Technology is all around us. It is a catch-all word for all the 'things' we use to make our lives better. In the store, retail technology is all about communication, most importantly communication between you and your customer.
The POS (point-of-sale) is the most obvious '"point"' of communication, so let's start there. Hardware is the "'nuts and bolts"' of your POS system, and Australia's leading importer and distributor is Goodson Imports.
According to John Gentile, National Sales Manager, POS Division, says the biggest technology shift is to wireless.
"At the simple level, wireless communication replaces the cable between the printer and the PC ," says John Gentile.
But, wireless has far-reaching implications for retailing. The future is direct wireless communication with suppliers using EDI , communication through VOIP (voice over internet protocol) using broadband, and self-checkout based on RFID (radio frequency identification).
"Software developments and falling costs will make these technologies viable," adds John Mr Gentile.
"Wireless systems are flexible and adaptable, and open up many possibilities - wireless networks, mobile sales and payment, and portable devices for logistics and stock control."
Goodson Imports supplies PCs and ECRs. ECRs are stand alone-systems with proprietary software. The logic is different - being purpose-built they are fast and accurate at what they do. For example, they turn off and on in seconds and remember where you were.
Although the trend is away from ECRs towards the three www's: web-based, windows-based and wireless, Bob Torning, National Sales Manager, ECR Division, says that the latest in ROM-based systems are more stable and reliable than PC-based systems, and they are very powerful. More importantly, they no longer insist on building everything and locking you into a proprietary system. They now make everything to run either on a PC or from the ECR.
"ECRs now do things that in the past needed a PC, things such as security, networking and management reporting, and they can run PC-based peripherals such as printers,." says Mr Torning.
Another technology that is blurring the distinction between ROM- and PC-based systems is touch screen.
"We expect C-Stores to be major users of touch screen because it is easy to learn and easy to use, and increasingly, software is being written for touch screen," says John John Gentile
Goodson is master distributor for NCR's RealPOS systems, including the PC-based Touch System.
Under the motto, '"Turning Transactions into Relationships'", NCR supplies hardware, software and systems for all points of sale (counter, telephone, kiosk, ATM machine or internet). John Saccomanno, Director Industry Marketing, is NCR's global expert in convenience retailing.
John Saccomanno agrees that the move is to touch screen technology worldwide.
"Touch screen technology is becoming more cost-effective and reliable, and the user interface suits retail environments with high labour turnover," says John Saccomanno.
"It is an intuitive technology that requires minimal training, as well as being more resilient to environmental factors such as dust and liquids. It gives the operator a clear view of the whole store, including food service and the forecourt."
Technology has to make sense. In convenience retailing the challenge is to add sources of revenue without additional cost. That means technologies that facilitate self-service. Food service can add revenue but the labour cost is a constraint. You can now give customers the opportunity to electronically pre-order food as they enter the store.
"We are seeing a lot of interest in self-service in the convenience store space," says John Mr Saccomanno.
"Not so much at the check-out, but in financial services and payment for goods such as fuel. Paying at the pump is popular in the United States, but then the challenge is to get the customer inside the store."
This includes AV (audio-visual) stimuli (see later in the feature), and just as important, keeping a clean and tidy shop that is well-lit with attractive products and compelling service. Seems the mop is still a key technology.
In much the same way as a mop cleans the floor, developments in applications and hardware drive each other, according to Doug Brown, National Marketing and Pre-Sales Manager with Toshibatec
Toshibatec is the new name for TEC Australia, familiar to you as POS suppliers.
"With ever-increasing processing power on the Windows platform, you can have a couple of advertising screens hanging off the POS terminal," says Doug Brown.
Doug agrees that wireless will be the real emerging technology for peripherals and communication over the next 10 years.
As the price of the technology falls, there are huge cost savings in both installation and maintenance.
"Once the wireless hub is in place, the world is your oyster," says Doug Mr Brown.
"You can manage the store froorm a small hand-held touch screen tablet-style PC."
You will not be the only one with a hand-held in your hand, if Brendon Guerin, Retail Business Development Manager with Task Transactions is accurate in his predictions.
PSAs (Portable Store Assistants) are changing the way we shop. They exemplify the power of combining the key emerging technologies - web-based, windows-based and wireless. CCustomers scan a smart card when they enter the store and can pre-load shopping lists. The system keeps a record of favourite items and you can send them a list of specials. They can use the PSA to navigate around the store.
"Because it is a Windows CE (cConsumer eElectronics) device, you can load any application," says Brendon Guerin.
"Hand-held devices used to be dedicated with proprietary hardware and software. This PSA includes a software development kit to help you (or an applications developer) write new applications and you can integrate it with existing systems."
