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Introduction

The Central Supermarket is a well known and self-service supermarket which is owned by Mr.
Baichoo Ramlokun. It deals with the buyin and sellin of perishable and non-perishable oods.
The business started to operate since !ctober "##$.
The location of the supermarket remains strateic as it lies in a true commercial place at the
center of Riviere du Rempart. %lso it is a place where there is a reat presence of residential
areas and as well attracts tourists from the coastal villaes like Roches &oires' (ost )afayette'
(oudre d*or and many others. Besides' it was the first supermarket set up in this location which
had no competitors apart from corner shops but with time there are various competitors that have
crop up.
The supermarket is now the larest one in Riviere +u Rempart and it is very modern with full
scannin facilities' air-conditionin and refrierated cabinets. In this era of information
technoloy' information has become valuable orani,ational asset -ust like human resources and
inventories. Takin into consideration the importance and benefits of information systems and
technoloies .IS/ IT0' Mr Baichoo started usin IS/IT a few years after it started business. The
hierarchy of the supermarket consists of the Top manaement' IT department' %ccounts
department' Trainin Manaer' the Marketin Manaer' Sales !fficers' Sales %ttendants'
Storekeepers and Security !fficers.
Information systems can be powerful tools for business. The key is havin current data converted
to useful information and havin that delivered to people who can act upon it before it*s too late.
If the information is delivered too slowly then it is only a lesson learned rather than profitable
opportunity.
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Aims and objectives to be achieved
To reduce costs and achieve hiher benefits and profits
To shift from supply push to demand pull
To enhance the relationship between the orani,ation and its customers' suppliers and the
other players of the supermarket
To minimise risks and errors in order to have a better stock control
To be more environmental concerned' that is oin for reen environment' by reducin
paper costs
To improve the performance of the supermarket*s employees throuh more trainin
To do tanible and intanible way of doin business
To make sure the riht information is reached to the riht person at the riht time.
Each level of the Supermarket requires different type of information and information
systems.
At the Strategical level:
Information system used: Executive Support System ESS!
The 1SS is the desined specifically for the information needs of strateic manaers. It
provides these maners to drill down to detailed information.
Information required2 the chief e3ecutives receive information in summari,ed forms.
4or e3ample' they need to know the profit made durin a particular year in order to
decide whether they need to take more actions to increase profit ne3t year.
At the tactical level:
Information systems used: "anagement Information System "IS! and #ecision
Support Systems
The MIS is a software that supports manaement decision makin by providin
information in the form of reports and responses to 5ueries to manaers at the different
levels of the orani,ation.
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The +SS helps manaers by analy,in data from a database and providin the results of
analysis to the manaer
Information required: the manaer of a particular department needs information on the
total order cost for each department so that he can make arranements to pay suppliers.
At the operational level:
Information systems used: Transaction processin System .T(S0
Information required: workers need to know the price of products to be able to put
them on the products or the shelves.
The T(S consists of keepin records' processin transactions and producin outputs.
External $orces affecting the Supermarket
Suppliers
Suppliers are an important link in the 6value delivery system.7 They provide the supermarket
with the necessary oods. Since the owner keeps ood relationships with its suppliers' they
offer discounts and credit facilities when there is bulk buyin. 8henever there is any
shortae of a particular product' the supplier supplyin that product is immediately contacted
and he will do his best that we received the products on time and in ood condition.
9owever' if an e3istin or a new supplier does not deliver products on time' the supermarket
can have inventory problem and this will tarnish its reputation. In order to avoid this
problem' the owner has adopted the approach of Supply Chain Manaement .SCM0' that is'
focus also oes on helpin the supermarket to manae its relationship with its suppliers.
Moreover' by usin the :ust-In-Time inventory' there is a control on inventory and the risk of
oods bein damaed or e3pired is less. These two approaches are included in 8ave "'
reducin costs.
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Customers
4or the runnin and the success of Central Supermarket' Mr. Baichoo always tries to identify
the needs and wants of his customers. %s customers* tastes chane with time' in order to
keep track of the chanes and to address them in more efficient and effective way' Mr.
Baichoo uses environment monitorin process. This scientific process comprises of two
essential staes which are environment scannin and environment analysis. The outcome of
these two staes is detailed and interpreted information of the factors that can influence
customer behaviour both positively and neatively.
If for e3ample' there is a new product on the market which is non-fat. %s people are health
conscious nowadays' they*ll prefer to buy the non-fat product. If the Central Supermarket
does not provide them with this new product' they*ll o to another supermarket. 9ence' Mr.
