Case Study: Analyzing Nike's ERP Implementation Process

This case study analyzes Nike's ERP implementation, focusing on the challenges and successes encountered during the process. It examines the role of Organizational Project Management Maturity Model (OPM3) in identifying skill gaps before implementation, particularly in the demand planning system. The study highlights the reasons behind Nike's successful ERP implementation, including a well-defined business plan, sufficient time for implementation, and rigorous user training. It also explores the rationale behind the phased rollout approach, emphasizing its benefits in learning from early mistakes and ensuring comprehensive worker training. The paper concludes by underscoring the complexities of ERP implementation and the importance of a systematic, phased approach to address operational issues and facilitate user adoption, referencing several factors such as user training and integration.

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ERP IMPLEMENTATION USERS’ GAP ANALYSIS: NIKE’S CASE ANALYSIS
Name of the student
Subject Name:
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Introduction
There is a need to use OPM3 to boost understanding gaps in skill prior to the execution of ERP.
There is necessity to take the phased ERP implementation approach over the vital duration to assist in
reducing success failure among companies such as Nike. There is a need for an implementation team to
develop the plan to roll out the ERP system within a period of six-year in phasesi. Therefore, this research
paper examines the ERP implementation process within the past approach, the importance and use of the
model of OPM3 within the process of learning the gaps of organization skill implementation to the company
such as Nike.
How Could Organizational Project Management (OPM3) have helped to identify the Problems with
Implementing the Demand Planning System?
OPM3 refers to the Project Management Institute (IPM) publication that offers the technique for
different corporations to recognize their processes of Management of Organizational Project effectively.
OPM3 also measure capabilities of corporations in preparation for ideal improvement. Moreover, it is the
internationally recognized appropriate practice standard for assessing along with developing capabilities in
the management of the project, management of the portfolio, and Program Managementii. The technique
could have assisted organizations such as Nike in assessing the organizational set of skill to instigate the
effectively of system of ERP. It could assist organization to attain different aims specified at the start of the
project. It can also aid the corporation to recognize the competency level alongside the capability to execute
the system of ERP effectivelyiii. OPM3 offers ideal technique for different organizations to understand their
i T. Kushnikova, "Analysis of the structure of the ERP system and aspects of its implementation in the
enterprise", SCIENTIFIC DEVELOPMENT TRENDS AND EDUCATION, vol. 2, 2019. Available:
10.18411/lj-07-2019-55.
ii L. Ganesh and A. Mehta, "Understanding Cloud Based ERP Implementation in Light of Conventional ERP
Implementation at Indian SMEs: A Case Study", SSRN Electronic Journal, 2016. Available:
10.2139/ssrn.2782244.
iii S. Chakravorty, R. Dulaney and R. Franza, "ERP implementation failures: a case study and analysis",
International Journal of Business Information Systems, vol. 21, no. 4, p. 462, 2016. Available:
10.1504/ijbis.2016.075256.

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processes and practices of management of the organizational project and to make such processes capable to
be performed successfully, predictably, and consistently. Additionally, OPM3 assists organizations create
the best roadmap that the corporation will follow to enhance performance.
Though Nike Company selected to execute the system of planning of demand in the initial instance,
with the other implementation systems later on phased approach over the number of years, there exist
different issues observed that links to the software, data, and response duration. In this scenario, using
OPM3 will undoubtedly assist in identifying gaps related to skills within the corporation that must be filed
prior to the commencement of implementationiv. Therefore, the use of OPM3 assists the organization in
processes of assessing different set of skill to implement systems of ERP effectively while attaining
different set out goals at a commencement of any plan. In the case of Nike Company, the method of demand
planning was complicated as the end-user was not given proper training to utilize the system properly.
Using OPM3 as the structure, Nike could have been able to gain appropriate knowledge on best practices of
implementation of the system in the preparatory phase of evaluation. Hence, the actual assessment might
have followed based on the present knowledge and skills level for the demand in the planning of the
projectv. Lastly, the existing gaps amid the appropriate practices, as well as the current levels, could be
eliminated through taking necessary countermeasures. Such methods could have made Nike decide whether
it requires outside stakeholders alongside based on the existing skill levels that they possess.
What were the Three Primary Reasons Nike was Successful with the Ongoing ERP Implementation?
The general plan for business structures as well as descriptions for embracing that involved
implementation was well appreciated in entire operations of Nike Company. Therefore, Nike comprised of
appropriate purchase-in for the project and able to create variation in its systems that dealt with demand and
iv H. Yang, "Project Team Right-sizing for the Successful ERP Implementation", Procedia Computer
Science, vol. 91, pp. 672-676, 2016. Available: 10.1016/j.procs.2016.07.168.
v S. Rahayu and V. Juliana Dillak, "Key Success Factor for Successful ERP Implementation in State Owned
Enterprises", International Journal of Engineering & Technology, vol. 7, no. 438, p. 916, 2018. Available:
10.14419/ijet.v7i4.38.27608.

