Disney Intelligent System

Prepared by Peter Lichang Kuo

There are six Disney parks in the world, one each in Orlando, Florida, and Anaheim, California, plus the other four in Paris, Tokyo, Hong Kong and Shanghai. The annual revenue is about USD 24.5 billion, and the number of visitors a year is about 140 million, with an average consumption about USD 175 per person. The common price of "Intellectual Property Right" (IPR) claims is generally "0.5%~5%".

* Mickey Mouse at Disneyland

In 1979, I went to Disneyworld in Florida. I quickly fulfilled my wish by crossing the Red Sea and riding Space Mountain. In 1993, I took my wife and children to Disneyland in Anaheim, California. We waited in line for two hours to ride on Space Mountain. After playing only a few themes all day long, we were already dizzy from the sun. My wife, who was sitting and resting under the eaves, said that "It's strange, why does such a big company not use 'contactless technology/ cashless transaction system' to improve these problems?" Let tourists wait in long lines, in addition to having a very poor user experience, the business of Disney stores is not much better.

* Taking my wife and kids to Disneyland

We came all the way to Disneyland in the United States and spent an additional NTD 20,000 in admission fees, but in the end we could only ride the "carousel". The price was too high to satisfy, and we also lamented that Disney's hospitality was really open to question.

* Traveling all the way to Disneyland to ride the carousel

Since 1986, Linda Din, my wife said that "I don't want those taxi drivers to be robbed any more---" She started inventing a commercial mechanism where there is no cash in the car, but the driver can still make money; NTD one hundred million was gone with the wind just one move. In 1992, Mrs. Ruth Handler, who invented "Barbie Doll", invited me to the United States to attend a Christmas party, hoping that I would care about the company she founded again. At that time, there happened to be a factory with dozens of acres for sale, and I happened to be able to afford it; so I took my wife and children to America during the Lunar New Year of 1993. I planned to resettle them in Seattle, which had a better environment. I could travel back and forth between the north and the south. Great things might be accomplished as the resources came together, the world might change.

* Space Needle in Seattle

Unfortunately, the bad attitude of the U.S. customs officers made my wife give up the idea of immigrating to America and came back to continue her "Rich Taiwan Plan." Her invention was widely appreciated by representatives from various economies at the APEC in Vancouver in 1997, and she was encouraged to apply for a "U.S. invention patent"; meanwhile, she was also invited to be a speaker at APEC 1998, and then she based on her invention on the stage of APEC to gain the bill of "Steering the E-Commerce", which was used to implement the executive order of "the Framework of the Global E-Commerce" signed by US President Bill Clinton.

* Linda Din’s invention was widely appreciated at APEC 1997

Because the reviewers who reviewed the patent application back then had no idea about "Contactless" and "Cashless", the patent application was full of twists and turns; we specially integrated the ATM and vending machine into a smart automation called "VAM" to demonstrate the entire process of the cashless transaction system of "the electronic store system" (TES for short). The US invention patent was named "Vending MachineOperated By A Chip Card". The focus was on "Chip Card" rather than "Vending Machine".

* We invented VAM to perform TES

The summary of the U.S. invention patent content was as follows:

A vending machine operated by a “chip card” includes a housing having a window to display goods to be sold, multiple selection buttons (13) associated with the appropriate goods, a display to show the sum of money recorded on the chip card and an access bin from which the goods are obtained from the vending machine.

* TranSmart Chip Card (physical)

The vending machine further includes an electronic control unit for storing information about prices for the goods, an “inductive card reader” for reading information from and writing information on the chip card by induction, a checker for checking the stock of the goods, a transporter for transferring the goods to the access bin, multiple indicators to show what goods are out of stock, and multiple lamps to indicate what goods are available based on the sum of money recorded on the chip card. The inductive card reader is electrically connected to the electronic control unit to which the checker, the transporter, the indicators, the buttons and the lamps are electrically connected.

* TranSmart chip card and its inductive card reader (physical)

The U.S. patent agent revised my manuscript completely, but we could still see the key coupler of "chip card" and "inductive card reader." And the important "read-erase-write" actions: “an inductive card reader for reading information from and writing information on the chip card by induction.” We could also see "receiving and transmitting information" in the description part: “The inductive card reader (14) has an inductive read/write head (140) to receive information from and transmit information to the chip card (20) by induction.”

