final project report digital transformation and artificial intelligence

Walmart invests up to $400 million annually in securing data andenhancing security measures.● System availability: Walmart''''s systems must function efficiently anddependably to manage ord

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITYUNIVERSITY OF ECONOMICS AND LAW

-FINAL PROJECT REPORT

DIGITAL TRANSFORMATION AND ARTIFICIALINTELLIGENCE

LECTURE: Master.Vũ Văn Điệp Course ID: 225MI5202MEMBERS IN TEAM

TABLE OF CONTENTS

1 Objective 4

1.1 The history of formation 4

1.2 Vision and mission 5

1.2.1 Walmart Mission Statement 5

1.2.2 Walmart Vision Statement 6

1.3 Business model/Revenue model 6

1.3.1 Business model 6

1.3.2 Revenue model 8

1.4 Business operation overview 9

1.5 Walmart's Canvas model before digital transformation 11

2.2 Problems before digital transformation 15

2.2.1 Challenges with information technology and data management: 15

2.2.2 The challenge of digital innovation: 15

2.2.3 Problems promoting internet purchasing present include 16

2.2.4 Challenges with Walmart's Security and Privacy 16

2.2.5 Consumers' change shopping habits 17

2.2.6 Changing demographics and the expansion of e-commerce 17

2.2.7 Failing to maintain the brand's reputation 17

2.2.8 Ineffective business plan 17

2.3 Solution/ Recommendation 18

2.3.1 Improvements in Data Analytics and Information Management 18

2.3.2 Develop Automation and Use Artificial Intelligence in Business Operations 19

2.3.3 Strengthen Information Security System 20

3 Implementation 21

3.1 Planning 21

3.1.1 Defining the goal 21

3.1.2 Detailed plan for each challenge 21

3.1.2.1 Big data analysis and application of new technologies in information management 21

3.1.2.2 Invest in Blockchain and analyze Big data on social networks to

improve service quality and Marketing strategy 22

3.1.2.3 Development of automation and use of Robot - artificial intelligence 25

3.1.2.4 Application of AI and new technology to promote online shopping 26

3.1.2.5 Transforming security threat intelligence tools and structures 28

3.1.2.6 CRM tools and predictive analytics to adapt to changing consumer buying habits 30

3.1.2.7 Using Big data and AI in inventory management and sales forecasting 31

3.2.1.5 Transforming security Threat Intelligence tools and structures 48

3.2.1.6 CRM tools and predictive analytics to adapt to changing consumer buying habits 50

3.2.1.7 Using Big data and AI in inventory management and sales forecasting 52

4 Solution Evaluation 57

4.1 Evaluate and control the solution 57

4.1.1 Innovative solutions in data analysis and information management 57

4.1.1.1 Evaluation 57

4.1.1.1.1 Advantage 57

4.1.1.1.2 Disadvantages 59

4.1.1.2 Control the solution 59

4.1.2 Solutions to develop automation and use artificial intelligence in business activities 63

4.1.3 Solutions to strengthen the information security system 66

1 Objective

1.1 The history of formation

Walmart, Inc (NYSE: WMT) or trademark Walmart, is an American publiccompany, currently one of the largest companies in the world (in terms of sales) asannounced by Fortune 500 2019 On October 31, 1969, Sam Walton hadestablished the company and sealed it on the New York Stock Exchange in 1972.

About the founding history, in 1945, businessman Sam Walton bought abranch of the Ben Franklin store from Butler Brothers His main focus is on sellingproducts at low prices in order to achieve higher volume sales against lower profitmargins, describing it as a pro-consumer rally He had encountered setbacksbecause of unusually high rental and branch prices, but he found a supplier that costless than the ones the stores used differently and could therefore compete competeon price with competitors Sales grew 45 percent in the first year of ownership,reaching $105,000 in sales, growing to $140,000 the following year and $175,000the following year In its second year, the store generated $250,000 in sales Waltonopened a new store at 105 Main Street in Bentonville when the venue's leaseeventually expired and he was unable to reach an agreement to renew and naming it"Walton's Five and Dime." and now it is the Walmart Museum

Original logo, 1962–1964

On July 2, 1962, Walton built the first Wal-Mart Discount City location inRogers, Arkansas, at 719 W Walnut Street Its design was inspired by Ann &Hope, which Walton visited in 1961, as well as Kmart founder Harry B.Cunningham The name comes from FedMart, a discount department store chainfounded by Sol Price in 1954, whom Walton also drew inspiration from Waltonsays he likes the idea of calling his discount chain "Wal-Mart" because he "reallylikes Sol's name FedMart" The company's "No 1 Store" has since expanded into aSuper Mall a few blocks west at 2110 W Walnut Street The company expanded to18 stores in Arkansas and generated $9 million in sales in just a year since it startedbusiness In 1968, its first stores were opened in Arkansas in Sikeston, Missouri andClaremorel, Oklahoma To date, Walmart has been present in many countries,Wamart operates in Mexico as Walmex, in the United Kingdom of Great Britainand Northern Ireland as ASDA, and in Japan as The Seiyu Co., Ltd Companieswholly owned by Walmart located in Argentina, Brazil, Canada, Puerto Rico, UK.

Walmart currently has more than 4000 stores in the US and more than 3000stores in 13 countries, they said they are considering setting foot in Southeast Asiawith potential markets such as Vietnam, Thailand, Indonesia.

1.2 Vision and mission

Walmart Inc (formerly Wal-Mart Stores, Inc.), as one of the largest retailersin the world, has demonstrated operational success in applying mission statements.and company vision The Walmart’s vision and mission statement include thefundamental guiding principles of the business In this regard, the company'ssuccess is closely tied to its effectiveness in fulfilling its vision and mission for itsretail operations A suitable general approach (Porter's model) and associatedintense growth tactics (Ansoff Matrix) are both implemented as part of this process.A joint competitive advantage strategy and an intensive growth strategy developWalmart's business, ensuring a competitive advantage to achieve goals based on thecompany's mission statement and vision Walmart states the company's vision andmission through a common strategy of cost leadership (based on Porter's model)Building a competitive advantage in the face of real competitors like Amazon.comInc and its subsidiary Whole Foods Market, as well as Costco Wholesale, eBay andHome Depot In addition, various intensive growth strategies such as marketpenetration and market development contribute in part to Walmart's success inholding accountable work in accordance with the company's mission and visionstatement.

1.2.1 Walmart Mission Statement

Walmart Inc.'s company objective is "saving people money so they can livebetter." This claim demonstrates Sam Walton, the company's founder,'s principles.Strategic business decisions are a direct expression of this mission statement,synonymous with the retail company's tagline, "Save money- Live Better" based onthis company's mission statement, it is clear that Walmart's strategies and businessgoals involve using price as a selling point to attract target consumers Theimportance of such a selling point is noticeable in many retail company strategies,

for example, the marketing mix of Walmart Inc or the low-price strategy-related4Ps Other areas of the company The company identified the need to minimizeselling prices as a way to gain competitiveness to support the company's missionstatement and vision statement.Walmart meets the "save money for money"component people” in the mission statement through low selling prices Forexample, consumers save money by spending less when buying goods from thecompany's stores, compared to buying the same or similar goods from mid- andhigh-end stores, however, it remains unclear whether the retail company will meetthe "better living" component of its mission Low wages pose challenges forWalmart employees to improve their lives, pointing to possible human resourcemanagement issues within the organization In addition, the "live better" componentof the company's mission statement remains uncertain, as critics argue that thelarge-scale retail company's sales of low-priced imported goods have an economicimpact long-term negative effects on local communities and small businesses.

