Khalil Chung Competitor Analysis ABS has been given a specific geographic region set from NCR to distribute

VARs in the state of Florida. The region includes about 53% of Florida's population majority all of the west and Central Florida. Since ABS is limited to where they can sell their NCR product it is crucial that we analysis local competitors in order to achieve competitor advantage in this growing POS industry. Micros of Central Florida:

MICROS Systems, Inc. is the leading provider for enterprise applications for the hospitality and retail industries worldwide. Over 370,000 MICROS systems are currently installed in table and quick service restaurants, hotels, motels, casinos, leisure and entertainment, and retail operations in more than 180 countries, and on all seven continents. In addition, MICROS provides property management systems, central reservation and customer information solutions for more than 30,000 hotels worldwide, as well as point-of-sale, loss prevention, and cross-channel functionality for more than 150,000 retail stores worldwide and 17,000 fuel and convenience stores. MICROS stock is traded through NASDAQ under the symbol MCRS. (Reuter MCRS) Incorporated on September 8th 1977, MICROS systems is a global manufacturer, designer, marketer, and servicer of enterprise information solutions for the hospitality and retail industries around the world. Micros operates in two segments: International and United States/Canada. Micros impacts the retail industry by selling POS systems directly to consumers, including retailers of, food, clothing, hardware, jewelry, along with various specialty items. Micros enterprise information solutions is based in three areas: Retail information systems, restaurant information systems, and hotel information systems; they also offer a range of services and other products for its retail, restaurant, and hotel information systems. the hotel information system consist of software such as PMS and CRS. The restaurant and retail information system consist of the POS which encompasses a range of back office applications, such as inventory management, labor and financial management loss prevention, Web commerce applications, business analytics, customer gift cards, electronic payments and enterprise applications. (Reuter MCRS) For hotel industry Micros develops, distributes and provides support for their software products and services under a brand name OPERA. OPERA includes sales and catering, PMS, quality management, revenue management, sales support, data mining, financial statements, reservations and accounting management (CRS). OPERA also allows guest to check in and out through kiosk. PMS software interfaces to central reservation systems, global distribution systems and central reservation system. The CRS software allows hotels to organize, process, monitor, and analyze hotel operations at a central facility. The sales and catering enables hotel sale staff to analyyze, reserve and invoice meetings, and resort events for a property. The revenue management software allows hotels management to manage resevations service through its server myfidelio.net, which allows a smooth mix of business between regular customers and

corporate customers. As of June 30, 2012, approximately 20,200 hotel sites have installed either OPERA, OPERA Xpress PMS, OPERA Lite, or Operetta. OPERA uses a Oracle database and can be ran on two operating systems: Microsoft Windows or IBM AIX. Hotel managers use internet or high speed connection to access OPERA software all of which is under the brand name Fidelio Version 7.0. As of June 30, 2012, approximately 2,875 hotels were using Fidelio Version 7.0. They also market a version 8 of Fidelio which has been installed in over 3,750 hotel sites as of Jun 30, 2012. (Reuter MCRS) The restaurant systems include POS applications, mobile applications, kitchen product applications, hardware, and marketing applications. MICRO has designed workstations which are known as Workstation 5A and 2015 PC workstation and integrates other hardware devices which they market and sell. The MICROS 2015 PC Workstation is a POS terminal thats based to operate restaurant activity smoothly on PC-based software application. Workstation 5a is a PC based POS Terminal that uses POSReady 2009 and Microsoft Embedded CE 6.0 operating systems. MICROS 2015 uses Intel chips that are configured to accommodate storage and memory requirements and uses the protg customer display system and MICROS order confirmation system to provide quick service in the restaurant environment. The display system is integrated with Microsoft Windows CE client and equipped with touch screen capability enabling rapid response during interactive use.

