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Role of IT in Retail Sector
The Importance Of Information
Technology In The Retail Sector
• With the increasing globalization of retailing, both in terms of
their points-of-sale and their points-of-supply; the information
technology (IT) spend in the retail sector has increased
significantly. IT plays an increasingly important role in the
management of complex retail operations.
• Market knowledge, as well as control of data and information,
is key to obtaining a competitive advantage in the retail sector.
Markets are continuing to grow and become more complex;
the simple process of retailing has started to deploy more
advanced retail information systems to cope with all the
transactions involved.
IT involvement in Retail
• To increase the company’s ability to respond to the evolving
marketplace through enhanced speed and flexibility.
• To collect and analyze customer data while enhancing
differentiation.
• To work effectively; retailers need one system working across
stores (or even across national borders) to make sure the most
effective use of stock and improve business processes.
• Retailers are beginning to notice that technology’s role is one
of an enabler. Essentially, information technology can speed
up processes and deliver cost saving benefits to the company.
Challenges
• Customer data
Many retailers struggle with information overload because
they’re required to collect and sift through mass amounts of
data, then convert it into useful information in a customercentric industry.
• Transparency and tracking
Retailers must increase transparency between systems, as well
as obtain better tracking to integrate systems from
manufacturer through to the consumer while obtaining
customer and sales information.
• Global data synchronization
Due to radio frequency identification/electronic product coding,
the entire supply chain has become more intelligent. Retailers
must enable the use of real-time data to watch inventory levels.
In addition, radio frequency identification tagging positions the
company to be able to safeguard its shipments by allowing
products to be tracked from manufacturer through the entire
supply chain.
Definition of POS
• Point Of Sale. The physical location of a transaction
but usually refers to any device or system used to
record the transaction for the retailer.
• CPOS: A computer-based POS which employs
software to implement the POS functionality

6
Benefits of POS
POS System Cash Register
Inventory Control

Yes

No

Invoicing and Receiving

Yes

No

Interfacing with Accounting

Yes

No

Reports

Yes

No

Enforced accuracy

Yes

No

Integrated CC handling

Yes

Limited

General Ledger

Yes

No

Accounts Payable

Yes

No

Accounts Receivable

Yes

No

Preferred by tax consultants

Yes

No
7
POS Software:
•
•
•
•
•
•
•

User Interface
Inventory
Reports
Invoicing
Receivables
Accounts Payable
Credit Card Payments

8
POS Hardware-Components
•
•
•
•
•
•
•
•
•
•

Display / Touch screen
Cash Drawer
Receipt Printer
Bar code scanner (fixed, attached, portable)
Label / Report printer
Mag stripe reader
POS Keyboard
Scales
PDA
Pole Display

9
POS: Receipt Printer
Three Types
• Dot Matrix
• Thermal
• InkJet
Link
• Separate unit
• Integrated with other device

10
POS: Barcode scanner
• LED
• CCD
• Laser

• Fixed
• Attached
• Portable

11
POS: Typical Configuration
Connect cable between cash
drawer and receipt printer.
Note that ends are NOT the
same.
Plug keyboard into
‘Y’ cable. Plug
other connector
into keyboard port
on computer

Connect printer
interface cable to LPT1

Mag
stripe
reader

12
POS: Mag Stripe Reader
• Replaces the Retail Terminal
• Uses software to perform functions
• Usually connects to keyboard and barcode scanner

13
POS: Mag Stripe Reader
Track 1

Track 2

Normally encodes
the cardholder’s
name, card
number and card
expire date.

Also contains the
cardholder’s card
number and expire
date. This
provides data
redundancy on the
card.

14
POS: keyboard
A POS keyboard more closely resembles a cash register
key layout and usually has programmable keys. Some
have integrated card swipes.

15
POS: Portable Data Assistant
(PDA)
Portable data collection
• Inventory
• Audits
• Remote data entry
• Restaurants and lounges
• Lumber yards
• Remote inventory





Wireless
Docking station
Cable connected
16
POS: Scales
• Serial Port I/F to your PC
• POS Calculates total
• Desktop units / Built-in units

17
POS: Check Reader / Printer
• Magnetic ink character recognition (MICR)
• Requires POS Software support
• Requires bank / online authorization service

18
POS: Slip Printer
• Ideal for printing ‘Company
branded” slips and forms.
• Record keeping
• Warranty info, layaway
receipts
• Restaurants, Gas stations,
Retail stores
• Combo receipt / slip printers
available

19
POS: Pole Display
•
•
•
•

Item and price information
Customer comfort
Display Advertising
Serial Port I/F (RS-232)

• Characters per line / number of lines
• LED, Plasma
• Character sets (Chinese?)

