Managing Operational Improvements 1

MANAGING OPERATIONAL IMPROVEMENTS

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 Managing Operational Improvements 2

Introduction

The 21st century has witnessed significant advancements in technology virtually in

every industry. The most notable advancement is globalisation that has turned the globe into

a village where people can interact freely and with ease. Movement and transportation of

goods and services have also been made possible, and this has changed the terrain for many

organisations significantly. Technological advancements have led to the innovation of so

many technologies that have helped companies flourish and increase their market coverage

and product output. But most organisations have only taken very small steps into the adoption

of Digitalisation. The company used in this report is Walmart Inc that has been a global

retailer giant for decades and still i. The company has taken some significant steps into

adopting technology into its operations. However, the rate at which it is done is significantly

slower compared to the rate at which the environment is changing. The most recent outbreak

of Corvid -19 has made it necessary for Walmart to adopt Digitalisation fully so that to offer

its customers with a personalised experience and at the same time ensuring their safety.

Area of operations and Context for Improvements

Walmart is a global leader in the retail industry. Since its incorporation, it has

distinguished itself as a leader in technology usage in optimising operational efficiency and

ensuring that they deliver the highest quality shopping experience to its customers. But the

recent few years has seen technology evolve significantly, and the world-leading Retailer is

having challenges keeping up with the changes. For instance, the company has done a great

deal in automating customer process. For instance, last year’s Black Friday saw the company

make history as it made the highest sales. Customers came out to get the experience and

service suffered by the company.

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Additionally, its online ordering is also relatively good as people can place orders

online, but still, the process is not perfect as it does not include delivery of the products and

services to customers. But the key technology that has seen Walmart deliver the most

significant improvements in cloud technology (Awwad et al., 2019). This was made possible

when Walmart partnered with Microsoft to drive a digital transformation. But the company is

still missing the necessary technological innovations necessary in navigating the 21st-century

market. Besides, the company is facing significant competition for retailers like Amazon that

have adopted Digitalisation fully. Some of the aspects of Walmart that need transformation is

the operational structure. Most people in the 21st-century market doesn’t like going to stores

to shop. Some still go, but a projection of the future is what is need by Walmart, and in this

case, it is lagging way behind.

Additionally, the company needs to take steps towards utilising its global leader status

to navigate the market. This can be done by using its large pool of data to gain a competitive

advantage over its competitors. Because of its size, Walmart has the largest data pool than

any of its competitors which in this case can be a critical competitive advantage (Hänninen,

Smedlund, and Mitronen, 2018). The data can be used to facilitate technologies like machine

learning, that is the centre of the 21st-century innovations. Blockchain technology can also be

used in Walmart’s business structure as it will allow the company to control its supply more

effectively. The company currently uses technology specifically on the food supply chain.

But the same technology can be used to change the entire supply chain of the company.

Instead of only thinking of fresh produce, the company can achieve the most advanced supply

chain model that will help it cut down the supply chain costs and thus offering their

customers with the best shopping experience and the lowest prices possible.

Forces of Change
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There are a number of factors that necessitates the adoption of Digitalisation in

Walmart. There has been a significant shift in the world markets in the last few decades and

companies like Walmart that were incorporated in the 19th century will have a difficult time

navigating the environment if they do not adopt the most current technologies. The most

valued product of the 21st century is information. Every company is rushing to have the

largest pool of information at its disposal and Walmart as that. Therefore, to survive in the

age of information and the fourth industrial revolution, Walmart should utilise its large pool

of information to generate a more personalised experience to their customers rather than

giving an overall experience.

Additionally, disruptive technologies like blockchain, Bitcoin and mobile money are

all centred around the information. Therefore, to avoid being the victim of this technologies,

Walmart should be ready to adopt them and incorporate them into their systems and

operations thus shielding themselves from any adverse effects of the technology (Ivanov,

Tsipoulanidis and Schönberger, 2019). Another factor is the change in consumer behaviours

of the 21st century.

People in the 21st century need a more personalised experience, and since they are

well informed and can access any information, they want to on the internet. Therefore, to

serve their customer better and also attract more, the Retailer should shift to Digitalisation,

where it will be able to analyse customer information and be able to deliver services

depending on the customer needs. Besides, the advertisements will be personalised, thus

optimising the effect of every specific ad. Finally, Walmart has grown to be one of the largest

retailers in the world and this by itself necessitates the adoption of digital technology to aid in

management and running of operations. The digital technology will allow for central

management and a well-structured service delivery system that is integrated into different

platforms. Finally, there is the most recent force that has led to the closure of 90% of the
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world. The outbreak of Corvid-19 has led to a significant shift in how people shop. Most

people currently prefer placing orders in online stores and having their products delivered to

their doorstep (Simbolon and Riyanto, 2020). For the last seven months, the world has been

battling with the virus, and so far, there has been no breakthrough regarding a vaccine of

viable treatment. This, therefore, means that the virus will stay much longer, and this means

that consumer behaviours will change significantly. Therefore, to navigate the turbulence,

Walmart should shift to digital technology to serve its customers. This includes adopting a

user-friendly online system that allows users to shop and also a delivery system. The most

recent one that has been used by Amazon is the drown technology as using people will

expose them to the virus. Using drowns, on the other hand, is perfect for the environment and

reduces the rate of infection significantly.

