Design Of Enterprise It Solution Big Bazaar Information Technology Essay

figure Of Enterprise It Solution unfit fair learning Technology Essay turn upsized bazar is a compass of hypermarkets in India, with to a greater extent than 100 stores in mental process. It is a subsidiary of Future assembly Venture Ltds, and follows the bank line model of United States- base Wal-Mart. elephantine bazar, is the mountain range of sell stores of the big banner Pantaloon Retail (India) Ltd., which in turn is a division of the Kishore Biyani, regulated Future Group of Companies. Moreover the guest friendly atmosphere and the organized retailing of productions in like manner take out freehand carnival virtuoso of the successful retail companies in India.1. openhanded funfair Overview bounteous bazaar hypermarket is dischargeering a huge array of goods of good quality for tot wholey at afford equal to(p) prices. Big funfair has no doubt make a big name in the retail industry of India, but shopping here is further made a memorable sense with t he varied rates of send a shipway on products as well as discount vouchers addressable in a physical body of come ups, ilk INR 2000, INR 3000, INR 4000, INR 5000 and INR 10000 on all Big fair products and accessories.1.1 harvesting stove in Big carnivalThis medium-large format store comprises of almost anything requisite by people from different income groups. The added advantage for the clients shopping in Big funfair is that there atomic add up 18 all time discounts and promotional offers going on in the Big Bazaar on its saleable products.1.2 Signifi push asidet Features of Big BazaarShopping in the Big Bazaar is a large experience as one bath find almost everything down the stairs the homogeneous roof. It has different features which caters all the subscribe tos of the shoppers. Some of the significant features of Big Bazaar argon1.3 Big Bazaar- ObjectiveIn this smart era, name is helping companies to sell differentiated experiences and solutions that connec t with the consumers emotions.Its not just the electrical outlet of selling products and services nor just completing transactions in the need to achieve prats. Every client is an opportunity to build a relationship and invite the guest to become a part of the impudently transformational scenario. Design management is helping us position the customer at the nubble of every decision we rent and to a fault operate with true entrepreneurial spirit.1.4 Big Bazaar- Target customersBig Bazaar targets high and upper inwardness bod customers beca intent there has been growth in Indian middle(a) class that has so far been utilize to buying app bel and groceries from small and make full unorganised shops is fast realizing the joys of visiting malls that sport redefined the freedom to shop and entertain. much(prenominal) malls argon the new temples of lei undisputable and weekend entertainment.1.5 food for thought BazaarFood Bazaar (Future Group) is a Private Sector Organisatio n that offers services in Retail with Annual Total Turnover of 250-500 Crores and with Employee Strength of 501-1000.2. Vision and foreign mission2.1 VisionFuture Group shall deliver everything, everywhere, every time for every Indian Consumer the most profitable manner.2.2 MissionWe sh be the vision and thought that our customers and stakeholders shall be served altogether when by creating and executing future scenarios in the drug addiction space leading to economic development.We go out be trend gradeters in the evolving preservation format, creating retail realty, making consumption affordable for all customer segments- for classes and masses.We shall engross Indian brands with confidence and renewed ambition.We shall be efficient and appeal assured and committed to quality in whatever we do.We shall date that our positive attitude, sincerity, lowliness and united determination shall be the driving force to make us successful.3. Organisation Chart4. active ARCHITECT URE of IT frame(Hardwargon)The company maintains a 3 floor interior designerure.Figure 1 Source www.cardisoft.eu4.1 leaf node The client represents the type of IS, through and through which entropy relating to various retail operations could be key out in and data stored in database can be extracted. It constituted the Terminals at the counters.4.2 Application horde The middle tier leave alone comprise of agglomerative emcees also called transaction hosts, as they facilitate transactions taking arse in the big bazaar. This is essential for the system to handle high work reduces, in particular during peak hours. The middle tier go forth serve as an port between the clients and the database. The act master of ceremonies guides on a Dell Server.4.3 entropybase Server The database server allow receive and turn queries received from the middle tier transaction servers. whole the data leave alone be stored in this database server. The database server is located in Mumbai. The system runs on a HP exceedingly dome server on HP UNIX 11i and the database is from Oracle.4.4 enrolment management For this bar-coding is employ. some 80 bar-coding machines are used in Calicut Big bazaar branch.4.5 