WALMART WEAVES AI INTO THE BACK OFFICE
INTRODUCTION
Because Walmart is an industry giant, creating a more agile technology stack capable of capitalizing on cutting-edge technologies is a feat.The key to transformation is to refine internal technical capabilities and capitalize data, which creates a solid foundation for innovation that is critical to maintaining a loyal base and attracting new customers.
Walmart has a vast technological ecosystem that encompasses more than 5,300 stores in the United States. UU., With back-office capabilities and customer service.
The 2.2 million Walmart associates generate terabytes of data.
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That environment lends itself well to artificial intelligence, which requires good and clean data, according to Yazdi Bagli, senior vice president of global business services and emerging technology at Walmart, speaking in an interview with CIO Dive. If the company can get a perspective and apply it to the process, it can save money and reinvest in the consumer experience.
In total, "Walmart is like a data scientist's dream," he said.
Put artificial intelligence in the Back-office.
Bagli spent 23 years working in shared services at Procter & Gamble before joining Walmart earlier this year. While P & G is a global brand with familiar names such as Pampers and Tide, its scale pales in comparison to Walmart.P & G began to implement robotic process automation (RPA) technology about four years ago, which automated what a human could do on different platforms. In particular, Bagli supervised the contract to be paid, which handles 5.5 million invoices.
But Walmart handles more than 200 million invoices. Such a complex environment is ripe for automation and artificial intelligence.
More companies are investing in artificial intelligence and technology is proving to have a solid ROI. More than 80% of executives obtained a financial return on investments in artificial intelligence, according to a Deloitte survey of 1,100 IT executives and business lines. In all sectors, improving current products, optimizing internal operations and making better decisions are the main benefits of adopting AI.
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Many companies are struggling to apply AI, either without understanding where to start or with the hope of scaling the AI from the beginning. However, organizations are getting more successful by starting small-scale with AI implementations, focusing on the main problems or problematic projects and scaling up over time.
Walmart created a compelling business need for artificial intelligence: eliminate the costs of back-office systems to invest in the front-end, giving the organization a margin of implementation. For starters, Bagli wanted to show how artificial intelligence could affect the processes of basic products that are already in the administrative office.
Commodity processes generally include accounts payable, general accounting and some compensation and benefits.
Processing exceptions
Automation is also appropriate for shared service organizations, which spend most of their time handling exceptions. Everything an ERP can not do on its own is an exception, which is where people enter.Companies can apply RPA to automate the handling of exceptions, solving problems that must occur before they occur. Bagli prefers to apply RPA in an upward direction, which eliminates the need for exceptional handling.
Normally, RPA automates repetitive and repetitive processes, which are routine and logical, according to Mark Davison, partner and global leader, robotic process and cognitive automation at ISG.
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When it comes to ERP, the most automated task involves exceptions in the processing of invoices, Davison said in an interview with CIO Dive. When an invoice arrives, it is compared with a purchase order and, in some cases, also with a receipt document. The ERP will perform the pairing when an invoice arrives, but sometimes that pairing creates errors.
The business rules for remedying those mistakes are the same, again and again, according to Davison. Instead of commissioning humans to follow business rules, companies like Walmart can program robots to do bill reconciliation.
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The successful implementation of the technology does not happen overnight. Bagli thinks of two-year arcs, and in the next two years he hopes to get at least a couple of big wins by automating end-to-end processes.
In the long term, Balgi hopes to scale the AI in the rest of the company. For example, there is a large amount of automation in marketing operations, which coordinates the interactions between the supplier and the retailer and performs tasks as exhibits in the store.
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