Assignment Set- 1

Q1. Explain the importance and benefits of IT in Retail Management. Ans.:Importance of IT in Retail Management Retail has always been a challenging business. Before the evolution in the field of IT, retail business was conducted in a very simple manner. In India retailers in the past would conduct business from the store and also lived with their family in a portion of the store. They would just mount a nameplate outside the store and start retailing. No substantial effort or advertising was done to draw customers to the store. Word-ofmouth was the only form of advertising. Retailers were satisfied with the limited customer base they had and the limited income they earned. Overtime, retailers became more ambitious and the IT boom led to the evolution of retailing. Today retailers use various information systems to study the market, expand the stores, increase the customer base, get more profit margins and manage the entire business more efficiently. Modern retail is a planned business. The business decisions such as where to locate the store, identifying and targeting the right customers, deciding from where to buy inventory and how much inventory to buy, when to reorder are all planned. Even deciding how to market and advertise product and store is pre-planned. Increasing the footfalls and the customer base, gaining customer loyalty, customer and employee safety, billing, customer service, and staffing and scheduling are all planned well in advance. IT makes life easy for retailers. All these activities are today strongly influenced by or use IT. In this unit, we will study how IT helps in performing the above mentioned business activities. Benefits of IT in Retail Management In the above section we have seen that technology plays a powerful role in successful management of retail. This section will highlight the benefits of IT in retail management. IT helps in planning retail business strategically, implementing it, and analyzing the performance. IT helps retailers to maximize profits and minimize losses. It saves time and gives quick return on investments if used correctly. Helps in building strong customer relationships.

Ensures there are right products, in right quantity, at right price, and at the right place. Increases employee and customer satisfaction levels. Decreases physical workload on store staff. IT helps retailers to hire right staff and schedule as per their expertise or skill set. Traditional retail businesses involved a lot of physical and manual work. As time passed and technology evolved, retail business took entirely a new dimension. Retail today is not only about selling goods to customers, it is all about customers. Retail has become a customer driven business. For success of a business and to acquire more customers, retailers are concentrating on customer relationship and customer satisfaction. To achieve both at the same time retailers are investing in modern technology. They are buying and installing software that can automatically capture customer data, study it and through results indicate actionable parameters. Q2. What is RFID? Explain how RFID works. Ans. Radio Frequency Identification (RFID) RFID is the most advanced technology used in various industries. It is used in the hospitality industry, health industry, fashion industry, communication industry, libraries, human identification, and in retail. In the retail industry it is used for a multitude of purposes such as: Asset management Security Promotion management Being the latest technology, RFID is little expensive. So, as of now mainly the large and medium scale retailers in India use RFID. However RFID costs are decreasing day by day and soon small retailers will also use them for business efficiency. Retailers are using RFID today to reduce costs, increase sales, be more competitive, streamline processes, give better customer service, and be more efficient. Let us understand RFID from retail security perspective, how RFID works and what are the benefits of RFID? 2.1 How RFID works? Tracking products Supply chain management

RFID stands for Radio Frequency Identification. RFID has two main components a reader and a tag or label. The reader asks a question to the tag or activates it using a radio signal, the tag provides required information, and using this data the reader takes the necessary action. The reader then sends and saves the data in a computer. Technically, the reader consists of an antenna and transceiver (a transmitter and receiver). A tag consists of a transponder (transmitter and receiver that receives a radio signal and transmits another signal as a reply). Let us consider an analogy to understand the working of RFID. If you want to watch a specific TV channel or change the TV channel what do you do? You pick up the remote and press the channel number suppose you press 103 for Star Plus. The TV quickly searches the channel number 103 and displays it within a fraction of a second. Here, the TV remote acts as a reader and the TV acts as a RFID tag providing the information.

The data that the tag sends to the reader may include the identification number for a product, its colour, shape, size, price, date of purchase, date of expiry, shelf life, or even the location of the product.

