Walmart's Innovation and Technology Strategy

Oct 8, 2024

Lecture Notes: Walmart's Technological Transformation

Introduction

  • Suresh Kumar: Executive Vice President and Walmart's first Global Technology Officer.
    • Tasked with driving innovation at Walmart.
    • 25 years of experience from Google and Microsoft.

Walmart's Tech Transformation

  • Building a global team of 20,000 technologists.
  • Main Goal: Transform Walmart's retail experience using technology.
  • Tech Integration in Business:
    • Enhancing customer experiences.
    • Disrupting retail through technology.
    • Using data to drive efficiencies.
    • Supporting associates to improve customer service.

The Current Retail Disruption Cycle

  • Retail transformations occur roughly every 20 years.
  • Last major shift: Rise of e-commerce driven by Amazon.
  • Current Disruption Factors:
    • Advances in technology.
    • Mobile computing power.
    • Deep learning and natural language processing.
  • Shift in customer discovery and inspiration for products.
  • Need for holistic customer experiences (online and in-store).

Walmart's Technological Strategy

  • Two-track approach: In-house development and partnerships (e.g., Adobe).
  • Investment Areas:
    1. Customer Experience:
      • Example: "Be Your Own Model" for outfit shopping using machine learning.
      • Focus on reducing friction and enhancing trust.
    2. Associate Enablement:
      • Example: "WISPIC" using AR for stocking efficiency.
      • Enhancing associate efficiency and focus.
    3. Business Transformation:
      • Automation and optimization using data insights.
      • Localized assortments and real-time supply chain optimization.

Data as a Commodity

  • Walmart's scale provides significant customer data insights.
  • Goals:
    • Personalize customer experiences.
    • Create an open ecosystem benefiting customers, partners, suppliers.

Role of Cryptocurrency

  • Crypto as a potential disruptor in retail transactions.
  • Involvement in both the metaverse and live-stream shopping experiences.
  • Crypto to facilitate transactions and value derivation for customers.
  • Importance in evolving payment options and methods.

Conclusion

  • Walmart's future includes integrating crypto and adapting to technological changes.
  • Focus on being present where customers need.