Thursday, December 13, 2018

How Oracle Fusion Is Compatible In Retail Industry

When a company sells its product to an individual user for his or her own use is known as retail sale. The retail transaction can be done through various channels like online, direct sale or from a physical store. Retail is usually categorized into four types:

  • Food: eatable things like meat, bakery items, dairy items etc
  • Soft Consumable : things like clothing, shoes etc
  • Arts and Education : Thinks like fine arts, books and musical instruments
  • Hard lines : Things which are durable or long term use such as home appliances, vehicles, furniture

Under these categories you will find different kind of retailer

Department Store
This type of retailer offers a wide range of products of different price range. In other words it is a combination of small retail stores managed by an individual or company

This types of retailers basically a big grocery store including food and beverages. But some supermarkets offer products such as home appliances, fashion and electronics goods.

Warehouse Retailers
This kind of retailer stock huge amount of products and offer at very low price. You can find this retailer in business parks or in specific huge markets.

Specialty Retailer
This retailer offer products from one or two companies and provide customer care too. This also provide accessories or related products

These retailers provide services online and cover a large geographic area. Customers buy products via internet.

Discount Retailer
This retailer offers discounted products. The products are of low price as compared to market price

Retail Market in India
According to the retail market of India is one of top five markets of the world worth US$600 billion. This retail market is one of the pillars of Indian economy and it’s about 10 percent of its GDP. It is expected that this industry will be doubled by 2020. The factors behind this are increased income of middle class and increased digital connectivity

Prudence Technologies Taking Part in Digital India

Prudence technology brings Oracle Fusion Cloud service for retail market in India. This is an initiative towards digital India. Oracle Fusion Cloud provide various retail services which are really helpful to retailers to manage huge daily transactions. We discuss some of the retail services of Fusion Cloud below

Oracle Retail Insights and Science Products
There is an intense competition in retail. Due to the availability of internet and social media today we are able to know what customers want even if they don’t tell you. Oracle retail insights and science product help retailers to get this information using machine learning and AI algorithms. Some of these products are

  • Customer Insight Cloud Service : It understands customer preferences
  • Merchandising Cloud Service : Identify affection able merchandising opportunities
  • Retail Science Platform Cloud Service : A complete suite of retail science applications, purpose built and field tested

Oracle Retail Omni-channel Products
A perfect Omni-channel retail experience needs a continuous and smooth combination online store, physical store, order management and customer care. Oracle does this consolidation. Some of these products are

  • Commerce Cloud : Provides customized and optimized e-commerce experience
  • Order Management System Cloud : Identify, attract and retain your loyal customers by providing unprecedented customer care
  • Store Inventory Operations Cloud Service : Provides real-time and precise inventory data to execute efficient in-store processing

Oracle Retail Supply Chain Products
Managing your supply chain process efficiently could be profitable. Oracle retail supply chain management solution promotes collaboration across your supply chain network and inspires consumer trust and transparency. Some of its products are

Warehouse Management System : Enable retailers to control orders and inventory throughout the process
Advance Inventory Planning: Has a full grip over forecaster demands and guide to purchase inventory in-time.
Replenishment Optimization : Balance inventory in the whole supply chain process efficiently to achieve great customer service

Wednesday, December 12, 2018

All you need to know about Average Revenue per User

Average revenue per user (ARPU) is the measure of average revenue per user. It is also known as average revenue per unit. It is usually calculated on monthly or yearly basis. ARPU is very important measurement for all type of businesses but mostly used by subscription based service provider company’s i.e telecommunication and internet service providers (ISP). It provides a close view of the revenue per user device or unit and help companies to pursue revenue growth as a result of promotions and ads on services.

How to find ARPU?

It is used for financial analytics. The equation to determine ARPU is:

ARPU = Total revenue / total number of users

It depends upon a time period, typically monthly and yearly. But number of users is usually taken as average because their numbers fluctuate in a specified period.

Some uses of ARPU

  • Telecommunication companies measure ARPU based on per device. In case of telephony services, ARPU could be based on number of calls per unit time..
  • Cable service providers measure ARPU based on per connection
  • E-commerce based companies measure ARPU based on per cart
  • Social media companies measure ARPU based on per investor
Dilemma of Increasing Revenue by Maintaining ARPU

One of the difficulties faced by all service providers to increase revenue is by maintaining ARPU either by existing customers or new customers. If number of subscriber’s increases or existing subscribers do not maintain service subscriptions in a specified period or show less interest. Then revenue decreases and eventually ARPU decreases. The problem is how to maintain ARPU.

What’s the solution?

As competition in the market increases, telecommunication service providers must behave as watchdogs on revenue flow. Prudence technology specialized in Oracle, provides a billing analytical system which helps service providers to unlock valuable information about revenue flow. It takes company’s analytical capability to a new level.

The solution provides a complete understanding of the customers by covering all products and services. It enables telecommunication service providers to penetrate deep into billing related metrics like billing revenue, payments, collections, adjustments and more. This billing and analytic software solution has built-in reports and dashboards which covers billing revenue, billing efficiency, consumer metrics, prepaid metrics, usage metrics etc.

Under billing revenue category, this software covers some key aspects of revenue. For example total revenue, ARPU, collections and adjustments. It also answers some of the following basic questions which help to maintain ARPU:
  • What is the total revenue across various dimensions including customer type, product type, plan type etc
  • What is ARPU across various dimensions including customer type, product type, plan type etc
In addition to total revenue, another important parameter in ARPU formula is “Number of customers”. Knowing this parameter from acquisition and churn perspective help telecommunication service providers to make decision at right time i.e. offer promotions to attract new customers or offer different value added services to retain the existing customers. Billing analytic tool answer following questions:
  • What is the rate of customer acquisition across various dimensions like customer type, product type, plan type etc
  • What is the churn rate across above dimensions