There are two types of tags Passive and Active tags. Passive Tags These tags are called as passive tags because they do not have their own power source. They use the power from the antenna of the reader. Thus, they

have to be placed close to the antenna. The passive tags wait for the query or signal from the reader. Active Tags As the name indicates these tags are active and are powered with an individual power source or battery. They need not borrow the power from the antenna nor do they have to wait for the signal form the reader. They can transmit and receive information on their own. Q3. Explain any two factors affecting IT in Retail. Ans. We know that IT requirements differ according to the business case. Requirements of technology for small business are minimal. This is because less SKUs are sold, customer base is small, and operations size is small. Therefore most small retailers dont use IT for doing business. They prefer to order stock via phone and manually bill products. They are happy with the way they are running business. IT solutions have solved many problems for medium and large retail business. Thus, medium and large retail business invest considerable amounts in implementing technology in their business. IT solution boost sale, enable retailers to provide better service, and gain more profit margins. More profit is the bottom line for any business. Therefore, IT empowers retailers to gain more profits. Retailers have to be convinced to implement IT in the business. Adopting IT is an important decision. IT changes the way of doing business. Retailers need to consider many factors that affect acceptance of IT. The list of factors that affect the business decision of adopting IT are: Ignorance Mindset retailers Cost of buying, implementing and maintaining IT Return on investment of the IT solutions Scale of operations of a business(small, medium and large) Skilled IT manager Value for money Perception and understanding Lets illustrate some factors.

Mindset of retailers Mindset of the retailer is the next factor that affects adoption of IT in retail business. they typical mindset is I have survived without IT till now. the retail business can still do well without usage of IT. Retailers do not want to change their mindset to adopt new technology to improve business and gain efficiency. Only a cost benefit analysis will compel retailers to change their mindset. Skills for IT manager Along with the above factors, skills of an IT manager also affected adoption of IT in retail business. IT manager ability to understand , convince and talk business is very important. It is the IT managers responsibility to recommend technology to be used. Thus, along with IT recommendation they should be able to highlight the requirement and present a business case Value for money Indian customer shops for value. Even retailers need value for money, when they invest in IT solutions. Thus, if retailers see value in an application they will be back to adopt and upgrade their system or applications. However, IT solutions providers should be able to show retailers how their business can benefit from IT and how retailers will get the value for money. If IT cos fail to do so, retailers would definitely hesitate to invest in IT. Q4. Whats the future of IT databases and networks in retail? Ans.:Information Management Systems: Advanced and more sophisticated information management systems will be introduced. Effective management of customer information will help retailers in maximizing availability of right products, at the right time, in the right place. Also, these tools will help in optimizing the pricing and promotion decisions. Retailers today are using IT applications to improve operational efficiency. However most of them lack in data and process integration. Thus, in next few years retailers will concentrate on data and process integration across the business. As a result all the stand-alone operational processes such as transportation, store operations, or warehousing will be eliminated.

The current database management technology is very strong, however it still has potential for improvement. Along with integrating organized and unorganized data DBMS will provide virtual access to data. It will make data management more easy and efficient by automating majority of the tasks and intelligence. According to Forrester businesses have large amount of data stored. Close to 90% of this data is still unorganized and 5% of this unorganized data is stored in the database. This creates an opportunity for businesses and DBMS to integrate different types of data and content. In future DBMS would integrate structured, unstructured, and semi-structured data. This will improve the sharing of information between users and data in the database will be better controlled. Future DBMS may also support the data in its native or raw form, still performing efficiently. It will also support the information fabric and data virtualization. Data virtualization is a concept of providing a single access point to manage and view the entire database irrespective of its source and location. Thus, the future databases will only be better, harder, faster, stronger, cost effective, efficient, and user friendly. Q5. What the types are of Retail IT Hardware Equipments? Describe about Digital Displays and Hand Held Terminal. Ans.:A typical retail store can be divided into three areas Backroom, sales floor, or shop floor, and checkout or point of sale area. Various information systems or technology tools are used in these areas, thus there is also associated hardware. Different types of hardware used in these areas i.e. backroom, sales floor, and checkout area. Hardware equipment in backroom: Workstations, servers, access control systems, security systems. Hardware equipment on sales floor: Weighing scales, digital displays, HHT, selfservice kiosks Hardware equipment at checkout: POS hardware Remember; Hardware & software used may depend upon the scale of retail operations. We will discuss all possible hardware equipments used by large-scale retailers. As per the need and affordability small and medium scale retailers may also use some of these hardware equipments. The number of equipments used also depends upon the scale of operations.

