1. Consumer adoption of Mobile-point of sale technology
In this ICE (Information, Communication, and Entertainment) era, customers’ preferences have
become dynamic and ever changing. It’s a great challenge for the retailer to provide value to
the customers because they not only want it in terms of price but also in ambience,
appearance, quality, information, selection, convenience, service and entertainment.
It has become difficult for the stores to attract substantial number of footfalls. The customers
are also constantly educating themselves before shopping and enjoy thoroughly using digital
tools and mobile devices to make the retail experience more enjoyable. They search a series of
information before going for shopping like who sells it, which brand is better, how much is the
cost, the earlier users’ comments etc.
Customers have become techno-savvy and the rate of adoption of technologies is very fast.
They constantly customize the utility of these technologies for different purposes. So it is very
essential to meet the demands of the customers as soon as possible in order to keep their
loyalty intact.
Digitalization has revolutionized every business and retailing is no exception to it. Today
retailers need to have a fast and reliable updation of far more information pertaining to
customers (internal and external) to take quick and better decisions.
Application of IT in various core retailing elements like store-operation, merchandising,
inventory control is inevitable and without that, it simply cannot function in an efficient and
effective manner. This is the only way to stop customer defection and restore their loyalty.
Addressing these issues will require a new way of thinking — and a new way of marketing.
However, the adoption of emerging technologies is very slow in case of retail industry because
primarily it depends on shallow margins and cannot afford to spend lavishly on
experimentation.
Retailers face relentless pressure to reduce costs while delivering excellent customer service.
State-of-the-art supply chains and back-office systems are becoming minimum requirements
for successful retailers. But it is also a fact that new technologies remove the bottlenecks by
speedy implementation and visibility to the end customer and tries to make new business
opportunities.
To win in this hypercompetitive environment, successful retailers are bringing the power of the
enterprise to the selling floor and empowering store managers and sales associates with the
information and tools to improve the customer experience and capture more sales.

2. A typical retail organization has the business objective of procuring goods from suppliers and
reselling them to end customers or consumers. The chief value-added functions provided by
the retail organization are in terms of providing a buffer or cushioning effect between the
supply and demand (supply chain (Marshall 1997) – inventory, logistics, allocation, stores
management, procurement, sales, channels etc.), stimulating the demand and arranging for
adequate supplies to meet the renewed demand (promotion, feedback etc.) and customer
service (profile management, check-out, product information, order management, customized
service etc.) (Mason et al 1993).
In order to sustain in this competitive environment, the retailer needs to optimize on inventory
levels, store shelf space, movement of goods between distribution centers and stores,
maximize on ROI and finally maximize customer satisfaction by providing prompt, reliable and
customized service.
This calls for collection, processing and dissemination of valuable information across the supply
chain, as well as across the retail organization including the stores, distribution centers,
warehouses, marketing department, finance etc. With a view to form the basis for the critical
success factors the following information are crucial for a retail organization:
- Product information – catalog, availability, new releases, promotion, supply and demand etc.
- Customer information – profile, behavior, activities, preferences, distribution etc.
- Operations information – logistics, allocation, procurement, schedule, inventory, shelf space
etc.
Timely access and a real time information to the above said critical success factors for a wide
variety of channels and partners is the key to make the entire retail business a digital one.
Digitalization, web services technology, information technology, internet holds out a lot
promises for the retail industry in this respect. IT transformation is a key factor in achieving high
performance for retailers. Today's retailers need to transform their IT capabilities for a number
of reasons. These include:
- To aggregate and analyze customer data to enhance differentiation.
- To increase a company's ability to respond to a rapidly changing marketplace through
enhanced flexibility and speed.
- To operate effectively, retailers need to have one system working across stores (sometimes
across national borders) to ensure the most effective use of stock and to support optimized
business processes.

3. Neutralizing the errors and improved efficiency are the two key factors by the result of which
retail organizations benefit by automating the business processes. Not only this, better and
informed decision making capabilities has improved with real time information available to
retail companies.
With automation, retailers are able to effectively track the customer information so as to
provide better and uninterrupted services to the customers round the clock. Retailing over the
Internet enables their businesses to be available 24/7 and they are able to draw larger audience
spread across the globe. Also, customers are given freedom to customize, browse online
catalogues, and choose from a wide variety of options without having to leave their homes or
offices. Besides, customers get the best deals and discounts through online retailing.
Digitalization in retail is rather a need of the hour as it leads to image improvement and
centralization. in any industry, to make the business productive, there should be a focus on the
improvement of the image of the organization in the market place. And the second is on
centralizing the attention on improving the internal operation which results in lowering the cost
and improving the services.
In retail, a great opportunity lies in using the modern technology like IT and digital tools to
make the processes more effective. Seeing the trends of customer buying behavior, it is
imperative for the retailers to digitalize the entire process to redefine the retail industry and
change the approach towards business.
Foreign retailers like Wal-Mart, Zara and Amazon.com use new and emerging technologies to
stay continually relevant to the ever-changing consumer. To have an uninterrupted flow of
merchandize and information, retailers have to keep pace with the demand. Because this is the
one business where there is a need to have an accuracy in capturing information and make it
available not only within the store, but also to warehouses, distributors and manufacturers as
soon as it has been acquired, has been an important requirement.
The need for making information available in real time emerges out of the need to manage the
short shelf life of goods and the need to manage the costs of inventory. Sales require seeing the
consolidated effect of each transaction to understand achievement of targets, and take
decisions as may be necessary.
Merchandizing looks at the data in the form of movement of merchandize, which has to be
replaced and therefore reordered as the case may be. Finance will have to look into the
movement of merchandize and the sales in terms of the inflow of case into the company and
the payments have to be made to the suppliers. Marketing looks at the transaction to
understand and evaluate new campaigns, sales promotions or spot offers which may be
offered.

4. It has been noted that online commerce has penetrated the telecommunications industry most
deeply. One out of every two customers concludes his or her contracts online. In a survey, it is
found out that hybrid sales dominate fashion and consumer electronics. 58% (fashion sector)
and 56% (consumer electronics sector) of the respondents shop both online and in physical
stores.
Sectors such as food and home improvement are still strongly characterized by physical stores.
In those sectors, 91% and 70% of the respondents shop primarily in stores. Yet the next wave of
digital commerce will also cover these sectors. More people already buy food online than at
kiosks or gas stations.
It does go without saying that purchasing decisions are made today on an extremely short
timeline. With the exception of consumer electronics and telecommunications services, the
overwhelming majority of consumers need two days at the most from the initial idea to the
purchase (food: 93%, clothing: 86%, home improvement: 71%). While the numbers of routine
and impulse purchases are very high for food and clothing, the other purchases are planned at
short notice in the other sectors. With the spread of the mobile Internet, this trend is set to
continue. Consumers will make their decisions even faster in future.
For this, buyers combine three sources of information in order to make good decisions in such a
short time: media, social contacts and sales staff. The most commonly used sources for
independently gathering information are newspapers, television and the Internet. Majority uses
recommendations from friends and acquaintances as an orientation. 24-80% seeks assistance
from sales staff. Significant differences exist from sector to sector.
As a rule, the more media-savvy consumers are, the more likely they are to obtain their own
information. The less the experience consumers have in a particular shopping sector, the more
likely they are to also ask friends, acquaintances, or sales staff. For retailers and brands, it will
become increasingly important not only to sell, but to provide customers with the right
information in the right location.
It has also been observed that traffic to brand websites is decreasing, while Facebook user
numbers are growing. The purchasing process does not reflect this: visiting brand websites
remains an indispensable part of it. The less developed online sales and the more important
impulse buying is for a sector, the less important brand websites tend to be. Newsletters also
play a role. They are often used as a way to stay informed of new products. Facebook pages and
smartphone apps do not yet play a significant role in the buying process. In future, Facebook
pages and apps will also sell.
All this shows that it pays for physical retailers to provide additional incentives to profit from
the short-term nature of the buying process. Surprisingly, they have considerable room for
improvement in this regard. Currently, customer communication and product presentation are
dominated by a rational approach. Fashion and home improvement stores are the only ones to
deliver a semblance of inspiration.

