Use of IT in Retail

Management
Submitted By:
Aakriti Suri 0191MBA002
Aditya Pratap Singh 0191MBA007
Gifty Sharma 0191MBA020
Kushagra Gupta 0191MBA032
Neel Gupta 0191MBA036
 INTRODUCTION

● The retail industry business has been around for centuries. It all started with
a community general shop where people of the community would shop for
items of necessity.
● As societies advanced with population increase leading to expanded cities,
and new advanced technologies gave rise to interconnectivity as well easy
communication between distanced cities or societies, opportunity for
specialty stores was formed.
● Retailers need to transform their IT capabilities for a number of reasons.
These include:

1. To respond to rapidly emerging trends and deliver superior quality products

and services to customers with flexibility and speed.
2. To raise brand awareness among customers, increase sales, retain existing
customers and attract new ones.
3. To aggregate and analyze customer data to enhance differentiation.
4. To operate the business more effectively retailers need to have systems
working across stores to ensure the effective use of products and to support
optimized business process.
5. To integrate different parts of a retail organization.
 Globalization
Globalization
of Business
Operations

Forecasting Competition

To
To meet
meet the
the
Store
Store expectations
expectations
Management of the
customers

Factors Responsible for Need of

Information Technology in Retail
Inventory Technological
Management Revolutions
 POINT OF SALE (POS)

● Point Of Sale: The

physical location of a
transaction but usually
refers to any device or
system used to record the
transaction for the retailer.
● CPOS: A computer-based
POS which employs
software to implement the
POS functionality.
 POS System Cash Register

Inventory Control Yes No

Invoicing and Receiving Yes No

Interfacing with Accounting Yes No

Reports Yes No

Enforced accuracy Yes No

Integrated CC handling Yes Limited

General Ledger Yes No

Accounts Payable Yes No

Accounts Receivable Yes No

Preferred by tax consultants Yes No

 RADIO FREQUENCY IDENTIFICATION(RFID)

As name implies, RFID is an ID-

identification- system. It relies on a small
chip that is implanted in a tag. The chip
can record and store data, such as a
serial number, price or purchase record.
Electronic scanner can use radio signals
to read or track the ID tag.
Use of RFID in Retail:
● RFID Smart Labeling
● Monitor unattended inventory
● Shipping and Receiving applications
● Provide real time tracking and
locating of tagged items on shelves
 SMART OPERATING SYSTEM IN RETAIL

● For retailers looking to move operations online, the key is looking for omnichannel
opportunities. This means expanding online offerings to include alternatives like
buy online and pick up in-store (BOPIS) and ship from store services.
● Machine learning is a valuable tool for retail operations as it can be used to build
models that define how to automate and optimize tasks.
● Here are some of the ways that machine learning is beneficial to retail operations:
○ Chatbots
○ Pricing
○ Flexibility
○ Inventory
○ Fraud detection
 WAREHOUSE MANAGEMENT SYSTEM

● Handling day-to-day warehouse operations such as inventory, shipping, sorting, and storing is a
hard nut to crack if you are not equipped with a customized, functional, and
recognized warehouse management system (WMS).
● The WMS is a software program or process that allows retailing people and organizations
control and manage warehouse operations, like:
○ Inventory management;
○ Picking processes and auditing;
○ Warehouse design;
○ Order fulfilment management,
○ Labour management,
○ Tracking capability;
○ Backups and integration;
○ Analytics and reporting
 ERP SYSTEM IN RETAIL INDUSTRY

● Enterprise Resource Planning (ERP) systems refer to the software packages that
integrate all the data and the related processes of an organization. Designed to
facilitate the optimization of internal business processes across an enterprise, ERP
packages have become a competitive tool for large retail organizations.
● The main components of a retail ERP system includes the following
1) Inventory Management
2) Retail Planning
3) Store Operations 
4) Supply Chain Management
5) Demand Forecasting 
6) Database Integration 
● ERP for retail helps retailers manage their businesses in an effective and
efficient manner by providing consistent information flow. It helps in easy
tracking of all business transactions. A retail ERP system allows automatic
recording of transactions in a real-time environment. They have become an
indispensable tool to survive and increase profitability in the retail sector. The
major competitive benefits of using an ERP system in the retail includes:
• Graphical User Interface (GUI) support
• Allows optimum utilization of the resources
• Reduction in the overhead and excessive inventory
• Timely responsiveness  
• Integrated work environment
• Easy scalability and adaptability
•  Sales Analytics
 CRM SYSTEM IN RETAIL INDUSTRY
● A customer relationship management system is capable of collecting and storing useful
customer information about your customer base. With automated data collection or
manual entries, you can build a great wealth of powerful information that you can use to
improve your company and make more money.
● CRM systems are capable of gathering and storing data about individual customers.
● Such data can include:
• Demographic information
• Shopping patterns
• Purchase history
• Preferences
• Contact information
• Customer service notes
 ROLE OF CRM IN RETAIL INDUSTRY
● In a retail business you deal with the customers directly and it is highly important that
you approach them with and take care of every detail and need so you can have loyal
customers and more number of buyers. It helps us in tracking our customers and allows
us to provide customer satisfaction with its services.
● Customer history
● Segmenting
● Tracking
● Promotions
● Purchase tracking
● Loyalty
● Cost effective
● New buyers
 TECHNOLOGY TRENDS IN RETAIL SECTOR

1. Loyalty Program Accessibility via Mobile Avenues

As things stand, loyalty programs are a big hit with consumers. Today, the retail sector
has witnessed the emergence of apps that can facilitate customizable experiences and
product recommendations based on consumer traits, activities and locations.

Take, for example, Starbucks. It has a policy of giving rewards to consumers who
choose to use its app. Consumers’ benefits range from ordering and paying in-app with
money or loyalty stars to receiving orders at a designated counter without the need for
human interaction. Simplicity coupled with personalization at its best!
2. Contactless payments

This new transactional model has been the solution for many industries from the start of
the pandemic to this point. However, when one takes into accounts the present dynamics
and that of the foreseeable future, there is every certainty that contactless interactions
will be the new normal even in the post-pandemic world. Various retail players and fintech
companies are working towards achieving the same through multiple technologies.

Although contactless payments have comprised a minority of transactions in the past, the
COVID-19-induced pandemic has driven consumers to their mass adoption. Popular
brands and retail chains have already adopted contactless payment options and so have
the others. In fact, digital payments in India now stand at Rs. 2,153 trillion, which is
approx. 961% of our GDP, and will become worth Rs. 7,092 trillion by FY2025 with a five-
fold growth in mobile payments.
3. Complete digitization of stores
By 2020, much of the data and analytics that transform e-commerce sites will also find utility
across physical stores by keeping track of consumers’ shopping activities. This transformation
means that the Internet of Things (IoT) will be a workhorse technology for the in-store shopping
experience, with broad applications encompassing store aisles as well as operations. The
information added to the existing data lakes will help retailers to predict and anticipate new
consumer trends and demands with greater accuracy, thereby serving their customers better.

As things stand, Amazon Go is set to take sensors to a new height by introducing staff-free
brick-and-mortar storefronts. It envisions equipping its convenience stores with sensors that
can identify pre-registered, regular customers along with the items they select and automate
the whole process by charging their accounts. To that end, some of the technologies that can
streamline this automated consumer experience manifest in the form of machine learning that
can identify specific items, and high-resolution cameras that include image recognition.
THANK
YOU