Unit 5: M-Commerce

Enterprise Enablement
Enterprise Enablement is a Capacity on Demand Advanced Function technology that enables
the system for massive online transaction processing (OLTP).
Enterprise Enablement practice has the methods, experience, and range of offerings to assist
you in accelerating the adoption and value of your Information Management and Business
Analytics investments.
With in-depth knowledge on development and running of a digital eStore, ecommerce Enterprise
Enablement will enable you to transform your brick-and-mortar store into a digital reality. With
experience in running a multi-cart, multi-currency and multi-stock eStore, our capability will
enable you to deploy and manage an enterprise-level eStore for your brand.
This eCommerce Enterprise Enablement source comes integration-ready with global payment
gateways, enterprise order management and delivery APIs with freight forwarders and global
shippers.
Cloud-based e-commerce enablement services revenue is forecast to nearly triple by 2014 to
reach $9 billion. This provides a deeper analysis of the forecast trends and drivers for technology
providers seeking to enter this market.
Email and Messaging
Email:
Smartphone use has created the ultimate direct and one-to-one communications
opportunity between people, companies, and their customers. Direct connections have been
around for a long time, as businesses could send warranty return post cards to a mailing list and
later offer up “call and order today” instructions to a television audience. What is unique about
the smartphone is that messaging and content can be sent and received everywhere and anytime,
and those communications can occur through a growing number of channels, applications, and
uniquely mobile technologies

Tactics for Growing E-mail Lists

Through subscription.
Subscriptions are done in three ways: Subscribe to newsletters, purchase and register during
the registration and download.

E-mail forward-to-a friend.

"Word of mouth" is one of the most powerful viral marketing techniques. If members recognize
that your content is useful and informative, certainly, it will forward, and this fact increases the
number of readers and may even increase the number of registered users.
Social sharing buttons.
Social network has very important role in your business as it can be passed to your subscribers’
followers, their followers’ followers and so on to expand E-mailing lists.

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Co-registration.
"Co-registration is a widely - used approach to increase the size of your e-mail lists. Co-
registration works this way: After completing a subscription form or upon leaving a website,
visitors are invited to subscribe to one or more e-zines.
Offline event/tradeshows.
You can introduce your business through offline event such as tradeshow in order to absorb
potential customer.

Tactics for Improving E-mail Marketing Deliverability

Internet services judge your messages based on how your customers respond to your
messages send. When ISPs want to recognize your reputation, they usually consider factors that
include: The number of complaints that your organization has received through the ISPs, the
number of E-mails bounce or unbeliever, content of messages.

Testing E-mail
Subject line.
Subject line is one of the most important parts of an E-mail. Factors that can give consideration
include: 1. Add personalization in the subject line 2. Call to action 3. The subject line 4. Words
used in the subject line.
E-mail design.
It is suggested that have a main template of your E-mail and create probably the same template
with less differences. However, you can test the main factors that influence on your unsubscribe
rate, click through rate or aim of the E-mail.
E-mail content.
There are some factors that you can test in your E-mail content. A/B testing is the best way in
this area.
A)Headline.
The first thing that can be observed after opening the mail and should be consistent with the
subject line is headline
B) Position of content

Test your E-mail by moving content in different part of E-mail body

Messaging

We have highlighted this trend earlier in our earlier post where “Messaging Apps
Are Becoming Ecosystems” with growing user base are expanding capabilities facilitating
digital transactions and commerce. WeChat, for example, is already allowing verified sellers to
create shops within their platform in China, and, Kakao, Line and other similar players are
already heading in the same direction.

All social media platforms are trying to grab the opportunity by converting from a social
communication platform into a social commerce platform. To build on this trend, even broader

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public social networks such as Twitter, Pinterest , however, a publicly facing social platform can
be powerful but inherently noisy and looks weaker on buying UX scale.

Social messaging apps instantly are helping bridge the gap between customer preferences and

building trust leveraging the social communication system. Below are some of the key elements
driving social commerce.

 Reviews: Which is very powerful for any buying behavior – leads to authentication and if
its comes from know trustworthy person that increases the authenticity of the product.
 Recommendations: Automated algorithm base recommendation system is useful for
generic purpose but not the best solution for matching personal test or preferences.
Rather, Sharing, Liking, recommending to friends inside or outside the platform which is
more relevant in personal level contextual purpose.

