The Use of BI in Nike Inc.

By:

Codey Battista

Mason Perham

Gadiputi Madhava Kalyan

Om Ajay Sawant

MIS 584: Business Intelligence

Worcester Polytechnic Institute

Professor Kordzadeh
Table Of Contents

SECTION 1: Executive Summary 1

SECTION 2: Introduction 2
SECTION 3: The Proposed BI Solution 5
1. What is Business Intelligence (BI)? 5
a. Data Sources 5
b. ETL (Extract, Transform, Load) 5
c. Data Storage 6
d. Data Analytics and Querying 6
e. Data Visualization 7
f. Monitoring and Alerting 7
2. BI Solution Value Generation: 7
SECTION 4: Three Use Cases/Prototypes 11
1. Sales Dashboard 11
a. Managerial Questions 12
2. Global Manufacturing Dashboard 14
a. Managerial Questions 16
3. Sentiment Analysis 18
SECTION 5: Implementation 29
1. Managerial Considerations: 29
a. Kotter's 8-Step Organizational Transformation Model 29
2. Technical Considerations for Nike’s Business Intelligence (BI) Solution: 30
a. Data Integration and Governance 31
b. Data Quality Management 31
c. Metadata Management 31
d. Scalability and Performance 31
3. Ethical Considerations: Protecting Privacy, Mitigating Bias, and Managing Risks 32
a. Privacy and Data Protection 32
b. Mitigating Algorithmic Bias 32
c. Transparency and Accountability 32
SECTION 6: Summary and Conclusion 34
1. Summary 34
2. Recommendations 34
References 35
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SECTION 1: Executive Summary

The objective of this project is to design and propose a comprehensive Business
Intelligence (BI) solution tailored to Nike’s business needs. As a global leader in sportswear,
Nike operates in a highly competitive and dynamic market where leveraging data is crucial for
maintaining a competitive edge. This project identifies key challenges in Nike’s current data
management and decision-making processes, such as fragmented data sources, lack of real-time
insights, and limited integration of advanced analytics.

The proposed BI solution addresses these challenges by integrating data sources,

implementing a robust ETL process, and establishing a centralized data warehouse. By
leveraging advanced analytics and visualization tools, Nike can gain actionable insights into
sales trends, product performance, customer sentiment, and operational efficiency.

Key deliverables include:

1. A detailed framework for Nike’s BI architecture, including ETL, data storage, analytics,
and visualization components.
2. Prototypes for two interactive dashboards tailored to Nike’s sales and global
manufacturing operations.
3. A sentiment analysis on customer reviews.

The implementation of this BI solution is expected to enhance Nike’s decision-making

processes, optimize operations, and improve customer satisfaction. By adopting a data-driven
approach, Nike can strengthen its market position and drive innovation.
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SECTION 2: Introduction
Nike, Inc., is a multinational corporation specializing in the design, manufacturing, and
marketing of athletic footwear, apparel, equipment, and accessories. Headquartered in Beaverton,
Oregon, Nike operates in over 190 countries and employs more than 75,000 people globally.
Nike’s organizational structure includes several key departments such as product design,
marketing, supply chain, and retail operations, with this project focusing on optimizing
data-driven processes across multiple business units. The scope of this project encompasses
Nike’s sales and supply chain divisions, aiming to unify their BI processes to better support
strategic, operational, and tactical decision-making.

The company has been strategically investing in digital transformation platforms to enhance its
operational and analytical capabilities. Nike relies on SAP as its primary ERP system, enabling
integrated management of global supply chains and supporting real-time inventory tracking and
logistics operations [7]. Despite these advancements, business intelligence (BI) tool adoption
remains fragmented. Nike utilizes tools like Tableau and Power BI, but their implementation is
sporadic and not standardized across the organization.

Historically, Nike has leaned on manual reporting processes and widely used tools like MS
Excel. Iits decentralized analytics approach allows individual departments significant autonomy
in their reporting methodologies, leading to inconsistencies in data governance and integration
efforts. The absence of a dedicated BI team further exacerbates these challenges, as analytics
efforts remain siloed and lack coordination.

Nike’s analytics maturity can be classified as “analytically driven,” underpinned by its

investments in e-commerce and digital platforms[6]. However, the company has not fully
embraced advanced analytics capabilities, such as predictive modeling and real-time monitoring.
While Nike’s technological evolution reflects a focus on innovation, opportunities remain to
improve data governance, integrate analytics processes, and foster a more cohesive BI strategy.

We also looked at other athletic apparel companies to compare them to Nike. We looked at
Adidas and Puma.

Adidas Case Study:

Adidas, a leading global sportswear brand, confronted significant market challenges by

recognizing the limitations of its traditional decision-making processes. Initially operating as a
wholesaler, the company expanded into retail, eCommerce, and franchising by the early 2000s,
driving the necessity for more sophisticated technological approaches.

