UUIS8000 - Global Information Systems Strategy Assignment - UUNZ Institute of Business, New Zealand

Course Objective -

1: Demonstrate knowledge and skills in information systems applications across global contexts and apply these to organisational systems and processes.

2: Solve problems associated with information systems both theoretically and practically, and critically reflect on their effectiveness on management processes.

3: Communicate professionally and effectively in written and oral communication to various audiences.

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Task - Report to CEO

Executive summary

In this report, we have included all the analysis of the chosen company i.e. Walmart and its business strategies. In the report, we have included all type of analysis of the company like business strategies analysis, IT service analyses and many more aspects are covered. As we know Walmart official website has all its products and service details which they are providing to their customer, so we have covered all these prospective. In part A, we have written a journal for the steps which we have covered while writing this report like the sites which has been used and other details I have mentioned in the journal. Then in Part B, we have covered all the strength and weakness in the information system of the company. To analyze the company's current IT services we have check all its services available online and analyze. In this report, we have big data concept for analyzing these services. At last the report covers the aspect of big data in Walmart IT services and its benefits.

Part 1: Introduction: background of selected organisation - Describe the background of the selected organisation in terms of the following: the industry, it operates within, its key products/ services, corporate mission, corporate structure, major business processes, business strategy and relationship with external entities e.g. other organisations, government etc.

Part 1: Introduction:

For this report, we have chosen Wal-Mart Inc. as our subject discussion. It is formally known as Wal-Mart Stores, Inc. and it has the largest retailer supply chain in the whole world. It has millions of employees throughout the world and the overall highest number of employees in the retail business. It is founded by the Sam Walton in 1962 in Arkansas. The company has achieved its current position in the world by effective human resource management and sound financial strategies. The corporate mission of Wal-Mart Inc. is "to save people money so they can live better". All the strategic decisions of the company are based on this mission statement. They provide the product and service at the lowest price in the market rate. Wal-Mart Inc. marketing strategy and 4P (product, price, place, and promotion) revolves around providing the lowest possible price to its consumer and they use this strategy to be ahead in the competition in the market.

Its total revenue is around 500 billion US dollars according to the Fortune Global 500 list in 2018 and it also has the largest private employer (2.2 million employees) in the world. Wal-Mart Inc. is controlled by the Walton family as Sam Walton owns more than 50 percent shares of Wal-Mart through the Walton Enterprises and individual holdings. Wal-Mart Inc. is the largest grocery retailer in The United States of America in 2019 and more than sixty-five percent of its revenue comes from the USA. Wal-Mart Inc. has joined the New York Stock Exchange in 1972 and became the largest company by the revenue in 1989. (Anon, Save Money. Live Better. Walmart.com)

Wal-Mart's IT system is based on CRM. The CRM software is able to do analysis and save the data related to its customers. It also works as a customer relationship building tool. The company uses this software to analyze customer behavior and improve its service. Their main goal to use this CRM software is to make sure the customer thinks that he is getting the product at the lowest price in the market. CRM works according to the feedback data given by the customer and accesses their satisfaction level.

The distribution part is also done by Wal-Mart itself. To make their supply chain more effective they depend upon the IT. They have the dual responsibility of providing the product as well as supplying the product. It has used the IT to remove the redundant cost involved in the supply chain so that it can provide the goods and services to the customer to the lowest price in the market. They change their strategy to mass production of the goods to mass customization and IT systems such as EDI (Electronic Data Interchange). (Anon, Examining the Technologys Of Walmart Management Information Technology Essay) Using the EDI system helps Wal-Mart Inc. to reduce the extra cost as cost related to the printing, paper, storage, reproduction, filing, postage and document retrieval cost is eliminated or reduced. It is estimated that switching to the EDI system can lower the transaction cost by thirty-five percent.

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Part 2: IT infrastructure and emerging technologies - Management issues- Describe the organisation's current IT infrastructure. Identify the issues and challenges that the organisation faces in the management of its IT Infrastructure. Reflect critically on the issues an challenges in managing the IT infrastructure with emerging technologies.

