The Final Act

Dating back to the late 1940's when Sam Walton began his frachise at Ben Franklin's variety store in Newport, Arkansas the birth place of a simple but extremely innnovative idea was born. Sam Walton's pioneering approach to earning in volumne began when he revoultionaized business by deciding to pass the savings he earned to his customers. This decision led to the cornerstone of Walton's buisness strategy for Wal-Marts limitless success.

Through the implementation of an overall cost leadership approach, supply chain management and eventually an IT-based system Sam Walton was able to build the fundation for Wal-Mart's culture. Because of the adoptation of the overall cost leadership approach Wal-Mart developed policies aimed to becoming and to always remain the lowest-cost producer and distributor in the industry. And in achieveing a low cost leadership strategy their strategy of a bottom-line company was critical in acheiving maximum profit while minimizing errors in a process.


Because a low cost leadership approach relied heavily on a supply chain management system an well structured IT system support Wal-Marts activities by tracking inventory and information among business processess. This allowed for a successful ensurance that customers received the merchandise they ordered on a timely manner, while allowing logistics, fulfillment, production, revenue and profit.

Another interesting aspect of Wal-Marts success is their Business Intelligence that enables the organization to extract the true meaning of information so that it can take creative and powerful steps to ensure a competitive advantage. And through effective analysis of data the study of sales trends tracking inventory and other tasks allows Wal-Mart to stay ahead of market. The system is also the foundation for Wal-Mart's Retail Link decision-support system that Wal-Mart's suppliers use to study item-level inventory and sales information.


Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Wal-Mart more than 40 years ago. Wal-Mart continues to lead the market in buying low and selling low.

Going Green

As Wal-Mart continues to find innovative ways to become a greener company and increase renewable energy use. Walmart announced on September 20, 2010 that it will expand its renewable energy efforts, through lighter thin folm solar technology. Through Wal-Marts solar panel technology Wal-Mart will possess the capability to become a more efficient company, which will allow them to lower their expenses and potentially help markets for new technologies. Kim Laster, Wal-Marts vice president of energy had this to say about there innovative appraoch "developing and incorporating new renewable energy sources, like this film, reduces energy prose risk and aligns very well with out commitment to solving business challenges through technology."

When this project is completed it will be expected to:
▪supply up to 20 to 30 percent of the total energt needs for each location;
▪ produce up to 22.5 million kilowatt hours of clean energy per year - enough to power more than 1,750 homes annually;
▪ avoide producing more than 11,650 metric tons of carbon dioxide equivalent annually, equal to taking more than 3,000 vehicles off the road for a entire year;
▪ add to the 31 current solar installations Wal-Mart has in California and Hawii.

This solar panel addition to Wal-Marts growing environmental efforts will imporve their promise of someday being able to use a number of technologies around the world to reach its goal of being supplied by 100 percent renewable energy.

Networks and Connecting Devices

The Network
Because Wal-Mart is a globally recognized company the use of satellite communication system from Hughes Network Systems is essential. Since the implementation off satellite communication Wal-Mart has installed the system throughout their stores across the nation. The benefits of this communication system was to make credit authorizations faster, and to also have a much faster communication from one store to another, Wal-Mart’s headquarters and among all other facilities.


Interface
For large commercial functions such as Wal-Mart, their IT department has decided to use an Ethernet card. An Ethernet card is the most common type of network interface card, the card runs to a hub or switch, which allows you to use cables with different wiring called a crossover cable to plug directly into another computer or printer.


Media
Communications media are the paths, or physical channels, in a network over which information travels. All types of communication media are either wired or wireless. Wired communications media transmit information over a closed, connected path. Wireless communications media transmit information through the air. The forms of wired and wireless communications media include:

Wired
Twisted-Pair Cable
Coaxial Cable
Optical Fiber

Wireless
Infrared
Microwave
Satellite

Wal-Mart operates under a wireless network communincation because it is extremely feasible for telecommunication across great distances and very convienent when one or more parties may be in motion.


Software
Like large compnaies Wal-Mart uses both types of communications media in their stores to transmit communication and radio waves in order to connect network hardware devices. Communications media transport information through paths or physical channels in a network to computers and the connecting devics. Each computer is programmed with the software that supports the movement of information. The software is either modem software / or a network operating system.


