Service Management body: KK supermart

Background:
KK SUPER MART is a flagship business of the group. It was established in 2001 by DatoDr
KK Chai who perceived that retailing is a necessity for a livelihood then (KKgroup.my, 2015). In
addition, ten years after its establishment, the company had 64 convenience chain stores by the
first quarter of 2011.
The KK super mart operates 365 days a year and 24 hours a day especially in Kuala Lumpur,
Valley as well as in Melaka and Kuching. The main objective of this company is to becoming a
household name throughout Malaysia and beyond the shores. The KK super mart operates every
day and every hour to make sure that its consumers are satisfied and happy of getting served at
any time. However, the company is located in populated estates and high traffic areas and offers
competitive prices as a result. Every KK store is stocked with over 9000 products including KK
proprietary brand products (kkgroup.my, 2015).

Source:

Recommended technology model

Computer systems are utilized in many types of modem, in large hypermarkets, from stock
control to temperature conservation in fridges and freezers. In addition, in KK super mart, many
technology systems are being used to improve sales and customer services such as computers,
scanners, smart card readers for payment and so on (kkgroup.my, 2015).
Furthermore, in many businesses perceptions, the first focus of technology innovation is their
online presence. Regardless the evolution of online shopping, the physical one has still an
important place in Malaysia shopping system. However, there are several ways of improving
sales and customer service in the KK super mart (kkgroup, 2015). As a result, the recommended
technology is the mobile point of sale device.
A mobile point of sale device is a system used in retailing shops to accelerate the shopping
process by decreasing the queues to buyers. As customers need to be satisfied in terms of the
products and the services delivered by a shop, there must be a way to rapidly respond to their
complaints. In the conventional business model, customers walk around the shop looking for
thinks to purchase and also take them to the checkout counter to pay.
However, that model is getting metamorphosed rapidly due to the invention of tablets and smart
phones. These tablets and smart phones allow the shop workers to take the checkout counter to
the customers, and with a good point of sale (POS) software and a simple plug-in scanner, a hand
held device can become a mobile checkout. This insinuate that you can fix your store easily
which is really attraction instead of decorating the checkout counter (startups.co.uk, 2015).
In the standard retail business model, people wander around the shop to get what they want and
take them to the counter to pay. However, there are many advantages by using this technology
model.
Increase your sales: the staff will not need to wait for the buyers come to them they can get
close to them anywhere in the store and help them making their purchasing decision.
Decreases the queue: people dont like to queue up, they want t get served at as soon as they
get what they want. Thus, this system enables the customers satisfaction within a glance.
Gain and keep the trust of customers with secure systems: certain customers might doubt
about the reliability of the system since they will be asked of their credit card number and

many other information. With a good POS software with a simple way of use, customers will
gain the trust a stay loyal
It simplifies the inventory management: business retailers know how difficult the inventory
management is, as a result this tool enables to monitor the stock easily.
Keep your customers happy and save money: with a good customer relationship
management system and a very good way of rewarding, the POS software can save money,
time and keep customer delighted (xero accounting software, 2015).
Therefore, the mobile point of sale device can lead the KK super mart to satisfy its customers in
a very short period of time instead of queuing up for half an hour just for one cane.

Implication of the recommended model Mobile point of sales (MPOS) on consumers:

One billion people out of the seven billion people on earth have smartphones or tablets. In
addition, data proves that many clients rely on mobile technology to help them to make easy
purchases. Thus, they evaluate the information of the products and service as well as the
transactions at the point of sale. Furthermore, retailers and others firms have to make their
business more mobile-friendly since it helps to improve efficiencies, increase customers
satisfaction, decrease cost and generate more revenue (Mobile-solutions.ingenico.com, 2015).
Nowadays, smartphones have become the main tool for customers to get information about the
products and new way to interact with the products. In addition, the mobile POS evolution
undoubtedly changes the way consumers interact with their products. The use of new devices,
the proliferation of sensors, the implication of data which include the product tracking and
purchasing system will definitely impact customers experience in both online purchase and instore environment.

Therefore the mobile POS have impacts on consumers as it helps to understand how the buyers
engage to with in-store environment, engaging with customers throughout the shopping process,

gratifying customers with creative loyalty reward programs as well as encouraging more
customer store visits (Scott Ellison, 2013).
As a result, consumers feel better while shopping wherever they would like to, instead of
queuing up in a shop. The mobile POS will obviously help the KK super mart to handle
customers dissatisfaction while waiting for their turned to get served. Customers want to get
satisfied as soon as possible, thus, they said that the Mobile point of sale (MPOS) has the
capacity to reduce the lines in the store and get staff from behind the cash register (Essany M.,
2013).

Managerial issues associated with the adoption of technology.