Part 2: IT infrastructure and emerging technologies - Management issues

Current IT infrastructure of the Wal-Mart Inc.:

Wal-Mart Inc. has a very powerful IT infrastructure to manage all of its operations in approximately nine thousand stores worldwide. Wal-Mart Inc. has introduced an information system in the early phase of its business in the area of the customer relationship, supply management, and stock management. Wal-Mart Inc. has three times total revenue than his nearest competitor. It has a very effective information system in the world that makes it possible to become the biggest retailer company in the world. His information system helps him to control and manage his stocks at warehouses, stores, and supplies. It is using mainly three IT tools in its operations, CRM (Customer Relationship Management), EDI (Electronic Data Exchange) and RFID (Radio Frequency Identification). Wal-Mart is very dedicated to achieve its strategic goal, which is to provide the product and services at the lowest price to the consumer, so it need to find a more effective information system at its supply chain. To provide the lowest price in the market they need to do the extra cost cutting by removing the wastage and for that they need a effective information system. To do the cost cutting they have switch to the more advanced and automated system to lower their expenditure on the human labor. (Ferguson, E., 2019. Walmart's Mission Statement & Vision Statement, Generic & Intensive Strategies. Panmore Institute).Wal-Mart has approximately nine thousand stores globally and its total turnover is nearly three times greater than its nearest competitor. It has very wide business so it has the challenge to control its vast network of warehouses and shops. It want to provide the best quality product in minimum possible price.

Wal-Mart has applied the 'hub and spoke' concept in its supply chain system. Hub denotes the various distribution center of the Wal-Mart, which are the different warehouses of the Wal-Mart at different locations across the country. Spoke denotes the different branches or shops where products are kept for selling purposes. They have applied this hub and spoke system in every part of the world where its operation is commencing. It is a very effective system as products can be stock up according to the need of stores. This system gave him the extra edge in the market against his competition. This hub and spoke system.

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Challenges faced by the Wal-Mart Inc. in managing the IT infrastructure:

Wal-Mart has customized its information system according to its needs and gradually develops it to perfection. It has adopted and designs its information system to minimize the price of the product. It has adopted the bar code scanning system to do the analysis of point of sale information. We can say that Wal-Mart is the pioneer in using the bar code scanning system; it has applied this system to all of its warehouses in all across the globe. (Anon, 2018. 6 Challenges to the Future of IT Infrastructure). Wal-Mart has launched its own satellite system in 1985, which helps it excessively in managing and streamlining its supply chain network. Another information system such as Retail-Link helps Wal-Mart to integrate and share the data among its suppliers.

But as in every case of try and run, Wal-Mart also has to face some challenges regarding some of its pioneering information systems such as RFID (Radio Frequency Identification). This technology cannot surpass the current bar code system effectively as bar code the system has adopted by all the suppliers globally. Wal-Mart has tried to invoke the system but many of its suppliers refuse to adopt this system as it demands time and money to set up and another customer of the supplier does not use this system as it was new in the market. This experiment of Wal-Mart does not successful and it has to incur huge loss but this failure does not demotivate Wal-Mart to adopt new technology and information system to increase the effectiveness in its product and service, this is why it is leading the retail sector in the whole world.

Wal-Mart has a clear strategy to counter its competitor in the market to gain a technical edge by adopting an innovative and customized information system. It has the philosophy to build the information system according to its needs rather than buy or adopt a technology that is in the market. To beat the competitor like Amazon and Target Wal-Mart has shifted its strategy towards the digitization of its product and service and enters in the e-commerce and e-mail marketing. Wal-Mart traditionally known for developing the build in house strategic system and it helps the company to gain an advantage in the market as it was successful in its goal to provide the goods at the lowest price in the market. At a global scale, it uses the modified version of IBM's point of sale for the supermarket application for the checkout purpose.

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Wal-Mart strategy to adopt the emerging technology in the information system:

Wal-Mart has adopted the mobile application for providing the easy service but its first venture is not as successful as the upgraded one. In its first application the payment service called the scan and go is not helpful to the customer and they have to take it back. Then Wal-Mart has introduced new service which is more informative than the previous one able to solve the transaction related problem. It has maps and location of all the stores. Now consumer is able to see all details of the products available at any shop.

Now Wal-Mart has integrated the data of the purchase by the shoppers in the mobile application. This will give user access to the non-digital transaction facility. If the consumer wants to return any product then they simply select the barcode of the product and go to the shop and simply scan it and money will be transferred back into the account of the consumer immediately and customer will get the message of returning.

For stocking and restocking of the store and warehouses Wal-Mart has start using the robots and save the precious time of loading and unloading of the stocks. A robot is especially dedicated to the task of tagging the price level of the product, it also used for updating the price of the products.

