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2012 IBM Retail User Group Conference Overview

VIEWS: 15 PAGES: 12

									Volume 28 No. 3
September, 2012

                              2012 IBM Retail User Group
                                 Conference Overview
                     By Akadius Berry, Toshiba Global Commerce Solutions

Over 425 participants attended this year’s IBM Retail                the USA. IRUG engaged industry experts to
User Group (IRUG) 35th Conference, held in Las Vegas,                develop a program not only for the 2012
NV on May 20 -23, 2012, including many of retail’s                   conference, but put together the resources to
leading association of U.S. and international IBM retail             address this challenging issue with a Focus
systems users, and IBM retail solution providers. The                Group to assist the IRUG retail membership
conference delivered the latest education, experiences               for years to come.”
and information in key areas of mobility and mobile
payments, EMV for the USA, couponing, delivering a           The annual conference brought together an impressive
compelling customer experience and challenges in spe-        group of retail professionals and featured key note
cialty retailing – all focused on the theme, “Keeping Pace   presentations by leading retailers and industry experts
with Retail Evolution.                                       including:

Here are just a few of the many positive comments from       1   IBM Retail Store Solutions CEO Steve Ladwig,
the Conference:                                                  who outlined IBM executive perspectives.
    1    “The 35th annual conference marked my first         2   Peter Hazlehurst, Google’s global head of pay-
        year as president of IRUG, and I was pleased             ments, product management, who described the
        that we adhered to IRUG’s mission to provide             future of mobile payments.
        members the networking partnership for the           3   John Rohland, BJ’s Wholesale Club’s AVP club
        sharing of information, experiences and best             systems, who discussed evolution of the coupon
        practices; enabling the advancement of retail            in 2012 and beyond.
        solutions to solve our common business               4   Jim Clendenen, Harris Teeter’s chief information
        problems,” said Ron Ferri, President of IRUG.            officer, who focused on developing compelling
        “In addition to maintaining our 35 years of              customer experience and technology.
        traditional - best in industry standards, we         5   Daniel L. Hopping, Next Retail Group’s president
        added value for our membership with the                  and CEO, who talked about the future of social
        focus on EMV and the new technical educa-                network communities.
        tion as well as introducing a focus on spe-
        cialty retailers”.                                   In addition to main tent presentations, the conference
    2 Steve Braceland, CEO and President, STJ                offered two super sessions and 34 elective sessions.
        Retail said, “I was pleased with the way IRUG
        addressed the need for retailer education with
        the industry announcements regarding Chip &
        Pin Technology and the adoption of EMV in
                                                                                                 (Continued on page 3)
                               Message from the President

                           Thank you to everyone who                continue to bring you all of the latest breaking news
                           attended and participated in the         regarding EMV. We have formed a steering committee of
                           35th annual conference in Las            retail members to help guide and plan future meetings.
                           Vegas. With over 425 in atten-           The next meeting will be held on October 11 & 12 in
                           dance, this was the most suc-            Raleigh, NC. The steering committee has an agenda
                           cessful conference to date. The          packed full of the latest information, timelines, tasks,
                           board of directors are already           roadmaps, white papers, and best practices as recom-
                           hard at work making plans for            mended by retailers who have been through the migra-
                           the next year’s conference               tion. You don’t want to miss this informative meeting, so,
                           which will be held April 21st            plan to attend now.
                           through April 24th in Anaheim
                           California so be sure to save            IRUG introduced a Technical Education Series at the
                           the date on your calendar!               35th conference. Many of you that I spoke with thought
                                                                    that the series was a huge benefit to you and your
Last May, Karen Paramore of Pier 1 Imports retired from             organization. I am happy to say that 18 members com-
the IRUG board after 20 years of service. I would like to           pleted 3 or more of the sessions and received a diploma.
thank Karen for all of the time that she devoted to the             Since this series was so successful, we are planning to
group over those years. The board will miss Karen’s                 conduct the same series via webinar. The webinars will
wisdom, insight, and her willingness to jump in and help            be open to any employee of any retailer who is an IRUG
with any task. We wish Karen all of the best with her               member. The session would be great for Help Desk
future endeavors and hope to see her at future confer-              employees, new hires, or anyone who could benefit from
ences.                                                              receiving more knowledge. Look for more information in
                                                                    the near future on when the sessions will be held and how
We are always on the search for individuals who would               to sign up.
like to serve on the board. Candidates must have a strong
passion to carry on the tradition of the group while                For over 35 years the strength of the IBM Retail User
bringing new ideas to help us to continue to grow. If you           Group conference has been the relevance of topics, the
would like more information, or are interested in joining           quality of education received, the quality of presenta-
the board, please reach out to any board member or our              tions, the professionalism of our speakers, and the
administration office via phone at 440-238-5880, or via             opportunity to network with our peers. The board is hard
email at issug@roadrunner.com.                                      at work, preserving these strengths, and planning the
                                                                    agenda for the 36th annual conference. Please get your
It is now official! The transition of the RSS business to           budget requests in soon, and plan to join us for another
Toshiba TEC has been completed for the US, Canada,                  can’t miss retail event!
Mexico, and Australia, and a new company — Toshiba
Global Commerce Solutions, Inc. — has been formed.                                  36th Annual Conference
As stated in the past, the user group will continue to exist,                         April 21 - 24, 2013
will continue to grow, and will remain the must-attend
retail event of the year. We are currently in the process                         Marriott Anaheim <http://
of finalizing our new name and logo. We will be announc-                       www.marriottanaheimhotel.com/>
ing the changes shortly, so stay tuned.
                                                                    Anaheim, CA
EMV is one of the biggest projects that we as retailers are
going to face over the next 2 to 3 years. At the conference         We hope that you enjoyed and benefited from the 2012
in May, IRUG introduced the first ever EMV Focus Group              conference and hope to see you again in April.
for retailers. The inaugural meeting set out on a mission
to begin educating our retailers on what EMV is, why it is          Best Regards,
recommended that each of our companies implement it,                Ron Ferri, President
and what the tasks and timelines for each will be. This             IRUG
meeting was a huge success. As a result, IRUG will




