ASSIGNMENTS SUBJECT CODE: ML0004 (2 credits) Set 1 Marks 30 SUBJECT NAME: RETAIL IT MANAGEMENT Question 1: a.

Evaluate the role of IT systems in retail sector. b. Explain the term E-commerce data capture. Answer: The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. Indias vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, strong income growth and favorable demographic patterns, a KPMG report titled Consumer Markets in India: the next big thing? said. The structure of retailing is developing rapidly with shopping malls becoming increasingly common in large cities, and development plans being projected at 150 new shopping malls by 2008. The retail industry faces challenges similar to those in other industries. Whats different is that they combine together to put a great deal of pressure on retailers in todays modern economy. With a fast-paced society and faster-paced technological changes, customers want new, different, and customized goods now, and theyre not willing to wait. At the same time, pressures on the backend are mounting, too. Larger retailers, with their efficiencies of scale and international scope, are pushing prices down and slashing margins. To compete, you have to think like a Wal-Mart, even if you are a medium-sized retailer. Technology offers your company a way to apply modern IT techniques on a global scale, whether through bricks-and-mortar stores, or over the Internet. Decentralized Operations: As a manager, ideally youd like to be able to walk down the hall from your office and into any one of your stores or warehouses. In reality, thats not possible. You have to hire the right people, staff your other locations, and rely on them to do the job right. Technology has the advantage of being able to bring you and your employees together whether theyre located in Minsk or Montana. IT retail solutions provide you with a centralized solution for your decentralized business. Data flows from your stores and warehouses to your head office every night, so you have up-to-date sales and inventory information. You can make pricing changes across the board, or implement a new sales campaign to reflect the success or failure of one of your major products at one store or all of them. Staff Turnover: Theres a higher rate of staff turnover in the retail industry, compared to other

industries. This varies by country. European countries, for example, tend to retain store-level personnel more successfully. North America has a turnover rate of 200-300% of front end employees in certain segments. What does this mean for your business? While you can implement and pursue staff retention programs and it makes good sense to do so youre going to have new employees coming through your doors on a regular basis. Getting them trained on your systems rapidly and cost-effectively is critical so that they can become productive members of your team as soon as possible. Shrinkage: Consider these sobering statistics on shrinkage (also known as inventory shrink): For every dollar lost to shrinkage, you can lose $11 to $15 in profits. Youll only detect 3% of the shrinkage when it happens, the other 97% youll discover later. For every theft you detect, 46 others will go undetected. In 2005, total inventory shrinkage cost U.S. retailers $37.3-billion US. Administrative error is responsible for 14.6% of shrinkage, and employee theft is responsible for 47.9% of shrinkage (National Retail Security Survey, 2001). Improve sales and reduce costs within your enterprise and beyond: A retail solution can help take your business to the Web by providing superior scalability and support for the latest ebusiness applications. By sharing the customer insights you gain online throughout your entire enterprise, you can increase transactional volumes. Many manufacturers and retailers maximize profits by streamlining their supply chain to deliver the right products at the right time. These solutions can help can help you and your suppliers predict customer buying patterns and inventory turns more accurately. Those integrated lines of communication can realize a higher return on investment through faster time to market and better customer service. With so many transactions taking place on a daily basis, its critical that your systems are up and running when you need them most. These Solutions provide the complete e-Business infrastructure your retail company needs for customer-centric business in the new marketplace Enterprise Resource planning (IT) Customer Relationship management (CRM) Supply chain management (SCM) Front-office management Order and product configuration E-Commerce Executive decision Support Field service management Workflow management Business Process management Proposed e-Business Suite System comprises of IT, CRM, web integration of business and other e-Business infrastructure tools that helps you manage and automate an entire enterprise and its business processes both internal and external. It is a set of collaborative tools that integrate the enterprise with its clients, vendors and employees for smooth and efficient business operations on-line. This System helps you to:

 Compress Time Cycles Streamline and Speed-up Customer Order Processing Enhance control over business operations Access Real time Information Maintain up-to-date documentation all times Simplify Data Management Integrate your Supply chain management Cost Tracking Improve customer service and on-time delivery Compress manufacturing lead times Reduce WIP and finished goods inventories Increase throughput and profit
B. E-commerce data capture :

Standard data carriers - The first articulation of what we might recognise as a data carrier system for consumer goods was put forward by Wallace Flint in a masters thesis in. Flint devised a scheme that would enhance the usability of punch cards in business processes. He describes a supermarket in which the consumer would perforate cards to mark selections and insert them into a reader at the checkout. This would then activate machinery to bring the purchases to them on a conveyor belt. Store managers would make a record of what was being purchased. At the time Flints scheme was economically unfeasible, however it largely describes todays data carrier (bar code) systems. In the late 1940s, Bernard Silver and Norman Woodland set about devising a method for automatically capturing product information at the checkout. Woodland had many ideas ranging from ink that was sensitive to ultraviolet light, drawing dots and dashes in the sand to simulate Morse Code, through to replacing the lines with concentric circles (which became known as bulls eye code). On 20 October 1949 Woodland and Silver filed a patent application for the Classifying Apparatus and Method, describing their invention as article classification through the medium of identifying patterns. In 1962 the patent was sold to Philco and then finally to RCA in 1971. In early 1971 RCA demonstrated the use of the .bulls eye bar code. system at a grocery industry meeting. Businesses could foresee the potential of such a system and, following a series of trade association meetings, numerous technology companies were approached to develop an inter industry product coding system and associated symbolism. IBM immediately set up a business unit to develop such a system with Woodland, the inventor of the bar code, playing a prominent role on the project. Woodland and a fellow employee George Laurer went on to develop the Universal Product Code (UPC) incorporating an eleven-digit numbering system with symbolism based on Woodlands original two-dimensional Morse code approach with thin lines replacing the dots and thick lines replacing the dashes. IBMs UPC symbolism worked well as any extra ink flowed out the top or bottom of the bars so no information was lost. RCA continued to push the bulls eye code, however, due to printing problems and scanning difficulties, the code proved to be less effective. As computer systems have advanced, bar codes have become more prevalent in society. There are now other bar code symbolisms designed to meet the specific needs of particular applications or industries. As a data carrier, the future of the original bar code lies in the amount of information required by the

multitude of industries that are keeping track of their various business transactions. With advances in technology it is likely that the barcode will be replaced by another symbolism capable of carrying a much richer range of data which will in turn promote a rapid evolution in the broader infrastructure supporting B2B e-commerce. Standard item numbering - With the adoption of the UPC as the industry standard in April 1973 the Uniform Code Council (UCC) was created to standardise the numbering system for all items that would be bar coded. On June 26, 1974, at Marsh Supermarket in Troy Ohio, the first item, a packet of Wrigley.s chewing gum was scanned. Other countries began developing modified versions of the UPC. The most successful being the European Article Numbering (EAN) system, developed by a council made up of 12 European countries in 1974 and administered by EAN International. The system administered by EAN spread rapidly through European countries and then to their trading partners throughout the world. The advantages of a single global standard were quickly recognised and EAN International and the UCC formed a partnership. The agreed aim of the partnership is to develop compatible standards that will increase business efficiency by providing a common global language for trade. In joint cooperation, they administer the EAN.UCC System through the management of and by providing standards for, the unique identification and communication of products, transport units, assets and locations. They aim to provide business tools that will optimize supply chain management for their members. Today EAN International and the UCC have Member Organisations (MOs) in 128 countries. Each MO administers the EAN.UCC numbering, bar coding and electronic messaging system locally. There are approximately 900,000 member organisations from a wide range of industries. A GTIN (Global Trade Item Number) is used for the unique identification of trade items world wide within the EAN.UCC System. A GTIN has a 14 digit structure however its bar code may contain 13 digits (EAN-13), 12 digits (UPC-12) or 8 digits (EAN-8). The GTIN is defined as a 14 digit number to accommodate the different structures in use. EAN International administers the EAN numbers, while the UCC administers the allocation to organisations in North America (United States and Canada). A major step towards facilitating global trade was the recent announcement by the UCC that all North American companies who presently scan the 12-digit UPC symbol need to be capable of scanning a 14-digit GTIN symbol. E-messaging The ability to exchange information electronically is central to the effective conduct of ecommerce. In the late 1960s and early 1970s various e-messaging formats began to emerge in different industries and countries. It became clear to the business world that if Electronic Data Interchange (EDI) was to meet the requirements of the international community then it was essential to develop an international standard for EDI. Early in 1980 the United Kingdom presented to the United Nations Economic Commission for Europe (UN/ECE) a standard for electronic communication between trading partners, known as the Trade Data Interchange (TDI) Standard. At the same time the UN/ECE recognised the need to

