuse QR-Codes? 4. How does the typical QR-Code User look like? The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 9

10. Methodology 1. Preparation of the survey questions about Personal data Use of QR-Codes Acceptance and Attitude towards QR-Codes 2. Implementation in Unipark, distribution online (Facebook, Emails) 3. Developing Research Models 4. Analysis and results (Excel and SmartPLS Version 2.0M3) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 10

11. Research Models and Variables User Model Habit: framework of experience, awareness and control Non-User Model Cognitive-based Inertia: being conscious of not taking the best choice Behavior-based Inertia: routine-based use, no awareness about (dis-)advantages Affective-based Inertia: change to a new system would cause stress Polites/Karahanna (2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 11

12. Hypotheses User Model H1: Habit, consisting of a framework of variables, has a significant influence on Use Non-User Model H1: Cognitive-based Inertia has a positive effect on Negative Attitude H2: Behavior-based Inertia has a positive effect on Negative Attitude H3: Affective-based Inertia has a positive effect on Negative Attitude The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 12

13. User Model Perceived Ease of Use Use PEOU3 U2 U1 Perceived Usefulness U3 Habit H1 H2 0,197* 0,151** 0,559*** H3 R² = 0,481 PEOU Objective Usability Output Quality PU3 Output Quality PU1 PU2 PEOU2 PEOU1 H1 T-test siginificance: p*<0,05; **p<0,01;***p<0,001 The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 13

14. Non-User Model Cognitive- based Inertia Negative Attitude IN1.1 IN1.3 IN1.2 AT1 AT2 AT3 Behavior- based Inertia IN1.4 IN1.6 IN1.5 Affective- based Inertia IN2.1 IN2.3 IN2.2 0,279* 0,253* 0,124 R² =0,299 H1 H2 H3 T-test siginificance: p*<0,05; **p<0,01;***p<0,001 The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 14

15. Measurement 1.T-test on significance p*<0,05; **p<0,01;***p<0,001 Bootstrapping 2. Coefficient of Determination (R²) value of variance declares how well the indicator is expressed by the corresponding variable Backhaus et al. (2000) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 15

16. Results Hypotheses and t-test User Model: H1: Habit, consisting of a framework of variables, has a significant influence on Use Non-User Model: H1: Cognitive-based Inertia has a positive effect on Negative Attitude H2: Behavior-based Inertia has a positive effect on Negative Attitude H3: Affective-based Inertia has a positive effect on Negative Attitude The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 16

17. Results Demographics 109 participants 44 per cent students 58 per cent at the age of 21-30 The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 17

18. Results Use of QR-Code 59 per cent dont use Ticketing 71 per cent dont use Payment The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 18

19. The typical QR-Code User Demographics: Male Business student 20-31 years old German 0-1000 /month net lives <50km from Frankfurt Knowledge, Experience: Good knowledge about smartphone and internet use QR-Code technology is common No bad experiences Use in Public Transport: Seldom or never More out of fun For example scanning posters and packages The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 19

20. Conclusion User QR-Code has established itself in the everyday life of some customers Nevertheless: Enterprises should try to attract more customers to use QR-Codes in Public Transportation Payment and Ticketing and ensure constancy Outlook: Are existing advertising campaigns successfull? Redesign? The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance http://www.bahn.de/p/view/buchung/mobil/handy_ticket.shtml 20

21. Conclusion Non-User Behavior-based and cognitive-based Inertia have a huge impact on Negative Attitude What is a possible solution for enterprises in such a situation? Nevertheless: 57 per cent are interested in more information about QR-Code technology and take its use into consideration 44 per cent would use the QR-Code in combination with bonus offers Start information and (if lucrative) bonus campaigns The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 21

22. Index 1.Development, Technological Characteristics and Customer Requirements for Usage of Quick-Response Codes 2.Use and Acceptance of QR-Codes 3.Organizational Innovation Adoption of QR-Code Technology The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 22

23. Organizational Innovation Adoption The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance Adoption Entrepreneurial Objectives Alternative Technologies Example for Adoption Enviromental Influences Possible area of application Technological aspects of QR-Code and requirements for usage 23 Frambach/Schillerwaert (2002)

