How adidas is owning the digital transformation game | Intelligent Automation Network – AiiA
On March 19, 2021, Adidas outlined a new 5-year growth plan dubbed “Own the Game. ” The goal? Double online sales to €9 billion by 2025 while boosting profit margins and working towards climate neutrality.
Critical to this endeavor is Adidas’ embrace of digital technology and automation. According to a blog post outlining the “ Own the Game ” strategy, “the company’s electronic transformation will be driven simply by investments of more than € 1 billion until 2025. Core processes across the entire value chain will be digitalized: from the creation process with 3D design capabilities, via the particular sourcing of its products to selling it to customers plus consumers. In 2025, the vast majority of adidas’ product sales will be generated with products that were created and sold digitally. To achieve this, the company will expand its data and technology expertise internally and increase the size of its tech team. In 2021 alone, adidas will hire more than one, 000 tech and digital talents. The particular company is also investing into the new ERP system S/4HANA. ”
According in order to additional reports , the S/4HANA will be fully integrated along with AWS. Not only will the particular deployment associated with SAP on AWS streamline the company’s global supply chain, inventory, and merchandising operations, it will enable the company to leverage machine learning techniques to deliver personalized customer experiences such as product and fit recommendations. They also hope to use the technologies in order to create electronic twins of products to help accelerate and increase the particular efficiency associated with the product development process.
Via a 2021 statement, Markus Rautert, senior VP, technology enablement at Adidas AG, explained, “We want to drive innovation across our business, which includes everything from how we design our items to how we engage with the consumers who buy them. By committing to cloud infrastructure, we have the scalability plus elasticity we need in order to handle the particular seasonality of our company during peak demand, and support the projected development in our e-commerce business in the years to come. Deploying SAP environments on AWS isn’t just about transforming our technologies, it’s about transforming company opportunities and using AWS’s wide range of cloud abilities to create efficiencies plus bring us closer to customers. ”
Simply by decentralizing and democratizing enterprise data, information mesh architecture has emerged as a powerful enabler associated with digital change. With this in mind, adidas too has transitioned from a monolithic, centralized data architecture to a data mesh.
As adidas’ Director Platform Engineering, Javier Pelayo, exclaims in the recent blog post that outlines how they successfully implemented a data mesh (which we highly recommend you read , “ We can proudly say that adidas has been successful in the Microservices journey; definitely, applying the same concepts to democratise the particular access in order to the data was a clear field of investment.
Also, to complete the context, all of us implemented the Data Streaming strategy based on Kafka that was following the particular main principles:
- Domain-oriented decentralized information ownership plus structures
- Self-serve data facilities as a platform”
Like many retailers looking to target younger generations of consumers, adidas will be diving headfirst in to the Metaverse. Phase one began within late 2021 when the launched and sold their first NFTs, the total sales of which amounted to over $22 million .
Phase two began in April of 2022 along with the launch of Ozworld, the world’s first personality based, AI generated avatar creation platform, to help promote the OZWEEGO series of physical footwear. In short, after completing a highly designed, interactive questionnaire, Ozworld’s AI generates an individualized adidas-branded Avatar that can be downloaded and used throughout the web.
To celebrate the particular launch associated with Ozworld, they also co-hosted an online event at Tencent Music Entertainment Group’s virtual music festival TMELAND. Using their Ozworld Avatars, users could attend a “concert” featuring Jay Park plus MC Jin as well as socialize with friends and walk a virtual catwalk in order to show off their avatars.
Over the past decade, adidas has surfaced as a pioneer of sustainability. Within addition to increasing the use associated with recycled materials in their products, the organization has also vowed to reduce GHG emissions across its entire worth chain by 30% simply by 2030.
Quantifying the particular environmental impact of the single garment is an incredibly difficult procedure. Organizations must look at everything from where the product was made, material waste and how the original raw materials were sourced, amongst a few dozen more variables.
In order to overcome these challenges, adidas partnered with TrusTrace to more effectively aggregate and leverage materials traceability data. According in order to TrusTrace’s website , “adidas chose Certified Material Compliance and they’ve integrated their own systems with TrusTrace, ensuring seamless information flow between PLM, Purchase Order System, and Supplier Management systems. Besides automated data flows, the integrations also ensure data quality, as the data is continually updated, capturing last minute changes to designs or purchase orders. adidas and the TrusTrace Business Services team also worked in tandem to onboard hundreds of suppliers and get them familiar with how to share documentation on TrusTrace within the first months. ”