                                                                2
    2012 IBM Retail User Group Conference Overview
                                                 (continued from page 1)


Super Sessions                                                   Elective Sessions

                                                                 A total of thirty Elective Sessions were presented by
                                                                 Retail Members, Associate Members, and IBM, ad-
                                                                 dressing a large spectrum of topics of interest selected
                                                                 in a survey of the membership. Topics included mobility,
                                                                 sessions on payment, marketing and strategy, store
                                                                 infrastructures, digital couponing, outsourcing, scanning
                                                                 technologies and standards as well as IBM topics on
                                                                 modular self checkout, loss prevention, dynamic store
                                                                 merchandising, loyalty solutions, research in retail,
                                                                 smarter consumer research, smarter checkout and more.

                                                                 Birds of a Feather sessions - Lunch & Learn:
1. Not Just Another Channel: Transforming Stores                 In addition to the standard presentations “Birds of a
in a Cross-channel World:                                        Feather” sessions were held during lunch, Retailers and
This Super Session focused on cross channel innova-              associates gathered at pre assigned tables for informal
tions happening in the store and was hosted by John              discussions relating to pre-determined topics, a tradi-
Gaydac, VP of WW Retail Store Solutions Sales at IBM.            tional favorite of the group. The 2012 topics included;
This panel included Raymond Auger, VP Retail Sys-                Coupon Fraud, Techie Talk, Security, Mobile and Alter-
tems, CVS Caremark; Brian Kilcourse, Managing Part-              nate Payments, Cloud and IBM Feedback.
ner, RSR Research and Tadd Wilson, Strategy Consultant,
IBM.                                                             Focus Groups
                                                                 The Conference also continued its tradition of offering in-
2. The Challenges Facing Specialty Retailers:                    depth Focus Groups with its IBM POS Application and
This Super Session focused on how specialty retailers            Self Checkout Focus Groups, held immediately following
can transform their stores to enable a more personalized         the conference and attracting strong attendance.
cross channel shopping experience, and was hosted by
IBM’s Ken Duffy, Marketing Manager. The panel in-
cluded Gene Cornell, President, Cornell-Mayo Associ-
ates, Marty Dempsey, VP of IT, J. Crew, Kelly Hewitt,
VP Store & Corporate Systems, Stage Stores, Inc. and
Eileen Mahoney, Group VP Retail Technology, PVH
Group.                                                                     Mark Your Calendar
3. The Mobile Customer and Connectivity Is
Reshaping the Retail Industry and how Retailers                        36th Annual Conference
stay Competitive:
This Super Session, was hosted by Frank Riso, Sr.
                                                                               April 21 - 24, 2013
Director, Global Lead Retail Industry at Motorola. This                            Anaheim, CA
inter-active panel of industry experts included Dennis E.
Blankenship, Managing Principal, Retail, Verizon Enter-
prise Solutions, Richard E. Mader, Executive Director,                       at the Anaheim Marriott
ARTS, Andrew B. Morris, Director, Market Platform
Dynamics, Don Kingsborough, Vice President of Retail                       for more information visit us at
Services, PayPal and Will Roche, Senior Vice President,                         www.IBMretailug.org
Raymark.




