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Role of IT in Retail Industry

Role of Information technology in Retail

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Role of IT in Retail Industry

  1. 1. Role of IT in Retail Sector
  2. 2. The Importance Of Information Technology In The Retail Sector • With the increasing globalization of retailing, both in terms of their points-of-sale and their points-of-supply; the information technology (IT) spend in the retail sector has increased significantly. IT plays an increasingly important role in the management of complex retail operations. • Market knowledge, as well as control of data and information, is key to obtaining a competitive advantage in the retail sector. Markets are continuing to grow and become more complex; the simple process of retailing has started to deploy more advanced retail information systems to cope with all the transactions involved.
  3. 3. IT involvement in Retail • To increase the company’s ability to respond to the evolving marketplace through enhanced speed and flexibility. • To collect and analyze customer data while enhancing differentiation. • To work effectively; retailers need one system working across stores (or even across national borders) to make sure the most effective use of stock and improve business processes. • Retailers are beginning to notice that technology’s role is one of an enabler. Essentially, information technology can speed up processes and deliver cost saving benefits to the company.
  4. 4. Challenges • Customer data Many retailers struggle with information overload because they’re required to collect and sift through mass amounts of data, then convert it into useful information in a customercentric industry. • Transparency and tracking Retailers must increase transparency between systems, as well as obtain better tracking to integrate systems from manufacturer through to the consumer while obtaining customer and sales information.
  5. 5. • Global data synchronization Due to radio frequency identification/electronic product coding, the entire supply chain has become more intelligent. Retailers must enable the use of real-time data to watch inventory levels. In addition, radio frequency identification tagging positions the company to be able to safeguard its shipments by allowing products to be tracked from manufacturer through the entire supply chain.
  6. 6. Definition of POS • Point Of Sale. The physical location of a transaction but usually refers to any device or system used to record the transaction for the retailer. • CPOS: A computer-based POS which employs software to implement the POS functionality 6
  7. 7. Benefits of POS POS System Cash Register Inventory Control Yes No Invoicing and Receiving Yes No Interfacing with Accounting Yes No Reports Yes No Enforced accuracy Yes No Integrated CC handling Yes Limited General Ledger Yes No Accounts Payable Yes No Accounts Receivable Yes No Preferred by tax consultants Yes No 7
  8. 8. POS Software: • • • • • • • User Interface Inventory Reports Invoicing Receivables Accounts Payable Credit Card Payments 8
  9. 9. POS Hardware-Components • • • • • • • • • • Display / Touch screen Cash Drawer Receipt Printer Bar code scanner (fixed, attached, portable) Label / Report printer Mag stripe reader POS Keyboard Scales PDA Pole Display 9
  10. 10. POS: Receipt Printer Three Types • Dot Matrix • Thermal • InkJet Link • Separate unit • Integrated with other device 10
  11. 11. POS: Barcode scanner • LED • CCD • Laser • Fixed • Attached • Portable 11
  12. 12. POS: Typical Configuration Connect cable between cash drawer and receipt printer. Note that ends are NOT the same. Plug keyboard into ‘Y’ cable. Plug other connector into keyboard port on computer Connect printer interface cable to LPT1 Mag stripe reader 12
  13. 13. POS: Mag Stripe Reader • Replaces the Retail Terminal • Uses software to perform functions • Usually connects to keyboard and barcode scanner 13
  14. 14. POS: Mag Stripe Reader Track 1 Track 2 Normally encodes the cardholder’s name, card number and card expire date. Also contains the cardholder’s card number and expire date. This provides data redundancy on the card. 14
  15. 15. POS: keyboard A POS keyboard more closely resembles a cash register key layout and usually has programmable keys. Some have integrated card swipes. 15
  16. 16. POS: Portable Data Assistant (PDA) Portable data collection • Inventory • Audits • Remote data entry • Restaurants and lounges • Lumber yards • Remote inventory    Wireless Docking station Cable connected 16
  17. 17. POS: Scales • Serial Port I/F to your PC • POS Calculates total • Desktop units / Built-in units 17
  18. 18. POS: Check Reader / Printer • Magnetic ink character recognition (MICR) • Requires POS Software support • Requires bank / online authorization service 18
  19. 19. POS: Slip Printer • Ideal for printing ‘Company branded” slips and forms. • Record keeping • Warranty info, layaway receipts • Restaurants, Gas stations, Retail stores • Combo receipt / slip printers available 19
  20. 20. POS: Pole Display • • • • Item and price information Customer comfort Display Advertising Serial Port I/F (RS-232) • Characters per line / number of lines • LED, Plasma • Character sets (Chinese?) 20
  21. 21. Amazon Prime Air • The goal of this new delivery system is to get packages into customers' hands in 30 minutes or less using unmanned aerial vehicles. • Putting Prime Air into commercial use will take some number of years as we advance the technology and wait for the necessary FAA rules and regulations.
  22. 22. About to Fly
  23. 23. On Air
  24. 24. Prime Air Video