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Retailing sets the pace in IT investment |
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Written by Digantam Gurung
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Friday, 02 May 2008 |
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Multimedia tools, mobile solutions for inventory, better customer service, and optimization of the logistic chain drive development
28 April 2008, Frankfurt am Main/Balingen - The Branch IT-Index published regularly by the IDC market research firm < http://www.idc.com/ > predicts retailing will increase its investment in IT applications faster than other business areas. Currently, with an index value of 68 for 2007, it occupies third place among German business branches. Retailing spent 3.3 billion euros on IT in 2006, and IDC expects this to increase on average by 6.1 percent annually until 2011. Investment will be focused on mobile solutions, e.g. for inventory, customer service and goods receiving. Moreover, special software will be acquired for process optimization, chiefly merchandise management and branch-specific planning and control solutions. Modern retailing could not survive without its IT-systems for process-optimization, point-of-sale, and multimedia marketing tools "Modern IT systems increasingly support retailing with process optimization, expansion, and customer retention" explains Peter Laudien-Weidenfeller, Head of Retail Systems at technology firm Bizerba <http://www.bizerba.de/>. He cites cash systems as an example: "Until now cash systems with integrated scales have usually had two displays, one for the clerk and one for the customer, who needs some way to monitor the base and sales price. Connection to the cash register is realized through interface parameters that can be programmed in the scale. The base price – with or without actual value – is transmitted from the cash register to the display." With the single-display software solution, currently used at discounters in Austria, Switzerland, and Slovenia, retailers not only save hardware costs, but also space at the point of sale." says Mr Laudien-Weidenfeller. During the weighing process, a complete window for the scales opens on the register display, showing all necessary data – including a description of the article. This window then either closes after weighing, or reduces to a small permanent scales display. "Today we need soft and hardware solutions that allow us to offer additional functions and to replace individual components cheaply," says Laudien-Weidenfeller, with a glance at his company's checkout scales series, which can easily be built in to a counter together with a scanner. "The design accommodates all common models of a scanner, and the software display solution can be realized on any modern POS-terminal using a 32-bit operating system with windows capability". The possibilities of scales as classic peripheral equipment are far from exhausted with regard to the use of IT in retailing. "Cross-selling, visual merchandising, and sales training for personnel are only the most important aspects of the new generation of shop scales." Bizerba offers a CE Touchscreen scale with additional color display on the customer side, which can be used for advertising. This display can show pictures, video clips, and other information to support the conversation with the customer and potentially increase sales. For example, wine recommendations can be displayed to accompany the cheese purchased. According to Bizerba, this allows targeted advertising through professional content, which is offered for all touch-screen scales. In addition to data about the product and its origins, suggested recipes can be displayed – effectively a shopping list for further purchases. |
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