Assignment on Management Information System

NATIONAL INSTITUE OF TECHNOLOGY KURUKSHETRA

ASSIGNMENT OF MANAGEMENT INFORMATION SYSTEM ON WAL-MART

SUBMITTED TO: Mrs. Sakshi Sethi Asst. Professor Department of Business Administration NIT Kurukshetra

SUBMITTED BY: Kishore Kumar Roll No. 4121052 MBA

Assignment on Management Information System

MANAGEMENT INFORMATION SYSTEM

DEFINITION: MIS (management information systems) is a general term for the computer systems in an enterprise that provide information about its business operations. It's also used to refer to the people who manage these systems. Typically, in a large corporation, "MIS" or the "MIS department" refers to a central or centrally-coordinated system of computer expertise and management, often including mainframe systems but also including by extension the corporation's entire network of computer resources. The Management Information System (MIS) is a concept of the last decade or two. It has been understood and described in a number ways. It is also known as the Information System, the Information and Decision System, the Computer- based Information System. The MIS has more than one definition, some of which are give below. The MIS is defined as a system which provides information support for decision making in the organization. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. The MIS is defined as a Computer. Based Information System. PROCESS: Management Information Systems are an efficient and methodical approach to collecting, storing and processing raw data that underlines what needs to be done in order to handle an enterprise effectively. In the beginning, business computers were used for the practical business of computing the payroll and keeping track of accounts payable and receivable. As applications were developed that provided managers with information about sales, inventories, and other data

Assignment on Management Information System

that would help in managing the enterprise, the term "MIS" arose to describe these kinds of applications. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, project management, and database retrieval applications. In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points: Handling of a voluminous data. Confirmation of the validity of data and transaction. Complex processing of data and multidimensional analysis. Quick search and retrieval. Mass storage. Communication of the information system to the user on time. Fulfilling the changing needs of the information.

ANALYSING DATA: The data stored in Management Information Systems covers various categories, such as technologies, people, documents and procedures. Faster and more systematic than manual consulting and handling, this technology can analyse and collate raw data that it stores into reports which outline trends and patterns in decision-making and organisation functions.

Managers can then refer to these reports in order to systematically plan and direct business operations. These reports can also include knowledge about hypothetical scenarios resulting from prospective management-changing decisions. This technology not only saves time, allowing for managers to make informed decisions more quickly, but also assist in helping those with authorisation to the information to better understand the enterprise and the nature of the industry. ROLE OF THE MANAGEMENT INFORMATION SYSTEM

The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the
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Assignment on Management Information System

needy destinations. The system is expected to fulfil the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing. The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and helps them further in decision making at the operations level to correct an out of control situation. The MIS helps the middle management in short them planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation. The MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vita role in the management, administration and operations of an organization.

WAL-MART
An Overview: Wal-Mart is an American multinational corporation running a chain of large discount departmental stores and warehouse in several countries. Wal-Mart inc. was started in 1962 and incorporated officially in 1969 and began trading stock as a publicly held company in 1970. At current, Wal-Mart international experiences a rapid growth and it has acquired 4, 573 stores along with 730, 000 associates evident in 14 countries that are out of the US continent. The company has wholly owned operations in Brazil, Argentina, Canada and the United Kingdom. In addition to these wholly owned international operations, Wal-Mart has several joint ventures in China as well as a number of majority owned subsidiaries. Wal-Mart operates under different banners in most of its international stores but they all work towards the same goal; enabling their customers save money and live a better life.

Assignment on Management Information System

Management Information Systems used by Wal-Mart.

1. Customer Relationship Management (CRM): Description: A Customer Relationship Management (CRM) system model embeds modules like Business-to-Business (B2B) CRM, Marketing Automation, Sales Force Automation, Customer Service and Support, Partner Management, Contract Management and Creation, Project and Team Management, Business-to-Consumer (B2C) CRM, Internet Sales, E-Mail Response Management, B2C Analytics and Business Intelligence, ther CRM-Related Application Areas, E-mail marketing, Customer reference, Commission management, Field service, Relationship capital management, Survey software, Sales proposal software, Product and price configuration, Web conferencing, Mobile computing, Channel management, Retail solutions, Technical Functionality and Support, Business Functionality, Technical Functionality, and Ongoing CRM Solution Support. The customer relationship management in the wall-mart company And its components: i. Contact and account management. ii. Sales. iii. Marketing and fulfilment. iv. Customer service and support. v. Retention and loyalty programs. I. Contact and account management. Wall mart website provides highly excellent customer service account and contact management: II. Sales: Wall mart works on the cross-selling way the customer come to us to buy something he want but when he come he will buy things that he doesnt expect to buy .wall mart provide every order from every type to every customer at any time. Mart has several departments specialized in everything the customer interested in and we will find these departments here:-

