Claudenir C. Andrade. www. Integration and R&D Manager Urmet Daruma MVP Microsoft

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1 Claudenir C. Andrade Integration and R&D Manager Urmet Daruma MVP Microsoft Preface written by Fernando M. Machima Innovation and retail manager - TOTVS

2 About the autor Claudenir C. Andrade is a graduate of the Academy of Information Systems of Madrid in Systems Analysis, he has worked with business automation for 17 years, was responsible for the approval and adoption of Brazilian ECF s in countries like Ecuador and Venezuela, he manages the development team at Daruma Automação, is the author of the first business automation book in Brazil Automação Comercial com VB.Net e C#. [Commercial Automation with VB.Net and C#]. He has been the MVP at Microsoft for 13 years in a row, che created the XML model for business automation, specified the first SCU command protocol for fiscal printers in Brazil, studied MBA of innovative projects (www.biinternacional.com.br) with extension study at Jiao Tong University in Shanghai, China and Entrepreneurship at Babson University, USA. He is currently taking an Undergraduate Course Specialized in Marketing, nontechnical area, at FGV. Contact: twitter Review: Carolyne de Andrade Illustration: Mariana Gimenes -

3 PREFACE By Fernando M. Machima Retail Innovation Manager TOTVS Speaking of the challenges of innovation in the Brazilian retail is already, in itself, a challenge! Mainly due to the various factors that directly and indirectly influence the dynamism and competitiveness of this segment. In today s knowledge society, consumers are increasingly informed and demanding on quality, service and fair price of products and services they buy, tight margins require creativity and high ability to execute to increase the profitability of the business, the diversity of the product mix demand greater control and efficiency in the processes, operating and administrative costs need to be optimized for the retailer to be more competitive, frequent changes and diversity in national legislation (PAF-ECF, SAT CF-e, NFC-e) increase the complexity this fiscal scenario. And speaking of human capital, talent shortages and high turnover are major obstacles to be faced daily. In this context, innovation has a key role to break paradigms, to change the traditional way of selling and guide certain actions meet these challenges. It must be used in full benefit of the consumer to provide greater convenience and facilities throughout the buying process, in other words, the implementation of an innovation, whether a process or technology, it makes sense when it results, in practice, in increased satisfaction and customer loyalty 3

4 and increased retailer sales. The Information Technology (IT) presents itself as a strategic tool to achieve this goal and offers many opportunities to provide a better shopping experience that manages the enchantment and provide a more personalized service. Access to retail through multiple channels (examples: physical store, e-commerce, social commerce) expands the possibilities to reach the consumer and gives you the autonomy to decide which channel you want to interact. Mobility provides convenience and availability to research, compare, decide and buy in an easy and intuitive way. The tools of CRM (Customer Relationship Management), supported by facial recognition and motion in the store, enable customers to identify, profile and meet their consumption habits aiming to strengthen the relationship and increase brand loyalty. The communication power of social media in the era of information sharing, both positive and negative, start to gradually increase its influence in the buying decision of consumers. The RFID (Radio- Frequency IDentification) technology streamlines processes such as inventory control, sales at the POS, product traceability and allows greater interactivity in the store. These are some of the innovations that are being used in retail seeking not only to meet the needs and desires of its customers, but above all, they want to surprise! Another project that is breaking paradigms and providing a reinvention of the service model in the segment is the NFC-e 4

5 (Electronic Invoice of sale to the end consumer), which consists of the electronic tax documents issue of the final consumer and direct submission to the Secretariat of State Treasury (SEFAZ). Among the main benefits we have greater flexibility in opening stores and POS (points of sale), but his most significant positive impact is the possibility of using mobility solutions in the store environment further expanding the opportunities to improve the buying experience consumer. In a joint venture with Daruma, we learn, share and evolve knowledge together, participated in the pilot an impressive network of building material in Mato Grosso (MT) and issued the first NFC-and the Midwest of the country! I consider this an innovative project in that it gives greater autonomy and flexibility to the retailer to define a new shape and improve service to their customers without the mandatory execution of some legal process, for example, printing the tax receipt by an ECF equipment. In light of these changes, the traditional retail, previously formed only by physical stores and defining the rules in the market, is having to reinvent itself to maintain and evolve to give more focus and attention to his client, who is now eager for news. With the support of IT, it is necessary to cause entertainment across customer contact, having a model of differentiated services that allow the enchanted and desire to relate constantly branded consumer, and always be available to provide convenience and shopping experience striking. Innovate in retail is a cycle that 5

