Upgrading Legacy Point-of-Sale Systems

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Upgrading Legacy Point-of-Sale Systems:
The compelling business case for next-generation POS
An Epicor|CRS White Paper

A store’s point-of-sale system is a company’s gateway to valuable information. When a store POS system isn’t able to share valuable information about customers, sales, and operations with other parts of the organization, it can impact the bottom line.

Table of Contents
Why upgrade your POS? The risks of legacy POS systems Lack of integration with other key operational areas Difficult or impossible to integrate POS hardware with other store systems Limitations of DOS Possible exposure to fines How the right POS system can enhance ROI Key benefits from upgrading POS Improved customer service More efficient operations Cost savings Advantages for multi-channel retailers Planning POS with the future in mind About Epicor|CRS 2 2 3 3 3 4 4 5 5 6 6 7 7 8


Why upgrade your POS?
According to Forrester Research, half of European and North American retailers plan to migrate to a new point-of-sale (POS) solution by 20081. This echoes results from AMR Research, which reports that “retail clients are actively investigating new POS hardware and software technologies”2. There are a number of compelling reasons to do just that, most of which center on the advantages that come from improved connectivity between POS and the rest of the enterprise. For example, integrating point-of-sale applications with supply chain and customer loyalty data can enable a store to reduce stockouts and improve customer service.

The risks of legacy POS systems
By some estimates, more than 25 percent of the point-of-sale systems in use in U.S. stores run on DOS or proprietary platforms that seriously limit a retailer’s growth3. The problem: these types of legacy POS systems create islands of information— information that should be shared with other parts of the organization in real-time in order to serve customers and manage stores and operations cost effectively. They also prevent a retailer from adding new capabilities that can boost its bottom line. Retailers using legacy POS systems face four key limitations: Lack of integration with other key operational areas, including inventory, merchandising, loss prevention, customer relationship management (CRM), and returns management Difficult or impossible to integrate POS hardware with other store systems, such as back office servers Limitations of DOS and DOS users Possible exposure to fines for non-compliance with CISP encryption requirements

POS Client Operating System DOS IBM 4690 Windows 9.x/ME/CE Windows NT/2000 XP Pro Windows XP Embedded or WEPOS Linux Other

Installed Today 15% 12% 14% 35% 6% 7% 11%

Considering For Next Purchase* 0% 13% 11% 46% 48% 40% 2%

*Does not equal 100%. Respondents could choose more than one operating system. Source: RIS Store Systems Study 2005


Source: Forrester Research, Inc., “The Next Point-Of-Sale Solution: From Store Solution to Enterprise App” George Lawrie, Kim LeQuoc (May 3, 2005) 2 Source: AMR Research, “Ensuring Your Upcoming Enterprise POS Deployment Project is a Success,” Scott Langdoc (August 25, 2005) 3 Source: RIS News, “RIS Store System Study 2005”


Lack of integration with other key operational areas
The biggest breakthrough capability for today’s specialty retailers is real-time exchange of information between stores and the corporate office, also referred to as interoperability. By exchanging valuable information with corporate systems, retailers can dramatically improve operations by putting the right information in the right hands at the right time—from inventory, loss prevention, customer relationship information, and more. For example, using a connected point-of-sale terminal, a sales associate can easily locate an out-of-stock item, potentially saving a sale. Legacy systems prevent retailers from achieving this level of information exchange because their technological limitations...
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