Professional Documents
Culture Documents
Computerization in Retail Shops
Computerization in Retail Shops
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A STUDY OF COMPUTERIZATION
FOR SPECIALTY FASHION RETAILERS IN HONG KONG
by
Presented to
In Partial Fulfillment
of the Requirements for the Degree of
MASTER OF BUSINESS ADMINISTRATION
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ABSTRACT
‘
TABLE OF CONTENTS
ABSTRACT
TABLE OF CONTENTS ..
• * • • • • iii
LIST OF FIGURES . . . .
V
ACKNOWLEDGEMENTS • . •
* * * • • • • •
CHAPTER
I. INTRODUCTION •
1
工工.RETAIL INFORMATION SYSTEM ’
3
K e ^ ^ ^ ^ n e n t s of Retail Information • 4
Survey Responses •.
Analysis Techniques • • •
An,《sis of Company Background •• •• •• •• 22
Information
, Review of Current Status of 。,
Computerization • • • • • 23
Assessment of Key Success Factors 25
for Computerization and •
Implementation Priority
''''Retainng '' Advanced Tools in . . . 26
Analysis of Key Factors in ,《
Selecting Advanced Tools • • • • � �
奄 •
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IV
•- , • “ “- . ‘ ‘ . '•••'-
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... VI. INTERPRETATION' OF RESULTS
Current Utilization of 29
Computerized Retail
Information Systems and
Advanced System Tools
Overall Utilization 30
Hardware 32
Application Systems 32
Advanced System Tools 35
Attitude Towards Future 37
Computerization
.. / . -
^ VII. CONCLUSION AND RECOMMENDATION 40
. . .
APPENDICES •
44
BIBLIOGRAPHY . . . . . . . 69
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ACKNOWLEDGMENT
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CHAPTER I
INTRODUCTION
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in retail trade.
Since Hong Kong is a leading business center in the
Far East, application of computers in business -has been
very common. In fact a very high degree of computerization
has already existed in many industries, like Finance,
Banking, Transportation, etc. The Retailing industry would
be another case for computerization because the industry is
characterized *
by high volume of transactions and data that
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FIGURE 1
� Ktitail Distribution
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, Customer history
l-usLomer — ~~ “
Inrormation = I Card
“ & Bil ling
Purchase
Cuiitomer Control & ..
… s Merchandizing
Stock
Purchase Goods position
Order Receiving
Sales v-n
— """ Analysis arid
Forecasting ’
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checkout and impro^/e
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on tne inventory � h es y s t e . for u s e r s :
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Apart _ the a ^ . x n . s t r a t x v e ^^^^^^ 功纟。咖tion
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, includes those
system also incuua
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demand.
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2• Hand-held Terminal
Hand-held terminal is portable, pocket size
computer that usually equips with bar-code scanner
as data capturing device. Hand-held terminal is
most suitable for retailers in stock counting,
stock replenishment order entry and stock checking.
3• Electronic Label
Electronic label are liquid crystal display label
placed on shop shelves that can be used to replace
.the ' conventional paper or plastic label. By
linking up the electronic labelling system to the
price control function of the Retail Information
System, price change can be easily done as new
price can be transmitted to all items on shelf amd
changes are made effective almost immediately. The
flexibility of price change allows retailers to
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4. Smart Card
Smart Card is a kind of customer credit card that
has a built-in microprocessor and memory to keep
several basic information of the card-holder.
Customer services can be improved if these
information are accessible by the retail operation
personnel when dealing with customers. In
addition, other retail services may be implemented
using the concept of Smart Card.
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CHAPTER III
RESEARCH OBJECTIVES
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market.
2. To analyze the users' perceived benefits of
computerization.
3. To identify the major criteria in selection of
computerized system and tools.
4. To assess the prospect of adopting advanced system
tools in retailing management.
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CHAPTER IV
METHODOLOGY
retailing business.
The current publications in retailing management
brought out that new technology is one of the most.
influential factor that affect influenced the development
in retailing. So the research reviewed the role of
computers in the general management and control aspect of
the fashion retailing market. It is not directed to
assess computer application in any specific operation
area.
