BUS4002-Walmart's MIS and Data Strategy in Retail Industry

Introduction - How Walmart Uses MIS for Operations and Growth

MIS refers to the use of information technology and systems to manage and organize data, support decision-making processes, and improve business operations. The report is highlighting the key factors of the management information system, considering the case company Walmart. Walmart is a multinational retail corporation that operates a chain of discount department stores, grocery stores, and hypermarkets. The company was founded in 1962 by Sam Walton and has grown to become one of the largest retailers in the world, with more than 11,000 stores in 27 countries (Walmart Inc., 2023).

Management Information Systems (MIS) play a crucial role in Walmart's operations. Walmart uses MIS to collect and analyze vast amounts of data about its customers, products, and operations, which help the company make informed decisions and improve its performance. Walmart's MIS includes a range of systems and technologies, such as point-of-sale (POS) systems, inventory management systems, supply chain management systems, and customer relationship management (CRM) systems. These systems enable Walmart to track sales, monitor inventory levels, manage logistics and supply chain operations, and analyze customer data to improve marketing and sales efforts.

Question 1

A multinational retail corporation, Walmart has a hierarchical organizational structure. The Board of Directors is at the top of Walmart's organizational structure, followed by the CEO and other senior executives who manage the business. The business is divided into several divisions, including Sam's Club, Walmart International, and Walmart United States.

Figure 1: Walmart in the US

The retail stores, e-commerce division, and several subsidiaries make up Walmart's business units. Under 56 distinct banners, the corporation runs more than 11,000 stores in 27 different countries. Supply network: Walmart has a sizable supply chain that consists of more than 100 distribution facilities, a fleet of trucks, and other assets that enable it to carry goods from suppliers to its shops quickly and effectively. Walmart has a public business legal structure, and its stock is traded on the New York Stock Exchange. It works on a set of bylaws and corporate governance principles and was incorporated in the state of Delaware.

Walmart’s business structure is composed of three main business units: Walmart U.S., Walmart International, and Sam's Club (Ellickson, 2016). These units are interconnected in several ways to support Walmart's overarching mission of saving people money so they can live better.

Shared technology and systems

Walmart's business divisions are connected through shared technology and systems as one of the ways. Walmart International and Walmart U.S. share technologies, including the business's in-house data analytics and inventory management programs. This enables both groups to enhance their supply chains and optimize their operations, which can result in cost savings and improved productivity (Fortune, 2020).

Sam's Club utilizes Walmart's technological infrastructure to handle inventory, logistics, and other facets of its operation, so it also benefits from the company's common technology and systems. Sam's Club tracks and analyses customer data using Walmart's technologies as well, which enables it to better understand its members and provide more specialized shopping experiences.

Shared suppliers and distributors

The divisions of Walmart are related via shared distributors and suppliers. The corporation receives the goods it offers in its stores through a huge network of suppliers and distributors. Shared suppliers and distributors enable Walmart U.S. and Walmart International to take advantage of the company's purchasing power and secure lower rates. Profits may rise and costs fall as a result (Tan, et.al 2018).

Sam's Club gains from Walmart's shared suppliers and distributors since it can provide its members with a variety of goods at affordable costs. In addition, Sam's Club has access to special wholesalers and suppliers that Walmart U.S. and Walmart International do not, which can assist in distinguishing its products and draw in new customers.

Shared best practices

Shared best practices connect the different divisions of Walmart. Walmart has a continuous improvement philosophy and is constantly searching for ways to streamline its processes. The organization shares best practices throughout its several business divisions, allowing each one to benefit from the experiences of the others and enhance its operations.

For instance, Walmart U.S. can create a brand-new inventory management procedure that boosts effectiveness and lowers prices. Sam's Club and Walmart International can then be made aware of this procedure, allowing them to take advantage of the invention. Similarly to this, Walmart International may create a fresh plan for breaking into a new market that can be shared with Walmart U.S. and Sam's Club to aid in their business expansion.

