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Testimonials "Your people, [TEC] and your product [TEC's decision support system] allowed Racal to quickly focus on a highly qualified group of suppliers." - Greg Cruzan, chief technology officer, Racal Instruments Inc.
Start Your Retail Systems Comparison What Is a Retail System? Retail merchandise management (RMM), merchandise management systems (MMS), retail systems, and retail enterprise resource planning (ERP) all designate information systems used by retailers. Retail systems are the enterprise back- and front-office software solutions upon which the majority of retailers rely to manage and support their daily tasks. These systems typically record product performance, which allows the buying personnel to make accurate merchandise purchasing decisions. Moreover, retail systems have capabilities for tracking inventory, capturing sales data, and managing retail prices. Successful retail operations generally require communication between the supply chain management (SCM) or ERP solutions and the RMM system.
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Automate business processes to allow retailers to have more time for planning and analysis Increase customer loyalty by providing personalized shopping experiences Reduce markdowns by improving buying decisions with the ability to analyze sales history and trends Analysis of customer purchasing habits to increase sales by offering personalized promotions Replenish stores automatically to reduce inventory cost Know your inventory to prevent loss Know where business stands in real time and make accurate business decisions Increase visibility on transactions and inventory to reduce loss
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Reduce the amount of markdowns to increase profit
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"I am delighted with the role that TEC has played in our search for the right system... and could not recommend [it] highly enough." - Sean Reilly, IT manager, Largo Foods
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Decision Support System TEC offers two types of decision support systems: an online decision support system called eBestMatch; and a desktop version called ERGO. Resources Overview Find out more about how ERGO can help you simplify complex decisions.
Download Download a trial version of ERGO, the world's most powerful DSS solution. The "Getting Started" ide
ERGO is a decision support system that allows you tosimplify and quantify complex decisions
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build, maintain, and grow your organization's knowledge capital standardize your data and evaluation processes
Click here for a quick overview of how ERGO can help your enterprise. ERGO is the powerful decision support engine behind TEC's eBestMatch online enterprise software evaluation system. ERGO also drives TEC's proven evaluation methodology, which has been used to conduct thousands of complex selections. TEC is now offering ERGO as a stand-alone decision support solution for enterprises seeking to simplify and document their decision processes. Features:
• • • • • • • Markets
Handle decision models containing tens of thousands of evaluation criteria. Compare up to 32,000 potential solutions in a single decision model. Set weights using the analytic hierarchy process (AHP), local weighting, or global weighting. Set weights using any combination of these approaches to give you the most flexible weighting scheme of any decision support system. Use online analytical functions to evaluate strengths and weaknesses ("what-if" scenarios, simulations, sensitivity analyses, side-by-side comparisons, rankings, etc.) Create interactive graphs and charts that can be graphically modified for precision analysis and intuitive what-if scenarios. Conduct sensitivity analyses, cost/benefit analyses, as well as dozens of other graphical analytics. Leverage robust reporting capabilities that can create virtually any type of report to reflect the output of your decision process.
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Upgrading Legacy Point-of-Sale Systems: 5590.079
3.076172E-02
The compelling business case for next-generation POS
Abstract
A store’s point-of-sale (POS) system is a company’s gateway to valuable information. When a store POS system isn’t able to share valuable information about customers, sales, and operations with other parts of the organization, it can impact the bottom line. i
Table of Contents
Why upgrade your POS? 2 The risks of legacy POS systems 2 Lack of integration with other key operational areas 3 Difficult or impossible to integrate POS hardware with other store systems 3 Limitations of DOS 3
Possible exposure to fines 4 How the right POS system can enhance ROI 4 Key benefits from upgrading POS 5 Improved customer service 5 More efficient operations 6 Cost savings 6 Advantages for multi-channel retailers 7 Planning POS with the future in mind 7 About Epicor 8 2
Why upgrade your POS?
