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Bookshelf About Support Management Informati... X Chapter 2 Global E-business and Collaboration 85 E CASE STUDY QUESTIONS ? 4. What is the role of technology in enabling CFG to grow the fan base? 1. What systems does CFG use, and what do those systems offer the Group? 2. What is the role of information systems in CFG's success? 3. How does innovative use of digital technology en- courage fan engagement? Case contributed by June Clarke, Sheffield Hallam University performance of the organization as a whole. Figure 2.6 shows that the archi- tecture for these enterprise applications encompasses processes spanning the entire organization and, in some cases, extending beyond the organization to customers, suppliers, and other key business partners. Tntarnica Svetama E??? ???? ???-??? Avatama alen lennrarn ne antar C- 85 ?? a Type here to search o HT O x ) ENG 2:58 AM 5/15/2020 Bookshelf About Support C Management Informati... X :- ? INTERACTIVE SESSION ORGANIZATIONS How City Football Group and SAP Manage a Winning Combination The Premier League in the United Kingdom is one of be engaging, informative, and meaningful wherever the world's most lucrative football leagues; a number it is displayed, so the backend systems that CFG has of its clubs are now recognized as global brands with invested in through its partnership with SAP give the loyal fans worldwide. With television rights bringing in content team access to data that can be converted large sums of money, the pressure on teams to do well into accessible, user-friendly information. When a and to produce consistently winning performances is data-driven environment captures large amounts of constant. To be crowned Premier League Champions data from various touch points, outlets for sharing has significant financial rewards attached. that data with fans must ensure that relevant informa- City Football Group (CFG) is a global operation con tion is provided at the right time. Through access to sisting of four different clubs: Manchester City (men the various databases, the content team can send out and women), New York City FC, Melbourne City FC, detailed player analysis and relevant statistics as well and Yokohama F. Marinos. With eight offices operating as produce informed items on player performance in a in seven countries, effective management information format likely to appeal to fans. is essential. The Group has significant trophy-winning Manchester City, or “Man City" as it is more com- aspirations, but it realized that simplifying its opera monly referred to by its “Cityzens,” has grown to over tions and scaling the business while enhancing its fans' 250 fan branches worldwide. Of course, only a limited experience required a technology partner. SAP was number of fans can actually attend the live games, so chosen as the preferred technology partner and official provision has to be made for a positive digital experi- C- 84 Aa Type here to search HT 0 x ) ENG 3:00 AM 5/15/2020 u Bookshelf About Support C Management Informati... X I'I ? provider of a variety of cloud-based solutions. ence for those fans following online. The Amazon With the strategic aim of growing its business activi Prime documentary All or Nothing: Manchester City ties, CFG required systems that provide accurate in provided fans with a behind-the-scenes view of the formation for people working at different levels within 2017-18 season. A Man City Cityzens digital member- the organization regardless of location. There was also ship platform, a virtual reality app and a free app- an emphasis on enabling standard back-end operations based platform for Man City kids, was launched in key to any successful business activity, such as HR, April 2018 specifically for a target audience of children procurement, finance, and operations. To facilitate the aged 7 to 11 to help secure the next generation of fans. work of managers and coaches, match-day prepara Since the team was crowned Premier League Cham- tion also includes access to statistics on not only the pions in 2017-18 and broke a number of records along Club's players but also on opponents. SAP's Challenger the way, it is expected to continue consolidating its Insights provides data on opposing teams to help with position in both the Premier League and European this preparation; the cloud-based technology identi competitions and to meet the expectations of its global fies patterns of play and formations and also provides fanbase. With fans' appetite for current data likely to a visual perspective. This is available on tablets in the increase, the CFG will no doubt continue to make in- Manchester City locker room so players and coaches novative use of technology to match expectations both can make any necessary adjustments to the game on and off the pitch. plan. The SAP Analytics Cloud contains detailed game data gathered over a period of time within a database that can provide access to required statistics and infor Sources: Damian Willoughby, "Corporate Sponsorships Reimag- mative content. ined: City Football Group," SAP News Center, June 6, 2017; Ryan Somers, "Hey Football Fans, Keep Your Finger on the Pulse," SAP Fan engagement is also pivotal to business suc- News Center, September 15, 2016; Tony Connelly, "How Man- cess. In 2016, the Premier League's first fan-friendly, chester City's Partners Are Fueling the Club's Innovation Drive," C- 84 Aa B Type here to search o x )) ENG 3:00 AM 5/15/2020 HT Bookshelf About Support C I'I Since the team was crowned Premier League Cham- pions in 2017-18 and broke a number of records along the way, it is expected to continue consolidating its position in both the Premier League and European competitions and to meet the expectations of its global fanbase. With fans' appetite for current data likely to increase, the CFG will no doubt continue to make in- novative use of technology to match expectations both on and off the pitch. ? Management Informati... X work of managers and coaches, match-day prepara- tion also includes access to statistics on not only the Club's players but also on opponents. SAP's Challenger Insights provides data on opposing teams to help with this preparation; the cloud-based technology identi- fies patterns of play and formations and also provides a visual