University of Ottawa

Under Armour Finds a Chip in Their Armor

Assignment #4

Group #22
Last Name First Name Student Number

Diaz Paredes Daniela 300126507

Dowling Lilli 300105387

Guirguis George 300174455

Nielsen Amelia 300210087

Zagallai Shahd 300174444

Zhou May May 300147238

ADM 2372, Management Information Systems [P]

Dr. Alhassan Ohiomah

March 21, 2022

Question #1: Discuss the implications of Core ERP modules for Under Armour and how they can
be used to make Under Armour's business operations more effective and efficient.

The core ERP modules consist of:

Accounting and finance module: This module supports accounting, financial reporting,
performance management and corporate governance processes. It is important to highlight that
ERP, when implemented correctly, can provide flexibility and agility for the organization. ERP
can break down many departments of business processes, information systems and information
resources and utilize this data to supplement and perform financial processes (ie. budgeting).
Despite the advantages of ERP, there can be difficulties upon implementation as seen in Under
Armour’s negatively impacted financial quarter, due to “delayed shipments and loss of
productivity, which impacted our third quarter results.” Going forward, ERP use/implementation
can be improved within the organization to more effectively support financial processes and
efficient financial planning.

Operations management/production: These modules manage the various aspects of production

planning and execution such as demand forecasting, inventory management, materials
purchasing, shipping, distribution, etc. There are several benefits to ERP systems such as Quality
and efficiency. There will be a significant improvement in the organization’s business processes
that concern product manufacturing, production, and distribution, as well as satisfying customer
demands and producing products tailored to their target audience. For example, the
implementation of ERP will prove beneficial in handling the company’s inventory increase ie.
“company’s inventory increased by 22 percent and Under Armour has the potential to use the
data made with customers”. Thus, through the implementation of ERP Under Armour will be
able to appropriately manage inventory and will be able to respond appropriately with
customers’ demands.

Human resources module: These modules support personnel administration, payroll,

compensation and benefits, etc. ERP has the ability to correct the lack of communication
between different functional areas through a common database, as well as track employees/
varying skill sets, monitor attendance, recruiting, etc. The change that has happened in the
human resources module will also be reflected in other functional areas within the organization,
increasing efficiency. Using the functionality of this ERP Module, Under Armour can correct
management issues, regulate employee databases, and overall have a positive impact on their
workforce and the effectiveness of Human Resource Management.
Question #2: Discuss the implications of integrating Extend ERP modules for Under Armour and
how they can be used to make Under Armour's business operations more effective and efficient.

Implications
Extended ERP modules are simply the opposite of core ERP modules, where extended
ERP modules focus on external operations; focusing on the efficiency and effectiveness of
managing customer relationship management, e-commerce, supply chain management and
business intelligence.

Customer relationship management

Since Under Armour has many revenue streams such as their clothing store and fitness
apps, the CRM module would help the business operations by being more effective and efficient
with their marketing, sales and customer service. CRM module allows the business to analyze
and obtain data such as customer feedback and communication with customers. With its 200
million subscribers, CRM module would allow Under Armour to send targeted ads or e-mails to
their customer base since they have information about their physical characteristics and their use
of equipment.This means there would be less manual labor to sift through each customer profile
to identify which customers they can target marketing strategies to. With the CRM module they
could also track data about their most successful sales and most successful marketing campaigns,
improving the efficiency and effectiveness of their marketing campaigns.

E-commerce
E-commerce module provides customers, suppliers and partners channels to access the
ERP system and obtain ERP information (Ohiomah, 2022). With Under Armour’s online
clothing store, the module allows the business to track inventory levels, customer payments and
order status. For example if a customer is wanting to see the progress of their purchase, they
would be able to see the progress through the information of the ERP system, without having to
contact customer service to ask. This essentially would increase productivity for employees
which increases efficiency. With the increase in productivity since the ERP system can reduce
manual labor, that means the employees can work on other tasks. Furthermore the customers
would be able to see estimated shipping costs, costs of the items, and other order information.
Again since Under Armour has multiple sales channels and locations it centralizes sales
information.

