ERP Failure Case Study - Nike

Nike spent $400M to upgrade its ERP system that ended up with a loss of approximately $100M and a 20% drop in stock prices. They had to invest another 5 years and $400M to get the project back on track. Today, the system works and is providing benefits, but the question is - did they need to spend this much?

In any digital transformation undertaking, operational disruption is your biggest risk. It happens when corners are cut in an effort to reduce the upfront cost and increase the project ROI. However, the real metric of success is uninterrupted business operations through the migration.

Don't go through what Nike went through. Choose the right software, the right software integrator, and remember this is YOUR project. Own it and course-correct as you go to make sure your company gets to the desired outcome.

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[kevingoulden]

This very good summary at the C Suite level. Right software, right implementation partner, right oversite. Really what makes projects success or failures is the people. Both sides have to get rid of the bad apples on the project as soon as possible. Infighting amoung project members or difficult people can crush a project. Major projects have failed due to so much conflict that turnover on both the client and implementation partner was huge. Turnover is extremely difficult to overcome. If the project is where everyone wants to be there and work together, the project will be a success.

[amiyashrivastava]

The general advice is good. However, you could have elaborated on Nike's specific situation. For example, who were their SIs, where their management could have done better?

[catarinasousa]

Do you know if Nike had Organizational Change Management for this project?

[olivetechnologies]

"First is to choose the right software"

This is huge but how is that done?
It's important to have the right people in charge, listening to the needs of all stakeholders to make the right choice!
PS - We make software that helps IT leaders and IT Consultants run a strealine diligent technology evaluation process.

[juliansanchezmares]

Por eso SAP dicen garantizar las implementaciones, independientemente del implementador, para no quedar mal. Hay que leer el libro: Who killed change? de Ken Blanchard

[friendoverse]

Thanks for sharing this guys. I like to know how NOT to implement ERP solution

[MGAa]

Sorry but this video is BS pure … you said nothing but 2 very general „wisdoms“ and not a hint of case study as mentioned in the title was touched? Thanks for loosing 5 minutes of my life 😂😂😂