Enterprise Resource Planning
MITS 6004: Enterprise Resource Planning
Assignment 1
Case Study and Presentation
March 2020
MITS6004 Assignment 1 and 2
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Objective(s)
This assessment item relates to the unit learning outcomes as in the unit descriptor. This
assessment is designed to analyze business/ enterprise activities and to identify problems,
weaknesses, strengths and threats and entities interacting with the enterprise. This assessment
improve presentation skills and give students experience to apply knowledge to identify, make
recommendations and devise solutions for an ERP implementation topic and writing a report
relevant to the Unit of Study subject matter.
INSTRUCTIONS
Assignment 1 Case Study and Presentation – 10% Due Session 5
Case Study: Nike ERP Implementation
BACKGROUND:
Nike was founded in 1964 by Bill Bowerman and Phil Knight in Beaverton, Oregon. It
began as Blue-Ribbon Sports (BRS). In 1972, BRS introduced a new brand of athletic
footwear called Nike, named for the Greek winged goddess of victory. The company
employs 26,000 staff around the world with revenues in fiscal year 2005 of $13.7 billion.
It has facilities in Oregon, Tennessee, North Carolina, and the Netherlands with more than
200 factory stores, a dozen Nike women stores, and more than 100 sales and
administrative offices. Its subsidiaries include Cole Haan Holdings, Inc., Bauer Nike
Hockey, Hurley
International LLC, Nike IHM, Inc., Converse Inc., and Execter Brands Group LLC. As of May
31, 2004, manufacturing plants included Nike brand, with 137 factories in the Americas
(including the United States), 104 in EMEA, 252 in North Asia, and 238 in South Asia,
providing more than 650,000 jobs to local communities.
OBJECTIVE
Nike grew from a sneaker manufacturer in the early 1970s to a global company selling a
large number of products throughout the world. Nikes sneaker supply chain was
historically highly centralized. The product designs, factory contracts, and delivery are
managed through the headquarters in Beaverton, Oregon. By 1998, there were 27
different and highly customized order management systems that did not talk well to the
home office in Beaverton, Oregon. At that time Nike decided to purchase and implement
a single- instance ERP system along with supply chain and customer relationship
management systems to control the nine-month manufacturing cycle better, with the
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goal being to cut it down to six months.
PLAN
The company developed a business plan to implement the systems over a six-year period,
with multiple ERP rollouts over that time. The plan called for the implementation of the
demand planning system first while working through the ERP system and supply chain
implementation.
IMPLEMENTATION
The demand planning system was implemented first for reasons that made a lot of sense.
The total number of users was small in comparison to the ERP system and was thought to
be relatively easy to implement; however, this turned out not to be the case. When the
system went live, there were a number of problems related to the software, response
time, and data. In addition, training was not adequately addressed, causing the relatively
small number of end users to use the system ineffectively. The single-instance ERP system
and supply chain implementation plan differed from the demand planning system and
called instead for a phased rollout over a number of years. The ERP system
implementation went much more smoothly. Nike started in 2000 with the
implementation of the Canadian region, a relatively small one, and ended with the Asia-
Pacific and Latin America regions in 2006, with the United States and Europe, Middle East,
and Africa in 2002. This included implementing a single instance of the system, with the
exception of Asia-Pacific, and training more than 6,300 users. The total cost of the project
as of 2006 was at $500 millionabout $100 million more than the original project budget.
CONCLUSION: WHAT WAS LEARNED?
The demand planning system interfacing to legacy data from a large number of systems
that already did not talk well with each other was a root cause for misinformation and
resulted in inadequate supply planning.
The demand planning system was complex, and end users were not trained well enough
to use the system effectively.
System testing was not well planned and real enough to find issues with legacy system
interfaces.
The overall business plan for all the systems and reasons for taking on such a highly
complex implementation were well understood throughout the company. Thus, Nike had
exceptional buy-in for the project and was able to make adjustment in its demand
planning system and continue with the implementation. The goal was to ensure business
goals were achieved through the implementation, and not so much to get the systems up
and running.
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Nike exhibited patience in the implementation and learned from mistakes made early in
the process.
Training was substantially increased for the ERP implementation. Customer service
representatives received 140180 hours of training from Nike, and users were locked out
of the system until they completed the full training course.
Business process reengineering was used effectively to clarify performance-based goals
for the implementation.
CASE QUESTIONS
1. How could Organizational Project Management (OPM3) have helped to identify the
problems with implementing the demand planning system?
2. What were the three primary reasons Nike was successful with the ongoing ERP
implementation?
3. Why was a phased rollout the correct decision for Nike?
Sources: Koch, C. (December 7, 2004). Nike Rebounds. CIO Australias magazine for executives.
Submission Guidelines
All submissions are to be submitted through turn-it-in. Drop-boxes linked to turn-it-in will be set up in the
Unit of Study Moodle account. Assignments not submitted through these drop-boxes will not be
considered. Your report should be limited to approx. 1500 words.
Submissions must be made by the due date and time (which will be in the session detailed above) and
determined by your Unit coordinator. Submissions made after the due date and time will be penalized at
the rate of 10% per day (including weekend days).
The turn-it-in similarity score will be used in determining the level if any of plagiarism. Turn-it-in will check
conference web-sites, Journal articles, the Web and your own class member submissions for plagiarism.
You can see your turn-it-in similarity score when you submit your assignment to the appropriate drop-
box. If this is a concern you will have a chance to change your MITS6004 Case Study and Presentation – 1
Copyright©2015-2018VIT,AllRightsReserved. assignment and re-submit. However, re-submission is only
allowed prior to the submission due date and time. After the due date and time have elapsed you cannot
make re-submissions and you will have to live with the similarity score as there will be no chance for
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