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                                                                products that once ruled the day, and next, by leveraging
                        ry
               The ve
               The very point of sale                           a deep technology experience to drive innovation and
                            point of sale
                                                                excitement. Beyond that, these tech titans, well-versed
                                                                in regulatory, security and compliance issues, focused
                                                                on helping resellers improve efficiencies and create new
        The new pull-through                                    Leverage technology
                                                                revenue streams in the digital-first era.
        game                                                    Winston Fong, vice chairman of the board at Castles
                                                                Technology, a global technology provider, agreed that the

        By Dale S. Laszig                                       POS manufacturing landscape has significantly evolved in
                                                                the past two decades.
        DSL Direct LLC
                                                                "Originally, the focus was on moving as many terminals as
                   enry Ford's cars were available in "any color   possible through the channel, often with heavy emphasis
                   the customer wants, as long as it's black,"   on price-based promotions," he said. However, in tandem
                   according to Ford's autobiography, My Life and   with technological advances, "leading OEMs have become
        H Work, published in 1922. Eighty years later,          more like technology companies that offer modular,
        merchant level salespeople (MLSs) were saying similar   flexible and customizable solutions. This shift has changed
        things about POS terminals. At a time when POS devices   the game, moving the focus away from pushing terminals
        rolled off assembly lines for quality assurance testing, dai-  to providing solutions that add value and solve specific
        sy-chain downloads and mass deployments, a terminal's   problems for merchants."
        receipt  header was  a primary differentiator.  Countertop
        terminals were a focal point of payments in the early 21st   Distributors have also evolved from transactional, price-
        century. Unlike today, when merchants accept payments   focused enterprises into strategic partners that collaborate
        on phones, tablets and laptops, there were only a few ways   with OEMs and channel partners to create new revenue
        to accept payments back then, and only a few products   streams through subscription service offerings, Fong
        built for that purpose.                                 noted, adding that formerly hardware-centric resellers,
                                                                for example, are leveraging technologies and managed
        POS manufacturers shipped truckloads of  devices to     services. He cited the following examples:
        resellers and designed promotions to help partners "pull   • Cloud-based solutions: Accessing flexible and scalable
        through" products out of warehouses and into the hands     software-based solutions enables merchants to manage
        of ISOs, acquirers and MLSs. The following quarter, they   their businesses more efficiently and cost-effectively.
        would do it all again. The pull-through game was equally
        intense for resellers and manufacturers. Resellers had   • Mobile POS: Integrating mobile POS solutions enables
        to commit to larger and larger shipments to qualify for    merchants to accept payments anywhere, anytime,
        discounts. Manufacturers had to ship those orders by the   flexibility that benefits businesses with dynamic op-
        last day of every quarter. Looking back, I see a race to the   erations and remote workers.
        bottom  that  had  little  to  do  with  added  value,  problem-  • Data analytics: Gaining valuable insights into busi-
        solving or innovating. The pull-through game was all       ness operations helps merchants make informed deci-
        about price.                                               sions and improve overall performance.
        Flip the script                                          • Integration and customization: Integrating POS sys-
                                                                   tems with other business applications, such as account-
        Ford had "famously remarked that the use of the moving     ing and inventory management software, helps busi-
        assembly line allowed for the work to be taken to workers   nesses streamline operations and enhance productiv-
        rather than the worker moving to and around the vehicle,"   ity.
        according to the company's website. Researchers observed
        that the assembly line, with its signature conveyor belt and   • AI and machine learning: Exploring artificial intel-
        distributed labor, reduced Model T production from 12      ligence  and  machine  learning  technologies  can  help
        hours to about 90 minutes.                                 businesses improve fraud detection, enhance customer
                                                                   engagement and personalize the shopping experience.
        Ford flipped the script by bringing work to workers,     • Blockchain: While still in its early stages, resellers and
        and in a similar way, digital technologies disrupted       partners are exploring the potential of blockchain tech-
        commerce by bringing the shopping experience directly      nology in POS systems.
        to customers. When transacting on connected devices or
        in stores and restaurants, today's customers expect speed,   Manage device estates
        convenience and choice, and merchants have upped their   Advanced technologies have made it easier to manage large
        games accordingly. POS manufacturers have mirrored the   populations of connected devices, Fong stated, adding that
        changing shopping paradigm in interesting ways, first by   cloud-based terminal management systems (TMSs) can be
        expanding products and services far beyond countertop
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