Baichoo always tries to identify the wants of their customers and provides them with new
products available on the markets as consumers are always impulse to buy innovative
products. In addition' Customer Relationship Model .CRM0 is also used by the business to
keep track of e3istin and new customers and to identify which products are fre5uently
bouht by customers. CRM is included in 8ave $
%ompetitors
Competitors are those who serve a taret market with products and services that are viewed
by consumers as bein reasonable substitutes. Competition focuses on two tools which are
price and non-price factors. Competitors of the Central Supermarket are hypermarkets such
as :umbo' small shops and reional stores. 9ypermarkets are likely to meet the rowin
needs of more affluent consumers; meetin the risin affluence and education levels'
consumers* shoppin and eatin lifestyles. Reional supermarkets are similar businesses
such as Central Supermarket competin at same place.
%lso' Reional supermarkets are very competitive aainst price. Rival businesses can place
discounts' promotions' linkslaves for instance' 6buy product % and et product B for free7 in
order to attract customers towards them. %s a result' as customers seek to ma3imi,e utility or
well bein. Therefore' customers will be pulled towards substitutes at low prices. In this
situation' Central Supermarket should start to lower down prices on substitute products to
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foresee hih level of customers. Besides' another reional competitor can erect where it will
be located near fast food' petrol stations which can attract customers.
Economical
It involves the study of economic factors such as inflation' employment' disposable income
and so on. Mr. Baichoo always takes these factors and the economic stae of the country into
consideration when determinin the price of products.
If Mauritius will face a recession in years to come' the purchasin power of consumers will
decrease' there may be hih unemployment. 9ence' people will spend more on necessities
rather than on lu3ury oods. %s the country will be facin such economic stae' Mr. Baichoo
should review his pricin policy of products as the disposable income of the consumers will
be low. If he increases the price of the necessities' the customers will prefer to purchase
somewhere else.
&echnological
%s technoloy chane' the supermarket has to adapt to this chane and the business stratey
also need to be reviewed. If it doesn*t keep pace with technoloical chane' then it will not
be able to cope with new challenes' difficulties and customers* demand. The IT department
always keeps track of new technoloies emerin on the market and tests whether they are
compatible with the current business structure. The business cannot move directly to new
technoloy' it needs to pass throuh research and testin. Besides' use of IT/ IS helps the
firm to communicate effectively with suppliers' customers and others. The owner sometimes
buys software which is less costly compared to in house development of the software. Thus'
The Supermarket is addicted to IT
'hysical()atural
(hysical and natural disasters can also affect the supermarket. 4or e3ample' if there is
cyclone for several days' most people will not take the risk to o out and shop. The
Supermarket also will not be able to open durin such bad weathers. Thus' it will not be
makin profit durin those days.
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%nother impact can be if the supermarket cauht fire' most oods' systems and important
data will be destroyed. 9owever' throuh the distributed system' the supermarket will no o
for complete loss.
'olitical(*egal
The political factor has a hue influence upon the reulation of the business' and the
spendin power of consumers and other business. The supermarket has to strictly abide
by all laws for e3ample' payin ta3' else it can be sued which can result in loss of
reputation. Customer complaints are taken seriously so as to avoid them to seek leal
redress and help from Consumer (rotection Institutions.
Internal factors
Employees and others
1mployees are valuable assets of the supermarket system. 8ithout them the supermarket can
face losses. 4or e3ample' the knowlede workers also known as the intellectual capitals provide
innovative ideas and advice the owner in which system it is best to invest. Staffs at low level
who et into direct communication with customers' they know better what customers demands
are. 4urthermore' continuous trainin must be provided to the employees at all levels in order
for them to adapt to technoloy and business chane. Besides' the supermarket operates in a real
time situation which involves real-time data warehouse system.
&he #ata +arehouse
!perational systems are able to enerate a lare amount of data to support the transactional
operations of the supermarket. The data enerated by these systems is fresh and valuable; as
well' it can be very diverse and heteroeneous' and can come from a wide variety of sources. In
order to solve the problem .atherin' interatin' cleanin' and analy,in this heteroeneous
information0' a new software system was developed' that is' the data warehouse.
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% collection of sub-ect-oriented' interated' time-variant' and non-volatile data is what we can
call a data warehouse. This data is used to support the decision-makin process of the
orani,ation<s manaement team. The data warehouse is used to interate all of the
orani,ation<s historical data and has the ability to store snapshots of its transactions. %ll
information enerated from the operational data source is e3tracted' cleansed' transformed' and
loaded into the data warehouse. !nce in the data warehouse' the data can be sub-ect to a wide
rane of analysis and e3ploration processes.
The Supermarket wants to e3pand the real time situation by investin in customer information
control systems .CICSs0. The reasons to invest in this real-time system are that this system has
the ability to respond to user actions in a very short period of time' it has special features such as
instant interaction2 when users will re5uest information from the system and they will receive the
answer immediately. %lso' users will have the possibility to remain connected .online0 so they
can start this interaction with the system anytime=which is called an online transaction
processin .!)T(0 system. Throuh the use of this system' customers will be able to place
orders' buy products on their own and use the self and discovery services to be provided by the
supermarket.
