Ibm Rss Value Proposition

IBM Retail Solutions

Presented to xxxx

By xxxxx

+44-(0)xxx-xxx-xxx

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11 February 2010

© International Business Machines Corporation 2023. All rights reserved.

IBM POS Discussion Document

Table of Contents

1 Introduction 2

2 Innovative Design, Usability and Reliability – selecting the right Point of Sale for your business 3

2.1 Usability 32.2 Reliability 4

3 Easy to Implement - Easier and Faster deployment means a better ROI 5

3.1 Application Deployment and Implementation 5

4 Easy to Manage / Easy to Support - Reducing the Total Cost of Ownership 6

4.1 Light-Path Management 64.2 IBM Remote Management Agent. 7

5 Environmental Considerations - Reducing Energy costs and why Green is Important 9

A Addendum 11

A.1 About IBM 11

© IBM Corporation | April 10, 2023 1


1 Introduction

IBM is the world’s leading supplier of Point of Sale (POS) solutions with over 2,000,000 installations globally and continues to be the leading innovator in this market. We believe we can deliver together the most efficient, cost effective and environmentally aware POS solution for your stores and provide significant savings over the current estate and competitive offerings from other providers.

The following document details IBM’s POS solutions and highlights the benefits that could be achieved by partnering with IBM and deploying our technology and services in store.

The following are just some of the highlights:

Innovative Design, Usability and reliability

Easy to Implement

Easy to Manage/Easy to Service

Eco Friendly and Energy Efficient.

Our aim is to deliver a solution which maximises the customer experience, meets the usability and customer service requirements of employees/ managers in store and which optimises Total Cost of Ownership over the lifecycle of the project from pilot, through roll out, on going support and maintenance to end of life disposal.

1.1 Usability

Usability is about the customer experience, employee productivity and the store environment the retailer is trying to achieve. IBM has designed a product portfolio that meets the many varying requirements of retailers. We therefore have a range of POS solutions designed to maximise these environments from Department Store to Grocery to Specialised Merchandise to Fast Service retail outlets.

Surepos 300

A small distributed point of service device with a wide range of connectivity options. The terminal utilises the latest efficient processors to reduce the amount of heat output and the requirement for fans. This allows the terminal to be powered by a very efficient power supply. IBM has also introduced “deep sleep” capability on this terminal which allows the terminal to be put into stand-by during periods of inactivity, thereby increasing the retailer’s potential to save power.

Surepos 500

An Integrated Point of Sale Terminal that was originally designed for the hospitality sector and has been the subject of numerous design awards. This terminal, because of its flexibility, is found not only in fast food restaurants but also in high street fashion, department stores and garden centres. This terminal also has a number of options including more powerful processors and incorporates an infrared touch screen and many of IBM’s power saving innovations.



Surepos 700

A larger more flexible distributed or integrated point of sale terminal, it is installed in a huge number of the major retailers around the world. The flexibility extends to a range of connectivity options, processors and configurations. A wide footprint version of the terminal is available with battery backup. Again this terminal benefits from a lot of the innovative power savings implemented in the smaller IBM terminals. This terminal can also be configured with dual disks and a Raid card, which also makes it ideal for in-store controllers. Given the extended life cycle of IBM POS terminals, the benefits of utilising this terminal as a controller mount up very quickly.

Anyplace POS

Our leadership in the self serve kiosk field has enabled IBM to develop a new POS system with an 80% reduction in footprint. The Anyplace POS can be installed almost anywhere and uses hub connectivity to interface with payment, scanning and printing devices, etc. The system has multiple CPU and memory options, uses IBM infrared screen technology to ensure maximum reliability and employee efficiency and is easy to service to minimise maintenance costs.

Infrared Touch Technology

Class leading touch technology that never requires re-calibration ensures that the accuracy and usability of the touch screen remain as good as new many years later. This leads to savings in maintenance and support. Additional technology in the Anyplace POS terminal can detect rogue touches and filter these out. The touch experience can also be configured to allow mouse emulation or to react to touch on touch down or lift off. IBM supply the Anyplace Kiosk as default configured with lift off - although it is a different experience for the user, studies show that it is more accurate and efficient.

1.2 Reliability

Reliability in retail is critical as poor performance has a major impact in the store. IBM’s development and test processes ensure that all our SurePOS solutions perform at the optimum for an extended life cycle minimising outages for the business. IBM’s largest retail customer recently reported an availability rate of 99.999 on their IBM POS estate demonstrating that in a high volume high transaction environment IBM products really are “Retail Hardened”.

IBM also guarantees parts availability for our customers for 7 years from product withdrawal from marketing. Therefore an IBM solution can have a product lifecycle of at least 9 years.

See below the testing processes each unit goes through prior to its release to market.