1.2.2 Walmart Vision Statement

The vision of the company Walmart Inc is “Become a destination forcustomers to save money, no matter how they want to shop.” This vision statementwas formally articulated during the company's 2017 investment communitymeeting Walmart's previous mission statement read, "To be the best retailer in thehearts and minds of consumers and employees." The altered corporate missionreflects strategic changes Walmart has made in response to changes in thecompetitive landscape and general conditions of the global retail industry.Previously, the company's vision was to become a leader in the retail industry.Acomparable objective is now included in Walmart's vision statement, but with anemphasis on business agility in helping customers For example, the “however theywant to shop” component indicates that the company's strategic goal is to achieveleadership in brick-and-mortar and online retail or e-commerce transactions However, the same change removed “employees” as a component of Walmart'svision statement This change represents a potential reduction in strategic supportfor employees of the retail giant Alternatively, a change in a company's vision mayreflect human resource management issues, considering that employees are a keystakeholder group relevant to the company's social responsibility strategy companyand related party management.

1.3 Business model/Revenue model

1.3.1 Business model

Walmart has consistently held the top spot in the global retail sector Withnearly $523.9 billion in net sales in 2020, Walmart is considered the best in termsof its supply chain management practices, through its focus on increasingoperational efficiency and responsiveness according to customer needs Walmart's

business model is backed by its president, Greg Penner, President and CEO, DougMcMillon, and 2.2 million working individuals.

Walmart's highly automated distribution centers operate 24/7, with fleets ofdedicated trucks that allow the company to move goods from distribution centers tostores in as little as two days and replenish shelves in-store twice a week Fastshipping times help Walmart to promptly respond to changes in customer needs.The company has more than 140 distribution facilities for its domestic line andmore than 40 regional distribution centers for its imported line in the US alone.

When entering a new market, the company first determines if the area hasenough stores to operate a distribution center Each distribution center supports 75-100 retail stores within a 250-mile area As a hub is built, stores are gradually builtaround it and the distribution network is redesigned to maximize efficiency Theresult is shorter distances that reduce shipping costs and lead times and less safetystock If shortages occur, replenishment can be done more quickly as stores receivedaily deliveries from distribution centers.

Walmart operates 158 distribution hubs around the US, from Johnstown,New York, to Bentonville, Arkansas The network of distribution centers shipseverything from general merchandise to perishable groceries to Walmart and Sam'sClub stores Each distribution center is more than 1 million square feet in size Eachdistribution center employs more than 600 loaders and transports more than 200trailers daily Each distribution center supports between 90 and 100 Walmart storeswithin a 150-mile radius, with new facilities and stores appearing each year.

What sets Walmart's distribution network apart is that the supply chain in theUnited States and around the world is a complex system To move things frompoint A to point B, there are countless moving elements Walmart's distributionnetwork is no different Since its inception, however, Walmart has been dedicatedto putting supply chain efficiency at the forefront of its business model to keepcosts low for consumers This means that Walmart uses innovative technology tomanage its supply chain and consistently tightens requirements to maintain itscutting-edge approach.Additionally, Walmart works directly with manufacturers,enabling a more streamlined, risk-free method of product movement and an overalllower-cost supply chain Walmart's shipping strategy is totally internal, and its in-house systems allow for product tracking, inventory evaluation, and other functions.

There are three segments in Walmart's business model:

a Walmart USA

This is the largest segment of the organization It manages all of its stores inall 50 US states, Washington DC and Puerto Rico This segment controlsdifferent aspects of an individual's daily necessities – Grocery, Health,Entertainment, Apparel, Hardline, and Home They provide differentservices as well Along with financial services, Walmart's business model

offers money orders, prepaid cards, wire transfers, and bill payments Theysell licensed and private label merchandise They offer physical access tocustomers in the form of three main store formats – supercars, discountstores, and other mini-store formats Digital access to Walmart US is a rangeof goods and services available to customers through e-commerce websitesand mobile applications Digital stores have partnered with physical stores,known as Pick Walmart Pickup and Pickup Today

b Walmart International

The international portion of the company includes the 27 countries whereWalmart stores are located They also have other format stores like retail,wholesale and others The stores are operated through joint ventures andwholly owned subsidiaries Physical access is offered to customers through156 distribution facilities Physical stores support digital access withfacilities such as Click Click & Collect (UK) and home delivery in Mexico.

c Sam Club

Sam's Club is the third and final segment of Walmart's business model,which operates in 44 states in the United States and Puerto Rico Thissegment takes care of members-only warehouse clubs It also works atsamsclub.com They provide subscription services to individual customers aswell as business owners.

1.3.2 Revenue model

Report Q3 2020 results on Thursday, November 14, before the market opens.Revenue Expectation: $128.57 billion.

Expected EPS: 1.09 USD.

With ups and downs after nearly 40 years of operation, Walmart has becomethe world's largest corporation by revenue, far surpassing the world's second largestretailer, Carrefour of France Carrefour's sales are almost half that of Walmart's.Walmart entered the 21st century with changes in the way it approaches customersand new business forms based on the foundation of information technology, in theform of online shopping In 2000, walmart.com was established allowing customersto shop online Walmart uses more than 1.1 million links in a total of 3,989 storesand clubs worldwide In 2007, walmart.com allowed customers to make onlinepurchases and pick up merchandise at all Walmart locations worldwide In 2009,Walmart achieved sales of more than $400 billion for the first time Today,Walmart employs 2.2 million people worldwide, serving 200 million customerseach week in more than 10,000 stores in 27 countries outside the United States.

The revenue path of Walmart's business model includes a wide range ofproducts and services for individuals in the US as well as internationally They havea wide range of items and amenities:

a. Product sales

Grocery: Meat, deli products, bakery, dairy, frozen foods and drysupermarkets Items are also on sale, like health and beauty supplies,paper goods, and pet supplies.

Health and Wellness: Over-the-Counter Drugs and Clinical Services.Entertainment: Electronics, toys, cameras, phones, photographyHardlines: Stationery, hardware, paint, fabric and crafts.

Apparel: For women, men, men, women, babies as well as shoes andaccessories.

Home: Home furniture, home appliances, beds, home decoration.

1.4 Business operation overview

For the fourth time in a row, retail group Walmart topped the Fortune 500list, according to the rankings published by the famous Fortune magazine recently.Walmart comes out on top with sales of $324.526 billion Among them, the profitreached 12.731 billion USD Walmart has been at the top of the Fortune 500 since2002 and is considered "America's Most Admired Company" Walmart has thehighest revenue of any retail company in the world, surpassing Carrefour, thesecond largest The French retailer's sales are about half that of Walmart.

The Walmart system includes more than 6,688 stores worldwide, more thantwo-thirds of which are located in the United States Founded in 1962, by 1979,Wal-Mart had its first annual revenue of one billion dollars In 2001, Wal-Mart'sdaily sales were close to that Wal-Mart is now five times larger than it was in 1992,employing three times as many people as General Motors For a single item likelaundry detergent alone, Wal-Mart sells $1.4 billion a year Many economistspredict that at the current rate of growth, within a decade, Walmart's annual salescould exceed $1 trillion In 1997, Walmart became the largest employer in the USwith nearly 570,000 people In the same year, the company's annual sales exceeded100 billion USD In 1999, Walmart became the world's largest corporation in termsof personnel with 1,140,000 people.

If the mid-20th century was seen as the era of the car manufacturer GeneralMotors and the late 20th century as the software company Microsoft, the early 21stcentury is clearly Wal-Mart In the United States, more than 80% of households buy

at least some product each year from its stores Wal-Mart was the first servicecompany to climb to number one on the Fortune list (published in 1995).

