Founded in 1984, Flytech has been fully devoted to being a supplier of premium quality POS systems and is still persisting at the position even when the industry is seeing warning signs of slimming hardware profit margins. Flytech is now coming closer to the front-end market to better understand end user needs, thereby enabling its products to become smarter and create more innovative values.
There will be a very interesting exhibit that will deeply impress visitors to COMPUTEX 2015: A panel PC with stainless steel casing that can still operate normally when submerged in a water-filled fish tank. This is meant to demonstrate that the panel PC can operate in harsh environments for industrial automation purposes. This exhibit will be showcased by Flytech, one of the top three POS suppliers worldwide.
James Liu, President, Flytech Technology, states that technology advances are bringing rapid changes to the market. The company knows that it still has to hold onto the role as a hardware designer and manufacturer, but it has to come out of the factory toward the front-end market to better understand end user needs and create products that they need. Accordingly, Flytech will work with partners including system and solution providers to carry out its CAMPS strategy (Cloud, big data Analysis, Mobile, Payment, Smart phone devices).
Responding to market changes with new CAMPS strategy
Under the fundamental CAMPS strategy, Flytech will launch three lines of value-added products - the mobile POS, PTS (payment terminal solution), and panel PC - this year, all to be showcased at COMPUTEX 2015. Take Panel PC for example. Liu explains the panel PC business is securely holding a 15% share of Flytech operations, and yet its focus was on medical and retail applications in the past. Flytech's panel PCs had little presence in factory automation where there are abundant opportunities, giving rise to future growth. Therefore, Flytech has established dedicated units to oversee the launch of panel PCs suitable for factory control automation environments in hopes to build up momentum for revenue growth.
As to mobile POS, Flytech kicked off a strategic alliance with Intel in 2014 to deploy mobile POS based on the Bay Trail T platform supporting both Android and Windows operating systems. Volume shipments started in November 2014. Flytech's POS lines now cover desktop, wall-mounted, ground stand and hand-held models. The advancement in product specs demonstrates Flytech's capabilities and advantages in design innovations, R&D teamwork, management planning, and close cooperation with upstream technology and key components suppliers. In addition, Flytech's economy of scale gives its advantage in price negotiations, so Flytech can put forth competitive new products in timely response to the ever changing market.
Regarding PTS, Liu indicates retail channels have always had two independent systems, one being a POS system for managing business flow and the other a payment system for managing cash flow. However, the now popular big data analytics has to collect both business flow and cash flow information in order to make analyses and generate valuable business intelligence. The integration trend is bringing about changes to the end devices. Some suppliers who started as providers of only payment terminals now have begun to offer solutions combining payment and POS functions. Consequently, POS suppliers including Flytech are also following the trend to launch integrated products, which is the motivation behind Flytech's PTS solutions. However, Liu is of the opinion that POS with specialized functions and PTS with integrated features have advantages of their own and will not necessarily replace each other in the future.
Flytech is well aware that the design of a payment system has to comply with the EMV security standard, which will take time to undergo a refining process. Therefore, Flytech has established a three-stage development plan. In the first stage, PTS systems being put on the market will connect to payment terminals through Bluetooth technology. PTS systems in the second stage will either connect externally to EMV certified credit card readers or have embedded credit card reading functions. PTS systems in the third stage will have built-in certified card readers. Then, the whole system will still have to undergo EMV certification again, which is estimated to take one year.
In summary, Flytech's PTS solution incorporates complete mechanisms including the POS, payment device, printer, barcode scanner, and even cash drawer. The display screen is detachable as a portable tablet to be used as a device combining conveniences for meal orders and payments in a restaurant, for example. Business owners will find this system very compelling.
Flytech's CAMPS strategy, despite being extended from its POS theme, actually exceeds the scope of the above-mentioned three product lines in both depth and width to involve cloud and big data analytics operations. Liu reiterates that Flytech maintains its focus on POS design and manufacture and will not compete with customers; but instead it will work with or invest in solutions partners to expand market deployment. Flytech looks forward to future business development and growth.
James Liu, President, Flytech Technology, emphasizes Flytech aims to grasp the needs of front-end applications so as to deliver value-added POS solutions that meet market demands through the new CAMPS strategy and close collaboration with upstream technology providers and downstream solution providers.
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