Nike Rebound Essay

4394 words - 18 pages

CIO - Nike Rebounds

Page 1 of 8

Nike Rebounds
Christopher Koch 12 July, 2004 10:54:58
How (and Why) Nike Recovered from Its Supply Chain Diaster
Too many Air Garnetts. Too few Air Jordans. Nike lost money, time and a measure of pride when its demand-planning
software led it astray. How did it recover? Patience, perseverance and, most important, an understanding of what it
was trying to accomplish in the first place

The limitations of demand-planning software
How a robust business plan can insulate tech execs from blame
Single-instance strategies in a global environment

"I thought we weren't going to talk about i2," growls Roland Wolfram, Nike's vice ...view middle of the document...

It drives Wolfram crazy that while the rest of the world knows his company for its swooshbuckling marketing and its
association with the world's most famous athletes, the IT world thinks of Nike as the company that screwed up its
supply chain - specifically, the i2 demand-planning engine that, in 2000, spat out orders for thousands more Air
Garnett sneakers than the market had appetite for and called for thousands fewer Air Jordans than were needed.
"For the people who follow this sort of thing, we became a poster child [for failed implementations]," Wolfram says.
But there was a lesson too for people who do, in fact, follow "this sort of thing", specifically CIOs. The lesson of Nike's
failure and subsequent rebound lies in the fact that it had a business plan that was widely understood and accepted at
every level of the company. Given that, and the resiliency it afforded the company, in the end the i2 failure turned out
to be, indeed, just a "speed bump".;1800426724;fp;4;fpid;19;pf;1


CIO - Nike Rebounds

Page 2 of 8

The i2 Failure: Tactical or Strategic?
Nike's June 2000 problems with its i2 system reflect the double whammy typical of high-profile enterprise computing
failures. First, there's a software problem closely tied to a core business process - in this case, factory orders. Then
the glitch sends a ripple through product delivery that grows into a wave crashing on the balance sheet. The wave is
big enough that the company must reveal the losses at a quarterly conference call with analysts or risk the wrath of the
US Securities and Exchange Commission, shareholders or both. And that's when it hits the pages of The Wall Street
Journal, inspiring articles and white papers on the general subject of IT's hubris, limitations, value and cost.
The idea that something so mundane as a computer glitch could affect the performance of a huge company is still so
novel that it makes headlines. But what doesn't usually enter the analysis is whether the problem was tactical (and
fixable) or strategic (meaning the company should never have bought the software in the first place and most likely
won't ever get any value from it). The latter is a goof worthy of a poster; the former is a speed bump.
Nike claims that the problems with its i2 demand-planning software were tactical and therefore fixable. It was too slow,
didn't integrate well, had some bugs, and Nike's planners were inadequately trained in how to use the system before it
went live. Nike says all these problems were fixed by northern autumn 2000. And the company asserts that its
business wasn't affected after that quarter. Indeed, at press time, Nike had just announced that its third-quarter 2003
profit margins were its highest ever.
If there was a strategic failure in Nike's supply chain project, it was that Nike had bought in to software designed to
crystal ball demand. Throwing a bunch of historical sales...

Other Papers Like Nike Rebound

Regretful Decisions Essay

930 words - 4 pages Regretful Decisions There are many individuals in a child’s life that helps mold them into a well-rounded adult. In most cases, this guidance comes from the child’s parents or other older, but in Sonny’s case, this guidance was expected from his older brother. In the short narrative, Sonny’s Blues, Sonny’s life was adversely affected by the decisions that his older brother made. The decisions that his brother made include leaving Sonny to stay

Jail Responsibilities Essay

589 words - 3 pages Jail Responsibilities Monique Priorello September 23, 2012 One of the main responsibilities of a jail is to give the officers the correct “Police Correspondence” courses. This is because these courses give the officers the effective basic training that they need to do things such as; Writing of Memoranda, Police Reports, and Civilian Letters. What needs to be done first is make sure that there are NO errors. This means in


638 words - 3 pages Starbucks Nefertiti Wright Sangita Patel October 15, 2012 STARBUCKS 2 STARBUCKS - 1 - [no notes on this page]I. Job description a. Baristas II. Job specifications a. Duties III. Form of departmentalization STARBUCKS 3 Starbucks Starbucks have been named in the 100 best companies to work for. Starbucks has many job opportunities for people, which require the right job specifications. The employees create uplifting experience