An electronic control unit for storing information about prices for said goods; an “inductive card reader” for reading information from and writing information on said “chip card” by induction, wherein the inductive card reader comprises:

1. a micro control unit electrically connected to said electronic control unit;

2. a communication module electrically connected between said micro control unit and a host computer in an “administrative center”;

3. a display module electrically connected to said micro control unit to control the operation of said display;

4. a “firewall” electrically connected to said micro control unit; and

5. an inductive read/write head electrically connected to said firewall for reading information from and writing information on said chip card by induction;

6. a checker for checking the stock of said goods;

7. a transporter for transferring said goods to said access bin;

8. multiple indicators to show what goods are out of stock.

The 8 points excerpted above have a large amount of information – even if they were modified ignorantly, the "microelectronic control unit" (microcontroller) was composed of electronic components such as CPU/ RAM/ SoC/ modulator. The communication module consisted of modem and de-modulator, and the communication sent to the enterprise's "ICT Control Center" was changed to be connected to the host of the "Administration Center". The ordinary vending machine is just a "refrigerator-like product" with a few selector switches installed. How can such a simple device need such high-end electronic components and communication equipment? As for the "firewall" - it was only after the Internet became popular that everyone gradually realized that the "firewall" was not a building material, but an cybersecurity facility. There were also a checker to monitor inventory, and a transporter was used to transfer sales information of goods. These were "high-end inventions" that interacted with the corporate control center to build a contactless induction cashless transaction system.

* Microcontroller was filled with high-end electronic components

The worst thing was that all the words I wrote about "Contactless" were deleted by the stupid US patent agent, leaving only "induction". The most ridiculous thing was that the word "Cashless" (non-cash), those idiots were still arguing with me about "moneytless" (no money); I told them: "There is 'money' in transactions in our e-commerce system, but you don’t need to use “cash” (coin or bill) transactions---" In the end, they actually deleted "Cashless" from the article without my authorization. Although it was a pity, it did not undermine the importance of the world's first "Systemic Patent". After all, even Disney, which later fell into dilemma, cited the content of our invention patent (US 6304796) in 2008; this application has become the most important document in the industry.

In addition to the above invention patents, contactless induction technology (contactless-tech) can also be used in "Entry Security Device" (ESD), "Transmission & Transaction Reading Device" (TRD) and "Electronic Toll Collection for transportation" (ETC), so I also wrote those patent applications by the way. Later, each of them all obtained the patent certificates, which became the basis for the "Global Channel-TES" proposal in APEC.

After returning from APEC 1999 in New Zealand, I wrote a book called "Mission" and sent it to President Lee Teng-hui, explaining that TES, the e-commerce system composed of contactless-tech and cashless systems, had become a cross-century industry, and was extremely important to make Taiwan wealthy; therefore, on May 24, 1999, we brought a portable card reader to the Taipei City Hall to demonstrate the wide range of applications of contactless chip card. Later, when the Taipei MRT was adopted in 2002, the contactless chip card was called "EasyCard" and soon became popular all over the world -- for example, it was called "Suica" in Japan.

* Taipei City Hall Briefing TES (1999/5/24)

Walter Elias Disney (1901~1966) was a talented painter, he actually painted the disgusting mouse into the beloved "Mickey" (Mickey Mouse). He made Mickey into a cartoon film, which became the most popular TV program of that era. Later, as long as the movies produced by Disney were all blockbusters, Walt Disney also became the person who had won the most Oscars so far.

Walt Disney created the world's first "Disneyland" in Anaheim, California, in 1955; At the same time, planning began for “Disneyworld” in Orlando, Florida, USA. Disneyworld opened in 1971, five years after Walt's death. It is said that it covered an area of 122 square kilometers and had four theme parks. It is also a privileged self-tax zone in Florida.

Disneyland opened in 1956, and "Disneyland Records" was established to release music records; and the cartoons they released were all hits. Ruth Handler, the inventor of "Barbie Doll", said: "I also relied on Disney's hit films and advertising to make "Barbie" a best-selling doll in the world." Walt Disney drove the global entertainment industry and its surrounding areas to flourish like a big engine.

