ERP Failure in Nike Inc.

This research paper discusses the implementation failure of ERP and supply chain management system in Nike Inc., highlighting the company's overview, analysis of important issues, and recommendations. The paper reveals that the company implemented planning software instance I2, which led to main problems due to inadequate evolution and rushed implementation prior to SAP package readiness.

NIKE INC.
Research paper

Table of Contents
Introduction......................................................................................................................................2
Company overview......................................................................................................................2
Analysis...........................................................................................................................................3
Important issues...........................................................................................................................3
Prioritizing issues.........................................................................................................................4
Recommendations............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
In this present paper, we will discuss the implementation failure of ERP and supply chain
management system in Nike Inc. The paper also discusses the company overview, analysis of
important issues, and recommendations on the basis of analysis. The ERP system software is a
backbone of an information system which is used for every business in order to enhance the
supply chain and value of the business process within the specific of time. It enables to provide
in the business system in order to form individual device system which aims to serve needs of
the organization. It enables to exchange information and facilitates communication among
different organizations in order to develop effective decisions within the specific period of time.
The implementation of enterprise resource planning system leads to link various business areas
which includes human resources, orders managements, external suppliers distribution,
manufacturing process, supply chain management into the systematic integrated which can be
visible and shared within the organization. The failure in implementing enterprise resource
planning software leads to create problems in the supply chain of the company.
Company overview
Nike is an American multinational corporation which is a public type company, and it was
established in the year 1964. The company is engaged in the development, design,
manufacturing, and marketing of accessories, footwear, equipment, and services. Headquarter is
located in Beaverton, Oregon and it is founded by the Bill Bowerman and Phil Knight. The
company is highly committed towards the development of innovative products and services
within the specific period of time. The total revenue of the company in the year 2012 was 24.1
Million which is increased by sixteen percent from the previous year 2015 (Anon et al.,2017 ).

Analysis
In the year 2000, the company had decided to implement the unique management of supply chain
which enables to forecast the demand in order to supply accordingly. At the same time the
company has also implemented ERP system but it is founded that the forecasted demand of the
required was inadequate at the specific situation. So the company decides to adopt the software
I2 which enable to quickly respond the changes in the market through schedule of planning
productions with the new requirements in order to retain in the market through fulfilling the
change market needs within the specific period of time. However if the implementation of
strategy is successful then it enable to provide competitive advantage to the company. The
implementation of ERP system may be threating for the company and system of I2 is very small
so the company needs to take various measures in order to implement it successfully within the
organization (Soh et al., 2004).
Important issues
The company has mainly implemented planning software instance which is recognized as I2
which arises the main problem in the company. The reason of failure in implementing the
software is that proper evolution is not done in which new software of planning demand is
integrated within the legacy of system. The company was rushed in software implementation
prior to the main package of SAP and that was not ready to implement the software that leads to
the system failure of I2 within the supply chain of a company (Bradle et al., 2008). The company
has a unique supply chain which is required to make the order prior to the six months. The main
issue is that the company is unable to predict whether the product which will provide in the next