The company implemented a robust Business Intelligence system to address its strategic
challenges. This system enabled real-time data gathering from various sources, including retail
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sales, online platforms, marketing campaigns, and customer interactions. A key innovative
feature was the integration of consumer sentiment analysis from social media and customer
feedback, which became visible through comprehensive BI dashboards.

The technological transformation provided Adidas with critical insights into consumer behavior,
allowing them to predict seasonal demand, track regional trends, and gain a competitive
advantage in a rapidly changing market. This data-driven approach enabled more efficient
product launches, targeted marketing efforts, and optimized inventory management.

Financially, Adidas demonstrated remarkable performance. The company achieved total sales of
$717.82 million with a profit of $332.13 million, reflecting an impressive year-on-year growth of
294.23%. Footwear emerged as the top-selling category, followed by apparel. Sales were
well-distributed across retail, eCommerce, and other channels, with concentrated performance in
several high-performing states.

Puma Case Study:

Puma Australia faced significant operational challenges with manual budgeting and planning
processes. Their existing systems were time-consuming, prone to errors, and required extensive
data transposition across multiple platforms. Complex reporting hierarchies further slowed
decision-making and limited the company's ability to respond quickly to market shifts.

To address these challenges, Puma adopted the BOARD platform, a comprehensive solution that
streamlined budgeting, planning, and sales analytics. The platform provided real-time data
integration, enabling the company to run simulations, create dashboards, and develop predictive
models. This technological intervention dramatically transformed Puma's operational approach,
reducing reporting time from days to minutes.

The implementation of BOARD empowered Puma to make faster, more informed decisions
based on accurate data. This enhanced their strategic planning across regions and product
categories, providing a more agile approach to market challenges.

Financially, Puma experienced mixed results. The company's total sales reached €8.6 billion,
marking a modest 1.6% increase from the previous year. However, they encountered declines in
EBIT and net earnings of 3.0% and 13.7% respectively. Footwear demonstrated strength with a
6.1% growth, while apparel categories declined by 4.6%. Direct-to-consumer sales grew
significantly by 17.5% through retail and e-commerce channels, though currency fluctuations,
particularly in Argentina, impacted regional performance.
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Comparative Insights:

Both case studies reveal critical strategies for modern sportswear brands. They demonstrate the
increasing importance of technology-driven insights, real-time data analytics, and agile
decision-making processes. For brands like Nike, these examples highlight the necessity of
investing in sophisticated business intelligence technologies to remain competitive in a rapidly
evolving global market.

The key lessons include the importance of:

- Real-time data integration

- Multi-channel sales strategies

- Technological innovation

- Adaptive strategic planning

- Comprehensive market analysis

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SECTION 3: The Proposed BI Solution

1. What is Business Intelligence (BI)?

Business Intelligence (BI) refers to the process of using data-driven methodologies and
technologies to analyze and present actionable information. The goal of BI is to help
organizations make informed decisions by leveraging data from diverse sources. BI solutions
integrate data collection, transformation, analysis, and visualization to provide insights that drive
strategic, operational, and tactical decisions.

A robust Business Intelligence (BI) solution for Nike involves a set of interconnected
components that work together to turn raw data into actionable insights. These components
facilitate data-driven decision-making across Nike’s departments, enhancing efficiency,
competitiveness, and customer satisfaction.

a. Data Sources

● Definition: The origins of raw data, both internal and external, that are critical for Nike’s
operations and strategic planning.
● Sources:
○ Internal Data: Operational databases, sales data, customer interactions, and supply
chain metrics.
○ External Data: Market trends, competitor pricing, customer sentiment from social
media, and industry benchmarks.
○ Unstructured Data: Product reviews, survey responses, and other text-based or
multimedia data.
● Value: Ensures that Nike has a rich and diverse dataset, providing a holistic view of
business performance, market position, and customer preferences.

b. ETL (Extract, Transform, Load)

● Definition: A process for consolidating data from various sources into a unified,
analyzable format.
● Stages:
○ Extract: Collects raw data from Nike’s diverse systems.
○ Transform: Cleans, formats, and harmonizes data, resolving inconsistencies like
duplicate records or missing values.
○ Load: Stores the cleaned data in centralized repositories.
● Value: Ensures Nike’s data quality and consistency, enabling accurate, reliable analytics
and reporting across departments. Proper ETL reduces manual effort and errors, making
data readily available for timely decision-making.
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c. Data Storage

● Definition: Centralized locations for structured and cleaned data to support analytics and
reporting.
● Components:
○ Data Warehouse: Consolidates all Nike data into a single, central repository, ideal
for historical and aggregate analysis.
○ Data Marts: Smaller, department-specific data subsets for focused insights (e.g.,
supply chain, sales).
● Value: Facilitates quick access to data for Nike’s analysts and managers, enabling
historical trend analysis and real-time insights without disrupting operational databases.