According to Forrester Research, half of European and North American retailers plan to migrate to a new point-of-sale (POS) solution by 20081. This echoes results from AMR Research, which reports that “retail clients are actively investigating new POS hardware and software technologies”2. There are a number of compelling reasons to do just that, most of which center on the advantages that come from improved connectivity between POS and the rest of the enterprise. For example, integrating point-of-sale applications with supply chain and customer loyalty data can enable a store to reduce stockouts and improve customer service.
The risks of legacy POS systems By some estimates, more than 25 percent of the point-of-sale systems in use in U.S. stores run on DOS or proprietary platforms that seriously limit a retailer’s growth3. The problem: these types of legacy POS systems create islands of information—information that should be shared with other parts of the organization in real-time in order to serve customers and manage stores and operations cost effectively. They also prevent a retailer from adding new capabilities that can boost its bottom line. Retailers using legacy POS systems face four key limitations: Lack of integration with other key operational areas, including inventory, merchandising, loss prevention, customer relationship management (CRM), and returns management Difficult or impossible to integrate POS hardware with other store systems, such as back office servers Limitations of DOS and DOS users Possible exposure to fines for non-compliance with CISP encryption requirements POS Client Operating System Installed Today Considering For Next Purchase* DOS 15% 0% IBM 4690 12% 13% Windows 9.x/ME/CE 14% 11% Windows NT/2000 XP Pro 35% 46% Windows XP Embedded or WEPOS 6% 48% Linux 7% 40% Other 11% 2% *Does not equal 100%. Respondents could choose more than one operating system. Source: RIS Store Systems Study 2005 1 Source: Forrester Research, Inc., “The Next Point-Of-Sale Solution: From Store Solution to Enterprise App” George Lawrie, |Kim LeQuoc (May 3, 2005) 2 Source: AMR Research, “Ensuring Your Upcoming Enterprise POS Deployment Project is a Success,” Scott Langdoc (August 25, 2005) 3 Source: RIS News, “RIS Store System Study 2005” 3
Lack of integration with other key operational areas The biggest breakthrough capability for today’s specialty retailers is real-time exchange of information between stores and the corporate office, also referred to as interoperability. By exchanging valuable information with corporate systems, retailers can dramatically improve operations by putting the right information in the right hands at the right time—from inventory, loss prevention, customer relationship information, and more. For example, using a connected point-of-sale terminal, a sales associate can easily locate an out-of-stock item, potentially saving a sale.
Legacy systems prevent retailers from achieving this level of information exchange because their technological limitations make it all but impossible to integrate with other systems. The IBM 4690 platform stores data in a proprietary format, making it difficult to share the data. And DOS-based systems have a number of limitations of their own (see below).
Difficult or impossible to integrate POS hardware with other store systems Both proprietary and DOS-based POS systems are severely limited in terms of their ability to integrate across the enterprise by connecting with other hardware, such as back office servers. Yet this integration is crucial to enabling operational efficiency. Linking all stores and locations in the retail chain with real-time access to critical business data ensures that sales associates have necessary and timely information at the point where it matters most: in the stores where customers will either buy or not buy. The POS system is a logical access point to this information. However, due to their technical limitations, legacy POS systems typically cannot be connected to other hardware. Top POS features available with next-generation POS that are not available with legacy systems. Cross Channel order management Returns processing Promotions Management
Limitations of DOS DOS-based POS systems impose limitations on a retailer that can impair customer service, affect employees, and limit growth. These limitations include: Very little support for touch screens, adding time to each transaction Lack of maintenance and upgrades that further restrict how the data can be used Poor LCD screen resolution due to DOS limitations that can make it impossible to display information at the preferred resolution of 1024x768 pixels, resulting in blurry screens that can induce eyestrain and headaches Limited hardware options caused by lack of MS-DOS drivers for newer devices No wonder the 2005 RIS Store Systems Study showed that DOS is not being considered as the POS operating system by any of the retailers surveyed4. 4
Source: RIS News, “RIS Store Systems Study 2005”
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Possible exposure to fines The Cardholder Information Security Program (CISP) instituted by Visa USA requires compliance by all retailers that store, process, or transmit Visa cardholder data. To achieve compliance with CISP, merchants and service providers must adhere to the Payment Card Industry (PCI) Data Security Standard. However, many legacy POS systems are not equipped to adequately protect stored data and encrypt the transmission of cardholder data and sensitive information across public networks. A retailer that fails to comply with CISP security requirements may be subject to fines of up to $500,000 per incident.
