Role of Information technology in Retail

1. Role of IT in Retail Sector

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. 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. 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. • 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. 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
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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
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8. POS Software:
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•
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•
•
•
•
User Interface
Inventory
Reports
Invoicing
Receivables
Accounts Payable
Credit Card Payments
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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
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10. POS: Receipt Printer
Three Types
• Dot Matrix
• Thermal
• InkJet
Link
• Separate unit
• Integrated with other device
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11. POS: Barcode scanner
• LED
• CCD
• Laser
• Fixed
• Attached
• Portable
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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
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13. POS: Mag Stripe Reader
• Replaces the Retail Terminal
• Uses software to perform functions
• Usually connects to keyboard and barcode scanner
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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.
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15. POS: keyboard
A POS keyboard more closely resembles a cash register
key layout and usually has programmable keys. Some
have integrated card swipes.
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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
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17. POS: Scales
• Serial Port I/F to your PC
• POS Calculates total
• Desktop units / Built-in units
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18. POS: Check Reader / Printer
• Magnetic ink character recognition (MICR)
• Requires POS Software support
• Requires bank / online authorization service
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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
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20. POS: Pole Display
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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?)
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24. 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.

25. About to Fly

26. On Air

27. Prime Air Video