20
Amazon Prime Air
• The goal of this new delivery system is to get packages into
customers' hands in 30 minutes or less using unmanned aerial
vehicles.
• Putting Prime Air into commercial use will take some number
of years as we advance the technology and wait for the
necessary FAA rules and regulations.
About to Fly
On Air
Prime Air Video
Role of IT in Retail Industry

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Role of IT in Retail Industry

  • 1. Role of IT in Retail Sector
  • 2. The Importance Of Information Technology In The Retail Sector • With the increasing globalization of retailing, both in terms of their points-of-sale and their points-of-supply; the information technology (IT) spend in the retail sector has increased significantly. IT plays an increasingly important role in the management of complex retail operations. • Market knowledge, as well as control of data and information, is key to obtaining a competitive advantage in the retail sector. Markets are continuing to grow and become more complex; the simple process of retailing has started to deploy more advanced retail information systems to cope with all the transactions involved.
  • 3. IT involvement in Retail • To increase the company’s ability to respond to the evolving marketplace through enhanced speed and flexibility. • To collect and analyze customer data while enhancing differentiation. • To work effectively; retailers need one system working across stores (or even across national borders) to make sure the most effective use of stock and improve business processes. • Retailers are beginning to notice that technology’s role is one of an enabler. Essentially, information technology can speed up processes and deliver cost saving benefits to the company.
  • 4. Challenges • Customer data Many retailers struggle with information overload because they’re required to collect and sift through mass amounts of data, then convert it into useful information in a customercentric industry. • Transparency and tracking Retailers must increase transparency between systems, as well as obtain better tracking to integrate systems from manufacturer through to the consumer while obtaining customer and sales information.
  • 5. • Global data synchronization Due to radio frequency identification/electronic product coding, the entire supply chain has become more intelligent. Retailers must enable the use of real-time data to watch inventory levels. In addition, radio frequency identification tagging positions the company to be able to safeguard its shipments by allowing products to be tracked from manufacturer through the entire supply chain.
  • 6. Definition of POS • Point Of Sale. The physical location of a transaction but usually refers to any device or system used to record the transaction for the retailer. • CPOS: A computer-based POS which employs software to implement the POS functionality 6
  • 7. Benefits of POS POS System Cash Register Inventory Control Yes No Invoicing and Receiving Yes No Interfacing with Accounting Yes No Reports Yes No Enforced accuracy Yes No Integrated CC handling Yes Limited General Ledger Yes No Accounts Payable Yes No Accounts Receivable Yes No Preferred by tax consultants Yes No 7
  • 9. POS Hardware-Components • • • • • • • • • • Display / Touch screen Cash Drawer Receipt Printer Bar code scanner (fixed, attached, portable) Label / Report printer Mag stripe reader POS Keyboard Scales PDA Pole Display 9
  • 10. POS: Receipt Printer Three Types • Dot Matrix • Thermal • InkJet Link • Separate unit • Integrated with other device 10
  • 11. POS: Barcode scanner • LED • CCD • Laser • Fixed • Attached • Portable 11
  • 12. POS: Typical Configuration Connect cable between cash drawer and receipt printer. Note that ends are NOT the same. Plug keyboard into ‘Y’ cable. Plug other connector into keyboard port on computer Connect printer interface cable to LPT1 Mag stripe reader 12
  • 13. POS: Mag Stripe Reader • Replaces the Retail Terminal • Uses software to perform functions • Usually connects to keyboard and barcode scanner 13
  • 14. POS: Mag Stripe Reader Track 1 Track 2 Normally encodes the cardholder’s name, card number and card expire date. Also contains the cardholder’s card number and expire date. This provides data redundancy on the card. 14
  • 15. POS: keyboard A POS keyboard more closely resembles a cash register key layout and usually has programmable keys. Some have integrated card swipes. 15
  • 16. POS: Portable Data Assistant (PDA) Portable data collection • Inventory • Audits • Remote data entry • Restaurants and lounges • Lumber yards • Remote inventory    Wireless Docking station Cable connected 16
  • 17. POS: Scales • Serial Port I/F to your PC • POS Calculates total • Desktop units / Built-in units 17
  • 18. POS: Check Reader / Printer • Magnetic ink character recognition (MICR) • Requires POS Software support • Requires bank / online authorization service 18
  • 19. POS: Slip Printer • Ideal for printing ‘Company branded” slips and forms. • Record keeping • Warranty info, layaway receipts • Restaurants, Gas stations, Retail stores • Combo receipt / slip printers available 19
  • 20. POS: Pole Display • • • • Item and price information Customer comfort Display Advertising Serial Port I/F (RS-232) • Characters per line / number of lines • LED, Plasma • Character sets (Chinese?) 20
  • 21.
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  • 24. Amazon Prime Air • The goal of this new delivery system is to get packages into customers' hands in 30 minutes or less using unmanned aerial vehicles. • Putting Prime Air into commercial use will take some number of years as we advance the technology and wait for the necessary FAA rules and regulations.
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