ACC508 Assignment: Informatics and Financial Applications in Retail

This report delves into the transformative impact of informatics and financial applications within the retail sector. It begins by highlighting the crucial role of Information Systems (IS) and Decision Support Systems (DSS) in analyzing data and informing business decisions, particularly in marketing strategies. The report uses the example of a retail shoe company to illustrate how DSS can integrate various factors, such as market growth and profit margins, to generate marketing plans and resource allocation models. Furthermore, the report explores the opportunities presented by cloud computing, emphasizing its cost-effectiveness, flexibility, and promotion of innovation. The report also compares traditional retail stores with online stores, emphasizing the benefits of cloud-based solutions in terms of operational costs and market reach. In conclusion, the report underscores how IS, DSS, and cloud computing collectively enhance decision-making, streamline operations, and facilitate customer engagement in the retail industry. The report also provides references to support the analysis.

Informatics and Financial Applications The Retail Industry
Informatics and Financial Applications
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Informatics and Financial Applications The Retail Industry
Executive Summary
Information system (IS), a key component of information technology (IT) has drastically
changed the way of doing business. Today’s businesses are set up on a solid foundation of
technological systems that analyse and report the best business decisions based on the data
obtained. In the future, IS are set to experience a major boost owing to the technological
advances seen in the digital environment where virtualization, led by cloud computing and
other technologies are being incorporated into businesses. In itself, cloud computing
introduces a new paradigm or environment for conducting business by sharing IT resources
among many users. Moreover, it enhances the delivery of services by connecting many
customers to centrally located businesses. Now, this report assesses the impact of IS
especially decisions support systems in the retail industry. In addition to this, the report also
outlines the opportunities that are introduced by cloud computing in the same industry. In all,
this report gives an account of the use of financial applications and systems in the retail
industry.
Keywords: Decision support system (DSS), Information system (IS), Cloud computing (CC)
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Informatics and Financial Applications The Retail Industry
Table of Contents
Content Pages
Introduction..............................................................................................................................1
Decision support system and retail business..........................................................................1
Cloud computing and retail business.....................................................................................3
Conclusion.................................................................................................................................4
References..................................................................................................................................5
Table of Figures
Figure 1: A decision support system overview structure...........................................................2
Figure 2: Traditional Vs. cloud supported stores (Online) .......................................................4
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Informatics and Financial Applications The Retail Industry
Introduction
Decision support systems are outlined as applications that combine computer technology with
communication and decision making. These systems interpret information to support the
decision phases of any organization or business, this will include identifying problems,
formulating plans and generating the final solutions (Radu, et al., 2014). Therefore, the
central component of DSS is a collaboration where the decision phases are coordinated using
the knowledge base held by the business. For instance, the retail industry (e.g. a shop or
supermarket) will assess the products it sales and coordinate this information with the
customers’ feedback and also with the supplier's cost to yield the best decisions i.e. maximum
profit (Russel & Yoon, 2014).
On the other hand, cloud computing is based on the availability of networks, cheap storage
and high system performance. These outcomes are met by its defining environment where
operational resources are hosted by different users and distributed to others using the internet
connections (Russel & Yoon, 2014). Therefore, through the services offered by cloud
computing business functionalities supported by technology are simplified and made more
efficient. These functionalities include DSS and other financial applications such as those
seen in the retail industry. A good example of this convenience and efficiency is a retail store
with shops in multiple locations, this store can use the same systems to support its activities
by hosting it in a cloud facility.
Decision support system and retail business
DSS can be applied in all the functionalities of business so as to help in solving the many
decision-making problems. In this scenario, this report considers marketing strategies and
how they can be aided by DSS, thus facilitate the allocation of resources, which is usually a
key problem for many retail stores. In this system, the retail business e.g. a shoe selling
company, Bata Limited, will combine the analysis methodology with sophisticated computer
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Informatics and Financial Applications The Retail Industry
applications to produce the management decisions (Montgomery, 2004). Therefore, the DSS
must account for all the marketing variables exhibited by the business environment.
Thereafter, the system will develop a modelling design based on the user’s requirements, for
instance, to increase the average price of promoting the products (shoes).
Figure 1: A decision support system overview structure, Bata Limited (Lodish, 2001)
Now, consider the model adopted by the DSS as shown above Figure 1 where the
management’s judgement is based on the collaboration of the different variable highlighted,
such as market growth, profit margin and predicted sales among many others. In essence,
these evaluations would take ages to accomplish if it was conducted using manual
calculations. However, with computerised technology, the company (Bata Limited) needs
only the figures involved and the predictions, including the marketing strategies, are easily
outlined. Furthermore, the DSS can be tuned to fit decision plans outlined by an organization,
this will include focusing on broad marketing strategies to narrow and targeted promotional
campaigns (Lodish, 2001). In all, decision support systems can greatly minimise the time
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Management
Judgement
Sales sensitivity
to change market
variable
Marketing plan and
Resource allocation
model
Predicted sales, Profits,
and plans based on
sensitivities
Marginal profitability
and changes in
marketing plan
Assumed market
growth and economic
shape
The marketing plan
Reference conditions