Proposed Data warehouse structure:

d. Data Analytics and Querying

● Definition: Tools and algorithms used to process Nike’s data, uncover patterns, and
derive actionable insights.
● Capabilities:
○ Trend Analysis: Identifies shifts in sales, customer preferences, or market
demand.
○ Predictive Analytics: Forecasts future sales, inventory needs, or customer
behaviors using machine learning and statistical models.
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○ Querying Tools: Enables Nike’s teams to explore data with SQL or visual query
builders, ensuring tailored insights.
● Value: Provides Nike with the ability to make informed decisions by understanding past
and present trends, and anticipating future opportunities or challenges.

e. Data Visualization

● Definition: Dashboards and reports that present Nike’s data in an interactive and
user-friendly format.
● Tools:
○ Dynamic dashboards tailored for different stakeholders (e.g., product teams,
regional managers, executives).
○ Visual elements like bar charts, heat maps, and geographic maps to simplify
complex data.
● Value: Transforms Nike’s raw and analytical data into actionable insights that are easily
interpretable, supporting faster and more strategic decision-making across the
organization.

f. Monitoring and Alerting

● Definition: Automated systems that track Nike’s key metrics in real time and send alerts
when deviations or anomalies are detected.
● Applications:
○ Supply Chain: Alerts for stock shortages or delays in shipments.
○ Finance: Notifications for budget overruns or unexpected revenue drops.
○ Customer Experience: Warnings for spikes in negative reviews or customer
complaints.
● Value: Enables Nike to respond proactively to potential issues, minimizing disruptions,
and capitalizing on opportunities faster than competitors.

By integrating these components, Nike’s BI solution can align with their strategic objectives,
enabling efficient operations, superior customer experience, and a strong competitive edge.

2. BI Solution Value Generation:

The proposed BI solution for Nike aims to deliver operational, strategic, financial, and customer
experience enhancements through tailored dashboards and analytics tools. Below are the specific
functionalities and expected benefits:
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Operational Dashboard:

Features:

● Inventory Management:
○ Real-time stock levels monitoring
○ Automatic reorder point alerts
○ Stock movement visualization, including size and color availability
● Store Performance:
○ Hourly sales tracking
○ Staff performance metrics
○ Conversion rates
○ Customer traffic patterns

Value:
This unified dashboard provides store and regional managers with a comprehensive overview of
inventory and sales performance. Real-time insights help ensure optimal stock availability,
reduce stockouts, and improve customer satisfaction. Simultaneously, performance metrics
enable better staffing, highlight underperforming areas, and optimize sales during peak hours for
streamlined operations and increased efficiency.

Strategic Dashboard- Product Performance Dashboard:

Features:

● Product category analysis

● Margin analysis by product line
● Seasonal performance trends
● New release impact assessment

Value: Product development teams can identify top-performing products and leverage insights to
innovate and refine future offerings

Customer Sentiment Analysis

● Performs text mining and sentiment analysis on online shoe reviews.

● Clusters customers based on review patterns and sentiment scores
● Correlates product attributes to customer satisfaction and pain points
● Generates insights to guide product design, marketing, and customer experience
improvements
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Financial Performance Dashboard:

● Analyzes revenue, margins, and profitability by product, region, and channel

● Forecasts demand and optimizes pricing strategies based on elasticity analysis.
● Tracks marketing campaign effectiveness and return on investment.
● Identifies cost optimization opportunities in manufacturing, logistics, and operations

Forecasting for Demand and Sales Trends:

Features:

● Predicts future sales by region, channel, and product category using historical data and
market trends
● Identifies seasonal demand variations and recommends inventory adjustments
● Simulates the impact of external factors, such as economic shifts or supply chain
disruptions

Value:
Forecasting models empower Nike to make proactive decisions and stay ahead of demand
fluctuations. By aligning production and inventory levels with predicted demand, Nike can
minimize overstock and stockouts, improving profitability and customer satisfaction. Proactive
insights also help the company prepare for potential market disruptions.

Product Recommendation Engine

Using customer purchase data and browsing behavior, the BI solution builds a recommendation
engine to provide personalized product suggestions. For example, when customers browse
running shoes, the system can recommend matching athletic wear or accessories. This enhances
the online shopping experience, increases cross-selling opportunities, and drives additional
revenue.

In the next section, we will provide these 3 use cases as part of our BI solution:

1. Nike sales dashboard

2. Nike global manufacturing dashboard
3. Sentiment analysis on shoe reviews
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SECTION 4: Three Use Cases/Prototypes

1. Sales Dashboard

This Nike sales dashboard has been designed to provide comprehensive insights for different
stakeholders within the company.

