MANAGEMENT INFORMATION SYSTEM

COMPANY NAME: ADIDAS

Submitted to: Sir Shoaib Farooq

Submitted by: Saif Saddiqi Roll No. 01

Raza Bokhari Roll No. 22
Anum Butt Roll No. 33

(Section A)
 Table of Content

 Abstract
 Adidas Introduction
 Company’s Mission
 Company’s Vision
 Introduction to Management Information System
 Component of Management Information System
 Challenges in Management Information System
 Importance and advantages
 Adidas Strategies in Management information System
 Types of MIS system by Adidas
 Customer Relationship Management
 Supply Chain Management
 Enterprise Resource Planning
 Information System and Networking
 Solution to MIS problems
 Internet, Intranet, and Extranet
 Securities of management Information systems
 Conclusion
 Abstract

A Management Information System (MIS) is a systematic organization and presentation of

information that is generally required by the management of an organization for taking better
decisions for the organization. The MIS data may be derived from various units of the
organization or from other sources. However it is very difficult to say the exact structure of MIS
as the structure and goals of different types of organizations are different. Hence both the data
and structure of MIS is dependent on the type of organization and often customized to the
specific requirement of the management.

The role of Management information system (MIS) in business environment has evolved over
time to become an integral part of its business operations in Nigeria. The use of information
systems (ISs) has increased in the last 10 years not only by firms, but also by individuals and
even governments. The use of ISs was encouraged by the technological breakthroughs; the
advancements in telecommunications such as the internet, the globalization that created a
global unlimited marketplace, the strong growing for information economy, and the rise of
competitive digital firms. All of these factors transformed the ISs from data processing systems
to decision support systems and became the foundation of the new business environment. This
study looks at various challenges and prospect of MIS in Nigeria. The study was conducted in
Federal Capital Territory, Abuja, and North-Central Nigeria with the use of questionnaire and
interview to collect data that was statistically analyzed using the Z-test. The study also attempts
to highlight the impact of management information system in Nigeria Business Organization. It
intends to determine how the information system helps an organization to perform effectively.
The study recommends that business organization should introduce flexibility in the nature or
pattern and structure of MIS, attention should also be paid to communication through the
media agencies as a way of promoting company’s control of the market as well acquiring
appropriate and suitable computer software and program to meet MIS ever growing growth
and expansion in the global business market environment.
 ADIDAS

Introduction:

The company hails from Herzogenaurach Germany. This company is one of the largest
companies engaged in the footwear industry. Adidas shoe brand's history began in 1920 by Adi
(Adolf) Dassler. At the 1936 Berlin Olympics, the American track-and-field star Jesse Owens
wore shoes that were reportedly a gift from Adi Dassler. Owens’s medal-winning performances
increased awareness of the Dassler brand around the world. After the disruptions of World War
II, Adi and his brother Rudolf (“Rudi”) strove to rebuild the Dassler firm, but a personal breach
between the brothers had become irreparable by 1948. The business therefore split in two:
Rudi’s company was eventually called Puma, while Adi’s became Adidas

Adidas grew steadily during the 1950s as association football (soccer) players switched to the
company’s shoes, which were light in weight and featured screw-in cleats. The company then
developed a line of sporting goods, introducing soccer footballs in 1963. Four years later Adidas
began to produce apparel. For many years Adidas was the biggest name in athletic shoes, but
competition increased during the 1970s, notably from newer firms such as Nike. Adi Dassler
died in 1978, and the company experienced falling market shares during the 1980s, despite an
innovative endorsement deal with the rap group Run-D.M.C., creators of the hit song “My
Adidas” (1986). (The company was to ally with hip-hop again in a 2016 deal with the rapper and
entrepreneur Kanye West.)

Between 1990 and 1993 Adidas was owned by the scandal-tainted French business executive
Bernard Tapie, who failed to revive it. The company was sold to investors who brought in
another Frenchman, Robert Louis-Dreyfus, as chief executive officer and chairman. Under his
leadership, Adidas acquired the Salomon Group in 1997. Although best known for winter sports
products, Salomon also owned the golf supplier Taylor made. Adidas was renamed Adidas-
Salomon AG and moved into retailing, following the lead of Nike, in 2001. In 2004 the company
entered a successful partnership with the clothing designer Stella McCartney.
In 2005 Adidas sold Salomon but held on to the Taylor Made brand. The following year the
corporate name was changed back to Adidas AG.Adidas’s later acquisitions included the Reebok
company (2006), which owned the Rockport brand of shoes, and Five Ten (2011), maker of
outdoor-sports shoes. Adidas sold Taylor Made in 2017. Products produced by Adidas, among
others, shoes, costumes, jackets, and sports accessories from a variety of fields. Adidas
collaborated with several well-known designers to turn out products with new innovations.
Adidas supplier in the company is a factory that produces raw materials for production coming
from various countries so as to control the market in various continents. The majority of
companies Adidas are located in China, Indonesia, Taiwan, Brazil, Turkey, and other countries.
Sports equipment industry developed rapidly so that it can generate both opportunities and
threats in the form of competition is quite high. The biggest challenge in the development of
this business is a creativity, innovation, and many emerging competitors.

For over 80 years Adidas Group has been part of the sporting world in every field. Adidas
group's strategy is very simple; continuously strengthen and improvise competitive position.
The Adidas brand has a long history and deep-rooted connection with sport. Its broad and
diverse portfolio in both the Sport Performance and Sport Inspired categories ranges from
major global sports to regional grassroots events and local sneaker culture. This has enabled
Adidas to transcend cultures and become one of the most recognized, credible, and iconic
brands both on and off the field of play.

Key to our success and the execution of our strategy ‘Own the Game’, are our people and our
culture. They bring our identity to life, defined by our purpose, mission, and attitude.

Company’s Mission:

Everything we do is rooted in sport. Sport plays an increasingly important role in more and
more people’s lives, on and off the field of play. It is central to every culture and society and is
core to our health and happiness.   
Our purpose, ‘through sport, we have the power to change lives’, guides the way we run our
company, how we work with our partners, how we create our products, and how we engage
with our consumers. We will always strive to expand the limits of human possibilities, to include
and unite people in sport, and to create a more sustainable world. 

“The Adidas Group strives to be the global leader in the sporting goods industry with brands
built on a passion for sports and a sporting lifestyle. We are committed to continuously
strengthening our brands and products to improve our competitive position.”

Athletes do not settle for average. And neither do we. We have a clear mission: To be the best
sports brand in the world. Every day, we come to work to create and sell the best sports
products in the world, and to offer the best service and consumer experience – and to do it all
in a sustainable way. We are the best when we are the credible, inclusive, and sustainable
leader in our industry.

Company’s Vision:

At Adidas, we are rebellious optimists driven by action, with a desire to shape a better future
together. We see the world of sport and culture with possibility where others only see the
impossible. ‘Impossible is Nothing’ is not a tagline for us. By being optimistic and knowing the
power of sport, we see endless possibilities to apply this power and push all people forward
with action.

“To be the design leaders with a focus on getting the best out of the athletes with performance
guaranteed products in the sports market globally.”

Adidas's slogan is currently: “Adidas Is All In.” Since 2013 the German company is carrying this
new slogan, after changing it from the previous and very popular famous “Impossible Is
Nothing.”

\
 Management Information System Concept

A management information system (MIS) can be defined as a system that:

 Provides information to support managerial functions like planning, organizing,

directing, controlling.

 Collects information in a systematic and a routine manner which is in accordance with a

well-defined set of rules.

 Includes files, hardware, software and operations research models of processing,

storing, retrieving and transmitting information to the users.

A management information system (MIS) is a subset of the overall internal controls of a

business covering the application of people, documents, technologies, and procedures by
management accountants to solving business problems such as costing a product, service or a
business-wide strategy. Management information systems are distinct from regular information
systems in that they are used to analyze other information systems applied in operational
activities in the organization. Academically, the term is commonly used to refer to the group of
information management methods tied to the automation or support of human decision
making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