Since the survey aimed at getting an understanding
of the current status of computerization with specialty
fashion retailers, the writer believed that the most
effective evaluation techniques would be to get information
directly from the major retailers in this market. As a
result, the writer designed a questionnaire to ask specific
questions that were most relevant to the scope of this
study.
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issues :
1. The degree of computerization and the major
application area for computers.
2. The selection of hardware in implementing
computerized information system.
3. The order of priority that the retailers set for
implementing business information system.
4. The key success factors, as perceived and required
by retailers, for computerized information systems.
5. The current utilization and future plan towards
adoption of advanced information tools.
6. The major factors that are most influential to the
selection of advanced information tools for
computerization.
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companies.
Research Limitation
I 香 港 中 文 大 學 因 當 馆 栽 當 I
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Survey Responses
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Analysis Techniques
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CHAPTER VI
INTERPRETATION OF RESULTS
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Overall Utilization
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information quicker.
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plan.
The moderately computerized systems support the
operational aspect of a retailing system and they are also
receiving good attention. However, due to limited system
programming resource, currently these systems are assigned
with lower implementation priorities since resources are
deployed to the core financial and analysis systems that
are more urgent and are currently serving primarily the
senior management of the companies. But their priorities
will be raised when management is aware that greater degree
of automation for retail operation is needed to improve the
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The prioritization of systems area to computerize
reflect the specific emphasis on cost control and market
research that fashion retailers focus on. The seasonality
of fashion merchandise and the ability to keep operating
cost down contribute to the fact that the more able the
fashion retailer in monitoring the inventory level and
control stock costs, the more likely the retailer be able
to stay profitable in the market.
because they
* can help to significantly improve data
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are more $
adapted to use advanced tools for operation
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advanced technology.
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CHAPTER VII
follows :
1. There is a high degree of computerization in
information systems for fashion retailers in Hong
Kong. Cuurently, most retailers have computerized
the accounting, inventory management and sales
analysis functions. Point-of-sales and
merchandizing functions will be the major area to
automate in the future.
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Recommendations
Marketing Orientation
Increasing emphasis on marketing and market
research are crucial in responding to the changes in
environment and consumer behavior. Retailers are required
to respond promptly to consumer demand and increasing
competition by repositioning and focusing on the needs of
the targeted demographic groups through attention to detail
and specializatioru This can be done only with the help of
integrated information systems that track and analyze
details of sales activities.
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APPENDICES
JR.
1. Research Questionnaires 45
2. Analysis of Company Background Information . . 55
3. Number of Application Computerized 56
4. Degree of Computerization with Major 57
Functions
5. Hardware Platform for Computerized Systems • • 58
6. Type of Computer Hardware Being Used 59
7. Key Success Factor for Computerization . . . . 60
8. Implementation Priority for Systems 61
9. Current Utilization of Advanced Tools . . . . 62
10. Type of Advanced Tools Used 63
11. Key Factors for Utilizing Advanced Tools . . . 64
12. Analysis of Computerization by Size of . . . . 65
Retailers
13. Analysis of Current Utilization of 66
Advanced Tools by Sized of Retailers
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APPENDIX I
RESEARCH QUESTIONNAIRES
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SURVEY ON
q[JFSTIQWKAIRE
Prepared by :
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巧 46 ,
;邏
^ ^ ^ THE CHINESE UNIVERSITY OF HONG KONG 香港中文大學
TELEGRAM • SINOVERSITY
TfATIN NT • HONG K O N G TEL.: 0-69S2111 • TELEX • 50301 CUHK HX • 香 港 斯 界 沙 田 . 寬 2 : 零 . 六 九 五 二
FAX • (852 ) 0-6954234
m商管理學院碩士課程‘ 0^2783
13A Programmes 3-7225808
i|culty o f Business Administration ITown centre)
,1生專題研究用II
;iident Research Projects
•? •
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Dear Mr. Yeung,
I
information regarding your organization's computerization is very
important to m y project. Enclosed is a questionnaire which asks a
n u m b e r of questions about the use of computerized information systems
and the application of advanced equipments in your organization. I
would be most grateful if you could kindly complete the questionnaire
and return it to the address on the enclosed envelope b y 28th
January, 1991.