Dashboard when filters are applied:

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The dashboard will be most helpful for the following individuals within Nike:

1. Sales Managers and Directors: They can use the dashboard to monitor sales
performance by different channels and identify top-performing retailers.
2. Product Managers: They can analyze product sales trends across different regions to
make strategic decisions on inventory and marketing efforts.
3. Regional Managers: These individuals can use the dashboard to understand the
performance of Nike's products in specific regions, helping them allocate resources and
optimize sales strategies.
4. Financial Analysts: They can review the operating margins and total sales figures to
evaluate profitability and cost management.
5. Marketing Managers: They can use the data on product sales by region to identify target
markets and tailor promotional activities.

a. Managerial Questions

1. What is the overall sales performance by retailers?

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Explanation: The "Retailer wise Total Sales" chart provides a comparison of total sales figures
across different retailers like Walmart, West, Kohl’s, Sports Direct, etc. This visualization allows
managers to quickly see which retailers contribute the most to Nike’s sales.

How it helps: By using this data, sales managers can identify high-performing retailers and
consider strategies to strengthen partnerships with them. If certain retailers are underperforming,
this insight can guide discussions on how to increase their sales through targeted promotions or
stock adjustments.

2. Which regions are driving the highest sales, and what is the breakdown by sales method
(in-store, online, outlet)?

Explanation: The "Region vs sales method" chart gives an overview of sales performance across
different regions, showing how each region performs in terms of in-store, online, and outlet
sales.

How it helps: Regional managers can identify regions with the highest sales volume and
evaluate the most successful sales methods in each. For instance, if online sales dominate in the
Northeast while in-store sales excel in the West, this could guide the allocation of marketing and
operational resources to maximize revenue.

3. How has the unit sales trend fluctuated over time, and what are the key patterns?

Explanation: The "Unit sold & Total Sales Trend" line chart illustrates monthly trends for unit
sales and total sales over time, highlighting peaks and troughs.

How it helps: Product managers and analysts can use this data to identify seasonal trends and the
impact of specific events or campaigns on sales. For example, if a notable spike in sales
corresponds with a major product launch, managers can plan future product releases accordingly.

4. What is the operating margin across different states, and which states are more profitable?

Explanation: The "Operating margin" map visually represents the operating margin by state,
with color coding indicating profitability levels. This map makes it easy to spot which states
have higher margins and which states may need further investigation or strategic adjustments.

How it helps: Financial analysts and regional managers can use this data to focus on states with
the highest margins to boost profit or address issues in states with lower margins. This can
inform decisions on resource allocation and promotional activities to optimize profitability.

5. What is the relationship between the price per unit and units sold, and how does this vary
across different products and regions?
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Explanation: The "Price vs units sold" scatter plot allows users to see the distribution of unit
sales across various price points. It shows how many units are sold at different price levels and
helps identify if higher or lower prices correlate with sales volume.

How it helps: Marketing and product managers can use this analysis to set optimal pricing
strategies that maximize sales while maintaining healthy profit margins. For example, if lower
prices lead to higher sales in certain regions, this may indicate a need for a different pricing
approach in that area.

2. Global Manufacturing Dashboard

This dashboard provides a comprehensive overview of manufacturing operations, workforce

composition, and product distribution, making it an essential tool for strategic planning,
operational management, and corporate responsibility initiatives.

On filters:
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This dashboard is most relevant for the following roles within a company:

1. Supply Chain Managers: They can use this dashboard to evaluate the geographical
distribution of manufacturing facilities and understand the diversity of products produced
in different regions.
2. Operations Directors: They can monitor the scale of manufacturing operations by
location and identify key production hubs.
3. HR and Workforce Managers: They can use data on worker demographics and
diversity to make informed decisions about hiring practices and workplace inclusivity.
4. Product Managers: They can analyze the regions where specific product types are
produced and assess manufacturing capacities.
5. Corporate Social Responsibility (CSR) Analysts: They can explore workforce diversity
data to ensure ethical and equitable employment practices across global facilities.

a. Managerial Questions

1. Where are Nike's manufacturing facilities located, and which product types are produced in
each region?

Explanation: The "Global Manufacturing" map provides a detailed view of manufacturing

locations down to the city level. The color coding on the map indicates different product types,
while the size and angle of marks represent the number of total workers.

How it helps: Supply chain managers and operations directors can identify key production hubs
and assess whether the distribution aligns with business strategies. If certain regions are
underrepresented in production despite strong market demand, this could lead to a review of
operational logistics or investment in additional facilities.

2. What is the workforce composition by region, specifically focusing on gender and migrant
workers?

Explanation: The "Female vs Migrant workers by region" chart provides insights into the
gender balance and the proportion of migrant workers across different regions.

How it helps: HR and workforce managers can use this information to ensure fair employment
practices and address potential disparities. This insight can support diversity and inclusion
strategies or inform policies that align with the company’s values on worker equity.
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3. What is the level of product manufacturing diversity across regions?