+aves of innovation
In order to eliminate the issue of e3cessive inventory' leverain investment in Customer
Relationship Manaement .CRM0 can be useful. CRM will help identify and taret their best
customers' enerate 5uality sales leads' and plan and implement marketin campains with clear
oals and ob-ectives. %lso it will help form individuali,ed relationships with customers .to
improve customer satisfaction0 and provide the hihest level of customer service to the most
profitable customers. In addition' it will provide employees with the information they need to
know their customers< wants and needs' and build relationships between the company and its
customers. Customer relationship manaement tools include software and browser-based
applications that collect and orani,e information about customers. 4or instance' as part of their
CRM stratey' Central Supermarket miht use a database of customer information to help
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construct a customer satisfaction survey' or decide which new product their customers miht be
interested in.
Supply Chain Manaement .SCM0 will improve the way Baichoo supermarket finds its products
to sell and deliver it to customers. The timely and accurate supply chain information is the ability
to order only as much of a product as there is a market for. This is the practice known as -ust-in-
time inventory manaement' and will it allow the supermarket to reduce the amount of inventory
that it keeps. This can cut costs substantially' since the supermarket no loner needs to pay to
produce and store e3cess oods. SCM is efficient interation of suppliers' warehouses and stores'
in addition of orderin riht 5uantities it also facilitate to distributed to the riht location at the
riht time' so as to minimi,e total system cost while satisfyin service re5uirements.
Creation of the Supermarket website will help it to become more competitive in the market.
Staffs can make online order and they can also make online order and the customers also can
make online shoppin thus bypassin the cost of papers for purchasin order and sales order and
invoices. In addition it can market its products via the internet thus enhancin the services. The
customers can purchase the product online without comin on the spot and they will also be able
to add products in their shoppin carts. This facility will allow them to purchase their products
whenever they want. This will also reduce the cost of advertisement. %s a result of oin online'
Central supermarket can chane its approaches to stockin its various warehouses. 9ih volume
products or products for which the demand can be matched with supply' can be stocked locally in
the stores' while low volume products are stocked centrally for online purchasin.
Trainin the staff to handle problems on spot will save time and it will also be a way to enhance
service. The customer will not be at a loss when error will be made by the staff. 4or instance if a
product is counted twice then it can be solved in second. There is no need to depend on an e3pert
to solve the problem.
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Strategic use of I&
>se of the Internet by businesses set off a revolution in the use of IT' so that utili,in the Internet
to conduct business became the strateic use of information technoloy.
Strateic roles of IT fall into one of three cateories2
68orkin inward7 .improvin a firm*s internal processes and structure0'
68orkin outward7 .improvin the firm*s products and relationships with customers0'
68orkin across7 .improvin its processes and relationships with its business partners0.
+orking In,ards: -usiness.to.Employee
The aim of usin IT strateically inside enterprise is to improve business processes. The primary
electronic means to reach employees is throuh intranet.
Creatin an intranet will help faster access to information and updates will allow the employees
to make 5uicker decisions and take actions' thus improvin the overall productivity of the
supermarket. Intranet applications will facilitate accurate flow of tareted information across
verticals and hori,ontals' which could possibly reduce number of emails floatin around in an
orani,ation. Important policy documents' trainin materials' company knowlede documents
can be maintained on the intranet application and can be accessed from a sinle source when
re5uired. %nd also there is no need to maintain physical copies of information or other
documents and hence intranet applications prove to be cost effective solutions. The supermarket
also makes use of a corporate portal' that is' a ateway which allows only authori,ed employees
to have access to certain information.
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In addition' more and more people are workin from their homes nowadays. Information
technoloy has become so sophisticated it allows people to choose to work from home.
Teleconferencin and video conferencin enable employees to beam in whenever needed. In
addition to that' information technoloy can allow a firm to reduce costs. Takin 1rnst ?@oun
for e3ample' the company has successfully reduced its office space by $ million s5uare feet by
allowin their employees to work from home.
Thus' the Supermarket intends make use of teleconferencin in order to reduce office costs. That
is' enablin some employees to work away from the supermarket.
+orking /ut,ard: -usiness.to.%ustomer
In most industries companies need sophisticated computer systems to compete. 8ith B$C' e-
business will eliminate the eoraphic boundaries and can et closer to its customers with
improved customer service and customi,ed response. They can provide $A hours a day and B
days a week service. 8ith the customer service and personalised attention it can increase
customer loyalty. They can directly to the customers thus bypassin the retailers and distributors.
By makin leverain investment in CRM systems it can know much more about customers .and
perhaps non-customers0.
