TABLE OF CONTENTS
1 Executive Summary...............................................................................................................................3
2 Introduction............................................................................................................................................3
3 Background and Literature Review.......................................................................................................3
3.1 Need for IT Infrastructure at Walmart...........................................................................................3
4 Analysis of various MIS at Walmart.....................................................................................................4
4.1 Enterprise Resource Planning (ERP).............................................................................................4
4.1.1 Advantages of ERP................................................................................................................4
4.1.2 Limitations of ERP................................................................................................................5
4.2 Supply Chain Management (SCM)................................................................................................5
4.2.1 Technologies Used.................................................................................................................5
4.2.2 Advantages of SCM...............................................................................................................6
4.2.3 Advantages of Walmart's Logistics Network........................................................................7
4.2.4 Limitations of SCM...............................................................................................................7
4.3 Customer Relationship Management (CRM)................................................................................7
4.3.1 Pros of implementing CRM...................................................................................................7
4.3.2 Limitations of Implementing CRM.......................................................................................8
4.4 Knowledge Management System (KMS)......................................................................................8
4.4.1 Pros of KMS..........................................................................................................................8
4.4.2 Limitations of KMS...............................................................................................................9
5 Limitations of MIS at Walmart..............................................................................................................9
6 Recommendations................................................................................................................................10
7 Team Reflection...................................................................................................................................11
8 VRIN Analysis of Walmart.................................................................................................................11
8.1 Key Verdict:.................................................................................................................................11
9 Conclusion...........................................................................................................................................11
10 References........................................................................................................................................12
1 Executive Summary
Walmart, the leading retailer of the world, uses its Management Information Systems (MIS) in such a
way that it streamlines their supply chain, customer management and employee management all at once.
Walmart is the leading retailer in revenue, operating a chain of hypermarkets, discount department stores,
and grocery stores. Handling such a large enterprise and streamlining processes to attain maximum
efficiency is one of the key parameters because MIS was adopted in Walmart’s organizational design.
With the implementation of path braking systems like ERP (Enterprise Resource Planning) SCM (Supply
Chain Management) CRM (Customer Relationship Management) KMS (Knowledge Management
System) to name a few, it is imperative that Walmart focused on innovative MIS systems that offer a
remarkable competitive advantage to the enterprise for a long period of time.
2 Introduction
Walmart, the world’s leading retail corporation which has revolutionized retailing and supply chain
management, has also created innovative management information systems that have become industry
standards for other organizations to follow. Some of the key examples of MIS of Walmart are:
● ERP (Enterprise Resource Planning)
● SCM (Supply Chain Management)
● CRM (Customer Relationship Management)
● KMS (Knowledge Management System)
3 Background and Literature Review
3.1 Need for IT Infrastructure at Walmart
● Inventory Management: Walmart deals with a wide variety of merchandise. To effectively
manage and track inventory levels, an efficient IT infrastructure is required. Barcode scanning,
RFID technology, and robust inventory management systems are examples of this.
● Supply Chain Management: Walmart has a complicated worldwide supply chain. IT solutions
aid in the optimization and management of the supply chain, assuring the timely and efficient
transfer of goods from suppliers to distribution hubs and then to shops.
● Point of Sale (POS) Systems: The POS systems at Walmart are crucial for processing
transactions fast and correctly. These systems are linked to inventory management, assisting in
the real-time updating of stock levels and providing insights into sales patterns
● Customer Relationship Management (CRM): Walmart's IT infrastructure enables it to collect
and analyze customer data in order to better understand shopping behaviors, preferences, and
trends. This data can be utilized to tailor marketing efforts and improve the overall consumer
experience.
● KMS (Knowledge Mangement System): The Knowledge Management System's Management
Information System (MIS) at Walmart includes organized procedures for collecting, processing,
and storing data, enabling the effective retrieval of information. Executed through a well-defined
process, it fosters collaboration and decision-making throughout the organization. This MIS
ensures a smooth knowledge flow, guaranteeing timely access to pertinent information, thereby
enhancing operational efficiency and strategic planning at Walmart.
● E-Commerce and Online Presence: Walmart has a big web presence. An advanced IT
infrastructure is required for administering e-commerce platforms, assuring secure online
transactions, and providing customers with a flawless online shopping experience.
● Data Analytics and Business Intelligence: Walmart collects vast amounts of information on
sales, customer preferences, and operational effectiveness. The use of data analytics and business
intelligence tools to derive relevant insights, optimize processes, and make educated business
decisions is supported by IT infrastructure.
