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A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL

STORES IN VIJAYAWADA
(With Reference to – BIG BAZAR)

Management Thesis Submitted to

K L University Business School


In partial fulfillment of requirement for the award of degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
S. Naga Mahesh
Reg No: 09101923

Under the Guidance of


Mr. V. Srinivas,
Assistant Professor

KL UNIVERSITY BUSINESS SCHOOL, KL UNIVERISTY


VADDESWARAM, GUNTUR DIST
2009-2011

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A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL
STORES IN VIJAYAWADA
(With Reference to – BIG BAZAR)

Management Thesis Submitted to

K L University Business School


In partial fulfillment of requirement for the award of degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
S. Naga Mahesh
Reg No: 09101923

Submitted on: 3-12-2010

Under the Guidance of


Mr. V. Srinivas,
Assistant Professor

KL UNIVERSITY BUSINESS SCHOOL


VADDESWARAM, GUNTUR DIST
2009-2011

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CERTIFICATE

This is to certify that the Management Thesis titled “A STUDY ON EFFECTIVENESS OF MIS
IN ORGANISED RETAIL STORES IN VIJAYAWADA (With Reference to BIG BAZAR)”
submitted by me to Dr. G. Suneetha, Associate Professor my Faculty Supervisor during Semester
III of the MBA Program (The Class of 2009 - 2011) in partial fulfillment of my MBA Program
requirements embodies original work done by me.

Signature of the Student

Name : S. NAGA MAHESH


Enrolment No : 09101923

Signature of the Faculty Supervisor

Name : DR. G. SUNEETHA


Designation : Associate Professor

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DECLARATION

I hereby declare that this management thesis report entitled “A STUDY ON EFFECTIVENESS
OF MIS IN ORGANISED RETAIL STORES IN VIJAYAWADA (With Reference to BIG
BAZAR)” has prepared by me in partial fulfillment of the requirement for the award of degree of
Master of Business Administration under the guidance of Mr. V. Srinivas, Assistant Professor of
KLUBS.

I also declare that this project is the result of my own efforts and it has not been submitted
to another university for the award of any Degree or Diploma.

Place:
Date:

(S. Naga Mahesh)

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ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to my Institute KLUBS because of which I got
this opportunity to work on the management thesis. I must also express my thanks to all the
faculty members of my Institute who extended all help and cooperation, as and when required.
My special thanks to Mr. V. Srinivas, Assistant Professor of KLUBS who gave valuable
guidance to me, without that my thesis would not have been possible.

I take this opportunity to thank those who helped me to make this thesis a better work through
their constructive criticism, helpful suggestion and over all support.

I am honored to extend my sincere thanks to my HOD Dr. Sheela Srivastava and Professor V.
Rama Devi for expressing their faith on us by assigning this management thesis work . Their
ideas and support always guide me in the completion of the thesis in time with their advice and
encouragement stood us in good stead and a constant source of inspiration for my throughout the
tenure of thesis work.

I acknowledge the cooperation of those individuals who had taken time to participate in filling
questionnaire without which my thesis would have been incomplete.

I am also thankful to my family, friends for their support in successful completion of this thesis.

S. Naga Mahesh

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TABLE OF CONTENTS

CHAPTER NO. PAGE NO.


TOPIC

I. LIST OF ABRIVATIONS 1

II. 2
ABSTRACT

III. 3-22
INTRODUCTION
IV. COMPANY PROFILE 23-26

V. 27-34
REVIEW OF LITERATURE
VI. 35-38
RESEARCH METHODOLOGY
EMPIRICAL ANALYSIS AND
VII. 39-48
INTERPRETATION
VIII. TABLES AND GRAPHS 41-48

IX. FINDINGS 49-51

X. CONCLUSION 52

XI. QUESTIONNAIRE 53-54

XII. BIBLIOGRAPHY 55

XIII. GLOSSARY 56-60

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CONTENTS

List of tables/illustrations 41-48

Graphs/Charts 41-48

Abstract 2

CHAPTER 1 Introduction 3

1.1 Objectives 26

1.2 Description of the problem 26

1.3 Justification of the study 26

CHAPTER 2 Review of Literature 27

CHAPTER 3 Research Methodology 35

CHAPTER 4 Data Analysis and Interpretation 39

CHAPTER 5 Findings 45

CHAPTER 6 Conclusion 52

References/ Bibliography

LIST OF ABBREVIATIONS

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MIS Management Information System

MAT Maintenance Access Terminal

MIPS Million Instructions Per Second

GRDI Global Retail Development Index

VMIS Vendor Managed Inventory Systems

POS Point Of Sales Systems,

RFID Radio Frequency Identification,

OLAP Online Analytical Processing

SCMS Supply Chain Management Systems,

CRMS Customer Relationship Management Systems

ERPS Enterprise Resource Performance System

SCM Supply Chain Management

IT Information technology

SCOR Supply Chain Operations Reference

POS Point Of Sale

ECR Electronic Cash Registers System.

PCO Point Of Control And Observation

PCS Patchable Control Store

QIC Quality Information Using Cycle Time

FD Automatic File Distribution

DBMS Data Base Management System


ABSTRACT

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Indian organised retail industry is poised for growth. Rapid state of change due to speedy
technological developments, changing competitive positions, varying consumer behavior as well
as their expectations and liberalized regulatory environment is being observed in organized
retailing. MIS (MANAGEMENT INFORMATION Systems) which provide timely and accurate
information can be viewed as an integrated entity providing management with the tools and
information to assist their decision making. This is a Complete MIS system which includes
Customer Support System, Financial Management System, Inventory Control System Including
Sales, Purchase, Bills Receivable and Payable, Income and Expense maintenance.

MIS stores Customer Information so that it can be referred later on that helps In
Customer Support System. When you perform any purchase or sales transaction it automatically
updates inventory and you can have current stock report. You can also issue bills to customer
from this software as soon as you issue sales transaction. Moreover it also have reminder that
reminds you On Due bills which is available at the bottom of the software. You can also add new
customer records in Case of future reference. Comparison across national chain and local
organized retailer in grocery sector reveals that national chain having implemented ERP partially
are mostly using the same for majority of operational decisions like inventory management,
CRM, campaign management. Two local players use spread sheets and in house software to
make the above operational decisions. The benefits realized remain the same across the retailers.
Prioritization as well as quantification of benefits was not communicated. The issues of
coordination, integration with other systems in case of ERP usage, training were highlighted.

Management Information Systems are one of the major tools available to business
managers for achieving operational excellence, developing new products and services, improving
decision making, and achieving competitive advantages. In the retail industry, especially in the
midstream and downstream sector management information system has streamlined the business
operations. Effective network systems for better connectivity, better IT infrastructure for
effective data handling, software for data analysis and future sales projections, efficient ERPs
(enterprise resource planning) has brought the organizations competitive advantage.

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CHAPTER-1

INTRODUCTION

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INTRODUCTION

Management Information Systems (MIS) is a system consisting of people, machines,


procedures, data base and data models, as its components. The system gathers data from Internal
and External sources of an organization; processes it and supplies Management Information to
assist managers in the process in decision making. Thus it is safe to conclude that an information
system is "a system consisting of the network of all communication channels used within an
organization".

An information system comprises of all the components that collect, manipulate, and
disseminate data or information. It usually includes hardware, software, people, communications
systems such as telephone lines, and the data itself. The activities involved include inputting
data, processing of data into information, storage of data and information, and the production of
outputs such as management reports.

Retailing as simply defined is the end process of supply chain management where there is
a direct interaction with the end-user or the customer. Hence forth availability, assortment,
display, proper handling of product plays a vital role in a competitive world.

STAGES OF RETAILING
Retailing does not only comprise of selling the products to customer but it is also taking
care of the entire product movement cycle. This path from manufacturer to the consumer has a
very important stage known as the Retail Supply Chain. The retailing cycle involves the
following key components:
1. Suppliers and/or Manufacturers
2. Logistics Partners
3. Warehouse
4. Distribution Centres
5. Stores
6. Customers
POPULAR FORMATS OF RETAILING

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Since the retail industry covers a wide range of corporations, it can be classified in
various formats. However the most popular format of classification is by the type of business
channel the retailer implements to do business. Some of the popular categories are:

Mom-and-Pop Stores: This is represented by the small, individually owned and operated retail
outlet. It is often seen that these are family-run businesses which cater to the local community
and are capable to provide high level of service. However they often have a limited product
selection.

Mass Discounters: These are the type of retailers who sell either general or specialty
merchandise. But their forte is in offering discount pricing to their customers. Compared to
department stores, mass discounters offer fewer services and lower quality products.