 B2C Communication: Connect sellers and buyers on P2P communication basis increase
loyalty and easy grievance handling.

Field Force Automation

Field force automation (FFA) refers to the use of technology to capture field sales or
service information in real time. This involves use of technology, typically handheld PDAs,
wireless devices, tablet PCs or mobile phones to capture data. The captured data is transferred
immediately to back end systems (ERP, CRM or accounting systems) through wireless
connectivity (Wi-Fi, 3G, satellite or GPRS). This instant capture of information reduces time
delays, avoids manual double entry data errors and enhances field force productivity. From an
operations perspective, availability of field information in near real time allows to plan delivery
schedules, reduce inventory and monitor and control the field workers.

The biggest challenge in field force automation is in developing a simple, but usable, user
interface for the hand held device / mobile, and connectivity at the location of information
capture. Connectivity can be overcome by having a system which can retain the information
captured in the device cache and later synchronize with back-end systems (thick client).
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 "Field service is increasingly viewed as an integral part of a unified customer strategy,
improved over time as part of a careful project. This can also be thought of as service life cycle
management or service resource planning. It is as integral as sales, marketing and customer
support to product-centric businesses. Another factor bringing field service into focus for many
North American and European enterprises is the aging of the workforce, and the challenges with
passing along process and customer knowledge to new employees, while also reducing the head
count or keeping it flat. This makes the efficiencies gained by FSM suites and mobile automation
key mitigating tactics.

Field Force Automation solutions provide field workers and back office administrators
with the right set of tools to service your clients in a more flexible, real-time and customer-
oriented manner. Field Force Automation is all about enhancing your service levels for your
customers. Driven by innovative technology, it enables you to deliver that differentiating level of
excellence.

Reasons:
Reason 1: Improve the field force productivity
Reason 2: Improve customer service and satisfaction level
Reason 3: Invoice faster
Reason 4: Reduce operational risks
Reason 5: Differentiate from competition
Basic advantages:
 Quick return on investment and sales increase
 Real-time access to warehouse inventory, settlements with customers, etc.

 Shortening the time needed for customer service

 Optimization of time and costs of traveling to Customer
 Control of working time
 Reporting mechanisms, Geo-Marketing
 Mobile office
 Complete integration with the corporate IT system

Application
 supports the handling of business transactions
o gathering orders

o sale (sales documents)

o handling returns

o handling financial settlements with customers, collection

o access to information about the inventory

o processing bar codes and/or RFID

o photographic documentation of events and products

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 aiding marketing processes (surveys, special offers)
 solutions from the area of CRM
o record of sales representatives’ working time

o automatic reporting and creation of statistics

 optionally, optimization of routes and navigation integrated with the system

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Field Force Automation for insurance

The client

The client is one of the largest providers of supplemental insurance, operating a large and
diverse field force in the US. The company wanted to mobile-enable an existing Web-based field
force management application over a diverse range of devices with low total cost of ownership
(TCO) and faster time to market.

Business need

The company has a large field force of over 7,500 agents spread across the US. The field
force team members were given a “trip sheet” every morning, which contained information of
customers they were required to contact and service. The trip sheets remained “static” as it was
impossible to enable dynamic changes in case the customer was unavailable or any other high
priority visit had to be scheduled. This led to challenges in terms of agent productivity and client
satisfaction. The client was keen to mobile-enable services such as agent search, account and
policyholder details and reminder lookup for field force operations.

Challenges

Two key challenges in implementing the mobile solution were:

 The agents carried a diverse set of devices, hence the mobile solution had to be made
available on multiple platforms simultaneously.
 Since many advisors are “loosely coupled” with the organization, it was important that
the solution required low maintenance n terms of upfront investments on the part of
users, apart from enabling future upgrades. 