                                                            3
                  IRUG’s EMV Fall Focus Group Meeting
                        October 11 – 12, 2012 in Raleigh, NC.

Hello Fellow IRUG Members!                                       So please take a moment and register to join us in
                                                                 October and find out what you need to know in order to
You know, if there’s anything that remains constant, it’s        plan and implement EMV payment technology in your
CHANGE! And speaking of change, the migration to                 company. I look forward to seeing you there! http://
EMV payment technology poses significant changes                 www.ibmretailug.org/
and challenges to US Retailers.
                                                                 Kelly Hewitt
But take heart! With the proper planning and early               EMV Focus Group Chairman
preparation, Retailers can develop and implement the
required EMV changes successfully. However, Retail-
ers need to act now!

To help Retailers meet these challenges, the IRUG EMV
committee members (retail members from Scheele Inc.,
Wakefern, PVH Corp, GFS, Stage Stores Inc., Walgreens,
and Giant Eagle) have been working to provide a second
IRUG-EMV Retailer focus group meeting and workshop
October, 11 – 12, 2012 in Raleigh, NC at the North
Raleigh Hilton.

Successful migration to EMV payment technology will
require close partnerships between the Retailer, Acquirer,
PIN pad provider and Software provider. Retailers will
need to identify and establish a clear understanding of
the changes related to each area of their payment
system. In some cases, new hardware equipment, such
as PIN pads, may be required in addition to software
changes. Careful planning now will help Retailers de-
velop a work plan and timeline accordingly. The IRUG
EMV Focus Group is working to help Retailers with this
endeavor.
                                                                         Become a Member
Topics to be covered at the October meeting will include
a deep-dive session on the EMV Roadmap, panel                       Retail Membership
                                                                    Annual Dues: $195
discussions with PIN pad vendors, Acquirers and Brands,
a Lessons Learned discussion, Q & A with the Stake-                 Associate Membership
holders and an introduction to mobile payments with                 IBM Business Partners
EMV. Additionally, there will be exhibits by Stakeholders           Annual Dues: $395
at the reception for individual discussions.
                                                                    Membership includes:
                                                                    •  Access to member directory
We’re very excited about the October EMV meeting and                •  Ability to pay dues online
look forward to the information sharing and networking              •  Acess to forum
that IRUG is known for. Think of the networking potential           •  Ability to register for conference online
- where else can you find other Retailers, acquirers, PIN
pad providers, Brands, Software providers in the same                        Apply online at
room?
                                                                           www.IBMretailug.org



                                                             4
                                       The Partner Pavilion
    IBM and Toshiba TEC create Toshiba Global Commerce Solutions —
         the world’s leading integrated in-store solutions company
                      By Akadius Berry, Toshiba Global Commerce Solutions

On April 17, 2012 IBM announced that Toshiba TEC, a               prise and the store. Specifically, Toshiba Global Com-
subsidiary of the Toshiba Group, would acquire IBM                merce Solutions will deliver innovative and valued solu-
Retail Store Solutions (RSS). The acquisition of opera-           tions to meet the needs of tomorrow’s consumers, such
tions in the United States, Canada, Mexico and Australia          as:
is now complete with “Toshiba Global Commerce Solu-                    1 Seamless point of sale and store solutions that
tions” as the new company name, and Steve Ladwig as                        power clients to delight the smarter consumer.
President and Chief Executive Officer. A second “wave”                 2 Store-to- store and cross-channel solutions that
of closings will cover the remaining countries where the                   enabling consumers to perform in stores a full
company conducts business and is expected to be                            range of transactions and interactions.
completed in the fourth quarter.                                       3 Flexible, optimized solutions for individual stores,
                                                                           based on the retailer’s requirements and needs
With the final closings, Toshiba Global Commerce Solu-                     for personalized customer service, that enhance
tions becomes the world’s leading integrated in-store                      the evolving retail store environment.
solutions company, uniquely positioned to deliver on a                 4 Store solutions built on a store infrastructure with
single promise — to give clients the power to delight their                sustainable IT costs and reduced complexity via
customers in every retailing interaction.                                  shared data and common services that also
                                                                           eases pressure on IT staff across channels and
Toshiba Global Commerce Solutions is currently fo-                         allows retailers to focus on other high-value
cused on providing a smooth transition and business                        priorities.
continuity with clients, business partners and other
stakeholders, while also eagerly embracing opportuni-             “We are especially pleased that the IRUG community is
ties that leverage the joint 80 years of RSS and Toshiba          embracing Toshiba Global Commerce Solutions,” states
TEC retail industry expertise. The combined strength of           John Gaydac, Executive VP, Global Sales and Profes-
the two companies includes proven technology installed            sional Services.” Our membership in IRUG helps sharpen
in the top global retail establishments, industry recogni-        our view of the retail landscape and enables us to hear
tion for innovation and development leadership, as well           and learn from some of the top minds in the business.”
as world-class hardware, software, services, application
solutions, and experienced people.                                Together with an extensive Business Partner commu-
                                                                  nity, Toshiba Global Commerce Solutions is looking
Many synergies are derived from the transaction, such             forward to making retail history. The National Retail
as accelerating the development of new products and               Federation (“NRF”) Big Show in January 2013 will be the
sets of solutions which meet each region of the world’s           “coming out party” with our new branding featured through-
specific requirements. This includes expanding the go to          out our main floor booth, meeting rooms, and a presence
market capability and focus on segments such as spe-              in the IBM and business partner booths.
cialty and hospitality. Implementing Toshiba TEC’s proven
“One Stop Solution” will help customers as they expand
new store developments worldwide. It provides a sup-
porting framework of services that range from planning to
maintenance. Utilizing Toshiba TEC’s deep knowledge
and expertise in the document solution business will help
expand the printing solution business. I would suggest
using the 1st 4 synergies in the FAQ # 54…and ordering
the 2nd about partnering with IBM leads to this next
paragraph.