IBM POS Discussion Document IB M R eta il S to re S o lutions

© 2007 IBM Corporation

SureVantage– Innovative Design

Designing system sexclusively for retail

M aterials – High -quality sheet m etal/UV resistant plastics Com ponents – ‘A-list’ key suppliers, go ld -plated connectors Holistic / retail design – optim ized to w ork together Reliability – 7-year benchm ark, w ithstand 20% pow er d ips O ther - Num bered ports, latching connectors, com pact sizes

M anufacturinginnovations

Testing toh igher standards

ES D – tested up to 15,000 volts (P C standard 8,000 volts) Dust and dirt – “ IBM Retail D irt” Therm al dynam ics – ( -40 degrees F to +140 degrees F) Spills and drips – Dripp ing and dum ping large liquid cup M agnetic, operational vibration, and drops (36” drops)

W hy IB M ? Experience – 40% staff average + 10 years ’ retail experience Resources – Equipm ent & research investm ent, greater IBM Focus – RSS dedicated to P OS since 1972 Presence – M ore than tw o m illion P O S shipped and installed

Board flex testing Pow er cycling Round robin testing Extended burn-in Preshipm ent integration



2 Easy to Implement - Easier and Faster deployment means a better ROI

2.1 Application Deployment and Implementation

IBM’s SurePOS solutions are designed to “open standards”. We support most operating systems and work closely with all the major component manufacturers to ensure their drivers work as required. As an open standards adopter IBM has worked with and deployed all the major POS applications available today and we also work with a large number of customers who have deployed their own in-house developed systems.

Operating systems include:

DOS 2000, Microsoft Windows XP, Vista, XPe, WEPOS and PosReady

Microsoft Windows 7, associated embedded and point of service offerings.

SUSE Linux Distributions Including IRES

IBM 4690 operating system.

This flexibility of supported Operating Systems speeds up the development and piloting phase and ensures the testing processes etc before rollout are reduced to a minimum. It also helps with forward compatibility and upgrades which impact the business on an ongoing basis.



3 Easy to Manage / Easy to Support - Reducing the Total Cost of Ownership

An Independent study of total cost of ownership (white paper written by Global Retail Insights) shows that the major component of total cost of ownership is based around the management of installed systems. The same paper suggests that nearly 70% of the cost of a system occurs after the initial project has purchased and deployed the system hardware and software. This percentage continues to increase as the initial purchase price is reduced and system complexity increases.

© 2008 IBM Corporation3

Store Systems TCO – Beyond the Purchase

IBM has developed hardware, applications and tools specifically to increase lifecycle and minimise maintenance costs. Our innovative approach to product development means we develop systems to eliminate unplanned downtime and additional costs. Two of the key elements to this cost reduction are Light Path Management and Remote Management Agent.

3.1 Light-Path Management

Light-Path Management is a comprehensive system for monitoring and diagnosing the POS system unit and its components. This is a dedicated micro-controller with code that monitors events in the POS at a detailed level.

The Light-Path management system offers improvements to diagnostics and management, both locally and remotely. A system of LEDs on the front of the system provides quick and reliable problem determination so that a service/maintenance provider and/or customer can be confident when performing a repair that they are taking the correct action.

The key here is that non technical store associates can identify issues easily when reporting them to the help desk. This makes diagnosis more accurate and



therefore reduces response and fix times, e.g. engineers turn up with the right parts because of the accurate diagnosis.

IBM Retail Store Solutions

© 2007 IBM Corporation

Light-Path Management

Service Processor

Remote Management

Local Diagnostics

Based on System x server architecture

Dedicated micro-controller running a

retail-optimized version of server software

LEDs provide quick diagnosis

Reliable problem determination

Element fault isolation (memory, HDD, PS, etc)

Customer replaceable units

Sensor driver provides proactive monitoring

Interface to central site via RMA

Upstream notification of events

Predictive maintenance

SurePos 700

All the information that is available visually is also being tracked by the service processor and can be sent upstream to the back office, central site or wherever the customer desires. Not only is fault isolation monitored, but you can also track environmental variables like temperature, voltage level and fan speed.

3.2 IBM Remote Management Agent

IBM have developed Remote Management Agent (RMA), a data centre class remote management capability for POS and servers in store. This was developed specifically to reduce the systems management and support costs and to improve availability of POS solutions to the business.

RMA is used to proactively track, monitor and control the devices at individual level, store level and across the estate. Producing a range of alerts or reports, e.g. the devices’ health, the hard drive activity and temperature, etc., it highlights potential issues early and allows you to fix the problems in many cases before they have an impact on the business.

RMA integrates with IBM Director on the server to provide the information and tools IT need to manage the POS Systems environment whilst maximising band width within the wide area network. This leads to savings in a number of areas - these are illustrated in the charts and example below:



Example of TCO reduction through utilisation of IBM systems and management

After deploying Remote Management Agent, IBM completed a study with a customer who has 3000 POS Terminals and 500 Kiosks deployed across 300 stores. The chart below shows the savings they made just in managing the POS estate.

IBM’s Helpdesk Services are considered best of breed by Gartner and we seek to minimise the number desktop incidents via remote take-over (reactive) and a number of proactive service improvement initiatives like root cause analysis and telephone audits of the inventory. By owning the service end-to-end, our active use of problem management analysis can attain a holistic view of the service and help reduce common problems across the service spectrum.