6 must be renewed frequently as consumer needs change, and fast. I would like to wish you a great read because I am sure that you will add knowledge in the segment, which is increasingly dynamic and challenging for all of us. Finally, I thank Claudenir, longtime partner, for this unique opportunity to develop the preface to his e-book, which I accepted and wrote with great satisfaction. Fernando M Machima By Fernando M. Machima Retail Innovation Manager - TOTVS 6

7 NFC-E UNLOCKED VOL I Commercial Automation with Windows Embedded and NFC-e Electronics Consumer Invoice Contents of Volumes X Chapters VOL1/ Cap.1 Change in scenery after 15 years. Where we are affected 8 VOL1/ Cap.2 Strategy due to the changes and the uncertain scenario 2 1 VOL1/ Cap.3 Brushing bits! Think architecture, Plan before all 3 3 VOL1/ Cap.4 What does all this have to do with Windows Embedded. Stay tuned! 6 9 7

8 VOL1/ Chap.1 Change in scenery after 15 years. Where we are affected It s amazing the mixture of feelings back to writing my second book in the Paper e-book format, after 13 years of writing the first book 1. This raises mixed feelings in this new scenario of changes in Sales Automation. Break away from a paradigm of 17 years of work is not easy, there were 7 early years of my career with commercial automation, leading the development and integration with developers, restructuring strategy of partnering with developers, and now, yet are 10 years in Urmet Daruma 2 also in charge of R&D and integration with market and developers. It s what I love doing and am passionate about, with the result seen in the eyes of market positioning and growth of both companies. It s a story, sometimes inglorious struggles and other struggles worthwhile but all the stories and struggles ECF - Issuer Tax Coupon - always present with stands today. Then write about the NFC and that radically changes some concepts, is a necessary, nostalgic and full of anxiety work. Always with the left side of the brain popping of new ideas and how we can really start brushing bits for the sake of technology for technology and not 1 Automação Comercial com VB.Net e C# Emissor de Cupom Fiscal / Claudenir Campos Andrade São Paulo: Editora Érica, 2001 ISBN A short and accurate Narration of the trajectory in both companies was featured in CRN magazine CRN pages 56 and 57 (short link 8

9 with so much emphasis on obligation. The previous statement may appear disruptive, or perhaps retrograde to for some, depending on the viewpoint. But in none of the points of view, do we support the fiscal leniency, or that, with the entry of NFC-e fiscal controls are not necessary. I think the opposite! With the entrance of the NFC-e information on credit card purchases will continue to be reported to the tax authorities that may cross sales data. But with a competitive advantage; the sale can be online. For each sale on a Credit Card the NFC-e issued in the cloud, over the Internet, is informed online, this procedure alone already brings an important fiscal control for the economy, for compliance with established fiscal rules. This allows the business automation system to not worry about this fact, but rather with the technology applied, reinvented in business automation. Here we talk about INNOVATION, where we really are beneficially affected by NFC-e. I had the privilege of attending an MBA in Innovative Project Management, where one of the modules lasted 19 days in China 3 (Shanghai or Xangai) at the Jiao Tong University and other 12 days at Babson University in Boston. I do not need to mention that the north of this MBA was always innovation. I learned that to innovate techniques exist, which crossed with its framework of knowledge stimulated by day to day life and contacts, make the 3 Photos from this passage through China can be seen here ms/1fa8kkr 9

