The Impact Of Information Systems On Wal-Mart’s Business Development

Efficiency and Flexibility in Working

In this advanced era of technology, there are many advantages that a business can draw from developing its business structure using software related technology to come up with an appropriate management information system. Wal-Mart has used such a system to improve its efficiency and come up with an efficient structure that has made it become one of the most reputable companies in the United States.

In this report, the use of management information system for strategy and business development is discussed. An analysis is given of how the company has been able to use the system in increasing efficiency and effectiveness within the organization. The importance of using the appropriate strategy to reduce social and economic risks in implementing information systems is discussed.

• Effective Communication

Walmart Company is one of the most reputed organizations throughout the world as it has some of the highest revenues and profit percentage recorded by global businesses. Using information technology helps to ensure that there is business effectiveness and flexibility in working. It ensures that there is effective communication between customers and the organization as it enables storage, tracking and maintenance of information.

• Effectiveness of cost by increasing productivity

Wal-Mart is one of the biggest retail stores throughout the world, and it needs to maintain the cost-effectiveness and productivity to enable it maintain the reputation of the business. The management information system helps the company in cost-effectiveness as it helps the company save a lot of money as information is stored correctly. The company can also keep productivity records and analyse them frequently so that they know if there is need for improvement on the production line. This has helped the company manage its production system well.

• Innovative approach of development

According to Helfat & Peteraf (2015), the use of Information Systems can greatly enhance flexibility of the workplace by providing an innovative approach for establishing emerging technologies. This has helped to increase Wal-Mart’s business opportunities all over the world. This has helped the company to increase its business effectiveness through coming up with innovative solutions.

• Financial Improvement

Wal-Mart is in an industry that is quickly growing hence it needs to keep improving in the type of products offered so that their financial growth is also improved. With the information system, Wal-Mart is able to keep track of its products, keep track of its finances and increase its annual revenue growth (Laudon & Laudon, 2016).

• Maintaining the globalization

In the global competitive business market, retail products need to get the consumer’s satisfactory feedbacks so that the productivity can be globalized. Wal-Mart Company uses the strategy of globalization for reducing the cultural gap and provides the user-friendly products according to the specified culture of the countries. It can be helpful to use the information system to manage globalization for the organization, as the system will help to take care of productivity requirements.

Cost-effectiveness and Productivity

Wal-Mart has used information systems in its rapid development. The system has been able to impact the company positively by reducing staff workload and providing an infrastructure for development of managerial roles. The company has also used the information system to reduce risks for example revenue leakage or product recording (Grabara, Kolcun & Kot, 2014). The development of an information system for Wal-Mart has enabled stakeholders dealing with the company to have a smooth process. The company has also been able to benefit from the advantages of easily adjusting to productivity demands and change of strategy when required.

• Despite the numerous advantages, the information system also has some risks. Security is an issue as it can be a challenge when there is data theft and loss of confidential information. Data theft is very risky as the information can lead to lost market share for the company. These can have adverse effects on the business hence the company has to come up with ways of securing its system.

• As stated by Peppard& Ward (2016), the information system greatly enhances processes by increasing working flexibility. It however needs great financial capability in order to install such a system. The installation of hardware, software, the core processor, and cloud require large amounts. It can reduce the annual revenue percentage of Walmart organization in the US however; the usefulness of the Information System is so large that the equipment cost of using information system by Wal-Mart Company can be considered as less.

• The other risk posed by an information system is the lack of job security as it renders a number of people unemployed. The information system at Wal-Mart is advanced hence uses Artificial Intelligence which can greatly reduce workload through provision of effective solutions. However, it reduces the importance of human resources as much as it increases the efficiency of business practices. The system leads to automatic calculation, measurement, decision-making, accountability, promotion can leads to lack of job security as human resources are rendered unnecessary.

1. Wal-Mart can reduce the risks of using information systems by providing  proper training for employees so that they know how to use it.
2. The company needs to look at the risks especially and ensure that they put measures that will ensure that the system is fully secured and cannot be accessed by hackers (Cresswell & Sheikh, 2013).
3. Wal-Mart needs to keep up with the trends so that it constantly has an updated information system.  The information system should be able to accommodate regular updates.

A Management Information system uses a digital computer-based database to manage the financial or other company information that is produced from various activities done by the company.

As recommended by Podsakoffet al. (2014), the systematic technology of MIS in Walmart Company uses the logistics data gathering by evaluating the control of data by maintaining the external and internal communication within the organization positively.

The structure of a Management Information System is reviewed using an analytical approach. A conceptual framework is used. The contigency based analytical frameworks can help us to understand the strategic growth and value of using IT to develop the infrastructure for Information Systems (Armstrong & Taylor, 2014).

It is a positive approach that explains the positive impact of using IT application by maintaining the appropriate range of cost-effectiveness. Forgetting the innovative and desirable performance from the business, this approach can be used in developing the information system of Walmart Company in the US. This innovative technology can help to develop a strategy of further development and reduce the overall cost of retailing (Meihami &Meihami, 2014).

