ML0013, ML0013 – Retail IT Management , summer / spring 2012

Spring 2012

Master of Business Administration – MBA Semester 3

ML0013 – Retail IT Management - 4 Credits

Book ID: B1227 Assignment Set – 1 60 Marks

Note: Each question carries 10 Marks. Answer all the questions.

Q1. Explain the need for IT in retail management?

The importance of information technology in retail stems from the importance of data. Data is

nothing but information that aids decision making. The right data, in the right form to the right

setoff people at the right time, is one of the greatest tools in the hands of the retailer. Information

is always with reference to a particular time frame.

Let us consider an example of a customer at a department store. After selecting some goods he

proceeds towards the billing counter. Here the billing clerk scans each product at the POS (Point

of sale) terminal the total number of items and the bill amount is added up. While doing so he

has so checked with the customer if he is a member of the store’s loyalty program. The customer

confirms that he is, gives him the store card for entry makes the payment by way of credit card

and exits the store with his purchases.

While to the customer it is just a routine purchase, let us look at the information that the store has

gathered from this transaction and how the information helps the retailer;

Efficient Stocking of merchandise

The items purchased provide information on merchandise sold in the store; this is the basis of

sales analysis and decisions on replenishment re-ordering and merchandise planning. If this

information is passed on to the manufacturer; it can help reduce production time. This is

particularly true in case of fashion items, which have a very short life cycle. For example data

gathered in this manner may indicate youngsters buying certain styles in Jeans or colors, in the

tee shirts from the store. To service this section of the audience the retailer may need

replenishments faster. The use of technology aids the collection and transmission of information.

The trends in sales can be analyzed. This helps avoid situations of stock out helps spot

merchandise or products timely markdowns and higher inventory turns.

Collection of Data

The use of technology aids data collection. Data can be collected about consumers, their

purchases the frequency of their buying and the typical basket size. This information helps the

retailer distinguish the customers who shops at his store frequently and also reward them. For

example information gathered about a customer may reveal preferences for certain brands; this

may be used for further communication with the customer regarding promotional offers etc. The

data on purchase made is also passed on to the credit card organization for payment to the

merchant establishment and also for billing the customer.

Efficiency in Operations

The use of information technology serves as a basis for integrating the functioning of various

departments. When a retailer decides to use the power of technology to aid business, the

investment in terms of money is usually high. However the benefits of the use of information

technology are many. As the process gets automated the time involved in particular task is

reduced. For example, a person manually billing a customer for purchase made will take a longer

time as compared to a person who is needed to scan in the items using the point of sale systems.

Helps Communication

Communication within the organization can be faster with the use of software like Lotus Notes.

Retail stores can also communicate with each other and with the warehouses. This can be done

24 hours a day and seven days a week. Electronic Data Interchange (EDI) can also be used for

communication with suppliers and vendors.

The information needs of the retailer largely depend on the size and the spread of the

organization. In most cases a small boutique operator or a small retailer like the baniya can do

manual billing and gather a fair amount of information by making a phone cal or making a

personal visit to the store.

With an increase in the number of stores and /or an increase in the number of products sold in the

store, gathering of information becomes crucial Technology plays a vital role in gathering this

information and making it available to the right set of persons.

How Information Technology involved in Retailing Operations

* Forecasting: Forecasting is the process of estimation in unknown situations. It's an essential

and very important process in any business organization. Business leaders and economists are

continually involved in the process of trying to forecast, or predict, the future of business in the

economy. Business leaders engage in this process because much of what happens in businesses

today depends on what is going to happen in the future.

1. Retail Demand Forecasting: Modern demand-forecasting systems provide new

opportunities to improve retail performance. Although the art of the individual merchant may

never be replaced, it can be augmented by an efficient, objective and scientific approach to

forecasting demand.

Large-scale systems are now capable of handling the mass of retail transaction data – organizing

it, mining it and projecting it into future customer behavior. This new approach to demand

forecasting in retail will contribute to the accuracy of future plans, the satisfaction of future

customers and the overall efficiency and profitability of retail operations.

* Inventory Management: Inventory can be either raw materials, finished items already

available for sale, or goods in the process of being manufactured. Inventory is recorded as an

asset on a company's balance sheet.

To optimize the deployment of inventory, retailers need to manage the uncertainties, constraints,

and complexities across their global supply chain on continuous basis. This allows them to

improve their inventory forecasting ability and accurately set inventory targets. An IT solution is

a proven and market leading solution for determining optimal time-varying inventory targets for

every item, at every location throughout supply chain. This allows retailers you to significantly

reduce inventory without adversely affecting service levels.

* Store Management: Another example where Information technology can be beneficial is a

store management. That alerts out-of-place or stock-out items. A store, commonly a shop or stall

for the retail sale of commodities, but also a place where wholesale supplies are kept, exhibited,

or sold. A place where something is deposited for safekeeping is called store.

