The Adoption of Integration of Information and Communication Technologies by Sainsburys - Essay Example

?The Adoption of Integration of Information and Communication Technologies by Sainsbury’s The paper broadly aims towards a particular company i.e. Sainsbury’s regarding its execution of Information and Communication Technologies (ICT) when conducting business operations. Moreover, an innovative conception in relation to ICT has been prescribed for Sainsbury’s which if followed by the company, it might develop as well as enhance the competitive advantages by a considerable level. The prescribed innovative idea offered in the paper might assist the business processes of Sainsbury to improve by a considerable extent. In this connection, Sainsbury’s intends to execute the application of Self-Service Checkouts for the purpose of enhancing as well as raising their benchmark of operational efficiencies. Keywords Self-Service Checkouts Implementation Business Process Sainsbury Productivity Table of Contents 1 Abstract 2 Keywords 3 Introduction 5 The Chosen Organisation 6 Self-Service Checkouts-How They Work? 7 Self Service Checkout within Sainsbury’s 7 Process Improvements for Sainsbury’s 12 The Use of ICT to Improve Shopping Process of Sainsbury’s 13 Conclusion 14 References 15 Introduction The role as well as the execution of Information and Communication Technology (ICT) is quite extensive and prevalent in every kind of business organisations in the modern day phenomenon. The worldwide leading business organisations that include Wal-Mart, Tesco, IBM and ASDA among others usually make effective implementation of ICT while operating the business operations by a large extent. These renowned as well as resourceful business organisations make the valuable utilisation of ICT with various intentions as the business organisations firmly believe that ICT plays a crucial part in these business progressions and advancements (Mas & Quesada, 2009). ICT also enables an organisation to provide enhanced customer service and make the process of doing business with the organisation quite convenient for the customers. ICT also facilitates in providing efficient outlook to the entire business process. It not only helps in the customers but also the employees in the organisations as well. The employees can utilise the technological aspects within the ICT to make their work quite easy within the workplace, which in turn facilitates in increasing their competency. Notably, the various reasons for executing the ICT by the business organisations include diminishing the transaction costs and ultimately raise the productivity and delivers instant connectivity which thereby improves the accuracy and transparency of the business organisations. Furthermore, the other valuable reasons also include enlarging the geographical scope of the potential markets for the business organisations, adequately accessing different products and commodities and ultimately raising the profitability of the business organisations (Picot & et. al., 2008). In this paper, the business organisation, i.e. Sainsbury’s, has been taken into concern. The main objective of this paper is to discuss regarding the self-service checkout which has been implemented by Sainsbury’s. The main reason behind this phenomenon has been related to attaining competitive advantage and it might also have been the case that they must have evaluated the previous processes and re-created it in order to attain success for the organisation. In addition, adequate execution of ICT that enhances the shopping process of Sainsbury’s and few concluding lines will also be portrayed in the discussion. The Chosen Organisation Sainsbury’s is regarded as one of the oldest retailers which was founded in London as its home city, in the year 1869. It is recognised as the third largest chain of supermarket prevailing in United Kingdom. Currently, it acquires a considerable market share of 16.5% in the global retail market. The company delivers broad variety of quality food commodities. In this regard, the vision of Sainsbury is to promote healthy consumptions along with active lifestyles towards its worldwide customers. Moreover, the company also strives for encouraging people to change their shopping as well as behavioural patterns favouring retail supermarkets such as Sainsbury’s. Furthermore, the company also intends to offer healthy products at reasonable prices for its large base of customers (Sainsbury’s, 2012). It has been recognised that Sainsbury’s possesses broad assortment of technological products which generally comprises of electronic appliances such as computers, sound systems, televisions, MP3 players, cameras and mobile phones. The company has been very much successful through the implementation of these different ICTs that are used for different purposes. In this connection, Sainsbury’s believes that by the execution of the above discussed ICTs, the company can attain numerous benefits that would eventually raise as well as enhance its competitive position by a certain level (Sainsbury’s, 2012). Thus, it can be stated that business organisations largely focus upon the aspect of ICT for the purpose of attaining as well as enhancing its competitive position. As discussed above, the ICT fundamentally tends to enhance the productivity, efficiency and adequacy possessed by the organisations in accessing towards various products and commodities (Sainsbury’s, 2012). Self-Service Checkouts-How They Work? The technological procedure of self-service checkout generally implies that the customer is allowed to scan the barcodes which are present in their own products and manually recognises the different products normally with a touch screen display. The advantages of using the technological procedure of self-service checkouts can be explained from both the customers’ and the retailers’ viewpoint. In terms of the customers, the execution of self-service checkouts