Abstract
Information technology (IT) is vital in retail businesses of all sizes. This report analyzes the use of IT in the retail sector, focusing on a supermarket chain. It discusses different types of computers, focusing on those widely used in retail, such as desktops and laptops. Critical ethical and social issues related to IT, such as privacy, accessibility, and environmental impact, are reviewed. The report also examines different networks, including LANs, WANs, Wi-Fi, and the Internet, that enable communication and data transfer. Finally, the role of IT in aiding retail management through tools like POS systems, inventory management software, CRM systems, and data analytics is analyzed. The report concludes that while IT investment can benefit retailers, drawbacks like cybersecurity risks must also be addressed.
Introduction
Information technology refers to computing and communications systems that process, store, retrieve, transmit, and protect data and information (Laudon & Laudon, 2022). Organizations across industries and sectors utilize IT to achieve operational efficiency and business growth, from large multinational corporations to small businesses. The retail sector, which includes supermarkets, relies extensively on technology to manage complex global supply chains, understand customer behaviour through analytics, provide omnichannel shopping experiences, and streamline point-of-sale and inventory management. This report examines the role of IT in the retail industry by analyzing a large supermarket chain as a case study. The next section discusses the most widely used types of computers in retail. This is followed by a review of salient ethical and social issues in IT relevant to retailers. The report then explains key network technologies powering modern ICT systems. Finally, the use of IT across retail management functions such as sales, marketing, HR, logistics and finance is explored.
Literature Review
Sarker et al. (2021) offer an in-depth review of mobile data science tech innovation and its application in systematic, progressive forecasts. Immediate smartphone dissemination and increasing in-built user unit data creation for location, utilization pattern, and other built-ins like cameras and microphones are fueling rapid on-device machine learning innovations. As is evident in the remarkable growth of AI-powered mobile apps, from voice assistants to object/activity recognition, personalized recommendations, predictive text, augmented reality, and health monitoring, the evolution of AI is very clear in the above-mentioned apps.
However, Teubner and Stockhinger (2020) conducted an in-depth systematic literature analysis on the topic of information systems strategy in the digital area from the last ten journal articles. The specific observations on the following topics, five major ones – business model evolution, data analytics insertion in strategies, digital platforms prioritization, user experience centralization and establishment of technology vision statements – are subjects of businesses that can evolve the sophisticated approaches to the dynamic digital solutions that deliver added value and run successfully in turbulent environments.
As seen from the study conducted by Khayer et al. (2020), SME improvement is determined through structural equation modelling that uses sample data to assess the upsides brought by Cloud computing on operations. Based on the results, it is clear that moving to the cloud is beneficial to agility, delivery speed, and flexibility, as it fosters structures like infrastructure scalability, workforce mobility, and sustainability that contribute directly or via mediators. Technology decisions of SMEs are based on various quantitative parameters like security and integration, but qualitative advantages outweigh these risks.
Opinions of Hutchinson et al. (2021) on software engineering tactics surrounding accountability in datasets and training of machine learning models were raised. Measures including putting off blocks of code for tracking data sourcing, filtration options, and biases under revision control systems and model cards would ease the process of auditing for the public to assess and improve AI ethics.
Martin et al. (2022) provide insight into commercial interests and ethical obligations of using an emerging technology in business applications through a view of a research synthesis. Ways like designing ethical codes of conduct on privacy and accessibility, reporting sustainability metrics and creating positions for the CSR heads make firm the social responsibility of employment AI, automation and analytics together with the profit.
Massara et al. (2021) investigate the privacy paradox between consumers giving out personal information publicly while exhibiting concerns about privacy through behavioural experiments. The results show that factors like enjoyment, usefulness, and peer acceptance are more powerful incentives than any other risks. Consumers may tell us that they like privacy while their actual behaviour may show differently, and that is a dilemma for whoever is collecting data and at the same time wants to attract usage.
Fikriyadi et al. (2020) deploy the model of all the wireless local area network hacking techniques, including manual password cracks, MAC spoofing, evil twin setup and denial of service attacks. The results demonstrated Wi-Fi infrastructure frailty to common hacking tools. For instance, recommendations are WPA2 strong encryption, protocol filtering, authentication of users, hardware checks, and frequent reconfiguration to ensure network integrity.