24. Environmental Influences (1/2) Enviromental influences describe the business environment in relation to the technology. Competitive pressures and positive externalities can promote the adoption process. Cooperated development under the umbrella organization VDV (Verband Deutscher Verkehrsunternehmen). High market penetration of compatible Cellphones –The percentage of people who have cellphones, which are able to use QR-Code Technology, is permanently raising. Frambach/Schillerwaert (2002) VDV (2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 24

25. Entrepreneurial Objectives related to the Adoption of QR-Code Technology Modernization of ticket distribution and payment systems Cost reduction Customers should be personalized – New marketing strategies –Future operative planning V DV (2011) RMV (2008) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 25

26. Alternative Technologies (1/2) Aztec – Code Advantages in Error Correction Protected against forgery High market penetration in the area of boarding tickets Lower data storage capacity Knuchel et al. (2011) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance http://www.bahn.de/p/view/buchung/mobil/handy_ticket.shtml 26

27. Alternative Technologies (2/2) Near Field Communication Wireless standardized interface Able to communicate with other devices in range Simultaneously deployed in customer related areas Low market penetration Expensive Valmestad (2011) Finkenzeller (2008) Knuchel et al. (2011) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance http://www.mobile-zeitgeist.com/wp-content/NFC-vs-QR-1.png 27

28. Example for successfull adoption (1/3) The cashless payment and ticket system where realized, for example, by the Berliner Verkehrsgesellschaften in cooperation with the Deutsche Bahn AG for their public transportation network in Berlin. BVG (2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance http://www.bvg.de 28

29. Example for successfull adoption (2/3) Requirements for User: The customer needs a cellphone with the following requirements: Mobile internet connection Camera Android or Apple iOs as an operationg System Instalation of the apllication Creation of a account: –personal information –detail for electronic bank debiting BVG (2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 29

30. Example for successfull adoption (3/3) Ticketing Starting the trip through the scanning of the available QR-Code. The Ticket is shown in the installed application. At the end of the journey, the customer must scan the QR-Code at his destination point Payment: The calculation of the fee takes place at the end of the operating day. The System automatically calculate the cheapest possile connection. Direct debit transactions are conducted. BVG Informationsbroschüre (2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 30

31. Conclusion The possibility of usage without charges is attractive for business activities Existing products like the Aztec-Code and the NFC technology are competetive products. No uniform usage of the technologies. No possibility to forecast the future perspective of QR-Code usage in the long run. The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 31

32. Thank you for your attention The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 32

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34. Reference List Rhein-Main-Verkehrsverbung GmbH (2008): Das RMV HandyTicket. [Available]:http://www.blic.de/fileadmin/deutsch/work/Workshop081125_26/Vortrag_Hammrich_ZIV.pdf (12.8.2012) Rhein-Main-Verkehrsverbund GmbH (2012): Presse-Information – RMV verkaufte das 1- millionste HandyTicket. [Available]:http://www.rmv.de/linkableblob/de/60798- 54302/data/120417_1_mio_etickets_pdf.pdf (12.11.2012) Rhein-Main-Verkehrsverbund GmbH (2012a): Der RMV in Zahlen [Available]: http://www.rmv.de/de/Verschiedenes/Informationen_zum_RMV/Der_RMV/Wir_ueber_uns/33028/ RMV_in_Zahlen.html The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 34

35. Reference List Soon, T. (2008): QR Code. Synthesis Journal (2008): 59-78 Treiß F. (2011): Deutsche Bahn und BVG bauen Mobile Ticketing aus. Mobilbranche (2011) [Availabel]: http://mobilbranche.de/2011/07/deutsche-bahn-und-bvg-bauen-mobile-ticketing- aus/4287 (12.8.2012) Valmestad, L. (2011): Q(a)R(t) Code Public Art Project: A Convergence of Media and Mobile Technology. Journal of the Art Libraries Society of North America, Vol 30, No 2 (Fall 2011). 70-73 Verband Deutscher Verkehrsunternehmen 2007: Mit dem Handy Bus und Bahn Fahren. [Available]: http://www.dashandyticket.de/artikel260407.html (12.8.2012) Verband Deutscher Verkehrsunternehmen (2012): Statistik 2011 [Available]: http://www.vdv.de/module/layout_upload/st2011_online.pdf (12.15.2012) The QR-Code Technology in Public Transportation: Organizational Innovation Adoption and Technology Acceptance 35