Discuss about the Involvement and Behavioral for Enterprise Systems Implementation.
The ERP system is the backbones of information system in a company in every business areas. With this, the supply chain management in the organization also improves the values of ERP system in the business. The presence of ERP systems in the business is very helpful to exchange the important information. Along with this, it encourages the communication between every department in the organization. This is an individual device system which has aim to serve everybody with identifying specific needs. Every module in the ERP system has different way of working and performs with the particular functions of data processing. ERP system is the very important part for the growth and success of every organization. if the system is implemented in the proper manner, it connects with every area of the company such as human resources, managing orders, distribution of external suppliers, manufacturing process, and consumers. This system is very helpful to share the important data with everyone (Koch, 2004). This report will focus on the implementation of ERP system and the reason of the failure of ERP system in Nike. Along with this, the report will also discuss the problems in the supply chain management of Nike which was the main reason of failure of ERP system in the business. This report will also describe the role of training and teamwork for the success of Nike in the market. The report will provide the recommendations to help other organizations having same business to understand and learn the lessons from the failure of Nike (Laudon, & Laudon, 2010).
Nike is the famous company across the world which manufacturers the high quality sport shoes for different sports such as football, athletics, volleyball etc. along with this, company is also involved in the manufacturing the fitness equipments and sports equipments such as caps. This company is very famous due to its developments and high commitments with the innovative products. Nike should adopt organizational project management maturity model in its business operations. The company should consider this type of model to address the change and maintain the process for implementation system. There are many reasons to adopt this model (Motiwalla, & Thompson, 2012).
In the year 2000, Nike had implemented a unique management of supply chain in its business. The aim of the company by implementing the supply chain management was to meet quickly with the requirements of the customers. Although, company was already involved with the SAP ERP system in implementation process but at the particular situation, the forecast demand was not sufficient for the requirements. So, the company adopted a new system named I2 to respond quickly with the change in the shoe market. But there were many issues with that system by which company has to face downfall in its revenue. The software I2 was made to help the company to match the demand and supply in the company in terms of manufacturing of products. The software needed to be connected with the different ERP system in the company but it failed. The company had responsibility of new project and that was to fulfill the requirements of manufacturing such as rubber, canvas, and other sports requirements but the I2 system failed to fulfill it. So, there was a need to implement organizational project management maturity model in Nike to address the requirements in the new project (Amoako, 2010).
For identifying the problems of demand planning system of Nike, The organizational project management model (OPM3) will be helpful to evaluate the level of skills and capability of Nike to implement ERP system effectively. OPM3 is the process that will be helpful to understand the current organizational experience while implementing the system. Along with this, it will also contribute in understanding the skill levels and risk level involved in the ERP system. OPM3 can help the Nike in many ways and those are as follows:
The project management office plays an important role in the implementation of ERP system in the business. The project management office is an important part of the business organization as project management enables the company the company to get success in all relevant aspects. The project management office could be very helpful for Nike at the time of implementation of ERP system. The PMO could maintain the level of trust within the team members of the company. Along with thus, PMO could be able to empower the team to make decisions, and improve the performance of team members. The PMO could use the radical ideas that could support the project team in many ways such as improving productivity and motivation. In the case of Nike, the project management office could help the company in many ways while implementing the ERP system (Scott & Vessey, 2000). The project management office could help the company in three ways i.e. pre implementation, during implementation and post implementation.
The key to successful ERP system is the proper use of project management office in the organization. By the analysis of various stages of ERP system, Nike would not face any kind of failure in the system. Project management office is very helpful in pre implementation of ERP system by comprehensive survey, efficient project management team and proper project management information.
Project management office helps in achieving business goals, provides top management support, solves problems related to production, provides effective communication, and fulfills integration system. These services could include the project performance of Nike and provide service quality that affects others. This kind of support could improve the performance of ERP implementation.
By the research of the case study, Project management methods can be used by the Nike after the implementation of ERP system. Overall planning of the system, step by step methods and principles for the business in ERP system would be able to make the ERP system successful. The ERP project in Nike could involve effective planning, monitoring and managing to achieve the set and desired goals. Along with this, this would be helpful for the benefit of the company.