+orking Across: -usiness.to.-usiness
Streamlinin process is a vital process for any type of orani,ation. Reformin process bein of
internal processes is very time consumin' remains the main challene for manaement to
reorani,e its process cross the business boundaries which often stop at the corporate walls.
8orkin across business takes many forms2
8orkin with Co-suppliers
8orkin with customers in close mutually dependent relationship
Buildin a virtual enterprise that miht evolve into an 1-market place.
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Central supermarket stays in touch with its customers and suppliers via electronic mailin and
internet. Skype I( phone and MS& 8indows Messener are also bein used to communicate
amon them.
Skype is a software which works seamlessly with the internet connection. 8ith Skype Central
supermarket will be able to make calls over the internet to other employees on Skype as lon as
it is re5uired without worryin about time or distance. They can also make local' lon distance
and international calls to phones and mobiles. Skype is also used to chat and make video calls.
*evels of System Integration
The supermarket has a mi3ed relationship with various people involved in the supermarket.
In loose interation' one party provides another party with ad hoc access to its internal
information. The information may or may not be confidential' and it is accessed when it is
needed. Such limited interation re5uires little risk and cost. It is better to establish loose
interation with employees so that if ever they leave the -ob they will not take alon with them
confidential data.
In close interation' two parties e3chane information in a formal manner. Some of that
information is probably confidential' and althouh the two parties* processes are distinct' they do
handle some tasks -ointly. This level of interation leads to reater benefits' but risks do increase
because confidentialities are shared. Costs of interation are also hiher than in loose interation.
Close interation is maintained with customers.
In tiht interation' two parties share at least one business process' as partners' in a business area
that is important to both. %n orani,ation will probably have few tihtly interated relationships
due to their hih cost and risk. !n the other hand' an orani,ation could create many loosely
interated relationships because of their low cost and risk' but would find that the benefits from
these relationships are fairly minimal. Such interation should be kept with other businesses due
to competition.
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IS 'lanning
(lannin is an essential activity in the business manaement. This activity involves determines
what should be done. 9owever due to turbulent business environment' plannin remains a
difficult task. %ccordin to Tari5 Siddi5ue' if you are failin to plan' you are plannin to fail.
(lannin in information system and technoloy involves determinin what systems will be
developed and what technoloy will be used in the future.
Systems plannin are very important and difficult. There are B plannin techni5ues available to
help IS e3ecutives do better -ob in plannin. If an orani,ation follows these B techni5ues then it
can o for a success. The B plannin techni5ues are2
Staes of Crowth
Critical Success 4actors
Competitive 4orces Model
Dalue Chain %nalysis
Internet Dalue Matri3
)inkae %nalysis (lannin
Scenario (lannin
The supermarket makes use of some of the plannin techni5ues wherever it is applicable.
%ritical Success $actors %S$!
4or each e3ecutive' CS4s are the few key areas of -ob where thins must o well for an
orani,ation to succeed. Most manaers identify factors that represent areas that need special
and continual attention to brin about hih performance. The manaer of the supermarket should
be concerned about these four critical success factors2
9ave the riht product mi3 available at each store
Eeep it on the shelves
(rovide effective advertisin to attract shoppers to the store
+evelop correct pricin
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%ompetitive $orces "odel
%ccordin to (orter there are five areas of the e3ternal environment that affect the profitability of
the firm. Companies must compete with these F forces2
&hreat of )e, Entrants
8inners' Super > and other supermarket chains put up considerable barriers to entry. %nyone
startin up a new supermarket chain has barriers imposed on them' implicitly or e3plicitly' by the
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e3istin supermarkets. The most common forms of entry barriers' e3cept intrinsic physical or
leal obstacles' are as follows2
1conomies of scale2 for e3ample' benefits associated with bulk purchasin;
Cost of entry2 for e3ample' investment into technoloy;
+istribution channels2 for e3ample' ease of access for competitors;
Cost advantaes not related to the si,e of the company2 for e3ample' contacts and
e3pertise;
Covernment leislations2 for e3ample' introduction of new laws miht weaken
company*s competitive position;
+ifferentiation2 for e3ample' certain brand that cannot be copied .The Champane0
-argaining 'o,er of buyers
Buyers always seek lower prices and barain for hih 5uality products. They act to force prices
down. If a product is too e3pensive in a supermarket then they will obviously o in another one
where they will et cheaper price. There are web based auction sites and shoppin bots ivin
buyers more shoppin options and more information about potential suppliers which increases
the barainin power of buyers.
-argaining 'o,er of Suppliers
Supplier power is an important part of the (orters five forces model. Supplier power is wielded
by suppliers demandin that retailers pay a certain price for their oods. If retailers don<t pay the
price' they don<t et the oods to sell. But lare supermarkets have an overwhelmin advantae
over the small shopkeeper=they can reduce the price they pay the supplier. 9owever' stron
suppliers can push prices of their oods hiher than the firm wants to pay and reduce the profit
marins.