MICROS order confirmation provides detail orders through a display screen, the orders are input through Simphony and 9700 HMS POS. The restaurant POS software systems are MICROS restaurant enterprise series (3700 POS) system, MICROS 9700 Hospitality Management System (HMS), MICROS e7 Series, and Hospitality Solutions Profit Series. These POS systems provide total transaction control for food service with hopes to enhance profitability inventory control and overall firm efficiency. As of June 30 2012, MICROS has installed over 9300 sites with symphony and is host for 800 of the 9300. Symphony is basically a solution that is an all inclusive software application used by table service, quick service, and enterprise restaurant and operations. its Capable of operating almost every type of business; food concessions, casinos, theme parks, airport venues, sporting events. MICROS 9700 HMS is primarily designed for leisure and entertainment venues, MICROS 3700 POS is built for table service and quick service restaurants. 3700 runs on Windows operating system and a Sybase relations database and can operate on PC's or workstations. (Reuter MCRS) MICROS focused on software solutions that geared operations beyond the POS system. they called it MICROS Restaurant enterprise series (RES). RES is a software solution that includes POS transaction control, restaurant operations, data analysis, and communication. Other components include Mobile MICROS and MICROS RES Kiosk, which enables customer information and self-ordering on third-party kiosks or directly through the use of smart phones and tablets. MICROS markets a internet portal called mymicros.net, which allows customers view reports and charts for a firm or a group of firms. Customers can purchased through a perpetual use license or by an annual or multi-year software as a service subscription contract. As of June 30, 2012, it hosted applications supporting over 29,000 restaurants. (Reuter MCRS) MICROS retail group markets direct commerce solutions, business intelligence applications and retail store software systems. Retail store software system are the following Store21, Tradewind, and Xstore. All products operate on microsoft windows NT, 2000, and 2003 OS and utilizes

Sybase database. Tradewind and Store21 can be intergated with the retailers back office system and offers addition features such as reporting modules and communications. Store21 is designed for specialty retailers its a full service oriented architecture (SOA) meaning it runs on Java operatiing system and is able to operate on both Linux and Windows bases OS. (Reuter MCRS) Tradewind is only enable to operate on windows OS. MICROS-Retail Home Office Business Intelligence Suite for retail stores, which includes loss prevention (marketed under the trade name XBR), customer relationship management, gift cards (marketed under the trade name Relate), and audit control (marketed under the trade name Balance). It also offers XBR to its restaurant customers through MICROS provided centrally hosted or self-hosted environment. MICROS-Retail also offers in-store mobile solutions with Apple Corporations iPod Touch, iPhone and iPad systems. (Reuter MCRS) These solutions enable the store associate to ring up sales, handle inventory and service customers using the mobile devices. MICROS-Retail offers an eCommerce platform with features, marketed under the trade name Open Commerce Platform, as well as creative and design services to help customers create custom Websites. MICROS-Retail offers order management and order broker software and services (marketed under the trade names CW Serenade and Locate, respectively), which enable a retailer to manage customer purchase transactions through multiple sources, including a store, the Internet, catalog phone-in orders, call centers, kiosks, and wireless devices. MICROS-Retail develops, supports, and distributes software solutions, which provides for collaborative end-to-end product and supplier lifecycle management and ingredient legal compliance tracking under the names Creations and myCreations. Creations and myCreations customers include accounts, such as Tesco, Sainsburys, Wm Morrison, Sobeys, H.E. Butt, Metro, Kodak, Bodyshop and Booker. The Company provides a range of services to its customers, including system installation, operator and manager training, on-site hardware maintenance, customized software development, application software support and credit card software support. During the fiscal year ended June 30, 2012 (fiscal 2012), service revenue constituted approximately 65.6% of its total revenue. Maintenance service contracts include on-site and depot hardware maintenance, application software support, credit card software support, and software hosting. (Reuter MCRS) The Company provides on-site hardware maintenance and software support through a combination of direct and indirect channels. The on-site hardware maintenance is provided to customers using MICROS POS hardware and software systems. With such a diversity in software business solutions and and services MICROS can be noted as a key competitor of abacus business solution (Reuter MCRS)

NCR Corporation (Abacus Business Solutions):

Incorporated in 1884 John H. Patterson founded the National Cash Register Company, and was the maker of the first mechanical cash register. NCR is a technology company that develops products that enables businesses to interact and transact with their customers. NCR Corporation serve customers in the financial services, retail stores, hospitality, traveling, and entertainment industries. there products include ATM's, POS systems, self-service Kiosks,

