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Definition

Information Technology ± A Definition: We use the term information technology or IT to refer to an entire industry. In actuality, information technology is the use of computers and software to manage information. In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS). The information technology department of a large company would be responsible for storing information, protecting information, processing the information, transmitting the information as necessary, and later retrieving information as necessary.

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Kirana stores are owned and operated on a small scale, usually in a space of 500sq.ft. or less. These places are easily available within residential localities. However, for a supermarket to operate, a minimum of 2000 sq. ft. would be required, and usually, so much space would usually be found in commercial localities. Supermarkets have the benefit of economies of scale over kirana stores. Kirana stores are operated by the owners themselves and thus provide the benefit of low operational costs. Supermarkets are capable of eliminating the wholesalers from the chain and can provide benefits of saved margins. Kirana stores target a much smaller market than supermarkets and thus, can be more responsive in terms of their exclusive demands. Supermarkets often offer more variety to customers. Moreover, it is likely to receive the newly launched products earlier than kirana stores. Kirana stores are likely to be in the immediate locality and thus have a better understanding of customer preferences. Supermarkets often offer the best bargains, and experts from the company explain the usage and care of a particular product to its potential buyers. Kirana stores are more likely to provide services like free home delivery. Supermarkets have big names backing them; moreover they have stronger advertising, probably on national or state level. At the same time, there have been instances of kiranas selling at prices higher than the MRP and tampering with the quantity of loose products. Each of us knows our kirana store for a long time, probably from our birth or so. Thus, the customer-trust ratio is very high. The billing is also very fast when compared to the supermarket.

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Varying degrees of food and grocery supplies are usually available.e. from household products. cigarettes and other tobacco products. some being open 24 hours Types:Various types exist. Most stores carry cigarettes and other tobacco products. as well as feminine hygiene and contraception. in densely-populated urban neighborhoods. Convenience stores that are near fishing destinations may carry live bait. Stores that are part of gas stations may also sell motor oil. lottery tickets. They are often located alongside busy roads. at gas/petrol stations or near railway stations or other transportation hubs. to prepackaged foods like sandwiches and frozen burritos. Automobile-related items such as motor oil. In some countries most convenience stores have longer shopping hours.A convenience store is a small store or shop that may sell items such as sweets. and some of these stores also offer money orders and wire transfer services or liquor products. newspapers and magazines are sold. windshield washer fluid. Often toiletries and other hygiene products are stocked. ice-cream. ice-cream. Often toiletries and other hygiene products are stocked. such as nightcrawlers or crickets. lottery tickets. newspapers and magazines. maps and car kits may be sold. mini-markets (mini-marts) or party stores. and maps. the range of alcohol beverages is likely to be limited (i. for example: liquor stores (off-licences offies). Some of these stores also offer money orders and wire transfer services. soft drinks. Typically junk food (sweets. Unless the outlet is a liquor store. radiator fluid. . beer and wine) or non-existent. soft drinks). along with a selection of processed food and perhaps some groceries.

along with a parking area ± a modern. with interconnecting walkways enabling visitors to easily walk from unit to unit.[1] The sector in India is highly fragment with organization retail contributing to only 20% of total retail sales Today in India we see a rise in the purchasing power and growth of middle class which follows the western lifestyle. etc. and also the privately owned large retail businesses. Similar. that is. with malls following theories of how customers could best be enticed in a controlled environment. the local kirana shops. shopping centre or shopping precinct is one or more buildings forming a complex of shops representing merchandisers. income tax.A shopping mall. Types of retails:- The retail industry is divided into organised and unorganised sectors. etc. From early on. for example. on the other hand. convenience stores. especially the United States. paan/beedi shops. Unorganised retailing. Hence condition is conducive for rapid growth of organized retail in India The emergence of large organized retail chain like shopper stop. Organized retail such supermarkets accounts for just 4% of the market as of . Organised retailing refers to trading activities undertaken by licensed retailers. the concept of a mall having one or more "anchor" or "big box" stores was pioneered early. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. after World War II. and shopping malls corresponded with the rise of suburban living in many parts of the Western World. the design tended to be inward-facing. Modern "car-friendly" strip malls developed from the 1920s. with individual stores or smaller-scale chain stores intended to benefit from the shoppers attracted by the big stores. owner manned general stores. lifestyle and website are enticing consumer towards a retail style of shopping Retail in India s large industry after Agriculture with around 20% of the economically active population engaged in it and generation 10% of our country s GDP The opportunity in retail industry will increase since Indian retailers is on the threshold of a major change The organization retail sector has recognized that IT can give it an edge over the neighborhood Kirana store and more fields of opportunities for retail in the country. indoor version of the traditional marketplace. a shopkeeper of such kind of shops is usually known as a dukandar. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. hand cart and pavement vendors. refers to the traditional formats of low-cost retailing.[2] In India. These include the corporate-backed hypermarkets and retail chains. those who are registered for sales tax.