It is another approach of using the MIS system in order to increase flexibility by exploring resources for using the IT application to improve the entire profitability by increasing the revenue of Walmart per year. It does not only use the company’s assets and resources for developing the emerging technology, but it can also involve the human resources by maintaining the people’s job security using the proper training procedure in the context of business development in Walmart (Pearlson, Saunders & Galletta, 2016).

Managing the information system by using the analytical approach would be useful for improving performance, by developing the entire infrastructure of the business to ensure the effective response of the human resource department and to improve productivity. Maintaining an efficient method of financial accounting, through managing the information system will be able to ensure the success of the recently developed technology which is used for Walmart in order to retain its huge reputation (Leonardi, Huysman &Steinfield, 2013).

The Role of Information Systems in Innovation and Revenue Growth

Response surface approach provides high alignment of the business performance as per strategic concepts, which can help to establish a great strategic expansion from the low ends to high by using the IT development strategy that can be used for implementation of various programs.

Using of the MIS provides positive advantages by enabling an organization to increase their production due to consumer demands, working flexibility and innovative approaches. This leads to rapid profitability. It is calculated that the annual revenue of Walmart in 2017 would be $466 billion approximately. This is possible because of the effective management of the information system for handling the increasing business demands and increasing productivity by maintaining the innovative  and flexible nature of working (Schnackenberg& Tomlinson, 2016).

1. Using of MIS is an effective way that is useful for Wal-Mart as it increases the performance of scheduled works, which implies leads to high productivity.  
2. MIS helps the company to implement the strategic control system by storing backups of the everyday databases and redefining the records.
3. MIS can assist to develop the SWOT analysis within Walmart Company by developing a formula to achieve the success of business planning through an appropriate implementation strategy under the information generator of MIS.
4. It gives the business appropriate decision-making options ensuring the business processing and transactions are done effectively (Schmidt, 2016).
5. MIS in the Walmart Company uses the effective synchronization for the symmetric approach of the designing architecture in order to maintain the effective time management process by implementing well developed new strategy beyond the appropriate estimation.

1. Management the risks of the MIS system for Wal-Mart Company in the US is an important activity that needs to be maintained.
2. Risk management will ensure that Wal-Mart is able to track its risks as pertains to the MIS. This will help the company to develop appropriate strategy as any issues are identified early.
3. According to Ismail & King (2014), risk management will lead to cost controlling by Wal-Mart, as the company will be able to handle risk areas appropriately before they become a problem.  
4. Management of the risks of information security needs to be maintained through technical efficiency that can be achieved by keeping confidential information secure.

Using the help of an effective consultant would be beneficial for developing an information technology-oriented strategy.

1. Being a multinational and one of the most reputed companies in US, Walmart uses some innovative technology by assuring working flexibility, the integrity of the product development techniques and the employability of the workers within the organization (Filieri& McLeay, 2014).
2. Identifying the factors that influence the upgraded information system in Wal-Mart Company helps the company to develop the appropriate strategic solutions that will lead to expansion of the entire business and a global competitive advantage. The annual Revenue of 2016 in Walmart Company is all about $480 billion which is one of the most important factors by increasing the profitability of Walmart Company using the strategy of well developing IT-oriented applications and technology.  
3. Exploring the assets by developing the Information Technology oriented applications and IT emerging technology ensures the huge profitability. For that purpose, Walmart Can get the annual revenue of $466 billion which would be considered as the world’s largest company by revenue as well as World’s largest employer (private company), which deals with approximately 2.3 million employees throughout the world. Human resource is an important factor that can help to explore the growth and effectiveness of the business of Walmart Company.
4. Formal Strategic Planning through strategic Information technology and systems ensures that the Vision of the Wal-Mart Company is met as the system is used in goal-achievement. The system will influence workers positively and involving them will increase their inspiration and improve their attention towards creativity, by maintaining the appropriate flexible working methods within Wal-Mart (Fichman, Dos Santos & Zheng, 2014).
5. Using of Information system provides the appropriate measurement of accounting as well as provides the appropriate conceptual frameworks by maintaining the working days based scheduling.
6. Advanced technology provides an efficient information system that increases the effectiveness of business demands that enables Wal-Mart to compete with the dominant culture of the international business. It can help to establish the well efficient business structure by maintaining the good relationship between the workers and customers.
7. According to Govindan et al. (2015), most of the employees within the organization cannot understand the strategic planning of the company and go to the events against of the company. However, Walmart provides the workers the proper training about the project development for achieving the goal of success which would be considered as one of the most effective factors of any strategic planning of using the information system by maintaining the priority of the scheduled activities of the business in Walmart organization.

Apart from that, there are some important factors for developing the Information vision by using the advanced information system to develop the business structure of Wal-Mart Company.

Dealing with the assets, market developing resources, capital investment and product’s demand can be considered as an example of developing the economic factors through increasing the quality of the productivity, by influencing the decision markets of Walmart Company. It can develop the economic profitability by using IT strategic planning and considering stable dynamic market demands.

