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Technical support: the point of club point-of-sale systems.


There is probably no club technology that has the potential for a higher return on investment than a point of sale (POS (1) See point of sale and packet over SONET.

(2) "Parent over shoulder." See digispeak.

POS - point of sale
) system. Unfortunately, some clubs resist point of sale implementation or updating believing that since the club collects little or no cash, there is no need to automate sales transactions.

The fact is, modern club POS systems are not centered on currency monitoring, instead the focus is on efficiency in order entry, coordination of production and service, effective promotional tracking, comprehensive sales and server analyses, deferred settlement options, data mining procedures, and important pricing controls.

POS systems provide clubs with internal control techniques that simply are not available elsewhere. Advanced POS developments have led to a plethora of system options for clubs including color touch screen devices, handheld portable terminals, and wireless fixed terminals. Clubs lacking in-house POS technology, or facing scarce resource funding, can even consider turning to the latest innovation in remote club processing, the application service provider (ASP) point of sale model.

POS Technology

In general, club POS technology can be divided into two major branches: proprietary and nonproprietary. A proprietary system, as its name implies, has characteristics specific to a distinct system vendor. Proprietary POS architecture tends to be inflexible, vendor-specific and typically available from a sole source. Dependency on a single source often renders operators at the mercy of the POS vendor.

In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke"
put differently
, a proprietary POS system limits the hardware, software, and firmware A category of memory chips that hold their content without electrical power. Firmware includes flash, ROM, PROM, EPROM and EEPROM technologies. When holding program instructions, firmware can be thought of as "hard software." See flash memory, ROM, PROM, EPROM, EEPROM and FOTA.  options available to the club. How can a manager determine if the club's POS system is proprietary? Simple. Whenever the system's hardware and software are bundled together and only available from a single vendor, the system is proprietary.

Non-proprietary systems, also called open systems, are different. When procuring a non-proprietary POS system, the club can opt to purchase the POS software independent of the hardware; thereby allowing the club to select its own hardware supplier.

For example, when purchasing a touch screen POS system, the club could opt to purchase application software from one vendor and touch screen terminals from another. The concept being that so long as the software conforms to industry standards, it will operate on ordinary hardware.

Open architecture facilitates searching for additional hardware sources, support and maintenance providers, and spare/replacement part vendors. As hardware investment represents a major portion of total system cost, serious consideration should be given to non-proprietary equipment as it supports future system expansion and / or increased functionality.

The useful life of a club POS system is estimated at five years. Club managers, however, should be mindful of the infamous POS hardware guideline that postulates that hardware that is more than three years old should not be used to support a newer system and need to be replaced.

Historically, clubs have been faced with a majority of proprietary POS solutions POS Solutions, is an Australian company. The company provides software and services to small and medium businesses, where the company has enjoyed steady growth so making it particularly well-known in Australian Newsagencies where its software has taken hold as the market leader. . Fortunately the adoption of open architecture signifies the beginning of the end for proprietary POS systems. Current POS systems feature personal computer (PC) platforms and innovative network topologies providing management with application software portability, improved transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time.

Transaction processing systems are the backbone of an organization because they update constantly.
, and enhanced financial reporting. Club managers now enjoy more options than ever.

With a non-proprietary system, the same technology used to monitor and control transactions may also be capable of direct integration to club accounting, inventory control, desktop publishing desktop publishing, system for producing printed materials that consists of a personal computer or computer workstation, a high-resolution printer (usually a laser printer), and a computer program that allows the user to select from a variety of type fonts and sizes,  and electronic settlement software.

Most POS vendors offer a variety of models and styles, each designed for a specific application, environment, or ambiance am·bi·ance also am·bi·ence  
n.
The special atmosphere or mood created by a particular environment: "The noir ambience is dominated by low-key lighting . . .
. Models range from color touch screen PC-based workstations, to handheld terminals, to wireless fixed terminals, to remote off-premises applications. Popular club POS operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap.  include Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. , UNIX UNIX

Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics).
, Java, and others.

