INTRODUCTION

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.

Retailing is the Last stage in Distribution Process- Wholesale is an intermediate where

Goods and services are sold to Business customers.

Retailer is customer focused, not Product –focused. Manufacturers will decide on Retail
Distribution:
 Intensive
 Selective
 Exclusive

INFORMATION SYSTEMS
Definition:
An information system is a mechanism that helps people to collect, store, organize
and use information.

The basic purpose of information system is to help it’s users get a certain type of value
from the information in the system, regardless of the type of information that is stored or
the type of value desired.

Information system have become such a normal part of the modern business world that
we do not notice them anymore.

For Example:

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 Do you realize that the process of making an ATM withdrawal is managed by huge
Financial Information System?

Purpose of IS
• To Store Huge Amount of Data
• Handling Information to Ensure Integrity
• The Rules Regarding Data’s use and Distribution

Types of IS
As more and more business functions have been automated, information system have
become increasingly specialized. The specialized systems can operate alone or they can
be combined to create a larger system that performs different functions for different
people. For Example: Google…
• Office Automation Systems
• Transaction Processing Systems
• Management Information Systems
• Decision Support System
• Expert Systems

Office Automation System

An office automation system uses computers or networks to perform various
operations. Such as word processing, accounting, document management or
communication. Office automation systems are designed to manage information, to help
users handle certain information related tasks more efficiently.

Transaction processing systems

• A transaction is a complete event, which may occur as a series of many steps,
such as taking an order from a customer.

A system that handles the processing and tracking of transactions is called

Transaction Processing System.

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Management Information System

Within a business, workers at different level need access to the same type of information,
but they may need to view the information in different ways. A management information
system (MIS) is a set of software tools that enables managers to gather, organize and
evaluate the information about workgroup, department or entire organization.

Decision Support System

A Decision Support System (DSS) is a special application that collects and reports
certain types of business data that can help managers make decisions.

Business managers use DSS to access and analyze data in the company’s Transaction
Processing Systems.

Expert System

An Expert System performs tasks that would normally be done by a human. Such as
medical diagnoses or loan approvals.

After analyzing the relevant data, some expert systems recommend a course of action,
which a person can then consider taking.

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 Information System Technologies

Information system rely on a veritable three-dimensional puzzle managed by

professionals who work hard to stay at the leading edge of technology in keeping correct
IS services stable.
• Intranets
• Extranets
• Virtual Private Networks
• Electronic Data Interchange

Task 1:
Discuss and propose a set of new business goals and business strategies. This should
include the market share, excellent customer relationship and cost leadership.

BIL GOALS BUSINESS INFORMATIO INFORMATION

STRATEGIES N SYSTEM STRATEGIES
1. Increase Market 1. Pricing strategies Pricing Monitoring prices,
Capture volume, profit between
own brands and other
substitutes
2. Introduce new Products 1. Product flexibility
range of product 2. Lower prices
3. Capacity utilization
2. Advertising Sales promotions and Promotion Multimedia advertising
display techniques Visual Merchandising
3 Customer loyalty 1. Strengthen Supplier Customer loyalty
relationship/intimac programme
y with customer
and supplier

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Task 2
Identify, list and justify the information that are required to support the
business strategies and goals.

 Customer identification using RFID: This involves identifying customers by

issuing them smart cards embedded with smart chips. These cards would be RFID
enabled and would give information regarding the customer like his preferences,
shopping behavior etc.

 E-Catalog based selling: Here a limited range of merchandise is available in-

store, while the range of a hyper format is made available through self browse
kiosks.

 Mobile Point of Sale (POS): This would enable the purchase of goods while
putting them in a shopping cart. The customer would be spared the hassle of
standing in long queues.

 Digital Signage: Static signboards have not proved beneficial in terms of helping a
customer track a product. Digital signboards integrated with an automated tracking
system can make this easier.

 Intelligent database: A detailed database of the customer is made available online

and helps the retailer understand a particular customer’s buying characteristics.