purchase decisions can be separated into two categories: status-oriented and indulgence-oriented. and gaming consoles.2008. Indulgence-oriented buying happens with those who want to enjoy life better with products that meet their requirements. over thirty regulations such as "signboard licences" and "anti-hoarding measures" may have to be complied before a store can open doors. Solutions providers have honed application expertise while software vendors now provide fieldproven. limitations of mass media and existence of counterfeit goods RFID:Consumer identification using RFID:. Indulgence-oriented products include plasma TVs. camcorders. microwave ovens and DVD players fall in the status category. This cards would be RFID enabled and would give information regarding the customer like preferences. When it comes to the festival shopping season. Challenges include: Geographically dispersed population.[11] While India presents a large market opportunity given the number and increasing purchasing power of consumers.8 million households in India have an annual income of over 45 lakh (US$101. dishwashers. iPods. CTVs/LCDs. shopping behavior etc The RFID ecosystem has come of age.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world. Encouraged by the development of industry standards.[3] The Indian Retail Market Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0. complex distribution network.[3] Regulations prevent most foreign investment in retailing. from states. there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Delving further into consumer buying habits. state-of-the-art home theatre systems. Moreover.this involves identifying customer by issuing them smart cards embedded with smart chips. high-end digital cameras. washing machines. Consumers in the status category buy because they need to maintain a position in their social group. little use of IT systems. retail-specific applications. major technology companies such as Microsoft. There are taxes for moving goods to states. refrigerators. small ticket sizes. and even within states. .[9] 1. it is primarily the status-oriented segment that contributes largely to the retailer¶s cash register.250)[10].

RFID is ready to provide value to retailers and their suppliers today. and other specialized functions. modulating and demodulating a (RF) signal. raise revenue and boost customer satisfaction in the retail sector. In the end. Most RFID tags contain at least two parts. Brand authentication technology enables an elegant and highly-effective method for ensuring that a high-value product is the real thing and not a cheap knock-off ± protecting both brand and customer satisfaction. An RFID tag is an object that can be applied to or incorporated into any object for the purpose of identification using radio waves. Oracle and IBM have made significant investments. size or application ² at very low cost and high return on investment. enabling tagging of any product. The second is the antenna to receive and transmit the signal.Intel. Tags now come in a wide variety of shapes and sizes. interoperable RFID within the grasp of many more users. which puts standard. Chipless RFID is a . Access to more accurate and frequent inventory data for both retailers and vendors improves product availability and reduces inventory costs. Drastically improved read rates have made previously untouchable applications effective and economically attractive to users. RFID is leading to higher revenue and profits for retailer and vendor alike. products.Items ¾ In-Store Inventory Management -. Promotional display deployment tracking ensures high-impact marketing and high ROI on marketing dollars. Gen 2 RFID provides many opportunities to reduce cost. animals or people using radio waves and microchip tags. There has been a flowering of new applications based on the higher utility of Gen 2 RFID. Asset tracking applications ensure efficient capital usage and accurate billing for pooled assets like pallets. The following retail applications can provide ROI using Gen 2 RFID today: ¾ Promotional Tracking ¾ In-Store Inventory Management -. The first is an integrated circuit for storing and processing information. This wireless technique relies on storing and remotely retrieving data using devices called RFID tags or transponders. Significant performance improvement in RFID hardware has led to a leap in capability. Some tags can be read from several meters away.Pallets ¾ Brand Authentication ¾ Inventory Visibility in the Supply Chain ¾ Asset Tracking What is RFID Technology? Description RFID is a method to identify objects.

Applications y y y y y y y y y y y Personnel identification. RFID tags can be read in any orientation to the reader/antenna. Benefits There are a number of advantages of RFID over the barcode. Assess integration of your business applications. RFID tags can be read while moving (i. 2. Process 1. Strengths of RFID Technology. safety and medication. Assess integration with your trading partners. RFID tags can be read several at a time. id-cards. No more creased barcodes. Assess management of your RFID readers and devices. Tracking of high-value assets with real-time location systems. Various administration usages. Cargo and container identification and security. Assess management of your processes. Transportation payments. 3.technology allowing for discrete identification of tags without an integrated circuit. while being deposited through a return chute). Visibility of supply chain objects through product tracking. Assess management of your data. RFID versus Barcode. 5. unlike barcodes. Furthermore.e. passports. Electronic toll collection. 4. Usage of RFID Technology. so merely being within proximity of a detection unit allows the data to be read. Livestock and animal identification and tracking. Assess your scaling capabilities and management of architecture. The tag does not have to be physically scanned or read in any way. Assess your numbering options. RFID tags can be read through desktops and book covers (no line of sight is required). Steps in applying RFID Technology. 7. . Money cards. printing tags directly onto objects. 6. Patient identification. Wireless commerce.

