In January 2006, Richard Houghton was appointed as group systems accountant for FIRST plc a UK based retail company. Currently, the company has 18 retail outlets located throughout the UK. The company’s head office is in Manchester. The company currently operates three alternative sales facilities; web based sales, mail order sales and over the counter sales.
All web based and mail order sales are processed at the company’s head office in Manchester and= despatched from its main distribution centre in Wigan. All over the counter sales are processed at each individual retail outlet. For the year ending 31 March 2006 the company retail sales were £87m and its net profits were £28m.
At a recent meeting with the company management board, Richard suggested that the company should explore the possibility of reviewing its over the counter sales procedures by introducing a new range of ‘Pay by Touch technologies’ to replace the existing chip and PIN technologies. Although many of the management board were not clear on exactly what ‘Pay by Touch technologies’ were, they were sufficiently intrigued by the idea of using biometrics as part of the company’s revenue cycle that they suggested a feasibility study be undertaken on the possible advantages and disadvantages of introducing such technologies.
Required
Making what ever assumptions are necessary prepare a feasibility report for the management board of FIRST plc detailing the possible advantages and disadvantages of introducing ‘Pay by Touch technologies’.