Business Continuity And Technology In The Retail Sector

This study examines business continuity in the retail sector. The findings are from a mail survey, case studies and secondary research. An economic framework is also developed for business continuity in retail.The study found that retail organizations are aware of the need for business continuity, the greater attention being given to information technology. The events of 11 September have not had a major impact on business continuity planning in retail organizations. There might have been a short period when organizations paid greater attention to business continuity. However, that spike has now disappeared.Retail organizations display certain characteristic features that appear to diminish the incentives for continuity planning. The assets of retailing firms are primarily in the form of inventories, which tend to be geographically dispersed. This provides automatic protection against many kinds of disruptive events. Since the inventories are part of a flow of sales, they do not have long-term asset value. In other words, they are replaceable. Inventories are typically covered by insurance, which adequately protects retail organizations against the monetary impact of losses.Retail organizations also have some informational assets. The preferred mode of managing informational assets has shifted from paper to telecommunications technologies. As a result, with better telecommunications technologies and lower storage costs, the risk to informational assets has reduced.