Informationsystems have become today the most important tool for an effective tradingbusiness. With effective use, such systems allow companies to obtainsignificant competitive advantages on the market. The dynamic growth of retail business leads to enhanced competitionbetween opponents. This, in turn, forces enterprises to increase theirefficiency, which to a large extent depends on the capabilities of the softwareproducts used to quickly process large amounts of information. The growth of requirements of trade enterprisesstimulates the emergence of new specialized software products with enhancedcapabilities (Kelly, and Casey, 2010). On the other hand, software developersregularly offer trading enterprises more and more advanced products, ensuringthe efficiency of managing many business processes in retail.
Today, retailersuse various specialized information solutions, such as Paterson, SAP Retail,Perekrestok, Navision, and others.Tescois one of the largest supermarket chains in the world. Its management managedto apply a very comprehensive idea: according to their strategy, they laid ascalable system in an information system.Tesco was capable to identify the requirements of its consumers, compile theirportraits and systematically gather all data regarding their preferences and purchasesInteractionof Office and Trade Programs One of the mostimportant problems to be solved when creating an integrated information systemin retail trade is the organization of interaction and data exchange betweenthe analytical software of the head office and the programs responsible for thework of outlets, including those supporting the operation of the cash registerequipment. Between these two parts of the information system, there is amovement of significant information flows.
The main flow of information fromstores is the data on sales of commodity names from the POS terminals of stores(Gallagher, 2012). From the central office,stores receive information on the range, prices, and special conditions for thesale of goods.Focus in theoffice part of the information system of algorithms for centralized managementof the assortment of goods, pricing for a single assortment for the wholenetwork, information on promotional and advertising promotions, as well asother business processes is typical for most large foreign and local networkretail companies (Morley, and Parker, 2004). The other part of the informationsystem that gives the work of particular stores is made mostly to automate the proceduresof ordering and accepting products, carrying out inventories and otherdecentralized corporate systems. The practicehas explained that an effectively managedexchange of knowledge between programs in Tesco stores and the office part ofthe information system supports to considerably decrease transaction costs atthe position of individual stores and the company as a whole.
Strategyfor Adapting Business Processes and Information Systems The fundamentalissue that trade Tesco face in the process of improving or implementing a newinformation system is often the choice of a decision on how much more effective to adapt the information system toexisting established business processes, and in which to optimize the businessprocesses themselves in accordance with the functionality of the implementedinformation system (Anderson, 2012). Unlike other retail chains, in whichinformation systems are initially used and improved along with corporatebusiness processes, this issue has become extremely urgent for all retailers.Therestructuring or optimization of business processes directly relates to awell-established mechanism of interaction between employees and individualstructural divisions of the company, which at the initial stage of implementinga new information system can affect the effectiveness of their work. Inaddition, the costs of improving the information system integrated with thecompany’s business processes in the future directly depend on the decisionstaken at the stage of its implementation (Cole, and Kelly, 2011).Independentfurther modernization of the information system requires a large expenditurefor the maintenance of a large IT department in the Tesco, which only retailmarket leaders can afford. For medium and small retail companies, the use ofinformation products updated by the manufacturer is more typical. Thus, if forunique retail companies’ unique information systems are one of the maincompetitive advantages, then for business and small retail networks, businessprocesses and work technologies, based on standardized information solutions,can be a competitive advantage (Kelly, 2009).
Integrated MIShas also acquired this purpose as the use of MIS has been effective in getting performancein managing the corporate procedures of Tesco. As the Tesco business market ishuge, it has different systems which it must perform steadily. Club cards are aTesco service product which is applied tothe consumers during shopping. The MIS has supported the club card processing simpledue to which a large number of consumers are using the cards successfully(Paul, 2001). One of essential systems inTesco’s is controlling the supply chain.
Tesco has established an integratedMIS for retail suppliers which supported the supplier to directly present thestock to the stores without delivering them tothe warehouse. This enhanced stock control and effective returns handling. Main Featuresof Information Systems Moderninformation systems make it possible, as soon as possible, to identify the mostsignificant trends in the development of the company as a whole and assess theefficiency of individual structural units. The collection, processing, and analysis of information in terms as closeas possible to the real-time mode allow quickly correcting the company’s work,as well as taking into account changes in external factors before competitorsdo it (Paul, 2001).The mostimportant capabilities of modern information systems include: planning of themain indicators of retail stores, such as turnover, profit, quantity andaverage purchase size; analysis of the effectiveness of the use of retailspace, labor productivity staff, etc; an assessment of the compliance ofplanned targets with real ones (Kelly, 2009) . This parameter places high demands on the efficiency of datacollection and processing.A special placein the automation of the company’s reporting system is the financial andaccounting reporting.
Periodic changes in the tax legislation and the reportingsystem submitted to various state bodies require from the information system ofthe Tesco certain flexibility and the ability to adapt to such changes (Cole,and Kelly, 2011). Internal control of all financial flows of a large ormedium-sized company without the introduction of modern automated informationprocessing technologies is significantly hampered. (Castells, 2010). Anotherimportant issue of automation is the correct interaction with informationsystems of third-party organizations in the implementation of mutualsettlements.
Automation analysis of the structure of purchases and the dynamicsof the average check allows Tesco to increase the effectiveness of existingloyalty programs in retail networks (Anderson, 2012).Non-trivialresults make it possible to obtain the use of Data mining tools based on thesearch for hidden regularities in large data sets. An information system is a tool that allows timely acceptance andevaluation of the effectiveness of both strategic management decisions andindividual projects within the framework of retail business development. Thesystem can be considered as a guarantee of effective expenditure of attractedresources (Morley, and Parker, 2004). SecuritySystems Help to Trade Integration ofautomated elements of the security system with other business processes of Tescocan lead to mutual enhancement of their effectiveness.
Thus, the time-lapseanalysis of video surveillance for buyers in trading rooms can be used as atool for determining the behavior of buyers when buying certain categories ofgoods, and analyzing video recordings of the work of store employees cansignificantly improve the efficiency of their work (Morley, and Parker, 2004).Analysis ofatypical purchases allows the company toidentify weaknesses in the security system. Signs of an atypical purchase canbe, for example, the purchase of an extremely large number of units of goods,making a large number of purchases in an ultra-short time at one cash desk ormaking a large number of purchases using one discount card for one day. Thisanalysis will require data from the stores’ terminals (Gallagher, 2012). Costand Effectiveness of the Information System Undoubtedly, themore perfect the information system, the higher the cost of its implementationand support. In most cases, before implementing an integrated informationsystem or individual modules, it is advisable to compare their cost with thevalue of those competitive advantages that the retail company receives as aresult.
At the same time, as a result of implementation, both the reduction oftransaction costs and the receipt of additional revenues can be considered as aresult of the increase in turnover and/orthe investment attractiveness of the company (Castells, 2010). WholesaleDistribution This is the keylink in the supply chain. Its task is to link the producer and consumer ofproducts that can be located far from each other, including in differentcountries. Only the world’s largest producers are able to build their marketinglogistics so that they do not need intermediaries (Kelly, and Casey, 2010). Thework of an intermediary – a wholesaler or distributor – is not a simple”buy-sell”, but a complex process that involves:Collection andanalysis of customer needs;Attracting newcustomers and retaining regular customers;Calculation andmaintenance of the optimal level of stocks;Order management;Supply chainmanagement;