Supply chain management

For a large corporation like Under Armour, supply chain management is imperative for
the proper functionality of the company. The flow of money, information, material requirements
etc. are just a few examples of the important elements of SCM. Using a proper supply chain
management system integrated with proper enterprise resource planning it is possible to forecast
demand, improve efficiency and effectiveness. For Under Armour this would mean the proper
management of materials around the demand. In summer they need more short sleeve shirts
rather than long sleeve compression shirts. The proper forecast and estimation is possible with a
good functional software. The information basis can be used for these exact reasons and when
put together, they can greatly improve sales.

Business intelligence
Under Armour, being a multi-billion dollar company, must focus on its business
intelligence processes. The acquisition, storage, mining and analysis of data within the
organization is imperative for success. For UA, business intelligence involves studying
demographics of orders, seasonals orders, the number and age of customers buying a certain
product, etc. There's so much involved in the BI aspect of this company. UA must be vigilant of
all these aspects and use everyone of them to their advantage. The collection of data can range
from the cash register for sales to surveys after purchases and the frequency of orders. The
storage of data is also very important and this is done in large data warehouses facilitated by ERP
companies like SAP. The analysis of data is imperative because it foretells the business decisions
to be made. For UA to be efficient and have effective operations their focus on BI must be
apparent.

Question #3: What lessons from the case can be learned regarding the challenges of
implementing an ERP system?

When implementing the ERP system, Under Armour faced serious challenges regarding
change management. As defined in this case, change management is the “techniques and
methods for preparing and supporting individuals and teams throughout an organizational
transition.” Additionally, it was noted in this case that the change management challenges caused
issues with Under Armour’s “workforce and manufacturing partners.” Further, the
“implementation caused disruption” in their supply chain. As a result, it “led to delayed
shipments and loss of productivity.” However, change management challenges are not unique
when implementing ERP systems. There are repercussions if ERP implementation fails.
Ohiomah (2022) explained that “if ERP implementation fails, it means losses in revenue.”
Therefore, four lessons can be learned regarding the change management challenges of
implementing an ERP system.
First is the lesson of top management support. According to the Panorama Consulting
Group (2021), change management issues usually occur because top management support “was
lacking from the beginning.” Top management support is necessary, as they allocate the budgets
and resources for implementing new systems. Thus, if support is lacking and executives assign
limited resources to a new ERP system, this sends a clear signal to employees. Also, top
management support is critical as they establish the objectives for the system. Bazzanella (2021)
explained that “establishing clear expectations upfront is critical for clear goals and realistic
expectations to be set.” When leaders set realistic and clear goals during periods of
organizational change, everyone has a more straightforward path to follow. Overall, executives
set the tone for the entire organization. And as leaders, they must demonstrate their support of
the ERP system to help manage change. Therefore, top management support is a lesson learned
from the challenges of implementing an ERP system.
The second is the lesson of communication. Ohiomah (2022) highlighted that a common
reason for ERP failure is “trying to accomplish too much too fast in the conversion process.”
When this scenario occurs, communication is even more essential. The Panorama Consulting
Group (2021) wrote that “communication concerning the goals and progress of the project,” must
always be expressed between all organizational members. Similarly, operational and managerial
employees must share “their needs and expectations,” as those messages “must be relayed to
upper management,” (Panorama Consulting Group, 2021). Also, communication is key between
the organization and its supply chain partners. In this case, it was reported that Under Armour’s
supply chain was disrupted, and their manufacturing partners were having trouble with the
system. When supply chain partners face challenges and do not communicate with each other,
the ERP system will likely fail. Communication would have helped their issue of delayed
shipments, as parties could have shared their status to ensure the smooth flow of goods. Without
communication, everyone will be on a different page. As a result, the change will bring more
confusion. Therefore, communication is a lesson learned from the challenges of implementing an
ERP system.
The third is the lesson on training. Another common reason for ERP implementation
failure is “insufficient training in the new work tasks required by the ERP system,” (Ohiomah,
2022). Moreover, the Panorama Consulting Group (2021) stated that “a lack of knowledge can
lead to fear." So, if employees learn how to use the ERP system, then "employees become more
confident and more willing to embrace change,” (Panorama Consulting Group, 2021). Further, in
this case, it was documented that Under Armour’s workforce and manufacturing partners were
having trouble with the new ERP system. Training would have helped make the implementation
process smoother for all parties. Also, with a smoother transition, they could have avoided
delayed shipments and loss of productivity. Overall, training ensures employees can efficiently
and effectively use the ERP system, which helps the organization earn the most from their
system investment. Therefore, training is a lesson learned from the challenges of implementing
an ERP system.
The fourth lesson is the type of organizational culture. Even though top management
support is necessary for successful ERP implementation, the organization's culture is also vital.
The Panorama Consulting Group (2021) explained that the cultural environment must support
“flexibility and ingenuity.” Also, the organizational culture should support employee
empowerment. For example, Carr (2018) argued that listening to “the concerns and ideas of the
people affected by the reorganization,” is crucial. Technology alone will not run an efficient
organization. The human element is the critical component in any organization. If the employees
who use the new ERP system have concerns, issues, or do not like it, the implementation will
likely fail. The ERP system will likely fail without employee input and an employee-powered
culture. Altogether, it is essential that the employees who use the ERP system are satisfied and
feel that their opinions are valued. Therefore, the type of organizational culture is a lesson
learned from the challenges of implementing an ERP system.
In conclusion, when Under Armour implemented SAP HANA, they experienced
challenges with change management. Specifically, they faced difficulties with disruptions in their
supply chain. As a result, they experienced issues with their workforce and partners. Thus, to
ensure these mistakes do not happen, the company must focus on a few areas. For instance, top
management must demonstrate their support and have inter-organizational communication. And
training employees on how to use the new ERP system is essential. Finally, the organization must
empower and value employee thoughts. Therefore, the four lessons learned are (1) top
management support, (2) communication, (3) training, and (4) type of organizational culture.