Currently, the company's business is divided into 3 segments: Wal-MartUSA, Sam's Club and International, in which Wal-Mart USA is the largest segmentand is expected to account for 62.1% of net sales for the fiscal year main ,operating within the United States only; including different forms of retail.

A chain of discount stores (Walmart Discount Stores) was first opened in1962 by Sam Walton Today, the company has 629 stores in the United States Theaverage area of each store is about 108,000 square meters, and each store has about225 employees The product categories sold include: home clothing, healthproducts, beauty products, electronic products, toys, gardening products, jewelry,furniture, auto machinery, home appliances gadgets, sportswear…

Wal-mart Supercenters (Walmart Supercenters) were developed in 1988, andnow there are 3,029 super centers in the US, with an average area of about 185,000square meters with about 350 employees each These super malls are open day andnight, serving food items, and groceries.

Walmart Neighborhood Markets was established to serve the needs of fastand convenient shopping for customers for products such as: groceries,pharmaceuticals, and some other popular items This form was developed in 1998,now the company has 168 neighboring markets, with about 95 employees servingeach market.

Wal-mart Express Stores, the first two small stores opened in June 2011 inArkansas with the aim of providing temporary goods to customers, especiallycustomers in non-local areas You can often go to the big stores These stores havea small area, averaging about 15,000 square meters, specializing in the distributionof groceries, and general goods In addition to the traditional sales channels, Wal-mart also developed a sales channel through the website walmart.com, with avariety of goods Customers can choose the products available on the website, andthen order directly there Products will be shipped to Wal-mart stores located in thecustomer's area.

Sam's Club is comprised of: member boutique clubs, which contributedapproximately 11.8% of FY2011 net sales Sam's Club was first opened in MidwestCity, Oklahoma in 2012 1983 Currently, there are 611 clubs operating in the US,and more than 100 international clubs in Brazil, China, Mexico, and Puerto Rico.Sam's club customers include consumers, and small businesses with a yearly fee of$35 for business customers and $40 for individual customers.

International Division (Walmart International): 26.1% of FY2011 net sales.In 1991, Walmart opened Sam's Club in Mexico and became an internationalcompany Two years later, the International Bloc was established More than 90%of the stores in the international division are operated with non-Walmart brands,

such as: Pali in Costa Rica, Todi-Dia in Brazil, and more Currently, WalmartInternational has 5,651 stores in 26 markets outside the US: Japan, China,Argentina, Brazil, Canada, Costa Rica, Chile, Botswana, El Salvador, India,Honduras, Guatemala, Ghana, Mexico, United Kingdom, South Africa,Mozambique, Nigeria.

1.5 Walmart's Canvas model before digital transformation

Walmart already has major partners suchas Procter & Gamble, Coca-Cola andKellogg's, offering consumer products intheir stores.

About leading international shippingpartners such as UPS, FedEx and DHL toensure the delivery of goods.

Shipping, warehousemanagement,storemanagement, product

Provide customers with aconvenientshoppingexperience, with a widerange of products and topquality products

Customers need to shopefficientlywithcompetitive pricingpolicies and shop inbulk.

Family and localsElderly people careabout useful productsfor health

Retail stores: more than11,000 retail stores globally.Advanced technology andtransportation system

Human Resources: withmore than 2.3 millioncomprehensive employeesglobally

Website: walmart.comFanpage: Walmart

Email: service@walmartcontacts.com

Toll-Free Phone: 1-800-741-5367

Store operating costsTransportation costsManagement costsMarketing costsFinancial expenses

Revenue from sales ofWalmart products andservices is considered themain source of income

2 Analysis of enterprise

2.1 SWOT analysis

2.1.1 Strengths

Global Brand Recognition: Walmart is the most well-known retail brand in

the world, drawing millions of customers each day The Walmart online store offersmore than 60 million products 47 new Walmart locations were opened in CentralAmerica in 2017, as well as 15 in Chile, 11 in the UK, and 4 in China Sales andglobal presence have grown as a result of its overseas operations.

Global expansion: Walmart recently acquired ASDA, a UK-based retailer,

and Indian e-commerce giant Flipkart In addition, it has created a joint venturewith India's largest retail store Bharti These global expansions have proven to be ahuge success for the company.

Low Price Everyday' Strategy: Walmart is based on economies of scale,

that's why it can offer low prices It has fixed costs for thousands of products.Therefore, it is one of the cheapest shopping places in the world

Global Supply Chain and Logistics: Distribution and logistics systems are

Walmart's core competencies It uses Information Technology (IT) to monitor theperformance of every product in each store in each country.

Human Resource Management: Employees are Walmart's primary asset It

invests a lot of time and money in developing and managing its employees 1% ofthe working population in the US is employed at Walmart according to BusinessInsider.

Efficient Resource Management: Walmart effectively manages its resources

including information systems, supply chain networks, distribution facilities,knowledge, and other skills It works great in all locations.

Strong market power relative to suppliers and competitors: Large

organizational size and global reach have enabled Walmart to exercise marketpower over suppliers and competitors.

2.1.2 Weaknesses

Employee treatment and working conditions: Walmart has received

numerous criticisms and lawsuits regarding its workforce Low wages, inadequatehealth care, and poor working conditions are a few of the issues that have comeunder public criticism.

The large span of control: It's very long size and a large span of control may

leave Walmart weak in some areas.

Thin margins: Walmart focuses on a cost leadership strategy It results in

thin profit margins for the company.

Gender Discrimination: A lawsuit was filed against Walmart in 2007

alleging gender discrimination claims in employment opportunities at Walmart.Female employees were discriminated against in relation to promotions and payscales under this lawsuit.

Imitation: Walmart's business model can easily be copied The company

does not possess any particular competitive advantage over its competitors exceptfor its enormous business size.

2.1.3 Opportunity

Expansion into other markets: Walmart can seize a chance by stepping into

uncharted territory China, Middle Eastern nations, and Latin American nationsmay be among them.

Strategic alliances: Walmart has the option to merge with other international

retailers or form strategic alliances with significant corporations For Walmart,buying small businesses might be a lucrative opportunity.

Enhancing human resource practices: Bringing in cutting-edge

improvements in human resource practices could be a boon for Walmart As itrelies so heavily on its workforce, bringing innovation in human resourcemanagement is an important opportunity.

Improve quality standards: Sometimes cheap products give low quality.

Walmart has the opportunity to raise the quality standards of its products to addressconsumer health concerns.

2.1.4 Threats

Impeach 45 Controversy: Recently, Walmart went public for the Impeach 45

controversy It sells t-shirts that say ‘Rope Tree Journalist Requires someassembly' These shirts claim to promote violence However, Walmart overturnedthe controversy, arguing that the t-shirts were sold by third-party sellers onWalmart's Marketplace rather than Walmart itself.

Counterfeit craft beer controversy: Walmart was sued for selling fake craft

beer in 2017 Although it's made by WX Brands, the beer is labeled and marketedas 'Trouble beer', a company production does not exist.

Main competitive target:Walmart, the biggest supermarket retailer in the

world, has consistently been a preferred target Similar but higher-quality goods areavailable at Target, its main rival In a similar vein, Costco allows customers topurchase goods in bulk In comparison to Walmart, these businesses have a prettyhigh reputation for treating their employees decently Additionally, the publicsupports both businesses in these fields.

Political and legal issues: This is also a threat to political and legal issues

that can always hinder the company from operating in some countries.

Small-scale online e-commerce companies: Numerous independent,

small-scale online retailers have emerged, offering comparable goods on their websitesfor comparable costs It might jeopardize the company's position going forward.