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progressed with the implementationvi. The company was able to take the appropriate time to implement the
project of ERP and learn from the mistakes and issues from previous projects like demand planning. There
was also the rigorous training implemented and planned for the users for the representative of customer
service. The idea enabled the company to carry out the process of business reengineering to help in
identifying performance-based objectives for the project.
The three above reasons enabled Nike to displayed patience during an implementation alongside
study from different faults from their history. They help Nike to concentrate on looking at the process of
implementation and improving it in the processvii. Additionally, these reasons made Nike to be victorious
with enduring implementation of ERP by being able to train its client service council for about one hundred
and forty to one hundred and eight hours. Different users of Nike were secured out of the practice until they
finished the full route of training that they will totally recognize each issue that the organization needs to
know. The training was aiming to make customer service representatives have adequate abilities to utilize
the technique effectively.
Why was a Phased Rollout the Correct Decision for Nike?
The phased rollout is a term that refers to the migration technique of software or hardware that
comprise of incremental implementation of the advance system. In the system of phase rollout, the
changeover happens in different waves over the long duration that enables corporations to slowly adapt to
the system, as opposed to adjusting to the immediate systemviii. The phased rollout remained as an
appropriate choice for the operations of Nike. It allowed the organization to learn from different mistakes
vi M. Supramaniam, A. Abdullah and R. Ponnan, "Cost Analysis on ERP System Implementation amongst
Malaysian SMEs", International Journal of Trade, Economics and Finance, pp. 72-76, 2014. Available:
10.7763/ijtef.2014.v5.343.
vii M. Mukherjee and S. Roy, "On Successful Implementation of ERP Software", INTERNATIONAL
JOURNAL OF ADVANCED ENGINEERING AND MANAGEMENT, vol. 2, no. 1, p. 28, 2017. Available:
10.24999/ijoaem/02010010.
viii R. O’Shea, "The Role of the Business in Ensuring a Successful ERP Implementation", EDPACS, vol. 55,
no. 5, pp. 13-15, 2017. Available: 10.1080/07366981.2017.1319244.

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made early within the process from its early experience of demand planning system implementation. It
remains a correct decision for Nike because it enables it to understand the complexity of the ERP
implementation project. The phase rollout thus focused on taking the informed decision to take an extended
duration of six years of the time of implementation to implement the ERP within the phase in the
appropriate manner. Hence, Nike Company was able to guarantee business aims were attained throughout
system of implementation while not focusing on just attaining a system up as well as managementix. Such
lengthy time of execution gave room for practical training of all workers so that they understood the new
system and gave time for any mistakes of ERP system to surface in a single location instead of every
location at ago.
Nike’s decided on the approach of phased rollout over six years with the aid of the model of OPM3
may have attributed to the thriving execution of its ERP structures. Gaining facts from an accomplishment
of exact planning system made corporation to come up with an assessment of what went wrong as well as
how to enhance their other implementations for ERPx. Furthermore, the plan and method of Nike to initially
implement the demand planning system was valuable since the program created an ideal opportunity for the
organization to attain its goals of conducting business. The techniques improved idea of evaluation and
testing in the controlled environment instead of possibly putting the corporation in jeopardy by releasing the
entire unfinished system of ERP that would impact all aspects of the organization. Commencing the process
of rollout with small regions in Canada then slowly shifted toward the U.S., the Middle East, along with
Europe and later Latin America together with the Asia Pacific. Such lengthy duration for implementation
allowed to appropriately offering training to all workers. Hence, they understood the new systems and gave
time for any ERP system mistakes to show up in a single location instead of all locations agoxi. All these
ix L. Pylypenko and M. Redko, "Analysis Of The Advantages And Disadvantages Of Erp System
Implementation In Enterprises", Pryazovskyi Economic Herald, no. 617, 2019. Available: 10.32840/2522-
4263/2019-6-33.