Informatics and Financial Applications The Retail Industry
spent on marketing decisions as they can automatically generate the models needed by retail
business based on the existing variables.
Cloud computing and retail business
In any definition given for the retail industry, the end consumer (final customer) is always
highlighted. Therefore, despite the field, an enterprise will be classified as a retail business if
it provides goods and services to the final consumer. Now, this group of businesses have seen
an overwhelming increase in the use of cloud based solutions because of the opportunities
and benefits they provide. For one, these businesses realise that their customers require and
demand efficient services. Moreover, this demand is intensified today by the emergence of
online and mobile markets (Ali & Haseebuddin, 2015).
The opportunities: First, cloud computing is cost effective as it facilitates the creation, sale
and management of services. A retail business can use online stores to sell and promote
products across the world, this outcome translates into lower operational costs as outlined in
the figure below, where traditional retail stores are compared with online stores Figure 2.
Furthermore, the same organizations can use data analytics, hosted on the web server to make
sale decisions. Secondly, cloud based solutions are extremely flexible and scalable which
increases the business reach. For instance, the shoe selling company highlighted above can
promote its services over a wide range of environments such as mobile apps and websites.
Moreover, the same business can adjust its resource requirements based on its immediate
needs, for instance, it can shut down an online store without any significant financial losses.
Finally, cloud computing promotes innovation, an outcome that has led to the development of
online stores and other active and engaging retail portals (Revesencio, 2017).
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Figure 2: Traditional Vs. cloud supported stores (Online) (Godfrey, 2013)
Conclusion
Information technology and its affiliated components such as IS have rapidly increased the
availability of information. This information, although helpful in business operations has
proven to be a challenging factor as organizations have to assess it in order to make important
managerial decisions. Decision support systems are therefore used to manage data and to
produce meaningful decisions. This outcome is done by evaluating the variables involved as
highlighted in this report where different factors of retail business are outlined. On the other
hand, cloud computing facilitates these systems by introducing new technological models for
delivering services. In essence, large volumes of data needed by financial
systems/applications are stored in any location without the consideration of time or place.
Furthermore, the cloud based solutions facilitate the functionalities of DSS by directly
engaging with the customers through online applications. These facilities help to segment the
market and to increase the sales, based on the conveniences and the opportunities introduced
by the digital market.
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Informatics and Financial Applications The Retail Industry
References
Ali, M. & Haseebuddin, M., 2015. Cloud Computing for Retailing Industry: An overview.
International Journal of Computer Trends and Technology (IJCTT), Available at:
http://www.ijcttjournal.org/Volume19/number-1/IJCTT-V19P110.pdf [Accessed 14 August,
2017].
Godfrey, M., 2013. With announcement of G-Cloud iii and Cloud First Strategy, how can
organisations adopt a Cloud strategy so it is no longer the elephant in the room?. Automated
intelligence, Available at: https://www.automated-intelligence.com/blog/as-the-uk-
government-cloud-first-strategy-is-announced-how-can-organisations-adopt-a-cloud-strategy-
is-announced-so-it-is-no-longer-the-elephant-in-the-room/ [Accessed 14 August, 2017].
Lodish, L., 2001. A Marketing Decision Support System for Retailers. Research gate,
Available at:
https://www.researchgate.net/publication/227441977_A_Marketing_Decision_Support_Syste
m_for_Retailers [Accessed 14 August, 2017].
Montgomery, A., 2004. The Implementation Challenge of Pricing Decision Support Systems
for Retail Managers. Research Showcase @ C, Available at
http://repository.cmu.edu/cgi/viewcontent.cgi?article=1336&context=tepper [Accessed 14
August, 2017].
Radu, C., Candea, C. & Candea, G. &. Z. C., 2014. Towards a Cloud-Based Group Decision
Support System. Recent Developments in Computational Collective Intelligence, Available:
https://link.springer.com/chapter/10.1007/978-3-319-01787-7_18 [Accessed 14 August,
2017].
Revesencio, J., 2017. Buying In the Cloud: How Cloud Technology is Revolutionizing the
Retail Industry. Business.com, Available at: https://www.business.com/articles/buying-in-the-
cloud-how-cloud-technology-is-revolutionizing-the-retail-industry/ [Accessed 14 August,
2017].
Russel, S. & Yoon, V. &. F. G., 2014. Cloud-based decision support systems and availability
context: The probability of successful decision outcomes. Research gate, Available at:
https://www.researchgate.net/publication/220385010_Cloud-
based_decision_support_systems_and_availability_context_The_probability_of_successful_d
ecision_outcomes [Accessed 14 August, 2017].
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