Assignment on Management Information System

Wal-Mart departments sales: Every customer will find any information and question about how he order their orders In the ordering tab in the websit Products and Merchandise. How to Order How to Track Your Orders Security and Privacy Shipping and Returns Safety and Privacy on Wal-mart.com Shopping Tips

III. Marketing and fulfillment. Wal-Mart has always aimed at increasing sales through its friendly prices. Wal-Mart has been aggressive in reversing it's 7 consecutive quarters of same store sales declines with a variety of marketing tactics. Wal-Marts Grocery business continues to be a growth factor for their company's business strategy and they are rapidly embracing social media and developing mobile strategies at a rapid clip. Wal-Marts Social Media and Mobile Strategies: Making Wal-Mart "virtual" to be with the customer anytime and anywhere launching new Wal-Mart Shopping Apps. Getting Close to You through Your Smart-Phone " It allows a receipt to be sent to a Smartphone in place of a paper receipt. IV. Customer service and support. Who want to contact : Wall mart give the customer excellent care and interesting and call u any time through email, telephone and fax to be in touch with you and in your events they

Assignment on Management Information System

send a messages to your telephone and emails. Also, they send you the new offers of their orders daily, weekly and monthly. V. Retention and loyalty programs. There is a key feature about wall mart loyalty program:

Supporting its brand promise of Everyday low prices with weekly price scans of 60 competitors to make sure they deliver on the promise

A renewed layaway payment plan to ease the pain of major purchases for customers Re-stocking it shelves with a broader selection of goods, reversing an attempt to streamline inventory and offering more choice to customers

Giving attention to private label product lines, focusing on its George clothing line

2. Enterprise Resource Planning(ERP): Enterprise Resource Planning (also known as ERP) is an effective approach that most businesses implement to enhance their productivity and performance. Before implementing this system, it is necessary that business owners and board members have an extensive look at the benefits and risks associated with the use of the ERP system. Known as a systematic approach that most industries use to organize resources as well as improve efficiency and performance, Enterprise Resource Planning (also known as ERP) is usually implemented by corporations to centralize the databases and functions of every department in a single system. The system features various components including software modules, which integrate and manage all the business and private records of firms. With the proper use of this system, firms can decrease their losses and increase their profits

Business Challenge: The key success factor for the worlds largest retailer, Wal-Mart has been its home grown information system. In fact, Wal-Mart hosts the worlds largest data centre at its headquarters in Bentonville, Arkansas. When the 400 billion dollar empire started expanding world-wide,

Assignment on Management Information System

Wal-Mart began to realize that its home grown ERP system no longer supported the business outside the United States. Its Information System was designed to suit the business environment in the USA. As one of Wal-Marts international ERP partners, DWS spearheaded Wal-Marts International Real Estate ERP transformation.

How did DWS help Wal-Mart: Implementing a packaged solution for the worlds biggest retailer was a challenging task. This was the first time Wal-Mart chose a packaged solution over a home grown IT solution. Thus, DWS had to handle a dual task of change management as well as implementation of an IT solution. In a period of only 6 months, DWS implemented JDE awards in over 6 countries, without exceeding the stipulated budget! Some of the countries included in this program were Canada, China, Japan, Puerto, Rico and Mexico.

The words, we followed 80% localization and 20% international standardization. With WalMart having special tax in agreements with China we were able to attain 90/10 level of localization. We implemented the following solutions: General Ledger (G/L), Accounts Payable (A/P), Accounts Receivable (A/R), Procurement Job Cost and Property Management modules The Property Management module with tracking facility for lease documents, renewal date and monthly reoccurring billing. Japan had a special requirement called the shokatenant processing. The tenants used WalMarts Point of Sale (POS) system and Wal-Mart received the money and then paid the tenants bi-monthly for their portion of the sale. Government reporting.

3. Knowledge Management System (KMS):

Knowledge management refers to the practices and strategies that a company uses in an attempt to create distribute and enable adoption of strategic insights and specific experiences (O'Leary, 2002). This knowledge can be embodied in either individual or organizational practices or processes. Successful business firms and companies have committed hefty
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Assignment on Management Information System

investments towards development of internal knowledge management efforts. One such company is Wal-Mart Stores Inc. which through this effort has emerged the worlds largest corporation.