Our solution

The Infosys mConnect platform helped mobile-enable the field force management
application in record time, and ensured that its look and feel was similar to a Web application to
boost adoption.Infosys adopted the mConnect platform and hence the solution was made
available on all smartphone devices such as iPhone, Blackberry, and Android, which support
GPS capability. As part of the solution, a new feature was added to provide driving directions to
an account or policyholder location using GPS technology. Associates were also able to request
the three nearest accounts to a specified location, and secure driving directions to one of the
accounts.

Benefits
 Improved agent productivity, leading to direct increase in organization's revenue
 Low total cost of ownership (TCO) for operations and future upgrades

 Mobile solution similar in look and feel to a Web solution, leading to short learning time
for users, and hence, higher adoption
 Fast time to market – implementation completed from requirements till delivery in three
months
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Automation to your field service process, start with these four key areas:

 Workflow: Pre-programmed or customized workflows can give technicians step-by-step

instructions and diagnostic tools for certain types of jobs (such as troubleshooting an
outage). This video from SAP (featuring smartglass technology) is a good example of a
self-guided repair process.

 Data entry: Instead of scribbling notes on a clipboard and re-keying customer account

data back at the office, technicians can complete job information forms on a field service
mobile app that automatically syncs data across all systems. That means less careless
mistakes and a clean audit trail for billing/invoicing

 Routing/scheduling: Many FSM solutions offer “dynamic scheduling” tools which auto-
assign jobs to specific technicians based on job priority, technician availability, skillset,
and proximity. Technicians can use the same software to plan the optimal route between
jobs, factoring in job order, traffic, and road conditions.

 Preventative maintenance: The right automation can help your team transition from
being a reactionary workforce to a more surgical, preventative one. To start out, you can
set up preventative maintenance schedules for customer equipment based on item
specifications, warranty, part lifecycles, etc. More advanced preventative tactics might
involve remote monitoring — i.e., using embedded telematics sensors to track early
warning signs like pressure, voltage, flow, and heat.

Field Force Automation for Healthcare

1. Labor Savings: Using automation to replace manually intensive tasks that are better
done by machine can be a big time saver. It doesn’t have to eliminate employees, but
rather elevate them into higher-functioning roles that make use of the clinical expertise
they have been trained for.
2. Improved Quality and Consistency: Automation tools are not subject to human error
or fatigue, so they can help provide a consistent basis of care activities. A Texas
hospital study found that greater automation in the areas of medical records, order
entry, and decision support appeared to result in a reduction in deaths, complications
and cost.

3. Reduced Waste: Use of paper and spreadsheets and other workarounds needed for an
overfull workload can lead to a lot of waste. For example, rather than playing phone
tag with a discharged patient in the free minutes between hospital nursing duties,
automation can help get nurses and patients connected more efficiently.

4. Increased Predictability of Outcomes: When patients follow a standardized care path

supported by automation, it is more likely they will stay on track towards predicted
outcomes. Additionally, automation can help detect when a patient has deviated from the
recommended care plan so the care team can intervene.

5. Higher Throughput: A nurse supported by automation tools can handle a larger

population of patients at one time. Instead of scaling up and down your headcount as

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 patient volumes grow and shrink, an automated platform can scale flexibly to address
groups of all sizes.

6. Data-Driven Insights: Technology used to automate processes can also deliver a

wealth of data in a continuous feedback loop that can be used for performance
improvement and optimization. With every cycle, automation systems can collect data on
how the process is working and use that information to improve the program. This way it
improves on itself over time, becoming even more efficient, more accurate and more
helpful to the team’s workload.

Field Sales Support

A multi-channel strategy can incorporate field sales representatives; who need to be

supported by telephone and e-commerce channels.
When customers are managed by field sales teams it can be challenging to ensure
communications between field sales teams and telephone account managers are coordinated so
the customer doesn't suffer. Utilizing the services of an outsourced contact centre to act as central
control is important so the field sales team have a point of contact to discuss their accounts.

By dealing with national field sales forces every day PCMS are equipped to provide a
dedicated telephone line and email address to ensure contact can be made with the telephone
team as quickly as possible. Our structure recognizes the value of relationships built up over
regular contact with the same advisor. Our telesales team can process orders for the reps and
resolve complex customer service situations. In addition, they can provide mass notification
exercises e.g. Christmas delivery information and provide cover for vacations, sickness and Bank
Holidays.