Explanation: The "Product types manufactured by region" map provides an overview of the
types of products produced in different areas. Regions are color-coded to show which types of
products are produced where.

How it helps: Product managers can analyze which products are being manufactured in certain
regions to make strategic decisions about sourcing and distribution. If certain product types are
produced only in specific areas, supply chain managers may need to assess transportation costs
and logistics for those regions.

4. What is the average worker diversity across different suppliers, and how does it compare?

Explanation: The "Critical suppliers worker diversity" bar chart shows the average percentage
of female workers and migrant workers within each supplier group.

How it helps: CSR analysts can evaluate how well suppliers align with company policies on
worker diversity and inclusion. This helps identify which suppliers may need to improve their
diversity practices to meet company standards or legal requirements.

5. How do different factory types (finished goods, finished materials) distribute across countries?

Explanation: The "Factory types by country" bar chart shows the count of finished goods and
finished material factories by country, providing insight into the distribution of different types of
factories worldwide.

How it helps: Operations directors and supply chain planners can use this data to understand
which countries are more focused on producing finished goods versus raw materials. This can
inform procurement strategies and potential investment opportunities.
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3. Sentiment Analysis

Histogram of Price by Sentiment Category:

● This is a histogram chart showing the price distribution for products with positive,
negative, and neutral sentiment.
● The price ranges differ across sentiment categories, with positive sentiment products
skewing towards higher prices.
● This can help Nike understand pricing strategies and identify opportunities to optimize
pricing based on customer sentiment.

Density of Rating by Sentiment Category:

● This is a density plot visualizing the distribution of ratings for the different sentiment
categories.
● The positive sentiment category has a higher density of ratings towards the upper end of
the scale, while negative sentiment has a higher density of lower ratings.
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● This provides insights into how customer sentiment relates to product ratings, which can
inform product development and marketing efforts.

Correlation Heatmap:

● This is a correlation heatmap visualizing the relationships between price, rating, and total
reviews.
● There is a strong positive correlation between rating and total reviews, a moderate
positive correlation between price and rating, and a weak negative correlation between
price and total reviews.
● This can help Nike understand how these key metrics interact, which can inform pricing
strategies, product recommendations, and marketing efforts.
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Scatterplot of Rating vs. Total Reviews:

● This is a scatterplot showing the relationship between product rating and the total number
of reviews.
● There is a positive correlation between rating and total reviews, with higher-rated
products generally having more reviews.
● This can help Nike identify high-performing products, understand customer engagement,
and potentially forecast review trends for new products.

Histogram of Number of Words per Product Description:

● This is a histogram displaying the distribution of word counts in product descriptions.

● The majority of product descriptions have a relatively low word count, with a small
number of longer descriptions.
● This can inform Nike's product description writing guidelines, ensuring optimal length
and content to engage customers.

Scatterplot of Average Word Length in Product Descriptions:

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● This is a scatterplot showing the average word length for product descriptions.
● The average word length is generally consistent across product descriptions, with some
outliers.
● This metric, combined with the word count distribution, can help Nike assess the
readability and clarity of their product descriptions.

Distribution of Ratings:

● This is a histogram showing the frequency of different rating values.

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● The ratings follow a relatively normal distribution, with the majority of products
receiving ratings between 4 and 5.
● This can help Nike identify the most common rating thresholds and focus on maintaining
high customer satisfaction.
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Price vs. Rating by Shoe Type:

● This is a scatterplot showing the relationship between price and rating, differentiated by
shoe type (Men, Women).
● There is a positive correlation between price and rating, with some differences in the
relationships for men's and women's shoe types.
● This can help Nike understand customer preferences and willingness to pay for specific
shoe categories, which can guide product development, pricing, and marketing decisions.

Price by Shoe Type:

● This is a box plot comparing the price distributions for different shoe types.
● The price distributions vary significantly between men's and women's shoe types, with
women's shoes generally having a higher price range.
● This can inform Nike's pricing strategies, product positioning, and potentially identify
opportunities for targeted pricing and marketing based on gender-specific customer
preferences.

Using Hugging Face transformers, we have summarised product reviews and product
descriptions by each sentiment category.

Few of the summaries we extracted:

Summary of negative reviews:

Defective shoe delivered. Confusing description and make. Good

quality but fitting is the issue. Nic Shoes are good for walking
short distance but definitely not for running. Ity high
prices...runs low size. Good product but poor services. Worth
for money. Skechers slipper is priced at around £40. The slipper
has been on sale for a month and is still going strong. The
Skechers logo printed on the heel area has started fading off.
Skechers are a great buy. Comfortable but old design consodering
high price. Not as per size chart and photo. Size issue Hush
puppies product. One of the best shoes for true sportsman.
Comfortable and light. Good quality shoe highly recommended.
Nice Pathetic do not buy!