Warehouse Stores: This is a form of mass discounter retailer. The prices offered by these types
of retailers is even less than traditional mass discounters. However, the constraint on buyers is
that they need to make purchases in quantities that are greater the quantities that can be
purchased at mass discount stores. The level of service is often low and product selection can
also be limited. Also notable is that these stores are of warehouse style where customers might be
found selecting products off the ground from a shipping package. Another form of warehouse
stores is warehouse clubs where customers need to be members to be able to make purchases.

Category Killers: Major retailers also focus on a concept of specialty stores wherein they
service by providing multitude of options within that product category. In Indian parlance, the
concept of “category killers” is often found in the product categories as electronics (The E-
Zone), office supplies (Office Link) and Books (Crosswords).

Department Stores: These retailers offer mid-to-high quality products and strong level of
service. However in most cases these retailers do not fall into the full-service category. Even
though the Department stores are classified as general merchandisers; some retailers may opt to
carry a more selective product line. For instance, while Big Bazaar carries a wide range of

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products from grocery to electronics, Shoppers Stop focuses primarily their products on apparel
and lifestyle products.

Boutique: These are usually small stores catering very specialized or niche products which is
often high-end merchandise. Also in all cases the level of service is very high for this format.
They often follow a full-pricing strategy and have prices which are more than the prices of
merchandise available in any of the other formats.

Catalogue Retailers: The concept of this form of retailing is that the customers will place orders
after seeing products from a published catalogue. Tata Sons retail venture Croma utilizes this
business channel. Orders can either be delivered by in house logistics or a third-party shipper.
The format utilized by McDonalds and Pizza Hut outlets for their delivery model can be
identified as this format.

E-tailors: In this format the retailer principally sells via the Internet. There are thousands of
online-only retail sellers of which EBay is the most famous in India. The benefit of this format
for customers is that it is open 24X7 and for the retailer is that it does not need to stock the
merchandise.

Franchise: This form of retailing comprises of a contractual channel where one part the
franchisor controls the business activities of the other party franchisee. The franchisee has access
to the franchisor’s business methods and other important business aspects, such as the franchise
name. In return the franchisee shares a part of the revenue with the franchisor. The common
examples are McDonalds and Pizza Hut.

Convenience Store: As the name implies these general merchandise retailers cater to offering
customers an easy purchase experience. Convenience is offered in many ways including through
easily accessible store locations, small store size that allows for quick shopping, and fast
checkout. The product selection offered by these retailers is very limited and pricing can be high.

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Vending: This form of retailing involves utilizing automated methods for customers to quickly
purchase the desired product. This can be interactive kiosks and vending machines. The presence
of vending machines for purchase of smaller items, such as beverages and snack food, is already
common in case of products like beverages and magazines. However newer devices are entering
the market which will be able to vend more expensive and bulkier products. By access of either
Internet or telecommunications link, these systems will enable customers to use credit cards.

THE RETAILING CHALLENGE

The challenge of retailing is to strike the balance between cost optimization and
maintaining the level of service. The tradeoff between these factors is a dynamic one and
retailers have to Endeavour to strike a balance towards it all times.

CONCERNS AMONG RETAILERS

In the global context, for retailers to be successful need is to address various issues which
are inherently related to their business. The key issues include:

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 Customer satisfaction: Customer satisfaction is one of the most important factors which
determine the success of business. Only way to keep customers loyal is by making them
satisfied. Needless to say the retailers need to have strategies in place that build
relationships with customers and hence customers keep returning to make more
purchases.

 Ability to Acquire the Right Products: The ability to provide the right product will
make the customer satisfied. As most retailers do not manufacture the products they sell,
they need to collaborate with their suppliers in order to provide the product demanded by
customers. Hence, the retailers who constantly identify the products the customer will
demand and negotiate with suppliers to obtain these products.

 Product Presentation: Often the suppliers provide the basic product and retailers need to
generate interest about the product while presenting to customers. The merchandising of
the product from packaging stage to putting on the shelf is very crucial. Hence the
retailers need to employ creative people who understand and can relate to the market.

 Traffic Building: Retailers need to focus on marketing aspects as well. The main focus is
to create customer interest using promotional methods. The best way to measure the
customer interest is by the number of people visiting a retail location or website which
more commonly known as footfalls and the measure is known as footfalls per square
feet. Traffic Building is actually a judicious mix of promotional techniques such as
advertising, including local newspapers or Internet, and customer loyalty programs and
specialized promotional activities, such as coupons.

 Layout: Layout of the store covers attributes which are much more than the physical
dimensions of the store and product arrangement. For most retailers, the layout should be
of great visual appeal to customers as well it should cover the basics of ergonomics.
Many retailers often keep renovating according changing trends and create makeovers to
create the right shopping atmosphere (Motifs, objects, light, sound) can add to the appeal

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of a store. In the online context also the layout of a website is very important as factors
like easy site navigation and usability are crucial deciding factors for success.

 Location: The decision of setting up a store is incomplete without incorporating the


significance of location. Stores located in easy access and which have high visibility,
might command higher land usage fees but may hold significantly more value than lower
cost sites that yield less traffic. It is important to evaluate the trade-off between costs and
benefits of locations before arriving at a retail decision.

 Technology: Technology has become the basic fabric of the retailing industry today.
Perhaps the most important fact is that retailers who do not understand the ways to use
technology for competitive advantage will be left out in the competition. The use of
technology is present in each and every of retailing including customer knowledge
(Customer relationship management software), product movement (Use of RFID tags for
tracking), point-of-purchase (Scanners, kiosks, self-serve checkout), web technologies
(Online shopping carts, purchase recommendations) and many more. Retailers will not
only need to implement technology in their operations but also challenge their ways of
doing it to succeed.

INDIAN RETAIL INDUSTRY

The sea of change can pull customers in many directions. It is our responsibility to light
the way and take care of them… before the competition does.

Retailing Means “Re-tailing” to the customers so that they comeback.


Retailing consists of all activities involved in selling goods and services to consumers for
their personal, family, or household use. It covers sales of goods ranging from automobiles to
apparel and food products, and services ranging from hair cutting to air travel and computer
education. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are
not considered a retail activity.

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The Indian retail story couldn't have been more different. India has approx 12 million
retail stores, more than rest of the world put together. But the per capita square feet area under
retail is just 2 sq.ft or 0.2 sq. meters with fragmented kirana stores being the predominant
players.

Retailing in India has remained in the unorganized sector and largely untouched by
corporate. The first decade of modern retail in India has been characterized by a shift from
traditional channels to new formats including department stores, hypermarkets, supermarkets and
specialty stores across a range of categories.

Modern retail formats have mushroomed in metros and mini-metros, in the last few years
modern retail has also established its presence in the second rung cities. Thus, exposing the
residents of these cities to shopping options, they have never experienced before. It has been
forecasted that the share of modern retail will increase from 2 per cent currently, to about 15-20
per cent over the next decade. To begin with, retailers today will have to support the large retail
infrastructure in terms of Malls and Superstores that are being created. The challenge for leading
retailers shall therefore shift from diverting demand to creating demand.

With all the modern stores offering convenience in terms of an assortment of products,
ambience, service and innovative products, the paradigm shall shift from competing with the
kirana stores to an in-house demand creation. Relevant experiences from consumer goods
companies, which have successfully crafted an explosion in demand in their sectors, through
innovation, consumer driven strategies, will be head runner. Times are changing. With the GDP
at an all time high and income levels shooting through the roof, the average Indian consumer has
never had it so good. The propensity to consume has reached peaks that had never been scaled
before. Credit cards are flashed with disdain and shopping baskets are getting bigger all the time.
Here are some factors that indicate the potential of retail in India:

• At 271 million, one of the largest consuming base in the world, forming 27% of the total
population.
• A high spending community below 45 years comprises 81 percent of the population.

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• A young population with 54% population below 25 years
• Increased literacy from 44% in 1965 to 70% in 2003
• Increase in working women from 1.3 million in 1961 to 4.8 million in 1998.

The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores, hypermarkets, supermarkets
and specialty stores across a range of categories. Modern retail formats have mushroomed in
metros and minimetros.

In the last few years, modern retail has also established its presence in the second-rung cities,
exposing residents to shopping options like never before. However, even as modern retailers
garner share from traditional channels, there is a larger role they would be required to play in
boosting consumption levels. Figures suggest that the total turnover of the sector is around Rs 10
lakh crores, of which 4 percent is contributed by the organised sector.

The retail sector in India is highly fragmented with organized retail contributing to only 2%
of total retail sales. The retail sector in developed countries was also highly fragmented at the
beginning of the last century but emergence of large chains like Wall Mart, Sears, and
McDonald’s led to rapid growth of organized retail and growing consolidation of the retail
industry in the developed countries.

