Core system Development – Retail/Production/Wholesale
Category:
Outsourcing Development
Our approach to replacing core systems in the retail industry
On this page, we will explain the role and challenges of core systems in the retail industry, as well as our approach to core system replacement.
What is the role of core systems in the retail industry and what is our company's basic philosophy?
In the retail industry, the volume of data and operations that manage supply chain management (SCM) plans and results, such as sales management, ordering/purchasing management, and inventory management, is the most important, and the core system is the system that plays this role. It is generally considered that.
1. The role of core systems in the retail industry
When supported by packaged software
An advantage of adopting an ERP package is that data such as human resources and accounting can be centrally managed. This ensures data integrity and enables efficient operations. On the other hand, if a highly unique business is adopted for supply chain management, it would be impossible to handle everything with one packaged software, and the initial system construction and operation costs would increase. Or, you may end up with a half-hearted response in any business area.
Combination of in-house scratch development and packaged software
What we recommend is to build highly unique areas for your company using scratch development, support general areas with packaged software, and link the two. The aim is to leverage the characteristics of both companies and create synergistic effects.
2. The need for scratch development of core systems in the retail industry
In the retail industry, when you want to develop a core system from scratch in-house, the main goals are as follows.
Logistics optimization
How can we minimize unreasonable waste in logistics by utilizing multiple logistics bases and numerous store locations? When you get down to it, packaged software tends to have its limitations. Furthermore, if we consider allocating store/logistics inventory in e-commerce in a hybrid manner, it is necessary to execute all inventory processing in real time and coordinate with the e-commerce front desk, making it necessary to build a unique system. will occur.
Optimization of product information management work flow
A single product requires a wide variety of information to be managed. Furthermore, as we begin to sell private brands in addition to national brands, or sell not only in physical stores but also through e-commerce, a wide variety of information must be accurately registered and managed. yeah. Role division/work flow is designed to ensure the accuracy of information, but in order to execute efficiently, it is necessary to build a unique system that fits the business.
Real-time management of plans and actuals
In the retail industry, conditions are constantly changing. Only by managing plans and results in real time will it be possible to acquire the ability to respond to change and make appropriate course corrections. Although it is possible to output general-purpose reports with many systems, scratch development is more suitable for building a foundation that allows you to freely analyze and control plans and results.
Responding to aging
If you maintain your own servers/networks, you will need to update your system every 5 to 10 years as the equipment ages. At this time, there are many moves to update not only the hardware but also the software.
Our philosophy is that there is a big gap between the system life cycle and the sense of speed required by business/operations, and that software should not be completely updated to update hardware. We believe that it should be a foundation that can be constantly revised according to the current situation.
If there is a deadline due to obsolete hardware, we recommend first transferring the system to the cloud, and then replacing the entire system with a solid plan in the next step.
Our philosophy is that there is a big gap between the system life cycle and the sense of speed required by business/operations, and that software should not be completely updated to update hardware. We believe that it should be a foundation that can be constantly revised according to the current situation.
If there is a deadline due to obsolete hardware, we recommend first transferring the system to the cloud, and then replacing the entire system with a solid plan in the next step.
Utilization of new technologies such as AI
The evolution of AI such as chatGPT is remarkable, and it is now a highly practical area. Additionally, these technologies are open and can be incorporated into your own systems. By incorporating it, it becomes possible to automate tasks and perform detailed analysis that cannot be noticed by humans. If you want to take on such a cutting-edge initiative, it will take a considerable amount of time for the package to have practical functions, so doing it from scratch will allow you to take on the challenge ahead of other companies.
3 . Our approach to building core systems
In most cases, building a core system takes a long time, such as one to two years, and many projects end in failure.
Here’s our approach to ensuring success:
Here’s our approach to ensuring success:
Don't release everything with a big bang
A core system is often a combination of hundreds of functions, and the tasks performed are diverse.
At that time, problems are more likely to occur in cases where the system is new and the way business is performed has changed significantly.
Our recommendation is that even if you have an evolutionary vision, it is better to focus your initial release on areas that are already being implemented in the first step, and then implement the developmental issues in the next step. We think it’s smooth. We work with our customers to create an appropriate roadmap depending on the scale of system development.
At that time, problems are more likely to occur in cases where the system is new and the way business is performed has changed significantly.
Our recommendation is that even if you have an evolutionary vision, it is better to focus your initial release on areas that are already being implemented in the first step, and then implement the developmental issues in the next step. We think it’s smooth. We work with our customers to create an appropriate roadmap depending on the scale of system development.
Building an optimal system architecture
We plan the optimal system architecture based on the scope of the product.
By constructing an optimal system architecture, we can expect to reduce infrastructure costs and increase development/operation productivity, so we will conduct a thorough study.
By constructing an optimal system architecture, we can expect to reduce infrastructure costs and increase development/operation productivity, so we will conduct a thorough study.
Building a team that works as one with our customers
We place emphasis on building a team that works together with the customer while matching their style. Correctly understanding the customer’s business is the starting point of a system development project, and our deliverables are solving the customer’s concerns/issues and achieving their goals. In order to deepen our understanding, we will not only hold efficient remote meetings, but also place importance on face-to-face communication and on-site visits. Then, after continuing to check the documentation to ensure that there are no misunderstandings, we begin the actual development work.
Step by step development/testing with Scrum development
We execute development projects using the Scrum development method. As a cycle, we repeat short-term cycles of 2 to 4 weeks, and build up the development project while producing deliverables. By executing cycles divided into short periods, tasks/roles/responsibilities are clearly defined at each time, and it is possible to proceed with the project while appropriately controlling quality and delivery dates.
Constant data validation
Data is the lifeblood of IT systems. Our focus is not on delivering a working program, but on ensuring proper business operations, and from that perspective we place a heavy emphasis on data verification in our projects. By repeating data acquisition, aggregation, output, and comparison with the existing system just like in real life, we can completely eliminate data acquisition omissions and calculation logic errors, and perform operations that are close to parallel operations, allowing us to release with confidence. Create preconditions.
4 . Our system maintenance/operation approach
A core system is in production after it is released. We propose maintenance/operation with the goal of not only ensuring stable system operation but also continuing to respond to changes in business/operations.
Automation of maintenance/operation tasks
Error detection – A wide range of maintenance/operation tasks, such as contacting maintenance and operation staff, monitoring data processing status, and managing hardware resources, are automated using programs as much as possible to ensure stable operation. We will target the cost burden.
constant improvement
While minimizing maintenance/operation, we will allocate any surplus capacity in our system to functional improvements and further automation of maintenance/operation work. Rather than “maintenance/operation being a constant fixed-rate expense similar to insurance”, we will strive to contribute to our customers’ businesses by making the details of our operations visible.
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