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Barainin power of suppliers e3ists in the followin situations2
8here the switchin costs are hih .switchin from one Internet provider to another0;
9ih power of brands .coca cola0;
Substitute products ( services
Ceneral substitution is able to reduce demand for a particular product' as there is a threat of
consumers switchin to the alternatives (orter M. ."#GH0. 4or e3ample' you don*t like the
facelessness of a supermarket' you could choose to shop at a small rocery shops. In this case'
Central supermarket can try to ac5uire e3istin small-scale operations and openin stores in local
towns and city centers. Since the supermarket will purchase in bulk and ain hue discounts' its
price will be lower compared to the small stores who are unable to ain these hue discounts.
Intensity of rivalry among competitors
The intensity of rivalry' which is the most obvious of the five forces in an industry' helps
determine the e3tent to which the value created by an industry will be scattered throuh head-to-
head competition. The most valuable contribution of (orter<s 6five forces7 framework in this
issue may be its suestion that rivalry' while important' is only one of several forces that
determine industry attractiveness. +eree of rivalry is most likely to be hih in those industries
where there is a threat of substitute products; and e3istin power of suppliers and buyers in the
market.
&he 0eneric Strategies
So the analysis is finished but the industry isn<t all that profitable. So how come there are still
some firms makin profitsI Surely they should all be strulin toether ettin similar returnsI
(orter suests that any firm can be profitable in any industry .even those unprofitable ones0' it
all depends on the stratey that the firm adopts. There are three sinificant strateies that any
firm can follow to improve their profitability. The firms that fail are those that do not follow any
stratey' or try to follow both. These firms et <stuck in the middle<.
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-e the lo,est cost producer
The first stratey of cost leadership is one in which Central supermarket can strive to have the
lowest costs in the industry and offer its products and services to a broad market at the lowest
prices. This stratey will be based on the Central supermarket<s ability to control their operatin
costs so well that they are able to price their products competitively and be able to enerate hih
profit marins' thus havin a sinificant competitive advantae.
#ifferentiation product or services
If the supermarket uses another stratey of differentiation' than it has to try to offer services and
products with uni5ue features that customers value. The central supermarket will be able to
create brand loyalty for their offerins' and thus' price inelasticity on the part of buyers. Breadth
of product offerins' technoloy' special features' or customer service are popular approaches to
differentiation.
$ind a niche
The last stratey of focus can be either a cost leadership or differentiation stratey aimed toward
a narrow' focused market. In accordance to this framework' while both overall cost leadership
and differentiation strateies are aimed at the broad market' firms may also choose to confine
their product to specific market areas or may choose to offer a smaller line of products to the
broad market' thus pursuin a stratey of focus or niche. Central supermarket sells its products to
middle class people.
#istributed System
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% distributed system is a collection of multiple and platform independent computers which are
connected throuh a network to produce an interated computin facility. It also allows better
communication by havin the necessary software' hardware and communication e5uipments
situated at the different locations. In this situation' the user perceives the system as sinle-user
system thouh it is a multiple user system.
The owner has e3panded its business and remains close to its customers throuh the distributed
system. The supermarket is distributed at different locations namely in the 8est' 1ast and south.
Since the supermarket has more than FH employees' some employees work at the distributed
supermarket whichever is closest to them from their home. % copy of customer' supplier and
other relevant information is kept at each location to facilitate transactions and to be able to keep
contact with the centrali,ed Supermarket' that is' the supermarket head office. The supermarket
uses a distributed for the followin reasons2
To taret a lare roup of customers at different reions throuhout the country
Reduce air pollution and traffic conestion as not all customers will o to the centrali,ed
supermarket
To et more contact into e3istin and new suppliers and customers
To ain competitive advantae in the market
If ever a disaster happens at any of the distributed system or centrali,ed' the supermarket
will still be runnin
#istributed #atabase
% distributed database is one where the database distributed at different sites. Information is
distributed at different locations where user can access the data at any of the locations. There are
two types of distributed database2
+ivide the database and distribute its portion throuhout the system without duplicatin
the data
Replicate the data at several locations
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4or the supermarket system' a copy of the database will be kept at different locations. In this
way' the supermarket will be able to use a computer database to keep track of which products
sell best.
1easons for replication:
To have reliability and efficiency of fast read only 5ueries
By replicatin the database to multiple servers' we can ensure that the data is always
available even if there is some hardware' software or network problems. That is' if ever
one location is affected' other locations won*t be affected' we can still et the data at
other locations' the supermarket won*t o for total loss.