5. Faced with considerably more aggressive pricing, growing competition from new points of sale
and massive improvements in digital shopping experiences thanks to tablet computers and
smartphones, physical retailers must take immediate action. New digital technologies such as
touchscreens and interactive display windows and advertising spaces offer a variety of
applications to that end.
When we come to look at it, online shoppers have the reputation of being price-focused.
Indeed, consumers buy online primarily out of ease and convenience, the lack of fixed opening
hours, and the fact that they do not need to carry the products home themselves. They also
appreciate the greater selection offered by online retailers.
Brands continue to play an important role in the purchase process. Yet commitment to
individual brands has decreased. Buyers often purchase products from a variety of brands. They
switch brands, experiment, and are open for inspiration. Most buyers’ decisions are based on
product specific criteria rather than the brand. In future, the number of newly emerging niche
products and brands will continue to increase.
Only brands that focus on the customer relationship rather than the products can expect loyal
customers. All others will experience much tougher competition. For retailers, digital
technologies provide the opportunity to extend their range considerably and to test the sale of
new brands online.
All said and done, smartphones will play a central role at the POS in future! In the present
scenario, some consumers already use their mobile phone to make better purchase decisions or
buy cheaper elsewhere. These figures are significantly higher for consumer electronics and
home improvement products. With the increasing penetration of smartphones, this is set to
change in the future. Retailers will gain a wealth of opportunities to sell, and to provide
information, navigation and assistance.
Brands and retailers are beginning to weave social media into the sales process as well. In
future, Facebook, Twitter and the like will not only be communication tools, but also sales
channels.
Retailers will turn friends and acquaintances into affiliates in order to meet the growing needs
of consumers for personal guidance and orientation. They thus gain quality and flexibility.
After the emotionalization of shopping in the 90s and the event-driven nature of the 00s, retail
outlets will be transformed into playgrounds over the next 5 to 10 years. Thus, the retail trade
must reinvent itself to remain relevant in the digital age. Physical stores will only lose their
added value in case they don’t!

6. They should take into consideration the triumphant progress of touchscreen computers and
smartphones. In a few years’ time, consumers will be able to browse and make purchases at
display windows and outdoor advertising spaces. They can also use touchscreens to order
products in stores or view additional information. Tablet computers let sellers present products
more effectively and sell them directly. A variety of new digital services will support this buying
process via sensors.
All this means that the advent of Information Technology is here to stay. But before we discuss
any further, Information technology, (as defined by the Information Technology Association of
America) is the study, design, development, implementation, support or management of
computer-based information systems, particularly software applications and computer
hardware.
Every day, people use computers in new ways. Computers are increasingly affordable; they
continue to be more powerful as information-processing tools as well as easier to use. One of
the first and largest applications of computers is keeping and managing business and financial
records. Most large companies keep the employment records of all their workers in large
databases that are managed by computer programs.
Similar programs and databases are used in such business functions as billing customers,
tracking payments received and payments to be made, and tracking supplies needed and items
produced, stored, shipped, and sold. In fact, practically all the information companies need to
do business involves the use of computers and information technology.
In Retail, IT plays the most important role in modern demand-forecasting systems, providing
new opportunities to improve retail performance. Although the art of the individual merchant
may never be replaced, it can be augmented by an efficient, objective and scientific approach
to forecasting demand.
Large-scale systems are now capable of handling the mass of retail transaction data –
organizing it, mining it and projecting it into future customer behavior. This new approach to
demand forecasting in retail will contribute to the accuracy of future plans, the satisfaction of
future customers and the overall efficiency and profitability of retail operations.
Inventory management comes next, where, while optimizing the deployment of inventory,
retailers need to manage the uncertainties, constraints, and complexities across their global
supply chain on continuous basis. This allows them to improve their inventory forecasting
ability and accurately set inventory targets.
An IT solution is a proven and market leading solution for determining optimal time-varying
inventory targets for every item, at every location throughout supply chain. This allows retailers
to significantly reduce inventory without adversely affecting service levels.

7. Another example where Information technology can be beneficial is store management. That
alerts out-of-place or stock-out items. The in-store system uses magnetic strips or barcodes or
RFID to monitor actual versus intended product location on the floor or in the stockroom.
(Source: Motorola, January 2008, ‘WHITE PAPER: The next revolution in retail technology’, 1-
16), Available at
http://www.motorola.com/web/Business/Solutions/_ChannelDetails/_Documents/static%20fil
es/FutureRetail_WP_0108%282%29.pdf, 22nd April, 2013)
(Source: Debasish Rout, Arvind Kumar Jain, Quarter III 2012, ‘Asian Journal of Business and
Economics’, Volume 2, 1-18, 22nd April, 2013 )
Thus, in the modern times, POS mobile payment method has quickly made its way in. This
method of mobile payment enables consumers to pay at a POS with a mobile phone.
Consumers must be able to synchronize with the merchant system to complete a transaction.
This method is useful for micro-payments; when the consumers do not have coins available,
they can buy goods with their mobile phone. However, a downside is that most of the
applications require a mobile phone modification and the installation of a device in the
merchant payment system.
In addition, these systems often require a pre-paid account. Most of the solutions used on the
market are based on POS mobile system payments. The Vivo wallet is an example of utilizing
this method. It was developed by Vivotech (Vivotech, 2009). Consumers point their mobile
phone, equipped with a Vivo wallet application, at a cash register enabled with a specific reader
(Vivopay reader) and the protected information of the pre-selected card (credit, debit, retailer
loyalty and pre-paid card) is transferred by infrared, near field communication (NFC) or radio
frequency identification (RFID) to the merchant for a transaction.
Payment for mobile commerce applications has also become valid. In this method, the user
chooses what he/she wants to buy on a mobile phone and concludes the transaction with a
secure mobile payment system. This represents full mobile commerce.
The benefit of this method is that consumers can buy goods anytime, anywhere at a virtual
POS. However, the current mobile phone technology is not 100% appropriate to mobile
commerce. With the third generation (3G) of mobile phones and the development of symbiotic
computers, mobile payment solutions will likely gain a significant success. The mobile movie
ticket application is a good example of a mobile commerce solution. The consumer can buy
movie tickets from a theatre directly on a mobile phone.