coordinate the development of one international standard and organised an international working party. In 1986 this working party commenced the challenge of combining the increasing number of European and United History of Bar Codes. The following year the International Organisation for Standardization (ISO) was presented with and subsequently endorsed, the internationally accepted e-commerce syntax implementation and message design guidelines, which became known as UN/EDIFACT (United Nations Electronic Data Interchange for Administration, Commerce and Transport). Today the UN/EDIFACT standard is still maintained and developed under the auspices of the United Nations by the Centre for the Facilitation of Procedures and Practices for Administration, Commerce and Transport (CEFACT). There are over 60 countries and numerous international organisations represented in the CEFACT, including EAN International and the UCC. Industry support for the management of e-commerce across borders is imperative. The Global Commerce Initiative (GCI) is a global user group, created in 1999, to .improve the performance of the international supply chain for consumer goods through collaborative development and endorsement of recommended standards and key business processes. EAN International and the UCC are a part of this user group, supporting the GCI to better manage standards around the world. Product classifications While the use of unique product codes or GTINs, is sufficient to support bilateral e-commerce between established business partners, product codes themselves are not sufficient to facilitate ecommerce between potential new business partners. In order to locate potential suppliers, businesses require a means of searching for available products. For this purpose a product classification is required. Vendor/supplier access (Data Source) This type of user provides a community of trading partners with master data and includes, but is not limited to, manufacturers, importers, distributors, and wholesalers or brokers who are responsible for the supply of goods and services to their trading partners. EANnet provides them with a tool to publish a central catalogue of master data including item, data and promotional information about their GTINs. There is also the option to automatically send out changes made to their EANnet catalogue to nominated trading partners. Suppliers are effectively able to create multiple catalogue views, each tailored to a specific trading partner. This enables trading partner specific information, for example data, to be securely published. Suppliers are then able to grant catalogue access to their trading partners. Once access is granted an EAN net trading partnership exists between the two parties. The trading partner is then able to view the suppliers catalogue, including the commercially sensitive data such as purchaser specific data and promotional information. When a new supplier joins the network, the EAN net Client Services Team validate all data prior to it being loaded to EAN net to ensure adherence to standards such as correct use of GTIN, commodity classification, description, trading partner requirements etc. Once a supplier has been accredited, the supplier is responsible for the quality of all data maintained on EAN net and is able to add new products and update existing products when required.

System architecture The system can be thought of as operating in both a push mode and a pull mode. The push mode is invoked by suppliers populating and maintaining their master data (pushing data in) This in turn triggers pushing updated data out to trading partners. The pull mode is invoked by buyers/retailers and the search and download community undertaking catalogue trawling activities. The strength of the system currently lies with the push mode. As use of the service grows, particularly through data synchronisation, its usefulness as a repository from which users can pull data can be expected to increase. Consumer data index The catalogue does not store any retailer specific data (items stocked or datas charged). Retailers either have data pushed out to them by the catalogue or they search the catalogue for information. As a consequence the catalogue does not offer the same prospects for automatic data collection for CPIs as it does for PPIs. However, given that retailers are one of the key beneficiaries of the end-to-end business processes supported by the system as a whole, opportunities still exist to improve communications with retailers and to automate data capture. Retailers are totally dependent on the GTINs to support their ordering, stock management and point of sale (POS) systems. They are loading an increasing number of catalogue data fields to their own systems (witness the move to displaying item pictures when items are scanned at POS). Adherence to the UN/EDIFACT standards should facilitate the development of software tools capable of polling retailers POS systems to report datas in respect of designated GTINs. The process of implementing such collection strategies in respect of retailers will simply be more involved (and costly) than for producers due to the more detailed individual agreements/ processes involved. Question 2: a. What is RFID? What are its benefits?
b. Mention some of the retail IT applications and benefits.

Answer : Radio Frequency Identification (RFID): RFID is one of the key technologies transforming the industry, enabling products to be easily tracked electronically at every step in the supply chain. As the cost of RFID tags comes down, the rate of adoption is forecast to expand exponentially. Several major retailers are already asking their suppliers to support RFID initiatives. However, RFID has significant value creation potential for consumer products companies as well, including improved labor efficiency, fewer supply chain errors, better visibility of inventory and its location, reduced theft, lower levels of safety stocks and an ability to serve the retail customer more effectively. RFID can enable businesses to react much faster to changing market and operating conditions. Consumer products companies need to carefully plan a strategy to optimize the value to their own businesses from implementing RFID capabilities. At the same time, they need to avoid simply reacting to multiple retailers mandates with potential duplication and inefficiency. Embracing industry standards and roadmaps will be critical. The substantial amounts of data that a comprehensive compliance system generates need to be effectively managed. The success of any compliance program will rest on its ability to deliver the necessary requirements at the lowest possible costs. Companies will need to standardize business processes and equipment to reduce deployment time and simplify their rollout. Applying a

common approach across the whole organization, with a preference for low-cost, scalable and repeatable application integration, will also help reduce the cost of compliance. Radio frequency identification (RFID) technology is being introduced for use in the retail industry. RFID promises to speed supply chain operations by automating the tracking of goods. RFID uses electronic tags for storing data and identifying items. Since RFID is used to capture information the issue becomes what data is being captured and hence the privacy issue becomes a concern. Many large retailers have instructed their suppliers to tag pallets and cases with RFID tags carrying Electronic Product Code (EPC), a license plate with a hierarchical structure that can be used to express a wide variety of different, existing numbering systems. EPC Global has approved a new communications protocol for UHF tags that will standardize tags and readers for retail supply chain throughout the world. Eventually many billions of tags will be needed for pallets and cases alone. If tagging at case and pallet level proves to be successful, then the next step in the process may be to tag individual items and thus affecting consumers. Shaping of public opinion has been started by consumer advocacy groups, for example, by Consumers against Supermarket Privacy Invasion and Numbering CASPIAN, followed by numerous articles and journals and newspapers and not only in those specialized in technology and business but also in the popular press. According to CASPIAN consumers have no way of knowing which packages contain RFID chips. While some chips are visible inside a package, RFID chips can be well hidden. For example they can be sewn into the seams of clothes, sandwiched between layers of cardboard, molded into plastic or rubber, and integrated into consumer package design. The costs for implementing RFID are still too high for most mainstream applications, but they are falling. While the costs and risks might be too high to deploy in a production environment, the benefits are proving more apparent and many should be conducting research projects to begin determining the potential ROI. Here is a quick checklist of several benefits that can be achieved with RFID solutions:
1.

2.

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5.