● Cybersecurity: Cybersecurity is a significant priority as operations become more digital. To
protect sensitive consumer data, financial information, and the overall integrity of its systems,
Walmart's IT infrastructure must contain sophisticated security measures.
● Communication and Collaboration: A huge corporation such as Walmart necessitates effective
communication and collaboration technologies. IT infrastructure enables employees to work
efficiently across departments and locations by supporting email systems, collaboration
platforms, and communication tools.
● Efficient Operations: IT infrastructure aids in the automation of many corporate operations,
eliminating manual labor and errors. Payroll processing, personnel scheduling, and order
fulfillment are examples of such tasks.
● Scalability and Flexibility: To adapt to changing business demands, Walmart's IT infrastructure
must be adaptable and flexible. This includes the ability to manage higher transaction volumes
during peak shopping seasons, as well as the ability to integrate new technologies as they
develop.
4 Analysis of various MIS at Walmart
4.1 Enterprise Resource Planning (ERP)
As a type of Management Information System (MIS), Walmart uses an Enterprise Resource
Planning (ERP) system. ERP is a complete software solution that unifies multiple business
operations and functions across an organization. Walmart employs ERP to streamline processes,
improve productivity, and enable improved decision-making.
4.1.1 Advantages of ERP
● Integration of processes: ERP software unifies and streamlines multiple business processes
across departments, giving Walmart a uniform and simplified perspective of its operations.
● Improved efficiency: The automation of regular tasks and business processes improves
operational efficiency, allowing Walmart to handle a massive volume of transactions and data
more effectively.
● Accurate Data and Reporting: ERP systems deliver real-time data, ensuring that Walmart
decision-makers have access to accurate and up-to-date information to make better decisions.
● Enhanced Productivity: Employees can focus on more value-added activities when processes
are streamlined and automated, resulting in greater overall productivity.
● Better Supply Chain Management: ERP aids with supply chain optimization by reducing lead
times, avoiding stockouts, and enhancing overall supply chain efficiency.
4.1.2 Limitations of ERP
● High Initial Costs: ERP system deployment can be costly, comprising fees for software licenses,
hardware updates, training, and consulting services.
● Complex Implementation: The implementation process can be time-consuming and complex,
potentially affecting routine corporate operations during the transition phase.
● Resistance to Change: Employees may be resistant to changes in their daily routines and
operations, which may lead to resistance throughout the ERP implementation period.
● Maintenance Costs: Ongoing maintenance and updates can contribute to additional costs for
Walmart over time.
● Data Migration Costs: Migrating existing data to the new ERP system can be challenging and
may lead to data integrity issues if not handled properly.
4.2 Supply Chain Management (SCM)
Walmart is well known for having a very creative and effective supply chain management system, which
is a major contributing element to its success as the biggest retailer in the world. The following are
significant facets of Walmart's supply chain:
4.2.1 Technologies Used
1. EDI (Electronic Data Interchange):
● What it is: A standardized method for exchanging business documents (orders, invoices, shipping
notices) electronically between trading partners.
● How Walmart uses it:
○ Streamlines communication with suppliers, reducing paperwork and manual data entry.
○ Improves accuracy and timeliness of information flow.
○ Enables faster order processing and replenishment.
2. Retail Link System:
● What it is: Walmart's proprietary web-based portal for sharing data and insights with suppliers.
● How Walmart uses it:
○ Suppliers access real-time sales data, inventory levels, and performance metrics.
○ Collaborative planning and forecasting with suppliers to anticipate demand and optimize
inventory.
○ Supports efficient replenishment and promotions.
3. RFID (Radio Frequency Identification):
● What it is: technology using small electronic tags to track individual items wirelessly.
● How Walmart uses it:
○ Tracks products throughout the supply chain, from warehouses to store shelves.
○ Improves inventory visibility and accuracy.
○ Reduces out-of-stocks and optimizes product placement.
○ Enables faster checkouts and loss prevention.
4. My Productivity App:
● What it is: A mobile app for Walmart employees to manage tasks and communicate.
● How Walmart uses it:
○ Associates receive real-time task assignments and updates.
○ Track productivity and performance metrics.
○ Connect with managers and colleagues for support.
○ Streamlines store operations and employee productivity.
4.2.2 Advantages of SCM
● Emphasis on Direct Relationships: Walmart negotiates advantageous rates and guarantees
consistent quality by forging long-term partnerships with suppliers instead of using middlemen.
● Technology and Automation: To improve delivery, track inventory in real-time, and streamline
procedures, they extensively invest in technology such as RFID tags, automated warehouses, and
advanced data analytics.
