STORES Magazine - March 2008 - (Page 84)

CONSIDER THIS/ ARTS UPDATE Big Ideas for 2008 BY RICHARD MADER During ARTS’ BIG !deas session at NRF’s Annual Convention & EXPO, RIS and IHL Consulting discussed the findings of their fifth annual store systems survey. Following the presentation of survey revery high priority with retailers, and many find sults, a panel discussion addressed questhe PCI Data Security Standard (PCS DSS) tions raised by the survey and how ARTS to be imprecise and without goals that can be standards can help retailers achieve their objectively measured. NRF and ARTS are just business goals. Panelists included former beginning development of an IT best pracARTS board chairs Ann McCool and Jeantices library that will start with PCI. This will be nine Ralston, current board member Tim a huge benefit to tier 2 retailers and below — Hood of SAP and Greg Buzek of IHL Conthose who are just now attempting to implesulting. ment the standard. Tier 1 has already gone Some highlights of that discussion: through the pain, and will share its solutions Retail IT spending levels are notoriously for achieving compliance. low relative to other industries. The Retailers lose $93 billion annually to out RIS/IHL study shows steady increases in IT of stocks. How can retailers meet these chalspending at the store level. The question: is lenges? It begins with proper merchandise now the time to move systems into the stanplanning and replenishment. It is very imporRichard Mader is executive dards-based 21st century? Or are spending tant to have frequent communications with director of ARTS. levels still too low? stores and suppliers, particularly on promoThe NRF-AMR Research study reports total tions, advertising calendars and seasonal capital spending will increase 3 percent in plans. ARTS has developed several schemas 2008; spending on infrastructure and store hardware will to help with inventory management. We are also developrise 85 percent and 18 percent, respectively. Anticipated ining a data warehouse model that will store data to guide fufrastructure spending indicates greater interest in SOA, so ture purchases and identify new trends in product demand ARTS’ focus on SOA over the past 18 months was a timely using key product indications. investment. POS software keeps getting more complex. The top ARTS provides SOA training, and the SOA Blueprint and three functions retailers want to add with their next POS Best Practices Technical Report are a guide to retailer impurchase are CRM/loyalty management, inventory visibility plementations. These resources, along with implementaand gift card activation. ARTS knows POS: Our data model tion of the 17 available ARTS XML schemas, could lower defines the data and best practices for POS, item mainteinfrastructure spending and permit reallocation of assets to nance, pricing, customers and inventory/sales reporting, other budget areas. and our schemas present this data in a more modern forControlling payroll costs remains a primary concern. mat. ARTS developed the StoredValue (gift card) schema It’s impossible to manage payroll effectively without workover three years ago, and POSlog, the de facto data capforce management software, and ARTS has a standard ture standard for POS, contains all the information a retailRFP template for WFM. er should capture and retain at POS. Loyalty is fully adWithout automated information, it is simply too easy to redressed in the Customer schema. duce payroll to the detriment of customer service. The upSelf-checkout has no measurable effect on shrink. It dated RFP will not only help select the right vendor appliis still mostly confined to food, grocery and mass mercation, but guide retailers in implementing business pracchants, but the study’s findings may hasten the rollout of tices that can have a positive bottom-line impact. The self-checkout to other verticals. Our newest standard, Readdition of task management to the RFP allows retailers to tail Transaction Interface, uses POSlog to expose core effectively manage payroll beyond the sales floor. POS functions as services so that retailers can use core PCI Compliance jumps to the top of the priority list. POS functions at multiple touch points. This allows consisNo surprise here due to looming deadlines. PCI has forced tent representation of policies and processes to the cusretailers to divert IT resources from other projects with tomer, whether in store or via the web, kiosk or other selfhigher ROI. Protecting customer data has always been a service device. 84 STORES / MARCH 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - March 2008

STORES Magazine - March 2008
Executive Editor's Page
President's Page
Sam’s Club Gets Tough on RFID Stragglers
Athletes for Hire
What Shoppers Think
Goodwill Hunting
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Luxury’s Shrinking Purse
Workplace Law
First Look
Green Retailing
Cosmetic Sales
Inventory Tracking
Loeb Retail Letter
ARTS Update
Point of View
NRF News
Retail Industry Calendar
Last Laugh

STORES Magazine - March 2008