10 innovation process easier 4. However, contrary to what I thought and in favor of what I learned, then I heard the phrase that best defines what is innovation: innovation is the invention used in the market. It is the invention put into practice and acquired in your market. If this happens, it is only and solely an invention. This sentence is all working need innovation to hear in Commercial Automation. After all, if we look back in 2007 to now, invention is the used in how many inventions that turned into the market. products and became innovation? Tablets, NFC the era of Mobile Payment, invention It is the Ultrabooks, NUC s (Next Computers put into practice and Units), the mass use and use of QRCO- acquired in DE, the advancement on law, others just your market. myth - As for example the myth that you If this happens, it cannot use a printer other than Fiscal is only and Serial RS232 port. - Myth derived from solely an the time of matrix printer. Or the use of invention. tablet and mobility in commercial automation, which allows the current printer and the printer 09/009 also. Simply for the total liberation that an adjustment in the PAF rules. In fact we were the first, and only manufacturer to today s date in April/2014 to have native support in Android tablet and mobile and Windows 8 tablet and mobile, for use in the current fiscal printer and 09/09 4 Here a very interesting infographic that explains how this framework of knowledge supports the innovation process 10

11 printer. This is an undisputed fact. Enter and see the courses on how to use Android with Non-Fiscal and Fiscal Printer, cable, WiFi or Bluetooth, all using native Android classes for operation, or native Windows 8 classes. Today the model of technological innovation is locked by a template associated to tax obligations required to sell a commercial automation system. With this, so much of the work within the software houses to fulfill tax obligations. It s as if the developer and his Software company were a software accounting House with tax purposes, when in fact it continues with the obligation to comply with tax rules required by the government but without it (the developer and his company) removing the spark of innovation. This is not possible today. An example? A fully Cloud Computing POS, so that the end customer has a slimmer hardware, dedicated, no maintenance on the end. This innovation conflicts with the requirement of your application issuing off-line invoice, i.e., out-of-browser. I have on my resume 79 PAF lectures in four years, and more than 5,000 5 developers present. In conjunction with the Technical Supervisor Deynison and Analysis Coordinator in PAF- ECF Alexandre Sibalszky, both from POLIMIG, did a double run around the country to the DNAutomation forums besides 5 A Log of all lectures, with photos, can be found here: Njuj2B and specific actions about the PAF here br/ddcmkt/ddcmkt_017_13.html 11

12 their own events with the Daruma Developer Community. I have always supported the need to filter the market, to have the good people, who really are interested in developing the technology, thus using all their intellectual potential to innovate on behalf of his client and not to innovate in methods of evasion market. But unfortunately not all of us think so, and innovation in evasion became persecuted by the rules placed in the PAF today, catching turn the use of technologies like Tablet, Internet, Cloud Computing, MobilePayment, NFC, while the world is already moving to the obsolescence of these innovations. 6 Note that I properly mention the misuse of technology started to be chased by the rules of PAF, and not that PAF paralyzes commercial automation. Here is the challenge!! Here the changes start with the NFC-e. Innovation with the intersection of online data, the quest for efficiency in the use of the data (it is not just now that we talk of BIGDATA), allows the opening of doors to technological innovation without neglecting the need for fiscal monitoring so that there is no misuse of this innovation. It is not a cake recipe, and who am I to say how it has to be done, but at one point we agree, NF-C-e brings an online movement, opens the use of new technologies and is certainly not the final solution 6 Today 03/04/2013 I am already aware that some rules of PAF are adapting to allow the use of these technologies at the point of sale, which is great! I cheer and support that increasingly they adapt to the technological evolution that we are experiencing. The story is great and the future of PAF - which I support - is promising to continue on this path to adapt to technological advancement, the current ECF as is already allowed. 12

13 or the solution of all problems, will bring mature and better fiscal control to state governments without sacrificing technological innovation, opening up a wide and broad road to massive and innovative use of technology in favor of automation. Where Are We Affected But where are we Bit Brushers, affected by NFC-e? In everything! Returning to the list of innovations from 2007 until now, such as MobilePayment, Tablets, Phablets, SmartPhones, Internet, WebMulti Languages Platforms, APPs for SmartPhones, it all has its place in NFC-e architecture. With this we, Bit Brushers, need to keep developing compliance with the current tax obligations, without losing the technological innovation that can be applied for the NFC-e benefiting the sales transaction at the POS, what many call the User Experience. The POS system and its automation, formerly concomitant (and I remember that in 1999 it was a bad word speak of no concomitant POS, lol) in the NFC-e can be non-concurrent, performing all the activities on the screen, and only then after the accepted or closing the sale, being sent to the proper issuance of an official document of sale, in this case-and NFC. Consider this fact: Its non-concurrent system. Only this move by itself, in its essence, facilitates transactions e.g. canceling unwanted item upon purchase. What to do? Simply remove it from the list box and take it off the amount to be paid - all clear before sending 13