The PCMS Field Sales Support solution provides:

 A prioritised contact point for field sales which reduces the amount of time wasted
 Enhanced customer satisfaction due to proactive contact and speedy resolution of
problems
 Cost efficiency through using the lowest cost channel
 Increased morale in field sales through providing support

PCMS understand that success can come from developing smaller accounts to become larger
accounts worthy of field sales contact, and in being there when the reps need someone to solve a
problem for them. If you recognize the importance of a solid support structure, then call PCMS
to find out how our contact centre can help support your field sales team.

ASSET TRACKING AND MANAGEMENT SOLUTIONS

Collecting and maintaining accurate records of your fixed assets can be a time consuming
and expensive task. The right integrated solution will put your company's valuable equipment
firmly under your control. The goal of any robust system is to maximize your asset control
efficiency and minimize your equipment loss.

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 Using the combination of mobile computers and asset management software, you will be
able to speed up your audit tasks and conduct your asset tracking in real-time. This will enable
you to become more efficient in your production planning and reduce downtime. The
management software will also enable you to schedule necessary maintenance or services for
your equipment at appropriate times. With a complete solution that includes barcode/RFID
printing technology, mobile computers and software you can manage your assets accurately and
efficiently.

Manage your assets with...

 fast, user-friendly, control  convenient lease scheduling
 flexible depreciation methods  multi-company tracking

 detailed audit trails, history and cost tracking  comprehensive reporting

What are the Key Benefits of an Asset Tracking System?

All businesses have a collection of assets that they need to maintain and with the right solution in
place you can gain more detailed control over your assets and greater return on your investment
with the benefits of:

• Productivity - Collect data faster in greater detail.

• Accuracy - Eliminate human error.

• Compliance - Reporting flexibility with more accurate records.

• Accountability - Enforces personal responsibility and accountability for company property.

What is Asset Tracking and Management?

Asset Tracking

 Create and manage a comprehensive database of your critical assets and track their
locations.
 Maintain parameters, specifications, and parts lists for assets, asset locations, and asset
types.
 Identify critical assets and define preventive maintenance tasks to avoid failure of your
critical assets.

Every company uses hundreds of assets on a daily basis. An "asset" is any item that a
business uses internally, such as IT equipment, office equipment, tools, etc… A properly
integrated asset management solution can help your company accurately and efficiently track any
of your business' assets. Rather than wasting time searching for and replacing lost assets, you can
keep track of all your valuable assets with a convenient, easy to use complete asset tracking
system that is regularly managed.

The first step in determining an asset tracking system is to understand whether you are
dealing with assets or inventory. Assets are "permanent" objects that a business uses internally,
such as computers, tools, or educational material. Although employees may check the object in
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or out to for a given project, or even use at home, an asset ultimately belongs to the company and
must be returned to the company. An asset is always tracked as a unique item. Even though you
may have 10 of the same PC or tool you are managing each instance as an individual item with
its own unique barcode label or RFID tag. The main concern is to have accurate information on
each specific item like location, condition, purchase date, value, custodian, last maintenance,
etc…

Inventory tracking, however, refers to objects that are sold, distributed, or otherwise consumed
by a company. These "temporary" objects include retail items and office supplies. In this case,
you may have 100 boxes of staples in inventory and when you use one box the tracked quantity
decreases by one. You are not concerned with what specific instance was sold but rather that 1 of
100 was removed. Ultimately, you want to know how many you have in stock and when to order
more.

The asset tracking software is the brains behind any system as it is the source of all
your asset information and dictates how you interact with this information. Normally, you will be
running an instance of the software on a desktop PC while the mobile devices will have a
stripped down version of the software for functions needed in the field. Depending on your need
for real-time or batch updates, certain software will support one or the other. The desktop
instance will contain the full detailed database of assets, allow printing of labels and run a variety
of reports. Reporting is a very important aspect of any tracking software as this will give you
greater visibility into your collection of assets. Knowing when things need to be replaced or
serviced and general asset analysis is done with reporting. There are many asset tracking
applications to choose from and determining the best fit for your business needs is essential to a
productive, useful system.

