Executive Summary

This report shows a picture of Nike Inc. knowledge and information management system.
Throughout the report, different perspectives of Nike KM and IM system were discussed.
Nike, the leader in sportswear industry, was established in 1968 by Phil Knight and Bill
Bowerman. Nike’s main products are shoes for all kind of sports, from golf to soccer, Nike also
produce sport apparels. Nike Corporation has a matrix structure with 5 main departments: HR,
Marketing, Finance, Production, and Design & Development. The culture of Nike is a team-
based culture which allows easy knowledge sharing between employees and managers.
Moreover, this report also studies about the flow of 2 kinds of information (general and
technical) within Nike. It also provides reader information about 3 different roles in Nike
(marketing, HR and Production) and the different use of knowledge of those 3 roles. In addition,
it also introduces an expert and a gatekeeper of Nike.
For the better information and knowledge management in the company, a knowledge
management plan is made to recommend two most appropriate technologies that could enhance
the Nike Inc.’s knowledge management infrastructure which are server client (Lotus Note) and
mobile workgroup support application. In addition, this plan also recommends two potential
strategic partners which are General Statistics Office and Vietnam and the Government Website
that Nike could consider whether to cooperate or not to enhance the knowledge in the company.

I. Introduction
Knowledge management (KM) and information management (IM) are 2 of the most important
processes in operating a company. In these days, knowledge become more and more important
because having a good KM will make the work flow of the company more effective, avoid
human brain and become more reactive with the changing environment nowadays.
Nike is a multi-national company with the biggest market share in the sportswear industry. Nike
also has a very advance technology in KM and IM and that does give Nike competitive
advantages. This report will analyze how Nike manages their knowledge and information so
effective. Moreover, this report also provides a KM plan for Nike to predict and plan for the
future.

II. Company overview

1.History
Nike was founded in 1968 by Phil Knight, who is currently the owner, chairman and CEO of
Nike, and his coach Bill Bowerman. In the late ’70, Nike is the most well-known shoe company
in the world, not only producing shoes, they only product other sports equipments. In the ’90
with the born of Reebok, Nike faced lots of competition. There are times that Reebok surpassed
Nike in the market share. In order to regain their position as the market leader, Nike has
diversified its products, especially shoes, for different kinds of sports. In 2006, with the
combination of Adidas and Reebok, 2 biggest competitors, Nike face a great threat in losing the
market.

2. Products
In the ’70, Nike focus only on producing shoes, especially running shoes and in ’80, Nike
expanded its products to multiple kinds of sport. Nike currently focuses on soccer, basketball,
running, baseball and tennis. Beside producing shoes, Nike also produces sport apparels. The
products of Nike usually stick with an image of a famous athlete, for example: Michael Jordan in
basketball, Tiger Wood in golf or Ronaldo in soccer…This method is also an effective marketing
campaign. Moreover, in recent years, Nike also develops a new kind of service which allows
customers to customize their own shoes and then send the order to Nike. This is a breakthrough
in satisfying customer’s needs and wants.

3. Market Position
Nike is currently the leader of the sportswear industry, followed up by Addidas & Reebok group
and Puma in the third place. Nike’s market share in July 2007 is 36% while Adidas group only
have 21%( Investopedia, 2007). The market of Nike is all around the world but the core market
is the USA. Adidas and others competitors can not compete with Nike in the USA market.

4. Structure
Nike has a matrix structure; it is a combination between the functional and the divisional
structure. Nike consists of 5 departments: HR, Marketing & Sale, Accounting, Production, and
Design & Development that cooperate with each others very well. Nike does not manufacture its
own products; Nike signed contracts with the factories to produce their products. In Vietnam,
Nike signed contract with 12 factories to produce for them and to control the production process,
Nike has many production teams and each team is responsible for 1 factory. Each production
team include of a team leader, quality staff, quantity staff, technical staff and scheduling staff.