8. This application is an alternative to the existing online applications like movietickets.com. The
main objective of this application is to offer a simple and secure movie ticket purchase service
24/7 in an environment with limited internet access. With the Mobile payment module,
consumers can buy movie tickets on mobile phone with text messaging and have their tickets
charged on their mobile phone bill. Since movie tickets are mobile tickets, they are sent via SMS
and they contain a wireless application protocol (WAP) link with a unique barcode (SMS WAP
strategy). This barcode represents the movie ticket and can be directly scanned by the movie
theatre employee who verifies tickets. This application is implemented with an SMS technology.
There are various technologies that support such payments. The major one is via SMS. Now this
is a text message service that enables short messages to be transmitted from a mobile phone.
SMS was introduced in the GSM (Global System for Mobile Communication) systemand later
supported by all other digital-based mobile communications systems. SMS messages travel to
the cell phone over the system’s control channel, which is separate and apart from the voice
channel.
Most of mobile communication carriers have been offering premium rate short messages,
which through higher pricing and revenue sharing allow companies to be paid for their services
by sending a short message. For this service, a short code of five or six digits, instead of a ten-
digit mobile phone number, is used to which a text message is sent. Short codes are associated
with a particular brand or campaign, e.g., Saudi Telecom Company (STC), and are easier to
memorize for consumers.
They are useful for mobile commerce applications deployed with SMS because the consumer
sends a keyword to a specific short code to start a ‘mobile shopping’ session (Valcourt et al.,
2005).
WAP too is involved in POS payments. It is the de facto worldwide standard for providing
internet communications and advanced telephony services on digital mobile phones, PDAs and
other wireless terminals. The WAP is a standard developed by the WAP forum (WAP forum,
2009), a group founded by Nokia, Ericsson, Phone.com and Motorola. WAP defines a
communication protocol as well as an application environment for cross-platform distributed
computing.
When issuing a payment in mobile commerce applications, the consumer must also receive a
transaction confirmation. This confirmation is necessary to receive the goods and services that
were purchased with the mobile phone. A way for merchants to validate transactions is to scan
a barcode received on the consumer’s mobile phone. An implementation of this technology is
to use an SMS WAP approach, in which an SMS containing a link to a WAP site. This link can be
invisible and the WAP content is directly downloaded on the consumer’s mobile phone. In this

9. case, an SMS would be sent containing a link on a unique barcode. This barcode is automatically
downloaded on the consumer’s mobile phone and can be scanned with a normal barcode
scanner used by the merchant (Valcourt et al., 2005).
Also, WiMax (WiMax, 2009) is used at times as a great technological boon for such payments. It
is a wireless digital communication system, also known as IEEE 802.16 that is intended for
wireless ‘metropolitan area networks’. WiMax can provide broadband wireless access up to 30
miles for fixed stations and 3–10 miles for mobile stations.
In contrast, the WiFi/802.11 wireless local area network standard is limited in most cases to
only 30–100 metres. WiMax can be used for wireless networking in much the same way as the
more common WiFi protocol. WiMax is a second generation protocol that allows for more
efficient bandwidth use, interference avoidance and is intended to allow higher data rates over
longer distances. WiMax and other new high speed wireless technologies are likely to take
market share from 3G mobile phone as well as digital subscriber line (DSL).
Talking about RFID, the same stands for Radio-Frequency IDentification. The acronym refers to
small electronic devices that consist of a small chip and an antenna. The chip typically is capable
of carrying 2,000 bytes of data or less.
The RFID device serves the same purpose as a bar code or a magnetic strip on the back of a
credit card or ATM card; it provides a unique identifier for that object. And, just as a bar code or
magnetic strip must be scanned to get the information, the RFID device must be scanned to
retrieve the identifying information.
A significant advantage of RFID devices over the others mentioned above is that the RFID device
does not need to be positioned precisely relative to the scanner. We're all familiar with the
difficulty that store checkout clerks sometimes have in making sure that a barcode can be read.
And obviously, credit cards and ATM cards must be swiped through a special reader.
In contrast, RFID devices will work within a few feet (up to 20 feet for high-frequency devices)
of the scanner. For example, you could just put all of your groceries or purchases in a bag, and
set the bag on the scanner. It would be able to query all of the RFID devices and total your
purchase immediately.
RFID technology has been available for more than fifty years. It has only been recently that the
ability to manufacture the RFID devices has fallen to the point where they can be used as a
"throwaway" inventory or control device. Alien Technologies recently sold 500 million RFID tags
to Gillette at a cost of about ten cents per tag.

10. One reason that it has taken so long for RFID to come into common use is the lack of standards
in the industry. Most companies invested in RFID technology only use the tags to track items
within their control; many of the benefits of RFID come when items are tracked from company
to company or from country to country.
Basically, a Radio-Frequency IDentification systemhas three parts:
 A scanning antenna
 A transceiver with a decoder to interpret the data
 A transponder - the RFID tag - that has been programmed with information.
The scanning antenna puts out radio-frequency signals in a relatively short range. The RF
radiation does two things: It provides a means of communicating with the transponder (the
RFID tag) AND it provides the RFID tag with the energy to communicate.
This is an absolutely key part of the technology; RFID tags do not need to contain batteries, and
can therefore remain usable for very long periods of time (maybe decades). The scanning
antennas can be permanently affixed to a surface; handheld antennas are also available. They
can take whatever shape you need; for example, you could build them into a door frame to
accept data from persons or objects passing through.
When an RFID tag passes through the field of the scanning antenna, it detects the activation
signal from the antenna. That "wakes up" the RFID chip, and it transmits the information on its
microchip to be picked up by the scanning antenna.
In addition, the RFID tag may be of one of two types. Active RFID tags have their own power
source; the advantage of these tags is that the reader can be much farther away and still get
the signal. Even though some of these devices are built to have up to a 10 year life span, they
have limited life spans. Passive RFID tags, however, do not require batteries, and can be much
smaller and have a virtually unlimited life span.
RFID tags can be read in a wide variety of circumstances, where barcodes or other optically
read technologies are useless.
In recent times, the use of RFID has been noted. Typically, it works towards Inventory Shrinkage
(Shrink) Reduction. By virtue of this, the operator is able to track retail items between point of
manufacture or purchase from supplier and point of sale. Besides, it also allows real-time
notification of security and saves money on theft, offering products at lower prices.

11. RFID also offers smart labeling, wherein, the merchant is able to monitor unattended inventory,
automate item identification on mixed pallets, know real time tracking, locate tagged items on
shelves and in shipping and receiving applications.
Shelf Stocking is another advantage RFID comes attached with. Under this, real-time
notification of out-of –stock items, improvement of product replenishment, retention of
consumers who may turn to competitors if inventory item is out-of-stock and automated
charting and tracking for improved product forecasting can be achieved.
Besides the above, RFID also offers quick check-out process to reduce the time spent in line,
labor time and cost of employees. It works to streamline the check-out process with ability to
scan multiple items and pay for them all at once. Overhead Reduction can also be an added
advantage.
In present day scenario of retailing, some vendors have already been combining RFID tags with
sensors of different kinds. This allows the tag to report not simply the same information over
and over, but identifying information along with current data picked up by the sensor. Over
time, the proportion of "scan-it-yourself" aisles in retail stores will also increase. Eventually, we
may wind up with stores that have mostly "scan-it-yourself" aisles and only a few checkout
stations for people who are disabled or unwilling.
(Source: Technology.com, ‘what is RIFD’, available at
http://www.technovelgy.com/ct/technology-article.asp, 22nd April 2013)
Besides RFID, NFC also comes to play when we speak about modern day retailing. NFC, or Need
for Communication is typically a short-range high frequency wireless communication
technology that enables the exchange of data between devices over about a 10 cm distance.
NFC is an upgrade of the existing proximity card standard (RFID) that combines the interface of
a smartcard and a reader into a single device. It allows users to seamlessly share content
between digital devices, pay bills wirelessly or even use their cellphone as an electronic
traveling ticket on existing contactless infrastructure already in use for public transportation.
The significant advantage of NFC over Bluetooth is the shorter set-up time. Instead of
performing manual configurations to identify Bluetooth devices, the connection between two
NFC devices is established at once (under a 1/10 second).
Due to its shorter range, NFC provides a higher degree of security than Bluetooth and makes
NFC suitable for crowded areas where correlating a signal with its transmitting physical device
(and by extension, its user) might otherwise prove impossible.
NFC can also work when one of the devices is not powered by a battery (e.g. on a phone that
may be turned off, a contactless smart credit card, etc.).

