Nike was founded in 1964 by Bill Bowerman and Phil Knight in Beaverton, Oregon. It began as Blue Ribbon Sports (BRS). In 1972, BRS introduced a new brand of athletic footwear called Nike, named for the Greek winged goddess of victory.
The company employs 26,000 staff around the world with revenues in fiscal year 2005 of $13.7 billion. It has facilities in Oregon, Tennessee, North Carolina, and the Netherlands with more than 200 factory stores, a dozen Nike women stores, and more than 100 sales and administrative offices.
Its subsidiaries include Cole Haan Holdings, Inc., Bauer Nike Hockey, Hurley International LLC, Nike IHM, Inc., Converse Inc., and Execter Brands Group LLC. As of May 31, 2004, manufacturing plants included Nike brand, with 137 factories in the Americas (including the United States), 104 in EMEA, 252 in North Asia, and 238 in South Asia, providing more than 650,000 jobs to local communities.
Objective
Nike grew from a sneaker manufacturer in the early 1970s to a global company selling a large number of products throughout the world. Nike’s sneaker supply chain was historically highly centralized. The product designs, factory contracts, and delivery are managed through the headquarters in Beaverton, Oregon. By 1998, there were 27 different and highly customized order management systems that did not talk well to the home office in Beaverton, Oregon. At that time Nike decided to purchase and implement a single-instance ERP system along with supply chain and customer relationship management systems to control the nine-month manufacturing cycle better, with the goal being to cut it down to six months.
Plan
The company developed a business plan to implement the systems over a six-year period, with multiple ERP rollouts over that time. The plan called for the implementation of the demand planning system first while working through the ERP system and supply chain implementation.
Implementation
The demand planning system was implemented first for reasons that made a lot of sense. The total number of users was small in comparison to the ERP system and was thought to be relatively easy to implement; however, this turned out not to be the case. When the system went live, there were a number of problems related to the software, response time, and data. In addition, training was not adequately addressed, causing the relatively small number of end users to use the system ineffectively. The single-instance ERP system and supply chain implementation plan differed from the demand planning system and called instead for a phased rollout over a number of years.
The ERP system implementation went much more smoothly. Nike started in 2000 with the implementation of the Canadian region, a relatively small one, and ended with the Asia-Pacific and Latin America regions in 2006, with the United States and Europe, Middle East, and Africa in 2002. This included implementing a single instance of the system, with the exception of Asia-Pacific, and training more than 6,300 users.
The total cost of the project as of 2006 was at $500 million—about $100 million more than the original project budget.
Conclusion: What was Learned?
The demand planning system interfacing to legacy data from a large number of systems that already did not talk well with each other was a root cause for misinformation and resulted in inadequate supply planning.
The demand planning system was complex, and end users were not trained well enough to use the system effectively.
System testing was not well planned and “real” enough to find issues with legacy system interfaces.
The overall business plan for all the systems and reasons for taking on such a highly complex implementation were well understood throughout the company. Thus, Nike had exceptional “buy-in” for the project and was able to make adjustment in its demand planning system and continue with the implementation. The goal was to ensure business goals were achieved through the implementation, and not so much to get the systems up and running.
Nike exhibited patience in the implementation and learned from mistakes made early in the process.
Training was substantially increased for the ERP implementation. 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.
Business process reengineering was used effectively to clarify performance-based goals for the implementation.
Case Questions
1. How could 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 ongoing ERP implementation?
3. Why was a phased rollout the correct decision for Nike?
In: Operations Management
1- Why do you think Alice Chou carefully monitors the My developerWorks site?
2- What insights can she gain from the data she is collecting? propose steps.
3- Why do you think a rewards program is necessary for My developer works given that so many profiles have already been developed?
4- what is the analysis of the case? Use outside research.
5- offer a solution which best fits case facts
(Support your response using relevant IS models and frameworks.)
IBM’s award?winning developer Works site was established in 2000 as a technical resource repository for the company’s global development community. Designed to share knowledge and skills related to IBM products and other key technol- ogies, it has been a solid success. The site attracts about 4 million unique visitors a month—including students, profes- sionals, and developers from almost all the world’s countries—who search its library of 30,000 articles, demos, podcasts, and tutorials. developerWorks is available in eight languages, including Russian, Chinese, and Spanish, and about 70% of its visitors come from outside IBM. My developer Works, a social networking function, was added to the repository platform in 2009 to allow developers to connect, communicate, and collaborate on projects. Soon the network had added more than 600,000 user profiles as well as numerous blogs and forums. In addition to allowing established business, start?ups, and partners to collaborate, it has also helped users find answers to support questions that would otherwise go to IBM’s call centers and help desks, thus saving the company an estimated $100 million. Alice Chou, Director of IBM developerWorks, carefully monitored the number of My developerWorks profiles and the volume of traffic to the site. She looked at unique visitors, developer demographics, time spent on the site, and patterns of page views. She created a reward and recognition framework so that when users contributed a highly regarded article or blogpost to the site, “they got the kudos they deserve.”
In: Operations Management
What makes a good data-driven solution?
What are some implementation aspects of a successful data-driven solution?
In: Operations Management
WHAT ARE THE COMPONENTS OF Enterprise Integrated System?
In: Operations Management
Discuss the strengths and weaknesses of the different employment tests that are available. Provide details for at least three different employment tests
In: Operations Management
1. Explain how probabilities are used in budgeting and provide
an example of how a sales budget could be developed using
probabilities.
2. What may be some of the reasons a company experiences actual
sales that exceed budget sales. What might this variance reveal
about the company’s budgeting processes?
