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Study Case

Nike, Inc. is an American multinational corporation that is engaged in

the design, development, manufacturing and worldwide marketing and

selling of footwear, apparel, equipment, accessories and services. With its

vision “To Bring inspiration and innovation to every athlete in the world”and ission, “the service of human potential” The company is

headquartered near Beaverton, !regon, in the "ortland metropolitan area.

#t is one of the world$s largest suppliers of athletic shoes and apparel and

a ma%or manufacturer of sports equipment, with revenue in e&cess of 

'()*+. -illion in its scal year */* 0ending ay 1, */*2. As of */*, it

employed more than ++,/// people worldwide. #n */+ the -rand alone

was valued at )3 -illion, making it the most valua-le -rand among sports

-usinesses. 0source4 Wikipedia2Wolfram, who was promoted in April to vice president and general

manager of the Asia5"acic division, is all 6ike. 7is comple&ion is ruddy,

his lips cracked from working out or working hard, or -oth. 7e8s casually

dressed, -ut with a typical 6ike sharpness to his turtleneck and slacks, a

sharpness re9ected also in his urgent, aggressive defense of his company

6ike pride that would seem arrogant were not the company so dominant

in its industry.Wolfram calls the i* pro-lem software glitch that cost 6ike more than

)// million in lost sales, depressed its stock price -y */ percent,

triggered a 9urry of class5action lawsuits, and caused its chairman,

president and :;!, "hil <night, to lament famously, =This is what you get

for )+// million, huh>=>a =speed -ump.= (ome speed -ump. #n the athletic

footwear -usiness, only 6ike, with a 1* percent worldwide market share

0almost dou-le Adidas, its nearest rival2 and a )*/ -illion market cap

that8s more than the rest of the manufacturers and retailers in theindustry com-ined, could a?ord to talk a-out )// million like that.

6ike8s @une */// pro-lems with its i* system re9ect the dou-le

whammy typical of high5prole enterprise computing failures. irst, there8s

a software pro-lem closely tied to a core -usiness process this case,

factory orders. Then the glitch sends a ripple through product delivery

that grows into a wave crashing on the -alance sheet. The wave is -ig

enough that the company must reveal the losses at a quarterly

conference call with analysts or risk the wrath of the (ecurities and

;&change :ommission, shareholders or -oth. And that8s when it hits the

pages of The Wall (treet @ournal, inspiring articles and white papers on the

general su-%ect of #T8s hu-ris, limitations, value and cost. The idea that something so mundane as a computer glitch could a?ect

the performance of a huge company is still so novel that it makes

headlines. But what doesn8t usually enter the analysis is whether the

pro-lem was tactical 0and &a-le2 or strategic 0meaning the company

should never have -ought the software in the rst place and most likely

won8t ever get any value from it2. The latter is a goof worthy of a poster

the former is a speed -ump.

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6ike claims that the pro-lems with its i* demand5planning software

were tactical and therefore &a-le. #t was too slow, didn8t integrate well,

had some -ugs, and 6ike8s planners were inadequately trained in how to

use the system -efore it went live. 6ike says all these pro-lems were &ed

-y fall *///. And the company asserts that its -usiness wasn8t a?ected

after that quarter. #ndeed, at press time, 6ike had %ust announced that its

third5quarter *//1 prot margins were its highest ever.#f there was a strategic failure in 6ike8s supply chain pro%ect, it was that

6ike had -ought in to software designed to crystal -all demand. Throwing

a -unch of historical sales num-ers into a program and waiting for a

magic num-er to emerge from the algorithm the -asic concept -ehind

demand5planning software doesn8t work well anywhere, and in this case

didn8t even support 6ike8s -usiness model. 6ike depends upon tightly

controlling the athletic footwear supply chain and getting retailers to

commit to orders far in advance. There8s not much room for a crystal -all

in that scenario.#ndeed, 6ike conrms that it stopped using i*8s demand planner for its

short5 and medium5range sneaker planning 0it8s still used for 6ike8s small-ut growing apparel -usiness2 in the spring of *//, moving those

functions into its (A" ;C" system, which is grounded more in orders and

invoices than in predictive algorithms. =This allows us to simplify some of 

our integration requirements,= says 6ike :#! Dordon (teele.Wolfram says 6ike8s demand5planning strategy was and continues to -e a

