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R O A D MA P TO CHANGE 'V-Engineering': By Michael Kasavana, Contributing Editor How technology will bring vending into the 21st Century, using digital media, Internet connectivity and other tools to dynamically engage the consumer. T here have been many prognos- tications of what technologies are most likely to gain traction in the vending industry in the next few years. While the exact impact of specifi c technologies is debatable, the following "V-Engineering" technol- ogy roadmap is intended to provide insight into advancements most likely to transform the vending industry. While auto-retailing, mobile pay- ments, remote management, cloud computing and digital signage are likely to lead the way, social, local, and mobile (SO-LO-MO) marketing will trail closely behind. When faced with a challenging market, vending operators seek solu- tions that are cost-effective, logical, and lead to profi tability while advanc- ing the image of the industry. Can technology be relied on to be the lead- ing accelerant to make this happen? Will more effi cient automation applications be well received? Is innovative technology cost-effective? The answer to these and related questions may lie in an emerging collection of diverse developments classifi ed herein as "V-Engineering." The thrust of V-Engineering is the advancement of technologies 48 designed to enhance the vending consumer experience while stream- lining the planning, operations, management, and controls neces- sary for a successful business. Many of the developments contained in this article are forthcoming in the near term, and all are expected to be signifi cant game changers within the next 18 to 24 months. V-Engineering emerges Interest in creating enhanced user interactivity at the point of purchase coupled with the availability of emerging payment options, as well as interest in product nutritional/ ingredient disclosure information, provide a powerful basis for redefi n- ing the vending experience. The term V-engineering represents a conglomeration of several advance- ments currently under active devel- opment by technology suppliers and industry practitioners. The application of roadmap strategies such as auto-retailing, digital media, cloud computing, remote management, location- based services, mobile payments, QR codes, user analytics, and dynamic servicing are expected to Automatic Merchandiser VendingMarketWatch.com May 2012 create a tsunami-like impact on the vending industry. Retailing leads vending For some time now, industry practitioners have been cognizant of the fact that a signifi cant aspect restricting profi tability in the vend- ing channel is its failure to parallel retail transactions. This difference represents a major obstacle to industry advancement given that the vending experience works con- trary to other transactions. In a retail transaction, the consumer selects products fi rst and pays for the products second. In a vending interchange, this sequence is reversed as the consumer fi rst establishes credit through coin, cur- rency, or electronic authorization, then makes an item selection. Location Wayfi nding A roadmap to progress for vending Broadcast Advertising Revenue