Introduction Of AI System In Woolworth For Enhanced Customer Service

Discussion

Discuss about the introduction of the AI system in the organization for developing better skills to meet the challenges faced by the company and the customer of Woolworth.

The study will discuss about the issues faced by the company Woolworth which is facing few major issue regarding the self service facility that it has implemented in their customer service area. The company has enhanced the self -service check out system that enables the customers to scan the product themselves after purchasing and then leave the market place. However these facilities were misused by the customers in the recent history. Recent studies say that the company has faced theft issues that has caught customers scanning expensive product for a cheap product. The market is losing billions as the customers are stealing and cheating them. Another major issue that is faced by the company as well the customer is the long queue that makes the customers wait for a long period of time. This can be a serious issue as the customer often feel to drop the idea of shopping from such places where they consume so much of time only for scanning. The study will discuss about the way out or solution to this problem and describe in details about the designing and functioning of the new technology.

Market analysis:

The new strategy that can be implemented to develop the condition of the company is using the latest technology and big data to synchronize the entire process into a digital system that will not only give accurate data and management skills but will also save time for everyone. The use of big data and smart technology will benefit the organization in various ways. The introduction of this technology will benefit the organization to improve their market standard, they will have an experienced workforce, proximity to key markets (Grosu et al. 2014). The technology will be readily accepted in the market due to the usage of the internet and latest technologies. The growing generation has a tendency to seek for technical benefits in their environment. This approach of technology with marketing skills will help the shopper for easy handling of purchase and payment method in this shop. 

Target market decision:

The range of customers that will mostly get attracted to this system will be all the middle class workers, people around the age of 20-40, people who works at CBD. This technology will be highly accepted by the youth as they are well aware of the digital technology and implementation of this technology in day to day life. The business can use new systems and innovative and creative e ways to manage the entire process of management and security (Davies et al., 2016). However, they will have a huge dependency on internet service, big data and AI equipment’s. The sensor and the intelligence systems has to be regularly checked as a single default can stop the entire process and cause problem for the managerial zone.

Market analysis

ATAR:

According to the ATAR model it is stated as:

Buying unit: 320000

Awareness: 15%

Trial: 50%

Availability: 90%

Repeat: 70%

Annual units bought: 180

Revenue per capita: $50

Cost per unit: $30

Demand forecasting:

This product has a high prosper in future. They are tending to bring a digitally handled market area where the billing, weighing, management, identification of product everything will be done digitally. The technology dependency in the present days states that the future days will be automatically dependent on the technical world and digital strategies. Thus when the company is planning to use such technology that will bring new and creative way of purchasing and also managing, it will be highly accepted by the customers.

Product innovation:

The product that will be implemented by the company is an increasing value of time saving that will save the consumers time and introduce AI to a new standard. The use of AI and technological advantages will benefit the company and the consumers to manage and coordinate and cooperate the system without any physical presence. It will focus on real smart and fast shopping service which will attract the customers and the help the company to lead its strategy from the competitive brands in the market (Bharadwaj et al., 2013). The customer will not have to wait in the queue which had become a major issues for them. There will be no self-scan check out that will enhance stealing by the customers. The product will be designed in such a manner that it will connect the network of the shop with the shopper automatically to make the payment and avoid the situation where the shopper has to wait in a queue for scanning the product. The app will be customer friendly and at the same time it will be helping the company to maintain a record.

Opportunity identification:

This technology involvement will increase the job opportunities in the market. There will be requirement for workers who will handle the technical equipment’s in the organization. The profit will be growing for the company (Westerman, Bonnet & McAfee, 2014). Thus if the latest technology is implemented then both the company and the consumers will be satisfied. The company will be benefited from this as this will be a latest technology that has not been used by any other stores and this will attract customers from different section. The customer will come to check the latest technology and this will increase the sale of the shop.

Target market decision

Evaluation and selection:

The technology that has been selected for this organization is completely dependent on AI and internet. It states that the company will be using sensor to identify which product has been selected by the customer to purchase, a scan code will help the company or the management to understand that which product with what weight and price has been selected by the customer.

