Wal-Mart and IT Infrastructure

Paper Summary:

Wal-Mart defines the example of how IT systems benefit large firms by lowering costs and allowing them to pass along those low prices for products and services to the end user. This paper examines the CIPSODA (Capture, Input, Process, Storage, Output, Decision, Action) system used by Wal-mart, which is triggered by point-of-sale purchases and starts and stops by accurately recording what the customer carries out the door in the shopping cart. The paper includes a diagram.

From the Paper:

"Therefore, the most critical success factor in operating an inventory management system is persuading the people within the organization to cooperate. When a system is computerized the advantages such as reduced clerical cost, quicker processing time and improved customer service are long term advantages to the company and the sales staff. These benefits are not always immediately visible to the everyday employees who maintain the system's integrity."

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