MIS610 Advanced Professional Practice Report 3 Sample

MIS610 Advanced Professional Practice

Assessment Task

In groups, write 2500 words industry report providing a technological solution to a specific issue outlined in industry brief provided in class
Please refer to the Instructions for details on how to complete this task.

Context

Information technology and systems are central to every organisation and industry today. Enterprises may develop products and/or services themselves or procure them, introducing technology as a product or a service is always a risky proposition that requires thorough investigation. All technological interventions have their own complexities and can have legal, ethical, operational and strategic implications on all stakeholders. The purpose of this group report is to engage you in creating a technological solution to an Industry partner in response to a specific issue.

Instructions

1. Industry Brief

• You will be given an Industry brief from an organisation. The brief will be introduced via announcements in Week 5 (Module 3.1) and additional resources will be added during the teaching period.

• Please read the industry brief carefully.

• You are required to work as a group (3-4 people) of consultants for this organisation/industry.

2. Present your findings and solution in an industry report

• The report should be of 2500 words.

• Analyse the situation and complete your research before you start writing the report.

• You may have to do a great deal of problem solving and diagnosis. This would also require you to make use of your creative, analytical, decision making, communication and interpersonal skills.

• You would also have to develop business insight around the case provided to you. What will matter at the end is your professional judgement as an IS/IT professional and how you tackle the problem that has been provided to you.

• Your report should not only analyse the situation, provide insights, but also provide findings and solutions to the client.

3. Structure of the report

Please structure the report as follows:

Title page

The report should include a title page with the subject code and name, assignment title, students’ name, students’ numbers and facilitator(s)’s name, time and day of the class.

Executive summary

The report should begin with an Executive Summary (not included in word count).

Introduction

The introduction will also serve as your statement of purpose for the report. This means that you will tell the reader what you are going to cover in your report. You will need to inform the reader of:

• Your area of research and its context

• The key concepts that you will be addressing

• What the reader can expect to find in the body of the report

Main Body

Respond to the specific requirements of the selected Industry brief. You will report your findings in this section.

Solutions

Present the solutions to the Industry partner in this section including any limitations.

Conclusion

Summarise the report and make any further recommendations.

References

Reference list in APA format (not included in word count).

4. Status Reports

As a group you are required to complete weekly status report to track the progress of the industry report. Please see attached MIS610_Assessment 3_Status Report Template.

5. You are strongly advised to read the rubric which is an evaluation guide with criteria for grading yourassignment. This will give you a clear picture of what a successful industry report looks like.

Please provide a minimum of ten (10) academic references which should be textbooks or academic journals. Appropriate websites may be used in addition to these resources.

Solution

Introduction: Under Armour's Digital Transformation Journey

In the rapidly evolving landscape of the global sportswear and athletic apparel industry, digital transformation has emerged as a crucial factor for companies aiming to maintain their competitive edge and relevance. Under Armour (UA) is the developer, marketer as well as distributor of footwear, apparel, and associated accessories. The product portfolio of the company includes sweatshirts, football gloves, socks, sandals, shoes, baseball batting gloves, performance bags, and other associated goods. The brand sells its products through e-commerce websites, direct-to-customer sales channels and retail stores globally (Globaldata.com, 2023). The firm markets its goods under the brands Armour, UA, Heatgear, Protect This House, Coldgear, I Will, Armour Bra and Armour Fleece. The firm has a business presence around the globe. The headquarter of this brand is in Baltimore, Maryland, United States. Under Armour began as the whole seller apparel provider, now it is transforming itself into a digital business, which uses data to assist consumers accomplish their fitness goals. For the past couple of years, the company’s strategy is to put customers at the centre of everything it does.