They actually depend upon the kind of application you need. The illicit tracking of RFID tags poses a risk to both personal location privacy and corporate or military security. that is a barcode scanner and the store clerk has just scanned a bar code affixed to the product you have bought to prepare your retail invoice. In an industrial scenario like this. then a different type of barcode scanner must be used. In more advanced scenarios. The right type of barcode scanners improve your efficiency at work and make your business into a profitable venture. Depending upon the requirements of your company. Therefore. The device is fixed while the product or object that needs to be scanned is typically moving. your business may as well as require a countertop model which is of a semi-automatic type. Security and privacy concerns. Disadvantages y y y y Cost. However. for retail requirements. Briefly explore the market and even do a casual search on the internet to find out what is best suited for your needs. . Moreover. This scanner typically bounces a laser beam off the bar code at a larger distance. but where there are a large number of products that require scanning. the product is usually on an assembly line. if your scanning requirements are for industrial use. you will discover that a handheld or wireless scanner is good enough for your needs. This scanner can be of a fixed mount type. No global standard. Certain veterinary and toxicology studies indicate that RFID chips may induce malignant tumors. Cancer risk. This is good where the volume of products required to be scanned are lesser. Have you been to a retail store where the individual at the checkout uses a device to scan the stuff you have just brought into the store computer? Well. Some retail units also use a pen or a wand type of scanner for their scanning requirements. There are a number of barcode scanners available in the market. and the barcode is generally larger in size that can be read even at a distance. The frequencies used for RFID in the USA are currently incompatible with those of Europe or Japan. one of the many types of barcode scanners available on the market will definitely suit your needs. RFID tags are more expensive than barcodes. This is because they save considerable time in processing data. Barcodes are much in use in the retail as well POS industry all around the world for identification of products and product tracking as well. they are used in product tracking and inventory management at larger warehouses and industrial organizations. A typical scenario for this scanner is a store checkout catering to a large volume of customers. but the right kind of scanner that you will need to buy is the one that suits your business more effectively. they push up your business efficiency considerably.Limitations of RFID Technology.

products are generally transported on a conveyer belt. one of the many types of barcode scanners available on the market will definitely suit your needs. for example. In more advanced scenarios. they are used in product tracking and inventory management at larger warehouses and industrial organizations. if the products need retention for a longer period. Depending upon the requirements of your company. they push up your business efficiency considerably. Scanner:- Have you been to a retail store where the individual at the checkout uses a device to scan the stuff you have just brought into the store computer? Well. then they require to be printed on normal labels rather than thermal paper. This is good where the volume of products required to be scanned are lesser. retail barcodes are generally small. Moreover. Here. they are usually printed on thermal labels. Some retail units also use a pen or a wand type of scanner for their scanning requirements. which fades after sometime. Barcodes are much in use in the retail as well POS industry all around the world for identification of products and product tracking as well. There are a number of barcode scanners available in the market. Briefly explore the market and even do a casual search on the internet to find out what is best suited for your needs. for retail requirements. However. This is because the retention period of retail products on store shelves is generally lesser than that of industrial products. and for this reason. you will discover that a handheld or wireless scanner is good enough for your needs. so it is generally not so important to retain these barcodes for a longer time. in an industrial warehouse. but the right kind of scanner that you will need to buy is the one that suits your business more effectively. that is a barcode scanner and the store clerk has just scanned a bar code affixed to the product you have bought to prepare your retail invoice. They actually depend upon the kind of application you need. your scanning requirements can be fully taken care of with the wide variety of barcode scanners available in the market. Therefore. This is because they save considerable time in processing data. provided you have the right type of software to go along with the scanning hardware. your business may . it is important for the scanning to be thorough and reliable. Therefore.However. but where there are a large number of products that require scanning. This scenario typically requires fixed barcode scanners or reader gate scanners for scanning. Moreover. The right type of barcode scanners improve your efficiency at work and make your business into a profitable venture.