Business managers today, are much more concerned about the effect of competition than they
were even a few years ago. They must react to the competitive threats not only from local
source but also from regional, national and international source; likewise they must seek to
explore all opportunities that are available in the immediate, national and Global environment.
Deregulation has also increased competitive pressure for organizations to survive, grow and
prosper. In such a competitive environment, managers must employ a lot of the resources at
their disposal as efficiently as possible so as to accomplish the objectives and goals of the
enterprise. Management Information System provides information in form of reports and
displays to managers and many business professionals. For example sales managers may use
their networked computer and web browser to get instantaneous display about the sales
results of their daily sales analysis report to evaluate sales made by each sales personnel.
Management Information System also takes into account integrative nature of information flow
as well as the structuring of the organization around decision centers. Standards of
performance are Yusuf Munirat et al. International Journal of Managerial Studies and Research
(IJMSR) Page 77 part of any good plans; hence, determination of standards like other aspects of
the planning process depends on the availability of relevant management information system.
Management information system aids the functioning and monitoring of an organization. It also
describes the components and resources to ensure the proper functioning of an organization.
Management information system has changed the physical layout of offices to accommodate
local networks and departmental integrated systems. It is also a formalized procedure to
provide management at all levels and in all functions with appropriate information from all
relevant source to enable them make timely and effective decisions for planning, directing,
evaluating, and controlling the activities for which they are responsible. A major task also facing
management in almost every field of Endeavour is to plan carefully so that the quantity and
quality of information obtained will be adequate to meet its needs. One potentially powerful
resource available to managers is Information Technology (IT), though it could also serve as a
threat/problem, but the Top management has to be creative and strategic enough through
their conceptual and intellectual capacity to explore full opportunities in all strategic decisions
of the enterprise which affect the long term objectives of the Organization. More reports has
shown how Information Technology has successfully given some companies an advantage over
their competitors both in the National and Global Markets. A Management Information System
(MIS) is a subset of the overall internal control of a business covering the application of people,
documents, technologies, and procedures by management accountants to solve business
problems such as costing a product, service or a business-wide strategy. Management
Information Systems are distinct from regular information systems in that they are used to
analyze other information systems applied in operational activities in the organization. Financial
accounting system is an important functional element or part of the total management
information system structure. However, they are more narrowly focused on the internal
balancing books to generate ledger and other financial accounting system. For example, accrual
adjustment reconciliation and correcting entries used to reconcile the financial system to the
general ledger are not always immediately entered into other management information
systems. Accordingly, although management information systems and accounting reconciliation
totals for related listing and activities should be similar, they may not necessarily balance.
Institutional management information systems should be designed to achieve the following;

 Enhance communication among employees.

 Deliver complex materials throughout the institution.
 Provide an object system for recording and aggregate information.
 Reduce expenses to labor intensive manual activities.
 Support the organizations strategic goals and direction.

In spite of the fact that management information system supplies decision makers with facts,
likewise, it supports and enhances the overall decision making process. MIS also enhance job
performance throughout an institution. At the most senior level it provides the data and
information to help the board and management to make strategic decisions(top management
decisions or long lasting decisions) and at other levels of management MIS provides the means
through which the enterprise activities are executed, monitored, controlled and information
are distributed to management, supervisors, employees and customers. Effective MIS should
ensure the appropriate presentation; formats and time frames required by operations and
senior management are met. MIS can be maintained, evaluated and developed by either
manual or automated systems or a Combination of both. It should always be sufficient to meet
an enterprise's unique business goals and objectives. Likewise it seeks to explore all available
opportunities that can be explored by the organization in the immediate, national and global
economies. The effective delivery of an enterprise’s products and services are supported by the
MIS which has a great influence on the market share portion, revenue generation, sales volume
achieved, recruitment of best qualified candidates, the goodwill of the enterprise and the
customers’ perception about the organization and its output. These systems should be
comprehensive, accessible, flexible and useable at all appropriate levels of the organization’s
activities. MIS is a critical component of the institution's overall risk management strategy; it
supports management's ability to perform such reviews. MIS should be used to recognize,
monitor, measure, limit, and manage risks. Risk Management involves four main elements,
which include:

 Policies or practices.
 Operational processes.
 Staff and management
 Feedback devices.

Frequently, operational processes and feedback devices are intertwined and cannot easily be
viewed separately. The most efficient and useable MIS should be both operational and
informational. As such, management can use MIS to measure performance, allocate, manage
and control resources, and help an institution comply with regulatory requirements. One
example of this would be the managing and reporting of loans to insiders. MIS can also be used
by Management to provide feedback on the effectiveness of risk controls.
Components of Management Information System:

The major components of MIS are:

Components of MIS

 People Resources: People are required for the operation of all information system.
 Data Resources: Database holds processed and organized data.
 Software Resources: It includes all sets of information processing instruction.
 Hardware Resources: Include all physical devices and materials used in information
processing.
 Process: is a step undertaken to achieve a goal.

As, We have covered the basic concept of management information system which
includes what is MIS, MIS definition, MIS meaning, MIS components.
Now, let us move further and try to understand MIS objectives, MIS characteristics, MIS
advantages, MIS role, MIS challenges, MIS limitations etc.
Objectives of Management Information System

MIS is the provision of information to all levels management at the most appropriate time at an
acceptable level of accuracy and at an economical cost, such information is used in the decision
making process for modifying the state of system by taking appropriate action. An essential
requirement of MIS is feedback which is the process of communicating a system measured
output to control system which generates effective control system, normally a manager in
respect of business system. It is these factors which allow the state of a system to be modified.

 MIS has five major objectives which include:

1. Data Capturing
2. Processing of Data
3. Storage
4. Retrieval
These MIS objective are discussed below in detail.

Data Capturing
MIS capture data from various internal and external sources of the organization. Data capturing
may be manual or through computer terminals.

Processing of Data
The captured data is processed to convert into the required information. Processing of data is
done by such activities as calculating, sorting, classifying, and summarizing.

Storage of Information
MIS stores the processed or unprocessed data for future use. If any information is not
immediately required, it is saved as an organization record, for later use.

Retrieval of Information
MIS retrieves information from its stores as and when required by various users.

Dissemination of Information
Information, which is a finished product of MIS, is disseminated to the users in the organization.
It is periodic or online through a computer terminal.

Elements of Management Information System

The elements of Management Information System are the inputs/outputs control, storage and
process.

Input: This includes the keyboard, the data users, punch cards, computer operation and
programs.

Processing: Processing refers to the task performed before the input is generated into output.

Output: This is the result generated after processing the input [data].
Storage: Storage refers to the main and auxiliary memory. The storing of data is the basis of the
information system.

Control: This refers to the various measures taken to ensure timeliness, accuracy, and cost
effectiveness

Classification of Good Information

Information has many characteristics and can be classified in many ways. The following gives
some examples of such classifications.

 By sources: This relates to where the origination of such information emanates. It may
be internal, external, primary, and secondary or government reports and so on.
 By nature: Here, information classification is viewed in the way in which its form is being
seen. It can be quantitative, qualitative, formal, or informal.
 By time: This type of classification focuses attention on the question e.g. when was the
information produced? Or the period it is needed. It can be historical, present, or future.
 By use: This classification refers to the use the information can be put especially in
management process, which can be planning, or control of decision making.
 By form: This classification explains the explicit pattern under which information is being
gotten and made to flow [transfer from one location or one person to another] such
information could be written, oral, visual, sensory etc.

Characteristics of a Good Information System

Effective management information system possesses numerous qualities among which are the
following:

 Relevance: This type of information characteristics is of the truth. The overriding quality
information must be relevant to the problem being considered; though information may
take different forms. Examples are: reports, messages, tabulation etc. The positive effect
it has on the problem or needs at hand will mainly be the functions of its relevance
 otherwise. The absence of this quality relevant will make understanding of the message
more difficult and may eventually cause frustration to the user.
 Accuracy: Information should be sufficiently accurate for it to be relied upon by those in
the management team and for the purpose for which it is intended. Even though
absolute accuracy may not be obtainable, yet the level of accuracy must be related to
the decision Yusuf Munirat et al. Also, accuracy should not be confused with precision.
Information may be inaccurate but precise or vice-versa.
 Time: Good information is that which is communicated in time to be used. The time of
regular produced information is essentially important in this regards. In fact,
information should be produced at a frequency which is related to the type of decision
or actually involved.
 Details: Information should contain the least amount of details consistent with effective
decision making. The level of details usually varies with the level in the organization.

Problem of Implementing a Computer Based Management Information System

Experts identified some major factors that determine whether the implementation of a new
MIS will be resisted and to what event they are:

 Disrupting of established departmental boundaries: The establishment of a new MIS

often results in change in several organizations units.
 Participation: In designing and implementing MIS features users should be made
members of the MIS team operating mangers, in particular they should have a particular
say in the item to be included. The disposition of the entire information and possible job
modification, if the entire design and implementation process is taken over by
technology.
 Communication: The aim and characteristics of the system should be communicated to
all members of the MIS team as well as the users.
 Redefinition of performance measurement: A new MIS may modify a manager’s job to
the point where old methods of performance evaluation no longer apply or is no longer
applicable. For this reason MIS calls for proper evaluation. Therefore, a new MIS may
 liberate middle managers from many boring and routine task and may also give them
the opportunity to use the information provided by the system in more creative and
productive ways.

CHALLENGES OF MIS

What is MIS Challenges: There are three major challenges of MIS: high cost, training of
employees and maintenance cost. These are briefly discussed below:
1. High Cost
2. Training of Employee
3. Maintenance Cost
4. High Cost

Development of new computerized based information system is a problem for the organization
due to the cost factor and it creates problems because with the change of time there is need of
up-to-date of the information system.

Training of Employee
Employees should have the capacity of learning of the information system with the changing
competitive and business environment; otherwise it will be difficult for the organization to stay
in the market.

Maintenance Cost
Sometimes a problem arises due to server crash and website crash. Sometimes it leads to the
loss of information. So, maintenance cost is needed to tackle the above problem.

Benefits of Management Information System

Successful implementation of MIS would possibly bring the following:

  Possible clerical cost reduction
 Improved processing demonstrated by more accurate results.
 Intangible benefits such as customer relationship.
 Improved work environment and job satisfaction.

A good management information system can be used not only for the storage of electronic data
alone but must be able to support the analysis required by management. There are
many advantages of MIS which are utilized by manager to achieve organization goal.
The following are some of the benefits of a good MIS.

