What were the three primary reasons nike was successful with the ongoing erp implementation?

Discussion Questions

1. Discuss the need to have a strong rationale for moving from a legacy system to an integrated ERP system.

ERP implementation projects generally mean fundamental changes to an organisation; this includes fundamental changes in procedures and processes, job functions, and primarily in the bottom line. So to moving from a legacy system to an integrated ERP system it often results of an organisation conducting a Business Process Reengineering (BPR). Which to classifying and recording organisational changes, BPR sets the stage for the implementation. As BPR capable to set the high-level goals and project implementation scope which it consider being one of the best methods for determining the need to move to an ERP system. Although BPR is used to measure the organisational process change needed, the Organisational Project Management Model (OPM3) will evaluate the company’s level of skills and capability to implement an ERP system successfully.  OPM3 is a process that will help in understanding the current organisational experience in implementing systems, it will also contribution in understanding the implementation skill level and hence the level of risk involved in the implementation.

1. Describe the steps involved in business process re-engineering and how they are closely linked to ERP implementation.
2. Preparation – in the case of an ERP implementation, the purposes included in the scope must also be recognized. In relation to the goals, throughout the preparation phase the implementation teams should discourse goals that need to be made along with an intricate and wide communication plan.
3. Define the “as is” process and evaluate cross-organisational issues – there need to be clearness around decision points for who is responsible and why, and the team need to advance a sense of timing for each process.

• Map out “to be” processes based on best practices – this phase must discourse timing of processes and the changes needed to meet the original set of goals. If the ERP system is already purchased, then this phase must report the existing ERP system functionality and how the changed processes will work with the system. If the system is not purchased, then the defined processes should be used to compare systems on the market for an organisational match.

1. Testing and Measurement new processes based on meeting goals and vision – this process often classifies additional improvements that can be made. If the system is already purchased, then this can be skilful with a test system formation. If the ERP is not purchased, then the teams must progress a methodology that will either walk them through the processes or have the vendors set up a test system that will help to authenticate the new business processes.
2. Re-evaluation – this phase does carry back to the discussion of transforming the system or regulating the business process, communicating expectations, and general governance.

1. Discuss how project accountability is created within the project and within the company.

Beyond BPR and OPM3, the project organisation and roles and responsibilities will start to bring the project into clearness for the business. With ERP implementations, the senses of team need to be something that is addressed early and quickly on a project and will need to be worked on all the way through the implementation. The OPM3 methodology or a methodology will help to classify how project accountability is created like it helps organisations recognize and bring the right projects to advance their strategy, so organisational will be able to support projects and select only project that will deliver business results.

Review Questions

1. Why is BPR important in an ERP implementation?

BPR is often used as the purpose to move from legacy systems to an integrated ERP and are designed to meet company goals and vision. BPR will classify process and procedural changes to modernize the business and they recognize best business practices that can create industry advantages. In addition to identifying and recording organisational changes, BPR sets the stage for the implementation. However BPR is one of the best methods for decisive the need to move to an ERP system and set the high-level goals and project implementation scope as BPR can support company for realizing a current purchased ERP system and it capable to automating current manual or error-prone processes which can help company improving service to customers. It also help company decreasing cost, addressing accountability, leading e-Procurement, contributing in or conducting e-marketplaces and restructuring current processes to decrease time to market.

1. What is the role of the project management office in an ERP implementation?

The project management office (PMO) in an ERP implementation must concentration on the implementation, it must also discourse the critical success factors on a regular basis as they relate to the decision process, project scope or changes to scope, teamwork, and communications with the team and executives. The PMO have to make sure that project teams are moving onward, so their role is to continue assess risks, cope with short of the resources, and be susceptible to new issues arising that may cause delays. The PMO must manage the risks involved in a project implementation to be successful. The PMO needs to be sure that management is notified and up to date on the project status. This will ensure that the project remain on schedule and within budget like an example of make sure that teams are working together and moving through the implementation methodology. The PMO role in the area of monitors the critical success factor and the length of the project is to manage prospects regularly and to communicate project progress responsively and fairly.

1. Why is change management critical to the success of a project from the beginning?

Change management is the progression of developing a planned approach to change in an organisation. The purpose is especially to maximise the cooperative benefits for all people involved in the change and to minimize the risk of failure of implementing the change. As system failures frequently arise when the attention is not dedicated from the beginning stages which change management must has a visualization to be expressed from the first stage and then reviewed, monitored, and implemented on a continuous basis. So once company plan to start a new project or develop new ERP system, change management will assistance to implementation team on all activities of change management to let them know of what processes need changing, customization of business rules in ERP software, input screen design, report design, and training and communications plan for the end users affected by the new system. Moreover supports of the top management are necessary for successful implementation that has to start from the beginning as well because without any support the project cannot completely achieve the goals and success in an implementation.

Case Questions

1. How could OPM3 have helped to identify the problems with implementing the demand planning system?

• OPM3 can help Nike to classify and bring the right projects to advance their strategy which organisation can use their inputs to arrange projects across operations and select only the projects that will deliver business results. As Nike when plan to implemented new system they didn’t use any inputs of their information, so they didn’t select the right project for their organisation which it turn out with a number of problems.
• OPM3 can help organisation align its strategy with the projects that bear business success. It will guides Nike on when to stay the course and when to change direction, according to when they implemented new system they didn’t consider and recognise that the single-instant ERP system and supply chain implementation plan are different. So OPM3 will help Nike to notify that it is the time to implement new system or not.
• OPM3 will guide Nike to improve any performance that may cause them a problem in future as it will keep projects associated to business strategies. According to system testing was not planned and not real enough to find issue, OPM3 will be able to help Nike to improve which performance that is very poor and can cause any failure of the project.

