Oz Supermarket Enhances Business Ops With Technology, Essay. (70 Characters)

PayWave Technology: Enhancing Customer Experience

Organizations that adopt information and communications technology (ICT) for their business objectives are often able to enhance their performance and overall productivity in many functions including innovation, customer service and cost reduction (Linton, 2017). An information and communications technology (ICT) structure provides support for these enhancements by making it stress-free for establishments to interconnect, share resources and information and integrate business processes. It is therefore necessary that businesses continually adopt information technology (IT) technologies for continual improvements in business functions which overall increases business productivity. This report introduces Oz supermarket a newly introduced retail chain. Oz Supermarket already has cut off customer queues by introducing a PayWave Technology. The report will outline the benefits of utilizing the technology for both the customers and the business per se. Radio-frequency identification (RIFD) technology will also be discussed and its challenges in the business noted.  This report will also outline the supermarkets business operations and suggestions to improve on the same by proposing measures to improve customer services and business operations.

Oz Supermarket is a newly introduced retail chain in town. Oz Supermarket stocks non-perishable, household and stationery goods only. The supermarket does not accept cash money and  is set up to work in such a way that, customers do not make queues in the store but come in, pick the required items and leave. This has been achieved through the use of PayWave technology.  The only exceptions involve children and tourists who are usually issued with a store card that enable them to shop like other customers. When a customer wants to shop at Oz, they only need to wave their card at the entrance after which they allowed in. Once inside the supermarket, they can go ahead and pick shopping and put it in their items inside the trolley. The trolleys have been embedded with a Radio-frequency identification (RFID) technology that automatically queues items put in the trolley by the customers. In case a customer’s removes an item that was put in the trolley, it is automatically deleted from the queue. Once the customer is done with shopping, the total is deducted from the customer’s card as he / she exits the store. No place does the customer make queues at all. 

PayWave technology is one of the payment services technology where a credit card holder only waves it a reader   at a distance of about 4cm without the need to swipe it or enter a pin or a signature (Elley, 2012). It allows holders to wave and the card information is transmitted into a POS terminal. The PayWave credit card is usually embedded with a near-field communication (NFC) chip that allows information transfer (Elley, 2012). The credit card is also embedded with a radio antenna that sends radio frequencies and permits contactless payments (Elley, 2012).  A lot of retailers are taking on this new payment method, to reduce waiting queues and cash handling.

RFID Technology: Challenges and Benefits for Oz Supermarket

No need to carry cash for customers that easily get lost or be stolen  before reaching the retail shop

PayWavetechnology  offers   convenience  and swift checkout payments means no queues which are traditionally time consuming

By means of a PayWave credit card customer is able to shop very fast and doesn’t need to swipe or perform card insertion in a point of sale (POS) terminal, no pin or signature is required.

Enhanced security since there is no need to hand over card to the supermarket’s tellers

Apart for small transaction fees PayWave credit cards are not charged extra

No pin or signature is required to process payment since the PayWave cards use near field communication (NFC)  recent chip technology that comes with secure encryption mechanisms

 Increased sales and general business productivity

Enhanced customer satisfaction and retention

Safe and secure means of transacting customers  purchases

Decreased hacker attacks and threats   who steal data and  information by  card scanning because of the  near field communication (NFC)  credit card utilization that  uses secure  data encryption procedures when transferring  information

Radio Frequency Identification (RFID) is a   wireless technology that utilizes radio signals to automatically identify objects within an assured nearness (Darcy et al. 2011). Radio-frequency identification (RFID) simply uses electromagnetic fields to detect, find and track tags attached to objects. This tags usually hold electronic information. In case of Oz Supermarket, the tags hold information such as item name and price.

 RFID systems utilizes electromagnetic waves which easily causes transmission jam

Reader crashes  occurrence  when more than one  signals collide in card readers or when  there is a signal  overlap  

It is possible to read RFID tags at more  greater distances with a high quality cameras which can pose a problem for the retail store  

RFID is expensive to install and maintain therefore increasing store expenses

Every retail shop requires operational and strategic procedures for increasing sales, improving marketing strategies and managing business operations (Doward, 2012). The market place nowadays is driven by customers and customer satisfaction and experience is increasingly becoming a major discipline for establishments that want to stay ahead of competition (Beaujean et al. 2006).  Over 70 percent of purchasing power is based on buyer feelings in terms of how they are being treated in the businesses (Beaujean et al. 2006). Therefore,  understanding  customers in terms of their  shopping behaviors as well as understanding  developments in the retail markets plays a  major role in establishing  an important foundation on which to provide a successful  customer relationship management,  where customers become content and satisfied (Doward 2012). In such a case, businesses also find themselves in a position where they are able to satisfy and maintain customer needs. The following are procedures that Oz supermarket can employ to increase their customer base and maintain it.  

Improving Customer Services and Business Operations

The management together with the sales and marketing department at the supermarket need to assess whether their customers are satisfied with the current products and services offered at the supermarket.

Oz can look into ways of training the store employee to better engage with the store customers (Aswani, 2015). Customers tend to always go back to business that look into issues that affect them and that treat them with kindness and respect.  Employees dealing directly with customers need to inquire how customers feel about their products and services. After receiving customer feedback, which is the data pinpointing areas that are in need of improvement, employees should go ahead and improve on these areas. This in turn will lead to high customer satisfaction and loyalty (Doward, 2012).

