Scm and Erp Software Implementation at Nike – from Failure to Success

2045 Words May 4th, 2013 9 Pages
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
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So due to urgency Nike selected to implement a highly customized solution discarding advice from the vendor, avoiding third party/external consultations, neglecting testing and proper training of end-users. As Steel says “Could we have taken more time with the roll-out? Properly. Could we have done a better job with software quality? Sure. Could the planners have been better prepared to use the system be it went live? You can never train enough!”

Question 2: How do you evaluate the role of i2 in this process?

In believe both companies are to be blamed for the failed implementation. Looking isolated at i2’s role, I believe both tactical and strategic mistakes were made.

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 management impact. If the client was not adequately knowledgeable about the product delivered i2 should have made a point of this in the RFP, by stating that a certain level of technical knowhow and expertise was expected and required from the client as well, to secure a smooth implementation. Such point – or clause – would have created the necessary awareness at Nike and would have secured the necessary focus from Nike before engaging in the implementation. We learn from the case that Nike when they started working together with i2 already had tried several other solutions without being successful,

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