Retail Hero premier Point-of-Sale Solution Provider specializing in Microsoft Dynamics RMS software
 March 2008 Edition
What Makes a Great POS Software?

It’s not just that it is user-friendly and easy to learn. It’s not just that it is stable, doesn’t crash and is guaranteed to be compatible with all upcoming versions of operating systems.

It’s not just that it is used by tens of thousands customers world-wide. It is not only because it is developed and supported by one of the biggest and oldest software development companies in the world which has a 20-year roadmap plan for future development.

And it is not that the support people who are certified to install and maintain the software are required to pass rigorous tests and keep their certification and customer references up to date otherwise they are not qualified any more.

It is not even because of the fact that the users have access to a special Web portal where they find news, downloads, tips and tricks and can communicate with other users.

And it is not just because the dedicated business technology specialists such as Retail Hero have the ability to support the customers anywhere anytime and are just mouse click away.

It is because the software allows extending itself by the efforts of third-party software developers. That’s what really makes it great. That’s what really shows who’s going to win in the end.

Let’ look at the recent software history. Many great “black box” products of the past (i.e. completely proprietary, with no extending or customization capabilities) -- though cherished and loved by the customers ended in oblivion while may be less user-friendly, but extendable products survived and thrived. Examples are many. Microsoft Word, which in the beginning obviously sucked compared to WordPerfect but allowed developers to create thousands add-ons and extensions, won the game. Apple has almost lost its market completely before they figured out to make their platform software more customizable and programmable. Lack of development and customization options lead Novell through series of purchases of products and development tools (not all of them smart) to eventual abandonment of their own native protocol and  the core system in exchange for an open source operating software (which has its strength exactly in extendibility and customization options).

The same customizability makes Dynamics RMS (Retail Management System) so great. Unlike many other point-of-sale software (it’s only about 500 software titles are available in that category), Dynamics RMS has an API (Application Program Interface) and customization capability which allows third party developers such as Retail Hero, develop and independently market various add-ons which enhance the core functionality of the system.
A POS software cannot survive without that. It is because each individual store, even in the same retail vertical, is different. Small retailers need to compete with large box stores and other retailers, and the only way they can do that it to offer unique, specialized customer service and loyalty programs which their competitors do not have. As the customer’s loyalty is capricious, the reality of life may dictate new and new requirements every few months.

Some software vendors are trying to escape that trap by positioning their software as built “specially” for a certain retail vertical. I.e., POS for sports stores, POS for apparel stores, POS for grocery stores etc. But the truth is that basic business rules are very similar if not identical in practically any retail industry, from a coffee shop to a public library (despite how different they may seem at the first glance).

As the basic rules are similar, it makes sense to use the same standard “base” software (which performs the universal functions such as customer checkout and other POS functionality and inventory control and management), and enhance it with necessary features such as specific loyalty programs, visual enhancements, operation optimizers and more.

Microsoft Dynamics RMS is such a great base product. It can be equally successfully used at a grocery store, high end apparel store and even at the restaurant. With additional enhancement such as “Q-Rewards” it may be even better used at a pet food store or coffee shop. With another enhancement called “Catalog View” it may be better fit in a fast food venue or small restaurant or produce stand. With “Back Order Presto” Dynamics RMS’s ratio of success in a hardware, appliance or furniture store (those which deal with volume of back orders) goes up. “Hero Points”, “Quick Tender”, “PIC-ME”, “TOP Import”, “Mobile Inventory” will enhance efficiency of retail operations in pretty much any retail store. As many millions of retail businesses are there, each of them creates business opportunity for both Microsoft, hundreds of certified RMS resellers and growing number of independent developers such as Retail Hero.

So, for us there’s no secret in who’s going to win the POS software war in few years from now. The question is whether or not you – a retail business owner – will chose to be on the wining side.

Staff Writer

Retailers to Increase Spending on Technology 

Eighty-three percent of retailers plan to replace or upgrade POS systems

Retailers will participate in the surge of business spending expected this year, according to research by the NRF Foundation (NRFF) and BearingPoint, Inc. The study, "Retail Horizons: Benchmarks for 2007, Forecast for 2008," found that eighty-three percent of retailers expect replacing or upgrading point of sale (POS) software systems to provide real-time customer information at the time of sale.

This second annual study, which surveyed more than 100 retailers, focuses on store and field operations, supply chain, customer relationship management, merchandising, advertising, human capital, information technology and marketing issues.

