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IT Strategy for the retail domain

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This presentation talks about the Retail industry inside out and focusses on the IT strategy being followed in the industry. A business case for Carrefour is built up for various candidate projects analysed using a 10 lens method.

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IT Strategy for the retail domain

  1. 1. IT Strategy for Carrefour Singapore Group 5 Ankit Malhotra (IT 006)| Madhur Raj (IT 032) |Nandini Mittal IT 023| Raaj Poddar (IT 030) |Sameer Tandon (IT 039) |Sudhin Dutta (IT 048)
  2. 2. Background <ul><li>Etymology - Retail comes from the French word  retaillier  which refers to &quot;cutting off, clip and divide&quot; in terms of tailoring (1365) </li></ul><ul><li>Definition - Retailing  consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosks, or by post, in small or individual lots for direct consumption by the purchaser </li></ul>
  3. 3. Phase 1 – Homework Business Drivers, Trends and Company Analysis
  4. 4. <ul><li>O VERVIEW O F T HE R ETAIL S EGMENT </li></ul>
  5. 5. Market Share
  6. 6. Market Share <ul><li>Source : www.scribd.comcarrefour </li></ul>
  7. 7. Product Offerings <ul><li>Structured & organized retail </li></ul><ul><li>Large range of SKU’s – variety of choice for the consumer </li></ul><ul><li>One stop shop for all consumer needs – all under one roof </li></ul><ul><li>Multiple formats to suite consumer needs </li></ul><ul><ul><ul><li>Hypermarkets </li></ul></ul></ul><ul><ul><ul><li>Supermarkets </li></ul></ul></ul><ul><ul><ul><li>Speciality stores </li></ul></ul></ul><ul><ul><ul><li>Discount Stores </li></ul></ul></ul><ul><ul><ul><li>Convenient Stores </li></ul></ul></ul>
  8. 8. Unique Selling Point’s <ul><li>Lowest price offerings – Everyday low prices as compared to conventional pricing strategies of regular retailers </li></ul><ul><li>Promotions & Discounts </li></ul><ul><li>Customer Loyalty Programmes </li></ul><ul><li>Tracking customer repeat visits </li></ul><ul><li>Knowing Customers & designing specific promotions based on preferences </li></ul><ul><li>Private Label brands </li></ul>
  9. 9. Retail Business Strategies <ul><li>Assess segment growth opportunities </li></ul><ul><li>Satisfy stakeholders needs </li></ul><ul><li>Analyse customer needs & wants </li></ul><ul><li>Achieve industry benchmarks in customer service </li></ul><ul><li>Marketing </li></ul><ul><li>Brand Building/Positioning </li></ul><ul><li>Innovate </li></ul><ul><li>Think ahead of the competition </li></ul><ul><li>Effective cost management </li></ul><ul><li>Inventory & Vendor Managements </li></ul>
  10. 10. Business Drivers <ul><li>New Offerings, New promise </li></ul><ul><li>Strong competition </li></ul><ul><li>Sophisticated ,Savvy and demanding customers </li></ul><ul><li>Price and margin pressures </li></ul><ul><li>Organic growth </li></ul><ul><li>New Revenue streams </li></ul><ul><li>Employee attraction, retention & Productivity </li></ul>
  11. 11. Key Issues
  12. 12. Key Issues faced by Retail Sector <ul><li>Cost of investment from secure, integrated and scalable IT systems and environments </li></ul><ul><li>Fierce price competition in online retailing compared to retail stores </li></ul><ul><li>Channel synchronization i.e. ensuring brand, customer experience and customer information consistency across channels while avoiding the 3E trap </li></ul><ul><li>Problems in merging and standardising customer data </li></ul><ul><li>Difficulties in reducing organisational boundaries and integrating new channels with increased globalization </li></ul><ul><li>Inaccuracy in forecasting causes inventory stock outs or inventory clogging </li></ul>
  13. 13. Competitive Dynamics <ul><li>Competitive actions and responses among leaders and followers </li></ul><ul><li>First mover advantage </li></ul><ul><li>Multi-point and multi-market competition </li></ul><ul><li>Strategic groups </li></ul><ul><li>Regional clusters </li></ul>