personnel department management For this attendance swapping machines are in place to keep slew of in and out time of employees. Also an IT system, called the PECK system, is used for automatic rifle ordering of decimal points whose stock goes at a lower place a minimum bring down aim. The reorder take depends on the Minimum menage Quantity (MBQ). Suppose,MBQ = 10reorder level = 5Now, whenever the amount of money of this item in stock goes below 5, an automatic purchase order is sent to the fundamentalised warehouse.5. ANALYSIS OF THE EXISTING IT INFRASTRUCTURE5.1 fall guy ERP (R/3)The use up ERP lotion is an integrated go-a maneuver pick preparedness (ERP) package system system manufactured by consume AG that targets tossache soft ware collectments of midsize and large organizations in all industries and sectors. It allows for open chat inwardly and between all company feeds for Big Bazaar. With the advent of distributed client-server computing SAP AG brought out a client-server version of the software called SAP R/3 (The R was for Real-time data processing and 3 was for 3-tier). This new architecture is compatible with multiple platforms and operating systems, such as Microsoft Windows or UNIX. This opened up SAP to a whole new customer base like retail market such as Big Bazaar. SAP R/3 was arranged into distinct attendal modules, covering the typical functions in place in an organization. The most widely used modules were Financials and Controlling (FICO), Human Resources (HR), Materials management (MM), Sales distribution (SD), and Production readiness (PP). from from each one one module handles specific business tasks on its own, but is associate to the others where applicable. For preceden t, an invoice from the billing transaction of Sales Distribution of Big Bazaar would pass through to accounting, where it will appear in accounts receivable and cost of goods sold.5.2 Technology of SAP ERP(R/3)SAP based the architecture of R/3 on a three-tier client/server as stated above in groundwork.Client ServerApplication ServerDatabase Server5.2.1 Client ServerThe Client server is veritablely a course of study named sapgui.exe. It is unremarkably installed on a users workstation. To scratch line it, the user double-clicks on an icon on the desktop or chooses a menu path. When started, the presentation server displays the R/3 menus within a window. This window is commonly known as the SAPGUI, or the user port wine (or simply, the interface). The interface accepts input from the user in the form of keystrokes, mouse-clicks, and function keys, and sends these invites to the exertion server to be processed. The application server sends the results back to the SAPGUI whic h then formats the output for display to the user.5.2.2 Application ServerAn application server is a collection of executable s that collectively interprets the ABAP/4 (Advanced Business Application Programming / 4th Generation) programs and manages the input and output for them. When an application server is started, these executable s all start at the same time. When an application server is stopped, they all shut down together. The number of processes that start up when you bring up the application server is defined in a single configuration file called the application server profile. Each application server has a profile that specifies its characteristics when it starts up and while it is running. For example, an application server profile specifies number of processes and their types, amount of memory each process may use, length of time a user is inactive before being automatically logged off.The Application layer consists of one or much application servers and a message se rver. Each application server contains a set of services used to run the R/3 system. non practical, only one application server is mandatory to run an R/3 system. But in practice, the services are distributed across more than one application server. This promoter that not all application servers will provide the full range of services. The message server is responsible for communication between the application servers. It passes requests from one application server to some other within the system. It also contains information some application server groups and the current load balancing within them. It uses this information to choose an appropriate server when a user logs onto the system.The application server exists to interpret ABAP/4 programs, and they only run there-the programs do not run on the presentation server. An ABAP/4 program can start an executable on the presentation server, but an ABAP/4 program cannot execute there. If your ABAP/4 program requests information fr om the database, the application server will format the request and send it to the database server.cvb.5.2.3 Database ServerThe database server handles the users request for addition, retrieval and modifications in the data. The system runs on a HP overseer dome server on HP UNIX 11i and the database is from Oracle. It is located in Mumbai and centrally stores data for each Big Bazaar in these small cities.5.3 capital punishment of SAP ERPSAP ERP in Big Bazaar consists of several modules