In analyzing this year’s survey data, NRFF and BearingPoint observed that the three currents of change of last year -- moving toward greater customer-centricity, traveling along the data-knowledge-action continuum and shifting toward a boundary-less business model - were reaffirmed with the addition of a fourth current: the need for retailers to be on a greatly accelerated path to differentiate themselves from the competition.

“With continued momentum in the economy, now is the time for businesses to invest in new technology,” said NRF President and CEO Tracy Mullin. “The retailers who choose to invest today will be rewarded tomorrow.”

“As the competition increases, retailers need to figure out how they can differentiate even more,” said Scott Hardy, a managing director with BearingPoint’s Retail/Wholesale practice. “Retailers are looking to POS in 2008 to provide real-time information to have a better understanding of the customer.”

Old Cash Register

Other key findings of the study include:

  • Cost containment will be the #1 priority for 2008
  • 74% of retailers segment their customer base by loyalty and
  • 66% by customer preferences
  • 49% cite private label development as a priority
  • 82% list sales associate training as a key initiative
  • In addition, about a third of the respondents will focus on micro-merchandising and multicultural marketing

The study suggests several approaches retailers can use to differentiate themselves from the competition, including:

  • Leveraging a robust understanding of the consumer to create unique, differentiated merchandise assortments.
  • Build a brand in an integrated way that resonates.
  • Provide a seamless, multi-channel shopping environment.
  • Build and sustain a high performance workforce.

Source: NRF

8 Tips for Choosing the Right POS

1. Never buy hardware first – it might not support the software of your choice. Don’t limit yourself this way.

2. Never go to computer technicians for advice. They are great in helping to choose required hardware but hardly know anything about retail industry and its specifics. Poor advice in the area of business software leads to money loss and frustration.

Small Retailer POS

3. Choose the POS software vendor wisely. Evaluate his reliability based on the company’s road plan, business reputation and stability. Ask yourself – what happens to my investment if this vendor goes out of business? Is there support for the system I am buying? What if there is a bug in the software and who’s going to fix it? Be confident in your purchase.

4. Make up your own mind – don’t pass the decision making process to someone else unless you are absolutely sure that that person knows your business inside-out! Each retail business has its unique requirements and workflows. Only you can choose the system with the right functionality.

5. Make your shopping list! Write down all the features you may need in your POS and ask the supplier to demonstrate them to you. Also be curious how other retailers do things – it is not the fact that you’ve done it correctly all these years.

6. Typical POS and inventory management systems help you on two major fronts: in lowering your costs through better inventory management and eliminating shrinkage and by increasing the customer loyalty. While the first is a quite standard set of features and routines, the customer loyalty systems vary from industry to industry and from retailer to retailer. Gift cards, loyalty points, incentive coupons and discounts, membership clubs etc. – there are many ways to keep the customers interested! Think of which type of customer incentives you want to use and see if the software will support it.

7. Some POS systems come as a product, some – as a service meaning that you don’t own the software but only have an access to it for a nominal fee. Decide which is better for you. Make sure that you thoroughly understand your terms and conditions before signing into anything.

8. And remember – after you bought your POS system, spend enough time to learn it! It is your investment – use it wisely and to the full.

Staff Writer

Retail Humor - The Hook

A keen country lad applied for a salesman's job at a city department store. In fact it was the biggest store in the world - you could get anything there. The boss asked him, "Have you ever been a salesman before?"

Yes, I was a salesman in the country" said the lad. The boss liked the cut of him and said, "You can start tomorrow and I'll come and see you when we close up."

Complaint Department

The day was long and arduous for the young man, but finally 5 o'clock came around. The boss duly fronted up and asked, "How many sales did you make today?"

"One," said the young salesman.

"Only one?" blurted the boss, "most of my staff make 20 or 30 sales a day. How much was the sale worth?"

"Three hundred thousand dollars," said the young man.

"How did you manage that?" asked the flabbergasted boss.

"Well," said the salesman "this man came in and I sold him a small fish hook, then a medium hook and finally a really large hook. Then I sold him a small fishing line, a medium one and a huge big one. I asked him where he was going fishing and he said down the coast.

I said he would probably need a boat, so I took him down to the boat department and sold him that twenty foot schooner with the twin engines. Then he said his Volkswagen probably wouldn't be able to pull it, so I took him to the car department and sold him the new Deluxe Cruiser."

The boss took two steps back and asked in astonishment, "You sold all that to a guy who came in for a fish hook?"

