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DIGITAL TRANSFORMATION REPORT

COMPANY- ADIDAS

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Table of Contents
Introduction:...................................................................................................................................................4

Task -1...........................................................................................................................................................5

Task- 2...........................................................................................................................................................7

Hyperawareness:........................................................................................................................................7

Make informed decisions:..........................................................................................................................8

Execute fast:...............................................................................................................................................8

Task – 3........................................................................................................................................................10

1. Prirtizing customer satisfaction:..........................................................................................................10

2. Cultivating collaborative culture:........................................................................................................10

3. Nuturing a culture of innovation:.........................................................................................................11

4. Embarcing a digital champion:...........................................................................................................11

Task- 4.........................................................................................................................................................13

Conclusion:..................................................................................................................................................15

References:...................................................................................................................................................16

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Task -1

Adidas is a globally operating company that focuses on creating, producing and promoting
athletic footwear, clothing, accessories, and sports gear. It operates in the sports apparel industry
and stands as one of the largest manufacturers of sportswear globally. With a rich history during
back to 1949, adidas has established a leader in the global market, serving customers in more
than 160 countries. The company is a leading global sportswear manufacturer, known for its
extensive operations across subsidiaries, retail stores, and de-commerce channels. Its wide
customer base encompasses athletes, sports enthusiasts, and fashion-conscious individuals. . The
company’s portfolio includes performance-oriented products for carious sports, lifestyle
collections, and collaborations with celebrities and designers. Additionally, adidas provides
innovative sports equipment and digital fitness solutions to enhance customers ‘overall athletic
performance. The industry is characterized by rapid product cycles, intense competitions, and
increasing customer expectations for seamless digital experiences.

There are a number of areas that are impacted by digital disruption such as e-commerce &
Omnichannel retailing, supply chain management, smart manufacturing, data analytics and
personalization.

A. E-commerce & Omnichannel retailing: digital disruption has profoundly affected the
retail landscape, forcing organizations like adidas to adapt and transform their operations.
The rise of e-commerce platforms, mobile shopping, and changing consumer behavior
presented both challenges and opportunities. Online sales have gained significant
momentum, with customers seeking convenience, personalization, and enhanced
shopping experiences (Reinartz, et.al, 2019.).
B. Supply chain management and smart manufacturing: the digital era has transformed
supply chain management, leading to increased transparency, efficiency, and
responsiveness. For adidas, embracing digital disruption in supply chain processes can
enable better inventory management, demand forecasting and real-time data analysis.
Technologies like block chain, internet of things, and artificial intelligence can help

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 optimize production, reduce lead times, enhance product customization, and minimize
waste.
C. Data analytics and personalization: through advanced analytics and AI-powered insights,
adidas can gain a deep understanding of customer preferences, purchase patterns, and
behaviors. This data can fuel personal marketing campaigns, product recommendations
and tailored offerings, fostering customer’s loyalty and enhancing brand engagement. By
investing in data analytics capabilities can create a competitive advantage by offering
relevant and compelling experiences across its digital platforms (Erol, et.al, 2020,).

The key opportunities the CIO should suggest the company is discussed below:

A. Enhancing digital capabilities: the CIO soul focus on building and enhancing adidas
’digital capabilities to facilitate the organization’s transformation journey. Hi includes
investing in cutting-edge technologies, fostering innovation, and creating a culture of
digital agility.
B. Customer-centricity and personalization: leveraging consumer data and advanced
analytics, the CIO should drive initiative aimed at delivering personalized experiences.
Tis can involve developing robust CRM systems, implemnt6ing AI-driven
personalization strategies, and utilizing data to gain actionable insights into customer
preferences and behaviors.
C. Agile and responsive supply chain: the CIO should explore opportunities to digitalize the
supply chain, embracing technologies, such as IoT, block chain, and AI. This can enable
real-time visibility, end-to end integration, and predictive analytics for supply chain
optimization. By adopting an agile and responsive supply chain, adidas can streamline
operations, reduce costs, and meet the increasing demands of customers, thereby gaining
a competitive advantage in the market (Gupta and S., 2018).

