IT Strategy In Retail


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  • Hi, It's an EXCELLENT presentation covering all key drivers and IT needs of Retail domain. It would have been nice if you have also covered the constraints or obstacles and how the strategy could be implemented in a financial-crisis-scenario. I would appreciate if you please share the deck for my personal reference. Thanks
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IT Strategy In Retail

  1. 1. J.Sainsbury – IT Strategy Case Study – Module6 ArunKumar Arunachalaiah – eDMC (2009) IMCI
  2. 2. <ul><li>Problems interlinking software for different applications </li></ul><ul><li>Software Pricing </li></ul><ul><li>Investment on equipments that can become obsolete </li></ul><ul><li>Open systems </li></ul><ul><li>Implementation of Electronic shelf edge labels </li></ul><ul><li>Artificial Intelligence </li></ul><ul><li>Forecasting </li></ul><ul><li>Analyzing Consumer habits </li></ul><ul><li>Electronic communications </li></ul><ul><li>Processing huge data and creating a backup system </li></ul>ArunKumar Arunachalaiah
  3. 3. <ul><ul><li>Best of Breed vs. One stop solution </li></ul></ul><ul><ul><li>Alignment of current application portfolio with business needs </li></ul></ul><ul><ul><li>Understand business processes related to </li></ul></ul><ul><ul><ul><li>Supply chain </li></ul></ul></ul><ul><ul><ul><li>Distribution & Logistics </li></ul></ul></ul><ul><ul><ul><li>Inventory management </li></ul></ul></ul><ul><ul><ul><li>POS Sales </li></ul></ul></ul><ul><ul><ul><li>Master Data Management </li></ul></ul></ul><ul><ul><ul><li>Profit and Loss etc.. All other modules related to retail </li></ul></ul></ul><ul><ul><li>Integration between multiple IT systems for seamless & accurate flow of data </li></ul></ul><ul><ul><li>Create a common repository of data </li></ul></ul><ul><ul><li>Estimate ROI on IT Projects </li></ul></ul><ul><ul><li>Comparison of the companies IT cost wrt Industry </li></ul></ul><ul><ul><li>Risk analysis & mitigation strategies </li></ul></ul><ul><ul><li>Industry Best Practices </li></ul></ul>ArunKumar Arunachalaiah
  4. 4. <ul><ul><li>E- tailing </li></ul></ul><ul><ul><ul><li>Lifestyle change : internet dependency </li></ul></ul></ul><ul><ul><ul><li>Purchasing goods / services over the net </li></ul></ul></ul><ul><ul><li>E business </li></ul></ul><ul><ul><ul><li>Cost and time saving </li></ul></ul></ul><ul><ul><ul><li>Buyers and sellers come together more efficiently </li></ul></ul></ul><ul><ul><li>Revenue management </li></ul></ul><ul><ul><ul><li>Business process designed to maximize revenue at all levels of demand. </li></ul></ul></ul><ul><ul><li>Open source </li></ul></ul><ul><ul><ul><li>Using open source to manage the IT in retail sector </li></ul></ul></ul><ul><ul><li>Self Service </li></ul></ul><ul><ul><li>RFID </li></ul></ul>ArunKumar Arunachalaiah
  5. 5. <ul><ul><li>POS Systems </li></ul></ul><ul><ul><li>ERP for Retail </li></ul></ul><ul><ul><li>RFID </li></ul></ul><ul><ul><li>Artificial Intelligence </li></ul></ul><ul><ul><li>BI & Data Mining </li></ul></ul><ul><ul><li>Forecasting models </li></ul></ul><ul><ul><li>Vendor Managed Inventory Software </li></ul></ul><ul><ul><li>Voice Picking Warehouse order system </li></ul></ul><ul><ul><li>Measuring Footfalls </li></ul></ul>ArunKumar Arunachalaiah
