Course: MSc Management with Project Management
Leading through Digital Disruption
Crafting an Intelligent System for Business Organizations: Assistance for Unit 14 Business Intelligence in Higher National Diploma in Computing and Business
LO1: Critically reflect on key opportunities and challenges leaders face in leading complex organisations through digital disruption
Task 1: Change Analysis and Opportunities
Prepare a clear introduction of your chosen organisation (e.g. the size of the organisation, its core products and services, and the industry it operates).
Answer: Introduction
Adidas is a manufacturing unit for sportswear that was commenced in Germany. They also manufacture and design myriads of accessories and clothing. They possess the most substantial market in Europe and also an enormous market globally. These assignments elaborate primarily on the bio-data of Adidas. The vital points that are mentioned here are that three areas that digital disruption has impacted this organisation. The procedure of digital transformation should be executed here to have a smoother and easier working environment. The recommendations for approaching these digitally ready cultures are defined here one by one. Finally, the style of Goleman for leadership is discussed here.
Company Profile of Adidas
Adidas is a leading German multinational sportswear manufacturing company that manufactures and designs shoes, clothing products and accessories. The organisation has created excellent brand value and extensive brand presence across the world by focusing on innovation and customer satisfaction. The company has operated its business in more than 160 countries across the world. There are approximately 2184 retail stores in the organisation worldwide (Parfenov and Akaev, 2019). The company's target customers are those who are passionate about sports, health and fitness. The major target customers of the organisation belong to the age group of 20 to 30.
Identify and critically evaluate 3 areas of the organisation that are being impacted by digital disruption.
Answer: Three areas of the organisation that are being impacted by digital disruption Implementation of digital methods in each of its departments is one of the major long-term goals of Adidas. Due to the digital transformation, the three major areas of the organisation that have been disrupted so far are its design, manufacturing and distribution channels. Adidas can reduce the design process's time duration by implementing data analytics on design. It not only reduces the time duration of the design process but also improves the design accuracy.
For manufacturing, Adidas has implemented "Speedfactories" technology. By using this advanced technology, Adidas has built its first manufacturing plant in Germany with a capacity of 500000 pairs of trainers per year (Rego et al., 2022). With the use of automated and flexible machines and 3D printing machines, the organisation is able to decrease the time of replenishing an existing design. For distribution, the organisation has concentrated on Omni channel initiatives through its retail stores and e-commerce. Investment in advanced technology, such as RFID, helps the organisation in allowing their online buyers to purchase online and check the store's inventory (Dwivediet al., 2022).
Finally provide key opportunities that the CIO can take in order to successfully digitally transform the organisation.
Answer: Key opportunities that the CIO can take in order to successfully digitally transform the organisation
The key opportunities that should be taken by the CIO of Adidas are the strategy that is vital in transforming the organisation digitally by having a strategy that is "New things should be built". The three prerequisites for the partnership with Adidas are "faithfulness to both Adidas and their partner brands", a strategic partnership for utilising and generating data (Reinartz et al., 2019). The last is an escalation by optimising and adapting existing structures in the new field for business. Use of AI (Artificial Intelligence) in the advancement of the opportunities for advertising and they are the potentialities of machine learning. There, potentiality is cognitive advertising should be encouraged, and through this, admissible historical data of their buyers are being used to analyse their buyer's new behaviours. This type of advertising stocks the data of its users. Analytics and big data should be utilised so that markers can keep track of the unique, accurate behaviours of their users.
Accuracy, operational efficiency and productivity are needed to maintain equivalently in warehouses, and thus there are necessary of robots (Guo, 2022). The kinds of warehouse robots that should promote here are AGV(Automated Guided Vehicle), Cobots, retrieval systems and automated storage (AS/RS), Cobots and articulated arms should be in use in a full manner. The setting of these robotic structures will optimise the workflow, and thus the production of their accessories will skyrocket. These all should be in use, along with the technology of "Speedfactory".
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LO2: Understand how to sense changes, make informed decisions and adjust quickly in highly disruptive times
Task 2: Digital Business Agility
Advise your organisation on which initiatives and digital technologies can be used by your chosen company to gain Digital Business Agility.
Answer: Implementation of the model developed by the Global Center for Digital Business Transformation by Adidas for gaining digital Agility
The Global Center for Digital Business Transformation gives organisations valuable insights and information-based guidance to manage their journeys towards digital transformation successfully. The "Global Center for Digital Business Transformation" ideas help organisations shape their digital outlook by designing, examining and implementing significant frameworks.
