MITS6004 Enterprise Resource Planning Assignment: Nike ERP Case Study

This case study analyzes Nike's Enterprise Resource Planning (ERP) implementation, exploring the company's journey from its initial demand planning system to a phased rollout of a new ERP system. It discusses the role of Organizational Project Management (OPM3) in identifying and addressing issues with the demand planning system, emphasizing its application in assessing organizational skills and project management processes. The study highlights three primary reasons for Nike's successful ERP implementation, including extended project timelines, increased user training, and the utilization of business process engineering. Furthermore, the case examines the strategic decision of a phased rollout, recognizing its advantages in mitigating risks, allowing for incremental learning, and ensuring alignment with business goals. The report concludes by emphasizing the importance of efficient planning, employee training, and the benefits of ERP implementation, such as improved information access and streamlined business operations.

Running head: ENTERPRISE RESOURCE PLANNING
Case Study: NIKE ERP Implementation
Name of the Student:
Name of the University:

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Table of Contents
Introduction................................................................................................................................2
1. Role of OPM3 in identifying problems with implementing demand planning system..........2
2. Three primary reasons of NIKE with ongoing ERP implementation....................................4
3. Phased rollout as correct decision for Nike............................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
The report is reflected on ERP implementation of NIKE with various rollouts over the
period. The strategy is called as operation of demand planning system while employed
throughout ERP as well as supply chain implementation. After operation of the system, and
when it comes live, there are amount of issues connected to software, response time as well
as data (Koch, 2004). Training is also not addressed properly causes minor amount of end
users to usage of system inefficiently.
Based on identified issues, NIKE decided to use concepts of Organizational Project
Management (OPM3) for identifying issues with implementation of demand planning system.
In this paper, there is also discussion of primary reasons behind successful of NIKE with
ongoing implementation of ERP system for the business (Müller, Drouin, & Sankaran, 2019).
Finally, there is a reflection on phased rollout for taking correct decisions for NIKE business.
1. Role of OPM3 in identifying problems with implementing demand
planning system
OPM3 is a framework used by NIKE to evaluate level of skills as well as ability to
implement of ERP system as per requirements identified by the organization at starting of the
project with baseline budget as well as time period. It assisted in recognizing problems with
demand planning system which help NIKE to identify as well as deliver right project (Koch,
2004). It improves over the project performance as well as provides high return on
investment, bring into line with organizational plan with the plans of NIKE sustains the
business success as well as lessen operational cost by ensuring that the plan is being
associated towards the business strategy (Hyväri, 2016). By means of using OPM3
framework, NIKE can acquire knowledge regarding their ERP system implementation at best
practices in primary stage of assessment. Following are the three phase process OPM3

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framework used to identify issues in demand planning system implementation process of
NIKE as:
a. Acquiring of a considerate of model as well as operation of ERP
b. Relating of current infrastructure to strong organizational project management
infrastructure
c. Defining changes which are possible at existing period as well as
implementing noted changes in the system implementation (Badewi &
Shehab, 2016).
OPM3 is provided NIKE to understand the organizational project management
processes as well as practices, and it makes the business processes to perform successfully. It
helps NIKE in demand planning system implementation process by developing roadmap that
the company should follow to make improvement over their business performance. OPM3 is
helping to assess organizational skills for implementation of ERP system. In case of NIKE,
demand planning system was very complex as well as the end users were not qualified
sufficient to use system properly (Anantatmula & Rad, 2018). The testing of system was also
not planned in proper way as well as actual sufficient to search for problems with the legacy
system interfaces. Therefore, by means of using this proposed framework, the staffs of NIKE
should gain knowledge regarding implementation of system with best practices. The actual
skills to implement the system is focused on current knowledge required for project planning
(Müller, Packendorff, & Sankaran, 2017). By means of taking proper countermeasures, gaps
between best practices as well as present level is eliminated. OPM3 framework led the
company to decide whether it requires outside partner from implementation support based on
skills as well as abilities.

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2. Three primary reasons of NIKE with ongoing ERP implementation
The business plan for systems as well as explanations for taking this ERP
implementation work were being unstated by NIKE. NIKE had exceptional buy in for their
project and was made modifications in the demand planning system. The business goals of
NIKE achieved throughout their implementation process of ERP system. A string project
plan should involve in the ERP implementation so that the business can get support as well as
participate in project planning (Shen, Chen, & Wang, 2016). A string project manager
support leads to successful of project planning as well as execution towards key ERP success.
Following are three reason behind successful implementation of NIKE’s ERP:
Firstly, NIKE took more time to implement their ERP system project as well as
learned from their mistakes as well as problems from previous project means demand
planning system project.
Secondly, there is an increase in number of training users and ensuring that the
unskilled staffs do not get access to the ERP system until they accomplished the training
period. Training is increased for mainly for the implementation of ERP as well as provided to
the users in addition to for customer service representatives (Koch, 2004). The customer
service representatives are received training of 140-180 hours as well as users are locked out
ERP system until they are finished their full training development program.
Thirdly, business process engineering is used to explain the performance based goals
along with application process. By means of using business process engineering, it helps
NIKE to study its current business processes as well as develop proper methods to make
improvement over productivity, operational cost as well as business efficiency (Koch, 2004).

