To analyze the IT Generated Advantage of TESCO, let’s take a look at the various fields of technology where it has operated/invested till now. In 2001, for the first time TESCO became involved in the Internet grocery retailing. It obtained a 35% stake in GroceryWorks. In October 2003 the company launched a UK telecoms division, comprising mobile and home phone services. In 2004 it launched a broadband service. It also offers and Internet based DVD rental service. Tesco also increased their online presence with its flagship F&F and Cherokee clothing lines.
Tesco.com’s success in the online grocery field really showcases their IT Generated advantage over other competitors. With annualized sales of more than £500 million, Tesco.com is the world’s largest online grocer. Presently, it has more than 3 million registered customers, and delivers 120,000 grocery orders per week. The company also started using Google Adwords in late 2003.
Stewart Hunter, Tesco's Online Advertising Manager, wanted to take advantage of AdWords' ability "to promote our non-food businesses as well as to target customers in a more cost-effective way." He adds that a key measure for Tesco is its return on investment (ROI): "if it's not cost effective, we won't do it," he says.
"We've witnessed dramatic increases in driving traffic with online advertising during the key campaigns we've run," says Hunter. "Google has delivered really well for us on electricals, for example, and is very good at driving trade for us during specific occasions. Over Mother's Day, we were able to drive 15,000 visits over a two-week window and saw a conversion rate to sales as good as any advertising we undertook. These were cost-effective sales for us. They surpassed our internal sales targets."
Tesco has also upgraded their IT infrastructure in collaboration with Microsoft technologies. Since the arrival of the ITAP advisor and by using Microsoft enterprise IT management framework, Tesco.com has seen significant improvement in how it plans, manages, and delivers architecture. In particular, better alignment and integration with the business, and establishing a dedicated enterprise architecture capabilities, processes, and standards.
No comments:
Post a Comment