Operational Performance Gaps

Walmart if a retail giant and it has been a leader in the industry for the last few

decades. But with the unfolding events in technological innovations and the outbreak of

Corvid 19, this may change significantly fast if the company does not take steps towards a

hundred per cent digitalisation. For instance, Walmart has an online platform where

customers can place their orders. But this adoption lacks the part where the company delivers

the product to the customers’ doorstep. This means that consumers will opt to shop from

retailers like Amazon that already have a well-developed online presence and delivery stem

that delivers products to consumer doorstep. Walmart has already established a powerful

image in the market regarding the quality of its products. Therefore, the gap that should be

filled is delivery speeds that will give it a competitive advantage over its competitors. With

the outbreak, Walmart will lose its order qualifiers competitive advantage as people will go

for the options that do not need them to get out of their houses to go shopping. Consumers
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expect the company to come up with ways to limit their exposure, and otherwise, they will

switch to other retailers that have already adopted e-commerce and do deliveries.

Rationale and benefits of Digitalisation

Walmart has adopted the blockchain technology in its food supply chain. This has

proofed to work as it can optimise its costs and also deliver fresh supplies to its consumers.

Therefore, this is an indication that the adoption of the same technology into the other lines of

products offered by the Retailer will ensure that every consumer gets their products in time

and efficiently. Additionally, the Retailer will be able to optimise its costs, thus making more

profits and maintaining its competitive advantage in the markets. It will also make it easy for

the company to respond to recalls, thus ensuring the safety of customers. Additionally, other

companies like Amazon, that is Walmart’s major competitor has already started doing

deliveries to its customers. Therefore, this necessitates the adoption of digital technology to

help in making deliveries to customers. Otherwise, Walmart will lose its competitive

advantage as the world retail leader.

But the main and most recent reason is the outbreak of Corvid 19 that has made

consumers adopt new ways of shopping. The best modes that have been adopted so far is

online shopping that allows consumers to buy whatever they want from online stores and get

the products delivered to their doorstep. People fear for their health and the health of their

loved ones, and therefore it is the responsibility of Walmart to ensure that its customers are

protected from the virus. Digitalisation is the only viable way of dealing with the virus as it

will allow the company to offer its products online and thus customers do not have to go to

the stores to shop or pick their orders. This way, there will be limited movement and

interaction between customers and company staff. Additionally, Walmart employees are

often trained to meet the company standards and also to learn how to use the new
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technologies often adopted by the company in undertaking their day to day tasks. Instead of

conducting physical training sessions, workers will also be trained online, thus limiting the

chances of physical interaction (Morkunas, Paschen, and Boon, 2019). Besides, Digitalisation

aimed at limiting the physical interaction of people during the outbreak will improve the

Retailer’s image as it will be undertaking its corporate social responsibility role and

optimising its business. This way, it will be able to maintain its status as the world leader in

the retail business.

Risks, Barriers and Enablers for Digitalisation And Operational Improvement

Some of the risks of Digitalisation is that technology keeps changing, and there is not

enough experience regarding some of the technologies. For instance, blockchain is one of the

most recent innovations, and therefore it is still subject to change. This means that Walmart

will have to take the risk and change with technology. Another Risk is that with

Digitalisation, everything is at risk to cybersecurity. The delivery drown that will be used for

delivery can be hacked, and this can be devastating to the company and the consumers. There

is the risk of information of consumers being compromised as consumers will need to pay

using online systems that are not that secure as cash or credit cards that have been in

existence for decades (Girdwichai, 2020). This means that consumer information will be

vulnerable to access by third parties that may use it to commit crimes.

Some of the barriers to Digitalisation include possible change resistance. This will be

from both consumers and staff. Change is uncomfortable for most people, even if it is for

their good. This, therefore, means that some of the stakeholders of the company may not be

able to warm up to the digitalisation programs quickly and this may require Walmart to come

up with a compelling vision of the future one Digitalisation is achieved. Another barrier is the

knowledge of customers. It is challenging to determine what exactly customers want and, in

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this case, they may not be ready to accept Digitalisation. Therefore, to ensure that the

programs succeed, Walmart should involve its consumers voice into the development of the

program. This can be done through direct involvement, iterations and 4D listening. Finally,

there is the issue of organisational agility. As quickly as an organisation can adapt, the digital

world changes. Being agile is the key to keeping up in the digital arena. This means that

Walmart must be able to sense what is going on around it and the kind of technology being

innovated. It must also be able to undertake strategic shifts to merge the changes and finally

creating a culture that aligns with divisional silos so that mobilisation of the right people

happens swiftly and efficiently (Vanitha et al., 2019).

Conclusion

The 21st century has witnessed significant advancements in technology, and this has

affected virtually every industry. Companies like Walmart that have been world giants for

more than a century will have to adopt Digitalisation to remain competitive in the market.

Some of the technologies that can be adopted by Walmart is the online store system and

drown delivery system. This will not only offer the customers with a better shopping

experience but keep them safe during the time of Corvid 19 that has affected the world in the

last few months. Another technology is the blockchain technology that has been deployed in

the supply chain of foods by the company and proofed to be beneficial. But Digitalisation

will be faced with some risks and barriers among them resistance and cybersecurity issues.

But with the best team and commitment, the company will deploy Digitalisation effectively

and thus remaining the leader of the world retail industry.

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