1. What were the three primary reasons Nike was successful with the ongoing ERP implementation?
2. The overall business plan for all the systems and explanations for taking on such a extremely complex implementation were well understood throughout the company. Thus, Nike had excellent buy-in for the project and was capable to make change in its demand planning system and continue with the implementation.
3. Nike displayed patience in the implementation and learned from mistakes from their past and once when they consider any risk that will arise which it seem to be a double mistake same as past again then they will look at it and improve it early in the process.

• Customer service representatives received 140-180 hours of training from Nike, and users were locked out of the system until they completed the full training course which they will completely understand everything organisation want them to know. They also will have enough skills to use the system effectively.

1. Why was a phased rollout the correct decision for Nike?

Because Nike developed a business plan to implement the systems over a six-year period, so they want a very effective system that suits their organisation and once when they found the right one for them, they can implement it and fix any problem that can cause system failure. Moreover Nike can try multiple ERP systems which they will see in each system’s benefit (is the benefit they earn value to what they spend and not over budget), effective of that system (how does it help organisation to improve performance), any problem that may cause them (does it need many resources to complete system or any problem that will cause system and organisation to fail).

Reflect

1. If an organisation has business processes that do not match any commercially available ERP, should the organisation adopt an ERP? Provide factors for and against and suggest other possible considerations that would factor in your reasoning.

In my opinion organisation does not need to adopt a new ERP because organisation can modifying business processes to match the system.  As to modifying it, it can help organisation achieve a goals easier as many process models nowadays also include information regarding the involved data, actors (either human resources or machines) and possibly other things such as external stakeholders or performance metrics, as well as goals that define the purpose of a process may also be included in a business processes which same as ERP software that capable to show company of a goals they want to achieve (Rosemann, Recker & Flender (2008)). However if organisation focusing on Information Technology (IT) in business processes, so just change business processes especially in IT function rather than customizing new ERP software, this IT business processes, will definitely enabled multiusers operations in the business environment by facilitated more efficient operations. Moreover the adoption of an IT business processes not only enabled changes in the job routine itself but may also lead to organisation transformation (Chan 2000).

Compare to modifying business processes, if organisation adopt new ERP there are one very high risk that most of company don’t know which is company must know that legacy data cannot always be converted for ERP system, as organisations usually have a plethora of data in legacy systems. Which if company already change and found out the problem that can rise is this data might not be compatible with the new ERP system and if legacy systems are not integrated, and organisation might be faced with having data that represents multiple versions of the truth (Grossman & Walsh 2004).

1. Post an entry to your blog that answers the following questions:

• What was the most difficult assessment item you completed so far in COIS12073 this term?

Assignment number 3 (case study)

• What was difficult about it and how would you suggest it could be improved?

I am not very good at find many resources and list all the references. However I am not a person that love reading journal because sometime it very hard to understand and explain it in only one paragraph, and the major thing is that make it harder in this assignment is to let all spelling and grammas correct.

To improve this weaknesses I will try to learn and practice more about spelling and grammas and try to make it right, also I will spend more time to read journal and other stuffs that may relate to the subject to help me more understand of what I have to done and I can learn more words from it as well.

• If you could provide three (3) pieces of advice to a student who will be doing this course next term what would they be?

1. Learn and read a lot of resources not just only what you learn in class and from your material but you have to learn from another where else as well like another textbook from library or take another course that may relate to this subject to help you more understand about the topic and subject you study.
2. Spend some spare time to discuss with your friend or your lecture/tutor in class about any problem or question you have to help yourself understand in what you don’t know. As well as discuss anything that might relate to what you study to gain more experience from the other and take that to improve in what your weaknesses are.

• Post any question or problem that you have in a discussion forum of your course or moodle website as well as send email to your course coordinator or lecture/tutor. I’m pretty sure that not just only your course coordinator will answer your question but student from another campus or within your campus will also answer your question as well and then you can solve the problem out together at the same time.

• How will you be able to use this knowledge/these skills in your future career?

I can use this communication skills to help me improve my work like I can discuss with my manager or my colleagues in the workplace to let them provide feedback of any performance that I need to improve and maybe discuss about experiences of each person of how to do well in the workplace and then take that knowledge to apply to my performance of working and improve it in better way.

As well as learn from another place else not just only from workplace I may work in the future and I can gain and learn more skills from another people, so I can take that as an experience to improve my skills of working.

References

Chan, SL 2000, ‘Information technology in business processes’,  Business Process Management Journal, vol. 6, no. 3, pp. 224-237.

Grossman, T & Walsh, J 2004, ‘AVOIDING THE PITFALLS OF ERP SYSTEM IMPLEMENTATION’, Information Systems Management’, vol. 21, no. 2, pp. 38-42.

Motiwalla, LF & Thompson, J 2012, Enterprise Systems For Management, 2nd edn, Pearson Education, Upper Saddle River, New Jersey.

Rosemann, M, Recker, J & Flender, C 2008, ‘Contextualisation of Business Processes’, International Journal of Business Process Integration and Management, vol.3, no.1, pp. 47-60.