Information Technology Challenges in Retail Business Analysis

This report explores the impact of information technology on the retail business, identifying key issues and challenges related to its implementation. It begins by introducing the growing importance of IT systems in retail, highlighting the benefits and the lack of awareness among some retailers. The study uses a mixed-methods approach, combining quantitative data from online surveys and qualitative data from interviews with retail managers to analyze issues such as inventory management, customer demand fulfillment, data security, and transaction problems. The research identifies benefits of IT like enhanced customer satisfaction and data-driven decision-making, while also addressing challenges like online threats and transaction failures. The report concludes with recommendations for mitigating these challenges and improving the integration of IT in the retail sector, aiming to provide retailers with strategies for sustainable development and enhanced customer engagement. Desklib provides this assignment as a resource for students, alongside a wealth of other solved assignments and past papers.

Running head: INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
Information Technology Issues Facing Retailer Business
Name of the Student
Name of the University
Author’s Note

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
Acknowledgement
Conducting the research study enhances me to improve my knowledge as well as analytical
ability. It gave me the chance to face challenges all the while and conquer them. It will not be
possible to conduct the research without the significant direction of my professors, companions
and every one of who have added to this advancing knowledge. I also want to thank my
supervisor __________ for helping me in my research work as well as give their full support
during the research process. I would also thank all the participants within this study for giving
their time and helping me out. From the support of people, I am inspired to work on the research
in this subject area. Finally, thank you to my family members those help me and encourage me.
Thank You.

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
Abstract
This research paper discusses about the impact of information technology in the retail business.
The aim of the paper is to identify issues in information technology in the retail business. The
objectives and research questions are initiated in the introduction chapter. The literature review
discusses about the concept of information technology and retail business in the market. Factors
affecting the retail business have been discussed in the study.
The research has used positivism philosophy with deductive approach. The descriptive analysis
of the study have helped in analysis issues in information technology in retail business. Data has
been collected from both quantitative and qualitative method. Online survey and interview have
been conducted in the study. 50 online customers have been taken as sample size and 6 close-
ended questions have been added in the survey questionnaires. Three managers of different retail
business have been taken for the interview purpose. Data has been properly analyzed using both
quantitative and qualitative method. The results have been posted using graphs and tables that
help in proper representation. The issues related to the information technology in retail business
have been identified properly and some recommendations have been provided in order to
mitigate those challenges.

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.0 Background of the study...................................................................................................4
1.1 Rationale................................................................................................................................5
1.2 Problem Statement.................................................................................................................6
1.3 Research Aim, Objectives and Questions..............................................................................6
1.4 Research structure..................................................................................................................7
Chapter 2: Literature Review...........................................................................................................8
2.0 Concept of retail business......................................................................................................8
2.1 Direct selling..........................................................................................................................8
2.2 Online retailing......................................................................................................................9
2.3 Concept of Information technology.......................................................................................9
2.4 Benefits of information technology in the retail business...................................................10
2.5 Challenges in the information technology in retail business...............................................12
Chapter 3: Research Methodology................................................................................................15
3.1 Introduction..........................................................................................................................15
3.2 Method Design.....................................................................................................................15
3.3 Research Philosophy:...........................................................................................................15
3.4 Research Approach:.............................................................................................................16
3.5 Research Design:.................................................................................................................17

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
3.6 Data Collection method:......................................................................................................18
3.7 Population and Sample:.......................................................................................................19
3.8 Sampling Technique:...........................................................................................................19
3.9 Sample Size:........................................................................................................................20
3.10 Ethical Considerations:......................................................................................................20
3.11 Research Limitations:........................................................................................................21
3.12 Summary:...........................................................................................................................21
Chapter 4: Data Findings...............................................................................................................23
4.1 Quantitative Analysis...........................................................................................................23
4.2 Qualitative Analysis.............................................................................................................28
Chapter 5: Data Analysis...........................................................................................................30
Chapter 6: Conclusion and Recommendations..............................................................................32
6.0 Conclusion...........................................................................................................................32
6.1 Recommendations................................................................................................................33
6.2 Future work..........................................................................................................................33
References......................................................................................................................................35

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
Chapter 1: Introduction
1.0 Background of the study
Information systems has been a blooming concept in the technological sector all over the
world. The use of the IT systems has been populated in various sectors including the retail sector.
The use of the IT systems in the retail sector has been providing benefits to the retailers.
However, most of the retailers are not aware of the benefits of the IT systems in the business
(Lipton et al., 2015). They also lack in maintaining a roadmap to the success in the market.
Information technology has been an emerging technology all over the world. This technology has
helped in business including the retail business. Retail business has been a growing sector with
the influence of the online marketing and advertisement. Therefore, the use if the information
system might help in maintaining the revenue in the business. Various IT tools have been
discussed in the study that have helped in maintaining the implementation of information
technology in the retail business. The retail business has been grown into big market (Niehm,
Hurst & Tan, 2015). Most of the customers prefer online retailing than going to shops for
purchasing. Therefore, a big hub of market has been created over the internet using the retail
business.
Various retailers have been active on the internet all many hours. This have attracted various
retailers to upload their products over the internet. The extensions of products and promotions
have been stored using the IT applications. Demographic information of customers helps in
enhancing customer satisfaction by providing best services (Nel & Abdullah, 2015). The data
collection process of the information technology system helps in providing a clear approach
towards providing services to the customers. The internet have helped in providing a large