* Barbie's Mom -- Mrs. Ruth Handler

Walt Disney's vision had propelled The Walt Disney Company to great success. The popularity of Disney theme parks can be summarized by the following points:

Brand Appeal and Storytelling

Disney Characters: Classic characters such as Mickey Mouse and Donald Duck have widespread recognition and influence around the world. These characters are deeply ingrained in people's minds, attracting a large fan base.
Storytelling: Disney parks offer a unique storytelling approach that immerses visitors in imaginative and engaging story worlds.

High-Quality Facilities and Services

Facilities and Ride Design: The design of attractions and facilities in the parks is intricate and innovative, aiming to provide a high-quality experience whether it's a ride or a landmark.
Service Standards: Disney is renowned for its exceptional customer service. Staff are well-trained and dedicated to providing friendly and efficient service.

Family-Friendly Experience

Suitable for All Ages: Disney parks offer facilities and activities that cater to all age groups, from infants to the elderly, including both thrilling rides and family-friendly activities.
Family-Oriented: The parks provide activities and entertainment suitable for the whole family, enhancing family bonding.

Themed Environment

Detailed Decoration: Each area of the park is uniquely themed and designed, from castles to attractions, creating a sense of being in different worlds.
Festivals and Events: Disney regularly hosts various festive activities and themed celebrations, such as Halloween and Christmas events, which add to the park's appeal.

Innovation and Technology

Advanced Technology: Disney parks continually incorporate the latest technology into their attractions and experiences, such as advanced water effects and space-themed rides, enhancing the immersive experience.
Innovative Experiences: The parks frequently update and introduce new attractions and experiences to keep visitors interested.

Cultural Influence and Reach

Global Influence: Disney's impact spans the globe, with its films and characters being widely popular in various countries and regions, further boosting the park's appeal.
Brand Loyalty: Many families and individuals have strong loyalty and affection for the Disney brand, leading them to visit Disney parks multiple times.

Marketing and Promotion

Strong Marketing: Disney excels in marketing and brand promotion, utilizing advertisements, social media, and other channels to attract visitors.

The above seven factors interact with each other to make Disneyland one of the most popular tourist destinations in the world. However, there were always full moon and waning moon in life, and flowers were not as bloom as a hundred days; The "Steering the E-Commerce" we achieved at APEC had become popular around the world since 2000; Even the most conservative Mainland China produced a song called "Email" after the Shanghai APEC in 2001 to encourage their people to pay attention to the advent of the Internet era.

In 2001, APEC in Shanghai adopted the "ICT" (Information and Communications Technology) and "IPR" (Intellectual Property Rights) regulations we initiated in Brunei. The positive attitude of the Mainland China affected various economies to invest in the infrastructure of e-commerce systems. Coupled with the concern of Taiwan's top leader, no one dared to have an opinion on the terms contactless and cashless anymore. So I wrote a supplementary U.S. invention patent application called "Shopping System" (electronic shopping system), and pointed out directly at (014): "The present invention uses the ‘contactless chip card’ to create ‘a universal cashless system’.”

In 2003, when my wife Linda Din was invited by the Australian government to serve as an APEC speaker again, we named the proposal "Global Channel-TES" in order to implement the "Multilateral Trading System". According to our invention patents, R&D results, and IPR Appraisal Report proposals, we won the best practice of "Addressing the Needs of SME Exporters" in APEC. The Joint Ministerial Statement also pointed out that our proposal would be the best entrepreneurial guide for 240 million people.

* Served as a speaker at APEC 2003 to win the best practice

The rise of the e-commerce era we achieved has led to the following impacts:

Digitalization of Entertainment Content: This has changed the way entertainment content is consumed.
Increased Competition: With the development of e-commerce and digital platforms, competition has become more intense.
Shift in Business Models: Traditional entertainment programs are gradually transitioning to digital platforms.
Impact of Data Analysis and Consumer Behavior: These factors have a significant effect on market positioning.
Complexity of Content Licensing and Copyright Issues: These issues have become more complicated.

Among these impacts, the biggest challenge had been faced by Disney. Particularly, the rise of e-commerce and digital platforms presented excellent opportunities for Disney’s competitors—such as HBO and Netflix—but for traditional entertainment companies like Disney, it required significant effort to adapt to these changes.

