iot walmart-case study

Innovating WalmartRoopali Aneja, Aravind Gopalakrishnan, Briana Lemon, Sohan Rane, Praveen Sundar

Wal-Mart in Numbers

● 11,000 stores ● 27 countries● $15 billion annual revenue● 2 million employees● Market Share: 63% ● Closest Competitor: Costco (17%)

Business Strategy● Maintain Cost Leadership● Product Differentiation● Control of IS / Tech Innovation● Enterprise-wide Customer Satisfaction

IS Strategy Triangle

Porter’s Five Forces

Industry AnalysisD’Aveni’s Hypercompetition (7’S)1. Superior Stakeholder Satisfaction2. Strategic Soothsaying3. Positioning for Speed4. Positioning for Surprise5. Shifting the Rules of Competition6. Signaling Strategic Intent7. Simultaneous and Sequential Strategic Thrusts

Firm Analysis

Dynamic Capabilities: ● Business model - Reduce costs of supply chains● Successful inventory & vendor management● Supply Chain Management● Customer Relationship Management● Local market outlets (US) with outside retailer● Use of NodeJS for mobile applications

Alignment With Business Strategy

● Applications - Cost Leadership● Infrastructure - Enterprise-Wide

Customer Satisfaction● IS Organization - Cost Leadership● Outsourcing - Tech Innovation● Governance Style - Product

Differentiation

Internet of Things

● Sensors● Connectivity● People ● Processes

Internet of Things - Example

Business Strategy : Enterprise-wide customer satisfaction

Gartner’s Hype Chart

IoT Maturity - 5~10 years

Documents: Devices:

Source: Visual Capitalist

A Value-Added Solution

Empty ShelvesGrumpy CustomersUnderstaffed Stores

$3 Billion Opportunity

To Adopt or Not Adopt?

1984: Barcode & Satellites2003: RFID2015: IoT?

QUESTIONS?