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
number of customers all over the world. The use of these policies in the management might help
in monitoring variety of decision-making terms and condition in the market. The use of the IT
has been helping in providing a variety of decision-making factors in the retail business
(Grimmer, Miles & Grimmer, 2016).
The lack in proper administration in the companies in the retail businesses have been creating
issues in the market. The lack in the inventory management and supply chain have been creating
issues in the IT systems in the retailers. However, poor services provided by the retailers to the
customers have been an important problem faced in the market. Therefore, this research has been
focusing in the issues faced due to the information systems in the retail business.
1.1 Rationale
Contemporary IT systems have enabled various retailers and supply chain providers on
order to maintain the sustainable development of the company in the market. The use of the retail
business in the market has been maintaining the revenue of the company. The use of the IT
systems have been providing benefits to the retailer in the market. However, there are various
issues in the implementation of the IT systems in the retail business. The industry has been
facing various failures in the market for implementing IT systems (Dragoo & Young, 2017).
Poor inventory management and lack in satisfying customer needs and expectations have been
main issues in the implementation of information systems. The transaction issues and absence of
smart phone friendly website has been creating security issues in the retail business.
Issues in the retail industry has been increasing in the market. Lack in customer
satisfaction has been creating major issues in the market. The implementation of the information
system in the retail business have created issues in the inventory management and transaction
problem of the customers. There have been many cases of failure in transaction during the portal

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
(Sebastiani & Montagnini, 2014). Online threats and cyber-attacks have been a major issue in the
retail business. According to a survey, there have been 9% increase in the failure of transaction
in the retail industry during online payment gateway (Martínez, Galván & Alam, 2017).
Therefore, these problems have massively affected the retail market and other retailers in the
industry. The dissatisfaction of customers have been increasing in the retail market.
This research shed light on importance of information technology in the retail sector and
how this technology have helped in development of retail industry in the market. This study
focuses on the limitations of the information system in the retail sector. The technological issues
faced by the retail industry due to the implementation of the information technology. Strategic
recommendations have been provided in the study for mitigating these technological issues in the
retail business due to implementation of information technology.
1.2 Problem Statement
This research mainly focuses on a primary problem of the retail industry due to the
implementation of the information technology. Various issues including inventory management,
lack in fulfilling demand of customer as a retailer, misuse of information of customers for
product marketing and transaction security issues have been discussed in the study. These
problems are related to the implementation of the information systems in the retail business.
Different security issues have been identified on the study due to implementation of the
information technology. This has created problems in retail business companies related to data
and financial loss in the market.

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
1.3 Research Aim, Objectives and Questions
The aim of the research is to identify the technological issues faced by the retail business
due ti the implementation of information technology.
The objectives of the research are as follows:
 To identify the benefits of the information technology in the retail business
 To critically analyze the technological issues in the retail business
 To recommend strategies for mitigating these technological challenges in the retail
business
The research questions are as follows:
 What are the benefits of the information technology in the retail business?
 What are the technological issues in the retail business?
 How these technological issues can be resolved in the information technology?

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
1.4 Research structure
Figure 2: Research structure
(Source: Created by author)
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Data findings
Chapter 5: Data Analysis
Chapter 6: Conclusion and Recommendations

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
Chapter 2: Literature Review
2.0 Concept of retail business
As commented by Zaarour & Melachrinoudis, (2015), retail business deals with the
processing of goods and transportation to the customers. Retailing include selling of goods and
services of the companies in the market. The process include both direct and indirect selling of
goods and services. It include direct customer-to-customer selling of products. However,
manufacturers are concerned with the production of goods and products of the company for
meeting the demand in the market. The mass production of products and goods are maintaining
the demands of customer in the market. A retailer is an agent or a business organization that is
responsible for the selling of the products and goods in the market. Retailer is responsible for
buying, selling, grading and risk trading in the market (Zukin, Kasinitz & Chen, 2015). Retail
business has been rising in the market with the implementation of the information technology.
The industry has been facing various failures in the market for implementing IT systems.
Various retail companies have been starting in the market that are responsible for the retail
business in the market. The information technology has helped in increasing sales of the
company in the market.
2.1 Direct selling
As commented by Mehta & Kaushik, (2015), direct selling refers to personal contact
between a sales person and customer. This type of selling is known as door-to-door selling. The
US represent 30% of all the sales through direct selling concept. However, diverse products are
advertised and marketed through direct selling technique (Li, Sato, Huang & Chen, 2016). There
are various advantages of the direct selling method. In this method, customers have opportunity

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INFORMATION TECHNOLOGY ISSUES FACING RETAILER BUSINESS
for buying at home inconvenient to retail location. Customers can judge the product at their
home and can take enough time before purchasing it. On the other hand, for the seller, it provide
best opportunity to negotiate with the customer and sell their product to them. However, the
seller takes the product to buyer’s home that helps in convincing them quickly. Apart from
benefits, there are some limitation of the direct selling (Rasband et al., 2017). The salesperson is
only aid the commission on each sale made. It becomes difficult for the salesperson to survive in
the market, as there is a huge competition in the marmite. Therefore, most of the people used to
leave the job very quickly.
2.2 Online retailing
As suggested by Marrone et al., (2014), online retailing deals with the selling of products
over the internet. Companies used to maintain a website over the internet that helps in interacting
with the customers all over the world. Customers used to out their order on the website and
according ti the order, company process their request and transfer their product to their home.
Online retailing has been increasing in recent years that have provided an extra edge to the retail
business. The online retailing has been key to success for many businesses all over the world.
Customers used to get different offers over the internet and can choose best product for them
(Wamba & Carter, 2016). The use of the online retailing has been increasing in recent times.
Various products including daily products, furniture, hardware, groceries, toys and other
materials are sold over the internet.
2.3 Concept of Information technology
Information Technology has been an emerging tool for the growth of business in the
market. Information technology has been helpful to various companies in the market. The
technology have helped in maintaining operations in the business organization (Nguyen, Newby