Immediately the customer’s smart app will connect them with the company where they can do the payment and then take the product immediately (Schmidt & Cohen, 2013). The company will also use sensor shelf that will inform the management about the product that has been placed or removed from the shelf. The camera will assure the product to be same as referred by the sensor shelf. This will help the entire process to run in a technical basis and help the organization to handle everything will the help of technology.

 However there can be few risks related to it such as it will very costly and too much dependent on internet and AI system. However, if proper measures are taken then this technology can be considered as one of the best technology in the market (Turban et al., 2013). The company has to make a onetime investment thus this investment can be considered to be fine to invest this amount for a better management system. They must hire staffs who have proper knowledge about this technology management thus helping them to meet the customer demands effectively and at the same time saving their products from theft or any other damage.

Description of selected product:

The product that will be introduced by the company are highly beneficial to the company to as they will be run by visible or invisible worker who will be operating it from another extend of the organization. This system will include a camera, a sensor shelf, and the app and e payment system. The initial step will be to connect the customers with the companies bank account by installing the app in their phone. This system will easily help the customer to pay the amount to the company directly by scanning the bar code of the product. The second step includes the sensor shelf and camera (Wu, Chen & Olson, 2014). The sensor shelf will be able to measure the weight of the product and identify the product and send the information to the worker who are handling the system. They will be informed whenever there is a product removed or placed in the shelf. The worker can easily track the product and its price, at the same time the camera shows a video clip that assures that the product that has been sensed by the shelf is correct or not. This maintains the security of the entire process. At the same time the customer will scan the code and send the amount to the bank account of the company directly and leave the market. Thus it can be said that this system can be really beneficial to the organization and the customers.

ATAR

Service blue print:

The alternate system that the company can use will be using of cameras that will keep a track of every customer and their behaviour in the organization. The camera will record the activities of the customer and determine that whether they are having any negative intention or not. This can meet the problem of theft that is faced by the company. The CCTV camera will be giving a record to the company about the customers who will try to steal any product or try to cheat the company. The other issue that the company is facing regarding the queue can be met if they are increasing their number of counters. If the number of scanning counters are increased then the queue can be avoided and the customers will not any issue regarding a long waiting time.

However these systems can have issues while being conducted. The CCTV camera can record the product and the customers but they cannot track the customer behaviour when there is crowd. The camera might record everything but the staffs who will be keeping a watch on the video will not be able to track anything properly. On the other hand when there is an increase in the counter in the organization there might be a reduction in the length of the queue but that cannot be guaranteed for a longer period of time. For example of the company is attracting various customers by this strategy then once again the same problem will arise and again their might be a need for increasing the counter. The company can increase their counter to a certain period of time and thus it cannot be a fruitful way out.

Product protocol statement:

The product protocol will state the market requirements like:

Service attributes, functions and features that enables the consumers to shop in a fast and smooth manner and they do not have to queue or waste their time.

Target market for this product will be customers from the age 20-40, middle class workers and work at CBD.

However the only obstacle to this system can be the dependency on internet and AI system. This can be a problem if there is no internet connection or the system is facing technical error.

Technical requirement:

The system is completely dependent on the technical factors like AI equipment, internet and big data.

The product that will be developed for the situational crisis will be highly beneficial to the consumers and the company. It will help the customers to save their time, energy, they do not require to stand in the queue for scanning. The customers will be satisfied with the system and they will remain a loyal customer for this brand (Wixom et al., 2014).

Demand forecasting

Apart from customer satisfaction the company themselves will face few advantages such as a faster and smarter store that will become a tough competition to the rival companies. The innovative strategy of the company will attract the customers.

The product will use Bluetooth, internet, sensor machines to identify, sense and weigh the product and check whether the product the shopper sare paying for are the product they have selected or not. This helps the company to save them from theft and cheating. The network and internet will help to connect automatically for taking the payment from the customers thus creating a netter scope for the company to expand and explore in the market

Designing and development:

The smart technology will include a series of situation that will be met by the system such as:

Who has taken the item?

The Bluetooth beacons will be able to identify the nearest device and thus can identify the customer easily. The app in the shopper’s mobile with automatically communicate with the stores network and get connected.

What item was taken?