When putting together an effective and suitable asset tracking system there are a few key
questions to answer:

• How many assets do you need to track?

• What type of assets are you tracking?
• Where are the assets located? How many locations do you have?
• Are the assets already labeled? Will you use barcode or RFID tags?
• Do you need real-time updates or can batch collection be used?
• What type of reporting will you need from the system?
• How many users will you have? Desktop and mobile.

What are the Components of an Asset Tracking System?

All asset tracking systems consist of 3 core components:

• Asset Tracking Software - Software is the backbone of any system and will determine what
features and options are available. The main concerns when deciding are how detailed of
reporting is available and whether it supports batch or real-time updates.

• Mobile Computer - Assets are located throughout a business so a mobile device allows you to
have all needed information and make changes at the asset location. Depending on how rugged
your environment is and budget, a wide range of devices can be used.

• Barcode/RFID Printer - All assets need a unique identifier on them to be properly tracked.

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Barcodes are the easiest and most cost effective option but RFID tags offer added benefits with
wireless reading of the assets and the possibility of automating your whole process.

Benefits of our Asset Tracking and Equipment Maintenance Software:

 Minimal training
 Central view to see all assets maintenance records
 Auto-reminders/email notifications of upcoming maintenance required
 Reports showing and filtering for asset types, assignees, ages of asset, last maintenance
performed, etc.
 Quick implementation
 Simple for employees to learn and use
 Affordable

The results of implementing a mobile and cloud based Asset Tracking and Equipment
Maintenance Software System:

 Save time and money

 System Usage will increase
 No more lost records
 Eliminate guesswork from repair and replacement decision-making
 Fast audits

Features
Simple centralized control
Assets are maintained via a single entry screen, with purchases, disposals, transfers, revaluations,
service history, leasing and general maintenance all performed in one central location. The
central screen provides view and print options for both book and tax balances, as well as a
complete history of entries.

Multiple depreciation options

Depreciation runs can be done at any time, allowing daily through to annual depreciation
intervals. Depreciation can be processed or reversed for specific assets, selected categories or all
assets with a variety of methods, and includes the ability to separate calculations of book values
and tax.

Maintenance history and budgets

The maintenance history provides a record of an asset’s processes and costs, with maintenance
budgets available for controlling expenditure. Service work orders can be printed and documents
can be attached for reference, with reminders able to be set for each service item.

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Leasing schedule
The leasing feature has definable schedules which use Finance, Operating or Hire Purchase
leasing methods depending on the asset contract. Cost can then be dissected for interest, stamp
duty and executor costs, with detailed reporting available for managing cost.

Asset tracking - issues and returns

The issue function allows issuing of assets to employees and the processing of their returns. Each
time an issue is processed, a history record is stored against the asset. Issued assets can also be
transferred in bulk to another employee for faster processing.
Comprehensive search and lookups
A filter option allows you to search for specific assets. You can enter details in a combination of
fields and apply the filter to get a short list of assets that match, which may then be exported for
use in Microsoft Excel or Word.

Reporting and charts

With a range of reports available, grouped by location, department and category, users can
effectively keep track of asset costs, productivity and more. A report job stream is also available
to allow batches of reports to be run automatically by week, month or defined intervals.

Remote IT Support
IT support is an important part of businesses. In the management of an IT support firm, a
manager needs to provide clients with any type of support needed for the business. IT assistance
is not only about offering clients with the essential software but also about using the right
hardware.

Since there are many firms offering remote IT support services, it is crucial for a manager to
select the best remote IT support service for the company. It is important for a manager to do a
research on the available companies and compare the prices. Reviews from prior customers offer
a guide on the best companies to settle on.

Advantages of Remote IT support

Companies that run their businesses through the internet have grown massively over the years.
Online computer support has therefore taken the place of repairmen who frequented offices to fix
problems. These remote computer specialists help the internet business to stay ahead of problems
they may encounter.

Cost Cutting
This technology reduces help desk centers cost issues. Firstly, firms are able to save costs of
having technicians who are expensive onsite. All transport related expenses are trimmed down.
Remote IT Support is the best way to have computer problems fixed without worrying about an
expert visiting offices or homes. It solves all problems, whether internet connections or computer
hardware issues.