POS Generations

The first generation of cash registers, dated pre-1960, required manual operation. Register keys were very difficult to use, recording required some physical effort and machine controls were virtually nonexistent non·ex·is·tence  
n.
1. The condition of not existing.

2. Something that does not exist.



non
. The second generation (1960s) improved operations by replacing manual procedures with mechanical components that increased the speed of transaction completion.

In addition, second generation machinery established an auditable control over the register operator (checker check·er  
n.
1.
a. One, such as an inspector or examiner, that checks.

b. One that receives items for temporary safekeeping or for shipment: a baggage checker.

2.
 or cashier). This feature enabled management to review recorded transactions and determine the balance of cash expected to be in the cash drawer A cash drawer is generally a compartment underneath a cash register in which the cash from transactions is kept. The drawer is usually divided into separate compartments for notes and coins for ease of use.  at the close of business. This improvement was perceived as a major enhancement to the development of cash register products.

As the hospitality industry began monitoring menu and meal patterns, the third generation (1970s) of registers evolved with electronic features. Preset recording, detailed tapes, improved control over drawer operations and electrical wiring Electrical wiring in general refers to insulated conductors used to carry electricity, and associated devices. This article describes general aspects of electrical wiring as used to provide power in buildings and structures, commonly referred to as building wiring.  to other devices became readily available. Management concerns centered on the menu, the register more closely tracked the day's transactions via specialized keyboards and peripheral devices.

The fourth generation (1980s) of machines exhibited both forward (customer-service) and backward (production) integration within the food service environment. Descriptive customer displays, automatic tendering functions, interfaces to beverage-dispensing equipment, automatic transfer to credit card settlement, and the development of processor-based technology reshaped the role of the `cash register'.

POS devices became capable of generating aggregated, comprehensive operational reports and tracking employee time and attendance. POS systems began segmenting revenues by food groups within monthly, weekday, meal period, hourly, and fraction-of-an-hour time intervals.

The fifth generation (1990s) was characterized by the prominence of personal computers (PCs). PCs were configured with a file server to form a local area network (LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. ) thereby simplifying interfacing to an external system. Having a PC as a POS device also allows the workstation terminal to run other applications when POS traffic diminishes.

The current POS landscape features innovative user interfaces (e.g. hand held terminals, proximity chips, magnetic stripe A small length of magnetic tape adhered to credit cards, badges, permits, passes and tokens. The tape is read by magnetic stripe readers incorporated into ATMs, identification readers and payment terminals.  readers) and system interfaces (e.g. flat panel screens, remote operations and storage, and data mining query software) that further enhance and expand system capabilities.

POS technology, originally oriented toward monitoring cash balances, has evolved into sophisticated production scheduling, product expediting, transaction processing, report generating, and comprehensive analytical systems. POS technology is capable of tracking prices, inventory, sales, employees, tips, promotions, discounts, forecasts, trends, and the like.

User Interfaces

Traditionally, club management has felt that instead of fitting a POS system to the club environment, they have had to modify operational procedures The detailed methods by which headquarters and units carry out their operational tasks.  to adhere to adhere to
verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful

2.
 inflexible POS system parameters. While it is true some of these dysfunctions may have been the result of application software design, some have been directly attributable to system hardware.

There are perhaps no other POS user interface devices that received more attention during the past decade than touch input and hand held terminals. During this time a host of keyboard alternatives have been introduced, including: programmable touch pads, flat panel terminals, and color touch screens.

Touch pads, which extend the touch input concept by combining a keyboard and screen into a large keypad A small keyboard or supplementary keyboard keys; for example, the keys on a calculator or the number/cursor cluster on a computer keyboard. See programmable keypad. , are built from electronic membranes and template overlays. Dining room management designates the functions associated with each keypad membrane location. This information is programmed into the system memory and a template is designed that labels or illustrates (via icons) the function of each key.

