The case traces the history of supply chain and enterprise resource planning erp software implementation at nike and presents the rationale behind their implementation. Come browse our large digital warehouse of free 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. 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. In the case of nike, the situation is even more challenging because of the worldwide erp deployment. Their implementations lead to sequence of failures. If two companies have the same erp software but the implementation cannot be the same. 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. Nike has wide range of sports equipment, running shoes, and jerseys and may other products as shown in figure 1. In order to improve its logistics and working schedule nike thought of implementation of supply chain and erp software.
Nike opted for an erp system implementation in order to streamline their business processes and have a centralised system. Four erp implementation case studies you can learn from. Enterprise resource planning implementation success and. 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 said, the software left it with more inventory in slowerselling shoes and shortages in its highdemand kicks. This case study highlights the failure and subsequent success of erp implementation in nikes supply chain project.
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. 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. Major erp failures to learn from for better implementation. 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. It details the circumstances that led to the supply chain management scm software implementation failure and also examines the steps taken by nike. Home tutorial enterprise resource planning implementation success and failure stories. Oct 25, 2017 scm and erp software implementation at nike. Since nike implemented an erp, crm, and scm system all at once, they experienced a multitude of benefits. Conclusion nike i2s erp implementation failed in all stages of implementation on several csf and also on the evaluation of the vendor. Supply chain management description of nike company nike inc. Scm and erp software implementation at nike 2828 words.
This report acknowledges the reasons for erp system implementation failure and problems in the supply chain of nike which led to this failure. Erp case study how erp software affects your business in. 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. Get info on our implementation process, case studies, and best practices to help you get you successful with coupa in record time. 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. Knight and his coach as blue ribbon sports rechristened as nike. The case gives a detailed account of the failure of supply and demand planning software implementation at nike, a leading footwear and apparel company. Table of contents table of contents 1 background and scope 2 erp implementation. 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. Nike nsc, scm and i2 i2s debacle reasons for i2s software failure sap afs erp implementation benefits conclusion introduction. Get the knowledge you need in order to pass your classes and more. 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 case study highlights the failure and subsequent success of erp implementation in nike s supply chain project. Real costs of choosing the wrong software vendor forbes.
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. Nike business goal was to create an efficient global supply. 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. May 08, 2017 however, with full preparation and thorough research to manage expectations, a successful erp implementation can be achieved. What are the failure factors for the first nike 12 erp scm implementation.
Nike enterprise resource planning business process. Nike has stayed with the i2 erp implementation for the seventh year deal, which is estimated to have reached actual cost of 400 millions. 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. South metro engaged erp advisors to guide them through the entire implementation process. 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. Dont repeat these 5 erp disasters clients first business.
Provides complete information about enterprise resource planning erp solutions. Using conventional project management measurements it is clear the. Because erp software is such a popular solution, there are thousands of businesses that could provide an example of a positive erp implementation. So they decided for demand and supply chain planning application software from i2 technology. This case study highlights the failure and subsequent success of erp implementation in nike. 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. Erp case study how erp software affects your business in 2020. The i2 software first phase implementation was direct strategy as the i2 trade matrix shows.
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. As a vendor i2 had a responsibility to work together with nike to create a common understanding of the capability of the software. 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. What are the failure factors for the first nikei2 erpscm implementation. 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. 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. Top 6 erp implementation failures and what they cost. For over a year, nike reeled as a result of this failure.
Examine the role of accurate demand forecasting for business. September 2014 implementation paper nike erp supplydemand study summary in 2001 nike inc. Scm and erp software implementation at nike 3064 words. This report also offers recommendations in order to help other organizations with similar nature to underst. Nike erp implementation essay sample sample essays. It details the circumstances that led to the scm software implementation. You read nike erp implementation in category nike nikes demand for high customization was one of the main failures in this project. With strong determination nike was able to emerge successful with sap implementation as a part of nike supply chain project. So they decided for demand and supply chain planning application software. From kicking off the project all the way through the golive, we facilitated.
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. 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. Calculating erp implementation costs of top erp systems. Nike went in for extensive customization of i2s standard supply chain software. These advantages were linked with the system of i2 management resulting in a better collaborative aspect with the factories of nike. Starinsky, instructorwinter quarter, 2004 erp implementation report of findings and recommendations cisco systems, inc. 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. To avoid erp customization, nike could have appropriately used. While they knew they needed to change software, the organization determined that they did not have available and qualified resources to drive the implementation process. Nike was founded under the name blue ribbon sports in 1964. Implement coupa success portal skip to main content. The implementation of erp, crm and scm systems at the same time and all together made nike to experience benefits in multitude. 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. 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.
Nike erp sap implementation read a free critical analysis. Nike finals erp implementation supply chain management. With strong determination nike was able to emerge successful with sap implementation as a part of nike. Erp enterprise resource planning erp entitles a companys information system which. The biggest erp failures of all time third stage consulting. 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 from failure to. 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. The complexity of erp systems together with demanding business environment, represent big challenges for companies when implementing an erp. Nike corporation used the i2 system as a legacy system rather than to make it as a part of sap erp project. Scm and erp software implementation at nike from failure.
The issue with the system was that its demand planning module overpredicted the. Supply chain success for nike was established by getting. 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. The company operates in more than140 countries and employs over 62,600 people. 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. Doing those things at a small company is hard, but doing it at a global enterprise like nike ups the extremely high chances of.
Scm and erp software implementation at nike from failure to success. Nike scm and erp software implementation at nike from. The following factors contributed to the failure if the erp scm implementation for nike. Nike finals erp implementation free download as powerpoint presentation.
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