12. NFC technology allows the phone to read an RFID tag which contains a point of sales ID (POS
ID). As soon as the phone touches the RFID tag and application is started which contacts a
server and retrieves the authentication data. The consumer will be asked for the PIN to
authorize the authentication.
A major benefit of NFC is the quick setup time (200 ms) of the communication in comparison to
Bluetooth or Wi-Fi. Usually, there is no user interaction or PIN code required to establish a
connection between two NFC devices. However, the data rate of an NFC connection (max. 424
kbit/sec) is significantly lower than these technologies (Madlmayr et al., 2008).
(Source: Omaima Bamasak, 2011, ‘Exploring consumer’s acceptance of mobile payments’, Int. J.
Information Technology, Communications and Convergence, Vol. 1, No. 2, 1-7, 22nd April 2013)
(Source: GSM arena, ‘NFC (Near Field Communication), Available at
http://www.gsmarena.com/glossary.php3?term=nfc), 1-1, 22nd April 2013.
In retail, NFC devices can be used for easing payment systems, which we currently use through
credit cards and electronic smartcards. Mobile payments will be a hassle free replacement to
these payment processes. Loyalty programs and marketing can also leverage this technology.
Suppose you are standing in a queue at the checkout counter. Instead of rumbling in your
pockets to find the exact change to be paid, just open the wallet app on your phone and tap
and voila, the payment is through. This is what NFC brings to retail.
Retailers across the globe are ramping up their NFC portfolio to offer greater convenience for
their customers. KFC in United Kingdom has installed posters will provide a proximity search
that will let consumers find their nearest restaurant. Wal-Mart, Target, 7-Eleven, Best Buy and
other major retailers in the US are already riding on the NFC wave.
The latest on the block is PVR which has launched the ‘NFC enabled PVR Wallet’ app for the
BlackBerry 10 platform. PVR app has been bolstered by NEC India, which is the supporting
backend provider for ‘PVR Wallet'. NEC India has provided an end-to-end cloud-based e-
payment system called NFC e-Money server to PVR that integrates itself facilitating interactivity
between devices (the NFC enabled phone and PVR wallet access), for any monetary
transactions.
The Metro Rail project too shall shortly come under the NFC umbrella with Nokia offering NFC
based ticketing.
xpWallethas introduced an NFC ticketing solution for bus and train operators that lets
commuters purchase tickets from conductors equipped with NFC phones.

13. Game4U has installed smart posters in its stores that let NFC phone users tap their handset to
'Like' the retailer on Facebook. Their platform is developed Jus Tap!
Tata Docomo users can pay bills, to top up their prepaid talk time account, to download
ringtones and wallpaper and perform a number of other value-added services using NFC. They
have set up self-service MMT terminals facilitated by US-based Xius.
(Source: Neha Malhotra, NFC: 'Tapping' future of retail payments, Indianretailer.com, 1-1,
available at http://www.indianretailer.com/article/whats-hot/trends/NFC-Tapping-future-of-
retail-payments-1804/, 22nd April 2013)
With all this in place, it is surprising to see that traditional retail may be still battling online
shopping, when physical stores can use new technologies to better compete and grow!
Retailers need to invest now in mobile point of sale (POS) to keep up, not only with the
competition, but also with their customers and the new technologies they are bringing into
stores with them.
Fixed POS terminals have made retail operations more efficient for decades. Retailers know
how to use them, and customers know what to expect from them. But there are limits to what
they can do; stores and their customers are demanding newer and more efficient technologies.
Our research shows that introducing mobility to POS helps retailers leverage their existing
investments in fixed terminals and makes POS easier. Mobile POS is a challenge—it requires
retailers to rethink how they sell—yet over the next few years, mobile POS offers retailers an
opportunity to increase both volume of purchases and the size of individual purchases by
letting customers use the technologies they have in their pockets already.
Fixed POS terminals will not disappear any time soon. There are many ways in which fixed and
mobile POS work well together, and smart retailers know that consumer devices will be used in
their stores more and more. Our research shows that there are specific locations and situations
where mobile POS terminals provide both stores and consumers with more value. That
research unearthed five main findings toward making mobile POS succeed—but only if
businesses stick with it. Too many mobile POS initiatives are brief pilot projects, scaled back too
soon after rollout. Customers want to buy items at the point of service and will buy more if they
can. Mobile POS makes that possible.
Research indicates that mobile POS will become pervasive in retail through a three-stage
evolution. Retailers need to calibrate their approach so they can navigate effectively through
each of these stages in terms of duration, number of devices, target department, target
customer segmentation, and exceptions in transactions. There is no one-device fits- all plan, but

14. by passing through these three stages, retailers can adopt new technologies in ways both sales
associates and consumers will welcome.
Stage 1: Supplement: During this stage, businesses build the foundations of their mobile POS
systems. The basic features include:
- Letting associates create a ready for checkout basket of items in a mobile device.
- Showing customers or associates how to integrate mobile devices into the existing network of
fixed terminals.
- Making it possible to transfer a transaction to a fixed POS station if a feature is not supported
(such as processing a PIN entry on a debit card).
- Increasing the number of transactions processed per POS terminal.
- Testing and evaluating consumer acceptance, usability, and reliability.
Stage 2: Augment: Having gone past the initial Supplement stage, retailers could now be able
to:
- Increase transaction processing capacity by adding more terminals.
- Tightly integrate their mobile POS system to the existing network of fixed POS devices.
- Easily move around the store to provide transaction capability at the point of service.
- Enjoy targeted capability during peak hours and seasonal demands.
Stage 3: Independent: It is in the final stage of the evolution where retailers who have made the
investment could now see:
- Mobile POS take a lead role in POS transactions.
- All systems capable of accepting mobile transactions.
- More productive employees, who are no longer stuck in checkout lines.
By rolling out mobile POS across three stages, retailers could see, step by step, how mobile POS
could add value. Seasoned retailers know that a push for new technology from top
management does not work until the associates on the floor see that the new devices are truly
useful, saving effort and increasing productivity.
Many technology initiatives in retail fall flat when the people working the floor don’t see the
value; this three-stage rollout lets both management and associates see incremental
improvements as they accumulate and accelerate.
(Source: Sesh Rao Seshagiri, Mobility Software Services – Applications, Accentures, 1-2,
available at www.accenture.com/mobility, 22nd April 2013)
The retail industry is one that lives and dies on margins, with managers on a never-ending quest
to increase revenue and decrease costs. Technology has been an area of intense focus in retail
industries as a way to accomplish both goals.