Wal-Mart has improved its information system by the using RFID techniques to switch it from the barcode system. But this system is not very successful as many suppliers have refused to adopt this system. Because to adopt this system, old system of barcode has to remove completely and this will cost both money and time to the suppliers.

Challenges in managing the IT infrastructure with emerging technologies:

There are various challenges faced by the IT professional with emerging new technology. Organization need to ensure that they are updated their information system regularly in this fast changing environment. Here we will discuss some key challenges that organization has to face in managing their IT infrastructure.

Security:

Data availability is increasing at fast rate so the chances of compromising the data by the hackers and outside intruders. With the invention of technologies such as cloud computing, security of the data is a major concern and they need to keep on finding the loopholes and strengthen the security of their information system. They need to evolve a proactive set up which will give the recovery and backup solution of the data.

Data Acquisition:

Now a day's organization depends upon the resources which have very big set of data. This big set of data slows down the data speed due to resource and other antivirus applications and the computer architecture needs the speedy data acquisition methodology. IT professional should provide the high speed server who can match the advanced computing frameworks. It is the demand of today IT system to be flexible to access the range of application and solution to storage.

Virtualization:

Modern IT networking infrastructure needs the latest SDN (Software Defined Networking) which will make sure the flexible network as a virtual server. Adopting the virtualization technique will increase the security of the networking architecture. We can access the virtualization server from the virtualization host.

Data Analytics:

As the size of the data set increases there is a demand for new approach to process the data and integration tasks. To counter this problem organization are heavily investing into the Big Data to make the real time analytics. The information system of an organization must have the excellent data extraction and data storage solutions and this must be the criterion that an organization IT system must be evaluated.

Cloud Computing:

By setting the storage solution to the cloud computing based, organization has to face a different challenge as it needs an expertise to integrate the cloud infrastructure with existing IT system. Security is a major concern while doing the integration and it should not ensure the required storage solution quickly, it needed to be monitored constantly and resolve the hardware issues.

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Part 3: Big Data - background and recommended strategy - Search the Internet to find out about Big Data. Write a summary to the CEO and other senior managers in the organisation addressing the following: What Big Data is about - The potential of Big Data - How businesses are using Big Data -  Business opportunities and benefits from Big Data - Problems and drawbacks of Big Data - The future of Big Data and the next steps for taking advantage of Big Data.

Part 3: Big Data - background and recommended strategy

As the name suggest big data is also a data but of a huge size. This data set increases exponentially with the time. It could add up to terabyte or petabyte data in its data storage system in a single day. In such a short time period adding this large set of data will be very challenging for the data management tool to process this large pool of data. Other criterion that defines the big data is the velocity of the data. Extremely high speed data is challenging to store as it takes time to write to disk. There are some online smart products that work in real time and they require to be evaluated and take action in real time. Other attribute of the data that define the big data is the different variety of data present online. The earlier data types can be stored in the relational data base very easily and neatly. (Anon, Introduction to BIG DATA).But with the big data there is variety of data is coming, which is not a structured data type. This data set mainly consists of the audio files, video files and text data and they require additional measurement for processing and support metadata.

We can analyze the potential of big data by its average annual growth rate, which is approximately thirty percent and overall turnover will be approx. 118 billion US dollar by this year. Big data has potential to increase the revenues and effectiveness in the operation of the organization. Companies such as Wal-Mart which are working on a global scale, they have the customers which are very specific in what they need and this will accelerate the pace of business. This will force the organization to realize that only analyzing of the data is not sufficient but they also need to take a quick action. Now organization understand that if they collect all the data that comes into their organization, and apply the analytic tool to analyze the trend they get very significant value from it and management can take their decisions very effectively.

The main benefit of using the big data is to utilize the collected data effectively. The only concern of Wal-Mart should not be focused on collecting data but to analyze the collected data and use it in their management decision process. More the Wal-Mart analyzes the data efficiently more chances of it to grow and be ahead with its competitor. Major benefit to the Wal-Mart by using the big data is the cost saving as providing the commodities to the people in minimum possible price is there key strategy and business goal. (Anon, Realizing The Potential Of Big Data).Tools of the big data like cloud based analytic and Hadoop will help the company in cost saving as they are able to collect large set of data and can find out only necessary set of data to be analyzed. In-memory analytics and Hadoop will help the company in saving the precious time as they are able to analyze the new source of data quickly and give a quick outcome. Other benefit of using the big data is that Wal-Mart can understand the new trend in the market and design the product and launch the product according to the need and satisfaction level of the customer. Wal-Mart will able to understand the current marketing trend like the customer purchasing behavior. Which products are mostly bought by the customer? How much amount the user spends on the grocery in a week? What is the buying rate of a particular product by the customer? All answer to these questions will be given by the big data and help the Wal-Mart to gain an extra edge against his competitor as they are able to quickly provide the product and services according to the latest trend in the market. Big data will also helpful in analyzing the feedback given by the customer and improve its product and services. To do the effective digital marketing big data will help and help to build the brand image in the market.