Shared supply chain and logistics

A single supply chain and logistics network link Walmart's business divisions together. The business's highly developed logistics and supply chain network enable it to deliver goods from suppliers to retailers quickly and effectively (Hackius and Petersen, 2017). This shared supply chain and logistics system between Walmart U.S. and Walmart International enables both businesses to easily ship goods around the globe.

Sam's Club also gains from Walmart's logistics and supply chain network since it uses the company's size and know-how to benefit its members. Sam's Club transports goods from suppliers to its warehouses and stores using Walmart's supply chain and logistics network, enabling them to provide a broad selection of goods at affordable costs.

These interconnections allow Walmart to optimize its operations, reduce costs, and improve the customer experience.

Organizational flow chart of Walmart's business structure

The Chief Executive Officer (CEO), who is in charge of the overall management and direction of the business, is at the top of the organizational hierarchy. The Chief Operational Officer (COO), Chief Financial Officer (CFO), Chief Information Officer (CIO), and the other top executives who are in charge of various parts of the business's operations work alongside the CEO to support the objectives.

The business units, which include Sam's Club, Walmart U.S., and Walmart International, are listed below the senior executives. The president and CEO of each business unit answer directly to the company's top executives.

There are numerous departments, such as merchandising, marketing, supply chain, and operations, which fall under each business unit and are in charge of different facets of the company. Vice Presidents in charge of these divisions answer to the President and CEO of the business unit.

Each department has teams that are in charge of carrying out particular activities and projects. These teams may include managers, supervisors, and individual contributors.

The organizational structure of Walmart is intended to establish a distinct chain of command, encourage good communication, and foster collaboration across various departments and business units. This organizational structure enables the business to streamline operations and make strategic choices that support its overarching mission and objectives.

Question 2

To fully answer the question, a detailed description of the proposed solution is needed, providing the advantages and disadvantages of the system in response to Amazon's strategy."

Walmart is a large retail company that deals with a vast amount of data every day. The data can come in various forms, including:

• Transactional data: This is data generated by customer purchases made at Walmart stores, both online and offline. It includes information such as the products purchased, the date and time of purchase, and the amount spent.
• Operational data: This is data generated by the daily operations of Walmart, such as inventory levels, sales trends, and employee performance.
• Customer data: This is data that is collected directly from customers through various channels, such as online surveys, loyalty programs, and social media.
• External data: This is data that comes from external sources, such as market research, weather forecasts, and economic indicators.

For Walmart, organizing and analyzing these many types of data depends heavily on data warehousing (LeCavalier, 2016). A data warehouse is a central location where data from many sources is kept in an organized style that is best for reporting and analysis.

Walmart's data warehouse is used to store and combine data from many sources: Walmart gathers information from a variety of sources, including customer, operational, and transactional data. This data is combined into a single, unified picture by the data warehouse, making it simpler for analysts to access and process. Provide a thorough overview of the company: The data warehouse offers a thorough view of the business, including sales patterns, inventory levels, and consumer behavior, by combining data from numerous sources. Facilitate decision-making: From top-level strategic decisions to day-to-day operational decisions, Walmart employs data warehousing to support decision-making at all levels of the business. The data warehouse assists Walmart in making wise decisions that foster business success by supplying fast and reliable information. Enhance operational effectiveness: Walmart can locate areas where it may increase effectiveness and cut expenses by examining operational data kept in the data warehouse.

Information System Processes:

Walmart is a large and complicated company with a variety of information systems, such as:

• Point-of-sale systems: In Walmart stores, both online and offline, these systems are utilized to record transactional data.
• Systems used to manage the supply chain, including logistics and inventory control, for Walmart are known as supply chain management systems.
• Systems for managing consumer relationships and interactions, including social media and loyalty programs, are known as customer relationship management (CRM) systems.
• Systems for managing many parts of Walmart's operations, such as finances, human resources, and procurement, are known as enterprise resource planning systems.