Besides sales and inventory tracking. typically through a voluntary registration of discount cards. However. For example: y y y y y y Fast-selling items can be identified quickly and automatically reordered to meet consumer demand. This scenario typically requires fixed barcode scanners or reader gate scanners for scanning. it is important for the scanning to be thorough and reliable. and the barcode is generally larger in size that can be read even at a distance. for example. and for this reason. retail barcodes are generally small. they are usually printed on thermal labels. then a different type of barcode scanner must be used. allowing fast-moving more profitable items to occupy the best space. Here. products are generally transported on a conveyer belt. However. This scanner can be of a fixed mount type. then they require to be printed on normal labels rather than thermal paper. the product is usually on an assembly line. This is because the retention period of retail products on store shelves is generally lesser than that of industrial products. your scanning requirements can be fully taken care of with the wide variety of barcode scanners available in the market. Benefits In point-of-sale management. Moreover.as well as require a countertop model which is of a semi-automatic type. y When a manufacturer packs a box with any given item. enabling decisions to be made much more quickly and with more confidence. Therefore. provided you have the right type of software to go along with the scanning hardware. The device is fixed while the product or object that needs to be scanned is typically moving. This scanner typically bounces a laser beam off the bar code at a larger distance. the use of barcodes can provide very detailed up-to-date information on key aspects of the business. The effects of repositioning a given product within a store can be monitored. Historical data can be used to predict seasonal fluctuations very accurately. barcodes are very useful in shipping/receiving/tracking. A typical scenario for this scanner is a store checkout catering to a large volume of customers. However. which fades after sometime. if your scanning requirements are for industrial use. a Unique Identifying Number (UID) can be assigned to the box. While pitched as a benefit to the consumer. In an industrial scenario like this. This technology also enables the profiling of individual consumers. Items may be repriced on the shelf to reflect both sale prices and price increases. . if the products need retention for a longer period. preventing a build-up of unwanted stock. this practice is considered to be potentially dangerous by privacy advocates. so it is generally not so important to retain these barcodes for a longer time. Slow-selling items can be identified. in an industrial warehouse.

and how much to pay the manufacturer. It is used to transfer electronic documents or business data from one computer system to another computer system. It is more than mere e-mail. organizations might replace bills of lading and even cheques with appropriate EDI messages. and for special situations. for instance. For example.[15][unreliable source?] The exact error rate depends on the type of barcode.000 to 36 trillion characters entered. by agreed message standards. final destination. Even in this era of technologies such as XML web services. what's inside the box. with only about 1 substitution error in 15. the transmission of binary or textual data is not EDI as defined here unless the data are treated as one or more data elements of an EDI message and are not normally intended for human interpretation as part of online data processing. i. qty packed. When the shipment gets to the final destination. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media. from one computer system to another without human intervention'. e. the usual processing of received messages is by computer only. The information can be transmitted through a communication system such as Electronic Data Interchange (EDI) so the retailer has the information about a shipment before it arrives. items packed. EDI may be the data format used by the vast majority of electronic commerce transactions in the world. Shipments that are sent to a Distribution Center (DC) are tracked before being forwarded to the final destination.e. such as order number. EDI implies a sequence of messages between two parties. the Internet and the World Wide Web. for quality review. It goes on further to say that "In EDI. Most other definitions used are variations on this theme.y y y A relational database can be created to relate the UID to relevant information about the box. The National Institute of Standards and Technology in a 1996 publication [1] defines electronic data interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. It also refers specifically to a family of standards. the UID gets scanned. ." [1] EDI can be formally defined as 'The transfer of structured data. either of whom may serve as originator or recipient. UN/EDIFACT. etc.g. so the store knows where the order came from. ANSI X12. The reason barcodes are business-friendly is that the scanners are relatively low cost and extremely accurate compared to key-entry. Human intervention in the processing of a received message is typically intended only for error conditions. Electronic data interchange (EDI) is the structured transmission of data between organizations by electronic means. from one trading partner to another trading partner without human intervention.".

