The biggest challenge facing end-users in the point-of-sale (POS) market is a lack of knowledge about the specific solution they require for their businesses, states a Johannesburg-based solutions provider.
Ignorance on the part of the end-user can have a severe impact on a business, Peter Held, MD of Apex CCS says, as the wrong POS technology can cripple operations.
"Many end-users simply don`t know what they need - they don`t do their homework. We find that when we see a client, there is still a lot of selling that we need to do on solutions. Educating end-users remains a big challenge in the South African market," he says.
Businesses, specifically retailers, view issues such as stock control, inventory, sales and debtors as important aspects of their operations. However, Held argues, few give much thought to a POS solution, which is often regarded as the "cash drawer" aspect of an accounting package.
"In such cases, the one tool that is supposed to provide an insight into how the business is really doing, is reduced to carrying-out a menial task - it is simply a place to store cash," he says, adding that these businesses are doomed to failure, and many such casualties can be seen in the retail sector.
"People shouldn`t think of a POS solution as a grudge purchase, but rather as an integral part of their operation, which can contribute to profit growth."
It is also common, he states, that decisions on POS solutions are made at an executive level, with little thought given to employees` requirements.
A further challenge in the POS space, says Held, is the slow uptake of POS software solutions by dealers, who also lack in-depth knowledge and know-how. Thus, many dealers prefer to offer clients packaged solutions, which are often not suited to their requirements.
"There is much advertising of packaged solutions in the market and it is often misleading," Held notes.
A POS solution that offers full integration capabilities with back office functions is key to a successful business, he says.
Held predicts strong growth in the South African POS market, driven by small and medium enterprises.
"The local economy is currently geared towards producing entrepreneurs, many of whom will require POS solutions."
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