http://www.informationweek.com/wal-marts-way/47902662

Surprisingly, Walmart dedicates less than 1% of total annual revenue to their IT department, yet the Walmart IT department is one of the most efficient IT groups in the world. Why is this group of IT workers so efficient? What are they doing that others are not?

First of all, Walmart is using Radio Frequency Identification, like many other large retail companies to monitor how many good are being bought off the shelves, which goods are still in inventory and which goods are entering the firms inventory warehouse. I think that the invention of RFID has helped large retail giants such as Walmart in achieving constant sufficient inventory and efficient flow from goods from suppliers to inventory to store shelves. I believe that without RFID tags such companies would struggle in monitoring inventory and result in inefficient flow of goods to the store shelves.

Ok, now we know that the use of RFID is essential to the Walmart’s success in terms of IT but what is it doing that is making it better than other firms in terms Business Technology Management?

Linda Dillman, vice president of Walmart states that “The strength of this division is, we are doers and do things faster than lightning”. “”We can implement things faster than anyone could with a third party. We run the entire world out of the facilities in this area at a cost that no one can touch”. I believe that Dillman is suggesting the Walmart’s BTM team is self sufficient and doesn’t need to have any outside help. Perhaps this is why they are so efficient, because Walmart’s BTM team is self-sufficient and doesn’t employ any outside help it performs all tasks from within in the team their is more effective communication and collaboration than if they were to outsource some tasks.