Enterprise Resource Planning of Nike - Business Plan Example

Name Tutor Title: Enterprise Resource Planning Date Course Table of Contents Table of Contents 2 Introduction 2 Business functions suitable for Enterprise resource planning at Nike 3 Data infrastructure 4 Tools and techniques for implementation of the enterprise resource planning 5 Alternative strategies for implementing enterprise resource planning 6 Techniques to monitor the enterprise resource planning 7 Enterprise resource planning systems 9 Management information 9 Supply chain management 9 Financial management 10 Implementation strategy for cloud based enterprise technology 11 Conclusion 13 References 14 Introduction Enterprise resource planning is a significant business tool that is used to link various functions within an organization for the purpose of easy management. The use of computer software is involved in the enterprise resource planning. The decision making process and the information sharing within an organization is enabled through the enterprise resource planning. This has enabled organizations to streamline most of their operations and hence easy management. The enterprise resource planning is mainly applicable in areas such as inventory management, accounting, human resource and finance (Wailes, 2006). The popularity of the enterprise resource planning has been increasing in most of the organizations due to its benefits. The streamlining of the inventory and management of the supply chain is one of the major advantages of using the enterprise resource planning. It is also possible for an organization to determine the requirements of the customer through the use of the enterprise resource planning. However, this tool also has some drawbacks which may result to serious challenges for an organization. This may lead to loses for an organization as it may end up manufacturing the products that are not required by the customers. In other instances, it may fail to balance the supply and the demand and hence affecting the performance of the organization. The paper thus discuses the enterprise resource planning in relation to Nike company which experienced some problems when implementing the enterprise resource planning. Business functions suitable for Enterprise resource planning at Nike The supply chain management is one of the most important areas that were applicable for the enterprise resource management at Nike. The supply chain management involves areas like the inventory control which was one of the areas that the company performed poorly. The failure of the company to control its inventory was directly responsible for some of the problems that faced the company. Other areas in the supply chain management also include; the supply chain planning, order to cash, and supplier scheduling. These are the most important areas that led to the challenges that affected the company. The enterprise resource planning is also applicable in the project management as applied to the case study. The management of the projects by the company was not good enough and hence exposing the company to some problems. The company had many projects that required proper management due to the limited time allocated to the projects. The project planning, project costing, activity management and performance units are important concepts of project management that can be addressed by the enterprise resource planning. The last function is the manufacturing which is the core function of the company. The concepts of manufacturing include work orders, quality control, manufacturing process and capacity. The use of enterprise resource planning is thus useful in terms of streamlining the business functions (Loh, 2004). Data infrastructure The main purpose of the data infrastructure is to connect the real time data and the transactional data. The connection between the plant floor equipment and the enterprise resource planning is important during the data management. The direct integration is one of concepts of data infrastructure. This involves the connectivity with the products being manufactured. Nike is a manufacturing company and it relies on various designs depending with the requirements of the customers. The direct connectivity therefore offers a perfect opportunity for the enterprise resource planning at the company. Database integration is also important for the company. This involves the connection of the data to the plant floor and hence enabling the direct deposition of the data to the database. This is also important during the decision making process for the company. This concept is also important in terms of enabling the flow of information within the various departments of the company. The enterprises transaction appliance module is also an important concept of entries resource planning. This enables the connection of the plant equipment and the enterprise resource planning system. The utilization of the data infrastructure is thus important for the organization in term of managing the data and hence the success of the enterprise resource planning (Head, 2005). Tools and techniques for implementation of the enterprise resource planning The implementation of the enterprise resource system may be a complex process depending on the tools and techniques used. The implantation process also requires an organization to change most of its business processes so as to accommodate the enterprise resource planning concepts. One of the most important techniques that are applicable to the Nike case study is the configuration. The configuration of the enterprise resource planning involves the balancing between the requirements of the customers and the operations of the company. Since Nike had a problem with balancing the demand and the supply of the products, this technique provides a solution to the implementation. On the other hand, the use of this method has impacts on the parameter used by the organization. The customization of the enterprise resource planning is also a technique used during the implementation stage. This technique enables the organization to incorporate its business rules to the software. This is particularly important for Nike as some of the business rules are quite unique to the organization. Modifications can also be done through the use of this technique. During the implementation some of the tools that are useful includes; web services, messaging, transactional database and management portal. The success of the implantation is also dependant on the tools and techniques used (O'Brien, 2011). Alternative strategies for implementing enterprise resource planning Alternative strategies for the implementation of the enterprise resource planning are also available and are applicable to the Nike case study. The alternative strategies are based on the factors that leads to the success of the implementation and eliminating the errors that the hinder the success of the implementation. The first strategy involves the training of the staff on the concepts of the enterprise resource planning. This is for the purpose of creating awareness among the employees and informing them of the expectations of the company. This is important in terms of avoiding misunderstandings during the implementation period. The training should also be continuous due to the ever changing technological concepts of the enterprise resource planning. This is one of the areas that were not addressed conclusively by the management at Nike. The next strategy during the implementation of