Can Octopus reach out its tentacles to sustain growth?: The case of Smart Card technology in Hong Kong
John Paynter
Department of Management Science and Information Systems, School of Business and Economics, University of Auckland, New Zealand
Patrick Law
Department of Information Systems and Operations Management, University of Auckland, Auckland, New Zealand
PP: 416
Abstract
This paper explores and evaluates the use of Octopus smart card technology in Hong Kong (HK). Over 7.4 million cards have been sold and 7 million of these are active. The study examines how transport and other sectors can enhance their services through Octopus. Six of the forty organisations using the Hong Kong Octopus card were interviewed. A convenience sample of 800 actual and potential Octopus customers was sent a questionnaire.
Unprecedented growth in the use of smartcard devices had been recorded in recent years. They are expected to bring revolutionary changes to businesses, governments and members of the society. The implications from this study would therefore be useful for those organisations that use or plan to adopt and implement the technology.
Results of the survey are discussed, including penetration rate, figures on card ownership and usage, failure rate, results from promotion schemes and loyalty programmes, success factors, users' reliance on the system and areas of improvement. The major reasons for not using the system are addressed. Findings obtained from interview sessions were integrated in the discussion.
Keywords
case study, smart card technology, Hong Kong users, future applications, lessons
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