One of main cause of failure of ERP system in the Nike was lack of training and teamwork among the team member of the company. Because of failure of ERP system in the business, Nike adopted project planning, business analysis including project teaming, gap analysis, business requirement planning etc. But all these processes need training for successful of ERP system. Teamwork will not be successful without proper training and team building in the company. Every team in the company has own set of skills based on knowledge and personalities of the people. The project team will implement an ERP system on a strong basis that will achieve the business goals and objectives at the set time and budget. For this, clear communication planning networks are very necessary to ensure that the cooperation between the teams is planned and understood. The training and teamwork in the company during ERP implementation is important as in the most ERP implementations, project teams bring the staff together by new hiring, present organizations and external consultants. They are new and need training to related projects. The value of training and teamwork can be able to bring many successes in to project of Nike. It can be helpful to the company to convey business solutions and meeting deadlines (Umble & Umble, 2002).
ERP outsourcing is an important and attractive option for many companies. Outsource ERP implementation could bring benefits for the company from the operational efficiency and manageable budget. To shift the whole business having ERP system thorough outsourcing, would involve day to day operations and extensive learning durations which are required for vendors. This would provide experience to the company in terms of ERP. Outsourcing would provide the companies to better administer and control in terms of cash flows and reduce large expenditure that are incurred with the general ERP implementations. Along with this, ERP outsourcing targets high software ownership and maintenance costs. Further, ERP outsourcing could be the cause of major cost cutting and provides business resources to focus on the core business aspects. Another key factor of ERP outsourcing would be the advantage of technical assistance provided by application service providers. This would be helpful to get the desired and predictable results. Apart from this, there are many other reasons, the companies adopt ERP outsourcing. Companies adopt ERP outsourcing due to lack of IT personnel skills, resistance of learning new skills and new atmosphere which are identified while implementing the ERP system. To find the right employee to perform new tasks would be helpful in reducing the costs of the required resources. To use advanced technologies in the mid-sized companies, the ERP outsourcing is very helpful (Helo, Anussornnitisarn, & Phusavat, 2008).
The implementation of ERP system and the supply chain management system at the same time provided Nike to benefit in the market. The implementation of I2 system provides better experience to the Nike in the eastern area. But, it reduces the pre building amount that is needed in the manufacturing of shoes. The reduction was around by 40 percent. Along with this, the level of inventory was also decreased from cutting the time of interval in the company. In the end, by reducing the inventory process, and cost process, the main reduction of the cost in operations took place. Although the experience of Nike many problems by implementing the supply chain management and ERP system but the supply chain management still provided many benefits to the company. Due to implementation of I2 system Nike had faced many issues. The requirements from the side of client were not found satisfactory. So, the ERP system of Nike in terms of I2 technologies was not considered as failed, but it was considered as an experiment to understand the ways by which company can get success for long term.
There are some recommendations by analyzing the case of Nike. There are some important factors of success that are should be used by the companies while starting up of project. In the starting stage, it is recommended that companies should outline a strategy for business operations such as strategy of ERP, strategy of IT, preparing the team to adapt the change, scope of the project and strategies for change management. After that, at the second stage, it is recommended that company should involve all the stakeholders in the sponsorship of selected project. This would involve identifying the issues and reducing of issues. This will be helpful for the company to maintain the support of management by keeping informed them about the project (Lorca & Andrés, 2011). Further, the third stage is the scope of the project. In this stage, it is recommended that the company has to understand the requirement of the business and then should plan the strategies which could satisfy the requirements of the company while implementing the change. Along with this, on the other hand, project tea, of the company should use the methodologies related to implementations and project tools that can be able to empower the decision taken by the project team during the implementation process. Implementing the proper and right ERP system will be helpful for the companies to get success and growth in the changing market environment. These are the guidelines that are recommended for the other business by analyzing the case of Nike ERP system implementations. By using these recommendations, other business should plan to outsource ERP implementations. Proper outsourcing of ERP implementations will be helpful to increase the capability and potential of the company in the operating market (Usmanij, Khosla, & Chu, 2013).
Conclusion
The report was basically discussed about the implementation of ERP system in the famous company, Nike. By analyzing the case of Nike, it has been analyzed that there are many organization who are implementing ERP system in their business. The organizations who are implementing the ERP system, the companies need to consider some important factors of success. There are some recommendations which are provided in the report to maintain the success by implementing of ERP system. It is analyzed by the case of Nike that after failure of ERP system and supply chain management, company should not consider the software system lightly. Company should focus on the important factors those are relevant for success of ERP system. This would be helpful for the company to understand the flaws of implementations by which company has faced failure. So, there are many lessons which can be learned by the case of Nike but the main focus of lesson is to understand the important factors of growth and success while implementing the ERP system. Along with this, the factor of management of change should be focused by the company during ERP system implementation. The case study of Nike clearly describes the success story of the company after the failure of ERP system and supply chain management. But not all the organization can face the same and positive outcome like Nike. Further, it is also found there is the important role of project management office, training and teamwork in the company during the implementation of ERP system as Every team in the company has own set of skills and teamwork will not be successful without proper training and team building in the company.