As an IBM Premier Business Partner for Smarter Com-               “I believe our move to Toshiba TEC,” says Steve Ladwig,
merce, the Smarter Commerce agenda is the very                    “will unlock amazing new possibilities for our clients –
essence of Toshiba’s new thinking —in both the enter-             and for shoppers everywhere.”



                                                              5
                              Social Media as a Retail Trend
                                        By Dan Hopping, Next Retail Group

I believe that the primary trend in retail today is complexity.       late is a losing proposition. My definition of social media
Of course, in each of the last 40 years we complained                 in this case includes social networks, apps like ups(?)
about how complex retail had become. The first electronic             code lookup and mobile payments.
POS systems in 1973 seemed unbelievably complex
with telecommunications, scanning, price lookup, delayed              Everyone seems to be trying to make money off social
data maintenance, and such. Everything is relative.                   media and over two dozen companies are trying to get
Each year brings new and more complexity than the                     rich by inserting themselves between the consumer and
previous year and we seem to have fewer resources each                the retailer on each sale. Since the consumer doesn’t
year to deal with it. This year’s biggest complexity                  want to pay more to use the new technologies, that
seems to revolve around the wired consumer. Pervasive                 means that these companies think the retailer should pay
broadband, even to the phone, has caused a significant                the fees. I’m not aware of any retailer who sees the
modification in the consumer’s buying habits. Our                     humor in this.
society is fast becoming centered on our mobile devices.
                                                                      Social networks like Facebook have evolved signifi-
Many consumers use brick and mortar retailers such as                 cantly in a very short period. To take Facebook as an
Best Buy as immersive catalogs, grilling the employees                example – it took advantage of the recent advances in
for information, handling the products and then buying                consumer technology to build its user base to over 900
on-line to save the sales tax. They have much more                    million people. (There are only 300 million people in the
information on products than the store employees and for              US and that counts young children and the elderly.) Over
many products, the store is not so important. I don’t think           425 million of these people are mobile users and new
the store will ever be dead, but for some categories, it              phones with cameras are helping to provide over 250
might be wounded. Amazon has an interesting business                  million photos to be uploaded to Facebook each day.
model with Amazon Prime. For an annual fee, a person                  Think about that a minute - 250,000,000+ per day. I think
can have ‘free’ second day delivery all year. Never mind              Facebook’s problems started when they changed their
that the fee eats up the savings for most people – the                format, added too many ads and tried to make a lot of
consumer has mentally unbundled the fee and thinks just               money from their members. The games got old and the
about the ‘free’ second day delivery. Emotion is still a              novelty wore off. As I reported in May, I think Facebook
major factor in the consumer’s mind and delivery to the               will be displaced by the next big thing within two to three
door in two days now beats going out to buy and dealing               years.
with traffic, gas prices and parking.
                                                                      Twitter has grown to over 500 million accounts and is
And speaking of the consumer mind and emotion, I want                 adding about a million accounts each day. However the
to talk about the rise of electronic social media commu-              most popular tweets last spring were Lady Gaga and
nities and how they have drastically increased retail                 Justin Bieber with a Japanese anime cartoon film getting
complexity. Social communities seem to be in our DNA                  more tweets than the Superbowl. This kind of defines the
and have been around since before we were living in                   audience. Even with that, Twitter is the most analyzed
caves, but only in the last few years have our personal               of the social media venues.       Twitter is now letting
communities and near infinite knowledge been con-                     marketers target ads to tweeters based on the interests
stantly at our fingertips. We need approval and validation            that are revealed in their tweets. I think this will hurt
in real time and are getting this with mobile broadband               Twitter in the long run the same way it hurt Facebook.
and social media. Several studies have shown that this
is not just a phenomenon of the well-to-do but of most                LinkedIn has a following of only about 170 million (‘only’,
consumers. Spending on social media has now passed                    he says) but is also going to more and more ads and you
$10 billion. Studies show that people will give up movies,            now must upgrade to Premium to get the most value.
eating out, vacations and new personal items, but they                This is an expense of $20 to $100 per month.
will not give up their mobile devices and services.
                                                                      Consolidation of social media networks will continue as
I’m calling this a trend that significantly increases com-
plexity for the retailer just as the 1973 POS systems and
scanning did because you have to deal with it and being                                                     (Continued on page 7)



