Transactions: Its Impact on Business and Technology especially on Wal-Mart Essay


This paper gives a brief description about the impact and the usage of RFID ( Radio Frequency Identification ) Technology in one of the largest retail giants Wal-Mart. Some of Wal-Mart’s experiences in the country have been discussed. The advantages and disadvantages of utilizing the RFID engineering have besides been looked into. The hereafter of Wal-Mart with regard to online gross revenues and the company’s demand be able to accommodate to continued alterations in the country of engineering. are all looked into.


RFID engineering has been used in the country of supply concatenation for many old ages. Retailers have been utilizing RFID tickets to track merchandises. acquire accurate stock list and to track merchandise gross revenues. There are many advantages of RFID which the retail merchants tend to work even though doing the bit has high development and fabrication costs. but in the long tally the net incomes will decidedly demo a rise. This paper discusses this technology’s usage in the retail market particularly with Wal-Mart.

Wal-Mart and RFID

Some of the people are upset about RFID tickets because there is a security hazard that is attached to it. Harmonizing to Murray. J ( 2006 ) . cloning and hacking of RFID tickets are pose danger to the authorities every bit good as companies and persons. RFID tickets in e-passports that hold biometric information can be easy copied into other RFID ticket. This will impact besides affect merchandises such as fabrication constituents or medical specialties. It is really easy to utilize RFID readers and tickets particularly id merchandises are in terminals. topographic points where there is least spot of security. This could besides be a agency to distribute viruses. tickets inexpensive and imitative merchandises.


RFID has been efficaciously used as a portion of the bigger supply concatenation. Harmonizing to Effective Data Inc. ( 2008 ) . UCCnet is the cardinal depository for all merchandise information that is operated by the Uniform Council Code for industries such as retail. This information is maintained by supplier base of the single companies and the update information is maintained is maintained online or electronically. The chief purpose of UCCnet is to better the efficiency of supply concatenation by doing available up-to-date merchandise information which is accurate ; this information therefore compiles with the industry criterions. Many retail merchants and providers have adopted UCCnet because they want to better the truth of merchandise inside informations for all retail merchants through the system till concluding Pos scanning and the check-out procedure procedure

Advantages and Disadvantage of RFID

As mentioned earlier there is a disadvantage of hive awaying dealing information. One such incident is with a Wal-Mart clerk who one time found that stolen Numberss of TJX were used in Florida. The company had now been cognizant that their security system was really hapless and the audit study had shown that many of the regulations and ordinances laid out by Visa and Mastercard were non being followed. There was no WEP encoding. package spots were losing and most significantly firewalls.

Experts so were called in to track these credits and debit card hackers. Wal-Mart so made a list of all the card Numberss that had been compromised. There were immense losingss involved. So a measure by the Congress in Minnesota barred companies from hive awaying any consumer information after the dealing was completed and authorized ( Dow Jones Company Inc. . 2007 ) . Choping. cloning of confidential information leads to double and incorrect information. thereby impacting the stock list and the gross revenues records. It has so been seen that this wrong information later causes the overall net incomes of the company to travel down. which intern affects the stock monetary values and the consumer assurance.

Wal-Mart Website

Harmonizing to Zellner. W ( 1999 ) . the web site has enabled Wal-Mart to bind up with other concerns to provide merchandises such as single orders straight to the consumer’s places. It has so taken the aid of jobbers to give the support services so that their online concern can make good. Their on-line retailing site has more so 25 classs all on discounted degrees every bit good as the best high priced theoretical accounts of electronic goods.

All these merchandises have been customized to the demands of the consumer as he/she gets to see merely the relevant merchandises. Wal-Mart is a trade name in itself. it already ahs a consumer base that it is trusting to widen upon by conveying on the on-line revolution. Gross saless are so expected to more so double as there will be many people who will now be shopping online besides. particularly those who can non go all the manner to the retail shop.

Wal-Mart has made a batch of money because of its difficult policies on employee rewards and low merchandise monetary values. Wal-Mart has hence earned a considerable some of net income to enable it to use the net incomes to startup its ain package development for their concern. There is ever competition in the retail sector and everyone is trusting to remain better than the best. Wal-Mart has its ain scheme that it wants to follow so it would ever be better have they had package developed that is customized to merely their demands so that their competition doesn’t acquire a puff of their behaviors. Thingss have been reasonably successful boulder clay now and Wal-Mart has been able to maintain up with the promotions of engineering.

For Wal-Mart to go on package development it is of import that the company has good expertness in the functional countries of development. There are different theoretical accounts being adopted by other retail merchants. the company hence should be able to come up with its ain retail theoretical account depending on the experience of its pool of developers.

The benefits Wal-Mart will hold is that it will hold the freedom to develop complete customized package and would be able to follow and follow its package to the of all time altering engineering alternatively of another 3rd party to make it for them. The costs incurred will be comparatively high because paying for experient staff. so for merchandise development and besides for continued research and development will decidedly necessitate more so the usual resources available.


It is ever of import to understand the security measures that will be taken when the RFID merchandise is being put in usage. So that it will non acquire into the custodies of fraudsters and hackers. But many of the benefits for the provider out weigh the disadvantages such as invoice tax write-offs is reduced. no topographic point for administrative mistakes. reduced lead clip for all new merchandise inside informations by doing the full procedure of updating and adding a batch more faster and accurate. There is a batch of competition in the retail sector and it is of import that Wal-Mart stays the best so that it can profit from the usage of engineering in the close hereafter.


Murray. J ( 2006 ) . Security fears endanger RFID acceptance. IT Week. Retrieved on 05 March 2008 from hypertext transfer protocol: //www. mrtdanalysis. org/press/English/Security_fears_threaten_RFID_adoption. pdf

Effective Data Inc. ( 2008 ) . UCCnet White Paper. Effective Data. Retrieved on 05

March 2008 from hypertext transfer protocol: //www. effective-

informations. com/white_papers/UCCNet % 20White % 20Paper. pdf

Dow Jones Company Inc. ( 2007 ) . Interrupting the Code. How the credit-card informations went

out wireless door in biggest known larceny. retail merchants hebdomad security lost 1000000s

of Numberss. The Wall Street Journal. Retrieved on 05

March 2008

hypertext transfer protocol: //www. arubanetworks. com/pdf/company/WSJ_TJX_Marshalls. pdf

Zellner. W ( 1999 ) . When Wal-Mart Flexes Its Cybermuscles.

Plans for a beefed-up Web site make E-tailers nervous. Business Week. Retrieved on 05 March 2008. hypertext transfer protocol: //www. businessweek. com/1999/99_30/b3639158. htm

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