Information Technology Systems in Business: Walmart Example

This report comprehensively examines the role of information technology systems in modern business environments. It begins by defining information technology systems and their various types, highlighting their importance in achieving competitive advantages within a rapidly evolving market. The report details how IT systems facilitate efficient management, marketing strategies (including email and social media), and improved decision-making through data analysis. It then breaks down the components of an IT system, including people, organizational elements, and technology, and outlines a four-step approach to problem-solving within these systems. The report further emphasizes the essential skills needed for effective IT system management, such as technical knowledge, communication, and analytical abilities. It explores the application of new technologies like email, social networking, and mobile devices, emphasizing how businesses can utilize these tools for global market reach. The report uses Walmart as a case study, illustrating how the company employs IT systems like websites, databases, and package tracking to enhance customer experience, streamline inventory management, and gain a competitive edge. The analysis highlights how Walmart's IT strategies support its business objectives of market dominance, lower prices, and improved returns, concluding that the effective use of information technology is crucial for business growth and success in the global market.

Running head: INFORMATION TECHNOLOGY SYSTEMS IN BUSINES S
1
Information Technology Systems in Business
Student’s Name
Institutional Affiliations

INFORMATION TECHNOLOGY SYSTESM IN BUSINESS 2
Information Technology Systems in Business
Information technology falls under information system that involves using computers
systems for storing, retrieving, transmitting and manipulating information for example in
business or enterprise contexts. Information technology systems is therefore the umbrella term
used to define people, systems and processes designed to create, storing, manipulating,
distributing and disseminating information. It is worth noting that information systems can be
based on non-technological systems. There are different types of information technology systems
for example expert systems, management information systems and transaction processing
systems. Every system has its specific use in the business environment. In the context of this
assignment, my focus will be on information technology systems and their application in
business (Laudon & Laudon, 2015).
In today’s world, the business market environment is growing at a fast rate. Competition in
the market is based on how well a business can apply the current trends to attract its customers.
Therefore, it is imperative that companies stay updated with the changing technology trends.
Companies should consider information as an essential resource. Thus, information systems
come in to help business people achieve their goal of gaining competitive advantage in an ever-
changing market environment.
Information systems enable the managers to manage their businesses efficiently.
Information systems are also crucial in marketing businesses, for example, the social media
marketing. Additionally, communication within and out of business becomes easier when
information technology systems are applied. Another interesting fact about information
technology systems is that they can make decision making easier by providing data models and

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statistical projections from analyzed data which help managers in making quality decisions. The
transaction information system makes it easier for transactions to be done faster with most of
these systems giving room for multiple transactions to be done simultaneously, thus making
work easier.
The information technology system is made of different components. Contrary to what
most people assume, information technology systems include many elements apart from the
technological components. The people involved in information technology system include
managers and the employees. They are responsible for managing the systems. Also, the
organizational components of an information system cover the procedure and the processes in
the organization. The technology components of the information system include the computer
software and hardware, databases, data warehouses and telecommunication Stair & Reynolds,
2017).
Information technology systems work by using the computers to manage business
information. Information management is very essential in business since it streamlines the
control of the business operations and makes it easier for managers to make right decisions
concerning their businesses. Information systems use software, databases and hardware resources
needed in supporting the entire business process.
Problems associated with information systems can be solved using a four-step approach
to solving business problems. The model is essential since it helps in understanding the problem
and identifying technological, organisational components and people that can aid in solving the
problem. The first step involves the identification of the problem whereby the manager finds out
where the problem with the information system is. Secondly, a solution is designed. The

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designed solution is then evaluated and finally implemented. Implementation involves activities
like software testing and employees training (Van & Berends, 2018).
As a part of growing business, it is essential to have the necessary skills in information
system management. Since information system management is the role of every employee who is
part of the business, these skills are essential to enable them to contribute positively to the
company. Knowledge of technologically based systems like software, hardware and database
implementation and designs is necessary. The manager and employees should be able to
thoroughly interact with these components. This knowledge requires training; thus organisation
can set aside some funds to cater for employees’ training on using these components. Also, skills
like communication, creativity, innovativeness, planning, analytical skills, problem-solving, time
management, networking and leadership are very essential for successful business information
system management (Pearlson, Saunders & Galletta, 2016).
With the rise of technology use in the business world, new technologies have been used
as information system tools that give businesses a competitive edge in the global market. Such
tools include emails, social networking, messaging, mobile and smart devices. Email as a
communication tool has been widely used in businesses (Strauss & Frost, 2016). Email has been
used as a useful marketing tool which is cheap and very efficient. With email marketing business
can target their marketing to specific contacts. With targeted emailing, the audience receives
precisely what they need. Customized emails for customers foster good relationships with
customers (Wheeler & Chintagunta, 2016). On the other hand, social networking has been an
effective tool used by some businesses to compete globally. With the advent of social media, a
company can make itself known globally (Hartemo, 2016).