                                                                  6
                            Social Media as a Retail Trend
                                                   (continued from page 6)


companies buy each other up. The big boys seem to be               •   There will be exotic new software techniques
competing by buying up companies that manage on-line                   available to make sense of this stuff.
photos. With all this consolidation, who owns the                  •   Payments will change dramatically and not the
content? Some consumers mistakenly think they own                      way it looks right now. There will be much fallout
the life that they have put on the Web for everyone to                 and most payments will happen on the mobile
examine. But it is not clear which company owns the                    device.
consolidated content. Who owns the Lightbox content                •   Retailers will need new metrics.
and the Kodak Gallery content now that they have been              •   With everything cross referenced, privacy will be a
purchased? By the way, who owns, or has access to,                     huge concern. What will who do with whose data?
your data when your cloud vendor is sold or goes under?                (Insurance companies, government agencies,
                                                                       political parties, employers, hackers, search
All of this means that exabytes of data (that is a whole               engines, retailers, marketers, manufacturers, etc.)
bunch) are floating around to be analyzed and focused                  You no longer will own your life.
advertisements will become much more pervasive on                  •   At some point, surely there will be some push
every mobile device. Billions of dollars will be spent on              back from the consumer.
analyzing this data and even more billions will be spent
on delivering customized messages to the consumer.                 What can you do about this new world coming? All you
This also means that retailers will need departments just          have to do is do all the right things and do them right.
to manage this focused messaging.
                                                                   You can stay involved with the International Retail User
I would like to make a few predictions on factors that will        Group to keep ahead of the pack. IRUG has been the
affect retailers over the next five to ten years:                  advance warning system about most of the changes that
 • Photos being uploaded will change to videos being               have led and plagued retail for 36 years. IRUG has
    uploaded. This means significantly more data                   provided the perspective and detailed road maps to keep
    storage will be required and new software needed               you on track with fewer project cost overruns as new
    to analyze the videos.                                         technologies and techniques have arrived. EMV and
 • ‘The internet of things’ means that more and more               mobile wallet are the current retail pain points and IRUG
    devices will be brought on line and connected to               is on top of them with the EMV Focus Group. Get
    the internet. Devices will be smaller, cheaper,                involved and stay involved to be forearmed and minimize
    and faster.                                                    the pain.
 • The Internet will get an order of magnitude faster.
 • Devices are starting to have more ‘personality’.
    As the devices start to ‘understand’ the owner, the
    possibilities for one to one marketing become
    endless. Dr. Martha Rodgers and Don Peppers
    were just ahead of their times.
 • Apps will be interactive and able to negotiate for
    the consumer.
 • On-line devices are becoming context and location
    aware. Augmented reality for location, voice and
    text with face and voice recognition is now                        Connect with us on
    available and becoming less expensive every
    month. These will allow much more efficient
    local marketing.
 • Predictive analytics will become the standard of
    business intelligence. Big Data of hundreds of
    petabytes will be the norm. It’s not just about
    what the consumer has been doing but what will
    the consumer do today and what will she do
    tomorrow.



                                                              7
        2012 Exhibitors                            Thank You Sponsors
4690World, LLC                                 The Officers and Board of Directors of the IBM Retail
ACI Worldwide                                  User Group wish to express its sincere appreciation to
Agilysys, Inc.                                 the following companies for their sponsorship of activi-
Applied Data Corporation (ADC)                 ties at the 2012 Annual Conference.
Balance Innovations, LLC
                                                  4690World, LLC
Bizerba North America
                                                  ACI Worldwide
Clarity Commerce
                                                  Agilysys, Inc.
Connie Driscoll Associates
Cornell-Mayo Associates                           Balance Innovations
Datalogic ADC                                     Bank of America Merchant Services, LLC
DataMax Systems Solutions                         Bizerba
Direct Source, Inc.                               Clarity Commerce
DLI                                               Cornell-Mayo Associates
EDJ Enterprises, Inc.                             DataMax System Solutions
EMV Group                                         Direct Source, Inc.
  ACT Canada                                      Equinox Payments, LLC
  Bank of America Merchant Services, LLC          IBM Corporation
  Ingenico                                        Ingenico
  MasterCard                                      MasterCard Worldwide
  STJ Retail                                      MEI
  Vantiv                                          Mikropis Holding
  VISA Inc.                                       Motorola Solutions, Inc.
ENS-Engineered Network Systems Inc.               QVS Software, Inc.
Epson America, Inc.                               Radius-Solutions
Equinox Payments                                  Retail Tech Inc.
EXTOL International                               SAM Group
Fujitsu America Inc.                              Seamark International, LLC
Google                                            Source Communications, LLP
Granite Telecommunications                        Spencer Technologies
Honeywell                                         Synthesis Retail Solutions
IBM Corporation                                   STJ Retail
Ingenico                                          TDX Tech
Intelligent Clearing Network (ICN)                Vantiv
MEI                                               Visa Inc.
Mikropis Holding                                  Zebra Technologies
Motorola Solutions, Inc.
PAX Technology, Inc.
PayPal
PCMS
QVS Software, Inc.
Retail Tech Inc.
Retail Technologies, Inc.
Retalix USA
SAM Group, Inc.
Seamark International, LLC
Source Communications, LLP
Spencer Technologies
TDX Tech
Trevarian Portal LLC
VeriFone, Inc.
Zebra Technologies