TRANSACTION PROCESSING SYSTEM

A transaction processing system is a set of information which processes the data

transaction in database system that monitors transaction programs. Its essence is that it
manages data that must be left in a consistent state. A transaction processing system is
mostly used at operational level, usually creates detailed reports of daily transactions
or future transactions and reports are generated are useful only to lower level

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managers. One functional area of a business consists of a transactional processing
system. The main features of a transaction processing system are
- It serves the most elementary day to day activities of an organization.
- It is mostly for predefined and structured tasks
- Supplies data for higher level management decisions
- It is often the critical level for the organization.

It is characterized by inflexibility that it wants every transaction to be processed in

the same regardless of the time of day.

DECISION SUPPORT SYSTEMS

This is an integrated set of computer tools that allow a decision-maker to interact

directly with computers to create information useful in making semi and unstructured
decisions.

These are complex decisions like mergers, acquisitions, plant expansion, new
product and marketing.

The system provides necessary information in decision makers.

It is an interactive information system that rely on an integrated set of user friendly

hardware and software tools to produce and present information that is targeted
to support management in decision to choose between alternatives by ranking them
automatically basing on decision maker criteria.

The main features include,

- It aids decision-makers in the decision-making process.

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- It is designed to address semi and unstructured decisions.

- Supports decision-makers at all levels but most effective at tactical and

strategic level.

It is interactive, user-friendly system that the decision-maker uses with little

assistance from MIS professionals. Provides the mechanism to enable a rapid
response to a decision-makers request for information.

It facilitates communication between levels of management and it has capability

to interface with corporate database.

EXECUTIVE INFORMATION SYSTEM

Executive information system provides the executives with information for

decision support for pursuing the attainment of a competitive advantage.
It focuses on meeting the strategic information needs of top management.

It provides the executives with the facts and figures of middle managers. It
enables managers to get access to key internal and external data.

The features of executive information system include;

It is tailored to individual executives’ user. Extract, filter, compress and tract

critical data.

It contains powerful software for supporting the unstructured which are

found in strategic management. Executive information systems have
access to the tireless reliable expertise to support the decision making in
specialized areas.

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It uses sophisticated graphic displays which are user friendly and allows
executives to interact with the system and even display the output
information in an understandable form using graphics such as histogram,
charts, trend graphics etc.

It allows flexible data manipulation and presentation. It enables the managers to

move around the different sets of data in the corporate database.

It provides summarized data captured from the organization main system. It

can allow the executive to view the accounting records, sales etc.

Data warehousing
Data warehouse is a consolidated database maintained separately from an
organization's production system database. Many organizations have multiple
databases. A data warehouse is organized around informational subjects rather
than specific business processes. Data held in data warehouses are time
dependent, historical data may also be aggregated.

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Bar coding and Scanner:

• Bar code scanners are most visible in the check out counter of super
market. This code specifies name of product and its manufacturer. Other
applications are tracking the moving items such as components in PC
assembly operations, automobiles in assembly plants.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

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 • The ideas and strategies that are used by companies to manage their
relationships with their customers including capture, storage and analysis
of customer information

Technology used
• CRM specific database or Enterprise Data Warehouse
• Operational CRM- agent support software
• Collaborative CRM- interactive website or automated phone system
• Analytical CRM- statistical analysis software

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 E-Retail

 E-Retail is fast becoming the most preferred way to shop, it has a huge
operation base in Foreign countries but the concept still has to find
foothold in our country.

 An e-retailer is an retailer that uses the Internet as a medium for

customers to shop for the goods or services provided.

 Types of e-retailers:
- Pure Plays e.g. Dell, Amazon, etc.

Features on E-Retail websites

 End use products customizations

 Comparison shopping

 Contextual shopping help

 VOiP (Voice over Internet Protocol)

 Data Feeds

 Aggregation Mechanisms

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 Task 3
Propose a set of IS strategies that will support the business strategies
and goals.

Propose set of IS Strategies

Bil Step What How Examples
1. Strategic Vision, mission, i) To do current To be a premier
management target goal, performance hypermarket destination:
component strategies - plan analysis. Goal:
ii) To do i) Achieve
environment RM100mil /annum
analysis ii) Establish
iii) From 1 & 2, we international presence
choose a iii) 75% local
direction talents and products
2. Identify base Information – i) Business model i) Products
info must manage to ii) Business process ii) Services
achieve goal iii) Competitors iii) Competition
iv) Environments iv) Customers
v) Staff
3. Develop IS How to use IS to What do we want IS Info strategy to provide:
strategies manage base info to manage info - customer profile
- real time customer
database
- online purchasing
- suppliers
- product

The System Development Life Cycle

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To help create successful information systems, the system development life
cycle (SDLC) was developed. The SDLC is an organized way to build an
information system. The SDLC is a series of five phases

• Need Analysis
• System design
• Development
• Implementation
• Maintenance

Phase 1: Need Analysis

During this phase, the development team focuses on completing three tasks:
 Defining the problem and deciding whether to proceed.

