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A white paper on the selection of Landlord Tenant Communication Systems for shopping malls or mixed-use environments
Better systems are needed to help shopping mall executives discharge risk management responsibilities: historically there has been a lack of effective communication systems between retail centre management and tenants.
However, there is now a choice of systems available. Selecting the right platform will offer - as a welcome bonus - commercial advantages for the shopping mall as well as significant dividends for retailers and customers.
This short paper addresses the issue of making the right purchasing decision. It describes the six attributes that an ideal landlord tenant communication system (LTCS) should have. Those six attributes are as follows.
- Open systems architecture
- Designed specifically for retail
- Accountability
- Multi-functionality
- Two-way multimedia
- Low total cost of ownership
In helping a business decision maker to ask the right questions of potential LTCS suppliers, the paper offers a brief non-technical discussion on the underlying issues for each of those attributes.
1. Open systems architecture
In a closed system, the software and hardware are entirely dependent upon one another because they were designed that way. This means that closed system core functionality is exclusively dependent upon and between proprietary hardware components. In most cases, integration between host and complementary systems would not have been envisaged in the original design and custom alterations can be very costly.
An open system is based upon industry standard hardware and software (for example, using devices from a major manufacturer such as Cisco Systems). The software used in an open system will be portable i.e. it will be possible to run it on any standard hardware platform. Furthermore, an open system will have the ability to integrate software applications developed on other open platforms, a fact that will become increasingly important as convergence gathers pace in the retail sector.
An open system will also use a standard networking protocol such as TCP/IP, so that it will communicate with other standards-based systems. It will work over both fibre networks and twisted pair copper cabling systems. With closed systems that use old fashioned or proprietary networking protocols it will be difficult (if not impossible) to get them to communicate with other systems. For example, some closed systems will only run over their own separate wiring, such as co-axial cable.
Finally, closed systems generally preclude other software companies from either maintaining or modifying the system. This results in the potential for “ransom ownership” whereby the purchaser of a system has almost no choice but to continue to enter into a service agreement, irrespective of whether the costs are too high or the service delivery is sub-standard.
2. Designed specifically for retail
Today, all industries are driven by the need for accurate and timely information and communication. That's a given: it's only the means of access and delivery that's different - and it's speed of change that characterises the retail environment. No store stands still: no space goes unused. That means that, above all else, a LTCS for use in a retail environment must be flexible.
Constantly manned systems, designed around a back office, would be inflexible and labour intensive. For example, office-based workers are mostly positioned in front of a computer. They receive information in two ways: they are “pushed” emails by others; and they “pull” information from several sources, such as the internet and networked servers. They type emails to send information. This means of information exchange is successful in a controlled work environment, where the primary value-adding function relies upon screen-based interaction.
Retail activity is different. In all but the largest stores, workstations are not permanently manned during trading hours. Staff will be on the shop floor watching and interacting with customers. The only regularly occupied location in the store is the point-of-sale (POS) but even there staff are required to watch and interact with customers, rather than using a keyboard and mouse to navigate around a screen.
Additionally, their communication needs are different. Public safety and security are major concerns and they rely upon immediate information exchange with centre management. Situations develop quickly, originating either outside a retailer's unit (so the retailer needs to be pushed this information) or inside the premises (in which case the retailer often needs to inform centre management staff). If the method of communication between the retailer and centre management staff (and vice versa) is not immediate, robust and foolproof then the impact and outcome of incidents will be more uncertain and they are likely to be harder to resolve.
Furthermore, if the system uses a PC as its terminal device, it is going to impose severe constraints as to where it can be sited (for example, POS locations are never designed with the space for a full-sized workstation). A choice of small footprint terminal devices is therefore essential, including where necessary the ability to integrate the system's functionality directly into POS devices such as tills.
Of course landlord to retailer communication is not limited only to acute operational activity. It is important that the communication solution can also emulate desktop functionality, such as accessibility to up-to-date documents like retailer operational guides, shop-fitting procedures, minutes of retailer association meetings, monthly reports, and the marketing programme.
The key point is that the different means by which information is provided and received should match the functional needs of the users. As in retail, we know that the saying “one size fits all” is rarely the best solution! So the LTCS must be designed with the majority retail user in mind, rather than shoehorning a sub-optimal solution into the retail space.
3. Accountability
Essential in any management tool used in any commercial activity - but particularly in security or safety - is the concept of accountability. A complete tamper-proof audit trail of who said what to whom and when and why is necessary to protect both the retailer and the management team. In this respect, the system should be “always on”. If it is not functioning properly for any reason, that fact must be made immediately apparent to both centre management staff and retailers. Additionally, all forms of electronic information exchange should be captured, not just text exchange. Panic button activation and voice conversations (including who called who, when and from where) must form part of this single auditing process.