Digital Displays Digital displays are used to advertise products in store. These displays are attractive and are located at a place where customers can easily view them. The hardware for digital displays includes the TV screen or a monitor and audio output equipment. Hand Held Terminal Retailers use HHT for stock control, replenishment and barcode printing. The barcode on the merchandise is scanned and the item description is recorded. This merchandise description is validated against the data fed in a computer in the backroom.HHTs may also be used scanning the merchandise barcode and printing a price table. User may select an option of printing the current price or price reduction. HHTs are also used for scanning merchandise price check, receiving inventory, managing waste and stock taking in stores. It is connected directly with the back office stock control application.

Assignment Set- 2
Q1. Explain the meaning of competency management and its framework. Ans.:A framework establishes relationship between information technology, strategic management, and competitive strategy. It is a detailed structure of SIS that helps understand and classify relationship between above three aspects. SIS framework illustrates how IT supports the business and plays a major role in increasing its efficiency. There are many IT solutions used in every business today such as retail management system, POS, CRM etc. Thus, there are also many frameworks for SIS. In this topic we will discuss few frameworks for SIS. Michael Porter has derived the following SIS frameworks. Porters value chain model: IT creates lots of opportunities to increase business efficiency. This framework refers to making the most of such opportunities. Porters competitive forces model: This model supports the competitive strategies for businesses. It identifies strategies and methodologies using which IT can be of great help in achieving competitive advantage. 1) Porters Value Chain Model

Porters value chain model is used to illustrate how IT affects competition. In this model the activities carried out in an organization are divided into two categories primary activities and support activities. Primary and support activities constitute a value chain. Value chain can also be defined as a set of activities an organization executes with the objective of adding value at every stage in a product life cycle. I) Primary activities These activities are linked to each other in a chain. Every primary activity adds value to the product or service offered by business. In modern retail IT solutions are used to support each of these primary activities. Use of IT creates additional value in making store operations more effective and efficient. Following are the primary activities in a retail business: Inbound logistics: Inbound logistics is the organized and economical flow of merchandise (or data) between different channels. Channels may be vendors, transportation providers etc. Efficiency in inbound logistics is very important for any retail business for its financial growth and customer satisfaction. In case the retailer has a self-brand (home brand) then the products are developed in house. Inbound logistics also refers to the transportation of required raw materials to the factory. Supply chain management software is used to increase operational efficiency of inbound logistics. Outbound logistics: This deals with the transportation of goods or merchandise from vendors, suppliers, manufacturers, or distributors to the retail store. Supply chain management software is also used making outbound logistics efficient. Operations: This primary activity refers to all the day to day activities carried out in a retail store. These activities include receiving products, replenishment, finance and accounting, assortment planning, reordering etc. IT solutions such as POS, accounting software, retail management software are used in daily operations activities. Sales and Marketing: This deals with collecting and analyzing customer data. Using this data the sales and marketing professionals can forecast the demand for products in store. Forecasting applications are used for this purpose. The data also helps the sales team to come up with new offers and promotions. Also, advertising is a part of this process.

Customer Service: Customer service could be considered as a part of daily operational activities. However, Customer service is considered as a separate entity in value chain model as it is the heart of retail business. No customer service, no retail business. To provide better customer service various IT tools such as self-service kiosks, HHT for billing, digital displays, CRM, self checkout or POS etc. are used. Thus, IT is used in adding value to each of the individual links of a value chain. Businesses need to find innovative ways and use right technology to perform each of these activities. If these activities are performed or executed better than the competitor, the business will definitely have a competitive advantage. II) Support activities These activities refer to that support the primary activities. These include: Firm infrastructure: This deals with values of a business, financial and accounting system, organizational structure, business planning etc. Human resource management: This includes hiring staff with required skill set, training and development activities, and compensation management. Technology development: Includes the use of advanced IT solutions to stay competitive. IT solutions could be CRM, security systems, BI, supply chain management etc. Procurement: Refers to the plan of building relationship and ensuring compatibility with suppliers, vendors, and distributors. Porter and Millar (1985) through their value chain model concluded IT creates opportunities. Also, competition has been affected by IT in three different ways: Industry structure and rules of competition have changed. Organizations have surpassed the competition using IT. Organizations have created new business opportunities using IT. 2) Porters Competitive Forces Model Porters competitive forces model supports in aligning competitive strategies with competitive advantage. Following are the objectives of this model:

It helps organizations to efficiently use IT to create a strong competitive image and position in the market place. This model enables retailers to understand the major sources of competition in the market. Forecasting the potential competitive threats is also an objective of this model. The model aims at following five forces that could potentially put a companys position in danger. The threat of entry of new competitors in the industry. Bargaining power of customers or buyers Bargaining power of suppliers. The threat of substitute products or services. Competition among existing companies.

The strength of each force is different and is determined by various factors. Threat of new entrants: The barrier or challenges for new entrants areEconomies of scale Identity of brand Financial requirements Cost advantages: learning curve, low cost products Product differences Switching costs Access to distribution Government policies

Bargaining power of buyers: Determinants of buyer power areBargaining leverage: Leverage in terms of volume, cost, information, ability to backward integrate, and product substitution. Price sensitivity: Price for total purchases, product differences, brand identity, buyer profits, impact on quality and/or performance Bargaining power of suppliers: Determinants of supplier power are: Differentiation of inputs Switching costs of suppliers Number of suppliers of the same product Importance of volume to supplier Cost of total purchases Substitute products or services: Determinants of substitution threat are:

 Price of substitute products Cost of switching to substitute product Buyers tendency to buy a new or substitute product Competition among existing companies: Determinants of competition are: Growth of the industry Product differences Switching costs Diversity of competitors Fixed costs for the business Brand Identity Complexity of business Exit barriers

Number of companies (or retailers) selling the same products It is very important for retailers (businesses) to overcome these forces. Porter suggested a strategy to overcome these forces. The strategy would help retailers to build a profitable and sustainable business. Keeping in mind following three pointers retailers can make a strong position in market and achieve more than average profits. Cost leadership: Customers are very much influenced by cost and quality of a product. Maintaining the quality and producing or selling goods at the lowest cost can make the business a market leader. For example: Wal-Mart is the biggest and oldest retail chain in USA. They sell goods at lowest cost, maintaining quality, which makes them a market leader. They use IS for operations management, buying and purchasing, CRM etc. They are able to reduce costs and delivery time for products. Therefore they are able to provide low-cost products in its stores. Differentiation: Being exceptional in the industry plays a major role in overcoming above forces. An example of being different could be providing high quality products or services at a competitive price. Focus: A business should focus on one segment and either be a cost leader or be unique in the market. For example: Dominos pizza is a market leader in its pizza home delivery business within 30 minutes. They also achieved a competitive edge by introducing an online ordering system. Thus, IT can be used to create a winning business. It helps retailers to overcome these forces and be competitive in the market. Q2. Is there any need for IT in retail management? If yes, what are the benefits of IT in retail? Justify your answer.

Ans.:In the introduction we have seen the evolution of retail management in India. In this section we will illustrate the role of IT in the modern retail industry and how it helped in the retail revolution. IT has become an integral part of todays retail industry. Information technology has completely changed the way people do their business and changed the way customers look at products. Today just selling a quality product is not enough to run a profitable business. Customers needs and expectations have increased due to competition and their buying power. To survive in the retail market retailers have to think everyday what they can offer over and above competitors. If the retailer cannot stand out in the market, it is hard to sustain in business. Modern retail industry offers customers a wide variety of quality products to choose from at affordable prices. However, due to growing competition, retailers struggle to create loyal customers. Loyal customers are created only when the business is run effectively and efficiently along with trained professional staff. Right inventory in the store enhances effectiveness and efficiency. Deciding right inventory requires use of modern equipments and applications i.e. software. This is where IT helps in the retail revolution. IT is used in store operations and retail management activities. IT is used in planning the business, implementing the plan, running the business and maintaining the business. In unit 1 we have illustrated importance of IT. This topic will recall some parameters describing need and importance of IT in modern retail industry. In traditional retail business, merchandise bills were written on a piece of paper. Word of mouth publicity was an established way of advertising the store or product. If some products were not in stock, customers would come back to the same kirana store next day or when the product is back in stock. Customers had very little choice to shop. Thus, they were more loyal to retailers. But in todays retail scenario, customers have a wide choice to shop. This is because of increase in competition. Assume two supermarkets A and B in your neighborhood. Both supermarkets sell same products grocery and other daily needed products. Retailer A and B have to continuously strive to gain an edge over the other. Retailers gain an edge over competition by giving excellent customer service, knowing customers, building relationships with customers and vendors. Retailers have to gain an edge over the others also by avoiding stock out, running offers and promotions, and by increasing customer base. This can be done manually if a store is small and manageable. Once customer base increases, retailers have to find out ways to work smart and fast. IT comes in handy.

