Interview • 02.02.2011

Mobile equipment is a driver of innovation in retail

Interview with Rainer Gläß, CEO of GK Software AG

Rainer Gläß is the G in GK Software. Along with Stephan Kronmüller, presently Chief Technical Officer, he founded the company in 1990. Listed on the stock exchange since 2008, it took over Solquest in 2009. Today GK Software is a leading European developer of standard software for chain store companies. Among others, customers include Kaufhof, Douglas, Coop in Switzerland, X5 in Russia as well as the home furnishings retailer JYSK Nordic. According to the company, its software is used in more than 30 countries with approximately 80,000 installations in more than 20,000 stores.

GK Software, Torex and Wincor are the big guys in the POS- and retail store management software. There are also several smaller providers aside from them. How is the German market going to develop and how big is your share?

Regardless of the economic situation, the German retail market is a very stable business environment. For 2011 we expect the upward trend we saw last year to continue. Naturally this is also going to have an impact on IT investments. Since there are no dependable numbers in terms of the market for retail store management software, this question cannot be reliably answered. From our point of view we can only comment that the number of our installations in a stable overall environment in the past four years more than doubled and that we expect a continuation of this development.


Are overseas markets comparable to Germany?

Each retail market has its own characteristics, so that retail store management software cannot be rolled out in a new country just like that. Fiscal laws, tax regulations, a special form of customer loyalty programs or also rounding rules need to be considered. We currently cover over 30 countries with a solution that by its design is ideally geared to quickly be adapted to country-specific requirements – regardless whether this pertains to installations in China, Bosnia or the US.


Which markets are interesting?

GK Software is both active in developed markets like Great Britain, the US, Scandinavian countries and the German, Austrian and Swiss area, as well as the fast growing markets, for example Russia. Since we are not subject to any technological limitations, there virtually is no restriction to specific markets besides a resources-oriented focus on specific target markets.


Over the past two years you benefited from your new customer Lidl and the conversion of Plus stores into Netto stores. Are the large growth figures now a thing of the past?

We are very proud to have obtained and implemented numerous major projects in the past years. Yet the markets in Germany, Europe and North America still have huge potential, so that we feel confident that we will also have above-average potential for growth in the future with our permanently increasing variety of solutions to offer.


Let’s take a look at the other end of the spectrum: how big does a retailer need to be for a software conversion to be beneficial?

A minimum size for projects cannot be determined by rule of thumb, since there are many factors like for instance the number of systems and branches, extent and project scope and project-specific challenges that play a role. Besides large and internationally operating retailers, GK Software AG therefore also has numerous medium-sized customers in its customer portfolio. I am mentioning Mayers Markenschuhe, Ludwig Beck in Munich or the FC Bayern München Soccer Club with its fan shops here as a few examples.


POS, stores, inventory management – software strongly intervenes in the structures of a company. How do you get your foot in the door?

No retailer replaces its IT systems on a whim. Normally there is a clear need for investment. Among other things, this can be developing new business processes, reduction of operating- and development expenses or the accelerated implementation of new requirements. Key managers of the companies continuously analyze the relevant number of service providers – like for example at the EuroShop – and for concrete requirements choose the appropriate supplier after intensive assessment of all alternatives. Of course excellent references, unique technological selling points or a comprehensive range of products are a great ticket for the relative selection processes.


You are not part of dm any longer. Why does the drugstore chain prefer to use an in-house solution?

We cannot answer this question, because this was dm’s decision.


Since 2009 SAP distributes the competitive product by GK Software next to its own Epos solution. How is the collaboration coming along?

We collaborate intensely and very confidently with SAP. Together we are implementing an important subproject within the largest retail IT project in Europe at Edeka. Obtaining this project by SAP and the partnership with GK Software AG is a huge – also internationally duly noted – success.


Mobile is one of the trends at the next EuroShop. PDAs made inventory management mobile. What are the next steps?

We view the trend toward mobile equipment as one of the most important drivers of innovation in retail sales. This illustrates processes in the store as well as management information at headquarters on any number of mobile devices – from MDE to iPads and iPhones. We already see numerous innovations here that make processes faster, leaner and more efficient. At the same time the interaction with the customer is also getting more and more mobile. Mobile couponing, mobile payment and mobile marketing are the top trends in the area of customer retention. Those who are present with the right marketable solutions early on will have a considerable competitive advantage if service providers consolidate. We believe GK Software AG is very well positioned in both areas.


Customers also have mobile equipment. How are smartphones changing the POS landscape and store controlling?

The customer who wants this will very soon be able to redeem mobile coupons and pay at the check-out counter with his phone or smartphone. Our solutions already offer the corresponding technological prerequisites for this and together with our partner valuephone we are able to implement the entire chain from mobile advertising to mobile couponing all the way to mobile payments.


Years ago POS manufacturers had their own proprietary software. By now there are compatible programs that let retailers combine different checkout counters. You are now developing something similar with Bizerba for scales. What kind of potential do you see there?

With the open PC scales particularly food retailers are going to break new ground. In place of isolated solutions, GK Open Scale offers the benefit of adopting the same software for the checkout counter and the scale. Complexity is thus reduced, data supply and data removal are considerably simplified and costs effectively lowered. What’s more, integrated promotions can also be implemented, if the scale receipt already prints the matching coupon for a ready-to-serve meal.


