By NICHOLAS TAN

THE retail world is ripe for self-service technology. A recent US consumer survey commissioned by IBM showed a 50 per cent growth in the use of self- service technology in the past year, with 70 per cent of respondents saying they expect businesses to offer more self-service options.

Today's busy and tech- savvy consumers are demanding access to information and services outside normal business hours, less time standing in line, greater ease of use, and more privacy.

This new trend towards customer self-sufficiency is creating opportunities for companies to innovate and change the way consumers connect, interact and transact business.

While many larger retailers have embraced self- service, a misperception exists among smaller businesses that they are simply too small to implement self- service systems. New technologies that can scale to small businesses are challenging this notion. Today, small retailers are achieving higher returns and improving customer service with self-service.

Innovative retailers like New York City-based Paragon Sports have embraced a new breed of self-service technologies that scale to their needs without sacrificing functionality.

At Paragon, nine IBM AnyPlace Kiosks are strategically placed in key store departments.

The kiosks communicate online to an IBM SMB System i Server that is powered by Vormittag Associates Inc (VAI) S2K Enterprise Edition for Retail POS Management software.

VAI's software allows sales assistants to quickly look up the availability of retail items. In the shoe department, associates can instantly look up a specific shoe style, size and colour, confirm availability, and complete the sale before they go to find the shoe.

In the camping department, store assistants can browse out-of-stock items, order them through the kiosk and have them shipped directly to the customer.

In addition, Paragon's IBM/VAI system notifies buyers when products are out of stock, so that they can re-order and replace items quickly.

According to Michael Corey, director of IT & eCommerce at Paragon, 'the kiosks help us keep the customer engaged, and shorten the time it takes to complete the sale; customers are happier and the sales staff are more productive'.

The new self-service kiosk systems, such as the ones used at Paragon Sports, feature ultra-compact self-service kiosks that can be deployed quickly and easily in any environment without adding a single square foot of real estate.

Small retailers can now offer customers instant access to information, innovative services, and online commerce in a rich multi- media format that includes full-motion video, high- quality audio, realistic 3D graphics and advanced infrared touch-screen technology.

Built-in wireless capability enables Internet access inside stores, airports, hotels, and other locations, without having to install expensive wiring and dedicated broadband connections.

These new self-service platforms offer considerable flexibility, with self- checkout software that gives retailers the option of deploying both cash and cashless payments depending on the purchasing demographics of the store.

The software provides faster, tighter integration with point of sale through a clearly defined POS interface.

There are also ready- made user interfaces for customers and application interfaces for software developers, so the systems can be deployed out-of-the- box or customised to provide customers a shopping experience they cannot get anywhere else.

The new IBM systems also feature application integration & remote management agent (RMA) capabilities.

The software-enabled integration framework leverages Java Platform Enterprise Edition-based programming to ease the deployment of new consumer services that integrate easily with existing systems across the business.

The RMA allows retailers to configure and monitor the system, distribute software, track assets, and determine and diagnose problems remotely.

Another novel feature of these new technologies is 'green design and manufacturing' that extends the life of system hardware, allowing companies to expand and upgrade for a long life cycle, and dispose of fewer obsolete products.

Green design products use new, more efficient processors that consume less energy. They also contain no paints in their material finishes, using powder coating for metal and impregnated colour for plastic to help reduce harmful emissions that may occur in the painting processes.

Self-service systems are creating new connections between businesses and consumers. Thanks to the new generation of compact kiosks and self-checkout technologies, smaller retailers no longer need to stare through the fence, longing to get into the game.

The opportunity to embrace self-service is here and the possibilities are plentiful.

Nicholas Tan is the general manager, IBM Singapore's general business unit.

This article was first published in The Business Times on December 30, 2008.