Management Information System Project

On

Industry Sector: Retail

Submitted To:
8

Submitted By: Group

Prof. A Kumar

Group Members:
2015067 Abhishek Kadbe
2015078 Aman Arora
2015090 Brajesh Lahoti
2015094 Prathamesh
Dicholkar

 INTRODUCTION:
The Retail Industry in India is highly fragmented and unorganised. Since
liberalisation in early 1990s, many Indian players like Spencer's, Shoppers
Stop, etc. ventured into the organised retail sector and have grown by many
folds since then. With the opening up of foreign direct investment in singlebrand retail and cashand-carry formats, a new chapter unfolded in the retail
space. (Louis Vuitton, Tommy, Levi`s, etc.). The cash-and-carry format has
proved to be an entry route for global multichannel retailing giants like
Metro, Wal-Mart and Tesco.
Retailing in India accounts for 22% of its GDP and the Indian market is
estimated to be US $500 Billion and one of the top five retails markets in the
world by economic value.
Management Information System
An information system is a system that take resources as input and processes
them into information product as output.
M.I.S helps a manager in following ways:

Helps to know details about daily transactions.

In calculating profit & loss easily.
In making quick and accurate decisions.
Using a device to store the daily transactions.

Company Goals and Objectives:

They share the vision and belief that their customers and stakeholders shall
be served only by creating and executing the future scenarios in the
consumption space which will lead to economic development.
They work towards becoming a trendsetters in various delivery formats,
creating retail industry, making the consumption affordable for different
customer segments i.e. for different classes as well as masses.

 To infuse the Indian brands with renewed ambition and confidence while
being cost efficient and adhering to quality.

Core Values:
Big Bazaar follows certain set of values as follows,
Indianess: To have confidence in Indian products, services and uniqueness.
Leadership: To become a leader in both thoughts and business of Retail
industry.
Respect and Humility: To respect each and every individual and to be
humble in our conduct.
Openness: To be open and respective to new ideas, technologies, knowledge
and information.
Building relationship: To build a long term relationship by valuing and
nurturing the customer and industries values.
Adaptability: To be adaptable and flexible to face new challenges and
competitive market.

Information System of Big Bazaar

Two centralized servers used i.e. the main server and a backup server which
takes over from main server with-in 5 mins if any problem is detected.
Each server has its own storage system with mirroring hard disks.
Information is backed up on CD`s everyday whereas the entire system is
backed by electrical maintenance department.
The transactions at every counter of Big Bazaar is done using REM (Retail
Enterprise Manager).
The transaction counters also capture the credit details and customer
information of every customer using them.
Oracle finance package is used in order to carry out transactions which are
less than 5000 on week days and more than 5000 on weekends.

A TRANSACTION PROCESSING SYSTEM (TPS)

Transaction Processing System collects, records, stores, retrieves, and executes the
relevant details of business transactions and it generates the information which is
collected with documenting the reports necessary for operation of the business.
Big bazaar uses TPS in following way,
Logistic department of Big Bazaar is responsible for acquiring the goods of
all the products of different departments from the warehouse located in
respective locations which are then verified as per the requirements given in
the Goods Received Statement.
These received goods are first recorded in Goods Inward Register and then
dispatches to the respective departments. In case of damage or if the goods
does not match with the details given in Goods Received Statement, this is
recorded in the Stock Outward Register. These damaged/unmatched goods
are sent back to the warehouses with respect to its Goods Returned Note.
The goods ordered from vendors will be first checked for - Tax, Invoice and
purchase Order.
TPS then prepares Goods Receive Note of 3 copies for - Logistics,
Respective departments and Delivery Centre or Vendor.
TPS maintains all these Logistics data in set of registers such as
Vendor Schedule Register, Warehouse Security Inward Register, Bar code
register, Food-Bazaar Outward, Big Bazaar Outward, Gift register, Scrap
Register etc.
Big Bazaar uses Point Of Sale (POS) Terminals, for selling goods and
services. This terminal sends inventory data to a central computer while the
sale is happening which performs the processing for the entire process.
Big Bazaar extensively uses Barcode Readers for collecting product
information at the point of sale by reading barcodes. These barcodes
identifies the product, after that the POS terminal provides the correct price
and any other important information or details about the product.