" The use of information technology has been an essential part of Wal-Mart's growth. for the farmers of India. a computerized system that identifies each item sold. farmers who are living in the remote area of the country and cannot manage to have direct contact with the consumer can come E-choupal has already become the largest initiative among all internet-based interventions in Rural India. which could negotiate lower wholesale prices due to its size. At its computerized warehouses. reducing the amount wasted by moving through the distribution channel of intermediary. Wal-Mart: attaining competitive advantage from information technology Wal-Mart is the world's largest and most profitable retailer. WalMart invested over $600 million in information systems. Arkansas to almost 2. the utter customer fixation that drives Wal-Mart. This allows automatic reordering and better coordination. Sam Walton was central to the legend. creates an accurate sales receipt for the customer. Over one 5 year period. national and international) related to different farming practices. He built his empire on a belief in providing value for the customer and empowering employees. ITC (Indian Tobacco Company) is planning to expand the concept of e-choupal further in 15 states of India. Only . Jack Welch. e-choupal: It is designed especially forward to have a direct contact. The Wal-Mart culture is built on obtaining the most current information about what customers want. E-choupal is present in 36. Wal-Mart's inventory and distribution system is a world leader. the bias for action. effective use of this information helps Wal-Mart avoid overstocking by learning what merchandise is selling slowly. Part of Wal-Mart's strategy for catching up was a point-of-sale system. Wal-Mart use telecommunications to link directly from its stores to its central computer system and from that system to its supplier's computers. Aside from handling information efficiently. many goods arrive and leave without ever sitting on a shelf. getting the best ideas from employees about how to run the stores well. CEO of General Electric said "Many of our management teams spent time there observing the speed. and stores this item-by-item sales information for use in analyzing sales and reordering inventory. with $44 billion in 1992 sales and 380.000 bright. attractive stores in 43 states is legendary in American business. Knowing exactly what is selling well and coordinating closely with suppliers permits Wal-Mart to tie up less money in inventory than many of their competitors. It provides an e-procurement system through which the farmers can access the latest and updated information (local. and sharing some of the profits with employees.000 villages through nearly 6.1. Its growth from a single store in Rogers. finds its price in a computerized database. who are called associates. Through e-choupal.000 kiosks across nine states. The way Wal-Mart operates has been a model for General Electric's quest to increase speed and productivity.000 employees. It provides real time information and customized knowledge to the farmers through which the farmer can take better decisions and can have direct contact with the customer. A decade ago Wal-Mart trailed K-Mart.

Some feel that Wal-Marts have killed the traditional business districts of some small towns. After two decades of experience. In other words.800 vendors now get daily sales data directly from Wal-Mart stores.10% of the floor space in Wal-Mart stores is used as an inventory area. Stepping away from the technology and back to Wal-Mart. With better coordination. The huge Wal-Mart stores on the outskirts of small towns have overwhelmed many merchants on Main Street. the productivity of modern retailing depends on bar code scanners. Aside from computers and telecommunications equipment. This reduced costs but also eliminated jobs of some of the clerks who formerly did the stamping. If this is true. the system of updating the prices is imperfect and may even be an opportunity for dishonesty. consumers in these towns receive the benefits of the best selection and pricing.200 purchases at three retail chains in California found mischarges on 5% to 12% of the purchases. the suppliers can have more consistent manufacturing runs. Other problems (not necessarily related to Wal-Mart) were uncovered when a UCLA study of 1. Wal-Mart is so large that it can sell products profitably at prices less than many small-town merchants' cost. the use of bar codes has brought a range of problems along with the benefits Wal-Mart and other retailers have realized. on the other. For example. a researcher was charged a scanner price of $21. but lose some of the benefits of living in a small town. The UPC codes that we see routinely today were chosen from a number of alternatives developed by different companies. Some 3. The use of bar code scanners made it unnecessary to stamp the price on every item (except in states that still require this for consumer protection). a standard method for identifying products with numbers and coding those numbers as the type of bar code shown in the photo. The first use of bar code scanners occurred in the 1970s. . compared to the 25% average for the industry. And 1. The idea of bar code scanning required that industry develop a universal product code (UPC) system. As happens with other uses of technology. the technical basis of the point-ofsale system is the bar code scanner.44." On the one hand. even its tremendous success has brought some problems. and pass some of the savings on to Wal-Mart and eventually the consumer. The Riverside. The ratio of overcharges to undercharges at one chain was as high as 5-to-1. development and acceptance of bar codes required agreements on standards. Bar code scanners make it possible to record the sale of each item and make that information available immediately for both reordering and sales analysis.500 have the same decision and analysis software that Wal-Mart's own buyers use to check how a product performs in various markets. the majority of the mistakes were overcharges. Consistent with the adoption of any information technology. not undercharges. lower their costs. California district attorney who prosecuted three retailers for scanner overcharges said.99 for a pair of jeans that were marked on sale for $15. accurate inventory tracking using bar code scanners is a competitive necessity for large grocery stores and retailers. "I don't believe scanners have helped the consumer at all.

