Innosuisse Project: From Wearable to Wallet: A Novel Simulation and Automation Ecosystem for Payment Card Digitization

The Innosuisse project “From Wearable to Wallet: A Novel Simulation and Automation Ecosystem for Payment Card Digitization” pursued an integrated interdisciplinary approach aiming to determine a flexible and comprehensive business ecosystem design for wearable payment solutions. Researchers of OST Rapperswil and Kalaidos FH in Zurich based their findings on technological innovations at the intersection of economics (1), software architecture (2), industrial engineering (3) and robotics (4). The project was realized in close collaboration with the industrial partner wearonize who has been implementing the findings into its product solutions during the project phase and beyond its completion.

1. Ecoystem and market specifications: To determine the market requirements such as platform design/ functionality and product specifications tailored to the business ecosystem, B2B and B2C analyses were conducted. Based on an extensive desk research these analytical steps comprised in depth interviews and focus group methodology. B2C evaluations focused to determine the customer journey, payment process, wearable setup and design thinking as persona definitions and value proposition identification. B2B stakeholder were determined and interviewed in regard to added value of the wearonize solution, openness to be part of a platform, pains and gains in the tokenization process, logistics and sales paradigms. These results were fed into business strategy workshops with wearonize. These workshops were conducted on the framework basis of the platform innovation kit to determine the specifications of the business ecosystem business model around wearonize’s product offerings and services.

2. API Automation: This work package conceptualized and prototyped a novel approach to API design and management. It analyzed and modelled an existing API for credit card tokenization during the online purchase process of wearable devices. It also investigated API support to enable the integration of the online tokenization process in the online sales platforms of manufacturers, banks and credit card issuers. The work package allowed the industry partner to gain insights in and experience with rapid API prototyping and mocking. Based on an existing, realistic API specification, a working prototype of such API simulator was developed, accompanied by a rich set of executable test cases. The work package also yielded a demonstrator of an extended, integrated tool chain which was experimented on with in two fulfilment-as-a-service scenarios from the industry partner. In addition to API specifications, sample configurations for the integration middleware Apache Camel and the software JaamSim could also be generated from the business vision and were hence integrated into discrete event simulation of the project.

3. Descrete Event Simulation: This vital part of the project aims to provide measurable results for the whole ecosystem at an early stage in terms of handling, storage, feeding and commissioning of passive wearables before, during and after the tokenization process. In a first step a virtual simulation model was developed, which can grow and adapt in alignment with iterative development of the ecosystem. Secondly a simulation model was used to support the project progress with testing and assumption verification. Aligned with the technical concepts of API Automation, the robotic delivery center and using market insights from the ecosystem and market analysis. To fulfil the objectives, discrete event-oriented Simulation (DES) was applied, in which system states and values change abruptly due to certain random events at discrete points in time. Modeling the overall system is an interactive activity involving all project partners: Process steps, process flows, and relevant interactions were identified and visualized with Business Process Management Notation (BPMN). The result is a simulation model that encompasses wearonize's ecosystem, including key supply chain members. The model is controlled and modified by a selection of 53 modifiable parameters. Based on “what if” questions a total of 9 scenarios with respective parameter settings were run and evaluated, each with different setups. This led to the following conclusions: The simulation primarily identified the manufacturing process, including virtualization and tokenization, as critical. In turn, a number of factors such as the number of assembly stations, tokenization machines, trays, but also storage sizes and re- or quantities could be adjusted and optimized. For the respective simulation stations, local optimum values were determined for the simulation model, which can be used as a reference value for the real system. In addition, a process change was proposed that aims to minimize the number of storage units in the process and thus to promote the process flow and to be able to produce faster and more effectively. Based on the agreed process model, an initial simulation model was created in JaamSim and was validated and modified with the help of test runs.

4. Robotic delivery center: The robotic delivery center is decisive for a successful workflow within the ecosystem. It enables passive device providers to load payment tokens onsite; both cost-effective and free of human errors. In two iteration steps the LD60 robot platform from Omron was equipped with telescopic arms for tray handling, NFC read/write devices, a camera, a computer using a modular design and an additional lift module to meet wearonize’s specifications.

The overall result of the project is a fully tested and functional business ecosystem environment with relevant technical systems, production processes and logistics solutions that are highly flexible to adapt to different business scenarios. The first production grade delivery center was set up at the Swatch Groups’s distribution center Distico SA in Biel. Today this delivery center carries more than 25 different SwatchPAY! models from three product lines: New Gent, Gent and Big Bold. Thousands of payments enabled watches run through this center and are delivered to customers throughout Europe.
Based on the work results and components developed in this project, wearonize today is the leading enabler of payment enabled wearables and fashion accessories in Europe. Furthermore, Wearables tokenized by wearonize are generating by far the most wearable payment transaction at POSs across Europe.