Nike Case Summary

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Nike Case Summary Although it is still a highly successful athletic shoemaker today, Nike has went through its fair share of financial and public relations problems. Many believe that Nike went in decline due to two reasons: Michael Jordan’s final retirement and the slowing economy. Another aspect of Nike that has brought a negative image upon them are the negative accusations of exploiting foreign labor. Much like everyone else, Nike knew that its main problems revolved around the overproduction of unpopular shoes alongside the underproduction of popular shoes. They knew they needed a way to better forecast demands and market changes. Although Nike has had experience with major IT projects, their poor project management has left these projects with undesirable outcomes. Their project in mid-1997 when they invested in the installation of intranet which was supposed to improve global collaboration and reduce the time it took to make product design decisions. An evaluation of this project showed that Nike poorly planned the project and had poor communication among its main users. Nike’s first attempt at installing supply-chain management with SAP in the late 90s ended up failing due to being problem-ridden and ‘inadequate’ for Nike. They gave supply-chain management a second try when partnering with i2 Technologies, Inc.; having had experience with the SAP project, Nike knew that this was going to be a difficult undertaking but they still had high hopes that the i2 project would help them in speedily forecasting market changes. Nike went live with the system over a year after launching the project, which already causes them to run into risk for deploying too soon. Also, since the i2 software was not specifically designed for the shoe and apparel business, there was an increased risk that things in general would go wrong. Nike miscalculated future demands…...

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