The Role of Information Technology in Wal-Mart's Success

The implementation of IT and IS was a key factor in Wal-Mart's success. The use of technology helped in making informed decisions, managing inventory, and boosting productivity. Training programs were organized to facilitate a smooth transition. IT helped in developing better business strategies and reducing costs.

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Case Study 3: Wal-Mart
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Table of Contents
Question 1 3
Question 2 3
Question 3 4
Question 4 4
References 6

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Question 1
It can be observed from the case study of Wal-Mart, the proper and efficient implementation of
IT and IS in the organization was one of the key factors in the achievement of success. IT and IS
have radically changed the methods of conducting the everyday business affairs and lets the
organization utilize its resources frugally and make informed decisions. IT systems are used to
manage the inventory, administration, customers and suppliers of Wal-Mart. The first avenue,
which saw the inclusion of technology within the organizational framework, was the introduction
of computerized accounting systems. Wal-Mart has a computerized point of sale (POS) system,
which keeps track of all the commodities that are being bought by its customers (Bloom &
Hinrichs, 2017). This lets the organization determine which products are being demanded by the
customers more in respect of the others. This will increase sales and prevent the accumulation of
unwanted stock. This is one of the primary reasons behind Wal-Mart’s expansion. Apart from the
existing technological aspects of the organization, there are certain projects that Wal-Mart is
working on currently and they are aimed at boosting productivity and consumer satisfaction.
Currently, Wal-Mart is seeking radically increase the convenience of shopping by introducing
certain stores where consumers can choose the products that they need with the help of their
smartphones.
Question 2
The CIO of Wal-Mart had to face tremendous ordeals before finally being able to establish a
technological framework in the organization. On one hand, the implementation of such a system
is contingent upon time; effort and investment there are certain other not so evident factors that
determine the success of the implementation process. An organization, which has been used to
running in more or less conventional ways, shall find it extremely difficult to bring in radical
changes to its processes of daily operations. Resistance from employees had to be countered by
making them aware of the actual implications of the new processes. It should be impressed upon
them that the new methods shall only help in making their work easier and more efficient.
However, it must also be mentioned that the employees at Wal-Mart were not acquainted with
the use of such complex technologies on a day-to-day basis (McCrory, Hicks & Miller, 2016).

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Therefore, training programs had to be organized in order to smoothly facilitate a transition from
the mechanical to digitized phases. Moreover, there had been rampant circulation of rumors
among the employees prior to the initiation of the digitized processes. Therefore, there were a lot
of apprehensions among them, which had to be mitigated through the intervention of the
management.
Question 3
The case of Wal-Mart testifies to the fact that technology plays a very decisive role in the
achievement of success of an organization. It not only helped Wal-Mart in devising its long
terms goals and strategies but also in radically improving its profits and promoting growth. The
POS system for example, helped increasing the sales of the organization to the large extent. The
case study reveals that it was one of the primary factors that aided in Wal-Mart’s historic
expansion. Before the implementation of the system, the organization used to stock up on goods
that were not bought by customers. However, when accurate data regarding the preferences of
customers could be made accessible by the technology, it became possible to keep only those
products that were more likely to be bought by the customers (Eason, 2014).
The use of radio frequency identification (RFID) tags for inventory distribution management let
the organization track the inventory movement across the supply chain. This let the organization
in carrying out more efficient supply chain management. Therefore, it can be observed that the
use of IT helped Wal-Mart in developing better business strategies.
Question 4
Information systems serve a large number of purposes for an organization. With proper
application and use of Information Technology, the organization can ensure developing the
overall business strategy. It shall help them to develop the overall mechanisms of
communication, which shall in turn help to avoid errors and delay in actions and decisions.
Effective IT use can also promote the supply chain management and reduction of various costs
related to maintenance of distribution channels (Thomas, Karodia & Khan, 2014). With proper

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supply chain management, supply and rendering of services can be made smooth and easy. This
shall help in providing better services and products to the customers. Thus, it can be concluded
that with the overall development of Information Technology in the organization, it shall finally
be able to earn more profits.

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References
Bloom, J. D., & Hinrichs, C. C. (2017). The long reach of lean retailing: Firm embeddedness and
Wal-Mart’s implementation of local produce sourcing in the US. Environment and
Planning A: Economy and Space, 49(1), 168-185.
Eason, K. D. (2014). Information technology and organisational change. CRC Press.
McCrory, T., Hicks, R., & Miller, R. (2016). Managing Walmart's Stormwater Infrastructure
through Big Data When it Rains, It Doesn't Have to Make you Poor: Streamlining
Stormwater Infrastructure Management with Information Systems. Proceedings of the
Water Environment Federation, 2016(5), 3431-3444.
Thomas, S., Karodia, A. M., & Khan, S. (2014). The Potential to Unleash Unrivaled Supremacy
Using Wal-Mart as a Case Study by Means of Using Management Information Systems
(Mis), Financial Systems and Sound Accounting Practices: Lessons for Large and Small
Retail Businesses. International Journal of Accounting Research, 42(1482), 1-13.