● Efficient Distribution Network: Walmart has an extensive network of well-placed distribution
centers that save transportation expenses and guarantee on-time delivery to retail locations.
● Inventory Management: They use advanced methods such as just-in-time (JIT) inventory
management. Using vendor-managed inventory (VMI) to maintain the best possible product
availability and prevent overstocking.
● Cost Control: Customers benefit from lower costs as a result of Walmart's emphasis on
efficiency and reducing waste throughout the supply chain.
4.2.3 Advantages of Walmart's Logistics Network
● Reduced costs: Walmart's customers benefit from decreased product pricing as a result of its
effective procurement and logistics.
● Increased product availability: By keeping products easily accessible in stores, advanced
inventory management helps to minimize stockouts and customer annoyance.
● Faster innovation: Walmart can react swiftly to shifting consumer preferences and launch new
items more quickly because of its efficient supply chain operations.
● Environmental impact: A more sustainable supply chain is a result of improved transportation
and decreased waste.
4.2.4 Limitations of SCM
● Labor practices: Questions have been raised concerning the working conditions that Walmart's
supply chain employees face, especially in developing nations. Impact on the environment: A
large amount of carbon emissions are produced by the extensive transportation network.
● Anti-competitive practices: Walmart's purported use of its purchasing power to pressure
suppliers and suppress competition has drawn some criticism. All things considered, Walmart's
supply chain management system is an amazing and intricate network that has been instrumental
in the company's success. Walmart has undoubtedly developed and streamlined its supply chain
to become a leader in its industry
4.3 Customer Relationship Management (CRM)
CRM is a combination of strategies, practices, and technologies used by businesses to manage and
analyze customer interactions and data throughout the customer lifecycle. It's essentially a way to
organize and leverage customer information to improve relationships, sales, and overall customer
experience.
4.3.1 Pros of implementing CRM
● Increased Sales and Revenue: The usage of customer analytics to customize marketing
campaigns, suggest targeted promotions and offers, promote upselling, and build loyalty
programs are some of the advantages of CRM in increasing sales and revenue through targeted
marketing.
● Improved Customer Experience: Improving customer experience is all about maintaining
consistency in all channels of retailing (omnichannel retail) by integrating data from various
touchpoints to provide seamless customer service across channels. Integration of centralized
customer information and automated workflows to resolve customer pain points and provide
faster resolutions builds customer trust, eventually leading to customer loyalty.
● Enhanced Productivity and Efficiency: Walmart enhanced its productivity and efficiency by
automating day-to-day tasks, reducing the load on employees, and improving overall efficiency.
Organizing and tracking the sales pipeline enables efficient lead management and conversion.
This optimizes the sales process and leads to faster deal closure.
● Data-driven Decision Making: CRM gathers and analyzes customer data, including purchase
history, preferences, and feedback, thereby providing valuable insights that can inform marketing
campaigns, product development, and store layout decisions. Integrating CRM with Predictive
Analytics will help anticipate customer needs, optimize inventory management, predict and
mitigate risks, and personalize shopping experiences for better conversion rates.
● Improved Team Collaboration: CRM serves as a platform for information sharing and
collaboration across departments. This ensures everyone has access to the same customer data
and insights, leading to more informed decisions and better customer service. Integrating Task
management with cross-departmental visibility ensures transparency and accountability on a
more individualized level.
4.3.2 Limitations of Implementing CRM
Cost: The overall cost associated with implementing CRM is high because of the high data
storage requirements, causing the need for proper database management system implementation,
data flow complexities and the implementation of customer analytics/ predictive analytics.
Data security: The legal and ethical challenges pertaining to the use of CRM are associated with
the collection, storage, and security of the customer data to be collected from all the stores and
omnichannel retail modes of Walmart. It is of absolute importance that the customer data be
protected from reaching other parties as customer loyalty and trust will take a hit if the data is
leaked elsewhere.
Data quality: The question also arises when we specifically talk about customer analytics, is the
data provided by the customers accurate? Or was it done as an attempt to defy providing personal
information with faulty or incorrect information such as wrong phone numbers, names, etc. Using
faulty data to predict customer behavior will cause major damages in custom recommending
offers and promotions to customers.
Resistance to change: Implementation of any MIS comes with resistance to adapt, where the
employees themselves cannot adapt to the MIS due to the additional learning involved in the
adoption and usage of the MIS. The same resistance can be seen in adapting to CRM as well as
the process, albeit moderately complex, needs a shift in current work processes and understanding
the analysis provided by CRM.