Under Armour’s digital transformation is fueled by the complete modernisation of its system to the omnichannel model. It is combining its digital and physical products enabling its customers to accomplish their fitness goals. The company has launched its “fourth generation connected shoe, the HOVR Infinite”, which is built on its HOVR platform that the company has designed with Dow Chemical and links to the “UA MapMyRun” application. MapMyFitness, MyFitnessPal, and Endomondo are three smartphone applications in which UA has heavily invested to purchase and develop to construct its connected fitness platform over the last some years (Alexouda, 2023). Users can sync wearables, optimise activity levels, and test aggregated personal metrics with these personal data tracking tools that are entirely integrated into their own UA Record application of the brand. The value generated by all these applications that provide consumers with access to the extensive and action-oriented dashboard of their biometric data exceeds the brand's prior revenue model.

Customers are now equipped with the personalised tools they require to become better athletes. Under Armour's digital community now possesses more than 120M unique customers globally with the help of the most recent application acquisitions of the brand (Kaseva, 2018). In addition to its past business model, this user base provides the company with two value-capture opportunities, such as access to new markets and leveraging its existing consumer base. Prior to the brand’s connected fitness platform, 30% of the firm’s sales were depending on female customers. However, at present 60% of Under Armour’s application users are female. The brand’s substantial user base enables the firm for maximising value capture by employing self-reported data from existing consumers for making personalised consumer offers. This report delves into the digital transformation journey of Under Armour, a prominent player in the sportswear market. Through an analysis of the company's recent developments, challenges, and strategic shifts, this report aims to shed light on how Under Armour is navigating the digital realm to secure its future growth and success.

Context of the Research

As the sportswear industry undergoes profound changes driven by technological advancements, changing consumer behaviours, and market dynamics, established players like Under Armour are compelled to adapt and innovate. Under Armour's digital transformation journey assumes paramount significance, especially considering recent events that have impacted the company's performance and leadership structure (Yahoo Finance, 2023). Understanding how Under Armour is responding to these challenges and positioning itself within the digital landscape is essential to comprehending the brand's strategies and potential future directions for MBA assignment expert.

Key Concepts to be Addressed

This report will address several key concepts that are central to Under Armour's digital transformation:
Digital Strategy Shift: The report will examine how Under Armour's digital strategy is evolving to embrace emerging technologies, enhance customer engagement, and optimize its online presence. This includes exploring the integration of artificial intelligence, augmented reality, and data analytics (Fool, 2023).

Leadership Transition: The departure of the company's CEO and the subsequent leadership transition play a pivotal role in shaping Under Armour's digital transformation. The report will analyze how this change impacts the strategic direction and execution of digital transformation initiatives (CNBC, 2022).

Customer-Centric Approach: Under Armour's approach to delivering a customer-centric experience will be explored, focusing on initiatives such as personalized product recommendations, virtual try-on experiences, and interactive engagement methods (Retail Dive, 2020).

Technological Innovations: The report will delve into how Under Armour is leveraging technological innovations, such as its SlipSpeed technology with a collapsible heel, to create game-changing products that align with the modern consumer's expectations (Forbes, 2022).

Omni-Channel Experience: The integration of technology across different channels, including e-commerce platforms and mobile apps like MapMyFitness, will be highlighted to demonstrate how Under Armour aims to provide a seamless omnichannel experience (Modern Retail, 2021).

Anticipated Contents of the Body

In the body of the report, readers can expect to find an in-depth analysis of the concepts. The report will delve into Under Armour's historical journey, beginning from its inception, tracing its challenges and successes, and culminating in the present digital transformation initiatives. Key events such as leadership changes, technological advancements, and strategic shifts will be examined, providing a comprehensive understanding of the company's evolution within the context of the digital landscape.

By examining Under Armour's digital transformation journey through the lens of leadership dynamics, technological innovations, customer-centric strategies, and evolving market conditions, this report aims to provide valuable insights into the company's strategic vision and its commitment to harnessing digital advancements for sustainable growth and resilience.

Under Amour’s History

Under Armour has been a widely known brand in the US for its high-quality athletic gear, which includes a selected range of footwear and apparel. The company has also been known for its online and offline stores in the US. Even though the company was able to maintain its international revenue growth for the year 2022 at a rate of 14%, which is $527 million, its revenue in the North American market has been down by 1%, which amounts to $1 billion in comparison to last year's data (Monteros, 2023). The mismatched demand has shifted customer preference from buying discretionary products to spending more on experiences such as travelling to places. This shift in consumer buying behaviour has made retailers pay off dearly for their respective product merchandise.

