BM565 Digital Business And New Technologies Assignment Sample

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Application of theories and knowledge to retail industry

In the current time, the use of the artificial intelligence increases due to its several benefits. In the present time each business of retail sector use technology for smoothing its processes. The businesses uses artificial intelligence for the purpose of inventory management which was done by before with the help of human (Albayrak et al, 2023). Technology leads to decline the chances of error as a result the problem of shortage and overstock gets solved corresponding issue of wastage and loss of stock decline. In addition, the use of the technology significantly impacts the profitability of the business as well as aids in increase customer base. Customer relationship management model is a framework that outlines how company will effectively manage the customer relationship including acquisition to retention. According to the model, the company first learns about the customers, group them, effectively contacting them and then use their learning to optimize their approach. In the retail sector, AI technology plays a crucial role in maintaining good customer relationship (Gil-Gomez et al, 2020).

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For instance, AI technology optimizes history, interest, order history and preference of the customers to build and send product recommendations. The function of the AI enables the business to enhance relationship with the customers and improve brand loyalty. Further, AI adoption aids in enhance supply chain management via inventory management to logistics for deliveries. When the customer get required product on time, it leads to assist in enhancing customer relationship. The optimization of the technology impact the retail business by increasing sales, enhancing personalized shopping experience as a result aids in gaining competitive advantage. Thus, the retail sector effectively understand the significance of using new digital technology and artificial intelligence as a result leads to change the working of the company in the efficient manner.

In addition, within the retail sector before adopting the AI technology wide amount of manpower was used. But the adoption of the AI help in introducing the robots within the organization leads to help in improved quality of work. With the help of the technology, high quality of work done as there is less chance of making mistakes which happened in case of human workers. Also, within the retail business the use of robotics done to lift and shift heavy boxes as a result aids in declining the workload of the existing employees correspondingly they can focus on more important work.

Further, the AI technology leads to optimize the supply chain. Artificial intelligence review the previous purchasing pattern of the customers and accordingly furnish an alarm when the stock of the best selling goods reach to a low level. The maintenance of the well-stocked inventory is crucial for the retailers (Pallathadka et al, 2023). Thus, the AI assist the retail business to effectively identified the purchasing pattern of the consumer demand, recognizing seasonal item trends as well as estimating the highest demand of the item and accordingly maintain stock. The availability of right amount of stock aids to better serve the customers and satisfied them. Supply chain optimization is little difficult when it is done through human as it is time-consuming and required particular expertise.

One of the example of retail industry that effectively and efficiently able to adopt the artificial intelligence within the organization. The company successfully used artificial intelligence in its business to remain competitive. With the use of technology Amazon able to brings the concept of Amazon Go. The use of technology is successful for the company as it helps in making the business unique and competitive while satisfied the needs of the customers. The retail store of the Amazon effectively uses the technology to introduce self-checkout services within the organization. In the context of this, AI is used to tracks the item that is picked by the customers and then with the help of the technology automatically charges amount for the item with the help of Amazon Go app. According to technology acceptance model, the acceptance of the technology is forecast by the user’s behavioral intention that is uncertain by the perception of the usefulness of technology in performing the task as well as perceived ease of its use.

The utilization of the technology acceptance model assist the company in enhance its productivity as well as performance (Musa et al, 2024). The successful adoption of the technology by the business aids in solving the issue of long queues to make payment as well as solve the need of excessive manpower in the convince store. Also, with the help of technology, the company able to maintain stock in the warehouse as well as in shelves so that no customer become dissatisfied with the company services (Huberman, 2021). Thus, with reference to the technology acceptance model, Amazon able to manage its function effectively as well as gain competitive advantage in the market .Therefore, Amazon Go is the example of successful adoption of artificial intelligence by retail business.

On the other hand, Sainsbury is failed to effectively adopt the artificial intelligence within its business as a result it failed in manage its supply chain effectively. Due the problem of the software update in regards to AI fails the company to make its online grocery delivery and payment in the store. This failure of adoption of technology in effective manner leads to impact the customer shopping experience as well as the brand image of the company (Sainsbury’s resolve technical issues that disrupted deliveries, 2024). To resolve the problem in the efficient manner, it is crucial for the company to proficiently adopt AI technology in business.

Thus, artificial intelligence plays a vital role in the business. It leads to change the working style of the company and make the business process smoother and efficient which is quite essential in decline the cost (Morandini et al, 2023). On the other hand, with the help of this customer also able to get best services that encourage them to make rapid repeat purchases.