Nurelmadina et al. (2021) systematically assess low power wide area network technologies like NB-IoT, LoRaWAN and SigFox for industrial internet-of-things use cases through performance parameters like latency, bandwidth, battery life and node costs. Findings determine NB-IoT provides highly reliable connectivity for sensors monitoring remote water pipelines, gas lines, or smart power grids, though no consensus single optimum LPWAN solution currently exists across common IIoT requirements.
Panganiban and Bermusa (2020) design a basic barcode-enabled POS and inventory management system for small retail stores without complex ICT infrastructure. By linking barcode lookups to a simple database tracking stock entries, sales and reorder levels, the solution provides owners transparency on revenue and inventory backed by receipts and reports. This boosts efficiency over manual ledger updates.
Reyes (2023) traces RFID supply chain execution improvements through examples in warehousing, manufacturing and transportation spanning scanning speed, asset tracking visibility and inventory accuracy. However, factors like technological uncertainty, partner readiness and privacy concerns still limit RFID investment returns, diminishing anticipated benefits.
Al-Ansari (2020) studies an Iraqi coatings company’s transition towards ERP through questionnaires and interviews assessing software selection, optimization, training, testing and impacts on inventory control and financial planning abilities. Despite workflows changing from siloed to integrated, poor change management hinders user adoption, preventing optimal utilization of these upgraded functions and highlighting implementation barriers.
Analysis
Types of Computers Used in Retail
Computer systems used in the retail sector can be broadly classified into traditional desktop PCs, mobile laptops, tablet devices and smartphones, and specialized point-of-sale (POS) terminals. Desktop computers with peripherals like large monitors and full keyboards are commonly used in retail company headquarters and back offices for standard business computing needs. Sales associates in physical stores rely on fixed POS computers near checkout areas to quickly scan products, process payments, check inventory and print receipts. Modern POS systems are all-in-one, with touchscreens, barcode scanners, cash drawers and receipt printers in one package. Tablets enable associates to look up product information, check stock levels, or process orders on the retail floor. Smartphones help store managers stay connected and provide flexibility in monitoring operations. Thus, different types of computers serve specific in-store and enterprise-level functions in retail. Software applications and operating systems essentially bring the hardware components in a computer system to life and enable users to accomplish tasks productively. Without software, a computer would be rendered useless. Hence, computers and software are interdependent. Widely used operating systems in retail include Windows for back-office desktops and MacOS or Linux for POS terminals. Common software packages are Microsoft Office tools like Excel and Outlook at the corporate level, specialized POS software, store-level inventory management systems, data analytics programs, customer relationship management (CRM) systems, human resource information systems (HRIS) and more tailored to business functions across the retail supply and value chain.
Ethical and Social Issues in IT
Retailers collect vast amounts of customer data, including contact information, demographic details, browsing and buying behaviour across channels, payment details, sizing information, product reviews and more. While this data powers customer relationship management, targeted advertising and personalized recommendations, storing excessive customer data can infringe on consumer privacy rights.
Data privacy regulations like the European Union’s General Data Protection Regulation (GDPR) or California Consumer Privacy Act (CCPA) in the United States mandate organizational privacy policies and consent requirements before collecting consumer data, provisions for customers to review stored personal data and have it deleted, data breach notification protocols, safety mechanisms like encryption and purpose limitation on usage of data.
Besides its regulatory demands, the companies must also develop comprehensive data governance models navigating between the business interests and public responsibility ethical data policies of the users’ aggregation, storing and mining. Among the best and most widely adopted practices are appointing a senior privacy officer, categorizing data according to sensitivity, anonymizing records where possible, running algorithmic bias tests, and supporting consumer data ownership rights.
There are more than a billion persons with disabilities, which is equal to 15% of the total population, and this brings together about $8 trillion in disposable income annually. It is not just legally mandated in many countries, such as the United States, under the Americans with Disabilities Act (ADA), ensuring the websites, mobile apps, and in-store technologies are accessible through features like screen readers for the visually impaired and colour contrasts.
Diversification in the composition of teams in IT can help to avoid marginalization. Algorithms equipped by homogeneous programmers become more prone to overlook disfavored groups. On the other hand, computer engineers coming from minority cultures may determine whether race, gender, age, or some other attribute refracts outcomes in the system function and suggest corrective measures.
