Retial MIS

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Presented By

Dibyendu Roy (MBA_2011_006)

Raman K Bhimra (MBA_2011_017)

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What is MIS

Management Information Systems (MIS) is a system consisting ofpeople,

machines, procedures, data bases and data models, as its components.

The system gathers data from Internal and External sources of an

organization; processes it and supplies Management Information to

assist managers in the process in decision making. Thus it is safe to

conclude that an information system is "a system consisting of the

network of all communication channels used within an organization".

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Advantages of using MIS

Investing in information systems can pay off for a company in many

ways.

It can support a core competency

Enhance distribution channel management.

Builds brand equity.

IT investment can boost production processes

Information systems allow company flexibility in its

output level.

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TYPES OF MIS AND USES

Transaction Processing

System

Management Information

System

Decision Support System

Executive Support System

Office Automation System

Business Expert System

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Roles of MIS in Business

THE PERFORMANCE MONITORING ROLE

THE FUNCTIONAL SUPPORT ROLE

THE DECISION SUPPORT ROLE

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Applications of IT in Retailing

Automating Processes: Electronic Point of Sales (EPOS), Inventory Planning

and Ordering

Collecting Data About Customers: Purchasing patterns of customers,

segmentation, personalization, customization of offers, loyalty programs,

store design and product placements

Feedback on Marketing Decisions: EPOS data to study effects of promotions,

prices, new products and packaging changes

Communications: With suppliers, customers, as well as internal

Tools to Plan the Business: Software to plan, budget, forecast. Choose bestlocations (GIS)

Adding Value to Retail Transactions: IT-assisted transactions (ATMs) may be

preferred by some customers, self-scanning, in-store kiosks for product and

info. search.

Technologically-enabled Shopping: Internet shopping

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Benefits of IT in Retailing

Cost and Productivity Benefits

Efficiency of time/transactionspeed increases

Reduced queuing times

Operating cost reductions

Increased accuracy of all aspectsof the sales transaction

Improved inventorymanagement

Reductions in stock outs andstock holdings

Marketing Benefits

Improved data-effectiveness ofpromotions, forecast of sales

Ability to incorporate fasterresponses to changing marketconditions

Consumer benefits from

operational efficiencies e.g.shorter queues

Can lead to building of loyaltyschemes

Additional selling space coz ofreduced stockholdings

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A Retail IT

System

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Current Trends in MIS implementation in

Retail Sector

Electronic Point-of-Sale Systems (EPOS)

Electronic Funds Transfer at Point of Sale (EFTPOS)

The Universal Product Code (UPC) or Barcode

RFID (Radio Frequency Identification Tags): Wireless barcodes thatprovide wireless communication b/w objects & readers; uses tagsthat can store data; tracks products/equipment. in real time w/ocontact or line of sight

Electronic data Interchange (EDI) :: With EDI, retailers and suppliersregularly exchange information through their computers with regardto inventory levels, delivery times, unit sales etc of particular items.Both parties enhance their decision-making capabilities, bettercontrol inventory and are more responsive to demand.

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The Retail MIS Buzz-word

Quick-Response (QR) Replenishment Systems

When EPOS are combined with EDI, retailers are in effect adopting

just-in-time or quick response (QR) replenishment methods.

Reduces stock outs and inventory levels, hence improving service to

customers and reducing costs for retailers.

CPFR( Collaboration, Planning, Forecasting and Replenishment)

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Types of Technology Used in Retailing-In-store(Illustrative)

Electronic Point of Sales (EPOS)

Interactive Kiosks

Self-Scanning and Self-Checkout system

Virtual Display Cases

Body Scanning

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Data-Base in Retail Information System (RIS)

Customer data bases-

Purchase frequency, items bought, avg. purchase, demographics, payment

methods etc.

Vendor data bases-

total retailer purchases per period, total sales to customer per period, most

popular items, retailer profit margins, avg. delivery time and service quality

Product Category Data Bases-

Total category sales per period, retailer profit margins, percentage of items

discounted etc.

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Retail in India Indian Retail sector is the fifth largest global retail destination.

India retail market is dominated by the unorganized sector.

The top five companies in retail hold a combined market share of less than 2%.

The Indian retail market has been ranked by AT Kearney's eighth annual Global

Retail Development Index (GRDI), in 2009 as the most attractive emerging market

for investment in the retail sector.

Currently the share of retail trade in India's GDP is around 12 per cent, and is

estimated to reach 22 per cent by 2010.

According to Government of India estimate the retail sector is likely to grow to a

value of` 2,00,000 crores (US$45 billion) and could yield 10 to 15 million retail jobsin the coming five years; currently this industry employs 8% of the working

population.

India continues to be among the most attractive countries for global retailers.

According to the Department of Industrial Policy and Promotion, approximately

US$ 47.43 million was the amount of Foreign Direct Investment (FDI) inflow as on

September 2009, in single-brand retail trading.

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Retail in Madhya Pradesh

Retail sector in MP has got a big boom in top four district of the

states. Namely

Bhopal

Gwalior

Indore

Jabalpur

(Details in the project report word document)

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Retail in Gwalior

Gwalior, with its rich heritage is a city of importance in state MP. The city

occupies a strategic location in the Gird region ofIndia. The city is 313 Kmaway from the capital Delhi, hence enjoys a great deal of modern facilities.