Organized retail is growing rapidly and we see the emergence of large organized retail chains
like Shopper’s Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over the
country. The opportunities in retail industry in India will increase since Indian retailing is on the
threshold of a major change.

India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favorable demographic
patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200
billion. India retail industry is one of the fastest growing industries with revenue expected in

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2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-
8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.

Shopping in India has witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering. Industry of retail in India which have
become modern can be seen from the fact that there are multi- stored malls, huge shopping
centers, and sprawling complexes which offer food, shopping, and entertainment all under the
same roof. India retail industry is expanding itself most aggressively, as a result a great demand
for real estate is being created.

INDIAN ORGANIZED RETAIL MARKET

Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for about
10% to the country's GDP. The organized retail market in India out of this total market accounted
for Rs 350 billion which is about 3.5% of the total revenues.

Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010.
Traditionally the retail industry in India was largely unorganized, comprising of drug stores,
medium, and small grocery stores. Most of the organized retailing in India have started recently
and is concentrating mainly in metropolitan cities. The growth in the Indian organized retail
market is mainly due to the change in the consumer’s behavior. This change has come in the
consumer due to increased income, changing lifestyles, and patterns of demography which are
favorable. Now the consumer wants to shop at a place where he can get food, entertainment, and
shopping all under one roof. This has given Indian organized retail market a major boost.

Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian

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companies are entering the Indian retail market which is giving Indian organized retail market a
boost. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in
the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. A pantaloon is
another Indian company which plans to increase its retail space to 30 million square feet with an
investment of US$ 1 billion. Bharti Telecoms an Indian company is in talks with Tesco a global
giant for a £ 750 million joint venture. A number of global retail giants such as Wal-Mart,
Carrefour, and Metro AG are also planning to set up shop in India. Indian organized retail market
will definitely grow as a result of all this investments.

CLASSIFYING INDIAN RETAIL

(A)Modern Format retailers

1) Supermarkets (Food world)


2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (IKEA)
5) Company Owned Company Operated (BP)

(B)Traditional Format Retailers:

1) Karana’s: Traditional Mom and Pop Stores


2) Kiosks
3) Street Markets
4) Exclusive /Multiple Brand Outlets

(C)Large Indian retailers


I Hypermarket
1) Big Bazaar
2) Giants
4) Star

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II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds

III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR

CLASSIFICATION OF INDIAN RETAIL SECTOR

A) FOOD RETAILERS

There are large number and variety of retailers in the food-retailing sector Traditional
types of retailers, who operate small single-outlet businesses mainly using family labor, dominate
this sector In comparison, super markets account for a small proportion of food sales in India,
However the growth rate of super market sales has being significant in recent years because
greater numbers of higher income Indians prefer to shop at super markets due to higher standards
of hygiene and attractive ambience.

B) HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending more on health and beauty
products .Here also small, single-outlet retailers dominate the market. However in recent years, a
few retail chains specializing in these products have come into the market. Although these retail
chains account for only a small share of the total market their business is expected to grow
significantly in the future due to the growing quality consciousness of buyers for these products.

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C) CLOTHING & FOOTWEAR

Numerous clothing and footwear shops in shopping centers and markets operate all over
India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern
clothing and footwear stores have modern products and attractive displays to lure customers.
However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is
unlikely that the traditional outlets will survive the test of time.

D) HOME FURNITURE & HOUSEHOLD GOODS

Small retailers again dominate this sector. Despite the large size of this market, very few
large and modern retailers have established specialized stores for these products. However there
is considerable potential for the entry or expansion of specialized retail chains in the country.

E) DURABLE GOODS

The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period. A greater variety of consumer electronic items
and household appliances became available to the Indian customer. Intense competition among
companies to sell their brands provided a strong impetus to the growth for retailers doing
business in this sector.

F) LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic opportunities have encouraged


consumer expenditure on leisure and personal goods in the country. There are specialized
retailers for each category of products (books, music products, etc.) in this sector. Another
prominent feature of this sector is popularity of franchising agreements between established
manufacturers and retailers.

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The organised retail industry has started in the late 1990s and after a decade it has
surpassed all expectations. It is undoubtedly one of the most fast growing sectors of the Indian
economy and big players from other industries are focussing on retailing like never before. Some
of the key attributes of the Indian retail industry as of today are:

1. It is the 5th largest retail destination globally. This phenomenon has been fuelled both by the
increase of both domestic retailers as well international retailers setting up their operations in
India.
2. The Indian retail industry has shown tremendous growth. In exact numerical terms the retail
industry had done business worth US $ 25.44 billion in the financial year 2007-08 whereas the
level business done in financial year 2006-07 was US $ 16.99 billion. This is an overall industry
growth rate of 49.73%.

3. The Indian retail industry boasts of the largest number of retail outlets in the world. There are
total 12 million retail outlets out of which 5 million sell food and related products.

4. The industry has been the delight of all consulting organization. The recent report from AT
Kearney has declared the industry tops the Global Retail Development Index (GRDI) for the 3rd
consecutive year.

ORGANISED RETAIL STORES

Organised retail stores are characterized by large professionally managed format stores.
They provide goods and services that appeal to customers, in an excellent ambience that is
conducive for shopping, created based on consumer preference analysis, and offer good value as
some of the benefits of large-scale purchases are passed on to consumers. In India, retail has its
deep root since long back –and that is why India is being known as “Nation of Shopkeepers”
with about 12 million retailers by 2003.Organised retailing contributes 2% to the total Indian
retail sector and expected to increase to 5%, by 2010. Retail sector forms 10-11% of GDP. It is
attractive in terms of investment, employment opportunity, and usage of technology. Indian
organized retail industry was worth Rs. 13,000 crore in the year 2000 and was expected to grow

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by 30 per cent in the next five years touching Rs. 45,000 crore in 2005. Food and personal care
amounted to Rs. 1000 crore in 2000.

Retailing is in a rapid state of change due to speedy technological developments,


changing competitive positions, varying consumer behavior as well as their expectations and
liberalized regulatory environment. In such a scenario, information is crucial to plan and control
profitable retail businesses and it can be an important source of competitive advantage so long as
it is affordable and readily available MIS (Management Information Systems) which provide
timely and accurate information can be viewed as an integrated entity providing management
with the tools and information to manage the retail stores.

VMIs- vendor managed inventory systems, Scanner at the counters- point of sales
systems, RFID- radio frequency identification, OLAP (online analytical processing), supply
chain management systems, forecasting systems, CRM- customer relationship management
systems, ERP- enterprise resource performance system etc. are the tools used by organized
retailers in developed nations.

Most retailers collect and have access to huge amount of data, collected from day to day
operations e.g. customer loyalty data, retail store sales and merchandise data, demographic
projection data etc. Currently retailers are data rich but information poor. There is a great
potential to develop systems that enable analysts and decision makers to manage, explore,
analyze, synthesize and present data in a meaningful manner for decisions.

The organization needs to pool in both internal and external data, software, customer
data, models and trained people to appreciate and use the systems for decision making which will
help build sustainable competitive advantage.

APPLICATION OF MIS IN RETAIL STORTES

The Indian organized retail industry is the fastest growing in the world. To keep pace
with the rapid expansion, companies are forced to leverage technology to bring in operational

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efficiency. With the government of India allowing 100% FDI in retail, major retail companies
have started entering the Indian market. The competition is getting tougher by the day and
companies are using technology as a differentiator. The following sections highlight the various
operational areas of retail industry and how information technology is used for competitive
advantage.

MIS in Supply Chain Management

Supply Chain may be defined as the series of companies that eventually make products
and services available to consumers, including all of the functions enabling the production,
delivery, and recycling of materials, components, end products and services. Supply Chain
Management may be defined as the systematic, strategic coordination of the traditional business
functions and the tactics across these business functions within a particular company and across
business within supply chain for the purpose of improving the long term performance of the
individual companies and the supply chain as a whole. SCM gives a value-enhancing and long-
term benefit for the organisation. Firms with large inventories, many suppliers, complex product
assemblies, and highly valued customers have a lot to gain by good practices in SCM. The cost
of inventories was over $2.2 trillion in U.S in 2000. Transportation and inventory carrying cost in
U.S totalled $434 billion in 2000 (U.S Central Bureau’s Annual Survey of Manufacturers).

