Innovations in Shopping Technology: A Comprehensive Overview

1. YSGOL GYFUN YSTALYFERA CENTRE NO. 68885 I.T AND SHOPPING BY SIAN FRYER

2. CONTENTS TITLE SLIDE NO. Introduction3 INPUT DEVICES Bar Code Readers5 Card Swipe Readers9 OUTPUT DEVICES LCD Screens12 Receipt Printer13 OTHER USES OF I.T IN SHOPPING Credit and Debit Cards15 Advantages and Disadvantages 16 Reward Cards18 Shop and Go20 Databases 21 Internet Shopping25 Bibliography26

3. INTRODUCTION • I.T is used a lot in shopping these days. • You can’t go into a shop without being confronted with something to do with computers. • An example of this is bar codes. They are scanned into a computer by a bar code reader (an input device). The computer understands the code. • A card swipe reader can read the strip on the back of credit cards.

4. INPUT DEVICES

5. Bar Code Readers • A bar code is made up of a series of black and white lines • The bar code reader remembers where the light is reflected back (the white bits) and where it is absorbed (the black bits) • The cash register uses the data from the code to identify the item and look up its latest price and print the information on the customer’s receipt. • Bar codes are commonly used to store data such as prices and stock codes relating to products in shops and supermarkets.

6. Bar codes in shops use EAN – European Article Numbers. The last digit in an EAN is a check digit. • The Modulo 10 method is used to calculate the check digit. • There are 3 different pieces of information in the EAN: • The supplier code • The item code • The check digit

7. MODULO 10 We can see if this is a valid EAN number using the Modulo 10 method. First we add together alternate digits, starting with the second: 0+1+0+9+3+0 = 13 Then multiply the answer by 3: 13 x 3 = 39 Add together all the remaining digits except the last one (the check digit) 5+1+3+8+5+0 = 22 Add these two answers together: 39 + 22 = 61

8. The check digit is the smallest number that has to be added to this answer to make it a multiple of 10. The next multiple of 10 is 70: 70 - 61 = 9 The check digit was 9 so this is a valid number.

9. CARD SWIPE READERS • Credit, debit and reward cards have a magnetic stripe on the back, known as a magstripe. • When the card is swiped through the card reader, the computer can read the information from the card and check whether the holder has enough money to pay.

10. After the card is swiped, the card reader phones a stored number through a modem to an acquirer. • An acquirer is an organisation that collects credit authentication requests and provides payment guarantees • After the card is checked, the bank is informed how much money to take away or add to the bank account

11. OUTPUT DEVICES

12. LCD screen LCD SCREEN • LCD (Liquid Crystal Display) screens weigh less and can be smaller than normal CRT (Cathode Ray Tube) displays. • They are often used on laptops, calculators and till screens. • They are available in high resolution and colour, but the viewing angle is limited. • You can tell if a screen is an LCD screen because it is small and not very deep, and you need to be looking pretty much straight at it to be able to read it easily.

13. RECEIPT PRINTER • A receipt printer is used to print receipts, normally in a checkout in a supermarket. • The receipt printer prints out the receipt, showing all the products that customer has bought, their price and the total price.

14. OTHER USES OF I.T IN SHOPPING

15. CREDIT AND DEBIT CARDS • More business transactions than ever are paid for by transferring money from one account to another instead of using cash. • Credit cards allow someone to borrow money when making a purchase and settle the debt later • Debit cards, on the other hand, transfer money that is already in someone’s bank account to settle the bill.

16. ADVANTAGES AND DISADVANTAGES OF CREDIT CARDS Advantages For the shopkeeper: People will buy more things because it doesn’t matter if they don’t have the money at that moment in time. For the shopper: They can buy things that they need and not have to pay until next month. Disadvantages For the shopkeeper: They have to pay a premium to the credit card company, and there is a danger that the shopper will not have enough money to pay. For the shopper: It’s easier to run up a huge bill on a credit card as it works even if you don’t have enough money in your account.

17. ADVANTAGES AND DISADVANTAGES OF DEBIT CARDS Advantages For the shopkeeper: The shopkeeper is certain that the customer is able to pay, because their account is checked before the card is debited. For the shopper: They can be sure that they won’t spend more money than they have. Disadvantages For the shopkeeper: People won’t be quite so free-spending because they are limited by what they have in their account. For the shopper: If they don’t have the money, even to buy something they really need, it’s tough luck!

18. REWARD CARDS • Many shops offer reward or loyalty cards to their shoppers. These allow points to be given to the shoppers for loyalty or special purchases. These cards benefit shops because: • The shop can find out customer shopping habits and preferences and arrange suitable promotions. • Encourages customers to come back again and again.

19. However, their disadvantage is: • The company doesn’t know what to do with all the information it collects! This is why Safeway withdrew its reward cards. The advantages for the shopper are: • They can get money off some products. • Faithful customers are well rewarded with special offers. Their disadvantage is: • Many of the offers aren’t that good!

20. SHOP AND GO • Shop and Go is used by busy people who haven’t go time to queue in a supermarket. • After registering, you just pick up one of the Shop and Go hand held scanners, and scan each product as you put it into your trolley. • The information from these scanners is put into a computer and you pay, without having to queue. • This service is currently unique to Safeways

21. DATABASES • Shops use databases to keep track of their products. • These contain an item description, price, quantity in stock and a re-order level. Other things may also be kept in the database. • The file containing all the information is called the Master File. • Stock is an asset to a company, but it ties up valuable resources which could be invested elsewhere. That is why a re-order level is necessary. • When it reaches the same level as the re-order level, either it alerts the staff, or it can re-order some more automatically.

22. Every day the shop keeps a record of what had been sold. This record is kept on a transaction file. • Every night the transaction file is sorted out and then the Master File is updated. • This Master File is stored on a Mainframe computer. This is a very very powerful computer with a huge amount of storage space - usually in terabytes. • After the Master file is updated, stock levels are compared with re-order levels. IF QUANTITY IN STOCK < RE-ORDER LEVEL THEN RE-ORDER

23. Transaction files unsorted. These have been downloaded by the shops and uploaded at the company’s computer Headquarters. A mainframe computer is used for the following process. Process. The transaction file is sorted. Sorted transaction file THIS IS HOW THE MASTER FILE IS UPDATED

24. Master file. All the records of all the items for sale in all the branches are kept here. Sorted transaction file Process. Update the Master file. Produce error list. Produce re-order lists for suppliers. Error list Re-order list. This may be produced electronically and sent electronically to the supplier. New Master File.

25. INTERNET SHOPPING • Internet shopping is known as e-commerce. • Every day more shops offer online ordering, and more customers take advantage of it. • You can shop online with Tesco, Sainsburys and other supermarkets, and websites like Amazon.co.uk. • The problem with Internet shopping is the Internet is not secure, but many sites now use encryption techniques to get round this problem.

26. BIBLIOGRAPHY GNVQ Advanced Information Technology (ISBN 0-907679-80-3) by Geoffrey Knott and Nick Watts A Level Computing 3rd Edition (ISBN 1-85805-170-3) by P M Heathcote GCSE ICT Success (ISBN 1-84085-602-5) by Sean O’Byrne HowStuffWorks (Website) www.howstuffworks.com

27. THE END!