Reduce warehouse and distribution labor costs -- Replace the point and read laborintensive operation of tracking pallets, cases, cartons and individual products with sensors that can track these items anywhere in the facility with pin-point accuracy. This can reduce the high labor costs and service fees of regular stock management and store shelf inventory. Reduce point-of-sale labor costs -- With RFID-enabled products, checkout can be completed with a quick scan of all items in cart helping to reduce point-of-sale labor costs. The current scan-it-yourself component of self-service checkout can be improved, helping to improve adoption, reduce self-service checkout times and reduce fraud. Reduce inventory -- Inventory accuracy is important to helping eliminate excess/missing inventory, losses and write downs. With RFID, inventory errors can be reduced so that the company can be assured that the inventory indicated is the actual inventory available. Improve forecasting and planning -- Visibility improvements throughout the supplychain can help to improve the forecasting capabilities to help better track where inventory is and what is happening to it throughout the supply chain. Reduce theft -- Losses due to theft are estimated to cost retailers over $30 billion per year and are estimated conservatively at 1.5% of overall sales. With RFID, products can be tracked through the supply chain to pinpoint where a product is and eliminate inventory errors that can cause shipments to go missing, or to better find where and when in the

process the product was lost. Within the retail store, RFID can and has been successfully deployed, particularly on higher margin items, to help prevent theft. 6. Reduce out-of stock conditions -- When an item is out of stock the customer is often left disappointed, either avoiding the purchase altogether -- common in grocery stores where as much as 4% of their revenue is lost each year due to outof-stock conditions -- or worse, the customer moves on to a competitor in order to source the product. Eliminating out-of-stock conditions via better RFID product tracking and inventory visibility and forecasting, such as alerting the store staff immediately when the last item leaves the shelf, can have an immediate top-line revenue impact and have residual effects by improving customer service and satisfaction. 7. Improve customer experience -- With RFID, items in a cart can be tracked and if a hightech cart or kiosks are part of the shopping experience, offers can be made automatically related to the items -- such as dynamic up-sell/cross-sell of useful or necessary accessories. B. Some of the retail IT applications and benefits: IT and Retail Strategy
The retail market is complex and peculiar. India is an extremely cost sensitive market. A successful retailer must have not only the right products at the right place and the right time but also the right pricing strategy. In addition, the number of products managed in retail is unusually high. By Dominic K Some leading retail chains manage around 4,00,000 products.Almost all major retailers, irrespective of their size, aspire to lead in their market niche. To this end, they are all going through aggressive expansion campaigns to achieve the same. Having a comprehensive IT policy helps an organisation put bits of information together and allows decision-makers to get the whole picture. It also helps evaluate all decisions taken so far. In this regard, retailers have selected SAP as a key technology partner and implemented SAP retail apart from other solutions and products from various other vendors. The idea is to have the best technology available at the front-end retail store. These facilitate faster checkout and there is timely as well as correct recording of client information. For this purpose, barcodes are extensively used. Even credit card magnetic swap readers are in use to capture correct information into the database. Chinar Deshpande, CIO, PRIL, says, To support growth, a robust and futuristic IT infrastructure with investments of over Rs 100 crore has been planned for the next three years. Our strategic partnership with SAP is the first step in realising our IT vision. While deciding to implement a new technology, the major factors are scalability and user adaptability. This is because the most important thing in retail is to be customer friendly. Ultimately, the business is all about providing service to the end customer. The customer in the store is the prima facie reason why a retail business opts for a particular technology. The CIOs role CIO plays a crucial role in a retail outfit. He is involved in strategic business meetings as well. His main role is to ensure that the existing system is working adequately and smoothly. Continuous development, improvisation and innovation on existing systems come next. The data warehouses created as well as the data collected at the sales counter must be accurate, so that the BI (Business Intelligence) solutions are in a position to provide insights into customer behaviour and buying patterns.

The CIO should also be able to evolve new algorithms to ensure that timely stock replenishments take place helping boost sales. He must also ensure that proper security features are in place to reduce retail shrinkage, which includes shoplifting, supplier fraud and administrative errors. These implementations are critical for profitability because retail business operates on a slender profit margin. With the dependence of retail business on IT in mind, around one to one and a half percent of overall sales are pumped back into IT. The ROI factor Calculating RoI on a retail IT implementation isnt the easiest thing to measure. That said, it could be judged from the quality of information that is available for decision-making helping improve the bottom-line. It also helps in finding other avenues for expansion and improving profitability. Shoppers Shop wanted its customers to have a personalised shopping experience, and to this end it wanted to tailor-make promotions and schemes unique to the buying patterns of specific customers. For this we needed to understand how, when, where and in what combination the customer buys merchandise, recalls Unnikrishnan TM, Customer Care Associate and CTO, Solutions and Technology, Shoppers Stop. It was also necessary to improve the decision-making skills of the organisation, manage costs, increase revenue and provide better products to customers. With the support of good IT systems, it is possible to create proper benchmarks that can measure the efficiency of an IT implementation and systems. The achievements of the benchmarks reflect positively on IT and business processes, and eventually on sales and profitability. An SOA (Service Oriented Architecture)-based approach can also offer retailers certain benefits. On all fronts, the retailer and manufacturer are required to rethink their operations, from format differentiation and in-store innovation to real-time information facilitation for the customer. Retail applications With large corporate houses entering the retail sector and the consequent entry of IT professionals from other industry verticals, awareness levels of IT managers in the retail industry have grown. There is still a need to display the benefits that accrue from implementing ERP and CRM applications in a retail organisation. Oracle Retail is spending considerable time and effort to create awareness about the availability of IT applications and the consequent benefits to retail organisations. Most IT managers of retail organisations are aware that they will need ERP and CRM applications. As retailers grow, they feel the need for a flexible IT infrastructure to run their business more effectively. They have started to realise that IT is a fundamental aspect of a responsive business, and that this is possible only when their core ERP and CRM applications start to communicate in real-time and receive data as soon as it is captured. This in turn is possible only if they implement a service-based infrastructure. Like any other vertical, retail also stands to benefit from elaborate IT set-ups. However, this is subject to the scale and size of the organisation, as well as an objective assessment of its requirements. Key challenges faced by retail organisations include the need for accurate merchandising, improved planning, and profitability, enhancing customer experience, strengthening store operations, improving workforce management and the supply chain.

IT alone wont do Competency in managing IT is just not enough when it comes to choosing a third party; companies are looking for more. This holds more water for SMBs that, unlike large companies, lack standardised technology platforms. Verticals like discrete manufacturing and retail chains need low-cost, low maintenance applications optimised to their business needs applications that are not only scalable but which help gain benefits and enhance revenues. We took care to ensure that we chose not only the best product from a technological perspective, but also a security partner that understood our business concerns and would be there for us in the long term, says Meheriar Patel, Deputy General Manager and Head IT, Globus Stores. Factors such as the markets opinion of the vendor and the projects completed by the vendor in question should also be given due weight. Initial and operational costs are some critical criteria that CIOs should look at.

Question 3: Give a note on E-fulfillment. E Fulfilment: Definitions of e-Fulfilment are wide and varied and range from core physical delivery to the customer to warehouse, pick and pack and call centres. The term fulfilment, as such, describes a horizontal tier of services from the beginning of a job through delivery to distributors or end users. In other words, it refers to the challenges that take place after the Buy button is clicked.
Answer :

In the framework of e-Thematic, the following definition of e-Fulfilment is used: e-Fulfilment defines that part of e-Business which aims at efficiently and effectively integrating a companys back-office processes, activities and functions arising from order capture through to final delivery to the customer. The e-Fulfilment process: E-Fulfilment refers to more than setting up an Internet-enabled frontoffice. It entails the integration of the website with all the back-office processes, activities and functions (marketing and sales, finance and logistics) that support the fulfilment of customer orders.The following figure illustrates the back-office processes that take place after the Buy button has been clicked. E-Fulfillment process

