Monday, May 29, 2017
Is Customization Right for your Small Business?

Like all computerized cash register systems, Microsoft Dynamics Retail Management System and Point of Sale are not always a perfect fit out of the box. That's where we come in. RITE is one of a very few premier customization developers for POS and RMS, having created many customizations that have made their owners a return on investment many times over.

Many businesses are unsure about if and why they need customization, so when considering it you should put it in terms of return on investment. Let's say you identify a bottleneck during the check-out process.  When a given situation occurs, customers have to wait and are getting irritated. You think to yourself, there has to be a better way. Guess what, there probably is.

Ok, you come to us and tell us about your situation.  We reply with a solution that will be able to turn a customer's wait during the above situation from 4 minutes to 1½ minutes. Well, great we can deliver you a solution, but is it really worth it?  Let's take a look.

First, figure out where value is being added. In our example, customer satisfaction is being increased, labor will be saved because a process was automated, and employee moral will be increased because of less upset customers.

Next, assign a value to the components and gather your relevant information. Here we'll say employee labor is $10 per hour and customer satisfaction is worth $1 for every minute less they have to wait in line. We then find that we had 500 customers last year that encountered the problem situation. You also note that there is more than one customer in line in 1 out of every 5 times the situation happens, so additional customers have to suffer. Finally, let's say the second customer has to wait half as long as the first and the third has to wait half as long as the second, etc.

Lastly, do the math:

Before Customization After Customization
500 X 4 = 2000 minutes for both customer and clerk 500 X 1.5 = 750
500 X (1/5) X (4 X (1/2)) = 200 minutes for second in line customers This will almost be completely eliminated, because by the time the second customer lined up, they would already be done!
500 X (1/5) X (4 X (1/4)) = 100 minutes for third customer Same as above
Total customer waiting = 2300 minutes per year

Total Employee Labor = 2000 minutes per year
Total customer waiting = 750 minutes per year

Total employee labor = 750 minutes per year
Total Cost: 2300 X 1 + 2000/60 X 10 = $2,633.33 Total Cost: 750 X 1 + 750/60 X 10 = $875

 

Total Cost of Customization $1,000
Total Savings = $2,633.33 - $875.00 $1,758.33
Return On Investment (ROI) - you've almost doubled your money in the first year.

 

RITE's number 1 goal is ensuring our customer's see a return on their technology investment!

Microsoft Dynamics Retail Management System

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