Tesco, Giant Retail Excellence in IT

Tesco, Giant Retail Excellence in IT - Tesco uses technology in innovative ways to increase sales in the UK. They have brought business to the online successfully.

Tesco is a phenomenon in the retail world. Brand first appeared in 1924. The name came after Jack Cohen bought a large amount of tea in the TE Stockwell. Jack gives a new label using the initials Stockwell (TES), and combined with two letters of the surname alone (CO), which then form the name "Tesco".

The company was first opened in 1929 in Burnt Oak, Middlesex, England. Began to enter the London Stock Exchange in 1947 under the name Tesco Stores (Holdings) Limited. Shop "self-service" which first opened in St. Albans in 1947, and the first supermarket in Maldon in 1956. During the years 1950-1960, Tesco is growing well, supported by processes of successful acquisitions, so as to open more than 800 stores.

Interestingly, Tesco club card reward programs implemented to gather customer information, which is used to provide customer needs both now and later. When customers sign up on the card, they automatically provide information about age, gender, and their income. With these programs and technologies, Tesco is able to segment customers. Customers can use the card at the time shopping online or in store, information products that are sold directly recorded in the database Tesco. That information is then used to perform cross-selling products and services such as delivery services food ingredients.

In addition to supermarkets and grocery stores, Tesco is also extended and expanded its business into IT services. They operate the ISP, mobile phones, home phones, and VoIP business. All of this available to consumers based in the UK and marketed through the website and Tesco stores.

Tesco launched its ISP in 1998, but started seriously in the field of telecommunications since 2003. They did not build its own telecommunications network, but rather a strategy that combines the power of marketing with the expertise that already exists. In 2003, they launched the Tesco Mobile which is a joint venture with O2, and Tesco Home Phone is partnered with Cable & Wireless. In August 2004, Tesco Broadband also launched through a partnership with NTL. Then in January 2006, Tesco launched its Internet Phone, VoIP services, which also involves Freshtel of Australia.

Supermarkets and shops are offering high-tech services. For example a digital photo shop that offers products such as cups, T-shirts, birthday cake, or a tablecloth. This service is supported by Pixology. In addition, Tesco is providing Internet-based DVD rental service operated by LOVEFiLM. Music downloads are also available.

Retail giant Tesco is also using technology heat sensors to monitor the influx of customers. Point in order to find out which areas are hampered and disrupted traffic in the store. With the smooth flow of traffic in and around the store, Tesco claims to be maximize revenue and increase customer satisfaction.

Supermarket giant has also launched an Internet phone service to attract a growing number of consumers and want to shop in different ways. Currently more than 8 million UK households have broadband internet access and be able to call them online. Web-phoning technology, also known as VoIP, allows phone conversations are transmitted through a channel or a cable similar to that used for Internet browsing. Although often referred to as a niche product, VoIP has now entered the mass market.

Tesco is trying to keep up with technology and ensure that this service works and feels like a phone, but need to be connected to a PC. They say that the Internet phone service all-in-one will focus on practicality, value, and without charge or additional charge.

"Some customers are still unfamiliar with this technology, but it will change in a short time," said Andy Dewhurst, chief executive of Tesco Telecoms. What customers are looking for is a service that is simple, user friendly, comfortable, and offer an appropriate value. In this case Tesco working with Freshtel, a leading Internet company based phone in Australia.

The company announced they would launch a home shopping service for products which amounted to about 8,000 kinds, including sofas, bikes, golf clubs, to the camera. This will bring Tesco to the direct competition with other retailers such as Argos.

All programs will be standardized to their level or global level. This move began in March 2006, by dividing the core operational processes to be eight or nine areas, including distribution, supply and in-store product displays. The managers have to choose applications to support the business processes in all these areas.

Processes, business systems, and programs that are used for in-store planning in England selected by the executive of Tesco as part of this global standardization program. The developers are working in India, a place where all programs and systems are made, will work based on the requirement earlier. Tesco uses its operations in India to make all the upgrade process into a standardized system. All systems and programs that will be relied upon by Tesco ready to be installed in June 2007.

Today Tesco has focused IT as the core of its global ambitions. This is when IT professionals who work at Tesco's challenges. The ultimate goal is long-term development and effectiveness of its stores worldwide, which will ultimately increase sales.