                                           8
                    BI-LO, LLC, and Balance Innovations
                     Awarded the 2012 IBM Retail User Group
                            Retail Innovation Award
The IBM Retail User Group announced BI-LO, LLC as                 and Tennessee, employing approximately 16,995 people.
the winner of the 2012 Retail Innovation Award. This              Founded in 1961, the company provides shoppers
prestigious award was presented at the User Group’s               substantial savings without sacrificing quality or
35th annual conference in Las Vegas, NV - May 20 -23,             freshness through its BI-LO BONUSCARD® and other
2012. The Innovation Award carries special meaning                exclusive programs. A committed corporate citizen, BI-
because the winner is chosen by the winner’s peer group           LO has donated more than $58 million through its BI-LO
– the membership of the IRUG organization. The inno-              Charities efforts to organizations across the company’s
vative solution provider, Balance Innovations, was also           footprint since 1983. For more information, visit www.bi-
honored with the 2012 Retail Solution Innovation Award.           lo.com.

The Project enabled BI-LO to implement back office
check conversion, vbEPIX in its 206 store locations.
The goals were to reduce bank and check processing
fees at the store and corporate, streamline processes,
reduce cash office hours and reallocate labor to improve
service at the front end.

The award recognizes a retail member and their solution
provider with an innovative solution that demonstrates
a sustainable competitive advantage through the appli-
cation of a unique, not easily copied process, business
model or software. The solution provider for the winning
retailer is also honored with a Retail Innovation Award.
Innovation has been driving competitive advantage in
retail; however, in these times of rapid change it has
never been more important.
                                                                  About Balance Innovations
Judging criteria is based on creativity and uniqueness            Balance Innovations is the leading provider of reconcili-
with the ability to enhance retail: consumer experience,          ation and cash office management solutions for the
reducing the cost of doing business, speed up the                 retail industry. Our leading-edge, customizable solu-
processes and achieving a competitive advantage. “We              tions integrate seamlessly with existing POS technolo-
are honored to have our project chosen as the innovation          gies to simplify and improve retailers’ cash office
of the year,” said Gail Moore, senior manager for                 management operations. Balance Innovations’ premier
customer service and store support with BI-LO. “BI-LO             product, VeriBalance, is a software solution that is
is seeing the benefits of vbEPIX and it is great to see the       helping retailers across the United States and Canada
project recognized by the IBM Retail User Group.”                 increase profitability and improve operations by reduc-
                                                                  ing labor, bank fees and shrink while standardizing and
The IBM Retail User Group Board of Directors also                 enforcing best practices and corporate policies. Other
congratulates hmv Canada Ltd. and its solution provider           products include: vbEPIXTM, an electronic check pro-
STJ Retail - Verizon Wireless - and Ahold USA, Inc                cessing solution; vbForecastTM, a cash forecasting
along with its solution provider Vertex, Inc. for being           product; and vbScoutTM, a self-checkout management
selected finalists’ for the 2012 “Retail Innovation Award”.       tool. Customers range from independent grocers to
                                                                  Fortune 50 retailers. www.balanceinnovations.com
About BI-LO, LLC
Headquartered in Mauldin, S.C., BI-LO operates 206
supermarkets in North Carolina, South Carolina, Georgia




