Information Systems

 Information systems used  in Wal-Mart 

o Size of different information system(s): Departmental 

The Information Systems Department has around 3000 societies that work in the
David Glass Technology Center located in Bentonville, Arkansas. Wal-Mart’s IS Department is very hierarchal. It includes a Business Analyst, Senior Business Analyst, Manager, Senior Manager and levels below them.  The department of the information system is very structured and formal (D. Brazile, Personal Communication, November 2, 2011). It is so structured that they track the time spent on projects down to fifteen minute increments. Doing this keeps them on track for budget and productivity metrics. Rollin Ford is the Executive Vice President and Chief Information Officer of Wal-Mart Stores Inc. since 2006. His responsibility is all General Merchandise, Fashion, Grocery, SAM’S, Import, and Specialty Distribution Centers. Ford reports directly to Mike Duke the Chief Executive Officer. 

• Type of data

Jane data center is the data center of Wal-Mart which has a capacity of 460 terabytes of data. Which is a huge capacity of data available in the internet? And it has helped Wal-Mart become the biggest retailer in the world, and to the corporation's growing secrecy since founder Sam Walton's death in 1992.  To the power of data, Jane data center is considered a mysterious icon. It helped Wal-Mart to become the biggest retailer in the world.   When Wal-Mart constructed its primary data center at corporate headquarters in 1989, it wasn't a secret, it was the largest poured concrete structure in Arkansas at the time, and Walton himself ordered a third story. According to the econometric society, Wal-Mart deals with the following data: Store openings data which included the opening dates of Wal-Mart stores and Supercenters. Also the data that Wal-Mart dealt with included distribution center opening which show Opening dates of General Distribution Centers and Food Distribution Center. Moreover, Wal-Mart dealt with Model Calculations data which include Gauss Programs and Gauss Data sets (in .fmt format) that calculate sales, operating profits, and distribution miles for any given configuration of Wal-Mart stores in any given year. Also, Wal-Mart dealt with Deviations data which is a Data set on payoff to deviations plus an example gauss program running a linear program. 

• Type of information

the universal bar code was established after Wal-Mart  pushed the retail industry , which made manufacturers  adopt common labeling. The bar allowed retailers to generate all kinds of information , creating a shift of power from manufacturers to retailers. Also Wal-Mart became very  good at using  the information behind the bar code and is considered a pioneer in developing sophisticated technology to track its inventory and cut the fat out of its supply chain. Professor Edna Bonacich put it simply: "The shift in Wal-Mart's power was when it started to really develop its control over information technology." The key to that was the power of the information that is hidden in the ubiquitous bar code. Moreover , No one  has used the technology as efficiently as Wal-Mart. The former of  Wal-Mart store ; Furthermore, The famous retail store Wal-Mart recently showed that it is investing more in technology , dealing more  with  sales and production tracking. Wal-Mart  now requires its suppliers to provide microchips which will service radio frequency identification, or RFID, which will greatly enhance the systems created by bar codes. RFID tags are usually from two to four square inches in size, and contain a silicon chip that holds a unique string of numbers identifying the item to which it is attached. A separate RFID "reader" receives the information contained in the tag through the tag's antenna. Unlike a bar code, the signal does not have to be read directly by a scanner; RFID signals need only to be in the vicinity of an RFID reader. The technology is used in automated highway toll collection systems, such as E-Z Pass, and in November 2004, the Food and Drug Administration (FDA) and several drug manufacturers announced an initiative to use RFID tags on medication bottles for drugs such as Viagra and OxyContin to combat theft and counterfeiting. Descriptions provided through the tags are more detailed than those in a bar code, and Wal-Mart will be able to have instant information on which products are selling and which products are not well-received. This knowledge will be powerful when deciding which products to purchase from its suppliers.

• Type of knowledge

The giant chain stores Wal-Mart have created a major mark in the retail business industry. It has a great effective knowledge management program that has enabled it to obtain  its competitive advantage even at unstable  economic situations.