What do you expect from the next EuroShop? What can visitors expect from you?

EuroShop with its International focus will definitely yield us numerous interesting customer contacts. We will show our entire line of solutions and know already, especially our new solutions StoreWeaver Enterprise Edition and Open Scale, but also the new ergonomic GUI retail store solution which we jointly developed with design agencies, will create much interest. EuroShop is an excellent chance to showcase our solutions and we look forward to our days in Düsseldorf.


Interview by René Schellbach, EuroCIS
 

Supplier
Logo: GK Software SE

GK Software SE

Waldstraße 7
08261 Schöneck/Vogtland
Germany

related articles:

popular articles:

Thumbnail-Photo: Changing markets: embracing disruption to harvest opportunity...
18.06.2019   #digitization #event

Changing markets: embracing disruption to harvest opportunity

Reporting from the first annual Retail & Brand Experience World Congress in Barcelona

More than 200 industry insiders highlighted the many challenges facing the retail sector today in interesting talks and lectures.Topics included the customer experience, the use of technologies, digital media, omnichannel strategies, personalization ...

Thumbnail-Photo: A simple, fast, intuitive payment experience...
02.09.2019   #cashpoints #epos components

A simple, fast, intuitive payment experience

Are POS systems all about a perfect and versatile device?

"The perfect all-rounder POS device that’s ideal for all retail applications has not been created yet," says Oliver Kapahnke Managing Director at GLORY Deutschland. "But that’s OK.” In this interview, he talks ...

Thumbnail-Photo: Internal communication via app at Modehaus Ramelow...
03.06.2019   #personnel management #app

Internal communication via app at Modehaus Ramelow

Mobile chat works as a bulletin board

What's new at Modehaus Ramelow? The fashion retailer’s employees can check PIA - and share information to their heart’s content. PIA is an app for "private information exchange".More and more internal communication ...

Thumbnail-Photo: Innovative ICA store triples revenue
22.08.2019   #electronic shelf labels (ESL) #price labelling

Innovative ICA store triples revenue

Automatic price updates and product information at the shelf

Since ICA merchant, Jan Sikström, took over the ICA Ettan store in Sundsvall (Sweden) in 2016, he has almost tripled the turnover from SEK 15 million to SEK 40 million. Today, the store has 15 employees and approximately 5,000 different items ...

Thumbnail-Photo: The Medial Customer Journey at the POS
29.08.2019   #online trading #pos marketing

The Medial Customer Journey at the POS

Permaplay offers different concepts for a powerful and sales-promoting POS communication

More and more people are buying more and more products in more and more places. The exciting question “Who will win: stationary retailing or online trading?” has been discussed for years. Permaplay Media Solutions Managing Director ...

Thumbnail-Photo: Digital Signage Summit Europe - 30 % discount...
07.06.2019   #customer analysis #marketing

Digital Signage Summit Europe - 30 % discount

Many of the world’s foremost digital signage experts, thought leaders and leading technology and service suppliers will come together to present a unique mix of keynotes, conference channels, awards and exhibition showcase.

Now in its 14th year, DSS Europe is the leading European strategy event exploring the business and technology of Digital Signage and DooH - here is a 30% code for our readers – 415839The theme of this year’s conference is ‘Customer ...

Thumbnail-Photo: Sales assistant Remy talks about strange customers and emotional...
25.07.2019   #customer satisfaction #pos marketing

Sales assistant Remy talks about strange customers and emotional decisions

An interview with a fictitious robot that works in retail

There is a lot of hype surrounding humanoid, socially intelligent robots and what they can do. They are interviewed, filmed and tested. Oftentimes, it’s to find out how consumers feel about the machines and how they are accepted by users and ...

Thumbnail-Photo: When the product becomes the POS
19.08.2019   #mobile payment #pos systems

When the product becomes the POS

“Mobile-first” or the future of the Point of Sale

The classic Point of Sale means physical sales areas including a terminal, cash systems and queues. But this traditional image is changing. Nowadays many customers in brick-and-mortar retail outlets expect the same experience as online and require ...

Thumbnail-Photo: Introducing a new, powerful mobile POS in Posiflex’s MT series...
25.06.2019   #epos systems #cashpoints

Introducing a new, powerful mobile POS in Posiflex’s MT series

MT-5310W from Posiflex combines the mobility of a tablet with the functionality of a fixed POS terminal. .

Today’s customers have higher expectations than ever when it comes to service. To meet and exceed customers’ ever-growing expectations, Posiflex is pleased to present MT-5310W, the latest addition to the popular MT series: a hybrid ...

Thumbnail-Photo: drs//POS – The POS system for many check-out situations...
13.09.2019   #pos systems #cashpoints

drs//POS – The POS system for many check-out situations

With the POS system developed by Superdata you are put in the picture

The POS acts as an ear in the store. It affects how timely, and with what information, decision makers at the head office are in a position to assess developments in the store and are able to respond appropriately to the situation.With our POS ...

Supplier

Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden
Superdata GmbH
Superdata GmbH
Ruhrstr. 90
22761 Hamburg