The best way to leverage the potential of SCM is by the efficient use of IT in this area. The
importance of IT in SCM has long been acknowledged but little work has been done in this area.
But with growing competition and greater emphasis to keep price as low as possible the
companies are looking towards strengthening their supply chain. IT can be used in SCM in
various areas such as:
 Purchasing Management
 Demand Forecasting
 Performance Evaluation
 Inventory Management
 Implementation of JIT
 ERP Systems

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MIS in Purchasing Management

Electronic data interchange was developed in 1970 to improve the purchasing process.
The rapid advent of internet technology in the 1990’s spurred the growth of non-proprietary and
more flexible internet based e-Procurement systems. Earlier critics argued that e-Commerce have
been over inflated and it results in larger expenses than its savings. Today though many well
managed e-commerce firms are beginning to thrive as users realize the benefits of their services.
The material user initiates the e-procurement process by entering a material request and other
relevant information. This is then submitted to the purchasing department. After verification of
this the buyer transfers this data to the e-procurement system and assigns qualified suppliers to
bid for it. Suppliers connected to this system receive the bid instantaneously. The purchasing
department maintains a list of preferred suppliers for each category of material. Thus the buyer is
able to submit the bid request to numerous suppliers within seconds. The traditional manual
purchasing system is a tedious and labour intensive task. The new e-procurement system is a
time saving system. It also results in a lot of cost saving as manual tasks are reduced. This system
is much more accurate than the manual system. It allows mobility to the system. Audit trails can
be maintained for all transactions in electronic form thus increasing the track ability. This system
results in overall better management. This also results in various benefits for buyers.

IT in Forecasting Demand

Forecasting provides an estimate of future demand and the basis for planning and sound
business decisions. The goal of a good forecasting technique is to minimize the gap between
actual and forecast demand. All the factors that influence demand, the impact of these factors and
there time frame must be considered in developing an accurate forecast. Also buyers and sellers
should share all the relevant information about the forecasting so that a correct decision can be
made. Various forecasting techniques are as follows:
SOME OF THE FORECASTING SOFTWARE USED ARE

 Forecast Pro Software: It is used by over 15,000 companies in 84 countries. The


software is easy to use and has a built in expert selection system that analyzes the data,

26
selects the appropriate technique for forecasting, builds the model and calculates the
forecast.

 Smart Software: This software is used by companies such as HP, Mead Corporations
etc. This is designed to run on Windows 95, 98, 2000, XP.

IT in Performance Measurement

It is said that “You can’t improve what you can’t measure”. Performance measurement is
the use of statistical evidence to determine progress toward specific defined organizational
objectives. The daunting task of measuring performance for organizations across industries and
eras, declaring the top performers, and finding the common drivers of their success did not occur
to anyone until around 1982, when Tom Peters and Bob Waterman got down to work researching
and writing In Search of Excellence. This publishing sensation challenged industrial managers’
actions and attitudes, and inspired researchers and scholars to further pursue the theory of high
performance. This task becomes more complex as corporations diversify into multiple industries.
A researcher must take this into consideration when conducting a comparative analysis of
companies.

The evaluation of performance of the suppliers, material etc. requires a lot of data and
continuous evaluation is required. Due to large volume of information available it has become
almost impossible to do this evaluation process manually and thus the role of IT in this area has
been increasing. One of the most recognized methods for integrating supply chain and measuring
their member’s performance is the Supply Chain Operations Reference (SCOR). This model is
used as a supply chain management diagnosis, benchmarking and process improvement tool by
manufacturing and service firms in a variety of industries across the globe. This follows
weighted approach to the areas that need more competencies.

IT in Inventory Management

In traditional supply chain inventory management, orders are the only information firm’s
exchange, but information technology now allows firms to share demand and inventory data

27
quickly and inexpensively. The inventory management directly influence how effectively the
organisation deploys its assets and capacity in producing its goods and services. The problem of
inventory is compounded in an integrated supply chain, where a missed due date or stock out
cascades downstream, affecting the entire supply chain. In this area IT is used in The Chase
Production System in which the capacity is adjusted in the demand pattern. It is also used in
Master Production Scheduling, listing the exact end items to be produced in a specific period. IT
is also used in Material Requirement Planning and Manufacturing Resource Planning.

IT in Point Of Sale

Point of Sale (sometimes also known as Point of Service) as per the literary connotation
is the actual location where the monetary transactions between the buyer and the seller of goods
take place. It is usually used to indicate a retail shop or the checkout counter in shops,
supermarkets, casinos, hotels, restaurants, stadiums, reservation counters at airports and railways
and all other types of retail enterprises. Nowadays, the term POS is used to describe the system
which is in place at the counter, consisting of both the hardware and the software components
and it has evolved from the Electronic Cash Registers (ECR) system.

Technology by itself does not cause sales increases or expense reductions, but rather the
way the information that technology provides is used causes the increased sales and reductions in
expenses.

28
OBJECTIVES OF STUDY

 Study the MIS implementation of the BIG BAZAR. To get an insight into the needs of
MIS in business setups on a big scale.
 How MIS stores Customer Information, how this can be referred and how this can be help
full In Customer Support System.
 How it performs if any purchase or sales transaction and how it automatically updates
inventory and how to find out the current stock report.
 How issue bills to customer from this software as soon as you issue sales transaction.

DESCRIPTION OF PROBLEM

What is the role of Management Information System in an organized retail stores.

JUSTIFICATION OF STUDY

To understand how information flows from one department to another department and
how this information system is useful in the organization to overcome problems regarding
customers in retail stores.

29
COMPANY PROFILE

Pantaloon Retail (India) Limited, is India's leading retail company with presence across
multiple lines of businesses. The company owns and manages multiple retail formats that cater to
a wide cross-section of the Indian society and is able to capture almost the entire consumption
basket of the Indian consumer. Headquartered in Mumbai (Bombay), the company operates
through 5 million square feet of retail space, has over 331 stores across 40 cities in India and
employs over 17,000 people. The company registered a turnover of Rest 2,019 crore for FY
2007-08

It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food
Bazaar, Central, E-Zone, Fashion Station, Depot and many others.

Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail
chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that
combines the look and feel of Indian bazaars, with aspects of modern retail, like choice,
convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a first of its
kind seamless mall located in the heart of major Indian cities, followed this. Some of its other
formats include, Collection (home improvement products), E-Zone (consumer electronics),
Depot (books, music, gifts and stationary), All (fashion apparel for plus-size individuals), Shoe
Factory (footwear) and Blue Sky (fashion accessories). It has recently launched its retailing
venture,futurebazaar.com.

The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon
Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint
venture companies with a number of partners including French retailer Etam group, Lee Cooper,
Manipal Healthcare, Jaywalker’s, Gini & Jony and Liberty Shoes. Planet Retail, a group
company owns the franchisee of international brands like Marks & Spencer, Debenhams, Next
and Guess in India.

30
Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for
financial year ended 2007-08. Pantaloon Retail was selected as the Best of Best Retailers in Asia
by Retail Asia-Pacific Top 500 magazine in 2006.

Future Group

Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to
cater to the entire Indian consumption space. The Future Group operates through six verticals:
Future Retail (encompassing all retail businesses), Future Capital (financial products and
services), and Future Brands (management of all brands owned or managed by group
companies), Future Space (management of retail real estate), Future Logistics (management of
supply chain and distribution) and Future Media (development and management of retail media).

Future Capital Holdings, the group's financial arm, focuses on asset management and
consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and
consumer-related private equity fund, Indecision. It also plans to get into insurance, consumer
credit and other consumer-related financial products and services in the near future.

Future Group's vision is to, "Deliver Everything, Everywhere, Every time to Every Indian
Consumer in the most profitable manner." One of the core values at Future Group is, 'Indian’s'
and its corporate credo is - Rewrite rules, Retain values.

Future Group Manifesto

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet
unwritten; create new opportunities and new successes. To strive for a glorious future brings to
us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.

31
Our customers will not just get what they need, but also get them where, how and when
they need.

It is this understanding that has helped us succeed. And it is this that will help us succeed
in the Future. We shall keep relearning. And in this process, do just one thing.

Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the
Pantaloon Group. It works on same the economy model as Wal-Mart and has had considerable
success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore
Biyani, the head of Pantaloon Retail India Ltd.

Big Bazaar is not just another hypermarket. It caters to every need of customer’s family.
Where Big Bazaar scores over other stores is its value for money proposition for the Indian
customers.

At Big Bazaar, customer will definitely get the best products at the best prices -- that’s
what Big Bazaar guarantee. With the ever increasing array of private labels, it has opened the
doors into the world of fashion and general merchandise including home furnishings, utensils,
crockery, cutlery, sports goods and much more at prices that will surprise customer. And this is
just the beginning. Big Bazaar plans to add much more to complete customers shopping
experience.

Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the
Pantaloon Group. It works on it the economy model as Wal-Mart and has had considerable
success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore
Biyani, the head of Pantaloon Retail India Ltd.

At Big Bazaar, customer will definitely get the best products at the best prices -- that’s
what Big Bazaar guarantee. With the ever increasing array of private labels, it has opened the
doors into the world of fashion and general merchandise including home furnishings, utensils,
crockery, cutlery, sports goods and much more at prices that will surprise customer. And this is
just the beginning. Big Bazaar plans to add much more to complete customers shopping
experience.

32
BOARD OF DIRECTORS

Mr. Kishore Biyani Managing Director

Mr. Gopikishan Biyani Whole time Director

Mr. Rakesh Biyani Whole time Director

Mrs. Veda Prakash Arya Director

Mr. Shailesh Haribhakti Independent Director

Mr. S Doreswamy Independent Director

Dr. D O Koshy Independent Director

Mrs. Anju Poddar Independent Director

Mrs. Bala Deshpande Independent Director

Mr. Anil Harish Independent Director

33
CHAPTER-2

REVIEW OF LITERATURE

34
REVIEW OF LITERATURE

ARTICLE 1: Management Information Systems (MIS): the Heart and Soul of the Modern
Organizations – By SYAM SUNDAR BAKKI

A system is a set of interrelated elements. An information system is an open, purposive


system that produces information using the Input-Process-Output (I-P-O) cycle. A purposive
system is a system that seeks a set of related goals. All information systems are purposive.
Management Information System (MIS) is not new; only its computerization is new. Before
computers, MIS techniques existed to supply managers with the information that would permit
them to plan and control operations. The MIS satisfies the diverse needs through a variety of
systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support
Systems the MIS helps in Strategic Planning, Management Control, Operational Control and
Transaction Processing. The MIS helps the clerical personnel in the transaction processing and
answers their queries on the data pertaining to the transaction, the status of a particular record
and references on a variety of documents. The MIS helps the junior management personnel by
providing the operational data for planning, scheduling and control, and helps them further in
decision making at the operations level to correct an out of control situation. The MIS helps the
middle management in short them planning, target setting and controlling the business functions.
It is supported by the use of the management tools of planning and control. The MIS helps the
top management in goal setting, strategic planning and evolving the business plans and their
implementation.

The MIS plays the role of information generation, communication, problem identification
and helps in the process of decision making. The MIS, therefore, plays a vital role in the
management, administration and operations of an organization. In a manual information system,
human beings perform the five basic functions; in a computer-based system the basic functions
are performed by equipment. In either type of system the basic functions are:
1. Entering data into the system
2. Processing the data (rearranging input data and processing files

35
3. Maintaining files and records
4. Developing procedures that tell what data are needed and when, where they are obtained,
and how they are used, as well as providing instruction routines for the processor to follow;
and
5. Preparing report output

A lot of changes have taken place in business, industry and technology. The changes are
so radical in nature that it is changing the ways of business management. The sole factor
affecting world economic scene is the rise of Information Technology to a level where it has
changed the business culture altogether.

All the radical and dramatic changes have affected the working styles of the managers.
The management process now need speed, precision, and snapshot business status through
relevant information technology support. This requires a new MIS development approach.
Though the basic role of MIS has not changed, it has changed inside out in terms of content and
presentation.

Information Systems that include a computer are known as computer-based information


systems. The computer can fulfill several roles in the production of information. First, when used
as data storage and retrieval device, the computer acts as a data librarian. Second, the computer
provides processing capabilities for the production of information. Examples include calculations
of totals, averages, maximums, and the like. Third, the computer serves as a communication
device to obtain data or information from other computers. Finally, the computer presents
information by producing tables, reports, charts, graphs, and formatted documents.

Computers are digital machines that record, manipulate and playback digital representations,
operating at speeds and levels of discernment beyond the abilities of humans. The steady decline
in the price of computers has made the rapid spread of digital rendering feasible. The data
entered into a computer system is reduced ultimately to the Esperanto of 1s and 0s. Then the data
is said to have been digitized. Once digitized, information acquires the digital advantage:
• A universal rendering that is resource-conservative.

36
• Cheap to store and transport, and easy to copy.
Digital rendering thus liberates information from the constraints of any particular medium
and raises the possibility of the liberation of "information" from the constraints of scarcity and
rationing by price: easy and cheap replication means that whatever can be digitally rendered can
be made universally available.

Businesses are becoming more productive and easily put up and run. Business operations
today are not possible without computers. Anything in the world has to be done fast, especially
the world of business. With the use of computers, one can add or subtract numbers for large
amount of data. Even meeting with business partners can be done easily. The entrepreneurs have
options in discussing matters over the internet through instance messaging or through VoIP
(Voice-over-Internet Protocol). VOIP enables the two or more people who are in different places
to talk live over the internet. They don't need to spend much money in discussing business with
partners or clients. If you're one of those entrepreneurs, you don't have to travel or spend a lot for
long distance phone call. Everything is made cheaper with computers (and internet). Saving your
bucks is one among the benefits of computers, aside from saving your time and energy.

For example, accounting is highly a routine activity involving a precise step by step
procedure. The basic method of recording transactions, irrespective of the nature of the firm, is
almost the same. It is algorithmic because it has a set of standards, clearly defined and
unambiguous rules and procedures to prepare books of accounts. This factor makes accounting
easy to be automated in a precise step by step sequence, using tools like flowcharts and
programmers can easily convert a flowchart into a source code. A computerized accounting
system saves a great deal of time and effort, considerably reduces (if not eliminates)
mathematical errors, and allows for much more timely information than does a manual system. In
a real-time environment, accounts are accessed and updated immediately to reflect activity. The
need to test for equality of debits and credits through trial balances is usually not required in a
computerized system accounting since most systems test for equality of debit and credit amounts
as they are entered. If someone were to attempt to input data containing an inequality, the system
would not accept the input. Since the computer is programmed to post amounts to the various
accounts and calculate the new balances as new entries are made, the possibility of mathematical

37
error is markedly reduced. Computers may also be programmed to record some adjustments
automatically at the end of the period. Most software programs are also able to prepare the
financial statement once it has been determined the account balances are correct. The closing
process at the end of the period can also be done automatically by the computer. However,
human judgment is still required to analyze the data for entry into the computer system correctly.
Additionally, the accountant’s knowledge and judgment are frequently required to determine the
adjustments that are needed at the end of the reporting period. The mechanics of the system,
however, can easily be handled by the computer.

Information flows are to the life and health of a business what the flow of blood is to the
life and health of an individual. Without information, a business simply cannot survive. This
applies to small organizations as well as to large ones. Indeed superior Information Systems have
enabled many small organizations to more than offset the economies of scale enjoyed by their
bigger competitors. Information is analogous to light. When light is present, objects are visible.
Information presents a picture of reality to a user who is not aware of that reality. Like light, too
little or too much of information vitiates the picture of reality conveyed.

ARTICLE 2: INDIAN RETAIL INDUSTRY - --By Economic times

The DLF Mega Mall -- located in the IT and ITES hub of Gorgon on the outskirts of
Delhi -- bears a deserted look. Of the few operating shops in this large mall, most have nary a
customer. The same goes for several other retail outlets and many of the other malls in the
vicinity. True, a retail chain like Future Group's Big Bazaar may be clocking heady sales
(growing at 100% year-on-year), but the dozen-odd shops operating in its proximity wear a
deserted look, giving a somewhat hollow ring to the much-talked-about retail boom in the
country.

In what seems like a quirk of circumstance, malls have sprung up all over urban India in
anticipation of a consumption boom that may itself prove to be eventually truant.

38
Move to Mulund (West), a suburban locality of India's financial nerve, Mumbai. Rajesh
Parashar, a resident of the area has the option of shopping at Big Bazaar, Apna Bazaar,
Subhiksha, Spinach, Shoprite, and Foodland or at the local Sai Supermarket, all of which are
within a two-kilometer radius of his residence.

This is paralleled by the developments happening in the Delhi suburb of Ghaziabad,


where the upcoming Shipra Mall at Indirapuram already has Big Bazaar operating out of its
lower-ground floor, while Reliance is slated to open shop on the third floor. Customer footfalls,
however, are more in the projections of the occupiers of the mall than real.

All this retail activity, and more, and the sheer gargantuan size of the investments
planned, beg the question -- does the consumer's wallet have enough money in it for everyone?

"Only time will tell," is KPMG's executive director, Deepankar Sanwalka's laconic
answer. To a great extent the success or the failure of malls will hinge on the consumer
population of the area. "If the spending power of consumers is high in a locality, it could sustain
two-to-three large players." Not so, elsewhere, he adds poignantly. The significance of these
remarks sinks in gradually. With planned investments of $22 billion over the next five years --
excluding what might be brought in by new global and large local players henceforth -- the retail
sector is expected to grow 40% to $427 billion by 2011.Organised retail, which is 3% of the
whole currently, is in turn pegged to grow to $64 billion by 2015. And one consequence of all
those investments will be the fact that India's present two square-feet per capita retailing space
will raise 15-20% by 2010.