  14. 14. Core Attributes <ul><li>Strong brands across all major sub-categories </li></ul><ul><li>Ability to innovate and respond to consumer trends </li></ul><ul><li>Strong customer relationship across main channels to markets </li></ul><ul><li>The infrastructure necessary to produce, market, sell and distribute products </li></ul>
  15. 15. Margins
  16. 16. Key Performance Indicator’s
  17. 17. Key Performance Indicator’s
  18. 18. Key Performance Indicator’s
  19. 19. Critical Success Factors
  20. 20. Some IT players in Retail <ul><li>Implementers of Retails Solutions </li></ul><ul><ul><li>IBM </li></ul></ul><ul><ul><li>Accenture </li></ul></ul><ul><ul><li>Capgemini </li></ul></ul><ul><ul><li>Fujitsu </li></ul></ul><ul><ul><li>HP </li></ul></ul><ul><ul><li>Cognizant </li></ul></ul><ul><ul><li>TCS </li></ul></ul><ul><ul><li>Infosys </li></ul></ul><ul><ul><li>Wipro </li></ul></ul>
  21. 21. IT Companies in Retail <ul><li>ERP Solutions </li></ul><ul><ul><li>SAP Retail </li></ul></ul><ul><ul><li>Microsoft Dynamics </li></ul></ul><ul><ul><li>Oracle ERP </li></ul></ul><ul><li>Point of Sales Systems </li></ul><ul><ul><li>IBM POS Systems </li></ul></ul><ul><ul><li>Microsoft </li></ul></ul><ul><ul><li>NCR </li></ul></ul><ul><ul><li>Logic Controls </li></ul></ul><ul><ul><li>HP </li></ul></ul><ul><ul><li>Magtec </li></ul></ul><ul><ul><li>Retalix </li></ul></ul>
  22. 22. Top Ten ERP Vendors Source : http://www.amrresearch.com/content/View.asp?pmillid=18358
  23. 23. General Considerations for Retail – IT strategies <ul><li>Best of Breed vs. One stop solution </li></ul><ul><li>Alignment of current application portfolio with business needs </li></ul><ul><li>Understand business processes related to </li></ul><ul><ul><li>Supply chain </li></ul></ul><ul><ul><li>Distribution & Logistics </li></ul></ul><ul><ul><li>Inventory management </li></ul></ul><ul><ul><li>POS Sales </li></ul></ul><ul><ul><li>Master Data Management </li></ul></ul><ul><ul><li>Profit and Loss etc.. All other modules related to retail </li></ul></ul>
  24. 24. Contd.. <ul><li>Integration between multiple IT systems for seamless & accurate flow of data </li></ul><ul><li>Create a common repository of data </li></ul><ul><li>Estimate ROI on IT Projects </li></ul><ul><li>Comparison of the companies IT cost wrt Industry </li></ul><ul><li>Risk analysis & mitigation strategies </li></ul><ul><li>Industry Best Practices </li></ul>
  25. 25. General Strategies for Retail <ul><li>Framework for Business IT Fusion </li></ul><ul><ul><li>(Source : www.lakewest.com) </li></ul></ul>
  26. 26. Social Factors affecting Retail <ul><li>Growing non traditional households </li></ul><ul><li>Time constraints </li></ul><ul><li>Higher educational attainment </li></ul><ul><li>Geographic migration </li></ul><ul><li>Convenience requirement </li></ul><ul><li>Retailer / supplier alliances </li></ul><ul><li>Expanded use of technology </li></ul><ul><li>Demand of specialty items </li></ul><ul><li>Micromarketing </li></ul>
  27. 27. Current Trends <ul><li>E- tailing </li></ul><ul><ul><li>Lifestyle change : internet dependency </li></ul></ul><ul><ul><li>Purchasing goods / services over the net </li></ul></ul><ul><li>E business </li></ul><ul><ul><li>Cost and time saving </li></ul></ul><ul><ul><li>Buyers and sellers come together more efficiently </li></ul></ul><ul><li>Revenue management </li></ul><ul><ul><li>Business process designed to maximize revenue at all levels of demand. </li></ul></ul>
  28. 28. Current Trends <ul><li>Open source </li></ul><ul><ul><li>Using open source to manage the IT in retail sector </li></ul></ul><ul><li>Self Service </li></ul><ul><li>RFID </li></ul>
  29. 29. Major technologies / innovations <ul><li>POS Systems </li></ul><ul><li>ERP for Retail </li></ul><ul><li>RFID </li></ul><ul><li>BI & Data Mining </li></ul><ul><li>Vendor Managed Inventory Software </li></ul><ul><li>Voice Picking Warehouse order system </li></ul><ul><li>Measuring Footfalls </li></ul>
  30. 30. <ul><li>O VERVIEW O F C ARREFOUR </li></ul>
