**6. Conclusion**

150 Emerging Informatics – Innovative Concepts and Applications

detection of RFID-tagged clothing and human touches on the screen. The performance improvements in terms of customer conversion are summarized in **Table 3**, which indicates that the overall profitability has been significantly increased by more than twice after

> **Customer Conversion Rates (Based on the formula in Fig.1 )**

Fitting Room Sell Proposed / Prospective 24% 38% Checkout at ePOS Contract Contract / Proposed 57% 77%

The case study demonstrates the use of CCOR model that systematically creates the value stream of lean services for an apparel retailer based on a hierarchical process mapping method by walking through all the pre-sales activities happening on the retail shop floor (See **Figure 3**). The convergence of these two management systems was not explored in previous studies. Based on the interview results, the pre-defined values shown in **Table 2** based on the lean services objectives, help streamline the operation processes and enhance the customer experience on the service operations such that the bottom line and customer satisfaction of the retail sales are improved in two years' time which exceeds the management's expectation. As shown in **Table 3**, the number of contract customers is increased significantly by about 20% and contribute over 45% to the sales revenue in each year despite of the stringent competition. More importantly, the customer conversion rate is improved from about 6% to exceeding the market average, which is about 12% in apparel retailing (Conroy and Bearse, 2006). According to the retailer, casual customers, VIP customers and first-line staffs are all beneficial from the new initiatives with improved operational execution and decision-making assistance that lead to increased customer

The case study provides not only insights but also strategic implications to apparel retailers on realizing lean services with RFID technology. Both the merchant (Firm A) and its RFID supplier (Firm S) have to consider various practical issues in addition to merely look for obtaining business values when implementing the services that heavily rely on emerging technology. Hence, interview results obtained from the users in Firm A and staffs in Firm S are consolidated in association with the system functions and they are presented below:

 The strategic intent of offering *mix-and-match suggestions* based on visual effects and rich information is to close the sales faster than conventional approach. Addressing the complexity and security concerns of RFID technology is the key to success as the moment of truth can never be captured if customers do not actually use it. Based on the user feedbacks, there exist problems concerning *ease of use* and *data privacy* which

**Before Implementation**

market 48% 50%

Overall profitability **6.57% 14.63%**

**After implementation** 

adopting the new approach.

**Shopping process CCOR** 

**5.6 Discussions and implications** 

Dressing mirror &

**process** 

Search and locate Relate Prospective / Target

Table 3. Customer Conversion Rates of Process Groups

conversion rate by delivering a better customer experience.

should be resolved before launching the new technology.

The study introduces an innovative RFID application that realizes lean thinking in the presales service operations of an apparel retailer aimed at customer service excellence with improved customer conversion rate and greener operations. The study has made a contribution to practices by establishing a systematic approach in the creation of value stream for lean services with the use of CCOR model which has not been studied in previous research. Practitioners and researchers in the field of organizational improvement will systematically define the value stream of a retail firm and improve the services at customer touch points based on this approach. According to the retailer, various kinds of customer including prospective customers and contract/VIP customers are beneficial from this new initiative leading to an increasing customer conversion. However, in reality, getting new idea adopted, even if it has obvious advantages, is often very difficult which may take quite a lengthy period and may fail in the process of adoption (Rogers, 1995). Therefore, strategic implications of applying RFID technology to lean services are discussed with the purpose to alleviate the practical problems and user concerns so that lean services can deliver maximum value to apparel retailers. Four practical issues are identified based on the interview results: (i) *ease of use*, (ii) *data privacy*, (iii) *cost advantage*, (iv) *compatibility*, and (v) *time to the market*. Developers of lean services, RFID suppliers and apparel retailers need to take note on these issues when developing or acquiring the new services.

#### **7. References**

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**9** 

*Croatia* 

**Reorganization of Existing** 

Zoran Nježić and Vladimir Šimović

*The Faculty of Teacher Education,* 

 **Business-Information Model in Purpose** 

Production processes supported by IT systems, improve the organizational structure of production with better insight into all aspects of production; and provide planning, monitoring and managing with all phases of production flows. The goal of this work is to investigate the current state of the production environment (working people, manufacturing resources, the material used ...) and suggest the information models which will improve the

The results of simulation experiments locate the congestion and bottlenecks of production, suggest and provide guidance for further development of complex information flows of production. Furthermore, that structure refers to the creation the production of feedback information generated in the actual environment, and thus become the correction factor to

It is assumed that within the information systems except than finished products that require a small number of business operations and phases, can be processed and inquiries about the complex finished products (where have lot of different production operations and materials needed to obtain the finished product). To make such a production cycle to be effective, it's requires a minimum level of knowledge about the creation and manufacture products by the external client that defines the query, because it is based on the confirmed offer runs a complex manufacturing process of projecting and managing of production flow to produce the ordered product. In this report wants to give the proposal a few information models that will automate and simplify making of business documents in order to reduce the time

In current situation is also included set up information organization which is fundament for the further upgrading and updating with new information flows. By this, it's includes the definition of flow for automated creation of production business documents; for both internal and external business correspondence. Furthermore, with advanced production business information systems with a high degree of automation it's allows the generation of

**2. Conditions of construction of information-production structure** 

**1. Introduction** 

existing state.

the production-entry zone.

required for their production.

 **to Improvement Production Process** 