References
Amoako, G. K., (2010), Perceived usefulness, user involvement and behavioral intention: an empirical study of Enterprise Systems implementation: Computer in Human Behavior, 41, pp. 731-745
Dey, P. K., Kinch, J., & Ogunlana, S.O., (2007), ‘Managing risk in software development projects: a case study’, Industrial Management & Data Systems, 107(2), pp. 284-303
Helo, P., Anussornnitisarn, P., & Phusavat, K. (2008), Expectation and reality in ERP implementation: Consultant and solution provider perspective. Industrial Management & Data Systems, 108(8), 1045-1059
Koch, C., (2004), Nike Rebounds: How (and why) Nike Recovered from Its Supply Chain Disaster, accessed on 23rd January 2017 from https://www.cio.com/article/2439601/supply-chain-management/nike-rebounds–how–and-why–nike-recovered-from-its-supply-chain-disaster.html
Laudon, J., & Laudon, K., (2010), A New Supply Chain Project Has Nike Running for Its Life. In Essentials of Management Information Systems: Managing the digital firm, (6th), Pearson Education
Lorca, P. & Andrés, J., (2011), Performance and Management Independence in the ERP Implementations in Spain: a Dynamic View. Information Systems Management, 28, 147–164
Motiwalla, L.F., & Thompson, J. (2012), Enterprise Systems for Management, (2nd), Pearson Education
Scott, J. E., & Vessey, I., (2000), Implementing enterprise resource planning systems: The role of learning from failure: Information Systems Frontiers, 2(2), 213-232
Shehab, E., Sharp, M., Supramaniam, L., & Spedding, T. A., (2004), Enterprise resource planning: An integrative review: Business Process Management Journal, 10(4), 359-386
Umble, E. J., & Umble, M. M., (2002), Avoiding ERP implementation failure: Industrial Management, 44(1), 25-33
Usmanij, P. A., Khosla, R. & Chu, M. T., (2013), ‘Successful product or successful system? User satisfaction measurement of ERP software’: Journal of Intelligent Manufacturing, 24(6), pp. 1131-1144
Discuss about the Involvement and Behavioral for Enterprise Systems Implementation.
The ERP system is the backbones of information system in a company in every business areas. With this, the supply chain management in the organization also improves the values of ERP system in the business. The presence of ERP systems in the business is very helpful to exchange the important information. Along with this, it encourages the communication between every department in the organization. This is an individual device system which has aim to serve everybody with identifying specific needs. Every module in the ERP system has different way of working and performs with the particular functions of data processing. ERP system is the very important part for the growth and success of every organization. if the system is implemented in the proper manner, it connects with every area of the company such as human resources, managing orders, distribution of external suppliers, manufacturing process, and consumers. This system is very helpful to share the important data with everyone (Koch, 2004). This report will focus on the implementation of ERP system and the reason of the failure of ERP system in Nike. Along with this, the report will also discuss the problems in the supply chain management of Nike which was the main reason of failure of ERP system in the business. This report will also describe the role of training and teamwork for the success of Nike in the market. The report will provide the recommendations to help other organizations having same business to understand and learn the lessons from the failure of Nike (Laudon, & Laudon, 2010).
Nike is the famous company across the world which manufacturers the high quality sport shoes for different sports such as football, athletics, volleyball etc. along with this, company is also involved in the manufacturing the fitness equipments and sports equipments such as caps. This company is very famous due to its developments and high commitments with the innovative products. Nike should adopt organizational project management maturity model in its business operations. The company should consider this type of model to address the change and maintain the process for implementation system. There are many reasons to adopt this model (Motiwalla, & Thompson, 2012).
In the year 2000, Nike had implemented a unique management of supply chain in its business. The aim of the company by implementing the supply chain management was to meet quickly with the requirements of the customers. Although, company was already involved with the SAP ERP system in implementation process but at the particular situation, the forecast demand was not sufficient for the requirements. So, the company adopted a new system named I2 to respond quickly with the change in the shoe market. But there were many issues with that system by which company has to face downfall in its revenue. The software I2 was made to help the company to match the demand and supply in the company in terms of manufacturing of products. The software needed to be connected with the different ERP system in the company but it failed. The company had responsibility of new project and that was to fulfill the requirements of manufacturing such as rubber, canvas, and other sports requirements but the I2 system failed to fulfill it. So, there was a need to implement organizational project management maturity model in Nike to address the requirements in the new project (Amoako, 2010).