the enterprise resource planning involves establishing a relationship between the business processes and the software used during the implementation of the enterprise resource planning. The management should ensure that the company is flexible and willing to make changes at any time with regard to the enterprise resource planning. Nike was not flexible enough in terms of dealing with the supply chain management and hence resulting to the problems experienced by the company. The flexibility is important in terms of dealing with the changes in the market environment (Yakovlev, 2002). An important alternative strategy during the implementation of the enterprise resource planning is to ensure that there is harmony between the marketing and the manufacturing department. Nike lacked harmony in its manufacturing and marketing departments. This led to a situation where there was a surplus in the production of the products that were least required and a shortage in the most required products. The success of the enterprise resource planning is thus dependant on the measures put in place to balance the marketing and the manufacturing. To ensure that a balance is strived, it is important to put in place performance metric measures so as to fully benefit from the enterprise resource planning. Increasing the role of purchasing is also an important strategic tactic that is applicable during the implementation of the enterprise resource planning. The company should ensure that the purchasing manners have more authority in terms of the decision making. This is important as the enterprise resource planning has a lot of impacts on the purchase. It is also important for an organization to encourage teamwork when making decisions regarding the supply chain. This is also an issue that was overlooked by Nike during the management of the supply chain. The alternative strategies therefore provides guideline for the implementation of the enterprise resource planning incase the strategies used do not work (Fryling, 2010). Techniques to monitor the enterprise resource planning The use of the continuous auditing technique is important during the monitoring of the enterprise resource planning. Through the use of the continuous audits, it is possible to detect any breakdown in the system during the implementation. This therefore presents the company with an opportunity to automatically make corrections. It is also important for the organization to ensure that the results of the audits are accurate so as to avoid making errors. The use of audits also ensures that the enterprise resource planning techniques being used by the company is updated. Through the use of the continuous audits it is possible for an organization to pit in place risk control measures as the process is being monitored. However, it is also important to note that the internal auditors should not be biased as this may impact negatively on the enterprise resource planning implementation. The continuous audits should also be I n apposition to provide an organization with the details concerning the operations of the enterprise resource planning software. It is also important to note that the concepts of the enterprise resource planning and the continuous auditing are almost similar. This should guide the organization during the monitoring process whenever any change occurs (Kraemmerand, et al, 2003). Continuous monitoring is also an important concept of the enterprise resource planning. The continuous monitoring process involves creating a feedback mechanism in terms of dealing with the operations of the company. It is thus important for an organization to ensure that it has a mechanism of determining the outcome of the strategies used. The feedback should then be used for the purpose of decision making with regard to the success of the strategies. The continuous monitoring should be the responsibility of the management and every step should be focused on making improvements. The continuous monitoring process is important in terms of establishing the risks as well as the monitoring of the performance. Although Nike had a mechanism of establishing the risks and analysis of the performance, its failure of continuous monitoring contributed to the failure of the strategies used by the company. The continuous monitoring is also important for an organization in terms of determining the areas that are more problematic or vulnerable. This is important in terms of mitigating the risks that may be posed by such areas. A manufacturing company like Nike requires continuous monitoring so s to determine the measures to put in place to combat the risks. The continuous monitoring is thus an important tool in terms of monitoring the enterprise resource planning strategies (Vilpola, 2008). Enterprise resource planning systems Management information The management information is mainly concerned with the communication within the organization. It deals with the flow of information and the management of the information systems. This also involves the flow of data within an organization. The main components of management information as applied to Nike company includes; transactional database, messaging and web services. There are also the transactional database ideals with the transactions of Nike and its database. The company has a database where information regarding the company is usually stored. This provides an important aspect of managing the information of the company. The database of an organization is important in terms of ensuring that the information is not accessed by unauthorized personnel. However it is important to note that the database of Nike is highly secured. The messaging services used by the company are important in terms of ensuring the flow of information between different departments. This makes the communication process easy for the organization and hence streamlining the enterprise resource planning concepts. The web services are important technological tool that is used for the management of information. Nike is equipped with proper web services that aid the management of information. The proper management of information is one of the factors that determine the success of the enterprise resource planning (Turban, et al, 2008). Supply chain management The components of supply chain management are critical in the operations of an organization. The supply chain of Nike Company was affected during the implantation of the enterprise resource planning and hence making its components quite useful. The plan is one of the main components of supply chain management. This involves the planning of the utilization of the resources for the purpose of meeting the demands of the customers. Although Nike had a good plan, its implementation was not good as it demonstrated the lack of patience. The source is also an important component of the supply chain management. This requires an organization to find a reliable source in terms of the supply of the raw materials. The source of supply for Nike was above average as the company was able to continue with its manufacturing. However, the problems wit the inventory had a negative impact on the supply chain of the company. The system of returning surplus products and defective products which is also a component of supply chain management was not effective. The company continued producing excess products for a long period of time and hence leading to the losses. The components of the supply chain management are important during the implementation