The sequence of events is: order capture (web order) > stock availability check (e-warehousing) and interface to finance house (e-billing) > order confirmation > manufacturing or procurement (not studied by e-Thematic) > order release (picking/packing/shipping) and final delivery to the customer. Most of these processes can be executed internally or externally. Scope of e-Fulfilment: The scope of e-Fulfilment includes companies with an online retailing presence that are adapting e-Fulfilment applications (whether their business is old economy, new economy or a mixture of those two), and software vendors providing e-Fulfilment applications. Both the Business-to-Consumer (B2C) and Business-to-Business (B2B) areas will be addressed. Regarding the integration of back-office activities, the focus of e-Thematic will be on the operational level. Manufacturing and procurement are related to the front-end of the supply chain and will thus not be studied by e-Thematic. e-fulfilment is key to the delivery of customer satisfaction in e-commerce
IDC White Paper, sponsored by iForce, predicts e-fulfilment market growth to $3.7bn dollars by 2003 as e-businesses outsource to the specialists The e-fulfilment market in Europe is set to grow to $3.7bn dollars by 2003, from $244m dollars today, according to the first ever White Paper into its size and potential published today by IDC and sponsored by European e-fulfilment leader, iForce. The White Paper illustrates the range of challenges facing brands taking their businesses direct to the consumer via the web and the increasingly critical role third party specialists will take in helping to deliver customer trust and satisfaction. The IDC White Paper - `The Growing Role for e-Fulfilment Specialists - Delivering in a Wired Marketplace' - says: "IDC believes that if anything inhibits this growth [in internet commerce] it will not be the `front-end' (i.e. product mix, pricing, customer access to web sites etc), but the failure to generate customer satisfaction as a result of flawed fulfilment solutions." Key points made by the White Paper are: The fast growth of internet commerce in Western Europe is challenging the traditional delivery models and strategies that have been based upon the B2B bricks-and-mortar world. Poor delivery can have a devastating effect on a company's business

Fulfilment is far more costly and complex than creating an attractive web site and online traders often under estimate the resources, skills and time required to create first class fulfilment.

Outsourcing logistics and customer service to external specialists is now a logical option for e-commerce businesses that want to move quickly.

Specialists offering a broad array of fulfilment and customer services are best positioned to dominate the e-fulfilment marketplace as it is the seamless integration of activities such as order processing and management, transaction processing, stock management, picking and packing, delivery, returns management, and customer service that will enable the fastest and most customer-oriented fulfilment process. The White Paper predicts that the value of on-line purchasing in Western Europe will rocket from $10 billion dollars in 1999 to $125.3 billion dollars in 2003. But this growth is dependent upon a successful

e-fulfilment process. Meeting and exceeding customer expectations, `from click to drop', is the key success factor for e-tailers (on-line retailers).

e-Fulfilment market set to boom, outsourcing set to double:

The White Paper predicts the growth in the European outsourced e-fulfilment market from $244 million dollars in 1999 to $3.7 billion dollars in 2003 - with growth in 2000 expected to be 188%. By 2003, 33.2% of all European e-fulfilment activities are expected to be outsourced, which compares with a figure of less than 20% today. Traditional logistics are focused primarily on the delivery of many items to a few locations - eg stores and factories - whereas e-fulfilment concentrates on `few-to-many', the delivery of a few items from a wide choice of items to multiple locations. The White Paper distinguishes the criteria for success in efulfilment concluding that successful delivery is only one of the many responsibilities facing efulfilment specialists. The White Paper shows that e-fulfilment encompasses all aspects of customer service - from order processing to transaction management, picking and packing and stock and returns handling - through multiple channels in an environment where the delivery of `few to many' creates new logistical challenges. On-line shopping still requires a `leap of faith' from the customer and customer expectations of quality service are higher than in traditional retailing. From `click to drop', therefore, the e-fulfilment process must win the consumer's trust by ensuring a high quality level of service in every step of the process. Launching the White Paper, Matthew Peacock, Group Chief Executive of iForce said: "e-Fulfilment is very different from traditional fulfilment. `Few to many' requires a specialist approach to all aspects of the customer delivery and service process; such as more flexibility on order management, highly responsive customer service throughout the process, and faster and tighter timeslots for delivery. Enhanced customer service requires a transparent tracking process to keep customers in touch with their orders whilst creating the flexibility to handle alterations and returns. They also need to talk to customer service people through multiple channels - phone, fax, web and `on-line chat'." "If there is one thing that the first generation of e-tailers has learnt, it is the criticality of customer satisfaction in the early take-up of their businesses. e-fulfilment is the key to customer satisfaction it's not just about delivering goods. Customers who receive poor service from e-tailers don't come back. That is why IDC predict the market for e-fulfilment specialists such as iForce will grow to $3.7bn dollars in the next three years." The IDC White Paper also predicts that efficiency improvements will cause total e-fulfilment costs to fall from 24.6% of Internet commerce revenue in 1999 to 22.3% in 2003. Typically, one third of this is likely to be recaptured through delivery charges to consumers. Whilst some e-commerce retailers may be able to develop first class fulfilment processes in-house, many will be unable to do so due to a lack of money, skills and time. IDC predict that in-house operators will have to generate considerable sales volumes in order to achieve economies of scale with their logistics operations. Increasing numbers, therefore, will outsource their e-fulfilment requirements. The IDC White Paper defines the new breed of service provider emerging in the European efulfilment market as the Value Chain Integrator (VCI). These are either IT specialists partnering traditional fulfilment providers or traditional fulfilment specialists who have the software solutions and IT skills to offer the same services. IDC predict that VCIs will increasingly dominate the e-fulfilment

market by providing the accessibility, seamless co-ordination and flow of data between each activity, necessary to meet customer expectations. Matthew Peacock said today: "This White Paper demonstrates what we, and, I am sure, other VCIs are finding; that, increasingly, companies entering into e-commerce need specialist help in managing their operations and meeting their customers' expectations. "We are confident that we provide this seamless service to our clients and, as a result, to their customers. So we are very encouraged by the market growth predictions made by IDC in this White Paper. We are thriving in this environment - not just in the UK but, increasingly, across Continental Europe as well." Notes to Editors: 1. Copies of the White Paper, The Growing Role for eFulfilment Specialists; Delivering in a Wired Marketplace, are available from Brands2Life. Tel: 0044 20 7386 6200 About IDC: IDC delivers accurate, relevant and high-impact data and insight on information technology to help organisations make sound business and technology decisions. IDC forecasts world-wide IT markets, adoption and technology trends, and analyses IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in more than 40 countries world-wide. IDC's customers comprise the world's leading IT suppliers, IT organisations and the financial community. Additional information on IDC can be found on its Web site at http://emea.idc.com. IDC is a division of IDG, the world's leading IT media, research and exposition company. About iForce iForce is one of Europe's leading e-fulfilment businesses, offering clients an end-to-end e-fulfilment solution including consultancy, e-analysis, stock management, customer service and logistics. Founded in 1998 as a division of a long-established fulfilment specialist, iForce has pioneered the development of traditional fulfilment skills, processes and technologies for the ecommerce world. iForce has approximately 200 staff and over 200,000 square feet of warehouse space in three locations serving the UK and Continental Europe. Clients today include QXL.com, Toyzone.co.uk, Splendour.com and 9Feet.com. In September 2000, iForce established a joint venture with Transportes Azkar in Spain as the first step in the development of its pan-European footprint.

ASSIGNMENTS SUBJECT CODE: ML0004 (2 credits) Set 1

Marks 30 SUBJECT NAME: RETAIL IT MANAGEMENT Question 1: a. What is POS? Give example. b. What do you mean Grid computing? What are the processes involved in it? Answer: A. POS (point of sale) Point of sale (POS) or checkout is the location where a transaction occurs. A "checkout" refers to a POS terminal or more generally to the hardware and software used for checkouts, the equivalent of an electronic cash register. A POS terminal manages the selling process by a salesperson accessible interface. The same system allows the creation and printing of the receipt.