Customers' unwillingness to purchase a product at its original price in 2022 has made it necessary to introduce offers and discounts on its products by Under Armour. As CFO of Under Armour, David Bergman, it has been noted that the traffic and the customers have remained the same. At the same time, the purchase behaviour has become doubtful, which is challenging the company's revenue growth. Advertising and digital transformations might be effective yet time-consuming concerning the present business scenario, which prevailed in 2022.

Stephanie Linnartz has been declared the new CEO of Under Armour to redefine the brand and increase revenue generation. She was announced as the new CEO in December 2022 and started acting as one on February 27, 2023 (Underarmour, 2023).

Current Situation

Under Armour has been undergoing specific changes which involve an entire transformation of the digital platform which the company has been utilising. One such example includes the transition from wearables to embeddable within three years. The company has always prioritised its customers to formulate its business strategies. Armour Box provides customers who can register their training program, preferred styles, and fitness goals on the company app (Underarmour, 2023).

The sophisticated software analysis is done based on this information and a subscription is provided to the selected customer on the apparel and shoes. Digital transformation is a challenging task because changes must be introduced at every level of the organisational structure. The organisational structures shall adopt the respective changes as promptly as possible.

The new CEO, Stephanie, has introduced specific deliverable elevated designs in the company's organisational structure so that the year 2023 can become a year for revenue growth. PTH3 is an example of such a deliverable design which ensures significant, consistent growth in profitability and returns for the stakeholders and the company in the long run (Monteros, 2023).

The CEO has also been prioritising the market presence of the brand to secure a more prominent spot in the global market as a worldwide brand. The company has undertaken the redesigning of the brand to ensure that it can once again reach its business height by the end of the year 2023. Various prominent company positions have been assigned new leaders to make the transformation effective and satisfactory.

Competitive Set

Nike

One of the competitors of Under Armour- Nike has been able to maintain a competitive edge in the physical and digital spaces by pushing beyond product innovation and integrating technology into every element of the company business, which has evolved from a sports firm to a tech-focused one. Nike has maintained its market share in part by continuously integrating new ideas into its ecosystem and developing brand-new ones. Nike's patent portfolio has nearly doubled, outpacing rivals Adidas and Under Armour. Introducing sustainable practices that benefit both the environment and their bottom line is one way they accomplish this. Although Nike develops and utilises an extensive variety of technology advances, its organisational environment and strategy for corporate innovation is the one thing that consistently sets them unique and guarantees it remains inventive.

Adidas

Even Adidas and Nike have made significant recent advancements around sustainability. To manufacture shoes out of ocean plastic, the shoe industry giant Addidas joined up with the ecological group "Parley for the Oceans." Adidas plans to use only recycled supplies by 2024, and the technology has the potential to disrupt industries because it is constantly becoming better. The programming used to make the shoes becomes better as more information from athletes is gathered. Adidas intends to use the STRUNG technology to a wider range of sports in addition to short-distance training runs, for which the prototype was created.

Lululemon

Lululemon consistently keeps innovation at the top of its brand identity also as its head office, the company operates a research and development focus called Whitespace where about 50 people work, including scientists and physiologists. For a manufacturer of athletic apparel, this is cutting-edge technology. Their strategy for innovation, for instance, specialised textiles such as lab is a concept space for testing new ideas and materials, is dedicated to developing fabrics that combine efficiency, comfort, and elegance. Lululemon purchased the interactive sports platform, bolstering its position in the market for digital fitness, and environment: Lululemon uses environmentally friendly supplies and increases supply chain integrity as part of its efforts to be more environmentally friendly.

Trends and Technological developments in Athletics

The Internet of Things (IoT) is one of the trends that can bring a huge impact on the apparel, footwear industries and athletics area. IoT facilitates and makes data sharing a lot easier. A combination of IoT and wearable technologies can help monitor athletes’ performance before providing them with real-time recommendations (Manavalan, 2019). In fact, their distance travelled, heart rate and other health metrics can be tracked and utilised to offer them valuable information about their training and performance.

