Question
INTRODUCTION Integrated innovations is a mature, manufacturing business that has been operating for 10 years. Integrated innovations are looking at expanding production using the differentiation
INTRODUCTION
Integrated innovations is a mature, manufacturing business that has been operating for 10 years. Integrated innovations are looking at expanding production using the differentiation strategy, to introduce and incorporate new technology, the Rapid Scanner, which will assist large retailers and supermarkets with the sales process, improving efficiency, long term costs, as well as improved staff allocation. The business has been dealing with small retail customers, however, is now looking to expand into larger groups, such as Big W and Woolworths, therefore appropriately increasing Integrated Innovations market share. With the introduction of the Rapid Scanner's RFID sensors, large scale corporations can scan their customers trollies or baskets in seconds, reducing bottlenecks, improving real time efficiency along with long-term savings on staff salaries. Integrated Innovations will be affirming the introduction of ERP systems. From the vast array of unique ERP systems, the board of directors shall determine which system may oversee all business functions. The ERP system selected, will support Integrated Innovations' face-to-face distribution strategy by providing specific functions to allow for smooth organisational processes throughout the Rapid Scanner's life-cycle from the manufacturing process to the distribution process.
BUSINESS PROCESSES
The target customers for Integrated Innovations' Rapid Scanner are large retailers across Australia such as Bunnings Warehouse, Big W, Target, Kmart, Coles and Woolworths. This means that Integrated Innovations' primary marketing focus is aimed at the retail industry's largest organisations, encouraging them to invest in the upgrading of their existing checkouts to Integrated Innovations' new and improved automation technology the Rapid Scanner.
The Rapid Scanner is based on the strategy of differentiation and will enhance the time efficiency and accuracy of transactions, as well as increase customer satisfaction, which is what these large retailers aim to improve. Time efficiency of transactions will be increased through technological advancements to the original Assisted Checkout, with the Rapid Scanner having the ability to scan all items in a trolley or basket at the push of a button. The Rapid Scanner will perform this ability by using RFID technology. The aim for large retail stores is to have a fast and efficient sales process, as well as a satisfied customer (Olsen, 2018). In addition, Integrated Innovations' Rapid Scanner promotes the accuracy of scanning items. Because customers have the convenience of not having to scan each item individually, there are therefore fewer possibilities of scanning errors or theft. Scanning errors can lead to loss of profitability due to revenue decreasing. Retailers' main focus is maximising profitability and how to increase revenue effectively. Furthermore, Retail organisations aim to increase customer satisfaction. The Rapid Scanner provides convenient and user-friendly technology to encourage consumer satisfaction. Customers who are impatient or not technologically savvy will find this technological factor very appealing, as the Rapid Scanner will do all the work for the customers within a matter of seconds. This will result in less customer complaints to the retailer, as well as employee-satisfaction and overall customer-satisfaction (Stitch World, 2017).
The key benefit of Integrated Innovations' Rapid Scanner asides from easy and timely transactions, accuracy in scanning items, reduced theft, and satisfied customers, is; retailers can maximize profits with the sales process being more efficient and effective than the original Assisted Checkouts. The differentiation strategy essentially focuses on the production of products with unique elements designed with value-added functions (Kokemuller, 2019). Integrated Innovations' technologically-enhanced product differentiation of scanners with leading RFID technology encourages an innovated competitive edge, which is advantageous against other retail competitors. Customers like convenience and would choose a retail store over another, if the service machines are more efficient, user-friendly, faster and convenient (Olson, 2018).
Although Integrated Innovations are the manufacturers of the Rapid Scanner, there may be rise to competition. According to Porter's Five Forces; "there could be a threat of new entrants" or "rivalry against existing competitors" (Wu et al. 2012). Therefore, competitors could be new manufacturing entrants into the market who possess a strong innovative background, or the existing Assisted Checkout designers improving their original product. Another competitive threat according to Porter's Five Forces is the "threat of substitute products or services" (Wu et al. 2012). Therefore, additional competition for Integrated Innovations is the use of products already on the market, which the target retailers can use alternatively. These may be products, which are inexpensive to purchase, or have been around for a while and therefore there is a great deal of history and product knowledge available to customers.
Integrated Innovations' Rapid Scanner prides itself on being a unique differentiator to similar existing products, as the Rapid scanner has never been seen before in large retailers in Australia. The Rapid Scanner has breakthrough technology that will change the way retailers operate and increase productivity and profitability, with item scanning ease, timeliness and accuracy. It is a technological step forward.
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