III. Company KM and IM

1. Culture and its effect on KM
Nike has a very strong team-based culture, to be more specific a sport team-based, which mean
that there is a coach and others are players. A coach will teach, share knowledge with other
employees and employees are also expected to share knowledge amongst them. A coach is
usually the manager or an experienced employee. Nike’s employees work with a guideline in
their mind: Ask and respond. Ask when you do not know and respond to questions from others
when you know. This culture helps Nike to maximize its operation efficiency and minimize
conflict between employees. Moreover, one of the criteria of promotion, salary increase or bonus
is based on the knowledge sharing.

2. Knowledge and Information management

2.1. Information Flow
Nike operates efficiency due to having a smoothly information flow within the company.
Information can be divided into 2 kinds: general information and technical information.
General Information: is information about administration, about the general working of the
whole company or an announcement from the CEO. Those types of information usually flow
from top to bottom, from the CEO, vice presidents to the operational employees. General
information is usually connection between the departments in the company. Nike also has an
intranet and a mail system to ensure the information flow smoothly inside the company.
Technical information: is information regarding to the products. It flows sideways; it can flow
horizontally or vertically within the organization. This kind of information usually comes from
the Design & Development or Production department and then it flow back to the top and flow
throughout the departments. It also flows through the intranet and mail system however this kind
of information is used only by certain group of users who are involved with the products.
2.2. Roles and knowledge
After interviewing 3 different roles of Nike, we have collected different knowledge and different
use of knowledge sharing tools in each role. The 3 roles that we interviewed are: marketing, HR
and Production.
2.2.1 Marketing and Sales
a. Explicit knowledge
Marketing & Sales Department has to store new policies about future growth of company and
based on it to develop new strategies. Moreover, it also requires sales data of company, the
customer profile, and customer feedback to analyze the current situation of Nike. Furthermore,
Sales & Marketing also needs to research about competitors especially about Adidas and Puma
therefore provide strategies in dealing with them.
b. Implicit knowledge
Implicit knowledge of marketing staffs could be the experience in selling, in dealing with
customers . Experienced staff may have experience in create good relationship with customers,
may quickly identify the needs and wants of customers and may understand customer’s feeling
while young staff may not have those.
c. Tools
Nike also provides their marketing departments with some system for better knowledge sharing.
Marketing staffs can always access to the latest product line to get information about the product.
They are also invited to the sell meeting before the launch of any new product so they can
communicate with each others and give feedback about that product. Nike also provides an
extranet for customers to directly access to latest product and give feedback about that product.
Nike’s product trend is now based on customers design, Nike already opened a shop which
allows customers to design their own shoes and then Nike make that order and in the near future,
Nike is going to make a website that allow customers to do the same.

2.2.2. Production
a. Explicit Knowledge
Explicit knowledge of production department could be the number of materials required, the
different product descriptions and supplier descriptions with a product list. Moreover, daily input
material has to be checked, and each month, finished product in the warehouse needs to be
rechecked to record. Furthermore, production department also record changing in price of
different suppliers to choose the most suitable suppliers
b. Implicit knowledge
Production staffs also have lots of tacit knowledge such as negotiation skill, communication skill
and those skills can not be transferred, it can only be learned through practicing.
c. Tools
Production department also has tools that assist in sharing information and knowledge such as
GPO: Global purchasing order and PIM: product integrity management. In addition, Nike has
created a system called Nike Connect that is used to support the information sharing between
Nike and others supply chain members. Nike Connect is a web-based system which connects all
the members in the supply chain, for example: Nike put an order on that system, the
manufacturers and suppliers can access in that system and receive that order, they produce it and
then report back to Nike through Nike Connect. That system contains 3 main steps:
• Design & Development: only accessible for Nike insider, use engineering software.
• Commercialization: process of putting the prototype in the market for testing. Accessible for
both insiders and outsiders, use GPO and PIM software.
• Mass Production: if product success in the market, continue producing it. Accessible for both
insiders and outsiders, use GPO and PIM.

