Erp is used by a company to store and manage data from all stages of the business including. Nov 28, 2016 already, many software as a service saas providers offer integrated solutions that include wms, crm and erp interfaces with various optional apis. This case study highlights the failure and subsequent success of erp implementation in nike. Nike went in for extensive customization of i2s standard supply chain software, as it felt that the standard software.
Four erp implementation case studies you can learn from. Real costs of choosing the wrong software vendor forbes. If two companies have the same erp software but the implementation cannot be the same. Nike went in for extensive customization of i2s standard supply chain software. As in the case of fedexs plane workers, the realtime data collection capabilities can help reduce risk and save time. It details the circumstances that led to the scm software implementation failure and also examines the. Scm and erp software implementation at nike from failure to. It details the circumstances that led to the supply chain management scm software implementation failure and also examines the steps taken by nike. Enterprise resource planning erp is business process management software that allows a company to use a system of integrated applications to manage the business and automate back office functions related to services, technologies and human resources. 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 acknowledges the reasons for erp system implementation failure and problems in the supply chain of nike which led to this failure. Since nike implemented an erp, crm, and scm system all at once, they experienced a multitude of benefits.
Nike enterprise resource planning business process. Table of contents table of contents 1 background and scope 2 erp implementation. Scm and erp software implementation at nike from failure. 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. 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. This assignment gives an indepth understanding of various phases involved in an erp system implementation and studies various challenges faced by nike inc when they decided to implement an erp. Scm and erp software implementation at nike from failure to success free download as word doc.
The case gives a detailed account of the failure of supply and demand planning software implementation at nike, a leading footwear and apparel company. This case study highlights the failure and subsequent success of erp implementation in nike s supply chain project. Nike went in for extensive customization of i2s standard supply chain software, as it felt that the standard software was not offering the required functionalities. Nike nsc, scm and i2 i2s debacle reasons for i2s software failure sap afs erp implementation benefits conclusion introduction. Their implementations lead to sequence of failures. Come browse our large digital warehouse of free sample essays. We cannot say that any erp implementation is ever perfect. Supply chain success for nike was established by getting. 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.
Doing those things at a small company is hard, but doing it at a global enterprise like nike ups the extremely high chances of. Supply chain management description of nike company nike inc. Get a 100% unique essay on scm and erp software implementation at nike from failure to success. Scm and erp software implementation at nike a from failure to success introduction. Nike erp sap implementation read a free critical analysis.
What are the failure factors for the first nikei2 erpscm implementation. Hershey zeroed down saps r3 erp software, manugistics scm software. The case traces the history of supply chain and enterprise resource planning erp software implementation a t nike and presents the rationale behind their implementation. The case traces the history of supply chain and erp software implementation at nike and presents the rationale behind their implementation. Introduction erp enterprise resource planning is business process management software of. Nike erp implementation research papers safakarakas. Nike erp implementation case analysis presentation software. The case traces the history of supply chain and erp software implementation a t nike and presents the rationale behind their implementation. September 2014 implementation paper nike erp supplydemand study summary in 2001 nike inc. Scm and erp software implementation at nike a from failure. Nike was founded in 1964 by bill bowerman and phil knight in beaverton, oregon. Oct 25, 2017 scm and erp software implementation at nike.
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. Starinsky, instructorwinter quarter, 2004 erp implementation report of findings and recommendations cisco systems, inc. 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. What are the failure factors for the first nike 12 erp scm implementation. Nike erp implementation essay sample sample essays. Below, we outline the 3 biggest failure cases of erp implementation and offer tips on what you can do to avoid the same mistakes. Located in irwin, pennsylvania, precision defense services pds is a leading manufacturer of high quality precision machined parts for both the military and commercial marketplaces. The company had to invest another 5 years and an investment of 400 million dollars to overcome the problem and to work properly for the software. In the case of nike, the situation is even more challenging because of the worldwide erp deployment. Nike said that it was because of the failure of supply chain software produced by i2. 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.
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 increased international focus created strains on the supply chain. The biggest erp failures of all time third stage consulting. The company had to invest another 5 years and millions of dollars more to overcome the problem and to get the software. In 1972 the first pair of sports shoes was sold and experienced enormous growth and achieved a 50% market share within the sports shoe market in the us only eight years later.
This assignment gives an indepth understanding of various phases involved in an erp system implementation and studies various challenges faced by nike inc when they decided to implement an erp system in year 2000. The company developed a business plan to implement the systems over a 6year period, with multiple erp rollouts over that time. 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. Provides complete information about enterprise resource planning erp solutions.
Nike was founded under the name blue ribbon sports in 1964. In the case of nike, the situation is even more challenging because of the worldwide erp. The company disaster was greatly attributed to faultiness of the forecasting software causing massive loses to the nike corporation of 100 millions in sales. Scm and erp software implementation at nike 3064 words. Nike has stayed with the i2 erp implementation for the seventh year deal, which is estimated to have reached actual cost of 400 millions. So they decided for demand and supply chain planning application software. So they decided for demand and supply chain planning application software from i2. The issue with the system was that its demand planning module overpredicted the amount of air garnett sneakers needed and underestimated the amount of air jordans that customers would want. Get the knowledge you need in order to pass your classes and more. Using conventional project management measurements it is clear the. Nike finals erp implementation supply chain management. Dont repeat these 5 erp disasters clients first business. Nike finals erp implementation free download as powerpoint presentation. Tile plan called for the implementation of the demand planning system first while working through the erp system and supply chain implementation.
Enterprise resource planning implementation success and. How fedex saved millions by integrating its systems supply. However, with full preparation and thorough research to manage expectations, a successful erp implementation can be achieved. 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. The company operates in more than140 countries and employs over 62,600 people. All erp implementations have risks associated that can lead to failure situations. A quality enterprise resource planning solution can offer a manufacturer a powerful, endtoend valuechain solution to manage key infrastructure and support its manufacturing and business needs. Nike was quick to recover and convert to a success story we wanted to stress the same thing. What were the three primary reasons nike was successful. Erp case study how erp software affects your business in 2020.
The complexity of erp systems together with demanding business environment, represent big challenges for companies when implementing an erp. The case traces the history of supply chain and enterprise resource planning erp software implementation at nike and presents the rationale behind their implementation. This report also offers recommendations in order to help other organizations with similar nature to underst. Scm and erp software implementation at nike from failure to success. Home tutorial enterprise resource planning implementation success and failure stories. Nike said, the software left it with more inventory in slowerselling shoes and shortages in its highdemand kicks. It details the circumstances that led to the scm software implementation. 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. The organization was able to feel this from the perspective of a third party taking over the point of view of the integrator that helped the company also in. If two companies have the same erp software but the implementation cannot be the same because every company has its own style of implementation.
The case gives a detailed account of the failure of supply and demand planning software implementation a t nike, a leading footwear and apparel company. At last nike got success in implementing erp and it became the desired. Top 6 erp implementation failures and what they cost. May 08, 2017 however, with full preparation and thorough research to manage expectations, a successful erp implementation can be achieved.
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. 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. With strong determination nike was able to emerge successful with sap implementation as a part of nike supply chain project. 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. Examine the role of accurate demand forecasting for business. Scm and erp software implementation a t nike from failure to success introduction nike is the biggest us sportswear suppliers, clothing and footwear, located in beaverton, oregon. In 1972, brs introduced a new brand of athletic footwear called nike. So they decided for demand and supply chain planning application software from i2 technology. Mar, 2020 there are a lot of ways for erp systems to fail. With strong determination nike was able to emerge successful with sap implementation as a part of nike. Nike business goal was to create an efficient global supply.
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