15. Usually, the areas of technology innovations for achieving competitive advantage in the retail
industry are supply chain and customer interactions. Supply chain efficiencies enable retail
organizations to lower costs and provide better responses to customers, ensuring profitability
of the business. Besides, supply chain efficiencies the application of digital tools enhances the
performance of the retail business to a great extent. One major digital tool involved is windows
mobile–based solutions that are designed to provide the benefits of smarter retailing. The three
focus areas of smarter retailing can be summarized as follows:
-Smarter Shopping recognizes that customers value excellent service, improved product
availability, targeted promotions, and convenient access to information that makes it easier to
make informed decisions.
-Smarter Selling helps retailers to maximize sales and improve customer satisfaction by
empowering employees with real-time information about products and customer preferences.
-Smarter Operations improves business efficiency by providing real-time, anywhere visibility
into the measures that drive profitability.
Some examples of areas where mobile solutions are providing significant business value
include: Store management and operations, district and regional management, assisted selling
and interacting with consumer devices
Another technology involved here is the Mobile Point-of-Sale (POS), which is the physical
location where goods are sold to customers. Traditionally, this was a counter where a cash
register was located. Customers would line up in front of the counter and wait for their turn.
Sales counters are a fixed size, however, and can support a fixed number of people. Increasing
the size of the sales counter is not possible, so customers are forced to endure long lines during
congested periods such as holidays. Studies show that as many as one in ten customers will
abandon the line while waiting, leaving the store without making a purchase. Long lines also
engender ill will from customers, making them less likely to return to a store in the future.
RFID and Location Tracking have also received much importance lately, with many predicting
that the technology will revolutionize everything from logistics to inventory processing to the
customer experience. While time will tell if these predictions hold up, the use of wireless
technology to track objects is certainly promising. There are two general types of RFID in use
today –passive and active. Passive RFID uses small, inexpensive tags or stickers that contain a
unique identifier. The cost of RFID tags is not yet low enough to place tags on every individual
item, so tags today are typically placed on cases or pallets of goods.
Passive RFID tags contain no battery, and must be energized by RFID readers located within a
few meters. The typical use for passive RFID is to track inventory as it moves through doors,
loading docks, or other “choke points” in a retail operation. Passive RFID systems keep track of
events such as “Tag 125532 passed reader 26 on conveyor belt 3at 14:52:11.” Some RFID
systems can determine direction of passage, to record if a tag moved into or out of a room.

16. When we talk about technologies involved, Business intelligence in Retail and Standard
ERP/CRM cannot be ruled out! The former in retail refers to the compilation and usage of data
in an organization or retail company in order to increase the knowledge that companies have
about their sales and facilitate their marketing processes.BI in retail applications are tools that
allow real-time analysis and interactive manipulation of critical company´s information. These
applications provide users a higher understanding of the current performance of their Points of
Sale (POS) and the purchase behavior of their clients to anticipate future events, improve
profitability, business efficiency and customer service, and offer the possibility to identify new
business opportunities.
The latter refers to the basic needs of a retailer who deploys ERP solution can be classified into
two: First, to have an enterprise wide platform, and second to have a transaction management
system. So in order to fulfill these needs many of the ERP vendors focus on developing retail
ERP solutions that can help in consolidating all the functions. The retailers want that the entire
solution should incorporate POS, supply chain, inventory reporting, billing management, etc.
Now with the use of ERP system in place, it focuses more on retail centric components that
fulfills the requirements of a retailer or a retail organization.
CRM systems: it is well known that CRM solution helps in managing and building relationship
with the customers using different methodologies and technologies. CRMsolutions help in
building relations with the customers by tracking their interests, their needs and their buying
patterns.
POS or the point of sale terminals also has a role to play here. They can be best described as
cash register replacements. They are the systems that have the ability to track, record
customers' information as well as process and verify credit card transactions. For businesses
such as outdoor sales kiosks etc, small options like wireless POS modules, credit card readers,
etc are handy as they help them to record and process credit card transaction.
A retail point of sale systemcomprises of components that includes a computer, monitor, bar
code scanner, cash drawer, etc. Nowadays, a complete or all in one unit fulfills the requirement
as the POS monitors use touch screen technology and computers are built into the monitor
chassis that also helps in saving counter space for retailers. The software is designed in such a
way that it is capable of handling different customer based functions such as sales, returns,
loyalty programs, discounts, etc. We can also categorize the POS system into two, the first unit
handles the sales information for reporting purposes, sales trends, cost analysis, etc, while the
other comprise of 'back office' computers. An accounting interface is also used, to feed the
information related to sales & cost of goods in many retail POS systems.
Besides all these, Bar code readers hold much significance as well. These are basically hand-
held or stationary input devices. They are also known as price scanner or point-of sale (POS)
scanner & their functionality is to capture and read information that is contained in a bar code.
A unique identity is provided to all the products so that after scanning the product, details like
price, weight & other details are gathered. This information helps to keep track of total sales,

17. inventory list, etc when the information is entered into the systems. Barcodes have completely
redefined the system of tracking sales & thus helped in increasing the integrity of POS
transactions. They also help in saving time, cost and effort and at the same time helps in
maintaining accuracy with less possibility of errors.
In the context of retail industry, cloud computing is also particularly efficient in collection and
analyses of huge volumes of sales data and in real time inventory management.
In retailing, points of sales generate large amounts of data each day. The sales data can be
obtained through loyalty cards and discount coupons also. Most low and medium level retailers
do not have the necessary resources to capture or utilize such enormous amounts of data.
Cloud provider in retail can collect such data from sophisticated server networks connected to
the Supply chain to independent cash registers at family owned small stores and store it for the
retailer. Such stored data may be accessed from anywhere, provided internet is accessible. A
cloud computing provider can track performance of products in comparison to previous time
periods. The cloud provider can identify the trend and seasonality component of each product,
brand or category and identify and monitor the performance. Then it can provide analytical
results to the retailers. The provider of the service can serve many retailers at the same time,
without making each retailer do it individually for themselves.
Cloud providers can provide valuable advises to retailers regarding product availability and
back-up stock from forecasts. They can get realistic forecasts by analyzing huge amounts of
data from numerous retailers. Thus retailers can develop a supply chain where the right
product arrives at the right time.
These can be managed with Smart Operating System. SmartOps customers are proactively
managing supply chain uncertainty across all stages to improve their total chain inventory
planning, so that their customer service levels can be stabilized and even increased while
overall costs to the business are minimized.
SmartOps enterprise software solutions support many initiatives and challenges associated with
different manufacturing and distribution industries from Lean Manufacturing, Just-In-Time (JIT),
and Six Sigma initiatives, to postponement strategies, to Collaborative Planning,
Forecasting, and Replenishment (CPFR), and Sales & Operations Planning (S&OP) activities.
SmartOps inventory optimization algorithms manage uncertainties in the data and offer
visibility into the drivers of inventory at the item-location-time period level of detail.
SmartOps is able to do that because it looks at the right granularity of data to adequately
manage safety stock levels and understand where the biggest ongoing opportunities for
improvement are within their supply chains.
(Source: Debasish Rout, Arvind Kumar Jain, Quarter III 2012, ‘Asian Journal of Business and
Economics’, Volume 2, 1-18, 22nd April, 2013 )

