May 08, 2017 however, with full preparation and thorough research to manage expectations, a successful erp implementation can be achieved. These advantages were linked with the system of i2 management resulting in a better collaborative aspect with the factories of nike in the far eastern area. Eventually it was decided that these changes would take place in the form of the implementation of a new supply chain and enterprise resource planning erp software system. It was and still is, he claims, part of a wider strategy to integrate erp, supply chain planning and crm software onto a single platform shared by nike operations in north america, as well as. Starinsky, instructorwinter quarter, 2004 erp implementation report of findings and recommendations cisco systems, inc. Though public bickering between software suppliers and their customers is nothing new, a spat between i2 technologies and nike highlights an ugly trend in the. The case traces the history of supply chain and enterprise resource planning erp software implementation at nike and presents the rationale behind their implementation. Scm and erp software implementation at nike from failure. The supply chain software implementation was the first part of a huge project to install an integrated erp system from sap, and customer relationship management crm software from siebel systems.
Get info on our implementation process, case studies, and best practices to help you get you successful with coupa in record time. This case study highlights the failure and subsequent success of erp implementation in nike s supply chain project. Scm and erp software implementation at nike 3064 words. Implement coupa success portal skip to main content. Mar, 2020 there are a lot of ways for erp systems to fail. Nike finals erp implementation supply chain management. This time nike decided to implement specifically developed software for apparel and for footwear industry the software called afs which was a variant of the sap r3. The complexity of erp systems together with demanding business environment, represent big challenges for companies when implementing an erp. Below, we outline the 3 biggest failure cases of erp implementation and offer tips on what you can do to avoid the same mistakes. You read nike erp implementation in category nike nikes demand for high customization was one of the main failures in this project. The issue with the system was that its demand planning module overpredicted the. Provides complete information about enterprise resource planning erp solutions. These advantages were linked with the system of i2 management resulting in a better collaborative aspect with the factories of nike. Dont repeat these 5 erp disasters clients first business.
The company had to invest another 5 years and millions of dollars more to overcome the problem and to get the software. Hershey zeroed down saps r3 erp software, manugistics scm software. Erp enterprise resource planning erp entitles a companys information system which can bring more closely the companys departments and functions like human resources, finance and inventories. Nike was quick to recover and convert to a success story we wanted to stress the same thing. All erp implementations have risks associated that can lead to failure situations. Supply chain success for nike was established by getting. Nike opted for an erp system implementation in order to streamline their business processes and have a centralised system.
This case study highlights the failure and subsequent success of erp implementation in nikes supply chain project. Real costs of choosing the wrong software vendor forbes. According to data from a 2019 panorama consulting solutions report, 88% of companies considered their erp implementations a success, while 12% considered theirs a failure. Since nike implemented an erp, crm, and scm system all at once, they experienced a multitude of benefits. Nike has wide range of sports equipment, running shoes, and jerseys and may other products as shown in figure 1. Nike scm and erp software implementation at nike from. You read scm and erp software implementation at nike from failure to success in category papers looking isolated at i2s role, i believe both tactical and strategic mistakes were made. So they decided for demand and supply chain planning application software. Because erp software is such a popular solution, there are thousands of businesses that could provide an example of a positive erp implementation. There are many erp software in market for smes like sage erp, netsuite er, e2 shop system, sap business one erp solution, vienna advantage etc. Scm and erp software implementation at nike from failure to success. To avoid erp customization, nike could have appropriately used.
The failures were related mainly to project management and organizational factors proving that success is much related to people and process and not just technology. What are the failure factors for the first nike 12 erp scm implementation. Get the knowledge you need in order to pass your classes and more. For over a year, nike reeled as a result of this failure. From failure to success examine the reasons for scm software implementation failures the case gives a detailed account of the failure of supply and demand planning software implementation at nike. As a vendor i2 had a responsibility to work together with nike to create a common understanding of the capability of the software. This report acknowledges the reasons for erp system implementation failure and problems in the supply chain of nike which led to this failure. Nike erp sap implementation read a free critical analysis. It details the circumstances that led to the scm software implementation.
Scm and erp software implementation at nike from failure to. From kicking off the project all the way through the golive, we facilitated. Mar 15, 2016 though envisioned as a 23 year implementation, it took nike 6 years, and an upwards of 500 million dollars to properly implement the supply chain management system koch, 2004. Dec 06, 20 nike business goal was to create an efficient global supply chain by reducing inventory and manufacturing cycle, and this was a large and complex goal, thus, the software implementation could not be taken as simple and easy as nikes executives toke it, failing to give sustained management support to the project. Due to result of the unproper handling of the erp implementation in company, nike had to take a loss of 100 million dollars and additional decrease of the 20% market share.