Citing resistance to traditional keyboards, system vendors claimed the major advantage of touch pads was ease in training. Touch pads have simply not been a popular choice for the club environment. Flat panel terminals occupy significantly less space than the traditional POS terminals they replace.

Flat panel screens, which measure less than three inches thick, can be mounted from walls, counters, or shelving shelv·ing  
n.
1. Shelves considered as a group.

2. Material for shelves.

3. An incline; a slope.


shelving
Noun

1. material for shelves

2.
 units. Vendors argue that flat screens offer clubs unlimited flexibility in terminal location. So long as the screen is within reach of a server, it is accessible. Flat panel screens are just beginning to be selected by clubs as a preferred data entry option.

The installation of color not of the white race; - commonly meaning, esp. in the United States, of negro blood, pure or mixed.

See also: Color
 touch screen appears to be the preferred club POS user interface. Color touch screens containing more than 150 key membrane keyboards, are capable of leading the server through an order entry sequence while collecting transaction data necessary for settlement, including member number and if necessary, credit card information.

Vendors claim that server order entry time can be significantly reduced with the implementation of color touch screens. (To date, clubs have not shown an interest in member self-order entry. Additionally, there is evolving development in both handwriting recognition Handwriting recognition is the ability of a computer to receive intelligible handwritten input. The image of the written text may be sensed "off line" from a piece of paper by optical scanning (optical character recognition).  and automated speech recognition technology.)

Hand held terminals (HHTs) rely on radio frequency for communicating tableside ta·ble·side  
n.
The area beside or around a table, especially in a restaurant.

adv. & adj.
Made or prepared alongside a table: lamb that was carved tableside; a tableside recitation of the menu.
 captured order entry data to a central processing unit See CPU.

(architecture, processor) central processing unit - (CPU, processor) The part of a computer which controls all the other parts. Designs vary widely but the CPU generally consists of the control unit, the arithmetic and logic unit (ALU), registers, temporary buffers
 for relay to the production area. At first blush Adv. 1. at first blush - as a first impression; "at first blush the offer seemed attractive"
when first seen
, hand held terminals appear highly compatible with the club environment as there appear to be several natural application areas (e.g. recreational settings, bars and lounges, and grill and gaming areas). While system reliability of hand held terminals has greatly improved, the reality of cost justification remains a hurdle.

Comparing the average cost for a fixed terminal system ($3500 per terminal for each 30-40 seats) verses a hand held terminal for each server ($2000 per unit) often proves cost prohibitive. As costs become more equivalent, the decision point is likely to change. Hand held terminals clearly bridge user interfacing with component interfacing.

Component Interfaces

The concept of POS open architecture is based upon distributed, networked processor-based devices. An open architecture system enables club management to build as small or large a system as necessary. A variety of devices can be placed into the network and can be shared among system users. Not all devices need to be cabled to function effectively. Wireless connectivity is also possible.

The two most significant developments related to POS systems are wireless applications and off-premises POS applications. Wireless applications are considered state-of-the-art for POS system components. Enhanced radio frequency devices can be used to facilitate efficient order entry (hand-held terminals), order processing (terminal linkage), and system wide monitoring (local area networking).

Until recently, HHTs were the sole wireless POS Wireless point of sale (wireless POS or WPOS) is the use of wireless devices to facilitate order-taking or payment for products or services. As a rule, a wireless point of sale system consists of a base station directly connected to a central server computer and one or more  option, but now wireless desktop terminals are available that provide unrestricted flexibility in dining room design and POS configuration. To date, there have been few installations of wireless POS systems, but this is expected to change as reliability and comfort levels with wireless components improve. Of much more immediate appeal is an application service provider POS model that involves off-premises transaction storage and analysis.

Historically, the club industry has involved outside data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a  agencies for some of its most basic services basic services,
n.pl frequently insurance companies split dental procedures into basic and major categories. Basic services usually consist of diagnostic, preventive, and routine restorative dental services.
 (e.g. payroll, accounting, financial reporting, etc.). The evolution from service bureau to outsourcing to application service provider really brings club technology full circle. An application service provider is an entity designed to sell Designed to Sell is an HGTV American reality television show hosted by Clive Pearse. The show focuses on the fixing up and renovation of a home that is about to go on the market. It is one half hour long and is produced by Pietown Productions. The show began airing in 2004.  and distribute software and software services to disparate computing users.

