Managing Operational Improvement: A Case Study of Walmart

This report examines the need for operational improvement in Walmart, particularly in the context of digitalization. It discusses the forces driving the adoption of digitalization, the current areas of operations that require improvement, and the benefits and risks associated with digitalization. The report concludes with recommendations for Walmart to successfully implement digitalization and improve its operational performance.

Managing Operational
Improvement

EXECUTIVE SUMMARY
The following report is based on Walmart. The report has different sections describing
the need for bringing a change in any of the domains of the company. Further, the report finds
out about the change that helps the company in becoming a leader in global market. Next, the
risks, barriers and enablers of digitalisation for Walmart are discussed. It is recommended that
the company should use communication as the key to deal with the employee resistance against
the proposed digital change in the organisational premises.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
Forces of Change.............................................................................................................................1
Current area of operations and context for improvements...............................................................2
Operational performance gaps – Order Winners and Qualifiers.....................................................2
Digitalisation for operational improvement.....................................................................................3
Rationale and benefits of digitalisation............................................................................................3
Risks, barriers and enablers for digitalisation and operational improvement..................................3
Recommendations............................................................................................................................4
Conclusion.......................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Technology has undergone extensive advancements over the course of time in relation to
every business sector (Vanitha and et. al., 2019). In this relation, the most prominent
advancement has been acknowledged to be globalization which has made it easier for the
companies to carry out trade. This has facilitated free and faster flow of goods and services
across the international borders. The present project is based on Walmart, a global retail
corporation running in the industry for years now. This entity has taken steps to undergo
digitalization but the rate at which it has adopted the technology for implementation into its
operations is relatively slower than the rate at which the corporate environment is constantly
evolving. The recent event of COVID-19 outbreak across the globe has made it even more
important for the company to leverage digitalization in the full version to ensure the provision of
personalized experience and offerings to the customers while keeping their safety into
consideration simultaneously.
Forces of Change
There are several factors that drive the adoption of digitalization within the bounds of
Walmart. The main aspect that drives the company is acknowledged to be extensive competition
existing in today’s era (Yan and et. al., 2017). This induces the corporations to adapt to the latest
technologies in order to makes sure that they sustain in market place for a longer period of time
in future context of time. The most valuable asset of the global era is identified as information.
Each and every company is keen on using the information in an effective manner, especially in
the 4th industrial revolution. In the age of information, it is especially required by Walmart to
use its pool of data to create a personalized experience for its customers. In addition to this,
disruptive technologies such as Bitcoin, Blockchain, and mobile money are focused on
information. Walmart needs to be ready to incorporate these technologies for gaining an edge in
the market place across the globe. Another factor driving the adoption of digitalization is
acknowledged to be the alteration in the behavior of consumers within the current era. People in
the current era are more in demand of a personalized experience. Digitalisation will allow
Walmart to analyse the information of the customers and consequently deliver the services in
accordance with the needs as well as requirements of the customer base. Apart from this,
personalization of adverts is done to drive more customer engagement. In addition to this, the
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global brand name of Walmart makes it essential for the respective retail giant to adopt digital
technology to provide an impeccable experience to the people. Lastly, the outbreak of COVID-
19 has led to the closure of majority of the world or restricted operations of the businesses. This
has caused alterations in the way people carry out shopping. People in the social distancing
context prefer to do online shopping. In the last 7 months, the world has not been able to come
up with a vaccine to deal with the coronavirus. Thus, the adoption of digital technology will
allow Walmart to deliver high quality services to customers while deriving maximum
satisfaction from them simultaneously. This includes an effective online system inclusive of
provision of a platform to do online shopping and delivery offerings to the customers (Tan and
et. al., 2018). Recently, Amazon has used drones to avoid human contact at the time of product
deliveries.
Current area of operations and context for improvements
The online ordering system of Walmart is effective; however, it does not include delivery
of offerings to the customers. The most prominent technology that has provided the company
with extensive success is identified as cloud technology. This was done with the help of
partnership with Microsoft for driving digital transformation of the operations of this company.
However, the organization is still known to be lacking essential innovations in the domain of
technology to lead the current corporate world. Further, rivalry from the companies like Amazon
who have adopted Digitalisation fully also acts as a hurdle for Walmart. Thus, it can be said that
operational structure of Walmart requires improvement as well as transformation. Also, the
organization has the potential to use its large pool of data to attain competitive edge over the
rival firms. The data can be used to foster technologies and systems such as machine learning
(Simbolon and Riyanto, 2020). Blockchain technology can also be implemented within the
confines of Walmart to ensure effective supply control. Currently, technology is being used only
in context of food supply chain but it can be used for the entire supply chain. This will assist in
cutting down the excessive cost associated with supply chain.
Operational performance gaps – Order Winners and Qualifiers