Contents
[hide] 1 History o 1.1 Early software (pre 1990s) o 1.2 Modern software (post 1990s) o 1.3 Hardware interface standardization (post 1990s) o 1.4 Web based POS (post 2000s) 2 Industry o 2.1 Retail industry o 2.2 Hospitality industry 2.2.1 Restaurant business 2.2.2 Hotel business 3 Checkout system o 3.1 Checkout hardware o 3.2 Checkout software 4 Accounting forensics o 4.1 Tax fraud 5 See also 6 References

[edit] History
[edit] Early software (pre 1990s)
Early electronic cash registers (ECR) were controlled with proprietary software and were very limited in function and communications capability. In August 1973 IBM announced the IBM 3650 and 3660 Store Systems that were, in essence, a mainframe computer packaged as a store controller that could control 128 IBM 3653/3663 point of sale registers. This system was the first commercial use of client-server technology, peer-to-peer communications, local area network (LAN) simultaneous backup, and remote initialization. By mid-1974, it was installed in Pathmark Stores in New Jersey and Dillard's Department Stores.

The first microprocessor-controlled cash register was built by William Brobeck and Associates in 1974, for McDonald's Restaurants. Each station was controlled by an Intel 8008, a very early microprocessor. There was one button for every item -- for example [2 Vanilla Shake], [1 Chocolate Shake], etc. By pressing the [Grill] button, a second or third order could be worked on while the first transaction was in progress. When the customer was ready to pay, the [Total] button would calculate the bill, including sales tax. This made it accurate for McDonald's and very convenient for the servers. Up to eight stations could be interconnected and printed reports, prices, and taxes handle from a single station in "Manager Mode." Programmability allowed retailers to be more creative. In 1979 Gene Mosher's Old Canal Cafe in Syracuse, New York was using POS software written by Mosher that ran on an Apple II to take customer orders at the restaurant's front entrance and print complete preparation details in the restaurant's kitchen. In that novel context, customers would often proceed to their tables to find their food waiting for them already. This software included real time labour and food cost reports. In 1986 Mosher used the Atari ST and bundled NeoChrome paint to create and market the first graphical touchscreen POS software

[edit] Modern software (post 1990s)

A wide range of POS applications have been developed on platforms such as Windows and Unix. The availability of local processing power, local data storage, networking, and graphical user interface made it possible to develop flexible and highly functional POS systems. Cost of such systems has also declined, as all the components can now be purchased off-the-shelf. The key requirements that must be met by modern POS systems include: high and consistent operating speed, reliability, ease of use, remote supportability, low cost, and rich functionality. Retailers can reasonably expect to acquire such systems (including hardware) for about $4000 US (2009) per lane.

[edit] Hardware interface standardization (post 1990s)

Vendors and retailers are working to standardize development of computerized POS systems and simplify interconnecting POS devices. Two such initiatives are OPOS and JavaPOS, both of which conform to the UnifiedPOS standard led by The National Retail Foundation. OPOS (OLE for POS) was the first commonly-adopted standard and was created by Microsoft, NCR Corporation, Epson and Fujitsu-ICL. OPOS is a COM-based interface compatible with all COM-enabled programming languages for Microsoft Windows. OPOS was first released in 1996. JavaPOS was developed by Sun Microsystems, IBM, and NCR Corporation in 1997 and first released in 1999. JavaPOS is for Java what OPOS is for Windows, and thus largely platform independent. There are several communication protocols POS systems use to control peripherals. Among them are
EPSON Esc/POS UTC Standard UTC Enhanced AEDEX ICD 2002

Ultimate CD 5220 DSP-800 ADM 787/788.

There are also nearly as many proprietary protocols as there are companies making POS peripherals. EMAX, used by EMAX International, was a combination of AEDEX and IBM dumb terminal. Most POS peripherals, such as displays and printers, support several of these command protocols in order to work with many different brands of POS terminals and computers.

[edit] Web based POS (post 2000s)

Web based POS software can be run on any computer with an Internet connection and supported browser, without additional software. The POS software is hosted on secure servers in multiple data centers with real-time backups.[citation needed]

[edit] Industry
Retail industry
Main article: Retailing

The retailing industry is one of the predominant users of POS terminals. A Retail Point of Sales system typically includes a computer, monitor, cash drawer, receipt printer, customer display and a barcode scanner. It can also include a weight scale, integrated credit card processing system, a signature capture device and a customer pin pad device. More and more POS monitors use touch-screen technology for ease of use and a computer is built in to the monitor chassis for what is referred to as an all-in-one unit. All-in-one POS units save valuable counter space for the retailer. The POS system software can typically handle a myriad of customer based functions such as sales, returns, exchanges, layaways, gift cards, gift registries, customer loyalty programs, BOGO (buy one get one), quantity discounts and much more. POS software can also allow for functions such as pre-planned promotional sales, manufacturer coupon validation, foreign currency handling and multiple payment types. The POS unit handles the sales to the consumer but it is only one part of the entire POS system used in a retail business. Back-office computers typically handle other functions of the POS system such as inventory control, purchasing, receiving and transferring of products to and from other locations. Other typical functions of a POS system are to store sales information for reporting purposes, sales trends and cost/price/profit analysis. Customer information may be stored for receivables management, marketing purposes and specific buying analysis. Many retail POS systems include an accounting interface that feeds sales and cost of goods information to independent accounting applications.

[edit] Hospitality industry

Main article: Hospitality

Hospitality point of sales systems are computerized systems incorporating registers, computers and peripheral equipment, usually on a computer network. Like other point of sale systems, these

systems keep track of sales, labor and payroll, and can generate records used in accounting and book keeping. They may be accessed remotely by restaurant corporate offices, troubleshooters and other authorized parties. Point of sales systems have revolutionized the restaurant industry, particularly in the fast food sector. In the most recent technologies, registers are computers, sometimes with touch screens. The registers connect to a server, often referred to as a "store controller" or a "central control unit." Printers and monitors are also found on the network. Additionally, remote servers can connect to store networks and monitor sales and other store data. The efficiency of such systems has decreased service times and increased efficiency of orders. Another innovation in technology for the restaurant industry is Wireless POS. Many restaurants with high volume use wireless handheld POS to collect orders which are sent to a server. The server sends required information to the kitchen in real time. [edit] Restaurant business Restaurant POS refers to point of sale (POS) software that runs on computers, usually touch screen terminals or wireless handheld devices. Restaurant POS systems assist businesses to track transactions in real time. Typical restaurant POS software is able to print guest checks, print orders to kitchens and bars for preparation, process credit cards and other payment cards, and run reports. In addition, some systems implement wireless pagers and electronic signature capture devices. In the fast food industry, registers may be at the front counter, or configured for drive through or walk through cashiering and order taking. Front counter registers take and serve orders at the same terminal, while drive through registers allow orders to be taken at one or more drive through windows, to be cashiered and served at another. In addition to registers, drive through and kitchen monitors may be used by store personnel to view orders. Once orders appear they may be deleted or recalled by "bump bars", small boxes which have different buttons for different uses. Drive through systems are often enhanced by the use of drive through wireless (or headset) systems which enable communications with drive through speakers. POS systems are often designed for a variety of clients, and can be programmed by the end users to suit their needs. Some large clients write their own specifications for vendors to implement. In some cases, POS systems are sold and supported by third party distributors, while in other cases they are sold and supported directly by the vendor. Wireless systems consist of drive though microphones and speakers (often one speaker will serve both purposes), which are wired to a "base station" or "center module." This will, in turn broadcast to headsets. Headsets may be an all-in-one headset or one connected to a belt pack. [edit] Hotel business POS software allows for transfer of meal charges from dining room to guest room with a button or two. It may also need to be integrated with property management software.

[edit] Checkout system

A Checkout in a Mexican supermarket.