14 for printing and issuing the Simple NFC-e. Think for example on a pre-sale (pre-sale was not invented or created with PAF, it was regulated with the PAF, but the process of pre-sales already existed for centuries) that has 14 pre-selected products within a building material store, but now the customer decided not to buy the bag of nails and decided that at the cash register, whether it was because it was expensive to buy, either because he regretting picking it up. What to do? In simple NFC-e model he removes it from the list of items in the pre-sale, it removes it from the ListBox, recalculates the price on the screen and informs the new value to the customer, the customer pays and it performs the issuance and printing of NFC-e in the cloud or offline, if there is problem connecting to the server. The lack of connection to the server does not preclude issuance...the traced. I clarify and thus eliminate a wrong choice of NFC-e newly raised myth about the NFC-e that architecture is only possible to issue NFC-e safely if and provider online. For off-line issuance There are may compromise the Tokens, token ID and HASH which your are put in the QRCODE. Once this innovation. QRCODE is read, it is known by the First existence of this invoice that is off-line study the architectures and that should rise, if it does not rise, offered and and fiscally traced. see if they are aligned This movement is already with your beginning to happen, innovative plan. 14

15 solutions in not paf states are already being sold, such as NonusTouchOne, a unique and simple POS concept on the Tablet in which the operator is uses a Tablet as a computer and point of sale, but with operations and features of a cash register or micro-terminal. Alias! Here another market that the requirements eventually restricted its use Micro terminals. With the NFC-e this market can return to operate, which is fantastic, sometimes all you need is just a client and only one Microterminal at the cash register. But remember INNOVATION. How to use this movement for technological innovation and, as we always wanted, to put our developers to work for the customer s needs? It all starts with the correct choice of architecture free of moorings, free from conditional use of specific hardware, this item is important because the wrong choice of NFC-e architecture and provider may compromise your innovation. First study the architectures offered and see if they are aligned with your innovation plan and check if it will turn it into hostage of a dedicated operation preventing its growth and innovation and other platforms. VOL1/ Chap.1 Conclusions The Tax Receipt Issuer is not worse or better than the NFC-e. The NFC-e is no better or worse than the Tax Receipt Issuer. You cannot compare, there are different models for different purposes. With an evolution of 15 years, with several innovations, another with well matured model of NF-E, with several innovations and items yet to be matured a perfectly acceptable fact. 15

16 I remember in a meeting, nearly 15 years ago, hearing one of the officers in the room comment But the printer does not keep a picture of the tax receipt? It only saves totals? and we all (careless and reckless) laughed amicably and said Imagine! For it would have to have a HD in the printer. But all that was closer than we thought, all printer manufacturers in his time innovated the concept of the current matrix printer as a big calculator, advancing pro concept of fiscal printer with electronic log and already known and applied in other countries as Electronic Journal. Daruma was the company that innovated this scenario and launched the printers that consolidated the automation market, the FS600 7 and other manufacturers follow this rhythm. Where do I want to get and conclude with this historical fact? We cannot turn our backs on new models. I learned this over the years, maturity and good courses in the area. We cannot say today NFC-e will not catch on or NFC-e makes mass evasion viable. As before it was impossible to make a printer that stores everything that was printed, and this happened several items today 7 The FS600, in 2004, was the first thermal fiscal printer with easyload system and also the first to have easyload with a guillotine. At that time they all still had a cart with tensile reel and needed to insert the reel in this cart, unlike FS600 which you just had to drop in the reel without needing a guide or tensioned mechanics to change the paper. It was also a pioneer and creator of the item sells in a row, saving paper and logo on the receipt header. After that all competitors started to have this same feature coming from the FS600. An innovation that dictated the standard for the market. A true innovation for its time and that forced the market/competitors to follow. 16

