People Innovation Excellence
 

Business Process Reengineering at NIKE Company

Business Process

Business process means all processes that occur within the organzation. Business process is the core of its business. All flow of business lead the growth of the organization. Every organization must have their own business process. It is creted along the way and become culture of the organization itself.

Business Process Reengineering

The broad organizational focus and deliberate nature of BPR suggest a planned change in which a successful BPR project requires preparation and deliberate action, support from management, technical competence, and mitigation of resistance to the change. Rarely, however, is there unlimited control over organizational and technological consequences (Varun, Seung&William, 1995).

Reengineering brings the different views of quality, information technology, organizational change, innovation and work redesign together. As such it represents an input–output activity view of the business as opposed to a functional, responsibility centered structural view. Such a horizontal view of the business represents a paradigm shift from the traditional hierarchy-based vertical view (Grover&Maholtra, 1997).

Six categories of BPM tools according to Mark M. Klen are:

  • Project management
  • Coordination
  • Modeling
  • Business process analysis
  • Human resources analysis and design
  • System development

BPR at NIKE Company

Nike is a sportswer leading company which was using 27 applications world wide for its supply chain management. Nike was going to implement ER with the objectives:

  • Implement new enterprise system build by them
  • Increase design manufacturing
  • Increase company margin
  • Cut the shipping time
  • Reduce stock in inventory

Of course it met the challages such as SAP ERP systm cannot be customized, so some probles have occured. The supply chain management didn’t work well and the demand forcasting didn’t work well.

It caused a big impact to the company, which were:

  • Inaccurate order shipping
  • Unbalanced production and demanding
  • Too much stock inventory
  • Decreased revenue
  • Demand cannot be completed

            Business Process will be restructured if the organization decided to do BPR. Usually this BPR is being conducted because the organization is going to use better system, like they are going to use enterprise system. For the example from the case study is Nike was implementing the SAP ERP for its company.

            Doing an BPR is not an easy thing. Here are the solutions provided for Nike company:

  • SCM: Make to sell -> Make to order
  • Take it more slow in implementing ERP
  • Better use roll out approach than big bang
  • Create business process template that approved globally.

So the conclusion is, BPR will lead the organization in better way, more effective and efficient if they are doing it right.

References

Grover, V., Jeong, S., Kettinger, W. and Teng, J. (1995). The Implementation of Business Process Reengineering. Journal of Management Information Systems, 12(1), pp.109-144.

Grover, V. and Malhotra, M. (1997). Business process reengineering: A tutorial on the concept, evolution, method, technology and application. Journal of Operations Management, 15(3), pp.193-213.

Cook, M. (2018). Case Study: Nike’s Adventure with Supply Chain Planning Software | Software Money Pit. [online] Softwaremoneypit.com. Available at: http://softwaremoneypit.com/case-study-nikes-adventure-with-demand-planning-software/ [Accessed 18 Jan. 2018].

Ittoday.info. (2018). Cite a Website – Cite This For Me. [online] Available at: http://www.ittoday.info/AIMS/Information_Management/1-04-50.pdf [Accessed 18 Jan. 2018].


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