Discuss Findings

With the evaluation of the primary collected data with the help of interview, it is analyzed that major respondent agrees that use of artificial technology assist the Amazon, to successfully satisfied the needs of the customer and gain a competitive advantage in the complex and dynamic industry. In the views of (Kulal et al, 2024), AI use by business to provide better services, promptly solution of customer queries and product recommendation as a result help in satisfied shoppers. Due to the feature of self-checkout system by using the technology, the company able to attract wide range of customers as it able to furnish frictionless as well as seamless shopping experience to the customers. This leads to make the business a hot topic in the audience as a result the artificial intelligence leads to make successful business to mark its footprint in the industry effectively and efficiently. According to respondent, Customers can enter the store, can take their item, and simply walk out and the payment charged with the help of technology. In addition, with the help of AI technology, the customer of Amazon get recommendation of the new products which leads to make their shopping more interesting. Thus, the use of the Artificial Intelligence by the Amazon proficiently and effectively satisfied the requirement of customer as a result the shopping experience of the customer enhanced.

Further, by analyzing the responses of different respondent, it is evaluated that the adoption of the AI by the Amazon furnishes competitive advantage in the industry. (Bharadiya et al, 2023) explicated that artificial intelligence is effective in smooth functioning of business and grab customer attention proportionately provides competitive advantage in terms of decline cost and increase profitability. It is access that AI enables the business to forecast the market trends, consumer behaviour and accordingly adjust business strategies. These aids the Amazon in remain ahead from the competitors by meeting the demands of the customer. The Amazon Go is one of the successful examples of this, which help in provide competitive advantage. The respondent agrees that with the help of the artificial intelligence company able to make its business different from the competitors as a result able to grab the attention of wide range of customers. Thus, this uniqueness of the Amazon aids it, in earn more revenue correspondingly able to increase its profitability.

From the evaluation of the primary data, major number of respondent agrees that use of artificial intelligence assist Amazon in furnish better customer experience.( Amoako et al,2021) explains that artificial intelligence aids the business in aware about the customer preference, requirements, market trends as a result enable business to enhance its product range and services accordingly. Currently, the customer prefers to spend less time on shopping as a result the concept of Amazon Go introduced. This leads to save the time of the customer as a result enhance their shopping experience. In addition, with the help of the artificial intelligence technology the business able to handle the customer grievances and queries with the help of the chatbot, this leads to enhance the customer experience as they get their queries solve promptly.

Books and Journals

• Albayrak Ünal, Ö., Erkayman, B. and Usanmaz, B., 2023. Applications of artificial intelligence in inventory management: A systematic review of the literature. Archives of Computational Methods in Engineering, 30(4), pp.2605-2625.
• Amoako, G., Omari, P., Kumi, D.K., Agbemabiase, G.C. and Asamoah, G., 2021. Conceptual framework—artificial intelligence and better entrepreneurial decision-making: the influence of customer preference, industry benchmark, and employee involvement in an emerging market. Journal of Risk and Financial Management, 14(12), p.604.
• Bharadiya, J.P., Thomas, R.K. and Ahmed, F., 2023. Rise of Artificial Intelligence in Business and Industry. Journal of Engineering Research and Reports, 25(3), pp.85-103.
• Gil-Gomez, H., Guerola-Navarro, V., Oltra-Badenes, R. and Lozano-Quilis, J.A., 2020. Customer relationship management: digital transformation and sustainable business model innovation. Economic research-Ekonomska istraživanja, 33(1), pp.2733-2750.
• Huberman, J., 2021. Amazon Go, surveillance capitalism, and the ideology of convenience. Economic anthropology, 8(2), pp.337-349.
• Kulal, A., Rahiman, H.U., Suvarna, H., Abhishek, N. and Dinesh, S., 2024. Enhancing public service delivery efficiency: Exploring the impact of AI. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), p.100329.
• Morandini, S., Fraboni, F., De Angelis, M., Puzzo, G., Giusino, D. and Pietrantoni, L., 2023. The impact of artificial intelligence on workers’ skills: Upskilling and reskilling in organisations. Informing Science, 26, pp.39-68.
• Musa, H.G., Fatmawati, I., Nuryakin, N. and Suyanto, M., 2024. Marketing research trends using technology acceptance model (TAM): A comprehensive review of researches (2002–2022). Cogent business & management, 11(1), p.2329375.
• Pallathadka, H., Ramirez-Asis, E.H., Loli-Poma, T.P., Kaliyaperumal, K., Ventayen, R.J.M. and Naved, M., 2023. Applications of artificial intelligence in business management, e-commerce and finance. Materials Today: Proceedings, 80, pp.2610-2613.

Online

• Sainsbury’s resolve technical issues that disrupted deliveries. 2024. Online. Available through: <https://www.theguardian.com/business/2024/mar/16/sainsburys-grocery-deliveries-hit-by-technical-issue >