Nike Case Analysis

794 Words Feb 12th, 2010 4 Pages

Q: What characteristics about Nike contributed to their troubles with i2 becoming nothing more than a speed bump?

1. i2’s predictive demand application and its supply chain planner used different business rules and stored data in different formats, making it difficult to integrate the two applications. The i2 software needed to be so heavily customized to operate with Nike’s legacy systems that it took as much as a minute for a single entry to be recorded by the software. And, overwhelmed by the tens of millions of product numbers Nike used, the system frequently crashed..

2. Nike did not hire a third-party integrator although the company was replacing an already troublesome older application
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And Nike should have had better communications with the i2 as about their process and requirements

Although Nike could have been more patient as enterprise software implementations cant be rushed through and implemented i2 Project as part of its SAP ERP project, I feel Tactical mistakes more aptly describe the source of their problems.

Getting software up and running is not a goal; remaking the business is. Nike wanted to take three months out of its sneaker manufacturing cycle. The clarity of its business case sustained the project when things went south in 2000.

I2was too slow, didn’t integrate well, had some bugs, and Nike’s planners were inadequately trained in how to use the system before it went live.

Had Nike fixed its tactical problems sooner, its strategic mistakes could have been ignored and the software could have even favourably worked for the company as well. Nike lulled itself into a false sense of security about the i2 installation because, by comparison with the SAP plan, it was a much smaller project.

Q: Why is converting the supply chain from make-to-sell to make-to-order such an important business advantage? Discuss some of the benefits associated with such an objective? Explain your position

The make-to-order (MTO) system has received a great deal of attention in recent years because of the success of