Thursday, March 31, 2011

Japan's QR Code

When Japan was struck by magnitude 8.9 earthquake last 11th of March 2011, several international organizations sent their assistance, calling for donations through the mainstream media and the internet. One interesting campaign, though not yet standardized in other countries like the Philippines was the utilization of the QR code1 that has appeared in various websites, personal blogs, Facebook, Twitter, almost everywhere. Example of the campaign designed by SET Japan (see image 1) links the QR code (short for Quick Response) to the Japanese Red Cross site as every smartphone and tablet users could directly make donations from the comfort of their handsets. International news organization CNN, has also began testing QR code on-air that would also direct people to a site where they can help Japanese earthquake and tsunami victims (see image 2). The QR code not only becomes a medium to help the Japanese but also made people outside Japan realized its practical usage, flexibility, and more importantly, education with regards to the application of the technology.

Image 1. Help Japan Now QR code by SET Japan 

Image 2. QR code on-air by CNN

So what is a QR code? It may appear to other people as crossword puzzle or a blown-up pixels. Yet others who are already familiar with the code may simply describe it as bar code on steroids. Invented in 1994 by a Japanese company called Denso Wave, a subsidy of Toyota, QR code is a specific matrix barcode (or two-dimensional code), readable by dedicated QR barcode readers, camera phones and tablets. The code consists of black modules arranged in a square pattern on a white background. The information encoded can be text, URL or other data2. The inventor of the technology has elected not to exercise their patent rights on QR codes which has encouraged their widespread use. Japan has been using QR codes in their wide variety of applications, such as manufacturing, logistics, and sales applications. In terms of common everyday use, QR code is being printed on their paperback spines, rental video cases, and sushi plates used in revolving sushi bars. It is ubiquitous in Japan as it already lost its novelty value that have simply blended into the background, just like the other common symbols such as traffic signs3.

As smartphone usage are gaining momentum in the global market and QR scanning application are standardized inside these handsets, it may very well generate interest, obviously not in Japan but in other countries such as the Philippines. In the United States, QR codes have become mainstream in marketing that have been integrated into both traditional and interactive campaigns. QR codes can be seen in their magazine and billboard ads, storefront displays, business cards, event ticketing and tracking, direct mail campaigns, websites and even on T-shirts just to name a few. In New York City, Mayor Michael Bloomberg has announced last 22nd of February 2011, the use of QR codes on building permits. This is to provide New Yorkers with easy access to information related to buildings and construction sites throughout the city. All New York permits are expected to have QR codes by roughly 20134. Starbucks has also applied the code since 2009 in their Starbucks Card Mobile iPhone app as an alternative payment for a cup of coffee. A barista would just simply scan the QR code in the smartphone’s screen when it comes time to pay up. As of today, there are only less than twenty Starbucks stores that have implemented the technology in the US.

To clearly illustrate the concept of QR code, you may try this very simple steps and perhaps your Facebook page (or a personal blog) can be used as your testing ground:

1) Open your Facebook page, then copy your URL address.
2) Go to this link to generate your own QR code for free at Kerem Erkan site.
3) From this link, paste or place your Facebook URL address in the Web Site URL field, other fields may provide you options such as color preference, pixel size, etc.
4) Then click Generate Code, as your personal code would only take a few seconds to produce. You may drag your QR code result to your desktop (for sample output, see image 3).
5) Open the QR scanning app from your smartphone or tablet. If you still do not have the app, you may download this for free at RedLaser site. The application is available for Android, iPhone, Blackberry and Symbian phones (or tablet).
6) Use your smartphone’s (or tablet) camera to focus the code in your screen.
7) The application will recognize the code and automatically open up the link to your Facebook URL address, video or image in your phone’s browser.

Image 3. Sample of QR code which is a link to this blog,
Tech Pinoy Trend. The code was generated at
Kerem Erkan's site.

The QR code is a 15-year old technology, but its widespread use is still in infancy. Some marketers who adopted the QR code early in their campaigns had failed primarily because most people simply do not know what QR codes are and how to decode them. Another factor is that QR codes are not the only 2D code standard available. There are others such as the semacode, shotcode, and the Aztec code, and the data matrix code5. QR codes, however, are more effective than these other codes because of the availability of the QR code scanner in smartphone.

Is the Philippines ready for QR code? The increasing sales of smartphone units which is around 40,000 per month according to Ayala-led Globe Telecom followed by the rising demand for mobile broadband service6 may contribute to ease of penetration of QR code in the country. Another factor is the inclination of Filipinos to novelty that would give them other ‘fashionable’ means to access social networking sites such as Facebook. Based from the latest survey, the country jumped from sixth to fifth spot in the roster of Facebook users globally in the last three months alone, with over 22.5 million members7. This would allow awareness campaign for QR code a clear head start already. Likewise, the country is in the fourth largest number across Asia in Twitter with over 3 million users. No doubt that QR code would be easily grasped by Filipinos, not to mention personal prints for shirts, mugs and even dog tags that would link to their Facebook or Twitter page.

The QR code would also provide opportunity for the country’s micro, small and medium enterprises (MSMEs) in terms of shipping control, logistics, property inventory system, etc., as the technology is basically at minimal cost. Like in the logistics management of food products, data such as product code, expiration date, and manufacturing history, are encoded into QR code similar to the process done at Chukyo Coca-Cola Bottling in Japan. This would enable first-in first-out execution based on expiration date control as well as improves traceability based on manufacturing history control which is among its primary benefits.

Other practical uses are the Access Control System which encodes into QR Code the personal identification data, including company names and individual names, and Property Inventory Control System which encodes into QR Code the property data, including model numbers, user names, and usage locations. These QR Code can be printed to any QR Code compatible printer. There are also Windows compatible software that can be used to create QR Code for printing.

The effectiveness of QR code used for marketing is still under deliberation. There is a June 2009 study from NetAsia Research that showed 76 percent of the Japanese have or to be more precise “know they have”, the ability to access QR Codes. Obviously some use the facility more or less than others but the average across this group is only 1.24 times per week. The main reasons given for scanning the codes are also enlightening. There are really only three, 31.6 percent to use a coupon, 30.9 percent to apply for a special promotion and 22.7 percent to have more information on a product3. They may generate curiosity or local publicity at the moment but QR Codes on real estate signs, business cards, product packaging etc., are not going to increase sales just because they are present. QR Codes that provide deep discounts, free samples, exclusive content etc., may increase sales but the number of scans and conversions will depend on the value of the offering.


References:
1 QR Code is a registered trademark of Denso Wave Incorporated
2 Wikipedia, wikipedia.org/wiki/QR_code
3 The QR Code Hype Cycle by Roger, 2d-code.co.uk/qr-code-hype/
4 TechCrunch, “New York City to Put QR Codes on all Building Permits by 2013” by Lora Kolodny, February 22, 2011
5 BeQRious, “Real World Examples of QR Code Fails”, beqrious.com/show/real-world-examples-of-qr-code-fails
6 abscbnNews.com, “Globe Expects Increasing Demand for Smartphone”, by Lenie Lectura, Business Mirror, 25 November 2010
7 All About World, “Top 10 Countries with the Most Facebook Users in the World 2011”, by Shankar, 03 March 2011

One more thing...

Once people become accustomed to the QR code,
its applications are limitless just like the signage
on the above photo.

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