How the right POS system can enhance ROI According to AMR Research, “A new POS platform has the potential to enable a number of consumer-facing initiatives that will help retailers compete and win”5. One key to understanding the vital importance of a connected point-of-sale system is to think of POS hardware not simply as an expense, but as an investment—an investment that can provide an excellent return if it is managed correctly. By one widely accepted estimate, the return on an investment in computerization is close to five times the investment in profit per year6. Making the capital investment in next-generation POS can also create significant cost saving opportunities while enhancing customer service and preparing the retailer for future growth. Additionally, POS has emerged as consistently offering retailers the fastest payback of any hardware investment.
According to AMR Research, “Centralized refund management alone provides the hard ROI needed to justify a full POS software replacement. Studies show fraudulent return rate of between 0.4% to 1.0 % of sales. Taking a lower end estimate of 0.6% of revenue, if centralized refund management reduces that number by 50% in a $2.5B chain, $7.5 M will drop right to the bottom line.”7 Source: AMR Research, “Ensuring Your Upcoming Enterprise POS Deployment Project is a Success,” Scott Langdoc (August 25, 2005) 6 Source: RetailPC.com, “Cost of POS,” by Kyle Ritter (September 2, 2004) 7 Source: AMR Research, “POS Software in Specialty and GMA Retail: Extending Beyond the Box,” Janet Suleski, Scott Langdoc (March 9, 2004) 5
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Key benefits from upgrading POS
Every retailer knows that investments in technology should be made not simply to have the latest technology, but as part of an overall business strategy. And there are a number of compelling business reasons to upgrade from legacy to next-generation POS, including: Improved customer service through faster check-outs and better access to product and customer information More efficient operations, including decreased labor costs and improved use of employee and manager time Cost savings from lower-fee card transactions, elimination of under-rings by automating pricing, and reduction in errors and fraud
Improved customer service Anything a store can do to minimize the time that the customer is at the register is imperative to customer service. It is the last thing the customer will do before leaving the store and the final image they will have of the store. According to AMR Research, “It only takes an average of 2.3 negative experiences with a store to send shoppers to a competitor8. Yet the dial-up times of legacy POS systems can slow transaction speeds to a crawl, forcing customers to wait in long lines. And the problem only gets worse during high-traffic periods. Next-generation POS systems, with their high-speed approval systems, can cut the amount of time required to check a customer out dramatically. One large retailer cut customer checkout times by almost 30 percent by moving to a next-generation POS system9. And faster checkout times translate into a number of benefits for retailers, including: Lower labor costs Enhanced customer satisfaction due to shorter wait times Fewer lost sales due to long lines More parking spaces because of faster customer turnover The ideal POS system is interactive, fast, and friendly. The functions and features that can be delivered through the POS—such as computer-based training and learning management—can help enhance customer service. Providing sales associates with relevant product and customer information at the point of sale also helps speed customers through the line while enabling the store to provide premium service. For example, some POS solutions incorporate features such as real-time customer, inventory, and returns management that give sales associates ready access to the information and tools they need to provide better customer service. It’s clear that, more and more, being able to know the customer through preferred customer applications and (CRM) customer relationship management functionality at the register are vital parts of being competitive. Source: AMR Research, “Transform Your Stores: Enhance Customer Interactions with Advanced Selling Technologies,” |Rob Garf, Sriram Thodla, Joyce McGovern (June 27, 2005) 9 Source: “The ROI of POS,” RED (October 2004) 8
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More efficient operations When employees can spend less time checking out customers, they have more time to
complete other tasks, such as selling, retail floor management, and stocking. Some stores even discover that they can cut back on checkers. And decreased labor costs and improved use of employee and manager time aren’t the only ways an upgraded POS system can help make a retailer’s operations more efficient. AMR Research points out that instant access to consolidated enterprise data—such as customer data, product information, inventory, and shipping details—enables employees to proactively help customers. “Associates will find it easier to locate, evaluate, and upsell associated products and learn policies and procedures while remaining on the sales floor,” says AMR Research in a recent research report. “Three-ring binders, catalogs, and computers in the backroom don’t count as knowledge management tools. Associates need real-time access to critical information while they are servicing the customer.10 The right POS system can provide store management personnel with operational information such as store opening and closing, employee hiring and termination, cash management, and reporting procedures. Even functions such as preferred customer, layaway management, and electronic journaling can be integrated into the point-of-sale system.