Technical issues on the site: Customers have repeatedly complained that

there are some technical issues with Walmart's website Products are not listed in anorganized manner on the website and it runs slow However, Amazon is known forits fast, efficient, and organized website which makes for a great online shoppingexperience.

2.2 Problems before digital transformation

2.2.1 Challenges with information technology and data management:

Only 10% of retail organizations are efficiently utilizing digital, according to aMcKinsey analysis By investing in cutting-edge technology like artificialintelligence and machine learning, Walmart is attempting to upgrade its systemsand raise the quality and dependability of data.

● Big Data Management: Walmart has billions of customers, products,

revenue, and financial records, which makes organizing and analyzing thisdata to make wise decisions extremely difficult determination in business.

● Complex information systems: Walmart uses more than 70 different

information systems, including POS systems, warehouse management systems, supplier ordering systems, financial management systems, and systems ERP, and more Walmart uses a variety of information systems to manage the business, from inventory management systems to ordering software for suppliers Combining these systems to provide accurate information is an obstacle.

● Data security and privacy are very important since Walmart holds a lot of

private information about consumers and businesses As a result, datasecurity is a serious problem that requires constant improvement could loseall data Walmart invests up to $400 million annually in securing data andenhancing security measures.

● System availability: Walmart's systems must function efficiently and

dependably to manage ordering, administration, and inventory concerns withmillions of customers every day and thousands of staff worldwide eithersales or warehousing management.

● Support emerging technologies: In order to satisfy consumer demand,

Walmart must develop cutting-edge products This presents a challenge forcreating, putting into practice, and optimizing new technology to satisfyWalmart's business needs.

2.2.2 The challenge of digital innovation:

Walmart has made numerous efforts to improve its digital capabilities by creatingautomation solutions for its distribution centers and utilizing artificial intelligenceto optimize its storage system Walmart will still need to innovate and create freshdigital solutions due to the fast-paced changes in the digital economy andtechnology.

● Investment costs for digital innovation: Walmart must invest significantsums of money to develop and execute cutting-edge technology likeartificial intelligence, user interfaces, and data analytics Between 2021 and

2022, Walmart plans to invest up to $11 billion in digital innovation Walmart reportedly invests $2.5 billion annually in technology andinnovation, according to public records.

-● It can be challenging to merge outdated systems with cutting-edgetechnology: Because Walmart has so many established business practices,

implementing new technologies can be difficult and time-consuming.

● Continuous innovation: Walmart must always innovate to suit customer

expectations This includes keeping up with the market and technicaladvancements Keeping the business innovative is a difficult task.

2.2.3 Problems promoting internet purchasing present include

In essence, Walmart is no longer the market leader in the retail sector, but theyare still dealing with a long-standing issue with rising sales influence profitable andvice versa This makes it more difficult for Walmart, which is up against toughcompetition from other retailers In particular, the repression before the emergenceof e-commerce behemoths like Amazon or Alibaba, because before the changes ofthe retail market, the strategy of Amazon and Alibaba still has more advantages.

2.2.4 Challenges with Walmart's Security and Privacy

It's critical to protect consumers' personal information because Walmart hasaccess to a lot of customer data, including account and payment information.Walmart may lose credibility and consumers' trust, which may result in lost salesand revenues if customer data is stolen or revealed.

● Handling customer data: In order to safeguard the privacy of the personal

information, bank account information, and shipping addresses thatWalmart gathers and processes from consumers, it is necessary forWalmart to implement appropriate security measures.

● Information security: In order to prevent data leakage or illegal activities

like identity theft or the misuse of financial information, Walmart mustguarantee the security of their customer and account information.

● Sharing of Information Is Required: In order to offer customers better

service or shopping options, Walmart may share customer informationwith its business partners Walmart must do this while collaborating withpartners to protect customer privacy and safeguard information.

● Activities involving third parties: Walmart collaborates with them to

create and implement services, putting customers' data security andprivacy at risk.

● Law and regulations: Walmart is expected to abide by all applicable laws

and regulations relating to data security and privacy, including the GDPRand CCPA.

2.2.5 Consumers' change shopping habits

Consumers' purchasing preferences have changed as a result of Walmart's lowprices, but now they take more into account before making a purchase Beforemaking a purchase, consumers prefer to use their cell phones to compare prices andhave higher expectations for mobility and convenience It appears that Walmart hasbeen reluctant to adapt to these developments, making it more difficult for them tocontact customers These call for an increased concentration on digital technology.

2.2.6 Changing demographics and the expansion of e-commerce

For retail companies like Walmart, GenYs—also referred to as millennials—who were born between 1981 and 1996—represent the most significant customersegment The expectations of GenY are substantially different from those of othergenerations Generation Y is more technologically proficient and has a digitallifestyle They enjoy buying goods and services online Walmart's conventionaloperating model is unable to meet the expanding needs of customers in the US asthe retail market changes Walmart must switch to a new model that can managethings more quickly and effectively Especially now that the e-commerce industry isexpanding and building ingenious online stores that draw more customers thanWalmart's enormous showrooms.

2.2.7 Failing to maintain the brand's reputation

A slew of revelations regarding irregularities in employee pay to bribes inMexico, China, India, and Brazil have damaged the company's reputation in theeyes of customers The corporation has yet to take many steps to reduce this mediainfluence in the meantime, which has complicated recent sales growth in the USmarket.

2.2.8 Ineffective business plan

Walmart has been using the same technique for more than 50 years, but itneeds to be updated because it is no longer effective Input costs have always been afactor in Walmart's growth and profitability through its large volume, low-priceofferings Price advantage still draws buyers, but during the past ten years, itsinfluence has diminished The primary factor is that numerous sizable retailbusinesses have increased their business operations and opened more branches,giving consumers more choices than Walmart.

2.3 Solution/ Recommendation

2.3.1 Improvements in Data Analytics and Information Management

Data analytics is a crucial link that transforms raw data into valuableinformation to interpret or solve a specific problem This process includes varioustools, technologies, and processes applied to explore, process, and extractinformation from data Data analytics helps businesses optimize their operations byrelying on real data as a basis for every decision It is also the 'foundation' thatsupports business analytics efforts From there, it helps businesses understand theoperational context of the business, the causes of the issues the business faces,predict some issues and forecast these issues beforehand.

As a retail business, Walmart needs to perform data analysis to gain a betterunderstanding of its customers, their needs, and the market to formulate effectivebusiness strategies For example, Walmart can apply data analytics in the followingactivities:

1 Customer data analysis: Analyzing customer information such as shoppingand product behavior helps businesses understand customer needs and designappropriate business strategies for that customer segment.

2 Product data analysis: Analyzing data on product sales, pricing, and otherinformation helps businesses understand market opportunities and challengesand make decisions regarding suitable products to compete effectively.3 Inventory data analysis: Analyzing data on products and product forms in

warehouses helps businesses manage inventory effectively, ensuring abalance between supply and demand, and developing strategies to minimizewaste.

4 Sales data analysis: Analyzing sales transaction data helps businessesunderstand customer shopping trends, thereby developing strategies todeliver products through the right distribution channels and appropriatemarketing campaigns.

5 Pricing data analysis: Analyzing pricing data and pricing strategies helpsbusinesses understand competitors and decide on suitable prices for themarket.

With the enormous amount of data and information that Walmart has,managing and analyzing it efficiently is not an easy task Therefore, Walmart caninvest in developing technologies such as:

1 Mupd8: Mupd8 allows Walmart to aggregate data from various sources,including sales systems, inventory systems, and store websites These dataare integrated, processed, and analyzed to provide Walmart employees withaccurate information about retail store business operations.

