The head of Wal-Mart’s mobile division recently stated that Big Data analytics will play a major role in the company’s mobile strategy. Wikibon analyst Jeff Kelly explained what the executive meant by that in his latest interview with SiliconAngle NewsDesk host Kristin Feledy.

Kelly says that Wal-Mart is working on new ways to customize its mobile apps. The retailer is planning to enhance its applications with geo-tracking functionality that will enable it to customize product recommendations, discounts and promotions based on the merchandise in the particular store the user is visiting.

Kelly notes that this initiative is not the first time Wal-Mart has turned to Big Data for business insights. The retailer started aggregating and analyzing information about its supply chain in the 90s, long before the modern definition of Big Data was even coined. Wal-Mart used the data to optimize inventory and increase efficiencies across various parts of its business.

The company has not spent the last two decades idly. Kelly mentions that it has established Wal-Mart Labs, a research division that focuses on finding new applications for analytics, mobile and other new technologies.

A mobile device is both a source of data and a content delivery mechanism. This duality creates many new opportunities for engaging customers, but Kelly stresses that retailers like Wal-Mart must also take privacy and security into consideration. For example, some customers may not be interested in visiting stores that actively track their movement and activities. Another factor that the industry will have to take into account, and soon, is the potential backlash from regulators: history has proven that legislation around the use of new technologies can do more harm than good.