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Task- 2
As the newly appointed Chief information officer (CIO) for adidas, this report aims to outline a
proposal for enhancing the organization’s digital business agility. In a market heavily influenced
by technology, it is crucial for adidas to embrace digital transformation initiatives and leverage
emerging technologies to remain competitive. By adopting the digital business agility model, and
in order to address future market needs, adidas can concentrate on three essential elements:
hyperawareness, informed decision-making, and swift execution. This endeavor will emphasize
the utilization if various initiatives and digital technologies, including machine kerning, internet
of things, artificial intelligence, and virtual/ augmented reality, enabling adidas to detect changes
and adopt its business model accordingly.

Hyperawareness:
It refers to the aptitude to sense and understand market changes and customer needs rapidly. To
enhance hyperawareness, adidas can employ the following initiatives and technologies:

Big data analytics: implement advanced analytics platforms to gather and perform in-
depth analysis on vast amounts of data obtained from diverse sources, including social media
platforms, customer feedback channels, and sales patterns. By leveraging machine learning
algorithms, adidas can gain insights into consumer preferences, a market trends, and potential
disruptions, enabling proactive decision-making.

Internet of things (IoT): it enables the utilization of IoT devices and sensors to gather
real-time data on product usage, customer behavior, and supply chain operations. This data can
be used to identify patterns, predict demand, and optimize production and distribution processes
accordingly.

Social listening and sentiment analysis: employ AI- powered tools to monitor social
media platforms and other online channels, analyzing customer sentiments feedback, and
emerging trends. This information can help adidas stay attuned to customer expectations and
preferences (Collis and D.J., 2019.).

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Make informed decisions:
Making informed decisions involves using data-drive insights to support strategic choices. To
enhance this aspect, adidas can implement the following initiatives and technologies:

Predictive analytics: utilize advanced analytics techniques, including predictive

modelling and forecasting to anticipate market shifts, costumer behavior, and demand patterns.
This enables adidas to make proactive decisions regarding product development, marketing
campaigns, and inventory management.

Artificial Intelligence (AI): AI technologies, such as language processing (NLP) and

machine learning algorithms, to automate data analysis, generate personalized
recommendations, and improve customer experiences. Ai can also applied in Chabot and
virtual assistants to enhance customer support (Shirodkar, et.al, 2021).

Collaborative decision-making platforms: implement digital collaboration tools and

platforms that facilitate cross-functional collaboration and information sharing. This enables
agile decision-making by bringing together key stakeholde4rs and fostering a culture of
innovation and continuous improvement.

Execute fast:
It involves the ability to rapidly implement changes and initiations to meet market needs. To
enhance execution speed, adidas can employ the following initiatives and technologies:

Agile development methodologies: embrace agile frameworks such as scrum or

kanban, to enable iterative and adaptive development processes. This allows for quicker response
to changing market dynamics and faster time-to market for new product and features.

Robotic process automation (RPA): Utilize robotic process automation (RPA) to

streamline and automate recurring and labor-intense activities in multiple departments including

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but not limiting inventory management, order processing and customer support. This reduces
errors, increases efficiency, and frees up employees’ time to focus on value-added activities.

Virtual / augmented reality (VR/ AR): leverage VR/AR technologies to enhance the
customer experiences such as virtual try-on for footwear and apparel, indicative product displays,
and immersive brand storytelling. This provides a competitive edge and enables adidas to engage
customers in innovative ways (Chen, et.al, 2022).