 Increased customer satisfaction
 Improved quantity and quality of information
 Improved quality and quantity management decisions
 Improved responsiveness number of the competitor’s condition
 Improved operational efficiency and flexibility
 Improved quality of internal and external communications
 Improved quality of planning
 Improved quality control and supervision

Problems of Management Information System

The users of MIS results into a situation where a relatively little success in providing
management with information is achieved and the following reasons are responsible:

1. Lack of management involvement in the design of MIS.

2. Narrow and/or inappropriate emphasis of the computer system.

3. Undue concentration on low level data processing application.

4. Lack of management knowledge of computer.

5. Poor appreciation by information specialist of management information requirement and
organizational problems.

6. Lack of top management support.

Limitation of Management Information System

Although information system plays a vital role in modern organizations, they are not with their
limitations. In particular, information systems have some basic limitations.

1. Information systems are expensive and difficult to develop and implement.

2. Information systems are not suitable for all tasks or problems.

3. Information provided to managers may not be as accurate, timely, complete or relevant as it

appears.

4. Managers may have unrealistic expectations of what information systems can do. The Impact
of Management Information System (MIS) on the Performance of Business Organization. The
information system may be subject to sabotage, computer viruses or down time.

 While MIS may solve some critical problems but it is not a solution to all problems of an
organization.

 It cannot meet the special demands of each person.

 MIS if designed in an improper manner does not serve the management and hence is of little
relevance.

 The MIS is not good if the basic data is obsolete and outdated.

 Mostly information provided by the MIS is in quantitative form. Hence, it ignores the
qualitative information like the attitude of an employee.
 Objectives of Management Information Systems (MIS)

An effective MIS has the following objectives;

1. Facilitate the decision – making process by furnishing information in the proper time
frame. This helps the decision – maker to select the best course of action.

2. Provide requisite information at each level of management to carry out their functions.

3. Help in highlighting the critical factors to the closely monitored for successful
functioning of the organization.

4. Support decision-making in both structured and unstructured problem environments.

5. Provide a system of people, computers, procedures, interactive query facilities,

documents for collecting, sorting, retrieving and transmitting information to the users.

Characteristics of Management Information Systems (MIS)

 Management Oriented: The system is designed from the top to work downwards. It

does not mean that the system is designed to provide information directly to the top
management. Other levels of management are also provided with relevant information.
For example, in the marketing information system, the activities such as sales order
processing, shipment of goods to customers and billing for the goods are basically
operational control activities. A salesman can also track this information, to know the
sales territory, size of order, geography and product line, provide the system has been
designed accordingly. However, if the system is designed keeping in mind the top
management, then data on external competition, market and pricing can be created to
know the market share of the company’s product and to serve as a basis of a new
product or market place introduction.
  Management Directed: Because of management orientation of MIS, it is necessary that
management should actively direct the system development efforts. In order to ensure
the effectiveness of system designed, management should continuously make reviews.

 Integrated: The world “integration” means that the system has to cover all the
functional areas of an organization so as to produce more meaningful management
information, with a view to achieving the objectives of the organization. It has to
consider various sub-system their objectives, information needs, and recognize the
interdependence, that these subsystems have amongst themselves, so that common
areas of information are identified and processed without repetition and overlapping

 Common Data Flows: Because of the integration concept of MIS, common data flow
concept avoids repetition and overlapping in data collection and storage combining
similar functions, and simplifying operations wherever possible.

 Heavy Planning Element: A management information system cannot be established

overnight. It takes almost 2 to 4 years to establish it successfully in an organization.
Hence, long-term planning is required for MIS development in order to fulfill the future
needs and objectives of the organization. The designer of an information system should
therefore ensure that it will not become obsolete before it actually gets into operation.

 Flexibility and Ease of Use: While building an MIS system all types of possible means,
which may occur in future, are added to make it flexible. A feature that often goes with
flexibility is the ease of use. The MIS should be able to incorporate all those features
that make it readily accessible to the wide range of users with easy usability.

MIS plays a very important role in every aspect of an organization. These characteristics are
generic in nature. 

Following are the characteristics of MIS:

1. System Approach
2. Management Oriented
3. Need-Based
4. Exception Based
5. Future Oriented
6. Integrated
7. Long Term Planning
8. Sub-System Concept
9. Central Database

System Approach
The information system follows a System’s approach. The system’s approach implies a holistic
approach to the study of system and its performance in the light for the objective for which it
has been constituted.

Management Oriented
The top-down approach must be followed while designing the MIS. The top-down approach
suggests that the system development starts from the determination of management needs
and overall business objectives. The MIS development plan should be derived from the overall
business plan. Management oriented characteristic of MIS also implies that the management
actively directs the system development efforts.

Need-Based
MIS design and development should be as per the information needs of managers at different
levels, strategic planning level, management control level and operational control level. In other
words, MIS should cater to the specific needs of managers in an organization’s hierarchy.

Exception Based
MIS should be developed on the exception-based reporting principle, which means an
abnormal situation, i.e. the maximum; minimum or expected values vary beyond tolerance
limits. In such situations, there should BE exception reporting to the decision-maker at the
required level.

Future Oriented
Besides exception-based reporting, MIS should also look at the future. In other words, MIS
should not merely provide past or historical information; rather it should provide information,
on the basis of projections based on which actions may be initiated.

Integrated
Integration is a necessary characteristic of a management information system. Integration is
significant because of its ability to produce more meaningful information. For example, in order
to develop an effective production scheduling system, it is necessary to balance such factors as
setup costs, Workforce, Overtime rates, Production capacity, Inventory level, Capital
requirements and Customer services.

Long Term Planning

MIS is developed over relatively long periods. Such a system does not develop overnight. A
heavy element of planning is involved. The MIS designer must have the future objectives and
needs of the company in mind.
Sub-System Concept
The process of MIS development is quite complex and one is likely to lose insight frequently.
Thus, the system, though viewed as a single entity, must be broken down into digestible sub-
systems which are more meaningful at the planning stage.

Central Database
A central database is a mortar that holds the functional systems together. Each system requires
access to the master file of data covering inventory, personnel, vendors, customers, etc. It
seems logical to gather data once, validate it properly and place it on a central storage medium,
which can be accessed by any other subsystem.

Adidas Strategies in Information Systems and Internetworking

A management information system (MIS) plays an important role in business organizations.

What is MIS role: There are many roles of MIS and some of the important MIS role are
discussed below:
1. Decision making
2. Coordination among the department
3. Finding out Problems
4. Comparison of Business Performance
5. Strategies for an Organization
Decision making
Management Information System (MIS) plays a significant role in the decision-making process
of any organization. In any organization, a decision is made on the basis of relevant information
which can be retrieved from the MIS.

Coordination among the department

Management Information System satisfies multiple need of an organization across the different
functional department.

Finding out Problems

As we know that MIS provides relevant information about every aspect of activities. Hence, if
any mistake is made by the management then MIS, information will help in finding out the
solution to that problem.

Comparison of Business Performance

MIS store all past data and information in its Database. That why the management information
system is very useful to compare business organization performance.

Strategies for an Organization

Today each business is running in a competitive market. An MIS supports the organization to
evolve appropriate strategies for the business to assent in a competitive environment.

Since the establishment of the company Adidas, Adidas one key to success is its ability in
the field of information technology. Since the beginning of Adidas already has a
database system and very well organized. The existing database is then used and
developed so that it can meet the market demand at this time.

The company used three main sale systems which were Adispace, Adirace, and WMS.
Because of such a big variety of systems there were problems of information exchange
between systems. The big step in unifying the information system was to introduce in
1999 one common sale system for sale in Europe. The company decided for SAP R/3
based on ORACLE database and further solutions AFS (apparel footwear solution), and
my SAP CRM (customer relationship management). In the South America and Africa the
company still uses Adispace system. The main reasons for introducing SAP in Adidas in
Europe were European Union Legal Legislations and need of improving security of stock
flow. Any new legal legislation is easier to perform for one system then

Some of the existing system is the

 Customer Relationship Management System

 Supply Chain Management System
 Enterprise Resource Planning System
 ● The CRM system (Customer Relationship Management)

CRM system is a system, methodology, strategy, software, and web-based applications that can
help a company to manage its relationship with the consumer. A CRM system gathers, links, and
analyzes all the data about a specific customer’s journey including customer information,
interactions with company representatives, purchases, service requests, assets, and proposals.
The system then provides an interface that lets users access that data and understand each
touch point. It is through this understanding that the basis for a solid customer relationship is
built.

Customer data can also be aggregated to populate commission modeling, sales forecasting,
territory segmentation, campaign design, and product innovation, as well as other sales,
marketing, and service activities—all of which can help optimize customer acquisition,
retention, and revenue generation efforts.

Customer management software and tools help you streamline the customer engagement
process, establish strong relationships with your customers, build customer loyalty, and
ultimately increase sales and profits.

Adidas intensively utilize a CRM system. Among others, its utilization is to manage the
program membership. Each customer is given an identity card for each product that has
been bought. With the existence of the identity card. then the customer can directly
access the official website of Adidas to give input on the resulting product the Adidas
able to increase customer satisfaction. Another strategy that Adidas is maintaining
relationships with retail in each country so as to maintain market growth.