Large Customer Base

Being able to finish the same amount of work in the allocated time means a firm is able to scale
operations. This means that more businesses can be accommodated hence an increased revenue
and profit.
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Increased Customer Satisfaction
Customers are able to have their problems solved in quick turnaround time. Remote support
software enables a company to deliver a faster and more responsive support by the cutting of
travels.

Advanced Technology
It allows for the use of tools and technologies like desktop sharing, live chat and VoIP to enable
a simple intervention of the remote system.

Flexibility
IT technicians do not have to be onsite to solve any issues. Customers can have their problems
solved from the comfort of their homes or offices too.

Geographic Location
Most onsite technicians have a limit to the areas they are willing to cover. With a remote IT
support, geographies do not matter as long as there is a reliable internet connection. Most of
these support services are available 24/7 to offer help.

CUSTOMERS RETENTION
Customer retention can be achieved and which strategy best fits which business model. The
authors based their analysis on theoretical reasoning and interviews with B2C executives. For
example, building customer trust and convenience are the most appropriate for commerce-based
businesses while the offer of free services are better suited to content, context and connection
business models.

Customer retention strategies

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According to Morgan and Hunt, trust plays a major role in the success of business
relationships .High levels of trust lead to relationship commitment and to increased co-operation.
They also encourage functional conflict and reduce uncertainty in a relationship. In addition to
the trust building effect of a strong brand, certification and guarantees by independent third
parties, such as the trusted-shops-seal can be employed to increase trust. Other options are
flexible return policies, prompt and customer-orientated customer service and a state-of-the-art
complaint management.

Trust leads to more trust unless misused, making trust itself a major driver of relationship
stability

Virtual communities, such as discussion forums, news groups and online chats provide the
customer with a platform for mutual exchange .Interaction occurs multi-directionally between
customers and is usually centered on a specific topic, leading to credible communication. Virtual
communities represent an internet-specific development. Customers develop strong emotional
bonds to virtual communities which result from the development of social relationships between
the community members.

The added value that individualisation offers leads to increased customer satisfaction while
creating an effective switching barrier.
One of the most frequently mentioned customer retention measures in the electronic
business is individualisation of products and services. There are a number of reasons why
individualization is promising. First, individualisation caters to the overall trend for individual
products and services. The added value can result from reduced transaction costs, particularly
search and communication costs, or can take the form of an improved core value due to an
offering customized to the exact need of the customer. Two major forms of individualization
exist: personalization, where the customer initiates and manages individualisation information;
and tailoring, where the supplier takes on that role.
Matching customer retention strategies and internet business models:
Matching high levels on one or several criteria for both retention strategy and business model
were taken as an indication of an initial theoretical fit between the two. Business models can be
described and differentiated along a list of criteria. Timmers, for instance, employs three basic
categories of criteria : first, the revenue sources of a business model; second, the business
architecture for product, service and Information flows including a description of the market
participants; and third, an account of the business models benefits for the market participants.
And finally, certain customer retention measures function through providing the customer with a
net benefit, from which follows that a business model’s value proposition or core offering is a
relevant assessment criterion.

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 If a business succeeds in increasing its customers’ trust, the customers’ perceived risk
within the business relationship is reduced.

Community
Communities should be well suited for customer retention if the core offering of the
operating business and the core offering of the community are in line. Studies have shown the
possibility for interaction in communities to result, on average, in a twofold increase in usage
frequency of an offering and tripled usage duration

Convenience
Convenience is a promising customer retention measure if an offering is transaction
orientated because one of the key benefits of transaction models on the web is transaction cost
reduction .Convenience further lowers the costs in a transaction and therefore supports the
transaction model’s key benefit.

Free services
Many of the free offerings are subject to network effects (e.g. e-mail, games) and seem
well suited for business models with high customer volume. Given high customer volume, the
relatively high first copy costs can be distributed over a large number of relationships resulting in
decreasing marginal costs.