Better performance' reduced response times and faster access to data. >ser can access
the data close to him thus improvin the server response time.
4or security reasons' the supermarket makes use of a +isaster Recovery (lan' that is' in case a
disaster happens at any of the locations' every body workin in the supermarket knows what to
do' there is someone responsible for retrievin the data' another one for back up. 4or e3ample'
the supermarket system uses C!&ST%&T-SC%&
SM
4%I)S%41 %RC9IT1CT>R1' a system
which ensures that all (!S data is captured' enablin all (!S lanes to remain fully operational in
the event of server or network failure and it also ensures that customers do not pay twice.
)et,orking
&elecommunication
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Telecommunication refers to all types of data transmission' from voice to video. It is the
e3chane of information over sinificant distances by electronic means. % complete' sinle
telecommunication circuit consists of two stations' each e5uipped with a transmitter and a
receiver. The transmitter and receiver at any station may be combined into a sinle device called
a transceiver. The medium of sinal transmission can be electrical wire or cable .also known as
copper0' optical fiber or electromanetic fields. The free-space transmission and reception of data
by means of electromanetic fields is called wireless.
The Supermarket depends on technoloy and telecommunication assets to communicate' learn'
sell' buy' and collaborate. It makes use of both telephone and computer networks. The
telephone networks consist of MyT which is the internet service provider .IS(0' Skype' Do+
services.
8hen it became evident to the information systems manaer that the supermarket needed a better
way to communicate with the various players of the orani,ation worldwide' he implemented
videoconferencin' a rapidly maturin technoloy that has become more affordable since it
emered more than $H years ao. The videoconferencin system takes advantae of the
Interated Services +iital &etwork .IS+&0' an enhanced phone line that can handle "$G'HHH
bits of data' voice' or video information per second--or any combination of the three.
2ideo %onferencing
It is a facility that links at least two computers toether with a diital video camera. It enables
meetin to be set up between a roups of people without havin them physically present round a
table. Since the supermarket makes use of Dideo Conferencin' this proves more useful for top
manaement to communicate to the other distributed supermarkets.
/vervie, of &echnologies used ,ithin the supermarket
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1(!S J This 1lectronic (oint of Sales J It is comprised of a keyboard' a diital display' a
barcode reader' a printer' a credit/debit card reader and a till drawer.
>(C J >niversal (roduct Code J It is a barcode symboloy that is widely used for
trackin trade items in stores
S1C J Shelf 1de Computers J It is used for price chanes' creatin stock pictures
.information on stock totals0 and for forecastin deliveries.
14T J 1lectronic 4unds Transfer J the computer-based systems used to perform financial
transactions electronically
1+I- 1lectronic +ata Interchane- is an automated process for e3chanin business
o information between the supermarket and other parties throuh the use of
computers and telecommunication links.
Barcode Reader- It is a laser scanner that reads the reflected laser liht from a series of
dark and liht coloured lines of varyin thickness.
:ust-In-Time Stock- It is a means to control the buyin' orderin and sellin of oods
Electronic 'oint of Sales E'/S!
)ocated at each checkout is an 1)1CTR!&IC (!I&T !4 S%)1 .1(!S0. 1ach till also
has its own base to which all of the above is attached.
It is the base unit which is connected by cables to the branch computer in the
supermarket<s system office.
9elps to process the most popular products from the warehouse to the point of sales in
the shortest time
(rovides fast' accurate transactions and thus increases the business*s bottom line.
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9elps to manae stock and thus could prevent losses due to product e3piration or
damae.
3niversal 'roduct %ode 3'%!
8orks hand in hand 8ith the 1(!S
Identifies a product' its oriin and cost.
9elps manae stock efficiently
(rovides an easy way to update the cost of the products without the need to re-label each
of the individual products.
)eads to faster checkout times and thus leads to customer satisfaction.
Shelf Edge %omputers SE%!
%dministrative and stock control staffs have access to S1C and it fits flawlessly with
product >(Cs and 1(!S systems.
Manae the stock levels and keeps the business from purchasin to much stock and
runnin the risk of losses to spoilin.
1asy way to conduct inventory and provide customers with the freshest products.
Electronic $unds &ransfer E$&!
The process of usin payment cards .credit cards' debit cards' etc0 to pay for products.
The cashier enters the customer credit card data into his system by swipin the card
throuh the manetic stripe reader' pluin it into a smart card reader or keyin in the
data manually.
Speeds up the transfer of money and thus increases the overall sales fiures of the
business.
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(rovides a convenience to the customer
4ust. In. &ime Stock
The K-ust-in-time* system takes advantae of a stock information system. %s products
pass throuh the electronic points of sales .1(!S0' the relevant data is sent to a database
containin information about stock levels. 8hen stock falls below a set level more
products are ordered.
