Tutorial Lecture 3: Strategic Use of IT Nike is a major publicly traded sportswear and equipment supplier based in the United

States. The company is headquartered in the Portland metropolitan area of Oregon. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $16 billion USD in 2007. As of 2008, it employed over 30,000 people worldwide. Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines and Malaysia. 1. Provide suggestions on how the three types of strategic uses of IT in business, as listed below, would be best adopted by Nike Working inward: business to employee Working outward: business-to-customer Working across: business-to-business 2. Building relationships with various players in Nike business ecosystem should be the strategic objective for use of IT. Differentiate between loose, close, and tight relationships which would be exercised by Nike. 3. Discuss how might Nike implement electronic tender? 4. What is the cheap revolution and how Nike could make use of the cheap revolution? 5. Discuss 3 key benefits of intranets applied to the above short case study

Answer 1. Working Inward: Business-To-Employee Building an Intranet Fostering A Sense of Belonging Working Outward: Business-To-Customer Getting Closer to Customers Working Across: Business-To-Business Coordinating with Suppliers 2. Differentiate between loose, close and tight relationships Loose: Provide ad hoc and limited access to internal information The information may or may not be confidential Low risks and costs Close: Two parties exchange information in a formal manner Some of the information may be confidential Moderate risks (sharing confidentialities) and costs Tight: Two parties share at least one business process Data can be highly confidential, such as key events, price changes High risks and costs (requires integration) 3. Discuss how might Nike implement electronic tender? An electronic tender is the capability to monitor a product or service using computers. e.g. car diagnostics, package tracking, customer interactions The options for electronic tenders are endless, but the main objective is to get closer to the customer e.g. product & service research and collaboration, 4. What is the cheap revolution and how Nike could make use of the cheap revolution? Shifting from buying expensive proprietary hardware to cheap generic products. Ways to use cheap revolution: run on cheap servers such as Linux use it till it breaks and then discard (do not subscribe to a maintenance policy with the IT vendor/supplier) labor outsourcing opt for free open-source software instead of expensive proprietary products use cost-savings telecommunications e.g. VoIP teleconference instead of face-to-face meetings with third parties

5. Discuss 3 key benefits of intranets applied to the above short case study Intranets are private company networks that use Internet technologies and protocols to reach employees. The benefits of Intranet More efficient and cost-effective way to provide access to company information such as corporate mission and values, internal forms, rules, processes, news (can be interactive, e.g. comments) 24/7 availability, browser interface, easier development and less maintenance ($), faster updates, information integrity Intranets can provide the foundation for creating corporate culture and climate by giving a means for communication and creating communities