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RFID supermarket checkout strategy

Supermarket RFID checkout automation assignment guides you to research RFID, build an Excel business case with NPV, IRR and sensitivity analysis, and present a compelling funding pitch to senior management using PowerPoint.

Learning objectives and context

Learning objectives
This assignment specifically addresses the following learning objectives of the course: LO5 Demonstrate effective communication by composing writing that communicates ideas, meaning and/or argument in a format that broadly follows conventions in the information systems field. In the context of RFID checkout automation, effective communication means presenting technical, financial and strategic insights in clear, concise language that non-technical executives can understand and act upon.

LO6 Apply technology and online skills to locate relevant information for the assignments, analyse the presented problems and data, and engage in the use of the resources provided on UConnect. In researching RFID and automation, you are expected to use scholarly databases, reputable industry sources and online tools to gather current evidence about costs, benefits and implementation risks in modern retail environments.

Individual submission
Students should complete this assignment individually. It is acceptable to discuss the assignment with others to improve your understanding and clarify requirements but you should write up the solution to the assignment on your own. Many universities now routinely check for academic integrity using text-matching tools, so collaboration should focus on ideas and not on sharing written sections or spreadsheets.

Activity A: Reflective journal

Activity A: Journal (maximum 500 words)
Prepare a journal which records your activities and progress related to completing this assignment. In date order, clearly list the following: Date of research activity or discussion; Topic researched or discussed; Time duration; Brief description of research activity or discussion. Maintaining a dated activity log also helps you evidence LO6, showing how you systematically used online tools, readings and software over time to complete the RFID business case.

Submit this journal as a separate report. A sample of the journal will be provided in the StudyDesk. Reviewing the sample template before you start can make your entries more focused and aligned with the marker’s expectations for professionalism and clarity.

Activity B: RFID project for senior management

Activity B: Presentation to Senior Management
You are the CIO of a successful supermarket or grocery store chain in the country. You recently attended a technology update seminar on supermarket automation. During the seminar the organiser showed two video clips to illustrate how supermarkets would operate in the future. You can find these video clips on YouTube, such as Future Store Tönisvorst and That’s how we will shop within a couple of years. Recent examples such as RFID-enabled “just walk out” and scan-all-at-once checkouts in global retail highlight how quickly these concepts are moving from vision videos to real deployments.

You are excited about what you saw in the video clips as your company was the first in the country to introduce self-checkout kiosks and is currently looking to introduce further innovations in your supermarket stores. The innovation the company wants to introduce is RFID technology, as the company is interested in minimising the waiting time at checkouts. The company realised that this needs significant innovation in the supermarket physical locations, training for people, re-orienting the entire inventory with RFID tags, and assuring high quality service at checkouts. Current RFID rollouts in supermarkets show benefits such as reduced wait times and improved inventory visibility, but they also require careful change management and customer education to address privacy and usability concerns.

To accomplish this vision, you are required to research the background for a project to automate checkout procedures using RFID tags, use Microsoft Excel to model a business plan, perform sensitivity analysis to validate assumptions, and create a PowerPoint presentation to seek funding and authorisation from senior management to undertake a pilot project in RFID checkout automation. Industry cases now often combine RFID business cases with broader store automation trends such as AI-enabled loss prevention and smart shelves, which you can reference selectively to strengthen your strategic argument.

NOTE: If you are unfamiliar with the business case and sensitivity analysis concepts you should make an effort to read appropriate material, including those from the Internet, to learn about them. You should also have read the note provided in the file MIS Project 4 – Capital Budgeting Methods for Information System Investments found in the StudyDesk to understand the various financial methods for evaluating capital investment projects. Many RFID ROI tools and calculators in retail explicitly rely on discounted cash flow methods such as NPV, IRR and payback, making these concepts directly applicable to your supermarket pilot.

Before you commence this assignment ensure you have completed Hands-on MIS Projects 1 to 5 in Appendix S.1 in the Study Book. These exercises are designed to familiarise you with the software, techniques and methods used in the assignment. Practising these projects first will make it much easier to design formulas, charts and scenario analyses in Excel for the RFID case.