Summary of positive reviews:

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Great in fitting. Comfortable and looks good. Just a bit bigger

than expected. Not good for value for money ... overprice and
overrated. Shoes good for narrow toes. 8/10 recommend. Elastic
material !!! Just buy. g order. order 1 large size than usual!
Good shoes !!! Elastic material. Satisfied with the experience
of wearing reebok shoe. Not suitable for running even. Not as
expected. Compromised with quality. Review after 30 days of use:
You get what you pay for. Buy one size low. Loved it but sadly
it was too large....I ord. Shoes cost 914 Rs. ered a wrong
size...|| Good. Inside sole is cheap & coming out I GOT A POWER.
Unmatched quality at this price.

Summary of product descriptions of neutral reviews:

Running inspired shoes make a strong visual statement. Eye

catching details stand out on the circular knit upper. A plush
midsole cushions every step. Ortholite anti bacterial comfort
and performance sockliner. The nike quest combines a technical
look with an ultra breathable upper of open hole mesh. The
tone laces weave in and out of flywire cables for stylish
support. tynor cast shoe rocker The cell queen is an all new
women s silhouette a reimagining of the silhouette. It ensures
high degree of hygiene and improves gait of the patient on foot
cast. The design ensures easy wearing and removal during the
cell running shoes from the back catalogues pulling design cues
from the cell alien and redesigning them for street fashion in a
feminine way. This iteration features a mesh upper with leather
overlays and metallic branding on the heel. The house of power
provides excellent durability and ensures sturdy grip. Designed
to keep feet relaxed with a soft and comfortable fit. responsive
cushioning and enhanced lightweight feel. fully padded upper
and foot bed with double layer of padding provides extreme
cushioning and comfort to make these slippers the ultimate
choice for your casual attire.

This information can be valuable for Nike in several ways:

Review Summaries:
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● Positive Sentiment: Identifies the key themes and attributes that customers praise, such as
comfort, design, or performance. This can help Nike reinforce and amplify these
strengths.
● Negative Sentiment: Highlights the critical issues that customers complain about, like
durability or fit problems. This allows Nike to prioritize product improvements and
address systematic pain points.
● Neutral Sentiment: Reveals the nuanced areas where products meet expectations
moderately. This can guide incremental enhancements to push neutral reviews towards
more positive sentiment.

Description Summaries:

Positive Sentiment: Surfaces the most compelling product features and marketing messages that
resonate with customers. This can inform Nike's copywriting and positioning for new or updated
products.

● Negative Sentiment: Uncovers product details or claims that fail to match customer
experiences. This can help Nike align their descriptions more closely with reality and set
appropriate expectations.
● Neutral Sentiment: Identifies areas where product descriptions could be improved to
better highlight the benefits and differentiate the products.

By leveraging these review and description summaries, Nike can:

● Refine product development priorities

● Enhance marketing and positioning
● Optimize product information and claims
● Deliver a more consistent, satisfying customer experience

The cluster charts below visualize how Nike shoe reviews are grouped based on semantic
similarities using UMAP dimensionality reduction. Each chart represents a different sentiment
category (positive, negative, neutral) and shows how reviews with similar themes cluster
together in a 2D space.

Positive Reviews Chart: This visualization reveals clusters of highly satisfied customer feedback.
Points close together indicate reviews with similar positive experiences - perhaps praising
comfort, design, or performance. Management can identify the most compelling positive
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attributes that drive customer satisfaction and potentially use these insights in marketing or
product development.

Negative Reviews Chart: This chart has clusters of critical feedback. Tightly grouped points
suggest common complaint themes - maybe about durability, sizing, or specific design flaws.
Nike's product team can pinpoint recurring issues, prioritize improvements, and address
systematic problems causing customer dissatisfaction.

Neutral Reviews Chart: These clusters represent mixed or moderate feedback. The spread and
grouping can reveal nuanced customer perspectives - areas where products marginally meet
expectations. This helps Nike understand where they're close to excellence but not quite
achieving it, providing strategic guidance for incremental improvements.