The research project is used only for academic purpose
and all information obtained will be kept in strict confidence. As
an appreciation to your valuable support to this research, copies of
the findings for this survey can be made available for your
reference. If you would like to receive the copy, please indicate
accordingly at the end of the questionnaire.
Thank you in advance for your valuable input.
Very truly yours,
. 11 I ••一 .
C H A N Kam-hung, A n d y
3rd-year student
� M B A Programme, C U H K
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A.l Does your ccnpany currently conputerize any of the following business
functions and operations ?
!
Degree of Couterization Hot
Higfa Moderate Hone Applicable
4. WfeLT^housing and 5 4 3 2 1 0
distribution control
j 6. Production managaoent 5 4 3 2 1 0
i and scheduling
7. Point-of-sales/retail 5 4 3 2 1 0
j shop operation control
I
8. Stock-taking and 5 4 3 2 1 0
shrinkage nanagenent
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4. Warehousing and 5 4 3 2 1 0
distribution control
5. Inventory managcaent 5 4 3 2 1 0
and cost accounting
6. Production BanagoKsnt 5 4 3 2 1 0
and scheduling
7• Point-of-sales/retail 5 4 3 2 1 0
shop operation control
8. Stock-taking and 5 4 3 2 1 0
shrinkage nMagooent
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A.4 In your opinion, how important are the following factors affecting the ‘
successfIllness of computerized systems to your business ?
Degree of inportance
Not No
’.� High Moderate Tipnrt.‘ Opinion
2. Improve profitability 5 4 3 2 1 0
3. Improve customer 5 4 3 2 1 0
service
4. Strengthen internal 5 4 3 2 1 0
and administrative
control
6. Improve productivity of 5 4 3 2 1 0
operation staff
7. Standardization of 5 4 3 2 1 0
operation procedures
8. Differentiate your 5 4 3 2 1 0
conxFany from cooipetitors
as technology leader
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A.5 Does your company currently use any of the following advanced
txtols/systess for retail operation ?
Currently Used
“ No
2. Electronic Point-of-sales or 2 1
in-store computer
I 3. Hand-held terminal 2 1
I 4. Electronic labelling 2 1
i
A.6 If your ccnpany currently does not use these systeas, what will be your
plan in the future ?
No Planoed
Plan P l i ™ ^ Application
2. Electronic Point-of-sales or 2 1
in-store computer
3. Hand-held terminal 2 1
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A.7 In your opinion, how ijnportant are the following factors influence your ”
decision to utilize advanced tools/system to your business ?
Degree of iaportance
Not No
一 High Moderate LiPort« (X>inion
1. Availability of proven 5 4 3 2 1 0
hardware and software
3. Existence of justifiable 5 4 3 2 1 0
business applications
4. Laplementation cost, 5 4 3 2 1 0
both cxie-time and
recurring
5. Availability of technical 5 4 3 2 1 - 0
resource to develop and
- '
support the system
6. Availability of skilled 5 4 3 2 1 0
operation personnel to
operate the system
8. Customer acceptance to 5 4 3 2 1 0
�new/advancedtechnology
9. Management acceptance 5 4 3 2 1 0
to new/advanced technology
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a. Up to 10
b. 11 to 20
c. 21 to 50
d. more than 50
a. Up to 100
b. 101 to 200
c. 201 to 500
d. more than 500
B.5 What is the nunber of system and progranaing staff in your inhouse data
procesaing/nanageinent information services deportaent ?
a. 1 to 5
b. 6 to 10
c. 11 to 20
d. 21 to 50
e. more than 50
B.6 When will you establish an inhouse department to support your
computerization plan ?
a. Within 1 year
b. Between 1 to 2 years
c. No definite tijne-table
d. Consider NOT to establish such a department in the future
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a. Less than IX
b. Between 1 to 5%
c. More than 5 %
d. No definite budget _
B.8 Are there anything that you want to discuss about your experience in
computerizing your retailing business information systems ?
