Nike Case Study: Successful Implementation of ERP System

Question

Task: The presentNike case study analysis addresses the following questions:
1. How could Organizational Project Management (OPM3) have helped to identify the problems with implementing the demand planning system?
2. What were the three primary reasons Nike was successful with the on-going ERP implementation?
3. Why was a phased rollout the correct decision for Nike?

Answer

Introduction
The entire study has been based on the featured Nike case studyand its operation related to the implementation of an ERP system. Apart from the mentioned, the study related to the prospect of OPM3, reasons for project success and the primary idea of a phased rollout.

Case Question 1: Organisational Project Management (OPM3)
It is essential to understand that OPM3would also be commonly known as Organisational Project Management Maturity Model. This is specifically recorded as a standardised practice of project management process that would be efficient for the project performance of the organisation. The mentioned had been initially recognised as a potential practice by the American National Standard Institute (ANSI) due to its comprehensive and simplistic approach to any endeavour. The practice had been primarily developed by the Project Management Institute (PMI) that would allow project management to be conducted in a critical and low complexity manner [2]. However, in the featured case of Nike, it could be observed that OPM3 would have been able to aid the organisational project while implementing their ERP over 6 years. It has been observed that the process would have been able to relate to implementing problems within the prospect of implementing and understand the demand planning system situated within Nike.

It has been well established that OPM3 would provide a wide range of aiding prospects. This would relate to the detailed understanding of organisational project management processes. This would be further associated with the aspects of generalised project management practices within the organisation. Hence, implementation of OPM3 within Nike would have allowed the organisation to perform their activities successfully, with consistency and predict any issues. It could be further observed that OPM3 would be able to aid Nike related to the development of a roadmap that would have been able to improve the performance of the organisation [3]. This could further assist the outcomes associated with the processes.

Exploring the issues faced within the aspects of company as given in the Nike case study, it could be observed that implementation of OPM3 would have massively helped the progress. This would be specifically due to the help of OPM3 in the organisational skills for implementing the ERP system and meeting the fundamental goals of the endeavour [5]. Meeting the goals at the initiation of the venture is an added advantage that would be related to the venture. The mentioned prospect would initially aid the company to understand the level of capability. This could be closely associated with the increase and accurate addressing of the ability of the implementation of an ERP system in a successful manner. Understandably, large-scale organisations such as Nike would be able to benefit primarily due to the implementation of the mentioned prospect. This would account to the implementation of OPM3 and would be resultant to the more remarkable changes of implementation of ERP systems without much room for failure. Currently, it could be understood that OPM3 is more than just a procedure that would be associated with proper project management in an association [6]. It has been observed that OPM3 would be related to the depreciation of identity daps within an organisation. This would be the result of proper implementation of training programs that related to lesser skill gaps associated with the better possibility of success related to ERP implementation.

It has been well observed that the demand planning system associated with Nike had explicitly been complex. This could be mentioned as it has been observed that the end-users were not trained adequately and that cause a severe risk associated with the endeavour. The use of OPM3 could have granted Nike with the knowledge related to the inconsistencies within the initiated system [7]. Hence, the timescale associated with the venture could have been shorted with the potential save of 100million that had been over-spend for the venture. This could have been achieved with the current assessment of the associated at Nike and addressing their skills for the demand-planning project [9]. Additionally, elimination of the gaps between best-suited practices and the undertaken practices could have been monitored to save resources. This would have allowed the organisation to decide the potential dependences with any joint-venturing organisations for the project to be completed within the decided limitation.

Question 2: Consider the readings of Nike case study and state what are the three reasons for the success of Nike’s ERP implementation?
The section of the paper has been generated to identify the three potential reasons related to the success of the implementation of the ERP system by Nike. This would be able to specify the significant details related to the venture that has been undertaken by Nike and allow a detailed understanding regarding the key success points. Hence, the reasons identified for success are as follows:

1. Nike opted pro rigorous training programs for the associated members of the workforce. This led to the development of strict training plans that had been imposed over the user and the customer service representatives associated with the company.During the training phase, all the users had been locked out of the system, and they would not be allowed access to the ERP system unless they have completed the routine training program. This resulted in the users been entirely aware of the functionalities and the needs of the system while working with it after the training program. This significantly accelerated the success of the venture.
2. Nike had the option to allow a massive scale of time to be allowed for the implementation of the ERP system. This allowed the project to make and eliminate the mistakes that had been observed to be essential for the future of the venture. This allowed the organisation to evaluate the options and learn from its own mistakes. This could be associated with the scenario when the organisation though that the ERP would have limited end-users [4]. However, after implementation, the organisation understood that the number of end-users was more than anticipated.
3. Process-based objectives associated with the project had been identified with the help of a Business Process Reengineering (BPR) prospect. This could be associated with the practices implemented by the organisation over the scope of 6 years of implementation. This allowed the room fir rethinking and redesigning the ways of progress. This allowed the initiative to be accepted at a gradual pace rather than an enforced regulation that might have resulted in anon-supporting movement against the change.