Four erp implementation case studies you can learn from 2nd august 2017 because of high degrees of complexity associated with largescale erp installations, over time the proportion of successful. In order to improve its logistics and working schedule nike thought of implementation of supply chain and erp software. Supply chain management description of nike company nike inc. Examine the role of accurate demand forecasting for business. The biggest erp failures of all time third stage consulting. With strong determination nike was able to emerge successful with sap implementation as a part of nike. Oct 25, 2017 scm and erp software implementation at nike. The year 2000 was a terrible one for nike, and all of their woes were tied to the failed rollout of the i2 erp software. The case gives a detailed account of the failure of supply and demand planning software implementation at nike, a leading footwear and apparel company. South metro engaged erp advisors to guide them through the entire implementation process. Nike business goal was to create an efficient global supply. Enterprise application implementation at nike company solution sap erp i2 planning siebel crm peoplesoft human capital managementhr systems ptc products data management, product life cycle management see beyond application integration nike supply chain initiative. From failure to success examine the reasons for scm software implementation failures the case gives a detailed account of the failure of supply and demand planning software implementation at nike, a leading footwear and apparel company.
It details the circumstances that led to the supply chain management scm software implementation failure and also examines the steps taken by nike to fix the problem. Nike said, the software left it with more inventory in slowerselling shoes and shortages in its highdemand kicks. So they decided for demand and supply chain planning application software from i2 technology. Nike erp implementation essay sample sample essays. Nike made a bold early bet on the risky and difficult strategy of creating a single, giant, integrated database within its sap erp system for every employee in north america and emea. Calculating erp implementation costs of top erp systems. Nike business goal was to create an efficient global supply chain by reducing inventory and manufacturing cycle, and this was a large and complex goal, thus, the software implementation could not be taken as simple and easy as nike. The case traces the history of supply chain and erp software implementation at nike and presents the rationale behind their implementation. The company disaster was greatly attributed to faultiness of the forecasting software causing massive loses to the nike corporation of 100 millions in sales. It details the circumstances that led to the supply chain management scm software implementation failure and also examines the steps taken by nike. Erp case study how erp software affects your business in. Table of contents table of contents 1 background and scope 2 erp implementation.
Major erp failures to learn from for better implementation. Nike was founded under the name blue ribbon sports in 1964. This paper will examine the supply chain problems nike was trying to fix with the new system, the problems that arose from the implementation of the new system, and how. Nike has stayed with the i2 erp implementation for the seventh year deal, which is estimated to have reached actual cost of 400 millions. Using conventional project management measurements it is clear the. September 2014 implementation paper nike erp supplydemand study summary in 2001 nike inc. The i2 software first phase implementation was direct strategy as the i2 trade matrix shows. The company operates in more than140 countries and employs over 62,600 people. Scm and erp software implementation at nike 2828 words. The following factors contributed to the failure if the erp scm implementation for nike. As a vendor i2 had a responsibility to work together with nike to create a common understanding of the capability of the software and the business. For one, many businesses rush into rolling out new functions without careful consideration of details or knowing beforehand the common reasons for erp implementation failure. This report also offers recommendations in order to help other organizations with similar nature to underst.
If two companies have the same erp software but the implementation cannot be the same. Scm and erp software implementation at nike from failure to success introduction nike is the biggest us sportswear suppliers, clothing and footwear, located in beaverton, oregon. Their implementations lead to sequence of failures. Nike finals erp implementation free download as powerpoint presentation. Erp enterprise resource planning erp entitles a companys information system which. Knight and his coach as blue ribbon sports rechristened as nike. With strong determination nike was able to emerge successful with sap implementation as a part of nike supply chain project. Four erp implementation case studies you can learn from. Doing those things at a small company is hard, but doing it at a global enterprise like nike ups the extremely high chances of. Erp software, worldwide, 2016 report from gartner, its noted that using open api standards could lead to inconsistencies in integrations unless strong data management and a strict governance policy is in place. What are the failure factors for the first nikei2 erpscm implementation. Nike enterprise resource planning business process. The implementation of erp, crm and scm systems at the same time and all together made nike to experience benefits in multitude.
Erp case study how erp software affects your business in 2020. Conclusion nike i2s erp implementation failed in all stages of implementation on several csf and also on the evaluation of the vendor. Enterprise resource planning implementation success and. Come browse our large digital warehouse of free sample essays.
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