Case One: Information Systems in the Global Economy Wal-Mart, United States Warehousing and Mining Data on a Grand Scale One company that really needs to know how to manage data is Wal-Mart. With a total of over 800 million transactions per day in over 7,000 stores around the world, Wal-Mart produces more data in a day than many businesses produce in a lifetime. No matter what size the business, databases and the systems that manage them provide the foundation on which business decisions are made. Wal-Mart is successful due to its ability to learn from the data it collects. In a nutshell, Wal-Mart owes its success to its databases and business intelligence tools—software tools that manipulate data to provide useful information to Wal-Mart decision makers. At Wal-Mart headquarters in Arkansas, massive amounts of data are collected every day from its stores around the world, and stored in a data warehouse over a petabyte in size—which is a quadrillion bytes or a million gigabytes. A data warehouse is a large database that collects data from many sources, which can then be analyzed to guide business decisions. Wal-Mart uses HP’s Neoview technology for its data warehouse. The system integrates data warehousing hardware, software, and services to manage large amounts of data. It is ideal for a company looking for a powerful database tool that is easy to administer. Neoview offers “next generation business intelligence” features that embed useful information mined from the data directly into the systems that executives, managers, and employees use every day. “A lot of people in the company are asking for quicker and easier access to data. We want to make sure it’s readable and usable by internal customers,” says Jim Scantlin, the director of enterprise information management at Wal-Mart. Specifics about how Wal-Mart uses business intelligence are corporate secrets that the company works hard to keep from its competitors. Clearly one of the top goals of the system is to determine which products are selling well at various locations so that Wal-Mart can manage inventory and promotions. When asked about the role of business intelligence in Wal-Mart’s business strategies, Wal-Mart CTO Nancy Stewart says, “Business intelligence is huge. It is huge.” Without sophisticated data analyses, making decisions regarding business strategy would be like running through the woods wearing a blindfold. A data warehouse not only allows a company to navigate through current market conditions, but in many cases provides information that allows the business to predict and plan for the future. Wal-Mart uses its databases, data warehouse, and business intelligence tools to collect, analyze, and disseminate massive amounts of data across its networks every day. Top-level executives, regional managers, store managers, and associates are provided with custom designed reports, charts, and graphs presented in easy-to-read dashboard software that lets users understand the state of the business at any time so they can do their jobs more effectively. As a pilot watches and analyzes the gauges and meters on the control panel of a jumbo jet to provide a smooth flight, Wal-Mart executives and managers watch and analyse the dashboard of Wal-Mart’s data warehouse to keep the business running smoothly. Discussion Questions 1. What role do databases play in the overall effectiveness of information systems? 2. What techniques do businesses use to maximize the value of the information provided from databases?
Case One: Information Systems in the Global Economy Wal-Mart, United States
Warehousing and Mining Data on a Grand Scale
One company that really needs to know how to manage data is Wal-Mart. With a total of over
800 million transactions per day in over 7,000 stores around the world, Wal-Mart produces more
data in a day than many businesses produce in a lifetime. No matter what size the business,
databases and the systems that manage them provide the foundation on which business
decisions are made.
Wal-Mart is successful due to its ability to learn from the data it collects. In a nutshell,
Wal-Mart owes its success to its databases and business intelligence tools—software tools that
manipulate data to provide useful information to Wal-Mart decision makers.
At Wal-Mart headquarters in Arkansas, massive amounts of data are collected every day
from its stores around the world, and stored in a data warehouse over a petabyte in size—which
is a quadrillion bytes or a million gigabytes. A data warehouse is a large database that collects
data from many sources, which can then be analyzed to guide business decisions. Wal-Mart
uses HP’s Neoview technology for its data warehouse. The system integrates data warehousing
hardware, software, and
looking for a powerful database tool that is easy to administer.
Neoview offers “next generation business intelligence” features that embed useful
information mined from the data directly into the systems that executives, managers, and
employees use every day. “A lot of people in the company are asking for quicker and easier
access to data. We want to make sure it’s readable and usable by internal customers,” says Jim
Scantlin, the director of enterprise information management at Wal-Mart.
Specifics about how Wal-Mart uses business intelligence are corporate secrets that the
company works hard to keep from its competitors. Clearly one of the top goals of the system is
to determine which products are selling well at various locations so that Wal-Mart can manage
inventory and promotions. When asked about the role of business intelligence in Wal-Mart’s
business strategies, Wal-Mart CTO Nancy Stewart says, “Business intelligence is huge. It is
huge.” Without sophisticated data analyses, making decisions regarding business strategy
would be like running through the woods wearing a blindfold. A data
warehouse not only allows a
company to navigate through current market conditions, but in many cases provides information
that allows the business to predict and plan for the future.
Wal-Mart uses its databases, data warehouse, and business intelligence tools to collect,
analyze, and disseminate massive amounts of data across its networks every day. Top-level
executives, regional managers, store managers, and associates are provided with custom
designed reports, charts, and graphs presented in easy-to-read dashboard software that lets
users understand the state of the business at any time so they can do their jobs more
effectively. As a pilot watches and analyzes the gauges and meters on the control panel of a
jumbo jet to provide a smooth flight, Wal-Mart executives and managers watch and analyse the
dashboard of Wal-Mart’s data warehouse to keep the business running smoothly.
Discussion Questions
1. What role do databases play in the overall effectiveness of information systems?
2. What techniques do businesses use to maximize the value of the information provided
from databases?
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