Cost savings
While some retailers argue that benefits such as improved customer service are “soft returns,” upgrading a POS system also offers a number of hard returns. For example, a retailer that upgrades its POS system to one that can take advantage of lower-fee credit card transactions can realize considerable hard returns. Another large potential source of savings is in the added visibility into operations provided by the right POS system. This visibility can increase the accuracy of return authorizations and help prevent inappropriate returns. That can add up to huge returns for the retailer: the online edition of Business Week recently reported that stores lost $16 billion to bogus returns in 2003, up 23% from 2002. Drug, food, and mass-merchant stores—which scammers perceive as being accessible and largely un-policed—are particularly vulnerable11. Fraudulent returns are part of a bigger problem: shrink. Total shrink accounted for some $37 billion in losses in 200412. 13A POS system can reduce shrinkage by providing exception reporting that can identify fraudulent activity such as stolen credit cards and unauthorized discounts. Source: AMR Research, “Tranform Your Stores: Enhance Customer Interactions with Advanced Selling Technologies,” Rob Garf, Sriram Thodla, Joyce McGovern (June 27, 2005) 11 Source: BusinessWeek Online, “Many Unhappy Returns for Retailers,” by Elizabeth Woyke (August 5, 2005) 12 Source: RIS News, “Roadmap to Loss Prevention Leading retailers out-think shrink,” by Alana Okun (Sept. 2005) 10
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Advantages for
multi-channel retailers While single-store retailers can benefit hugely from a POS system upgrade, the advantages are even greater for retailers with multiple locations or channels. For example, one POS solution enables sales associates to search real-time inventory availability for an out-of-stock item without leaving the sales counter. Once the item is found, the sales associate can complete the transaction right at POS, routing the order in real time to another store or distribution center to be fulfilled. That can save a sale while providing the kind of service that says the store really cares about the customer.
Planning POS with the future in minds
Upgrading a POS system can not only provide an immediate return, but also prepares a retailer for future capabilities. AMR Research points out that, “These new POS platforms support even farther-reaching technology capabilities, including the longer term adoption of store-wide, item-level Radio Frequency Identification (RFID) data.”13 Because of the potentially far-reaching effects of a connected point-of-sale system, many retailers are seeing a POS upgrade as part of a larger initiative to improve their overall IT infrastructures. According to recent research by Gartner, this type of considered approach can help retailers “achieve the flexible, real-time stores they want.”14 Source: AMR Research, “Ensuring Your Upcoming Enterprise POS Deployment Project is a Success,” Scott Langdoc (August 25, 2005) 14 Source: Gartner, Inc., “Start with Point-of-Sale When You Upgrade Stores IT Infrastructure,” Mim Burt, Gale Daikoku (June 20, 2005) 13
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About Epicor Epicor is the leader in software and services for the real-time, multi-channel retailer; making us the ideal choice for retailers who demand proven, integrated, full-featured, scalable, and global solutions. Epicor solutions are helping retailers optimize the customer experience and
improve the bottom line. Our solutions are designed for interoperability standards for maximum ease of integration and ROI. Epicor has more than 50 years experience as a trusted retail technology solution provider Epicor has more than 140 leading specialty, general merchandise and big box retailers as clients Epicor solutions are .NET Connected for Smarter Retailing certified and National Retail Federation ARTS IXRetail standard compliant Epicor is recognized as a Software Leader for three consecutive years by RIS News Leaderboard
For more information on the Epicor Retail solution, contact Epicor at:
[email protected] or by phone at 845-567-1234 Worldwide Headquarters 18200 Von Karman Avenue, Suite 1000 Irvine, California 92612 USA •
Toll Free: +800.449.6772 (US/Canada) TEC Blog
TEC Home About TEC Contact Us About the Bloggers RSS Jan 18 An Introduction to E-learning and Learning Management Systems (LMS) Filed Under (Software 101) by Jane Affleck (see bio)
Not so long ago (or, back in the early ’90s, when I was a first-year college student) there were two ways to get a post-secondary education: by attending classes at a university or college with hundreds of other coffee-stoked students, or by signing up for what used to be called “distance” learning (or even before that, “by correspondence,” as though courses consisted of a series of letters exchanged between the student and the professor, and delivered by the Pony Express). Distance courses still exist, of course, but increasingly, even these programs are undergoing drastic change because of their use of technology. Over the past decade or more, a new style of education has been emerging for traditional in-class college and university programs as well, changing the ways instructors and professors teach and students learn. Humanism—the philosophy originally espoused by universities—has always held that technology could and should be used, along with rationality, ethical philosophy, and universal