Fight Club

917 words - 4 pages Fight Club is a story of the narrator’s struggle to gain control over his life. He is in search for an identity in the form of manhood. His masculinity is so repressed because of the absence of a father figure in his life. Because of this he creates Tyler, his alternate personality. Tyler is nothing like anyone the narrator has met, he is self assured and completely free. The narrators alternate personality Tyler Durden is the ultimate alpha-male

The Powers Of The Health And Safety Representative

254 words - 2 pages The Powers of the Health and Safety Representative A health and safety representative has the power to: Identify Workplace Hazards The health and safety representative has the power to identify workplace hazards. This power is usually exercised by conducting workplace inspections. Obtain Information from the Employer The health and safety representative is entitled to the same information available to a joint committee member. Under the Act

Lesson Plan

6476 words - 26 pages QWERTYUIOP by Vivien Alcock Table of Contents Introduction About Short Stories The Writer Synopsis Elements Activities Beyond The Text Assessment Answer Key Glossary Panel of Writers [pic] SHORT STORY Welcome to the World of Literature and to Short Stories! We hope you will enjoy working with this guidebook, which has been specially designed to help you prepare your students enjoy the Literature


1227 words - 5 pages Coca-Cola Global Business and Marketing Strategy Introduction As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessible and businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global

Facing Poverty With A Rich Girl's Habit

783 words - 4 pages Facing poverty with a rich girl’s habit Adele Strader Professor Chryst English Composition October 22, 2012 Facing poverty with a rich girl’s habit was written by Suki Kim and published in the New York Times on November 21, 2004. The most important point that Suki want to make was that (1) what we have in life can be taken away in an instant (2) do not go bankrupt in South Korea (3) that a person must adapt and endure

3-4-50 Paper

572 words - 3 pages -4-50 paperLack of exercise is a key contributor to disease and death among many people in the United States, regardless of age. It is a well-known fact that exercise results in a healthier lifestyle. Along with tobacco use and poor nutrition, lack of exercise is one of the main issues that people have which leads to high blood pressure, obesity, and other serious health problems. According to a study by UCSD School of Medicine and SDSU


836 words - 4 pages Miguel Beatrice Capitalism is an economic system in which private individuals and business firms carry out production and exchange of goods and services through complex transactions involved in prices and markets. By extension called capitalist higher social class of this economic system ("bourgeoisie"), or to the common form would the individual interests of capital owners in both companies, shareholders and patterns, also called capitalism


1177 words - 5 pages Homelessness in America Homelessness in America is a social problem that we are faced with on a daily basis. Despite the vast number of research done by Americans on homelessness, little is still known about the effect that it has on our society. The overall image that emerges from the effects of homeless people

Related Essays

Dell Analysis

3573 words - 15 pages Motorola’s mobile devices business, was given the task of reestablishing Dell as a profitable consumer oriented business and a capable competitor of HP and Apple. The consumer division head started by halting all of Dell’s campaigns and clearly defining the goals of the company, among which was new and innovative design. Dell did not hesitate to add Ed Boyd, a designer at Nike, to his effort. Boyd acknowledged that Dell Inc. was great at tailoring

Lafarge S.A Essay

2924 words - 12 pages NAME: IHEKANANDU KINGSLEY N. COURSE: MGMT 292 / F12 N01 TITLE: INDIVIDUAL CASE STUDY (LAFARGE S.A.) SUBMITTED: October 5, 2012 TABLE OF CONTENTS 2. INTRODUCTION 3 3. DESCRIPTION OF CASE 4 4. VALUES 4 4.1. Types of values 4 5. TEAMWORK 7 6. MOTIVATION 8 7. CREATIVITY 9 7.1. Components of creativity 9 8. CONCLUSION 12 9. BIBLIOGRAPHY 13 INTRODUCTION This report aims to provide an in-depth analysis of initiatives pursued by Lafarge as

Finance Essay

665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

Analysis Of Operation Blue Star And Its Effects On The Gandhi Dynasty

934 words - 4 pages The period of time including and following Operation Blue star is considered a dark time in India and black spot in Indian history. It is a time Indian would rather forget, yet still to this day debate about. Was Indihar Gandhi correct in instating operation Blue Star, inflicting damage to the Golden temple, and being responsible for the killing of anywhere from 492 (official reports) to 1500 (estimates run as high as) civilians, which lead to an