WAREHOUSE AUTOMATION
In 2012, Amazon spent $775 million to acquire Kiva Systems, a distribution center
robotics developer with about $100 million in revenues. Yes, that is a valuation multiple of seven
times revenues. This is the most succinct way I can express the importance of warehouse
automation to the e-commerce channel.
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 ARC is currently producing a market outlook study on the global warehouse automation
& control market. This research project evolved from our interest in the evolution and ongoing
convergence of the WMS, WCS, and warehouse automation markets.  The research process
includes the analysis of large amounts of information and interviews with executives from
numerous warehouse automation and control system providers; and the process concludes with
the publication of ARC’s Warehouse Automation & Control Global Market Research Study.

If this research process has confirmed one thing, it is that the growth of e-commerce is
propelling no market more than it is boosting the business of warehouse automation and control
system providers. E-commerce has placed extraordinary strain on fulfillment operations.  The
larger number of smaller orders has increased warehouse activity levels, labor costs, and
complexity overall. What used to be pallet orders are now cases, and what was a case order is
now a piece pick. Operations with low to medium complexity or volumes continue to use various
levels of manual processes. However, those operations with increasing throughput requirements
are stepping up technology investments to manage the increased volume and complexity. Some
of the key technologies are pick and put-to-light to increase efficiency of labor when managing
multiple line item orders, and mini load AS/RS to handle moderate sized loads, shuttle
technology to handle smaller loads, and other goods to man automation to facilitate the
organization and movement of these order items. However, e-commerce isn’t just increasing
demand from retailers. Parcel carriers and 3PLs are also investing in warehouse automation to
adapt to the increased volumes and changing requirements driven by e-commerce. Parcel carriers
are experiencing increased shipment volumes from e-commerce orders, and they’re also
witnessing increased returns processing exacerbated by flexible (free) return policies offered by
retailers.

The changing order profile from e-commerce is also “backfilling” to increase demand for
other warehouse automation technologies. For example, the ideal profile and geographic location
of warehouses is changing from large DCs in rural areas to smaller DCs closer to urban centers.
This progression increases the cost per square foot, making high-bay warehouses with stacker
cranes more economically feasible and cost justifiable. In addition, the shipping of mixed pallets
is becoming more common, increasing the value of technology that facilitates this process.  For
example, packaging and palletizing optimization software is being applied to efficiently manage
these types of processes. Also, many warehouses manage both traditional store replenishment
and e-commerce order fulfillment. Many of these facilities are looking to automate their store
replenishment processes along with e-commerce fulfillment. Finally, companies are getting
innovative with the use of garment on hanger technology to sort a wide variety of items beyond
the standard garment profile.
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When warehouse automation works best

Warehouse automation is proven to significantly reduce unit costs, increase stock

accuracy and visibility, and enable the fulfilment function to provide the highest levels of on-
time in-full deliveries, but only when the automation solution has been carefully matched to the
business. Automation works best for:

1. Large scale, high volume operations

Large scale, high volume operations, typically centralised with a significant level of
singles picking. Warehouse automation often involves a substantial level of capital expenditure
and requires high volumes to provide a good business case.

2. Mature retailers with sales insight

Mature retailers that can demonstrate a thorough understanding of seasonality, product
mix and order profiles. Automation can provide flexibility, but this is typically within certain
parameters. For example, a retailer that significantly changes the product mix from flat format to
hanging format will find converting automated storage from one format to another a great deal
more work in an automated warehouse than with a manual racked solution.

3. Retailers with control of supply chain

Retailers with control of product presentation. Automation usually requires a greater
degree of control over unit and bulk packaging. Retailers with a higher degree of supply chain
control and good levels of supplier compliance will get the highest benefits from warehouse
automation.

4. Retailers with sufficient finances

Retailers with high labour costs that have the finances and capability to undertake a large
multi-faceted project that requires business-wide support.

There is a large range of automation options that can be selected to suit all steps in the
fulfilment and reverse logistics processes. (These will not be covered in this feature.)

Steps to a successful implementation

Some of the most important (and often neglected) steps of a successful implementation are as
follows:

1. Collect and analyse data

Collect and analyse historical transactional data and inventory snapshots to ensure there is a
thorough understanding of the logistics profiles and their seasonal variability. Ideally use two to
three years of data to understand any past structural changes in logistics profiles.