of the enterprise resource planning (King, 2005). Financial management The financial components of an organization are important in terms of determining how the finances will be managed. Nike had a huge financial record that required proper management so as to initiate other projects successfully. Cost management is one of the most important components of financial management. The company faced some challenges due to the poor cost management. This also involves managing the spending rate of the company. A poor cost management practice leads to losses for an organization. The budgeting and costing is also a financial component that directly affected the decisions made by Nike. This process was not adequately planned and hence its effects on the enterprise resource planning. The budgeting and costing determines the amount of money allocated to various projects depending with the income of the organization. The activity based costing is also a component of financial management and it determines the amount to be allocated for a particular project. It is evident that the financial management of Nike had some shortcomings and hence its failure to support the enterprise resource system. The financial management determines the success of any project implemented within an organization (Yusuf, 2004). Implementation strategy for cloud based enterprise technology The implementation of the cloud based enterprise will b e beneficial to Nike Company. This is due to the advantages that the cloud based enterprise enjoys. The benefits are not only for the organization but the customers. However, the success of the cloud based technology depends on how it is implemented and the strategies used. The first step involves the virtualization of the servers. This process involves transforming the information systems of the organization for the purpose of properly managing the data as well as providing easy access to the database. The virtualization of the server ensures that the efficiency of the operations is increased and hence increasing the prospects of Nike. The virtualization of the server is also important in terms of reducing costs and enhancing the data center standards. The virtualization process is thus important during the implementation of the cloud based enterprise technology. All the corporate information of the company should also be captured at this stage of the implementation. The manual data of the company should also be captured so as to ensure that all the data of the company is found in the database. This stage should be done carefully by experts so as to avoid the chances of leaving out important information (Stackpole, 2012). The next strategy that should be employed by Nike involves the cleansing and the entitlement of the data. This process ensures that the data being used is accurate and is able to support the cloud computing process. The verification of all the data will be required at this point. The financial data, human resource data and the supply chain management data will be required at this point. The supply chain data is important for the company at this point as it was responsible for the problems that faced the company. The cleansing process also involves the correction of any errors that may have affected the data. This is for the purpose of ensuring that the clients will be able access data that is free of any errors. The cloud enterprise technology is for the purpose of ensuring that the operation s o the company is made easier. With the availability of accurate data, the company will be able to make accurate transactions which will not inconvenience the customers or the company. The cloud enterprise technology will also solve the problems that the company faced during the implementation of the enterprise resource planning. This step during the implementation is thus important for the company as it plays a major role towards achieving the cloud based enterprise technology. It is thus important to ensure that the company has proper mechanism of cleansing the data. Experts should also be involved during the process for the purpose of guiding the company towards achieving the enterprise based technology (Joha, 2012). The implantation of the rules should be next step towards achieving the cloud based technology. The cloud based enterprise technology allows the organization to come up with rules that guide the operations of the company and to ensure that duties are carried out according to the expectations. The rules also determine how the users will be able to access the products of the company. The use of online shopping will also be guided by the rules that the company will come up with. It is thus important for Nike to come up with appropriate rules that will enable the company to achieve its goals and objectives of the cloud based technology. The formulation of the rules is one of the advantages of the cloud based technology as it enables the company to make any changes during the process of operations. The rules are also for the purpose of ensuring that the company is able to make its decisions with regards to the cloud based technology. The last strategy during the implementation of the cloud based enterprise technology involves the personalization and the user interface. This is an important step towards ensuring that the employees of the organization are able to interact with the customers and the suppliers. The personalization is also an important step towards solving the supply chain problems that faced the company. The strategies used during the implementation of the cloud based enterprise technology will enable the company to make profits and mitigate the losses. The problems of the supply chain management has faced will also be solve through the implantation of the strategy. The concepts of the cloud based enterprise technology are thus important in terms enhancing the operations of the company (Voorsluys, et al, 2011). Conclusion In conclusion, it is worth noting that the concepts of enterprise resource planning are significant for an organization. The failure of Nike to implement the enterprise resource planning resulted to problems in the enterprise resource planning. However the alternative strategies are important and could have saved the company from the problems that it experienced in its supply chain management. The tools and techniques of the enterprise resource planning are also important during the implementation of the strategies of the enterprise resource planning. The components of the enterprise resource planning are also important in terms of aiding the enterprise resource planning. It is thus important for an organization to put in place appropriate measures so as to implement the enterprise resource planning. The cloud based enterprise technology is also important in terms of solving the supply chain management problems that faced Nike. It is essential to ensure that the proper strategies are used during the implementation of the enterprise based technology. References Wailes, C. (2006). The false promise of technological determinism: the case of enterprise resource planning systems. New Technology, Work & Employment 21 (1): 2–15. Loh, T. (2004). Critical elements for a successful ERP implementation in SMEs. International Journal of Production Research 42 (17): 3433–3455 Head, S. (2005). The New Ruthless Economy. Work and Power in the Digital Age. Oxford UP O'Brien, J. (2011). Management Information Systems (MIS). 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