Part 1–3: RFID background, Excel model and sensitivity analysis

Part 1: Research the background for the supermarket checkout automation project
Conduct an Internet search to gather relevant background information on RFID tags and how they are utilised in supermarket contexts, the long-term effects of these tags, and the advantages and disadvantages of using them. Recent articles on RFID in retail emphasise benefits such as faster checkouts, lower labour costs and improved stock accuracy, alongside challenges including upfront infrastructure cost, tag expense, data integration complexity and consumer concerns about tracking beyond the store.

Part 2: Develop the Excel model of the business case
Once you have completed Part 1, develop a spreadsheet model of your business costs. Assume a discount rate of 10 percent. Your business model should include analysis of payback period, net present value, internal rate of return, and profitability index. Contemporary RFID investment analyses in retail typically include these metrics and often model multi-year cash flows that reflect phased rollouts, training costs, maintenance contracts and quantified benefits.

HINTS: To obtain the payback period you need to calculate cumulative net cash flow. Use the NPV and IRR functions in Microsoft Excel and interpret your results clearly, including whether the NPV is positive, how the IRR compares to the hurdle rate, how long the payback takes, and what the profitability index suggests.

Part 3: Perform a sensitivity analysis for the business case
Using the results from Part 2 as the base case, conduct a sensitivity analysis to examine the impact of critical cost and benefit variables on the viability of the RFID project. Provide three scenarios and analyse how changes affect financial outcomes. Make recommendations to senior management on how risks can be managed to ensure long-term project sustainability.

Part 4: PowerPoint for executives

Part 4: Create a PowerPoint presentation to senior management
Consolidate and cross-analyse your results from Parts 1, 2 and 3. Prepare a PowerPoint presentation of no more than 10 slides to seek financial support and authorisation. Structure the presentation with an introduction, body, conclusion and lessons learned. Effective executive decks typically use a clear narrative, minimal text and strong visuals to support decision making.

The final slide should include a list of references using Harvard referencing. Insert Excel tables, charts and appropriate graphics. In a separate PDF document, provide a narrative for each slide explaining its content and purpose, written as if presenting directly to senior management.

A high-quality response would define RFID technology and explain how item-level tagging enables faster checkout, improved inventory accuracy and reduced shrinkage, while acknowledging cost and privacy concerns. It would present a clear Excel-based business case calculating NPV, IRR, payback and profitability index at a 10 percent discount rate, supported by realistic assumptions. Sensitivity analysis would show how changes in key variables affect viability. Finally, the findings would be translated into a concise PowerPoint presentation aligned with strategic goals such as customer experience improvement and competitive differentiation.

References

Agilence Inc. (2026) ‘How Leading Retailers Are Using RFID for Inventory and Loss Prevention’, Agilence Blog, 11 January.

Teamwork Commerce (2023) ‘RFID Powered Self-Checkout’, Teamwork Commerce, 24 April.

Vitag (2023) ‘RFID – Global Retailers Show How It’s Done’, Vitag Blog, 24 May.

RFID Journal (2019) ‘ROI Calculator: RFID in Retail’, RFID Journal.

Avahi (2025) ‘Are AI Checkout Systems for Retail the Future of In-Store Shopping?’, Avahi Blog, 16 September.

 

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Implementing RFID Technology in Supermarkets: A Comprehensive Guide to Automation, Business Modeling, and Strategic Presentation for CIS8000 Assignment 2

Implementing RFID technology enhances supermarket checkout efficiency by reducing wait times and improving inventory management in modern retail environments through innovative automation strategies.

Learning Objectives

This assignment specifically addresses the following learning objectives of the course:

LO5 Demonstrate effective communication by composing writing that communicates ideas, meaning and/or argument in a format that broadly follows conventions in the information systems field.

LO6 Apply technology and online skills to locate relevant information for the assignments, analyse the presented problems and data, and engage in the use of the resources provided on UConnect.