For identifying the problems of demand planning system of Nike, The organizational project management model (OPM3) will be helpful to evaluate the level of skills and capability of Nike to implement ERP system effectively. OPM3 is the process that will be helpful to understand the current organizational experience while implementing the system. Along with this, it will also contribute in understanding the skill levels and risk level involved in the ERP system. OPM3 can help the Nike in many ways and those are as follows:
The project management office plays an important role in the implementation of ERP system in the business. The project management office is an important part of the business organization as project management enables the company the company to get success in all relevant aspects. The project management office could be very helpful for Nike at the time of implementation of ERP system. The PMO could maintain the level of trust within the team members of the company. Along with thus, PMO could be able to empower the team to make decisions, and improve the performance of team members. The PMO could use the radical ideas that could support the project team in many ways such as improving productivity and motivation. In the case of Nike, the project management office could help the company in many ways while implementing the ERP system (Scott & Vessey, 2000). The project management office could help the company in three ways i.e. pre implementation, during implementation and post implementation.
The key to successful ERP system is the proper use of project management office in the organization. By the analysis of various stages of ERP system, Nike would not face any kind of failure in the system. Project management office is very helpful in pre implementation of ERP system by comprehensive survey, efficient project management team and proper project management information.
Project management office helps in achieving business goals, provides top management support, solves problems related to production, provides effective communication, and fulfills integration system. These services could include the project performance of Nike and provide service quality that affects others. This kind of support could improve the performance of ERP implementation.
By the research of the case study, Project management methods can be used by the Nike after the implementation of ERP system. Overall planning of the system, step by step methods and principles for the business in ERP system would be able to make the ERP system successful. The ERP project in Nike could involve effective planning, monitoring and managing to achieve the set and desired goals. Along with this, this would be helpful for the benefit of the company.
One of main cause of failure of ERP system in the Nike was lack of training and teamwork among the team member of the company. Because of failure of ERP system in the business, Nike adopted project planning, business analysis including project teaming, gap analysis, business requirement planning etc. But all these processes need training for successful of ERP system. Teamwork will not be successful without proper training and team building in the company. Every team in the company has own set of skills based on knowledge and personalities of the people. The project team will implement an ERP system on a strong basis that will achieve the business goals and objectives at the set time and budget. For this, clear communication planning networks are very necessary to ensure that the cooperation between the teams is planned and understood. The training and teamwork in the company during ERP implementation is important as in the most ERP implementations, project teams bring the staff together by new hiring, present organizations and external consultants. They are new and need training to related projects. The value of training and teamwork can be able to bring many successes in to project of Nike. It can be helpful to the company to convey business solutions and meeting deadlines (Umble & Umble, 2002).
ERP outsourcing is an important and attractive option for many companies. Outsource ERP implementation could bring benefits for the company from the operational efficiency and manageable budget. To shift the whole business having ERP system thorough outsourcing, would involve day to day operations and extensive learning durations which are required for vendors. This would provide experience to the company in terms of ERP. Outsourcing would provide the companies to better administer and control in terms of cash flows and reduce large expenditure that are incurred with the general ERP implementations. Along with this, ERP outsourcing targets high software ownership and maintenance costs. Further, ERP outsourcing could be the cause of major cost cutting and provides business resources to focus on the core business aspects. Another key factor of ERP outsourcing would be the advantage of technical assistance provided by application service providers. This would be helpful to get the desired and predictable results. Apart from this, there are many other reasons, the companies adopt ERP outsourcing. Companies adopt ERP outsourcing due to lack of IT personnel skills, resistance of learning new skills and new atmosphere which are identified while implementing the ERP system. To find the right employee to perform new tasks would be helpful in reducing the costs of the required resources. To use advanced technologies in the mid-sized companies, the ERP outsourcing is very helpful (Helo, Anussornnitisarn, & Phusavat, 2008).
The implementation of ERP system and the supply chain management system at the same time provided Nike to benefit in the market. The implementation of I2 system provides better experience to the Nike in the eastern area. But, it reduces the pre building amount that is needed in the manufacturing of shoes. The reduction was around by 40 percent. Along with this, the level of inventory was also decreased from cutting the time of interval in the company. In the end, by reducing the inventory process, and cost process, the main reduction of the cost in operations took place. Although the experience of Nike many problems by implementing the supply chain management and ERP system but the supply chain management still provided many benefits to the company. Due to implementation of I2 system Nike had faced many issues. The requirements from the side of client were not found satisfactory. So, the ERP system of Nike in terms of I2 technologies was not considered as failed, but it was considered as an experiment to understand the ways by which company can get success for long term.
