Leading through Digital Disruption

Table of Contents

Introduction......................................................................................................................................2

TASK 1: The case for change..........................................................................................................2

Task 2: Gaining Digital Business Agility........................................................................................4

 Hyperawareness....................................................................................................................5

 Make informed decisions......................................................................................................6

 Fast execution.......................................................................................................................7

TASK 3 Create a digital-ready culture............................................................................................8

1. Putting customers first..........................................................................................................9

2. Creating a collaborative culture............................................................................................9

3. Instilling a culture of innovation...........................................................................................9

4. Becoming a digital-champion.............................................................................................10

TASK 4 Steel collaboration...........................................................................................................10

TASK 5 Develop leaders...............................................................................................................11

 Attributes............................................................................................................................11

 Behavior..............................................................................................................................12

Conclusion.....................................................................................................................................12

References......................................................................................................................................12
 Introduction
Digital transformation is defined as the integration of digital technology into all elements of a

market, drastically altering how you work and providing value to consumers. It's also a cultural

transformation that requires businesses to continuously question the current quo, innovate, and

learn to embrace failure. Digital transformation is necessary for all organizations, large and

small. Almost every lecture, panel discussion, blog post, or study on how organizations can stay

innovative and prosperous in a growing digital environment conveys this message loud and

clear[ CITATION Cen19 \l 1033 ]. “In the present competitive environment, when organizations

are incorporating modern techniques into their operations to improve the firm's overall

efficiency, digital transformation is a must for any corporation. The current research is based on

Nike. It's a well-known footwear company that caters to customers all around the world. The

focus of the present project will be on Nike's digital transformation”. It will describe the goals

and dangers that digital transformation poses to the firm. The research will show how Nike can

develop a digitally prepared culture. The report will go into great detail on the leader's ability and

behavior in managing the firm's digital transformation.

TASK 1: The case for change

 “Digital transformation of Nike”

Nike is the most well-known sports footwear brand. It is a well-known brand that can transition

from conventional to digital operations. The present state of Nike's operations was discussed by

the company's management in 2010[ CITATION Cos20 \l 1033 ]. It has been determined that

“the firm's operations are considerable, but not sufficient to ensure its long-term viability. In the

digital age, the corporation must integrate big data solutions” that will improve the business's

efficiency and productivity and help it achieve market success. Nike developed an app that

allowed for leg scanning, and via this scanning, the corporation was able to learn about the
regions in which the shoe projects needed to improve to succeed in the market. “Nike launched

the Nike Snkrs application, which has helped the company boost sales”. Nike's senior

management discovered that the company has to digitalize its processes and bring in innovation

to establish a sustainable edge. Otherwise, it may not be able to stay in the business for a long

time[ CITATION Eva18 \l 1033 ].

 Threats

 Nike is a solid company with sufficient “financial resources, all of which are being

effectively utilized to create significant income for the business unit. However, when it

comes to internet transformation, Nike would have to invest a significant amount of

money, increasing the financial risk of the business unit”.

 Consumer behavior shifts are another key danger to the firm, as “customers may become

distracted by new trends and want a different form of footwear”. Nike faces the risk of

losing sales if customer behavior changes, rendering it unable to recoup its digital

transformation costs [ CITATION Ger17 \l 1033 ]. The major challenge that Nike may

face in the digital transition is high completion, since many competitors, such as Adidas

as well as others, use the current technology to interact with customers regularly. Many

businesses have created a strong internet presence, making it challenging for them to

manage their revenues in such a highly competitive market.

 Another key danger to the company is Omni channels since a new payment mechanism

might harm the business [ CITATION Goe18 \l 1033 ].

 Objective
  Nike believes that digital transformation will enable the company to supply valuable

items to a larger audience. Its major goal is to build consumer relationships and become

the world's largest shoe retailer.

Task 2: Gaining Digital Business Agility

Business agility refers to a company's capacity to respond quickly to market changes by

managing processes and resources in a flexible manner that maximizes business value. It refers

to a company's ability to activate, update, alter, or adapt its processes quickly. Hyperawareness,

educated decision-making, and quick execution are the three pillars that support it. Every firm

must build 'digital business agility to respond quickly and effectively to emerging challenges to

its operations as well as grab new market possibilities before competitors do[ CITATION Jel20 \l

1033 ].

Figure 1 “Digital

Business Model by

the Global

Center for Digital

Business

Transformation, 2018”
  Hyperawareness
Hyperawareness refers to a Nike's ability to recognize and track shifts in the business

environment. Companies that are hyperaware are difficult to destabilize because they can detect

weaknesses and adapt their models and procedures in real-time. Traditional competitors'

strengths and weaknesses, as well as the potential influence of new business entrants, are all

known to an agile organization. For Nike to make educated decisions, correct data must be

collected, analyzed, adjusted, packaged, and circulated to the organization for experts to critique

and offer suggestions. It requires not just improving the major, strategic decisions that determine

the company's long-term future, but also a slew of smaller choices taken by employees daily.