Over-reliance on data: The entire process of Predictive analytics comes with its dependence on
data to formulate analysis and results. This further indicates the pain point of wrong analysis due
to the usage of bad data.
4.4 Knowledge Management System (KMS)
This is a software solution offered by Knowledge Powered Solutions (KPS) that helps organizations
manage and share knowledge across the enterprise. It includes features like a knowledge base, search
engine, workflow management, and reporting.
4.4.1 Pros of KMS
Improved Knowledge Accessibility and Sharing: This provides all employees with a one-
source information repository giving equal access to training and learning for all employees of
Walmart.
Enhanced Collaboration: The provision of a single source repository provides a chance for
employees of different skill sets to interact and share their learnings with others for the overall
welfare and development of the organization.
Increased Customer Satisfaction: Having a strongly trained workforce will ensure optimization
and efficiency, enhancing customer interactions and customer satisfaction.
Improved Productivity and Efficiency: Comprehensive knowledge sharing amongst people of
different departments ensures cross-learning and overall increase in productivity and efficiency of
the organization.
4.4.2 Limitations of KMS
Data Quality and Maintenance: The reliance on data proves to be a disadvantage when the
question arises about the quality of data collected and the level of maintenance to be maintained
to attain data retention at the utmost data quality.
Change Management Challenge: When a change is to be introduced in employee training and
learning, the change needs to be implemented enterprise-wide to ensure consistency.
Technology Dependence: The implementation of KMS comes at a cost of overt dependence on
technological implementation aspects.
Security and privacy Concerns: The data quality and security is of prime importance for KMS
to ensure that the data shared needs to be preserved with utmost quality standards and should be
contained within the organization.
5 Limitations of MIS at Walmart
● Costly Implementation: The initial setup cost of implementing a comprehensive MIS can be
substantial, posing a financial challenge for Walmart.
● Data Security Concerns: Handling vast amounts of sensitive customer and business data
requires robust security measures, and any lapses could lead to significant risks.
● Employee Resistance: Resistance to change among employees during the adoption of new MIS
systems can hinder the smooth integration and utilization of the technology.
● Dependency on Technology: Over-reliance on technology exposes Walmart to vulnerabilities,
such as system failures or cyber threats, potentially disrupting operations.
● Need for Skilled Workforce: Efficient use of MIS requires a skilled workforce, and ensuring
that employees possess the necessary skills can be a limitation.
● Integration Challenges: Integrating MIS across various departments and locations within
Walmart's vast network can present challenges, impacting seamless data flow.
● Upkeep and Maintenance: Continuous maintenance and updates are essential for MIS
functionality, and any neglect in this area can lead to system inefficiencies and vulnerabilities.
● Scalability Issues: As Walmart expands, the MIS might face scalability challenges,
necessitating adjustments to accommodate the growing volume of data and users.
● Data Accuracy: Ensuring the accuracy of the data entered the MIS is crucial, and any errors or
discrepancies can compromise the reliability of the information.
● Adaptation to Changing Needs: MIS might face limitations in adapting quickly to changing
business requirements, potentially lagging in providing real-time insights for decision-making.
6 Recommendations
● Invest in Advanced Analytics and AI: Integrating advanced analytics tools and artificial
intelligence (AI) capabilities into Walmart's MIS would help in achieving more insights leading to
better performance. This includes machine learning algorithms for predictive analytics, which can
assist in demand forecasting, inventory optimization, and personalized customer experiences.
With more relatable experiences, customers would find it easier to shop and would be easier for
Walmart to track and refill.
● Improve Data Integration and Interoperability: Better data integration among various systems
within Walmart's infrastructure is required. Ensuring seamless interoperability between different
databases, applications, and platforms to enable real-time data sharing and decision-making across the
organization would be beneficial.
● Enhance Cybersecurity Measures: It should emphasize the importance and implementation of
robust cybersecurity measures within Walmart's MIS. Recommend continuous monitoring, regular
security audits, and the implementation of advanced cybersecurity tools to safeguard sensitive
customer data and prevent potential cyber threats.
● Focus on Customer-Centric Solutions: Encouragement of the development of customer-centric
solutions within Walmart's MIS. This includes leveraging data analytics to personalize marketing
strategies, improve customer service, and create tailored shopping experiences both in-store and
online.
● Adopt Cloud-Based Solutions for Scalability: Migrating certain components of Walmart's MIS to
cloud-based platforms for scalability and flexibility might add to technological ability. Cloud
solutions can provide cost-effective storage, improve accessibility to data, and facilitate easier
integration of new technologies.
