INFORMATION SYSTEM IN

PRESENTED TO : Sir Mahesh AhujhaPRESENTED BY : Zeeshan Ali Khan

Information System

Information system: Set of interrelated components Collect, process, store, and distribute information Support decision making, coordination, and

control Information vs. data

Data are streams of raw facts Information is data shaped into meaningful form

Management Information System

System that provides information needed to manage organizations effectively and efficiently.

Objective of MIS

To improve the Management decision making

By providing accurate and up-to-date information about the key aspects of organizational performance.

History Of WAL-MART

SAM WALTON (MARCH 29, 1918 – APRIL 5, 1992)

a businessman from Arkansas, began his retail career when he started work on June 3, 1940.

On July 2, 1962, Walton opened the first Walmart Discount City store located at 719 Walnut Ave. in Rogers Arkansas.

Has undergone several changes in its image(specifically logos)

About

WalMart is the largest and most profitable retailer on the earth

the Worlds second largest public corporation

Walmart has 8,500 stores in 15 countries, under 55 different names

And have around 2 Million employees

Their motto:

We save people money so they can live better

The Reason:

This phenomenal growth of Walmart is attributed to its continued focus on customer needs and reducing cost through efficient SCM Practices.

Inventory Management:

Walmart invested heavily in IT and communication systems to effectively track sales and merchandise

inventories in stores across the country. With the rapid expansion,

it was essential to have a good communication system.

Hence, Walmart set up its own satellite communication system in 1983.

Inventory Management:

Employees at the stores had the “Magic Wand,” a hand-held computer which was linked to in-store terminals through a radio frequency network.

These helped them to keep track of the inventory in stores, deliveries, and backup merchandise in stock at the distribution centers.

Hub and spoke system

In the early 1970’s Walmart introduced the centralized distribution system. HUB & SPOKE

Goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ (hub), then dispatched to the individual stores (spoke).

HUB and SPOKE:

The hub and spoke system enabled Walmart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities;

POS (point-of-sales)

Order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system.

Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves.

Quick Replenishment

Since the floor area of any Walmart store varied between 40,000 to 200,000 square feet, movement of goods within the store was an important part of logistics operations.

Walmart made significant investments in IT to quickly locate and replenish goods at the stores.

Retail link system

In 1991, Walmart had invested approximately $4 billion to build a retail link system.

More than 10,000 Walmart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories.

Details of daily transactions (~10 million per day) were processed through this system.

Types Of Data

Jane data center is the data center of Wal-Mart which has a capacity of 460 terabytes of data

it has helped Wal-Mart become the biggest retailer in the world,

JANE DATA CENTER

Retail Link System

According to the econometric society, Wal-Mart deals with the following data: Store openings data Store closing data

It also used a software Called GAUSS DATA SETS for its TPS. Which included: Sales Operating profits Distribution miles

Type of information

When UNIVERSAL BARCODE was established the manufacturers adopted a common labelling

Wal-Mart became very  good at using  the information behind the bar code due to its sophisticated technology to track inventory.

(as we have discussed earlier in the in the Presentation)

Professor Edna Bonacich put it simply: "The shift in Wal-Mart's power was when

it started to really develop its control over information technology”

The key to that was the power of the information that is hidden in the bar code.

No one  has used the technology as efficiently as Wal-Mart.

Transaction Process System (TPS):

The input of TPS is raw data The processing involves with the

summarizing, recording, and merging the data and the output is in the form of report.

Example of TPS is Point-of-sales.

Example of TPS

At the supermarket, the cashier has to scan the product with the bar code that the input of system.

To use the Barcode the company has to develop Universal Product Code (UPC)

Universal Product Code (UPC) a standard method for identifying

products with numbers and coding those numbers as the type of bar code.

And it had many benefits found by Wal-Mart, were it

– Ensure accurate pricing– Improve efficiency– Reduce Shrinkage– Improve communications

Satellite System

1. Data collected and analyzed

2.Observing Merchand-ise flow, overstock, discount

3. Video transmissions, credit card authorizations, and inventory control

Management Information System (MIS)

MIS is the system provides the actual performance report of the company that use in middle management, which created based on the data from TPS.

They use a tool called EDI for the MIS

Electronic Data Interchange (EDI)

EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold.

On receiving information about the sales of various products, the suppliers shipped the required goods to Walmart’s distribution centers

Electronic Date Interchange (EDI)

EDI is Used for:

1.Forecasting2.Planning3.Replenishing 4.Shipping applications

Decision Support System (DSS):

DSS should be the effectiveness of decision makers rather than on increasing the efficiency of data storage and retrieval.

Some of the benefits of DSS are as follows.

1.DSS improves individual productivity.2.it improves the decision quality and speed up problem solving.3.it improves interpersonal communications.4. it improves decision making skills.5. Increase organizational control

DSS in Walmart

A number of strategic DSS  has been implemented. Which are as follows: sale data warehouse . including retail link

Walmart collects sales data from stores in its data warehouse ,

Retail link consolidated data into useful reports  and distributes it to suppliers with weekly forecasting information .

Recommendations

It's awesome the way Walmart control its information system.

Its accurate enough manage everything.

The Satellite System is perfect in collect information & share it easily between the supplier and Walmart.

Refrences

http://seo-kisumu.hubpages.com/hub/KNOWLEDGE-MANAGEMENT-A-CASE-STUDY-OF-WALLMART. http://wal-m.blogspot.com/p/information-systems.html.http://help.walmart.com/app/answers/detail/a_id/6.

THANK YOU