Walmart has also made significant investments in big data solutions (Grover, et.al 2018). Over the past few years, to take advantage of the potential of data analytics and spurred corporate expansion, Walmart has used or is experimenting with several big data solutions, including:

• Hadoop: It is an open-source big data technology that enables the processing of massive volumes of data across distributed clusters. Walmart was one of its early users.
• Data lakes: Walmart has put in place a data lake architecture that enables the corporation to manage and store enormous amounts of unprocessed data, allowing for quick and flexible analysis.
• Artificial intelligence and machine learning: Walmart uses these technologies to evaluate customer data and give customers individualized recommendations.
• Internet of Things: To enhance supply chain management, Walmart is experimenting with the Internet of Things (IoT), utilizing sensors and other devices to monitor inventory levels and improve logistics.

To increase its use of data analytics, the business might consider implementing the following big data solutions:

• Analyzing data in real time would enable Walmart to make decisions more quickly and take more rapid action. The corporation may look into real-time data analytics solutions.
• Analytics that forecast future trends and behaviors using machine learning and other methods are available, and Walmart may decide to invest in them so that it can proactively plan and modify its business plans.
• Data management in the cloud: Walmart should think about moving some of its data management to the cloud so that it can benefit from the scalability and flexibility of cloud computing.
• Improved data visualization: Walmart might spend money on technologies that let it show data in a more comprehensible and useful way, making it simpler for decision-makers to comprehend and take action on insights (Wang, 2022).

Walmart can stay ahead of the competition and keep enhancing its operations and customer experience by continuing to invest in current technology and looking into new solutions.

Ideas in response to Amazon data strategy

Walmart, as an Amazon rival, needs to take into account the following ideas in response to Amazon's data strategy:

• Develop a reliable cloud computing platform: Amazon uses Amazon Web Services (AWS), a solid cloud computing platform, for their own business as well as providing it as a service to other companies. To better manage and analyze the enormous amounts of data it generates and to make it available as a service to other companies, Walmart might think about creating its cloud computing platform.
• Invest in artificial intelligence and machine learning: Amazon has been utilizing these technologies to enhance its advertising, search results, and product suggestions. Walmart could also make investments in artificial intelligence and machine learning to enhance its advertising, search results, and product recommendations.
• Use the information generated by actual stores: Walmart has a sizable network of physical stores that produce a tonne of data. Walmart can use this information to enhance inventory control, better understand consumer behavior, and enhance the shopping experience. This can entail using sensors and other technologies to gather and evaluate information from real-world stores.
• Create a stronger online presence: To compete with Amazon, which now enjoys a dominant online presence, Walmart should invest in a stronger online presence. This can entail making improvements to its website, increasing the number of online products it offers, and spending money on online advertising.
• Enhance data security and privacy: As the value of data in business grows, these issues are now of utmost importance. Walmart should put a high priority on data security and privacy to protect customer data from unwanted access or breaches.

Walmart should put its efforts into capitalizing on its advantages, such as its extensive network of physical stores, and make investments in technology and tactics that will help it better compete with Amazon's data approach (Bové and Swartz, 2016). Walmart can maintain its competitiveness in the retail industry and expand its business by doing this.

Question 3

Handling and protecting personal information has become increasingly important in the current digital age. The Walmart Ethics and Compliance program and the EU's General Data Protection Regulation (GDPR) are two examples of the measures taken to ensure that information is handled ethically and legally. However, despite the implementation of these programs, there is still significant ethical, legal, and professional implication connected with information handling and security (Razavisousan and Joshi, 2021). One of the key concerns with data handling and security is the risk of data breaches. Data breaches can occur due to human error, system malfunctions, or malicious attacks. These breaches can result in significant consequences for both individuals and organizations. For example, in the case of Walmart, data breaches could lead to loss of customer trust, negative publicity, and financial losses due to potential legal action. The GDPR also has strict requirements regarding data breaches and mandates that organizations report any breaches to regulatory authorities within 72 hours of becoming aware of them.

Another significant concern is the potential misuse of personal data by organizations. The GDPR requires that organizations obtain explicit consent from individuals previous to collecting and using their data. However, even with consent, in attendance is a threat that personal data may be distorted by organizations for purposes beyond what was originally agreed upon. This could include using personal data for targeted advertising or selling personal data to third-party companies. The misuse of personal data can erode trust between individuals and organizations and result in significant legal and financial consequences.