Think of a situation if Bangalore Central or Shoppers Stop need to manually calculate the bill amount and write the bills. Imagine if they have to manually keep a track of all the operations tasks. These tasks include inventory flow (inventory received and sold), cash flow, reordering, running promotions, calculating payroll, building customer relationship etc. The stores would end up hiring too many people for the job. However, the manual calculations and observations would not be precise as there is always room for errors. Thus, big retailers invest around 8 to 10% of their capital in buying and installing IT applications. IT applications simplify and automate most of the business processes. Example for Simplify: Demand planning systems simplifies complex process of understanding product demand and level of inventory to be maintained in the store. Example for Automate: IT applications automate operational activities like assessing demand and controlling inventory. Products are reordered or replenished automatically by inventory management applications. IT systems are needed to fulfill the following requirements: Understanding customers by studying and analyzing customer data (feedback/past and current purchases) Build long term relationship with end users, vendors and suppliers Increasing store operations efficiency To have right product, at right time, in right place, and in the required quantity Reduce costs, maximize profits and minimize losses To hire people with required skills to do a specific job To take quick and correct business decisions Q3. What are the preliminary steps and goals while conducting an HR audit? Explain. Ans. The preliminary steps to be considered for audit are as follows:

You have to decide who will conduct the audit. HR audit can be conducted by the employees of the organization or any specialized outside agency can also conduct audit. Audit team and its members need to be decided first. Audit subject matter section is another important issue. Following can be considered for that: Leadership direction Senior-level management direction Priority rating assigned following risk analysis Agency suggestions Special requests from other DAS divisions or HRSD sections HR Audit Advisory Group recommendations

Then create a preliminary audit schedule. Meet with other Division or Department staff to gain information regarding HR functions, which are being audited. Next is to find the scope of audit. Conduct surveys or other research that will indicate the appropriate audit scope and purpose definition. Communicating about the audit is another preliminary issue. Send electronic message to HR List subscribers announcing preparation for upcoming audit, providing the preliminary audit schedule, and requesting input on potential impacts to agency operations allowing two weeks for response. Agencies identify potential impacts on agency operations that need to be considered during the upcoming audit and feedback on the preliminary audit schedule. Draft preliminary audit plan identifying the following: Purpose of the audit Scope of the audit Methodology of the audit

Now, plan up the various steps you would take for the audit process. Draft the audit review process including data to be used to perform review and tools proposed for use during course of the audit. Like you can use HR score card or audit questionnaire as effective tools for conducting HR audit. You should also conduct following preliminary steps:

Collect Pre-Audit Information: This step involves the acquiring and review of relevant HR manuals, handbooks, forms, reports and other information needed to acquire the necessary data for HR audit. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors. Conduct Pre-Audit Self-Assessment: In order to maximize the time spent during subsequent portions of the audit, a pre-audit self-assessment form, if sent to the client can be of use. This can be an important tool that asks a number of questions about current HR policies and practices. Q4. How do security tags and deactivators help in managing retail activities? Ans.:We have learnt that whenever merchandise with a tag attached to it is taken out of the store without deactivating it, the alarm goes off. This activity has to be logged in the EAS logbook manually. The data in the EAS logbook is studied, analyzed by the management and necessary action is taken. However, if the employees forget to enter the incident in the EAS logbook, the data is lost, corrective action against such incidents cannot be taken. In the traditional EAS systems the logbook entry, reports and analysis was done manually. This left room for human errors and was time consuming. The advanced EAS system eliminates this manual work. Whenever the EAS alarm goes off, the advanced EAS system is capable of capturing the data for such incidents. It sends the data to the stores IT network. This data is analyzed by the EAS software system and the reports are sent to the management. Depending on the nature of the report they may be in a tabular format or as a graphical representation. The advanced EAS system also has a feature of sending alerts on the managements email ID or even mobile phones. The automation of data capturing, analyzing, and reporting considerably reduces the risk of manual errors and saves time. Q5. How is system vulnerability and hazards an issue in retail management? Ans.:Systems Vulnerability and Hazards Information systems can be in single or multiple locations based on scale of operations. These systems enable retailers to access data from a centralized location. IS at each location is vulnerable to many potential hazards. The potential hazards may be accidental or intentional. Example of accidental hazards is errors or natural