18. You've probably already noticed loads of retailers and other services using digital signage to
attract attention, convey a promotion, or advertise a particular brand. This future POS
technology is already is being adopted by retailers of all sizes and types. Digital signage is a
great promotional tool as it allows the retailer to easily change signs to identify a current
promotion or a discount on an item that needs clearing out. The digital signage can be
programmed based on the time of the year and allows the retailer complete flexibility in what
message they would like to convey.
Digital signage is even being used at POS (where you swipe your credit card). It's also used at
the shelf edge to reach consumers as they are evaluating their product decisions. This future
POS technology can inform consumers about products and affect their shopping patterns in real
time while they are shopping in the store.
Digital signage isn't only being used to entice customers to buy while in store. This future POS
technology is even being used as a tool to help inform, communicate and train retail staff on
the latest products, upcoming promotions and some retailers are even using it to help
employees hone their selling skills.
While digital signage can be expensive, some smaller retailers are getting beyond the initial
expense by having supplier sponsored messages that ultimately drives sales for both the
supplier and retailer. With many uses and as a tool to drive sales, digital signage is an excellent
technology opportunity to explore.
Self-Checkouts are the future of POS and the idea is already used in many different retailers.
The self-scanning checkout essentially has the customer doing the work of the conventional
cashier. Customer's scan their own items, swipe their own credit cards and bag their items,
usually under the watchful eye of a store employee.
The shopper begins the checkout process by touching the computer's welcome screen or by
beginning to scan the items. Once the checkout is initiated by the shopper, the computer's
'voice' provides the shopper with detailed instructions as to how to scan their items and where
to place them once they've been scanned. Sophisticated self-checkouts do not enable people to
put additional items into the bag as the computer knows how much the bag should weigh
based on the items being scanned. If you tried to fool the systemby scanning a cheap item like
a package of gum and then try to put in a steak, the systemwould tell you to remove the item
and scan again!
If the store uses security tags, the system can also deactivate the tags during the scanning
process. Most self-scanning systems are set up to accept credit cards, debit cards and cash.
Also, Biometrics as a technology is already being used in a few select retailers for logging into
POS software and for customer's using self-checkouts. Biometrics refers to a method of
identification by measuring unique human characteristics as a way to confirm identity.

19. In retail, biometrics is used when a cashier presses his or her finger on the finger print scanner,
which automatically logs them into the POS systembased on their fingerprint. This future POS
technology reduces theft as others are not able to use a particular cash register until they've
scanned their fingerprint. Errors are also tracked to the specific cashier so that training needs
can be identified.
On the consumer end; biometrics is used in conjunction with self-checkouts. For example, a
consumer would scan their fingerprint and their purchase would then automatically be charged
to their store account or credit card on file. In fact, this method is already being employed in
the UK, where a supermarket in Oxford gives its customers the option of conveniently and
securely paying for groceries using a finger scan linked to their financial accounts.
According to Bill Laird, chief operating officer of the store using this future POS technology,
customers are embracing the new systembecause it helps them get through the checkout
faster without having to hunt for cards, checks, wallets or purses.
Another company successfully utilizing biometric technology is Florists Transworld Delivery
(FTD), which is experiencing reduced errors with a biometric time and attendance system.
Finger scan technology has eliminated the need for time clocks, employee cards or pin
numbers. The new systemhas eliminated the possibility of falsification since the employee's
fingerprint needs to be there to clock in or out and nobody else can do it for them. The
company reported that once they installed the new system, their error rates declined
substantially.
(Source: Jeff Haefner, "Top 5 Future POS Software Technologies", possoftwareguide.com, 1-1,
Available at http://www.possoftwareguide.com/articles/future-pos-software.html, 22nd April
2013)
Although, the advent of technology and various devices have played its role pretty much well,
yet the retail operations are inherently still complex due to four factors:
Product complexity: The retail sector has a high degree of product complexity, with the number
of SKUs in stores running anywhere from the tens of thousands to more than two hundred
thousand, a high degree of seasonal and fashionable items, and a lack of standardization of
product hierarchies.
Supply chain challenges: With so many different outlets and channels, multiple hand-offs, and
high frequency of replenishment, developing and managing an efficient supply chain remains
one of the primary challenges in the retail sector.

20. Scale complexity: Retail operations are executed on an extremely complex scale. The U.S. retail
sector alone deals with hundreds of millions of transactions per day, driven by millions of
customers who shop through tens of thousands of outlets.
Process complexity: The business processes that support this environment are also inherently
complex due to the multiple touch points across players in the value chain (manufacturer,
distributor, retailer, consumer), the coordination required between the different planning
cycles of each of these players, and geographic dispersion. While third-party packages do exist
for several functional areas of the retail world, most retailers find that these packages either do
not cover a broad enough functional footprint and/or they require a fair amount of
customization, as the ‘out of the box’ functionality seldom meets the retailer’s holistic needs.
Besides, the retail-IT landscape is very complex at the moment and faced with challenges along
four key dimensions:
IT cost and performance under pressure owing to the high growth in annual IT spend in the
retail sector (~13%) while revenues have grown much slower (~2%)., lack of standards in a
complex, highly customized IT environment leads to integration challenges, and making
changes and new functionality development cumbersome and expensive, high maintenance
costs stemming from the high degree of customization and fragmentation of point solutions,
many of which span different technology platforms and poor data integrity, the result of
systems fragmentation, point solutions, high degree of customization and lack of an underlying
best practice architecture, because there is no good practice standard, out-of-the-box solution
that spans the full retail space.
Studies suggest that there are two critical areas where IT can reduce complexity and improve
results. These are the functional retail areas, where merchandizing systems impact top-line
revenues and need to be configured, customized and managed effectively for the retailer to
improve its top line. To achieve this, retailers need to effectively mine large amounts of data
and leverage this data to carry out effective forecasting, assortment planning, and collaboration
with its suppliers so that promotions and other merchandizing activities are effective and
efficient.
Supply chain systems are key from a bottom line point of view as they play a key role in getting
the right product to the right place at the right time—which in turn impacts the inventory levels
and the rate of flow of products through the retailer's stores, both of which are significant
components of the retailer's cost of doing business.
Data cleansing and architecture improvement is another area that vaunts of increasing
efficiency. Data cleansing, and thereafter, effective mining (via large data warehouses) is
fundamentally important in the retail space because so much decision-making is based on data.
If the data is bad, the effectiveness and efficiency of carrying out retail operations is hampered.

21. This becomes particularly crucial when the retailer is implementing new systems and a large
data conversion effort is required—it becomes essential that the old data be effectively
cleaned, re-architect and made ready in the new system, so that the business functions can
make decisions effectively. In challenges, place ever-greater demands on retailers. It systems
are at the complexity of products, scale and processes, along with supply chain heart of retail
operations and hence play a central role in alleviating pressure points in the retail sector.
(Source: Debasish Rout, Arvind Kumar Jain, Quarter III 2012, ‘Asian Journal of Business and
Economics’, Volume 2, 1-18, 22nd April, 2013 )
There is no doubt that Mobile POS technology faces a lot of issues, but that does not mean they
cannot be resolved. If we do know the main reasons, we may come up with a valid reaction. To
begin with, system elements like hardware, software feature set and integration into a back-
end system at times play a spoilt sport.
In recent months, the market has seen the introduction of many payment-taking systems.
At first glance, these cool hardware tools seem to be just what the market has been waiting for.
And while they do make payment-taking possible where before it had not been – for example,
the kid who cuts your lawn can now be paid by credit card – they are not viable for the majority
of retailers because they do not offer any kind of bar code scanning or tie into business
workflows.
To be effective, a mobile application must tie into your back-end system for non-sales
processes. Without tying into inventory management, reporting, costing and purchasing, and
without integration with accounting and marketing, these tools introduce more problems
rather than streamlining processes.
What hardware is associated with the solution? Some offer a free or low-cost option, but
functionality is often limited. Other options often require so much expensive hardware that
they are out of reach for regular retailers and solely in the domain of big box stores.
Until very recently, those looking to deploy mobile POS were usually looking at expensive and
high-end custom software. These systems typically included barcode and payment processing
but, in the main, did not tie into retail packages. This required retailers to pay for custom
development, often with a price tag in the hundreds of thousands of dollars.
To build one’s own systemrelied on additional custom development to update the system as
the ecosystem and technology changes. Again, this can be very expensive.
Small retail stores might think they can get away with just payment processing, but that is a
risky move.
Be sceptical of a free or extremely low-cost solution that purports to meet all of your needs.