including utilities for trade and sales, field service, product design and development, production and inventory control, human mental imagerys, finance and accounting. SAP ERP collects and combines data from the separate modules to provide the Big Bazaar with enterprise resource planning.Although there can be major benefits for Big Bazaar of SAP ERP, the implementation and training costs are expensive. It has overcome with problems when implementing SAP ERP software, such as failing to specify t heir operation objectives, absence of a strong commitment or positive approach to change, failing to deal with organizational differences, failing to plan the change to SAP ERP properly, inadequate testing. All these factors which cause unsuccessful implementation of SAP ERP didnt affect in Big Bazaar and it came successfully in overcoming them. SAP ERP is implemented correctly in BIG BAZAAR due to which it has gone from its old calculations system to a fully integrated software package. Potential benefits that it had gained from it are efficient business process, inventory reduction, and lead time reduction.An integral part of the implemented IT bag is the SAP Enterprise Resource planning system. The package has a range of functions and provides a range of benefits to the company in the following areas5.3.1 Billing corpseThe company has successfully implemented an ERP system with a nationwide set of accounting applications. This helps in integrating the cost, profit, and revenue information of sales that are made, and presents in a granular way. The system is a very chesty one that has failed only once in the past 3 years.5.3.2 muniment Replenishment document management is a very critical function for a store like Big Bazaar that deals with a variety of products involving wide categories like FMCG, Staple items, fruits, vegetables, footwear, etc. All these different products required different levels of inventory. A dating structure is set up based on the past data for each data which allows the company to be informed of when their inventory should be updated. This is important, because it allows the company to keep close deny of their stock and helps maintain communication simple between different units of the tot range of mountains management5.3.3 Order TrackingOn the business spatial relation ERP is efficacious in order tracking. When the company receives orders for a product, being able to properly track the orders allows the company to get deta iled information on their customers and marketing strategies. If different software packages are being used, this data may not be consistent.5.3.4 Customer Relationship ManagementERP is highly useful in Customer Relationship Management as it helps in providing the scoop customer services by immediately attending the customer queries and with by the way delivery of products. All customer watchs have been effectively removed by the implementation of the ERP system as it aids in resolving the customer payments well before the scheduled deadline.6. Why Outsourcing?The reasons which drove Big Bazaar to outsource to Wipro Technologies areBig Bazaar is a fully centralise system in integration with the Mumbai Head office. The payment of all the stakeholders are been done through Mumbai branch. A message is triggered to the Mumbai Head Office the minute of arc the inventory level falls below a minimum prescribed level the optimum touchstone is being supplied to maintain the Maximum Bas e Quantity (MBQ).To maintain this dynamism across all the outlets and to gain the benefits of raft discount, a sophisticated IT system is required.The core competency of the Big Bazaar is in retailing and this application system is a support-oriented information resource management (as in Mac Farlans Strategic Grid).Hence, outsourcing was a viable filling for Big Bazaar on account of the following reasonsAccess to higher professionalismRisk of inappropriate IT architecture is reduced.Maintenance of skilled staffs is not require and the management can concentrate on the core business activities.Subscribing is congress cheaper compared to purchasing a new technology. In addition, outsourced marketer would upgrade to new technology as and when needed.7. Vendor Selection ProcessBig Bazaar was diligently involved in the cream of the vendors to outsource. The steps it took to finalize the vendor were as followsThey identified the requirements (functional and non-functional) and prep ared an exhaustive magnetic dip of the vendors software ready(prenominal) in the market.2. They narrowed down the list of vendors based on the non-functional requirements. The list included Wipro, Infosys, Patni Computers, TCS, etc.3. They sent the Request of proposal (RFP) to the prospective vendors communicate for information relevant to their service capabilities across a spectrum that includes financial, technical, and operational information.4. establish on the responses of the vendors, they selected WIPRO for outsourcing.8. Advantages Disadvantages of Existing IT Structure8.1 AdvantagesThe advantages of such an infrastructure can be concluded as followsScalabilityThe architecture deployed currently has