disasters. Intentional hazards may be because of theft, virus, or manipulation. Accidental hazards may be corrected and taken care of. However, intentional hazards may be because of internal or external criminals and are very serious. Most IS are vulnerable. Vulnerability of information systems are defined as weakness of a system that can be attacked putting the system at risk. Some security threats for a IS could be through system hardware, software, database, access rules, environment and users. System hardware: IS has a fear of being attacked through its hardware. Any failure of hardware protection mechanism can be a security threat. Also, failure in hardware can contribute to failure in associated software. For example: If the POS hardware (monitor or CPU) breakdown then the POS application will also not run on the terminal. System software: Failure in software protection is also a risk for IS. Low or no protection can result in information leakage or manipulation. Database: Data is one of the important assets of any business. Appropriate usage of data can make a business, while inappropriate usage can break it. Thus, data security is important. Data be it customer database, vendor database, or sales numbers can be manipulated by unauthorized users. Thus, databases should always be access controlled. Failing to do so can result in copying or theft of data. Access rules: Access rules should be specified in the security policy and it should be adhered to. Information systems can be at major risk if accessed by unauthorized users. Thus, unique usernames and passwords are provided to every user. Also, it is the users responsibility to protect the password and not to share it with anyone. Environment and users: IS for a retail business can be in different locations. However, it is important that the IS are placed in secure environment. Users or operators can also put of IS at risk. They can enter into the system (login) with a fraud ID; they can also leak confidential information by duplication or theft. Human error: Human errors can make the IS weak. Errors can occur in the design of hardware or software of the IS. They can also occur in the authorization and access to data, data collection, data entry, or data processing phase. Human errors contribute

to majority of control and security related problems in retail. Omission of data, manipulation of input, data inaccuracies, entering data in wrong place, or losing data contribute to human errors. For example any error in manual entry of sales numbers, or goods received can cause huge damage to business. Users can also deliberately enter incorrect data into the system or can manipulate data. To avoid this, retailers should carefully select the personnel who have full access to IS. All employees should be aware of the security policies and result of violations. Also, random checks by managers (or retailer) should be done during data processing. It becomes crucial to have audit procedures in place. We have learnt about audit procedures in unit 9 Compliance Management for IT in retail. Environmental hazards: These hazards include earthquakes, storms, power outage, fire, defective air conditioning etc. Fire and power outage are the most common environmental hazards for IS. Fire is accompanied by other elements like smoke, heat, or water. These elements may also put IS used in a store at risk. They can interrupt the daily store operations for a long time period, forcing retailers to incur exorbitant costs. Computer crime: Any crime in which a computer or information system is used as a tool is called as computer crime. For example: User may enter false data in the IS to mislead an individual or department who analyzes profits, losses, or financial condition of a retail store or any business. Thus, to summarize security threats for IS could be Loss, theft, or corruption (change) of data Inappropriate use of data (manipulating inputs) Equipment Theft Human errors in entering, processing, or transferring the data Equipment malfunctions Accidental damage of IS Q6. Discuss the impact of IT on individuals, their health and safety. Ans.:Impact on Individuals Implementation of IT not only impacts the organizations but its employees as well. The perception and behavior of employees may be affected as a result of IT. Some individuals may think IT is a blessing for them while for some others it may be a big

