Electronic Product Code Project Essay -- Business Management Marketing

Electronic convergence Code ProjectTable of contentExecutive Overview3Stage 1 Determination of Scope and Objectives....4Stage 2 Systems Investigation and Feasibility.4Stage 3 Systems Analysis.7 UPC DFD (Legacy System)....9Stage 4 System Design.9Stage 5 Detail System Design.10EPC DFD (New System)14Stage 6 Implementation.. 14Stage 7 rebirth.15Stage 8 Evaluation and Maintenance...17Appendix A Cost Benefit Analysis Chart19References...................23 Executive OverviewAs a subatomic grocery chain we are currently struggling to maintain our revenue stream and profitability against the competitive threats of the global warehouse chains (Costco, Wal-Mart, etc). We continue to get ourselves behind the curve in this competitive situation. These larger retailers have been able to use their greater resources and economies of scale to not only beat us on cost but also industry innovation. According to the electronic periodical Baseline, Several dozen retailers and suppliers, inc luding Unilever, Coca-Cola, Kraft Foods, and Wal-Mart have signed on to the next propagation UPC called the Electronic Product Code (EPC), (Mullin, 2002). With the implementation of this technology a customer will be able to virtually walk through a store, roll up all their groceries, and walk out without ever having to stop for a cashier or checkout procedure. The electronic retail chain Best Buy, which sells electronic devices on with household appliances, implemented this technology in many of its stores and has increased revenue, along with customer satisfaction due to always having proper stock on hand. We cogitate that this innovation will have a profound effect on our customer base, especially the highly desired, short attention span, and technically astute demographic of the 20-45 year olds. There are many other large retailers looking at this technology for the same reason (increased revenue) and studies show that smaller retailers would be involuntary to implement thi s same technology if initial installation costs decreased (2002). Our groc... ...illion USD 0.002 USDReduction in Unsaleables 3.0 jillion USD 0.001 USDReduction in Out-of-Stock 4.2 million USD 0.002 USDPoint of trade Efficiency 7.5 million USD 0.003 USDTotal savings at outlets 46.9 million USD 0.022 USDEstimated CostsAnnual Costs 9.7 million USD Tag Costs 0.0 million USD One-time Costs 96.6 million USD Integration Cost 7.8 million USD Reader Costs (including installation) 88.7 million USD It is assumed that all tags costs are carried by your supply chain partnersReferencesMullin, Eileen (September 5, 2002). Electronic Product Code, Baseline, Retrieved February, 17th 2004 from http//www.baselinemag.comEPC Global Website http//archive.epcglobalinc.org/aboutthetech.asp AARFID Incorporated Website http//www.aarfid.com/middleware. htmlRFID News Website http//www.rfidnews.org/RFID Journal Website http//www.rfidjournal.com/article/archive/9?topics=9&imageField2.x=11&imageField2.y=5RFID Online Source Book http//www.frontlinemagazine.com/rfidonline/