An ASP can dramatically reduce the costs of such software and software services. The concept of an ASP is analogous to many other conveniences, like the telephone system. Instead of building and supporting a complex communication system, a user merely buys an affordable telephone and then purchases phone units (access and cost per minute charges).

The cost and complexity of owning and operating a fiber optic network is prohibitively high but paying the cost of a single phone call across a large-scale system can be shared feasibly among all users. It has been argued that this concept can be similarly applied to the club POS system.

Clubs that lack in-house POS technology or face scarce resource funding, may consider turning to the latest innovation in remote POS processing, the application service provider (ASP) model. From a vendor perspective the strength of an ASP POS, also referred to as web-based POS, lies in its ability to focus club management on dining room operations, not technology.

ASPs claim they provide a means for the club to implement the latest POS technology without having to purchase, install, or upgrade in-house technology. Just as electricity is delivered to a wall outlet seamlessly and reliably, web-based POS providers strive to provide a similar level of comfort and convenience to clubs.

The appropriateness of an application service provider to the club environment hinges on several critical factors, including frequency of use (subscriber payment model), reliability of connectivity, method of data entry, privacy of transactional data, system security, and database maintenance.

In June 2000, InfoGenesis and Compass Group The British company Compass Group LSE: CPG is one of the largest food service businesses in the world. It provides catering services to many types of institutions, for example schools, hospitals, companies and nursing homes.  combined to produce e-Revelation, an early entry ASP-based POS solution. E-Revelation is described as an enterprise version of Revelation, an existing POS system. As an ASP-based application, e-Revelation is hosted in data center facilities with WAN or Internet connectivity to POS terminals operating in remote client foodservice locations.

Transactions can be processed online or offline and system configuration and menu modification can be processed centrally and deployed to individual sites. The sponsoring companies claim that the key ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot).  factor is that the ASP model offers a technology dividend from increased revenues and margins that would not normally exist for small to medium operations. Another advantage they cite is that all costs of installing and operation a POS system are reduced to a simple monthly fee.

Club management needs to exercise caution when reviewing ASP POS models. Specific areas of concern include fee structuring, propriety/security of club transactional data, reliability and connectivity, training, and ability to link POS data with other club applications (interoperability).

Summary

POS systems are beginning to be configured as complete production/service networks. This is possible due to the implementation of open architecture hardware and network-ready software.

As POS hardware continues to become more standardized, competing vendor systems will be differentiated by the strength of application software. Open architecture, network configurations, wireless components, increased functionality, and PC-based terminals have significantly altered the course of club POS design.

As clubs renew their interest in POS systems it is imperative that system capabilities be known and matched to management needs.
POS Generations

Time Frame   Generation   Orientation            Technology

pre-1960s    First        Cash Transaction       Manual
                          Reporting

1960s        Second       Cashier                Mechanical
                          Reconciliation

1970s        Third        Menu and Meal          Electronic
                          Monitoring

1980s        Fourth       Aggregated Report      Automated
                          Management

1990s        Fifth        Enhanced Operational   Teleprocessing
                          Controls

post-2000    Sixth        Remote off-premises    ASP: Application
                          Processing             Service provider


POS Suppliers

Abacus21.com Actionsystems.com Agilera.com Alohapos.com Ameranth.com Aspeon.com Cashregisterstore.com Casio.com Champbiz.com Chickasawtech.com Compristech.com Comtrex.com Comus.com Crs-usa.com Digitaldining.com Execu-tech.com Flightware.com Frontlinesystems.com Geac.com Hsi-pos.com Infogenesis.com Menusoft.com Micros.com Mintronix.com Mirusworks.com Mstouch.com Ncr.com Netpos.com Ngsc.com Omronosi.com Panasonic.com Partech.com Pixelpoint.com Positouch.com Progressivesoftware.com Radiantsystems.com Rapidfire.com Sicom-systems.com Sivacorp.com Smshost.com Squirrelsystems.com Tecamerica.com Touchmenus.com Vitallink.com Vivonet.com

