Changing the Game: The Rise of Data Analytics in Football

4

October

2020

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Twenty years ago, football, as well as many other sports, was heavily based on expert opinions. The decision-making process, from which players to hire, which ones should be in the starting eleven to match specific tactics, would be based on the combination of experience and gut-feeling of relevant stakeholders.

In the turn of the millennium, it would be very unlikely to encounter a head coach of a professional football club who would be willing to take advice from a data analyst without any football-related background. Nevertheless, being a big business above all, parties in the football world are always searching for ways to improve. Less than two decades later, in December 2017, after Liverpool FC`s player Phillipe Coutinho scored a free-kick goal, Jurgen Klopp, of one the most successful football coaches of his generation, credited the goal to his team of data analysts (Evans, n.d.). This gesture was a clear sign that football has moved from a purely emotional sport to an increasing data-driven one. Clubs such as FC Barcelona, Manchester City, AC Milan and Arsenal are currently already utilizing data at the core of every decision. Through the use of sensors and wearables, clubs are able to run extensive analytics on the performance of their players. Every move a player makes on the field is captured, stored and analyzed. By leveraging the vast amount of generated data, clubs not only improve their players’ performance but can also use predictive analytics to mitigate injuries and evaluate different team tactics. (Evans, n.d.). Besides in-field player management, data analytics has flourished across multiple fields in the football industry. Nowadays, having the right information strategy can be the tipping factor between a successful or failed season. Babb (2020) highlights how data-driven decisions were the crucial pillar of Liverpool’s FC stellar seasons between 2018 and 2020. By leveraging a highly skilled team of data analysts, the football club has become a global reference for both in-field player management analytics as well as data-driven player recruitment.

Football will always remain a passion sport, the emotion of the fans singing from the stands to support their clubs will always remain a critical factor. Nevertheless, it is irrefutable that professional football clubs will face the increasing necessity to adopt data analytics to every process within their organizations. The rise of data analytics in football has just recently started. However, it is already undeniable the impact it has caused. Drawing from other industries, it is plausible to say that the data-driven revolution for football clubs has just begun.

 

Sources:

  1. https://www.intel.co.uk/content/www/uk/en/it-management/cloud-analytic-hub/data-powered-football.html
  2. https://www.harringtonstarr.com/blog/2020/06/the-9-world-class-recruitment-secrets-behind-ending-30-years-of-hurt-for-liverpool-fc

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The Future of Retail: A NIKE Inc Case Study

27

September

2020

5/5 (1)

On the 22nd of September 2020, during Nike`s Q1 earnings call, Nike`s Chief Executive Officer John Donahoe announced an 82% Year-on-Year growth in digital sales, beating all earning expectations (Thomas, 2020). Following such an announcement, the company`s stock rose as much as 12% within a day. This positive investor sentiment towards the company, even amid the COVID-19 crisis, is the reflection of a long process of drastic change in digital strategy by Nike.

Traditionally a wholesaler, with as much of 82% of its revenues in 2014 coming from sales to retail stores such as JD Sports and Footlocker, Nike decided to drastically pivot its corporate strategy (Nasdaq, 2018). Facing significant stagnation, the company announced in 2017 its “Direct to consumer offence”, a 10-year corporate strategy with digital at its core. To own the interaction with consumers and drive a premium (digital) brand experience, Nike announced the ambitious target of achieving 70% of its revenues from owned sales channels* by 2025, from only 18% in 2014 (George-Parkin, 2019).

The announcement of its new strategy would focus on two key pillars, which would eventually enable the company to move from a supplier business model, to omnichannel and finally to ecosystem driver (Weill & Woerner, 2015). Firstly, the focus on digital channels. Nike not only emphasized driving sales through its app and web store, but it also focused on seamless integrating all its targeted apps, such as Nike Running Club, for running enthusiasts, SNKRS app, for sneaker fans and Nike Training Club, for general sports audience. By providing a unified and wholistic digital experience to its consumers, Nike took the first step to change the retail game and create its digital community (Weill & Woerner, 2013). Secondly, Nike decided to divest from wholesale partners which could not align with its differentiated experience strategy (George-Parkin, 2019). By focusing on fewer, and better, partnerships, it allowed the company to strengthen its relationship with remaining retail partners and move towards one integrated marketplace. By doing so, the company moves further into the direction of connecting all channels in which the consumer interacts with the brand. By doing so, Nike can further engage the consumer in its ecosystem and provide one unified and personalized experience across its apps, website and retail partners.

With the fierce competition in the sporting goods industry, it is difficult to predict either Nike strategy will succeed. Nevertheless, with a growth in stock value of 124% within for 4 years of its strategic pivot, the company`s gives clear signs to be reaping the benefits of its effort towards creating the future of retail. Furthermore, as highlighted through John Donahoe`s most recent earnings call, the company gives no sign of slowing down.

*Owned sales channels refer to Nike`s website, apps and owned retail stores.

Sources:

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