Entering a market dominated by Nike, adidas, and Reebok is
tough. Competing successfully with them on a global playing
field is even tougher. That’s what former University of Maryland
football player and entrepreneur Kevin Plank did with Under
Armour Inc. (underarmour.com/) in 1996. Under Armour is the
originator of performance apparel that’s made of fabric to keep
athletes cool, dry, and light throughout their games and workouts.
The company develops, markets, and distributes branded
apparel, footwear, and accessories. The brand’s synthetic fabrics
are engineered in many different designs and styles for wear
in any climate. Their products are sold worldwide and worn by
athletes at all levels and ages, from youth to professional. The
Under Armour global headquarters is in Baltimore, Maryland,
with European headquarters in Amsterdam and remote offices
in Denver, Toronto, Hong Kong, and Guangzhou, China.
• ISs with multicurrency and multicompany processing capabilities
were needed to support international expansion.
• Software applications could not support growth of the product
lines or the company’s expansion into several other
countries.
The company had sharp spikes in orders during seasonal
product shifts and promotional pushes. To improve its brand
and channel management, the company needed to replace
its time-consuming manual allocation processes with dependable
available-to-promise (ATP) capabilities. ATP is a business
function that provides data about resource availability
and delivery dates to keep customers informed of their orders’
status. ATP also supports order fulfillment in order to manage
demand and match it to production plans. The software takes
a lot of work out of the order fulfillment process—and less
effort means lower cost and fewer errors.
ERP Solution
After identifying its challenges, management reviewed various
software vendors’ products to identify the one that best met
the company’s needs. The company selected an ERP solution
from SAP (sap.com) that would give it the ability to accelerate
time-to-market of new products, to improve customer service,
and to take advantage of growth opportunities. Under Armour
implemented the SAP Apparel and Footwear Solution for
Consumer Products module to the ERP. Together with the SAP
NetWeaver Exchange Infrastructure component, Under Armour
had the capabilities to achieve its ambitious expansion plans.
The ERP solution had broad executive support and guidance.
Within eight months, a 20-person project team from operations
and IT together with ERP consulting company Metamor
managed the implementation. To improve management and
operational visibility, the company also deployed Web-based SAP
NetWeaver Business Intelligence software through which reports
can be accessed on demand or be delivered on schedule.
Growth in the Top and Bottom Lines
of the Business
With the SAP ERP, products module, and exchange infrastructure,
Under Armour increased both its top line—growth
ERP Gives Under Armour an Edge on Nike
Figure 10.1 Under Armour is the originator of performance
apparel and succeeds in a fiercely competitive industry.
(© Under Armour, Inc. 2010.)
Business and IT Challenges
Under Armour was facing several business challenges due to
its extensive product line, global distribution, and ambitious
growth strategy, as well as the fierce competition in the athletic
apparel and gear industry. The company’s key technology and
business challenges and needs were:
• ISs did not provide sufficient agility to outpace competitors
and enable the company to reinvent itself every six
months—a goal important to top management.
MKT OM ACC GLOBAL
286
IS
c10EnterpriseInformationSystems.qxd 11/8/10 10:56 AM Page 286
10.1 Enterprise Systems
Enterprise information systems, or enterprise systems for short, are systems that help
managers and companies improve their performance by enabling them to seamlessly
share data among departments and with external business partners. Enterprise systems
allow workers to access and analyze real-time information and transaction
processes across the entire organization. These systems integrate the functional systems
that you read about in Chapter 9, such as accounting, finance, marketing, and
operations. Another advantage of enterprise systems is that processes become more
automated or totally automated, which increases efficiency. For example, by automating
finance processes, a company can do things such as accept online orders and do
business-to-business (B2B) transactions electronically instead of via e-mail or offline
methods such as telephone or fax.
Prior to selecting and implementing an ERP or other enterprise system, it’s
essential that a company identify the problems to be solved, the goals to be achieved,
and the type of support the IS is to provide. For example. Under Armour’s management
wanted real-time or near-real-time data and sufficient agility to respond quickly
to operational and market conditions. Agility is the ability to thrive and prosper in
an environment of constant and unpredictable change. Agility is a result of streamlining
processes on the shop floor to speed up order fulfillment, which in turn maximizes
capacity for increased productivity.
in sales—and bottom line—growth in net income. With
automated ATP processes, the data is reliable and inventory
management is efficient and lower cost. Multiple currencies
and companies are supported. Managers have a clear view
of timely data to drive better decisions and business
performance.
