Some commonly reported benefits of SaaS

SaaS, or Software as a Service, has been making major advances in many business segments. In this first of two articles on the suitability of SaaS for Retail operations including POS, we look at the benefits of SaaS over traditional system deployment methods.

Before getting into the detail, lets begin with an explanation of what SaaS is. Software as a Service (SaaS) is a software usage model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet. Almost always the service is provided for a monthly fee based on one or more usage metrics.

The major benefits of SaaS are:•    Rapid Deployment
•    Outsourcing
•    Pay as you Go

Rapid Deployment
As the hosting of the software is the responsibility of the SaaS provider, there is no need for the customer to purchase, install and configure servers to host the application.

The application is ready to be deployed almost immediately. In many cases, all that is required to start using the application is a broadband Internet connection.

Many SaaS vendors allow for even faster deployment by providing sophisticated data migration facilities.

Outsourcing
The provision and maintenance of the backbone of the SaaS solution infrastructure is outsourced to the SaaS vendor, eliminating any risk associated with sizing and deploying the infrastructure required for the solution.

Data security and server availability is also outsourced to the SaaS vendor, eliminating the need to provide these essential services in house.

Pay as you Go
Possibly the most compelling argument for SaaS is the Pay as you Go concept.

There is no need for any large capital expenditure on either infrastructure or software thereby substantially improving cash flow.

And providing the SaaS vendor does not require a long-term commitment, any risk associated with the implementation of a new system is drastically reduced.

In these tough economic times, where many businesses have a Capex (Capital Expenditure) freeze, SaaS has a major advantage over traditional system implementations. SaaS payments can come out of Opex (Operating Expenditure), instead of Capex. Therefore SaaS projects can be implemented even when there is a Capex freeze.

And because you are only paying for what you use, the return on expenditure is easy to calculate.

A further Pay as you Go benefit is that there is no requirement by the customer to predict or plan for the future growth of their business. They can start small and only pay for what they use, and their charges only increase as their business and usage grows. It is up to the SaaS vendor to ensure that the infrastructure is available as the customer’s usage increases.

Conclusion
There are many substantial benefits of SaaS, especially in the current economic situation. Many retailers see these benefits as compelling and are implementing SaaS solutions for their retail operations, including POS.

In our future newsletter, we will look as some of the reasons often stated by retailers for not implementing a SaaS solution and examine whether these stated reasons still apply.

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“The right products available”
A key feature of any good Retail Management system is that it will track all items in a store, the frequency they sell, and the profitability of that item. It will help management notice hot sellers and make sure they are available at all times despite the increasing turnover. Additionally a good Point of Sale system will make the overall business of running a business easier so that you can spend time interacting with customers, asking what items they would like to see, and staying current with industry trends.“Well-presented in our stores”
Even a great POS system is not going to put items on display, plan a planagram, or make sure all items are faced properly so they look their best. But it will help you keep tabs on what is hot, what is selling, and what stock levels are needed in the business. With these key variables it will be easier to decide what items should be placed where in the store for maximum sales and visual appeal.

“A competitive price”
People do not always demand the lowest price but there has to be some resemblance of sanity with the pricing. If there is a premium price in your stores there should be some reason for it. Is it image, service, the latest items? Whatever it is you need to have a system in place to allow you to focus on your core competencies and what the customers have come to expect from you. Additionally a good Point of Sale system will show lagging items for them to be investigated for competition that is newer, better, or just significantly cheaper.

“People who enjoyed interacting with customers.”
This is the last thing Woolworths CEO Luscombe states as important and it is one of the more difficult ones to master. This touches on quite a few aspects of business and is not just a software or business tool that you can buy and install. This will have to be an ingrained process that encompasses human resources, compensation, management style, working environment and career progression. We think that you can imagine some of the things that need to be fostered and cared for in your business. Some things a good point of sale or Retail Business software solution can do is make sure that the day to day interactions employees have is easy, enjoyable, and gives them good data quickly. When a customer is buying something or asking for stock information this is one of the few chances most employees will get to interact with a potential customer. Relieving stress and making the employee feel as they have the best tools to do their job is vital. If the employee feels as though this is just another frustrating aspect of their job this will be transferred to the customer who will feel like they are being the problem and they will leave and buy where the overall experience is better.

Creative Computing has systems to help ensure you always have the right products available for your customers. We provide Point of Sale, Inventory Management, Accounting, and General Ledger integrated and accessible from any location.  To find out how we can help you run your business please tell us about your business or visit us at our homepage.

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1. Retailer Woolworth’s to create 7,000 jobs