Wireless: A Technology Whose Time Has Come In The POS Industry

Our home food dispenser broke last night and I had to go to the grocery store and wait 20 seconds at the check out counter - such inefficiency." Sound vaguely familiar? One might think they overheard something similar being said by a woman to her friend at the gym last week. However, it's actually a quote by Judy Jetson, wife and mother on the cartoon The Jetsons. The show is described as a sort of futuristic Flintstones, depicting life in the 21st century where everything is made simple by the push of a button. Now, in the infancy of the new millennium, one wonders - just how close are we to living life like the Jetsons?

Technology analysts predict by 2003 there will be an estimated 70 to 100 million digital wireless devices in the hands of consumers. These devices will have capabilities that reach beyond voice communication. The devices will be used for tasks previously accomplished only on wired computers. According to InformationWeek (www.informationweek.com), things like credit and debit card and vending machine transactions will only take about three to five seconds to complete with the integrated technology. Typically the transactions would take 15 to 20 seconds with dial-up telephone lines (InformationWeek, July 1999).

Clearly, consumers want to benefit from the convenience that wireless devices offer. "Consumer demand is certainly a driving force in the push for wireless POS (point of sale)," said Julie Stuthridge, VP of marketing at MIST. "Consumers enjoy the convenience of using wireless devices at vending machines and ATMs. They want the same convenience in other aspects of their lives."

All of the industry experts I spoke with agreed that wireless is the next frontier for the POS industry. According to Jud Gudgel, director of TouchStar Technologies Wireless Group, "If POS VARs don't have wireless solutions ready for their customers, they need to start developing them."

Market Benefits Of Wireless
There are typically two ways in which wireless POS systems can replace wired systems. In the first case scenario, the traditional POS register is supplemented with an attachment. The attachment includes a radio, which substitutes for the network cord. The terminal communicates with access points on the ceiling via the radio. With the second scenario, a wireless card is placed inside the register. The card contains the radio and communicates to the access points.

Wireless devices can be used for a wide range of applications in the POS industry. In the retail marketplace, wireless terminals can be set up as another POS station and used during promotional sales and the busy holiday season. Wireless devices can be used in lawn and garden centers and home improvement supercenters. "The retailer can go to the customer to check them out. Customers won't have to lug their big items up to counter first and then over to their cars," said Gudgel.

Retail stores can also open up satellite locations with a battery powered wireless POS device. For example, a car parts store could set up at the local car show. In addition, retailers can open up mall kiosks without the expense of installing new phone lines.

According to a report published by KPMG Consulting Inc., the hotel industry is considering many consumer-oriented solutions. Some of the wireless innovations being considered in the hotel market include:

• hotel reservations through handheld wireless device
• wireless remote hotel check-in and checkout
• wireless e-payment and settlement
• wireless access to e-concierge services through hotel portal
• wireless connectivity to hotel LAN.

Additionally, hotels are investigating the use of wireless devices to improve their operational performance. "We're working with a hotel chain that is using wireless devices in the grading of its housekeeping staff," said W.J. Kitchen, chairman and CEO of Ameranth Technology Systems.

In casual dining restaurants, handheld terminals can be used by waiters to take customer orders. The restaurant's main computer processes the orders and prints order tickets at the kitchen or the bar as appropriate, allowing instant preparation of orders. Once the orders are completed in the kitchen, a runner delivers them to the customers. Waiters can place multiple orders without ever walking into the kitchen or bar to check previously placed orders or to pick up prepared orders. The waiters in the dining area of the restaurant never leave the sight of their customers. "Wireless handheld devices enable the wait staff to spend more time with customers. They also help improve efficiency resulting in an increase in tableturns," said Kitchen.

Some restaurant management systems have the ability to complete a credit card transaction tableside. Customer credit cards are swiped through the handheld unit and processed. Customers can feel confident that their credit cards are safe, as they never have them out of their sight.

And just what I need...wireless terminals at McDonald's that accept debit cards. MIST is now conducting a pilot of its Freedom II wireless POS terminal with McDonald's. The pilot is being conducted in an Ontario, Canada, franchise. Customers can use the portable device at both the drive-through window and at the restaurant's counter. "Customers who would have previously driven by the restaurant because they didn't have enough cash can now complete their wireless debit card transaction in the time it takes for the order to be assembled," said Stuthridge.

In retail stores, restaurants, and hotels, wireless devices can be used for line busting. The term refers to the use of mobile payment terminals for gathering information and tallying of purchases before customers reach the checkout. Customers are handed a temporary receipt while still in line. Upon reaching the checkout counter, their purchases are quickly processed.

Implementation Should Be Multifunctional
"I believe wireless POS will go hand-and-hand with multichannel selling," said Terry Kasen, Kyrus director of sales, western region. "You'll see more wireless devices and applications as retailers and the service industry enable their customers to complete transactions anywhere, anytime. The POS industry needs to look beyond just putting a wireless card into registers. Wireless infrastructures need to be established for multichannel selling, whether it takes place in a store, at a kiosk, on the Web, or via a cell phone," said Kasen. Gudgel agrees, "When a customer decides to make a purchasing decision, you want to give them the opportunity to do business with you, easily and with no hassles. Your wireless architecture and strategies have to be in place to take advantage of consumers' buying decisions."

When considering wireless infrastructure and strategies, end users should invest in multi-purpose devices and applications. "In order to get a good ROI, wireless devices should include a suite of functions. That way they can be used throughout the day depending on the end user's needs," said Kasen. "When needed, the wireless device acts as a POS terminal. When it's not being used for POS functions, it can be used for inventory purposes or to display product information," added Gudgel.

As the cost of wireless coverage decreases and the speed of data transfer increases, it seems as though the time is right for the technology to become standard in the POS industry. One industry analyst predicts that by the end of 2001, the sale of wireless POS terminals could reach 100,000 units. Will you be one of the VARs implementing these terminals into your POS solutions? If you're not, you may find others comparing you to The Flintstones instead of The Jetsons.