"No," answered the salesman "He came in to buy a box of Tampons for his wife and I said to him, 'Your weekend's shot, you may as well go fishing.'"

Source: Internet

In This Month's Issue...


- What Makes a Great POS Software?
- Choose Your New POS
- Retailers To Increase Technology Spending
- To Err Is Human...
- 8 Tips for Choosing a POS
- Test Explores RFID's Ability to Fight Shoplifters
- The Hook - Retail Humor
- Security Breach by Temps?

Choose Your New POS PC

Most of the modern POS software runs on the standard computer platform, such as Windows operating system. That gives an impression that one does not need anything special when is looking for a POS computer: just take any standard low cost office or home PC, put the software on it and there you go.

The truth is though that a computer for retail operations must conform certain criteria. First of all, it's a business system for which any downtime is unacceptable. Secondly, it's an  investment therefore it must provide adequate performance for the years to come. Next, there are very specific devices (cash drawer, receipt printer, barcode scanner, weigh scale, pole display etc.) need to be connected so the PC must have enough ports to connect these and provide room for few more extra. Further, as the retail environment is often congested, dusty, with poor air flow and other conditions that may be deadly  for a regular PC.

The real POS PC - the one which is designed specifically for retail environment, is the next best investment which you can do after choosing the proper POS software, such as Microsoft Dynamics RMS. Retail Hero recommends the following POS computers.

HP POS System rp5700

POS Bundle

Designed with a Retail Business customer in mind, the new Hewlett-Packard rp5700 unit is a great, economical solution for Dynamics RMS. It comes with 3 year on-site parts and labor warranty

Partner Tech PT8800 Integrated POS Unit

Retail Hero's Food & Beverage POS

Partner Tech's PT8800 integrated POS unit provides the most versatility and efficiency for heavy-load little-room retail venues, such as fast food outlets, coffee shops, snack bars etc. Together with Dynamics RMS and Retail Hero's Catalog View it will make an ideal POS system for such retail environment.

The customers who purchase both hardware and Dynamics RMS software from Retail Hero can receive 10% discount on any Retail Hero Dynamics RMS Add-in (Hero Points, Q-rewards, PIC-ME, Visual Catalog, Back Order Presto and others). Hardware upgrades such as touch-screen LCD, RAID-mirrored hard drives, backup system are also available - please call and ask!

Contact: sales@retailhero.com or call 888.785.4376 ext. "1"

 

To Err Is Human…

Any system is only as good as the people who use it. Today various business technology systems provide many useful ways to optimize business processes, assist in timely analyzing the important business data, help in optimizing the business workflow and so on. Unfortunately, the more complicated business system become the more training it takes for the employees to use it properly.

Those organizations which do not have their own IT department, often “stand on the shoulders” of the outsourced helpdesk specialists who have advanced knowledge of the specific business software and can provide invaluable daily support. Whenever a customer makes mistake, the friendly support specialists are right here to help to recover from the situation - if possible, and provide recommendations on how to avoid the problems in future.

But in doing so the service organization often finds itself under a severe risk of being blamed for the occurred problems in the first place. As a neurosurgeon who has been trained for years to dig into the depths of the human brain to remove a dangerous tumor, the support specialist often digs deeply in the very heart of the business data that is corrupted and manually rebuilds the missing pieces or removes malicious bits and bytes. As for the brain surgeons, a mistake made by technical support specialist may also be costly. Fortunately, how critical the loss of data may seem be it is still not loss of a human life – and that is probably why the support guys are paid just a fraction of what a neurosurgeon might get.

How Hard Tech Support Can Be?

However, let’s say an unexpected problem occurred despite all precautions. What the customer can do? First, they have to realize that this is as much of a blow for the supporting organization and they’re probably concerned a lot about the situation. The customer needs to assess if they trust enough the provider to let them deal with the situation. Sometimes it is the only option because another provider may not have the intrinsic knowledge of the system to deal with it anyway.

Secondly, the parties need to thoroughly assess the damage and see if recovery possible and to which extent. If no remedy seems to be likely it’s up to the customer what they want to do. At this moment the support company finds itself in a very hot spot. All past successes and achievements are forgotten. A specter of a lawsuit is haunting. Disciplinary actions must be taken. Internal procedures must be revised and altered. Staff changes may be imminent. The survival of the business itself may be at stake!

