E-Business Systems (Analysis of capturing customer data in Tesco and ASDA)

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EXECUTIVE SUMMARY

Electronic business is the complex fusion of business process, enterprise applications and organizational structure necessary to create a high-performance business model. The report is based on capturing the customer’s personal data in Tesco and ASDA by electronic data capture (EDC) system.

 Electronic data capture system is utilised for obtaining important data of the customers for future business. The management adopt various marketing tools to attract the customers for repetitive business, as well as the potential ones. The management considers the preferences and purchasing power of the customers from the pre acquired data before setting its Strategic, Tactical and Operational decisions.

Later report discusses the ethical issue that arises due to the application of electronic data capture system on the customer’s data. If those are ignored they could stand as major challenges and could constrain the progress of retail business. The organisation must face such challenges and introduce relevant software to protect the data from being misused or theft or lost.

TABLE OF CONTENTS

PAGE NO

                        

  1. INTRODUCTION                                                                3
  2. ELECTRONIC DATA CAPTURING AND PROCESSING

 BY TESCO AND ASDA                                                        4

  1. EVALUATION OF ELECTRONIC DATA CAPTURING

IN EFFECTIVE BUSINESS MANAGEMENT                                 6

  1. DRAWBACKS                                                                 9
  2. RETAILING AND THE INTERNET : ETHICAL ISSUES
  1. RETAILING ON THE INTERNET                                10
  2. IMAPCT ON INDIVIDUAL                                        12

5.2.1 PRIVACY                                                        12        

5.2.2 TRUST                                                        13

  1. IMPACT ON ORGANISATION                                        13        
  2. IMPACT ON SOCIETY                                                14
  1. OTHER CHALLENGES                                                        14
  2. CONCLUSION                                                                15
  3. REFERENCES                                                                16
  4. BIBILOGRAPHY

 

1.0 INTRODUCTION

E business seems to be the topic of conversation, wherever a business person turns today. Retailers small and large are creating websites, and business-to-consumer e business is expanding exponentially. Fay Hansen reports that “global B2C e-business revenues will reach $1.41 trillion this year (2008)” and “worldwide B2c e-business will reach $2.37 trillion in 2009” (Hansen 58).

This business report on electronic business system is based on the facilitation of capturing customer’s data and the ethical challenges of its application for protection of such data in Tesco and ASDA. Capturing the customer’s personal data, their preferences and history of transaction electronically is more reliable and time saving. At the same time, company’s offers better discounts and many other promotional offers to its customers. This helps the company to retain its customers.

Tesco uses loyalty club card, a CRM tool which allows the customers to shop within fraction of seconds and Tesco to capture and process its customer’s data. ASDA uses RedEye software to capture its customer’s personal data.

Having known their customers preference of shopping online, these grocery retailers provide discounts and many other offers to retain and to have repeat customers.

This extraordinary growth brings with it new challenges as well. While much attention has been paid to the technological challenges, most companies have not taken the time to reflect on the new ethical challenges that accompany e business.

This course work identifies possible ethical and social impact of eBusiness on individual, organization and on the societies in which they operate and offers executive and managers a decision- making model to assist them in resolving these challenges.

2.0 ELECTRONIC DATA CAPTURING AND PROCESSING BY TESCO       AND ASDA

One of the positive attributes of grocery stores is the convenience it offers to the public. The customers must be able to shop all the things needed in just one-stop. This surely attracts the consumers. This is not the only concern of the retailers these days. In order to compete with its rivalries, one must find a better ways to maintain their customer database, customer retention before trying to attract the new ones. In order to achieve their goals, managers use the concept of customer satisfaction by providing their customers a total shopping experience and pleasing them with various offers on the products.

 

The rapid growth of internet has had a great impact on the retail industry in recent years. The business of the retail industry and the recognition on the services provided by the retailers has a rapid growth; more and more potential customers are buying services online, being aware of different offers and special prices through easy access and advertisements online. The retailers have started keeping and maintaining customer’s transaction history or records  to know more about the individual customer and their spending power and to market their products to different class or category of customer differently to earn maximum profits.

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 Therefore, the Electronic Data Capturing system is considered to be the best           electronic business system to store, capture and to generate reports on    customer’s transactions.

Electronic Data Capturing system is a way to raise service standards; the system also includes e-marketing promotional messages. These can be used to contact existing customers with special offers and personalised greetings and occasional souvenirs being sent out helping the retailers to retain loyal customers and to get repeat business from them. Electronic Data Capturing system tracks daily customer feedback to increase revenue by solving any problem or short ...

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