importance of information system in Walmart Company running and managing business

Introduction

Walmart is an American multinational retail corporation that operates in chain hypermarkets, discounted stores, and grocery stores. The company, which was founded in 1962, has today become the world-leading chain hypermarkets. The latest success of the company, however, can be attributed to its effective use of information systems in management, operation, and decisions making processes. A management information system or MIS is used by business organizations to gathers, compile, and analyze critical information. Today’s Walmart relies on the information system for various purposes, most of which surround the aspect of management, communication, and the element of data management (Davis & Yen, 2018).  In Walmart, MIS is highly integrated with the organization’s operation system and usually involves databases with a massive amount of data. While the types of information or the role of the information system can vary from one’s business to the other, and even between the departments of an organization, the part that MIS plays is almost the same. Globally, business is connected and have an operation based on the effectiveness of the information system use. MIS improves business companies’ processes, strategies, and the element of decision making.  This report investigates some of the importance that information system in Walmart Company running and managing business

Concepts crisis and definition of MIS key aspects and implications

MIS has been understood and, over time, been described in various ways. It is also popularly known as the information system, the information and decision system, or computer-based information systems. However, the critical definition of the MIS is a system that offers information support for the process of organizational decision making. It can also be termed as the integrated system of man ad machines for the provision of information used in supporting business management and critical decision-making functions of an organization. The information system often produces information to satisfy the various need of both the administration and the operations subsystems. Besides, it offers the lack of different parties to the organization it is used. This information does reflect the critical internal operations of the business organization, competitiveness, environmental as well as the sociological, financial interest, and political trends. Usually, it must reflect what has happed, what is currently happening, and, most important, what is likely to occur in the business. The information always exists with equal importance in the private market, education institution, or government organizations (Yadeta, 2016).

The role of MIS today

1. Data management

The amount of information that is available in any business today can be overwhelming most of the time. How the information or the existing data is handled and therefore leveraged for a better decision-making process is the role of the information system. In Walmart, MIS is vital in the element of data management processing and the information of the raw data into meaningful information that can be used in the critical decision-making process within the organization (Ocansey et al., 2015). Walmart operates in various countries around the world with massive information for decision making in multiple regions. MIS is critical in the organization’s key data management. The management function of the information system in a business is always based on data synthesis. An effective information system accurately processes and synthesizes data, which is later used in the decision making within the organization (Davis & Yen, 2018).

2. Enhanced Business transactions

Information management starts at the level of business transactions, where the information is gathered and kept. This has the meaning that decision on the element of data is often essential enough to be collected and stored. For instance, Walmart, based in a given region in Mexico, can record the customer’s data through its information systems such as names, addresses, and the purchases history is key (Yadeta, 2016). Once this kind of information is compiled, it would give the management insight into the customer’s demographics as well as preferences. This element of information use is critical for Walmart’s management as it helps in managing the customers, stocks, and the aspects of sales in the business. The orders which are made during stocking must, therefore, be made with the customer in mind with the help of the company’s MIS.  At the transaction level, MIS is very crucial. Perhaps customer in business is calling to make an order or inquiry having the customer’s information and purchase history helps in making instant sales.

3. Improving Decision making

Decision making is an integral part of any business management today. This is because of the majority of business operations in an organization. Walmart, for example beige the leading company in the USA relies on an effective decision making process for business operation and most important for decision making process for business competitiveness (Ocansey et al, 2015)..  To make a good decision for management, the company needs to have a good and reliable MIS since the decision is based on the information available. Business decisions are often the basis of any business competitiveness. A business that makes an effective decision concerning its operation is likely to remain competitive and make profits (Yadeta, 2016).

The effectiveness of any business is reliant on the times and content of the business information that is presented and the action of the management. The need for the MIS is often felt when the organization managers have to make a proper decision concerning the business. This is the scenario in Walmart Company.  For managers often uses their own judgment, but this must be based on the information which is obtained for the information system of the business to arrive at the right decisions. The success of Walmart in its business operation can be associated with the effective MIS that the company has integrated into its business operation. The management of the company using the critical element of the MIS makes the right decisions that are associated with proper business operations and functions (Ocansey et al., 2015).

Factors that impact the effectiveness and efficiency of companies

1. Companies operational and marketing strategies

For very businesses globally, the business key strategies in operation and marketing defy business effectiveness and efficiency. A business organization or a company that operates using the most effective strategies which are unique stands a better chance of being useful and vice versa (Yadeta, 2016). Companies with have developed or advance business strategies such as effective communication production often become a market leaders in their industries. Effective business strategies offer a business a competitive advantage over the rest. Walmart’s business strategies have remained secret, but the company has put in place essential procedures that are aimed at attracting and retaining its customers as a result of the customer-friendly operations (Laudon & Laudon, 2015).

2. Level of Innovations

Globally, business is competing on the element of innovativeness. The level of innovation of a business or company impacts on its effectiveness and efficiency. Very often, companies that are innovative in the aspect of production, marketing, and other factors such as environmental suitability are more effective and efficient compared to others. Walmart is the leading chain hypermarket globally due to its massive business innovativeness. The business in recent days has innovated fresh business ideas such as online marketing, door to door services, and customer profile, which is crucial in the aspect of customers loyalty. As such, the company has been able to attract and retain a more significant customer volume than any other competing company in the regions where it operates (Davis & Yen, 2018).

3. Communication

Communication, just like business operations itself is one of the most critical aspects of any business operations.  The nature of business communication, both internally and outside the business environment, is critical to the success of the business. Walmart has one of the most robust business communication as a result of the effective MIS, which has made it the leading business organization globally. Effective business communication within the business make the operations flow efficient and straightforward and aspect, which impacts on the business effectiveness (Laudon & Laudon, 2015).

Conclusion

Management information system MIS is a vital part of the business organization which offers timely and accurate information to the business managers and aid in the process of decision making and the management. Which a fast change in technology management globally, new software is today used in the information system, which leads to a quick and timely supply of the information. However, the information system has today faced vital challenges such as the associated with cost implementation, resistance from employees, and problems related to new learning. For the success of an information system within an organization, it is suggested that proper planning is very vital. About Walmart, the MIS has played some of the most  crucial roles in its success including aiding decision making, operation, and transactions

References

Davis, W. S., & Yen, D. C. (2018). The information system consultant’s handbook: Systems analysis and design. CRC press.

Karikari, A. F., Boateng, P. A., & Ocansey, E. O. (2015). The role of the human resource information system in the process of human resources activities. American Journal of Industrial and Business Management, 5(06), 424.

Laudon, K. C., & Laudon, J. P. (2015). Management information systems (p. 143). Upper Saddle River: Pearson.

Yadeta, G. D. (2016). Role of management information system in business organizations. In Proceedings of Academic World 18th International Conference, Boston, USA (pp. 1-7).