One of the most important models introduced by the Global Center for Business Transformation is the model of digital business agility (Orvos, Orvos and McDermott, 2019). According to this particular model, every company should possess at least three crucial things in common, including hyper-awareness regarding the operational business environment, the capability of making informed decisions and their fast execution in order to become agile in the digital business. Every organisation should improve these capabilities to provide effective and quick responses to the potential threats to their business. In addition, while these functions can be seen as separate entities of business functions, in reality, they form a sophisticated and interactive foundational base for the entire organisation (Marindraet al., 2022).
Hyperawareness is a capability of an organisation by which they are able to recognise and track major changes in business circumstances. Organisations with high hyperawareness capability can adapt to their environmental circumstances pertaining to the business, and the operational environment especially changes that present future business opportunities or even threats to the organisation's market share and market position. These ideas may come from internal sources, such as employees or the organisation's internal work environment, as well as from external entities, including the consumer base and business partners, as well as from rival businesses (Udovita, 2020). Adidas should also improve its hyperawareness capabilities to obtain valuable insights from the customers. Digital accelerators which are aiming at workforce hyperawareness are situational awareness and behavioural awareness (Raymond, 2019). As thousands of employees work at Adidas, the organisation should take the help of technical assistance for gathering data from their employees. In this matter, various software-based applications can help the organisation. For example, Adidas can use the Waggl app. Through using this app, the organisation can easily collect the feedback of their employees in real time. This also promotes a "culture of listening" where valuable negative feedback can be brought to the forefront (Sutton et al., 2020).
By improving situational awareness, Adidas can remain aware of any changes that are happening in the marketplace. Through situational awareness, the organisation also can remain aware of its customer base, business partners and competitors. In order to improve situational awareness, Adidas can use the Internet of Things (IoT). Using this technology, the organisation can enhance its human abilities to quickly deliver more insights to customers.
Another major benefit regarding the enhancement of capabilities which is mentioned in the digital business agility model, is the capability of the concerned business organisation to make informed decisions. In case of a major transformation involving the organisational workforce, informed decision-making includes the more macro-level strategic business decisions that have a profound impact on the future of the organisation, as well as several small decisions that are made by the employees every day. Digital accelerators for advanced decision-making include holistic analysis that implants informed analysis and decision-making into the workflows, giving managers and employees the tools to make the most effective and suitable choice in terms of decision-making while considering its future business impact in any given situation (Marchauet al., 2019). By using the automated or accelerated decision-making tool and technology, Adidas can speed up the decision cycle through analytics and automation. For informed decision- making, Adidas can utilise several available tools and technologies, including artificial intelligence (AI) and analysis of big data, as well as machine learning algorithms.
Fast execution is the third capability of the organisations mentioned in the digital business agility model. The organisation's workforce plays a significant role in ensuring speed and excellence. Resources and the process are the major elements to increase speed and excellence (Alzakholiet al., 2020). The resources of the organisation include human capital, technological capital and financial capital. The process includes a supply chain process, manufacturing process, procurement process and so on. In order to improve this capability, Adidas can use the Strung technology. This is considered the first textile technology by which athlete data is transformed into dynamic performance material.
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LO3: Critically evaluate the significance of human factors and technologies to lead transformation and create a digital-ready and innovative culture
Task 3: Creating a Digital Ready Culture
Advise on how your organisation can create a digital-ready culture by: 1. Putting customers first 2. Creating a collaborative culture 3. Instilling a culture of innovation 4. Becoming a digital-champion
Answer: Recommendation for a digital-ready culture to support the digital transformation of Adidas
Technology is useless unless it reaches out to the common masses who know how to use it. No technology can be implemented successfully if people do not want to change with the innovations. Many others yet dwell in the misconception that innovation, technological advancement, and automation may take away their jobs. Thereby giving the most brutal blow to the country in the form of unemployment and worst economic conditions. Mainly, in developing countries, this happens when new companies, such as Adidas, start entering the foreign grounds of the third-world economies through foreign direct investment policies of the government
(Stoetzel, 2020). Hence, this misconception calls for an early address through training and a transparent communication strategy. This, again, requires a whole set of necessities, such as assessing people's awareness and educational level. Job-specific training is the prerequisite for the organisation, which needs to upgrade itself according to the upgradation of technology. The upgradation of Adidas's organisational culture requires role-specific training. Those who are supposed to be working through specific software should be provided with professional skills and training. For Slake to ship code and monitor issues, software developers should be trained to develop their skills per the requisites of their orioles in the corporation(Stoetzel, 2019). This training module should comprise different apps, integrations, and functionality to best use software and other technological tools. The feedback sessions should also be conducted to explain how digitisation will enhance, not reduce, the value they bring to the organisation.
