Impact of Retail IT Application on Store Operations
From getting product information with the detail process map link to the final minute courier or postal alert has been enriching experience to consumers in recent years. The strengthen belief of consumer on the IT applications has been a breakthrough in entire retail industry. This has been an outcome of a meticulously designed applications equipped with technological innovation to provide a new level of consumer experience. This has also led to e-retailing reform attracting more investment in technologically driven research and development to enable a super-rich experience to the consumers. As per the report titled “Retail Analytics Market”; published by UnivDatos Market Insights. It has been estimated that in 2018, around 57% of 1300 institutions have adopted artificial intelligence while around 18% were planning to enter the respective arena in 2019. The ability to deliver faster service, increased flexibility, and scalability, improved quality coupled with greater traceability, and increased savings and productivity has enhanced the adoption of analytics in the Retail sector.
Changing Paradigms in Retail Sector
The retailing industry has been witnessing various developments. The changing paradigms in retail sector with the convergence of IT have transformed the whole industry. The reasons that lead to the requirement for Information Technology in Retail Sector are:
- Globalization of Business Operations: The growing globalization has led to rising coverage to overseas markets ensuing in greater than ever demand for worldwide shopping experience. As the industry develops a worldwide approach in its manufacturing, procurement, and promotion operations it needs a superior use of information technology to decrease the time and space boundaries.
- Competition: To achieve the cutthroat advantage by the utilizing of information technology is to lessen operating expenditure through automation and to progress the merchandise or service quality by providing assurance with differentiation.
- Fulfill the Customer Expectation: Information can be shared rapidly and without difficulty from across the globe, and restrictions of linguistic and geographic barriers can be eliminated as individuals exchange ideas and information with each other. To convene these necessities in a quick way has necessitated the requirement for information technology.
- Technological Revolutions: Information technology can quicken up process and bring cost saving profits to the corporation. It is probable to store, convey, process, and allocate information on a single incorporated technology and gather the needs of the customers.
Significance of IT in the Retail Sector
With the rising globalization of retailing, together in context of points-of-sale and their points-of-supply; the information technology (IT) use in the retail sector has improved considerably. The significance of IT in the retailing sector is summarized below.
- Efficient Stocking of Merchandise: The items purchased offer information on products sold in the store; this is the basis of sales analysis and decisions on replacement re-ordering and products planning. If this information is passed on to the company; it can help decrease production time. This helps keep away from situations of stock out helps spot merchandise or products timely markdowns and higher inventory turns.
- Data Collection: The use of technology aids data collection. Data can be composed about customers, their purchases the regularity of their buying and the typical basket size. This data helps the retailer differentiate the consumers who shops at his store often and provide incentives.
- Operational Efficiency: The use of information technology serves as a foundation for integrating the performance of various departments. When a retailer decides to use the control of technology to assist business, the outlay in terms of capital is usually elevated. As the procedure gets automated the time concerned task is condensed.
- Enhance Communication: Communication within the association can be quicker with the usage of software like Lotus Notes. Retail stores can also converse with each other and with the warehouse.
Reasons for Shift from Stores to Online Shopping
According to a recent survey conducted by one of the major consulting firm, only 23% of consumers said they prefer visiting shops to enjoy the shopping experience. Having the most competitive price will not guarantee a sale. The following figure depicts the reasons for consumers to shift from brick-and-mortar stores to online shopping.
Outlook for Upcoming Years
The retail sector has experienced a remarkable change over a period of last few decades. The journey of consumer from Kirana store shopping to e-portal experience has been enriching. The technology has added additional flavor to this experience with a strategic orientation. The innovation in upcoming technologies will make this experience more spicing. The role of consumer and technology will keep dominating in retail sector and companies will require to re-orient their strategies around these factors. Information technologies in retail aim not only to increase the effectiveness of retail establishments in different areas of their operations, but also to improve customer service mainly due to the automation and customization of the offer. Over the years as the consumer demand increased and the retailers geared up to meet this increase, technology evolved rapidly to support this growth. With changing customer demands and expectations rising rapidly, organizations need to be able to quickly respond to capitalize on revenue opportunities.
Author: Tinku Rai
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