Nike ERP Implementation Essay

2298 Words Dec 13th, 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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By not managing this factor, Nike took a big risk and increased the probabilities of failure.
● Nike’s business requirements were too complex and over detailed (like footwear’s forecasting for styles, colors, sizes). If Nike had appropriately used consultants and also had promoted User involvement and participation, those experts could had shared their know-how in the definition of business requirements more realistic and aligned with the real organizational needs.
The failures in the third stage of implementation (Realization) were:
● “i2’s software did not offer all the required functionalities”6. Usually, ERP systems do not provide all the functional requirements and i2 system is not an exception. That’s why, ERP vendors offer interfaces to communicate with third-party products. The problem with Nike implementation was that there was not an

Critical Success Factors is a concept presented in the report “Drawing Competitive Advantage through Successful ERP Implementation Projects”, by José Esteves - Instituto de Empresa (Spain) and Joan Pastor Universitat Internacional de Catalunya, Barcelona (Spain)
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ibid
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SCM and ERP Software Implementation at Nike - From failure to success
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http://www.cio.com/article/32335/Five_Lessons_Learned_from_Nike_s_i2_Debacle
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http://news.cnet.com/i2-Nike-fallout-a-cautionary-tale/2100-1017_3-253829.html
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SCM and ERP Software Implementation at Nike - From failure to success
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adequate infrastructure

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