Furthermore, thanks to machine learning and advanced algorithms, sports data can be analysed in real-time to gain insights into strategy and performance. For this reason, coaches and teams can make the most of it to make their informed decisions including changing players or strategy (Wang & Gao, 2021).

Predictive analysis is another important technology to enable more data-driven and informed decisions relative to athletics. Particularly, athletes’ previous performance can be analysed as an indicator of their future outcomes. What is more, predictive analysis permits a team to determine what is the best game strategy or identify which players could be a good fit for a game or find out potential players for the team (Morgulev, 2018).

Artificial Intelligent (AI) has become increasingly popular in footwear, apparel, and accessories industries since it can bring disruption. An increasing number of top brands are using AI to offer styles for their clients. To be more specific, customers’ behaviours on a daily basis would be analysed by AI using attributes including their favourites, likes, dislikes, and previous buying patterns. As a result, AI can help fulfil customer expectations by recommending suitable products.

Furthermore, AI algorithms can be utilized to forecast fashion trends along with future demands (Li, 2019). This will support e-commerce, stores, and manufacturing to plan accordingly. Another technology trend worth taking into consideration is rapid data analysis on a significant amount of data. Thanks to the rapid analysis, businesses can receive real-time notifications, and alerts along with feedback about damaged goods or defects. Thus, they can save money by eliminating waste and having sufficient product delivery at the right moment (Elgendy, 2014).

Consumer Trends with Leisure Wear and Digital Enhancement

Leisure Wear

Athleisure Revolution:

The athleisure trend has been a major shift in the athletic wear landscape. Consumers increasingly seek clothing that marries comfort with style, allowing them to seamlessly transition from workouts to everyday activities. This trend has led to the creation of clothing items like leggings, joggers, and sweatshirts that are not only functional at the gym but also fashion-forward enough for casual outings.

Loungewear for Changing Lifestyles:

The rise of remote work and changes in lifestyle brought about by the pandemic has elevated the demand for comfortable loungewear. Brands have responded with a variety of cosy options such as oversized hoodies, soft sweatpants, and relaxed tops. These pieces cater to the need for comfort without sacrificing style.

Sustainability and Eco-Friendly Materials:

With growing environmental awareness, consumers are gravitating towards sustainable choices even in their athletic wear. Brands are incorporating eco-friendly materials like recycled polyester and organic cotton into their leisure wear lines. This emphasis on sustainability aligns with consumers' desire to make mindful choices that have a positive impact on the environment.
Digital Enhancement

Wearable Fitness Technology:

Wearable devices like fitness trackers and smartwatches have become integral to the fitness journey. They offer real-time monitoring of various metrics such as heart rate, steps taken, calories burned, and even sleep quality. For instance, Fitbit and Apple Watch provide users with personalized insights that enable them to track their progress and set fitness goals.

Virtual Workouts and Interactive Experiences:

The digital transformation of fitness has given rise to virtual workouts and interactive experiences. Platforms like Peloton offer users access to guided workouts led by expert trainers. Additionally, technologies like Zwift have transformed indoor cycling into an immersive experience where cyclists can virtually participate in races and explore virtual worlds.

Smart Apparel with Embedded Sensors:

Advancements in textile technology have led to the creation of smart apparel. Clothing items, such as running shoes and socks, are embedded with sensors that provide real-time feedback on form and performance. For example, Sensoria produces running socks with pressure sensors that analyse foot landing and cadence, helping runners optimize their technique.

Augmented Reality and Virtual Reality Integration:

Augmented reality (AR) and virtual reality (VR) are making their mark in the athletic world. Companies like ICAROS combine exercise equipment with VR gaming, allowing users to engage in virtual fitness experiences that simulate activities like flying or racing. This not only adds an element of fun but also motivates users to stay active.

These trends reflect the evolving preferences of consumers who seek both functional and fashionable leisure wear while embracing digital advancements that enhance their fitness experiences. Brands and technologies are responding to these desires, shaping the athletic world in innovative ways.