2 Big Data technology: Big Data is processed using technologies such asApache Hadoop, Apache Spark, and Storm for business data analysis Big

Data technology allows the analysis and exploitation of large and complexdata to create useful information.

3 Hadoop: Apache Hadoop is an open-source platform designed to store,process, and analyze structured and unstructured big data Tools such asMapReduce, Hadoop Distributed File System (HDFS), and HBase are usedin Hadoop to analyze and manage data.

4 CRM tools: CRM, short for "Customer Relationship Management," is acustomer relationship management tool It is software or a customermanagement system that helps organizations and businesses managecustomer information, interact with customers, and manage customerrelationships CRM provides a comprehensive approach to information forbusinesses, allowing them to organize and manage customer information,sales and marketing activities It helps minimize manual work, improvesefficiency, and accuracy of sales and marketing activities.

5 Social Media Analytics: is the process of collecting, analyzing, andevaluating information from social media channels such as Facebook,Instagram, Twitter, LinkedIn, YouTube, and other platforms It is used tomeasure social media, understand customer behavior on social media, andmeasure the effectiveness of social media marketing campaigns.

6 Blockchain: is a technology that stores and transmits information securelyand reliably It consists of a chain of data blocks stored on various devicesand managed by a decentralized network, without a single centralizedmanagement center Blockchain is used to perform transactions and provethe origin and accuracy of information.

2.3.2 Develop Automation and Use Artificial Intelligence in Business Operations

The development of automation is carried out by using tools and techniques toautomate processes and tasks in various fields, aiming to minimize humaninvolvement in activities and optimize production processes or work Automationtools can be software, robots, or other digital devices At Walmart, automatingproduction and business operations can help increase efficiency and reduce costs byeliminating unnecessary manual work steps or optimizing operational processes forissues such as order management and inventory management.

Artificial intelligence (AI) is having a significant impact on the retail industry.AI applications in retail not only help enhance customer experience, but alsoimprove business efficiency Walmart can apply some of the benefits of artificialintelligence to business operations, including:

1 Enhance customer experience: AI can be used to analyze customer behaviorand preferences from collected data, thereby suggesting and personalizing

products, services, and content to enhance the personal experience for eachcustomer.

2 Optimize inventory management: AI can analyze data to predict customerbuying trends and needs, thereby developing automatic ordering models andefficient inventory management This helps reduce excess or insufficientinventory levels, while increasing sales and improving retailer efficiency.3 Automated customer service: AI can be used to develop chatbots or virtual

assistants to assist customers in information retrieval, purchase assistance,and problem-solving This reduces waiting time and enhances customersatisfaction.

4 Data analysis and product recommendations: AI has the ability to analyzecustomer data and provide suitable product recommendations This helpsincrease sales revenue, recommend complementary products, and increasecustomer interaction with the retail app.

5 Fraud detection: AI can be used to monitor and detect fraudulent behavior intransactions, thereby reducing risks and damages caused by fraud.

Thanks to artificial intelligence, Walmart can leverage data and technology toenhance customer experience, optimize operational processes, and increase businessefficiency.

2.3.3 Strengthen Information Security System

In the retail industry, information security is critical because retail stores oftenhold personal information of customers such as name, address, phone number,email, and payment account information Information security is to ensure theprivacy and security of customer information, financial information, and otherimportant information If customer information is leaked or stolen, the retail storewill lose the trust of customers and may face legal issues One mistake in thismatter can cause damage to the reputation, property, and operations of anorganization or business.

For Walmart - a large retail business in the world, they hold a huge, complexamount of information, so the issue of security is also very important They need tofurther develop their security system, possibly by using digital technologies such as:1 Threat Intelligence: is a technology used in network security to helporganizations and businesses detect network security risks before they cancause harm to the system Threat Intelligence collects and analyzesinformation about potential threats and hacker attack behaviors, therebyexploiting vulnerabilities in the organization's security system and providingtimely preventive measures This technology is used to identify new threats,verify illegal behaviors, and enhance the early detection capability of cyberattacks.

2 Zero-trust technology: is a new network security method, in which allrequests for access to network resources are strictly authenticated andverified, instead of relying on a default trust model Security policies in theZero-trust architecture are applied to each element of the system, includingusers, devices, applications, networks, infrastructure, and data.

3 IMPLEMENTATION

3.1 Planning

3.1.1 Defining the goal

The transformation must take place strongly at all stages of supply and sales.The goal by 2025 is to transform the company from a traditional retailer into theworld's largest innovative and innovative technology company.

Walmart's digital transformation strategy must be customer-centric Walmart'stechnology investments are all aimed at making shopping more convenient andeasier for customers, increasing customer satisfaction, and improving the overallshopping experience.

Overcome the limitations in the business model, solve the difficultiesencountered, increase competitiveness and develop the brand on a global scale.

Main tools: achievements in science and technology, Robot - artificialintelligence, Big data, cloud computing Etc

3.1.2 Detailed plan for each challenge

3.1.2.1 Big data analysis and application of new technologies in information management

Firstly, Big Data or "Big Data" is a term for data sets that are so huge andcomplex that it is difficult for traditional data processing software to collect,manage and the data will be processed within a allowed period of time Businessesuse this huge amount of data to analyze and transform into important information tosolve related problems Based on the development of the Industrial Revolution 4.0,Big Data has created a fertile ground in optimizing business processes ofenterprises, understanding target customers Set Walmart itself many challenges toadapt to the wave of the times.

With such a massive amount of data, it is not easy to transform data from itsraw form into usable data It involves many relatively complex processes such ascollecting, sifting data, analyzing, classifying, and synthesizing it into easy-to-use

categories It can be said that data analysis plays a very important role in thebusiness process No matter in any field or industry, Data Analytics is required inplanning and strategic planning.

Second, the Hadoop application supports data analytics to process and workwith huge amounts of data in Petabytes Hadoop is an open source Apacheframework that allows the development of distributed applications (distributedprocessing) to store and manage large data sets Hadoop implements theMapReduce model, where the application is broken down into different shards thatare run in parallel on many different nodes Hadoop is written in Java but stillsupports C++, Python, Perl by streaming mechanism Processing in a distributedenvironment, data stored in many different hardware, requires synchronousprocessing.

Thus, the application of big data analysis and the application of supportingtechnologies makes it easier for Walmart to use the huge amount of data collectedfrom customers to analyze and transform into important information for solverelated problems.

- Implementation Steps :✔ Map Updater App✔ Data Mining

✔ Mobile Big Data Analysis Methods

✔ First Applications Using Hadoop Data at Walmart- Timeline : 01/2018 - 12/2025

- Estimated cost: $150 million

3.1.2.2 Invest in Blockchain and analyze Big data on social networks to improve service quality and Marketing strategy

Firstly, consumers' awareness of product safety is increasing Accordingly,they have a need for traceability for the goods they want to consume Therefore, itis inevitable that Walmart provides detailed information about the links in thesupply cycle and authenticates that information, and the tool to do this is theapplication of blockchain to supply chain management Research on blockchainrevenue by industry 2017-2025 shows that after the financial industry, companies inthe manufacturing sector are tending to invest in this technology, especially foodcompanies Blockchain can help reduce the pressure of regulations, policies andrequirements on food safety for these businesses In particular, traceability isconsidered the key to solving the above problems Blockchain is a form ofdistributed ledger that helps solve a long-standing headache for businesses: trust.Simply put, it is a ledger that records transactions That is to say, it includes all thedata shared, authenticated and encrypted by the components in the chain.