17 criticized the NFC-e will undoubtedly evolve and the solutions appear where we least expect: Within our world of Technology. So with the transition from dot matrix printer to the thermal, the market has evolved, the DOM and FLASH memories have evolved, become more secure and embedded systems have also become more efficient and... BOOM! The perfect environment to create a printer that was years ago impossible to think about and we laughed at the possibility. The PAF represents an evolution in our market. Companies filtered, regulated a market without rules, it was great for all of us and now need to evolve, adapt and monitor the market and its needs, which today have an emphasis on technological innovation. Meanwhile, does the NFC-e eliminate the FAP certification? For states that to date today regulated and permitted the use of NFC-e the answer is YES, the PAF is not necessary. Is that good? No. I believe we should uphold a lower PAF, more adapted to the technological needs, aligned with the mobile and cloud innovations of our year 2014 still defending the need for certification, make sure and share responsibility with agencies that competently do their work following the script and help us do an exercise test, which unlike so we would not focus. Maybe one PAF-NFC-e? I insist, adapted to the needs of the use of emerging technologies and consolidated from 2007 to now, especially cloud computing. And the current fiscal printer? Already suffering its upgrade in technology. The printer covenant 09/09, best known 17

18 as a printer connected, brings the connection to the cloud within an XML protocol known for NFC-e and NF-e servers. Care is to be taken that do not have the same current model of PAF, ECF connected, as the ECF allows the use of many technologies today use the same PAF without modifications, prevent the use of innovations and would remain in thereof. About it is not only implement the model 09/09 and is solved, but the opening for emerging technologies and has consolidated and that can be used across the data arrives to their respective governments, without the need to kill innovation to make it happen, such as eliminating the need for concurrence of the system when using the printer 09/09. More information about the ECF 09/09 can be seen in the video number # 102 recorded live at Autocom www. youtube.com/darumadeveloper Video #102. In the following chapter, with the word INNOVATION well marked in our reading, let us understand how to think strategically forward these changes, which will help decide without immediacy, with view of short and long term. Rest assured, today with the rapid advancement of our system there is more long-term plan of 3, 4, 5 years to be faithfully executed, the scenery changes constantly and today the long term to be translated for 12 months. Above this strategy is that it can be adjusted executed or aborted in the long term execution. 18

19 19

20 VOL1/ Cap.2 Strategy due to the changes and the uncertain scenario In addition to the changes I have outlined in the previous chapter, it is worthwhile to think about the changes ahead in the next five (5) years, with respect to the tax revenue model and necessary for the application of business automation adaptations. Strategy and planning are, in my opinion, two words and actions that should be in the day to day of any CEO, Director or Manager. In the entrepreneurship module that I took at Babson - Boston, I learned about the lack of levels in the company to undertake, not undertake. There are levels in the company you can do more or less, but undertaking is always possible. Every entrepreneur plans, assembles a strategy, an approach, and then executes. It cannot be different in the current scenario and NFC, fiscal printer, much less than in the scenario that prepares the front where we co-exist with four (4) different models of point of sale. The Scenario Uncertainties are many and he who in this year of 2014 raise and pinpoint exactly what will happen, is predicting what everyone already knows or is literally guessing and maybe can get it right. There is no strong, declared signaling by the manufacturers associations or software, for example on the SAT Fiscal, the NFC-e in São Paulo, and a possible unification of storage and 20