  6. 6. <ul><ul><li>Knowledge as a key organizational driver </li></ul></ul><ul><ul><li>Customers preferences have started shifting to online transactions </li></ul></ul><ul><ul><li>Higher focus on customer relationship management </li></ul></ul><ul><ul><li>The World is flat !! Highly globalised world </li></ul></ul><ul><ul><li>Increasing concern for environment </li></ul></ul><ul><ul><li>Outsourcing non - value adding processes and business functions </li></ul></ul>ArunKumar Arunachalaiah
  7. 7. <ul><li>IT Strategy should be devised in a phased approach </li></ul><ul><li>Phase 1 </li></ul><ul><li>Till the company reaches a certain scale IT Strategy focus should be on bare minimum IT services like </li></ul><ul><li>1. Inventory Management </li></ul><ul><li>2. POS </li></ul><ul><li>3. CRM </li></ul>ArunKumar Arunachalaiah
  8. 8. <ul><li>Phase 2 </li></ul><ul><li>- Online shopping portal for consumers </li></ul><ul><li>- ERP Implementation to integrate Supply chain, Logistics, Inventory, Point of sale, master data management, and other such similar modules to enable seamless flow of data </li></ul><ul><li>This phase should also include applying IT Best practices. </li></ul>ArunKumar Arunachalaiah
  9. 9. <ul><li>Phase 3 </li></ul><ul><li>- Introducing upcoming technologies after the initial IT Infrastructure like open source, RFID, Vendor managed inventory software and measuring footfalls </li></ul><ul><li>- This phase also includes Data warehousing, data mining and other BI tools for advanced analysis </li></ul><ul><li>- May outsource certain functionalities like call centre service and support </li></ul>ArunKumar Arunachalaiah
  10. 10. <ul><li>To define the mid-term (3–5 years) IT Roadmap for a retailer encompassing: </li></ul><ul><li>Defining strategic needs </li></ul><ul><li>Prioritizing initiatives </li></ul><ul><li>Creating a business case for all investments </li></ul><ul><li>Assessing related needs like: vendor availability, people resources, required infrastructure </li></ul><ul><li>Assimilating best practices and instances of application solution implementation from retailers </li></ul>ArunKumar Arunachalaiah
  11. 11. ArunKumar Arunachalaiah
  12. 12. Operational dependence Competitive advantage J.Sainsbury ArunKumar Arunachalaiah
  13. 13. <ul><li>Currently IT is not used as a Strategic advantage at J.Sainsbury </li></ul><ul><li>It is widely used mainly for operations </li></ul><ul><li>Hence J.Sainsbury can be placed in the Factory Quadrant </li></ul><ul><li>Sainsbury needs to move up to the Strategic quadrant and hence should take up projects to give them competitive advantage </li></ul>ArunKumar Arunachalaiah
  14. 14. <ul><li>Survival Needs </li></ul><ul><li>Stock ordering, purchase and receipts should have IT involvement to reduce costs and improve efficiency </li></ul><ul><li>Planned degree of Computerization </li></ul><ul><li>Sainsbury may integrate its IT systems with its suppliers </li></ul><ul><li>It may implement Transport Management system </li></ul>ArunKumar Arunachalaiah
  15. 15. <ul><li>Survival Needs </li></ul><ul><li>Customer management systems, POS Systems enabled with barcode to reduce costs </li></ul><ul><li>Planned degree of computerization </li></ul><ul><li>Using BI and Data mining to leverage IT as a strategic tool </li></ul><ul><li>Using IT leveraging RFID Technology to measure footfalls and gauging consumer behaviour </li></ul>ArunKumar Arunachalaiah
  16. 16. <ul><li>Survival Needs </li></ul><ul><li>ERP Systems either integrated or stand alone applications as currently practiced is a survival need </li></ul><ul><li>Planned degree of computerization </li></ul><ul><li>Using a single ERP suite with seamlessly integrated data flow within all functions of the business </li></ul>ArunKumar Arunachalaiah
  17. 17. ArunKumar Arunachalaiah