Analyzing Woolworths' Information System Challenges and Solutions

This report provides a comprehensive analysis of Woolworths' information system, focusing on the challenges posed by outdated technology within the competitive retail industry. It identifies key problems such as decreased profitability, loss of customer loyalty, and reduced market share. The report then proposes solutions, emphasizing the implementation of a Customer Relationship Management (CRM) model, specifically the QCI model, to enhance customer acquisition, retention, and satisfaction. It details how Woolworths can leverage new information systems and a strategic change program to improve sales, profitability, and customer engagement. Furthermore, the report outlines key steps for implementing a change program, including implementation strategies, timelines, detailed plans, and communication strategies, to ensure successful integration of the new information system and achieve desired business outcomes.

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of organisation............................................................................................................1
Current information system problems ........................................................................................2
Change program .........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Information system is defined as a formal organisational system which is designed to
allocate, process, store and distribute data and information. Business organisations undertake use
of IT infrastructure as per need and requirement of entity to accomplish their goals with great
effectiveness (Sarkar, Liu and Shah, 2020). Present report has been conducted on Woolworths.
Company is operating their business functions in retail industrial sector and was founded in the
year 1924 (Haskins and et. al., 2020). This organisation is Australia leading chain of grocery and
supermarkets store. In this report formative discussions has been made on advantage of
information systems to improve areas within organisation. In addition to this, report also include
current information systems problems that are being facing by entity along with the application
of customer relationship management to overcome these problems. Along with this, report
include discussions on implementation of new information system that allows organisation to
add more competitive advantages, improved sales, profit and consumer traffic.
MAIN BODY
Overview of organisation
Woolworths Group Australia leading supermarket chain stores are operating their
business operations with having more than 225,000 employees. Foundation of this company was
laid down in the year 1924 and currently this entity is offering their business services in
approximately 1024 locations (WOOLWORTHS GROUP. 2020). According to the evaluation it
has been evaluated that, retail industrial segment is facing aggressive competition this makes
Woolsworths tough to conduct their business operations with outdated information system.
Ineffectiveness of this lead entity to face many issues that are related to decreased market share,
specific quality concerns, loss of loyalty from customers and more (Chambers, 2020). However
all these issues can be effectively overcome by entity by taking advantage of effective form of
information system. With the help of this company can make significant improvement in loss of
loyalty form consumers, specific quality concerns, reduction in market share and more.
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Current information system problems
Due to the tough competition prevailing in retail industrial sector Woolworths finding it
tough to serve their business and customers objectives in effective manner. As per according to
the evaluation it has been evaluated that there were various form of IT troubles that being facing
by company (Australia’s Woolworths stabilises IT systems after “worrisome time”. 2020).
Along with this, it has been determined that outdated information system also decrease overall
performance efficiency of company, that further lead towards numerous range of problems that
entity is facing. Along with this company is also facing with the problem of feedback loops due
to present information system (Lian, Chen and He, 2020). Mentioned below there are some
certain for of issues due to company current information system is being defined:
Loss of profit due to outdated system:
It is one of the major issue that organisation in facing, in this it has been determined that
outdated system is increasing costs of company as it require high maintenance cost. It also takes
unnecessary time of employees that they can spend to be more productive (Sittig and et. al.,
2020). Outdated information system is decreasing satisfaction and morale of employees that
decreases their overall productivity. It automatically decreases profitability margin of
Woolworths.
Loss of loyalty from customers:
According to the evaluation, this has been determined that current information system is
creating various problems for Woolworths, loss of loyalty from customers in one of them. As
this has been evaluated that outdated information system is decreases performance level of entity
that lead towards ineffective end outcomes (Gottschalk, 2020). Decrease in organisation products
and services effectiveness in making customers loosing their loyalty towards company which is
one of the major issue for company profitability.
Decreased market share:
Outdates information system is significantly decreasing Woolworths competitive edge in
retail industrial sector. Along with this, it has been evaluated that outdated information system is
leading Woolworths to face many security holes and also increasing legal and regulatory
compliance risks (Top 5 Risks of Using Outdated Technology. 2020). All these issues are having
maximum tendency to make reduction in Woolworths market share.
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According to the above mentioned evaluation it has been evaluated that, due to the
presence of outdated form of information system Woolworths is facing with many issues and
problems that are adversely affecting their overall profitability (Palanisamy, Norman and Mat
Kiah, 2020). However, all these issues or problems can be effectively overcome by respective
entity with the assistance of strategic model. In context with Woolworths it has been evaluated
that entity can overcome all these issues with the implementation of customer relationship
management model:
In order to gain more profitable advantages in cost effective manner it is essential for an
organisation to increase loyalty of their existing customers. Loyal consumers are most important
strength for organisation long term sustainability and profitability (Pramanik, Mondal and
Haldar, 2020). It has been evaluated that above mentioned issues that are being facing by
Woolworths due to outdated information system is leading towards decrease in level of
customers loyalty towards company which is affecting their overall profitability. Woolworths has
also been improving and re engineering its feedback loops. Thus, in order to overcome this
respective company can take advantage of QCI model, this model mainly emphasize upon three
most important activities that are acquisition, retention and penetration.