The fast pace of technology innovation and IT equipment upgrade in stores mean that e-waste emerges as electronic devices are no longer used after short time frames. The useful lifetime of a smartphone typically does not exceed two years.
The retail IT infrastructure that looks crazy huge with the worldwide data centres, enormous networks, endlessly tied devices, and elaborate analytics kit has massive energy consumption that provides the greenhouse gas emissions linked with climate change.
Measures such as miniaturizing hot and cold airflows in data centres through temperature and airflow intelligence, boosting PUE (Power Uptime Efficiency) ratios that show how much power data rooms use, adding in-house solar and wind, using cloud computing which is environmentally friendly because of its massive scale, developing indicators to monitor sustainability KPIs and finally investing into green energy through energy attribute certificates are Ecos Structure which is the public cloud service of Woolworths is also helpful to the company by pulling the energy data when demand is strained and as a result find ways to control consumption hence being able to right-size the energy needs.
Consequently, one should focus on protecting the consumer’s privacy in the digital world, appreciating diversity and ethnicity among technicians, and addressing electronic waste problems through sustainable recycling and donation, with the last item on the list being the reduction of extensive power consumption networks for good and humane development internationally.
Types of Networks Enabling ICT
Nowadays, the field of contemporary digital retail systems greatly depends upon computer networking and telecommunication technologies that provide a safe and secure connection with operating systems, software applications and networks with middleware and hardware components. The central network devices and infrastructural components which allow retailers to provide consumers with omnichannel shopping experiences include LAN and WAN.
LAN (local area network) can link devices such as computers, printers, servers and storage, all located in the same building for a close range through either Ethernet cables or Wi-Fi within one store premises. A LAN links POS systems with nearby barcode scanners, price checkers, cash drawers, servers and back office terminals that gather and integrate data regarding transactions. People’s quick reactions and the use of wireless technology reduce the time needed for inventory lookup, purchasing, digital payment processing, and receipt printing. By doing so, they easily take advantage of LAN infrastructure.
Wide Area Networks (WANs) are interconnections that are linked through various LANs in different things like campuses, cities, or countries, utilizing phone lines and cellular or satellite transmissions. With widely distributed stores and distribution centres, retailers need WANs to connect the stores, whether in the nation or the world. Ultimately, centralizing all data from remote sales outlets into one compound at the data warehouse allows for integration, sorting, and analysis of enterprise-wide data, including sales information, customer, merchandising and supply chain information to come up with consolidated business insights.
The common open internet offers additional means of getting retail data through broadband communal fibre-optic cables and Wi-Fi connection points using transmission protocol standards such as TCP/IP. Websites and mobile applications currently offer customers unlimited product catalogues, personalized discount codes and self-checkout functions, which anyone can perform anytime and anywhere through internet-enabled devices. On the premises, clientele may input the linked Wi-Fi to access digital coupons or look up product reviews from anywhere. Also, the employees may use this setup as a backup of data. Cloud solutions such as customer relations management, human resources management systems, and point of sale provided by vendors’ server cluster networks instead of local infrastructure depend critically on internet connectivity. Thus, LANs, WANs and internet access provide the backbone enabling real-time coordination across brick-and-mortar checkout, online order processing, road transportation and global sourcing for today’s complex omnichannel retail ecosystems through enhanced visibility across merchandise, customers and the extended value chain.
The Role of IT in Retail Management
Modern retailers are driven across enterprises through technology in order to improve processes, extract useful information from large amounts of data, and improve comparisons to competitors. Various business and management functions of IT include but are not limited to, those that will likely be elaborated on below. Sales and Marketing –By using POS software along with barcodes and RFID scanners, it’s easy for retailers to neatly manage every purchase and generate customer loyalty by rewarding points and keeping track of CRM. Sales date is connected to real-time inventory management software and in-demand product replenishment algorithm. Retail analytics is focused on the analysis of such data and is capable of finding weekly buying patterns, top-selling items, the most popular shopping days or in-store specific trends that form the basis of promotional campaigns and pricing strategies for the highest number of conversions. Employing individualized communication and offers through analytics and CRM software gives customers a boost in lifetime value.