curse or problem. IT can have some psychological impacts on individuals as well as on their job satisfaction. Let us discuss various ways in which IT affects employees. Job satisfaction: Job satisfaction is the biggest reason for employees being loyal to an organization. If they are satisfied they will stick to the organization for a long time else they may shake hands with the competitor. Introduction of IT to businesses affects job satisfaction of employees. Some may be extremely happy with the automation of tasks while others may not be satisfied. For example: A retail store recently introduced the POS system for its billing process. The cashiers were extremely happy that it was not required to make manual bills any more. POS is so efficient that it even indicated the change to be returned to a customer. POS implementation reduced the risk of human errors in billing, reduced billing time helping in queue management. Thus, making the entire billing process so efficient. Therefore, the cashiers were extremely happy and satisfied. The retailer also implemented an entire retail management software package. This automated lots of tasks however, affected the decision making activities of managers. Some managers were dissatisfied with this automation as they though their power was taken away. Loss of personal touch: Some employees think that they have been dehumanized with the use of IT. IT has also makes some people feel depersonalized, and like just another resource. What employees have to say about IT is there is no personal touch in the business because of task automation. IT eliminates the human element from every task that is automated unlike in traditional business. However the major objective of IT is not to eliminate human touch from the tasks but to increase efficiency and productivity. Some IS are also flexible enough to allow staff members to put in their opinion and implement their knowledge. These IS are also user friendly and people oriented. IS also automate difficult or complex tasks, that saves time for people and can be devoted to other important tasks. Still, businesses need to think over following few questions while implementing IT. Will there be any place for human touch in the future automated business world Is IT is just a function (department) in an organization or the organization itself is the function of IT? Whether IT is used for the betterment of people or people are used for the betterment of IT?

How much ever automation takes place by IS in businesses, they should remember a human touch is what WE all appreciate and WE are the customers. Thus, IT should be implemented allowing a personal touch in every activity. Psychological impact: IT has a number of psychological impacts on people. The impact may be more threatening than the television set. IT can isolate people more than what the TV was said to do. People have the convenience of comparing, buying, or even studying while they are sitting at home. While this is a great idea and comfort on one hand, this may isolate people from the external world because of lack of social contacts on the other. Sitting in the living room and working or shopping may even get people into depression or loneliness. In future too much isolation because of IT may prove to be damaging to mankind. Impact on Health and Safety Computers i.e. ARE is an integral part of any business be it retail or hospitality. IT touches every business activity in some or the other way. Increasing usage of IT in work and private environment may have some adverse effects on our health and safety. In this topic we will illustrate these effects in terms of repetitive strain injuries, job stress, and impact of long time usage of keyboards. Job Stress: Employees may be under stress due to many reasons. These reasons may be personal or official. Some employees may think their job is taken away by IS. As we discussed in the above topic there is minimum personal touch in daily operational tasks. Employees see that IS have taken over many of the tasks they used to perform. So they are not sure of their future in the organization or in a specific industry. This puts them in depression or under stress. Another reason for job stress is increasing workload or more responsibility. Usage of IS has definitely increased the efficiency and productivity, but it has also created an increasing workload. Because of automation of tasks sometimes businesses delegate more responsibility (may be irrespective of skills or qualification) to individuals. It is also possible that employees may feel overwhelmed and anxious about their jobs and performances. This anxiety and work pressure may put staff under stress. Thus, management needs to clearly define the jobs to be done and if required hire more employees for work redistribution. Also, it is managements responsibility to schedule trainings if any new process or new IS is implemented. This will help employees from

going into a stressed situation. If training and job redistribution is not done on time, an organizations may have IS doing their work right but they may not have people capable of performing efficiently. Repetitive strain injuries: Most computer screens emit harmful radiations that can result in many health problems. For example: long term exposure to computer screens or video display terminals has been resulted in miscarriages in pregnant women. Extended exposure to VDTs may even result in some type of cancer, and can also affect eyesight. There are other potential hazards such as back or body aches, muscle tension in fingers and wrists. The repetitive strain injury that affects peoples fingers and wrists is medically called as carpal tunnel syndrome. This is caused due to long term usage of keyboards. Businesses can pay little more attention to health and safety of their employees. They can invest in making computer environment more comfortable for their employees. This would include well-lit work place; usage of devices such as antiglare screens, and chairs that contour human body.