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Task – 3
Digital transformation requires a shift in organizational culture to embrace and leverage
technology effectively. To create a digital-ready culture at adidas, the following
recommendations can be implemented:

1. Prioritizing customer satisfaction

To prioritize customers in the digital transformation journey, adidas should adapt a customer-
centric approach. This involves understanding customer needs, preferences, and behaviors
through data analytics, market research, and customer feedback.by leveraging technologies like
artificial intelligence and machine leaning, adidas can gather and analyze customer data to
personalize experiences, offer relevant product recommendations, and enhance customer
engagement. Implementing customer relationship management (CRM) systems can also help in
managing customer interactions and improving customer satisfaction. This approach should be
supported by academic literature on consumer-centricity and digital marketing strategies:

Real case example- Nike’s digital; transformation efforts have focused on putting customers at
the center. Nike has invested in technology to gather data on individual customer’s preferences;
enabling personalized experiences through its app. Customers can customize and order products
online, track their fitness goals, and connect with other athletes. The company’s focus on
customer-centricity has helped it build strong relationships and boast brand loyalty (Malinowski
and A., 2019).

2. Cultivating collaborative culture:

Building a collaborative culture is essential for digital transformation success. Adidas should
encourage cross-functional and collaboration and break down silos within the organization. This
can be achieved by implementing collaboration tools and platforms that facilitate
communication, knowledge sharing and teamwork. Emphasizing the importance of collaboration
ad providing training on collaborative tools and techniques will foster a culture of openness,
cooperation and shared goals. Academic literature on organizational collaboration and teamwork
can provide insights into best practices and strategies.

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Real case example: spotify promotes a collaborative culture by fostering a sense of ownership
and autonomy amnion its employees. The company encourages employees to work on self-
organized teams known as “squads” and provides them with the freedom to experiment and
innovate; these squads collaborate closely with other teams through regular communication
channels, ensuring a cross- functional and collaborative approach of digital product
development.

3. Nurturing a culture of innovation:

To foster a culture of innovation, adidas should promote experimentation, risk-taking, and
continuous learning. This can be accomplished by creating innovation labs or centers where
employees can delve into emerging technologies, experiment with new ideas, and cultivate ion
innovative solutions. Encouraging a growth mindset and providing opportunities for training and
up skilling will help employees adapt to technological changes and embrace innovation. Sharing
success stories and recognizing innovative efforts will also contribute to fostering an innovation
driven culture. Academic literature on innovation management and organizational learning can
provide insights and frameworks for establishing such a culture (Komiljonovna and K.Z., 2023).

Real case example: Google’s “20%” time policy fosters innovation and creativity by granting
employees the freedom to dedicate 20% of their work hours to self-selected projects. The
implementation of this strategy has resulted in the creation of highly popular offerings such as
Gmail and Google maps. By encouraging employees to explore their passions and experiment
with new ideas Google has nurtured culture of innovation that drives its digital transformation
efforts.

4. Embracing a digital champion:

In order for adidas to emerge as a digital champion, it is crucial for the company to allocate
resources towards enhancing its digital capabilities and fostering digital literacy throughout the
entire organization. This entails implementing training initiatives that empower employees with
essential digital skills and knowledge. Leadership should actively support and promote digital
initiatives, communicate the benefits of digital transformation, and lead by example. Creating
clear digital strategies and goals will guide employs towards digital adoption and ensure
alignment with business objectives. Academic literature on digital leadership and change
management can provide valuable insights for becoming digital champion.

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Real case example: Wal-Mart transformed its traditional retail business into a digital champion
by investing in e-commerce, data analytics, and supply chain technologies. The company
provided training to its employees, introduced digital tools for inventory management and
customer analytics, and fostered a digital first mindset throughout the organization. Wal-Mart’s
digital transformation journey has enabled it to compete effectively in the rapidly evolving retail
industry (Boss and F.E., 2022).

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Task- 4
As the new CIO for adidas, I have evaluated the digital transformation goals of the organization
and identified the leadership style that will support its successful implementation. Based on
Goleman’s leadership styles, the orgnization needs to develop the “visionary” leadership style
to support its digital transformation efforts. The visionary leadership style embodies leaders who
ignite inspire their teams by presenting a vivid outlook of the future and fostering ingenuity and
originality.

To support this recommendation; let’s explore the academic literature that highlights the
importance of the visionary leadership styles in driving digital transformation.