A checkout system generally involves the following components:

General computer hardware General computer software Checkout hardware Checkout software Miscellaneous store hardware

Because of the expense involved with a POS system, the eBay guide recommends that if annual revenue exceeds the threshold of $700,000 per annum, investment in a POS system will be advantageous.[1] POS systems are manufactured and serviced by such firms as Fujitsu, IBM, MICROS Systems, Panasonic, Radiant Systems, Sharp, Squirrel Systems, and Vectron POS among others (see the point of sale companies category for complete list). Point of sales systems in restaurant environments operate on DOS, Windows or Unix environments. They can use a variety of physical layer protocols, though Ethernet is currently the preferred system. B. The Meaning of Grid Computing: It is a compact computing Methodology where programming is condensed to the level of Data Grids. Grid Computing Need for Grid Technologies: The original motivation for the Grid was the need for a distributed computing structure for advanced science and engineering, with considerable importance on collaborative and multi-disciplinary functions. It is now agreed that similar types of application are also found in fields such as entertainment, commerce, finance and government. Accordingly, the Grid has the potential to impact upon many aspects of society. Business Benefits of Grid Computing: Businesses today are continually faced with the need for greater computational processing power so that they can run business critical applications. Its a fact that the majority of servers only run at between 20-30% of their total capacity and similarly PCs only run at between 5-20% capacity. Grid Computing will allow business to make us of this unused capacity by centrally managing and distributing processing power across the organisation.

Grid computing empowers businesses to get more from their existing investments and reduces the requirement for continuous investment in additional processing power. Furthermore, it also increases utilisation of existing IT infrastructure and allows processing power to be shared across the organisation and directed where and when it is needed. For example, a businesss Accounts Department could be allocated additional processing power towards the end of the month when its required and when its not required the processing power could be directed to some other department. Based on information gathered from current business users of the Grid and High Performance Computing, below we list some of the tangible business benefits emerging from the current market sectors Cost savings Improved productivity Improved design and new products/markets Improved management, accountability and financial control Flexibility in business processes Shorter time to market Improved Quality of Service These business benefits will be enabled by the following Grid computing processes: Grid computing processes Power-on-demand: Companies with major scientific processing workloads will be able to save on their infrastructure costs by sizing their systems to cope with their peak requirements through hiring additional power-on-demand from supercomputing bureaux only when they need it, with apparently unlimited extra power being available to them for those processing-intensive tasks. The security measures available from such power-on-demand bureaux will ensure that their work is as securely protected as if they had kept it all in house. Cycle-scavenging: Companies will be able to utilise the computing capacity lying unused in their networks of PCs. This unused capacity is usually at least 85% during the day and 100% outside it. Grid Middleware and resource sharing software will enable this dead time to be utilised in the background, without interfering with the PC user when he/she is using it. This will also enable companies to take a fresh look at their ICT infrastructure costs, with substantial potential savings for those that dont have processing-intensive scientific or engineering workloads. Information sharing: Companies working collaboratively, either in a consortium or within a supply chain, will be able to work together on-line, sharing data and information within the bounds of their joint interests, whilst keeping it secure from companies involved in different relationships with them, so called Virtual Organisations. Using such technology, they will be able to transfer such data securely between themselves. Online monitoring: Companies will be able to monitor large quantities of data acquired during their products operation, allowing them to identify operational problems when they start to develop, instead of when they become critical. They will be able to identify new potential problems as they develop, by using pattern-matching techniques. This will be particularly useful in those in-service situations where down-time is either critical or costly.

Collaborative working: Experts can come together at the same time, without requiring then to be in one place, and to hold on-line meetings linking each of their work sites, as if they were faceto-face, with all the relevant data at their fingertips, and to manipulate that data as if they were alone at their own workstation or workspace. Travel budgets and perhaps more importantly, wasted time spent travelling will be reduced by these virtual meetings. Face-to-face meetings will not be a thing of the past entirely though because partners will still need to get to know each other by meeting and discussing their respective issues, but the proportion of follow-on meetings will be reduced once mutual confidence has been built. Tools for recording discussion and decisions will permit to minute the meetings and all decisions to be ratified before the (virtual) meeting is closed. These tools will also record results of laboratory experiments, acting as an electronic laboratory notebook. High Performance: Increased processing power and bandwidth will enable companies to execute more demanding calculations, simulations and visualisations. For instance, this will allow the integration of different engineering disciplines and/or the use of finer mesh or Grid sizes in these calculations to achieve more accurate results in a shorter time with less time-consuming iterations. This will save time and the costs of testing or exploration, yield more informed decisions and shorten the time to market. In the long-term it will change the new product development paradigm from test-then-simulate to one of model-simulate-then-validate-by-test. Dynamic reconfigurability: The information processing systems used by companies will no longer be constrained by the architecture and performance limitations in processing power, bandwidth and data/information storage that suited their historical business requirements. As these requirements change, users will be able to invoke those facilities they need when and only when they need them, whether these are short-term peak requirements or longer-term evolutionary changes. Portals: Access via portals will be secure but easy to use, with single logon and authentication and, subject to the relevant criteria, with transferable certificates/permissions between different security domains. Data Mining & Decision Support: Organisations decision support systems will be able more easily to access all available databases and information repositories, including private/chargeable ones by means of secure authentication mechanisms, thus being able to search and locate all available information meeting particular criteria. They will not necessarily need to define queries numerically or by simple logical statements but instead use a new breed of intelligent agents. This is particularly useful in research into new technologies, materials, drugs, scientific phenomena, etc. Grid Computing: Marketplace: The marketplace for Grid computing is still in its early stages. At present, its true to say that considerably more effort has been put into marketing hype than real business deployments although this position is slowly but surely changing. This section reviews some of the obvious markets for Grid computing solutions and indicates which of the business benefits described above they will be able to take advantage of. Grid Computing in Retail: The retail sector will be able to demonstrate products to customers in virtual environments utilising new presentation techniques suited to the customers. Estate agents will be able to walk purchasers through homes without leaving their premises, allowing them to short-list those that they need to visit, thus saving time, inconvenience and effort. Kitchen and bedroom suppliers will be able to walk customers through potential designs, more effectively than

their current approaches. Benefits can be obtained in cost savings, improved productivity, shorter time to market, improved management, accountability and financial control and flexibility in business processes through Power-on-Demand, information sharing, collaborative working, portals, data mining & decision support and dynamic reconfigurability.

Question 2: a. Discuss the benefits of SAP in retail. b. Give a note on technological guidelines for the retail industry. Answer: SAP Retail Store optimizes local store-specific functions such as adapting promotion quantities, store-based purchasing, goods movement and sales processes. In addition, the browser-based interface minimizes training time through intuitive user guidance, ensuring prompt and effective use by all store staff. As a result, even part-time or temporary employees will find it easy to use SAP Retail Store. SAP Retail Store combines the intuitive features of a Web browser with the powerful transactions of the SAP Retail solution. The SAP Retail Store component will make it easier for users in retail stores to learn and work with the R/3(TM) System and will speed up implementation time considerably. The following benefits can be gained after implementation of SAPMaster Data access, maintenance and analysis: SAP Retail Store gives the local staff access to all pertinent product and customer information. Store employees can view and analyze product information for local promotions and advertising. Store staff can also directly enter or change customer information. Purchasing: Leveraging the integration between SAP Retail Store and SAP Retail at headquarters, the local store staff can easily enter orders online with a minimum amount of data entry. Employees can receive immediate confirmation of stock availability, pricing and expected goods receipt. Goods Movement: Close integration of the headquarters and retail store also enables store staff to quickly and efficiently receive returns, markdowns and mass shipment of goods using reference documents - reducing the burden of data entry and minimizing the opportunity for mistakes. Sales: Retail store staff can support a variety of consumer orders including different methods for delivery and payment. SAP Retail Store also enables the local sales staff to check the status of pending orders. Information Flow: The close integration between SAP Retail and SAP Retail Store ensures a seamless flow of information from headquarters to the store front including allocations and change authorizations, promotions and reporting. With the use of electronic mail employees can send and receive text files, tables or graphics to and from head office, distribution center or other stores. Facilitates quicker and better decisions: The transparency and open nature of the software has enabled in processing of information at a faster pace and taking decisions with ease and maximum accuracy. Since everything is available on demand or after perusal companies can forecast easily because they know the current strength and to anticipate the future is not a difficult