22. Either you have not done enough research to have an accurate view of your needs, or you will
have some neat hardware on your hands that does not do everything you thought it would and
need it to.
It is imperative that whatever system you deploy includes a level of encryption that meets
internal standards. Mobile POS systems have been criticized in the past for introducing security
threats to the equation when sensitive data is manipulated and stored on the mobile device.
Credit-card processing should not be done on the mobile unit, nor should it store data.
Rather, sensitive data should be processed live on the server over a recognized security
protocol such as SSL.
The true success of the system will be measured by how effectively it is used on the shop floor.
As a result, it must be easy to train your people on the system. It must also, for the same
reason, offer a quick transaction speed. What use is eliminating checkout bottle necks if you are
just creating them elsewhere in your store?
With some handheld units, software systems cannot be updated, meaning that six months from
now, you have got some expensive paperweights on your hands because the software has
failed to keep pace with the ever-changing requirements of the retail sector. Make sure you are
purchasing a system that can be updated. Read the fine print – you may get firmware updates,
but no software updates. This will not be tenable over the long term.
Future-proof your systemright from the start. With an application approach, vendors can
provide limitless updates as free downloads.
As with any technology purchase, it is wise to invest in a solution from a vendor with a strong
support offering. That way, if you need help, you can get it easily.
(Source: Dax Dasilva , November 9, 2010, ‘5 considerations for retailers to deploy mobile POS
systems’, Mobilemarketer.com, Available at
http://www.mobilemarketer.com/cms/opinion/columns/8054.html, 1-1, 22nd April 2013)
Point of sale has therefore undergone an evolution that mirrors the progression of many other
types of technology toward simpler, more seamless, and more mobile solutions. The first
instance of POS can be traced back to mechanical cash registers in the late 19th century, which
would vary in levels of sophistication over the years.
For instance, the initial purpose of the cash register was to prevent employee theft or
embezzlement by requiring the employee to process sales through the register, which would
then ring a bell (hence, the term “ringing up a sale”) as the cash drawer slid open to allow for
sorting money and making change. Obviously, these machines were very crude in comparison
to today’s POS systems, but they helped to pave the way for more advanced devices, as

23. merchants realized the potential applications for point of sale technology in automating certain
tasks and keeping more accurate track of sales.
The next move forward in POS technology came with the transition from mechanical or analog
cash registers to digital cash registers. These machines are still used in a number of businesses
throughout the world, and the only advantage they hold over their mechanical ancestors is the
ability to program keys for certain tasks and make more advanced calculations, often with less
input from the user.
Businesses might choose to program certain keys for each of their products and services, which
would allow the user to add the product or service’s price to the customer’s tab with a single
keystroke. Additionally, digital cash registers will typically calculate taxes and other fees based
on a programmed amount. Although some mechanical cash registers had receipt printing
capabilities, digital cash registers made receipts a standard to increase employee accountability
and reduce instances of fraud.
In the mid-1980s, POS technology experienced its biggest change to date with the advent of
IBM Retail Store Solutions. For nearly 100 years, POS had been running via mechanical and
digital cash registers, but IBM set out to revolutionize this technology with the recent invention
and availability of personal computers. IBM Retail Store Solutions includes a number of retail
POS hardware and software products that have been in use now for over 30 years.
These products have allowed large retailers to track sales operations like never before with
extensive inventory management and reporting. They also set the foundation for the era of the
credit card by giving merchants integrated card swiping capabilities, which would inevitably
increase consumer traffic and transactions, by increasing the efficiency and ease of POS
operations. Yet, like all technology, things are always moving towards change.
No doubt, technology has advanced more in the past thirty years than in the previous two
thousand. Since IBM’s unveiling of its Retail Store Solutions, technology in general has
advanced light years. Perhaps the most obvious move forward has been in the move from
desktop computing to mobile computing in the form of smartphones and tablets.
Apple has been a pioneer in this realm, and toward the end of the first decade of the 21st
century, a new crop of POS platforms emerged that have completely changed the landscape of
the industry. Although the fundamentals of the technology behind these new mobile POS
solutions has not changed all that much from the technology introduced by IBM, they have
revolutionized the concept of POS by giving smaller merchants access to the same basic
technological capabilities of enterprise level POS systems.
Point of Sale in the Mobile Era came with the leaders coming in and, what is known as “micro
merchant processing”, was taken up by Square, Intuit GoPayment, Paypal, and Verifone, aiming
to empower smaller merchants with the ability to accept credit cards in a mobile environment
without going through all the trouble of applying for a traditional merchant processing account.

24. Merchants can now typically sign up for these services online with minimal personal
information (usually a name, address, and last 4 digits of a social security number will suffice).
Once merchants are signed up for the service, they can start taking credit cards as payment
directly through a simple card swiper that plugs into most modern smartphone devices.
Effectively taking the place of traditional credit card terminals that integrated with older
systems like IBM’s POS software, smartphones equipped with card swipers are now providing
micro merchants with a basic POS systemwithout the hefty price tag of traditional POS
software.
Alongside the developers of micro merchant processing apps, others saw opportunity in the
gap between these minimal smartphone terminal devices and the desktop based systems that
many retailers are still using today. Leveraging advances in cloud technology, companies like
Vend and Shopkeep began developing web and tablet based systems with increased
functionality over micro merchant processing systems.
These apps offer small retailers a cross platform, easy-to-use solution that is also capable of
mobile transactions. Hosting all POS data in the cloud allows business owners the flexibility to
manage their business from a remote location and eliminates dependency on a specific piece of
hardware. What this means is that merchants can now supply their own POS hardware
(typically an iPad, Mac, or PC) without having to worry about their data being tied to that
specific device. Cloud technology has freed merchants from fear of hardware failure and loss of
data, since cloud storage is incredibly more reliable and stable than local hard disk storage.
Although micro merchant processing systems and cloud based solutions have provided small
merchants with revolutionary POS alternatives, medium, large, and enterprise scale businesses
are still stuck in the past with technology that has changed very little over the past 30 years.
Hence, these retailers are prime for change, and the change will be big and different than
anything the industry has seen before.
Aside from the necessary advances in hard technology, the real change for retailers will come in
the form of an entirely new consumer experience. Envision a complete online to in-store
experience that will utilize 100% mobile and cloud based systems, including integrated mobile
payment, security, back office management, mobile front end operation, automatic purchase
orders, seamless promotions, augmented reality experiences, customer preferences, and much
more.
(Source: Subodh Gupta, ‘Future of Point of Sale’, iconnectpos.com, 1-1, Available at
http://www.iconnectpos.com/future-of-point-of-sale.aspx, 22nd April 2013)
The online and offline shopping worlds are converging, and thanks to a handful of digital
solutions, retailers are using them to enhance offline shopping practices more than ever.Out of
these, Gucci is one such retailer who has taken rather seriously to the experience.