On July 28, 2009, Under Armour announced positive
financial results for the second quarter (Q2) of 2009—a time
when most companies’ sales were being hurt by the recession.
Consolidated net revenues for Q2 increased 5.1 percent to
$164.6 million, and net income increased 4.7 percent. The
apparel division’s net revenues increased 16.5 percent while
direct-to-consumer net revenues grew an impressive 36.6 percent
during Q2. CEO Kevin Plank stated about Q2, “Our
results this quarter demonstrate our continued ability to successfully
manage our business.”
Given the capabilities provided by the ERP, the company
is able to close its books faster than ever, to bring new operations
onboard quickly, and to make more knowledgeable
decisions with greatly improved operational visibility. With
bottom-line growth every year since 1996 and net revenues
over $810 million in 2009, Under Armour is one of the bestperforming
and fastest-growing public companies.
With clear objectives for the ERP, SAP software, and the
assistance of an experienced consulting firm, Under Armour
improved sales revenues and profits in a highly competitive
industry during a recession. The Under Armour case illustrates
the operational and strategic benefit of enterprise systems to
ensure quick response to market changes and customer needs.
Doing so is not a simple task, as you read in this chapter.
Sources: Compiled from Business Wire (2009), SAP (sap.com), and
Under Armour (underarmour.com, 2010).
For Class Discussion and Debate
1. Scenario for Brainstorming and Discussion: Many factors
contributed to Under Armour’s success in the fiercely competitive
sports apparel industry.
a. Identify all of the factors, reasons, and conditions that contributed
to Under Armour’s success.
b. Discuss the importance of each factor, reason, and condition.
Decide which are the top three success factors and
explain why.
2. Debate: Based on your answers to 1(a) and (b), debate how
and to what extent a company wanting to enter that market
today—given today’s economic and market conditions—could
succeed for the same reasons and due to the same factors
Entering a market dominated by Nike, adidas, and Reebok istough. Competing successfully with them on a global playingfield is even tougher. That’s what former University of Marylandfootball player and entrepreneur Kevin Plank did with UnderArmour Inc. (underarmour.com/) in 1996. Under Armour is theoriginator of performance apparel that’s made of fabric to keepathletes cool, dry, and light throughout their games and workouts.The company develops, markets, and distributes brandedapparel, footwear, and accessories. The brand’s synthetic fabricsare engineered in many different designs and styles for wearin any climate. Their products are sold worldwide and worn byathletes at all levels and ages, from youth to professional. TheUnder Armour global headquarters is in Baltimore, Maryland,with European headquarters in Amsterdam and remote officesin Denver, Toronto, Hong Kong, and Guangzhou, China.• ISs with multicurrency and multicompany processing capabilitieswere needed to support international expansion.• Software applications could not support growth of the productlines or the company’s expansion into several othercountries.The company had sharp spikes in orders during seasonalproduct shifts and promotional pushes. To improve its brandand channel management, the company needed to replaceits time-consuming manual allocation processes with dependableavailable-to-promise (ATP) capabilities. ATP is a businessfunction that provides data about resource availabilityand delivery dates to keep customers informed of their orders’status. ATP also supports order fulfillment in order to managedemand and match it to production plans. The software takesa lot of work out of the order fulfillment process—and lesseffort means lower cost and fewer errors.ERP SolutionAfter identifying its challenges, management reviewed varioussoftware vendors’ products to identify the one that best metthe company’s needs. The company selected an ERP solutionfrom SAP (sap.com) that would give it the ability to acceleratetime-to-market of new products, to improve customer service,and to take advantage of growth opportunities. Under Armourimplemented the SAP Apparel and Footwear Solution forConsumer Products module to the ERP. Together with the SAPNetWeaver Exchange Infrastructure component, Under Armourhad the capabilities to achieve its ambitious expansion plans.The ERP solution had broad executive support and guidance.Within eight months, a 20-person project team from operationsand IT together with ERP consulting company Metamormanaged the implementation. To improve management andoperational visibility, the company also deployed Web-based SAPNetWeaver Business Intelligence software through which reportscan be accessed on demand or be delivered on schedule.Growth in the Top and Bottom Linesof the BusinessWith the SAP ERP, products module, and exchange infrastructure,Under Armour increased both its top line—growthERP Gives Under Armour an Edge on NikeFigure 10.1 Under Armour is the originator of performanceapparel and succeeds in a fiercely competitive industry.