Information technology (IT) adoption in firms has been widely researched in the information
system field. In addition, using information technology has become the biggest objective for
companies in the last few decades. However, technologys adoption always comes with its issues
and difficulties towards organizations. Therefore, there are several managerial issues associated
with the adoption of IT (Syed Arshad Raza, 2008).

Economic factors
It is important to notice that the economic issue has a vital influence on the use of
technology. According to Odedra & Madon (1998), there are two economic aspects to be
considered in technology acquisition: fund for initial investment and return on investment.
Many companies cant afford new technologies due to their financial instabilities. In under
developed countries, the available budget is not sufficient to acquire expensive technology.

Cultural factors
Culture is one of the main elements that influence an organizations management from adopting
technology. When culture is a key element in a workplace, it increases moral and improves team

work which leads to more output. As different cultures have different behaviors, attitude and
beliefs, as a result by taking a look at Malaysian culture, which has Malaysian, Indian and
Chinese three cultures are in the game. It would then be delicate for an organization which is
trying to implement a system in a mixed place.
Social factor
Social factor is a barrier for a firm to adopt new technologies. In addition, this is an era where
everything has been involved in technology. However, the taste, the habits and value of any
company do not allow some things to be changed, therefore the management has to think
carefully before making an adoption (Factors affecting adoption of information technology,
n,d).
Reliability
Everything has its ups and downs. However, it is very difficult for an organization to be
committed into investing in a new technology without being sure that the technology can
help them achieve their goals.
A part from the illustrated managerial issues associated with adoption of technology, there are
many more such as: time for training, resistance to learning new technology, cost, user
acceptance, performance, support for innovation, time to make changes and many more
(Treumann, 2015).
As a result, its a delicate problem of deciding whether to adopt new technologies in the KK
super mart or not, since it has few elements to be taken into account before deciding.

Challenges of adopting technology in retail trade

Technology has supported business activities from the beginning stage. In addition, it has
facilitated things and improved the performances of staff by keeping them on the right track.
However, its been a big challenge to set the correct inventory level for each product. Retail

companies strive to improve their effectiveness in using information and business knowledge
that can be gained from information technology (IT) applications in order to improve the
potential interest of IT (Sherah Kurnia, et al.).
As a result, there several challenges faced by retail trade in adopting technology:
Delivery issues
Numerous retailers have their own delivery system whether by via phone calls or shipment.
Therefore, some of the retail firms negotiate with shipment companies to get their
merchandise delivered. But sometime the shipment company doesnt get the real home
address with definitely causes problems.
Lack of trust
By taking a look at online business which definitely involves technology, it can be seen that
many customers dont trust the online payment systems. Since there are thefts of credit card
numbers, hackers that get access into the card owners privacy. Thus, even though this online
systems facilitate the sell for the retailers, it seems too blur for the customers in terms of
believing on relying on it.
Setup costs
Building an e-retailing system demands a lot of money to be invested. It also requires lots of
things such as training programs, computer network and o on. As a result, due to many
companies financial instability, it is imperative for them the focus on how to keep the
business alive instead of acquitting new technologies (Rayed Alghamdi, ).
Besides, there are many other challenges faced by retail trade companies to adopt technologies
such as the cultural factors, security factors, and lack of experience and so on. Thus, this stage
concerns the KK super mart without doubt since its business core focuses on retailing. In
addition, it seems like the KK super mart is growing progressively but still hasnt adopt some
high level retail tool due to some of the factors affecting the new technology adoption.
Conclusion
Huge changes have been experienced in Malaysian retailing industry in the last decades.
However, the new retail formats such as supermarkets, hypermarkets and convenience stores
have completely won the area. Furthermore, this new systems have dramatically affected the way
people shop. As a result, it is vital for Malaysian retailers to be aware of factors affecting the

consumers behaviors. The KK supermart is one of the best retailers of the country which has
succeeded due to its services and products to serve the Malaysian community.
The KK supermart is open 24/7 just to make sure that its customers can be satisfied at anytime of
a day. In addition, this retailer has systems to improve its sells such as the barcode systems, the
scanners, but still needs to implement the Mobile Point Of sale (MPOS) to avoid the queuing line
in the shop due to the crowd. Even though this technology model has its ups and downs, the
adopting decision ought to be taken delicately to make sure that customers are happy and
satisfied with the new shopping model.
To sum it up, the KK supermart has the potential fund to acquire new technologies, so that it can
keep a sustainable competitiveness for a long run. However, the challenges a numerous to
acquire and adopt new technologies in a business but can still be managed with a very good
feasibility study made by the business consultant or the managers. Thus, to increase sells by
satisfying its customers, the KK supermart need to diversify its operating ways towards its
customers to look- them- in , therefore to keep them loyal.