October 2018 – Technology POC

File Processing Systems

Posted on October 31, 2018 by blogger

Even the earliest business computer systems were used to process business records and produce information. They were generally faster and more accurate than equivalent manual systems. These systems stored groups of records in separate files, and so they were called file processing systems. Although file processing systems are a great improvement over manual systems, they do have the following limitations:

Data is separated and isolated.

Data is often duplicated.

Application programs are dependent on file formats.

It is difficult to represent complex objects using file processing systems. Data is separate and isolated. Recall that as the marketing manager you needed to relate sales data to customer data. Somehow you need to extract data from both the CUSTOMER and ORDER files and combine it into a single file for processing. To do this, computer programmers determine which parts of each of the files are needed. Then they determine how the files are related to one another, and finally they coordinate the processing of the files so the correct data is extracted. This data is then used to produce the information. Imagine the problems of extracting data from ten or fifteen files instead of just two! Data is often duplicated. In the record club example, a member’s name, address, and membership number are stored in both files. Although this duplicate data wastes a small amount of file space, that is not the most serious problem with duplicate data. The major problem concerns data integrity.

A collection of data has integrity if the data is logically consistent. This means, in part, that duplicated data items agree with one another. Poor data integrity often develops in file processing systems. If a member were to change his or her name or address, then all files containing that data need to be updated. The danger lies in the risk that all files might not be updated, causing discrepancies between the files. Data integrity problems are serious. If data items differ, inconsistent results will be produced. A report from one application might disagree with a report from another application. At least one of them will be incorrect, but who can tell which one? When this occurs, the credibility of the stored data comes into question. Application programs are dependent on file formats. In file processing systems, the physical formats of files and records are entered in the application programs that process the files. In COBOL, for example, file formats are written in the DATA DIVISION.

The problem with this arrangement is that changes in file formats result in program updates. For example, if the Customer record were modified to expand the ZIP Code field from five to nine digits, all programs that use the Customer record need to be modified, even if they do not use the ZIP Code field. There might be twenty programs that process the CUSTOMER file. A change like this one means that a programmer needs to identify all the affected programs, then modify and retest them. This is both time consuming and error-prone. It is also very frustrating to have to modify programs that do not even use the field whose format changed. It is difficult to represent complex objects using file processing systems. This last weakness of file processing systems may seem a bit theoretical, but it is an important shortcoming.

Gift & Loyalty Card Systems – A New Era In Technology

Posted on October 28, 2018 by blogger

A new era in technology for Gift and Loyalty Card Systems has arrived! Is your business caught up in expensive transaction swipe fees and monthly service fees? Would you like to own and control your database of patron information on YOUR computer? Read on.

Remember the old technology? Merchants who want to implement a plastic magstripe gift card and/or loyalty card system must use a credit card processor or a company who used similar, credit card based technology. It was, and remains, a very expensive way for merchants to process these types of cards. The expense comes in the form of transaction swipe fees ranging anywhere from $.08 per swipe to as high as $.35 per swipe as well as additional monthly fees of $40 – $100.

About ten years ago, some technologists started to take a fresh look at this expensive, fee riddled approach. They began to ask, why not use the computer-based technology that many merchants already have? Back then, almost 70% of the merchants in the U.S. had a computer on site. That number has grown substantially since then with the trend towards lower prices for computer hardware and software.

As a result of the research, today a new technology is available to process gift & loyalty cards in a much more cost effective manner that challenges, if not eclipses, the standard credit card technology. Not only is this new pc-based technology cheaper to own and operate, but it has allowed the merchant to own and control their own database of patron information on their own computer(s)! No more transaction swipe fees, monthly fees, database management fees, etc. associated with the traditional credit card based technologies on the market. The new pc-based technology is not limited in form and function as the credit card based technology where some processor owns and controls the patron data for the merchant. With the pc-based approach, the merchant is not limited to just a set number of management reports that he/she has to go to a website to generate often times for a fee. Instead, a report generator is commonly available which allows the merchant to group and sort an almost infinite number of reports with the click of a few buttons a very important tool to allow management to analyze the effectiveness of their card programs and to improve them if necessary. Theres nothing like accurate and instant feedback to make good, informed management decisions!