The in-store system use magnetic strips or barcodes or RFID to monitor actual versus intended

product location on the floor or in the stockroom.

Retail's Complexity: the Information Technology Solution

Much of the retail operations functionality is driven by customized point solutions in areas such

as merchandizing, supply chain management, in-store operations, seasonality and promotions

planning. This means the underlying IT systems to drive operations are equally complex.

IT systems are at the heart of retail operations and hence play a central role in alleviating

pressure points in the retail sector. The converse also holds true—retailers who do not manage

their IT landscape effectively will find that, in time, the IT systems become part of the problem

rather than components of the solution.

There are two critical areas where IT can reduce

Complexity and improve results:

FUNCTIONAL RETAIL AREAS

Merchandizing systems impact top-line revenues and need to be configured, customized and

managed effectively for the retailer to improve its top line. To achieve this, retailers need to

effectively mine large amounts of data and leverage this data to carry out effective forecasting,

assortment planning, and collaboration with its suppliers so that promotions and other

merchandizing activities are effective and efficient. Supply chain systems are key from a bottom

line point of view as they play a key role in getting the right product to the right place at the right

time—which in turn impacts the inventory levels and the rate of flow of products through the

retailer's stores, both of which are significant components of the retailer's cost of doing business.

DATA CLEANSING AND ARCHITECTURE IMPROVEMENT

Data cleansing, and thereafter, effective mining (via large data warehouses) is fundamentally

important in the retail space because so much decision-making is based on data. If the data is

bad, the effectiveness and efficiency of carrying out retail operations is hampered. This becomes

particularly crucial when the retailer is implementing new systems and a large data conversion

effort is required—it becomes essential that the old data be effectively cleaned, re-architect and

made ready in the new system, so that the business functions can make decisions effectively.

In challenges, place ever-greater demands on retailers. It systems are at the complexity of

products, scale and processes, along with supply chain heart of retail operations and hence play a

central role in alleviating pressure points in the retail sector.

The High Technology Retailing Environment

Q2. How do security tags and deactivators help in managing retail activities?

Retail stores have a number of different security precautions to protect their products, employees

and their customers from theft or other criminal activity. These precautions range from different

systems of technology installed within the stores to actual security guards standing watch over

the products. These precautions can be expensive but effective.

Dear Students / Working Professionals ,

Get your completely solved assignments from Our ESTEEMED

ORGANIZATION smumbaassignment.com and get 100% marks.

For getting solutions just email to

[email protected] or

S M S to +91 9995105420.

SMS Format

E-MAIL ID Space Name To +91 9995105420 , we will reach back you

with in 24H

Or Directly call our Middle East Office +974 55702886 .

More Info, Kindly visit smumbaassignment.com or

http://smumbaassignments.in

Best Regards, Admin

smumbaassignment.com

[NB: our Skype Id : kvsude ]

Q3. What are the factors affecting IT in retail?

While every retailer may want harness the power of technology and use it to its optimum

advantages many factors affect its use. The chief among them are:

The scale and scope of operations

Q4. Describe various retail hardware equipments.

True Value Company is a retailer-owned hardware cooperative with over 5,000 independent

retail locations worldwide.[1] Members of the True Value cooperative own their individual stores

and operate independently of True Value Company.

Q5. What are the advantages and disadvantages of e-commerce?

Q6. Explain the types of information systems.

Answer: – TYPES OF INFORMATION SYSTEMS






S M S to +91 9995105420.

SMS Format


with in 24H

http://en.wikipedia.org/wiki/True_Value#cite_note-0

http://en.wikipedia.org/wiki/Retailers'_cooperative

http://en.wikipedia.org/wiki/Hardware_store




Best Regards, Admin



Spring 2012

Master of Business Administration-MBA Semester 3

ML0013 – Retail IT Management - 4 Credits

Book ID: B1227 Assignment Set – 2 60 Marks

Note: Each question carries 10 Marks. Answer all the questions.

Q1. What is CCTV? Explain its importance in retail store.

Closed-circuit television (CCTV) is the use of video cameras to transmit a signal to a specific

place, on a limited set of monitors.

It differs from broadcast television in that the signal is not openly transmitted, though it may

employ point to point (P2P), point to multipoint, or mesh wireless links. Though almost all video

cameras fit this definition, the term is most often applied to those used for surveillance in areas

that may need monitoring such as banks, casinos, airports, military installations, and convenience

stores. Videotelephony is seldom called "CCTV" but the use of video in distance education,

where it is an important tool, is often so called.[1][2]

In industrial plants, CCTV equipment may be used to observe parts of a process from a central

control room, for example when the environment is not suitable for humans. CCTV systems may

operate continuously or only as required to monitor a particular event. A more advanced form of

CCTV, utilizing Digital Video Recorders (DVRs), provides recording for possibly many years,

with a variety of quality and performance options and extra features (such as motion-detection

and email alerts). More recently, decentralized IP-based CCTV cameras, some equipped with

megapixel sensors, support recording directly to network-attached storage devices, or internal

flash for completely stand-alone operation.

