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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.

Retail Systems Business Drivers and Benefits

• Automate business processes to allow retailers to have more time for planning and
analysis
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history and trends
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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

• Reduce the amount of markdowns to increase profit

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5590.079 Upgrading Legacy

3.076172E-02

Point-of-Sale Systems:
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”
4
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
5 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

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.
8 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)
6
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.
10 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)
7

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
13 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)
8

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:
info@epicor.com 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

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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

• Reduced costs associated with training fees, travel and accommodation expenses for
workshop or course trainers, and lost employee work time
• 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
• 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
• Reduced administrative hassle for course registration, and course content, resulting in
further reduced costs
• Greater volumes of employees can receive timely training, as a result of by-distance access
to online training programs or courses
• Reduced employee turnover, as more efficient training and better test results can boosts
employee confidence and performance
• 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?

• Align learning with business goals, as well as employees’ personal goals, to make sure time
and resources are maximized.
• Develop a well-planned business case to win senior executives approve a proposed e-
learning or LMS project.
• 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.
• Assess your company’s IT infrastructure to decide whether to implement a hosted or a
licensed solution.
• Make sure you choose a solution that will integrate with your existing human resources
(HR) or enterprise resource planning (ERP) solutions.

Mitigate Risk with Online Software Selection Tools (Or, How an Online Software Selection
Process Can Help You)

• Compare vendors offering LMS solutions with those offering content management system
(CMS) solutions, to find out which best meets your needs.
• Evaluate vendors that provide modules for competency and performance management.
• Examine functionality that supports course content authoring or publishing tools.
 • Determine which solutions satisfy your requirements for classroom or e-learning facilities.

More LMS and E-learning Resources

• Get an overview of content management systems (CMS).

• Read articles by industry experts about learning management systems (LMS).
• 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
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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-System-
LMS.html&CurrentPage=2

http://whitepapers.technologyevaluation.com/Category/275429/Learning-Management-System-
LMS.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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4. Lakshmi Mittal
5. Mukesh Ambani
6. Anil Ambani
7. Ingvar Kamprad
8. KP Singh
9. Oleg Deripaska
10. Karl Albrecht
11. Li Ka-shing
12. Sheldon Adelson
13. Bernard Arnault
14. Lawrence Ellison
15. Roman Abramovich
16. Theo Albrecht
17. Liliane Bettencourt
18. Alexei Mordashov
19. Prince Alwaleed
20. Mikhail Fridman
21. View The Complete List top am cos
22.
23. Cargill
24. Koch Industries
25. Chrysler
26. GMAC Financial Services
27. PricewaterhouseCoopers
28. Mars
29. Bechtel
30. HCA
31. Ernst & Young
32. Publix Super Markets
33. View The Complete List