Enterprise Resource Planning Assignment: Case Analysis Of Nike
Question
Task:
This enterprise resource planning assignment is designed to analyze business/ enterprise activities of Nike and to identify problems, weaknesses, strengths and threats and entities interacting with the enterprise.
Answer
Executive summary
This report on enterprise resource planning assignment aims at describing the unit learning outcomes in the Enterprise resource planning system. This assessment aims to describe enterprise activities in Nike and to identify problems, weaknesses, strength and threats and entities interacting with the enterprise. Enterprise resource planning system is the process in which companies integrate and manage the important links of the business. Further there will be discussion regarding how the organizational project management have helped to identify the problem with implementing the demand planning system, primary reasons due to which Nike was successful with the ongoing ERP System, why was phased rollout the correct decision for Nike. This report concludes that implementing ERP system can integrate all the systems needed to run the company but if it is not implemented carefully then the company could experience cost overruns.
Introduction
The concept of enterprise resource planning (ERP) explored in the segments of enterprise resource planning assignment is the process used by the companies to manage their activities in an integrate manner. ERP software applications are useful to the companies because it provide them the facility to implement resource planning by integration all the activities needed to run the business under one system (Schuh 2017). Enterprise resource planning system also helps in planning, purchasing inventory, marketing, sales, finance, human resource planning etc. ERP system acts as connector to the company that binds its different computer systems in different department together. With ERP application all the departments has their own system but all of them can be accessed with one application and single interface. The ERP application allows different departments to communicate with the rest of the company in an easy way without any hindrance (Zerbino et al. 2017). The organization can become more self aware with the use of ERP system as they will have knowledge about the production, finance, human resource distribution together.
Benefits of Economic resource planning
There are following advantages of ERP system as presented in the next section of enterprise resource planning assignment:
1. Focused IT Cost
ERP System leads to a large investment for the business enterprise, although it helps in unifying the IT related cost and improves the efficiency of the business enterprise. Rather investing money on purchasing multiple systems and heir personnel to manage the task, infrastructure cost, licenses cost etc (Badevi et al. 2018). Eliminating all this expenses and focusing all this cost into one ERP system.
2. Total Visibility
ERP software provides total access to every important aspects in the business by making data which are easily available to each person in the firm, they can easily access he data whenever needed. The availability of all the data at one centralized location makes it easy for the company to complete the task more efficiently and efficiently.
3. Improved reporting and planning
One of the ERP system mentioned herein enterprise resource planning assignment is having improved visibility, better insight now can makes the task easier for ERP software. Now the data can be accessed in a easy manner from any location by any department at one centralized place (Abd, Nasr and Geith 2016). Economic resource planning software allows the company to compare the work done by its different departments.
4. Customer service
Company clients will be able to take the advantage of ERP software even if they don’t have enough knowledge regarding it. As client information is stored at one centralized location sales team will be able to focus on building the customer relationship with their clients. At the end of the day the company main target is to retain the old customers and attracting new ones.
Disadvantages of ERP System
Economic resource planning software has following disadvantages as discussed below within this enterprise resource planning assignment:
1. Costly
The cost of implementing and installing the software is major, it can cost nearly three to four times than other methods. The project manager must take into account the other costs before applying the Economic resource planning software (Sokolov and Kolosov 2018). If the company is looking for a more cheap method for implementing ERP Software then they should go for open sourcing.
2. Customization process
Customization process is one of the most important aspects of Economic resource planning software. It takes a lot of time, expertise, money and effort. Due to lack of customization business firms usually go out of budget as they don’t even know how much resources are needed.
3. Complexity
ERP Software is very useful for the business entities, it provides many capabilities and opportunities to the business but on the same side it is very difficult and complex to use (Zieli?ski, Kot and Zieli?ska 2020). Before investing in installing the ERP software the business firms should train their employee to avoid the risk of complexity and production failure at the last moment.
Organisational Project Management Maturity Model (OPM3)
OPM3 is the short form of Organisational Project Management Maturity Model. OPM3 aims at the method of improving and transforming the organizational strategy into successful project step-by-step. With the help of the project management principles and practices as stated in the enterprise resource planning assignment the OPM3 bridges the gap between the strategy and the individual project.OPM3 provides the basic way to distinguish the places where improvements are required or not.
How OPM3 is helpful in identifying the problem and implementing the demand planning system as mentioned in the enterprise resource planning assignment?
OPM3 provides a method to the organization to implement ERP Software, it helps in understanding the process of application and the functioning of the business entity and making it capable of performing the task efficiently and effectively. It provides the company a picture view of how the things are to be done and how the business entity can improve its performance (Wijaksono, Pratami and Bay 2020). OPM system helps in implementing the Economic resource planning software effectively by having a close view at the activities that are going in the company, and to meet the goals which are set the time of installing ERP software. OPM3 guides the company ways to implement the ERP software and make them aware about the level of competency they have to face near future. Companies with more skilled and trained personnel have greater chances to implement the ERP software easily than the less skilled firms. Before implementing the ERP application the gaps and the efficiency are filled up by the OPM3 methodology. In the Nike case, the employees are not well trained to implement the ERP software and the Demand planning system effectively. Using the OPM3 methodology in the preparatory stage of assessment Nike could have gained much information regarding implementing the ERP software (TAHRI and KAITOUNI 2017). After implementing OPM3 methodology in the starting phase make it pretty much easier for the companies to complete the task with much trained work force and can implement it easily. The gaps between the current practices and best results can be achieved by applying proper counter measures. All these observations outlined in the enterprise resource planning assignment could help Nike to estimate weather they need outside partners for their work or they can achieve the production at current level.
Primary reasons due to which Nike was successful in implementing ERP
1. Adequate time
Nike has adequate time to implement the Economic resource planning software. They learned from their previous mistakes which they have done while implementing the Demand planning system. Before implementing the ERP software they were aware about the unexpected cost and unexpected events (Reitsma and Hilletofth 2018). Nike has adopted the OPM3 methodology before implementing the ERP software which guided them the behavior of the demand supply their weakness and they ways through which they can achieve their target efficiently and effectively.
2. Business process reengineering (BPR)
Business process reengineering helps the organizations to know their current status and it provide redesigned measures to the company by which they can achieve remarkable results in time. Business process reengineering changes the module of the project completely and leads to avoid repeated improvements and wasting time in same thing (Leyh 2016). Implementing BPR successfully could lead to a drastic change in the business it can lead to the most cost saving technique and speed up the process of production with most effectiveness and efficiency.
3. Pre-training before implementing ERP software
Nike guided the employees with skilled training practices before implementing the Economic resource planning software which in return leads to increase in employees productivity level. They perform the task with more efficiency than earlier stages which leads to less resource usage, less wastage of material, producing higher quality work.
Phased rollout
Phased rollout is a correct decision for the Nike because it is a software or hardware migration method that leads to an incremental implementation in a new project. The investigation carried on this enterprise resource planning assignment signifies that phased migration is conducted either by implementing it to an entire new system or implementing it independently on separate project modules (Subramanian and Taterh 2018). In phased rollout system it allows the company to slowly adapt the changes that takes place by implementing a new methodology in the company. Phased rollout was the best system for the Nike because they got enough time to learn from their previous mistakes which they have done while implementing demand planning system (Delismajlovi? and ?izmi? 2017). They were already aware about the difficulties and complexity which they were going to face while implementing the EPR software.
Conclusion
Above discussion on enterprise resource planning assignment concludes that ERP software applications are useful to the companies because it provide them the facility to implement resource planning by integration all the activities needed to run the business under one system. With ERP application all the departments has their own system but all of them can be accessed with one application and single interface. The ERP application allows different departments to communicate with the rest of the company in an easy way without any hindrance. ERP Software is very useful for the business entities, it provides many capabilities and opportunities to the business but on the same side it is very difficult and complex to use. Before investing in installing the ERP software the business firms should train their employee to avoid the risk of complexity and production failure at the last moment.
References:
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