Moreover, Walmart met its goals by commitment with the business aims and the balancing operations with the economy growth. as a result of the positive knowledge management strategies that walmart followed  , an important economic gin was achieved . Also Walmart was able to focus on its strategic business operations into cutting operational costs and creating a value for its shareholders by maintaining a good corporation knowledge management strategies which was very useful . Furthermore, Wal-Mart managed to success in productivity and making by using focused differentiation and walmart now is a leader of its type in the whole world.  Wal-Mart faced many challenges at introducing the many knowledge management strategies. the corporation's organizational growth was greatly achieved by the change management analysis .

Also Ushering in of big financial gains on the annual production of Wal-Mart helped  to maintain an effective knowledge management .this trend was recognized by all the major stores associated with the corporation all over the world  and at this modern global age , Wal-Mart stores are now ideal for the businesses and organizations. Moreover, improved employees skills which is one way of supporting the effective knowledge management by the corporation was so helpful and successful at facing challenges. Also, efficiency in service delivery and customer care as well as development of great competition. Was enhanced and supported by the stores effective and reliable knowledge management skills.

Furthermore , strengthening the staff by way of transformational leadership was the focus of the management intellectuality . The company plans language to its employee’s loyalty, diligence and good conduct,  this has helped ensuring long service in duty by the employees. Also , Apt knowledge management in the company has enabled it to solve all issues related to organizational practices and make decisions and discover issues like as animosity. 






o Transaction process system (TPS)

This information system ordinarily automates routine and repetitive tasks that are very important to the operation of the organization such as Point-of-Sale, preparing a payroll, billing customers. The input of TPS is raw data; the processing involves with the summarizing, recording, and merging the data and the output is in the form of report. One example of TPS is Point-of-Sale when you check-out the product at the supermarket, the cashier has to scan the product with the bar code that the input of system; The idea of bar code scanning required that industry develop a universal product code (UPC) system, a could be a standard method for identifying products with numbers and coding those numbers as the type of bar code shown in the photo .And it had many benefits found by Wal-Mart, were it

– Ensure accurate pricing
– Improve efficiency
– Reduce Shrinkage
– Improve communications

The use of bar code scanners made it easier were its unnecessary to put a price on
every item (but still important for consumer protection).This reduced costs so much.
The process involve with the calculating – number of product multiple with the price
of product and the output is in the form of receipt.

TPS ordinarily automates routine and repetitive tasks that are very important to the operation of Wal-mart

Satellite system and Electronic scanning of uniform product code (UPC) at the POS

Electronic Scanning of uniform product code -UPC-

 1. Ensure accurate pricing

2. Improve efficiency

3. Reduce Shrinkage

4. Improve communications

Satellite System

1. Data collected and analyzed

2. Observing Merchandise flow, overstock, discount

3. Video transmissions, credit card authorizations, and inventory control

o Management information system (MIS)

MIS is the system provides the actual performance report of the company that use in
middle management, which created based on the data from TPS. In other way to say 

MIS provides the actual performance report of  Wal-mart

Electronic Date Interchange -EDI- 

1.Forecasting

2.Planning

3.Replenishing 

4.Shipping applications

DSS - the effectiveness of decision makers rather than on increasing the efficiency of data storage and retrieval ,is on improving in All categories and types of DSS focus. some of the benefits of the DSS that were sited by alter, turban , udo and guimaraes and others were :


1.DSS improves individual productivity.
2.it improves the decision quality and speed up problem solving.
3.it improves interpersonal communications.
4. it improves decision making skills.
5. Increase organizational control .
A number of strategic DSS  has been implemented In early 1990s , walmart including retail link and a sale data warehouse . walmart collects sales data from stores in its data warehouse , retail link consolidated data into useful reports  reports and distributes it to suppliers with weekly forecasting information . The retail link is an example of an interorganizational DDS.  the result of the retail link has been redved inventory in stores, more inventory of the right products at the right time and place improved revenues for both suppliers and retailer, and better partner relationships with supplier.

To READ more about the DSS use in Wal-Mart since the early 1990's click on: