Scm and Erp Software Implementation at Nike – from Failure to Success
Introduction: Nike was founded under the name Blue Ribbon Sports in 1964. 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.
After sluggish focus and growth in the 1980ies, Nike experienced strong growth in the 1990ies and cemented the position as global recognizable brand. The increased international focus created strains on the supply chain, which was consider inadequate to cater efficiently to the organization and the rapid changes consumer demands . As a consequence of the afore mentioned supply chain problem Nike faced inefficient inventory management, problems in flow of goods and poor demand forecasting capabilities. In addition Nike was facing though competition in Asia, which as a region performed worse than expected. Given this it is clear that both external, internal and situational factors were the catalysts behind the Organizational Buying Behavior (OBB) of Nike catalyzing the mammoth project of implementing global supply chain management (SCM) software and an integrated ERP system.
Question 1: What are the failure factors for the first NIKE-i2 ERP-SCM implementation?
Using conventional project management measurements it is clear the implementation of i2 was a colossal failure . I analyze the failure using a combination for factors from the OBB and analysis based on the five phase implementation framework.
Nike states a clear vision of what they want to achieve with the i2 implementation: “Achieving greater flexibility in planning execution and delivery processes…..looking for better forecasting and more profitable order fulfillment" . However, I believe Nike overall underestimated the SCM project as I see some indications that the main focus and resources were on the general ERP framework and implementation of the Single Instance Strategy (SIS). As a consequence the project management turned out to be
After sluggish focus and growth in the 1980ies, Nike experienced strong growth in the 1990ies and cemented the position as global recognizable brand. The increased international focus created strains on the supply chain, which was consider inadequate to cater efficiently to the organization and the rapid changes consumer demands . As a consequence of the afore mentioned supply chain problem Nike faced inefficient inventory management, problems in flow of goods and poor demand forecasting capabilities. In addition Nike was facing though competition in Asia, which as a region performed worse than expected. Given this it is clear that both external, internal and situational factors were the catalysts behind the Organizational Buying Behavior (OBB) of Nike catalyzing the mammoth project of implementing global supply chain management (SCM) software and an integrated ERP system.
Question 1: What are the failure factors for the first NIKE-i2 ERP-SCM implementation?
Using conventional project management measurements it is clear the implementation of i2 was a colossal failure . I analyze the failure using a combination for factors from the OBB and analysis based on the five phase implementation framework.
Nike states a clear vision of what they want to achieve with the i2 implementation: “Achieving greater flexibility in planning execution and delivery processes…..looking for better forecasting and more profitable order fulfillment" . However, I believe Nike overall underestimated the SCM project as I see some indications that the main focus and resources were on the general ERP framework and implementation of the Single Instance Strategy (SIS). As a consequence the project management turned out to be