Technology in Retail Management Activities

Effectiveness of Technology

The success of many business organizations is determined by the relationship between consumers and business owners. On many occasions, the freedom of consumers has been found to pose challenges to business. Most consumers have the habit of shifting from one organization to another in search of goods and services that please them (Berman and Evans, 2007). However, the effort of many retail managers is so efficient in attracting such customers. Most retail managers use technological devices in figuring out appropriate ways for reducing cost for goods and services in their stores. Technology enables retails managers to both meet the needs of their customers and reduce the rate of losses incurred in business transactions. In this paper, I will outline and detail the contributions of technology towards the success of retail managers in carrying out management activities.

Before the invention of technology, most managers had hard times in meeting the demands of many buyers who visited their stores. However, with the invention of technology, most retail managers attend to their buyers without getting into contact with them physically. Technological appliances not only aid in serving many customers at a time but also in identifying and charging consumers who love shoplifting (Berman and Evans, 2007). The introduction of customer relationship management (CRM) software also assists retail managers significantly. In addition to playing a great role in speeding cashiering, CRM also enables retail managers to monitor the movement of customers within a store. CRM also plays a significant role in not only keeping customers’ information for future retrieval but also assist POS in gathering crucial information needed for reducing the time spent by customers in making payments (Rainer and Turban, 2009).

Before the introduction of technology, retail managers relied considerably on manual calculators in calculating inventory levels, entering figures in receipts, and summing taxes. However, the introduction of Point of Sale systems has contributed immensely to the success of many retail managers. In addition to POS systems aiding in producing automated receipts, it also enables retail managers to track crucial information about inventory transactions. Additionally, POS systems aid retail managers in preventing the accumulation of losses by enabling them to retrieve relevant information such as annulled transactions; price supersedes, and excessive credit business deals (Rainer and Turban, 2009).

Before the introduction of technology, most retail managers relied on issues such as the status quo and competition in making their business decisions. However, the current advancement in technology has played a great role in the field of business. Technological devices like data warehouses provide retail managers with managerial tools that enable them to make appropriate business decisions. Also, the collection and storage of information in the data warehouse enables retail managers to reduce the chances of making risk management decisions. For instance, management at Staples was forced to implement a time analysis tool that enabled them to identify consumer drifts and make appropriate retail decisions to meet customers’ expectations.

An increase in competition among organizations also led to the introduction of technological devices such as barcodes, shopping carts, and radio frequency identification. These devices play significant roles in boosting the role played by retail managers. For instance, RFI assists retail managers in managing the transactions taking place in stores. It does this by automatically recognizing and tracking tags attached to goods (Rainer and Turban, 2009).

The invention of electronic data interchange has also contributed to the success of retail management. It facilitates the exchange of information about business transactions from computers to computers. It also enables the communication between stores and vendors databases thus enhancing inventory management.

Although technology proves effective in enhancing the success in retail management, its use may present many face ups to the retail managers. For instance, the continuous change of technology enforces many retail organizations to act quickly in the identification and adoption of technological elements that are cheap (Berman and Evans, 2007). The unique capabilities of retail management technology also pose a great challenge to retail managers. Retail managers encounter hard times in selecting the right information from technological devices for decision making.

Most organizations also depend entirely on technology in driving business needs. This overdependence on technology in running organizations often exposes organizations to dangers. Thus, retail managers ought to use business needs in driving technology and not vice-versa. It is also evident that the act of customers familiarizing themselves quickly with the use of new technology possesses a great challenge to retail management. With the adoption of new technology, the expectations of customers rise to pose a threat to retail managers. Customers’ quick adoption of new technology enforces retail managers to invest heavily in innovation to meet customers’ expectations.

In conclusion, the invention of technology has contributed immensely to the success of organizations. It has enabled retail managers to carry out their responsibilities efficiently in diverse areas. Devices such as POS enable retail managers to access and store customers’ information for quick retrieval. POS also enables retail managers to keep track of customers fond of shoplifting goods from stores. However, retail management technology also poses a great challenge to retail managers. In addition to being very expensive, technology changes daily. Most customers also adopt the use of technology quickly enforcing retail managers to invest in innovation to meet customers’ expectations.

References

Berman, B., & Evans, J. R. (2007). Retail management: A strategic approach (10th ed.). Upper Saddle River, NJ: Prentice Hall.

Rainer Jr, R. K., &Turban, E. (2009). Introduction to information systems: Supporting and transforming business (2nd ed.) Hoboken, NJ: Wiley.