Adidas is also working with the athletic department and other schools and business
units throughout the campus as part of a strategic partnership with ASU. The team just
concluded their first year of the research project, where they jumped into point-of-sale
transaction data provided by the company. They focused on customer segmentation
 and purchasing behavior, as well as brand affinity — an idea that describes consumers
who believe a certain brand shares common values with them and their shared values
tend to build a relationship and a loyal customer.

The team also worked with a U.S.-based sporting goods retailer analyzing purchasing
patterns in the store and examining the affinities between the top brands sold at the
store.

PhD student Kumar Sirugudi says the lab built the Product Affinity Analysis tool for
Adidas, which allowed them to understand brand affinity patterns along with
complements and substitutes and brand-switching patterns. They also analyzed
purchasing patterns in different channels within Adidas.

“It’s customer behavior profiling, but it’s all very data-driven. We’re not just creating
stories or narratives, it’s actually the data telling us what’s happening,” Benjamin
explains.

And that data is powerful.

How customer relationship management (CRM) improves customer service

Traditionally, CRM was viewed primarily as a sales tool. Not anymore. While customer software
solutions help sales teams organize their leads, automate follow-ups, and manage their
opportunities and pipeline, it does a lot more for the other departments within your
organization.

Since your solution holds the important information about every lead and customer, this gives
all customer-facing teams much greater insight into which they are, their motivations, what
they might want, and what type of relationship they’ve had with your brand in the past.
This information gives your customer service reps context for when the time comes that they
interact with those customers. The more you CSRs know about who they’re working with, the
better they can serve them.

How customer relationship management improves customer experience (CX)

 A complete customer view is necessary for business success and growth. Without a CRM
system, you’ll struggle to develop that much-needed 360-degree view of the customer that you
need to

 Personalize customer interactions

 Automate business processes (with appropriate CX integrations)

 Track all customer interactions

WHAT ARE THE BENEFITS OF THE CRM AND BPM SYNERGY FOR BUSINESS?

In today’s fast-changing business environment, it is critical that you consider combining your
CRM with 

BPM software BPM, an acronym for business process management, is an approach that
focuses on optimizing business operations to boost organizational efficiency and achieve
business goals. At its core, BPM involves a combination of modeling, automation, execution,
control, measurement, and optimization of business activity flows.
BPM technology in CRM allows organizations to adapt quickly to an ever-changing business
environment. It gives users immediate access to all the important information they need,
which significantly speeds up workflows. BPM’s primary goal is to align all organizational
elements to improve operational performance.
TOP 8 BENEFITS OF MERGING CRM AND BPM

 Tools for effective and easy process modeling, changing and monitoring

 Case management capabilities to manage unstructured processes

 Simplified and transparent work processes from the very first day

 Advanced reporting tools for generating more sales

 Detailed analytics and reports on the team’s performance

 Easy information sharing across the company

 Scalability, security, and mobile CRM access

Advanced tools for better collaboration among departments and with consumers
The functions of a CRM with BPM technology are not limited to the aforementioned
capabilities, as the top CRM vendors provide even more sophisticated tools to boost
productivity and ensure seamless workflows

Who should use a CRM?

CRM systems are almost always associated with sales teams. Over time, these solutions have
extended their reach and become integral to marketing, commerce, and service functions to
name a few. CRM evolves by constantly gathering customer data, analyzing that data, and
using the knowledge gained to deepen relationships and improve business results. It allows
any customer-facing employee (or those who support customer-facing employees) to
convey, "We know you, and we value you." A CRM system supports you beyond the sales
process, which is crucial to business performance. With the in-depth knowledge of the
customer, companies can:
Offer and sell new, add-on products—at the right time in the right way at the right price
Help service teams resolve issues faster
Help development teams create better products and services

Why CRM is important?

You may be wondering why customer relationship management systems are so important.
Actually, there’s very little difference—in terms of product features and capabilities—
between competing products. So many customers are now making purchasing decisions
based on their experience with your business. To provide a great customer experience (CX),
you need a complete view of your customer (and the right data to put that view together).
Customer relationship management systems combine data from various sources, including
email, websites, physical stores, call centers, mobile sales, and marketing and advertising
efforts. Knowing who your customers are, what they want, what interactions you’ve had
with them, and what future interactions will look like is what CRM is all about.
A CRM strategy ensures that you are using the data and analytics processed by your system
to achieve your objectives. Your customer strategy will influence your choice of which tools
to use, where to host your system, and what to measure to make sure you’re getting the
benefits you expect.
The ultimate goal of CRM is to improve customer acquisition and retention. This is the core
around which the specifics of your customer strategy will be wrapped. Improving customer
acquisition and retention is accomplished by providing experiences that keep your
customers coming back. CRM as a strategy—and a tool—makes up the foundation of those
experiences.

What is the goal of customer relationship management?

The goal of CRM is to support strong, productive, and loyal relationships with customers
through informed and superior customer experiences at every stage of the customer
journey. Why? To improve customer acquisition and retention. This central idea is wrapped
around your customer relationship strategy. Improving customer acquisition and retention is
accomplished in large part by providing experiences that keep your customers coming back.
CRM as both a strategy and a tool informs those experiences.
 ● SCM (Supply Chain Management)

SCM system is a system, methodology, strategy, software, and web-based applications

that can help a company to manage its relationship with suppliers. Supply Chain
Management is management all processes for designing, manufacturing operations,
coordination, control, service, and distribution systems. It can be concluded that the
SCM is the process of data flow from the supplier to the consumer.

Besides our own employees, workers in our suppliers’ factories play a central role in our
sustainability program. It was our concern for their working conditions and well-being
that led us to establish our "Workplace Standards", the supply chain code of conduct,
which also covers workers’ health and safety and provisions to ensure environmentally
sound factory operations. To enforce compliance with our Standards we have a multi-
level monitoring and enforcement process in place, including the use of an innovative
rating system for the assessment of our suppliers. The rating results are shared with our
Sourcing teams and incorporated into the overall supplier rating that influences our
decision whether and to which extent we continue the business relationship with a
specific supplier. This transparency and integration with sourcing decisions is
fundamental to the success of our efforts to drive improvements in workplace
conditions.

In addition to our own monitoring activities, we value independent and unannounced

assessments by independent third parties to demonstrate the credibility of and provide
verified information about our program to stakeholders. As a member of the Fair Labor
Association (FLA), Adidas is subject to external assessment by independent monitors,
participation in the FLA third-party complaint system and public reporting. In 2005, the
monitoring program of Adidas was accredited by the FLA for the first time; re-
accreditation took place in 2008 and in 2017. This decision was based on independent
factory monitoring and verification reports of supplier facilities and a thorough audit of
monitoring protocols, training programs and auditing systems. 
the most fundamental level, supply chain management (SCM) is management of the flow of
goods, data, and finances related to a product or service, from the procurement of raw
materials to the delivery of the product at its final destination.
Although many people equate the supply chain with logistics, logistics is actually just one
component of the supply chain. Today’s digitally based SCM systems include material handling
and software for all parties involved in product or service creation, order fulfillment, and
information tracking―such as suppliers, manufacturers, wholesalers, transportation and
logistics providers, and retailers.
Supply chain activities span procurement, product lifecycle management, supply chain planning
(including inventory planning and the maintenance of enterprise assets and production lines),
logistics (including transportation and fleet management), and order management. SCM can
also extend to the activities around global trade, such as the management of global suppliers
and multinational production processes.
Supply chain management (SCM) systems are inter-organizational systems that enable
companies to efficiently handle the flow of good from suppliers to customers. A supply chain is
a network of organizations and facilities that transforms raw materials into products delivered
to customers.

Supply chain management, then, is the active management of supply chain activities to
maximize customer value and achieve a sustainable competitive advantage. It represents a
conscious effort by the supply chain firms to develop and run supply chains in the most
effective & efficient ways possible. Supply chain activities cover everything from product
development, sourcing, production, and logistics, as well as the information systems needed to
coordinate these activities.

The organizations that make up the supply chain are “linked” together through physical flows
and information flows. Physical flows involve the transformation, movement, and storage of
goods and materials. They are the most visible piece of the supply chain. But just as important
are information flows. Information flows allow the various supply chain partners to coordinate
their long-term plans, and to control the day-to-day flow of goods and material up and down
the supply chain. The link talks more about SCM. 

Today’s application of radical new technologies to manufacturing has been dubbed Industry
4.0, or the “fourth industrial revolution.” In this latest iteration of industrialization, technologies
such as AI, machine learning, the Internet of Things, automation, and sensors are transforming
the way companies manufacture, maintain, and distribute new products and services. It can be
said that Industry 4.0 is built on the supply chain. In Industry 4.0, the way enterprises apply
technology to the supply chain is fundamentally different from how they applied it in the past.
For example, within the maintenance function, enterprises would typically wait until a machine
malfunctioned to fix it. Smart technology has changed that. We can now predict failure before
it happens, and then take steps to prevent it so that the supply chain can continue
uninterrupted. Today’s SCM is about using technology to make the supply chain―and the
enterprise―smarter. Get insights into your Industry 4.0 journey by watching the “Industry 4.0
One Step at a Time” on-demand webinar.
SCM also provides a significant advantage over traditional SCM because it enables aligned
planning and execution while at the same time delivering substantial cost savings. For instance,
companies that operates under a “plan-to-produce” model—in which product production is
linked as closely as possible to customer demand—must create an accurate forecast. That
involves juggling numerous inputs to ensure that what is produced will meet market demand
without exceeding it, avoiding costly overstocks. Intelligent SCM solutions can help you meet
customer demand and financial objectives at the same time.