mi&ture of art and technology. 6ike sells too many products 0*/,///2 in

too many cycles 0four per year2 to do things -y intuition alone. =We8ve

tuned our system so we do our runs against Ehistorical modelsF, and then

people look at it to make sure it makes sense,= he says. The computer

models are trusted more when the product is a relia-le seller 0that is, %ust

a-out anything with ichael @ordan8s name on it2 and the planners8intuition plays a -igger role in new or more volatile products. #n this case,

says Wolfram, talking with retailers does more good than consulting the

system.=There8s -een a change in the technology for demand planning,= says

AC Cesearch Gice "resident Bill (wanton, who declined to address the

6ike case specically. =#n the late 83/s, companies said all we need is the

data and we can plan everything perfectly. Today, companies are trying to

do consensus planning rather than demand planning.= That means moving

away from the crystal -all and toward sharing information up and down

the supply chain with customers, retailers, distri-utors and manufacturers.

=#f you can share information faster and more accurately among a lot of people, you will see trends a lot sooner, and that8s where the true value of 

supply chain pro%ects are,= (wanton says.

Analysis

enurut analisis kami kegagalan yang ter%adi pada 6ike, #nc. adalah

se-agi -erikut4

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. enurut -uku Duide to ;nterprise Architecture, The #nformation #naccuracy

and #ntegrity "ro-lem  is the ina-ility of core systems to support

information accuracy due to tactically planned -usiness systems.  Hari

pen%elasan terse-ut kami menemukan -ahwa se-elum

pengimplementasian sistem -aru, 6#<;, telah mengalami

permasalahan keakuratan informasi dan masalah integritas yang

ter%adi karena *I aplikasi mana%emen order yang sulit terintegrasi

dengan pusat. asalah terse-ut mengaki-atkan -anyaknya -arang

di gudang yang tidak diminati pasar tetap ada tanpa ada tindak

lan%ut dari pusat karena tidak adanya integrasi. <urangnya stok

-arang yang diminati konsumen di gudang mengaki-atkan

menurunnya keuntungan yang didapat. <urangnya stok terse-ut

ter%adi karena tidak adanya kiriman stok dari pusat yang

diaki-atkan oleh aplikasi yang ada di gudang retailer tidak

terhu-ung dengan aplikasi yang -erada di pusat.*. enurut -uku yang sama, The "ro-lem of #ncompati-le

 Technologies is

 The #T environment does not interoperate e?ectively to providesupport for -usiness processes. Hilihat dari kondisi 6ike, #nc. pada

waktu itu, dapat di-uktikan -ahwa kesa-aran yang sama tidak

diperlihatkan 6ike ketika mengimplementasi -agian awal dari

sistem (:5nya, yakni modul aplikasi demand and supply

forecasting. Haripada menunggu instalasi software i* se-agai

-agian dari proyek ;C" (A" 0karena menggunakan strategi

implementasi single instance2, 6ike dengan tak sa-ar le-ih memilih

menginstal i* pada awal 333, sem-ari menggunakan

sistem legacy 0warisan lama25nya.  @adi, software i* harus

dikustomisasi untuk -isa dioperasionalkan dengan

sistem legacy. (etidaknya -utuh satu menit untuk setiapkaliinput agar -isa dicatat oleh software lama itu. Han karena

 %umlah produk yang ditangani mencapai puluhan %uta, maka sistem

itu sering crash.

Solutions

. "ada permasalahan pertama, diketahui -ahwa permasalahan

terdapat pada proses integrasi, sehingga solusi yang tepat adalah

pengintegrasian ditekankan pada upstream maupun downstream.

*. Halam permasalahan kedua, 6ike #nc. terlalu ter-uru5-uru dalam

pengimplementasian i*8s demand planner dengan harapan dapat

menyelesaikan masalah yang se-elumnya dimiliki oleh 6ike dengan

*I aplikasi terdahulu. 6amun hal terse-ut malah mem-uat

kerugian -esar dikarenakan ketidakcocokan software i*8s demand

planner dengan (: se-elumnya. 7al terse-ut dapat diatasi

dengan implementasi secara perlahan yang di dalamnya terdapat

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proses 'nfreeJing, yaitu mengu-ah ke-iasaan perusahaan lama

secara perlahan K :hanging, merupakan masa transisi dari

'nfreeJing ke CefreeJing dengan cara telah meninggalkan

ke-iasaan yang lama K CefreeJing, merupakan go live dari suatu

perusahaan yaitu ter-entuknya ke-iasaan perusahaan yang -aru.