  31. 31. Carrefour - &quot;Choice and quality for everyone&quot; <ul><li>World’s second-largest retailer and the largest in Europe </li></ul><ul><li>The Carrefour group currently has over 12,000 stores, either company-operated or franchises in 30 Countries </li></ul>
  32. 32. Scoring Points over the last year
  33. 33. A Snapshot <ul><li>N°2 worldwide </li></ul><ul><li>N°1 in Europe </li></ul><ul><li>4 main store formats </li></ul><ul><li>- Hypermarkets - Supermarkets - Hard Discounts Stores - Convenience </li></ul><ul><li>102.442 billion euro's sales incl. tax under banners in 2007 </li></ul><ul><li>37.6 billion euro's of market capitalization on December 31,2007 </li></ul><ul><li>+ 490,000 employees </li></ul>
  34. 34. Global Footprint - Hypermarkets <ul><li>Source : Primary Research – Carrefour Singapore </li></ul>
  35. 35. Global Footprint Source : www.scribd.comcarrefour
  36. 36. Global Footprint <ul><li>Source : www.scribd.comcarrefour </li></ul>
  37. 37. Global Footprint <ul><li>Source : www.scribd.comcarrefour </li></ul>
  38. 38. Revenues <ul><li>Source : www.scribd.comcarrefour </li></ul>
  39. 39. Organization Structure Source : Primary Research – Carrefour Singapore
  40. 40. Share Price Movement over the past year
  41. 41. Business Model <ul><li>Predictive & Cash generative business model </li></ul><ul><li>Low risk & non-cyclical business </li></ul><ul><li>Multiple store formats </li></ul><ul><li>Advantage of being market leader – Number 1 in Europe & Number 2 worldwide (after Wal-mart) </li></ul><ul><li>Efficient cash flow management – YOY decreasing debts </li></ul>
  42. 42. Business Model <ul><li>Hypermarkets - > the appeal of the new </li></ul><ul><li>Supermarkets -> making life easier </li></ul><ul><li>Hard discount -> grocery products at low prices </li></ul><ul><li>Cash & carry -> proximity and accessibility for catering professionals </li></ul><ul><li>Convenience stores -> </li></ul><ul><li>just what you need, </li></ul><ul><li>right next door </li></ul><ul><li>E-commerce </li></ul>Source: http://www.carrefour.com/cdc/group/
  43. 43. Business Strategy
  44. 44. Business Strategy Source : www.scribd.comcarrefour
  45. 45. Birds Eye View of Business Model of Carrefour Supplier 1 Supplier 2 Supplier 3 Supplier N DC Store 1 Store N Store 2
  46. 46. Best Practices adopted by Carrefour <ul><li>Vendor Managed Inventory - Carrefour’s inventory is integrated, controlled and co-managed by key vendors </li></ul><ul><ul><li>Singapore Carrefour does not have VMI implementation </li></ul></ul><ul><li>Closer relationships with Suppliers – Preferential strategic tie-ups with suppliers </li></ul><ul><li>Use of Cross Docking to reduce the number of DC’s </li></ul><ul><li>Using Voice picking for better productivity and reduce picking errors </li></ul><ul><li>Using RFID technology to track and verify quantities of each logistics unit </li></ul>
  47. 47. E-Commerce <ul><li>Ooshop: the online grocery store </li></ul><ul><li>Ooshop was set up to enable Carrefour to market its food products online. </li></ul><ul><li>CarrefourOnline.com: everything you need in non-food, online </li></ul><ul><li>DVDs, games, software, music, books, household electrical goods, music downloads </li></ul>
  48. 48. CSFs for Carrefour
  49. 49. KPIs for Carrefour <ul><li>Average time spent by customers in the store </li></ul><ul><li>Conversion rate </li></ul><ul><li>Sales compared to budget/target </li></ul><ul><li>Average Sale per Customer/Transaction </li></ul><ul><li>YOY growth in revenues and profit </li></ul><ul><li>Country/City/Store wise sales </li></ul><ul><li>Weekend Promotion Sales </li></ul><ul><li>Sales per hour </li></ul>Source: http://www.dmsretail.com/kpi's.htm
  50. 50. KPIs for Carrefour <ul><li>Gross Margin Analysis </li></ul><ul><li>Customer visits </li></ul><ul><li>Footfalls </li></ul><ul><li>Cashier Performance </li></ul><ul><li>SKU Wise Sales </li></ul><ul><li>Segment/ SBU wise sales </li></ul><ul><li>Inventory Days </li></ul><ul><li>Stock-Outs Days </li></ul><ul><li>Markdowns </li></ul>