generally decreases the checkout time along with possessing more privacy as well as anonymity. In this connection, the retailers’ possess the benefit regarding decreased staffing requirements along with efficient service through the execution of self-service checkouts (Uddin, 2009). Self Service Checkout within Sainsbury’s The oldest retail company i.e. Sainsbury’s normally executes the business functions through the implementation of self-service checkouts. Self-service checkout is a system that permits the customers to interact with the machine so that they can pay for their products and thus do not require the customers to interact with the members of the organisation. The company intends to invest more towards enhancing the technology of self-service checkout for the purpose of rendering superior services for its large base of customers (J Sainsbury Plc, 2012). Most of Sainsbury’s information technology is outsourced to Accenture. However, four automated service depots where most of the issues related to Sainsbury’s took place, is out of scope of the deal and lead to bulk of write-off. Sainsbury’s revealed the fact that there has been fall in the standard queue time for all customers since self-service machines were being utilised by consumers with less purchases and with its prologue there had been rise in the total quantity of payment points available. According to the views of Sainsbury’s spokesman, it can be identified that most of the customers of the company tend to place greater emphasis upon the speed and convenience of check-outs. Self-service checkouts have a greater role to play at times when the customers just pop in for a quick shop. However, the spokesman also revealed the fact that the company is dedicated to providing its shopper with the choice prevailing between the two systems. The company further reveals the fact that self-service has not resulted in decline in the number of staffs but instead has assisted the staffs to involve themselves in numerous other jobs (Clark, 2004). The main reason for Sainsbury’s to implement self-service checkout system has been related to improvement of the services because of fewer queues. Most of the customers reveal the fact that they are quite satisfied with the self-service checkouts which is being implemented in the store because they are capable of popping into the store and thus buy the product, pay for it and come out of the store without standing in the queue for longer period of time (Clark, 2004). The implementation of self-service checkouts at Sainsbury’s implies that the company is trying to enhance its services which are offered to the customers. The customers tend to find such systems quite enjoyable since they feel that they can shop at their own convenience and also pay for the product with greater ease as they are not required to stand in a queue for longer period at all with the implementation of self-service checkout systems. There is swiftness in the entire method of shopping thereby stimulating the service offered by the company (Uddin, 2009). One of the main advantages that Sainsbury’s receives by executing self-service checkouts is related to enhancement of labour productivity which is facilitated by self-service checkouts. When the labour resources are directed out of the cahier lanes, it becomes easier for the retailers to optimise their usefulness in numerous other departments by means of sales assistance, bagging purchases and stocking up inventory at shelves among others. It has also been observed that the cost related to processing of the sales is generally subsidised by the customers themselves thereby obviating the requirement of store attendants. The customers of Sainsbury’s tend to have a better shopping experience because of the speed and convenience offered by self-service checkout (Uddin, 2009). In this connection, the various disadvantages of self-service at Sainsbury’s include the problems relating with price inconsistencies. In this context, the price inconsistencies generally arise at the time when the prices of the commodities increase as compared with the investments in the advertisements. The other disadvantage of self-service checkouts at Sainsbury’s is regarding the problem of handling certain products that might not scan properly and ultimately the bar code is entered manually (Uddin, 2009). Issue of theft can also be considered as one of the most significant disadvantages of self-service checkouts. The reason behind such theft is that customers tend to scan everything by themselves and there is no one to monitor their activities. Therefore, Sainsbury’s might have to employ more assistants who can keep an eye on the customers. The company can as well make use of cameras near self-checkout counters. The other disadvantage that Sainsbury’s might experience with the implementation of the self-checkout counter is related to bagging issues. In self-checkout processes, the customers are required to put their shopping into the bagging areas. However, it has been recognised that most of the times, the bagging area does not recognise that the products have been put there which ultimately delays the entire process and in order to smoothen the process, assistant is required. It is because of such complexities which obviate the customers from making use of the self-checkout counters (Uddin, 2009). The other disadvantage of self-checkout counters is that with the development in the technology on a regular basis, the cost associated with maintenance of such systems tends to be higher even though the labour cost is low. The other fact is that with the advancement in the technology, other retailers would also prefer making use of such systems which would imply that Sainsbury’s might not gain competitive advantage from utilising such systems. One of the close competitors of Sainsbury’s such as Tesco has also practiced such self-checkout counters which can prove to be disadvantageous for