1 / 19

Overview of Biometric Industry, Devices and Applications

Overview of Biometric Industry, Devices and Applications . Dr. Virginia Kleist Dr. Richard Riley College of Business and Economics September 12, 2003. Research Funded by Center for Identification Technologies (CITeR) at West Virginia University

eloise
Download Presentation

Overview of Biometric Industry, Devices and Applications

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview of Biometric Industry, Devices and Applications Dr. Virginia Kleist Dr. Richard Riley College of Business and Economics September 12, 2003

  2. Research Funded by Center for Identification Technologies (CITeR) at West Virginia University • CITeR is the first National Science Foundation (NSF) / Industry University Cooperative Research Center focusing on serving its membership in the rapidly growing area of Biometric Identification Technology

  3. Business Issues for Corporate Users, Government Users, and Vendors • What variables drive customers to use biometrics? • What are the vendors thinking about? • What are the costs and benefits from a buyer and vendor perspective? • Overview of technologies of biometrics • Performance metrics of biometrics • Sample applications in real world

  4. How Do Academics Understand the Biometrics Industry? • Positive network externalities, tipping point, increasing returns to scale • Embedded base, large government purchases • Production economics • Open source code issues and standards development • Information industries and dominant firms, new technology market behaviors • Transactions cost theory • Substitution goods

  5. Path Dependency to Technology Dominance (Arthur, 1996) Product A (e.g., VHS, QWERTY keyboard) Time Product B (e.g., Beta, Dvorak keyboard)

  6. Biometrics Industry Supply and Demand Price Quantity

  7. Customer Demand Curve Price R3 R2 R1 Quantity

  8. Vendor Manufacturing Issues • How well can we make the device work? • How cheaply can we make the device? • Can we manipulate the market to help reduce our production costs? • Are we getting more cost effective as we sell these devices over time? • How much more should we spend on our product development?

  9. Vendor Marketing Issues • Within market and across market issues • Market share of device type, market share of vendor • What’s the “buzz” ? • Standards vs. proprietary systems • Number of competitors within niche • Does the government like you? • Can you lose money on your product in the short run?

  10. Customer Demand for Biometrics • Customer risk profile • Perceptions of value of biometric • Substitute goods • Customer sophistication with technology • Vendor sales relationship • Customer organizational structure • Utility value to customer • Effect of deployment of multiple devices

  11. Customer’s Users and Biometrics • Biometrics system user perceptions • Intrusiveness, ease of use, accuracy of device • Prior knowledge and familiarity with biometric • Customer culture • Short and long run perceptions of customer

  12. Strategic Biometrics Industry Issues • What are the underlying customer cost/benefit incentives for purchasing biometric investments? • Why do customers choose one product over another? What do they say about these decisions? • Will the larger vendors have lower cost per unit manufacturing costs, and therefore be better able to under price the smaller vendors? • Will embedded base databases drive future product choices? • Will government purchases drive the market for non-government biometrics choices?

  13. Strategic Issues of Interest, cont. • Should vendors use a low price or free strategy to build market share? • How important is education and knowledge in customer choice? In user acceptance? • How relevant is customer risk in customer choice? • What are the effects of alternatives to biometrics? • Legal infrastructure? • Insurance coverage? • Can standards coexist with quality of product? • Will customers substitute non-biometric products, cheaper products or multimodal solutions over more expensive, but perhaps higher quality products?

  14. US Market Structure (Nanavati, et al., 2002) • Fingerprints at nearly 50 percent market share, not including FBI • Followed by facial scan, hand scan, iris scan, voice scan • US market has increased in size by factor of 4 times from 1999 to 2003 • Biometric revenues expected to hit $2 B by 2005.

  15. Fingerprint scan Facial scan Iris scan Retinal scan Hand geometry Voice scanning Signature scanning Keystroke dynamics Odor Skeleton shape Gait DNA Multimodal Biometric Devices

  16. Biometric Performance Characteristics • False Acceptance Rate (FAR) • False Rejection Rate (FRR) • Equal Error Rate (EER) • Speed of Processing • Intrusiveness, perceptions of intrusion • Systems scalability • Ease of enrollment • Biometrics testing

  17. WVU Casinos Credit Unions Check Cashing Machines Online banking Brokerage accounts Forensics, IAFIS DoD National ID systems Time and Attendance Physical access Customer service, retail Computer and network access Biometric Examples (Various sources, incl. Woodward, 2003)

  18. Biometric Standards (Woodward, et al. , 2003) • ANSI/NIST ITL 1a-1997 • X9.84-2001 • BioAPI Specification, ver 1.1, 2002 • X9.84 • Other developments

  19. Social Issues • Intrusion • Civil liberties • Public defense • System faults • Protection of information • Privacy concerns • Constitutional issues

More Related