  51. 51. Differentiation– Cost Leadership <ul><li>Access to the capital needed to invest in technology that will bring costs down. </li></ul><ul><li>Very efficient logistics. </li></ul><ul><li>A low cost base (labor, materials, facilities), and sustainably cutting costs below those of other competitors. </li></ul>Source: http://www.mindtools.com/pages/article/newSTR_82.htm
  52. 52. SWOT Analysis
  53. 53. SWOT Contd…
  54. 54. Key Financial Indicators Increasing Cash Flows, decreasing debts Source : www.scribd.comcarrefoursastrategy
  55. 55. Key Financial Indicators Increasing Cash Flows, decreasing debts Source : www.scribd.comcarrefoursastrategy
  56. 56. Key Financial Ratios Source : www.scribd.comcarrefour
  57. 57. Sources Of Revenue <ul><li>High volume sales @ retail stores </li></ul><ul><li>Low Costs leading to high margins </li></ul><ul><li>Other Incomes from Investments and Operations </li></ul><ul><li>House Brands </li></ul>
  58. 58. Phase 2 – Candidate Project Identification
  59. 59. <ul><li>LENS 1 </li></ul><ul><li>IDENTIFICATION OF GLOBAL TRENDS </li></ul>
  60. 60. Global Trends affecting IT projects <ul><li>Knowledge as a key organizational driver </li></ul><ul><li>Customers preferences have started shifting to online transactions </li></ul><ul><li>Higher focus on customer relationship management </li></ul><ul><li>The World is flat !! Highly globalised world </li></ul><ul><li>Increasing concern for environment </li></ul><ul><li>Outsourcing non - value adding processes and business functions </li></ul>
  61. 61. Candidate projects based on global trends <ul><li>Develop applications to foster better knowledge management e.g. K-Wiki, Knowledge repository </li></ul><ul><li>Online shopping with ready cart or home delivery </li></ul><ul><li>CRM for efficient lead creation, lead management etc. </li></ul><ul><li>Data mining and BI to improve sales and customer satisfaction. Using techniques like market basket analysis, clustering etc. </li></ul><ul><li>Virtualization to reduce number of data centers as a part of Green IT initiative </li></ul><ul><li>Outsourcing support and maintenance of IT systems and non critical applications </li></ul>
  62. 62. <ul><li>LENS 2 </li></ul><ul><li>CHARACTER OF THE COMPANY </li></ul>
  63. 63. Identify Character of the Company <ul><li>Business Strategy of Carrefour </li></ul>
  64. 64. Justification of character of company <ul><li>Carrefour has a business strategy of higher volume business driven by price competitiveness. </li></ul><ul><li>Their business model is primarily driven by cost reduction. Hence they would need automation of manual processes to achieve cost efficiency which will in turn help them maintain sustainable margins </li></ul><ul><li>Hence Carrefour can be categorized under cost quadrant. </li></ul>
  65. 65. Identify Character of the Company
  66. 66. Candidate projects based on Character of company <ul><li>Project on Integrating sales and inventory management systems between all hypermarkets, supermarkets and stores in a region for more efficient inventory management </li></ul><ul><li>Projects to cater online shopping with facility to pick up ready cart or home delivery </li></ul><ul><li>Project on auto-billing systems using RFID which will reduce number of cash counters, staff and increase shop floor space </li></ul><ul><li>Project to centralize IT systems for better management </li></ul>
  67. 67. <ul><li>LENS 3 </li></ul><ul><li>ROLE OF IT IN TRANSFORMATION </li></ul>
  68. 68. Lens 3 – Role of IT in transformation
  69. 69. Lens 3 – Role of IT in transformation cont… Process Current Quadr-ant New Quadr-ant Business Capability IT Capability IT Role Candidate Project Increase Customer satisfaction C Q Customer delight is need of hour Automated billing technique using RFID Y E S Y E S Save customer time C Q Customer time is crucial particularly of working professional Online shopping with ready to pick/ home delivery Y E S Y E S Reduce Supplier dependency C Q Automatic ordering of required inventory Vendor managed inventory Y E S Y E S
  70. 70. Business strategy
  71. 71. Renewed Innovation to achieve business strategy
  72. 72. Renewed Innovation to achieve business strategy cont….