Thus only a bare minimum of necessary stock is ordered and there is no need to maintain
a lare' fully stocked warehouse. This is a means of reducin cost in 8%D1 "
Employee 1esource &echnologies
Monitors employee*s hours and when they clocked in and out.
Improves employee efficiency and thus increases the bottom line of the business.
Eeeps a constant eye on employees* activities and in the event of a contradiction could
absolve the employer or the employee of any wron doin.
-arcode reader
The bar codes on products are read by the 1(!S tills at the checkouts. This is achieved
by usin a barcode reader which sends out infra-red laser beams via a set of mirrors'
enablin the bar code to be read at most anles.
8hen an item is passed over the barcode reader' the black and white parts of the code are
detected by the laser' as the black parts reflect very little liht whilst the white parts
reflect most of the liht. This is converted into electrical pulses which are sent alon the
cables to the branch computer. The branch computer then searches its stock file for the
product matchin the item number.
8hen this record is located the price and description of the product is e3tracted and sent
back to the 1(!S till at the checkout. It then shows this item and price on the diital
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display' prints them on a receipt and adds the price to the total. %t the same time' the
branch computer records that one of this item has been sold.
Electronic #ata Interchange
>sin 1+I eliminates the need of paper work' since the orderin is done by data bein
transferred between the supplier<s computer and supermarket*s computer' this is another
means of reducin cost in 8ave ".
% feature of 1+I is the ability to encrypt the information so that hackers are not able to
view the content even if they try to intercept a transmission.
%ontrol Systems
Computers are also used to control the free,ers and chillers throuhout the store.
In the warehouse' the lare free,ers have to be kept within a certain temperature rane.
This is achieved by havin temperature sensors inside each free,er which monitor the
conditions and switch the coolin motor on.
%omputer )et,orks used in the supermarket
)%& J )ocal %rea &etwork J It is an interconnection of computers restricted to a small
area like a home' buildin or office
*ocal Area )et,ork *A)!
The supermarket uses several computers which are located in a room known as the
system office and form the supermarkets own )ocal %rea &etwork. These computers are
used to control the stock and are connected to the checkouts. The computers are
multifunctional' and each can access the data' which ives the manaement a number of
access points.
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Si3 branch computers are linked to the 1(!S terminals at the checkout area they all
record information about items sold and provide backup for each other also' it is linked
via satellite links to a lare main computer.
Makes data transfer simpler and less intrusive due to the lack of wires.
+ide Area )et,ork +A)!
8ide %rea &etwork J It is an interconnection of computers spread over a wide
eoraphical area.
Since the supermarket system uses a distributed system' the Chief Information !fficer
.CI!0 states that a 8ide %rea &etwork .8%&0 needs to be developed to serve the
followin purposes2
The information on the branch computers can thus be linked via satellite links to a lare
main computer housed at the supermarkets head office.
To allow streamlines communication between the main office and the different branches
of the supermarket and distributors' suppliers.
%ll branches of the supermarket will be linked in this way to the central .main0 computer
and this is an e3ample of an e3tranet.
#ata &ransmission
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The supermarket makes use of parallel transmission to send data. The data is sent
simultaneously alon different wires' one bit per wire thus data transfer is fast. To allow
hih speed secure data transmission and internet connection' the T )ines are also used.
There are two ways of sendin data alon a network. These are2
(acket Switchin.
Circuit Switchin
In a packet switchin system' a messae is divided into a series of e5ual si,e packet. The
packets can travel alon different lines. It does not involve a route to be established before
individual packets are sent onto the network.
Circuit switchin means that the whole messae is kept toether so it does not need to be
reassembled at the destination. It re5uires a route to be established before transmission.
The supermarket makes use of packet switchin for data transmission instead of circuit switchin
as it is easier for a hacker to hack a circuit switchin system rather than a packet switchin
system.
4or an effective and reliable network' the network used in the supermarket consists of a switch'
hubs' protocols' and socket.
S,itch: The switch allows many computers to use the same communication line at
different times
5ub: % hub is a device at the center of a network. It connects all the computers and
other devices in the network to the central file server. 8henever data is transmitted to the
server from a compute/workstation' it is sent via a hub.
1outer:The Chief Information officer alon with top manaement decided that to be able
to connect the )%& and 8%&' a router will be used. % router is a communication device
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that receives every packet of data bein received' reads the header of the packet and then
sends it alon the appropriate cable to its destination.
'rotocol: It is a set of rules which allows devices from different manufacturers to
communicate. 4or e3ample' there are rules on how data is oin to be transferred from
one place to another.
Socket: % socket is a proram that sends and receives data alon a network. It acts like a
port in that it is an identifiable entry and e3it point for other devices.
