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IT at Walmart and Kmart - keeping it On-Topic

From: John Kanagaraj <john.kanagaraj_at_hds.com>
Date: Fri, 12 Dec 2003 09:49:41 -0800
Message-ID: <F001.005D9B27.20031212094941@fatcity.com>


Just trying to keep this On-topic! See extract of Wal-Mart's IT approach vs K-Mart

http://searchcio.techtarget.com/originalContent/0,289142,sid19_gci938869,00. html?track=NL-35

Wal-Mart's "step change" approach to IT investment during the 1990s is a great example. First, the company installed software to manage the flow and storage of products through its far-flung network of suppliers, warehouses and distribution centers. Once it had automated product flow, it focused on using IT to coordinate its operations more tightly with those of its suppliers, leveraging its greater efficiency. With that smoother coordination, Wal-Mart could invest effectively in technology to plan the mix and replenishment of its goods. Finally, after integrating all these capabilities, the company built a data warehouse that uses information pulled from a range of sources to handle complex queries.

Kmart, by contrast, made a misstep in its IT investments that undermined their effectiveness. It invested in systems to improve promotions management before it had installed the supply chain systems necessary to handle fluctuations in sales volume. As a result, it was unable to capitalize on the more precisely targeted promotions. Many retail banks also made errors in sequencing. They invested in popular customer relationship management systems before they had built repositories of consistent and reliable customer data. Not surprisingly, the CRM investments fell well short of expectations.

John Kanagaraj
DB Soft Inc
Phone: 408-970-7002 (W)

Disappointment is inevitable, but Discouragement is optional!

>-----Original Message-----
>From: DENNIS WILLIAMS [mailto:DWILLIAMS_at_LIFETOUCH.COM]
>Sent: Friday, December 12, 2003 8:14 AM
>To: Multiple recipients of list ORACLE-L
>Subject: RE: Re[2]:
>http://www.wintercorp.com/vldb/2003_TopTen_Survey/TopT
>
>
>Mladen
> I'm pretty confident of one thing -- if they weren't
>selling, Wal-Mart
>would quickly stop selling them at that store. Most people
>don't think about
>it, but Sam Walton figured out a couple of things early on:
> 1. If you don't have the item on the shelf, people can't buy it.
> 2. Hire a smart computer systems manager.
> 3. Your control of your own data is a competitive weapon.
>The system they created was flexible enough to be expanded to
>many, many
>stores.
>In his book "Sam Walton: Made in America", Sam lavishes praise on his
>systems people. The Kmart leadership, on the other hand, was
>often quoted in
>the press about how they were able to reduce their I.T. expense.
>
>Dennis Williams
>DBA
>Lifetouch, Inc.
>dwilliams_at_lifetouch.com
>
>-----Original Message-----
>Sent: Friday, December 12, 2003 9:54 AM
>To: Multiple recipients of list ORACLE-L
>http://www.wintercorp.com/vldb/2003_TopTen_Survey/TopT
>
>
>
>>
>> Jonathan is correct - WalMart uses Teradata.
>
>And they're selling gallon-sized Vlasic pickles. I always wondered who
>was buying such a monstrosity. It's a bi-annual pickles supply
>in a single
>package.
>
>Mladen Gogala
>Oracle DBA
>--
>Please see the official ORACLE-L FAQ: http://www.orafaq.net
>--
>Author: Mladen Gogala
> INET: mladen_at_wangtrading.com
>
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-- 
Please see the official ORACLE-L FAQ: http://www.orafaq.net
-- 
Author: John Kanagaraj
  INET: john.kanagaraj_at_hds.com

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Received on Fri Dec 12 2003 - 11:49:41 CST

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