Local computer-based card systems are not just limited to gift cards and loyalty cards. There is no limit to the card-based applications that can be written into software such as this. A whole suite of card-based functions is available to allow merchants to better market their businesses to their clientele without all the credit card overhead. Examples include: reloadable cash cards, promotional cards, patron refund cards, courtesy comp cards, employee discount cards, etc. So with a local pc-based system, the merchant can expand the use of these popular, money-making cards to many other applications other than just gift & loyalty. One very highly used function is for promotional cards.

Since the merchant has the database of patron names and addresses on their computer, instead of on some credit card processors central server in Des Moines, the merchant can easily send out or hand out cards to their customers prompting them to come into their store(s) to get their card swiped to find out what they won. This is kind of a mystery card promotion where the customer could win e.g. anywhere from $5.00 to $100.00 or perhaps the card is like an electronic coupon card where a percentage off of some goods or services are offered. This has proven to be extremely effective in getting old customers back or also in finding new customers when cards are sent out via a mailing list which can be purchased inexpensively. And inexpensive is the key word. Depending on volume, a mailer with an attached card with a magstripe or bar code and the recipients name and address can be printed and mailed out for $.15 – $.30 each, plus postage. This is certainly a small price to pay to get customers to come through a merchants front doors and who will almost always spend a lot more than that!

When evaluating pc-based card systems, its always best to keep future needs in mind. As a business grows, so will the database of customers who have cards. So its important to choose a commercial strength software product which has database architecture sufficient to handle a large amount of data, for example, Microsofts SQL database. There are some pc-based card systems out there which fall short in this regard and utilize desktop databases like Microsofts Access database. Merchants generally run into problems a couple of years down the road with these types of databases.

Also, for merchants who have more than one store location and/or have independent franchise owners, its important to choose a pc-based card system which has the capability of connecting stores together. This way, a patron can buy a gift card at one store location but have the freedom of using it at other locations. The same holds true for loyalty cards, cash cards, promotional cards, etc. This is usually accomplished by having a high speed internet connection at each participating store and software which can reconcile the transactions in order to determine what stores owe what to what stores. The premiere pc-based card systems will also be able to perform ACH (automated clearing house) functions so that the appropriate dollar amounts will automatically be debited and credited to the appropriate merchant checking accounts. This way, the merchants dont have to write checks to each other and have to do very little to manage their pc-based card systems except just watch the money roll in!

New Blackberry Coming Soon – The perfect Futuristice technology is coming

Posted on October 25, 2018 by blogger

If you want to change your old handset and looking for a new mobile phone then you can choose blackberry as an option that can give you a wide range of fantastic handsets. In todays fast moving life mobile phones have become the first and the major basic necessity of a person. There are several high technology handsets available in market by Blackberry which is grabbing attention of numerous people with its eye catchy looks and features. One can buy Blackberry phones with several leading service providers that will give its customers their dream mobile phone at cheap and affordable rates.

In coming time new blackberry coming soon will give its customers many fantastic and advanced technology handsets that will give its customers experience of more advanced and high technology features. Blackberry Storm 3 is the latest new mobile pone from blackberry which is a coming soon handset from blackberry. This smart new handset has got everything which you want in your dream mobile phone. One can find features like large internal memory of 8 GB which can be expanded with a micro SD card that gives you large storage space up to 32GB. One can also deals with inbuilt camera of 5 Mega Pixel which comes with the resolution of 2592 ? 1944 pixels and with additional features like auto focus Geo-tagging and image stabilization which enhanced your photographs and gives you good quality photographs.

People can also find many latest applications like Digital compass, Document editor (Word, Excel, PowerPoint, PDF), MP3/WMA/AAC+ player, MP4/H.264/H.263/WMV player, Organizer, Voice memo/dial and Predictive text input which makes Blackberry Storm 3 an astonishing handset. So get ready to experience advanced technology handset with Blackberry Storm 3 and user can also find many other fantastic handset that will be coming soon to rock your world with technology.

For more information about Blackberry Torch and Blackberry 8520 Deals visit our mobile shop.

How Sunless Tanning Technology was Perfected

Posted on October 22, 2018 by blogger

With all the promotional hype nowadays about how certain companies have invented a revolutionary way of sunless tanning, the real truth about its history has been lost. Do we call these companies as the pioneers for sunless tanning technology or are they merely innovators who added their own ingredients in perfecting the technology for their own specific purposes? Well, it’s really more like the latter.