To be viable, the huge investments made in the sector by India Inc would have to be
responded to by a corresponding massive surge in footfalls. And for that to happen, a lot of links
would have to fall in place.

Between the drawing board and the emerging market realities, the realisation dawns that a
lot of things can go wrong with India's much-heralded retail revolution. The more visible among
these loose ends: vexingly high real estate prices, the loosely-knit distribution networks in India's

39
hinterland, the near-absence of any modern supply chain logistics, shortage of skilled personnel,
and a regulatory system that resembles a patchy quilt more than anything else.
Then there is the nature of the business itself. Retailing is a low-margin, high-volume,
commodity business where profitability gets strained as competition intensifies. And if wrong
choices are made regarding the location or the formatting of the store, woe betides the retailer.
The catches are many and to make it big, a retailer would have to negotiate all the tricky turns
most of the time.

The big players are sanguine, however. "There is enough room for six-to-eight players,"
says Reliance group chairman Mukesh Ambani, who recently kicked off the first Reliance Fresh
outlet in Hyderabad. There are reasons for his optimism: the country's preponderantly young
working population, disposable incomes that are expected to increase at an average 8.5% per
annum till 2015, and a steadily climbing per capita income (from $460 in 2002, it rose to $620 in
2005).

In fact, it is the expectation of a large working and earning population that has attracted
most global retailers to the country. But most analysts are agreed that the Indian retail market
could at best support 10 large players with revenues in excess of $2 billion each by 2015.

Given the number of players getting into the fray today, this clearly means a winnowing
out of the weaker retail players. What's more, that time could be sooner rather than later, maybe
just three or four years down the line. That's not so surprising, industry insiders even say,
pointing out that a large number of the new entrants may not be committed to retailing in the
long term. While some almost certainly are looking to act as silent partners for foreign players,
others may be more willing to look at an exit option a few years down the line.

ARTICLE3: Information Technology in Retail - store management – www.infosys.com

The Indian organized retail industry is the fastest growing in the world. To keep pace
with the rapid expansion, companies are forced to leverage technology to bring in operational
efficiency. With the government of India allowing 100% FDI in retail, major retail companies

40
have started entering the Indian market. The competition is getting tougher by the day and
companies are using technology as a differentiator. The following sections highlight the various
operational areas of retail industry and how information technology is used for competitive
advantage. Electronic data interchange was developed in 1970 to improve the purchasing
process. The rapid advent of internet technology in the 1990’s spurred the growth of non-
proprietary and more flexible internet based e-Procurement systems. Earlier critics argued that e-
Commerce have been over inflated and it results in larger expenses than its savings. Today
though many well managed e-commerce firms are beginning to thrive as users realize the
benefits of their services. After verification of this the buyer transfers this data to the e-
procurement system and assigns qualified suppliers to bid for it. Suppliers connected to this
system receive the bid instantaneously. The new e-procurement system is a time saving system.
It also results in a lot of cost saving as manual tasks are reduced. This system is much more
accurate than the manual system. It allows mobility to the system. Audit trails can be maintained
for all transactions in electronic form thus increasing the traceability. This system results in
overall better management. This also results in various benefits for buyers. Forecasting provides
an estimate of future demand and the basis for planning and sound business decisions. The goal
of a good forecasting technique is to minimize the gap between actual and forecast demand. All
the factors that influence demand, the impact of these factors and there time frame must be
considered in developing an accurate forecast. Also buyers and sellers should share all the
relevant information about the forecasting so that a correct decision can be made. In traditional
supply chain inventory management, orders are the only information firm’s exchange, but
information technology now allows firms to share demand and inventory data quickly and
inexpensively. The inventory management directly influence how how effectively the
organisation deploys its assets and capacity in producing its goods and services. The problem of
inventory is compounded in an integrated supply chain, where a missed due date or stock out
cascades downstream, affecting the entire supply chain. In this area IT is used in The Chase
Production System in which the capacity is adjusted in the demand pattern. It is also used in
Master Production Scheduling, listing the exact end items to be produced in a specific period. IT
is also used in Material Requirement Planning and Manufacturing Resource Planning.

41
CHAPTER-3

RESEARCH
METHODOLOGY

42
RESEARCH METHODOLOGY

PERIOD OF STUDY:
The period of the study for this project cover near about three months. Further, this much
period is a reasonable period to study the performance of target and to gain knowledge
with respect to the objective of study.

TYPES OF THE RESEARCH:


It is a Descriptive Research and the main objective of Descriptive Research is to learn about
who, what, when and how. It includes study and fact finding inquiries of different kinds.
Thus the major purpose of descriptive research is the description of the state of affairs, as it
exits at present. To understand how MIS will be effects in an organized retail stores and I will
design a questionnaires that inclued all the above said objectives

It also include Exploratory Research as I also focusing on the what are the customers opinions on
this Management Information System.
Proposed Sample Size: 100 customers, 20 Employees
Research Tool: Questionnaire

FRAMEWORK OF ANALYSIS:
The study has been undertaken to examine and understand the technology aspect of IT and
organization relationship for a business playing a crucial role in the growth. The framework of
study is concern with the MIS activities by retailers in the region defined above.

RELEVANCE OF THE TOPIC

43
Most of Retail Organizations are using MIS now a day’s which provides lot of benefits to
the organization and at the same time customers also. MIS is an integral part of the management,
software sector and Retail industry. For Every Retail Organization MIS is an integral part. And
there is a lot of uses in retail sector.

Now a days, there is lot of employment opportunities in Retail Organizations. Retailing is


in a rapid state of change due to speedy technological developments, changing competitive
positions, varying consumer behavior as well as their expectations and liberalized regulatory
environment. In such a scenario the study was focused on said topic. I chose electives as
Marketing and IT, which is very much relevant to the topic.

SIGNIFICANCE FOR THE PROPOSED STUDY

Indian Retail Industry has embraced the new concept of MIS, it is very popular mode of
many organizations in the developed countries like America, Japan and China...

In the light of the above emerging trends in Retail industry, the present study has been taken
up for the following purpose

 To study the effectiveness of MIS in Organized Retail Stores in Vijayawada.


 To study various factors which influence the technology towards Retail Industries

SOURCES OF DATA

The research will be done on the basis of primary and secondary data

 Primary data is facts and information collected specifically for the purpose of the
investigation at hand .The Primary Data was collected from SAP Implementation Head
IT Infrastructure Managers in the Information System department of BIG BAZAR by
conducting telephonic interviews and collecting documentation which gave an insight
into the procedures being followed with regards to the functioning of MIS.

44
 The Secondary Data was taken from various online sources like the website and various
reference books on MIS and retailing.

SOFTWARE USED

Microsoft Excel XP has been used to do the Empirical analysis.

SAMPLE PLAN

I would consider my sample size to a minimum of 20 members covering all the various
departments employees of big bazaar, enquiring about how this information is flexible in their
routine work. And also enquire the customers about the services provided by the BIG BAZAR.

METHODOLOGY

In order to address the aforesaid objectives, I first reviewed available current literature on
MIS in organized retail. This was helped in understanding; I prepared a questioner and
interviewed the people who are dealing with MIS in different departments in BIG BAZAR. And
also interviewed few customers in BIG BAZAR.

HYPOTHESIS

Alternative Hypothesis (Ha): The existences of MIS in Retail Stores are very expensive.

Null Hypothesis (H0): There is on effect of MIS in organized retail stores. And it is useful to the
organization to improve the business and at the same time it is useful to the customers.

45
CHAPTER-4

DATA ANALYSIS AND


INTERPRETATION

46
EMPIRICAL ANALYSIS

The word empirical denotes information gained by means of observation, experience, or


experiment. Empirical data is data that is produced by an experiment or observation. From the
below data analysis (using graphs) we conclude that:

Customer point of view:

1) 78% of people don’t get any false information in BIG BAZAR.

2) 92% of people are satisfied with the services provided by the BIG BAZAR.

Employee point of view:

3) 75% of employees can’t face any problems during the MIS implementation stage.

4) 100% of employees said MIS is very useful to superior coordination, problem


identification, improving services and to get higher/greater profits in BIG BAZAR.

Totally 85% of people are satisfied the services and maintenance of technology provided by
BIG BAZAR and 87.5% of employees are satisfied to working with the MIS system and MIS
maintenance.

47
1. Monthly income of BIG BAZAR customers:

SALARIES 1000-5000 5000-10000 10000-15000 >15000 STUDENTS TOTAL

NO.OF 8 13 37 28 14 100
PERSONS

NO.OF PERSONS

STUDENTS, 14, 1000-5000, 8,


14% 8%
5000-10000, 13,
1000-5000
13%
5000-10000

>15000, 28, 10000-15000


28% >15000
STUDENTS
10000-15000,
37, 37%

Interpretation: from the above analysis it is observed that 37% of employees getting 10000-
15000 /- monthly income, 28% of people getting above 15000 /- , 14% of people getting no
income(students), 8% of people getting 1000-5000/-, and 13% of people getting 5000-10000/-.

