Informatics and Financial the Operational Efficiency

Question: Discuss about the Informatics and Financial the Operational Efficiency. Answer: Introduction Nowadays, rapid changes have been taking place in the technology due to which businesses has also adopted automated systems for managing the acquired information that results in improving the operational efficiency of the companies. Companies gather information from different stakeholders in order to fulfill their needs and demands. Companies face difficulty in extracting relevant information from the available complex information due to different tools is used by them in order to cope with such problems. It is significant for the companies to effectively and efficiently manage its data for the purpose of taking appropriate decisions to achieve the goal of the business in a proper manner (PetkoviĆ¡ Jonker, 2007). In this context, the following sections provide information related to the issues faced by the retail industry related to data management. Along with this, it also emphasizes on the advantages and impact of different tools such as business intelligence on the busin ess operations in the retail industry. Digital Data and Business Emergence of rapid changes in the technology results in occurrence of many problems faced by businesses associated with data management. It is requisite for the companies to have full visibility of the changes taking place in the market trends in order to achieve competitive advantage over its competitors. Developments in technology such as cloud computing and automation of data entries provide opportunity to companies to record large scale data. The use of big data tool helps in making strategic decisions and results in evaluation and monitoring of the business strategies. Companies find difficulty in extracting relevant data from complex data management systems. Collection of the data related to products, customers and channels facilitates in growing the retail business. Retail companies are using big data for the purpose of transformation of the business (Narasimha,2016). Companies in the retail industry uses POS systems for analyzing and tracking the data related to customers but failed to analyze live data on consumers and products from various data sources. Companies find difficulty in providing personalized services or messages to its consumers due to existence of large volume. Along with this, companies also find difficulty in the effective management of the global supply chain due to their inefficiency in the analysis of the data in real time by the use of shipment notifications, RFID chips and sensors due to low speed. Existence of variability in the customer database due to presence of information related to preferences, purchase history location and demographics (Wedekind, Hrder Lehner, 2005). Figure 1:Business intelligence Data and Business Intelligence Business intelligence helps in building coordination among different supply chain partners in retail sector. Besides this, business intelligence tools help in providing adequate information to different supply chain partners due to which the risks can be properly shared among them. This also helps them to take right decisions at right time. Along with this, the use of business intelligence helps in providing POS information to suppliers by retailers which in turn help them to determine the level of inventory by scheduling their production. Another business intelligence tool used is continuous replenishment program, the delivery of products is done by supplier at mutually agreed interval (Sumathi Sivanandam, 2006). Business intelligence helps in aligning the business operations with the needs of the customers. This tool facilitates in designing effective marketing campaign aligned to specific customer needs. It also facilitates in improving the business activities by gathering and analyzing the information collected from various systems in different formats such as inventory, point of sale, financial and customer relationship management systems. This results in differentiating the products and services offered by the companies from its competitors. Business intelligence tool by the use of what if analysis feature, helps retail businesses to charge an optimal price and reduce its costs in order to increase its profitability. Along with this business intelligence tools helps in getting access to real time information which help the members of the organizations to make effective decisions. Along with this, it also integrates the information from different systems which improves the operational eff iciency of the businesses (Ranjan,2009). Figure 2:Profit margin of retail companies in Australia Conclusion It can be concluded that businesses in the retail industry faces different issues related to data management. Companies find difficulty in gathering real time data regarding customers due to which they fail to fulfill their expectations by providing personalized services and messages. Along with this, the other issue is that companies also find difficulty in extraction of the relevant information from the large volume of available information in less time. Along with this, companies also face difficulty in managing its supply chain as it is difficult for them to analyze live information provided by suppliers and customers. It can also be summarized that retail companies make a use of business intelligence tools which facilitates in establishing coordination and cooperation between different partners such as suppliers and customers. This in turn helps them to make right decisions and right time. It helps in sharing of the risks and information with suppliers so as to maintain adequate level of inventory. References Australian Government. (2011). Economic Structure and Performance of the Australian Retail Industry. Retrieved August 18, 2016, from https://www.pc.gov.au/inquiries/completed/retail-industry/report/retail-industry.pdf Narasimha, K. (2016). Handbook of Research on Strategic Supply Chain Management in the Retail Industry. IGI Global. PetkoviĆ¡, M. Jonker, W. (2007). Security, Privacy, and Trust in Modern Data Management. Springer Science Business Media. Ranjan, J. (2009). Business Intelligence: Concepts, Components, Techniques And Benefits. Journal of Theoretical and Applied Information Technology 9(1), pp. 60-70. Sumathi, S. Sivanandam, S. N. (2006). Introduction to Data Mining and Its Applications. Springer Science Business Media. Wedekind, H., Hrder, T. Lehner, W. (2005). Data Management in a Connected World: Essays Dedicated to Hartmut Wedekind on the Occasion of His 70th Birthday. Springer Science Business Media. Australian Government. (2011). Economic Structure and Performance of the Australian Retail Industry. Retrieved August 18, 2016, from https://www.pc.gov.au/inquiries/completed/retail-industry/report/retail-industry.pdf