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There is also some drawback of using the big data. When there is huge set of data, it is difficult to understand the main gist of the whole data using the big data. Data silos are other disadvantage of the big data. It is the kryptonite of the big data. They store all the necessary data company has collected and store it an individual units. (Manager, W., 5 Benefits: Competitive Advantages of Big Data in Business).Because of this the total gist of the data set cannot be drawn as the data set are not integrated at the backend. Sales team has to generate a monthly report because of this and the alignment between the marketing and sales team is not good. Inaccurate data is another problem as nearly seventy five percent of businesses which are using the big data have mentioned that the contact details of their customers are wrong.

With using the big data, possibilities of managing and utilizing the data set are endless. It will help the organization to grow its business intelligence in this fast moving and modern market. Wal-Mart will able to predict the market and better understand the trend in the market. To gain the monopoly in the market big data will be a huge help as it helps to introduce the new technology driven product and services which are never used by others before. Big data will also help in predicting the success percentage of innovative product and services introduced in the market. Big data can analyze the patterns in the data set and the anomalies happening with in the organization. Investing in big data can save lot of money to the organization because it will give us the quick and effective, analyze result of a big lump of data set which is not possible for any other analytical tool present in the market. (Akmanligil and Palvia, 2004).The insights gained by the analysis of the big data can be a game changer for the organization as it will play a key role in decision making ability of the management.

To make a data strategy, Wal-Mart have to first collect all the all the data sources. This step will provide the nature and complexity of the data set of the company and helps the management team in the decision making process. (Anon, Top 5 Problems with Big Data). It will also work as a guideline for the executive who will collect and manage the data life cycle and they can know about the key gaps in the data inventory and understand the data priority list which will be valuable for the company. This inventory of the data must reflect the business and technical conversation and also show the relationship between the domains of the data and the potential conflicts in their terms. This data inventory should reflect the applications where it is stored and maintained. (SearchCIO, 2019). This will help the Wal-Mart to understand the daily requirement of the data and what are the resources behind this data and what is the effort behind this data to sustain it in the daily operation? This inventory will help Wal-Mart to design a data strategy and guidelines for modernize the data set and guessing the source of the big data and what is the effort required for doing the analytics of the big data. It also improves the quality of the data inventory and the processing procedure of the data set. Wal-Mart can clearly found out the points of the data integration and the data quality monitoring for the process of the correction. We can use this to analyze and remove all the gaps and the redundancy in the activities of the data quality. Wal-Mart also have to think again the risks pertaining to collection of the data. What is the real value of this data set? Data set can help to improve the organization but they have some significant risks with them too, so company must be very careful when it is sharing , reporting, archiving, storing these data set as they may make the whole system more vulnerable.

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Conclusion:

In this report we have discussed the two main aspects of the Wal-Mart; first one is the information system of the Wal-Mart and second is effects of using the big data in the company. Information system is a great help in the service industry as make the process very easy and manageable. Wal-Mart is an IT driven company. From the establishment of the Wal-Mart, company is investing the information system to run its operation smoothly. It is the result of the effective information system that company is leading in the retail sector globally. It has not just acquired the information system technology from the market but makes a customized IT system for its own which is most suitable to manage its supply chain and point of sale service. Wal-Mart is also known as the pioneer in introducing the innovative information technology such as Radio Frequency Identification (RFID). It has to face the challenges as well in adopting this information system as some of its venture fails in the market. Its information system helps it to reduce the overall cost of its product and services. Then we have discussed the effects of using the big data in the Wal-Mart. With the help of the big data Wal-Mart can use its data more effectively and with a fast rate. With the help of the big data Wal-Mart will able to make its decision making process quick and effective. Big data will help Wal-Mart to understand the latest trend in the market because market is changing at a very fast rate and need of the customer is constantly changing. It will help the company in introducing the new product and services as it can do the market survey with the help of the big data. To provide the product and services in minimum possible price is the main motto of the Wal-Mart and big data will be a huge help to achieve this goal.

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