 Analyzing the current system of depth and developing possible solutions

to the problem

 Selecting the solution and finding it’s functions

Phase 2: System Design

During this phase the development team tackles the “how” of the selected
solutions.
For example:
• How many input screen are required and what will they look like?

• What kind of menu options must be available?

• What kind of database will the system use?

The analysts and programmers use a combination of following designs

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Top – Down Design:
Start with big picture and move to the detail
Bottom – Up Design:
Starts with the details and then moves to the big picture

Phase 3: Development
During this phase, programmer play key role, creating or customizing the
software for various parts of the system. There are two alternative paths through
this phase:
Acquisition:
Using of of-the-shelf hardware and software and may decide to acquire
rather then design.
Local Development:
when an of-the-shelf solution is not available or will not work with other
parts of system, team develop a solution themselves.

Phase 4: Implementation
In this phase the project team installs the hardware and software in the
user environment. The user start using the system to perform work .
The process of moving from old system to the new is called Conversion.
There are several ways to convert an organization:
 Direct Conversion
 Parallel Conversion
 Phased Conversion
 Pilot Conversion

Phase 5: Maintenance
After the information system is implemented, IS professionals continue to provide
support during maintenance phase. The monitor various indices, such as:
• Respond to the user’s requirement
• Ensure that the system is performing as intended

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 • Correcting the errors in the system
• Regularly up gradation of the system
• Making patch repairs to the system

Task 3
Discuss the role of the IS strategies in achieving the goals of the
hypermarket.

 Unorganized Retail market

 Entry of Foreign players
 Increasing Spending power of the Indian consumer
 Changing pattern of Consumption
 Increasing Urban population-more participants in Retail industry
 Increasing Demand for lifestyle products and esteem enhancing products.
 Increase in use of cash-less shopping, i.e. use of credit/debit cards
 Fulfill consumer demand on time
 Better distribution channels

Advantages conferred by IT

 Operational efficiency through better management of supply chain,

inventory and store
 Improved productivity through automation, e.g. use of POS
 Enhanced customer experience through use of kiosks, mobile POS, digital
signage
 Consistency in business process
 Transparency in business process
 Increased ROI (Return on Investment)

 Easy tracking of inventory and leakage

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 Enables cross selling other products
 Allows performance management across locations, categories, etc.
 Extends geographical reach

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CONCLUSIONS

World is shrinking day by day with advancement of technology. Customers'

expectations are also increasing and companies are prone to more and more
uncertain environment. Companies will find that their conventional supply chain
integration will have to be expanded beyond their peripheries. The strategic and
technological innovations in supply chain will impact on how organizations buy
and sell in the future. However clear vision, strong planning and technical insight
into the Internet's capabilities would be necessary to ensure that companies
maximize the Internet's potential for better supply chain management and
ultimately improved competitiveness. Internet technology,

World Wide Web, electronic commerce etc. will change the way a company is
required to do business. These companies must realize that they must harness
the power of technology to collaborate with their business partners. That means
using a new breed of SCM application, the Internet and other networking links to
observe past performance and historical trends to determine how much product
should be made as well as the best and cost effective method for warehousing it
or shipping it to retailer.

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REFERENCES

1. ^ "Distribution Services". Foreign Agricultural Service. 2000-02-09.

http://www.fas.usda.gov/info/factsheets/China/distribution.html. Retrieved
2006-04-04.

2. ^ Harper, Douglas. "retail". Online Etymology Dictionary.

http://www.etymonline.com/index.php?term=retail. Retrieved 2008-03-16.

3. ^ Philip H. Mitchell 2008, Discovery-Based Retail, Bascom Hill Publishing

Group ISBN 9780979846793

4. ^ US Census Bureau Retail salesRetail SalesRetail Sales Definition

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