Skip to main content
SpringerLink
Log in

A balanced scorecard for item-level RFID in the retail sector: a Delphi study

  • Research Article
  • Published:
European Journal of Information Systems

Abstract

Item-level Radio Frequency Identification (RFID) adoption is on the agenda for many retailers. However, before adopting this technology, managers need to be able to identify its direct and indirect benefits. These benefits are expected to be significant and have begun to be studied empirically and analytically in narrow, isolated segments (e.g., supply chain management). In this paper, we focus on applications of RFID in the retail sector, specifically in store operations. We have adapted the balanced scorecard (BSC) model as a decision-making framework to build a holistic model of RFID-enabled changes throughout retail store operations including marketing, merchandising, and supply chain management. After reviewing the existing literature, we conducted a Delphi study in which 10 consultants and senior managers from leading U.S. retailers were interviewed. The results indicate that benefits in the areas of merchandising and marketing may not be realized as directly as those in the supply chain, but their effects should not be underestimated. The proposed BSC model can also indicate potential opportunities for item-level RFID use in retailing and serve as a guideline for further studies.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1
Figure 2

Similar content being viewed by others

References

  • Abell P (2003) Item tracking: myths and realities. RFID Journal, 15 March 2010 [WWW document] www.rfidjournal.com/article/pdf/484/1/1/rfidjournal-article484.PDF.

  • Aberdeen Group (2008) Know what's in store with RFID. White Paper, Boston, MA.

  • Akkermans HA, Bogerd P, Yucesan E and Wassenhove LNV (2003) The impact of ERP on supply chain management: exploratory findings from a European Delphi study. European Journal of Operational Research 146 (2), 284–301.

    Article  Google Scholar 

  • Alexander K, William T, Gramling K, Kindy M, Moogimane D, Schultz M and Woods M (2002) Applying auto-ID to reduce losses associated with shrinkage. MIT Auto-ID Center White Paper, IBM, Business Consulting Services.

  • American Apparel RFID Project – Case Study (2009) RFID monthly. American Apparel RFID Project – Case Study.

  • Angeles R (2007) An empirical study of the anticipated consumer response to RFID product item tagging. Industrial Management and Data Systems 107 (4), 461–483.

    Article  Google Scholar 

  • Atali A, Lee H and Ozer Ö (2005) If the inventory manager knew: value of RFID under imperfect inventory information. White Paper, Stanford University, CA.

  • Bai L, Szmerekovsky J and Zhang J (2009) Modeling inventory inaccuracy and demand deviation to assess the value of RFID. International Journal of Operations and Quantitative Management 15 (3), 157–172.

    Google Scholar 

  • Banker RD, Chang H and Pizzini MJ (2004) The balanced scorecard: judgmental effects of performance measures linked to strategy. The Accounting Review 79 (1), 1–23.

    Article  Google Scholar 

  • Berthiaume D (2004) RFID boosts customer satisfaction at Tesco – smart shelves show potential to improve visibility. Chain Store Age, January, 24A–25A.

  • Bianchi C and Montemaggiore GB (2008) Enhancing strategy design and planning in public utilities through ‘dynamic’ balanced scorecards: insights from a project in a city water company. System Dynamics Review 24 (2), 175–213.

    Article  Google Scholar 

  • Bottani E and Rizzi A (2008) Economical assessment of the impact of RFID technology and EPC system on the fast moving consumer goods supply chain. International Journal of Production Economics 112 (2), 548–569.

    Article  Google Scholar 

  • Brewer PC and Speh TW (2000) Using the balance scorecard to measure supply chain performance. Journal of Business Logistics 21 (1), 75–94.

    Google Scholar 

  • Cobbold I and Lawrie G (2002) The development of the balanced scorecard as a strategic management tool. In Performance Measurement and Management: Research and Action (NEELY A, WALTERS A and AUSTIN R, Eds), pp 125–132, Centre for Business Performance, Cranfield.

    Google Scholar 

  • Daniel E and White A (2005) The future of inter-organisational system linkages: findings of an international Delphi study. European Journal of Information Systems 14 (2), 188–203.

    Article  Google Scholar 

  • Dehoratius N, Mersereau AJ and Scharge L (2005) Retail inventory management when records are inaccurate. University of Chicago Graduate School of Business Working Paper.

  • Dehoratius N and Raman A (2008) Inventory record inaccuracy: an empirical analysis. Management Science 54 (4), 627–641.