The shelf sensor will be able to identify weight of the product that has been removed or placed in it. The sensor will estimate the product and to confirm them the camera will be used which will show a picture of the product. The AI will look at the picture and the weight and confirm the product name and its price accordingly. Thus this technology will help the company to identify the product and its price even when there is no staff of worker at the store. The company will not face any issue regarding theft as the AI system will confirm the product price, weight and name with the sensing tools and then receive the payment from the customer’s account. This system will help the shoppers from standing in the queue, instead they will only scan the product from their phone and do the payment then and there and leave the place. The product that will be implemented in the organization can be improved further if the customers are able to communicate with the company staff if there is any difficulty in the product. They can share their issues through the app with the staff for a better communication between the company and the shoppers.

Product testing and market testing:

The testing can be done in the major cities of Australia such as Sydney, Melbourne, and Brisbane. These place share the major cities where the technical developments will be accepted before any other places. The advertisement modes that can be used are:

1. Facebook
2. Radio
3. Instagram
4. Television

Product selection

The testing that can be done will be beta testing. This form of testing will be done as it is the second phase of testing which is done to find out the flaws of the software. The test will be done to find out if the software is facing any issues regarding its accuracy or information system. If there is any flaws found in the system then it will be again restructured and tested till it is perfect for usage.

Launch activity:

They have to launch the product in a very innovative and creative style. There are two possibilities that the general public can give after the introduction of the technology. First they will readily accept it without any second thought. They will believe that the age of transformation is uplifting their shopping culture that is not only beneficial for the companies but also for the shoppers too (Kapoor, 2014). They customers will prefer this brand as this technology will be only present with this brand initially. The second reaction that the company might get a complete ignorance, if the customers are not trusting the source at all. The customers might not get familiar with the fact of linking their personal details with the company. However even if the customer are not showing much interested for the product initially, but later on this system will be accepted hugely. The company can also arrange for wide range advertisement in the market to reach the customer and explain them about the benefits of the product. They should encourage the customers to download the app and suggest others to do the same. The company can arrange for bonus rewards for the first time purchasers and gift points to the regular purchasers and encourage them to use the technology further.

Post launch tracking:

The company can track the customers by maintaining a record of the number of customers who were the regular purchaser of the company and now who are the regular customer. They can compare the ratio of the previous and the present customers. They can also check whether the previous customers are coming regularly or not. The company should make sure that they are taking initiative to attract the customers if they see a downfall in the number of customer who used to visit the store earlier.

References:

Bharadwaj, A., El Sawy, O., Pavlou, P., & Venkatraman, N. (2013). Digital business strategy: toward a next generation of insights.

Davies, K. D., Farooqi, M. S., Gruidl, M., Hill, C. E., Woolworth-Hirschhorn, J., Jones, H., … & O’Rourke, R. (2016). Multi-institutional FASTQ file exchange as a means of proficiency testing for next-generation sequencing bioinformatics and variant interpretation. The Journal of Molecular Diagnostics, 18(4), 572-579.

Grosu, D. S., Hague, L., Chelliserry, M., Kruglyak, K. M., Lenta, R., Klotzle, B., … & Woolworth, J. (2014). Clinical investigational studies for validation of a next-generation sequencing in vitro diagnostic device for cystic fibrosis testing. Expert review of molecular diagnostics, 14(5), 605-622.

Kapoor, A. (2014). Data Mining: Past, Present and Future Scenario. International Journal of Emerging Trends & Technology in Computer Science, 3(1), 95-99.

Schmidt, E., & Cohen, J. (2013). The new digital age: Reshaping the future of people, nations and business. Hachette UK.

Turban, E., King, D., Sharda, R., & Delen, D. (2013). Business intelligence: a managerial perspective on analytics. Prentice Hall, New York.

Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.

Wixom, B., Ariyachandra, T., Douglas, D. E., Goul, M., Gupta, B., Iyer, L. S., … & Turetken, O. (2014). The current state of business intelligence in academia: The arrival of big data. CAIS, 34, 1.

Wu, D. D., Chen, S. H., & Olson, D. L. (2014). Business intelligence in risk management: Some recent progresses. Information Sciences, 256, 1-7.

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