The "HBO" (Home Box Office) in the United States had been on the rise as the "Satellite Receiver" we developed became widely used in the 1980s. HBO is owned by the film giant Warner Bros., and its programs include movies, documentaries, sports, etc., which are relatively diverse, and occasionally broadcast comedy talk shows and concert specials, attracting many customers and having a great impact on Disney's operations.

“Netflix” was founded in Los Gatos, California in 1997 by Wilmot Reed Hastings, Jr. (1960~) and Marc Bernays Randolph (1958~), and it launched a subscription-based "streaming media" service in 1999. As the infrastructure of the e-commerce system continued to improve, its territory kept expanding and Netflix had become Disney's strong competitor. As of June 2022, the streaming media service of Netflix has 220 million subscribers worldwide, and its subscribers in the United States have reached 73.3 million. Although its annual revenue is only USD 9.56 billion, it has made many people stay at home and enjoy the taste of movie theaters.

I was invited to the APEC CEO Summit 2006 to report on the progress of "Global Channel-TES" and reiterated that TES can promote the free flows of "People/ Goods/ Service/ Capital", and obtained “satellite support”. With satellite support, more digital content companies were gearing up, jumping into the business of virtual channel, and Disney was under increasing pressure.

* Report "Global Channel-TES" to APEC CEO Summit

Then in 2009, two economies leaders invited me to contribute that the way of "Rebuilding the Global Economy" to the APEC CEO Summit in the hope of filling the black hole caused by the financial tsunami; I directly proposed "IIA-TES" (making good use of TES to invest in America for the economic stimulus). Sure enough, with the success of smart mobile communicators, our "contactless chip card" has become popular and has truly become "a universal cashless system", and the world has gradually emerged from the financial black hole.

* The application and manufacturing process of TranSmart Chip Card

In order to attract customers and rekindle the fading enthusiasm, Disney decided to launch a project code-named "Next Generation Experience" in 2008. They planned to invest USD 1 billion and assembled a team of 1,000 people in research and development; However, it wasn’t until they cited our U.S. invention patent that they truly found the research and development direction of "Contactless" and "Cashless" we invented.

* The usage of the contactless TranSmart chip card and card reader (TRD) we invented

After five years of effort, Disney finally introduced the "MagicBand" in 2013, offering a magical key to unlock the enchantment of the theme park. The MagicBand embedded RFID and 2.4 GHz contactless induction frequency, with a transmission range of about 40 feet. Its functions included identity recognition, hotel room key, admission ticket, fast pass, and online payment, all aimed at providing a more convenient consumer experience for guests.

* Disney's MagicBand

The main electronic payment and cashless transaction systems are as follows:

Mobile Payments and Apps

Disney Apps: Disney offers dedicated mobile applications (such as Disneyland App and My Disney Experience App) through which guests can purchase tickets, make dining reservations, plan itineraries, and more. These apps typically support electronic payments.
Digital Payments: Disney parks support various mobile payment methods like Apple Pay, Google Pay, and Samsung Pay, which can be used to purchase tickets, dining, souvenirs, etc.

Prepaid and Gift Cards

Disney Gift Cards: The parks usually offer Disney gift cards that guests can use for cashless transactions. These gift cards can be used in the parks' shops, restaurants, and other service facilities.

Credit and Debit Cards

Widely Accepted: Disney parks accept a range of major credit and debit cards, such as Visa, MasterCard, and American Express, making it easy for guests to make various purchases.

Fast Pass and Reservation System

Disney Genie+: This is a paid service that allows guests to reserve specific attractions and experiences in advance. The app facilitates payment and manages reservations.

Electronic Tickets

Electronic Ticketing: Disney parks offer electronic tickets, allowing guests to enter the park by showing their electronic ticket on their mobile device, thus avoiding the hassle of standing in line to purchase tickets.

Cashless Zones

Cashless Facilities: Some areas and stores within Disney parks operate on a cashless basis, accepting only electronic payment methods to enhance transaction efficiency and security.

The use of these cashless transaction systems not only enhances the convenience for guests but also speeds up the payment process and reduces the hassle and risks associated with cash transactions. However, to this day, guests still need to use the "scanner" to enter the park and make purchases within the park using electronic payments—an innovation that traces back to the proposal made during the 1998 APEC meeting, which eventually led to the development of e-commerce, ETC, Taipei EasyCard, and Japan’s SUICA, among others.