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Illustration 1: QCI model
Source: https://ninjaoutreach.com/crm-models/

As per according to this model individuals undertake processes with the assistance of
technology in order to acquire, retain and satisfy customers. This model is mainly made up of
eight different factors that are being defined below in context with Woolworths.
Analysis and planning:In this process respective organisation is require to effectively
evaluate behaviour of customers and further undertake process of planning in order to develop
value for company (Kataeva, Sysolyatin and Karmokova, 2020). In this it is essential for
Woolworths to evaluate and plan according to REAP consumer management activities that
include retention, efficiency, acquisition and retention.
Information technology: At this, organisation is require to update information and
technology systems on constant basis in order to serve customers with best while operating their
business operations with more effectiveness (Taimu, Awuzie and Ngowi, 2020). Further it has
been evaluated that, it is essential for Woolworths to manage quality and significantly review
information technology system to replace and renew them form time to time.
Proposition:In this entity is needed to evaluate different needs and demand of consumers
as to attract new ones. For this, it is essential for Woolworths management to segment customers
according to different propositions. With the help of this entity can effectively drive enhanced
consumer experience.
People and organization: An organisation can not gain success unless and until they
have efficient team who effectively manage requests of consumers, undertake feedback and
emphasize upon concerns and queries of customers (Hildesheim and Sonntag, 2020). For this,
Woolworths is require to engage in the process of conducting gap analysis as to fulfil with
effective strategies and measures.
Process management: As per according to QCI model, it is essential for entity to
coordinate marketing, consumer support and sales in order to make continuous improvement of
identified shortcomings.
Customer management activities: In this,entity must engage their authoritative
individuals to engage in the process of targeting customers in order to evaluate their actual needs
and demand. In addition to this, Woolworths is require to connect their customers with company
goals by creating more value for them. Along with this, it is essential for respective company to
increase loyalty of their customers that has been reduced due to outdated information system
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(Babu and Thomas, 2020). For this entity management by undertaking use of win-back strategy
can increase satisfaction level of customers.
Measurement of effect:In this process Woolworths is mandatory to properly make
formative assessment of consumer management process in order to understand individuals
performance level and roles of teams in order to develop benchmarking on consumer
management success (Arumugam, Kannabiran and Vinodh, 2020).
Thus, as per according to above mentioned analysis it has been evaluated that in order to
overcome the issues and challenges management of Woolworths by replacing and updating their
outdated information system can assure maximum advantages. In relation to this, entity in order
to satisfy their customer can take advantage of new point of sale system with the help of NCR
Retalix software and introducing new more responsive support desk for stores can increase
effectiveness of their supply chain. In addition to this, entity can also replace their payroll system
with our human capital management system can see major improvement in their business
operations.
Benefit of new information system
By undertaking advantage of new information systems Woolworths can significantly
increase satisfaction level of customers through which they can enhance loyalty towards
company. In addition to this, upgraded or new information system allow entity to increase their
profitability and maximise overall market share holding (Wu, Zhang and Luo, 2020). In addition
to this, it has been evaluated that company can also make increase in sales as these systems allow
them to evaluate preferences of customers, optimize merchandising, assortment and pricing
process through which they can maximise overall level of customer satisfaction with more
effectiveness. As company is operating their business process in supermarket and grocery sector
in retail industry thus, by making efficient investments in information strategies as well as
systems allows organisation to increase their competitiveness while improving loyalty to
customers. It further allows Woolworths to ensure their long term sustainability with higher level
of consumer satisfaction. With the implementation of new system organisation allow themselves
to add more value in competitive advantages and can further see improvised profitability and
sales.
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Change program
Implementation strategy: Before implementing change programme it is essential for
Woolworths to have clear strategy and further outline plans and objectives in order to gain
desirable outcomes. In addition to this, entity is also require to undertake use of approach in
order to effectively cope up with changes and issues. Along with this, it is also essential to make
sure that employees within organisation receive constant messages related to business beliefs and
values.
Time frames: Every change programme requires formative start date, in this
Woolworths management must ensure that they set activities according to timetable (Yoon and
Copeland, 2020). In addition this respective entity is also require to frame timetable which is
motivating and realistic in order to gain successful end outcomes.
Detailed implementation plans: Entity must formulate detailed implementation plan for
each departmental and divisional head along with agreed timetable and strategy. In addition of
this, Woolworths management must ensue that line managers are effectively empowered to
implement changes according to goals.
Good programme management practices: Organisation are subjected to use effective
programme management methodology and tool while keeping objectives in mind. Woolworths
key executives are require to set milestones and monitor progress as to effectively schedule
project activities on budget. In addition to this, respective entity must take use of risk analysis in
order to formulate necessary contingency plans. Along with this, regular track on costs are also
require to be undertaken by management. Further entity is subjected to make ground rules for
team in related to decision-making, information sharing and reporting.
