This document discusses Walmart's efforts to innovate in China through partnerships. It describes how Walmart addressed problems like limited delivery range by establishing depots and low in-store checkout usage by introducing scan and go features. Walmart's Omega 8 program connects it with startups to test solutions over 60 days with clear goals and budgets. This helps reduce experimentation costs. Omega 8 has explored technologies like AI replenishment, autonomous vehicles, smart shelves, and more across multiple business areas as Walmart works to innovate in a large corporation.

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Innovating in a Large Corporation
Ben Hassing
August 30, 2019

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Walmart has a heritage of innovation

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Walmart has operated in China for 24 years

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Our partnerships in China support our core innovation
中国的合作伙伴支持尔玛核心业务的创新

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Problem:
Our last mile delivery range is only 2.5 km
and we can’t serve all of the market
because we don’t have enough stores

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Established depots to expand Online-to-Offline (O2O) range

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Problem:
The customer doesn’t want to wait in line
at checkout and we don’t know the
customer

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60% of offline transactions via Scan & Go mini-program

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Problem:
JD.com fulfillment costs were rising and
competition was intensifying

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Initiated O2O Fulfilled by Walmart (FBW)
with partner JD.com

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70 – 20 - 10
Retail Technology Powered by People

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Walmart is a large company
Add Text

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Not all local pain points could be solved
by Walmart or our China partners

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Reduce the cost of experimentation

18. 18© 2018 Walmart China | Confidential | For Internal Use Only | Future Store Portfolio 2019-3C H I N A
Omega 8 by Walmart China connects local startups to a
Seeing and connecting outside
Systematic digesting processSolid internal process to realize value
1
23

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6 principles to reduce cost of experimentation
Strict time frame
60 days test time
3
Reasonable budget
Limited investment
4
One startup, one POC
Only test one POC in with a
startup in the first 60 days
5
Clear concept to
prove
Test highest margin of error
2
Clear vision
From POC to scale-up
1
Engage in small
group
One from tech, one from
business and one from Omega 8
6

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21. 21© 2018 Walmart China | Confidential | For Internal Use Only | Future Store Portfolio 2019-3C H I N A
Omega 8 proof of concepts span multiple business domains
AI for install replenishment
Operations
AGV for break pack
Supply Chain
Smart fresh forecasting with AI
Replenishment
Smart shelf serving scale
Operations
Holo Lens for virtual store tour
Format Re-invention:
Ultrasonic for instore
activities
Marketing
Nanotech thermal insulation
Omni-Channel
Smart picking
Omni-Channel

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Some lessons in the journey…
• Know the problem, not the solution
• Be clear on how success will be measured
• Prepare and mitigate differences in culture (startup and
corporate)
• Establish governance on internal decision rights

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Thank You!