perspective. This is available on tablets in the Manchester City locker room so players and coaches can make any necessary adjustments to the game plan. The SAP Analytics Cloud contains detailed game data gathered over a period of time within a database that can provide access to required statistics and infor- mative content. Fan engagement is also pivotal to business suc- cess. In 2016, the Premier League's first fan-friendly, interactive digital wall was unveiled: #City Pulse Wall, located in City Square at the Etihad Stadium in Man- chester, was powered by the SAP HANA Cloud Plat- form. This zone comes alive on match day, providing a social hub for fans, with pre-match entertainment blending a physical environment with digital updates and supplementary content. Digital content needs to Sources: Damian Willoughby, "Corporate Sponsorships Reimag- ined: City Football Group," SAP News Center, June 6, 2017; Ryan Somers, "Hey Football Fans, Keep Your Finger on the Pulse," SAP News Center, September 15, 2016; Tony Connelly, "How Man- chester City's Partners Are Fueling the Club's Innovation Drive," The Drum, September 23, 2016; Jen Booton, "How Manches- ter City Uses SAP's Platform to Prepare for Game Day," SportTe- chie, April 16, 2018; "City Football Group Helps Employees Score Goals with SAP SuccessFactors Solutions," SAP News Center, February 15, 2017; Anna Tobin, "Discover How Man City Is En- gaging with Its Local and Global Fan Base," Forbes, September 8, 2018; Isabelle Schuhmacher, "SAP and Manchester City: Scor- ing Chances in the Cloud," SAP News Center, August 21, 2017 C- 84 ?? B Type here to search o R x )) ENG 3:00 AM 5/15/2020

1. Target Hires Key Executive Away from Amazon A retailer's supply chain includes the vendors that supply products, warehouses that store the product, distribution centers that deliver product to the retailers, and retailers who offer the product to the ultimate purchaser. An effective supply chain is crucial to any business and can result in lower costs, improved profitability, and greater customer satisfaction and loyalty. Although Target continues to be a powerful player in the U.S. retail market, it has had an ongoing problem with out-of-stock product. Experts say a major cause of this problem is that Target's supply chain was designed for brick-and-mortar store operations and isn't able to handle the additional demand and complexities of online orders. CEO Brian Cornell has recognized this as a critical problem for the retailer, noting that “Target's growth hinges on our ability to enhance the fundamental aspects of our business, starting with the supply chain." So when Target recently decided to upgrade its supply chain, it went after a seasoned executive-Arthur Valdez, a high-level employee at rival Amazon. During a 16-year career at the world's largest online retailer, Valdez had been promoted through a variety of supply chain positions of increasing responsibility. He eventually became vice president of operations, charged with expanding Amazon's international supply chain. Valdez was offered the position of executive vice president of supply chain and logistics at Target, reporting to Chief Operating Officer John Mulligan. In a statement announcing Valdez's hire, Mulligan noted that "Arthur's leadership and experience will be a tremendous asset as we continue to drive improvements in end-to-end processes, including leveraging our almost 1,800 stores to deliver a seamless experience for our guests." In the retail industry, however, as in many other industries, employers frequently file law- suits over noncompete clauses as part of a strategy to protect trade secrets from walking out the door. And following Target's announcement, Amazon filed a lawsuit in Washington state court to keep Valdez from starting his new job with Target. The lawsuit also serves as both a delay tactic and a warning to other employees and rival employers. Amazon pointed out that a noncompete agreement signed by Valdez prohibited him from working for any direct rival for 18 months following the end of his employment with Amazon. In addition, Amazon claimed that Valdez shared confidential information with Tar- get about how Amazon handles orders and logistics during the peak holiday season. "Mr. Valdez cannot lead Target's supply chain operations without referencing confidential infor- mation learned and developed by him at Amazon," the company said in its suit. Amazon also asked the court to make Valdez pay its legal fees. Amazon's complaint explained that "Mr. Valdez knows, created, and implemented Amazon's most confidential strategies and metrics, including competitive analysis of Target and other similar competitors, in Amazon's supply chain and logistics operations." The complaint further explained that Valdez "developed inti- mate knowledge of the proprietary metrics and analytics" used by Amazon in its supply chain operations. In response to the Amazon lawsuit, Target asserted that Valdez had not violated any agreement, and according to a Target spokeswoman, the retailer took “significant precautions to ensure that any proprietary information remains confidential." Target declared that Amazon's suit was without merit. States vary in the degree to which they will enforce noncompete agreements. In the state of Washington, the courts use a three-factor test to determine if a noncompete agreement is rea- sonable. The courts consider (1) whether restraint is necessary for the protection of the business or good will of the employer, (2) whether the noncompete agreement imposes upon the employee any greater restraint than is reasonably necessary to secure the business of the employer or the good will thereof, and (3) whether the degree of injury to the public due to the loss of the service and skill of the employee warrants nonenforcement. Rather than resort to a protracted court battle, Amazon opted to settle with Valdez, under the terms of a confidential agreement. 2 Critical Thinking Questions 1. Do you believe that this case met the three-factor test of the state of Washington to enforce the noncompete clause of Valdez's contract? Why or why not? 2. What settlement terms do you think would be fair to both Target and Amazon? 3. Do noncompete clauses in employment contracts encourage or discourage innovation? Explain your answer.