Surveillance of the public using CCTV is particularly common in many areas around the world

including the United Kingdom, where there are reportedly more cameras per person than in any

other country in the world.[3] There and elsewhere, its increasing use has triggered a debate about

security versus privacy.

http://en.wikipedia.org/wiki/Closed-circuit_television#cite_note-Lewis-2

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/Surveillance

http://en.wikipedia.org/wiki/Network-attached_storage

http://en.wikipedia.org/wiki/Digital_Video_Recorders

http://en.wikipedia.org/wiki/Closed-circuit_television#cite_note-1

http://en.wikipedia.org/wiki/Closed-circuit_television#cite_note-0

http://en.wikipedia.org/wiki/Distance_education

http://en.wikipedia.org/wiki/Videotelephony

http://en.wikipedia.org/wiki/Surveillance

http://en.wikipedia.org/wiki/Broadcast_television

http://en.wikipedia.org/wiki/Video_camera

Closed circuit television cameras are used in a variety of circumstances to provide video

surveillance. School districts use CCTV to monitor the activity on school campuses. Businesses

use CCTV cameras to monitor the behavior of employees. CCTV can also help retail

establishments by providing protection against loss from theft. However, the use of CCTV

surveillance is not without controversy. Each establishment must weigh the benefits and

drawbacks to decide if CCTV is the right method of protection.

Crime Deterrent

If CCTV cameras constantly monitor a retail business, criminals will likely seek an easier target.

If employees know that they are constantly being watched, they are less likely to steal from their

employer or waste time on the job. School children who know that their every move is being

recorded may be less likely to carry guns to school or engage in criminal activities on campus.

Protect Employees

Customer service employees are often required to handle angry or frustrated customers. Face-to-

face interactions with an angry customer can put the employee in physical danger. CCTV

cameras may save employees from harm by monitoring these volatile situations. They also serve

as a deterrent from violent behavior by these customers.

Sponsored Links

o Manufacturing Software

Award Winning MRP Systems. Download Our Free MRP Info Pack!

www.Epicor.com/ERP

Keeps a Record

If a crime occurs in an establishment that has installed CCTV surveillance, investigation will be

aided by the video. If an argument occurs between two employees, the employer can consult the

videotape to determine what actually occurred.

CCTV Doesn't Always Work

Unfortunately, CCTV is usually not able to display every square inch of a business or facility.

Even if the cameras are positioned correctly, there is no guarantee that the cameras will catch

any crime or unwanted behavior done on the property. These cameras can sometimes be

thwarted by covering them up or by sticking a piece of chewing gum on the lenses. Someone

who is familiar with the property may still be able to get around the surveillance and avoid

getting caught. If the cameras are positioned incorrectly, the high traffic areas of the facility will

not be shown on camera. In this case, much of the behavior that the CCTV cameras are designed

to detect will not be captured on tape.

Privacy

CCTV surveillance sometimes causes controversy. Opponents of CCTV systems object to the

invasion of privacy that occurs with constant video monitoring. Employees under constant

surveillance by CCTV cameras often oppose such monitoring of their daily behavior.






S M S to +91 9995105420.

SMS Format


with in 24H




Best Regards, Admin



Q2. Illustrate the hardware buying process in detail.

Even if you follow the technology industry, keeping up with every change in processor speed

and every new software feature is a big challenge. While we can’t take the complexity out of the

buying process, we can provide a few questions and answers to help you focus your research.

Q3. What are the advantages of database management?

Database Management Systems Advantages

Warehouse of Information

Database management systems are warehouses of information, where large amounts of data can

be stored. The common examples in commercial applications are inventory data, personnel data,

etc. It often happens that a common man uses a database management system without even

realizing it. The best examples would be the address book of a cell phone, digital diaries, etc.

Both these equipment store data in their internal database.

Q4. Describe the types of computer networks.

A computer network, often simply referred to as a network, is a collection of computers and

other hardware components interconnected by communication channels that allow sharing of

resources and information.

http://en.wikipedia.org/wiki/Networking_hardware

http://en.wikipedia.org/wiki/Computers

Q5. What do you mean by Systems Vulnerability and Hazards? Explain

The ordinary use of the word ‘vulnerability’ refers to the capacity to be wounded, i.e., the degree

to which a system is likely to experience harm due to exposure to a hazard.

Q6. Write brief note on Compliance Management for IT in Retail.

The ViClarity system automatically requests information on key performance activities from the

divisional and regonal managers on a weekly, monthly or quarterly basis and enforces the level

of verification needed. It enables the directors to monitor delivery of both strategic and

operational objectives in real time on a single dashboard, to compare stores or departments.

ViClarity also tracks corrective actions where under performance is identified.






S M S to +91 9995105420.

SMS Format


with in 24H




Best Regards, Admin



Documents

ML0013, ML0013 – Retail IT Management , summer / spring 2012