and we wanted to be the first to execute it. efficacy of tag use. Pantaloon Retail (India) has piloted an RFID project at one its warehouses in Tarapur using 1. inventory accuracy. "We want to use IT as a strategic tool to differentiate ourselves in the marketplace with new initiatives such as the RFID project. its ability to keep track of over-produced items. operational overhead. product buffering. the company decided to deploy RFID there. Traceability & visibility of goods in the supply chain. the RFID initiative was more to do with improving the efficiency of the entire supply chain as it has become economically viable (for piloting). human intervention in processes leading to errors. forecasting. Taking a cue from this. Deshpande says. considerable human intervention was required and barcode readers had been installed at all merchandising locations. CIO of Pantaloon. Since Tarapur is Pantaloon's central warehouse. these challenges led to lack of co-ordination with the backend at the stores. Simplicity wins the day Pantaloon went in for RFID for its simplicity of tagging.000 RFID tags. asset utilisation." Customer focus The company began to focus more on IT to bring in greater transparency in its customer relationships and to streamline its supply chain. Pantaloon is starting from where it matters the most-the real advantage is to implement this technology at the warehouse and then extend it to branch offices or retail outlets. Says Chinar Deshpande.Pantaloon's experiment with RFID : Much has been written about Radio Frequency Identification (RFID) and what it can do to manufacturers±improve production operations. and finally. and tracking reverse logistics were some of the issues at the apparel factory. lack of unique identity at each item level. and fast-moving product-lines. . product-line lead time at the warehouse. and make it transparent. customer satisfaction by pinpointing the location and status of products as they move through the manufacturing and retail value chain. Additionally. effort required for production cycle counting. the entire process had to undergo two to three steps before it reaches outlets. We want to automate the entire supply chain from suppliers to warehouse to stores. hampering the company's production planning and inventory management." At each step. While a SAP implementation is currently underway. "Whenever we procure merchandise from our suppliers.

retailers are seeing clearly that technology's role is one of an enabler. the entire supply chain is becoming more intelligent. The retail industry faces specific IT management challenges: y y y Transparency and tracking: Retailers need greater transparency between systems and better tracking to integrate systems from manufacturer through to consumer to obtain customer and sales information. The goal is to enhance business processes and keep up to date with innovation to become a high-performance business. As the hype around technology decreases. Global data synchronization: Enabled by radio frequency identification/electronic product coding.Pantaloon selected a few lines of apparel. It is spread all over the world. These include: y y y To aggregate and analyze customer data to enhance differentiation. Today's retailers need to transform their IT capabilities for a number of reasons. To operate effectively. The RFID application developed by Wipro Infotech was tailored to the overall solution in line with Pantaloon's business processes and IT landscape. This creates what Accenture calls Silent Commerce. speeding up of processes and delivering cost savings. Historical existence of the industry is clear by the definition itself. To increase a company's ability to respond to a rapidly changing marketplace through enhanced flexibility and speed.. Benefits for retailers include enabling the use of real-time data to monitor inventory levels. and has a history that is almost as long as human nature. primarily shirts and trousers-John Miller formals and casuals-for its RFID pilot. Customer data: Information overload is a challenge for retailers because they need to collect and sift through data to convert it into useful information in a customer-centric industry. Today it has a wide scope . Accenture collaborates with companies to meet the need for positive IT management. The definition for Retail is 'Sale of goods in small quantities to the public. Use of IT in retail:Overview IT transformation is a key factor in achieving high performance for retailers. Use of IT in the Retail Industry Retail industry is one of the most prominent business categories in the modern world. usually not for re-sale'. Accenture can help you streamline information technology to enhance overall performance. Radio frequency identification tagging also positions the company to better safeguard its shipments by enabling the tracking of products from manufacturer through the supply chain. retailers need to have one system working across stores (sometimes across national borders) to ensure the most effective use of stock and to support optimized business processes..

