IT

IN
ES
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AL GROUP -10
CH  Sumit Roy (06)
&
ES  Minhaz Hamdule (09)
SU
IS  Kashish Arora (34)
 Akansha (35)
 Anamika Singh (40)
 Tarun Dutt (51)
 INDIAN RETAIL SECTOR ON FAST - TRACK

• India being known as the most aggressive developing country

still faces the problem of unemployment & poverty which is its
main concern.
• However with the growth of retail industry this seem to be
opening doors for the unemployed section of the population as
well as contribute to India's GDP.
• With retail market blooming across India and the metro cities
we now have access to the malls right at the convenient locations
in every city.
• Indian retail market which is the 5th largest retail destination
globally is estimated to grow from US $ 330 Billion in 2007 – to
US $ 427 Billion in 2010.
 RETAILING IS A HIGH TECH INDUSTRY

- Selling Merchandise over the Internet

- Using Internet to manage supply chains

- Analyze POS data to tailor assortments to stores

- Computer systems for merchandise planning

INCREASED ROLE OF IT IN GLOBAL RETAIL INDUSTRY

• With increase in globalization of retailers both in terms of their

point of sale as well as their point of supply.
• The information technology spent in the retail sector has increased
considerably & plays an important role in managing the complexity
of retail operations.
• IT systems are the heart of the retail operations & hence play and
important role in alleviating pressure points in retail sector.
• This is particularly true for IT systems that can significantly
influence COGS in retail sector. Eg : advanced planning &
scheduling systems, inventory management & merchandizing
systems.
INCREASED ROLE OF IT IN GLOBAL RETAIL
INDUSTRY(CONTD..)
• Oracle offers retail-specific functionality, enabling retail
organizations to focus on
• Improving information integrity for the extended retail
enterprise
• Enabling an insight-driven enterprise
• Collaborating with all stake-holders for greater efficiency
• Empowering workforce excellence
• Driving an excellent customer shopping experience.
 ROLE OF IT IN SUPPLY CHAIN
• One of the key imperatives facing retailers in India is to have a
robust and scalable supply chain that will facilitate rapid
growth.
• One measure of efficient operations is the inventory turns ratio.
Many Indian retailers surveyed by KPMG have inventory turns
levels between 4 and 10.
• Another measure of efficient supply chain management is stock
availability on the retail shelves.
• IT sees to it that the customers have a smooth and easy
experience of shopping online for the goods that they want.
Because today customer satisfaction is a key to any business
besides profit.
ERP IN RETAIL
 DEFINITION
Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
“a business strategy and set of industry-domain-specific
applications that build customer and shareholder
communities value network system by enabling and
optimising enterprise and inter-enterprise collaborative
operational and financial processes”
 ERP BENEFITS
• Cross-functional process orientation with high visibility
• Enables exchange of information throughout the supply chain in real time
• Reduces operations costs & cycle times
• Facilitates bottleneck identification and management
• Improved inventory management, inventory cost reduction, customer
service levels, material shortages and reduced late deliveries
• Standardized and normalized data and data formats
• Enhanced integration across the supply chain and business units
• Enhanced empowerment of employees through increased information
sharing
• Improved system-wide accountability and visibility
 & EP
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PROCESS
1. Definition and Analysis
Hold discussions with various functional personnel to establish the actual number of
systems operating at client site, what they are used for, why and how often
Produce the Project Scoping Document outlining current situation, proposed
solution and budgeted time

Challenge : REQUISITE EXPERTISE - No two clients are the same

PROCESS
2. Design
Prepare various functional reports - specifies current scenario and wish list
Prepare Design document which specifies how the system is going to work
Prepare test scripts to be followed on system testing
Map out the interface paths to various modules

Challenge : INFORMATION SHARING - Availability of staff

PROCESS
3. Build
Configure system as per set up document specifications i.e. transfer conceptual
model into reality
Test system to verify accuracy (preliminary tests)

Challenge : TECHNICAL ENVIRONMENT - System functionality

PROCESS
4. Transition
Train users on their specific areas
Assist in test data compilation and system testing by users
Finalise the Live system and captured opening balances