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Social media tools like websites, Twitter, Instagram among others are increasingly being
used by companies to market themselves globally. With social networking, online purchasing of
goods has become common thus attracting even international customers. Mobile and smart
devices marketing is the approach most businesses should use to go global. A significant
proportion of the population spend most of their time in their mobiles and smart devices, thus
marketing a business through mobile or smart devices is effective in reaching more people which
is the goal of marketing (Ulusu, Durmuş & Yurtkoru, 2015). Messaging tools can also be used
in mobile marketing. There is software available to customise messages and send them to the
targeted audience (Todor, 2016).
Walmart is an excellent example of a business that has used the information technology
system tools to enable it to go global. In trying to gain a competitive advantage over its
competitors, Walmart has a website with a perfect user interface. Through the website, customers
can access products easily after logging in into the website through from the product categories.
Also, customers can search for particular products by typing the keyword on a bar at the top of
the website (Todor, 2016). The website is also made in a way that the users can place an order
for a product by adding the product to the shopping cart. After ordering, the product is shipped,
and the user receives it from wherever they are. Wal-mart also uses a database which aids in the
better management supply inventory. The database is dual owned by the store and the supplier,
and it stores all the sales information and can be relayed to the participants in the entire business
process. Additionally, Wal-mart pioneered in using the RFID and the barcode system in the
management of inventory (Todor, 2016).
To ensure efficiency in the delivery of ordered products to the customers, Walmart uses
the package tracking system. The tracking systems inputs include, package details, current

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location, billing information, time of delivery, time-card details, signature of the customer,
clearance documentation of the client and parcel pick up. The processing includes transmission
of purchase data to the central computer where it is stored to enable easier retrieval.
Reorganization of data is done to allow for package tracking using the customer’s account, date,
and driver among other criteria. The package tracking system output comprises the pickup time,
delivery time, package recipient and location while in transit. Also, summary management
report, list of packages ordered by the specific account, the name of the driver or route through
which the parcel is being delivered can be found in the outputs.
By using information technology, Walmart achieves it key business competitive
strategies. One of the key strategies of Walmart is to dominate the market over its competitors
Walmart aims to expand. The website is an effective tool to enable Walmart to dominate a wider
market including the global market (Bourgeois, 2014). The shared database, the RFID and
barcode system have enabled Walmart to achieve the strategy of lower product prices always in
that proper management of inventory reduces irregularities and makes products always available
for customers at cheaper prices. The website offers the customers an advantage of receiving their
packages wherever they are through shipping and also at times in the nearest Walmart store thus
promoting shopping experience flexibility. The package tracking system has also been a way of
gaining a competitive edge over competitors for Walmart (Barney & Ray 2015).
The Walmart information system addresses Walmart’s business objective of expanding
multi-channel schemes and improving it returns. The website can offer exactly what the
customers need and ensure that the customer securely receives their package. The website is an
achievement of Wal-marts objective of developing and executing a worldwide e-Commerce
strategy. Wal-mart has promoted the growth of the worldwide online shopping channel through

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its website as competitors try to copy the approach. By using information technology systems
like the shared database for inventory management, barcode system Wal-mart has been able to
increase its returns by eliminating the irregularities that come with poor inventory management
(Walmart’s Objectives", 2011).
Every company needs to apply information technology to enable it to grow and dominate
the world market. Without the information technology systems that Wal-mart uses, it would not
have been able to achieve its business objectives. Therefore, Wal-mart could have been easily
overtaken by its competitors and thus failed to achieve its business objective.

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References
Barney, J., & Ray, G. A. U. T. A. M. (2015). How information technology resources can provide
a competitive advantage in customer service. Planning for Information Systems, 3(2),
444-460.
Bourgeois, D. (2014). Information Systems for business and beyond. The Saylor Foundation.
Hartemo, M. (2016). Email marketing in the era of the empowered consumer. Journal of
Research in Interactive Marketing, 10(3), 212-230.
Laudon, K. C., & Laudon, J. P. (2015). Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016). Managing and Using Information
Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.
Stair, R., & Reynolds, G. (2017). Fundamentals of information systems. Cengage Learning.
Strauss, J., & Frost, R. D. (2016). E-marketing: Instructor's Review Copy. Routledge.
Todor, R. D. (2016). Marketing automation. Bulletin of the Transilvania University of Brasov.
Economic Sciences. Series V, 9(2), 87.
Ulusu, Y., Durmuş, B., & Yurtkoru, E. S. (2015). Social Networking as a Marketing Tool.
In Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference(pp.
257-261). Springer, Cham.
Van Aken, J. E., & Berends, H. (2018). Problem solving in organizations. Cambridge University
Press.

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"Walmart’S Objectives". Sites.Cdnis.Edu.Hk, 2011,
http://sites.cdnis.edu.hk/students/100295/2011/09/27/walmarts-objectives/. Accessed 8
May 2018.
Wheeler, N. S. S. S. C., & Chintagunta, P. (2016). Personalization in Email Marketing: The Role
of Self-Relevant Non-Informative Advertising Content.