the retail industry provide a marketplace where people as consumers. Retail Information Technology. As an example. But imagine a large supermarket chain having several stores and within each store. It is the business that requires systems and adopts suitable ones for them and not the other way round.9 percent of all business establishments in the United States. The second largest retailer in the world is France's Carrefour. even for the retail industry. which we use today. As an example. While manufacturing industries create the goods and services that people need. and it is wrong to believe that technology. The retail sector is one of the largest industries worldwide. Therefore. payment types such as credit cards came in to play and systems in the future would need to handle tendering offered through mobile phones(May be a payment order bound to a bank sent through a SMS(Short Message Service) of mobile phones). The number of new tender types is on the rise with the advancement of technology. cash was the only mode of tendering. Wal-Mart is the world's largest retailer and the world's largest company with more than $256 billion (USD) sales annually. commonly known as Retail IT has become very important in this sense. A basic retail system would have a Point-of-Sale (POS) system to sell goods to the customers. allow periodic reports etc. networking and . Wal-Mart employs more than one million associates in the United States and more than 300. Computerizing retail stores became a common practice some years ago. application of advanced IT solutions would go on. Customer handling is a critical aspect of retailing since it deals with customers directly. This can be considered as the front-end of the retail system. since traders have understood the ease it could give for large volume of customer handling. apply special discounts. have convenient access to those products and services. Therefore. since development is never-ending. is the best. In such a situation.000 internationally. Stores also range from large supermarkets to small village boutiques.which spans from house hold items such as bread. jewelry etc. a small supermarket having a single store would be well off with a standalone system operating on a single machine. Retail industry drives the economy of a country. A good retail system should be competent in enabling users to tender in different types. but later. but research and development in the areas have not ended. several terminals. IT evolves day by day. sugar to electrical and electronic items. Complexity of the system would increase with the complexity of the business requirement. handle special categories of customers etc. few decades back. The back-end of the system should manage stores. The system depends on the business requirements. And it is the second-largest industry in the United States both in number of establishments and in the number of employees. functionality scope of a system is purely driven by the business itself. update accounts. Retail trade accounts for about 12. The system should be able to handle customer returns. A POS would normally allow cashier to issue goods and tender.

Database updates related to store management would become quite tricky with both software and hardware advancements needed. employees. the operational efficiency to ensure profit. hardlines. Arkansas to almost 2.000 bright. The Wal-Mart culture is built on obtaining the most current information about what customers want. and softlines retailers with a means to turn today's challenges into opportunities with solutions that help drive profitable multichannel retailing by offering retailers the insight to better understand your shoppers and business. The solutions cover merchandise lifecycle management and planning. and softlines retailers. and core finance and human resources capabilities for grocery. hardlines. Its growth from a single store in Rogers. and the adaptability to capitalize on the best opportunities to grow. with $44 billion in 1992 sales and 380. shopper experience. attractive stores in 43 states is legendary in American business. anticipate their business needs. store operations. and inspire their shoppers. The SAP for Retail solution portfolio provides grocery. SAP for Retail helps retailers to better understand their business. Sam Walton was central to the legend. who are called associates.communication would also be issues that need to be addressed. and sharing some of the profits with employees.000 employees. CEO of General Electric said "Many of our management teams spent time there . and shareholders by delivering results. Jack Welch. He built his empire on a belief in providing value for the customer and empowering employees. supply chain. About SAP® for Retail SAP® for Retail is a solution portfolio for end-to-end retail management that allows retailers to base operations around common insight into the business. The way Wal-Mart operates has been a model for General Electric's quest to increase speed and productivity. SAP provides retailers with proven solutions for: y y y y y y y y y y y Business intelligence Customer loyalty Merchandising Merchandise and assortment planning Price optimization Promotion management Forecasting and replenishment Warehouse management Workforce management Point-of-sale Sustainability performance management Wal-Mart: attaining competitive advantage from information technology Wal-Mart is the world's largest and most profitable retailer. getting the best ideas from employees about how to run the stores well.

Bar code scanners make it possible to record the sale of each item and make that information available immediately for both reordering and sales analysis. Knowing exactly what is selling well and coordinating closely with suppliers permits Wal-Mart to tie up less money in inventory than many of their competitors.observing the speed. creates an accurate sales receipt for the customer. the bias for action. Only 10% of the floor space in Wal-Mart stores is used as an inventory area. Aside from handling information efficiently. Other problems (not necessarily related to Wal-Mart) were uncovered when a UCLA study of 1. compared to the 25% average for the industry. Aside from computers and telecommunications equipment. Some 3. Wal-Mart use telecommunications to link directly from its stores to its central computer system and from that system to its supplier's computers. As happens with other uses of technology." The use of information technology has been an essential part of Wal-Mart's growth. and stores this item-by-item sales information for use in analyzing sales and reordering inventory. With better coordination. This reduced costs but also eliminated jobs of some of the clerks who formerly did the stamping. And 1. lower their costs. finds its price in a computerized database. At its computerized warehouses. The UPC codes that we see routinely today were chosen from a number of alternatives developed by different companies. Over one 5 year period. The first use of bar code scanners occurred in the 1970s. This allows automatic reordering and better coordination. which could negotiate lower wholesale prices due to its size. the suppliers can have more consistent manufacturing runs. A decade ago Wal-Mart trailed K-Mart. After two decades of experience. many goods arrive and leave without ever sitting on a shelf. WalMart invested over $600 million in information systems. Wal-Mart's inventory and distribution system is a world leader. and pass some of the savings on to Wal-Mart and eventually the consumer. the use of bar codes has brought a range of problems along with the benefits Wal-Mart and other retailers have realized. Consistent with the adoption of any information technology. Part of Wal-Mart's strategy for catching up was a point-of-sale system. The idea of bar code scanning required that industry develop a universal product code (UPC) system. the utter customer fixation that drives Wal-Mart.200 purchases at three retail chains in California found mischarges on . development and acceptance of bar codes required agreements on standards. effective use of this information helps Wal-Mart avoid overstocking by learning what merchandise is selling slowly.500 have the same decision and analysis software that Wal-Mart's own buyers use to check how a product performs in various markets. a computerized system that identifies each item sold. The use of bar code scanners made it unnecessary to stamp the price on every item (except in states that still require this for consumer protection). the technical basis of the point-ofsale system is the bar code scanner. accurate inventory tracking using bar code scanners is a competitive necessity for large grocery stores and retailers. a standard method for identifying products with numbers and coding those numbers as the type of bar code shown in the photo.800 vendors now get daily sales data directly from Wal-Mart stores.