● Continuous Training and Skill Development: Need to stress the importance of continuous training
and upskilling for employees to adapt to evolving MIS technologies. Encourage a culture of learning
and innovation within Walmart to maximize the benefits of new systems and tools.
● Improve User Interface and Experience: Enhancing the user interface and experience of MIS tools
and applications used by Walmart employees. A user-friendly interface can increase adoption rates
and efficiency across the organization.
● Prioritize Sustainability and Ethics: Utilization of MIS to track and optimize energy consumption
and reduce the environmental impact. Data can be used to promote ethical sourcing, fair labor
practices, and responsible supply chains.
7 Team Reflection
Analyzing Walmart’s MIS made us understand the intricacies and complexities of developing a new MIS
from scratch and how a simple implementation can be made valuable given the right set of
implementation ideas. The Supply Chain Management system of Walmart is so simple yet efficient as it
does all the requisite tasks and effects without using too much jargon. This comes to show that any MIS
should be created in such a way that it just caters to one’s or the organization’s requirements, rather than
following other trends in technical features, it is imperative to focus on personal needs for the easy and
efficient implementation of MIS.
8 VRIN Analysis of Walmart
Walmart's strategic position is assessed through a VRIN analysis, evaluating its resources for Value,
Rarity, Inimitability, and Non-substitutability.
1. Value: Walmart's extensive global presence, economies of scale, and robust supply chain contribute
significant value, enabling cost leadership and competitive pricing.
2. Rarity: The company possesses unique resources, such as its vast network of retail outlets and
advanced logistics, contributing to a rare and advantageous position in the market.
3. Inimitability: Walmart's operational efficiency, technological infrastructure, and a strong brand are
difficult for competitors to replicate, creating barriers to imitation.
4. Non-substitutability: Walmart's diverse product offerings, customer loyalty programs, and strategic
partnerships make it challenging for substitutes to replicate the comprehensive shopping experience it
provides.
The VRIN analysis underscores Walmart's sustained competitive advantage, leveraging valuable, rare,
inimitable, and non-substitutable resources to maintain its position as a retail industry leader.
8.1 Key Verdict:
Overall, Walmart's MIS and IT infrastructure demonstrate considerable VRIN characteristics. It provides
valuable benefits, is relatively rare and complex, not easily imitated by competitors, and lacks close
substitutes. This combination grants Walmart a sustainable competitive advantage in the retail industry.
9 Conclusion
● Transformative Power of Technology in Retail: Walmart's MIS showcases how technology can
revolutionize retail operations, facilitating optimized inventory management, streamlined supply
chains, and personalized customer experiences. This highlights the pivotal role of technology in
driving efficiency and competitiveness in the retail sector.
● Addressing Limitations: Despite its successes, Walmart's MIS faces challenges like system
complexity and ethical considerations. System complexity may hinder agility and innovation, while
ethical considerations emphasize the importance of responsible data use and customer privacy.
● Embracing AI and Data Security: To propel forward, Walmart should embrace AI for predictive
analytics, personalized recommendations, and operational efficiency. Additionally, prioritizing data
security measures is crucial to protect customer data and maintain trust.
● Bridging the Human-Tech Gap: Walmart must focus on bridging the gap between technology and
human expertise. This involves upskilling the workforce to effectively utilize advanced technologies
and leveraging human creativity alongside technological advancements.
● Prioritizing Sustainability and Ethics: Prioritizing sustainability involves adopting eco-friendly
practices, sustainable sourcing, and reducing environmental impact across its supply chain. Ethical
considerations involve ensuring data privacy, transparency, and ethical AI use.
● Fostering Agility and Innovation: Walmart needs to foster a culture of agility and innovation,
allowing for swift adaptation to market changes and technological advancements. This involves
encouraging innovative thinking, experimentation, and embracing emerging technologies.
● Contributing to Responsible Progress: By integrating these recommendations, Walmart's MIS can
become a beacon of responsible progress. This entails not only maximizing profits but also
contributing to societal well-being, employee satisfaction, and environmental sustainability.
● Technology and Human Well-being: The success of Walmart's MIS journey emphasizes the
importance of wielding technology with a focus on human well-being and responsibility. It
underscores the need to balance technological advancement with ethical considerations and societal
impact.
10 References
Walmart Official Website: https://www.walmart.com/
Walmart CMS information: https://www.customerization.ca/walmart-retail-technology-
for-better-customer-experience/
How does Walmart use their MIS: https://www.kyinbridges.com/how-does-walmart-use-
management-information-system/
