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Nke I2 Erp

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Nike I2 ERP Implementation Failure Case Study

February 9, 2014

Shafer Minnick
Morgan Correll
Jeff Harvey

Nike stands as the World’s leading producer of Athletic Footwear, Apparel and Equipment. As of 2013 they held complete ownership or joint venture in the following companies:
 Nike Brand
 Cole Haan
 Converse
 Hurley International
 Umbro Athletic Wear
 Nike Golf
 Jordan Brand
This is a rather long and somewhat surprising list to many, based on some of these brands are portrayed as competitors in the daily consumer market. Nike products are sold in over 170 countries worldwide through their network of 700 retails stores. They have 38,00 Nike employees worldwide, based in those retail store, or one of 65 administrative offices or 10 plus Sales Offices or showrooms worldwide. Nike products are manufactured through a contract manufacturing partnership consisting of 900 contract plants worldwide using over 1 million contract employees. These same plants are managed by their local ownership, but Nike spends significant time and money coaching these plants in the Nike sustainable manufacturing plan.

The Nike Strategy
The Nike Business strategy focuses on Innovation. First the “Innovation to Serve the Athlete”-meaning they desire to design and produce the best products for athlete safety and performance. They want to be the leaders in new and improved products to advance athletic performance. Secondly, “Innovation to Grow the Company”- Nike wants to focus new products and capital equity in programs that will sustainably grow the company’s revenue and profitability. That may mean new products, new acquisitions, or joint ventures. Thirdly, “Innovation to Inspire the World”- Nike wants the world to see them as an integral part of daily life. Long standing slogans like “Just Do It”, or relationships with stars like Michael Jordan, put

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...Case Study: Nike ERP Implementation Nike shoe division grew and spread rapidly around the globe from its inception in 1972 through 1998. Yet in 1999, Nike realized that in order to keep up with the growing demands of their products, and specifically their Air Jordan line of basketball shoes, they would have to make changes in the way they forecasted and projected demands and distributed their products. Eventually it was decided that these changes would take place in the form of the implementation of a new supply chain and Enterprise Resource Planning (ERP) software system. This paper will examine the supply chain problems Nike was trying to fix with the new system, the problems that arose from the implementation of the new system, and how Nike resolved these problems. Nike was founded in 1957 on the vision of two men, Bill Bowerman and Phil Knight; a vision to redefine the industry of athletic footwear. Bill Bowerman was a track and field coach at the University of Oregon in search of a competitive edge for his athletes, a competitive edge which could be achieved by spearheading changes to the running shoes of the time. At the time, Adidas and Puma were the dominant brands of running shoes. Phil Knight, a Portland runner with a degree in finance from Stanford University, proposed to compete with the German (Adidas and Puma) brands of running shoes by manufacturing them in Japan, which at the time was experiencing a post WWII boon in its economy, and their stage of manufacturing...

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