BUSINESS INFORMATION

SYSTEM

CASE STUDY ON BUSINESS PROCESS

REENGINEERING IMPLEMENTATION

NIKE
 BUSINESS PROCESS
Business process means all process that
occur within the organization 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 created
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.
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.
 ABOUT THE COMPANY
Nike is an American multinational
corporation that engaged in the design,
development, manufacturing, and
worldwide marketing and sales of footwear,
apparel, equipment, accessories, and
services. The company is headquartered
Near Beaverton, Oregon, in the Portland
metropolitan area. It is the world’s largest
supplier of athletic shoes and apparel and a
major manufacture of sports equipment.
The company which generates some 60% of
sales outside the US sells through more
than 1,090-owned retail stores worldwide
and an e-commerce site, and to thousands
Of retail accounts, independent
distributors, licensees and sales
representatives. Customer in North America
accounts for about 40% of total revenue.

IMPLEMENTATION OF BPR
Nike is a sportswear leading company which
was using 27 applications worldwide for its
supply chain management. Nike was going
to implement ER with the objectives :
 Implement new enterprice system build
by them
 Increase design manufacturing
 Increase company margin
 Cut the shipping time
 Reduce stock in inventory
Of course it met the challenges such as SAP
ERP System cannot be customized, so some
problems have occurred. The supply chain
management didn’t work well and the
demand forecasting 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.