Recent advancements in RFID systems have shown up to 30% reduction in checkout times according to 2025 industry reports.

Individual Submission

Students should complete this assignment individually. It is acceptable to discuss the assignment with others to improve your understanding and clarify requirements but you should write up the solution to the assignment on your own.

Collaboration tools like online forums can further enhance learning while maintaining individual accountability.

Activity A: Journal (maximum 500 words)

Prepare a journal which records your activities and progress related to completing this assignment. In date order, clearly list the following:

  • Date of research activity/discussion
  • Topic researched or discussed
  • Time duration
  • Brief description of research activity/discussion.

Submit this journal as a separate report. A sample of the journal will be provided in the StudyDesk.

In 2026, incorporating real-time data from current RFID implementations can make your journal entries more relevant and insightful.

Activity B: Presentation to Senior Management

You are the CIO of a successful supermarket/grocery store chain in the country. You recently attended a technology update seminar on supermarket automation.

During the seminar the organiser showed two video clips to illustrate how supermarkets would operate in the future. You can find these video clips using the following URLs in YouTube:

  • Future Store Tönisvorst http://www.youtube.com/watch?v=eefUwLHLGWo
  • That´s how we will shop within a couple of years! http://www.youtube.com/watch?v=sDyqhcy1L-0

Modern updates to these concepts include AI-integrated systems that complement RFID for even faster processing.

You are excited about what you saw in the video clips as your company was the first in the country to introduce self-checkout kiosks and is currently looking to introducing further innovations in your supermarket stores. The innovation the company wants to introduce is RFID technology, as the company is interested in minimising the waiting time at checkouts.

The company realised that this needs significant innovation in the supermarket physical locations, training for people, re-orienting the entire inventory with RFID tags, and assuring high quality service at checkouts.

To accomplish this vision, you are required to research the background for a project to automate checkout procedures using RFID tags, use Microsoft Excel to model a business plan, perform sensitivity analysis to validate assumptions, and create a PowerPoint presentation to seek funding and authorisation from senior management to undertake a pilot project in RFID checkout automation.

NOTE: If you are unfamiliar with the business case and sensitivity analysis concepts you should make an effort to read appropriate material, including those from the Internet, to learn about them. You should also have read the note provided in the file: MIS Project #4 – Capital Budgeting Methods for Information System Investments (provided by the publisher of the Laudon & Laudon 12ed. textbook) that is found in the StudyDesk to understand the various financial methods for evaluating capital investment projects.

Before you commence this assignment ensure you have completed Hands-on MIS Project # 1 to 5 in Appendix S.1 in the Study Book. These exercises are designed to familiarise you with the software, techniques and methods used in the assignment.

Updated Excel templates from 2024 can help streamline your financial modeling process effectively.

Part 1: Research the background for the supermarket checkout automation project

Conduct an Internet search to gather relevant background information of RFID tags, and how they are utilised in supermarket contexts, the long term effect of these tags, advantages and disadvantages of using these tags.

Recent studies from 2025 highlight improved supply chain visibility as a key long-term benefit.

Part 2: Develop the Excel model of the business case

Once you have completed Part 1, develop a spreadsheet model of your business costs. Some of the materials provided in the MIS Projects may help you to come up with a simple modelling.

For the purpose of modelling, assume a discount rate of 10 percent. Your business model should include the following analysis to ascertain the financial viability of the project:

  • Payback period
  • Net present value (NPV)
  • Internal rate of return (IRR), and
  • Profitability index

HINTS: To obtain the payback period you would first need to calculate the cumulative net cash flow. Use the NPV and IRR functions provided in Microsoft Excel.

Interpret your results. Use the note in MIS Project #4 – Capital Budgeting Methods for Information System Investments to guide you.

Incorporating inflation adjustments based on 2026 economic forecasts can refine your NPV calculations further.

Part 3: Perform a sensitivity analysis for the business case

Using the results you obtained in Part 2 as the base case, conduct a sensitivity analysis to examine the impact of the critical cost and benefit variables on the viability of the RFID project. Provide three specific scenarios of consideration.

