Case Study

Case study Woolworths supermarket is a large retail store whose purpose is to sell food and other domestic products. The environment is not only the store itself, but also factors such as location, electrical power, air-conditioning, communications, suppliers, competitors and customers. The environment of the supermarket is constantly changing and includes factors such as the marketing strategies of competitors, current interest rates and commodity prices. The supermarket uses the POS system and has EFTPOS available to its customers (see Figure 1.11). The information technology used by the supermarket involves the use of electronic cash registers linked to a central computer. Each checkout contains a barcode reader (scanner) and POS terminal (cash register). The POS system is controlled by custom software purchased by the company. The barcode is data entered into the information system. All the items have a barcode determined by the Australian Product Number Association (APNA). The APNA uses the universal product code so that items are consistent on a global scale. It identifies the country of origin, the manufacturer and the product. The participants of the information system are the staff working at the store and personnel who work outside the store on the central computer. The staff at the supermarket are continually carrying out information processes. The barcode on each item is passed over the scanner at the checkout. The product description and the price appear on the checkout display panel and the customer’s receipt. The price of the item is stored by the central computer and is not part of the data contained in the barcode. The manager of the supermarket determines the price of each item. Every time an item is scanned, the central computer decreases the stock total by one and thus keeps a running inventory. Once the stock of a certain item reaches a minimum level, the computer automatically reorders that item. When the transaction is completed, the customer receives a receipt containing the date, the name of each item, the quantity purchased, the price of each item, the total price and the method of payment. The information processes involved are:

• collecting—gathering data by scanning the barcode

• organising—ensuring the data is in the correct format to be used by the database

• analysing—searching the database for the product description and price

• storing and retrieving—retaining information about each item

• processing—updating the product inventory and calculating the price

transmitting and receiving—transferring information between the POS terminal and the central computer • displaying—showing the product information on the POS terminal and printing the receipt. These processes do not operate in isolation. They are all interrelated and each one depends on the others. For example, storing information about each item is dependent on collecting the data using the barcode reader. Each of the components of the information system is important. The supermarket will only be efficient and effective if participants are trained to carry out the information processes, the data is appropriate, and the information technology is reliable.

Exercise 1.3

1 Describe how information was processed 50 years ago.
2 List the seven information processes.
3 Describe the steps involved in the collection of data.
4 List some of the techniques used to collect primary data.

5 Why is the format of data important to its organisation?
6 Why are charts and graphs often used in the analysis of data?
7 Explain why storing and retrieving are important information processes.
8 Describe a processor.
9 How is the speed of a processor measured?
10 Explain the difference between serial and parallel transmission.
11 What is hand-shaking?
12 The following questions relate to the Woolworths case study.
a What is the purpose and environment of the system?
b Describe the information technology, data and participants of the system.
c List the information processes in the system.
d How are the information processes interrelated?

1 What information process is used in each of the following tasks?
a backing up the daily transactions
b sorting addresses into alphabetical order
c adjusting the balance of a bank account after a withdrawal of $500
d conducting a phone survey to determine the most popular soap powder
e transferring a file to an interstate office
f printing a glossy brochure for distribution
g interpreting a sales chart
h producing a report of overdue library books
i scanning a credit card
j searching a file for a customer’s membership number
2 Describe the information processes involved in the following tasks. List the procedures
and techniques used to complete the task.
a writing a letter using a word processor
b creating a document containing a piece of clip art