Download pdf - Cloud Computing in Retail

8/2/2019 Cloud Computing in Retail

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Pankaj Bhatia

10020241049

Cloud computing in Retail


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Cloud Computing

Cloud computing allows customers to scalevertically and horizontally, and based on thedemands of their users, it ensures there areenough resources at any given time.

Every month, whether all the resources are

utilized or not, a customer will always have to payfor the contracted resources with regular hosting.

Cloud computing has the attributes to help retail

companies make these changes through thecombination of low capital investment costs,standard applications and platforms, quickdeployment and lower running costs.


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Live Example-ABC Opticals, Delhi

The live study involves a mid-size retail chain in New

Delhi, India which has 5 stores as of 2011 and deals in

spectacles, sunglasses and other eye related products.

This company ABC Opticals was established 60 years

ago and is doing well in this segment.

The company has 5 retail stores and all of them are

located in the up-market areas of Delhi.

The company also deals with overseas suppliers.


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Live Example-ABC Opticals, Delhi

Product portfolio Spectacles

Sun glasses

Contact lenses

Hearing Aid

Lens Cleaners

Colored lenses

Frames

Lenses

60%40%

Revenue Share

Wholesale Retail


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Current Structure of the company

S3

S2S1

S5S4

sp4

s

p3

sp5

sp7

sp6

osp2

sp1

sp2

osp1

S1-S5: five stores of

the company.

Sp1-Sp7: suppliers of

the company.

Os: Overseas

Suppliers

Manually Connected


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Recommended Structure of the

Company

s3

s1

s5s2

s4

Central Node

s

p

1

s

p

6

s

p

2

s

p

3

s

p

4

s

p

5

Online Platform

WarehouseS1-S5: five stores of

the company.

Sp1-Sp7: suppliers of

the company.

Os: Overseas

Suppliers

Cloud Computing.


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Company Financials

Stores Daily sales Monthly sales Margin Profit Employee Cost Over-heads Net Profit

S1 200000 5200000 10% 520000 58000 20000 442000

S2 300000 7800000 10% 780000 90000 25000 665000

S3 10000 260000 30% 78000 18000 15000 45000

S4 30000 780000 30% 234000 30000 25000 179000

S5 40000 1040000 20% 208000 45000 30000 133000Total 1464000

Stores

FixedCost

Variable(CC)

Variable(CO)

Dailysales

MonthlySales Margin Profit

EmployeeCost

MaintainenceCost Over-heads Net profit

S1 75000 10000 15000 240000 6240000 11% 686400 73000 20000 20000 563400

S2 75000 10000 15000 360000 9360000 11% 1029600 105000 20000 25000 869600

S3 75000 10000 15000 12000 312000 33% 102960 33000 20000 15000 24960

S4 75000 10000 15000 36000 936000 33% 308880 45000 20000 25000 208880

S5 75000 10000 15000 48000 1248000 22% 274560 60000 20000 30000 154560

Total 1821400

* According to AWS and

other cloud computing

service providers.

*Computer Operator

*10-30% increase in sales according to IT research companies like Gartner etc.*24.41%increase

After implementing Cloud computing


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Future Scope

s6

s5

s4

s1

s9s3s8

s2 s7

sp8

sp

10

sp6

sp7

sp1

sp5

sp9

sp4

sp3

sp2

Online portal

Warehouses


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Projected Financials

StoresFixedCost

VariableCost Rent

Variable(CC) Variable(CO)

Dailysales Monthly Margin Profit

Employeecost

MaintainenceCost

Over-heads

NetProfit

S1 75000 10000 0 10000 15000 240000 6240000 11% 686400 73000 20000 20000 563400

S2 75000 10000 0 10000 15000 360000 9360000 11% 1029600 105000 20000 25000 869600

S3 75000 10000 0 10000 15000 12000 312000 33% 102960 33000 20000 15000 24960

S4 75000 10000 0 10000 15000 36000 936000 33% 308880 45000 20000 25000 208880

S5 75000 10000 0 10000 15000 48000 1248000 22% 274560 60000 20000 30000 154560

S6 2000000 10000 30000 10000 15000 15000 390000 33% 128700 33000 20000 15000 20700

S7 2000000 10000 30000 10000 15000 15000 390000 33% 128700 33000 20000 15000 20700

S8 2000000 10000 30000 10000 15000 15000 390000 33% 128700 33000 20000 15000 20700

S9 2000000 10000 30000 10000 15000 15000 390000 33% 128700 33000 20000 15000 20700

Total 1904200

*30.07%


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Mobile Wallets: Next big thing in Indian

Retail Industry

Using ones handset as a financial tool, or themobile wallet is an interesting concept which isbecoming increasingly popular and integratedacross consumer platforms.

The mobile wallet is proving especially effective in

developing countries where desktop access tothe Internet and banking opportunities are still aprivilege, yet mobile accessibility is extremely

high.

The mobile wallet technology is also based oncloud platform and is therefore an upcoming areaof study.


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Security Issues in Cloud Computing

Privileged user access.

Regulatory compliance. Customers are ultimatelyresponsible for the security and integrity of their

own data, even when it is held by a serviceprovider.

Data location. When you use the cloud, you

probably won't know exactly where your data ishosted.

Data segregation. Data in the cloud is typically in

a shared environment alongside data from other


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