Intelligent SCM has other advantages, too. For instance, it can free up supply chain employees
to contribute to the business in ways that add more value. Better SCM systems that automate
mundane tasks can equip supply chain professionals with the tools they need to successfully
deliver the products and services the supply chain is designed around.

Supplier relationship management (SRM)

SRM is business process for managing all contacts between an organization and its suppliers. It
can also be defined as the discipline of strategically planning for, and managing, all interactions
with third party organizations that supply goods and/or services to an organization in order to
maximize the value of those interactions. The goal of supplier relationship management (SRM)
is to streamline and make more effective the processes between an enterprise and its suppliers
just as customer relationship management (CRM) is intended to streamline and make more
effective the processes between an enterprise and its customers

 
 

SRM includes both business practices and software and is part of the information

flow component of supply chain management (SCM). SRM practices create a common frame of
reference to enable effective communication between an enterprise and suppliers who may
use quite different business practices and terminology. As a result, SRM increases the efficiency
of processes associated with acquiring goods and services, managing inventory, and processing
materials.

SCM and customer satisfaction

SCM has historically been about increasing efficiency and reducing costs. Although those needs
haven’t changed, what has changed is that the customer is now playing a front-and-center role
in setting SCM priorities. It’s been said that “customer experiences live and die in the supply
chain.” Customer loyalty is predicated on an enterprise being able to quickly and accurately
fulfill customer expectations. Raw materials, manufacturing, logistics, and trade and order
management must all be coordinated to get a given item to the customer within a reasonable
timeframe. To accomplish this, companies must look at their supply chains through their
customers’ eyes. It’s not simply about getting the order to the customer on time; it’s about
doing everything at the right time—before, during, and after order delivery.

Today’s supply chain is broad, deep, and continually evolving, which means that it must be agile
to be effective. In the past, supply chains met enterprise and customer needs through a
beginning-to-end model that was largely unaffected by change. Consumers now have multiple
choices in how they purchase products—in stores, online, and more. They’ve also come to
expect increasing levels of customization. An agile supply chain can deliver on those
expectations. Not only that, supply chain sourcing has become very fluid. For example,
geopolitical and economic developments can substantially impact the manufacturing supply
chain. If a manufacturer needs aluminum and can’t get it from one supplier due to a trade
policy, that manufacturer must be able to quickly pivot to source the aluminum elsewhere. The
ability to rapidly reconfigure your supply chain is essential to successfully addressing this type
of scenario. Agility is crucial to achieving these types of real-time reconfigurations.

Challenges in the supply chain extend beyond efficiency and cost management issues. Changing
circumstances can impact regulatory compliance as well. Your SCM system must be flexible
enough to mitigate all the impacts that are generated by changes in the supply chain, including
changing and varied regulatory requirements. An intelligent SCM system can help you be more
efficient and reduce costs while remaining compliant with a variety of ever-changing legal
mandates

The future of SCM

The supply chain of the future is all about responsiveness and the customer experience―
understood and managed within a network rather than a linear model. Every node of the
network must be attuned and flexible to the needs of the consumer while also being capable of
addressing factors such as sourcing, trade policies, modes of shipment, and more.

Advanced technology will increasingly be used to improve transparency and visibility

throughout this network, as well as to further enable connectivity and SCM utilization. The
entire SCM planning function will become more intelligent to take consumer demands into
account. The ability to adapt will be a mandate.

In the past, supply chain planning has been a periodic business exercise. Heading into the
future, it will be continuous. Future SCM systems will also bring tighter alignment between
planning and execution, which is not a current state for most enterprises. The need for speed
and accuracy in SCM is only going to increase. Make sure your supply chain is ready for the
future by supporting it with an intelligent SCM system.

Business activities considered central to the SCM

Any business activity that deals with the movement of a product from its creation to its
consumption is considered part of the supply chain process. This includes product
development, production, distribution, financial management, logistics and IT, among other
things. The long-term goal of SCM software is to integrate and coordinate these activities into
one consolidated, streamlined business function.
SCM software increase supply chain optimization and productivity

If a business is not using an SCM solution then it probably means it’s using multiple point
solutions to manage quotes, suppliers, cash, inventory and other key areas. The ideal SCM
solution will let you manage it all in a single application.

SCM software vastly improves the visibility of the entire supply chain process. It helps business
operations make smarter decisions about inventory. It allows management to develop
optimized metrics from previous orders and financial data that increase the supply chain’s
overall productivity. And it assists customer service by giving them real-time access to track
customer orders and answer questions on the spot.

SCM software is also a company-wide communication tool. It allows the many different
departments within an organization to act as one cohesive and centralized unit. Efficiency is
greatly increased when departments work together using the same data on the same platform.
And because this data is added automatically in real-time, companies can make increasingly
better decisions about their products.

Absolutely. More companies are choosing to run their SCM software in a Saabs format than
ever before. Cloud supply chain management software gives employees the flexibility of
working from anywhere not just a computer that has software downloaded onto it. The cloud
also increases collaboration within a company by automating data entry and making that data
easier to find across various departments.
Benefits of Financial Force SCM being on the Sales force platform

The Salesforce platform allows FinancialForce SCM to run side-by-side with the award-winning
Salesforce CRM software, sharing the same customer record from quote, to order, to cash, to
fulfillment, to payment and back. The Salesforce platform also makes customization simple. You
can enforce workflows and approval processes that fit your business model. You can do things
like create hierarchy and responsibilities based on sales representatives, geography, or
products. You can also enforce business rules, discounts and markup schedules to confirm
accuracy of pricing.

When it comes to your supply chain, you are only as strong as your weakest link. Are your
quotes in one system, cash in another, and inventory and procurement in yet another? This
makes for clunky integration points and no real time views into what’s going on across your
supply chain. This gets especially complex when you add multiple channels and various items
like products, services and contracts. Because FinancialForce Supply Chain Management
solutions are built on the Salesforce Platform, you can manage your quotes, your orders, your
expenditure, your inventory and even your contracts ...all in a single app.
 ● ERP (Enterprise Resource Planning)

Information systems ERP (Enterprise Resource Planning) is an information system

designed for manufacturing and services company whose role is to integrate the
business processes related to aspects of the operation, production and distribution of
the companies concerned.

Adidas utilize ERP systems with the use of the main raw material use planning by
considering the order, estimated the solid demand and availability of raw materials. In
an effort to eliminate the long response time, Adidas in collaboration with AT & T to
develop and implement a system of order management software for field sales
representatives so that Adidas is not alone in doing business.

Information systems ERP (Enterprise Resource Planning) is an information system

designed for manufacturing and services company whose role is to integrate the
business processes related to aspects of the operation, production and distribution of
the companies concerned. Adidas utilize ERP systems with the use of the main raw
material use planning by considering the order, estimated the solid demand and
availability of raw materials. In an effort to eliminate the long response time, Adidas in
collaboration with AT & T to develop and implement a system of order management
software for field sales representatives so that Adidas is not alone in doing business.

Enterprise resource planning (ERP) refers to a type of software that organizations use to

manage day-to-day business activities such as accounting, procurement, project
management, risk management and compliance, and supply chain operations. A complete ERP
suite also includes enterprise performance management, software that helps plan, budget,
predict, and report on an organization’s financial results.
ERP systems tie together a multitude of business processes and enable the flow of data
between them. By collecting an organization’s shared transactional data from multiple sources,
ERP systems eliminate data duplication and provide data integrity with a single source of truth.
Today, ERP systems are critical for managing thousands of businesses of all sizes and in all
industries. To these companies, ERP is as indispensable as the electricity that keeps the lights
on. Manage organizations day-to-day business activities, such as accounting, finance,
procurement, project management, supply chain, and manufacturing.
Although the term “financials” is often used when describing ERP software, financials and ERP is
not the same thing. Financials refers to a subset of modules within ERP.

Financials are the business functions relating to the finance department of an organization and
includes modules for financial accounting, sub ledger, accounting hub, payables and
receivables, revenue management, billing, grants, expense management, project management,
asset management, joint venture accounting, and collections. Financials software uses
reporting and analytical capabilities to comply with the reporting requirements of governing
bodies, such as the International Financial Reporting Standards Foundation (IFRS), Financial
Accounting Standards Board (FASB) for Generally Accepted Accounting Principles in the United
States (GAAP), as well as for other countries (HGB in Germany and PCG in France, for example).
For public organizations, financials software has to be able to produce periodic financial
statements for governing regulators, such as the US Securities and Exchange Commission (SEC)
(with reports such as quarterly 10-Q and annual 10-K), European Securities and Markets
Authority (ESMA), and others. For these types of financial reports, a narrative reporting tool is
used. The person who is ultimately responsible for financials is the CFO.
While financials handles one area of the business, ERP encompasses a wide range of business
processes—including financials. ERP software can include capabilities for procurement, supply
chain management, inventory, manufacturing, maintenance, order management, project
management, logistics, product lifecycle management, risk management, enterprise
performance management (EPM), human resources/human capital management, and customer
relationship management (CRM). Cloud-based ERP applications are often embedded with next-
generation technologies, such as the internet of things (IoT), block chain, AI, machine learning,
and digital assistants. These advanced technologies deliver data and capabilities that not only
enhance many traditional ERP functions; they create new opportunities for increased
efficiencies, new services, and deeper insight across an enterprise. Since ERP systems are
comprehensive across an enterprise, their management often involves a partnership with the
CFO as well as the CIO, COO, and other key executive leaders.

