Windows POS: Why You Can't Ignore It

Like it or not, Microsoft is leading retailers to Windows-based POS software, say two software developers. According to Orton Wisegarver, president of Lotus Pacific Software, DOS-based software is no longer viable. His company, based in Burlingame, CA, has developed insurance claims processing software for the past 10 years, and more recently, point of sale (POS) software. The company has 20 employees. Companies with DOS-based POS software are migrating - or should be migrating - to Windows software, says Mark Murphy, president of Virtual Systems (Farmington Hills, MI). Virtual System, with 65 employees, has been developing POS software since 1991. According to Murphy, one reason Windows is gaining popularity in retail is its graphical user interface (GUI). It helps retailers reduce employee training time. In an industry known for turnover, this is a plus. Rather than learn several keystrokes, employees can click and point using a mouse or select buttons on a touch-screen monitor.

Retailers Tighten Inventory
The nature of retailing is changing, says Wisegarver. Because it is newer, Windows software is being developed to take advantage of these changes. "For example, the successful retailer has no back room full of inventory," says Wisegarver. Instead, retailers are finally adopting just-in-time (JIT) delivery. To manage this effectively, POS software has to offer tighter inventory controls. Many new Windows POS software packages eliminate items from inventory as they are purchased. When inventory dips below a pre-determined amount, the software automatically re-orders or signals for a re-order. "It should be a seamless process," he says.

Capturing Customer Information
Customer loyalty programs are also increasing in popularity. "Retailers want to capture every piece of customer information they can," says Murphy. In order to make the collected data meaningful, there is an increasing need for data warehousing programs. "Retailers are no longer taking a shotgun approach to marketing," explains Murphy. Instead, retailers want to market to their known customers using targeted mailings and coupons. Retailers also want to reward the customers who shop frequently or spend a certain amount of money. "Data warehousing was previously only available in bigger, more expensive software packages. Now, its at an affordable level for smaller retailers as a feature of Windows POS software," he says.

Advice To VARs On Windows POS
How can VARs better sell Windows-based POS software? Both Murphy and Wisegarver offer advice:

• Invest in training - Murphy and Wisegarver agree that VARs who invest in training and certification programs will stay ahead of the competition. Microsoft, for example, offers a variety of training tools, including CD-ROMs, classes, and white papers. Many software vendors also offer training sessions on their products as well.
• Sell pre-packaged products - VARs without network training can partner with other VARs or distributors to sell pre-configured software bundled with the operating system. Pre-configured software may also be ideal for smaller retail applications, where networking isn't required. The advantage, says Murphy, is that the package can be delivered directly to the end user. The VAR will need to lay in its customer's database.
• Offer Year 2000-compliance testing - As an added service, VARs can test their customers' POS hardware and software for Year 2000-compliance using off-the-shelf software. This offers VARs the opportunity to sell new hardware and software to their customers who are not Year 2000-compliant.