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IT infrastructure for a retail sector in India
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Topics CoveredIntroductionIT Infrastructure for Big BazaarNetwork DesignIntranet AppsInternet AppsRFID for Big BazaarSOA for Big BazaarCloud for Big BazaarGrid Computing for Big Bazaar
IntroductionBig Bazaar was launched in September, 2001 Big Bazaar is a chain of hypermarket in India. As
of June 2, 2012 there are 214 stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.
Big Bazaar is part of Future Group, it was started by Kishore Biyani, the Group CEO and Managing Director of Pantaloon Retail India.
IT Infrastructure for BusinessSmarter software is the muscle behind IT
solutions for Big BazaarTogether with comprehensive technology and
cost-effective methodologies, help Big Bazaar thrive in the fast-paced global economy and help them to: Deliver a smarter shopping experience: Increase
brand equity, improve customer loyalty, and boost profits
Build smarter operations: Retain the best employees, increase productivity, and streamline processes
Create smarter merchandising and supply networks: Share information, synchronize activities, and work more efficiently.
IT Infra projects for BusinessHelps Communication: Communication within the
organization can be faster with the use of software like Lotus Notes. Retail stores can also communicate with each other and with the warehouses. This can be done 24 hours a day and seven days a week. Electronic Data Interchange (EDI) can also be used for communication with suppliers and vendors.
Collection of Data: Data can be collected about consumers, their purchases the frequency of their buying and the typical basket size. This information helps the retailer distinguish the customers who shops at his store frequently and also reward them. For example information gathered about a customer may reveal preferences for certain brands; this may be used for further communication with the customer regarding promotional offers etc.
StoreWarehouse
Store
Store
Warehouse
Datacenter
DR Datacenter
All Branches / Retail Stores
Web Server
DNS Server
ProxyServer
Application Server
Application Server
Application Server
Router
Firewall
Switch
Web Server
DNS Server
ProxyServer
Application Server
Application Server
Application Server
Router
Firewall
Switch
Leased lines
Leased linesLeased lines
Leased lines
Private Cloud
Big Bazaar Network Design
Intranet and ApplicationsFront end Applications for employees use like,
Billing software, Stock/Inventory,SalesMailing system
These applications help management at each store in tracking Stock of all products, procuring products when reached re-order level to avoid stock out situations
Also helps management in making Sales reports as and when required like daily/weekly/monthly/yearly etc.
These applications also helps higher management to track sales based on each store at all locations across India, which helps them to concentrate on stores/locations where there is high profitability/growth etc.
InternetA public website helps people aware of the Big Bazaar store, find store locationknow products availableonline purchase of products for home
deliverygive feedback
ITIL for Big BazaarThe Information Technology Infrastructure
Library (ITIL) is a set of practices for IT service management (ITSM) that focuses on aligning IT services with the needs of business
ITIL describes procedures, tasks and checklists that are not organization-specific, used by an organization for establishing a minimum level of competency. It allows the Big Bazaar to establish a baseline from which it can plan, implement, and measure. It is used to demonstrate compliance and to measure improvement in IT Services.
This ensures 24*7 hrs uptime of IT services, minimizing any downtime required for any system or IT service upgradation.
RFID for Big BazaarIn 2005, Future Group Initiates the implementation of SAP
and pilots a RFID project at its central warehouse in Tarapur Largest RFID implementation mandate in AsiaThe investment in the RFID technology, close to Rs 200
crore, will be made through Future Knowledge Services (FKS) (another Future Group company).
Almost 1 million Stock Keeping Units (SKUs) out of a total of 3 million will be tagged with RFID chips.
The company has fixed a price band of Rs 400 and above for all commodities which will be tagged over a period of one year.
It will help the company to track inventory, automate billing and reduce thefts
Benefits of RFID to Big BazaarAll pallets and boxes are having RFID. It helps checking
material has gone missing during the transportAuto checking of correct boxes into correct vehicles with the
help of RFID. Alarm users if wrong loading is done.Helps identification of product movement. Identify which
products moves faster on Friday or WednesdayHelps in calculating stocks16% reduction in product stockouts since adoption of RFID.RFID equipped shops are 63% more efficient in replenishing
out-of-stock items.Out-of-stock items are replenished 3 times faster with RFID.Cost of excess inventory was reduced by more than 10%
SOA for Big BazaarSOA delivers measurable benefits in today’s
demanding retail environmentEnables our retail outlets to quickly adopt more
profitable business models, such as SKU rationalization, revenue optimization, self-serve kiosks, e-Commerce and consumer-direct selling
Supports the close integration of POS, store portals, labour management systems, RFID, security and infrastructure systems
Reduces the cost, complexity and need for process oriented software customization, while minimizing the cost of subsequent integrations
SOA for Big BazaarEncourages maximum reuse of business logic
and services across retail processesSupports an IT approach that cuts across silo
applications, supports closer integration with retail trading partners and fosters more responsive, optimized operations
Provides true platform independence, scalability, reuse and encapsulation to minimize impact of change, standards, XML, etc
SAAS Solutions for Big BazaarMerchandising
Send exactly the right merchandise to the right store Track the status of all merchandise through shipping,
receiving, and distribution Allocate items directly to your stores using a fully
integrated Allocation and Replenishment module to balance both merchandise plans and store-level sales activity.
StoreCRMAudit and Operations ManagementPlanningCore Financials
Challenges overcome by SaasSOA and SaaS concepts allows major cost reduction to Big BazaarUpfront investment - The cost of the central system is usually not
directly proportional to the number of stores, weighing more on small or new chains.
Deployment cost - Traditional software must be installed and maintained by competent technicians travelling from store to store with high cost and limited peak capacity. Also, remote maintenance over the Internet is usually done one store at a time.
Data-sharing difficulties - It is quite easy to share data with HQ, but complex to do with third parties—such as independent logistics, product catalogues, and market analysis—or when exchanging customer data with other non-competing chains for joint-loyalty programs.
Cost of new software - feature implementation—The new feature, even if already available, must be bought and deployed over some test stores. If acceptable, the general deployment cannot be immediate.
Grid Computing for Big BazaarEnormous amount of data.To create intelligence from the data, huge processing power is
requiredNeed Business Analytics to understand, analyze and solve
business related issuesWorkload management and prioritizationGovernance of the entire IT environmentOptimized performance across all business processesWith grid computing and SAS applications, Business Analytics
are done faster, better and cheaper It distributes computing-intensive SAS application across
hardware resources across Big BazaarGrid computing provides parallelization of Business Analytics
job for improved performance.