48
2. Customers visit the BIG BAZAR in a month:

No. of times visits the BIG BAZAR in a 1 2 3 4 5 Total


month

No. of Persons 23 38 25 10 4 100

No.of times visits the BIG BAZAR in a month

No.of times
visits the BIG
BAZAR in a
month, 1, 7%
No.of times No.of times
visits the BIG visits the BIG
BAZAR in a BAZAR in a 1
month, 5, 33% month, 2, 13%
2
3
No.of times
visits the BIG 4
BAZAR in a 5
month, 3, 20%
No.of times
visits the BIG
BAZAR in a
month, 4, 27%

Interpretation: From the above analysis it is observed 33% of people visits the BIG BAZAR 5
times in a month, 27% of people visits 4 times in a month, 20% of people visits 3 times in a
month, 13% of people visits 2 times in a month and 7% of people visits 1 time in a month.

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3. Reasons for people prefer to make purchase at BIG BAZAR:

Preference to make purchase at Ambience Availability/Variety Service Price All Total


BIG BAZAR Quality

No. of Persons 8 63 3 24 2 100

Reasons for People preferes to make purchase at BIG BAZAR

No.of Persons, All, No.of Persons,


2, 2% Ambience, 8, 8%

No.of Persons,
Price, 24, 24% Ambience
Availability/Variety Quality

No.of Persons, Service


Service, 3, 3% Price
All

No.of Persons,
Availability/Variety
Quality, 63, 63%

Interpretation: From the above analysis it is observed 63% of people prefers to make purchase
at BIG BAZAR for the product availability/verity quality, 24% of people go for price, 8% of
people go for ambience, 3% of people go for services and 2% of people go to purchase at BIG
BAZAR for above all reasons.

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4. Number of persons getting false information at various places in BIG BAZAR:

People getting false Billing Purchase customer No Where Total


information at Counter Counter Care

No. of Persons 8 2 12 78 100

No of persons getting false information at various places in BIG


BAZAR

No.of Persons,
Billing Counter, 8,
8%
No.of Persons,
Purchase Counter,
2, 2%
No.of Persons,
customer Care, 12,
12% Billing Counter
Purchase Counter
customer Care
No Where

No.of Persons, No
Where, 78, 78%

Interpretation: : From the above analysis it is observed 2% of people getting false information
at purchase counter, 8% of people getting false information at billing counter, 12% of people
getting false information at customer care and remaining 78% of people don’t get any false
information in BIG BAZAR.

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5. Number of people satisfied with the services provided by the BIG BAZAR:

Satisfied with the services provided by the BIG BAZAR Yes No Total

No. of People 92 8 100

People satisfied with the services provided by BIG


BAZAR

No.of People,
No, 8, 8%

Yes
No

No.of People,
Yes, 92, 92%

Interpretation: : From the above analysis it is observed 8% of people not satisfied with the
services provided by the BIG BAZAR and remaining 92% of people are satisfied with the
services provided by the BIG BAZAR.

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6. Employee Age groups in BIG BAZAR:

Age of the Employee 18-28 29-38 39-48 Total

No. of Employees 15 4 1 20

Different Age roups of Employees in BIG BAZAR

No.of Employees,
39-48, 1, 5%

No.of Employees,
29-38, 4, 20%

18-28
29-38
39-48

No.of Employees,
18-28, 15, 75%

Interpretation: : From the above analysis it is observed 75% of employees are 18-28 years age
group people, 20% of employees are 29-38 years age group people,5% of employees are 39-48
years age group people working in BIG BAZAR.

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7. Problems faced at MIS implementation in BIG BAZAR:

Problems Faced at MIS System Man Tracking Break collaboration No Total


implementation Stage Integration Power down & co- Problems
ordination

No. of Employees 0 5 0 0 0 15 20

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Problems Faced at MIS implementation

No. Of Employees,
System Integration,
0, 0%
No. Of Employees,
Man Power, 5, 25% System Integration
Man Power
No. Of Employees, Tracking
Tracking, 0, 0% Break down
No. Of Employees, collabration & co-ordination
Break down, 0, 0% No Problems
No. Of Employees,
No. Of Employees,
No Problems, 15,
Collaboration & co-
75%
ordination, 0, 0%

Interpretation: : From the above analysis it is observed 25% of employees faced problems due
to man power at MIS implementation process, 75% of employees cant face any problems during
the MIS implementation stage.

Employees
8. Employees perceived perceived
the MIS benefitsthe MIS benifits
in their in their operations
operations:

Benefits of MIS Superior Higher Helps in Improving Above Total


No.of Employees,
perceived by CoordinationSuperior
Profits/Greater problem Services & All
Employees Coordination, 0,
Profits identification Profits
No.of Employees,
0%
Higher
No. of Employees 0
No.of Employees, 6 0
Profits/Greater
9 5 20
Above All, 5, 25% Profits, 6, 30% Superior Coordination
Higher Profits/Greater Profits
Helps in problem identification
No.of Employees,
Helps in problem Improving Services & Profits
identification, 0, Above All
0%
No.of Employees,
Improving Services 55
& Profits, 9, 45%
Interpretation: : From the above analysis it is observed 45% of employees said MIS is very
useful to improving the services and profits, 30% of employees said MIS is very useful to get
higher profits/greater profits, 25% of employees said MIS is very useful to superior coordination,
problem identification, improving services and to get higher/greater profits in BIG BAZAR.

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CHAPTER-5

FINDINGS

FINDINGS

Benefits:

• Reduction in check out time : Faster check out of customers at the transaction or billing
counter takes place due to the scanning of the items that the customer purchases. The
scanning of items through various technologies like RFID retrieves the item from the
inventory database and displays it along with its price on the screen of the cashier, which
facilitates faster billing process. Such a smooth and quick process also prevents
customers from diverting to the competitor due to long queues or during peak periods.
• Faster approval of purchases from the inventory of the retailer: The POS system
enables the PC at the billing counter to be always connected either through LAN or some

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other networking technology to the central database of the inventory. Thus, it enables
faster purchase of the goods and enhances the experience of the customer.
• Capturing the product details: The “out of stock” problem that most retailers
experience due to inaccurate inventory management can be avoided by having a re-
ordering software which would facilitate in increasing the in stock position of
merchandise.
• Software with related item or suggested item prompts : When an item is scanned, if
there is a related or add-on item available, the software will prompt the sales associate to
ask the customer if they would like the additional item) which leads to increases in
average transaction value.
• Transaction Suspend: This feature places a transaction in suspense while the customer
either goes to their car to get their check or charge card or goes back to the store to get an
additional item and resumes the transaction when the customer returns. This speeds up
processing of customers in line behind this customer and reduces waiting time. It also
makes it easier for a customer to add on items to their purchase.
• Automatic store credits: These credits can be given on returned goods which lead to a
reduction in cash refunds and tracks returned items. These store credit notes are serialized
and can be used just like a gift card and often small credit balances either are not used or
lead to larger sales when they are redeemed. They also replace manual issuance of store
credit notes which are time consuming and open to fraudulent use.
• Capture of customer information: This feature enables after-marketing to individual
customers based on purchase habits and practices. Also particular customers due to their
loyalty or high spending inclination can be given further discount on products or
additional perks such as redemption of points they secure on purchases made in that store.
This leads to high sales and a niche customer base which can be targeted for micro
marketing strategies of the company.
• Reconciliation: At the end of the day, the owner can easily track the price of the products
sold with the cash generated in the cash register, hence the occurrence of theft by the staff
at the billing counter is greatly controlled.
• Time Stamping: All the transactions are time stamped implying the exact time of the
occurrence of the transaction is registered in the system. This can be tracked by the

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retailer to determine the peak hours so that he can increase the shop floor assistants
during that period, and also the low revenue hours for which he can offer incentives such
as further discounts or free parking to attract customers.
• Clocking In Period: Sales associates clock in on the cash register and hence their work
hours can be tracked. This saves time and money which was earlier employed for this
process and also reduce the payroll staff as this data can be directly transported to them.

 It's user friendly, scalable, flexible, reliable and easy to maintain

 It enables the management to track individual transactions from the POS to the
general ledger

 Maximizes business value and efficiency


Losses:

• MIS Software is very costly


• ERP is one of the software of MIS used by many stores
• Maintaining ERP is not an easy task
• Trained people can only handle the ERP systems

CONCLUSION

The mood is upswing in this sector as more and more players are joining this sector with
huge investments and the focus is in every stage of this service oriented industry. Basic
operational information systems like Computerized Inventory Management, Point of Sale
Systems are just to name a few, will be with every player in this sector. The key challenge will
be to source, develop or deploy those information systems which will have both backward and
forward integration capabilities. More and more retailers will look to diverge to all the different
formats and likely to create synergy between these different formats so as to reach to the same
customer at all times. Gartner Inc. predicts that the online shopping will be such a key
component of business that it will contribute around 11% of total revenue when considered on
industry wide level.