Connecting devices/ Components
The main responsibility for a network is that it is able to connect a computer on the network acting as a switchboard for information intergration. Wal-Mart’s systems are connected by Novell LAN and they also provide productivity service for Wal-Mart.




Speed of the Internet
Wal-Mart uses frame relay on their DS3 network that runs at 44.736 Mbps. Frame Relay is a service that can be set up over high speed lines such a DS3 to create virtual circuits connecting multiple offices.
The virtual circuits provides network connections individual offices to one another without having to run physical lines. Wal-Mart has deployed their lastest project called the Vendor Frame Network, which connects about 20 of Wal-Mart’s largest suppliers to its frame via PVC connection.


Voice over IP?
Unlike traditional types of comminication which were originally developed to transmit voice telephone calls. (VoIP) allows you to send voice communications over the Internet and avoid the toll charges that you would normally receive from your long distance carrier. It is a means of transmitting a voice telephone call over a computer data network. Wal-Mart integrated wireless (VoIP) systems that use an IP network backbone.


Four areas of Network Security
The four principles areas of network security are confidentiality, authenticity, integrity, and availability.
Confidentiality means that information can be obtained only by those authorized to access it, whihc can be summarized as keeping secrets a secret. Wal-Mart has adopted a technology called Secure Sockets Layer (SSL), which encrypts sensitive information before it is sent over the Internet.
Authenticity means that information really comes from the source it claims to come from. It is important to be aware of authenticity of important documents such as military orders, medical disgnoses, and directions to a stockbroker.
Integrity means that information has not been altered, much like authenticity. Wal-Mart has created fire walls to help protect threats to integrity like network transmissions and unsolicited Web servers that allow thier content to be relaced. Availability is a service or resource that is available when its supposed to be. In order for Wal-Mart to reach orders to its customers on time they have an IDS which watches network traffic for intrusion attempts.

Domain Name
walmart.com

"Every Day Low Prices"

Wal-Mart's commitment to low-price, low-wage, globally sourced model is the target concept that made Wal-Mart into the most powerful retailer in the world. Wal-Mart's business strategy is rather simple in that the retail super giant sells a variety of products at discount prices which has enabled the company to gain greater control of the retail industry while demanding manufacturers to lower their prices.
Wal-Mart's sophisticated distribution system and information technology allows Wal-Mart to track inventory which has significantly improved its efficiency and productivity making it far more profitable than other retailers. Wal-Mart currently sets the precedent of efficent distribution systems and effective telecommunications structures. In addition to its overall business strategy, Wal-Mart's growth strategy is strikingly different from most other big end retailers because its close proximaty to hubs and smaller towns has made Wal-Mart into what it is today.

We Sell It All Even Hardware!

Wal-Mart's hardware consists of a monitor, keyboard, scanner, and computerized registers.Under Wal-Marts Electronics Department you will find Wal-Marts vast selection of elecronic hardware. From labtops, printers, cameras, Blue-Ray Players, Cameras, and Camcorders Ipods, cell phones and service.

Wal-Marts Computer selection range from:


Labtops: Acer, Coby, Toshiba, Compaq, HP, Sony

Desktops: Acer, HP, eMachines, Compaq, Dell, Lenovo, Gateway

Netbooks: Acer, Coby, Dell, Toshiba, eMAchines, HP, Sony

Wal-Mart distributes labtops, desktops and netbooks.

In 2006 Rollin L. Ford was appointed as The Executive Vice President and Chief Information Office (CIO) for Wal-Mart Stores, Inc. He oversees the company's global informations systems division (IT), which includes hardware, software, databases, and networks.

In Wal-Mart's decision to purchase SAP's ERP Financials simply shows that Wal-Mart's IT strategy is shifting in favor of packaged applications. SAP press released this statememt form wal-Mart executives "Wal-Mart had purchased ERP Financials to support the retailer's global expansion and its need to efficiently respond to changes in the business and regulatory landscape." Purcahsing and distributig packaged software applications is one way Wal-Mart can regain its IT dominance. Currently Wal-Mart sells Windows Media Center, Windows XP, Unix, Mac OS, Windows CE, and Palm OS.

