Nike Inc. (Nike) is another example of an organisation that failed to successfully implement a new ERP system due to the lack of importance placed on critical success factors. Nike is the largest manufacturer of athletic shoes, apparel and other sports equipment in the world. Nike employs more than 44,000 people worldwide and in 2012 alone their revenue topped 24 billion US dollars (Jeng & Dunk, 2013). A company the size of Nike would obviously see serious financial implications if an ERP system wasn’t successfully implemented, and in 2000, that’s exactly what happened. Nike decided to go ahead and implement an ERP system designed by i2 Technologies that would streamline communications with buyers and suppliers and lower operating costs (Jeng …show more content…
An E-enterprise can offer an organisation improved productivity, improvements to customer service, effective competitiveness, reduce costs and streamline business processes. Using the internet and World Wide Web services, companies can implement supply chain and customer relation management capabilities, to enable them to link their operations and actions with suppliers and customers (Sharma, Lavania, & Gupta, 2011). Not only can an e-enterprise take care of its own internal supply chain management, it can also enable businesses to establish the value chain throughout the market and across industries. Furthermore, an E-enterprise can enable efficient communication and collaboration with customers in real time via the web (Sharma, Lavania, & Gupta, …show more content…
To align the ERP with an E-enterprise, organisations must take into account critical success factors including business processes, people, technology and the organisation (Sharma, Lavania, & Gupta, 2011). For example, an E-enterprise will enhance the existing value chain as it can cross company borders, to allow effective collaboration and flow of information. With the introduction of an E-enterprise, the lines between technology and business begin to blur, for this reason, people who are specifically trained with a technical or business background, need to be cross trained in other areas. Project management plays a vital role in an E-enterprise, due to projects having very short life cycles. This is caused by forever changing technology, at a very rapid pace which can cause the organisation and the implemented ERP to become distant and not aligned (Sharma, Lavania, & Gupta,
This paper addresses the issues being faced by the ERP Systems, how the problem was approached and led the search for answers to the achievement of the objectives. The subsequent are the queries that have been addressed in this research.
Keda could not afford not to implement an ERP system if it was to retain its leadership position and continue growing. Its silo-based business units often duplicated processing tasks, resulting in unnecessarily high costs. Furthermore, business decision-making and strategy were hampered by communication
The company must make sure the benefits will outweigh the costs and a serious commitment must be made to successfully implement the system. Per a study by the Meta Group, among 63 companies surveyed implementing an ERP system, the average cost was $15 million with a high of $300 million and a low of $400,000. The study also showed that it took 8 months after the system was incorporated (31 months in total) to see any benefits (Stevenson, pg.
Adam, F. and O'Doherty, P. 2000. 'Lessons from Enterprise Resource Planning Implementations in Ireland - Towards Smaller and Shorter ERP Projects', Journal of Information Technology,14(4): 305-316
Enterprise resource planning (ERP) is a centralized integrated computer system which contains various software specific programs such as, financing, distribution, human resources, and sales. During the 1990s, many organizations implemented ERPs to combine divergent and multifaceted internal and external operations (Grabski, Leech, & Schmidt, 2011). Research suggests that ERP systems and the implementation process has many positive aspects and respectively as many negative aspects. The purpose of this paper is to analyze the concept and interactions within ERP, evaluate the value of ERP in a healthcare setting, assess the impact of five major risks that Chief Information Officers (CIOs) should be aware of and be concerned of when implementing
When an ERP is done correctly, the company can enhance flexibility, profit and productivity, while eliminating cost and inefficiencies. However, not all ERP systems are
Under Amour Company ventured into a market segment that was overcrowded, it had thousands of companies that competed against each other. Out of the many companies involved in the trade, the two most formidable threats seemed to be orchestrated by Nike and Adidas. These are two giant sports apparel and footwear, which pride themselves as having been long term veterans in the industry. Nike in particular was christened as the ultimate shoe and athletic apparel company with revenues of $18.6 billion, net income of $1.9 billion and more than thirty two thousand employees globally in the year 2008. This makes it the largest athletic shoe and apparel seller in the world. This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage.
(2004). Definition and Analysis of Critical Success Factors for ERP Implementation Projects (Doctoral thesis). Universitat Politècnica de Catalunya, Barcelona.
Supply chain management is an important part of any business, therefore, it has to be managed effectively and if a business can manage its supply chain in a better way than its rivals then its market share will grow even more. The revolution of the internet has affected supply chain management methods and e-Business was among one of the effects of the internet revolution. According to Laudon & Laudon (cited in León-Peña 2008) supply chain management can employ e-business concepts and the technology advancements in all steps of the business cycle, from collecting the required materials to product design, shipping, to warehousing until the ...
The aim of this project is to highlight the product by considering the objectives of marketing and communication. Sports shoes are the most common shoes used as regular basis. These kinds of shoes are meant for running, exercise, walking .Sports shoes are commonly known as: running shoes and athletic shoes. Due to a great competition in the market of Sports shoes, Marketers are providing modified sports shoes as per requirements of customers.
The main disadvantage of the ERP systems is the installation and implementing process and cost. The implementation process costs an arm and leg. Small businesses would not afford it at all. The second drawback is the long processing time of implementing the systems overall. Summarizing the drawbacks of the ERP systems can be listed below:
ERP systems are designed to enhance organization’s competitiveness by upgrading an organization’s ability to generate timely and accurate information throughout the enterprise and its supply chain. A successful ERP system implementation can shorten production cycles,increa...
Nevertheless, Nike is an extremely diverse company with outstanding organizational structure, impressive marketing strategy, and innovative products. The organizational structure of the Nike Corporation helped them become a leading innovator for the world with creative apparels and shoes. Their intelligent marketing strategies assist them in advertising their products to motive their customers and sell them. Their innovative product motivates customers with great performance footwear and quality designs to take on any obstacles. The Nike Corporation discovers various ways to improve their organizational structure to inspire the world.
The purpose of implementing an ERP system in a company is when the company isn’t operating efficiently. Look at it like this, when your body is sick, you know you need to take medicine, you just can’t stand the taste. And in the same matter when your company isn’t operating efficiently, you’ve got to take steps to correct it. Most companies just fear the disruption, the learning, and the cost and the inconvenience of it all. “Another way to look at or understand ERP is cars have dashboards so the driver can get to where he or she wants to go. Airports have control towers to make sure everything and everyone gets to where they need to be. All of your typical individual machines have control panels so you can make them do what they are supposed to do”. (Jones, W (2006, 01). Roadmap to Fusion: Engaging Oracle Consulting on the path to your next business platform. Orcacle Corporation World Headquarters,)
E-business and e-commerce are terms that are sometimes used interchangeably, and sometimes they are used to differentiate one vendor’s product from another. In both cases, the e stands for "electronic networks" and describes the application of electronic network technology - including Internet and electronic data interchange (EDI) - to improve and change business processes (Bartels, 2000)