Discussion
Technology can be defined as the use of knowledge or science for different practical purposes and also for solving different problems. According to Lai (2017), technology is actually the result of applications of different techniques, methods, processes, and skills and accumulated knowledge used in scientific research and industrial production. Modern technologies have paved the way for different multifunctional devices and innovations such as computers, smartwatches, wireless home automation, automated supply chain, and others. These revolutions or technologies have made people’s lives better, faster, and easier. Artificial intelligence or AI can be determined as the ability of computers or robots to do several tasks or solve complex problems that are generally done by humans as they need human intelligence as well as discernment (Lu et al. 2018). Machine learning, a part of Artificial Intelligence, is being deployed in various industries, creating huge demands for the skilled professionals. This paper will focus on the use of Artificial Intelligence in the Retail Industry as a chosen topic.
Artificial intelligence brings several benefits to the retailers like making pricing decisions, optimizing product placement, and improving demand forecasting (Davenport and Ronanki 2018). Artificial Intelligence-powered solutions can help the retail organizations to increase their sales, maximize revenues and improve customer satisfaction.
Artificial Intelligence replaces individual-driven and redundant analysis (Hall and Pesenti 2017). It is a more convenient process and it also ensures consistency in the retail industry. The retail organizations can use advanced algorithms and Artificial Intelligence to realize the needs of the customers based on several things such as buying patterns, social media behaviors, and demographic data. Using this information or data, the retail organizations can improve personalized service and shopping experiences both in stores and online. On the other hand, the automated supply chain can help retail organizations to decrease operating costs as it helps in the reduction of inventory costs as well as warehousing, overhead, and labor costs (Dwivedi et al. 2021). Automation can decrease errors associated with the manual processes that help to plan cost control effectively by providing real-time and accurate information on inventory levels. So, the chosen topic is significantly important for the retail industry.
The integration of machine learning and AI-based solutions has improved accuracy, efficiency, and speed across several branches of the retail business (Kietzmann, Paschen and Treen 2018). These Artificial Intelligence solutions in retail, supply chain, and other sectors have improved or empowered businesses with high-level information and data that is mainly leveraged into new business opportunities and improved retail operations. With the help of Artificial Intelligence, the retail industry can provide excellent customer service. To survive in a competitive market, the retail organization needs to differentiate its products and deliver compelling services to the customers. Artificial intelligence helps retail organizations to optimize delivery tracking, labor scheduling, and others (Varian 2018). Many traditional retail outlets are announcing their plans to close their operations because they are not able to deliver the same output or result as online stores but the AI-enabled logistics and supply chain management play an important role to predict and react to several changes in demand, supplier capabilities, customer needs and available space in inventory.
Importance of the topic
Artificial Intelligence combines robust datasets and computer science for solving different problems and it also helps to encompass sub-fields of deep learning and machine learning which are mentioned frequently in conjunction with AI (Cath et al. 2018). The supply chain of a retail organization has six main components or processes: planification, sourcing, manufacturing, delivery, return, and enablement. The automated supply chain can be defined as the use of AI or Artificial Intelligence to streamline processes, connect applications and improve efficiencies within a supply chain operation. Machine learning, a part of Artificial Intelligence, is known as a process of applying and designing algorithms that can help to gather important information from past cases or scenarios. Deep learning is also a part of Artificial Intelligence or AI that includes predictive modeling and statistics.
There are many technological platforms that can be defined as AI platforms and all of these platforms are important for businesses to build, deploy and manage deep learning and machine learning models. Some popular AI platforms are Google Cloud AI, Amazon AI services, Microsoft Azure AI, DataRobot, and others. Amazon AI services help to add Artificial Intelligence to different applications and it requires no skills or knowledge of machine learning. Microsoft AI platform enables various features like speech comprehension, prediction, and image analytics. DataRobot helps to provide centrally governed platforms that enable the Artificial Intelligence driving better business results or outcomes. Google Cloud Machine Learning has main three components: Google Cloud Platform Console, REST API, and gcloud. These components support training, version management, and prediction of advanced models built using SKLearn and Tensorflow.
Almost fifty percent of organizations are using automation and many B2B organizations have also planned to adopt this technology. The IT companies, retail industry, financial businesses, construction companies, and others are using this technology. Productivity and efficiency gains are two main benefits of Artificial Intelligence. The applications of Artificial Intelligence help to decrease the cost associated with performing repeatable tasks (Ameen et al. 2021). The organizations are also using Artificial Intelligence for improving talent management and monitoring capability. Artificial Intelligence helps to bring new inventions or technologies in all domains for solving complex problems.
Retail organizations can use virtual assistant programs for providing real-time support to users (such as with billing and others). Retail organizations may use Artificial Intelligence or AI for improving operational efficiency and customer experiences. Zendesk is known as a customer service software that analyses, organizes, and collects data or information across several platforms to personalize customer experiences. TimeHero is a well-known task management software that helps in proper time management and task prioritization in an effective and efficient manner. Another popular AI tool is the Timely App which helps to automate timesheet creation and time tracking. The shipping status tool is an essential tool that helps to track an organization’s shipment status. Therefore, Artificial Intelligence enabled business tools can help different organizations to improve their performance and efficiency.