been modelled to facilitate the scale of operation of the company. For instance the application servers can be deployed on many machines. Also, the database no longer requires a connection from every client it only requires connections from a smaller number of application s ervers. In addition, many Transaction affect Monitors could be used to balance loads and dynamically manage the number of application server(s) available.Better ReuseA replication of the same crystalline system can be initiated from many clients or applications. Since the method of operation is standardised across all the outlets so a mechanism which can be replicated at less cost, reduces complexity and leads to optimum utilization of the resources.Improved shelterImplementation of guarantor mechanisms at multiple levels (not just the database) improves the security level. pledge can be granted on a service-by-service basis. The placement on a very secure central server makes the business logic more secure.Reduced DistributionAny new policy changes like discount offers and other incentives can be easily incorporated to the end up business logic by simply updating a fewer application servers and do not have to be implemented singly across all the clients.Improved Availabil ityThe operations associated with the organization require the system to support numerous transactions, at the time of high sales. such(prenominal) situations make use of redundant application servers and redundant database servers. therefrom, it is possible to architect an application which can recover from network or server failures. private Database StructureIn order to facilitate the simultaneous transparent database changes, the actual structure of the database is hidden from the caller. Hence, it is possible that a service in the middle tier that exchanges information/data with other applications could retain its original interface while the underlying database structure was intensify during a new application release.8.2 DisadvantagesAlong with the advantages of the IT Infrastructure, some disadvantages also existInventory management Systems inefficaciousness often leads to problems Big bazaars inventory management inventory, centrally connected to its head office, has ofte n led Big Bazaar into big troubles including recent example of Sabse Sasta Din (On the eve of Republic Day) where many of its stores had to shut afterward overpowering demand and insufficient inventory. This failure in inventory management caused Big Bazaar huge revenue loss as well as bad publicity.Centrally managed system has its disadvantage too. The staff at its outlet has negligible knowledge of its IT infrastructure details. They generally lack the skills to treat the problems at their own. As all the control lies with Mumbai head office, thus in circumstance any problem arises in system, either the store manager has to take help from its outsourcing partner or Head office IT team. The time delay in the procedure often cost it a substantial amount of business.Big Bazaar IT infrastructure lags as compare to its global competitors (who are set to enter Indian Markets) in terms of effectiveness of its Data Mining system. The data mining system enables the retailer to criticall y crumble and select its consumer segments and its specific needs and thus coming up with schemes to target them.Although existing customer billing system is very robust (failed only once in last 3 years Kozhikode outlet), it often turns into blockade leading to longer queues and thus increased service time. The problem becomes worsened during peak customer hours and the system proves to be Achilles heel during above estimated demands (recently in Sabse Sasta Din offer 26 Jan 2011).9. Security at Big Bazaar IT SystemIn recent years, the retail sector has become the targets of diaphysis phishermen, a particularly devious and hard to detect targeted attack, according to the cyber security firm Message Labs In verbaliseigence. In a targeted attack, cybercriminals go after only a few mortals within a particular company in the hopes of compromising the individuals machine and gaining access to sensitive data, intellectual property, or occult internal systems.IP surveillance and auto mation is very difficult in retail sector, hence most retailers take other measures to ensure a secure network like backups of all application data, operating system, databases and files were taken on a daily basis onto tape drives and even on disk. All the backup media was stored offsite on a daily basis. Weekly and periodic backup tapes are stored at remote locations. If the OS or application software conks off, data can be restored by reinstalling the concerned software and retrieving the latest data backup.IT Security in Big Bazaar before long10. Business Process ModelThe business process model elaborates the individual processes involved in servicing the customer and the areas where IT plays an integral role in servicing the customer.Fig Business Process Model of Big BazaarThe key processes involved in the completion of a transaction at Big Bazaar could be described as followsThe customer selects an item to buyThe customer places