IT Speech
Good Afternoon everyone,

Today I will be conducting a presentation on what Management Information Systems are and how they are used, as well as how the company Nike would use Management Information Systems to gain a strategic competitive advantage in the sports industry.
Nike is a multinational corporation that is involved in the development, design, manufacturing and sale of footwear, apparel, equipment, accessories and services. Nike is the world’s largest supplier of athletic shoes, apparel and other sports equipment and in 2017, generated a global revenue of 34 billion US dollars.
Today I will be presenting:
What is a Management Information System?
What is the need for a Management Information System?
What is ERP?
What are the Advantages and Disadvantages?
What is the Role of a Management Information System?
Porter’s Competitive 5 forces
First of all, What is a Management Information System? A Management Information System is a collection of financial information from a computerised database that allows the decision makers of a business make the necessary day to day decisions to achieve optimal performance for the business. These results are achieved through the use of information technology, individual and customer opinion, and business process to record and store all appropriate information.
Secondly, What is the need for Management Information Systems? Management Information Systems are essential in gaining a strategic competitive advantage in regards to providing the middle managers of an organisation a overall report on their performance. Management Information Systems allow these managers to locate the different trends of their products to monitor the business and predict the future performance of the corporation through the use of daily, weekly, monthly and annual reports. It is essential for organization’s to use Management information Systems to be able to communicate between different branches of a business to have easy access to day to day operations, as well as having extended contact to customers and suppliers through the use of SMS and Email and to keep all records of transactions.
What is ERP? Enterprise Resource Planning is a business process management software that allows organization’s to use a system of integrated applications to manage the business and automate many functions. ,
So, How Does Nike Use Information Technology and Management Information Systems? Nike can combine all the major components of MIS by individualising their products through the use of Nike ID and Nike+.
Nike+ is a software program that collects the data of individuals running performance. Nike uses information technology to design the Nike+ sensor with compatible shoes and tracking device to use the information collected by the individuals run to store the users personal information and running history to serve as a social media outlet for users. Through the collection of customers personal information, managers are able to use MIS to make decisions in regards to target marketing within certain demographics, as well as reach out to their customers social group to increase consumer engagement through the use of their products.
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Nike iD is a service offered by Nike that allows consumers to customise and design their own Nike merchandise. The service is accessed online on, in-store through studios and iphone app. The software program gives Nike a personal connection to their consumers, in which will increase customer intimacy. The app also allows Nike to make decisions on their merchandise design based on their collected data from Nike iD e.g. a popular design of shoe can be manufactured by Nike to increase sales.
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Management Information Systems benefit Nike as a corporation in regards to retaining maximum data to increase sales and revenue. Advantages of using MIS includes:
Fast data processing and information retrieval
Improved data accuracy
Improved security of data
Reduced data duplication
Improved backup systems
Easy access to information
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Although Management Information Systems have their advantages, there are also some disadvantages that may hinder the success of the Nike corporation, such as:
Expensive to setup and configure everyone’s individual data
There may be technical faults that can extremely affect the corporation’s success
Risk of Fraud
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Nike uses Management Information Systems to ensure that they can:
Achieve Operational Excellence
Develop New Products and Services
Attain Customers Intimacy and Service
Improve Decision Making
Promote Competitive Advantage
And Ensure Survival

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MIS allows Nike to achieve operational excellence as due to their increased data on customers, their improved efficiency will result in increased productivity and therefore higher profits. Nike is able to use all of this information to develop new products and services to attract new customers and satisfy existing customers through new and updated sports equipment and merchandise. MIS has allows customers to already feel the intimacy and personal service with Nike through the use of Nike+ and Nike iD in which maintains a high level of individual customer service. As stated before, improved decision making is a key factor for the use of the Management Information System as it allows decision makers to use the data collected to manufacture equipment targeting certain audiences effectively. In gathering a large customer base, Nike is able to charge less through superior products and can achieve higher profits due to their personalised equipment in which ensures the survival of the corporation.
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In order for Nike to achieve a competitive advantage amongst other contemporary sports business, the corporation must refer to Porter’s Competitive Forces Model in order to ensure success. This model of forces consists of Traditional Competitors, New Market Entrants, Substitute Products and Services, Customers and Suppliers.
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For Nike, there is a strong sense of traditional competition in the sports industry with other major corporations such as Adidas, Under Armour and Puma. Nike ensures it stays ahead of its competition by constantly endorsing major sporting organization’s and players, in order to attract loyal customers of that particular organisation or player. Nike has had to maintain its spending on new technologies, equipment, merchandise and apparel which insists there is a strong competitive market in the sports industry.
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Although there is always a threat of new market entrants in the retail industry, Nike has been able to expand their corporation globally, and there has built a very large and loyal customer base. For other brands to become competitive to Nike, they would have to encounter the high costs involved in brand development and catch up to the global distribution and manufacturing the Nike corporation has been able to set up.
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The threat of substitute products and services is a moderate force due to the fact that many corporations in the sports retail industry manufacture and market similar products. Although, loyal customers are likely to stick with the Nike products as they are easily accessible both online and in stores, similar if not cheaper pricing due to being a large corporation and the quality and design of Nike products are seen to be superior to other companies
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The bargaining power of customers is a moderate force as it is easy for customers to be able to find similar products manufactured by other brands, however the pricing will be extremely similar. Nike is very successful in the marketing and sponsoring of their products through successful sporting icons that can influence their consumers in which they will pay for products to be just like their favourite organisation or player.
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Nike has no issues when it comes to suppliers. Nike products are made globally in 42 countries with approximately 620 factories. Nike has the power to easily switch suppliers if needed due to their public attraction and powerful brand name.