Management Information Systems in Business Operations

Many companies have adopted the use of information systems in their different operations because they are critical in business operations. For instance, information systems have made the decision-making process easy and allowed data storage for business operations. Organizations are using various management information systems, which offer them a competitive advantage over their competitors. Companies listed on the New York Stock Exchange have adopted the use of information systems as a strategy to remain competitive in the market. Two of these companies are the Nike and the Adidas Company, which have developed and improved their information systems to ease their operations’ performance and outdo each other in the market.

Nike Company started as an American sportswear before diversifying to other products. The company was formally known as Blue Ribbon Sports, founded in 1964 by Bill Bower man, a track and field coach, and his student Phil Knight (“NIKE, Inc. – Company Profile, Information, Business Description, History, Background Information on NIKE, Inc.,” 2021). Its first century of existence opened several outlets and distributors in different countries, having established a high market share. Being a field coach, Bill was inspired to provide the proper support to runners. He was determined to rebrand the Tiger shoe with the cushioned inner sole and soft sponge rubber in the forefoot to increase comfortability and still be stylish (Ahmed et al., 2016). This resulted in a shift from Tiger shoes to Nike shoes. Apart from shoes, Nike company design, develop, and sells athletic footwear, apparel, Nike’s basketballs, and other accessories worldwide.

Adidas is another publicly-traded company ranked among the best world’s valuable brands. It serves as a great competitor to Nike Company. The company deals with footwear, sportswear, and equipment such as balls, apparel, and toiletries (“Adidas Story – Profile, History, Founder, Founded, CEO | Fashion, and Retail Companies | SuccessStory,” 2021). Adidas was established in Germany by Adolf Dassler, talented in making sports shoes in his mother’s laundry (“Adidas Story – Profile, History, Founder, Founded, CEO | Fashion, and Retail Companies | SuccessStory,” 2021). Inspired by the urge to improve athletic performance, Adolf Dassler developed spiked running shoes made from rubber. The company started in a washroom before conquering the world. The company’s humble beginning inspires it to work better and reach its goals. The company focuses on celebrity collaboration to market its brand. This marketing approach has enabled the company to win, acquire more customers, and open stores worldwide.

 Nike and Adidas companies continue to win majorly in the shoe industry. Adoptions of different information systems have enabled companies to achieve high performance. For instance, Nike uses the transaction processing system to collect, manipulate, process and modify all transactional data (Ahmed et al., 2016). The transaction processing system has enabled the company to be accountable for all its transactions by enabling tracking and upholding supervision. The TPS is a critical competitive strategy since it fosters the reliability and confidence of customers during transactions. Additionally, Nike uses the supply management system to establish work networks with its different outlets, and the main headquarter (Ahmed et al., 2016). This has allowed the company to acquire global collaborations and ease making decisions for product designs.  Despite the advantages of a transactional processing system, the system requires highly trained personnel to install compatible hardware and software.

Adidas, on the other hand, has also adopted several information systems. The company’s success is linked to its ability to thrive in information systems technology. The company established a well-organized database system to meet market demands on time. Additionally, the company uses a customer relationship management system to develop a good relationship with customers.  For instance, the information system issue each customer with an identity card to easily access its official website and input on its products (Ranjan, 2016). This system has increased customer satisfaction and competitive advantage over Nike because its products are based on its customer’s needs. It also makes customers feel like part of the company, fostering loyalty. Additionally, the company uses supply management systems to manage all its processes and maintain a good relationship with suppliers. To enhance these systems’ efficiency and effectiveness, the company has strong internet, intranet, and extranets.

Nike and Adidas companies continue to use their information system to thrive in the market.  For instance, both have adopted similar information systems and continue pushing one another in and out of their competitive edges. Both companies use the supply chain management systems to work closely with their suppliers, who produce their products at a low cost and in high quality. Such systems ensure the companies meet the demand in the market. Additionally, the system has allowed the companies to make crucial logistic decisions with local partners. Thus, the system has had tremendous importance to both companies, including competitive advantage.

As already mentioned, companies use their information systems to achieve a competitive advantage. Information systems allow companies to maintain their products at a low cost, differentiate products and services, strengthening relationships between customers and suppliers, and increasing their market entry (Altamony et al., 2021).  For instance, Adidas’ customer relationship management system has allowed the company to achieve high customer satisfaction than its competitors. The system recognizes the company’s customers’ need and produces products that satisfy those needs. Additionally, the supply chain management system has allowed the company to achieve a competitive advantage. The system allows businesses to gain connections across the world, market their products to their customers, and quickly deliver necessary information to their customers. Faster transmission of information to suppliers, for example, allows them to know what to supply based on the customers’ demands. This, in turn, satisfy customers’ needs, thus achieving overall efficiency for the company.

Besides a competitive advantage, companies use information systems to manage data collection and manipulate data. Data collection and manipulation have helped the company to carry its predictive analysis. Information systems allow reaching their customers using customer relationship management systems. After accessing their customers, companies achieve control over customer’s data and utilize the data to achieve inventory management and enhance customer satisfaction. Companies optimize inventory across all channels and establish demand predictions based on the available customer data. An optimised inventory allows customers to purchase what they are interested in and get suggestions for other products they may be interested in. Companies such as Nike are using data science and sensing to collect and manipulate data from their customers. Some go the extra mile to use artificial intelligence to predict the products that may interest new markets based on the currently available consumer data.  Therefore, data collection and manipulation have allowed companies to understand their customers and fulfil their wants.

In conclusion, information systems are very important to all business operations. Organizations need to integrate information systems in their operations for better performance. Nike and Adidas Company have continued to flourish in the market because of their continued use of information systems. These information systems have allowed the companies to achieve a competitive advantage by satisfying their customer’s needs and streamlining logistics.

References

Adidas Story – Profile, History, Founder, Founded, CEO | Fashion, and Retail Companies | SuccessStory. Successstory.com. (2021). Retrieved 19 March 2021, from https://successstory.com/companies/adidas-ag.

Ahmed, R., Brohi, H., Bhutto, A., & Prithiana, J. (2016). Strategic Marketing Plan of Nike. Research Gate. https://doi.org/10.13140/RG.2.1.1558.3122

Altamony, H., Masa’deh, R., Turki Alshurideh, M., & Obeidat, B. (2021). Information Systems for Competitive Advantage: Implementation of an Organizational Strategic Management Process. Research Gate. Retrieved 19 March 2021, from https://www.researchgate.net/publication/260082007_Information_Systems_for_Competitive_Advantage_Implementation_of_an_Organisational_Strategic_Management_Process.

NIKE, Inc. – Company Profile, Information, Business Description, History, Background Information on NIKE, Inc.. Referenceforbusiness.com. (2021). Retrieved 19 March 2021, from https://www.referenceforbusiness.com/history2/99/NIKE-Inc.html.

Ranjan, W. (2016). A STUDY OF ANALYZING STRATEGIC CHANGES AND ORGANIZATION ENVIRONMENT IN ADIDAS INC ORGANIZATION. Research Gate. https://doi.org/10.13140/RG.2.1.2135.0006