morality, towards improving the human condition. However, it seems that the balance is being tipped increasingly towards a privileging of technology over other means to that end. Universities are jumping enthusiastically on the technology bandwagon, and it’s no longer uncommon for professors to supplement their lectures with PowerPoint presentations, or for students to take notes on their laptops (Acadia University, in Wolfville, Canada, has been offering “free” laptops to all first-year students for more than ten years). And an ever-growing number of professors set up course web sites that allow students additional opportunities to ask questions, or to access the course syllabus, should they have happened to lose that pesky, fly-away hardcopy version handed out the first day of class. What does all this extra technology-based stimulation mean in practical terms (besides reducing the number of times the prof has to answer questions about when the term paper is due)? With PowerPoint replacing “old-school” photo slides and clunky overhead projectors, burnt-out bulbs interrupting lectures is no longer a concern. Students can use their laptops not only to take notes more speedily (most people type faster than they can write), but also to access dictionaries and other writing or reference tools in situ. Course web sites can also offer students supplementary materials without the time-consuming hassle of going to the library (a decided benefit for students with physical disabilities). Graphic elements, such as art, diagrams, or photos, can help students who are visual rather than auditory learners. Chat rooms and other collaborative tools can help to maximize student participation in courses with ever-increasing enrollment caps. The benefits of e-learning are not just for universities. Many elementary and high schools are also implementing learning management systems (LMS) in their classroom, for attendance tracking, creating and administering tests, e-mail, grade posting, and many other administrative and teaching tasks. And certainly no less important—probably much more important to readers of this blog—is the fact that businesses of all sizes are changing the way they perform certain operations as a result of implementing e-learning and learning management (LMS) applications. Human resource managers are discovering how to optimize employee performance with e-learning or LMS software. What Is a Learning Management System? An LMS is a software technology that allows organizations, including corporations and educational institutions, to manage and schedule all aspects of teaching and training. An LMS can aid in creating course calendars and other material, in easing administration and communication, and improving tracking of student or trainee progress. An LMS can be implemented through the Internet with open source software, it can be licensed from a provider, or it can be purchased by an
organization. The term e-learning refers to any training or learning that is done with an LMS application, or that is computer based. Top Business Benefits of E-learning with an LMS
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Reduced costs associated with training fees, travel and accommodation expenses for workshop or course trainers, and lost employee work time
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Computer-based training can more effectively and actively engage the student and produce better test results and higher rates of retention, thereby improving on-the-job competency and efficiency
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Larger numbers of employees can receive training in shorter periods of time; employees can be exempt from certain courses or modules if they demonstrate competency by passing a pre-test
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Reduced administrative hassle for course registration, and course content, resulting in further reduced costs
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Greater volumes of employees can receive timely training, as a result of by-distance access to online training programs or courses
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Reduced employee turnover, as more efficient training and better test results can boosts employee confidence and performance
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Modules for employee training can assist organizations with compliance issues, partly due to more consistent or “centralized” course content
What Risks Do Business Managers Need to Consider before Implementing a Learning Management Solution?
