It seems that as soon as a piece of IT equipment or software has been installed it's immediately superseded by a faster sexier version. So what was an ideal IT solution soon becomes out of date. Built-in-Obsolescence is a fact of life and even affects us at a basic level with our home computers. As new power hungry versions of software are introduced we are encouraged (forced) to upgrade our existing hardware to enable us to work normally again.

Specifying the right IT solution at the outset is a tricky business. First you need to identify the requirement and then build a business case. Many large organisations have such complicated and finicky tendering processes that can go on forever. This often makes a timely solution become redundant by the time it's implemented. The other factor is the vendor and client do not always own up to the full cost of living with the system. They don't take into account all its associated costs during the natural lifecycle. The Total Cost of Ownership (TCO) is not focussed on only the capital cost, but in lots of cases it is all the Board is initially interested in.

Built-in-obsolescence drives the need for an IT system's replacement, because it is old, outmoded, falling into disuse - both functionally and technologically. This becomes apparent particularly when the service it was designed to provide is no longer efficient or cost effective. For instance, when the scalability has reached its limits and the architecture is harder to maintain. Also old systems may need significant updates to cope with new legislation changes and compliance regulations. A big driver is of course when competitors have grabbed an edge by implementing new technology features. However it's not all bad as a depreciation of an asset looks good from an accounting perspective.

Keeping ahead of the competition is every businesses challenge and the retail sector is no exception. Since the introduction of POS systems in the mid-1980s, retailers and customers alike have benefited from the technology. The POS system has improved retailing beyond recognition. It has enabled faster transaction times and helped to improve the overall shopping experience and increased customer satisfaction. Also the retailer has been able to better manage their inventory and business processes.

Now new developments are taking retail POS systems to a whole new level, helping to reduce labour costs and increase impulse purchases, both in stores and on-line. These include the introduction of in store self-service kiosks, managing personalised advertising and loyalty rewards and integrating the physical store with its online store customer activity, providing yet more new improved technology options to think about.

No matter how big or small the retail operation; there are some basic considerations that should be addressed when specifying a new IT system to help manage your IT investment effectively.

Start by selecting a partner and not just a supplier - the system is a significant investment, and you need a partner who will work with you to ensure that you get the most out of your investment - and is going to be around for the long term.

Plan for the future - think about technological advancements, business needs you may have planned for in the future for example expansion. Are you planning to add interactive kiosks, or develop e-commerce?

Branding - systems are available in all sorts of shapes, sizes and colours now. It's not like the old cash register on a counter; you can enhance your brand with the implementation of technology.

Reliability - you can't afford to implement a system that proves itself unreliable. If your system is 'down' then you can't make transactions which means you can't run your business efficiently. Ask for references, and check out the level of support from the maintenance provider.

Think about what your business needs - EPOS software isn't just about the front end at the till, it is a powerful management tool providing reams of information relating to your business. Reporting, stock control, purchase orders, price look-ups, cashing up, e-commerce, bar-coding etc. The list is endless, but not all systems offer everything so check them out and make sure you have a check-list when you have a demo. Does the software integrate with your accounts package? Payment options, what does the provider offer?

Speed and Ease of Use - there's nothing worse than having queues at the checkout and the system is slow. Make sure the hardware is the right specification and the software is tested on the platform so that you know what you are getting and how it responds. Make it easy for the users to feel comfortable with the system, and ensure that training is delivered in a professional and comprehensive manner.

Rather than worry about the effects of obsolescence, businesses can benefit from pragmatic management of their IT systems which will at least help them prepare for the inevitable.

Andrea Percival,

Managing Director

Maxatec

www.maxatec-europe.com