(© Under Armour, Inc. 2010.)Business and IT ChallengesUnder Armour was facing several business challenges due toits extensive product line, global distribution, and ambitiousgrowth strategy, as well as the fierce competition in the athleticapparel and gear industry. The company’s key technology andbusiness challenges and needs were:• ISs did not provide sufficient agility to outpace competitorsand enable the company to reinvent itself every sixmonths—a goal important to top management.MKT OM ACC GLOBAL286ISc10EnterpriseInformationSystems.qxd 11/8/10 10:56 AM Page 28610.1 Enterprise SystemsEnterprise information systems, or enterprise systems for short, are systems that helpmanagers and companies improve their performance by enabling them to seamlesslyshare data among departments and with external business partners. Enterprise systemsallow workers to access and analyze real-time information and transactionprocesses across the entire organization. These systems integrate the functional systemsthat you read about in Chapter 9, such as accounting, finance, marketing, andoperations. Another advantage of enterprise systems is that processes become moreautomated or totally automated, which increases efficiency. For example, by automatingfinance processes, a company can do things such as accept online orders and dobusiness-to-business (B2B) transactions electronically instead of via e-mail or offlinemethods such as telephone or fax.Prior to selecting and implementing an ERP or other enterprise system, it’sessential that a company identify the problems to be solved, the goals to be achieved,and the type of support the IS is to provide. For example. Under Armour’s managementwanted real-time or near-real-time data and sufficient agility to respond quicklyto operational and market conditions. Agility is the ability to thrive and prosper inan environment of constant and unpredictable change. Agility is a result of streamliningprocesses on the shop floor to speed up order fulfillment, which in turn maximizescapacity for increased productivity.in sales—and bottom line—growth in net income. Withautomated ATP processes, the data is reliable and inventorymanagement is efficient and lower cost. Multiple currenciesand companies are supported. Managers have a clear viewof timely data to drive better decisions and businessperformance.On July 28, 2009, Under Armour announced positivefinancial results for the second quarter (Q2) of 2009—a timewhen most companies’ sales were being hurt by the recession.Consolidated net revenues for Q2 increased 5.1 percent to$164.6 million, and net income increased 4.7 percent. Theapparel division’s net revenues increased 16.5 percent whiledirect-to-consumer net revenues grew an impressive 36.6 percentduring Q2. CEO Kevin Plank stated about Q2, “Ourresults this quarter demonstrate our continued ability to successfullymanage our business.”Given the capabilities provided by the ERP, the companyis able to close its books faster than ever, to bring new operationsonboard quickly, and to make more knowledgeabledecisions with greatly improved operational visibility. Withbottom-line growth every year since 1996 and net revenuesover $810 million in 2009, Under Armour is one of the bestperformingand fastest-growing public companies.With clear objectives for the ERP, SAP software, and theassistance of an experienced consulting firm, Under Armourimproved sales revenues and profits in a highly competitiveindustry during a recession. The Under Armour case illustratesthe operational and strategic benefit of enterprise systems toensure quick response to market changes and customer needs.Doing so is not a simple task, as you read in this chapter.Sources: Compiled from Business Wire (2009), SAP (sap.com), andUnder Armour (underarmour.com, 2010).For Class Discussion and Debate1. Scenario for Brainstorming and Discussion: Many factorscontributed to Under Armour’s success in the fiercely competitivesports apparel industry.a. Identify all of the factors, reasons, and conditions that contributedto Under Armour’s success.b. Discuss the importance of each factor, reason, and condition.Decide which are the top three success factors and
explain why.
2. Debate: Based on your answers to 1(a) and (b), debate how
and to what extent a company wanting to enter that market
today—given today’s economic and market conditions—could
succeed for the same reasons and due to the same factors
การแปล กรุณารอสักครู่..