  73. 73. Renewed Innovation to achieve business strategy cont….
  74. 74. <ul><li>LENS 4 </li></ul><ul><li>LOOKING AT THE BUSINESS STRATEGY </li></ul>
  75. 75. Lens 4 - Application of Porter’s 5 forces with IT perspective
  76. 76. How IT can create
  77. 77. How IT can change
  78. 78. How IT can change
  79. 79. How IT can change
  80. 80. <ul><li>LENS 5 </li></ul><ul><li>USER SURVEY </li></ul>
  81. 81. User Survey
  82. 82. <ul><li>LENS 6 </li></ul><ul><li>COMPETITOR ANALYSIS </li></ul>
  83. 83. Retail - Benchmarks
  84. 84. Competitor Analysis Matrix Ratings Carrefour Tesco Wal-Mart Countries France, Belgium, Spain, South Korea, Singapore, Dubai Britain, Eastern Europe, Thailand, Korea U.S.A. Critical Succes Factors       Number of stores 12000+ 2300+ 7000+ 3 PL Logistics efficiency High Medium High Supplier dependancy Medium High Low Effective Transportation High Medium High Storage Space utilisation High Medium High Key Indicators       Sales Growth High High High Supply chain costs Low Low Low Profit Margins High Medium High Use of Information Technology       RFID usage Partial Yes Yes ERP and CRM in place Yes Yes Yes Use of Business Intelligence Partial Partial No Virtualised / Robust IT Infrastructure Partial Partial Yes EDI usage for procurement Yes Yes Yes Online Shopping Partial Yes Yes
  85. 85. Candidate Projects <ul><li>Internet market and e-tailing </li></ul><ul><li>Full scale Implementation of RFID technology </li></ul><ul><li>Integration with WMS, transportation and Inventory management </li></ul><ul><li>EDI and internet to develop one to one customer relationships </li></ul>
  86. 86. <ul><li>LENS 7 </li></ul><ul><li>TECH SCAN </li></ul>
  87. 87. Tech Scan (1/2) <ul><li>Digital Signage : Branding, RFID, Revenue Generator </li></ul><ul><ul><li>Candidate : Deploy digital signages across stores </li></ul></ul><ul><li>Centralized & Local Store Data Management : Immediate data availability </li></ul><ul><ul><li>Candidate : Deploy local storage mechanisms at each store for faster and efficient operations </li></ul></ul><ul><li>Rack Servers : More capacity, less space </li></ul><ul><ul><li>Candidate : Use rack servers for cheaper and more efficient operations </li></ul></ul>Any sufficiently advanced technology is indistinguishable from magic.  ~Arthur C. Clarke
  88. 88. Tech Scan (2/2) <ul><li>Software as a Service (SaaS): Outsourcing desk report creation to a vendor </li></ul><ul><ul><li>Candidate : Analyze using third party online vendors for contracting clerical jobs </li></ul></ul><ul><li>IP telephony: Unified communications </li></ul><ul><ul><li>Candidate : Integrating the data lines and voice lines for more efficient use of internet </li></ul></ul><ul><li>Virtualization </li></ul><ul><ul><li>Candidate : Virtualization of data centers </li></ul></ul>Any sufficiently advanced technology is indistinguishable from magic.  ~Arthur C. Clarke
  89. 89. Technology Adoption Curve Pioneers Time
  90. 90. <ul><li>LENS 8 </li></ul><ul><li>IDEA SCAN </li></ul>
  91. 91. Idea Scan (1/2)
  92. 92. Idea Scan (2/2)
  93. 93. <ul><li>LENS 9 </li></ul><ul><li>VALUE CHAIN ANALYSIS </li></ul>
  94. 94. Value Chain Support Activities Primary Activities Gross Sales Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing and Sales Services
  95. 95. Candidate Projects <ul><li>Sales and promotion using mobile phone communication </li></ul><ul><li>Digital Signages for branding and revenue generation </li></ul><ul><li>BI tools for better forecasting of sales </li></ul><ul><li>Data mining for market basket analysis </li></ul><ul><li>Pricing strategies supported by forecasting tools </li></ul>