Scientific management theory helps to synthesize and analyze the workflows and the main aim is to improve economic efficiency and labor productivity (Chen and Hitt 2021). It is known as a systematic approach that implies various techniques for handling different management problems or issues. Scientific Management Theory was created by Frederick Winslow Taylor in 1889 and this theory helps to represent that,
- Each of the tasks must be studied and examined properly and scientifically for determining a better way or method to perform it.
- Workers must be trained and selected carefully to perform several tasks or activities.
- Managers must plan and the employees must take the responsibility for implementing these plans (Bernstein 2017).
- The employees and managers must cooperate to ensure an efficient production process.
Development of the Topic
For implementing digital technologies in an organization it is necessary for the managers to make an effective plan and encourage all employees to make several changes in the workplace accordingly. There are many organizations that are using scientific management theory and these organizations also find a way to improve the performance of the employees by systemizing the workplace procedures and tools. Digital Taylorism can be defined as “New Taylorism” and it is mainly based on improving efficiency by routinizing and standardizing the techniques and tools for accomplishing each of the tasks involved in a certain job (Günsel and Yamen 2020). According to Digital Taylorism theory, the management or high authority of the organization breaks down each of the tasks and also standardizes exact process or procedure that must be followed or maintained to complete those tasks.
Instead of focusing more on improving the efficiency and productivity of the employees, this theory focuses on helping the managers to coordinate several organizational duties (Drechsler 2020). This theory was developed by a famous German citizen, Max Weber. Weber proposed the Bureaucratic management theory for eliminating favoritism and social privilege in a family-owned business. Max Weber believes that the bureaucracy is one of the most efficient ways to manage and set up a business organization and it is also necessary for large-sized organizations to achieve an improved productivity rate. According to this theory, task specialization helps to promote timely completion of a specific task at a higher level of skills, and therefore, tasks can be divided into different parts based on the competencies and expertise areas of the team members (Dash and Padhi 2020). The employees must be selected or identified based on their competencies and technical skills which can be acquired through training, experience, and education. Digital bureaucracy can be defined as a project that enables an organization to perform time-consuming bureaucratic transactions between institutions, countries, and individuals by using a technological network, cost-effectively and quickly. Digital technologies help to improve content management, collaboration, communication, and customer and staff experience. Successful organizations are adopting digital technologies for improving business cohesion.
The contingency theory of management was developed by Fred Fielder and according to this theory, leadership effectiveness is related to group effectiveness and it depends on two major factors: relation motivation or task motivation and situations (Hamann 2017). Relation motivation or task motivation can be measured by the LPC (least preferred co-worker) scale. Fielder believes that the employees with high LPC scores always try to maintain harmony in work relationships but the employees with low LPC score focus more on accomplishing several tasks. The contingency theory helps to represent that a management strategy does not work for all organizations. This newly emerging management theory displays that three major things are there that play an important role while developing management strategies: the leadership styles, the technology, and the size of the business organization (Abba, Yahaya and Suleiman 2018). If a business organization wants to deploy digital technologies in the workplace then contingency factors must be related to the organization’s empirical challenges, therefore enabling the managers to provide necessary training to all employees or workers. Thus, Contingency theory provides the managers with several ways to solve workplace problems or issues and also helps them to make effective decisions.
A Detailed Description of the Used Technology
Fig1: Systems theory based digital transformation framework
(Source: Created by Author)
The systems theory of management helps to explore a new way for the managers of the business organizations and provides them with new management approaches. This newly emerging management theory represents that the businesses are made of different parts and all of these parts should work in an effective manner to perform effectively and efficiently (Teece 2018). According to this management theory, having a collaborative and productive workforce is much required for the success of an organization. All the sub-units and departments of a business organization are important for its growth and long-term viability. The managers of the business organizations are also expected to evaluate and analyze the organization’s events and patterns to determine a better management strategy for the organization. As a result of it, they can collaboratively work on different types of projects. System theory is mainly used as the analytical model or framework that helps to explain how a business organization handles several aspects of digital technologies ranging from identification of necessary resources to final outcomes of the technology use (Schneider, Wickert and Marti 2017).
Conclusion
From the above paper, it can be concluded that Artificial Intelligence can help to bring several advantages to the retail industry. The AI-powered inventory management system can help the customers with real-time information on whether the products are available or not. The main advantage of Artificial Intelligence is to decrease human errors and increase precision and accuracy. Almost all types of organizations are recently using digital assistant for interacting with clients which significantly reduces the needs for human resources. Artificial Intelligence facilitates creation of a modern workplace that mainly thrives on flawless collaboration between individuals and enterprise systems. By enhancing financial inclusion, connectivity, access to public services, and trade, technology has become so much popular across different sectors or industries. Different old and modern management theories such as contingency theory, Bureaucratic Management approach, the systems theory, and others are there that can help business organizations to increase productivity rate and strengthen decision-making ability. Thus, it can be deduced from the above paper that retail organizations must follow the above management theories and use Artificial Intelligence for accelerating their performance and growth.
References
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