There are some recommendations by analyzing the case of Nike. There are some important factors of success that are should be used by the companies while starting up of project. In the starting stage, it is recommended that companies should outline a strategy for business operations such as strategy of ERP, strategy of IT, preparing the team to adapt the change, scope of the project and strategies for change management. After that, at the second stage, it is recommended that company should involve all the stakeholders in the sponsorship of selected project. This would involve identifying the issues and reducing of issues. This will be helpful for the company to maintain the support of management by keeping informed them about the project (Lorca & Andrés, 2011). Further, the third stage is the scope of the project. In this stage, it is recommended that the company has to understand the requirement of the business and then should plan the strategies which could satisfy the requirements of the company while implementing the change. Along with this, on the other hand, project tea, of the company should use the methodologies related to implementations and project tools that can be able to empower the decision taken by the project team during the implementation process. Implementing the proper and right ERP system will be helpful for the companies to get success and growth in the changing market environment. These are the guidelines that are recommended for the other business by analyzing the case of Nike ERP system implementations. By using these recommendations, other business should plan to outsource ERP implementations. Proper outsourcing of ERP implementations will be helpful to increase the capability and potential of the company in the operating market (Usmanij, Khosla, & Chu, 2013).
Conclusion
The report was basically discussed about the implementation of ERP system in the famous company, Nike. By analyzing the case of Nike, it has been analyzed that there are many organization who are implementing ERP system in their business. The organizations who are implementing the ERP system, the companies need to consider some important factors of success. There are some recommendations which are provided in the report to maintain the success by implementing of ERP system. It is analyzed by the case of Nike that after failure of ERP system and supply chain management, company should not consider the software system lightly. Company should focus on the important factors those are relevant for success of ERP system. This would be helpful for the company to understand the flaws of implementations by which company has faced failure. So, there are many lessons which can be learned by the case of Nike but the main focus of lesson is to understand the important factors of growth and success while implementing the ERP system. Along with this, the factor of management of change should be focused by the company during ERP system implementation. The case study of Nike clearly describes the success story of the company after the failure of ERP system and supply chain management. But not all the organization can face the same and positive outcome like Nike. Further, it is also found there is the important role of project management office, training and teamwork in the company during the implementation of ERP system as Every team in the company has own set of skills and teamwork will not be successful without proper training and team building in the company.
References
Amoako, G. K., (2010), Perceived usefulness, user involvement and behavioral intention: an empirical study of Enterprise Systems implementation: Computer in Human Behavior, 41, pp. 731-745
Dey, P. K., Kinch, J., & Ogunlana, S.O., (2007), ‘Managing risk in software development projects: a case study’, Industrial Management & Data Systems, 107(2), pp. 284-303
Helo, P., Anussornnitisarn, P., & Phusavat, K. (2008), Expectation and reality in ERP implementation: Consultant and solution provider perspective. Industrial Management & Data Systems, 108(8), 1045-1059
Koch, C., (2004), Nike Rebounds: How (and why) Nike Recovered from Its Supply Chain Disaster, accessed on 23rd January 2017 from https://www.cio.com/article/2439601/supply-chain-management/nike-rebounds–how–and-why–nike-recovered-from-its-supply-chain-disaster.html
Laudon, J., & Laudon, K., (2010), A New Supply Chain Project Has Nike Running for Its Life. In Essentials of Management Information Systems: Managing the digital firm, (6th), Pearson Education
Lorca, P. & Andrés, J., (2011), Performance and Management Independence in the ERP Implementations in Spain: a Dynamic View. Information Systems Management, 28, 147–164
Motiwalla, L.F., & Thompson, J. (2012), Enterprise Systems for Management, (2nd), Pearson Education
Scott, J. E., & Vessey, I., (2000), Implementing enterprise resource planning systems: The role of learning from failure: Information Systems Frontiers, 2(2), 213-232
Shehab, E., Sharp, M., Supramaniam, L., & Spedding, T. A., (2004), Enterprise resource planning: An integrative review: Business Process Management Journal, 10(4), 359-386
Umble, E. J., & Umble, M. M., (2002), Avoiding ERP implementation failure: Industrial Management, 44(1), 25-33
Usmanij, P. A., Khosla, R. & Chu, M. T., (2013), ‘Successful product or successful system? User satisfaction measurement of ERP software’: Journal of Intelligent Manufacturing, 24(6), pp. 1131-1144
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