Positive Themes: {0: ['product', 'Good', 'Nice', 'Product',

'good'], 1: ['Verified', 'Purchase', 'Great', 'Product', 'as'],
2: ['Good', 'Nice', 'good', 'Awesome', 'Very'], 3: ['for',
'and', 'Good', 'Report', 'abuse'], 4: ['shoes', 'shoe', 'Good',
'for', 'Nice']}

Negative Themes: {0: ['size', 'Not', 'not', 'is', 'Size'], 1:

['Not', 'good', 'not', 'buy', 'of'], 2: ['product', 'Verified',
'Purchase', 'Fake', 'Product'], 3: ['quality', 'Poor',
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'Quality', 'Bad', 'product'], 4: ['shoes', 'shoe', 'of', 'is',

'the']}

Neutral Themes: {0: ['shoes', 'is', 'for', 'comfortable',

'but'], 1: ['for', 'not', 'is', 'Not', 'the'], 2: ['Verified',
'Purchase', 'Review', 'after', 'purchase'], 3: ['Good',
'product', 'Not', 'good', 'Ok'], 4: ['size', 'is', 'Size',
'but', 'small']}
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By transforming textual reviews into visual, clustered representations, Nike gains a sophisticated
understanding of customer sentiment beyond simple rating averages. The charts offer a nuanced,
data-driven perspective on customer experiences, enabling targeted product refinement and
strategic decision-making.
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SECTION 5: Implementation
Nike’s Business Intelligence (BI) solution offers a major opportunity to transform
decision-making and strengthen its position in the competitive sportswear industry. However,
implementing a BI system isn’t just about introducing new tools; it requires a well-planned
approach that takes into account organizational, technical, and ethical aspects.

1. Managerial Considerations:

a. Kotter's 8-Step Organizational Transformation Model

Kotter's 8-Step Organizational Transformation Model Implementing an enterprise-wide BI

initiative requires a structured approach to organizational change. Kotter's 8-step model provides
a proven framework for Nike to follow(1):

Step 1: Establish a Sense of Urgency

To start, Nike needs to emphasize why this change is necessary. Communicating the importance
of data-driven insights can help everyone understand the urgency of improving efficiency,
delivering better customer experiences, and staying ahead in a rapidly evolving market. The
message should highlight how BI can directly support Nike’s goals, like boosting sales,
improving product performance, and enhancing customer loyalty.

Step 2: Build a Guiding Coalition

Nike should assemble a strong team of stakeholders to lead this transformation. This group could
include executives, managers, IT experts, and data analysts from different departments. By
working together, this coalition can drive the project forward, allocate resources, and address
challenges. Their collaboration ensures that the BI initiative aligns with the needs of both
leadership and employees.

Step 3: Create a Compelling Vision

A clear vision for how BI will improve Nike’s operations and help achieve its goals is essential.
For example, BI can support decisions like optimizing inventory management, refining
marketing strategies, and identifying trends in customer behavior. The vision should be inspiring
but also realistic, showing how these improvements will directly impact Nike’s success.

Step 4: Communicate the Vision

The vision must be shared effectively with everyone in the organization. This could include
hosting presentations, creating internal newsletters, or organizing training sessions to explain
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how the BI solution works and what benefits it will bring. By using clear, accessible language,
Nike can ensure employees understand and support the initiative.

Step 5: Empower Broad-Based Action

Nike needs to make sure employees have the tools and support to apply BI insights in their work.
This could involve removing obstacles, like outdated systems or a lack of training, and ensuring
everyone has access to resources like dashboards and data analytics tools. By empowering
employees, Nike can create a culture that embraces data-driven decision-making.

Step 6: Generate Short-Term Wins

Focusing on small, measurable successes early in the process can build momentum and motivate
the team. For instance, Nike could track immediate improvements in inventory management or
customer segmentation using BI. Highlighting these wins can also build confidence in the system
and encourage further adoption.

Step 7: Consolidate Gains and Produce More Change

As BI tools become more widely used, Nike should continue to expand and refine their
capabilities. For example, feedback from employees can be used to improve dashboards or
introduce additional features. Regular updates ensure that the system evolves to meet Nike’s
changing needs while maintaining enthusiasm for the project.

Step 8: Anchor New Approaches in the Culture

Finally, for BI to have lasting value, it needs to become part of Nike’s everyday operations. This
means integrating BI into workflows, decision-making processes, and even performance
evaluations. Recognizing and rewarding teams that successfully use BI can help reinforce its
importance and ensure long-term success.

By following these steps, Nike can ensure its BI solution is implemented in a way that drives
meaningful change. The goal isn’t just to adopt new technology but to create a data-driven
culture that enables Nike to adapt, grow, and lead in the industry.

2. Technical Considerations for Nike’s Business Intelligence (BI) Solution:

To maximize the potential of a BI solution, Nike must focus on robust data integration,
governance, quality, metadata management, and scalability. These foundational elements ensure
actionable, reliable insights that foster trust and support decision-making.
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a. Data Integration and Governance

Nike operates within a complex ecosystem of internal and external data sources.
Integrating this data into a centralized warehouse or data lake ensures a unified "single source of
truth" (2). For example, consolidating sales, marketing, and supply chain data allows consistent
reporting across departments. A governance framework is essential for data stewardship. Clear
roles—such as assigning sales data accuracy to a dedicated team—help maintain accountability.
Governance policies should also address global privacy regulations, such as the GDPR and
CCPA, and data security, crucial for protecting Nike’s diverse customer base.