In reality, the first sunless tanning lotion was introduced to the market in the 1960s. QT or Quick Tanning Lotion was created by Coppertone to address the demands for a safer and easier way to tan. A television commercial showing a girl and a boy dancing to a catchy tune that says “You get a quick tan with QT! A double tan you see! It tans you anytime, rain or shine, when you use QT!” successfully created an advertising hype for the first ever sunless tanning lotion. (You can watch the video here http://www.encyclomedia.com/video-coppertone_tanning_lotion_.html#moretext). However, the media hype immediately subsided as consumers saw that not only did QT not give them an even and smooth tan that becomes deeper when exposed to the sun’s rays, as the commercial claimed, but it also gave them an embarrassingly orange-ish complexion. This ended the production of the first ever sunless tanning lotion.

Now, like most products, sunless tanning technology emerged again as an answer to the demands of a growing consumer market. During the 1980s, when rumors were flying about that too much exposure to the sun’s ultraviolet rays and too many sessions under indoor tanning beds and lamps can cause skin cancer, the demand for sunless tanning technology rose. Naturally, people were afraid of developing cancer that they tended to look for alternatives to tanning. This was the time when beauty companies came out with a better and more effective sunless tanning lotion. Various companies capitalized on this high demand and production of sunless tanning lotions increased. As the supply increased, the prices also went down, making the product more accessible to the public as it is more affordable.

It has been said that the topical sunless tanning products that we enjoy today, like lotions, creams, sprays and cosmetic bronzers basically employ the technology that was innovated during the 1980s. Companies today just perfected the technology and combined it with various ingredients and components that provide the people with more value for their money. A very good example of this is the anti-aging sunless tanning lotion. Furthermore, practices, like exfoliating and moisturizing, were discovered that could ensure the achievement of a smooth and even tan. In a nutshell, fake tans can now look absolutely natural. What’s more is that it can be achieved at a cheaper price, as opposed to the more expensive sessions in indoor tanning salons.

It can be seen here that with the continuing development of modern technology, all things are possible. The orange tan that started in the sixties is now truly a smooth and even tan that can be achieved at home. This is made possible through the various sunless tanning products available in all major stores and supermarkets.

Looking To Sell Your Information Technology Company – Avoid Some Common Mistakes

Posted on October 20, 2018 by blogger

Selling your information technology business is the most important transaction you will ever make. Mistakes in this process can greatly erode your transaction proceeds. Do not spend twenty years of your toil and skill building your business like a pro only to exit like an amateur. Below are ten common mistakes to avoid:

1.Selling because of an unsolicited offer to buy – One of the most common reasons owners tell us they sold their business was they got an offer from a competitor or more often these days, an Indian company looking to buy a customer base in the United States. If you previously were not considering this business sale, you probably have not taken some important personal and business steps to exit on your terms. The business may have some easily correctable issues that could detract from its value. You may not have prepared for an identity and lifestyle to replace the void caused by the separation from your company. If you are prepared, you are more likely to exit on your own terms.

2.Poor books and records – Business owners wear many hats. Sometimes they become so focused on the next version release that they are lax in financial record keeping. A buyer is going to do a comprehensive look into your financial records. If they are done poorly, the buyer loses confidence in what he is buying and his perception of risk increases. If he finds some negative surprises late in the process, the purchase price adjustments can be harsh. The transaction value is often attacked well beyond the economic impact of the surprise. Get a good accountant to do your books.

3.Going it alone – The business owner may be the foremost expert in GUI interfaces, but it is likely that his business sale will be a once in a lifetime occurrence. Mistakes at this juncture have a huge impact. It is especially critical to have a good M&A advisor if you are selling an information technology company because these companies do not fit traditional company valuation metrics. If an owner does not get the right representation and have several qualified buyers that covet his technology, he possibly can leave a lot of money on the table. Selling a technology company is complex. Is it a better deal to structure some of the transaction value as an earn out based on post acquisition sales performance?

Do you understand the difference in after tax proceeds between an asset sale and a stock sale? Your everyday bookkeeper may not, but a tax accountant surely does. Is your business attorney familiar with business sales legal work? Would he advise you properly on Reps and Warranties that will be in the purchase agreement? Your buyer’s team will have this experience. Your team should match that experience of it will cost you way more than their fees.