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operations enabled Nike to try multiple ERP systems that they view in every system’s benefit to improve the
effectiveness of that system and eliminate any problem that might cause phase rollout.
Conclusion
The implementation process of any ERP system remains to be complicated, and it requires a
significant amount of time to roll out to different regions within the international setting. A systematic and
phased approach can assist organizations in sorting out operational problems but also enable workers to
embrace the system if they are appropriately trained. Several factors required to be considered in the process
of deciding on the approach to deal with the system of ERP. Such elements comprise of user training,
integration, along with cutover aspects. Various strategies for implementation suggest that the approach of
the big bang can be utilized to implement the idea of ‘must-have’ functionality within the core modules of
ERP. The approach can be followed up with the phased implementation of the functionality of ‘nice to
have’ within the process of implementation.
Bibliographies
x Fitriani, R. Witjaksono and M. Saputra, "Reliability and usability analysis of the implementation ERP in
host to host payment system: A case study", Journal of Physics: Conference Series, vol. 1367, p. 012003,
2019. Available: 10.1088/1742-6596/1367/1/012003.
xi H. Yang, "Project Team Right-sizing for the Successful ERP Implementation", Procedia Computer
Science, vol. 91, pp. 672-676, 2016. Available: 10.1016/j.procs.2016.07.168.

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[1]M. Supramaniam, A. Abdullah and R. Ponnan, "Cost Analysis on ERP System Implementation amongst
Malaysian SMEs", International Journal of Trade, Economics and Finance, pp. 72-76, 2014. Available:
10.7763/ijtef.2014.v5.343.
[2]S. Chakravorty, R. Dulaney and R. Franza, "ERP implementation failures: a case study and analysis",
International Journal of Business Information Systems, vol. 21, no. 4, p. 462, 2016. Available:
10.1504/ijbis.2016.075256.
[3]Fitriani, R. Witjaksono and M. Saputra, "Reliability and usability analysis of the implementation ERP in
host to host payment system: A case study", Journal of Physics: Conference Series, vol. 1367, p. 012003,
2019. Available: 10.1088/1742-6596/1367/1/012003.
[4]L. Pylypenko and M. Redko, "Analysis Of The Advantages And Disadvantages Of Erp System
Implementation In Enterprises", Pryazovskyi Economic Herald, no. 617, 2019. Available: 10.32840/2522-
4263/2019-6-33.
[5]T. Kushnikova, "Analysis of the structure of the ERP system and aspects of its implementation in the
enterprise", SCIENTIFIC DEVELOPMENT TRENDS AND EDUCATION, vol. 2, 2019. Available:
10.18411/lj-07-2019-55.
[6]L. Ganesh and A. Mehta, "Understanding Cloud Based ERP Implementation in Light of Conventional
ERP Implementation at Indian SMEs: A Case Study", SSRN Electronic Journal, 2016. Available:
10.2139/ssrn.2782244.
[7]S. Rahayu and V. Juliana Dillak, "Key Success Factor for Successful ERP Implementation in State
Owned Enterprises", International Journal of Engineering & Technology, vol. 7, no. 438, p. 916, 2018.
Available: 10.14419/ijet.v7i4.38.27608.

Surname 8
[8]M. Mukherjee and S. Roy, "On Successful Implementation of ERP Software", INTERNATIONAL
JOURNAL OF ADVANCED ENGINEERING AND MANAGEMENT, vol. 2, no. 1, p. 28, 2017. Available:
10.24999/ijoaem/02010010.
[9]H. Yang, "Project Team Right-sizing for the Successful ERP Implementation", Procedia Computer
Science, vol. 91, pp. 672-676, 2016. Available: 10.1016/j.procs.2016.07.168.
[10]R. O’Shea, "The Role of the Business in Ensuring a Successful ERP Implementation", EDPACS, vol.
55, no. 5, pp. 13-15, 2017. Available: 10.1080/07366981.2017.1319244.