task. This will also help them in setting standards for items that were formerly complex (to deal with). Overall business transformation: ERP is usually associated with change management and transition process. ERP is supposed to ensure them smoothly in the organization without any major hiccups. Such a flow can happen only when there is an improvement in results and productivity. MYSAP ERP system helps the organization by helping them to take the initiatives to manage and adapt to change besides reflecting better and positive results with the help of its all round development functions. Reduction in Costs and Risks: Unlike other ERP applications the implementation of MYSAP ERP application does not interfere with the routine business. This discards the popular notion of losing potential customers and the existing loyal ones. The reduction in risks coupled with the decrease in costs makes this the popular choice of companies choosing ERP applications. If a company requires SAP they need not necessarily throw away the existing platforms and applications. On the contrary SAP helps them in integrating their functions with the existing platforms thereby helping to minimize investments and development costs optimally. Following Modern Practices: It is well understood from the above steps that MYSAP ERP system follows the most recent and current trends in the industry. This is beneficial to the stakeholders at large. For the company it helps to boost business. The shareholders can be assured of better returns on their equity as the chances for profits are high while for investments they are low. The employees can contribute in a better manner as MYSAP ERP helps them in discharging their functions in a better and efficient manner. Such modernizations are helpful to the state in awarding professional accreditations and licenses. Specialty: SAP caters to multiple industries. They offer customized solutions designed by keeping the needs of the particular industry in mind. The diverse service ranges from Aeronautics to Education to distribution. Whatever be the sector SAP does not compromise on its potential to capitalize advantages based on the nuances of that particular sector. This always helps them to retain customers and lead the market. B. Technologies guidelines for retail industry:
The Microsoft approach to the Retail industry is to provide a robust OS and services platform based on interoperable technology standards such as (XML, USB, and so on), and vertical industry standards such as (ARTS, IXRetail, EPC Global, and so on). With this foundation in place, we focus on providing tools and guidance so customers and partners can easily build solutions. While we're extending the platform with Retail specific products such as Commerce Server 2006, we also have over 60 Smarter Retailing partners, and 300 industry partners building great vertical solutions. Vertical markets are increasingly complex, and each industry segment faces particular software architecture and operations challenges. Not surprisingly, we've gathered significant experience and shared guidance with a wide range of retailers, analysts, standards bodies, system integrators, and partners. Up until now, we haven't had a single forum for sharing this with the retail technical community. So the primary goals of the Retail Industry Center are to:

Illuminate industry solutions and architectures for a range of technical audiences. Profile emerging technologies and demonstrate how they apply to the retail industry. Increase awareness and technical understanding of partner solutions.

Create a channel to share technical guidance with retailers considering Microsoft products and services. Provide technical guidance to our customers, partners, and system integrators. Encourage experimentation and innovative thinking. Increase awareness of retail industry standards bodies.

How is the Retail Industry Center different from the other developer centers on MSDN? Most of the other developer centers on MSDN are focused on Microsoft products and technologies. On the other hand, this site focuses exclusively on Retail industry scenarios and solutions. Of course, when applicable, we'll provide links to product guidance elsewhere on MSDN. However, our primary intent is to ensure retail industry technologists know how Microsoft, partners, and their peers are building vertical solutions. Why are you organized under the MSDN Architecture center? Architects and developers working in vertical industries face challenges that require specific, scenario-focused guidance. Solutions in vertical industries often must perform under severe operational constraints while providing unparalleled stability, regulatory compliance, and ease of use. Accordingly, we've expanded the Solution Architecture Center to provide specific guidance for addressing these industry challenges. What is a Retail industry "scenario"? One of the most exciting aspects of the developer center will be our orientation around actual retail scenarios. Instead of providing random assortments of technical articles, we intend to cluster material around solution architectures and best practices for retail scenarios. These "clusters" provide rich content targeted towards a range of technical audiences (developer, solution architect, enterprise architect, operations, and technical decision makers). Moreover, these scenarios will evolve over time to meet the changing demands of retail, incorporate emerging technologies, and others. In the near term, we're focusing on the following areas:

Improving Point of Sale/Service Improving Customer servicing and experience Controlling Inventory and Order Management Merchandise Management using Supply Chain Systems Improving Enterprise Collaboration and Information distribution Improving Employee Training Improving Human Resources access for Employees Improving Store financial reporting Providing information to store managers Providing improved enterprise business intelligence services Providing timely business information to retailers Content management for Multi-channel retailing solutions Commerce management for Multi-channel retailing Payment processing in Multi-channel retailing scenarios Catalog management in Multi-channel retailing scenarios Improving Multi channel integration and customer experience

Some of these scenarios apply only to particular retail segments, and others require markedly different implementations from retailer to retailer. Where applicable, we'll provide segment and market specific guidance. Our goal is to make recommendations practical and relevant to a wide range of retail audiences. I see you mention "Smarter Retailing" several places. What is it?

At Microsoft, Retail & Hospitality doesn't just focus on the traditional store, casino, or hotel. Instead, we help customers build solutions that address three core areas:

Smarter OperationsEnables management to drive costs out of the organization, react to market conditions in real time, and maximize the value of new business opportunities Smarter ShoppingCustomer experiences that allow a company/partner to differentiate themselves. Smarter SellingEmpower associates to increase their time on the floor, provide the latest product availability, and offer other services in real time.

For more information on the Microsoft Smarter Retailing initiative please see the overview. How are you categorizing and organizing content on the Retail Industry Center? There are four core classifications we're using to collect and create content for the industry center. This serves two purposes. First, it ensures we're building the material and guidance that appeals to a wide set of audiences across the retail industry. More importantly, however, this classification technique makes it easy for you quickly determine if a particular topic is of interest. We'll be using this approach throughout the site when sharing content. Table 1

Company Size (Yearly Revenue)

<$100M (Small) $100M$1B (Medium) >$1B (Large)

Audience Type
Customer Partner / ISV

Audience Role

Material

Enterprise Architect Whitepaper Solution Architect Demo/Solution Reference Architecture Code sample

System Integrator IT Professional Developer

We recognize technical guidance, solution architectures, and operational guidelines vary by the size of the organization. For example, smaller retailers may seek information on Microsoft Dynamics while large retails seek advice on custom development. Organizations have widely varying requirements when building software. Some retail segments and business scenarios require making tradeoffs in scalability, interoperability, and manageability to achieve appropriate ROI. We are going to focus on providing materials for all levels of the IT organization and not just the development audience. We will provide a range of guidance from whitepapers/reference architectures to source code snippets, and complete demos.

For each retail business scenario we profile on the industry center, we'll provide related guidance to address needs of various project stakeholders:

Figure 1. Guidance for Retail Business Scenarios on MSDN Retail Industry Center

Enterprise ImplicationsGuidance to help enterprise architects understand, influence, and manage integration of retail solutions into their organization. Relevant StandardsGuidance to help architects and developers build interoperable and standards compliant solutions that solve business needs. Solution ArchitecturesSegment specific reference architectures, solution guidance, and partner solutions that address the retail business scenario. Developer TipsCode, development practices, and guidance for solving software construction challenges associated with the retail business scenario. Operational GuidanceWhitepapers, scripts, and guidance to help IT Professionals deploy, manage, maintain, and monitor solutions associated with the retail business scenario.