4.Skeletons in the closet – If your company has any, the due diligence process will surely reveal them. One of the key issues in information technology companies is the clear title to intellectual property. Are your employee agreements well written? If you hired outside programmers, was their agreement specific in ownership of their output? The concern of the buyer is that once it becomes public that the deep pockets company is owner, previous disgruntled employees or contractors may resurface looking to bring legal action.

Before your firm is turned inside out and the buyer spends thousands in this process and before the other interested buyers are put on hold – reveal that problem up-front. We sold a company that had an outstanding CFO. In the first meeting with us, he told us of his company’s under funded pension liability. We were able to bring the appropriate legal and actuarial resources to the table and give the buyer and his advisors plenty of notice to get their arms around the issue. If this had come up late in the process, the buyer might have blown up the deal or attacked transaction value for an amount far in excess of the potential liability.

5.Letting the word out – Confidentiality in the business sale process is crucial. If your competitors find out, they can cause a lot of damage to your customers and prospects. It can be a big drain on employee morale and productivity. What if your head of systems development gets skittish and entertains offers from other companies and leaves while you are selling? The buyer wants your top people and they represent a significant portion of your future transaction value. If word you are for sale gets out, your suppliers and bankers get nervous. Nothing good happens when the work gets out that your company is for sale.

6.Poor Contracts – Here we mean the day-to-day contracts that are in place with employees, customers, contractors, and suppliers. Do your employees have non-competes, for example? If your company has intellectual property, do you have very clear ownership rights defined in your employee and contractor agreements. If not, you could be looking at meaningful escrow holdbacks post closing. Are your customer agreements assignable without consent? If they are not, customers could cancel post transaction. Your buyer will make you pay for this one way or another. If you are tempted to sign that big deal at bargain rates to pump up your business selling price, think again. Locking in a contract at below market rates could actually cause a discount to your selling price.

7.Bad employee behavior – You need to make sure you have agreements in place so that employees cannot hold you hostage on a pending transaction. Key employees are key to transaction value. If you suspect there are issues, you may want to implement stay on bonuses. If you have a bad actor, firing him or her during a transaction could cause issues. You may want to be pre-emptive with your buyer and minimize any damage your employee might cause.

8.No understanding of your company’s value – Business valuations are complex. A good business broker or M & A advisor that has experience in your industry is your best bet. Business valuation firms are great for business valuations for gift and estate tax situations, divorce, etc. They tend to be very conservative and their results could vary significantly from your results from three strategic buyers in a battle to acquire your firm. Where a services business may sell for between 75% and 100% of last years sales, for example, technology companies are all over the map. One of our clients had a coveted piece of software technology and was able to get 8 X last years sales as his purchase price. We certainly could not have and would not have predicted that at the start of the engagement, but what a nice surprise. When it comes to selling your company, let the competitive market provide a value.

9.Getting into an auction of one – This is a silly visual, but imagine a big auction hall at Sotheby’s occupied by an auctioneer and one guy with an auction paddle. “Do I hear $5 million? Anybody $5.5 million?’ The guy is sitting on his paddle. Pretty silly, right? And yet we hear countless stories about a competitor coming in with an unsolicited offer and after a little light negotiating the owner sells. Another common story is the owner tells his banker, lawyer, or accountant that he is considering selling. His well-meaning professional says, “I have another client that is in your business. I will introduce you.” The next thing you know the business is sold. Believe me, these folks are buying you business at a big discount. That’s not silly at all!

10.Giving away value in negotiations and due diligence – When selling your business, your objective is to get the best terms and conditions. I know this is a shocker, but the buyer is trying to pay as little as possible and he is trying to get contractual terms favorable to him. These goals are not compatible with yours. The buyer is going to fight hard on issues like total price, cash at close, earn outs, seller notes, reps and warranties, escrow and holdbacks, post closing adjustments, etc. If you get into a meet in the middle compromise negotiation, before you know it, your Big Mac is a Junior Cheeseburger.

Due diligence has a dual purpose. The first is obviously to insure that the buyer knows exactly what he is paying for. The second is to attack transaction value with adjustments. Of course this happens after their LOI has sent the other bidders away for 30 to 60 days of exclusivity. If you don’t have a good team of advisors, this can get expensive

As my dad used to say, there is no replacement for experience. Another saying is that when a man with money and no experience meets a man with experience, the man with the experience walks away with the money and the man with the money walks away with some experience. Keep this in mind when contemplating the sale of your business. It will likely be your first and only experience. Avoid these mistakes and make that experience a profitable one.