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Align learning with business goals, as well as employees’ personal goals, to make sure time and resources are maximized.
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Develop a well-planned business case to win senior executives approve a proposed elearning or LMS project.
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Identify the gap between actual or current training results and desired results, so that you can choose an e-learning or LMS solution that addresses your specific needs.
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Assess your company’s IT infrastructure to decide whether to implement a hosted or a
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Make sure you choose a solution that will integrate with your existing human resources
licensed solution. (HR) or enterprise resource planning (ERP) solutions. Mitigate Risk with Online Software Selection Tools (Or, How an Online Software Selection Process Can Help You)
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Compare vendors offering LMS solutions with those offering content management system (CMS) solutions, to find out which best meets your needs.
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Evaluate vendors that provide modules for competency and performance management.
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Examine functionality that supports course content authoring or publishing tools.
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Determine which solutions satisfy your requirements for classroom or e-learning facilities. More LMS and E-learning Resources
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Read articles by industry experts about learning management systems (LMS).
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Get an overview of content management systems (CMS). Download a sample LMS request for proposal (RFP) template.
Access white papers about the benefits of LMS and case studies about e-learning best practices and how specific vendors’ LMS solutions helped achieve e-learning goals.
Not all of your students or trainees may be geniuses, but their training results can be markedly improved with LMS-based training. Think of this simple formula (slightly modified from the original), if you need further incentive to consider LMS:
e-learning = mc² with “m” representing the mass number of employees you can train more effectively, the management of knowledge, as well as the money you’ll save, and with “c” representing the speed (Latin celeritas) at which you can train them, and get them back on the job and performing better than ever. Share This
Trackback Address Tags: computer based training, e learning, learning management systems, lms, technology in the classroom Comments
Steve on 18 January, 2008 at 6:15 pm # What an excellent overview of learning content management systems and their potential benefit. It is true that cost, hosting and IT support are the typical barriers to many of people that desire to access the on-line experience from an LCM system. MyiCourse.com has removed these cost barriers by providing a free, web based LCM that allows users to create both public and private teaching sites. There are no limits on courses or the number of users. No contracts are needed. Go to MyiCourse.com and then click on the Learning Center link for a user manual and free courses on using the system.
Geena on 21 January, 2008 at 11:34 am # this was a wonderful overview of the potential kinds of tools students and teachers have at their fingertips. while i was reading through, i was thinking that a tool that i’ve been using for training purposes would be helpful to some (or all) of your readers. Yugma (https://www.yugma.com) is a collaboration tool that allows desktop sharing amongst other uses. they have an education donations program (link below) and they’re giving out free accounts until the end of january for bloggers (link below). i hope you and your readers find this helpful.
education: https://www.yugma.com/education/index.php bloggers: http://www.yugma.com/blog/index.php?option=com_content&task=view&id=261&Itemid=1
esmat masoudi on 12 February, 2008 at 2:45 am # please sent me all papers about “educational management”
Jane Affleck on 12 February, 2008 at 4:26 pm # Thank you for reading my blog post on learning management systems (LMS). You can link to TEC’s white paper archive to find white papers related to learning management. http://whitepapers.technologyevaluation.com/Category/275429/Learning-Management-System-LMS.html http://whitepapers.technologyevaluation.com/Category/275429/Learning-Management-SystemLMS.html&CurrentPage=2 http://whitepapers.technologyevaluation.com/Category/275429/Learning-Management-SystemLMS.html&CurrentPage=3 And you can also link to TEC’s article archive, where you can find several articles related to learning management. If you have any problem following the links, please do not hesitate to post another comment! Thanks very much,
Krishnan MG on 22 February, 2008 at 3:12 am # The write up is very good and gives the contemporary environment. can some body clarify whether there is there any limit on the number of persons who participate in free e-learning programme.
diego on 23 February, 2008 at 4:16 pm # mira esto para tomar conceptos de elearning
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