Wal-Mart does not currently operate on the Linux operating system. Wal-Mart's operating system are Retail Link, EDI, ERP, and SAP. Wal-Mart abandoned the sale of Linux because Windows dominance in the software markets.

Wal-Mart operates under Cisco’s Oracle Warehouse Management, and NCR Corporation’s Teradata Database. Wal-Mart sells application software such as The Microsoft Suite which included Microsoft Word, Microsoft’s Office Home, and Excel. Microsoft’s Office Home & Business, QuickBooks Pro 2010, Karpersky Internet Security 2010, Norton Internet Security 2010, Norton Antivirus, Microsoft’s Publisher, MacAfee Total Protection 2010, Adobe Acrobat Professional, The Print Shop, Cyberlink PowerDirector Ultra, Turbo Tax, and Nero Multimedia, to name a few.

One of the many files that are used by Wal-Mart is an on-line ordering system. Files in this catagory include basic information such as customer number, delivery address, order date, order number, item quantity and amount. Wal-Mart also stores files on its employees,with information such as date hired, employee number, and overall employee information.

Because of Wal-Mart's enormous size the company operates on several database systems. Wal-Mart's main databases is the Inventory Management System, which helps to maintain and regualte new inventory. The Oracle Warehouse Management System which supervises ongoing operations is crucial to Wal-Mart's daily transactions and operations. Wal-Mart operates with a database that is more than one half a petabyte.

Wal-Mart operates with Cisco which is the Oracle Warehouse Management System’s brand. Wal-Mart operates with NCR Corp’s Teradata Database which works in combination with the database brand Internet Retail Linka and EDI.

Rollin Ford became Wal-Mart’s Chief Informations Operator in 2006.

Wal-Mart’s managers receive reports from a system called Collaborative Planning, Forecasting and Replenishment. An inventory management initiative that has been implemented since operation in 1997.

Wal-Mart creates inventory, budgeting, forecasting and planning reports.
Wal-Mart does in fact works with OLAP. OLAP is unique because it has the capability of manipulating and analyzing data from different perspectives which allows Wal-Mart to build an advanced merchandise planning and reporting system.

Wal-Mart operates with a data warehouse called Oracle Warehouse Management. Because of unexpected growth of information, Wal-Mart executives decided to increase to 24 terabytes with 30 decision support applications. And by 2004, Wal-Mart increased its warehouse data to 423 terabytes.
Wal-Mart also operates with data-marts. POS data allows Wal-Mart’s inventory management to see the products availability chart.

Neo Vista is the only type of data mining that Wal-Mart has operated on. Neo Vista allows Wal-Mart to analyze point-of-sale from each store.

Rob Fusillo is the Director of Replenishment Information Systems at Wal-Mart.

Wal-Mart works with SAP’s ERP Financials, which is software that helps Wal-Mart combine all the different departments into a single system.

The New Era of E- Commerce

As far as e-commerce is concerned Wal-Mart has appointed Wan Ling Martello to lead the e-commerce efforts. It operates to help consumers quickly survey through their desired items and to be able to purchase online, instead of purcahsing goods from an actual store. E-Commerce is to allow consumers to preview the products prier to making the purchase.

Wal-Mart currently works with web-based applications on a Cisco Network. In the early 1980s, Wal-Mart started the technology era in order to create a more acurate inventory system, a better communication system from department stores across the country, and to be able to place orders directly to its suppliers. By the 1990s Wal-mart was operating with Retail Linka, which helped supplier forecasting, planning, producing, and shipping. Retail Linka remains to be Wal-mart’s internet application.

Wal-Mart holds four types of marketing mix, price, promotion, place, and most importantly its products. Wal-Mart has an incredably wide selection of products, ranging from foods, sporting goods, clothing, and electronics. Wal-Mart has a large number of ads circulating on a weekly basis and an uncomparable promotion campaign “everyday low prices.”

Wal-Mart accepts a variety of payments, from credit cards to gift cards. In-store, on-line and self check out points Wal-Mart accepts ATM Cards, Discover, Visa, Mastercard, American Express, and Wal-Mart’s Credit and Gift Cards. On-line Wal-mart accepts payments via Pay Pal, eGift cards, and Bill Me Later.