4 Environmental Considerations - Reducing Energy costs and why Green is Important

IBM’s focus on Green is not a recent strategy but part of a coordinated programme we have been involved with for nearly forty years. From the Pollution Prevention programme in 1971 to being founder members of the EICC in 1991 to our Solutions for a Smarter Planet strategy in 2009, we continue be a leader in this space and provide solutions which help us and our customers to optimise the world’s natural resources and minimise the use of energy and or waste.

In terms of Point of Sale our focus is minimising the energy consumption of our solutions, helping our customers reduce their carbon footprint and maximising our Retail Green initiative through using recycled materials in our manufacturing processes, recycling and reuse of as many parts and components as is possible and safely disposing of any hazardous materials at end of life. Evidence of our success in this was demonstrated when IBM won the Frost and Sullivan Green Pos Provider 2008.

Reducing Energy Consumption

There are two ways to reduce the energy consumption of a POS.:

1. Make the till and its components as power efficient as possible

2. Optimise the way the POS is run so it only uses power when it needs it.

The latest model of SurePOS 700 is 35% more power efficient compared to the previous model when it comes out of the factory and before implementing any of the new features that are available to reduce the cost of running the POS. One of the ways of creating this power saving was by using much more advanced power supplies that convert voltages more efficiently, thus creating less heat and requiring less cooling. This has the added benefit of increasing the expected life of the terminal.

The new features that are included in IBM Point of Sale terminals have used industry standards to introduce further savings. These features include Wake on LAN and Deep Sleep - just two ways to access additional savings on top of the 35% power saving you get straight from the factory.

Deep Sleep allows a terminal to be shut down to a minimal operating status that can be woken up very quickly. This has already been seen to reduce power consumption by an additional 47% on top of the 35% mentioned previously. All of these savings were introduced with no impact on customer service.

Wake on LAN enables tills to be automatically powered off overnight when the store is closed and then powered up in the morning before it opens. The Co-op Group in the UK has reduced electricity costs in store by £122,000 per annum by using this facility.



IBM Retail Green Initiative

The IBM Retail Green Initiative is part of almost everything we do in Retail and ensures that IBM’s clients understand fully the environmentally options and benefits available to them as a result of using our products and services.

All our POS solutions are built to be expandable and upgradeable for a long seven year life cycle. Each product utilises common building blocks encouraging reuse of parts for service and refurbishment.

Each product is developed so that its components can be recycled at the end of product life and we also facilitate recovery, reutilisation and recycling of parts at the end of life in a cost effective manner

IBM builds products that use recycled materials where they are economically and technically justifiable. Approximately 80% of POS solutions shipped by Retail Store Solutions (RSS) in 2006 contained recycled plastic

As detailed above IBM are leading the industry in energy efficiency. RSS continues to improve both Standby and Max Power efficiency, with ongoing studies conducted across the IBM install base

IBM develops products that minimise resource use and environmental impacts through selection of environmentally preferred materials and finishes. Our POS solutions do not use any paints in material finishes. IBM instead uses powder coating for metal and impregnated colour for plastic. Painting processes release harmful emissions into the air, but powder coating drastically reduces those emissions

IBM’s products can be safely disposed of at the end of product life. Dissimilar materials are easily separated. Plastics are appropriately marked with a recycle symbol. Plastic parts are not coated, which renders them un-recyclable. Hazardous materials (i.e. batteries) are labelled properly to insure correct recycling/disposal methods are used.

In addition IBM Corporate Social responsibilities include a key environmental strand. Below are examples of our programmes and achievements:

Environment – Encompassing:

Pollution Prevention Programme began in 1971

Product Stewardship Programme since 1991

Second user marketing teams – Global Asset Recovery Services

2006: 1.59% landfill (against target of 3%)

2006: Top user of renewable energy by Fortune 500 company

2006: Again achieved Gold standard in UK’s Business in the Environment initiative



A Addendum

A.1 About IBM

IBM UK has been certified to the requirements of the original ISO9000 since 1991 and to ISO9001:2000 since 2001. This certification now part of the single certificate issued by BVC for the totality of IBM Sales and Services World Wide.

The Certificate number is 82346.9.2. and the Scope covers all activities culminating in the provision of IT solutions, including design, marketing, sales, support services, installation and servicing of computer systems and infrastructure (hardware, software and networks), management of computer centres and outsourcing services, help desk for computer users, and the provision of IT & management consultancy and services.

IBM manufacturing and hardware development locations worldwide are certified to the requirements of ISO 14001 and are part of a single certificate issued by BVC. The Certificate number is 43820 and the scope covers IBM Research, Hardware Development and Manufacture of information technology products worldwide.

Additionally within the UK IBM has gained certification to ISO2000:2005 certificate number 07 01 00 00 the scope being ‘IBM outsourcing activities within UK’

IBM is a registered trademark of International Business Machines Corporation. All other trademarks are acknowledged.



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Date: April 10, 2023

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