Connections
Ingenuity
Seeing the World in 2D
Cutting-edge bar codes offer a new way to access data on the go.
by Elizabeth Millard
A shopper in a Japanese grocery store pulls out her cell phone at the checkout and shows the cashier an online coupon for 10% off her purchase. The cashier scans the ad's bar code, and the savings are recorded instantly on the customer's bill.
The data on the bar code scan is also captured, funneled into a data warehouse and used for analysis by the grocery store's marketing team to gain valuable insights into its consumers' habits.
This type of scenario plays out every day across the world as mobile technology becomes more prevalent and 2D (two-dimensional) bar codes are used more frequently. For data warehousing, this type of information exchange offers an exciting opportunity for delivering value to consumers and collecting valuable information on their usage patterns and preferences.
It's a mutually beneficial exchange that offers consumers and companies new avenues to expanded information.
Starting Out
2D bar codes can hold more information than the conventional, one-dimensional linear bar codes found on consumer packaged goods. As more data gets encoded, traditional bar codes get wider, but 2D technology uses the vertical dimensions of its space to contain more layers of data.
The first 2D bar code—dubbed Code 49—was created by Intermec Corp. in 1988. Developed for applications where only a small amount of space was available for identification technologies, the bar codes were initially used for unit-dose packages in the healthcare field.
Since then, lasers and other types of scanners have allowed 2D bar codes to be read more easily, adding to their popularity. Further promoting the technology and bringing it into the consumer realm, cell phones with scanning abilities have been catching on around the world. The practice is most common in Japan, where early adopters of the technology have provided a model for the rest of the world.
Consumers with camera-equipped cell phones can take photos of 2D bar codes to access additional information.
2D Versus One-Dimensional
Conventional and 2D bar codes are likely to coexist, rather than one prevailing over the other, as each type has its benefits. One-dimensional bar codes still have an advantage in low-capacity applications that require a smaller amount of data.
For example, several applications in retail need only a few characters per bar code, such as price and description, thus one-dimensional bar codes are likely the best solution for that use. But if more data is required—as in the case of online coupons that consumers can use and companies can scan to track purchasing histories—2D bar codes provide space for a few hundred characters to do the job.
More than just providing a platform for getting more data in a smaller space, though, a 2D bar code can provide the link to expanded information streams, such as a commuter tapping into a rail station's up-to-the-minute timetables or a consumer at a store getting more background information on a product by connecting to the manufacturer's website.
Catching On
Though the country is largely behind other parts of the world in adopting the technology, some US companies are ahead of the curve in embracing 2D bar codes. For example, a major retailer put the bar codes on store displays for power tools and TV sets, enabling shoppers to point, click and instantly get online product reviews.
Data Warehousing and Beyond
For the data warehouse, the information exchange that 2D technology enables can be leveraged to generate new data about customer habits and interests.
Because so much information can be encoded in one 2D bar code, it can be used to collect data on a multitude of subjects, such as where an individual shops, which coupons are most popular, what kinds of published content resonates most strongly with a reader and how well a certain marketing campaign is doing. When the bar code is scanned, this data is collected and sent back to the company, opening the doors for immense data analysis opportunities.
On the consumer front, 2D bar codes have the ability to transform how technology users operate in the world, as on-the-go information and savings can be accessed even more quickly than before, with just the wave of a phone. And as 2D bar codes can be put on business cards, windows, posters, product packaging and myriad other surfaces, look for them to pop up wherever you go. Just be ready to point and scan.
Elizabeth Millard lives in Minneapolis and writes about business and technology.