Information Technology Management

Carroll University CSC409

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 VIEW

• Easy Navigation• Products Organized By: – 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?