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ERP Case Study - Nike (FAILURE)

Nike is a major manufacturer and retailer of athletic shoes and apparel. In 2000, Nike decided to implement a new supply chain management system with demand forecasting capabilities to quickly adapt to market needs. At this time, Nike was also in the process of implementing SAP as its new ERP system. However, Nike's ERP implementation failed due to issues integrating the new systems and a lack of user involvement. This ERP failure disrupted Nike's supply chain and ability to fill orders. Nike had to work to recover from the problems caused by the failed ERP system implementation.

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677 views

ERP Case Study - Nike (FAILURE)

Nike is a major manufacturer and retailer of athletic shoes and apparel. In 2000, Nike decided to implement a new supply chain management system with demand forecasting capabilities to quickly adapt to market needs. At this time, Nike was also in the process of implementing SAP as its new ERP system. However, Nike's ERP implementation failed due to issues integrating the new systems and a lack of user involvement. This ERP failure disrupted Nike's supply chain and ability to fill orders. Nike had to work to recover from the problems caused by the failed ERP system implementation.

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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Case study of Nike’s ERP implementation Failure

Profile

Nike is an American multinational corporation that is engaged in the design, development,


manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories,
and services. The company is headquartered near Beaverton, Oregon, in the Portland
metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a major
manufacturer of sports equipment​. ​In addition to manufacturing sportswear and equipment, the
company operates retail stores under the Niketown name. Nike sponsors many high-profile
athletes and sports teams around the world, with the highly recognized trademarks of "Just Do It"
and the Swoosh(tick) logo.

Situation

ERP systems experienced rapid growth in the 1990s. Because of the year 2000 problem and the
introduction of the euro that disrupted legacy systems, many companies took the opportunity to
replace their old systems with ERP. "ERP II" was coined in 2000 in an article by Gartner
Publications entitled ERP Is Dead—Long Live ERP II. It describes web–based software that
provides real–time access to ERP systems to employees and partners (such as suppliers and
customers). The ERP II role expands traditional ERP resource optimization and transaction
processing. Rather than just manage buying, selling, etc.—ERP II leverages information in the
resources under its management to help the enterprise collaborate with other enterprises.
In the year 2000, however Nike took the decision of implementing a unique management of
supply chain with the ability to forecast demand in the market so that the company can quickly
meet with these requirements. This was also the time when the organization also was in the SAP

References

https://myassignmenthelp.com/nike-case-study-analysis-erp-system-failure
https://www.slideshare.net/UtsavDesai12/nike-case-study-erp-failure-mis
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understand/
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empirical study of Enterprise Systems implementation, Computer in Human Behavior, Vol. 41,
pp. 731-745
Koch, C., 2004, Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain
Disaster.
Kalin, S., 2002, The ROI of Application Integration.
Laudon, J., Laudon, K., 2010, A New Supply Chain Project Has Nike Running for Its Life. In
Essentials of Management Information Systems: Managing the digital firm: sixth edition Pearson
Education, ch.1- Additional Cases, Retrieved November 15, 2012.
McLaren, T., Head, M., Yuan, Y., 2005, Costs and benefits in Supply Chain Collaboration.
Laudon, KC., 2007, Management Information Systems: Managing the Digital Firm,10th edition,
Pearson-prentice Hall.
McVey, S., 2001, Nike Blames i2 For Finish In Losers Bracket. Technology Evaluation Centers,
Retrieved November 15, 2012.
Nike biz, 2012, Retrieved November 15, 2012.
Nike Inc, 2012, Retrieved November 15, 2012.
Nah, F.F., and Lau, J. L., Kuang, J., 2011, Critical factors of successful implementation of
enterprise systems, Business Process Management Journal, Vol. 7 Issue 3, pp 285-297.

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