Each member of the software development team has different responsibilities. By grouping guidance around retail business scenarios, each stakeholder can easily find role specific guidelines to help them build or support solutions addressing business needs. Microsoft relies on a rich ecosystem to provide many vertical industry solutions. How are you going to provide technical details for those? You will find content we publish is not only produced by Microsoft professionals with years of retail industry experience, but we're also leveraging the experience of key Microsoft partners and system integrators. Our strategy is to bring together a broad ecosystem of Microsoft professionals, partners, and system integrators to share relevant, proven guidance and information. As such, you'll see partner solution drilldowns, system integrator whitepapers, and customer experiences profiled throughout the Retail Industry Center. What about Emerging Technologies? While we intend for the industry center to focus primarily on existing technologies, many retailers have requested Microsoft offer guidance to help them understand emerging technologies and how they should implement them. Part of the Microsoft Retail & Hospitality team focuses exclusively on emerging technologies such as digital media, biometrics, digital consumer, RFID, and so on. We're committed to bring them to market in relevant, manageable solutions that retailers can implement in cost effective ways. As such, we'll continuously profile emerging retail technologies with practical guidance to help you understand whether you will see exciting content coming from us in the near future.

How are we handling feedback? We've provided two ways for you to offer feedback on your experience using the Industry Center. First, we encourage everyone to rate the articles you read. This will help us understand what content is popular and what isn't quite meeting your needs. Each article provides a rating/comment feedback control at the end of the piece. The other way you can offer feedback is via the discussion forums. As you'll see throughout the site, we're leveraging the Solution Architecture Center discussion forums to provide a place to discuss articles, offer feedback on the site, and connect with your retail industry peers. If interest is sufficient, we'll create a separate forum exclusively for retail technologists in the coming weeks

Question 3: Along with the emerging technologies, there arise the need for privacy issues in IT systems and IT enabled services. Assess these trends. Answer: In the history of technology, emerging technologies are contemporary advances and innovation in various fields of technology. Various converging technologies have emerged in the technological convergence of different systems evolving towards similar goals. Convergence can refer to previously separate technologies such as voice (and telephony features), data (and productivity applications) and video that now share resources and interact with each other, creating new efficiencies. Emerging technologies are those technical innovations which represent progressive developments within a field for competitive advantage;[1] converging technologies represent previously distinct fields which are in some way moving towards stronger inter-connection and similar goals. However, the opinion on the degree of impact, status, and economic viability of several emerging and converging technologies vary.

Contents
[hide] 1 Overview 2 Debate over emerging technologies 3 Acronyms 4 See also 5 Further reading 6 References 7 External links

[edit] Overview
Over centuries, innovative methods and new technologies are developed and opened up. Some of these technologies due to theoretical research, others due to commercial research and development.

Technological growth includes incremental developments and disruptive technologies. An example of the former was the gradual roll-out of DVD as a development intended to follow on from the previous optical technology Compact Disc. By contrast, disruptive technologies are those where a new method replaces the previous technology and make it redundant, for example the replacement of horse drawn carriages by automobiles. Emerging technologies in general denote significant technological developments that broach new territory in some significant way in their field. Examples of currently emerging technologies include information technology, nanotechnology, biotechnology, cognitive science, robotics, and artificial intelligence.[2] Converging technologies are a related topic, signifying areas where different disciplines are converging and to an extent merging or developing broad links, towards a common direction. Thus as computers become more powerful, and media becomes digitized, computing and media are described as being converging technologies.

[edit] Debate over emerging technologies

Many writers, including computer scientist Bill Joy, have identified clusters of technologies that they consider critical to humanity's future. Joy warns that the technology could be used by elites for good or evil. They could use it as "good shepherds" for the rest of humanity, or decide everyone else is superfluous and push for mass extinction of those made unnecessary by technology.[3] Advocates of the benefits of technological change typically see emerging and converging technologies as offering hope for the betterment of the human condition. However, critics of the risks of technological change, and even some advocates such as transhumanist philosopher Nick Bostrom, warn that some of these technologies could pose dangers, perhaps even contribute to the extinction of humanity itself; i.e., some of them could involve existential risks.[4][5] Much ethical debate centers on issues of distributive justice in allocating access to beneficial forms of technology. Some thinkers, such as environmental ethicist Bill McKibben, oppose the continuing development of advanced technology partly out of fear that its benefits will be distributed unequally in ways that could worsen the plight of the poor.[6] By contrast, inventor Ray Kurzweil is among techno-utopians who believe that emerging and converging technologies could and will eliminate poverty and abolish suffering.[7]

[edit] Acronyms
NBIC, an acronym for Nanotechnology, Biotechnology, Information technology and Cognitive science, is currently the most popular term for emerging and converging technologies, and was introduced into public discourse through the publication of Converging Technologies for Improving Human Performance, a report sponsored in part by the U.S. National Science Foundation.[8] Various other acronyms have been offered for the same concept such as GNR (Genetics, Nanotechnology and Robotics). Journalist Joel Garreau in Radical Evolution: The Promise and Peril of Enhancing Our Minds, Our Bodies and What It Means to Be Human uses "GRIN", for Genetic, Robotic, Information, and Nano processes,[9] while science journalist Douglas Mulhall in Our Molecular Future: How Nanotechnology, Robotics, Genetics and Artificial Intelligence

Will Transform Our World uses "GRAIN", for Genetics, Robotics, Artificial Intelligence, and Nanotechnology.[10] Another acronym coined by the appropriate technology organization ETC Group is "BANG" for "Bits, Atoms, Neurons, Genes".[11]

enabled Services ( ITeS )

The combination of a wide spectrum of information technology skills, industry knowledge and infrastructural strengths has enabled Bulwark Systems to execute a number of turnkey projects in different economic sectors. They include complex feasibility studies, software development, support and customisation, and the design and implementation of total turnkey solutions. Bulwark Systems has a strong infrastructure base, which includes in-house development platforms like Tandem, IBM, HP, Sun, Digital and NCR. Bulwark Systems's systems integration strategic business unit undertakes solutions deployment. This includes software development, software maintenance and support, turnkey project implementation and systems consultancy. Bulwarks continues to be one of the top three companies in domestic software solutions in India today. Service offerings

Systems study, design and development Systems engineering and integration Software design and development

Other services

Systems consultancy Software products and customised solutions Software maintenance

Infrastructure

Over 100 trained professionals with expertise on different platforms 100-strong real-time and embedded systems expert group

Experience in a range of areas like banking, finance, securities and insurance (BFSI), image processing and biometrics, SCADA solutions, real-time and embedded systems, eCommerce, eGovernance, mobile computing, multimedia, and large scale database solutions.

An information system (IS) is any combination of information technology and people's activities using that technology to support operations, management, and decision-making.[1] In a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. In this sense, the term is used to

refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes[2]. Some make a clear distinction between information systems,and computer systems ICT, and business processes. Information systems are distinct from information technology in that an information system is typically seen as having an ICT component. Information systems are also different from business processes. Information systems help to control the performance of business processes [3]. Alter argues for an information system as a special type of work system. A work system is a system in which humans and/or machines perform work using resources (including ICT) to produce specific products and/or services for customers. An information system is a work system whose activities are devoted to processing (capturing, transmitting, storing, retrieving, manipulating and displaying) information [4]. Part of the difficulty in defining the term information system is due to vagueness in the definition of related terms such as system and information. Beynon-Davies argues for a clearer terminology based in systemics and semiotics. He defines an information system as an example of a system concerned with the manipulation of signs. An information system is a type of sociotechnical system. An information system is a mediating construct between actions and technology [5] . As such, information systems inter-relate with data systems on the one hand and activity systems on the other. An information system is a form of communication system in which data represent and are processed as a form of social memory. An information system can also be considered a semi-formal language which supports human decision making and action. Information systems are the primary focus of study for the information systems discipline and for organisational informatics[6].