As the IT strategy develops the entire business development architecture of Wal-Mart Company, the technical influence would be considered as an effective elements for improving business through time management, decision making via Artificial Intelligence, database management and financial stability by maintaining the information system oriented accountability.

The advanced architecture of using the MIS strategy develops the entire business structure of Wal-Mart Company by providing social promotion. Using the information system maintains the strategy of effective analysis by assuring workers through the use of an effective staff management methodology. It can create the positive and social impacts for maintaining the strategic planning of the business dealing with Walmart Company in the global business market so that it achieves first position.

Being one of the most reputed multinational organizations in US, Wal-Mart aims to ensure that there is continous growth so that it maintains its competitive position in the market. Using the information system oriented technique is useful for developing the business structure, maintaining accountability, increasing the authentic process of taking backups and storages and managing and implementing of the strategic plan so that organizational uniqueness is developed.

1. Using of information System in Walmart Company uses the authentic data security policy within the organization for increasing the possibilities of database management by maintaining the confidentiality beyond the Governmental awareness of Data protection.
2. It should be improved by taking every day’s backups and consists of detailed information about the worker’s skills as well by using the staff management strategy while using Information system.
3. It would be more effective for improving the technical awareness by managing effective accountability hence increasing the customer’s reliability on Wal-Mart services.
4. In using the Information system the company should be concerned with engaging human resources in developing the socio-economic aspects of the business, while integrating the product’s quality and maintaining the assurance of the customers (Dumaisiet al. 2016).
5. Managing of the information System needs to be more secure by providing the end to end authenticated connection by involving the technically feasible equipment for gaining the demands of the business of retailing in Walmart services in the US.
6. Proper training distribution for handling the information system needs to be  done so that there is effective implementation that will ensure Wal-Mart retains its customers and reputation. IT strategic planning can help the business organization by providing effective staff management and decision making policies by engaging the customers while dealing with the business strategy of Walmart company.

Globalization Strategy and Cultural Gap in Retail

Conclusion

The technological influence provides an environment of using the information system strategically, which can reduce the risks and helps to establish an effective environment for providing better business opportunities, business dealings and maintaining sustainability.

Here, there is an evaluation of the positive implementation of MIS in Wal-Mart Company. The business development has been achieved by increasing the growth, demands, and performances of the technology by using various IT applications. This improves the obstruction of capital investment, social promotion, staff engagements and accounting facilities in Wal-Mart Company. It can also help to gain the entire growth of the retailing business of Wal-Mart. The crucial analysis and evaluation by using the appropriate strategy of the information system are discussed. The social and economic risks of using the advanced digital technique of Information system are also discussed.

Reference List

Books

Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education India.

Pearlson, K. E., Saunders, C. S., &Galletta, D. F. (2016). Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.

Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a digital strategy. John Wiley & Sons.

Journals

Cresswell, K., & Sheikh, A. (2013). Organizational issues in the implementation and adoption of health information technology innovations: an interpretative review. International journal of medical informatics, 82(5), e73-e86.

Dumais, S., Cutrell, E., Cadiz, J. J., Jancke, G., Sarin, R., & Robbins, D. C. (2016, January). Stuff I’ve seen: a system for personal information retrieval and re-use. In ACM SIGIR Forum(Vol. 49, No. 2, pp. 28-35). ACM.

Fichman, R. G., Dos Santos, B. L., & Zheng, Z. E. (2014). Digital innovation as a fundamental and powerful concept in the information Systems curriculum. MIS quarterly, 38(2).

Filieri, R., & McLeay, F. (2014). E-WOM and accommodation: An analysis of the factors that influence travelers’ adoption of information from online reviews. Journal of Travel Research, 53(1), 44-57.

Govindan, K., Rajendran, S., Sarkis, J., &Murugesan, P. (2015). Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98, 66-83.

Grabara, J., Kolcun, M., &Kot, S. (2014). The role of information systems in transport logistics. International Journal of Education and Research, 2(2), 1-8.

Helfat, C. E., &Peteraf, M. A. (2015). Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), 831-850.

Ismail, N. A., & King, M. (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business, 1(1-2), 1-20.

Leonardi, P. M., Huysman, M., &Steinfield, C. (2013). Enterprise social media: Definition, history, and prospects for the study of social technologies in organizations. Journal of Computer?Mediated Communication, 19(1), 1-19.

Meihami, B., &Meihami, H. (2014). Knowledge Management a way to gain a competitive advantage in firms (evidence of manufacturing companies). International Letters of Social and Humanistic Sciences, 3, 80-91.

Podsakoff, N. P., Podsakoff, P. M., MacKenzie, S. B., Maynes, T. D., &Spoelma, T. M. (2014). Consequences of unit?level organizational citizenship behaviors: A review and recommendations for future research. Journal of Organizational Behavior, 35(S1).

Schmidt, C. (2016). Discussion. In Agile Software Development Teams (pp. 115-124). Springer International Publishing.

Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), 1784-1810.

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