The supermarket also makes use of an open network. Throuh this type of network' products of
many manufacturers can be attached to it. Besides' the supermarket also makes use of the /SI
1eference "odel as it has the aim of usin a sinle' common and worldwide standard. The !SI
reference model recommends functions to be performed in each of the followin layer.
&he different layers of the /SI reference model used in the supermarket net,ork
Application layer: The supermarket makes use of 4T(' 9TT( (rotocols and has now
decided to use Session Initiation (rotocol .SI(0 also in order to allow this layer to interact
with application whenever the user chooses to transfer files' read messaes or perform
other network activities.
The 4ile Transfer (rotocol .4T(0 provides the different rules when downloadin file from
the internet or uploadin a web pae on the internet.
The 9yperte3t Transfer (rotocol is a set of rules overnin the e3chane of different
types of files that made up displayin web paes
The SI( application-layer protocol allows for the creation and manaement of multimedia
communication sessions between devices.
'resentation *ayer: Takes data provided by application layer and converts it into
standard format that other layers can understand. 13ample' &etBI!S
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Session *ayer: This layer establishes connection to the server and arees upon the
protocol to be used. It transfers the data and closes the connection. 13ample is the SS)
&ransport *ayer: This layer splits the data into suitable packets' determines the actual
transmission type that is oin to be used and reassembled the packets. It also ensures
that there are no errors in the packet.
The TC( is used in the supermarket network.
The Transmission Control (rotocol .TC(0 relates to the set of rules that overns the
transmission of data around the internet and is split into packets.
)et,ork *ayer: The &etwork )ayer defines the network addresses of devices that sends
and receives data. It also handles the routine of packets bein sent and received. The
internet protocol is used in this case.
#ata link layer: This layer identifies what network topoloy is bein used and can
identify transmission errors. The %synchronous Transfer Mode .%TM0 is used to
transmit data' video and audio over the same network.
'hysical *ayer: This defines the physical characteristics of the network such as
connections' voltae levels and timin. Twisted pair and fibre- optic cable is used in this
layer.
+ireless )et,ork
>se of wireless technoloy will help Central supermarket to advance in many ways. It can cut
costs and increase fle3ibility. The employees can use laptops instead of personal computers so
that they can carry them anywhere. If there is any pendin work they can complete at home
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instead of stayin in the office till late or if they are travellin they can do their work. They don*t
have to be dependent on the particular computer.
Contemporary supply chain manaement .SCM0 systems are a fertile area for mobile wireless
technoloy because of the need to provide simultaneous' accurate information about demand'
supply' production' and loistics as oods move amon supply chain partners. SCM software
vendors include capabilities for mobile support and wireless capture of data on movements of
oods and other events.
Central supermarket can invest on myS%( Supply Chain Manaement software. It offers a
number of mobile capabilities. Manufacturin employees can view work instructions on wireless
handheld devices anywhere on the factory floor. Supervisors can use wireless handhelds to call
up data from process control systems to monitor production-line behavior.
If Central supermarket needs to deliver oods' it can use myS%( SCM to create a delivery order
and tender it to a selected freiht forwarder. The forwarder can access this tenderin application
from a mobile device and accept' re-ect' or modify the planned order. If the forwarder re-ects the
tender or does not reply within an anticipated time frame' the supply chain manaement software
triers a te3t messae alert to the loistics manaer*s mobile phone to e3pedite the search for
another forwarder.
myS%( SCM also uses mobile technoloy for warehouse manaement tasks such as pickin'
packin' unpackin' freiht loadin and unloadin checks' and inventory 5ueries. Some of these
activities use radio fre5uency identification technoloy .R4I+0 technoloy.
%ltierre Corp. provides a wireless )%& based on a system of R4 tas' )C+ displays' servers'
access points and wireless stations' which controls and updates prices for each item.
)ow-tech paper display tas used by Central supermarket to display prices and marketin
messaes can be replaced with electronic shelf. %ltierre e3ecutives say supermarkets and other
lare retail operations invest thousands of man hours in the inefficient process of manually
replacin paper tas on store shelves to reflect updated prices. They are constantly behind on
these updates' and fre5uently make mistakes.
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>sin %ltierre<s platform' a supermarket employee can update prices throuhout the store in a
matter of minutes with a few keystrokes. The system saves time and labour costs' reduces human
error and is LreenL' savin billions of sheets of paper each year. %ltierre has a shoppin cart in
the demo room overflowin with paper price tas' a compellin visual that attests to the amount
of paper that can be saved in a sinle supermarket.
%onclusion
To conclude' information system enables companies to react' respond' cater' store' retrieve'
disseminate' and control their new valuable asset that is information. In the years to come' a
ood information system within a company will be no loner an option; it will become a
compulsory in determinin success. To et the reatest benefits from an information system'
orani,ations must consider it an adaptable tool that enables their businesses to proress.
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