    Article  Google Scholar 

  • Delbecq A, Van de ven AH and Gustafson DH (1975) Group Techniques for Program Planning. Scott Foresman, Glenview, IL.

    Google Scholar 

  • Delen D, Hardgrave BC and Sharda R (2007) RFID for better supply-chain management through enhanced information visibility. Production and Operations Management Journal 16 (5), 316–324.

    Google Scholar 

  • Doerr K and Gates W (2003) An integrated multi-criteria and simulation approach to cost benefit analysis of inventory tracking. INFORMS Annual Meeting, Atlanta, Georgia.

  • Doerr KH, Gates WR and Muttya JE (2006) A hybrid approach to the valuation of RFID/MEMS technology applied to ordnance inventory. International Journal of Production Economics 103 (2), 726–741.

    Article  Google Scholar 

  • EPC Global (2008) Improving retail promotional execution. 15 March 2010 [WWW document] http://www.epcglobalus.org/KnowledgeBase/Browse/tabid/277/DMXModule/706/Default.aspx?EntryId=1171.

  • Evans JR (2004) An exploratory study of performance measurement systems and relationship with performance results. Journal of Operations Management 22, 219–232.

    Article  Google Scholar 

  • Fleisch E and Tellkamp C (2005) Inventory inaccuracy and supply chain performance: a simulation study of a retail supply chain. International Journal of Production Economics 95 (3), 373–385.

    Article  Google Scholar 

  • Fraza V (2000) Ending inventory errors in 60 days. Modern Materials Handling 55 (3), A11.

    Google Scholar 

  • Frederic T, Jasser A and Elgar F (2009) Understanding the value of integrated RFID systems: a case study from apparel retail. European Journal of Information Systems 18 (6), 592–614.

    Article  Google Scholar 

  • Gaukler GM and Seifert RW (2007) Applications of RFID in supply chains. In Trends in Supply Chain Design and Management: Technologies and Methodologies (JUNG H, CHEN FF and JEONG B, Eds), Springer-Verlag, London.

    Google Scholar 

  • Gaukler GM, Seifert RW and Hausman WH (2007) Item-level RFID in the retail supply chain. Production and Operations Management Journal 16 (1), 65–76.

    Article  Google Scholar 

  • Gruen TW and Corsten D (2008) A Comprehensive Guide to Retail Out-of-Stock Reduction in the Fast-Moving Consumer Goods Industry. Grocery Manufacturers of America, Washington, DC.

    Google Scholar 

  • Gruen TW, Corsten D and Bharadwaj S (2002) Retail Out-of-Stocks: A Worldwide Examination of Extent Causes and Consumer Responses. Grocery Manufacturers of America, Washington, DC.

    Google Scholar 

  • Hardgrave BC (2008) RFID as electronic article surveillance EAS: feasibility assessment. White Paper, Information Technology Research Institute, University of Arkansas, Fayetteville, AR.

  • Hardgrave BC (2009a) Item-level RFID for apparel: the Dillard's RFID initiative. White Paper, Information Technology Research Institute, University of Arkansas, Fayetteville, AR.

  • Hardgrave BC (2009b) Item-level RFID for apparel: the Bloomingdale's RFID initiative. White Paper, Information Technology Research Institute, University of Arkansas, Fayetteville, AR.

  • Hardgrave BC, Langford S, Waller M and Miller R (2008) Measuring the impact of RFID on out of stocks at Wal-Mart. MISQE 7 (4), 181–192.

    Google Scholar 

  • Hasson F, Keeney S and Mckenna H (2000) Research guidelines for the Delphi survey technique. Journal of Advanced Nursing 32 (4), 1008–1015.

    Google Scholar 

  • Heese HS (2007) Inventory record inaccuracy, double marginalization and RFID adoption. Production and Operations Management Journal 16 (5), 542–553.

    Article  Google Scholar 

  • Heim GR, Wentworth JR. WR and Peng X (2009) The value to the customer of RFID in service applications. Decision Sciences 40 (3), 477–512.

    Article  Google Scholar 

  • Helo P and Zekely B (2005) Logistics information systems: an analysis of software solutions for supply chain co-ordination. Industrial Management & Data Systems 105 (1), 5–18.

    Article  Google Scholar 

  • Jones P, Clarke-Hill C, Hillier D and Comfort D (2005) The benefits, challenges and impacts of radio frequency identification technology RFID for retailers in the UK. Marketing Intelligence and Planning 23 (4), 395–402.