Challenge : USER RESISTANCE Understanding and acceptance

data preparation
PROCESS
5. Production
Official hand holding
Effectiveness assessment
Business and Technical Direction recommendations
RFID
 RFID IN THE RETAIL INDUSTRY
• Imagine a shopping cart equipped with a scanner and a touch-
screen computer that acts as a virtual personal shopper.
• As you scan items and put them in your cart, the computer
offers information about each product and suggests
complementary items.
• The computer keeps a list of the items in your cart with a
running total so you know exactly how much you're spending.
• When finished shopping, you head to a self-checkout stand or to
a cashier.
• Because your items are already totaled and bagged,
• All you have to do is pay.
RFID FUNCTIONALITY
 ROLE OF RFID
• RFID is helping retailers around the world improve customer
satisfaction and increase sales.
• The technology is transforming the retail industry by offering
retailers real-time visibility into inventory and product
movement to improve store productivity and loss prevention.
• Many of the world's largest retailers have mandated RFID
tagging.
• This move affects more than 200,000 manufacturers and
suppliers, driving the worldwide market for hardware and
software to support RFID
INTEGRATED FRAMEWORK FOR RFID IMPLEMENTATION
MAJOR CATEGORIES OF CHALLENGES
• privacy issues
• lack of standards
• high cost
• data integration issues
• employee reluctance to change
• reliability issues of the technology
• business process redesign required
 OTHER CHALLENGES IN RFID IMPLICATIONS
• EXPONENTIAL INCREASES IN DATA VOLUME
• FILTERING OUT UNWANTED DATA
• INTEGRATION WITH EXISTING SYSTEMS
• FINDING THE BUSINESS VALUE IN THE DATA
• DATA SHARING AMONG DIVERSE USERS AND
ORGANIZATIONS
 IS
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CHALLENGES IN MIS
There are basically four ethical issues have been
proposed with the acronym PAPA.
P->PRIVACY
A->ACCURACY
P->PROPERTY
A->ACCESSIBILITY
•MIS requires a wide variety of knowledge areas
including accounting, finance, marketing and manufacturing.
Therefore having both technical and practical experience in
these subjects is very useful.
• Both technology and technology-related products are
emerging at very high pace. Consequently no one possibly be
proficient in all new technologies and compromises have to be
taken.
• Many terms used in MIS are inaccurate and controversial
because of high pace of new hardware, software and
communication technology.
• MIS problems are difficult to define. Some times a situation may be
seen as a problem but in fact it may be a symbol only.
• Not like other subjects like Physics, Chemistry that exists probably
from very beginning, MIS has only been recognized as a separate field
of study in 1960s.
• A large number of important areas of MIS are still not touched as
said by many professionals.
• There is a lack of sympathetic relationship between MIS personnel
and users and management and MIS personnel because employees are
more loyal to their profession rather than needs of the organizations.
• No universal standards have been established regarding how much
to spend on MIS.
 E S
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E-POS
Self-contained, computerized equipment that
performs all tasks of a store checkout counter. It
allows payments by bank or credit cards,
verifies transactions, provides sales reports, 
coordinates inventory data, and performs several
other services normally provided by employees.
CHALLENGES IN EPOS
• Disconnected enterprise systems create data redundancy, errors and can lead to costly
business inefficiencies
• Poor coordination between enterprise systems leads to flawed production plans,
increased supply chain pressure and poor customer service
 C E
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THE 5 CHALLENGES OF E-COMMERCE
1. Your potential customers DO NOT trust your site 
2. Your products or services WILL NOT sell themselves 
3. The urge to purchase DOES NOT last long 
4. Customers DO NOT favor stores which are too standard
5. Your small e-commerce site WILL NOT go unnoticed by hackers 
E-COMMERCE: CHALLENGES

Trusting others electronically

 E-Commerce infrastructure

Security threats – the real threats and the

perceptions
Network connectivity and availability issues
 Better architecture and planning
E-COMMERCE: CHALLENGES
Trusting others electronically
 Authentication
 Handling of private information
 Message integrity
 Digital signatures and non-repudiation
 Access to timely information
E-COMMERCE: CHALLENGES
TRUSTING OTHERS
Trusting the medium
 Am I connected to the correct web site?
 Is the right person using the other computer?
 Did the appropriate party send the last email?
 Did the last message get there in time, correctly?

Public-Key Infrastructure (PKI)

 Distribute key pairs to all interested entities
 Certify public keys in a “trusted” fashion
 The Certificate Authority
 Secure protocols between entities
 Digital Signatures, trusted records and non-repudiation
E-COMMERCE: CHALLENGES
SECURITY THREATS
Authentication problems
 Impersonation attacks

Privacy problems
 Hacking and similar attacks

Integrity problems

Repudiation problems
How to communicate securely:
 SSL – “the web security protocols”

 IPSEC – “the IP layer security protocol”

 SMIME – “the email security protocol”

 SET – “credit card transaction security protocol”

THANK YOU