25. Gucci recently unveiled a Mobile Point of Sale program that later launched this year at select
boutiques in the U.S., Europe and Asia to better the retail experience for consumers — and it’s
also the company’s first step toward eliminating cash register transactions.
With this technology, created by Micros Retail, sales associates will be given Apple iPhones to
process mobile sales and wirelessly e-mail receipts to customers, which in addition to building a
relationship between associate and customer expedites sales. Devices will also be equipped
with the brand’s Gucci Style app (with customers encouraged to visit the company’s digital
flagship at gucci.com), as well as other tools to enhance the in-store shopping experience such
as Google translator, maps and a currency converter.
The program has already been in pilot mode at the Gucci flagship on Fifth Avenue in New York
City, in Paramus, N.J., and Orlando, Fla. It was later previewed by more than 400 global store
managers at the brand’s worldwide managers meeting in Rome last year. The solution is now
being installed at 15 stores in the U.S. and 30 throughout Asia and Europe, with additional
locations in the coming years.
The company’s initiative involves a wider adoption and further development of this solution —
hoping in the near future to replace regular cash registers with mobile sales entirely.
According to Kent Deverall, chief executive of Fluid Inc., an agency that does e-commerce work
with The North Face and Bare Escentuals, smaller innovations that will all serve to enhance the
brick and mortar shopping experience are popping up. He cited tools such as mobile-based apps
as one of the driving forces that will bring social media to the physical retail environment.
Source: Rachel Strugatz, April 10, 2012 Digital Tools Boost In-Store Service, wwd.com, 1-1,
Available at http://www.wwd.com/retail-news/direct-internet-catalogue/digital-tools-boost-in-
store-service-5851294?full=true, 22nd April 2013)
Now, Nordstrom, the Seattle-based fashion and beauty retailer offering apparel, shoes, makeup
and other beauty products, is also rolling out mobile point-of-sale (POS) devices throughout
their full-line stores, as well as in some of their Nordstrom Rack stores.
These mobile POS devices, which is a modified iPod Touch with a merchandise scanner and
credit card slider, allow employees to check out customers from anywhere in the store. The app
on the device also provides Nordstrom’s sales staff access to the company’s entire inventory,
which is useful when helping customers check if an alternative size or color is available
elsewhere, without needing a register to look up that information.
Nordstrom has deployed over 6,000 of these devices throughout their 117 full-line stores, and
at some Nordstrom locations, there are more mobile POS devices than regular registers.

26. With WiFi, Nordstrom laid a foundation for these new mobile POS devices, which Nordstrom
finished initially rolling out in mid-2011 and are primarily being used in B.P. (the trendy young
women’s section) and shoes, which is a conglomerate of smaller departments catering towards
specific demographics.
Other departments using these devices include men’s. At the flagship Nordstrom store in
downtown Seattle, most sales associates in these departments can be found armed with a
mobile point-of-sale device and using them to checkout customers paying with plastic. When a
Nordstrom customer checks out with a mobile POS, they can sign for their purchase and enter
an email address for a paperless receipt. For most Nordstrom customers, checking out with a
mobile POS is an incredibly intuitive and almost shockingly simple experience.
(Source: Kelly clay, 6TH June 2012, ‘Nordstrom Sees Sales Boost From Mobile POS Devices’,
Forbes.com, 1-1, Available at http://www.forbes.com/sites/kellyclay/2012/04/06/nordstrom-
sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices/ , 22nd April
2013)
Besides the two above talked about brands, Wal-Mart has too been dipping its feet in Mobile
POS Technology. Wal-Mart is pursuing item-level tagging for certain lines of men’s jeans and
underwear.
Industry experts predict that Wal-Mart will consume 30 million tags over the next 12 months
just on those lines. If the launch is expanded, and it likely will when Wal-Mart sees the proper
business value, the retailer’s use of RFID could explode and catapult item-level tagging to global
acceptance. Down the road, it’s entirely possible that Wal-Mart could use hundreds of millions
of tags while not even approaching a full apparel rollout.
Item-level tagging for apparel has been a sweet spot for the retail industry for years, although
projects have been limited in scope, with many small pilots. There have been some exceptions,
such as American Apparel’s well-documented item-level program, some very successful
footwear programs in Europe, and, more recently, the Gerry Weber chain. The company will be
the first German retail company to roll out RFID technology combining inventory management
and loss prevention.
Gerry Weber will rely on an Avery Dennison supplied RFID solution in more than 25 million
garments a year through an RFID chip imbedded in a care label. This solution will optimize
Gerry Weber logistics and retail processes, reduce theft and ensure stores are well stocked with
popular items.
American Apparel operates about 300 stores. That’s a significant rollout, but considering that
Wal-Mart operates well over 300 retail outlets in Texas alone, it’s understandable how this
deployment could scale significantly.

27. The ramifications of Wal-Mart pushing item level tagging go well beyond the apparel sector and
retailing. For starters, Wal-Mart has great clout with its suppliers, and this initiative will cause
tagging to be pushed down the value chain quickly, resulting in more tagging at the source of
manufacture. Additionally, the move will force competitors like Target to enter the game
quickly. Target has remained very quiet about RFID, but it’s believed the company has learned
from others and could be ready to dive into the technology soon.
Such a big push by the retail sector could drive prices down further, opening up other
opportunities in other industries. The pharmaceutical sector, which has seen stop-and-go item-
level tagging, could expand tagging initiatives if pricing drops further.
(Source: John, 26th July, 2010, Wal-Mart’s RFID Apparel Deployment Could Push Global
Acceptance for Item-Level Tagging, RFID24-7.com, 1-1, Available at http://www.rfid24-
7.com/article/wal-marts-rfid-apparel-deployment-could-push-global-acceptance-for-item-level-
tagging/, 22nd April 2013)
By applying today’s technologies in new ways, store associates have all the tools they need to
best serve your customers, right on the spot. With mobile computers in hand, sales associates
can: receive notification when customers in the loyalty program enter the store, enabling a
personal greeting; check the store and all other locations for a specific product; call for an item
in the back room to be delivered to the front; check price; complete a sale and more.
The pervasive use of cell phones provides retailers with many new possible customer touch
points. For example, a local coffee shop can enable customers to place orders on a web site via
cell phones, while a department store might leverage cell phone text messaging capabilities to
notify customers when a special order has been received, or provide frequent buyers with
advance notification of an upcoming sale.
An integrated voice and data computer allows store associates to perform whatever tasks are
needed — without ever leaving the customer’s side. If a customer wants to see an item in a
different size or color, associates can easily check inventory and find the exact location of the
item — all in real-time.
Personal shopping systems also saves in a lot of time in real life situations which offers grocers
to enable customers to scan and bag purchases as they shop, enabling instant checkout. In
addition, the same device can be utilized for 1-to-1 marketing to customers. Grocers can
present coupons, frequent shopper discounts and recipes based on items scanned, providing
value for customers and store alike — customers enjoy savings and convenience, while the
store enjoys increased basket size.
Retailers can too leverage the set-top to create point-of-purchase opportunities within
television programming. For example, a bookstore can enable viewers watching an interview of
an author promoting a new book on a talk show to purchase the book with the press of a
button on the remote control.

28. With Mobile POS Technology and hi-tech solutions, you can surely move the customer shopping
experience into a new realm, bringing real-time transaction capability to wherever your
customers may be located. Whether your customers are at home while watching television, on
the train to work or browsing at the local mall, retail customers will have the ability to make
purchasing decisions at the click of a button — a button that can be located on a desktop or
mobile phone, an interactive kiosk, a mobile POS terminal, or even the television remote
control.
By providing new ways for your customers to interact with your store, you can maximize sales
opportunities as well as deliver service with a difference — service your customers will
remember, service that will earn you one of the most valuable marketing vehicles available —
the power of ‘word of mouth’.
(Source: Motorola, January 2008, ‘WHITE PAPER: The next revolution in retail technology’, 1-
16), Available at
http://www.motorola.com/web/Business/Solutions/_ChannelDetails/_Documents/static%20fil
es/FutureRetail_WP_0108%282%29.pdf, 22nd April, 2013)