* Disney's electronic admission ticket status

It is said that during the COVID-19 epidemic, “1.5 billion people” managed to survive through contactless methods. Disneyland is one of the most well-known successful application cases of "The eStore System" (TES); in addition to their theme rides, the most important thing they have income is their stores. The most taught thing is that they really apply our "eStore" concept in the real world. When you go to a Disneyworld store, the goods are really neatly arranged, with prices clearly marked. After customers make their selections, they go to the counter to check out by themselves.

* "Cashless" unmanned checkout counter

* "Cashless" staffed checkout counter

“The Electronic Store System” (TES) is not only a prototype of e-commerce but also encompasses many future “Artificial Intelligence” (AI) functionalities. TES is an integrated e-commerce system that merges physical and virtual aspects. First, consumers use “Contactless TranSmart Chip Cards” to shop at VAM & eStore (B-C). At the moment of transaction, it synchronously records the data and sends it to the company's control center. After cloud processing, it notifies relevant stakeholders, such as informing suppliers to replenish stock through logistics (B-B), or distributing profits. The relevance of AI in the above scenario is as follows:

1. Data Recording and Analysis: When consumers use contactless TranSmart chip cards for shopping, the system automatically records consumer behavior, purchase items, and other data. This data can be analyzed through cloud processing to extract consumer preferences, buying trends, and other insights.

2. Demand Forecasting: Using the collected consumer data, demand forecasting and inventory management can be performed. For example, based on consumer purchasing patterns and time trends, AI can predict which products are likely to sell better, thus notifying the company for timely restocking arrangements.

3. Personalized Services: Based on consumers' purchase history and behavior data, AI can generate personalized recommendations or promotional activities, thereby enhancing the consumer shopping experience and loyalty.

4. Decision Support: The enterprise control center can utilize the results of AI analysis to make more effective management and operational decisions, such as adjusting inventory levels, optimizing supply chain management, and even improving pricing strategies to enhance user experience.

These processes and functionalities demonstrate the key role of handling large volumes of consumer data, performing intelligent analysis, and providing real-time decision support. Through “the eStore System” (TES), companies can more accurately respond to market demands through virtual channels, improving business efficiency and consumer satisfaction.

* Disneyworld’s Cinderella Castle

Moreover, data collection and analysis play a crucial role in “user experience”, which has a profound impact on a company's ability to acquire customers and enhance customer satisfaction:

1. Precise Market Positioning: The collected data helps businesses accurately understand the characteristics and trends of their target market. This aids in adjusting market strategies, conducting targeted promotions and marketing, and further attracting and retaining customers.

2. Real-Time Feedback and Improvement: Data analysis provides immediate customer feedback and behavioral trends. This allows businesses to promptly identify and address potential customer issues, thereby continuously improving the quality of products and services.

3. Enhanced Competitiveness: Effective data collection and analysis enable businesses to better understand market dynamics and the competitive environment. This helps in formulating more competitive strategies, quickly responding to market changes, and improving market share and brand influence.

4. Providing High-Quality Service and Experience: Ensuring that the system operates smoothly, with a user-friendly interface that effectively addresses user needs. The quality of user experience directly impacts whether they will choose to use the system again.

5. Ongoing Value Delivery: Continuously delivering value to users through various means, such as regular special offers, update notifications, educational and training resources, etc., making users aware of the long-term value and benefits of the system.

If Disney’s intelligent system can be systematically upgraded to provide high-quality services and experiences, customized solutions, ongoing value delivery, and proactive interaction, thereby eliminating the poor user experiences we encountered in the past, it will effectively enhance customer loyalty and retention. This will contribute to long-term business growth and stability. In summary, by making the best use of our innovations—“TES” (The eStore System), Disney can minimize the impact of current competitors and reclaim its former glory.

Peter Lichang Kuo, the author created Taiwan's Precision Industry in his early years. Peter was a representative of the APEC CEO Summit and an expert in the third sector. He advocated "anti-corruption (AC)/cashless/e-commerce (E-Com)/ICT/IPR/IIA-TES / Micro-Business (MB)…and etc." to win the international bills and regulations.