21 regulation in the POS system. In times of uncertainty and lack of consistent information, the best thing to do is study the scenario and plan, plan an approach strategy that brings the best possible gain in the short and long term. Without this it is impossible to survive times of uncertainty, however nebulous they may seem, however much light at the end of the tunnel seems the train in the opposite direction. What we can affirm is the plan - and some already running for four (4) models of tax revenues affecting the software at the point of sale and all commercial market automation, and we will co-exist with them, the four (4) models, in the next 3-5 years, are: Current Printer (Agreement 85) - It s the printer that currently all use the point of sale and all developers ported their application to him. Mainly through DarumaFrameWork.DLL and DarumaFrameWork.SO that comes making records in downloads and record sales of subsidized developers to printers. 8 Printer Agreement 09/09 (or connected printer) printer that has the SCU 9 Unique command set- Armored and Connected, signing all you stand coupons and relieving various 8 To access the number of downloads of DarumaFramework Multi - platform Daruma Visit https://bitly.com/10oartg+ there were 23,000 downloads in just 3 months. 9 The first unique commands set was specified by Claudenir Andrade, soon passing the afrac to studies and due alterations. See the POST here is Ativoaccess for the developers community br/mostra.noticia.php?noticia=36 in June

22 items concerning the covenant previous printer, as Physical Seal becomes logical, no Bitmap in the reduction Z, signature of each coupon issued whether online or offline, making an independent business automation server for the fiscal operation. So far the safest storage model, however aligned with the PAF in its current model does not allow the use of all technological innovations to the application of business automation. This printer is the best solution in the current scenario and represents the evolution of everything we ve seen in print and online sales with offline security offered technology. It has protocols NF-e, NFC-e and the QRCODE printing. Authenticator and Transmitter System of electronic tax receipts - Eliminates the use of a fiscal printer, allows the use of any Mini printer, requires the use of a specific hardware that is certified and working between commercial automation system and the server state tax. Recorded a 3 part tutorial you can find here about the SAT Part 1: dde032_2013-ambiente-sat.html Part 2: dde033_2013-entendendo-sat-p2.html Part 3: dde034_2013-entendendo-sat-p3.html Part 4: dde035_2013-testando-sat.html Or access the site 22

23 Comunicados DDC subtitle, DUAL. NFC-e - Consumer Electronic Invoice - What dispenses the Use of Fiscal printer, there is no provision in this mode PAF, allows the use of any printer in the market, there is need to generate or print the QRCODE with the link where (online) or find (when issued off-line), the Electronic Invoice for the final consumer. There is the need to access the SEFAZ server for the online issue of the tax receipt, which in this case is called the NFC-e extract. Rio Grande do Sul, Mato Grosso, Sergipe, Acre, Amazonas already allow the use of NFC, and Sãoo Paulo for example, made optional the use of NFC-e starting in April 1, 2014 pursuant to Ordinance CAT-37, dated 05/03/2013 extending the SAT to April 1, 2014 and at the same time has the optional use of NFC-e the main actor at the point of sale, and not just the SAT, are allowing a choice. States such as Santa Catarina already have a mandatory use calendar of the Connected printer, the 09/09 printer, other states continue moving in the use of covenant 85 fiscal printers, Fiscal printer currently used throughout the country. I offer you compatibility, do not touch your Application!! Is it really worth it? You pay a price for it. 100% COMPATIBILITY WITH YOUR CURRENT 23

24 AUTOMATION SYSTEM. IS IT REALLY WORTH IT?? With all this background, several manufacturers are encouraging business automation compatibility i.e. not stir in your application and you can then pick the four modalities. But is that this scenario is strategic and what is to come? The answer is clear: No! Scenario of uncertainty of the prevalence of a tax model (which I think will not happen in a few years) blinds us in the sense of saying YES compatibility is the best way, but calmly analyzing entrepreneurial way and putting in strategy innovation technology, it is clear that is not the best way. If we are part of a compatibility chart on the business model, taking into account the rules of the PAF - and here I do not mean money business but business rule transformed through a programming language its algorithm - no doubt come to the conclusion that there is much more that continue predicting in your application with PAF than without PAF, such as the certification application, concurrency, sales sequence required by the PAF. This conclusion leads us clearly the decision that compatibility is not the best way for a business rule and a more efficient POS, if you implement NFC-e in your point of sale application. No doubt all ECF 85/01 manufacturers will provide some sort of compatibility for their partners. That there is no doubt. This is critical for a manufacturer of commercial automation, with a significant number of dealer s partners and developers. 24

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