The IT department at Pothys consisted of centralized team for all stores. It took care of infrastructuremanagement with some software development; software updates and patches updates as and whennecessary. Also there was no fixed IT budget. Investment and expense discussions were taken uponcase basis and the planning was quite informal.Partly IT at Pothys is aligned with its business, but not completely.? The billing system across stores is automated and driven by IT system, The ALPOS softwarehas the feature of billing by scanning the barcode or by manually entering the SKU details inthe system.? The store manager can do the stock movement using stock verification software by providingunique authentications.? They have online selling facilities in their own portal as well as aggregator website likeamazon, flipkart etc.? They are using linux platform which is an open source, hence the security of the business is ina toss.? They have the integrated payment system to manage cash and credit card sales. It provides thetotal sales reports.? The current system is capable enough to generate various report based on the businessrequirement.But an integrated IT system will provide various aspects which will help Pothys to grow in thiscompetitive market when people are heading towards online marketing, augmented reality whileexperiencing virtual shopping. Below are incompatibilities of IT system in Pothys business? Their main suppliers are weavers and who actually produce the silk sarees for them. They donot have IT system to communicate to the weaver in an organised way based on the demand.? Using Business Intelligence and past data, Pothys can forecast the sales and procure themerchandise? Integrated customer relationship management (CRM) system which will help customer toprovide feedbacks, complaints, return of goods etc. Pothys could manage customer diligently.? Their current system is not capable enough to manage the different market segments like theyhave different warehouse for two separate business options in-store and online.? The current system is incompatible to handle logistics, tracking the inventory from suppliersto the warehouses. The inventory management process was not fully automated.? Lean activity in IT system actually helps the business to manage resource effectively resultingincrease in efficiency of the business. Current system doesn’t have that.? Supply chain management is crucial for any retail business, Pothys collect hand weave silksarees from more than 7000 weavers across several villages of Tamil Nadu. An effectiveSCM will optimize the delivery time from suppliers to warehouse and warehouse to store.Current IT system is inadequate.3? Since, they do not have integrated centralised IT system; customer cannot return the goodsacross various stores. S/he has to return to that particular store from where they brought.? Current online portal is not capable enough to host all of their merchandise, and forinternational sales they are relying on skype hang-outs which are not effective enough. Itwould have been facilitated by their online portal.2. Comment on the future growth prospect of Pothys and future alignment. What risk does oneneed to manage?In a market, the ?” Consumer is the King” who chooses the estimation of the item through theinstallment made for the item. All showcasing choices depend on suppositions and learning ofcustomer inclination. In the apparel, industry there is a need for maintained of large stock and the cashcycle tends to be long. The quantity of SKUs (Stock keeping units) will make it hard proportional upand consequently the speculation to increase on a vast scale. It does not parameterise the quality ofend-service or product limits the emergence of large players. An industry where the sales channelmakes it difficult to segment and target the right customer makes scaling up a difficult proposition.However, with the advent of the Information Technology, data mining has been made possible. Thishelps us to forecast the demand for goods and helps to move towards lean procurement. Leanprocurement can reduce the inventory, wastage of unsold goods and the cash cycle.Pothys has recently introduced apparel with its own private label. A good IT system can help themgenerate data of recent trends and sales, from which brand development can be done. In near futuredevelopment of International presence requires a large IT investment. This international presence alsohelps in development of their private label. Apart from private label, Pothys can also develop differentbrand store such Pothys Hyper-Market, for fashion apparel. In such situation, a good IT system couldhelp them to incorporate and manage all their divisions. In addition, many hypermarkets associatedwith apparel shop in location of Pothys, have introduced groceries and daily needs into their service.The online presence helps them to increase their sales and capture more customers.The apparel industry can many times require niche segments and personalized sales to increasecustomer volume. Such activities will require a good amount of IT system in place.The risk associated with IT is the increase in cost that has to be incorporated. The other apparel storesdo not have much IT system in place thus, implementing IT and outcome result of efficiency isunknown. The labor force has to be trained to operate with IT. This could decrease their productivity,as many are not accustomed with technology. It is also considered to be difficult to maintain andmonitor. IT risks include the consequences resulting from the misuse of technology or the use ofinappropriate technologies required to address business needs. If the staffs are unable to implement your risk management procedures, all of your efforts will be invain. There will be high chances of loss of confidentiality, loss of integrity, loss of availability.Misrepresentation, client question, chargebacks come in different shapes and structures, yet every oneof them are expensive, tedious and require steady consideration. Hazard introduction in a card-not-present condition is controlled by the built-up business approaches, operational practices, securitycontrols, extortion discovery and avoidance devices and the sorts of items and administrations sold.On the off chance that your business is to be effective in limiting extortion and chargebacks, yourwhole staff ought to obviously comprehend the dangers related with preparing web based businessexchanges.