**5.1 Research design**

Case study research is used in this study considering the strength of its likelihood of generating novel theory and replicating or extending the emergent theory (Eisenhardt, 1989). A comprehensive case study on an apparel retailer, Firm A and its technology partner, Firm S has been conducted by exploring various aspects of the design and implementation of RFID-based lean services in Firm A's retail stores aimed at improving customer conversion based on CCOR process model. In this research, an embedded single case study using qualitative approach (Remenyi *et al.*, 1998; Sanders *et al.*, 2000; Yin, 2009) was adopted to explore the details about the acceptance of a novel system-driven lean service in the context of apparel retailing from design, implementation to result assessment. Special emphasis is placed on RFID application in realizing lean services for retail sales support operations by improving customer experience, operation efficiency and item availability. Semi-structured interviews are conducted in Firm A, including staffs and customers at the retail stores who involve in using the new services and staffs at the backoffice who make related decisions and provide figures about customer conversion. In addition, informal observations are carried out on site where the researcher participated as staff member or customer. Triangulation is used in the study to improve validity (Yin, 2009). Therefore, the members of Firm A and technical support staffs in Firm S are also interviewed. The findings that concern the experience and expectation from end-users are compared and contrasted with the implementation experience of the developer so that conclusions and strategic implications can be realistically drawn from the case study.

#### **5.2 Background**

Prior implementing the new initiative, mix-and-match suggestions on clothing were provided to customers in an old fashion way through staff members on the sales floor based on their experience and/or designers' suggestions by either showing photos in the product catalogues or locating the matched products on racks. Moreover, management of items on the sales floor and inventory in the back-store were relied on bar-codes. Due to the constraint of bar-code technology, store operation was highly manual-based where the availability of staff was crucial as their full participation in the operation processes was required. In order to streamline the operation processes and improve customer experience, Firm S has come-up a RFID-enabled smart retail apparel system in collaboration with Firm A to support the lean service initiative. With the new system, customers are now provided with computerized recommendations on mix-and-match of clothing items with on-screened product information details, which offer a unique shopping experience ensemble to meet their buying needs instantaneously. In addition to the customer relationship enhancement functions, the system enhances shop management by improving the security and inventory management and minimizing shrinkage at the store.

### **5.3 Approach of developing innovative retail services**

144 Emerging Informatics – Innovative Concepts and Applications

Hardgrave and Miller, 2008; Sarma, 2008). Hence, adopting lean services with RFID technology in retail operations supporting Martin (2010)'s IT capabilities becomes feasible and brings improvements to the operation as a whole. A case study of RFID applications in realizing lean services in apparel retailing is presented below aiming to provide insights on

Case study research is used in this study considering the strength of its likelihood of generating novel theory and replicating or extending the emergent theory (Eisenhardt, 1989). A comprehensive case study on an apparel retailer, Firm A and its technology partner, Firm S has been conducted by exploring various aspects of the design and implementation of RFID-based lean services in Firm A's retail stores aimed at improving customer conversion based on CCOR process model. In this research, an embedded single case study using qualitative approach (Remenyi *et al.*, 1998; Sanders *et al.*, 2000; Yin, 2009) was adopted to explore the details about the acceptance of a novel system-driven lean service in the context of apparel retailing from design, implementation to result assessment. Special emphasis is placed on RFID application in realizing lean services for retail sales support operations by improving customer experience, operation efficiency and item availability. Semi-structured interviews are conducted in Firm A, including staffs and customers at the retail stores who involve in using the new services and staffs at the backoffice who make related decisions and provide figures about customer conversion. In addition, informal observations are carried out on site where the researcher participated as staff member or customer. Triangulation is used in the study to improve validity (Yin, 2009). Therefore, the members of Firm A and technical support staffs in Firm S are also interviewed. The findings that concern the experience and expectation from end-users are compared and contrasted with the implementation experience of the developer so that

conclusions and strategic implications can be realistically drawn from the case study.

management and minimizing shrinkage at the store.

Prior implementing the new initiative, mix-and-match suggestions on clothing were provided to customers in an old fashion way through staff members on the sales floor based on their experience and/or designers' suggestions by either showing photos in the product catalogues or locating the matched products on racks. Moreover, management of items on the sales floor and inventory in the back-store were relied on bar-codes. Due to the constraint of bar-code technology, store operation was highly manual-based where the availability of staff was crucial as their full participation in the operation processes was required. In order to streamline the operation processes and improve customer experience, Firm S has come-up a RFID-enabled smart retail apparel system in collaboration with Firm A to support the lean service initiative. With the new system, customers are now provided with computerized recommendations on mix-and-match of clothing items with on-screened product information details, which offer a unique shopping experience ensemble to meet their buying needs instantaneously. In addition to the customer relationship enhancement functions, the system enhances shop management by improving the security and inventory

formulating relevant adoption tactics based on real-life experience.

**5. Case study and discussions** 

**5.1 Research design** 

**5.2 Background** 

The approach of orchestrating the service innovation project by Firm S includes two dimensions: (a) *project deliverables*, regard creating innovative lean services, and (b) *project management*, regards managing the process of creating project deliverables in a controllable manner. Unlike project management, obtaining project deliverables requires understanding of the product markets and has no established rules to follow. Products of apparel retail typically have **short shelf-life**, in which the markets are characterized by: (1) *short lifecycle*, as the product is designed to capture the mood of moment and hence the saleable period is very short, (2) *high impulse purchase*, as the buying decisions for these products are mainly made at the point of purchase, and (3) *high volatility*, which is sensitive to *shrinkage* and *dwell time* of the inventory and ultimately influence the efficiency, operations visibility and total cost of the store operations (Christopher *et al.*, 2004). Besides, customers' perception on the sales dynamics such as service levels and operation efficiency, could also affect their purchase decision.

The approach depicted in **Figure 2** aims at improving the 'As-is' processes with most suitable management practice (e.g. lean thinking, six-sigma, or CCOR model). Based on lean thinking, various value creating activities can be identified as the basis of new services for addressing corresponding market characteristics, and the 'To-be' processes of new services are created by automating/streamlining with suitable enabling technology. In practice, the metric for measuring proposed customer refers to all transacting customers, while it refers to repeated customers (VIP) when measuring contract customer. The approach can be applied to not only tangible services, but also online services considering value creation as the goal.

Fig. 2. A Generic Approach of Developing Innovative Service

The approach adopted in apparel retail operations is shown in **Table 1** in which the shopping processes are optimized with relevant value creating activities that are powered by RFID technology with associated systems aiming at simplifying shoppers to environment interaction and providing smarter decision support in the shopping processes so that sales can be closed faster than the conventional approach. Unlike service blueprint emphasizing


Table 1. Identifying Value Creating Activities for Apparel Services

RFID, an Emerging Wireless Technology for Sustainable Customer Centric Operations 147

Fig. 3. 'As-is' Processes of Apparel Retail Service Operations

that are not check-out at the Point-of-sales (POS) locations, and

on the sales-floor;

conventional bar-code technology.

 *Product catalogue and inventory management*: enhance product visibility and improve search efficiency through tracking and tracing items automatically in the back-store and

*Article surveillance*: brings *security control* capability by identifying and detecting items

 *Transaction process automation*: includes the features like contactless check-out of items with bulk processing capability for improving POS process workflow and ultimately enhancing customer experience in which the contactless feature is not available in the

service delivery time reduction (Shostack, 1982;1984), lean apparel services are customer oriented which emphasize creating customer value through suggesting mix-and–match of clothing items in a smart (e.g. photo displayed in response to the detected RFID-tagged items) and agile (e.g. contactless and personalized services) way.