Making all transactions in the network public – the essence of blockchain is tohelp create trust among consumers That is the greatest value that manufacturersaim for In a blockchain network, all members of the chain can see and authenticateinformation at any time From there, Walmart can save costs and reduce pressure onmanufacturers to prove the origin of products In order for this verification to work,the bank, its subsidiaries as well as the partners involved in the production processneed to verify the information for transactions in the chain Build customer trust,improve service quality and develop long-term brand image.

Second, another important application of Big data analytics that isstrategically important to Walmart is in the area of product management andmarketing Data analytics to help optimize marketing - marketing is no longer apurely creative field, but has evolved to depend closely on data Marketingorganizations use data analytics to determine the results of marketing campaignsand efforts and to guide investment decisions and target customers Demographicresearch, customer segmentation, association analysis, and other techniques enablemarketers to use large volumes of data on consumer purchases, group surveys to

understand and communicate strategies marketing strategy, as well as predictingpsychology and customer demand for products From there, there are suitable waysto allocate marketing touch points At the digital advertising platform, DataAnalytics is even more dominant in decision making Specifically as follows:

Business process data

The statistical data of business, revenue, profit, operating process; theindicators of corporate financial statements, loans, costs for each core process of thecampaign will help Walmart track and evaluate whether a marketing campaign willtrack how many people, calculate conversions in the process Which campaign'scustomer process is the highest, the percentage of customers coming from DigitalMarketing channels.

Product/Service data

The data related to services and products will help Walmart realize with theproduct lines they offer what is the best-selling item, the slowest-selling item, andwhat are the strengths and weaknesses in the strategy Walmart products are basedon detailed tables, diagrams, and images from raw data.

Customer data

These types of data tell a lot about Walmart's customers, which audience filespotential customers must focus on to increase brand awareness and driveconversions in them Where are the non-potential customers that should not allocatetheir own resources too much Analyzing data about their demographics, ages,genders, interests, habits, concerns, will help Walmart draw a more realisticportrait of its target customers from which to build : What are their mediacampaign goals, what are their customer-reaching platforms, what are the goalsWalmart wants from them?

If it is said that Marketing and improving service quality is the way to helpWalmart affirm its brand and value in the minds of customers, the application ofData Analyst and blockchain is the most effective means to help Walmart conquer

the road there Therefore, below is a feasible plan and a methodical implementationplan proposed for Walmart at this time.

- Estimated cost: $100 million

3.1.2.3 Development of automation and use of Robot - artificial intelligence

With an increasing number of customers, it is not easy to find quality humanresources who can fully meet the needs of customers Using that same humanresource to train experienced employees who are working for the company into ahigh-quality and experienced employee, you can combine the use of AI virtualassistants to support them Consulting assistants in new applications and in-storeshould also prepare an intelligent robot to serve customers For example, that robotwill simply greet customers if they have a need, inquire about their needs andadvise and direct customers to the appropriate stalls.

Robotic technology and automation have made great developments with greatapplicability Robots crept into each economic and production activity, social lifeand created great benefits with applicability to bring high performance to a numberof human activities And we are seeing those changes more and more clearly inrecent years, when artificial intelligence is no longer a vague concept with littleapplication, AI explodes and gives Robots new possibilities Advanced application,smarter Bringing smart robots to serve and take care of customers to shop at thestore is extremely necessary in the context of digital transformation beingincreasingly popular around the world today and of course Nike also This potentialopportunity cannot be missed.

Service robots are usually advanced robots in today's time, although most ofthem are also classified as weak artificial intelligence (there are 2 types of artificialintelligence: Weak artificial intelligence Narrow AI and weak artificialintelligence) strong artificial intelligence (Artificial General Intelligence) They arecreated with the purpose of serving the customer's service experience process, sothe integration of artificial intelligence technologies to help the Robot be able tounderstand and respond to information from customers in a timely manner Fast,accurate way is needed Some artificial intelligence software is integrated in theService Robot such as: Chatbot, Voicebot, Voice Biometric, Benefits that robotsbring in the service industry:

- Increase efficiency and customer care efficiency: The ability to respond toinformation quickly, accurately and continuously.

- Security: High security thanks to security technologies (Promoted when therobot is integrated with software such as voice biometrics, fingerprintbiometrics)

- Reduce operating costs: Reduce the cost of hiring staff, reduce the cost ofinvesting in many office equipment.

- Increase the quality of customer experience: Customers are served faster,the information is answered more accurately.

In the current era, artificial intelligence has achieved rapid development overthe years everyday Robot solutions born to replace human activities will be moreand more complete To successfully implement this digital transformation model,Walmart needs to have a good and sustainable management and control mechanism.

- Time: 1/2017 - 12/2024- Estimated cost: $150 million

3.1.2.4 Application of AI and new technology to promote online shopping

The results of a number of studies and surveys on consumer behavior andhabits during and after the Covid-19 pandemic show that consumers have changedtheir habits and increased online shopping due to the impact of the epidemic Thesehabits have been ingrained and will probably continue to thrive in the future Asonline shopping via social media messages becomes a habit of many consumersduring and after the pandemic, messages exchanged when purchasing(conversational business) are becoming the main method for users to reach out tocustomers learn information, experience products, services, brands Instead ofcalling or emailing, customers tend to text and expect a quick response.

This is new consumer demand; At the same time, it is a trend that brings manyopportunities for businesses of all sizes to connect and develop their onlinebusiness Seizing this opportunity, Walmart has focused on developing business one-commerce platforms through an effective tool that is AI, increasing customerexperience and convenience when shopping online.

AI uses natural language processing to improve visual search results for onlineshoppers The tool has visual search capabilities, allowing shoppers to discoveradditional products and enhance the customer experience Consumers can take apicture of a friend's new shoes or new gym clothes, upload it, and then AI allowsconsumers to easily find similar items through e-commerce stores

In addition to using images to search, users can also search by voice Whenintegrating AI, the tool can understand what the customer says Currently, thisfeature is increasingly improved in recognizing voices and phrases.

Voice search has previously been popularized by smart devices with built-invirtual assistants such as Amazon's Alexa, Apple's Siri or Google's GoogleAssistant Of course, Walmart needs to continue to optimize their web platforms tobe able to handle voice searches.

According to Conversica, at least 33% of leads are not followed up by a salesteam This means that qualified potential buyers are being left behind, not havingaccess to the product At this time, AI becomes a powerful helper Through voiceinput, the system will record requests, answer customer queries and problems, andeven identify new opportunities for the sales team.

E-commerce is currently focused on user experience Using AI through onlinechatbots is one way to foster conversation in the digital age In fact, chatbots canautomate ordering processes It is also an effective way to provide 24/7 customerservice at a low cost With chatbots, e-commerce websites can increase conversionrates by tailoring the online experience for consumers For brands, AI can moreintelligently and efficiently predict customer behavior and needs, and make helpfulrecommendations.

Now, Walmart needs to continue to improve its AI tools to better suit marketneeds Artificial intelligence in e-commerce will affect transactions, retaincustomers, and create satisfaction Seizing the opportunity to apply AI, Walmart hasdeployed and cooperated with partner companies to consolidate AI capabilities,thereby creating more optimal solutions.

- Implementation Steps :

✔ Applying AI technology to “Investigation Tool”✔ Tokenization technology for online payment✔ Shopycat-Walmart Gift Suggestion Tool✔ Social network survey

- Time: 1/2021-12/2024- Estimated cost: $120 million

3.1.2.5 Transforming security threat intelligence tools and structures

Managing a huge data warehouse with millions of customer records aroundthe world makes Walmart constantly improve to avoid loss of customerinformation, especially focusing on important information The loss of customerinformation is extremely worry It not only causes loss for customers, but alsocauses a series of risks for businesses

Revenue has dropped dramatically

When Walmart has a vulnerability in information security whether it is anetwork failure, a hardware or software failure, or a sudden cyber attack Then thelost data can take hours or sometimes days to recover, which will cause businessesto lose sales as well as shut down resources to focus on recovery.

