Nike ERP Implementation Essay

2310 Words Dec 19th, 2013 10 Pages
1. What are the failure factors for the first NIKE-i2 ERP-SCM implementation?
All ERP implementations have risks associated that can lead to failure situations. The complexity of ERP systems together with demanding business environment, represent big challenges for companies when implementing an ERP.
In the case of Nike, the situation is even more challenging because of the worldwide ERP deployment, and the large and complex scope of the project. Inevitably, and like all ERP implementations, Nike-i2’s project faced complications at the different stages of the implementation cycle but those complications could have been minimized if the so called “Critical Success Factors” (CSF)1 had been planned and managed properly.
Using the 5
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Nike’s demand for high customization was one of the main failures in this project. To Avoid ERP customization, Nike could have appropriately used consultants to reduce the need of very detail level forecasting (style, color, size). Consultants could have brought also an experienced business vision, focus on
ERP processes really needed to run Nike’s business, alignment between Nike’s requirements and ERP functionalities, and ERP best practices (including i2’s recommendations and methodology)

Forth stage (final preparation) is critically important to ensure the quality of the results, Nike’s failures were:
● To ensure that the ERP accomplishes the business requirements defined at the beginning of the project a Formalized testing plan is mandatory. In theory, this test plan should cover functional tests, data flow between systems, user testing and performance tests. Nike did not perform any of those tests activities and the catastrophic results were: “System could not process large amounts of info. It was very slow and crashed”, “System could not handle thousands of variables to generate forecasts”, “Demand application and its planner did not integrate easily because different data formats.”, “System sent inaccurate orders to manufactures and errors were not detected”8
● In this phase, User involvement and participation, Adequate training program and Preventive troubleshooting are critical to guarantee

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