Digital Strategy and digital transformation for Under Armour

Current Digital Strategy

Under Armour's current digital strategy involves a strong emphasis on online presence, customer engagement, and data-driven insights (Under Armour, n.d.). The company employs an e-commerce platform, social media channels, and mobile apps to connect with customers and enhance brand visibility.

The e-commerce platform allows customers to easily browse and purchase products, while social media engagement, particularly on platforms like Instagram and Facebook, helps maintain a vibrant online community (Under Armour, n.d.).

Changing Digital Strategy

Under Armour is actively transforming its digital strategy to enhance the customer experience and stay competitive (Under Armour, n.d.). The company is focusing on several key areas:

Personalization and AI Integration: Under Armour is exploring the integration of AI and machine learning to offer personalized shopping experiences based on customer data (Under Armour, n.d.). This includes tailored product recommendations and content.

Augmented Reality (AR) Integration: The brand is incorporating AR technology for virtual try-on experiences, allowing customers to visualize products before purchasing (Under Armour, n.d.).

Data-Driven Insights: Under Armour is increasingly using data analytics to gain insights into customer behaviour and market trends (Under Armour, n.d.). This informs decision-making in areas like product development and marketing strategies.

Sustainability and Ethical Practices: The company is leveraging its digital platforms to communicate its commitment to sustainability and ethical practices, responding to consumer demand for socially responsible brands (Under Armour, n.d.).

Enhanced Customer Engagement: Under Armour is striving to create interactive online experiences through interactive content, live events, and virtual communities (Under Armour, n.d.).

Proposed solutions

To further strengthen its digital presence and drive successful digital transformation, Under Armour can consider the following initiatives:

Enhanced Personalization through AI and Data Analytics:

Adopt advanced AI and machine learning algorithms to analyze customer data in real time. This can enable Under Armour to offer personalized product recommendations, content, and marketing campaigns, thereby improving customer engagement and driving sales. (Smith et al., 2019)

IoT Integration for Smart Sportswear:

Develop smart sportswear and accessories embedded with IoT sensors to gather real-time performance data. This data can be used to provide athletes and fitness enthusiasts with actionable insights to optimize their training regimens. (Jones et al., 2018)

Virtual Try-On and Augmented Reality (AR):

Implement AR technology on their e-commerce platform, allowing customers to virtually try on products before making a purchase. This immersive experience can enhance customer satisfaction and reduce return rates. (Chung et al., 2020)

Blockchain for Supply Chain Transparency:

Utilize blockchain technology to increase transparency and traceability within their supply chain. This can help ensure authenticity, ethical sourcing, and quality control of their products. (Iansiti & Lakhani, 2017)

Subscription Services and Gamification:

Introduce subscription-based models that offer exclusive benefits to loyal customers, such as early access to new products, personalized training plans, and rewards. Additionally, incorporate gamification elements into their digital platforms to boost customer engagement and brand loyalty. (Hamari et al., 2014)

Conclusion

In an ever-evolving digital landscape, Under Armour has the opportunity to enhance its digital strategy and embark on a comprehensive digital transformation journey. By incorporating AI, IoT, AR, blockchain, and innovative engagement models, Under Armour can create a more personalized, seamless, and value-added experience for its customers, thereby positioning itself as a trailblazer in the sportswear industry's digital realm.

References

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Forbes. (2022). Under Armour Unveils Game-Changing SlipSpeed with Collapsible Heel. Retrieved from https://www.forbes.com/sites/michaellore/2022/10/26/under-armour-unveils-game-changing-slipspeed-with-collapsible-heel/?sh=735a11444967

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Monteros, M. (2023, January 2). How 2022 Became the year of the Inventory Glut: "it's the classic supply and demand problem." Modern Retail. https://www.modernretail.co/operations/how-2022-became-the-year-of-the-inventory-glut-its-the-classic-supply-and-demand-problem/

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Yahoo Finance. (2023). Under Armour Stock Slides After CFO Resigns Amid Tough Competition. Retrieved from https://au.news.yahoo.com/under-armour-stock-slides-cfo-205401506.html