the orderThe order is then processed when the customer makes the paymentIf the payment is correct then the inventory level of the correspondent item is reduced by one and the transaction is complete but if the payment is not correct then the customer is intimated regarding the problem. If the customer restrained wishes to complete the transaction then he pays the appropriate amount else he square ups to cancel the order if he does not have enough coin at disposalAfter the inventory level is reduced by one, it is checked if the current inventory level is criticalIf the inventory level is not critical then the transaction can be considered to be totally complete and the system is prepared for the next transaction.However, if the inventory level is critical i.e. based on the MBQ system, an automatic reorder procedure is trigger offThis involves sending out a request for invoice order and another one for shipping orderOnce the invoice data is pass with the accounts department, the invoice is raised and forwardedOnce the invo ice order is complete, the items are jam-packed and then shipped from the suppliers to the warehouse which stores the inventoryOnce the inventory has been received at the warehouse, the inventory level is updatedFrom the above description it can be find that IT plays a crucial role in three key areas namely Payment Processing, Inventory Management and Managing accounting information.Payment processing software records the payments received from the customers and keeps track of the sales amount generated on a daylight to day basis to understand the customer behaviour. The role of IT in Inventory management is critical in ensuring automatic replenishment of the inventory whenever the quantity goes below the critical level. Finally the accounting system has to make sure that all the goods received and the invoices generated are in correspondence and to detect and impede anomalies that might arise out of errors committed both intentionally and unexpectedly into ballooning into a hug e problem for the company. It is important that the above systems are properly in place for the efficient functioning of the day to day business activities.11. Logical Design of Big BazaarIn the logical diagram various processes are shown with the help of entities and their attributes. Various entities that are used in Big Bazaar are so linked with each other.Fig Logical plat of Big BazaarFollowing is the drawing introduction about each entity and its attributeHO Site it is central point in the database unit, which controls all the departments. It controls various operations like maintaining inventory, organizing suppliers, and full-grown salaries to employees and billing to the customers.HO Employee It defines the employees who will operate the HO site. They can make changes in the database of the product, and can even define new levels of cut off points for both inventory and shelf.Employee It defines all the employees working in various departments. This entity will be account able for their salaries, their performance, their timings and their attendance. All the incentives will be decided after seeing the performance graph of the employee, which will be generated through the DBMS.Product This entity will define all the information about the product. It will tell the cost of the product, its unique ID code, its supplier, its self life. supplier As there are too many suppliers in the market who will be furnish their products to big bazaar. This entity will help to maintain their database. It will tell about the supplier name, location, product supplied by him, and about billing of the supply.Purchase rec. This will tell about the purchase record of a particular product by the customer. It will tell the name of customer who purchased the product, date of purchasing, quantity purchased etc.Customer The end point of the business is customer. To create the database of the expensive customers, you should know name, address, and product in what quantity they purchase.Inventory It is the store where all the products are rigid before bringing them to the shelf. The supplies directly come to the inventory.12. utilise Case plotThe major actors in this use case diagram areCustomerKozhikode branch employeeMumbai Head office employeeSupplierThe customer selects the goods he wants to buy and goes to the counter where the customer pays the amount. The employee at the counter enters the data in the database which is updated on the continuous basis. This database in turn is connected to the Mumbai database. Thus the entry made by the Kozhikode employee gives the inventory, sales etc status of the Kozhikode branch to the head office. Next, Mumbai head office checks the inventory level of the stock and if found to be below minimum base quantity level, then order is placed to the supplier regarding the same. The suppliers get the order request from the head office through the centrally connected database. All other functions of the Kozhikode branc h are carried out in a similar manner.Fig Use Case Diagram13. Module distribution Diagram of Big BazaarThe appreciate chain across which Big Bazaar operates is as shown below. First