In its efforts at developing and nurturing insightful knowledge management skills, Wal-Mart focuses on its organizational objectives which specifically include improved business performance, innovation, competitive advantage as well as continuous improvement of business operations and processes.

Importance of Knowledge Management System (KMS)at the Wal-Mart stores Wal-Mart stores have created an indelible mark in the retail business industry. The giant chain store has an overwhelmingly effective knowledge management program that has

enabled it to retain its competitive advantage even at times of turbulent economic situations. The corporations goals are being achieved simultaneously by strictly adhering to business aims and balancing operations with the economic growth. Accordingly, economic gin as a result of positive knowledge management strategies is achieved throughout. The corporations knowledge management strategies have enabled it to focus its strategic business operations into cutting operational cots and building up a value for its shareholders. Knowledge can be classified into three broad forms, namely public, shared and personal knowledge (Alavi, 2001). Public knowledge can be accessed through public domains such as internet or books. Shared knowledge on the other hand refers to knowledge that is exclusively held by employees and is only used in work. Personal knowledge is the least accessible knowledge and is used mainly in work and daily life. Through focused differentiation, the Wal-Mart has succeeded in cultivating enormous productivity and making. The corporation is now the leading of its type in not only the USA but the whole world itself. Nevertheless, the Wal-Mart stores have encountered numerous challenges in their attempt at introducing various knowledge management strategies. Change management analysis has greatly overridden the corporations organizational growth (Alavi,
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Assignment on Management Information System

Maryam, Leidner & Dorothy, 2001). Effective knowledge management at the Wal-Mart stores is largely contributed by its ushering in of big financial gains on annual production. This important and positive trend has reigned over all major stores associated with the corporation all over the world. The Wal-Mart stores are now ideal for businesses, organizations and units at the modern global age. Improved employee skills as one way of enhancing effective knowledge management by the corporation has proved extremely successful in countering challenges encountered threatening its overall mission (O'Leary,2002). The stores effective and reliable knowledge management skills have enhanced efficiency in service delivery and customer care as well as development of great competition. The corporation now seems success or failure of its business as a deliverable of staff productivity. The managements intellectuality focuses on strengthening the staff by way of

transformational leadership. The company plans language to its employees loyalty, diligence and good conduct and this has gone along way into ensuring long service in duty by the employees. Apt knowledge management in the company has enabled it to satisfactorily solve all issues related to organizational practices and conduct as well as make decisions and discover such issues as animosity. How the stores apply Knowledge Management in Human Resource Management Human resource strategies refer to the ways in organizations and business firms select, recruit, train and nurture their workforces for effective performance and delivery of services. Different human resource strategies are implemented by different organization and much as this would be different, they all achieve similar or almost same goals. Effective human resource strategies have enabled Wal-Mart to implement policies for management of its vast human resource. The application of effective human resource management strategies in the company is not a new phenomenon and this has enabled it receive much recognition in the recent years all over the world. As an integral part of knowledge management, Wal-Marts human resource management strategies are used chiefly to enable the organization and its vast array of branches manage their managerial activities through coordination of employee related processes. The effective

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Assignment on Management Information System

use of these strategies has resulted to improved return on investments and has minimized the companys financial risks. This has largely been achieved by integrating skilled workforce with the firms existing work force. This is done in line with the organizations future business plans and requirements for securing its future success and survival. For that case, the organization implements human resource strategies taking into account the current state of its business operations as well as its future goals and objectives (O'Leary, 2002). As Wolpert, (2001) says, the success of an organization more especially in the field of knowledge management is determined mainly by the kind of Human Resource management

strategies displayed. Accordingly, Human Resource management strategies involve the power of an individual to persuade and inspire others towards attaining the objectives and goals of the organization. Managers across all Wal-Marts branches motivate their workers to achieve the objectives and goals of the organization and out-do their rivals. As leaders, they daily interact with workers freely and offer directions personally and within teams, various departments as well as divisions. The effective and sound management of Wal-Mart is a big strength to the organization in achieving is objectives and remaining competitive (Wolpert,2001) . Effective human resource management has contributed immensely to redefining knowledge management at Wal-Mart stores. In its efforts to remain competitive, the company has made substantial progress in relation to restructuring its long term objectives so that it can stand a better chance of achieving its goals. Just like any other business, the Wal-Mart Stores Inc. has undertaken tremendous transformations with regard to adoption and implementation of the best knowledge management strategies. As an organization, it has found it useful for it to learn to manage its people and business operations in a well planned and coherent framework which is well reflected in the business strategy. This way, all its branches have been able to ensure that all aspects of personnel management are reinforced for the purpose of improving and developing the performance of the business.

