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Touchonix Taps Into Consumer Database

By Robert Bell
12/24/2007 12:00:00 AM
As the number of monitors, screens and interfaces people come in daily contact with increases, getting them to pay attention becomes more difficult.

James Cutburth is president and CEO of Touchonix Systems Inc., a Bentonville company that has teamed with Sprint Nextel and National Cash Register Corp. to develop a retailer's solution to this problem.

Touchonix is a technology Cutburth believes people will not only notice, but also interact with, instantly providing a wealth of useful data to advertisers, retailers and employers.

About 80 percent of development funding for Touchonix came from angel investors with the other 20 percent coming from Sprint and NCR.

"Our expectation is to have 15,000 units in place by the end of 2008," Cutburth said.

The system uses a touch screen interface and has a multitude of applications.

It's easy to install, simple to use, available in a variety of sizes, works around the clock and is durable enough to sustain the everyday wear of the retail store environment.

"We wanted to create something bulletproof but that could be easily installed," he said. "Something that was indestructible and that worked constantly."

In seconds, the unit can e-mail, text message or fax product information, promotional materials, recipes, shopping lists, or coupons to customers and can even detect when someone is approaching it through a proximity sensor, which will provide even more consumer data.

If a hardware store customer wanted to build a deck, he or she could conceivably search through a Touchonix unit and have a list of necessary supplies sent as a text message to a cell phone and perhaps even step-by-step instructions sent via e-mail.

A key feature of the system is utilization of the cell phone, "which is a wonderful medium that enables us to instantaneously provide [users] everything they want right into their hands," Cutburth said.

The system can also handle transactions instantly, as it comes equipped with a credit card slot.

Cutburth and Brad Harvey, Wal-Mart senior account manager with Sprint, have approached several national retailers and vendors both in Northwest Arkansas and around the country about the Touchonix system.

But they also see applications for the system outside of the retail world. Touchonix could prove useful for employers to gather data about employees, or for use in other sales environments, such as onboard commercial airplanes.

An integral part of the system's design is that it is "content agnostic," meaning it can accommodate nearly any type of media including video, Cutburth said.

It is "design agnostic" as well, ranging in size from eight-inch models that can be shelf-mounted, to 15- and 19-inch models for end caps all the way up to 42-inch plasma screen units.

Touchonix recently debuted at Sportsmen's Warehouse in Rogers, where it is used to pitch Wayne's Wicked Enterprises hunting supplies, created by Wayne Woolsey of Fayetteville.

"It's a salesman that's here when Wayne can't be," said Touchonix systems engineer David Newton.

The system's interface is designed to convey information and input succinctly. Users type information into an onscreen keypad and will never have to navigate more than five screens deep into any one application.

 Because the system operates wirelessly via Sprint's network, the installation process is fairly low-impact. All that's needed is a DC outlet.

"We don't have to burden the local store network, and it can be set up anywhere in the store," Cutburth said.

Depending on the dimensions of the unit, prices range from $200-$600 a month - plus a $50 setup fee - per unit. Touchonix staff handles all system installation and support.

"It's literally a plug-and-play, turnkey operation," Cutburth said.

Customer information is sent to and stored at the Touchonix database, and subscribing vendors then get access to the data. This could help them determine very quickly whether a new product rollout or promotion is successful.

Touchonix is also secure. All information collected through the system is encrypted with the company's own unique communications protocol and transmitted via a private Sprint wireless network.

The system will give vendors and retailers "a much tighter focus into the retail environment than they've ever had before," Harvey said.

The Touchonix team has applied for two separate patents and an overall process patent for the system, Cutburth said.

Cutburth and Harvey see other opportunities for Touchonix outside the retail world as well, including use in the workplace to gather employee data.

Hotels, airlines and the medical industry could also use it for various applications.

Harvey said Touchonix has already established a relationship with a major airline.

Units could be installed on the back of seats, and passengers could access different types of content, including news stories, articles, videos and advertising, he said.