Carroll University CSC409 Information Technology Management The Antagonists Introduction • Foot Locker (NYSE: FL) is a leading global athletic footwear and apparel retailer. • Foot Locker has 1,911 stores located in 21 countries, with headquarters in New York City. • Strategic Vision… “Be the leading global retailer of athletically inspired shoes and apparel.” Foot Locker Divisions Sponsored Events James Jones - 2011 Foot Locker 3-point Contest Corporate Structure & Responsibilities Foot Locker Executive Board Finish Line Executive Board Centralization vs. Decentralization System Types • Centralization – Upper Level Control and Decision-making • Decentralization – Lower Level Control – Distribution of Decision-making Foot Locker & Finish Line • Both use a Hybrid System – Combination of both centralized and decentralized. – A mix of strong control and agility. – Both have a stronger centralization influence rather than decentralization. • Foot Locker – More diverse and decentralized than the Finish Line. Which is better? • Foot Locker is doing great now; however, only time will tell. Use of Technology & Trends Use of Technology • • • • User Friendly Website www.footlocker.com Easy Navigation Products Organized By: VIEW – – – – Brand Collection New Arrivals Sale • Secure – Data Stored with Username & Password Use of Technology • App – Champs Sports • mySTYLE • Allows Users To: – Customize Outfits – Locate Stores – Shop & Order Use of Technology • Sponsors many major sporting events. • Video In-Game Advertising – FIFA World Cup – NBA 2K11 Future Technological Trends • Strong Trend to E-commerce – Sites to be “exciting places to shop and buy.” • Added: – Product Ratings – Faster Checkout – Improved Navigation • Web-based Sales Becoming Stronger – Up 11.7% Strategic Information Systems Handhelds • For use by sales associates • Provide information about products – Inventory – Information – Comparable products • Enhances customer interaction Shopper Tracker • Analyzes traffic into and out of the store • Provides data that can prove useful to the business – Peak hours of customer shopping – Helps improve conversion rate • Number of shoppers / Number of purchasers – Labor optimization Operational, Tactical, and Strategic Outlook Foot Locker & Finish Line Planning • Operational – Quarter Reports • Tactical – Year-to-Year Reports • Strategic – Vision – Priorities – Long-Term Financial Objectives Laggard, Average or Leader in Technology Laggard, Average or Leader in Technology • Why is cloud computing not racing ahead at the Foot Locker websites? – Mostly data integrity / security risks… – Businesses use databases all the time to track 12 bazillion things … data integrity? Bad! – Last week’s Amazon.com crash would be a great example of technology kicking the CIO in the face… being down for 2 days? Pretty bad for their career! Laggard, Average or Leader in Technology Laggard, Average or Leader in Technology • Why is cloud computing not racing ahead? – Security risks abound… – How does a businesses keep key data safe? Look at the recent “release” of millions of user profiles by a bank processing center… Bad-Bad-Bad!! – Until data can be secured with confidence (which is coming), the adoption will be slow. Laggard, Average or Leader in Technology Laggard, Average or Leader in Technology • Are “clouds” ever any good for today’s stuff? – – – – – Yes: iPads/Netbooks, etc… Don’t need much of a hard drive… Ditto on power… Spiffy and skinny, quite attractive! Apps abound ;) “Remember, cloud-based stuff is good fun for an everyday user, but not for a business’ backbone.” Website Analysis Website for Customers • • • • Social Media Flash Design with New Product Good Design and Easy to Navigate! Promotional Card Account Access (VIP Club) • Not a retailer but your partner. • Misc Stand Items: Store Locator, Search Website for Potential Employees • Company is staying current. • Horizontal expansion into the same market (e.g. Champs). • Management understands what is necessary to maintain a corporate advantage. • Signs of stability. Website for Investors • This is more critical than the previous reviews. • Apps! Champs but no Foot Locker App. • Multi-Platform Apps – Customers should not have to worry about what phone they buy! • Websites should cross between divisions (Up Selling!) • More back-end information on the website costs, security, and maintenance. Summary • We discussed: – The corporate and technological aspects – Organizational goals – The potential of Foot Locker as a leader Questions?