Tesco is a well known international groceries and merchandising retail chain whose main interest has been always to create a loyal relationship with each one of its customers. In order to do it, This Company has established itself as one of the technological, innovating and creative pioneer in this type of business due to the creation of an integrated Enterprise resource planning systems. Although, all of the aspects of the ERP weren’t introduced simultaneously, mainly because they reemerged because of the need for it, they have always found a way to really created added value to every aspects of their business.
A company mainly consist of several departments that needs to be interlinked to each other because their common resources that they shared. One can truly see how this enterprise has created benefits to their customers throughout the development of their informational technological capabilities. These have created a direct impact of the relationship between the business environments agents (customers, suppliers, competitors, distributors, employees, investors) and Tesco. This has resulted in an increase in market share, revenues and cost savings.
The first step was to truly identify and know their customers needs. The creation of the trading stamp was a move toward this direction; In fact, this move made Tesco attract more new customers and take away customers from their competitors. However this strategy was band due to the RPM. Moreover, Tesco conducted a survey that showed that they had been targeting the wrong client profile and that they needed to create a price cutting strategy. As result of this, they computerized the checkout systems and created the club card. The club card gave the customers the possibility to acquire points for a purchase amount and exchange them later when they reach a final amount. In order to implement this card, they’ve made a huge investment on IT capabilities and in a customer’s service call center. Throughout the implementation of this strategy, Tesco got to gather crucial information in order to create more added values to their customers. Due to the awareness of their customer behavior, Tesco came up with new applications such as: associate cards (merger of two cards to collect a specific amount of points for exchange), Points collections on holidays, point collection with Tesco several partners. Also, because the knowledge of each customers profile, they were able to customized solutions to provide their clients with personalized brochures and magazines. Additionally, they want it to expand their customers reach and gain more information through the internet, so they followed up with the net perception program which resulted at the end in the Tesco direct service. This online platform allowed several advantage to their target customers. For instance, they were now able to order from their home, compare prices with other supermarkets and view the entire product portfolio of the company.
The financial department made a huge improvement in the same process. Their increasingly interested in IT, led them to provide the customers and Tesco advantages to manage their transactions. For instances, Tesco took the initiative to provide ATM access in all stores, to permit cash back withdrawals from their debit cards at the POS, 24 hour availability of club card through the ATM, to debit monthly payment with their club card, to trade shares and interact with their club card plus account and to obtain personal finance benefits (saving accounts, motor insurance, life insurance, loans, pays at the till travel, credit card services, and tax free savings and investments). This allowed Tesco to have a much deeper control of the purchasing cycle
The IT advantages wouldn’t be able to be fulfilled if it weren’t for the changes also made in the human resources. After all, the machines are handled by human. Tesco was aware of this important detail and therefore they were able to create the IT platform for the change and break all the opposite barriers. Thus, An IT training session on the checkout system and on the club card were created for the staff and in order to provide their employees incentive to accept this change they provide them with several benefits such as: give as you earn program, new jobs because of community projects and indoor career sites, save as you earn program (200% ROI), salaries, pensions, staff discounts and memberships.
The supply chain management got extremely improved due to the IT changes made by the company. Tesco was able now to fully track their inventory, therefore giving them the option to predict, estimate and create purchasing schedule according to the customer pattern purchasing behavior. Also, the quality control of their products got much better since they were able to recycle the 85% of their products, label all of their products and create a master class program for farmers and growers which led to an increase in efficiency and productivity. In addition to this, Tesco was able to provide a much better shopping experience by reducing the waiting times to the automated process, also provide a baby changing and bottle warming facilities and include a pharmacist into their infrastructure.
As you can see the integration of technology to the business provides several distinctive benefits that led to an increase in revenue, market share and cost savings. This case is a great example of how a company can provide their customers incentive for purchasing in their locations and create added value for the goods or service offered by the use of technology.
A company mainly consist of several departments that needs to be interlinked to each other because their common resources that they shared. One can truly see how this enterprise has created benefits to their customers throughout the development of their informational technological capabilities. These have created a direct impact of the relationship between the business environments agents (customers, suppliers, competitors, distributors, employees, investors) and Tesco. This has resulted in an increase in market share, revenues and cost savings.
The first step was to truly identify and know their customers needs. The creation of the trading stamp was a move toward this direction; In fact, this move made Tesco attract more new customers and take away customers from their competitors. However this strategy was band due to the RPM. Moreover, Tesco conducted a survey that showed that they had been targeting the wrong client profile and that they needed to create a price cutting strategy. As result of this, they computerized the checkout systems and created the club card. The club card gave the customers the possibility to acquire points for a purchase amount and exchange them later when they reach a final amount. In order to implement this card, they’ve made a huge investment on IT capabilities and in a customer’s service call center. Throughout the implementation of this strategy, Tesco got to gather crucial information in order to create more added values to their customers. Due to the awareness of their customer behavior, Tesco came up with new applications such as: associate cards (merger of two cards to collect a specific amount of points for exchange), Points collections on holidays, point collection with Tesco several partners. Also, because the knowledge of each customers profile, they were able to customized solutions to provide their clients with personalized brochures and magazines. Additionally, they want it to expand their customers reach and gain more information through the internet, so they followed up with the net perception program which resulted at the end in the Tesco direct service. This online platform allowed several advantage to their target customers. For instance, they were now able to order from their home, compare prices with other supermarkets and view the entire product portfolio of the company.
The financial department made a huge improvement in the same process. Their increasingly interested in IT, led them to provide the customers and Tesco advantages to manage their transactions. For instances, Tesco took the initiative to provide ATM access in all stores, to permit cash back withdrawals from their debit cards at the POS, 24 hour availability of club card through the ATM, to debit monthly payment with their club card, to trade shares and interact with their club card plus account and to obtain personal finance benefits (saving accounts, motor insurance, life insurance, loans, pays at the till travel, credit card services, and tax free savings and investments). This allowed Tesco to have a much deeper control of the purchasing cycle
The IT advantages wouldn’t be able to be fulfilled if it weren’t for the changes also made in the human resources. After all, the machines are handled by human. Tesco was aware of this important detail and therefore they were able to create the IT platform for the change and break all the opposite barriers. Thus, An IT training session on the checkout system and on the club card were created for the staff and in order to provide their employees incentive to accept this change they provide them with several benefits such as: give as you earn program, new jobs because of community projects and indoor career sites, save as you earn program (200% ROI), salaries, pensions, staff discounts and memberships.
The supply chain management got extremely improved due to the IT changes made by the company. Tesco was able now to fully track their inventory, therefore giving them the option to predict, estimate and create purchasing schedule according to the customer pattern purchasing behavior. Also, the quality control of their products got much better since they were able to recycle the 85% of their products, label all of their products and create a master class program for farmers and growers which led to an increase in efficiency and productivity. In addition to this, Tesco was able to provide a much better shopping experience by reducing the waiting times to the automated process, also provide a baby changing and bottle warming facilities and include a pharmacist into their infrastructure.
As you can see the integration of technology to the business provides several distinctive benefits that led to an increase in revenue, market share and cost savings. This case is a great example of how a company can provide their customers incentive for purchasing in their locations and create added value for the goods or service offered by the use of technology.
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