  96. 96. <ul><li>LENS 10 </li></ul><ul><li>CSFS </li></ul>
  97. 97. Lens 10 - CSFs for Carrefour
  98. 98. Phase 3 - IT Audit
  99. 99. <ul><li>PHASE 3 </li></ul><ul><li>IT AUDIT </li></ul>
  100. 100. IT Audit <ul><li>We took an interview of : </li></ul><ul><li>Mr.Jega Saundrarajan </li></ul><ul><li>IT Manager </li></ul><ul><li>Carrefour Singapore </li></ul><ul><li>Email : jega_saundrarajan@carrefour.com </li></ul><ul><li>Phone : 0065 - 62113201 </li></ul><ul><li>We got information about the current state of IT in Carrefour from our interview with Mr. Jega </li></ul><ul><li>From the information received it appeared that currently IT is not used as a strategic tool in Carrefour but widely used for day to day operations </li></ul><ul><li>The total IT spends by Carrefour Singapore is SGD 1.3 million </li></ul>
  101. 101. IT Audit McFarlan model <ul><li>Currently IT is not used for strategic advantage. It is widely used for operations. Hence Carrefour can be placed in the Factory quadrant. </li></ul>
  102. 102. Carrefour – Factory to Strategic movement in McFarlan Model Carrefour needs to move to the strategic quadrant and hence should take up projects to give them competitive advantage
  103. 103. IT Audit – Inventory Management <ul><li>Current Degree of Computerization </li></ul><ul><li>Carrefour uses a software called ‘Pacific 4’ for managing stock levels and inventory management. Stocks are managed by Carrefour stores </li></ul><ul><li>Survival needs </li></ul><ul><li>Stock ordering, issue and receipt should have IT involvement to reduce costs and improve efficiency </li></ul><ul><li>Planned degree of Computerization </li></ul><ul><li>Carrefour may integrate its IT systems with suppliers . </li></ul><ul><li>It may implement Transport Management System </li></ul>
  104. 104. IT Audit – Marketing, Sales, CRM <ul><li>Current Degree of Computerization </li></ul><ul><li>Carrefour uses a software called Microsoft applications for Sales and CRM and Winsor systems for POS </li></ul><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 foot falls and gauging consumer behavior </li></ul>
  105. 105. IT Audit – Internal Business processes <ul><li>Current Degree of Computerization </li></ul><ul><li>Carrefour uses Unix and Calipso applications for managing their internal business processes </li></ul><ul><li>Survival needs </li></ul><ul><li>ERP system either integrated suit 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 suit with seamlessly integrated data flow within all functions of business </li></ul>
  106. 106. Current projects - Critical <ul><li>Projects to manage internal business processes (Eg. ERP) through stand alone Unix and Calipso Applications </li></ul><ul><li>Microsoft CRM applications support, maintenance and enhancements </li></ul><ul><li>POS systems maintenance </li></ul><ul><li>Project for maintainance of Inventory management systems of ‘Pacific 4’ </li></ul>
  107. 107. Non/ Less Critical Projects <ul><li>Migration to Oracle database from currently used local database </li></ul><ul><li>Recruitment management systems </li></ul><ul><li>E-Training module maintenance and support </li></ul>
  108. 108. Phase 4 – Project Consolidation
  109. 109. Project consolidation
  110. 110. Project Consolidation cont…
  111. 111. Project Consolidation cont…
  112. 112. Project Consolidation cont…
  113. 113. Project Consolidation cont…
  114. 114. Project Consolidation cont…
  115. 115. Project Consolidation cont…
  116. 116. Phase 5 - PROJECT FUNDING AND JUSTIFICATION
  117. 117. Project Funding and Justification