For example. not undercharges." On the one hand. California district attorney who prosecuted three retailers for scanner overcharges said. Low skill level for retailing management. retailing needs to cross the following hurdles:[18] y y y y y y y y Automatic approval is not allowed for foreign investment in retail. even its tremendous success has brought some problems. SAP The problem is not the software²the SAP Retail module now handles both the volume of transactions and the complexity required by the retail industry. The primary culprits are data . on the other. a researcher was charged a scanner price of $21. One such skill development initiative has been taken by TKWs Group. Regulations restricting real estate purchases. skill development of village youth. but lose some of the benefits of living in a small town. Wal-Mart is so large that it can sell products profitably at prices less than many small-town merchants' cost. To overcome some of the challenges faced by modern retail. Challenges Challenges(optional) To become a truly flourishing industry. the majority of the mistakes were overcharges. TKWs Retail School is also associated with government projects like enhancing retail experience of foreign tourists. In other words.44. constant threat of product obsolescence and low margins. and cumbersome local laws.99 for a pair of jeans that were marked on sale for $15. Some feel that Wal-Marts have killed the traditional business districts of some small towns. Absence of developed supply chain and integrated IT management.5% to 12% of the purchases. If this is true. Lack of Retailing Courses and study options Intrinsic complexity of retailing rapid price changes. the system of updating the prices is imperfect and may even be an opportunity for dishonesty. Taxation. The huge Wal-Mart stores on the outskirts of small towns have overwhelmed many merchants on Main Street. "I don't believe scanners have helped the consumer at all. Stepping away from the technology and back to Wal-Mart. consumers in these towns receive the benefits of the best selection and pricing. Lack of trained work force. Its TKWs Retail School has already training over a thousand students and retail professionals for different retail skills. improving retail of handicraft and local produce. the country is developing a support infrastructure in form of specialised retail schools. The Riverside. The ratio of overcharges to undercharges at one chain was as high as 5-to-1. which favours small retail businesses. the productivity of modern retailing depends on bar code scanners.

push cart. invoice-to-PO matching. Data entry often falls to temporary workers who do not have the expertise to make sense of. Many payment errors can be attributed to insufficient controls and quality checks on the data conversion and data entry processes. credit notes and memos. In one Americas SAP Users¶ Group (ASUG) survey. complicated terms and allowances. 93% of respondents said that data management issues negatively impacted their projects. the old base level.quality and user errors. Based on the experience of other large retailers. Over 12 million small and medium retail outlets exisits in india the highest in any country Traditional retail formats are highly popular in small towns and cities with primary presene of neighbourgood(kirna stores. and correcting GR/IR Balancing. Even with training. some of the data (or even most. melas and mandies) . The quality of transactions will depend upon the quality and integrity of the data entered into the system. users will make mistakes in data entry and clearing and in reconciling unfamiliar error and exception reports until they have been on the system for many months. The other culprit is related to the ongoing use of the system. ongoing challenges include: duplicate payments. treatment of undercharges. For pricing and multiple layers of SKUs. Some of the most common. deal and promotion time frames. conditional allowances. the dollar amount of recoveries will subside back to. variance handling. Unfortunately. Transistion from traditional to modern retailing:With a share of 95% of totaol retail revenews traditional retailing continues to be the backbone of the retail industry. or properly code. The good news is that the spike in recoveries is just that²a spike. depending on the legacy system) is entered manually. A large volume of data must be transferred from an old system (or systems) into SAP. this master vendor data feeds all of the payments processes. vendors. or below. family product management.