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Assignment on Management Information System

Zetie, (2003), argues that there is no any knowledge management strategy that can transform the operations of a multi-branched business organization. A particular player an industry will have to define and develop specific knowledge management strategies that are unique to their aspirations, goals and performance objectives. Thus, they should take into account the demands of other players and stakeholders as well (Zetie, 2003). Majority of typical knowledge management strategies last for a relatively very short while and may require to be re-evaluated on half-year or annual basis to ensure that the strategies are both in line with the direction of the companys objectives and also take into consideration the situation in the market and the world. Effective knowledge management has helped Wal-Mart define its goals and also acts as a guide to help employees acknowledge their importance in the company and how to link this with the companys overall objectives. Wal-Marts concept map The need to have a sound knowledge management system is one key driving force behind Wal-Marts success. The corporation maintains and acts upon awareness in a potentially changing scope and as such, the directions of many of its investment projects has been the major compelling factors in determining which strategy to best adopt. In this regard, WalMart regularly has established and regularly assesses the scope of its knowledge management Endeavour. The corporations experience has shown that failure to keep track of changes in knowledge management can lead to adverse elicitation effort that may well go into directions that do not serve the goals and aspirations of the business (Terreberry, 1968). Wal-Marts actual elicitation of knowledge takes different forms and these can be categorized broadly into those which are direct and the indirect. Direct methods of eliciting knowledge occur in collaboration with expert programs and are very efficient in knowledge management. These are chosen from a vast array of techniques some of which are based upon interviews and analysis of familiar techniques. Indirect methods of eliciting knowledge are on the other hand enhanced through study or use of relevant information resources as can be identified by knowledge engineer. Knowledge management and elicitation process as such leads to creation of concept maps that are included in the corporations knowledge models. The figure below gives a generalized model that is used by Wal-Mart in eliciting knowledge as part of its knowledge management process;

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Assignment on Management Information System

4. RFID Technology: RFID stands for Radio-Frequency Identification. The acronym refers to small electronic devices that consist of a small chip and an antenna. The chip typically is capable of carrying 2,000 bytes of data or less. The RFID device serves the same purpose as a bar code or a magnetic strip on the back of a credit card or ATM card; it provides a unique identifier for that object. And, just as a bar code or magnetic strip must be scanned to get the information, the RFID device must be scanned to retrieve the identifying information. Implementation of RFID at Wal-Mart: In efforts to implement new technologies to reduce costs and increase the efficiency, in July 2003, Wal-mart asked its top 100 suppliers to be RFID compliant by January, 2005. Wal-Mart planned to replace bar-code technology with RFID technology. They believed that this replacement would reduce its supply chain management costs and enhance efficiency. Because of the implementation of physically scan the bar RFID, employees were no longer required to

codes of goods entering the stores and distribution centers,

saving labor cost and time. Wal-mart expected that RFID would reduce the instances of stock-outs at the stores.

5. Collaborative Planning, Forecasting and Replenishment (CPFR):

Collaborative Planning, Forecasting and Replenishment (CPFR) a trademark of the Voluntary Interindustry Commerce Standards (VICS) Association), is a concept that aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain. Information shared between suppliers and retailers aids in planning and satisfying customer demands through a supportive system of shared information. This allows for continuous updating of inventory and upcoming requirements, making the end-to-end supply

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Assignment on Management Information System

chain process more efficient. Efficiency is created through the decrease expenditures for merchandising, inventory, logistics, and transportation across all trading partners.

Implementation of CPFR at Wal-Mart: By the mid 1990s, Retail Link had emerged into an Internet-enabled SCM system whose functions were not confined to inventory management alone It also covered collaborative planning, forecasting and replenishment (CPFR). In CPFR, Wal-mart worked together with its key suppliers on a real-time using the Internet to jointly determine product-wise demand forecast. CPFR is defined as a business practice for business partners to share forecasts and results data through the Internet, in order to reduce inventory costs while at the same time, enhancing product availability across the supply chain. CPFR: Hard to implement Though CPFR was a promising supply chain initiative aimed at a mutually basis by

beneficial collaboration between Wal-mart and its suppliers , its actual implementation required huge investments in time and money A few suppliers with whom Wal-mart tried to implement CPFR complained that a significant amount of time had to be spent on developing forecasts and analyzing sales data

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