Logistics and Supply chains include Radio frequency identification (RFID) asset tags to monitor the pallet and product transit through distribution centres while sensors check on the warehouse environments conditions such as temperature and moisture levels. IoT connectivity communicates these details to logistics software, which uses an algorithm to schedule inbound deliveries and outbound shipments optimally. Vendor inventory systems integration through EDI specifications minimizes risks of stockouts. Machine learning-based routing optimization algorithms reduce vehicles’ mileage, fuel costs and emissions, maintaining on-time store replenishments. Barcode scanning provides goods receipt prior to robots’ intelligent categorizing of the inventory. Predictive analytics is the basis for reorder levels and production planning. Consequently, automation and analytics regulate the retail supply chain flows.
HR Management – From talent acquisition, chatbots are used as initial applicant screening and video interviews to assess cultural fit before managers reflectively interview the finalists. The HR information systems can centralize the new hire onboarding paperwork, and the self-service payroll portal allows the employees to digitally access the paystub data and make any tax form corrections. A learning management platform would be a place to host e-training programs such as workplace ethics or loss prevention, and collaboration apps such as Microsoft Teams would allow information sharing between remote teams. These technologies could increase productivity and engagement within a retail workforce.
In Finance and Accounting, there is the recording of sales, procurement, payroll and inventory movements in the enterprise resource planning (ERP) software, which gives the retail leadership effective data transparency to help manage margins, planning and forecasts competently. By automating the accounts payable and receivable and reporting through the use of standardized formats, reconciliation costs are cut by a large part, and the number of errors is drastically reduced. At the same time, machine learning algorithms flag suspicious transactions for auditing. Cloud ERP solutions also enable multiple location setups that do not require IT infrastructure support for new store setups, which is very important for fast-growing retail shops.
Discussion
Overall, IT stands as the primary driving force that affects all retail management functions, for example, marketing and customer relationship management through data-based insights about customers’ purchasing behaviours and supply and demand across the complex global supply chains, ensuring on-time availability of warehouse item availability and by making last mile delivery more efficient with emerging technologies like artificial intelligence and machine learning. The centrality of retail IT infrastructure, inclusive of networked systems, advanced analytics applications, automated controls and robust security protocols, gives managers much more visibility across all vertical functions, helping the decision-making process become faster and more contextually driven.
IT aids retailers in delivering better service to customers through personalized recommendations and smooth checkout when they test their customers against their transaction histories. Analyzing the sales analysis of merchandising helps to strategically plan sales assortments and also to value price in-demand items by indicating weekly and seasonal demand shifts. Inventory management systems can be optimized and use the anticipating algorithms that allow us to scale production and logistics dynamically in order to match the demand without overstocking. Coordination throughout the extended retail supply chain is a result of real-time tracking systems and environmental sensors on the shipped products, which send updates on location, condition, and estimated delivery status. Last-mile route optimization means that the goods and products are directed to the customers’ doorsteps or to the retail outlets in the most efficient way.
On the one hand, retail technology contributes to the back office functions like effective talent management systems and self-service portals for the staff, which enhances their productivity and increases their access. On the other hand, cloud ERP software, which tracks procurement, operating, and revenue cost reports across all the channels of retail, offers controllers complete visibility over margins. A smart inventory management process is accomplished using the opcode scanners that auto-capture updates and make things easier for auditors. AI also detects the presence of fraudulent funds transfers. Hence, providing a consistent user experience from the front-end checkout to the merchandise planning and supply chain agility to the back-office financial matters and the management of the considerably great amount of funds contribute to the retailers’ ability to have sustainable competitive differences if they effectively implement this technology.
Conclusion
A wide area of information technologies facilitates the retail sector by primarily focusing on process and operations improvements, turning insights from big data into decisions that are considerably more intelligent and differentiating customer experiences from competitors. Desktops, mobile devices, POS hardware and software of a multitude of forms control such activities as order fulfilment, shopper personalization and associate efficiency, to name only a few of their functions. Real-time networking of retail sectors can now be done via technology enablers like Wi-Fi, broadband, and IoT. As the interaction between the physical and the digital channels increases, the role of IT becomes more prominent as it becomes crucial to retail operations.
Reference Lists
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