ERP fundamentals

ERP systems are designed around a

single, defined data structure
(schema) that typically has a
common database. This helps
ensure that the information used
across the enterprise is normalized
and based on common definitions
and user experiences. These core
constructs are then interconnected
with business processes driven by workflows across business departments (e.g. finance, human
resources, engineering, marketing, operations), connecting systems and the people who use
them. Simply put, ERP is the vehicle for integrating people, processes, and technologies across a
modern enterprise.

See how industry analysts compare Oracle Cloud ERP against other financial management
software providers.

For example: consider a company that builds cars by procuring parts and components from
multiple suppliers. It could use an ERP system to track the requisition and purchase of these
goods and ensure that each component across the entire procure-to-pay process uses uniform
and clean data connected to enterprise workflows, business processes, reporting, and analytics.
When ERP is properly deployed at this automotive manufacturing company, a component, for
example, “front brake pads,” is uniformly identified by part name, size, material, source, lot
number, supplier part number, serial number, cost, and specification, along with a plethora of
other descriptive and data-driven items. Since data is the lifeblood of every modern company,
ERP makes it easier to collect, organize, analyze, and distribute this information to every
individual and system that needs it to best fulfill their role and responsibility.

ERP also ensures that these data fields and attributes roll up to the correct account in the
company’s general ledger so that all costs are properly tracked and represented. If the front
brake pads were called “front brakes” in one software system (or maybe a set of spreadsheets),
“brake pads” in another, and “front pads” in a third, it would be tough for the automotive
manufacturing company to figure out how much is spent annually on front brake pads, and
whether it should switch suppliers or negotiate for better pricing.

A key ERP principle is the central collection of data for wide distribution. Instead of several
standalone databases with an endless inventory of disconnected spreadsheets, ERP systems
bring order to chaos so that all users—from the CEO to accounts payable clerks—can create,
store, and use the same data derived through common processes. With a secure and
centralized data repository, everyone in the organization can be confident that data is correct,
up-to-date, and complete. Data integrity is assured for every task performed throughout the
organization, from a quarterly financial statement to a single outstanding receivables report,
without relying on error-prone spreadsheets.
Trending in modern finance

The ERP landscape has shifted with the rapid evolution of software as a service (SaaS) cloud
applications. Because of the mobile platforms and decentralized workforce–work anywhere and
anytime–ERP systems can no longer be tied to yesterday’s on-premises back-office applications.
The next-generation, cloud-based, and modern ERP solutions support the new industry
dynamics while providing the ability to reduce support time to enable organizations to respond
quickly to volatile markets and industry trends.

The business value of ERP

 It’s impossible to ignore the impact of ERP in today’s business world. As enterprise data and
processes are corralled into ERP systems, businesses can align separate departments and
improve workflows, resulting in significant bottom-line savings. Examples of specific business
benefits include:
 Improved business insight from real-time information generated by reports
 Lower operational costs through streamlined business processes and best practices
 Enhanced collaboration from users sharing data in contracts, requisitions, and purchase
orders
 Improved efficiency through a common user experience across many business functions and
well-defined business processes
 Consistent infrastructure from the back office to the front office, with all business activities
having the same look and feel
 Higher user-adoption rates from a common user experience and design
 Reduced risk through improved data integrity and financial controls
 Lower management and operational costs through uniform and integrated systems

A brief history of ERP

From paper cards to mobile devices

the history of ERP goes back more than 100 years. In 1913, engineer Ford Whitman Harris
developed what became known as the economic order quantity (EOQ) model, a paper-based
manufacturing system for production scheduling. For decades, EOQ was the standard for
manufacturing. Toolmaker Black and Decker changed the game in 1964 when it became the
first company to adopt a material requirements planning (MRP) solution that combined EOQ
concepts with a mainframe computer.
MRP remained the manufacturing standard until manufacturing resource planning (called MRP
was developed in 1983. MRP featured “modules” as a key software architectural component,
and integrated core manufacturing components including purchasing, bills of materials,
scheduling, and contract management. For the first time, different manufacturing tasks were
integrated into a common system. MRP II also provided a compelling vision of how
organizations could leverage software to share and integrate enterprise data and boost
operational efficiency with better production planning, reduced inventory, and less waste
(scrap). As computer technology evolved through the 1970s and 1980s, concepts similar to MRP
II were developed to handle business activities beyond manufacturing, incorporating finance,
customer relationship management, and human resources data. By 1990, technology analysts
had a name for this new category of business management software—enterprise resource
planning.

ERP deployment

ERP's past: 1990s to the new millennium from the 1990s until the beginning of the twenty-first
century, ERP adoption grew rapidly. At the same time, the costs of implementing an ERP
system began to climb. The hardware required to run the software was typically on company
premises, with big machines in a server room. Both the hardware and the software licenses
required capital investments and depreciated over 5 to 10 years. In addition, organizations
nearly always wanted to customize their ERP systems to fit their specific needs, entailing an
additional expense of software consultants and training.
Meanwhile, ERP technology was evolving to embrace the internet, with new features and
functionality such as embedded analytics. As time went on, many organizations discovered that
their on-premises ERP systems couldn’t keep up with modern security demands or emerging
technologies such as smartphones.

Cloud ERP—A new ERP delivery model

Software-as-a-service (Saabs) Enter the cloud—specifically, the software-as-a-service

(Saabs) delivery model for ERP. When ERP software is delivered as a service in the cloud, it runs
on a network of remote servers instead of inside a company’s server room. The cloud provider
patches, manages, and updates the software several times a year—rather than an expensive
upgrade every 5 to 10 years with an on-premises system. The cloud can reduce both
operational expenses (OpEx) and capital expenses (CapEx) because it eliminates the need for
companies to purchase software and hardware, or hire additional IT staff. These resources can
instead be invested in new business opportunities, and the organization is always up-to-date on
the most recent ERP software. Employees can shift their focus from managing IT to more value-
added tasks such as innovation and growth.

7 reasons to move to an ERP cloud solution

For businesses, retiring on-premise systems and moving entirely to the cloud all at once isn’t
possible—or at the very least, it’s not something they’re comfortable doing. Meanwhile, staying
the course and ignoring all the advantages of enterprise resource planning as a cloud solution is
no longer an ideal path, either. Why should you consider using cloud applications to replace or
augment your on-premise system?

1. Readily adopt new and evolving Saabs technologies

Next-generation technologies, like artificial intelligence (AI), help cloud-based systems rapidly
improve their capabilities with no need for periodic updates, unlike your legacy system. Now,
with no additional or new input from the end-user, ERP systems continually become
significantly easier to manage and use.

2. Extend the value of your existing ERP System

Augmenting and integrating legacy software with cloud applications can complement, enhance,
and supplement important tasks. This approach can breathe new life into legacy ERP systems,
giving businesses a great opportunity to start adopting cloud capabilities.

3. Access new technologies

Finding cloud applications that complement your legacy ERP software modules lets you
immediately take advantage of rapidly advancing new technologies and improving user
paradigms. These provide complimentary systems that deliver immediate business capabilities
and value without a fundamental change in your operations.

4. Reduce third-party dependencies

Reporting and analytics for legacy systems typically require involvement from a third-party
vendor to generate operational business intelligence. Using cloud applications from your legacy
ERP vendor often produces the same or better intelligence without needing an additional
vendor relationship.

5. Evolve your financial systems

Legacy systems were never meant to be modern reporting engines. Cloud-based technology
was born in the last decade and developed, as a core principle, with an entirely different
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Adidas Summary on Information System

 We are committed to generating shareholder value. We strive to create value by converting
sales and profit growth into strong operating cash flow, while at the same time managing our
asset base proactively. Our company’s planning and controlling system is therefore designed to
provide a variety of tools to assess our current performance and to align future strategic and
investment decisions to best utilize commercial and organizational opportunities in the interest
of our shareholders. While this focus on creating shareholder value will remain, the launch of
our new strategy ‘Own the Game’ for the period until 2025 will have an impact on the internal
management system, which will be adjusted accordingly in the course of 2021. SEE STRATEGY

IMPACT OF THE COVID-19 PANDEMIC

In 2020, adidas faced serious challenges arising from the global outbreak of the coronavirus
pandemic. Throughout the year, sports events were canceled, a significant number of stores
were closed and many of our employees were confined to working from home. We saw a
material decline in sales from our physical channels and a corresponding reduction in cash. This
unprecedented situation led to a temporary adjustment of our internal management system
and required a strong focus on the most important priorities:

 Ensuring the health and safety of our employees, consumers, wholesale customers and
partners.