Through automation and data, technology accelerates the pace of decision processes with 'quick

decisions.' However, owing to organizational complexity, institutional inertia, uncertainties and

second-guessing, territorial conflicts, turf battles, and a reluctance to take a stance in essential

resources, it is frequently delayed in large firms[ CITATION Löf18 \l 1033 ].

 Make informed decisions

The company's judgments are made following an extensive investigation. Because digital

transformation is such a large choice, it requires a lot of information about the market and the

value of this judgment.

Collect rival information: Nike must gather information around its rivals. It can use Porter's five

forces model to obtain information on its rivals. This framework enables the company to identify

and enhance its competitive position in the market. Another important method for gathering

information is ratio analysis. This ratio analysis is used to evaluate the operating cash flow

situation of the firm to those of its rivals. Furthermore, the company can assess its market

performance [ CITATION Mee20 \l 1033 ].

Enterprises can use the PESTEL model to determine the extent to which political factors affect

Nike Company’s operations. It may also recognize how differences in macroeconomic

circumstances, social conditions, and other factors affect the operation of the business unit. The

company may acquire the necessary data to assist the organization in achieving successful

implementation by making the best judgments [ CITATION Osm18 \l 1033 ].

Market trend assessment is often regarded as the most effective means of gathering data. This

strategy can assist Nike in learning more about patterns that may have an impact on operational

effectiveness. This can assist the company in designing footwear in new areas to improve

product sales. These developments have an impact on market demand, which can affect Nike's

revenue. Nike can handle its transition from manual to digital in a big way by acquiring the

essential information upon those components, allowing it to interact with customers significantly

and serve people well [ CITATION Ram18 \l 1033 ].

 Fast execution
Change may be tough to manage as well as accept in the workplace. Nike is preparing for a

digital revolution, which might cause problems for the company. Any time an entity makes a

change, it risks losing income, changing customer attitudes, and so on. In such a situation, Nike

must be prepared to deal with all of these challenges to succeed in the marketplace; alternatively,

it would lose its competitive edge[ CITATION Ria17 \l 1033 ]. Nike is expected to make swift

judgments to properly handle all of these digital transformation developments in the workforce.

Nike must employ a variety of strategies to make a speedy conclusion. These are described as

follows:

Analytical, Rational, approach: Nike employs a similar strategy to effectively make changes.

All of Nike's significant individuals are given a justification for the adjustments, and they are
shown the impact of the company's changes. Management considers the modifications'

practicality and makes a recommendation. Nike intends to make improvements to its business

model and go digital. This would need a significant investment, but executives have stated that

digital transformation will allow them to better evaluate trends and engage with customers and

other partners. The argument is valid, and individuals demonstrate that they embrace the

situation. Nike can achieve success and effectively make changes in the corporation in this

manner[ CITATION Suz19 \l 1033 ].

Political behavior approach: Nike may use this strategy to analyze real-world difficulties that

may arise as a result of operational adjustments. Nike's key stakeholders may be adversely

affected by the industry's change choice. These stakeholders are highly impacted by the

company's decision since they have an interconnected exchange connection [ CITATION

Eva18 \l 1033 ]. Nike should provide all management with “information about the changes so

that they may learn about them and express their opinions before the changes are implemented in

the workplace”. The government changed the pay rate, and Nike told all of its employees about

it. Nike notifies its investors, management, suppliers, and other important stakeholders about

changes in government conditions and conveys the firm's decision in response to such

developments. This aids the firm in preparing people to accept the firm's choice and

demonstrating a good mindset so that changes may be implemented efficiently [ CITATION

Jel20 \l 1033 ].

TASK 3 Create a digital-ready culture

Nike needs competent people and talented staff to complete its digital transformation. This

digital change will not be feasible without them. “People are needed to help Nike with its digital

transformation, although this can only happen if Nike's leaders establish more digital-ready
culture. Nike executives may create a digital-ready culture in their business unit and implement

digital transformation across the company in a variety of ways” [ CITATION Osm18 \l 1033 ].

Figure 2 Features of a Digital-Ready Culture by Think with Google (2017)

1. Putting customers first

The customer-centric approach is more than just a plan. It's a company's entire philosophy that

promotes a great customer experience across the entire customer lifecycle. Every time a

company like this takes a choice, it considers the impact it will have on its consumers. New

potential for enterprise firms emerge when Nike's technology and strategy priorities the

requirements of its customers. That's why forward-thinking companies are putting money into

digital transformations that prioritise consumers and their continued prospects[ CITATION

Mee20 \l 1033 ].

