Five critical factors for ERP implementation

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Post

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5-CSFs-ERP

summary

This independent research is to identify and discuss the Critical Success Factors (CSF’s) in implementing an ERP system. With the basis of the classic case study about i2 system, Nike’s supply chain debacle and their subsequent victory has provided us with valuable lessons that we can learn.

What is this about?

What did I achieve through this analysis?

Through this project, I hope to demonstrate the following objectives:

Critically analyse the characteristics, features and functionality of real time enterprise systems and their role in the modern and fast-paced business environment;

Describe system-wide concepts such as workflow, reporting, and the exchange of information between business partners and employees; and

Critically evaluate the benefits of enterprise systems in terms of integration, world-wide flexibility, interactive processing, client-server platform, cloud computing, open systems, and the capacity to be configured for all business types.

Summary of the analysis

Nike has been the world’s leading supplier of athletic shoes and sports equipment. Before the brand worthing 33 billion (Tighe, 2022), in 1999, their supply chain strategy was an IT solution to increase efficiency. A forecasting module by I2 was well-known with users like Dell and Walmart; therefore, wanting to unify the supply chain of 120,000 products, Nike decided to implement an ERP with I2. Nonetheless, it resulted a significant loss to both parties, ending in lawsuits (Koch, 2004).

Five factors were identified:

CSF1: Extensive education and training;
CSF2: Top management commitment;
CSF3: Software development, testing, and trouble shooting;
CSF4: Data management; and
CSF5: Vendor Selection

Conclusion

ERP is an essential part of making business successful, it can be overwhelming if not implementing properly. It unifies the people, process, and technology, so the first two factors (i.e., training, management) are about people, and the rest are about process, technology, and vendor selection.

Full version of the analysis

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Five critical factors for ERP implementation.pdf

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Additional Source:

Magal, Simha. Essentials of Business Processes and Information Systems. Wiley. Compiled from: Nike company reports; ‘‘Supply Chain Debacle,’’ Internet Week, March 5, 2001.

However, unlike FoxMeyer and Tri-Valley Growers, Nike was able to recover from its supply chain disaster. The following is a link to an article on CIO Magazine entitled “Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain Disaster” CIO Magazine, June 15, 2004.