2.2.3. HR department
a. Explicit knowledge
For HR, explicit knowledge could be the company criteria in assigning people, it can also be the
policies when entering the company…
b. Implicit knowledge
Implicit knowledge in HR is the experience in evaluating people. A person can be assigned to
marketing staff under the view of this HR manager but can be assigned to Design & development
under the view of another HR manager. Each HR manager has different views of people and how
to best assign him.
c. Tools
Nike is using software named People Soft to store all the data of employees all around the world
(estimate 20 thousand employees). That software contains information about employees profile,
education and training, performance. It can be accessed anywhere in the world and by a certain
group of users.
Furthermore, HR department of Nike also provide employees with lots of learning tools. First,
Nike provides an orientation webpage for new employees to learn themselves about the
company. Second, Nike also pay lots of money to buy license of the software named E-learning
Platform. That software contains every skill and subjects that is useful for the business.
Employees can access directly to those skill software to learn and improve their knowledge. This
software help Nike a lots in improving employees knowledge and therefore improving the
operation.
In addition to software, Nike also budget for employees to join the conference to improve
knowledge and implement that new knowledge in Nike.
3. Experts
Expert is someone who can answer all the questions in particular area even though it is not their
defined role in the company. Here in Nike Vietnam, I think that the expert is the HR manager Le
Thi Bich Van. She is head of HR department but she seems to know everything in the company.
She is also considered as a liaison between the departmetns in Nike Vietnam. Her task is to
create good relationship and good corporation with every departments in Nike and generating
new policies to encourage employees.
4. Gatekeeper
Gatekeeper is somehow alike an expert, we even do not know the difference between the expert
and the gatekeeper. In Nike Vietnam, we have identified 2 people that could be either gatekeeper
or expert. The first one is the expert Le Thi Bich Van, the second one is the administrative
manager Hoa Thi Thu Thuy. Just like Ms. Van, Ms. Thuy seems to know everything in Nike,
know what is happening at each department. Her main task is to manage the general
administrative information. Moreover, she also deals with the external relationship with the
partners, the government affairs and the public affairs of Nike.