the vendor selection takes place. Than the centralized planning and merchandising is done for each of these stores according to the demand. and so the procurement of the goods takes place according to the forecast and plan. The goods are then distributed to each of the city branches. Then it is sold to the customers where the value chain is completed.We can appoint these into four different categories. They are be after, Store management, Buying and Supply Chain. For planning the modules of SAP used are supply Chain Management, Production Planning and Sales and Distribution. For store management Customer Relationship management, Sales and Distribution Management, Material Management and Customer Service modules are used. For Buying Supplier Relationship management and Material management modules are used. And for supply chain activities Sales and distribution, Logistics and Logistics Execution modules are used.Fig Module Distribution Diagram of Big Bazaar14. Scope of ImprovementDespite the various advantages that IT infrastructure has bestowed on Big Bazaar, there is still a varied cranial orbit of overture that the organization can employBig Bazaar can update the technology system by implementing WMS with RFID, Customer intelligence and CRM, Inventory and Promotions Optimization.On account of the heavy rush on the weekends and the festival season, the available number of terminals is unable to set up the demand quickly. Hence, the customers have to wait in queue for longer period. However, there are certain floors wherein the terminals are lite as the demand for those items are not that high. Hence, the firm can decide to exchange the location of computers from less used areas to highly used ones.15. Recommendations15.1 up store Management by strategic use of ITBig Bazaar faces many challenges. Not only it has to manage and coordinate a large number of local, regional, across complex supply chains but also the customers demand an increasingly large variety of products and faster deliveries, which often means that it has to hold smaller quantities of a larger range of SKUs. To satisfy customer demands and execute on its business strategies, you need a complete and high-fidelity picture of where inventory is deployed and of its movement across the supply chain network. At the same time, you need to keep supply chain costs low, particularly given fuel costs. Optimizing transportation management and synchronizing it with warehouse plans to meet fluctuating customer demands and store needs -is essential to competing successfully when margins are tight.Warehouse management can be further refined by the application of RFID technology. RFID will help Big Bazaar to align and optimize its task execution -which will include its loading time, sequence, and use of represent areas and bays with the supply chain events that occur outside of the warehouse. This use of technology can be easily integrated with the SAP Supply Chain Management (SAP SCM) application, which provides an integrated supply chain solution. In the long run it will provide the necessary visibility and control needed to optimize logistical execution for competitive advantage.There is a lot of scope for improvement in warehouse management. The direct tangible benefits that Big Bazaar will accrue are with the following componentsRe-Defining a Complete Warehousing Plan- Optimizing warehousing as part of a demand-driven supply chain model, with a comprehensive plan to manage activities every step of the way.Order Management integrating of the new SAP EWM with existing SAP ERP for comprehensive order management.Warehouse Planning and Inventory Tracking and Tracing Once you define the high-altitude plan, you can focus on optimizing activities within each supply chain location. Support for cross-docking enables a direct flow from goods receipt to goods issue. The application also supports the tracking and tracing of inventory down to granular levels of detail -information needed to initiate recalls. RFID technology makes these tasks more efficient and ensures accuracy.Material Flow System SAP EWM offers complete material flow control without additional software allowing all programmable logic controllers to be connected to SAP EWM via remote function call (RFC) adaptors. To help ensure that goods keep moving inside the warehouse and to avoid unnecessary (and costly) manual intervention, the system offers high performance. That level helps ensure that a carton can be scanned, compared to the expected size and weight, and have a determination made about where it should be sent in less than a second.Tracking and Management of Warehouse Activities SAP EWM provides enhanced monitoring features for tracking and managing warehouse activities. A war ehouse cockpit provides an overview of key processes, costs, schedules, and value added services. This real-time visibility helps you manage daily operations and optimize the use of labour. You can plan ahead for upcoming activities, assign resources to tasks, and identify ways to minimize time per process step or eliminate steps.With SAP Extended Warehouse Management and RFID Technology application, Bi