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Digitalisation for operational improvement
Walmart is applying digitalisation to streamline the business operations and make sure
that the organisation is able to offer its services to the customers in the best possible manner.
This will allow the firm to make delivery of its organisational offerings even in the wake of
coronavirus outspread, while avoiding human contact. This will provide due assistance to the
respective corporation in driving its sales and profits in the long term (Li, Tan and Chaudhry,
2019).
Rationale and benefits of digitalisation
Operational Performance Gaps – Order Winners and Qualifiers
Walmart is a leader from few decades within the market but unfolding events like
technological innovations along with Covid-19, the market has changed significantly. For this, it
is crucial for firm to completely move towards digitalization for surviving within the
marketplace for longer frame of time. An example can be taken like Walmart have online
platform through which customers can have place orders but they were not delivered at their
doorstep. This implies that customers can opt for retailers such as Amazon who have already
their strong online presence that enabled them to deliver services at doorstep. Walmart have
powerful image within market with respect to quality of their products (Awwad and et. al.,
2018). Thus, gap can be filled in context of speed which will lead them to have competitive edge.
Through outbreak, firms have lost their order qualifiers as people opt for options in which they
do not need to get out of their houses. Customers anticipate that firm must come up with
different methods to restrict exposure otherwise there is high probability that they can switch to
other options who have adopted electronic commerce along with deliverables.
Rationale and benefits of Digitalisation
Walmart have opted for blockchain technology within their food supply chain which will
lead them to optimise cost as well as furnish fresh supplies to their customers. Thus, it indicates
that by opting for same technologies within other lines of services that are delivered via retailer
and will make sure that customers are given services on time in efficient way (Girdwichai,
2020). In addition to this, retailer can optimise cost thereby make profits as well as maintain
competitive edge within the marketplace. This will make this easy for firm to recall the safety of
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consumers. In addition to this, other firms such as Amazon are major competitor of Walmart
who are delivering their customers with relevant services. Thus, it becomes important for later to
adopt latest technologies so that deliveries can be made otherwise it will be difficult for firm to
survive and maintain their positioning.
The customers are looking forward for new ways of carrying out shopping. People fear
about their health which becomes responsibility of Walmart to ensure that their customers are
safe from virus. Digitalisation is viable way for handling situation that will aid firm to deliver
their products via online medium (Akram, 2018). This means that there is restricted interaction
among people. In addition to this, employees of Walmart are trained and also acknowledge new
technologies for conducting each day activities. Apart from this, digitalisation aims at restricting
physical communication of people while breakdown and firm needs to adopt corporate social
responsibility while delivering their services. Through this, it will become easy for Walmart to
maintain their status as a leader within retail business.
Risks, barriers and enablers for digitalisation and operational improvement
Technology keeps on evolving which implies that the adoption of a technology does not
imply its application in every instance and for years to come. Thus, one risk is that technology is
subject to change with time. Another most common issue affecting the adoption of digitalisation
by the management of Walmart is cyber security. The drone system that will be used for making
the deliveries of Walmart can be hacked and thus become harmful for the entity and its
consumers. Further, another risk is linked to the confidentiality of information of the customers
while making the online transactions. This implies that the personal details and financial account
details of the customers may be exposed to third party that may use it for malicious purposes
(Morkunas, Paschen and Boon, 2019).
The barriers related to the adoption of digitalisation by Walmart comprise of change
resistance, limited customer knowledge, and organisational agility. All of these may act as the
hurdles in the way of this company making the move to adopt digitalisation in the long run
(Ivanov, Tsipoulanidis and Schönberger, 2019).
Now, the enablers in context of the desired change within the company for driving
operational improvement are abundance of financial resources, technological efficiency and
human resource competence (Hänninen, Smedlund and Mitronen, 2018). These will provide
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assistance to the respective company in deriving success and sustainability in the global market
place.
Recommendations
In relation to the adoption of digital technology, the first suggestion that has been given
to the management of Walmart is leveraging communication to provide knowledge of the vision
associated with change to the employees. This will help in reducing the resistance from staff and
driving the adoption of digitalisation in organisational premises. Another recommendation is that
the entity should make due arrangement of finances and technology to make sure that the
proposed change takes place and helps the entity in providing a desirable experience to the
people.
Conclusion
Digitalisation is a trend that drives the attention of every company as it enables the firm
to streamline its business operations. It is especially important in the wake of corona virus
outspread across the world. Another important technology is identified as the Block chain
technology that can cut down the cost linked to supply chain. However, Digitalisation is
associated with risks like cyber security issues. The commitment of employees and the company
can allow effective adoption of digitalization in the organizational premises to derive lucrative
benefits. The basic inference that has been drawn from the report is thus that digitalisation is an
effective trend that allows the companies to appeal to the public at large and thereby gain their
attention towards the organisational offerings. This will lead to the elevation of profits and
revenues of the corporation in the long term.
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REFERENCES
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Blockchain Technology for Efficient Management of Supply Chain. In Proceedings of
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