But if a remedy is possible and achievable it becomes a real test for the integrity and technical knowledge for the support organization. Will they be willing to take jump into the flames or will try to shift the responsibility on some unfortunate external circumstances? Will they be willing to provide the remedy with no additional charges? Will they be willing to put extra effort and overtime into it? What extra mile will they go in order to make the customer happy again? To what extent they treasure the business relationship and the trust of the customer?

Now, let’s say – after few desperate days and sleepless nights while performing acrobatic data manipulation and charting many un-billable hours, the problem is solved for 99.9%. What each party has learned from the experience? The support organization has learned to enforce the bullet-proof data security policies and improve customer communications. The whole ordeal also tested the company’s integrity, depth, dedication, and technical expertise.

The customer learned to improve their own procedures (such as data backups). They also learned that to err is human but forgive is divine. And that “to fix it” is the whole reason for the technical support specialists to exist.

Source: IT Blogs
Test Explores RFID's Ability to Fight Shoplifters

New research from the University of Arkansas' RFID Research Center shows that radio frequency identification technology has a potential role to play in theft deterrence in the apparel and footwear business.

The study sought to find how well RFID would act in an electronic article surveillance (EAS) capacity. Like regular EAS, which sets off an alarm as a tagged item passes through a door's sensors, RFID signaled when an item was leaving the store illegally. The RFID tagged items also provided additional information not available with EAS including the specific items and quantity removed.

"When something is stolen, the store gets a double hit. They know something is being stolen but, they don't know what it is," Bill Hardgrave, director of the RFID Research Center, told RFID Journal.

"Overall, we were pleased with what we saw, but the research is far from over," he added. "RFID did well against [traditional] EAS."

The University of Arkansas testing simulated typical shoplifting scenarios in stores and tracked items using a variety of technologies including RF and acousto-magnetic (AM) EAS technologies and EPC Gen 2 tags.

Researchers along with ADT and Checkpoint Systems tested EAS technology and RFID systems in "non-cooperative environment" scenarios including using various techniques to shield tags such as holding them under the arm or placing them inside a hat or foil bag.

A combination of EAS and RFID appears to give retailers the best chance of putting a crimp in store shrink.

"I think we will see combinations of those technologies at least in the near term," said Dr. Hardgrave.

One area not tested was the susceptibility of RFID tags to be removed without being disabled.

Randy Dunn, director of RFID sales and marketing at ADT, said a solution that combines a RFID chip placed inside an EAS tag may make it difficult enough to discourage shoplifters from attempting to tamper with the combination technology.

Source: RetailWire.com

Businesses Blind to the Data Breach Risks
of Temporary Staff  

Research released by Websense, Inc. this past December has revealed that temporary workers across the UK are unwittingly exposing businesses of all sizes to information security breaches. The survey revealed that over 80% of temporary staff had the same level of access to company documents as permanent staff but without the same accountability. In the Information Open Access survey of more than 100 temporary staff, the findings indicate that organizations may be unnecessarily putting their data at risk by granting temporary staff access to confidential information at the same levels as permanent employees.

The survey highlights that 87.7% of respondents were able to access documents from the company network drive, 52% had used a co-worker's e-mail account and 80.7% had unlimited access to the Internet from their work PC. A worrying level of apathy amongst businesses toward basic data security processes is leaving them wide open to the risk of accidental or deliberate data breaches - only 21.1% of temporary workers had signed any type of PC or Web use policy.

During the busy Christmas season the UK's 3.1% (or 770,000) temporary staff ballooned to nearly 900,000. However, businesses were evidently ill-prepared for the security risk this introduced.

Security Breach

The most prominent theme to emerge from the survey results shows that temporary workers are exposing businesses to potentially large-scale information leakage where confidential data is allowed out of the organization, either by mistake or through malicious intent. Key findings include:

  • 87.7% of respondents were able to access documents from the company network drive or electronic folders that permanent staff use on a day to day basis
  • 62.4% had used someone else's login details to access a work PC
  • 57.5% admitted sending work documents to the wrong person
  • 91.2% were able to print any work document they liked
  • 36.8% were given access to passwords for company systems (i.e. invoicing, procurement, payroll)
  • 52% used someone else's e-mail account or a general company e-mail address
  • 42.1% were able to connect a personal device (iPod, USB key, PDA) to their work PC

A similar survey has yet to be conducted in the USA or Canada, but if these findings in the UK are any indication of how lax company policies are with regard to hiring temporary employees, then its just one more reason to make the already security crazed American public even more paranoid.

  Source: Websense

(c) 2008 Retail Hero
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