Question 3: Phased rollout for Nike
It is essential to note that the entire prospect of the Nike case studyas featured in the study related to the various developments and strategies of implementation by Nike. Throughout the entire venture, it has been made evident that the aspect of phased rollout had been an immense success for the company. However, it is essential to understand why such a strategy had been able to work wonders for the undertaken objective for the company. It has been observed that phased rollout would occasionally be called software or a hardware "migration” process. This would specifically involve the aspect of implementation in a new system through elongated periods of operation and would be related to incremental or phased implementation [1]. Therefore, it could be mentioned that such rollouts would not attract much attention for being obligated by the changes brought with the new system. Apart from the mentioned, the use of a phases rollout would be associated with significant changeovers. This would occur in numerous instances and would be initiated over a long period of operation to attract minimum attention. This allows the accomplishers to be open to insignificant changes over a short period. Yet, this accounts for a massive change over a long period. This specifically helps the organisation and the associates to gradually accept the changes that have been happening under their noses, and most would not notice them. This allows room for adapting to the new system.

Referring to the scenario presented in theNike case study, it could be safely assumed that phased rollout had been the correct choice. This would be specifically due to the observation for the success of the project. Apart from the mentioned, this allows the organisation to learn from their own mistakes, and they did not have to rely on other's data to improve themselves. The entire development lasted an approximate 6 years that eventually cost the organisation $100 million more than the proposed cost of the venture. However, this provided the organisational associated with maturity and being adaptive to the scenario that would be changing with Nike and its ERP system [8]. Therefore, it could be mentioned that the mentioned process of phased rollout may not work in the current competitive market where the speed to adapt would be highly significant. However, this integration provided the organisation with data that would be essential for the growth of the organisation in future.

Recommendations for ERP implementation

• An internal analysis would be essential to understand and point out the problems that would be mitigated with the help of the ERP implementation. This accounts to understanding and identification of the KPI associated with the institution that would be essential to meet for a successful implementation.
• Brainstorming and evaluating the available options to construct a feasible strategy for the implementation would be essential. This would be associated with definition of a scope for the venture. This would be critical as some study suggests, 61.1% ERP implementations take longer due to no scope identification.
• Implementation and customisation of a proper infrastructure that would be able to support the ERP would be essential for the entire prospect. Apart from the mentioned, this would be related customisation of the ERP as per the requirements. This could be wide seen for the case of Nike, where tailoring had been done in multiple occasions.
• Implementation of change management would be essential. Similar to the case of Nike where they implement a phased implementation for tackling the changes. Apart from the mentioned, the prospect of data migration and knowledge transfer would be essential. This could be observed for Nike’s case where they had promoted strict training programs to tackling the barriers.

Conclusion
It could be safely concluded that the entire paper has been based on the learning pints gained through the study of Nike case study. It is important to note that the paper has been able to propose the reasons for success and its long period of implementation process related to the new ERP system.

References List
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[2] Alashwal A.M, Abdul-Rahman H and Asef A (2017) “Influence of Organizational Learning and Firm Size on Risk Management Maturity,” Journal of Management in Engineering, 33(6). doi: 10.1061/(ASCE)ME.1943-5479.0000553.

[3] Bento I, Gomes J and Romao M (2019) “The Relationship between Opm3 and Project Performance: A Multiple Case Study,” Journal of Modern Project Management, 6(3), pp. 46–57. doi: 10.19255/JMPM01803.

[4] Muscatello, J. R., Parente, D. H. and Swinarski, M. H. (2016) “The Impact of Erp Alignment on Logistics Costs: A Work System Theoretical Approach,” International Journal of Enterprise Information Systems (IJEIS), 12(3), pp. 1–17. doi: 10.4018/IJEIS.2016070101.

[5] Sivathanu, B. (2019) “An Empirical Study on the Intention to Use Open Banking in India,” Information Resources Management Journal (IRMJ), 32(3), pp. 27–47. doi: 10.4018/IRMJ.2019070102.

[6] Steyn, H. and Van der Linde, J. (2016) “The Effect of a Project Management Office on Project and Organisational Performance : A Case Study,” South African Journal of Industrial Engineering, 27(1), pp. 151–161. doi: 10.7166/27-1-1114.

[7] Terouhid, S. A. and Ries, R. (2016) “Organizational Sustainability Excellence of Construction Firms – a Framework,” Journal of Modelling in Management, 11(4), pp. 911–931. doi: 10.1108/JM2-06-2014-0055.

[8] van Lin, A. and Gijsbrechts, E. (2019) “‘hello Jumbo!’ the Spatio-Temporal Rollout and Traffic to a New Grocery Chain After Acquisition,” Management Science, 65(5), pp. 2388–2411. doi: 10.1287/mnsc.2018.3054.

[9] Wen, Q. and Qiang, M. (2016) “Enablers for Organizational Project Management in the Chinese Context,” Nike case studyProject Management Journal, 47(1), pp. 113–126. doi: 10.1002/pmj.21565