POS Core Functionality

PLU PLU Pacific Lutheran University
PLU People Like Us (LGBT community)
PLU Price Look-Up
PLU Primary Logical Unit
PLU Product Look-Up
PLU Phi Lambda Upsilon (National Chemistry Honor Society) 
 - price-look-up - ability to assign a unique number to each menu item for data entry and/or transaction processing and monitoring.

MLU MLU Mean Length of Utterance
MLU Mid-Life Update
MLU Mirror Lock Up
MLU Mid-Life Upgrade
MLU Monroe, LA, USA (Airport Code)
MLU Memory Look-Up
MLU Multiple Logical Unit
MLU Memory Lookup
 - modifier (programming) modifier - An operation that alters the state of an object. Modifiers often have names that begin with "set" and corresponding selector functions whose names begin with "get".  lookup - ability to classify PLUs With mandatory modifiers so more complete information accompanies an order; some MLUs impact pricing.

TLU TLU Texas Lutheran University (Seguin, Texas)
TLU Threshold Logic Unit
TLU Table Lookup
TLU Terminal Logic Units
TLU Transverse-Longitudinal-Up
TLU Table Look up
TLU Trigger Logic Unit
TLU Tape Library Unit
 - taxable lookup - ability to classify menu items as taxable or non-taxable and to associate an appropriate tax rating?

RLU RLU Relative Light Unit
RLU Relative Luminescence Units
RLU Report Layout Utility (IBM)
RLU Remote Line Unit
RLU Registered Linux User
RLU Raised Leg Urination (wolves)
RLU Rack Location Unit
 - routing lookup - ability to assign a primary and backup remote display or printer to each PLU for enterprise-wide communication.

Compatibility - ability to interface with a club management and/or other system.

Access Control -- personal code number, key, or magnetic card used for greater system security and to identify current user.

Split Check - ability to separate items on a previously open check, or checks, from one member to another or from one waitperson wait·per·son  
n.
A waiter or waitress.
 to another.

Split Tender - ability to settle an outstanding check to multiple forms of settlement (partially cash, credit card, debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. , etc.).

POS Popular Add-ons

Recipe/Food Costing - ability to create a menu item on an ingredient, measurement, and/or cost basis and to analyze corresponding expenses.

Promo pro·mo  
n. pl. pro·mos Informal
A promotional presentation, such as a television spot, radio announcement, or personal appearance.
 Logic - ability to for special bundled pricing, `happy hour' pricing, or other promotional plans (e.g. buy entrEe, get dessert free).

Direct Posting - ability to transfer, post, search, and query (in whole or in part) transactional data to/from an external database.

Training Mode - ability to enable training on `live' system without effecting real transaction activity or stored values; training without processing interfer-[text incomplete in original source]

Club POS Needs

Functionality (capability) Reliability (integrity) Simplicity (ease of use) Scalability (system sizing) Redundancy (security) Flexibility (programmability) Economy (cost effectiveness) Non-proprietary (open architecture)

Michael L. Kasavana, Ph.D., CHTP CHTP Certified Healing Touch Practitioner
CHTP Certified Hospitality Technology Professional
 NAMA Na·ma  
n. pl. Nama or Na·mas
1. A member of a people of southwest Africa.

2. The Khoikhoin language of the Nama.
 Professor in Hospitality Business The School of Hospitality Business Michigan State University Michigan State University, at East Lansing; land-grant and state supported; coeducational; chartered 1855. It opened in 1857 as Michigan Agricultural College, the first state agricultural college.  
COPYRIGHT 2001 Finan Publishing Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Author:Kasavana, Michael L.
Publication:Club Management
Geographic Code:1USA
Date:Oct 1, 2001
Words:2678
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