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Apple’s Massive POS Disruption

June 30th, 2010

I think that in order for these newer technologies to take hold, two very important things need to happen. The first is that a major POS player needs to take it seriously and start investing serious dollars into a “new technology” program (and not something like the half-assed efforts of most kiosk programs). This investment will only happen when some of the CIOs of the bigger chains start demanding it. Until the POS providers see viable business with some of the larger retailers, these systems will be relegated to technology start-ups that service small retail organizations.

Another consideration is system functionality. I think we need to forget about self-service for a minute. Although technology that allows customers to order their own food or pay at the table would be nice, the real business driver here is a cost-effective way for the crew to ring up sales. (Think about an iPad with a Square payment device integrated into a retail-friendly form factor).

The concept of self-service brings more problems than benefits (right now anyway). But let’s not worry about deciphering our cryptic menu structure. Let’s not worry about the durability of devices that customers might drop or spill their fifth refill of fountain soda on. And let’s not think about the line slowing down when the customer is confused. Instead, let’s focus on making far more cost-effective approaches for the crew.

I know that in today’s world, POS is a complex system that integrates with inventory systems, labor management, loss prevention and data warehouses. A POS also needs to be highly secure, especially when it comes to processing payment transactions.

I am not trying to oversimplify the problem. It’s just that I think these hurdles can be overcome. I know that an iPad (or similar tablet) has plenty of processor, capacity and communication options to meet the needs of most retail applications. The biggest drawback I can see for using something like an iPad itself would be the screen size (9.7-inches diagonal). In my experience, most POS applications leverage 12- to 15-inch screens. Plenty of “original tablets” meet those screen-size requirements. (You remember those relics don’t you? They were convertible laptops that everyone called tablets before Apple wiped your memory.)

So what am I missing? Why isn’t this done already?

Typically when I write an article like this I receive two types of E-mails. The first is from the established base of vendors who tell me, “It’s not that easy. You have all these other considerations that add costs and complexity.” The second type is from a new breed of vendors who say, “I’m so glad you wrote this article. This is exactly what our company offers, we just need someone to buy into the vision!”

I’m looking for your feedback. If you think I’m off my rocker, let me know! E-mail me or post on the comments below. Do you have a technology you think fits my needs? E-mail me and let’s talk further. Depending on the solution, I would consider a proof-of-concept test for one of my brands. I am a firm believer that we are about to witness a revolution in the POS industry similar to the fall of the mainframes in the late 1980s and early 1990s.

Again, leave a comment or E-mail me at Todd.Michaud@FranchiseIT.org. You can also follow me on Twitter: @todd_michaud.

And don’t forget to follow my Ironman training progress at www.IronGeek.me. (My swim still sucks and there are only three weeks until my first triathlon!)


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2 Comments | Read Apple’s Massive POS Disruption

  1. Bri Says:

    Its economics really – iPads sell millions of units, while POS sell thousands of units. High demand + high speed to market = many units sold at a low cost. Low demand and slow speed to market (takes next to an act of god to convince the dinosaurs responsible for POS to adopt/cIts economics really – iPads sell millions of units, while POS sell thousands of units. High demand + high speed to market = many units sold at a low cost. Low demand and slow speed to market (takes next to an act of god to convince the dinosaurs responsible for POS to adopt/change anything at all) = few units sold at what would seem as an unreasonably high cost. Plus – iPads/iPhones don’t need to properly enforce compliancies such as PCI, nor do they have to accommodate ever changing tax rules and other such complexities. If you corelate all of the music, apps, and periferals that you’ll have for your iPads/iPhones to its total value it creeps closer toward what a POS costs.hange anything at all) = few units sold at what would seem as an unreasonably high cost. Plus – iPads/iPhones by default don’t need to properly enforce compliancies such as PCI, nor do they have to accommodate ever changing tax rules and other such complexities. If you corelate all of the music, apps, and periferals you’ll purchase for your iPhone/iPad, the cost creeps closer to the cost of a POS as well.

  2. Tom G Says:

    Our web based POS system (CashierLive) runs pretty well on my iPad.

    The biggest issue is integration with POS hardware including receipt printers, cash drawers, scanners, PIN pads, swipers, etc. Apple has done a fairly good job of locking down the USB interface, but we’re working on solutions.

    Another issue is a commercially available mount that is rugged, safe and attractive. There are a few solutions available but nothing great yet.

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