The organisational culture of Adidas should be collaborative with digital transformation. A well- thought-out process should be initiated to be most effective for the employees along with the organisation. Over and above, an existing Omni channel encompassed with various tools should be there to ensure that the organisational goals and the employee's goals are aligned and collaborated. This is cost-effective for Adidas as it eases the pressure on employees, thereby increasing the organisation's productivity. The employees should be well aware of the issues that might be hindering their work processes (Zhukovska and Salimon, 2019). So together with the team managers, if those issues should be adequately analysed through various management tools by the participation of the employees and their rigid technological mind frame, they can bring about desired solutions to the related issues. In Adidas, one of the key requirements for the desired transformation is that leaders acquire and maintain effective control or grasp over the situation and possess the capability to convey the matter in a fluid manner among their subordinates which would facilitate the efficient execution of the required action plan for the desired transformation. This helps in allocating roles and responsibilities to the employees with utmost precision in task performance (Yue, Selamat and XiaDi, 2019).
In order to support digital transformation, the organisation needs to focus on digital innovation. By using digital technology and applications, Adidas can enhance its workforce performance, improve the experiences of customers and employees, and improve business activities (Verhoef et al., 2021). Organisations that cannot understand the significance of new technologies cannot
compete with their rival organisations. The business leaders of Adidas should always focus on the technological advancements by which they will remain competitive and able to put value into their organisation. However, It is not so easy to implement digital innovation in the organisation, but there are some steps which the company can use to install a culture of innovation. As a first step of digital innovation, Adidas should invest in modern technology and software to increase its operational efficiency (Van and Vanthienen, 2022). The organisation also can invest in cloud computing to store large amounts of data safely. The organisation can use various digital platforms to promote and sell their products.
Exploring Company Structures in the Construction Industry: Unit 4: Construction Practice and Management, LO1 Describing the Construction Industry with Emphasis on Company Structures
LO4: Critically reflect on the mechanisms required to build teams and influence networks in complex and interconnected digital organisations
Task 4: Developing Digital Leadership
By using the Goleman's leadership styles, advise which Goleman's style leaders within your organisation need to develop to support its digital transformation. Your arguments need to be supported by academic literature.
Answer: Recommendation for Adidas to develop to support its digital transformation By using Goleman's leadership styles
The success or failure of a business heavily depends on the leadership approaches used by the organisation. Several organisations use the Goleman leadership model to understand and apply the different leadership styles for achieving success in their business. This leadership model describes six types or styles of leadership, including "coercive leadership", "affiliative leadership", "visionary leadership", "democratic leadership", "pacesetting leadership", as well as "coaching leadership" (Vasilescu, 2019).
In the case of the coercive style of leadership, the leading force provides threats or rewards to the employees to influence and control them. This leadership approach is used to do work quickly and achieve the short-term goals of the business. In the affiliative leadership style, the leaders build positive relationships and trust among the employees to motivate and increase the efficiency of workers. Business leaders use these types of leadership styles in business when they want to work collaboratively with a team. In order to facilitate the achievement of long-term targets and future business goals, business leaders use visionary leadership styles. In order to apply the visionary leadership style, business leaders must have innovative skills, creative thinking capabilities and high expectations (Thoha and Avandana, 2020).
In the democratic leadership style, the team members also participate in the decision-making process with the leaders. The business leaders take ideas and feedback from all the employees to make effective decisions. In the pacesetting leadership style, business leaders use the improve the business leaders set high standards for achieving the goal and keep high expectations from their team. Business leaders who implement this kind of leadership style in the business work with quality, speed and a high level of performance. In the coaching leadership style, the business leaders interact with each employee to develop their efficiency and skills. This kind of leadership style is used in those businesses where the employees can work independently and have self-direction ability. In order to support digital transformation, the business leaders of Adidas should focus on the visionary leadership style because digital transformation is the long- term goal for every organisation and needs the vision to achieve this. While implementing digital transformation in the business, several employees may get into trouble adopting the change (Dimaki et al., 2021).
Conclusion
Here, at first, clear-cut interpretations of Adidas are defined here, and they are services, core products, manpower, sizes and operation are described. The three vital areas where the description has taken place are also defined as manufacturing, distribution channel and designing. The other is their key to the establishment of faster, uneventful and smoother work by using ultra-modern technology of various robotics in the warehouse, thus making all the arrangements of their products with ease. The other is the use of AI for tracking and data of the user, which is done easily. Business Agility models, hyper-awareness, situational awareness, fast execution, decision making and digital accelerations are in operating here. The approaches in a market to being digital-ready are a customer.
FAQ: Leading Through Digital Disruption
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