Business that creates an IoT device
You have decided to start a business that creates an IoT device that can be attached to a shopping cart or basket and tracks store navigation patterns, products placed and removed from carts, and total purchase price. As you build an executive summary for your IoT device's business case, include responses to the following questions in paragraph form. This summary should be in APA format, contain a title page with your name, and be approximately 400 words in length.
• What business strategies can a company such as Target gain from using your IoT device?
• What types of information can be gleaned by analyzing traffic patterns in the store?
• What business intelligence can be found by analyzing products placed and removed from carts?
• Do you think there will be a correlation between time and the amount of the total purchase?
• How can you use this information to help improve business operations?
• If you owned a store, would you consider purchasing this great new IoT device?
Sample Solution
Business Strategies for Target
Target can gain a number of business strategies from using an IoT device to track shopping cart navigation patterns, products placed and removed from carts, and total purchase price. These strategies include:
- Improved product placement: Target can use the data collected by the IoT device to identify which products are most often placed in carts and which products are most often removed from carts. This information can then be used to improve product placement in the store, making it easier for customers to find the products they want and more likely to purchase them.
Full Answer Section
- Targeted promotions: Target can use the data collected by the IoT device to identify which products are most popular with different customer segments. This information can then be used to develop targeted promotions that are more likely to be relevant and effective.
- Reduced inventory costs: Target can use the data collected by the IoT device to better understand customer demand for different products. This information can then be used to optimize inventory levels, reducing the risk of overstocking and understocking.
- Improved store layout: Target can use the data collected by the IoT device to understand how customers move through the store. This information can then be used to improve the store layout, making it easier for customers to find the products they want and to get around the store quickly and easily.
- Which areas of the store are most popular: By tracking the movement of shopping carts, Target can identify which areas of the store are most popular with customers. This information can then be used to improve product placement, develop targeted promotions, and optimize inventory levels.
- Which products are most popular: By tracking the products that are placed in and removed from shopping carts, Target can identify which products are most popular with customers. This information can then be used to develop targeted promotions, optimize inventory levels, and improve product placement.
- Which products are often purchased together: By tracking the products that are placed in and removed from shopping carts, Target can identify which products are often purchased together. This information can then be used to develop targeted promotions and to create product displays that promote cross-selling.
- How customers move through the store: By tracking the movement of shopping carts, Target can understand how customers move through the store. This information can then be used to improve the store layout and to identify areas where customers may be getting lost or confused.
- Which products are not meeting customer expectations: By tracking the products that are removed from shopping carts, Target can identify which products are not meeting customer expectations. This information can then be used to improve product quality, packaging, or marketing.
- Which products are confusing or difficult to find: By tracking the products that are added and removed from shopping carts, Target can identify which products are confusing or difficult for customers to find. This information can then be used to improve product placement or to provide additional signage or information to customers.
- Which products are often abandoned at the checkout line: By tracking the products that are abandoned at the checkout line, Target can identify which products are causing customers to reconsider their purchases. This information can then be used to improve product quality, packaging, or marketing.
- Improved inventory management: Target can use the data collected by the IoT device to better understand customer demand for different products. This information can then be used to optimize inventory levels, reducing the risk of overstocking and understocking.
- Reduced labor costs: Target can use the data collected by the IoT device to identify which areas of the store require the most staffing. This information can then be used to more efficiently allocate staff, reducing labor costs.
- Improved customer satisfaction: By using the data collected by the IoT device to improve product placement, develop targeted promotions, and optimize inventory levels, Target can improve the customer shopping experience, leading to increased customer satisfaction.