*本 THAhK YOU
本 本 本 本 本 本 本 本 本 本 本 本 本 本 拿 本 本 本
! If you want to receive a copy of the results of the survey, please leave
j your c o r r e s p o n d e n c e address at the folloi^ing (or alternatively, enclose
your business card):
I
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j Company : .
Nanie :
Position: — —
Address : :
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APPENDIX 2
Distribution
a. Up to 10 7 35.0
b. 11 to 20 4 20.0
c. 21 to 50 8 40.0
d. More than 50 1 5.0
a. Yes 19 90.5
b. No 2 9.5
a. 1 to 5 12 63.1
b. 6 to 10 4 21.1
c. 11 to 20 3 15.8
d. 21 to 50 -
e. BO re than 50 - ~
5. Budget for computerization in ter«s of
revenue :
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APPENDIX 3
Distribution
^ Count
- 21
9
148
21
二 7.05
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APPENDIX 4
8. Stock-taking 4 6 6 2 3 - 3.3 5
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58
APPENDIX 5
Coaputerized Systems _5 4 3 2 1 Q_
6. Production Manageaent 5 4 - 2 - 17
and Scheduling
7. Point-of-sales and 2 3 2 4 5 5
Shop Operation Control
8. Stock-taking 2 10 3 3 - 3
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APPENDIX 6
Distribution
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APPENDIX 8
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4. Warehousing and ? 10 - 2 6 5
Distribution Control 一 二"13^^^^-^^^^5^^^^2 10 Z.b a
5. Inventory Management o ti 11 - 9 4 4
a«d Cost Accounting j^^^^'"-\___;;___\___L?
6. Production Management � ” 1 Q -
and Scheduling J____“:___\____"__\_____"____:___L___
7. Point-of-sales and o o n g 1
Shop Operation Control - 一 ^4^^^^4^^^-^^^^2^^^^-^^^»_____
8. Stock-taking and - 19 0 0 -
Shrinkage Manageaent 1 - 1 " ~ ~ ;
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APPENDIX 9 .
Currently Plan
Using _ t o use
2. EPOS or in-store PC 14 7 5 2
3. Handheld terminal 6 13 5 9
4. Electronic labelling 5 13 3 11
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APPENDIX 10
Currently Plan
Using to use
Distribution Diatibution
Type of Advanced Tools Used Count Count JL
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APPENDIX 11
3. Existence of justifiable
business applications 5 7 4 1 3 1 3.3 9
6. Availability of skilled
operating personnel 4 8 7 1 1 - 3.6 7
8. CustoBer acceptance to
advanced technology 1 2 3 4 8 3 1 . 8 12
9. Management acceptance to
advanced technology 9 7 2 2 - 1 4 . 0 6
‘ ~ 65 -
APPENDIX 12
A N A L Y S I S OF C O M P U T E R I Z A T I O N BY SIZE OF R E T A I L E R S
“ I
Number of Applications 本 〈:^qn^ZO 21-50 Qver^ \
r.riapiiterized — . ~— — — 丨
‘ 1 2 2
1. Any 6 of the 11 systems —
, 一 1 3 -
3. Any R o f J ^ l l systeas '
3 一
4. Any 9 of the 11 systems 1 ___: -4-
mm
5. A n v ^ Of the 11 systeas : I
二 ” � fA 一 1)
. ‘ . • ...- . . . . . . -
, - .-... — •
“ 66
- • • “ . . - ‘ .... • _ •
APPENDIX 13
.^ - - • • • • • -
、
»
«
• • • •
• • -
‘ 67
APPENDIX 14
、
%
. .., • • .•.,...—— ..
‘. ‘‘ . • ‘ • -- -
- - _
” :.: • 6 8
APPENDIX 15
ANALYSIS OF APPLICATION STATUS AND PRIORITY
Degree of Implementation
CoBDuterization Priority
Ma.ior Business Systens Rank Mean E^k
6. Stock-taking 5 3.3 -
7. Point-of-saies 6 3.2 1
8. Custoner Information 7 8
•v
%
‘ . “ ‘ - 6 9 : “
BIBLIOGRAPHY
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