3. When might a company consider revising a budget?
In: Operations Management
Distinguish the statute of limitations for criminal versus civil liability.
In: Operations Management
Turner Construction entered into a contract to provide general construction of Granby Towers. Turner then entered into a subcontract with Universal to install precast concrete floors in the Granby Towers construction project. The general construction contract was incorporated by reference into the subcontract. The contract between Turner and Universal contained a “pay-when-paid provision” that conditioned any payments to Universal on Turner’s first receiving payment from Universal. Due to the economic downturn, financing for the project fell through. Universal had substantially completed all its work by that time, and it sought payment of $885,507 from Turner, which refused to pay because it had not received any payment from the owner of the project. Turner asked the court for summary judgment on Universal’s breach-of-contract claim. Should the court’s grant of summary judgment be upheld? Why or why not? [Universal Concrete Products v. Turner Construction Co., 4th Cir. Case No. 09- 1569 (2010).]
In: Operations Management
In 2004, real estate broker Richard Davis called an A&E television executive about partnering on a? new reality show called Flip This House. Davis said he would undertake the financial risks of purchas- ing and later reselling the real estate and he and the network would split the net profits. Davis received confirmation from the network director over the phone and later with three other executives. The network never paid Davis and claimed no agree- ment was made. The district court found on behalf of Davis, and the network appealed. The appellate court stipulated that two facts must be true to find on behalf of Davis: first, that Davis reasonably believed that an agreement was made during the phone conversations and, second, that such a belief would be made by an objectively reasonable per- son. How do you think the court decided? [Davis v. A&E Television, 422 Fed. Appx. 199, 2011 U.S. App. LEXIS 7382.]
In: Operations Management
Design an experiment to determine a robust process for making coffee..
In: Operations Management
Techniques for building employee empowerment include:
a. building communication networks that include employees.
b. developing open, supportive supervisors
c. building high-morale organizations.
d. moving responsibility from both managers and staff to production employees.
e. All of the answers are techniques for employee empowerment.
In: Operations Management
What potential sources of error might be associated with the following situations?
b. A telephone survey of big city voters finds that most respondents do not like negative political ads—that is, advertising by one political candidate that criticizes or exposes secrets about the opponent’s “dirty laundry.” Researchers conclude that negative advertising should not be used.
c. A survey accessed through Instagram produces results ranking Apple Macbooks as far superior to other PCs for business applications. A retailer decides to reduce inventory of PCs other than Macbooks.
d. Researchers who must conduct a 45-minute personal interview offer $175 to each respondent because they believe that people who will sell their opinions are more typical than someone who will talk to a stranger for free for 45 minutes. Management uses the results to adjust their services offering.
e. A company’s sales representatives are asked what percentage of the time they spend traveling, talking on the telephone, participating in meetings, working on the computer, in training, and filling out reports for management. The survey is conducted via the company’s email network. Management concludes that sales reps are not spending enough time performing selling in the field.
In: Operations Management
Negotiations Preparation Scenario:
Background: You and your spouse have received bids to renovate the second story of your “vintage” house. You have selected Busy Bee Construction Company as the contractor, who submitted a bid price of $45,000 with a project completion date of November 2nd. You have been friends with the Contractor for many years but have never conducted business with Busy Bee. You are meeting with Busy Bee on May 4th to discuss project cost, start date and schedule based upon the following data:
Scope of Work:
“Gut the second floor to the studs.”
Provide dumpster in the driveway to deposit construction debris.
Remove the existing second floor bedroom wood panel walls and plaster ceiling, install insulation material and replace walls and ceiling with drywall and wood trim.
Tear out two existing closets and build a walk-in closet and a cedar storage closet, both complete with shelving, electrical outlets and lighting.
Remove the existing bathroom tub, vanity, toilet, plaster walls, floor tile and wall tile. Rebuild sub-floor, install drywall, floor tile and wall tile around the tub. Replace plumbing, bath fixtures, tile and electrical fixtures with new items to be mutually determined.
Update electrical service to 200 amp service, install ceiling fans, and update fixtures to comply with current electrical codes. Fans to be provided by the owners.
Paint all walls and ceiling. Remove / replace wall-to-wall carpeting. Paint color and carpeting to be mutually determined. Haul away all construction debris.
Any “add-on scope” tasks will be handled via contract change orders.
Other Information:
Owners desire to keep all construction cost and change orders less than $50,000 and to have the work completed in mid-November in time for the Thanksgiving holidays.
The request for proposal identified a Cost-Plus Fixed Fee (CPFF) contract to control costs.
Busy Bee desires to keep its workers busy, to avoid any “hidden cost” surprises of a vintage home uncovered during the demolition phase, and to receive revenue by year end.
Both parties desire to maintain a pleasant business relationship and friendship.
Using the following Negotiations Preparation Template, your task is to prepare for this negotiations by discussing each of the following Strategic Negotiations Elements for both the home owners and the contractor:
Negotiation Element |
Home Owners |
Construction Contractor |
People: Parties Stakeholders |
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Relationship Current Preferred status How to improve it? |
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Issues What are we negotiating for? Any problem areas? |
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Positions: What is each side’s stated position? |
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Interests What are ours / theirs?? Other stakeholders? |
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Options: - What are some ways to satisfy each party’s interests? |
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Standards: -What applies to this contract? |
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Alternatives and BATNA What are the alternatives for each? What is ours and theirs BATNA? |
. |
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Communication: What is the process strategy and agenda? How do we deal with surprises? |
In: Operations Management
Why is company culture an important aspect to consider when working on selecting, developing and implementing a new system?
In: Operations Management
What would be the most critical crucial role that a bidder should know in terms of what's best for that bidder?
In: Operations Management