  118. 118. Project Funding Decisions <ul><li>Since the customer base comprises of retail customers (B2C), customer convenience, customer satisfaction are key factors for repeat business and customer advocacy to attract new customers. </li></ul><ul><li>Carrefour should fund the high ROI and lower TCO and Risk projects. </li></ul>
  119. 119. Projects Funding Decision <ul><li>Carrefour should fund the following high priority projects first: </li></ul><ul><ul><li>Efficient Inventory Management & Enhanced Supply Chain </li></ul></ul><ul><ul><li>BI and analytics </li></ul></ul><ul><ul><li>Customer convenience & efficient Store management </li></ul></ul><ul><ul><li>E-commerce & Communications </li></ul></ul>
  120. 120. Project Funding Decision <ul><li>Carrefour should fund the following projects after funding high priority projects: </li></ul><ul><ul><li>Knowledge dissemination and exchange </li></ul></ul><ul><ul><li>Infrastructure Management </li></ul></ul><ul><ul><li>Outsourcing of services </li></ul></ul>
  121. 121. <ul><li>IT STRATEGY ROADMAP </li></ul><ul><li>FOR A </li></ul><ul><li>STARTUP RETAIL COMPANY </li></ul>
  122. 122. Road map <ul><li>IT Strategy to be devised in a phased approach </li></ul><ul><li>Phase 1 </li></ul><ul><li>Till the company reaches a certain scale, focus should be on bare minimum IT services like </li></ul><ul><ul><li>Inventory management </li></ul></ul><ul><ul><li>POS </li></ul></ul><ul><ul><li>CRM </li></ul></ul>
  123. 123. Road map <ul><li>Phase 2 </li></ul><ul><ul><li>Online shopping portal for consumers </li></ul></ul><ul><ul><li>ERP implementation to integrate Supply chain, logistics, inventory, point of sales, master data management and other such similar modules to enable seamless flow of data. </li></ul></ul><ul><ul><li>This phase should also include applying IT best practices. </li></ul></ul>
  124. 124. Road map <ul><li>Phase 3 – </li></ul><ul><ul><li>Introducing upcoming technologies after the initial IT infrastructure like open source, RFID, vendor managed inventory software and measuring foot falls. </li></ul></ul><ul><ul><li>This phase also includes Data warehousing, data mining and other BI tools for advanced analysis </li></ul></ul><ul><ul><li>May outsource certain functionalities like call center service and support etc. </li></ul></ul>
  125. 125. References Carrefour’s business strategy (off its own website) http://www.carrefour.com/cdc/group/our-strategy/ http://www.supplychainer.com/50226711/walmart_and_carrefour_in_china_whose_strategy_is_better.php Carrefour’s expansion plans http://www.foodanddrinkeurope.com/Retail/Carrefour-moves-closer-to-customers Sustainability Report http://www.carrefour.com/cdc/responsible-commerce/sustainibility-report/ Best practices http://www.fondation-internationale-carrefour.org/fic/foundation/best-practices/
  126. 126. Carrefour group and its suppliers http://www.carrefour.com/cdc/responsible-commerce/our-social-and-ethical-approach/the-group-and-its-suppliers/ About the retail expansion aimed by Carrefour http://www.highbeam.com/doc/1G1-63581724.html Approach followed by Carrefour http://www.carrefour.com/cdc/responsible-commerce/ Model of delivery of Govt. services online http://www.govtalk.gov.uk/documents/smart_cards_framework_v1-0.rtf Retail IT strategy http://books.google.com.sg/books?id=mu29s06R1GQC&pg=PA271&lpg=PA271&dq=IT+strategy+followed+in+retail+sector&source=web&ots=VtPh0UvxYl&sig=wg1XQJsrpYChAkJQ0-NVs33478Q&hl=en&sa=X&oi=book_result&resnum=5&ct=result#PPA271,M1 References

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