    Article  Google Scholar 

  • Jones P, Clarke-Hill C, Shears P, Comfort D and Hillier D (2004) Radio frequency identification in the U.K: opportunities and challenges. International Journal of Retail & Distribution Management 32 (2/3), 164–171.

    Article  Google Scholar 

  • Kaplan RS and Norton DP (1992) The balanced scorecard – measures that drive performance. Harvard Business Review 70, 71–79.

    Google Scholar 

  • Kaplan RS and Norton DP (1996) Using the balanced scorecard as a strategic management system. Harvard Business Review 74, 75–85.

    Google Scholar 

  • Kaplan RS and Norton DP (2000) The Strategy-focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press, Boston, MA.

    Google Scholar 

  • Kambil A and Brooks JD (2002) Auto-ID Across the Value Chain: From Dramatic Potential to Greater Efficiency and Profit. Auto ID-Center, Boston, MA.

    Google Scholar 

  • Kay M (2008) An apparel research study and analysis, RFID well within reach. Apparel Magazine, June issue.

  • Krafft M and Mantrala MK (2006) Retailing in the 21st Century: Current and Future Trends. Springer, New York.

    Book  Google Scholar 

  • Karkkainen M and Holmstrom J (2002) Wireless product identification: enabler for handling efficiency, customization and information sharing. Supply Chain Management: An International Journal 7 (4), 242–252.

    Article  Google Scholar 

  • Lee H and Ozer O (2007) Unlocking the value of RFID. Production and Operations Management 16 (1), 40–64.

    Article  Google Scholar 

  • Linstone HA and Turoff M (2002) The Delphi Method: Techniques and Applications. Addison-Wesley, Reading, MA.

    Google Scholar 

  • Loebbecke C and Palmer JW (2006) RFID in the fashion industry: Kaufhof department stores Ag and Gerry Weber International AG, Fashion manufacturer. MIS Quarterly Executive 5 (2), 15–25.

    Google Scholar 

  • Maccarthy BL and Atthirawong W (2003) Factors affecting location decisions in international operations – a Delphi study. International Journal of Operations & Production Management 23 (7), 794–818.

    Article  Google Scholar 

  • Malhotra MK, Steele DC and Grover V (1994) Important strategic and tactical manufacturing issues in the 1990s. Decision Sciences 25 (2), 189–214.

    Article  Google Scholar 

  • Martinsons M and Davison R (1999) The balanced scorecard: a foundation for the strategic management of information systems. Decision Support Systems 25 (1), 71–88.

    Article  Google Scholar 

  • Melnyk S, Burns L, Lummus R, Vokurka R and Santor J (2009) Mapping the future of supply chain management: a Delphi study. International Journal of Production Research 47 (16), 4629–4653.

    Article  Google Scholar 

  • Murphy MK, Black NA, Lamping DL, Mckee CM, Sanderson CFB, Askham J and Marteau T (1998) Consensus development methods and their use in clinical guideline development. Health Technology Assessment 2 (3), 1–88.

    Google Scholar 

  • Nevo D and Chan YE (2007) A Delphi study of knowledge management systems: scope and requirements. Information and Management 44, 583–597.

    Article  Google Scholar 

  • Nikolaj BP and Malmi T (2005) Re-examining the cause-and-effect principle of the balanced scorecard. In Accounting in Scandinavia The Northern Lights (JNSSON S and MOURITSEN J, Hrsg, Eds), pp S. 87–113, Copenhagen Business School Press, Copenhagen.

    Google Scholar 

  • Nowack M, Endrikat J and Guenther E (2011) Review of Delphi-based scenario studies: quality and design considerations original research article. Technological Forecasting and Social Change, in press.

  • O’connor MC (2007) Ohio boutique takes a unique approach to RFID. [WWW document] http://www.rfidjournal.com/article/articleview/3688/1/1/.

  • Ogden JA, Petersen KJ, Carter JR and Monczkan RM (2005) Supply management strategies for the future: a Delphi study. The Journal of Supply Chain Management 41 (3), 29–48.

    Article  Google Scholar 

  • Okoli C and Pawlowski SD (2004) The Delphi method as a research tool: an example, design considerations and applications. Information and Management 42, 15–29.

    Article  Google Scholar 

  • Pearson J (2006) Increasing security in the supply chain with electronic security markers. White Paper, Texas Instruments Radio Frequency Identification Systems, November 2010 [WWW document] http://ti.com/rfid/docs/manuals/whtPapers/wp_eSecurity_Markers.pdf.