Ensuring the security of personal data is also critical for ethical and legal compliance. The GDPR requires that organizations execute suitable technical and managerial actions to ensure the security of personal data. This includes implementing access controls, encryption, and data backup measures. Failure to implement appropriate security measures could result in significant legal and financial consequences for organizations, as well as damage to their reputation.

Another concern with information handling and security is the potential for discrimination. Personal data can be used to discriminate against individuals based on their race, gender, age, or other personal characteristics. The GDPR mandates that organizations ensure that personal data is processed in a manner that respects individuals' fundamental rights and freedoms, including the right to equality and non-discrimination. Organizations must also ensure that personal data is not used to make automated decisions that could have a significant impact on individuals.

The use of artificial intelligence (AI) and machine learning (ML) can also pose ethical and legal challenges in information handling and security (Mounika, et.al, 2021). AI and ML algorithms can analyze large amounts of personal data to make predictions about individuals' behavior, preferences, and characteristics. However, these predictions may not always be accurate and could result in discriminatory outcomes. The GDPR mandates that individuals have the right to object to automated decision-making and the right to human review of such decisions. Finally, the ethical implications of information handling and security must be considered. Individuals have the right to privacy and the right to control their private data. Organizations must make certain that private data is processed in an obvious and fair manner and that those individuals are learned about the collection and use of their data. The use of personal data for purposes beyond what was originally agreed upon can erode trust between persons and organizations and result in significant ethical concerns.

Critical issues for the organization

Information handling and security are critical issues for any organization, including Walmart. As one of the largest retailers in the world, Walmart handles vast amounts of sensitive data, such as the personal information of its customers, financial information, and confidential business data. Therefore, any lapses in information handling and security can have serious ethical implications (Antes, et.al 2016). Here are some of the key ethical implications associated with information handling and security at Walmart:

• Privacy of Customers: Walmart has access to a vast amount of personal information of its customers, such as their s, addresses, phone numbers, and purchase histories. It is essential for Walmart to maintain the privacy of this information, and ensure that it is only used for legitimate business purposes. Any misuse or unauthorized disclosure of this information can violate the privacy of the customers and can lead to loss of trust and reputation damage for Walmart.
• Cybersecurity Threats: Walmart faces constant threats from cybercriminals who may attempt to breach their network security and steal valuable data. Walmart has a responsibility to protect the sensitive data it holds, and any failure to do so can have serious ethical implications. For example, a data breach can result in the theft of personal and financial information of customers, and can also lead to identity theft and financial losses.
• Transparency and Accountability: Walmart has a responsibility to be transparent in its data handling practices and be accountable for any data breaches or lapses in security. Walmart must communicate clearly with its customers about how their data is being used and ensure that they are aware of any potential risks to their privacy or security. Walmart must also be accountable for any data breaches and take responsibility for any losses or harm that customers may suffer as a result (Neebe, 2020).
• Fairness and Non-Discrimination: Walmart must ensure that its data handling practices do not discriminate against any individual or group of individuals. For example, Walmart should not use data analytics to discriminate against certain customers based on their race, gender, age, or other protected characteristics. Walmart must also ensure that it does not engage in unethical practices such as price discrimination or artificially manipulating product availability based on customer data.

Conclusion

Walmart has a long history of using technology and information systems to improve its operations and remain competitive in the retail industry. The company's MIS initiatives have helped it collect and analyze vast amounts of data, optimize inventory levels, and improve supply chain operations. With its continued investment in technology and information systems, Walmart is likely to remain a leader in the retail industry for years to come. In conclusion, information handling and security pose significant ethical, legal, and professional implications. The risk of data breaches, the potential misuse of personal data, discrimination, the use of AI and ML, and the ethical implications of information handling and security must all be considered. Organizations must implement appropriate measures to ensure the security of personal data, comply with legal requirements, and respect individuals' fundamental rights and freedoms. Failure to do so can result in significant legal and financial consequences, as well as damage to an organization's reputation.

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