Role of IT in Retail Sector

With the increasing globalization of

retailing, both in terms of their points-ofsale 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.

 To increase the companys 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
technologys role is one of an enabler.
Essentially, information technology can
speed up processes and deliver cost
saving benefits to the company.

 Customer data
Many retailers struggle with information
overload because theyre required to
collect and sift through mass amounts of
data, then convert it into useful information
in a customer-centric 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.

 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.

 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

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

 User Interface
Inventory
Reports
Invoicing
Receivables
Accounts Payable
Credit Card Payments
8

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

Three Types
Dot Matrix
Thermal
InkJet

Link
Separate unit
Integrated with other device

10

 LED
CCD
Laser

Fixed
Attached
Portable
11

 Replaces the Retail Terminal

Uses software to perform functions
Usually connects to keyboard and barcode scanner

12

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
13

Track 1

Track 2

Normally encodes the

cardholders name, card
number and card expire
date.

Also contains the

cardholders card number
and expire date. This
provides data redundancy
on the card.

14

A POS keyboard more closely resembles a cash

register key layout and usually has programmable
keys. Some have integrated card swipes.

15

Portable data collection

Inventory
Audits
Remote data entry
Restaurants and lounges
Lumber yards
Remote inventory

Wireless
Docking station
Cable connected
16

 Serial Port I/F to your

PC
POS Calculates total
Desktop units / Built-in
units

17

 Magnetic ink character

recognition (MICR)
Requires POS Software support
Requires bank / online
authorization service

18

 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

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

 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.

About to Fly

On Air

Conclusion
Engaging Your Customers
Integrated multichannel retail capabilities, strategies and management solutions are poised
to have significant impact on the industry, as more retailers move to make omnichannel a
reality. With consumers having increased options for how and when they shop, retailers
need to deliver a seamless customer experience across all their channels. Optimizing and
integrating their shopping channels as part of a single strategy for driving compelling
customer experiences has become a must.

Engaging Your Employees

To help improve operational efficiencies and productivity, we are also seeing increased
interest from our retail customers in cloud computing solutions like Microsoft Office 365
and SharePoint Online. With the continued tight economy, the cloud provides cost-effective
solutions for retailers to run their business more effectively by optimizing and streamlining
operations. It also helps deliver modern productivity tools to deskless store employees.

Knowing and Serving Your Customers Better

Predictive analytics and big data will be another technology focus area in 2013. In order to
remain competitive with a growing variety of shopping alternatives, retailers must seek
new ways to deliver the most value, revenue and loyalty.