  • Powell C (2003) The Delphi technique: myths and realities. Journal of Advanced Nursing 41 (4), 376–382.

    Article  Google Scholar 

  • Prater E, Frazier GV and Reyes PM (2005) Future impacts of RFID on e-supply chains in grocery retailing. Supply Chain Management: An International Journal 10 (2), 134–142.

    Article  Google Scholar 

  • Rawal A (2009) RFID: the next generation auto-ID technology. Microwave Journal 52 (3), 58.

    Google Scholar 

  • Reicheld FF (1996) Learning from customer defections. Harvard Business Review 74 (2), 56–69.

    Google Scholar 

  • Reid NC (1988) The Delphi technique, its contribution to the evaluation of professional practice. In Professional Competence and Quality Assurance in the Caring Professions (ELLIS R, Ed.), pp 230–262, Croom-Helm, Beckenharn, Kent.

    Google Scholar 

  • Rekik Y, Sahin E and Dallery Y (2008) Analysis of the impact of the RFID technology on reducing product misplacement errors at retail stores. International Journal of Production Economics 112 (1), 264–278.

    Article  Google Scholar 

  • Rekik Y, Sahin E and Dallery Y (2009) Inventory inaccuracy in retail stores due to theft: an analysis of the benefits of RFID. International Journal of Production Economics 118 (1), 189–198.

    Article  Google Scholar 

  • Rodkin HH and Yanahan P (2005) RFID adoption in the retail industry. A research paper prepared by USA Strategies Inc, Willowbrook, USA.

  • Roussos G (2006) Enabling RFID in retail. Computer 39 (3), 25–30.

    Article  Google Scholar 

  • Sahin E (2004) A qualitative and quantitative analysis of the impact of auto id technology on the performance of supply chains. Doctoral dissertation, Ecole Centrale Paris, Chatenay-Malabry, France.

  • Singh R, Keil M and Kasi V (2009) Identifying and overcoming the challenges of implementing a project management office. European Journal of Information Systems 18 (5), 409–428.

    Article  Google Scholar 

  • Szmerekovsky J, Tilson V and Zhang J (2009) Pricing and allocation of retail space with one RFID enabled supplier and one non-RFID enabled supplier. International Journal of Revenue Management 3 (1), 37–55.

    Article  Google Scholar 

  • Uhrich F, Sandner U, Resatsch F, Leimeister JM and Krcmar H (2008) RFID in retailing and customer relationship management. Communications of the Association for Information Systems23, Article 13, 219–234.

  • Van Der Zee JTM and De Jong B (1999) Alignment is not enough: integrating business and information technology management with the balanced business scoreboard. Journal of Management Information Systems 16 (2), 137–156.

    Article  Google Scholar 

  • Verkade P, Meijel BV, Brink C, Os-Medendorp H, Koekkoek B and Francke AL (2010) Delphi-research exploring essential components and preconditions for case management in people with dementia. BMC Geriatrics 10, 54–65.

    Article  Google Scholar 

  • Wamba SF and Chatfield AT (2009) A contingency model for creating value from RFID supply chain network projects in logistics and manufacturing environments. European Journal of Information Systems 18 (6), 615–637.

    Article  Google Scholar 

  • Wilding R and Delgado T (2004) RFID applications within the supply chain. Supply Chain Practice 6 (2), 30–43.

    Google Scholar 

  • Zhou W (2009) RFID and item-level information visibility. European Journal of Operational Research 198 (1), 252–258.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Division of Economics and Business, Marketing and Information Systems Department, SUNY Oneonta, Management, Oneonta, NY, U.S.A.

    Narges Kasiri

  2. William S. Spears School of Business, Oklahoma State University, Institute for Research in Information Systems, Stillwater, OK, U.S.A.

    Ramesh Sharda

  3. College of Business, Auburn University, Auburn, AL, U.S.A.

    Bill Hardgrave

Authors
  1. Narges Kasiri
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ramesh Sharda
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Bill Hardgrave
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Narges Kasiri.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kasiri, N., Sharda, R. & Hardgrave, B. A balanced scorecard for item-level RFID in the retail sector: a Delphi study. Eur J Inf Syst 21, 255–267 (2012). https://doi.org/10.1057/ejis.2011.33

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/ejis.2011.33

Keywords

Search

Navigation