2. Ensure business-wide sign off

Ensure business-wide sign off of future volume forecasts and detailed service requirements.
Warehouse automation is typically a large investment that provides flexibility but inevitable
comes with constraints. Investigate any such constraints before the project begins and include
these as well as the capabilities in the business sign off.

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3. Define the system architecture
Define the overall system architecture as early as possible and ensure there is a clear
understanding of the functional splits and performance requirements for each system and
interface.

4. Consider the transition strategy

Consider the transition strategy as early as possible and ensure that any functional requirements
are understood in good time. Avoid ‘big bang’ implementation if at all possible. Ensure the
solution can effectively support the transition; the logistics profiles during transition are often
vastly different to the end state.

5. Allow time and resource

Prepare for testing and allow for adequate levels of time and resource. Consider when testing
will end and live production at low volumes will begin.

6. Ensure the solution has been ‘operationalized’

Ensure the solution has been ‘operationalized’ so there is a clear understanding of how the
system can be used to provide high levels of visibility and control to manage the prioritization
and progress of inbound and outbound tasks. Ensure there is a thorough understanding of the
required KPIs and the parameters that can be changed to manage the process, including any
necessary housekeeping routines required to optimize the material flow.

7. Plan for a culture change

Consider and plan for a culture change, especially if automation is new to the operation.
Automation typically requires a manufacturing mentality – throwing people at a problem is no
longer a solution. Ensure the leaders and workforce understand the automation solution and are
trained to use it. Involve the operational teams as early as possible, identify knowledge gaps and
recruit where necessary.

SECURITY
Security is an essential part of any transaction that takes place over the internet. Customer will
loose his/her faith in e-business if its security is compromised. Following are the essential
requirements for safe e-payments/transactions −

 Confidential − Information should not be accessible to unauthorized person. It should

not be intercepted during transmission.
 Integrity − Information should not be altered during its transmission over the network.
 Availability − Information should be available wherever and whenever requirement
within time limit specified.
 Authenticity − There should be a mechanism to authenticate user before giving him/her
access to required information.
 Non-Repudiabiity − It is protection against denial of order or denial of payment. Once a
sender sends a message, the sender should not able to deny sending the message. Similary
the receipient of message should not be able to deny receipt.
 Encryption − Information should be encrypted and decrypted only by authorized user.
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  Auditability − Data should be recorded in such a way that it can be audited for integrity
requirements.

Measures to ensure Security

Major security measures are following −

 Encryption − It is a very effective and practical way to safeguard the data being
transmitted over the network. Sender of the information encrypt the data using a secret
code and specified receiver only can decrypt the data using the same or different secret
code.
 Digital Signature − Digital signature ensures the authenticity of the information. A
digital signature is a e-signature authentic authenticated through encryption and
password.
 Security Certificates − Security certificate is unique digital id used to verify identity of
an individual website or user.

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Security Protocols in Internet

Following are the popular protocols used over the internet which ensures security of transactions
made over the internet.

Secure Socket Layer (SSL)

It is the most commonly used protocol and is widely used across the industry. It meets following
security requirements −

 Authentication
 Encryption
 Integrity
 Non-reputability

"https://" is to be used for HTTP urls with SSL, where as "http:/" is to be used for HTTP urls
without SSL.

Secure Hypertext Transfer Protocol (SHTTP)

SHTTP extends the HTTP internet protocol with public key encryption, authentication and
digital signature over the internet. Secure HTTP supports multiple security mechanism providing
security to end users. SHTTP works by negotiating encryption scheme types used between client
and server.

Secure Electronic Transaction

It is a secure protocol developed by MasterCard and Visa in collaboration. Thereoritically, it is

the best security protocol. It has following components −

 Card Holder's Digital Wallet Software − Digital Wallet allows card holder to make
secure purchases online via point and click interface.
 Merchant Software − This software helps merchants to communicate with potential
customers and financial institutions in secure manner.
 Payment Gateway Server Software − Payment gateway provides automatic and
standard payment process. It supports the process for merchant's certificate request.
 Certificate Authority Software − This software is used by financial institutions to issue
digital certificates to card holders and merchants and to enable them to register their
account agreements for secure electronic commerce.

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