                                                              9
                        2012 Conference Attendees
4690World, LLC                   Godiva Chocolatier, Inc.       Ping Mobile
AccessVia                        Google Inc.                    PVH Corp.
ACI Worldwide                    Granite Telecommunications     QVS Software, Inc.
ACT Canada & IS CAN              Grocery Outlet Inc.            Radius-Solutions
Agilysys, Inc.                   GS1 US                         Raymark
AHOLD USA                        HAC, Inc.                      Retail Tech Inc.
AKTIO S.A.                       Harmons Grocery                Retail Technologies, Inc.
Alex Lee, Inc.                   Harris Teeter, Inc.            Retail TouchPoints
Almacenes Exito                  HMV Canada Inc.                Retalix USA
Applied Data Corporation (ADC)   Honeywell                      Rice Food Markets
Arrow ECS                        Hy-Vee, Inc.                   RxCare Plus Pharmacies
Balance Innovations, LLC         IBM Brazil                     Safeway, Inc.
Bank of America Merchant         IBM Chile SA                   SAM Group, Inc.
Services, LLC                    IBM Colombia                   ScanSource
Bed Bath & Beyond                IBM Corporation                Scheels, Inc.
Bizerba                          IBM Switzerland                SCOPIX
BJ’s Wholesale Club, Inc.        IKEA                           Seamark International, LLC
Boston Retail Partners           Illinois Wholesale             Source Communications, LLP
Canadian Tire Corporation        Ingenico                       Spartan Stores, Inc.
Limited                          Inmar                          Spencer Technologies
Cash Register Services, Inc.     inStream Media                 Stage Stores, Inc.
Catalina Marketing               Intelligent Clearing Network   Starbucks Coffee Corporation
Certified Retail Solutions       (ICN)                          Starmount
CGI                              J Crew                         STCR Business Systems, Inc.
Clarity Commerce                 Kinney Drugs, Inc.             STJ Retail
Colsibsidio                      Kohl’s Department Stores       Store Systems Technology, Inc.
Connie Driscoll Associates       LineaDatascan                  Synthesis Retail Solutions
Conn’s                           Lodestar Solutions             TDX Tech
Cornell-Mayo Associates          Ludwig Goertz GmbH             Tech Global Partners
Cost Plus World Market           Market Platform Dynamics       tekservePOS
Costco Wholesale                 MasterCard Worldwide           The Fresh Market
Coupons.com                      MEI                            The Kroger Co.
Cunningham Electronics           Mikropis Holding               The Markets, LLC
Corporation                      Mills Fleet Farm               Torex
CVS Caremark                     Motorola Solutions, Inc.       Trevarian Portal LLC
Datalogic ADC                    Next Retail Group              Tyco Electronics
DataMax System Solutions         North Country Business         United Cash Register
Datatrend Technologies, Inc.     Products                       USDA Food and Nutrition Ser-
DeCA                             North State Grocery            vice
Direct Source, Inc.              PAX Technology, Inc.           Vantiv
DLI                              PayPal                         VeriFone, Inc.
EDJ Enterprises, Inc.            PCMS                           Verizon
ENS-Engineered Network           Pier 1 Imports                 Vertex, Inc.
Systems, Inc.                    Piggly Wiggly Carolina Co.     Visa Inc.
Epson America, Inc.                                             Von Maur
Equinox Payments, LLC                                           Wakefern Food Corporation
Fiesta Mart Inc.                                                Walgreen Co.
Foodland Super Market, Ltd.                                     Wal-Mart Stores, Inc.
Fred’s Inc.                                                     Wegmans Food Markets, Inc.
Fujitsu America Inc.                                            WIC Direct System
GFS Marketplace                                                 Woodman’s Food Market
Giant Eagle, Inc.                                               Y Yamada SA
GK Software AG                                                  Zebra Technologies




                                              10
                                      Thank You Speakers
The Officers and Board of Directors of the IBM Retail User Group wish to express its sincere appreciation to the following
individuals for volunteering to be a presenter at the 2012 Annual Conference.