Good communications: It is one of the most important process, in terms with
Woolworths it has been evaluated that company is facing numerous form of issues due to their
outdated technology, thus they are require to undertake use of new information system (Walker,
2020). For this entity is subjected to prior take advantage of stakeholder analysis in order to
make sure that right messages are being provided to them with best channels. In terms with
Woolworths it is essential for management to determine stakeholders, effectively map them and
ensure regular communication with them as to effectively encourage positive engagement as to
fulfil organisation objectives. In addition to this, entity is also require to allow employees to seek
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clarifications whenever it is necessary and further provide them with regular update for progress
reports. It will effectively motivate them in a well define and effective manner.
Prepare for conflict and manage it effectively: New update or implementation usually
lead towards generating conflicts as individuals within organisation are having different set of
views and perceptions. In order to reduce negative impact of these conflicts upon entity main
objective Woolworths management is require to implement strategies and measures to resolve
issues. In addition to this entity can use conflict to gain positive outcomes for example, open
discussions can allow entity to significantly introduce improvements.
Motivate employees: It is one of the most important process in which organisation is
require to motivate their employees, for this managers and leaders of Woolworths are require to
have strong relationship with their employees. As if employees feel being valued in organisation
them they make more efforts and hard work to accomplish their roles and responsibilities.
Monitor and evaluate: In this process it is essential for organisation to effectively
evaluate and monitor change program against established milestones of original plan (Jenkins-
Scott, 2020). With the help of this entity can effectively identify competence of existing
performance measures. In terms with Woolworths it is essential for entity to effectively check
that all the undertaken measures are consist with objectives and further undertake necessary
measures if any. Organisation management is also require to engage their employees in order to
gain successful results.
Thus, as per according to the above mentioned analysis it has been evaluated that
Woolworths by undertaking advantage of change program can effectively improve current
situation or problem in which they are facing various issues due to outdated technology that are
also affecting their overall profitability. With the help of this respective company can effectively
implement new information system and can further gain effectively results.
CONCLUSION
As per the above mentioned report it has been concluded that, information system is
having great tendency to offer dramatic improvement in business organisation. It effectively
increases overall productivity and profitability of company and facilitate them to execute their
business operations with great effectiveness. It has been evaluated that by taking advantage of
information system organisation can have advantages related to reduction in cost, increase in
operations efficiencies, better consumer services, continuous growth of organisation and more.
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Further this is being identified that in order to provide higher consumer satisfaction it is essential
for an organisation to undertake use of consumer relationship management. It not only allow
them to solve numerous issues that entity is facing but also add more value in organisation
profitability and competitiveness. However, in order to implement new information system it is
essential for an organisation to make sure that they have formulated a detailed set of plan as to
ensure successful end outcomes.
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REFERENCES
Books and Journals
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all their stores: It is time other Australian businesses followed their lead. Emergency
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Chambers, P., 2020. Shoplifting in Woolworths: And other acts of material disobedience.
Sarkar, S., Mitsui, M., Liu, J. and Shah, C., 2020. Implicit information need as explicit problems,
help, and behavioral signals. Information Processing & Management, 57(2), p.102069.
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Sittig, D.F and et. al., 2020. Current challenges in health information technology–related patient
safety. Health informatics journal. 26(1). pp.181-189.
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Palanisamy, R., Norman, A.A. and Mat Kiah, M.L., 2020. BYOD policy compliance: Risks and
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Pramanik, D., Mondal, S.C. and Haldar, A., 2020. A framework for managing uncertainty in
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Kataeva, N., Starkova, D., Sysolyatin, A. and Karmokova, K., 2020. Current issues of
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practices on SMEs’ performance in automobile industry: a structural equation modelling
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Yoon, A. and Copeland, A., 2020. Toward Community‐Inclusive Data Ecosystems: Challenges
and Opportunities of Open Data for Community‐Based Organizations. Journal of the
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Walker, C.K., 2020. Digital Regulation: A New Frontier for Public Service Delivery,
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Hoffswell, J., Li, W. and Liu, Z., 2020, April. Techniques for Flexible Responsive Visualization
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Jenkins-Scott, J., 2020. The 7 Secrets of Responsive Leadership: Drive Change, Manage
Transitions, and Help Any Organization Turn Around. Career Press.
Online
WOOLWORTHS GROUP. 2020. [Online]. Available
through<https://www.woolworthsgroup.com.au/page/about-us>
Australia’s Woolworths stabilises IT systems after “worrisome time”. 2020. [Online]. Available
through<https://diginomica.com/australias-woolworths-stabilises-it-systems-after-
worrisome-time>
Top 5 Risks of Using Outdated Technology. 2020. [Online]. Available
through<https://www.whymeridian.com/blog/top-5-risks-of-using-outdated-technology>
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through<https://ninjaoutreach.com/crm-models/>
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