 Safeguarding the liquidity of our company through a strict focus on cash flows and financing
activities.

 Doubling down on our e-commerce business to drive net sales and cash generation in times of
store closures and reduced retail traffic.

INTERNAL MANAGEMENT SYSTEM DESIGNED TO DRIVE SHAREHOLDER VALUE

In order to drive and steer the creation of shareholder value, the company’s Management
focuses on a set of major financial Key Performance Indicators (KPIs). Sales and operating profit
 growth, paired with a focus on management of operating working capital, are the main
contributors to operating cash flow improvements. At the same time, value-enhancing capital
expenditure benefits future operating profit and cash flow development. In addition, the
development of the company’s net income from continued operations position as well as of
earnings per share (EPS) is of high importance as it directly drives returns in the interest of our
shareholders. Our strong focus on shareholder value creation is reflected in the fact that our
Management’s variable compensation is closely linked to the company’s growth in sales,
profitability and net income from continued operations. SEE COMPENSATION REPORT

OPERATING MARGIN AS MAJOR KPI FOR OPERATIONAL PROGRESS

Operating margin (defined as operating profit as a percentage of net sales) is one of our
company’s major KPIs to drive and improve our operational performance. It highlights the
quality of our top line and operational efficiency. The primary drivers to enhance operating
margin are as follows:

 Sales and gross margin development: Management focuses on identifying and exploiting

growth opportunities that not only provide for future top-line improvements, but also have
potential to increase our gross margin. Major levers for enhancing our sales and gross margin
include:
o Planning pricing and clearance activities according to market realities.

o Optimizing our product and channel mix.

o Improving the quality of distribution, with a particular focus on our direct-to-consumer

business.
 Operating expense control: Management puts high emphasis on tightly controlling operating
expenses to leverage sales growth through to the bottom line. This requires a particular focus
on ensuring flexibility in the company’s cost base. This flexibility helped us in managing through
the covid-19 pandemic in 2020, where we adopted a disciplined approach to both marketing
and operating overhead expenses. More broadly, marketing expenditure is one of our largest
operating expenses and at the same time one of the most important mechanisms for driving
brand desirability and top-line growth sustainably. Therefore, we are committed to improving
the efficiency of our marketing investments. This includes concentrating our communication
efforts on key global brand initiatives and focusing our promotion spend on well-selected
partnerships with top events, leagues, clubs, federations, athletes, and artists. We also aim to
increase operational efficiency by tightly managing operating overhead expenses. In this
respect, we regularly review our operational structure – harmonizing business processes,
standardizing systems, eliminating redundancies, and leveraging the scale of our organization.

TIGHT CASH FLOW AND OPERATING WORKING CAPITAL MANAGEMENT

In 2020, with at times a large portion of our own as well as our wholesale customers’ store fleet
closed, a clear focus on liquidity, cash flow and operating working capital was even more
important compared to a normal business environment. This required a close monitoring of the
cash and working capital situation and disciplined execution of mitigation measures to manage
the company through the crisis. Generally, due to a comparatively low level of fixed assets
required in our business, the efficiency of the balance sheet depends to a large degree on our
operating working capital management. Operating working capital comprises accounts
receivable plus inventories minus accounts payable. 
In this context, our key metric is average operating working capital as a percentage of net sales.
Monitoring the development of this metric facilitates the measurement of our progress in
improving the efficiency of our business cycle.
We strive to proactively manage our inventory levels to meet market demand and ensure fast
replenishment. Inventory aging is controlled carefully to reduce inventory obsolescence and to
minimize clearance activities. As a result, Inventory Days Lasting (IDL) is monitored and
assessed regularly as it measures the average number of days goods remain in inventory before
being sold, highlighting the efficiency of capital locked up in products. To optimize capital tied
up in accounts receivable, we strive to improve collection efforts in order to reduce the Days of
Sales Outstanding (DSO) and improve the aging of accounts receivable. Likewise, we strive to
optimize payment terms with our suppliers to best manage our accounts payable.

CAPITAL EXPENDITURE TARGETED TO MAXIMIZE FUTURE RETURNS

Improving the effectiveness of capital expenditure is another major lever to maximize our
operating cash flow. We control capital expenditure with a top-down, bottom-up approach. In a
first step, Management defines focus areas within the framework of our strategy and an overall
investment budget based on investment requests from various functions within the
organization. Then, in a second step, our operating segments align their initiatives within the
scope of assigned priorities and available budget. We evaluate potential return on planned
investments utilizing the net present value method. Risk is accounted for, adding a risk
premium to the cost of capital, and thus reducing our estimated future earnings streams where
appropriate. By means of scenario planning, the sensitivity of investment returns is tested
against changes in initial assumptions. For large investment projects, timelines and deviations
versus budget are monitored on a monthly basis throughout the course of the project. In
addition to optimizing return on investments, we evaluate larger projects upon completion and
document leanings for future capital expenditure decisions.

FOCUS ON NET INCOME IN THE INTEREST OF OUR SHAREHOLDERS

Beyond our ambition to maximize operating cash flow, we are committed to a continuous
improvement in the company’s bottom line. Management closely monitors the development of
both net income from continued operations and earnings per share (EPS) and executes against
these two KPIs. Our strong focus on driving sustainable expansion to the company’s bottom line
is also reflected in the fact that, as part of the Long-Term Incentive Plan 2018/2020, the variable
compensation for our Management is directly linked to the growth of the company’s net
income from continued operations.
NON-FINANCIAL KEY PERFORMANCE INDICATORS

In addition to the major financial KPIs to assess the performance and operational success of our
company, as outlined above, we have identified a set of non-financial KPIs that help us track our
progress in areas that are critical for our long-term success but are not directly reflected in the
financial statements. These non-financial KPIs are assessed on a regular basis and managed by
the respective business functions. Non-financial KPIs which we are closely monitoring include,
among others, market share, backlogs and sell-through data as well as our customer delivery
performance (On-Time In-Full), employee engagement and a set of KPIs in the area of our
sustainability performance.

Net Promoter Score (NPS): 

Maintaining and enhancing brand desirability through the creation of strong brand identities is
crucial for sustaining and driving profitable growth. Therefore, mainly on a market and category
level, we invest in primary qualitative and quantitative research such as trend scouting and
consumer surveys to determine brand loyalty and brand strength. Measures that are tracked
include brand awareness, likeability, and purchase intent.
Furthermore, within the framework of ‘Creating the New’, we have implemented an NPS
system, which strengthened our capabilities to more carefully review brand advocacy as NPS
tells us how likely it is that consumers will recommend our brands. Our efforts around NPS
(both our own NPS as well as the NPS of our major competitors) are driven by an independent
agency and monitored by our internal global consumer insights teams on a regular basis. In
addition, NPS is measured across many of our own-retail stores as well as our own e-commerce
platform.

Given the exceptional circumstances in 2020, NPS has only served as a KPI until the end of the
first quarter. Amid a global pandemic and with a new strategic cycle ahead, the company
decided to stop gathering NPS data through our external provider.
Market share: 
To measure the operational performance of our brands relative to our major competitors, we
continuously collect, on a market and category level, market share data. The findings provide
detailed insights for our senior management team regarding in which markets and categories
we have been able to gain market share relative to our peers, enabling us to leverage those
insights across the organization. In addition, the results help us to define clear roles and
responsibilities for each of our markets and categories within our long-term strategic
aspirations, based on their overall positioning within the sporting goods industry. 
Backlogs and sell-through data: 
To manage demand planning and better anticipate our future performance, backlogs
comprising orders received up to nine months in advance of the actual sale are monitored
closely. However, due to the growing share of own retail (including our own e-commerce
channel) in our business mix, fluctuating order patterns among our customers as well as an
increasing part of our business being realized under significantly shortened lead times, orders
received from our retail partners are less indicative of anticipated revenues for adidas
compared to the past. Therefore, qualitative feedback from our retail partners on the sell-
through success of our products at the point of sale as well as such data received from our own-
retail activities is becoming increasingly important.

On-Time In-Full (OTIF): 

OTIF measures the company’s delivery performance toward customers and our own-retail
stores. Managed by our Global Operations function, OTIF assesses to what degree customers
received what they ordered and if they received it on time. It helps us to investigate
improvement potential in the area of order book management and logistics processes. It
therefore also helps us to improve our delivery performance, which is a major aspect when it
comes to customer satisfaction. The OTIF assessment covers most of our key markets. 

Employee engagement: To measure the level of engagement and motivation of our employees,
adidas carries out employee engagement surveys. These surveys aim to provide key insights
into how well we, as an employer, are doing in engaging our employees. They thus enable us to
develop the right focus and future people strategies across our organization, helping us to
create a world-class employee experience and continue to attract and retain top talent. 
Sustainability performance: We have a strong commitment to enhance the social and
environmental performance of our company. By doing so, we firmly believe we will not only
improve the company’s overall reputation, but also increase its economic value. We therefore
follow a comprehensive roadmap with clear targets and regularly track our progress toward
these targets. A major focus lies on measuring the environmental footprint of our own sites
globally as well as monitoring and rating our supplier factories with regard to social and
environmental compliance with our Workplace Standards. We have a strong track record in
sustainability disclosure, providing regular updates about our sustainability performance.