b. Data Quality Management

Reliable BI insights hinge on data quality. Poor data can erode trust and lead to missed
opportunities. To ensure high-quality data, Nike should identifies errors, such as duplicate
customer records, correct inaccuracies and fills missing values, follow a standard format
throughout different sections and consider using automated monitoring tools to flag issues, such
as a drop in data uploads, ensuring timely corrections

c. Metadata Management

Metadata provides context to make data understandable. A centralized repository can

clarify terms like “Shoe Type,” their sources, and update frequency. This fosters trust and
supports non-technical users, such as regional managers relying on dashboards for decisions.

d. Scalability and Performance

Nike’s global operations require a BI system that handles massive data volumes
efficiently. Key focus areas include Optimizing Query Performance, reducing latency and having
a Multi-Platform Support to provide seamless access to BI tools across devices, promoting
adoption and usability

By addressing these technical considerations, Nike ensures a scalable, trustworthy, and

high-performing BI solution that empowers data-driven decision-making across its global
operations.
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3. Ethical Considerations: Protecting Privacy, Mitigating Bias, and Managing Risks

Nike’s Business Intelligence (BI) implementation must go beyond technical aspects to address
critical ethical concerns. Handling data responsibly ensures privacy protection, mitigates bias,
and builds trust with customers and employees.

a. Privacy and Data Protection

With Nike collecting vast amounts of data, privacy is paramount. Compliance with laws like the
General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA)
is non-negotiable.

To prioritize privacy, Nike should:

● Seek Consent: Clearly inform users how their data will be used and offer opt-out options.
For instance, loyalty program members should know how their shopping habits are
analyzed (3).
● Minimize Data Collection: Only gather essential information. If a campaign doesn’t
require addresses, don’t collect them.
● Secure Data: Use encryption, firewalls, and regular audits to prevent breaches and
maintain trust.

Taking these measures protects sensitive information and bolsters customer confidence in Nike’s
commitment to privacy.

b. Mitigating Algorithmic Bias

BI systems can unintentionally amplify biases in data, leading to unfair outcomes, such as
excluding certain demographics from campaigns.

To prevent this, Nike should(4):

● Audit Algorithms: Regularly check for patterns of bias in predictive models.

● Diversify Data: Ensure training data represents Nike’s global customer base.
● Test Impacts: Review insights before decisions to confirm they are fair and inclusive.

Addressing bias ensures fairness and reflects Nike’s values of inclusivity.

c. Transparency and Accountability

BI systems influencing decisions must be transparent to avoid mistrust.

Nike can promote transparency by:

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● Explaining BI Processes: Let customers know how recommendations, such as product

suggestions, are generated.
● Including Human Oversight: Combine BI insights with human judgment, especially for
hiring or customer targeting decisions.
● Providing Feedback Channels: Allow employees and customers to flag issues through
anonymous forms (5).

Clear communication fosters trust and strengthens the ethical use of BI systems.

Ethical BI practices safeguard Nike’s reputation while ensuring privacy, fairness, and
transparency. By proactively addressing these issues, Nike can leverage BI to drive growth and
innovation while upholding its values and customer trust.
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SECTION 6: Summary and Conclusion

1. Summary

Overall, the Business Intelligence (BI) solution for Nike Inc. was created to address key
challenges that the organization has experienced such as incomplete data sources, restricted
real-time insights, and the absence of complex data analytics integration. After researching the
current BI landscape of Nike, as a team, we built a framework consisting of a robust ETL
process, a centralized data warehouse, and tailored dashboards for operational and strategic
decision-making.

In this project, the key deliverables explained in detail throughout this paper including
customer sentiment analysis, and different types of dashboards allow Nike to optimize multiple
facets of their company such as inventory, prices, and much more. These deliverables also permit
increased customer satisfaction and refined marketing strategies. All in all, this project aligns
with Nike’s goals to merge data driven processes across sales and other divisions, providing
unique insights into product performance, regional trends, and market demands.

2. Recommendations

● Expand Predictive Analytics

Nike could implement machine learning algorithms for personalized marketing and
product recommendations. As a result of this, seasonal patterns or market trends can be
identified more accurately.

● Enhance Customer-Centric Analytics

Nike could build advanced customer segmentation models integrating loyalty program
data with behavior insights.

● Employee Performance Analytics

Nike could develop dashboards monitoring employee performance and productivity in

sales environments. They could also implement training impact assessments to measure
how BI tools affect employee production.

● Cultural Transformation

Nike could conduct training sessions to improve BI adoption for employees. They could
also foster BI insights into daily work life to keep the flow of a data-driven
decision-making culture
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References
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[6][Link]
ails/2022/NIKE-Inc.-Reports-Fiscal-2022-Fourth-Quarter-and-Full-Year-Results/[Link]

[7] [Link]