Development of New Point of Sale Software: Fiber Tech Computer and Web Solutions LLC (Research Paper Sample)

WHITE PAPER ON DEVELOPMENT OF NEW POINT OF SALE SOFTWARE
Chaudhary, Amer,
Fiber Tech Computer and Web Solutions LLC
Historical Background
Before the invention of Information Technology, business transactions were largely dependent on paperwork. This involved writing out invoices and issuing receipts for sales manually. In fact, this practice is still popularly used by small-scale businesses, especially in the third world where modern technology is not yet fully embraced. In the developed economies, however, new inventions in Information Technology have transformed the way businesses are run and managed. A few decades ago, computer technology had little application in business beyond the storage and retrieval of data, and simple processing of sales transactions. This limitation is attributed to the low communication capability of the existing computer and information technology. One notable invention was IBM’s electronic cash registers that were run by IMB 3650/3660 store systems capable of controlling up to 128 IBM 3653/3663 check out (point of sale) registers. With the advent of Internet technology, its usage expanded to include email messaging, e-commerce, and other applications that allowed business people to communicate more easily, cheaply, and efficiently.
In the last decade of the 20th century, in 1992, the business world witnessed another important revolution in the way business transactions were conducted. Martin Godwin and Bob Henry invented the first point of sale software, which they named IT Retail. The software made financial transactions at the point of sale (or checkout- the place where retail transactions are completed) faster, efficient, and reliable. However, Godwin and Henry’s invention was limited in its application because it can only run on the Microsoft Windows. Recent POS software inventions have focused on developing applications that are compatible with a wide range of platforms such as Windows, Linux, and Mac. The functionality and flexibility of today’s POS systems are supported by the availability of local data storage, processing power, networking, and graphical user interfaces. They are designed to lessen the work of business owners and managers by providing automated means for tracking sales, controlling inventory, streamlining the accounting process and managing customers. At the same time, easy availability of components that can be purchased off-the shelf has made the cost of modern POS systems to go down considerably. Consequently, the competition in the POS systems market is not as vicious in the pricing front as it is performance-wise, in terms of operating speed, ease of use, reliability, remote supportability, and rich functionality (supporting many functions).
Current and Future Trends in POS System Design
The revolution of POS software technology, however, did not stop with the achievement of high operating speeds, reliability, ease of use, remote supportability and rich functionality; future-thinking inventors are focused on developing standardized POS systems that can not only run on different operating systems, but are also compatible with hand-held devices such as tabs and mobile phones. According to a national survey (U.S.) report released by the market research company Retail Information Systems, 28 percent of retailers were already experimenting with tablets in their retail stores in 2011, while 31 percent were planning to try tablet-compatible POS systems in 2012.
A study by the IHL group published in Business Wire, mobile-based POS systems are set to grow by 95% in 2014. This projection reflects the increasing use of tablets and smartphones for personal and business purposes. Mobile and web-based based POS systems allow owners to manage many aspects of their business from one point.


Figure 1: The structure of a tablet/mobile compatible and web-based POS system.
This trend indicates that current and future innovations in POS systems are widening the scope of efficiency and reliability to include portability and convenience. Faced with busy schedules and a myriad of responsibilities, retailers and business managers are finding it more convenient using POS systems that allow them to monitor and manage business sales from anywhere, without necessarily being within the business premises. In addition, the integration of Internet technology and cloud computing into the functionality of POS systems means that local data storage is no longer a preferred option compared to the security-guaranteed cloud-based storage. In this regard, future POS systems will be designed to meet user needs in terms of efficiency, compatibility with different operating systems, convenience, and security.
The Gap in Currently Available POS Systems
Presently, a number of POS systems have been developed which, in addition to being cost effective, are designed to meet one or more of the identified key areas for improvement (efficiency, security, multiple compatibility, and convenience), but certainly not all of them at once. Some of the highly rated and popular POS systems in the North American market (U.S. and Canada) include Harbortouch, AccuPOS, POS Guys, ShopKeep, Intuit, and Imonggo.
AccuPOS is arguably the most preferred POS software in the U.S. and Canada. One feature that makes AccuPOS attractive in this market is that it is the only system presently with line-item accounting integration with Sage products and QuickBooks. This technology allows users to apply payments directly to a specific line item.
However, the major problem with AccuPOS is that it offers bundled packages with different efficiency levels. As a result, users incur additional costs to upgrade- such as when there is need to handle more work volume or perform more complex functions, such as accounting. In addition, users are charged per terminal used for both the software and support plan. Even the accounting integration and hardware are purchased separately from the software. This bundled packaging, therefore, is one of the negative aspects that Fiber Tech’s POS Pro software will be designed to address. Entrepreneurs prefer business solutions that are not only reliable to meet their needs, but equally important, cost-efficient alternatives that can allow them to keep expenses low. AccuPOS’s all-in-one Elite Grocery Super Station package that includes a touchscreen/CPU/Card reader costs $4345, which may be too costly for small business starters. Our intended POS system will meet these needs by providing a low-cost all-in-one touchscreen POS system. In addition, we’ll design customized systems to meet the needs of users of small and large businesses. Our research and development strategy will be aimed at improving the existing software by releasing newer editions and providing updates to older versions. In this way, users can improve the efficiency of their systems and access more features by downloading and installing updates instead of doing a complete system overhaul. Most of the major players provide software updates at a fee, and we’ll capitalize on consumers’ cost concerns by including free updates in the service contract. As developers of the software, we’ll also appeal to a larger client base than reseller-marketed POS systems. This is because compared to resellers, a product’s designer and manufacturer is better qualified to offer after-sales services, such as addressing software bugs and troubleshooting functionality or performance problems experienced by users.
The biggest market gap that our product will exploit is the limited multi-device compatibility and Web-based functionality of most of the existing POS systems. Popular POS systems like Intuit QuickBooks POS (Windows only) and AccuPOS (only works on PCs and Windows-supported Android tablets) gives users limited options in installing peripheral devices. In addition, POS software designed for specific operating systems do not give users enough flexibility to integrate their systems with devices by different manufacturers. For instance, AccuPOS and Intuit Quickbooks POS software cannot run on Apple products such as iPads, iPhones or Macs. ShopKeep, another big industry player, can only run on iOS 7 iPad and up, or the iPad mini. Although Imonggo is one of the cheapest POS systems, it does not offer efficient employee and inventory tracking. AmberPOS, which is also popular in the U.S. and Canada, is Windows-based, locally-installed system that runs on Windows 7 or 8. These statistics shows that although the POS software market is crowded, there are opportunities for new entrants who can successfully address the limitations of the existing products. This will include developing a product that meets users’ needs from different fronts; security (cloud-based), convenience (mobile phone and tablet compatibility), as well as compatibility with different operating systems.
Upgrade Requirements for Existing POS Systems
According to Retail Information Systems, an online site that tracks industry innovations in technology, less than 40% of the existing POS systems are up-to-date. Majority of them require significant upgrades to meet the challenges of today’s business environment in terms of compatibility with different operating systems, supporting handheld devices and integrating cloud-based technology. In addition, only 7% of the existing mobile POS systems are up-to-date.


Figure 2: POS Technology Upgrade Plan (source: Retail Information Systems)
This situation provides a good opportunity for new market entrants whose products are already mobile-compatible, supports different operating systems, and are web-based (can be accessed through the internet). The product that Fiber Tech will develop shall meet all these needs; the use of Java programing will make it compatible with different operating systems, ...