Question 2 [30 marks]

Multidimension is a retail chain that deals in groceries and other household commodities. Over the past three years, they have expanded to different parts of the country. Their expansion drive has opened eight more new megastores in different towns. Recently the retain chain has diversified and is now selling hardware and furniture. Since they deal with individuals and corporate and retail customers, the procurement manager has indicated that some of their outlets run out of stock. According to him, this is caused by the "inability of the store managers to anticipate demand, both in terms of quantities and the type of products that are on demand". One of the store managers at a branch in Cape Town has indicated that the lack of a proper system to manage inventory is affecting the retail chain. Other store managers also share these sentiments. "Most operations are repetitive because we do not yet have a system that integrates all the store operations. This also causes problems because it is challenging and time-consuming to trace sales and even to balance off a day's transactions", said Siya, the store manager of the Durban branch. "We wish we had a system that will enable us to monitor inventory levels and restock in time and also according to demand, a system that perhaps can be linked to our suppliers", he added. Many store managers have bemoaned to centralizing decision-making as counterproductive, as decisions made regarding inventory and finances are not branch specific. Furthermore, decision-making regarding store operations takes time as the Head Office needs to consolidate reports from all the stores countrywide. In addition, store managers have suggested a loyalty programme enabling the retail chain to honour its loyal customers through discounts and loyalty rewards packages. There is no way of determining whether a customer is loyal since no customer details or transaction history can be traced. Required You are head of an Information Technology (IT) consultancy company engaged in looking at ways the retail chain can harness technology to improve their operations and customers' experience. Use the case study above to identify and discuss five (5) types of information systems you recommend for Multidimension. Provide a detailed 5 description of how each information system would work and the operational areas that it would affect. [30 marks]

NB: Marks will be awarded for identifying appropriate information systems, explaining them, and justifying their implementation by Multidimension