The city, though a tier 2 city of India, has equipped with most of the trendy

amenities and so is the retail sector boom. The retail sector here is rapidly

growing and ever developing industry, trying to bridge the gaps between the

retail culture of developed and developing cities. The city is blessed with highpotential growth for retail industry and is attracting all the major retail players

with a view to make profit along with returning the better life style to the city

dwellers.
http://en.wikipedia.org/wiki/Girdhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Gird

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Case study Reliance Fresh

Reliance Fresh

Tools/ Process Remarks

P.O.S software is used Identify all the need for effective management of store

Theft control, Customer ease and billing ease

Centralized information sharing The Reliance fresh used the centralized system for each region . All the

discount or new product information managed by the central office of each

region.

Electronic mail For any type information sharing.

Bar code reader The bar code reader used for identifying the price or discount information.

Reliance LAN network Reliance fresh use its own network for connecting the all retail canter.

Camera Used for surveillance the retail store.

Atomised Ware House system Used the automatic system for identifying the shortage of products, ensure

system generated alert when Thrash hold limit go below the re-Order Point.

Confirm the availability of material Shortage cost.

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Case Analysis Reliance Fresh

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Case Analysis Reliance FreshIssues ::

No attachment / affiliation with the company The employees of Reliance fresh hardly be able to attach themselves with the brand of

the company and cant be able to deliver at per the expected level

Improper Inventory Management, under utilization of resource, huge wastage of products.

Unavailability of the trendy packs (small packs) and hot running products many a times customers looking for a trial pack or weekly

pack cant get their desired products.

No/ less Knowledge management employees are hardly aware of the current trends in the markets. They are unable to answer the

questions of the customersNo Decision making power The employees are not given any power to make even operational decisions

Probable Improvements ::

S/w to be updated to have better inventory management, proper utilization of resources, and to track the wastage and minimize them

Trainings and Tutorials for the employees to make them aware of the current market trends and enable them to answer customer queries

A Proper orientation from reliance side so that they feel the affiliation and attachment with the company and can perform up-to the level

of brand value.Provision for Incentive in the form of reliance Network / communication products like net-connect or mobile to boost the employees

motivation.

Regular collection of Customer feedback to improve the service quality. These feedback can be online to save paper, money and time.

Introduction of Customer demand form to find out what products customer demanded and couldnt able to find them in the store to

track the market trends and change accordingly.

Implementation and regular monitoring from reliance company side to improve motivation level and in store quality.

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Case study Club Fox

Club Fox


WizApp software is used Used For online Billing of the product.

cost of the software 30 -40 thousand per month


Bar code reader The bar code reader used for identifying the price or discount information.

Selling Approach No bargaining issue, fixed price of product.

Camera Used for surveillance the store.

Atomised Stock Analysis Used the automatic system for identifying the old stock and according to that the

central office initiate the discount offer.

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Case Analysis Club Fox

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Case Analysis Club Fox

Issues ::

No demand forecasting from the company side. Leads to lesser sales and bad impression for the shop

No promotion activities for the products available resulting in lesser sales even after having good quality

products.

No proper training of employees regarding customer persuasion and in store presentation, which shows the

unprofessionalism of the store.

No Performance management tool to determine and improve employee performances


Implementation of Demand forecasting tool for accurate forecasting about the quality and type of the product

in demand.Implementation of a low cost ERP tool to better utilize the organizational resources

Active Promotion activities through local cable channels, internet (just dial etc) and by sponsoring various

institutional fests.

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Case study LG Retail

LG Retail


SOMS Used For online Billing of the product.

Network B.S.N.L connection is used .


Electronic payment Used the Card Swap machine of HDFC Bank .

Online Customer Service Online Feedback collection from the customer.

Camera Used for surveillance the store.

Atomised inventory management Used the automatic system for identifying the old stock and according to that

the central office initiate the discount offer.

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Case Analysis LG Retail
http://www.google.co.in/imgres?q=er+diagram+of+retail+stores&hl=en&biw=1366&bih=620&tbm=isch&tbnid=Y9JJaMzt5WwCOM:&imgrefurl=http://msdn.microsoft.com/en-us/library/aa905316.aspx&docid=GiYP4znfayNGOM&imgurl=http://i.msdn.microsoft.com/dynimg/IC35715.gif&w=450&h=296&ei=q6mNT9uhIYTnrAfat7WyCQ&zoom=1&iact=hc&vpx=774&vpy=153&dur=3653&hovh=182&hovw=277&tx=67&ty=103&sig=114473612057741901100&page=1&tbnh=114&tbnw=173&start=0&ndsp=19&ved=1t:429,r:4,s:0,i:73

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Case Analysis LG Retail

Issues ::

Very less sells as the presence of only the high end products like LCD, LEDs in the showroom

No discounts and sales promotions keeping in view the disposable income of Gwalior residents.

No other attraction for customers in form of royalty bonus, privilege customers facilities. Etc which even

affects the sales figure adversely.Its Only just a brand presence of LG in the City

Should have a proper Performance management tool that shows the efforts of employees to build and retain

market shares and salaries should be linked with that performance.


Should start the Discounts schemes at the time of occasions etc.Should come up with new offers and various combi-packs to reflect the need of the city dwellers

Proper forecasting of the demands and expenditure capability of the Gwalior citizens

Start to build market share by promoting the shop, associating with various events and letting people know

that the store has started to keep all trendy and popular items

Effective Pricing strategy, and product choice strategy to profitably survive in this tier-2 city.

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Conclusion

Learned the use of the MIS system and its ability to

contribute to strategic management

Learned how MIS can create a competitive advantage.

Understood the use of MIS system to support entire

value chain

Also became aware of the fact that all the success depents on

the ability and willingness of employees to adapt these

changes

Retial MIS

Documents

Transcript of Retial MIS