Critical Review and Analysis
Assignment 3 requires you to read and analyse a case study from the textbook: Case 9-2 Real-World Case: Nike ERP Implementation on page 261, Chapter 9, Motiwalla & Thompson 2012. The case study is also attached in the Assignment 3 package that you can download from the study desk. As part of the critical review and analysis of this case study, you are encouraged to find out more about Nike ERP failure and success stories regarding its supply chain management on the Internet –Nike story is a widely popular case study on ERP implementation. The original story is published here: http://www.cio.com/article/2439601/supply-chain-management/nike-rebounds–how–and-why–nike-recovered-from-its-supply-chain-disaster.html After a critical review of the case study, you need to produce a report based on the case study to discuss and present findings from your critical evaluation of the case study and your understanding of the concepts from the course readings. Case Study Report 70 marks Report Structure and Presentation 5 Your report should include a title page, Table of Contents (including List of Tables and List of Figures if applicable) and Appendices. Note: Make sure to state your name and student number in the report on the title page. State the word count of the report (Introduction to Conclusions & Recommendations) Report Letter of Transmittal, Executive Summary and Introduction 5 (Introduction – approx. 250 words) Your report should include a letter of transmittal, executive summary, and introduction to the report. Report Section 1 – Nike ERP implementation failure (approx. 600 words) 10 Nike chose to implement i2’s demand forecasting and supply chain management software ($40 million) along with CRM and ERP from SAP ($360 million). The demand planning system and supply chain management software was implemented first. The problems began with the factory orders, and then the glitch moved through the product delivery system. The result, Nike ended up with shortage of high demand models and an overstock of unpopular shoe models. The excess inventory was discounted drastically and distributed through Nike’s outlet stores. The impact, in June 2001, Nike announced that it expected its earnings for the quarter to fall by one-third. The case study highlights that Nike did not properly assess if it is ready to manage and integrate the ERP implementation projects. Do you think Nike should have considered an organisational project readiness framework such as OPM3 (organizational project management maturity model) to assess its readiness to manage and integrate projects for its ERP implementation? Justify your choice. Using OPM3 or alternative assessment frameworks that you may choose, discuss how could such framework have helped to identify the problems with Nike’s demand planning system? Report Section 2– Project Management, Training, Teamwork (approx. 700 words) 15 Nike’s ERP implementation case study highlights one of the significant ERP failures as well as an exemplary case of learning from the mistakes. Nike applied the lessons learned and the further ongoing ERP implementation was successful. Since Nike adopted a phased implementation after its failure, this allowed for project planning, business and operation analysis including gap analysis, Business Process Reengineering (BPR) and business requirement mapping, project teaming, proper data conversion, and end user training to be carried out more smoothly. ERP implementation of such a large scale like Nike’s requires effective project management across a lot of staff from several departments, both internal and external to the business. What role could have the Project Management Office (PMO) played in the final success of the ERP implementation project at Nike? Discuss the role of training and teamwork for the eventual success of the Nike ERP implementation project. Report Section 3 – ERP Outsourcing (approx. 700 words) 15 We learnt from the aftermath of the case study that Nike blamed i2’s demand-planning software for the disappointing results following the implementation. Nike claimed the software was too slow, did not integrate well, had some bugs, and Nike’s planners were inadequately trained on how to use the system before it went live. I2 claimed that Nike did not follow their implementation guidelines, methodology, and templates. Both companies felt the financial impact of the unsuccessful implementation. When the dust settled Nike’s stock dropped nearly 20% and i2’s stock fell 22% the same day. These types of vendor blame game is very common in outsourcing when a company sub-contracts its business processes or functions to another company. Nevertheless outsourcing in ERP solutions is becoming more and more popular akin to other areas of IT. What are the key rationales for a business to outsource ERP implementation? Based on Nike’s case study findings, what are the guidelines that you can recommend for other businesses should they plan to outsource ERP implementation? Report: Conclusions (approx. 250 words) 5 Your report should include a separate conclusions section. • Conclusions provide a summary of your key findings from the body of the report. Report: Referencing and Appropriateness of Sources 5 References are required and the Harvard AGPS standard of referencing must be used. This standard is detailed on USQ Library Site <http://www.usq.edu.au/library/referencing>. Ensure that your reports are fully referenced, including any reference to the text book. Your report should include in-text references and a List of References. Do not repeat verbatim large slabs of information from other sources such as the text – you must put the ideas/information in your own words. You must use at least eight (8) academically sound sources other than the textbook in completing this report. Note: the word count does not include letter of transmittal, executive summary, references or appendices. Report: Appendix 1 Journal 10 Prepare a journal that records your activities and research related to completing the case study report. In date order, clearly list the following: • Date of research & project activity • Full description of activity / discussion • Time duration of the activity • Web sites or resources visited to collect information Submit this journal as Appendix 1 in the Report. Any references to web pages and online documents, such as white papers, should be listed at the end of the Journal.