IV. Knowledge management plan

1. Technologies
1.1. Server client: Lotus Note
a. Overview
Lotus Note is a client server, collaborative application designed by IBM software group. It is a
very powerful and efficient tool to help manage and sharing knowledge within the multinational
firms. It provides users with email client, instant message, browser, notebook, and
calendar/resource reservation client, as well as a platform for interacting with collaborative
applications. The multiple-application business environments of Lotus Note may support Nike
employees who are not only in Vietnam, but also in the whole regions, in planning, cooperating
and sharing knowledge within the organization (Wikipedia, 2007).
b. How it enhance knowledge sharing
The Notes clients may help Nike to enhance the knowledge sharing progress by providing
specialized tools. Firstly, the Nike employees may sent and receive email easily because The
Notes client can be used as an IMAP and POP e-mail client with non-domino mail servers. Email
is the basic methods to deliver the information and sharing knowledge because it is fast and easy
to use (Wikipedia, 2007).
Secondly, the Note provides the SameTime Connect application that allows Nike employees to
see their coworkers online and have chat sessions with them. It is more efficient than using
public instant message program such as Yahoo or AOL because the chat section is strictly
controlled by the IT department. Moreover, the chat log is highly secured so Nike can be sure
that its confidential information will not be leaked. The chat feature also provide the group
chatting to support the E-conference or group discussion incase of the employees can not hold
the traditional meeting. Furthermore, the chat application allows the internal employees to sent
and receive files during the conversation to maximize the knowledge sharing purposes
(Wikipedia, 2007).
Finally, the database, Notes/Domino, apply the very powerful database management system that
allows many replicas of the same database can exist at the same time on different servers and
clients, across dissimilar platforms, and the same storage architecture is used for both client and
server replicas. Therefore, the employees may post their work in progress document to the
service and for other coworkers to review, updated and reference. Moreover, it also allows the
mangers to setup project timelines, allocate task and monitor the working progresses because the
manager can customize the workflow of specific project in the database. It is automatically
updated whenever their employees login to the Lotus Note (Wikipedia, 2007).
c. Benefits
• Support users to retrieve data in the cross-database, post their work in progress on the
databases. However, the employees can post the same documents on the databases without the
fear of data duplication and inconsistency.
• Because the Lotus Note is a combination of business applications, users may save time and
work more efficiently because all the information they need is provided in the databases
• The database is highly secured because all the data is encrypted and applied the latest security
tools such as S/MIME, SSL 3.0, X.509 client certificates and an integrated certificate authority.
(Wikipedia, 2007)
d. 2 commercial applications
• Lotus Notes Release 5 client workspace
• Microsoft Exchange: server and clients
• Domino Designer 7 IDE
1.2. Mobile workgroup support application
a. Overview
Today, wireless and mobile workgroup is become a popular term in business environment. Many
Nike employees own laptops and use them in office and work in a team outside the office.
Therefore, there is a need for an application that allows mobile teams equipped with wireless
capable laptops to instantly and securely access the company databases directly between clients
(Colligo, 2007)
b. How it enhance knowledge sharing
The application may enhance knowledge sharing in 3 ways. Firstly, the employees can
continuously maintain the connection and communication with their coworker and their bosses
within the office. Therefore, the boss may sent file and allocate task quickly and immediately
without the direct contact. The employees may raise the questions to their boss and receive the
instructions when the telephone is not available. Secondly, the employees can transfer documents
within the network without the fear of security. Even though the employees works in a group
outside and use the public wireless network, the intra-network is still totally protected and
secured. Finally, Nike may not concern about how to train its staff to use the software because it
has similar function to the chat applications such as Yahoo and AOL (Colligo, 2007).
c. Benefits
• Setup wireless network anywhere: peer to peer or many-to- many
• Security: the application is built in authentication and data encryption tools
• Allows communication and chat section for member in the groups
• Share document files ,and internet resources
• Provide access to the company database even the employees are out of office.
(Colligo, 2007)
d. 2 commercial applications
• Colligo: Workgroup for Lotus Notes
• Colligo Workgroup Edition (WE) 4.0
2. Strategies partners
Nike Inc Vietnam is a foreign company in Vietnam so it should keep the close relationship with
some potential strategic partners that could help it to expand their knowledge connections in the
external environment. In general, there are two most important partner that Nike Inc should
cooperate first is the General Statistic Office of Vietnam and The Government Website
2.1. General Statistics of Vietnam
a. Overview and benefits
This organization, which belongs to the Ministry of Planning and Investment, has taken
responsibilities of helping the government to manage the statistics, organizing the statistical
activities as well as providing the information about the economy and society for some
organizations, companies, and individuals in particular according to the law regulations. By
keeping the relationship with this organization, Nike Inc Vietnam will have more chances to
improve the knowledge related to the statistical activities in Vietnam as well as update timely the
news or some changes in the Vietnam economy and society. This organization also helps Nike
Inc to better manage the labor force or some statistical activities that happens everyday in the
company (General Statistics Office Of Vietnam (GSO), 2007).
b. Contacting and cooperation
In order to contact with this organization, Nike Inc can email, telephone or come directly to this
office and offer to be provided the news or events regularly to the company. Besides that, Nike is
also able to provide some records of the statistical activities of the company to this organization
for a better analysis and management.
2.2. The government website
a. Overview and benefits
This website is originally a news agency of the government and located at the government
official. However, this agency is operated under the form of electronic newspaper. This website
is considered as one of the most important and necessary information sources for the government
about the activities happened everyday. Therefore, cooperating with this agency will bring to
Nike Inc Vietnam some significant benefits for the activities of the company. In this website,
Nike can be provided some important information such as the policy of economic and social
development, technologies strategies, policy of foreign economy as well as some activities or
projects related to the economic and social development of the Vietnamese government (The
government website, 2007).
b. Contacting and cooperation
Since this agency is operated under the form of electronic newspaper, Nike Inc can use the
Contact Us section or call to the agency office to offer cooperation. This cooperation will bring
to the benefits for both organizations since it can help to share the information and knowledge.
Nike Inc will be updated the timely news for a better management and operation as well as the
government can catch with the Nike’s activities in Vietnam.

V. Conclusion
Through out report, we can see that KM and IM are very essential in operating a company
especially huge company like Nike. We can also see how effective are the KM and IM in Nike
work and that's the key point making Nike the leader in the industry. besides, we also provide a
knowledge management plan to predict and plan for the future of Nike.