Oz Supermarket needs to incorporate strategic plans based on their customer base including providing quick responses to customer feedback that come through phone, mail or on the digital media. A Forrester study done recently indicated that about 41percent of online clienteles that checked product prices using their cellular phones usually ended up buying at other different retailers (Aswani, 2015). This is usually as a result of customer feedback and queries being ignored. Business should know that customers nowadays are using their internet enable phones to check services and products online. The online platform has become very active in actualizing business operations and business that want to increase and maintain their customers should ensure they satisfy them in all interaction platforms.  Customer insight allows for more informed decision making based on hard facts (Aswani, 2015). This will help Oz Supermarket be able to enhance their products and services and therefore increase general productivity at the same time retaining and increasing their customers.

Decrease card payment processing costs

Oz Supermarket may need to evaluate their credit card processing prices by investing time to comprehend all the fees involved in handling payments. This will enable the business to look into opportunities where they can lessen transacting costs (Rodriguez, 2014). Oz Supermarket financial department can check with the service providers and inquire about the particular charges for the transactions so that they can understand the figures but appears in your monthly statements. Comparisons with other similar service providers can help the business opt for the less costly options so as to reduce on business expenses. Where possible the supermarket can utilize technology to decrease overall costs of generating financial reports (Rodriguez, 2014).

Reducing Card Payment Processing Costs

Decrease  information technology (IT) purchasing and maintenance costs

Oz Supermarket management together with advice from the information technology (IT) department should regularly review the technologies and tools in use at the store. Remove the not needed tools and technologies and don’t buy software’s that are not very necessary for the business. If the business is using old software  systems, including obsolete point of sale ( POS) software, that needs improving  and is actually proving pricier to retain and provides fewer profits, it would be better to change and go for one that will improve business operations and productivity.  

The supermarket can arrange with their telecommunications and internet service provider to see to it that they are using paying for manageable internet plans or whether the providers have introduced other services that would lessen the business costs. Nevertheless, the innumerable benefits that information technology (IT) offers should not be disregarded (Rodriguez, 2014). The supermarket should keep track of the current advances in retail markets for solutions and to discover possibilities that they can will implement in accordance to their projected budget without exceeding expenses.

Creativity and Innovation

Competition in the corporate world is continually advances and for OZ supermarket will require to adopt to changes that will ensure they that they remain above the competitive advantage. The business can eventually add to its only non-perishable, household and stationery items in order to attract more customers. Without the perishable products like fruits and vegetables, customers may go to other stores that stock both and the supermarket will therefore lose them. It is therefore important they continually add and introduce more products and services to while evaluating the general customer responses.  Customers may require to see new and fresh products (Rodriguez, 2014).

Influence and control  the power of the internet

The Internet is increasingly becoming a vital   business instrument by connecting organizations with their customers (Steinfort, 2014). Oz Supermarket needs to use it for marketing their products and services. In addition the business can consider selling their products online sales for their products and services by delivering products to their customers. Furthermore, the supermarket needs to create online platforms for their online customer base whether they can capture feedback for customers and continue marketing their products. Vending is not only just resident anymore but with the dawn of the advances in the Internet technologies, the business can extend their selling base by utilizing it (Rodriguez, 2014).

The researcher commends Oz Supermarket for adopting technology to perform business operations. On the other hand, the researcher also recommends that Oz Supermarket improve on its business by taking on the proposed measures above for further productivity of the business.  

Conclusion

Technology is growing by leaps and bounds every now and then. Organizations that are utilizing information and communications technology (ICT) for their business objectives have already gained a competitive advantage over those that are yet or are slow to do the same. Incorporating information technology (IT) enhances business operations and increases performance and productivity in many functions including innovation, customer service and cost reduction. An information and communications technology (ICT) structure provides support for these enhancements by making it stress-free for establishments to interconnect, share resources and information and integrate business processes. Therefore, businesses including retail stores such as Oz supermarket need to be on the lookout for emerging and disruptive information technology (IT) that improve on business operations such as the ones suggested in the report above. This way they will be able to continue operating without being phased out by other similar

References

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https://www.clarabridge.com/blog/5-ways-improve-store-operations-customer-feedback-data/

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https://www.mckinsey.com/business-functions/organization/our-insights/the-moment-of-truth-in-customer-service

Darcy, Peter, Pupunwiwat, Prapassara, Stantic, Bela(2011) The Challenges and Issues Facing the Deployment of RFID Technology. Retrieved from

https://research-repository.griffith.edu.au/bitstream/handle/10072/44547/76173_1.pdf

Doward, L. (2017). What Can a Retail Store Do to Improve? Retrieved from https://smallbusiness.chron.com/can-retail-store-improve-21746.html

Elley, R. (2012). PayWave and PayPass credit cards answered!. Retrieved from https://mozo.com.au/blog/2012/01/paywave-and-paypass-credit-cards-answered/

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https://smallbusiness.chron.com/organization-leverages-its-business-goals-implementing-ict-infrastructure-36840.html

Rodriguez, G. (2014). How to improve your small retail store operations. Retrieved from https://www.powerhomebiz.com/managing-and-growing/managing/improve-small-retail-stores-operations.htm

Steinfort, M. (2014). 5 Ways to Improve the Effectiveness of Your Retail Operations. Retrieved from

https://blog.envysion.com/retail/blog/5-ways-improve-effectiveness-retail-operations