Getting into legal trouble

The loss of data will cause businesses to face many legal problems andlawsuits If it is customer data, you can face fines for not complying with laws andregulations related to customer information security Getting caught up in theselegal books will make the business look bad and lose credibility with customers.

Loss of inherent credibility

In the Internet age news is always updated continuously If your companydoes not have the ability to effectively secure customer information and losecustomer data, then negative publicity will certainly damage the business'sreputation forever Therefore, even a small mistake will make customers turn awayfrom you.

First, instead of assuming everything behind the corporate firewall is secure,Walmart can transform a Zero Trust model that assumes a breach and verifies eachrequest as if it originated in the open network No matter where the requestoriginates or accesses the resource, Zero Trust always reminds "never trust, alwaysverify".Each request before access is granted must be fully encrypted andauthenticated The principles of micro-segmentation and least-privileged access are

applied to minimize territory expansion Rich information and analytical methodsare used to detect and respond to anomalies in real time.

Second, Walmart can use Threat Intelligence technology- simply understoodas knowledge to help identify security threats and make the right decisions Threatintelligence can help solve problems such as How to update huge amounts ofinformation about security threats such as bad actors, attack methods,vulnerabilities, objects ? How to get more knowledge about future security threats.How to inform managers of the dangers and consequences of a particular threat.

Threat intelligence is evidence-based knowledge—including context,mechanisms, metrics, and relevant information about an existing threat or threat toan asset—that can be used to inform decide on the treatment response to that threat– Gartner Aggregates collected data, assesses and applies it to security threats,threat factors, exploits, malware, vulnerabilities, and other threats Invasion stat– SANS Institute

Thus, Walmart needs to have a specific plan in transforming informationstructure and applying new technologies to help classify threats with huge amountsof data, warnings, attack classification and information provision useful.

- Implementation Steps :

✔ Focus on important data

✔ The world's largest private cloud at Walmart- Data Cafe✔ Threat Intelligence Technology

✔ Research on Zero-trust architecture transformation- Time: 1/2016 - 12/2025

- Estimated cost: $90 million

3.1.2.6 CRM tools and predictive analytics to adapt to changing consumer buying habits

Today, customers are increasingly demanding on product quality, features,designs and prices The birth of a series of retail brands has increased competitionin this field more than ever Walmart is forced to take measures to adapt to changesin customer tastes, meeting the needs and preferences of many segments andconsumer classes At the same time, constantly improve service quality andshopping experience.

CRM - a tool that acts as a single repository to bring together your sales,marketing, customer support activities, helping to streamline processes, policies andpeople in one platform The goal of CRM is to maintain business relationships,devise a strategy to attract many potential customers to profit for the business CRMtools with many functions help businesses manage relationships with customersfrom marketing, sales, to care services Sales staff will record the information ofpotential customers and perform a series of activities in stages from contact,appraisal, proposal to turning the opportunity into a successful customer Activitiesinclude emailing, calling, sending quotes, requesting demos, etc After receiving theresults of the analysis, employees can focus on the final group of potentialcustomers

In addition, predicting consumer behavior with Predictive Analytics also helpsWalmart focus more on potential items and focus on increasing sales Predictiveanalytics refers to the use of AI machine learning and historical data, , to predictwhat will happen in the future It is fed into a mathematical model that looks at keytrends and patterns in the data The model then analyzes the collected data topredict future consumption trends.

Using information from Predictive Analytics can help suggest actions thatcould influence positive changes in performance Predictive analytics help to see inadvance whether a change will help them reduce risk, improve operations, andincrease revenue Essentially, predictive analytics answers the question, “What ismost likely to happen based on my current data, and what can I do to change that

outcome?” Predictive analytics are used to identify market tastes and potentialcustomer groups, thereby increasing profitss and help businesses attract, and grow,their most profitable strengths.

- Implementation Steps :✔ Use CRM tools✔ Social genomics

✔ Custom recommendations- Time: 01/2020-12/2024

- Estimated cost: $70 million

3.1.2.7 Using Big data and AI in inventory management and sales forecasting

First, Sales Forecast is an estimate of the amount of sales a business, (in cashor in units of product) can sell in a certain period of time under a marketing planthat has been planned through and under a set of assumed economic conditions.

Forecasting data needs to be fed into the enterprise's marketing decisionsupport system for use by sales managers and managers of other functions Formany businesses, sales forecasting is a key tool in sales planning and control.

Sales forecasting methods at Walmart:

- Customer Expectation Method: This approach involves asking customers or

product users about the volume of goods they plan to buy in the future.

- Time-series analyzes: This method involves analyzing past sales figures and

the impact of factors influencing sales (long-term growth trends, ups anddowns) cyclical nature, seasonal changes).

- Correlation analysis: This approach involves measuring the relationship

between a dependent variable, sales volume, and one or more independentvariables that can explain an increase or decrease in sales volume.

- Other Quantitative Techniques: Many statistical and mathematical

techniques can be used to predict or estimate future sales.

Big data is a useful tool to help analyze the flow of data collected fromcustomer surveys, historical product consumption, the amount of correspondingproducts, thereby predicting monthly revenue with high precision This helpsWalmart have an overview of the business situation and profits so that it can soonplan to adjust and develop in the future.

Second, in inventory management, besides controlling inventory fluctuationsin real time, you need to predict the import and export plan to ensure the operationof your business Business runs smoothly and quickly.

Inventory forecasting is the analysis of future sales data and other factors ofthe business to plan the amount of inventory to be stocked This is considered the"key" to help optimize revenue and increase customer satisfaction.

Some information commonly used to forecast demand for production orimport-export products includes:

- Past purchasing trends: These are usually data from 2-5 years ago, used to

analyze the sales performance of the business.

- Forecasts from suppliers: These forecasts will help you understand trends

from suppliers, so you can quickly adapt to any situation flexibly.

- Seasonal change: The amount of goods sold will change at certain times, so

the manufacturer needs to change to match the production plan.

- Business rules or restrictions: Control production cycle limitations such as

warehouse capacity limits to account for the quantity of goods to beproduced.

Goods supply chain planning is an important element in inventorymanagement, helping to eliminate the risk of having too much inventory in stock,thereby minimizing costs and increasing profits for Walmart At the same time, thisalso helps to satisfy its customers by always ensuring the supply of goods Themultinational retail giant operates nearly 12,000 stores with 2.3 million employeesin 28 countries while managing approximately $32 billion worth of inventory Thatmeans that even if the company only slightly increased the efficiency of the supply

chain, by about 5%, for example, it contributed to billions of dollars in additionalrevenue.

With the application of AI, Walmart can perform management activities suchas data collection, inventory quickly and easily This allows businesses toeffectively drive revenue From the data source of AI can also flexibly adjust ordersand other items as required before shipping to the local warehouse Walmart hasmany warehouses in the chain, AI will support the connection to find the mostsuitable route to transport inventory Anticipating demand and planning specificlogistics in advance will help reduce a portion of transportation costs.

With the use of AI, these tools can come up with algorithms to predict newtrends Besides, some AI-based tools can make more accurate predictions thanexperts This will help reduce the amount of inventory to a minimum, while thewarehouse management process will be much simpler These predictions can thenbe used to optimize the number of vehicles arriving at local depots, whileminimizing operational costs with appropriate staffing plans.