2. Creating a collaborative culture

Nike should support external recruiting strategies to find suitable people to work on the digital

tools on a large scale. Because current workers typically labor, internal recruiting cannot provide
appropriate outcomes for the company. The company should establish contact with recruiting

firms and post job openings on its website[ CITATION Via191 \l 1033 ].

Nike should provide training to its employees so that “they may participate in the company's

digital transformation choice. Employees of Nike who are currently employed are unable to

utilize Digital DNA or social networks on a professional level”. [ CITATION Mee20 \l 1033 ]

Claim that the business can teach them and help them comprehend the real process of using these

tools and technologies. Nike's “trainers may give on-the-job and off-the-job training to ensure

that employees are engaged and comfortable while working for the company”.

3. Instilling a culture of innovation

Rewards: Giving incentives to “employees is a wonderful strategy that Nike's management may

use to foster a digital-ready environment in the company. People may find it difficult to operate

efficiently with digital technologies, thus they reject change. In this situation, the company's

management must give incentives, prizes, and recognition to encourage people to perform hard

in the new environment. This may assist the leaders in achieving the intended outcome”

[ CITATION Osm18 \l 1033 ].

4. Becoming a digital-champion
Another fantastic method that Nike's official and informal leaders may use to establish a

technology culture in the company is to use participatory leadership. By integrating workers in

the judgment process, the company may improve employee engagement. “People will feel

appreciated as a result, and they will be more willing to assist management in implementing the

digital revolution in the company”[ CITATION Suz19 \l 1033 ].

TASK 4 Steel collaboration

Nike is the most well-known and well-known brand in the footwear sector, with a strong brand

identity. The company needs to implement an appropriate collaboration solution that will allow
employees to participate in decision-making [ CITATION Zak19 \l 1033 ]. Nike's management

must focus on enhancing communication within the company as a collaborative tool. This may

make it easier for the business unit to communicate information and avoid worker

misunderstanding throughout the digital transition. Nike wants to provide an open platform

where anybody may voice their thoughts and opinions about the digital transition. “This would

be more beneficial to Nike in terms of studying the role of each team member in decision-

making. Top management can provide the essential paperwork with all of the digital

transformation specifics”, and each employee must have the authorization to offer their thoughts

on such material. In this way, the visibility of leaders' contributions to decision-making may be

improved [ CITATION Sta21 \l 1033 ]. As a collaborative tool, the organization should also

employ social networking sites. In recent years, social media has surpassed all other forms of

communication as the most common mode of communication. The company can create

professional social networking sites where executives can gather individuals to discuss the digital

transformation and its results. This would make it easier to contact all employees and improve

their involvement in adopting digital improvements at work. The company should also use blogs

and wiki entries to increase staff involvement in judgment. Internal feedback by teammates may

also assist leaders to acquire favorable answers from workers, and this evaluation can help

leaders realize how visible they are [ CITATION Cor20 \l 1033 ].

TASK 5 Develop leaders

The company's main choice is digital transformation, as well as to ensure success, executives

must have the right skills and behaviors. Leaders who lack the necessary abilities will be unable

to properly execute these reforms.

  Attributes
Communication: A successful leader must be able to communicate effectively. This type of

communication allows leaders to communicate with and influence other employees.

Awareness. This may assist Nike in removing ambiguity and gaining employee agreement to

decide on digital transformation [ CITATION Liu211 \l 1033 ].

Innovative and imaginative: A leader must be both. Leaders stand out from the crowd because of

their ability to think beyond the box. Digital transformation may be accomplished in a company

by applying innovative concepts that do not place undue strain on people while also considerably

improving employee performance.

Active listener: A director must be able to carefully hear others. An excellent listener pays

attention to others' points of view and responds quickly to their questions. This is useful in

encouraging individuals to have a good attitude toward leaders and to carefully follow their

decisions.

Motivational: “A strong leader must be able to motivate people to embrace obstacles and fully

implement the company's digital transformation”[ CITATION LiS201 \l 1033 ].

 Behavior
Positive attitude: For the digital transformation initiative, a leader with a positive attitude in any

situation must be picked. This may assist to maintain staff morale and inspire them to perform

better in stressful times.

Building relationships: The Nike CEO must be able to make friends with people. “This would be

more effective in gaining employees' faith in leaders and closely monitoring their

decisions”[ CITATION Ram18 \l 1033 ].

 Conclusion
According to the findings of the survey, incorporating digital technology has become a must for

businesses to stay competitive. Nike has to digitally modernize its business processes to succeed

in the market and build stronger relationships with customers. To make significant changes in the

company, leaders must have good communication and interaction abilities.

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