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IT infrastructure at big bazaar

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IT infrastructure for a retail sector in India

IT infrastructure for a retail sector in India

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  • 1. Presented By-Dhananjay Anumandla- Shaunak Sontakke
  • 2. Topics Covered Introduction IT Infrastructure for Big Bazaar Network Design Intranet Apps Internet Apps RFID for Big Bazaar SOA for Big Bazaar Cloud for Big Bazaar Grid Computing for Big Bazaar
  • 3. Introduction Big Bazaar was launched in September, 2001 Big Bazaar is a chain of hypermarket in India. As ofJune 2, 2012 there are 214 stores across 90 cities andtowns in India covering around 16 million sq.ft. ofretail space. Big Bazaar is designed as anagglomeration of bazaars or Indian markets withclusters offering a wide range of merchandiseincluding fashion and apparels, food products, generalmerchandise, furniture, electronics, books, fast foodand leisure and entertainment sections. Big Bazaar is part of Future Group, it was startedby Kishore Biyani, the Group CEO and ManagingDirector of Pantaloon Retail India.
  • 4. IT Infrastructure for Business Smarter software is the muscle behind IT solutionsfor Big Bazaar Together with comprehensive technology andcost-effective methodologies, help Big Bazaarthrive in the fast-paced global economy and helpthem to: Deliver a smarter shopping experience: Increase brandequity, improve customer loyalty, and boost profits Build smarter operations: Retain the best employees,increase productivity, and streamline processes Create smarter merchandising and supply networks:Share information, synchronize activities, and workmore efficiently.
  • 5. IT Infra projects for BusinessHelps Communication: Communication within theorganization can be faster with the use of software likeLotus Notes. Retail stores can also communicate with eachother and with the warehouses. This can be done 24 hoursa day and seven days a week. Electronic Data Interchange(EDI) can also be used for communication with suppliersand vendors.Collection of Data: Data can be collected about consumers,their purchases the frequency of their buying and thetypical basket size. This information helps the retailerdistinguish the customers who shops at his store frequentlyand also reward them. For example information gatheredabout a customer may reveal preferences for certainbrands; this may be used for further communication withthe customer regarding promotional offers etc.
  • 6. StoreWarehouseStoreStoreWarehouseDatacenterDR DatacenterAll Branches / Retail StoresWebServerDNSServerProxyServerApplicationServerApplicationServerApplicationServerRouterFirewallSwitchWebServerDNSServerProxyServerApplicationServerApplicationServerApplicationServerRouterFirewallSwitchLeased linesLeased linesLeased linesLeased linesPrivate CloudBig Bazaar Network Design
  • 7. Intranet and Applications Front end Applications for employees use like,Billing software,Stock/Inventory,SalesMailing system These applications help management at each store in trackingStock of all products, procuring products when reached re-orderlevel to avoid stock out situations Also helps management in making Sales reports as and whenrequired like daily/weekly/monthly/yearly etc. These applications also helps higher management to track salesbased on each store at all locations across India, which helpsthem to concentrate on stores/locations where there is highprofitability/growth etc.
  • 8. InternetA public website helps people aware of the Big Bazaar store, find store location know products available online purchase of products for home delivery give feedback
  • 9. ITIL for Big Bazaar The Information Technology InfrastructureLibrary (ITIL) is a set of practices for IT servicemanagement (ITSM) that focuses on aligning ITservices with the needs of business ITIL describes procedures, tasks and checklists thatare not organization-specific, used by an organizationfor establishing a minimum level of competency. Itallows the Big Bazaar to establish a baseline fromwhich it can plan, implement, and measure. It is usedto demonstrate compliance and to measureimprovement in IT Services. This ensures 24*7 hrs uptime of IT services,minimizing any downtime required for any system orIT service upgradation.
  • 10. ITIL for Big Bazaar
  • 11. RFID for Big Bazaar In 2005, Future Group Initiates the implementation of SAP andpilots a RFID project at its central warehouse in Tarapur Largest RFID implementation mandate in Asia The investment in the RFID technology, close to Rs 200 crore,will be made through Future Knowledge Services (FKS) (anotherFuture Group company). Almost 1 million Stock Keeping Units (SKUs) out of a total of 3million will be tagged with RFID chips. The company has fixed a price band of Rs 400 and above for allcommodities which will be tagged over a period of one year. It will help the company to track inventory, automate billing andreduce thefts
  • 12. RFID Demo VideoPlay
  • 13. Benefits of RFID to Big Bazaar All pallets and boxes are having RFID. It helps checking materialhas gone missing during the transport Auto checking of correct boxes into correct vehicles with thehelp of RFID. Alarm users if wrong loading is done. Helps identification of product movement. Identify whichproducts moves faster on Friday or Wednesday Helps in calculating stocks 16% reduction in product stockouts since adoption of RFID. RFID equipped shops are 63% more efficient in replenishing out-of-stock items. Out-of-stock items are replenished 3 times faster with RFID. Cost of excess inventory was reduced by more than 10%
  • 14. SOA for Big Bazaar SOA delivers measurable benefits in today’s demandingretail environment Enables our retail outlets to quickly adopt more profitablebusiness models, such as SKU rationalization, revenueoptimization, self-serve kiosks, e-Commerce andconsumer-direct selling Supports the close integration of POS, store portals, labourmanagement systems, RFID, security and infrastructuresystems Reduces the cost, complexity and need for process orientedsoftware customization, while minimizing the cost ofsubsequent integrations
  • 15. SOA for Big Bazaar Encourages maximum reuse of business logic andservices across retail processes Supports an IT approach that cuts across siloapplications, supports closer integration with retailtrading partners and fosters more responsive,optimized operations Provides true platform independence, scalability, reuseand encapsulation to minimize impact of change,standards, XML, etc
  • 16. Cloud for Big Bazaar Mainly uses SAAS and IAAS
  • 17. SAAS Solutions for Big Bazaar Merchandising Send exactly the right merchandise to the right store Track the status of all merchandise through shipping,receiving, and distribution Allocate items directly to your stores using a fully integratedAllocation and Replenishment module to balance bothmerchandise plans and store-level sales activity. Store CRM Audit and Operations Management Planning Core Financials
  • 18. Challenges overcome by Saas SOA and SaaS concepts allows major cost reduction to Big Bazaar Upfront investment - The cost of the central system is usually notdirectly proportional to the number of stores, weighing more on smallor new chains. Deployment cost - Traditional software must be installed andmaintained by competent technicians travelling from store to storewith high cost and limited peak capacity. Also, remote maintenanceover the Internet is usually done one store at a time. Data-sharing difficulties - It is quite easy to share data with HQ, butcomplex to do with third parties—such as independent logistics,product catalogues, and market analysis—or when exchangingcustomer data with other non-competing chains for joint-loyaltyprograms. Cost of new software - feature implementation—The new feature,even if already available, must be bought and deployed over some teststores. If acceptable, the general deployment cannot be immediate.
  • 19. Grid Computing for Big Bazaar
  • 20. Grid Computing for Big Bazaar Enormous amount of data. To create intelligence from the data, huge processing power is required Need Business Analytics to understand, analyze and solve businessrelated issues Workload management and prioritization Governance of the entire IT environment Optimized performance across all business processes With grid computing and SAS applications, Business Analytics aredone faster, better and cheaper It distributes computing-intensive SAS application across hardwareresources across Big Bazaar Grid computing provides parallelization of Business Analytics job forimproved performance.