Using AI in inventory management also helps to detect problems and damagein products through computer vision technology When defects are detected in time,Walmart can determine the severity of the problem, determining the type of damageto the product From there, it is easy to take practical actions to minimize damage tothe maximum before more serious problems arise.

- Implementation Steps:

✔ Forecast of in-store sales

✔ The “Demand forecast engine” tool helps forecast and manageinventory

✔ Use market basket analysis to categorize shopping trips

- Time: 01/2017 - 12/2024- Estimated cost: $100 million

3.2 Implementing

3.2.1 Detailed plan

3.2.1.1 Big data analysis and application of new technology in informationmanagement

Step 1: Map update application:

Walmart developed MuPD8 for Fast Data to build a general-purpose real-timestream processing platform that can address issues such as performance andscalability, etc With Muppd8, stream processing applications can emphasize thequality of the generated data Muppd8 makes data fast, hadoop compute modelmapreduce do for big data.

Mupt8 allows developers to write applications easily and process them usingthe Update Map framework (the Map and Update operators workflow), an easy wayto now calculate the transmission Writing an application as a combination ofcustom map and update operators, big data developers can focus on the businesslogic of the application and let Mupt8 handle the data loading and delivery acrossdifferent CPU cores.

For example, an application can be written to register the Twitter firehose ofevery tweet written; One such application could analyze tweets to identify the mostinfluential users on Twitter or identify events that stand out as suddenly as they

happen Alternatively, an application can be written to log all user activity on aWeb site; Such an application can detect service issues encountered by users as theyoccur, or calculate recommendations for the user's next steps based on updateactivity.

Step 2: Data mining:

Walmart CEO Bill Simon said that their data aggregation capabilities areunmatched

Walmart uses data mining to uncover patterns in point-of-sale data Datamining helps Walmart find patterns that can be used to provide productrecommendations to users based on which products were purchased together orwhich were purchased prior to purchasing a particular product Effective datamining at Walmart has increased customer conversion rates A familiar example ofeffective data mining through association rule learning at Walmart is – thediscovery that strawberry tart sales increased sevenfold before the storm AfterWalmart identifies a link between strawberry tarts and Hurricanes through datamining, Walmart will place all strawberry tarts at the checkout counter before astorm Another notable example is that during Halloween, sales analysts at Walmartcan view real-time data and notice that a particular cookie, common across allwalmart stores, has 2 stores do not sell any kind of cookies The situation wasimmediately investigated and it was discovered that simple inventory control hadprevented the cookies from being sold on the shelves This issue was fixedimmediately to avoid further loss of sales.

Walmart tracks and targets each individual consumer Walmart has thecomplete customer data of nearly 145 million Americans, of which 60% are USadults Walmart collects information about what customers buy, where they live,and what products they buy like via Wifi at the store The big data team at WalmartLabs analyzes every action that can be taken on Walmart.com — including whatconsumers buy in-store and online, trends on social media, local events, weatherchanges etc Millions of customers enjoy a personalized shopping experience.

Step 3: Mobile big data analysis method:

According to Deloitte, mobile-influenced offline sales are predicted to reach$700 billion by the end of 2016 Walmart is harnessing the power of big data todrive tools and services aimed at helping Execute your mobile strategy.

More than half of Walmart's customers use Smartphones, and among these35% of shoppers are adults, representing almost three-quarters of all Walmartcustomers Mobile customers are extremely important to Walmart as smartphoneshoppers make 4 more trips and spend 77% more in-store As a result, mobile usersaccount for 1/3 of Walmart traffic annually, and about 40% during the holidays.

“E-commerce is closely related to mobile purchases The world's largestretailer will use big data to enhance the in-store consumer shopping experience."“Our mobile strategy is both simple and bold We want to make mobile toolsindispensable for our customers as they shop in our stores and online “Retailingwill improve each customer’s personalized experience” to compete in the future,and all of this will happen, said Gib Thomas, Senior Vice President of Mobile andDigital at Walmart out on the small screen in their hands.”

Walmart is leveraging big data analytics to develop predictive capabilities ontheir mobile app Mobile apps create shopping lists by analyzing data about whatcustomers and others buy weekly Walmart's mobile app includes a list of productsrecommended to customers and helps them by offering discounts on similarproducts on Walmart.com.

Another way to harness the power of big data analytics that Walmart isadopting is to leverage real-time analytics — when customers shop Walmart stores.The geolocation feature of Walmart's mobile app will sense whenever a user entersa Walmart store in the United States The app asks the user to enter “Store Mode”.The mobile app's store mode helps users scan QE codes to get discounts and specialoffers on the products they want to buy.

Step 4: First applications using Hadoop data at Walmart:

Savings Catcher: An app that notifies customers whenever Walmart offers adiscount on an item a customer has recently purchased The app then sends the giftvoucher to the customer to cover the price difference.

eReceipts App: provides customers with electronic copies of their purchases.A Walmart mapping application: uses Hadoop to maintain the most recentmaps of 1000 Walmart stores globally These maps pinpoint the exact location of asmall bar of soap in the spacious Walmart store.

⮚ Risk management:

Firstly, when using Mupd8, Walmart may face some risks, including:

1 System errors: Mupd8 may encounter system errors, interrupting theprocess of updating product information and affecting Walmart's sales operations.

2 Inaccurate information: If suppliers provide incomplete or inaccurateinformation in Mupd8, it will lead to inaccurate product information on Walmart'swebsite This can make it difficult for customers to find and purchase products.

3 Data loss: If the data stored in Mupd8 is lost, it can be a serious problem forsuppliers and Walmart Suppliers may lose important information about theirproducts and Walmart may suffer losses in sales.

4 Hacking and intrusions: If hackers or individuals intrude and stealimportant product information from Mupd8, there is a risk of counterfeit ordamaged products being sold on Walmart's website.

5 Competition: Competition among suppliers on Mupd8 can lead toincomplete and inaccurate product information This can lead to customers losingconfidence in the products on Walmart's website.

Secondly, data mining at Walmart may encounter some risks as follows:1 Privacy violations: Collecting Walmart's customer data may violatecustomer privacy rights If Walmart fails to comply with privacy protection

regulations for their customers' data, they may face censorship or heavy fines fromgovernments or privacy advocacy organizations.

2 Copyright infringement: Mining data from Walmart's suppliers or otherwebsites may infringe upon the copyright of the owners If Walmart does not takecare to ensure that they are using data that is legally allowed and not infringingupon copyright, they may face significant copyright litigation.

3 Data insecurity: If data mined from Walmart is lost or stolen, importantsystem information about pricing, customers, revenue, and other details can becompromised and used for wrong purposes, leading to serious consequences.

4 Competition: Competing companies may attempt to mine Walmart's data togain a competitive edge If Walmart does not have timely security and protectionmeasures, they may face illegal competition and harm to their market share.

3.2.1.2 Invest in Blockchain and analyze Big data on social networks toimprove service quality and Marketing strategy

Step 1: Launch new products:

Walmart is looking for trending products so it can recommend them toWalmart stores around the world by leveraging social media data to For example,Walmart analyzed social media data to find out if users were interested in “CakePops.” Walmart was quick to respond to this data analysis, and Cake Pops are nowavailable at Walmart stores.

Step 2: Consumers in the production department:

Walmart is using big data and IoT sensors to find out how long customersspend on average at fresh stalls This analysis helped them discover that if freshproduce looked fresh enough, people would linger longer, and this is the secret togetting customers to buy more from Walmart stores.

Step 3: Big data solution on social networks: