What next ……
The tier 1 Indian retailers now seem to be settling with their transaction systems or are they??. With SAP, Oracle-Retail, Microsoft Dynamics and JDA being the systems of choice for the tier 1 Indian retailers the last couple of years have been a roller coaster ride. Explosive expansion, aggressive store opening then the reality of vagaries of the economy / business and the subsequent rationalization of retail business in India. This has effected the systems they had initially put into place. Structures which were set up 2-3 years ago like organization structures, merchandise hierarchies, business models – own stores / franchisee stores etc are now completely undergone a change. For example a prominent Indian retailer has hived off its supply chain and logistics division which was internal to a external company. Imagine the disruption in their SAP implementation which had some pre-configured business processes. Another retailer is now concentrating from own stores to franchisee store model and putting in more efforts in promoting their private label products.
What this means is .. most of the business would literally need their systems to be re-implemented. Without which the retail organizations would not be able to effectively use the systems. Areas like product masters, business processes configured, store operations have gone a evolution over the last 3 years need reconfiguration as the initial setups were done in a very different environment.
Will the retailers take the initiative to put in efforts to do this ??? Lets see …
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