It is effectively a mini PC with bar code scanner, GPS (global positioning system), GPRS (general packet radio service), and a mobile phone facilities. It can be used for all sorts of communications in sales and marketing as well as store management. You can take a look at the future of retailing at www.future-store.org. Wincorp Nixdorf developed the PSAs for the Future Store, and Task Transactions has just launched them in our region.
Kreative Technology brings the latest technologies together in Australia with systems designed for the petrol and convenience channel. Director, Peter Lee, used his oil industry experience with BP to build a service station system in partnership with Metric Australia.
The PC-based system can be a single store system or a centrally-managed network.
"We use our experience, technical expertise and practical approach to make complete store management systems that integrate POS and back office," says Peter Lee.
"The emerging technologies are touch screen and wireless but they are only as good as the software applications created to take advantage of their power and flexibility."
Kreative Technology develops software for the channel - all systems except accounting where there are many good software packages available. Peter cautions that retailers are at risk of investing in technology for the sake of it without stopping and thinking how it will benefit their business.
"Even though they get enthusiastic when they see what new technology can do, retailers still have a tendency to want the new system to do what the old one did," says Peter Mr Lee.
"You should take the opportunity to find out what your business needs and what the applications can do. New technology is an opportunity to assess the way you run your business - to find out where you and your staff are spending valuable time. Then, find a system that makes your business more efficient, releasing time for management and marketing (and playing golf). If you put yourself in the driving seat it is easier for the supplier to find the right technology for you."
Readers will be familiar with electronic ordering and the electronic delivery of products such as phone recharge, both topics of past feature articles in Australian Convenience Store News, and both benefitting from emerging technologies.
DialTime's core technology is the internet, and DialTime is trialling kiosks that use the Bluetooth wireless system to process bill payments, ticket purchases, photo processing and more.
"Wireless connectivity, like the internet, will change the way we operate and communicate," says Matthew Varone, Marketing Projects Coordinator, DialTime.
"Technology is all about communication. If I were a small business owner I would ask: 'How does it give me a competitive advantage?'
"For example, with electronic products such as DialTime, retailers do not have to carry physical stock for a range of products and services. That's additional revenue without additional cost."
The Commonwealth Bank is expanding its EFTPOS merchant services capabilities to take advantage of greater processing capacity and power. Next generation EFTPOS products include XPOS and the soon to be launched BPOINT bill payment service.
XPOS lets you use your existing Commonwealth Bank EFTPOS terminal to sell mobile phone recharge, calling cards, theatre tickets, toll passes, fishing licenses and magazine subscriptions. BPOINT will add bill payments to the menu, allowing customers to pay their bills at your shop counter.
"BPOINT will enable access to some of the largest billers in Australia, attracting new and repeat business, and provide new cross-sell opportunities," says Stuart Woodward, acting General Manager, Merchant Acquiring. "BPOINT brings a new source of revenue for participating retailers, with a BPOINT transaction commission being paid for every transaction processed for a small increase in terminal rental fees."
With electronic ordering, it is not so much emerging technologies, but emerging users of technology - an increasing awareness that the web is the place to do business.
According to Garrett Shaw, Manager Retail Development, e-Oorders, more and more retailers are using back-end systems to create orders and interface with e-Oorders for an end-to-end supply chain.
"Five years ago, most retailers were on old systems, and now many are using web-based and Windows-based platforms," says Garrett Shaw.
The gains are in increased efficiency, reduced inventory and working capital costs, fewer out of stocks and greater accuracy. With electronic ordering, the customers drive the supply chain through the POS.
"Their purchase creates the order which goes through the web, via e-Oorders, to the supplier, and controls the picking and delivery," adds Mr ShawGarrett.
"e-Oorders is working with BreezeRadiant, On Q, Dealer and, in particular F1 Solutions, to create management information and central replenishment systems for retail networks.
"However, there are still plenty of retailers out there not taking advantage of technology to refine their supply chains and reduce costs."
Overall, Australia has not yet taken full advantage of what technology has to offer, according to Scott Rylands, General Manager, Quatro Four Retail.
"The technology enables a compelling customer experience," says Scott Rylands.
"With the web and broadband, ordering can be simple and flexible, saving time. It can be a 'real-time' experience.
"Web-based ordering has evolved from basic functions to real-time interaction between retailers and suppliers. The technology is more effective, more people are using it and people are confident in the system.
"At Quattro, we are using SMS to confirm orders and to send reminders. You can even accept a promotion by SMS or from anywhere in the world through the web. The next step is online payment."
In other parts of this article we have said that the technology is only as good as the software. Accounting software packages are key business applications, and these too are continually evolving to take advantage of new technologies.
Quicken Australia won PC User Magazine's award for best point-of-sale software in 2004. The 2005 version of QuickBooks is characteriszed by integration with other systems - banking, payroll, taxation, superannuation, payments and debt recovery.