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3. Phased rollout as correct decision for Nike
The phased rollout is a drive towards NIKE Company from its present legacy system
to implementation of new ERP system. Phased rollout is a precise decisions for Nike as it is a
lease troublesome for the corporation as well as because of single occurrence ERP system as
well as supply chain proposal varied to the demand planning system. It is at ease to succeed it
concluded using phase rollout (Shanmugasundaram & Sarojini, 2018). Phased rollout is
suitable option for executing as NIKE gets experience of demand planning system
implementation and perceives complexity of ERP system implementation. Based on previous
experience of demand system planning, it helps the staffs of NIKE to get decisions regarding
how to implement ERP system (Koutsoukos, 2019). Throughout entire processes, both the
company as well as NIKE learned from their mistakes as well as made the project efficient by
fulfilling objectives of their business.
Phased rollout is hardware as well as software mitigation procedure which is involved
with incremental implementation of new ERP system. In phased rollout, a changeover is
occurred in various waves over extended period of time, which can allow the company to
slow down its system adaption. For the business operations of Nike, phased rollout is a
correct decisions as from this process, the staffs and management could learn their mistakes
through their earlier implementation experiences (Doleac, 2018). Phased rollout process
helped them to be aware of their complexity of ERP implementation as well as took proper
informed decisions take lengthier period over 6 years of time to implement ERP in phased
wise. In this way, the business can ensure that their business goals are being achieved
throughout implementation of ERP system (Müller, Packendorff, & Sankaran, 2017). The
lengthy process of ERP implementation will allow to train the staffs as well as employees
such that they are getting familiar with new system and used to the functionalities as well as
features of new proposed ERP system.

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In new implementation of ERP system, phased rollout helps in hardware as well as
software migration of then system with incremental implementation. NIKE decides to use the
concept of phased rollout process so that they can reach the market sooner as well as gain a
competitive advantage in the IT market (Hyväri, 2016). There is earlier entry in the market as
well as get reviews of the customer and feedback so that they can include it in the product in
following phases. The phased rollout helps the users to adjust new ERP system slowly. It
makes an incremental additions to value of IT assets, gains credibility within the business
organization as well as describe the incremental expenditures in things like collaboration
room, training, well instrumentation as well as role transitions (Doleac, 2018). At the time of
launching and implementing a new system in the market, the rollout phased strategy helps to
plan the project to lively changes.
Conclusion
It is concluded from the case study of NIKE that there is a sensitive as well as critical
implementation of ERP us taken place. When it comes to the worldwide business of NIKE,
the company decided to take proper decisions regarding its implementation of a successful
ERP system. The management was focused to identify the root cause of previous project
mistakes on demand planning system, therefore in case of ERP implementation, the staffs are
trained enough to work proficiently in this project planning. Phased rollout saved day for
Nike as this lengthy implementation trains the employees to understand the functions as well
as features of this new system. ERP application of Nike is a global corporate plan and
therefore efficient planning is required to get successful implementation of proposed system.
The benefits of ERP implementation on NIKE are accurate as well as timely access to get
reliable business information. There is also efficient sharing of information among various
components of the business. There is elimination of pointless operations as well as data with
decrease of time and price of trial.

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References
Anantatmula, V. S., & Rad, P. F. (2018). Role of organizational project management maturity
factors on project success. Engineering Management Journal, 30(3), 165-178.
Badewi, A., & Shehab, E. (2016). The impact of organizational project benefits management
governance on ERP project success: Neo-institutional theory
perspective. International Journal of Project Management, 34(3), 412-428.
Costa, C. J., Ferreira, E., Bento, F., & Aparicio, M. (2016). Enterprise resource planning
adoption and satisfaction determinants. Computers in Human Behavior, 63, 659-671.
Doleac, J. L. (2018). Strategies to productively reincorporate the formerly-incarcerated into
communities: A review of the literature. Available at SSRN 3198112.
Hyväri, I. (2016). Roles of top management and organizational project management in the
effective company strategy implementation. Procedia-Social and behavioral
sciences, 226, 108-115.
Koch, C. (December 7, 2004). Nike Rebounds. CIO Australia’s magazine for executives.
Koutsoukos, G. (2019). The Project Strategy Matrix: Systematizing the Design and
Management of an Explicit Project Strategy. IEEE Transactions on Engineering
Management.
Kurbel, K. E. (2016). Enterprise resource planning and supply chain management. springer-
verlag berlin an.
Müller, R., Drouin, N., & Sankaran, S. (2019). Modeling organizational project
management. Project Management Journal, 50(4), 499-513.

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Müller, R., Packendorff, J., & Sankaran, S. (2017). Balanced leadership: A new perspective
for leadership in organizational project management. Cambridge handbook of
organizational project management.
Shanmugasundaram, P., & Sarojini, B. (2018). An Overview on Release and Deployment
Management Strategy. International Journal of Pure and Applied
Mathematics, 118(9), 5-12.
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A study of enterprise resource planning
(ERP) system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, 127-139.