 Research by Hakanen and Schaufeli (2012) indicates that visionary leaders create a sense
of purpose and direction, which is crucial during time of organizational change such as
digital transformation (de Oliveira Dias, et.al, 2022).
 According to a study by Stollberger and Bergsnabb (2019), visionary leadership is
positively related to innovation and technological advancements within an organization.
To aligns with the goals of digital transformation, which aims to leverage technology for
organizational growth and competitiveness (Dias, et.al, 2022.).
 The work of Bhatti, Zaheer, and Rasli (2018) highlights that visionary leaders inspire
employees to embrace change and adapt to new technologies. This is essential in a digital

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 transformation journey where employees need to embrace new ways of working and
adopt digital tools and processes (Yeow, et.al, 2018).

To cultivate a forward-thinking leadership style among the leaders in the organization, various
methods and strategies can be employed, including the utilization of the GROW model:

 Goal setting: encourage leaders to set clear and inspiring goals related to organization’s
digital transformation. These goals should be aligned with the overall’s vision and create
a sense of purpose among employees.
 Reflective practices: promote self-reflection among leaders to evaluate their own
leadership style sand identify areas for growth. This can be achieved through techniques
Like journalizing or engaging in regular coaching conversations.
 Continuous learning: provide leaders with opportunities for continuous learning and
development in areas related to digital transformation. This can include workshops,
seminars, or online sources that focus on innovation, emerging technologies, and digital
leadership skills (Zhu and J., 2021).
 Collaboration and networking: encourage leaders to collaborate with peers. Both
internally, and externally, to exchange ideas and best practices related to digital
transformation. This can be facilitated through networking events, conferences, or online
communities (Barbero and M.V., 2020).

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Conclusion:
In conclusion, this digital transformation report highlights the key areas of focus for adidas, a
multinational sportswear manufacturer, in enhancing its digital capabilities and businesses
agility. The report emphasizes the importance of adapting to digital disruption in areas such as e-
commerce, supply china management, and data analytics to meet customer expectations and gain
a competitive edge. The recommendations provided for the CIO of adidas revolve around
enhancing digital capabilities, driving customer-centricity and personalization, and establishing
an agile and responsive supply chain. Additionally, the report emphasizes the need to foster a
digital-ready culture by prioritizing customers, promoting collaboration and innovation, and
investing a digital literacy. Finally the report suggests the visionary leadership style to inspire
and motivate teams throughout the organizations. By implementing these strategies and
leveraging emerging technologies, adidas can successfully navigate the digital landscape and
position itself for long-term success in the sports apparel industry.

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Barbero, M.V., (2020). Etiquetados: migrant youth, criminalization, and everyday mobility in
Buenos Aires. Ethnic and Racial Studies, 43(9), pp.1618-1635.

Boss, F.E., (2022). Mastering consumer driven challenges-a critical analysis of Adidas´ growth
opportunities (Doctoral dissertation).

Chen, T., Li, L. and Zheng, J., (2022), November. A Study on the Brand Culture of Avant-Garde
Clothing with Yohji Yamamoto as an Example. In 2022 International Conference on Science
Education and Art Appreciation (SEAA 2022) (pp. 88-95). Atlantis Press.

Collis, D.J., (2019). The strategic management of execution. Harvard Business School Strategy
Unit Working Paper, (20-026).

de Oliveira Dias, M., Pan, J., Vieira, P. and Pereira, L.J.D., (2022). From Plato to e-Leaders: The
Evolution of Leadership Theories and Styles.

Dias, M.D.O., Pan, J., Vieira, P.D.S. and Pereira, L.J.D., (2022). From Plato to e-Leaders: The
Evolution of Leadership Theories and Styles. Economics and Business Quarterly Reviews, 5(2).

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innovative technologies (ISMSIT) (pp. 1-7). IEEE.

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Gupta, S., (2018). Driving digital strategy: A guide to reimagining your business. Harvard
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Malinowski, A., (2019). The Adidas College Basketball Scandal and Its Aftermath. Marq. Sports
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Reinartz, W., Wiegand, N. and Imschloss, M., (2019). The impact of digital transformation on
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