 It generates bill for the goods or services that have been purchased by the
customer.
For paying this bill if the customer is using credit card then the retailer sends
the credit slips to the bank in a bunch without sending it individually.
Similarly, these POS credit card sales transactions are stored for later
processing, it does not processes immediately.
Customers can view its credit card sales transaction, which are done at a
POS terminal, as real-time processing, but actual updating of transaction is
processes in a batch.
Transaction Processing System in Big Bazaar also keeps track on the rate at
which products are getting sold. It provides the information about the
products which are in demand so that the business knows which products are
needs to be added in inventory database for further ordering.
It benefits the Big Bazaar to modify its range of products which suits
purchasing habits of the customer.

DSS in retail
DSS in retail helps in providing the store keepers the data analysis which is
meaningful when it is presented for distribution. The DSS software in retail serves
as enterprise-wise demand data system that enables integration of demand data,
internal production and shipping data, as well as external third party. The store
keepers can then use the structure to combine disparate data from multiple retailers
into sophisticated reports that can be generated quickly and easily.
These days information has become a very important factor for earning in this
competitive world , so for having a competitive edge a enterprise should have a
proper system that provides right information upon right time so that appropriate
decision can be taken upon it.
DSS enables the store keepers and owners to a maintain the complete data of all
the transaction they are been into so that they could able to know what all products
does costumers like and what products are not being appreciated by the customers,
it also helps in estimating the average inventory that should be ordered and reorder
point, it also helps in determining the lead time.

Walmart purchased its Decision support system from AT&T which is also known
as the largest DSS worldwide. With this Walmart also implemented Strategic
Decision System Support called Retail Link , it helps in integrating the processes
and information flows with the suppliers which help in binding with the suppliers
well. It also helps to keep track of their important customers and they are able to
provide them better services by referring to the database they have stored.

In India Dss are basically characterized by three capabilities; dialogues, data and
modeling- the emphasis of each varies from organisation to organisation. DSS
includes a wide variety of systems, tools and technology that support decision
making.
Electronic support system, Vendor managed Inventory, Geographic information
system, OLAP (online analytical processing), software agents, knowledge
discovery system and group DSS all can be considered as DSS .Broadly two
major categories of DSS namely enterprise wide DSS and desktop DSS exist .
Enterprise wide DSS are linked to large data warehouses and serve several
decision makers in a company whereas desktop single user DSS are small systems
residing on individual managers personal computer. Thus it is an interactive
computerized system that gathers and presents data from a wide range of sources,
typically for business purposes.

STRATEGIC SUPPORT SYSTEMS

Strategic Support Systems (SSS) are one means of helping managers
understand strategy and its implications. Strategic Support Systems contain
many general decision support system features, and are intended mainly for
senior managers. The different type of strategies used are ;
Business-level Strategy:
There are three generic business strategies :
o Focus strategy: It is usually defined as focusing on offering products and
services to a particular market segment or buyer group.
o Differentiation strategy: It is defined as offering a product or service that is
perceived as unique in the marketplace.
o Overall Cost Leadership: It is defined as offering the same or better quality
product or service at a price that is less than what any of the competition is
able to do.
Corporate-level Strategy:
o The major reason behind the success of Big Bazaar lies in its diversity of
products.
o It concentrates majorly on low priced products so that it gains an advantage
over other competitors.
Also, Strategic Support Systems support executives in their strategic management
activities . The systems are intended for top management, yet they are not to be
confused with executive information systems (EIS), which primarily perform
information access, monitoring, and control functions for executives. A SSS is a
specific instance of a DSS and provides comparable functionality, such as business
modelling and sensitivity or "what-if" analyses that are absent from EIS. So they
provide the managers an upper hand over EIS. With regard to the technical
dimensions, strategic support systems provide more explanatory information than
DSS and EIS because they use cases, examples, and analogies to explain concepts,
facilitate use of techniques, and stimulate thinking. Such systems are also able to
and may combine conceptual models (e.g., value chain model) with the OR models

for better functioning. Moreover, the problems in these systems occur less
frequent. They have a smaller set of standard procedures, and have longer time
horizons. Also they have a more significant impact on the business than those
problems addressed by DSS, ES, and EIS.

ISSUES
The major issue is that all the working models of Big Bazaar are not fully
mechanised or are covered under the information systems. So it does not
allow speedy and efficient working options as compared to other
competitors.
Another issue with Big bazaar is that the operations department does not
work in synchronization with the IT department. This proves to be a major
problem as the operations department alone takes the decisions.
Also, the billing process is very time consuming as the new offers and
discounts are not regularly updated in the system. The better use of
information systems can avoid such problems.