Similarly, 2Clix integrates business management and accounting. According to Philip Snook, CEO, 2Clix evolves with client requests so that technological enhancements are driven by users.
The other part of the business that is taking advantage of technological developments is security.
"The latest digital recorders are more sophisticated with greater storage capacity," says Joseph Novak, Managing Director, Hitech CCTV (email: HITECH.CCTV@bigpond.com.
"They now have smooth, continuous real-time play-back due to better compression, and the new-generation cameras deliver sharper images."
The makers of EAS (electronic article surveillance), Tyco International are using the latest technology to transform 'dumb EAS' into 'smart EAS'. Sensoramatic, the world leader in EAS, started out stand-alone with no memory and no interface. It just let off a loud beep when someone tried to leave the store without paying for the goods.
Now it captures information and can be interfaced with other systems such as digital video recorders and POS. It can analyse the information and investigate trends and patterns of security breaches.
"These enhancements were enabled by the dramatic increase in computing power and storage capacity, says Stevan Ristic, Manager, Emerging Technologies (Australia & New Zealand).
"Smart EAS is now cost-effective, whereas before it needed a system too big to make it viable.
"It makes sense to connect everything up. We are continually looking for ways to use information to find out what is happening in the store."
Video cameras can now be connected through your network and can be viewed by PC from anywhere, according to Gary Else, General Manager, Communitech .
"Network surveillance can be viewed anywhere in the world," says Gary Else.
"It is a powerful, flexible system and easy to implement in small- and large-scale applications. You can record on your PC when you want. For example, you can set the times to record or select to activate by motion detection. It can be linked to your POS and matched to cash register or POS records."
The technology has been around for more than 10 years but has only been viable in the past couple of years as the system has become more efficient and reliable, and users have switched to broadband.
The main saving is in time. When the alarm goes off you can log on wherever you are and check what's going on before contacting security personnel or police. You can reset the alarm if necessary.
Some cameras can now record audio but you need to be careful not to breach privacy laws. Joseph Novak of Hitech CCTV agrees, adding that although this can be useful at the console, audio is not usually necessary.
It does, however, conjure the delicious thought of having a real-time conversation with potential robbers from the sanctity of your own home. Imagine the pleasure of yelling: 'Stick 'em up, the place is surrounded', knowing the police you had earlier called are just around the corner!
The technology that is creating smart security systems can also be used to get to know your customer better. As well as watching out for criminals, network surveillance can be used to monitor the reactions of honest customers to your networked marketing.
"By combining network digital signage, that is video screens with marketing messages, and surveillance, you can watch your customers' responses to advertising," says GaryMr Else.
"You can display a mix of media, including video, live stream, website information, images and flash."
This concept works as well on the forecourt as it does in the shop. Digital Marketing has developed I Station in-store and forecourt radio. Historically, it's been the preserve of the major supermarkets; now, Digital Marketing is using the power of broadband internet to deliver a mix of pre-recorded promotions and specials, music, news, weather and sports.
"The C-Store owner can play their own commercial radio that includes advertisements for their products and services," says Mark Horwood, CEO of I Station, a division of Digital Marketing.
The system comes into its own on the forecourt where customers are bored while refueling refuelling and welcome the diversion of radio entertainment. Scan data results from trials at four Shell-branded sites in Western Australia showed increased sales of advertised confectionery and beverage lines.
"The patented forecourt version of I-Station was the result of a joint venture with Metrics Australia, and has overcome the safety issues associated with the use of electronics on petroleum forecourts," adds Mr Horwood.
Electronics dominates the emerging technologies, but other things matter. The simplest advance can make your life so much easier. For example, Southern Imperial has developed an adhesive for their sign holders that not only lasts at least six months but can be moved from surface to surface, even to inside fridge doors.
"Earlier versions lost their stickiness within a month," says Damien Brooks, Marketing and Design Coordinator.
"It sure beats sticky tape, and does not leave any marks."
Remember what we said earlier about keeping a clean and tidy shop being the best way to get customers to come inside. Suppliers of shelving and shelf accessories are all about creating a professional look in your store and, like the technological developments in electronics, saving valuable staff time.
For example, Southern Imperial's front row spring loaded flip scan hooks push products to the front of the hook so you do not have to spend time re-facing. This is particularly useful in one-person operations where most of the time is spent behind the counter.
The same principle applies to Trion Industries' () freezer-capable self-loading system which makes sure product is always at the front and does not have to be moved forward.
"The expandable wire tray system was released in the United States two years ago, but has only been available in Australia for six months," says Rod Pickworth, Director.
"Plastic trays do not last in freezers. We developed a system using powder-coated wire. Trion specializes in wire and, over the years, has patented 50 products in the United States."
"Technology enables product development.""
And, you need to be enabled to enable it all!