A Pilot study case analysis of business process optimisation in retail environment.
Background study on Retail Video Analytics trends
The Video Analytics is a growing market where major CCTV cameras manufacturers contribute for CAGR% raise forecasted as depicted below which is likely to hit 12.87 billion USD projected by (Marketresearchfuture.com. 2019).
Despite besides capabilities its market structure is viewed as follows globally according to Grand View Research Report on Video Content Analytics reproduced where its market and application is explored in various fields mentioned from the figure on right. Positive direction of trends makes it a good sector to invest in. But investment decisions would not be viable if it was taken solely leaving other criteria such as practical examination of Video Analytics in a particular sector or conducting a feasibility study over the particular subject warns (Pike and Neale, 2008). Therefore it is essential to conduct feasibility study; where this research study tries to conduct one by analysing a potential store by proposing a video Analytics based solution which could support in making their investment decisions.
According to Alexander, B. (2019); retail business processes practiced in retail stores require a future vision to match with the agility to survive the modern age and digital disruptions. As an early adopter to support to this statement (Epstein et al., 2016) presented a case that had a business challenge in terms of operation where they demonstrated a capability of Video analytics to resolve the identified challenges which not only solved the problem but also improved their business process and gave profitable
gains.
Drawing upon the survey below it is estimated that retail sector in needs transformation within 6 years beyond which leads to store closure. British Retail Consortium, (2018) put forth both challenges and opportunities faced by retail driven by digital transformation to attain competitive advantage towards sustainability.
Aligning strategy for digital will make retailers to stay agile and proactive to take immediate decision which adds value.
Djelassi, S., Diallo, M. and Zielke, S. (2018), argues technology advancement brings more comfort and satisfaction in their shopping experience in retail sectors. (Foroudi et al., 2018) views technology advancements practical difficulties in adopting and practicing, however he advice further the necessity to respond to the changing Dynamic nature of the customer
in the changing present environment is crucial and it’s a need for the hour. Hence, staying reactive to customer preferences will make less customers in the long run. Agility and Quick response is key to obtain win-win where technology plays a crucial role in enabling these agility where these could be attained through capabilities of AI in Video Analytics systems.
What is video analytics?
Video Analytics is defined as background data analysis from captured Video footages from a camera i.e. the device that captures images either it can be Network or Analog device, according to (Shan et al., 2012) video analytics is a part of Computational vision where CCTV (Closed Circuit Television) cameras are the primary source of Video Analytics that could be utilised for developing Business Intelligence driven Video Analytics applications
which supports Business Processes.
On the other hand Business process is defined as Process that transform into a meaningful output to achieve an goal based on the input or triggers by an activity or an event performed by actor or system or output of other process in a business environment defines Dumas, et al (2018).
To facilitate the above definition earlier Paul Harmon, (2007) put forth in order to improve any business every business process need to be managed where firstly he defined Business process management as “Management approach that defines an organization as a collection of processes focused on customer satisfaction and waste reduction by defining measures, stabilizing and improving processes”.
To add to his definition in order to manage the Business Processes, processes need to be classified according to Arlbjorn and Haug, (2010) states business process can be divided into:-
Core processes – the primary or operational processes which adds value e.g. Purchasing, Sales, Stock inventory, Production and Manufacturing processes.
Support processes- e.g. Human resource management, IT etc.
Management Processes- e.g. governing processes, policy and strategy formulation and Planning processes.
Lately Harmon (2014) identified a methodology that could be used as a measurement tool for Process management and coined as Business Process Management (a.k.a. Business Process Change) which could be used to do Process optimisation Projects that improves efficiency and effectiveness to their process and bringing profitable gains.
From his prospective Redesign Projects are done to better serve customers or to accommodate a new technology which relies on Business Process Management Systems (a.k.a. new software Automation technologies). To support his argument Vom Brocke, J. and Rosemann, M. (2015) also confirms that it provides the data for the top of Management to control their day to day processes or to automate their process which provides real time performance data which could be realised in decision making support systems.