Integration with the wireless domain is also critical because the incorporation of mobile devices (such as PDAs with wireless voice functionality) into the LTCS would assure transparency and continuity of messaging. For example, it is faster and safer to relay messages direct from a central control point to both fixed and mobile terminals, rather than to use the output of a PC-based system to prompt a team member to send an alert via a separate system to mobile personnel without access to a fixed line. The audit trail would stretch from the originator right through to the intended recipient (for example, a maintenance person assigned to check a suspected leaky gas main or worse).
4. Multi-functionality
In risk management terms it is perfectly satisfactory to use a standalone LTCS for sending alerts and alarms only. However, that would be yet another system alongside CCTV, advertising screens, public address, car parks, building management, and walkie-talkies to name just a few. For many good reasons - including cost, complexity and reliability - we should be reducing the number of standalone systems, not increasing them.
It is essential therefore that a LTCS should be capable of multi-functionality i.e. it should have the ability to interoperate with existing systems. In so doing, it should provide an integration platform on which to develop new applications and features, alongside risk management, which could eventually subsume the functionality of other systems. Related to the issue of open systems versus closed systems, it is therefore essential that a LTCS should use industry standard hardware, software, and networking protocols (a closed system would need costly ongoing systems integration to interoperate with other systems).
An example of the benefit of using a multi-functionality approach would be the ability to offer telephony services over a LTCS as a value added service that would save money for both landlords and tenants. Another instance of the benefits of multi-functionality would be the ability to use the platform to create an intranet within the shopping centre. While an intranet could provide a rich communications and marketing medium for office-based and management staff, it could also offer discrete features for shop floor staff alongside essential risk management applications.
Note that an internet-based LTCS would not offer true multi-functionality. While it could provide an intranet service, integration with (for example) building management and public address systems would be challenging; and simple to operate telephony services would not be possible.
5. Two-way multimedia
Offering the right medium for the right message type is a prerequisite. For example, voice is ideal for quickly mobilising centre staff, but equally will be seldom the right choice when there is detailed data to convey. There must be flexibility as to whether data messages are pre-configured or customised (pre-configured messages are essential for urgent situations where speed is of the essence).
Looked at from the risk management perspective, the system needs to offer a choice of alerting methods such as an audible or visible alarm (or both) and there needs to be a way of communicating with both fixed and mobile personnel. This implies that it should not be necessary to double-handle alerts (e.g. re-keying data or using an output from an online system to spark the use of a manual system).
Choice of terminal device and form factor is very important too. A LTCS must offer transparency of messaging, with discretion where necessary, which again militates towards a combination of both data and voice capability. Furthermore, a choice of display media prevents money being wasted e.g. if the system is only ever going to be used for simple alerts, a large screen would be a waste of money.
6. Low total cost of ownership
Cost of ownership is a complex topic that involves issues such as reliability and scalability as well as plain cash considerations. In terms of pricing, transparency is essential to establish the nature of ongoing costs such as software licensing: enquire whether it is on a per user, per terminal, per installation basis, or a mixture of two or three aspects. Ask whether software upgrades will be separately charged for, or included in the support package.
Downtime can be costly and, in risk management terms, dangerous too. Thus, in terms of the support package check whether the supplier offers service level agreements (SLAs) within the standard price. Four hours response is the minimum SLA that should be offered (note that support is often restricted to office hours rather than retail opening hours) and there should be no extra cost involved in that. However, better SLAs should be available by negotiation. In terms of reliability, ask if there are any statistics available. Explore the architecture of the system and enquire about single points of failure. Establish what the building blocks are and whether it has a resilient design e.g. if one part stops working will the rest continue to function?
Lack of scalability carries hidden costs with it. For example, the need to provide multiple terminals in department stores and franchises could be expensive and quickly use up limited capacity, at worst meaning that the system might need to be replaced or a duplicate system purchased. Look for other hidden costs such as whether the system will need specialist skills in order to reconfigure it. Investigate whether there might be external telecommunications costs to consider (e.g. broadband connections) or whether the system would only use zero-cost links within the centre.
Look also for hidden opportunities. For example, whether the system would improve the centre's bottom line through innovative solutions to problems such as asset management. Even more creatively, whether it would be possible to share (with other users of the LTCS) development costs and ongoing revenues for advanced applications. Think about how you would like to use the system in the future and ask to see the supplier's development roadmap i.e. establish if the supplier intends to use integration with other systems to offer advanced applications. Lack of willingness (or ability) to develop the system could be very costly in the future.
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