Global POS

1
Global POS Store Operations Workshop
Implementing POS Systems over a WAN

• Presented by
• Michael J. Lehman
• Chief Information Officer
• Batteries Plus, LLC

2
Presentation Outline

• Batteries Plus Overview
• Background on Michael Lehman
• Batteries Plus WAN-based POS System
• Business Challenge
• Technology Options
• Selection
• Implementation
• Opportunities Benefits
• Real Life Stories
• WAN-based Network Considerations Today
• Business Impact Insights and Future Direction

3
Batteries Plus Overview
4
Batteries Plus Overview

• 1988 Founded in Green Bay, Wisconsin
• 1992 Began Franchising
• Today 270-unit Specialty Retailer
• 256 Franchise Stores
• 14 Corporate Stores
• Currently in 44 states Puerto Rico

5
Michael Lehman Background

• 1987 Bachelor of Science Double Major
• Business Administration
• Computer Science
• 1992 Masters of Business Administration
• 2000 Hired by Batteries Plus
• 2000 Director of IT
• 2002 VP of IT
• 2004 CIO

6
BP POS Business Challenge (circa 2001)

• Migrate from a traditional, non-Scaleable,
  Decentralized POS application
• No Field Visibility (lack of data access)
• Nightly Polling Cumbersome and Unreliable
• Upgrades Time Consuming Difficult
• Migrate to a Centralized, WAN-based POS
• Gain consensus with (then) 90 business owners
• Tight Budgetary Constraints
• Franchisee Franchisor Trust

7
BP POS Technology Options

• POS Software Vendors
• POS Middleware Vendors
• Security Connectivity
• Credit Card Processing
• POS Hardware Vendors
• WAN Technologies
• Private Network
• Virtual Private Network

8
BP POS Selection

• POS Software Synchronics (now Radiant Systems)
• Linux OS / Windows Clients
• POS Hardware IBM (CDW POS Bundle)
• POS Hosting Berbee Information Systems
• WAN Connectivity SSH client over
• Primary WAN Connection
• Frame Relay, ATMoDSL, DSL, ISDN, or Cable
• Back-up Dial Connection

9
BP POS Implementation

• Able to go Live with Dial Back-up until Primary
  WAN Connectivity Operational
• Primary WAN connection not the pacing item
• Flexibility of ISP technology and vendor choices
• Initially with Windows / Citrix, migrated to
  Linux / SSH
• Scalability / Performance of Windows in 2001
• Today 700 800 concurrent users

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BP POS Implementation (cont)

• Data Ownership Policies, Software License
  Agreements take time.
• New System AND New Technology meet Resistance to
  Change
• Training becomes the Pacing item for Existing
  Store Conversions

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BP POS Implementation (cont)

• January 2001 POS Selection Project
• April 2001 review of WAN options
• June 2001 selected new POS system
• September December 2001 POS WAN pilot
• January 2002 New stores open with WAN POS
• 2002 Conversion of all existing stores
• 2003 1st Server Hardware Migration
• 2006 2nd Server Hardware Migration

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BP POS Opportunities

• ISP Stability, Reliability (remember the
  timeframe)
• WAN POS Redundancy (pulled wrong plug)
• Offline Ticket Entry mode kludgy
• POS Capabilities (get what you pay for)
• Data Warehouse / Business Intelligence
• Data Access does not equal Data Ease

13
BP POS Benefits

• Multi-store Functionality
• Inventory Visibility for all Stores within a
  Company
• Real-time Inventory Transfers
• Centralized Maintenance
• Franchise Owner Remote Administration

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BP POS Benefits (cont)

• Centralized Database (field visibility)
• Centralized Data Backups
• Centralized System Upgrades
• Remote Access to System
• Minimized Store-Level Hardware Investment

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BP POS Benefits (cont)

• Store Installation Involves Downloadable,
  pre-configured Client Connection Software
• Once Trained, Store Receives Access to WAN
  System, Test Mode
• Implementation Time Dramatically Reduced

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BP POS Real Life Stories

• August, 2003 New, Faster Hardware
• filemax limitations
• fork errors
• Nightly processing time reduced 50
• August 2006 Blade Server SAN
• Power Supply failure on existing equipment
• Pre-migration File Restore (over production!)
• filemax limitations
• Nightly processing time reduce 50

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WAN-based Network Considerations

• POS Software Vendors
• Multiple options today (walk the floor)
• JAVA everywhere
• POS Middleware Vendors
• More options
• Better price / performance
• POS Hardware Vendors
• WAN Technologies
• Large vendor today offering 150 monthly (no
  upfront) DSL or Frame (where DSL not available)

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Business Impact Insights

• Significant improvement over prior POS
• Stability
• Functionality
• Minimized franchisee POS costs
• Enabled Data Warehouse Initiatives
• Enabled BP entry into National Accounts eCommerce
• Simplifies future upgrades and/or POS software
  migration

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BP Future Direction

• Assumed a 5-year POS lifecycle
• Cost and effort to migrate delays proceeding
• Looking to migrate to newer technology
• SQL backend
• Windows front-end
• Synchronics provides, with an upgrade option
• Other competition to look at as well
• Will continue with WAN-based solution

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Implementing POS Systems over a WAN

• Any Questions?
• Michael Lehman
• mlehman_at_batteriesplus.com