Carefully analyse your results and make appropriate recommendations to the company’s senior management as to how the critical cost variables should be managed to ensure that the RFID project is both viable and sustainable in the long term.

Scenario planning with current data on RFID tag costs dropping 15% annually can strengthen your analysis.

Part 4: Create a PowerPoint presentation to senior management

4.1 Consolidate and cross-analyse your results and findings from Part 1, 2 and 3. Then prepare a PowerPoint presentation to the company’s senior management to seek their financial support and authorisation to embark on the project.

Your PowerPoint presentation should comprise no more than 10 slides, should be developed and structured according to the following guidelines.

  • The presentation should be made up of :
    1. An introduction: your FIRST slide should show the title of your presentation and details of the author(s); the SECOND slide should provide the agenda i.e. outline of your presentation; the THIRD slide should clearly state the purpose of your presentation and what you want to achieve from it.
    2. A body: contains the results and findings from Part 1, 2 and 3.
    3. A conclusion: recaps the main points and summarises your recommendations.
    4. Lessons learned: Two slides highlighting lessons learned from conducting this project.
  • The LAST slide should contain a “List of references”. There should be at least 8 references (including those from Internet sources) and they should be listed according to the Harvard referencing convention as described in Chapter 2 (referencing) of the Communication Skills Handbook 3ed.
  • Insert Excel tables and charts and suitable graphics at appropriate places in your presentation to reinforce your argument.
  • In a separate document (pdf file), provide a narrative for EACH slide (e.g. SLIDE #1 …., SLIDE #2 …) to allow the marker to understand its content and context, and follow the flow and logic in your argument. You could style the narrative as though you are making an actual presentation to senior management.
  • Search the Internet for information and guidance on how to produce an effective PowerPoint presentation, including the slide design and layout.
  • Ensure that your PowerPoint file does not exceed the specified size indicated in EASE otherwise you would not be able to upload your work.

Utilizing high-quality visuals from 2026 RFID case studies can make your presentation more compelling to stakeholders.

For example, in Part 1, research might reveal that RFID tags reduce inventory errors by 75%, as seen in recent Walmart implementations. In the Excel model for Part 2, a sample payback period could calculate to 2.5 years with initial costs of $500,000 and annual savings of $250,000. Sensitivity analysis in Part 3 might show that a 20% increase in tag costs delays viability, recommending bulk purchasing strategies. Overall, this project demonstrates how RFID drives operational excellence in retail.

Suggested References

  • Jie, N.M. and Kamsin, A. (2021) ‘Self-Checkout Service with RFID Technology in Supermarket’, Advances in Economics, Business and Management Research, 190, pp. 506-511. doi:10.2991/aebmr.k.210913.062. Available at: https://www.atlantis-press.com/proceedings/iciic-21/125960797 (Accessed: 14 January 2026).
  • Kozłowski, E., Kowalska, S. and Szyller, N. (2024) ‘Digital Transformation of Grocery In-Store Shopping-Scanners, Artificial Intelligence, Augmented Reality and Beyond: A Review’, Foods, 13(18), p. 2948. doi:10.3390/foods13182948. Available at: https://www.mdpi.com/2304-8158/13/18/2948 (Accessed: 14 January 2026).
  • Memon, A.A. (2024) ‘Revolutionizing Supermarket Checkout: A Comprehensive Review of RFID-Enabled Shopping Carts for Automatic Payments and Real-Time Inventory Tracking’, COJ Technical & Scientific Research, 9(5). Available at: https://crimsonpublishers.com/cojts/pdf/COJTS.000605.pdf (Accessed: 14 January 2026).
  • Thakur, R. (2023) ‘A Survey on RFID Based Smart Shopping System and Automated Billing’, International Journal of Engineering Research & Technology, 12(4), pp. 567-572. Available at: https://www.academia.edu/102938198/A_Survey_on_RFID_Based_Smart_Shopping_System_and_Automated_Billing (Accessed: 14 January 2026).

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