STRUCTURED PERFORMANCE MEASUREMENT SYSTEM

We have developed an extensive performance measurement system, which utilizes a variety of

tools to measure the company’s performance. Key performance indicators as well as other
important financial metrics are regularly monitored and compared against initial targets as well
as rolling forecasts on a monthly basis. When negative deviations exist between actual and
target numbers, we perform a detailed analysis to identify and address the cause. If necessary,
action plans are implemented to optimize the development of our operating performance. To
assess current sales and profitability development, Management continuously analyzes the
performance of our operating segments. We also benchmark our financial results with those of
our major competitors on a regular basis.

Taking into account year-to-date performance as well as opportunities and risks, the company’s
expected full-year financial performance is assessed on a monthly basis. In this respect,
backlogs and sell-through data as well as feedback from customers and own-retail stores are
also assessed where available. Finally, as a further early indicator for future performance, the
results of any relevant recent market and consumer research are assessed as available.
In view of the covid-19 pandemic, the situation required that we adjusted to the greater
information needs of senior management within this time of uncertainty through e.g. more
frequent forecasts to ensure the quality of decision making. In 2020 overall, our performance
management system has proven to be effective

● Utilization of the Internet, Intranet, and Extranet

One of the important things is that the availability of information technology

communications network that can be used by individuals and companies to improve
efficiency and effectiveness. The existence of a good network can overcome the
problems of geography, time, cost, and structure. In this case Adidas has a separate
policy in utilizing every network layer. Therefore, Adidas is a virtual company because
there is an information system that is used to connect Adidas, suppliers and customers.
As a virtual company Adidas make use of E-commerce, Internet and World Wide Web.

Global society: competitors

Internet

Clients, partners, customers

Extranet

Corporate members
Intranet
 1. Internet

Internet is a worldwide public computer network so that it can connect millions of

frequent users and includes a variety of information resources. Facilities available on the
internet include e-mail, network news, file transfer, audio and video communication,
information retrieval and more. Adidas make use of the internet to connect all parties
who have interests ranging from supplier partners, customers, and other institutions like
government and consulates abroad.

With the use of the internet, Adidas has a very broad market reach is global market.
Adidas Customers can come from any country and can carry out a transaction or
booking any time. To support the expansion of the market, Adidas create an attractive
website with a complete and informative catalog that can be accessed anytime and
from anywhere.

2. Intranet

Intranet is an internal network between several companies or agencies working

together. Intranet access requires user identification and password that can only be
accessed by specific users. Adidas utilize the intranet as a means of internal
communication between Adidas with its main - mantra partners.

3. Extranet

Extranet computer networks used by companies in order to provide nonpublic

information to certain parties such as business partners or consumers. Adidas utilize the
extranet as a medium of exchange of information between themselves Adidas, partners,
suppliers, and customers who have registered. In addition, as businesses online account
monitoring for suppliers and customers who are already registered can be accessed
without limits.
 ● Security of Information Systems

Information systems security is a hot topic in the news and at the water cooler these days. It is
not uncommon to read about breaches in the security of large companies in the news daily.
Target’s major breach during Black Friday in 2013 left consumers concerned for their personal
information. Earlier this year, The New York Times reported a data breach at White Lodging
Services Corporation, which works with 168 hotels in 21 states. This breach resulted in the
fraudulent use of hundreds of credit and debit cards for payment at Marriott hotels between
March and December of 2013. Recently, Bloomberg BusinessWeek reported that the hackers
that attacked the Neiman Marcus Group in late 2013 were part of a Russian syndicate that stole
more than 160 million credit-card numbers from retailers over the course of seven years.

According to the dictionary of Military and Associated Terms of the US Department of Defense,
information systems security is “The protection of information and information systems against
unauthorized access or modification of information, whether in storage, processing, or transit,
and against denial of service to authorized users. Information security includes those measures
necessary to detect, document, and counter such threats. Information security is composed of
computer security and communications security.” At its most basic level information systems
security is keeping confidential information, confidential. Businesses in the United States are
seeing new rules and regulations that will need to be managed to protect consumer
confidentiality. According to data from the report, the United States accounts for only 27% of
credit card transactions in the world, but are the victims of 47% of fraud. Breaches such as
these have reduced consumer confidence, and have moved the topic of the safety of personal
information to the forefront for many organizations, which are promising to keep the data of its
customers secure from hackers.
The question though is: As hackers become increasingly sophisticated, how organizations stay
a step ahead to ensure their information systems security?

Generally information systems can be broken up into two main groups, IT security and
information assurance. IT security is the security applied to technology, usually the computer
system. IT security specialists are responsible for keeping all the technology in companies safe
from cyber-attacks. Information assurance is the act of ensuring data is not lost when issues
arise, including natural disasters, computer/server malfunction, or theft. IT security specialists
generally provide information assurance by having off-site backups of data to combat these
problems. Cyber security and information systems security degrees are becoming increasingly
popular. As cyber threats grow, demand for trained professionals continues to grow. Most
recently, the need has emerged for not only technology experts but professionals who possess
the technological capabilities and are well versed in business leadership and strategy.

Development of rapid information technology has a positive and negative impact. One
negative impact is the emergence of crime information. In this case, Adidas has to
anticipate and take action to minimize the negative impacts and designing information
systems security. Some Adidas efforts in addressing the negative impact of the
development of information technology, among others:

1. Setting authentication. Every employee, both Adidas and business partners have
a username and password each

2. Particular room setting as a central hub of information systems. So each

business partner office computer Adidas are special rooms for specific users and
servers are monitored 24 hours a day.

3. Setting access computer use. Every employee, both Adidas and its business
partners have access to individual settings according to the type of work and
responsibility.

4. The use of anti-virus intensified

5. Implementation of backups regular of data on storage media.

6. Availability of a special team in Adidas tasked with monitoring the use of

information systems both internally and externally.

7. Securing e-commerce transactions, and more.

8. The Information Security Manager will agree the scope and frequency of
technical testing for:

• Firewall audits;

• Open port scanning;

• account reviews

• patch testing;

9. With the IT Manager. This is done by automated and non-invasive specialized

tools.

10. The IT Manager provides IT Department resources to produce the relevant

reports.

11. The results are examined by the Information Security Manager and any
discrepancies or other anomalies are investigated by the Information Security
Manager.

12. Firewall audits are reviewed for appropriateness, and where needed,
permissions are changed.

13. Any open ports (incoming or outgoing) that are not authorized shall be
immediately closed.

14. Access rights are reviewed with the relevant Asset Owner for continued
business need. Where there is no justified need, the rights are removed by the
IT Department immediately.
15. Where missing patches are identified, they shall be reviewed for
appropriateness and risk to the Forensic Laboratory by the Information Security
Manager and the IT Manager.

16. If any workstation scan shows unauthorized activity, it shall be investigated and
appropriate action taken, including disciplinary action if required.

17. Where appropriate, remedial action is taken and tracked through the CAPA
process.

18. All changes to the IT infrastructure are addressed through the Forensic
Laboratory change management process
Conclusion:

Digital technology is changing many things in the business world and there is a strong reason
that every brand must have and follow a digital strategy. Consumers want personalized and
better experiences from the businesses.  However, digital is also helping brands manage their
supply chains, distribution networks and inside the store experiences better. Adidas has also
invested in digital technology to drive its productivity high. In 2017, Adidas founded the digital
leadership team whose responsibility was to start digital initiatives across the entire company
and support the various functions with decision making in this area. This team has set its digital
priorities and also set a clear digital roadmap for the future. Adidas is crafting a new digital
experience for its customers which starts from Adidas and Reebok websites. the brand has set a
target of 4 Billion revenues in terms of e-commerce revenue for itself. In 2017, it also
introduced new features and technologies on its e-commerce channels such that the customers
can have a great online shopping experience 2017 also saw the launch of Adidas app. Its e-
commerce channels are also the fastest growing of its all sales channels which achieved 57%
growth in 2017.  Digital experiences shape the perception of consumers towards a brand and as
such digital is now an essential part of brand’s business strategy. However, digital extends
deeper in Adidas’ system than shopping and marketing. The brand is forming fresh partnerships
to extend the impact of digital in its entire system. It has adopted the digital light synthesis
which eliminates the need for traditional prototyping or holding in the making of athletic
footwear. Apart from that Adidas and Siemens announced a collaboration that is aimed at
minimizing the time it takes to bring a product to the market. The two are going to undertake
research and development programs together which will enable the Adidas speed factory to
grow capabilities that will aid fast, transparent and individualized production. Siemens is a
leader in digital factory automation and simulation solutions, and the expertise it brings will
offer greater flexibility and higher manufacturing efficiency to Adidas. Conclusion in view of the
following data adidas is one of the manufacturing sectors who need to produce more output by
implementing new technologies, new tariffs, and new consumer satisfaction value added
services. Further, it is still the largest manufacturer in the world in terms of geographic reach &
quality. Recommendations:
• They should encourage new products.

• bring innovations in the existing products.

• They should conduct more surveys in order to know about customer satisfaction level.

• Easy access for communication should be provided in the rural areas. Suggested strategies:

• Market development

• Market penetration

• Product development