Upload
mei-yee
View
228
Download
0
Embed Size (px)
Citation preview
8/14/2019 Case Tesco
http://slidepdf.com/reader/full/case-tesco 1/6
CASE STUDY 2
INTRODUCTION
Tesco has expanded from its traditional supermarket base into the international arena
and now operates across ten markets. The first Tesco store was opened in 1929 but it
is only since the 1990s that Tesco significantly
increased its retail focus. They are a global leader in
the design, manufacture and service of technology
based solutions for the upstream energy industry.
Their ability to transform leading edge technologies
into reliable and costeffective solutions makes Tesco
!orporation a master of innovation. "n being members of the technical community in so
many locations, Tesco !orporation offers strength that comes from worldwide
resources. The company goal is to change the way people drill oil and gas wells,
making operations safer and more efficient.
#urthermore, Tesco $roup, is the largest supermarket chain, needed a new retail
data infrastructure operating in near realtime, to enhance store operations, supplychain management and stock availability in its 1,200plus stores. Tesco selected
%ysrepublic &eal Time "ntegrator' (&T") along with *icrosoft+ i-Talk+ %erver and
*icrosoft %/ %erver' as the preferred technologies to deliver this vision. The critical
business data made available through this
infrastructure has given Tesco head office staff and
systems a single, near realtime view of supermarket
sales data from all its stores, which was previously
unavailable in such detail or in such a timely manner.
The solution handles 100 */ 3% transactions a
second at peak times, which each have an average of
between 0 and 100 sales items. 4ll transactions are stored in a single multiterabyte
%/ %erver' database and are also published for subscription by real time.
8/14/2019 Case Tesco
http://slidepdf.com/reader/full/case-tesco 2/6
Problems
Tesco is the largest supermarket chain, the
national leader in the food sector, and a global player
in retailing with outlets in "reland, !entral 5urope, and
4sia. 3ver the past 67 years, as the retailing market
has changed, the company has grown and
developed, responding to new opportunities and
pioneering many innovations, including online sales.
Tesco, with 1,200plus stores and almost 20,000 employees, is described by many
analysts as the king of supermarkets. 4part from its familiar high street supermarkets, it
operates small grocery stores under the Tesco *etro brand name, big supermarkets
outside cities (Tesco 5xtra), and 28hour stores.
ointofsale (3%) data is the lifeblood of
any supply chain. %upermarkets, especially, use this
information to understand and anticipate customer
behavior, manage stock in individual stores, aboveall, the speedy availability and accuracy of 3%
data makes a fundamental difference to a retailers
competitiveness and the strength of its supply chain.
For Tesco managing the supply chain is critical to maintaining its
leadership in the industry. Specifically this means ensuring a high degree of
product availability at all times. In a highly competitive market if a customer
can’t find an item in a Tesco store, there are many other retailers they can
turn to. Optimizing the operational effectiveness of a store is also a key
focus area hich means a complete understanding of factors such as !ueue
lengths cashier and e!uipment performance is vital in order to gain and
maintain an advantage.
8/14/2019 Case Tesco
http://slidepdf.com/reader/full/case-tesco 3/6
4s the most successful, supermarket chain, Tesco is constantly refining the way
in which it sources, analyses, and manages 3% data. "n late 200:, Tesco began
working on a new realtime retail infrastructure based on %ysrepublic &T" and *icrosoft
technologies.#urthermore, today grocery stores do not leverage all the potentiality of
their loyalty cards and use it only as a way to provide discounts to customers. This is a
result of the costs involved to implement the process and disbelief from some of those
retailers that the investment can actually pay off, and ; or lack of internal analytical
capabilities to capture and process customer buying information.
esides that, multiple locations
presented Tesco !orporation with a
challenge in gathering information fromthe remote locations. "t was also difficult
to provide these locations the knowledge
and tools to manage business effectively.
The need for a fullyintegrated system that would provide continuity of
information across multiple locations and countries became increasingly urgent as
Tesco !orporation expanded to more locations in more countries. The company needed
the ability to support each local business unit while monitoring each unit for
accountability.
8/14/2019 Case Tesco
http://slidepdf.com/reader/full/case-tesco 4/6
Solutions
%ysrepublic &eal Time "ntegrator (&T") enables retailers to integrate in realtime
with diverse and highly federated environments such as 3% is one of the way to solve
the problem. This opens up new channels with faster access to critical business
information, through use of accurate, detailed,
3% information. &T" can help to address issues,
such as stock availability, loss prevention,
customer service, instore productivity, and
promotion tracking and through <eb %ervices
initiate a series of responses without needed
manual intervention. "t is implemented using*icrosoft+ i-Talk+ %erver, part of the *icrosoft
<indows %erver %ystem, and the *icrosoft .=5T
#ramework for development. >ata from individual
stores is captured using &T" and transmitted via
*/ <eb services through i-Talk %erver, &T"
and into a single *icrosoft %/ %erver 200
database.
#urthermore, Tesco can be that successfully leveraged in its fre?uent shopping
program is based on the !lub !ard program that provides rewards customers with
points every time they shop at Tesco stores and allow them to redeem points for
products and airline mileage. The crucial facet here is the !lub !ard play an important
tool to better understand customer behaviors and preferences.
8/14/2019 Case Tesco
http://slidepdf.com/reader/full/case-tesco 6/6
financial services. The promotions linked to the loyalty program also allow Tesco to
drive business to specific area giving extra points for certain merchandise categories or
for online sales.
Questions
1. <hich sources of data for Tesco come from within the company and which are
external to the companyE
2. <hy is Tesco !ard a valuable asset in contributing data mining for the company,
especially when it comes to point of sale (3%)E
:. #rom which sight of view, &eal Time "ntegrator (&T") function help in retail business
and how does this function been implementE
8. Bow can Tesco effectively coordinate its use of marketing research with its retail
informationE >iscuss and support with example.
. Bow should Tesco adapt its customer loyalties for the different countries in which its
operateE