Check and Document Imaging, Services, Consumables, and computer software apps that allow consumers to interact with businesses from their mobile device or computer. (reuters NCR) NCR serves their customers by designing, deploying and supporting them in the use of their products. they also resell networking products and provide related service offering in technology and telecommunication sectors. NCR operates in the following segments; Retail Solutions, Entertainment, Emerging Industries, and Financial Services. Some notable moves NCR to enhance its firm is on August 24 2011 completing the acquisition of Radiant Systems Inc. December 23 2011 Selling healthcare solutions business, patients in portal, tracking, access software, and various software solutions. As on June 2012 NCR attained POS Integrated Solutions whom is a reseller of Aloha solution for restaurants, Colibri suite of hospitality software, Radiant Distribution solutions, and Hospitality hardware distribution partner. They also are affiliated red box the kiosk consumers can rent movies from. (reuters NCR) NCR has a variety of Financial products such as cash dispensers, ATM's, and software solutions (APTRA) which is a ATM security software and branch optimization. these products and solutions are designed to quickly and effectively process consumer transactions; a-swell as incorporates advance features as automated check cashing deposit, cash deposit, web/mobile enablement and bill payment. (reuters NCR) Besides financial products NCR specialize self-service kiosk which can be very profitable. their kiosk solutions has the ability to support retail self service functions, such as self checkout, wayfinding, gift registries, and bill payment. NCR provides POS systems to retail and hospitality industries. NCR's POS system features barcode scanners, pos terminals, software and services to companies domestically and globally. Checking and document imaging are used to acknowledgment and workflow technologies to automate items processing. it enable check and item-based transactions to be captured digitally. (reuters NCR) NCR provides services for their customers in maintenance and support service, services consist of staging, development, installation, implementation, systems management and complete manage service. NCR develops, manufactures, and markets a ranger line of printer consumables for printer technologies. examples of printer consumables is two-sided thermal paper (2ST), receipt rolls for ATMS and POS solutions, laser and inkjjet printer supply, ink ribbons, labels, laser documents, forms, photo and presentation paper. (reuters NCR)

Restaurant Data Concepts:

Restaurant data concepts better known as Pinnacle was founded January 1989 in Fort Lauderdale, Florida by Stevan Barber and Don. Pinnacle provides customers with custom business solutions that help maximize profit by increasing productivity, managing spending and accurately dealing with loss prevention. Pinnacle provides computer based business solutions for small to medium size restaurants. pinnacle is known as the first company to offer computer based touch screen solutions for restaurants. by focusing all of its resources toward the central and western part of Florida. (Welcome to Pinnacle Hospitality Systems.)

Pinnacle has offers numerous amount of products. from Dinerwar which is their POS system, Surveillance products, enterprise management software, online order entry, gift cards and loyalty programs, a recipe viewer, and Accounting software. (Welcome to Pinnacle Hospitality Systems.) Financial analysis:

According to industry experts, the POS industry reached about $1.2B in revenue during 2012. It grew about 1.2% annually for last several years, and was expected to grow about 2% annually during the next five years (IBISWorld, 2012).

MICROS is consider to be ABS's main competitor, being that ABS provides services from NCR it only seems right to compare NCR and MICROS ratios. Based on the P/E ratio we a 12.51% difference between NCR and MICROS which means NCR earnings is expected to increase in the future compared to MICROS. Based on the EPS ratio MICROS appears to me a more profitable firm to invest in earning an estimated $1.31 a share over NCR. Based on ROI MICROS is estimated to be 12.29% more profitable then NCR. lastly ROE shows use that NCR is down 2.53% compared to MICROS. Ultimately what the Financial data is telling us is that MICROS is dominating the POS industry however We expect NCR to grow into a more profitable firm in the next quarters.

SOURCES IBISWorld, Inc. (2012). Point of Sale Software Developers in the US. September. "Welcome to Pinnacle Hospitality Systems." Restaurant POS. N.p., n.d. Web. 20 Feb. 2013. http://www.reuters.com/finance/stocks/companyProfile?symbol=NCR

http://www.reuters.com/finance/stocks/companyProfile?symbol=MCRS.O