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Need of the hour is to have that the visibility of this convergence by retailers and before
treading on the path of any technology upgrades, they foresee the integration challenges.

From the observation I conclude that totally 85% of customers are satisfied with the
services and maintenance of technology provided by BIG BAZAR and 87.5% of employees are
also satisfied to working with the MIS system and MIS maintenance.

Questionnaire
A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN
VIJAYAWADA (With Reference to – BIG BAZAR)
Employee

1. Name: ____________________________________
2. Age: __________
3. Gender:-
a) Male b) Female
4. Qualification: _____________________________
5. Designation: ____________________________
6. Has this store implemented ERP package?

a) Yes b) No

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7. What problems did you face in implementing MIS-?

a) System integration problems (please elaborate) b) Manpower problems

c) Tracking problems d) Breakdowns due to power problems

e) Collaboration and co-ordination problems f) Above All

8. What benefits do you perceive in using MIS in your operations?

a) Superior coordination b) Higher profits/greater profitability


c) Diagnostic help in identifying problem d) Improving services and profits.
e) Above All

9. Why you are unable to store the customer information in your retail store?

10. Any suggestions to avoid this problem.

Questionnaire

A STUDY ON EFFECTIVENESS OF MIS IN ORGANISED RETAIL STORES IN


VIJAYAWADA

(With Reference to – BIG BAZAR)

Customer

1. Name:__________________________
2. Monthly Income:_______________________
3. How many times do you visit the BIG BAZAAR in a month? ( )
4. Why do you prefer to make your purchase in BIG BAZAAR?
a) Ambience c)Availability/Variety Quality

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b) Service d) Price

e) Above All

5. Are you getting any false information at.,

a) Billing counter c) At the purchasing counter

b) Customer care d) No Where

6. Are you satisfied with the services provided by BIG BAZAAR at Billing Counter?

a) Yes b) No

BIBLIOGRAPHY

Books and journals:

 ARTICLE: Management Information Systems (MIS), By Syam Sundhar Bakki,


Vijayawada
 Jawadekar, Management Information System, Tata McGraw Hill, New Delhi
 marketing management by Philip kotler
 Retail Management, Swapna Pradhan
 Introduction to Information system by james O’Brien

REFERENCE BOOKS:

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1 C.S.V. Murthy , Management Information System, Himalaya Publishing House, Mumbai.
2 Mallach, Decision Support and Data Warehouse Systems, McGraw Hill Co., New Delhi.
3 Davisl. Michael W.A. Management approach – Mc Milan Publishing Company, Prentice
Hall, New Jersey.
4 Retail Management, Chetan Bajaj.
5 The Indian Retales. V. Rajesh

WEB SITES:

www.scribd.com
www.proquest.com
www.findarticle.com
www.articlesbase.com
www.authorpalace.com
www.iocxtrapower.com
www.articlesnatch.com and Google search engine

GLOSSARY

Coupon:
A promotional tool in the form of a document that can be redeemed for a discount when
purchasing goods or services. Coupons feature specific savings amount or other special offer to
persuade consumers to purchase specific goods or services or to purchase from specific retailers.
CRM - Customer Relationship Management:
Customer Relationship Management (CRM) is a business strategy designed to reduce costs and
increase profitability by strengthening customer loyalty.
Cross-Sell:

63
Cross-selling refers to a sales technique in which the salesperson recognizes what a customer is
purchasing and will make suggestions or recommendations of other related merchandise the
shopper may also be interested in purchasing.
First In, First Out:
A method of stock rotation in which goods that are received first are sold first. Newly received
product is stocked behind the older merchandise.
FOB:
Shipping term used to indicate who is responsible for paying transportation charges.
Gross Margin Return On Investment:
A measure of inventory productivity that expresses the relationship between your total sales, the
gross profit margin you earn on those sales, and the number of dollars you invest in inventory.
Journal:
A journal is the electronic or paper documentation of all transactions that have been recorded on
a cash register.
Keystone:
Keystone pricing is a method of marking merchandise for resell to an amount that is double the
wholesale price.
Loss Prevention:
Loss prevention is the act of reducing the amount of theft and shrinkage within a business.
Margin:
The amount of gross profit made when an item is sold.
Markdown:
Planned reduction in the selling price of an item, usually to take effect either within a certain
number of days after seasonal merchandise is received or at a specific date.
Marketing Calendar:
A marketing calendar is a tool used by retailers to show what marketing events, media campaigns
and merchandising efforts are happening when and where, as well as the results.
Markup:
A percentange added to the cost to get the retail selling price.
POS:

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Point of Sale (POS) refers to the area of a store where customers can pay for their purchases. The
term is normally used to describe systems that record financial transactions. This could be an
electric cash register or an integrated computer system which records the data that comprises a
business transaction for the sale of goods or services.
Private Label:
Products which are generally manufactured or provided by one company under another
company's brand.
Product Breadth:
The product breadth is the variety of product lines offered by a retailer.
Product Depth:
Product depth is the number of each item or particular style of a product on the shelves. Product
depth is also known as product assortment or merchandise depth.
Product Life Cycle:
The stages that a new product is belived to go through from the beginning to the end:
Introduction, Growth, Maturity and Decline.
Profit Margin:
A ratio of profitability calculated as earnings divided by revenues. It measures how much out of
every dollar of sales a retail business actually keeps in earnings.
Quantity Discount:
A reduction in price based on the amount purchased. May be offered in addition to any trade
discount.

Retailer:
What is the definition of a retailer? One who sells goods or commodities directly to consumers.
These items are generally sold in small quantities, at a marked up price from the manufacturer or
wholesaler.
Retailing:
The sale of goods or commodities in small quantities directly to consumers.
RFID:
Radio Frequency Identification (RFID) refers to the technology that uses radio waves to transmit
a product’s unique number from a tag to a reader

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Shoplifting:
What is shoplifting? Shoplifting is the theft of property which is worth less than $500 and which
occurs with the intent to deprive the owner of that piece of property. The crime of shoplifting is
the taking of merchandise offered for sale without paying.
Shrinkage;
Retail shrinkage is a reduction or loss in inventory due to shoplifting, employee theft, paperwork
errors and supplier fraud.
SKU;
The Stock Keeping Unit (SKU) is a number assigned to a product by a retail store to identify the
price, product options and manufacturer.
Visual Merchandising:
Visual merchandising is the art of implementing effective design ideas to increase store traffic
and sales volume.
Wholesale:
Wholesale is the sale of goods, generally in large quantity, to a retailer for resale purposes.
Management Information System:
Organized approach to the study of information needs of a management at every level in making
operational, tactical, and strategic decisions. Its objective is to design and implement man-
machine procedures, processes, and routines that provide suitably detailed reports in an accurate,
consistent, and timely manner.

Business System:
Hardware, software, policy statements, procedures, and people which together implement a
business function.
Baseline:
A specification or product that has been formally reviewed and agreed upon, that thereafter
serves as the basis for further development and that can be changed only through formal change
control procedures or a type of procedure such as configuration management.

66
Batch Processing:
Processing data or the accomplishment of jobs accumulated in advance in such a manner that
each accumulation thus formed is processed or accomplished in the same computer run
Communications Mechanism:
Hardware and software functions which allow Application Platforms to exchange information.
Communications System:
A set of assets (transmission media, switching nodes, interfaces, and control devices) that will
establish linkage between users and devices
Database:
Structured or organized collection of information, which may be accessed by the computer.
Database Management System:
Computer application program that accesses or manipulates the database.
Data Interchange Service:
A service of the Platform entity of the Technical Reference Model that provides specialized
support for the interchange of data between applications on the same or different platforms.
Data Management Service:
A service of the Platform entity of the Technical Reference Model that provides support for the
management, storage, access, and manipulation of data in a database.
External Environment Interface (EEI):
The interface that supports information transfer between the Application Platform and the
External Environment.
Information System:
The computer-based portion of a business system.
Information Technology (IT):
The technology included in hardware and software used for information, regardless of the
technology involved, whether computers, communications, micro graphics, or others
User:
1. Any person, organization, or functional unit that uses the services of an information
processing system.
2. In a conceptual schema language, any person or anything that may issue or receive
commands and messages to or from the information system.

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User Interface Service:
A service of the Application Platform entity of the Technical Reference Model (TRM) that
supports direct human-machine interaction by controlling the environment in which users
interact with applications

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