Sainsbury’s (Uddin, 2009). Self-checkout counters might possess faults and errors and as a result of this the customers might not be capable of using them. Such faults in the machines might force the customers to stand in the queue for the billing and thus it can annoy them as well (Uddin, 2009). After having examined the self-service checkout’s advantages and disadvantages in details, it can be analysed that adequate attention needs to be paid in improving the processes of self-service checkouts which can assist in enhancing the service of this machines and thus improve the overall efficiency in utilising the system (Uddin, 2009). Process Improvements for Sainsbury’s In utilising the self-service machines, one of the main processes is related to bagging process in which after having scanned the product, the customers are required to drop the product into the bag. Although it is a crucial process which the customers’ need to pass through in order to complete the transaction, it can be stated that this process is actually not needed as it leads to problems. It must not be a mandatory process and there must be option to bag the goods wherever the customers want. Bagging in case of self-checkout system actually lengthens the overall procedure. When the process of bagging is removed from the system then the customers might not bring in any issue with the bagging area. There will be utmost speed in the overall procedure and this will definitely add value to the customers. Assistants will not be required in such cases and therefore the customers will be capable of completing the transaction themselves. The operational efficiencies of Sainsbury’s would generally increase from the execution of technological procedure of self-service checkouts by different ways. The self-service checkouts greatly shortens the long queues of the customers and also delivers a faster checkout experience that ultimately raises the working efficiencies of the organisations such as Sainsbury’s. In order to avoid any sort of problems that might be faced by the customers, Sainsbury’s should ensure that the working functions of the self-service checkouts are properly functioning. The self-service checkouts could be improved by introducing advanced technological equipments so that the malfunctioning of the equipments are minimised. Thus, it can be stated that by enhancing as well as raising the standards of self-service checkouts, Sainsbury’s can effectively increase the operational efficiencies by a significant level (Gutierrez, 2007). The Use of ICT to Improve Shopping Process of Sainsbury’s The conception of business process is also regarded as a business method that generally forms well structured business actions rendering support towards generating a definite product or commodity with greater growth prospects and sustainability. With the motive of making the business process or the business method successful, it is very much necessary to execute a proper execution of ICT equipments in the business organisations. The adequate use of ICT would eventually assist a business organisation to attain competitive position along with enhancing its business procedure or business methods (Harrington, 2005). For the purpose of attaining competitive advantage at Sainsbury’s, it is significant for the company to implement innovative ideas that can enhance the shopping experience of the customers. ICT has a crucial role to play in such context. If Sainsbury’s makes use of the hardware with certain kind of Point of Sale (POS) system along with bar code scanner then the overall process can be improved at Sainsbury’s. This new idea will also lead to competitive advantage in the firm. It will also enable the company to reduce discrepancies within the business transactions. This will in turn increase the customer contentment with the service of Sainsbury’s, which will enable them to attract more footfalls within their stores. This will enhance the overall productivity of the company. Conclusion The practical application of ICT has been apparently increasing in the current day phenomenon. It has also been recognised that most of the business organisations execute different types of technological equipments ensuring that those might raise as well as enhance the competitive position of the company in the long term. Similarly, in this context, Sainsbury’s which is one of the oldest and foremost retailing companies prevailing in the UK tends to execute ICTs such as self-serviced counters while operating the business functions. The adequate implementation of the above discussed ICTs eventually raised the competitive advantage along with greater improvement in the business process of Sainsbury’s. Moreover, an innovative conception in relation to ICT has been prescribed for Sainsbury’s that would considerably enhance its business processes along with attaining competitive benefit over its competitors. Thus, it can be stated that Sainsbury’s can attain superior position in this competitive world along with sustaining its productivity through the execution of different types of ICT equipments to a significant extent. The company i.e. Sainsbury’s might enhance its working efficiencies through the application of improved self-service checkouts involving innovative technological equipments that ultimately would accelerate the efficiencies of the business procedural functions by a considerable level. References Clark, L., 2004. Sainsbury's Writes Off ?260m As Supply Chain IT Trouble Hits Profit. News. [Online] Available at: http://www.computerweekly.com/news/2240058411/Sainsburys-writes-off-260m-as-supply-chain-IT-trouble-hits-profit [Accessed April 17, 2012]. Gutierrez, J., 2007. Business Data Communications and Networking: A Research Perspective. Idea Group Inc (IGI). Harrington, H. J., 2005. Business Process Improvement. Tata McGraw-Hill Education. J Sainsbury Plc, 2012. Sourcing. 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