Role of it in sales

ROLE OF TECHNOLOGY IN SALES MANAGEMENT

Defination

• Sales management is attainment of an organization's sales goals in an effective & efficient manner through planning, staffing, training, leading & controlling organizational resources. Revenue, sales, and sources of funds fuel organizations and the management of that process is the most important function.

Brief History• 1970s: Electronic Funds Transfer (EFT)

– Used by the banking industry to exchange account information over secured networks

• Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies– Used by businesses to transmit data from one business to another

• 1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and dissemination– Cheaper to do business (economies of scale)– Enable diverse business activities (economies of scope)

Role Of Technology

With the benefits being ultimately customer orientated technology is enabling retail businesses to become better equipped in the modern economies of the world. The progression of technology will allow organizations to become cost-effective, visible and improve the delivery of products along the supply-retailer customer chain. The advantages of technology are numerous and beneficial, therefore, the future role of technology in the economy could play an influential role.

The hardware and software tools that have now become almost essential for retailing can be classified into 3 broad categories:

1. Customer Interfacing Systems

• Bar Coding and Scanners .Point of Sale (POS) systems use scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. eg: Big Bazaar, Monika Super Market.

• Internet is also rapidly evolving as a customer interface, removing the need of a customer physically visiting the store.eg: Walmart, asian paints.

• Payment through credit cards has become quite widespread and this enables a fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank.

eg: ebay, Times Shopping.

2. Operation Support Systems

• ERP System Various Enterprise Resource Planning (ERP) vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better. Its includes:– Inventory management Software.– Helps in analyzing various activities of different department.– Automatic order placement.– Helps in minimizing the lead time.

• CRM Systems The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing and mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. It includes:- use Database Management System (DBMS)- all queries are recorded for future strategy development.

• Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain, all the way from raw material suppliers, right through to the retail shelf. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data.

3. Strategic Decision Support Systems

• Store Site Location Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. Today, software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor-spaces as well.

• Visual Merchandising The decision on how to place and stack items in a store is no more taken on the gut feel of the store manager. A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options

Advantages• Increased Market Penetration.• Helps in reducing cost.• Surveillance of sales executive• Protection against shop lifting by use of loss prevention

systems including burglar alarms ,CCTV.• Real time information helps in automatic order placement.• Analysis of past records to estimate future and devise

strategies for future.• Training of work force.• Efficient Supply Chain Management.• Efficient customer relation management.

Disadvantages• Upfront Cost

New technologies sometimes involve high upfront costs. Hiring new workers can be relatively cheap in the short term compared to the financial outlay required to purchase technology. A new worker typically works a few weeks or a month before he is paid, meaning the worker generates income before a company has to spend money. Technology requires a large initial investment before the technology actually assists with production.

• Training CostCompanies installing new technology must bear the cost of training workers to use it. Upgrading from an existing technology to a new one slows productivity in the short term. In some cases, new technologies may not be more efficient than old technology, which can result in wasted investment and training hours. For instance, many businesses opt to run their computers on outdated operating systems and software, even though upgrades are available. Converting to new software takes time and money and the benefits might be minimal.

• UnemploymentTechnology may allow one worker to produce the same amount as two or three workers without technology. This increase in productivity can make certain jobs obsolete or redundant, leading to layoffs and unemployment. Furthermore, once the initial cost of installing new technology has been paid, the cost of maintaining the technology is often lower than the cost of paying for an equivalent amount of labour productivity. Long-term saving make technology attractive to large businesses, sometimes to the detriment of workers.