   Casey Adams, SCOPIX                                               Sue Knotts, Wakefern Food Corporation
   Tudor Andronic, Bizerba                                           Steve Ladwig, IBM Corporation
   Raymond Auger, CVS Caremark                                       Cathy Lasser, IBM Corporation
   Mary Grace Bateman, IBM Corporation                               Eileen Mahoney, PVH Group
   Dennis E. Blankenship, Verizon                                    Oliver Manahan, MasterCard Worldwide
   Jeff Boyle, 4690World, LLC                                        Scott McArthur, Walgreens
   Stephen Braceland, STJ Retail                                     Erin McBride, USDA Food and Nutrition Service
   Lori Bratcher, IBM Corporation                                    Andrew B. Morris, Market Platform Dynamics
   Gregory Burch, Ingenico                                           Ken Morris, Boston Retail Partners
   Derrick Carpenter, Bank of America                                Derek Osterhoudt, IBM Corporation
   Lloyd Cato, VISA, Inc.                                            Shannon Pardue, Harris Teeter, Inc.
   Michael Chall, VISA, Inc.                                         Hollis Posey, Next Retail Group, LLC
                                                                     Jerry Rightmer, Starmount
                                                                     Frank Riso, Motorola Solutions, Inc.
                                                                     Will Roche, Raymark
                                                                     John Rohland, BJ’s Wholesale Club, Inc
                                                                     Pamela Samaniego, Catalina Marketing
                                                                     Ross Snailer, VISA, Inc.
                                                                     John Staul, Solutions Engineer, Ahold USA
                                                                     Russell Strickland, MEI
                                                                     Brian Taylor, IBM Corporation
                                                                     Richard E. Thibedeau, Intelligent Clearing Network
   Jim Clendenen, Harris Teeter, Inc .                               Mike Timmers, PCMS
   Eugene Cornell, Cornell-Mayo Associates                           Erik Vlugt, VeriFone Systems, Inc.
   PK Do, IBM Corporation                                            Patty Walters, Vantiv LLC
   Erin Dorshorst, IBM Corporation                                   Peggy Weavil, IBM Corporation
   Scott Duby, IBM Global Retail Industry Solutions                  Rob Weisz, Bizerba North America
   Ken Duffy, IBM Corporation                                        Mary Wilson, GS1 US
   Cory Evans, Vertex, Inc.                                          Tadd Wilson, IBM Corporation
   Martine Frobisher, HMV Canada
   John Gaydac, IBM Corporation
   Kirk Goldman, IBM Corporation
   Peter Harris, IBM Corporation
   Peter Hazlehurst, Google
   Michael Hess, Tech Global Partners
   Kelly Hewitt, Stage Stores, Inc.
   Bob Hoblit, WIC Direct System
                                                                    2013 Exhibit Registration
   Dan Hopping, Next Retail Group
   William “Jamie” Jamieson, Spencer Technologies                 The 2013 Exhibitor Information, Floor Plan, and Registra-
   Joe Janick, MEI                                                tion Forms are now available on the web site at
                                                                  www.ibmretailug.org. Register early, download the form
   Catherine Johnston, ACT Canada
                                                                  and reserve your space for the 36th Annual Conference
   Brian Kilcourse, RSR Research
                                                                  in Anaheim, CA.
   Don Kingsborough, PayPal



                                                           11
                                      Board of Directors
Ron Ferri: President                      Scott Krienbring: Director                 Frank Riso: Associate Liaison
Giant Eagle, Inc.                         Kohl's Department Stores                   Motorola Solution, Inc.
(412) 967-4643                            (262) 703-1334                             (631) 738-4004
ron.ferri@gianteagle.com                  scott.krienbring@Kohls.com                 Frank.Riso@motorolasolutions.com

Steve Biccum: Secretary/Treasurer         John Rohland: Director                     John Gaydac: Toshiba Liaison
Retail Tech Inc.                          BJ’s Wholesale Club, Inc.                  Toshiba Global Commerce Solutions
(877) 202-0759                            (774) 512-6598                             (919) 486-3622
bic@retailtechinc.com                     jrohland@bjs.com                           gaydac@us.ibm.com

Deb Jones: VP Administration              Joseph Sheldon: Director                   Akadius Berry: Toshiba Liaison
IRUG                                      AHOLD USA                                  Toshiba Global Commerce Solutions
(440) 238-5880                            (717) 240-5553                             (214) 281-8525
issug@roadrunner.com                      joesheldon@aholdusa.com                    aberry@us.ibm.com

Myron Castleberry: Director               Jeff Boyle: Associate Liaison              Bill Watson: Toshiba Liaison
HAC, Inc.                                 4690 World                                 Toshiba Global Commerce Solutions
(405) 290-3451                            (248) 651-6200 x300                        (919) 486-3170
mcastleberry@hacretail.com                jeffb@4690world.com                        wwatson@us.ibm.com

Kathy Forringer: Director                 Steve Braceland: Associate Liaison         Erv Jones: Director of Logistics
Godiva Chocolatier, Inc .                 STJ Retail                                 IRUG
(610) 988-6188                            (905) 851-6600                             (330) 310-2866
Kathy_Forringer@godivachoc.com            sbraceland@stjretail.com                   erv.jones@roadrunner.com

Bryan Hull: Director                      Dan Hopping: Professional Liaison
Spartan Stores, Inc.                      Next Retail Group
(616) 878-8641                            (919) 848-1441
bryan_hull@spartanstores.com              hopping@nextretailgroup.com




                                         Call for Board of
                                       Directors Candidates
Do you have a desire to serve as a director for the IRUG? The Nominating Committee will be selecting a slate of individuals
to run for the Board of Directors at the 2013 Conference.

Although many directors come from our volunteer ranks, the main requirement to be a director is good business sense and
relevant experience with the User Group or similar businesses or organizations. A director is responsible for strategic
planning in the areas of policy and administration where it relates to IBM Retail User Group activities and organization.

If you are interested in running, or know someone who you think would be a good candidate, please contact Deb Jones at
issug@roadrunner.com.




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