Question #4: What advice would you give an organization deciding to implement a new ERP
system?

The advice we would give to an organization deciding to implement a new ERP system is
to first understand what an ERP system is and its strengths and weaknesses. Before
implementing an ERP system, the organization needs to be aware that software such as this one
will take some time to realize its potential and see any good changes in their organization. In
addition, the organization should be willing to have the space and time to tweak and make the
software perfect for their organization that will create a smooth system. Also, the organization
should know what type of data they are trying to collect and what they want from the ERP
system in order to better their organization. Doing their research beforehand will have them
prepared and a plan ready to get as much as through their new system.
Before implementing a new ERP system to an organization, our second recommendation
would be to make sure their financing is in good shape. By having good finances, the
organization will be able to get the most out of the system because they will be able to maintain
it. A disadvantage of having an ERP system is the high costs that the system is depending on to
run smoothly. Also, it takes a lot of money to license and develop an ERP system. Our
recommendation would be to set aside money to hire specialized people that will help maintain
the system and only implement an ERP system when the organization is financially stable.
Not only does an organization have to deploy people that specialize in ERP systems yet
they have to get their whole organization and employees on board. This brings us to our third
recommendation which is to include your employees in the implementation process of the
system. Having the whole organization on board will help employees understand what ERP
system is and what it will bring to the organization. In addition, this will give the employees the
experience they need to play and go into the translation from the organization’s current system to
the new system without any confusion or shock.
The fourth recommendation would be to customize the ERP system to fulfill the needs
and benefits of the organization. Customization will help the organization define the need of the
system and will make the system better than the existing one. Adjusting the system to fit the
business needs and practices is critical to success and will help the future of the organization.
Implementing an ERP system that will satisfy the needs, goals, and necessities of the
organization will be a great investment for the organization’s future.
Our last recommendation for organizations that are deciding to implement a new ERP
system is to document and analyze the before, during, and after activity throughout their
implementation of the ERP system. Documenting the system’s activity (daily, weekly, biweekly,
etc.) will help the organization see where there is room for improvement and ways to improve
the organization itself. If the organization is self-aware of its downfalls and weaknesses, it can
use the ERP system to help and become more efficient and aware of its effects on the
organization. Documenting before the implementation of a new ERP system will help the
organization look for weaknesses throughout the organization and see where the ERP system can
help or find ways to improve their way of doing business. During the implementation of the new
ERP system, the organization should be able to document or analyze the changes that the
systems have implemented whether they are good or bad. By documenting these changes, the
organization can use that information to personalize or customize the ERP system to gain
knowledge and insight into their organization. After a good year or two, the organization should
be able to significantly see a bigger difference in how their organization runs and in the way it
functions. By then the organization should be able to implement a better ERP system to
implement and reach newer goals. Even if it's only been a year or two, the organization should be
able to significantly improve and find better ways to improve their business with newer goals.
 References

Bazzanella, N. (2021, August 23). Change Management: key to successful ERP transformation.
KPMG. Retrieved from
https://home.kpmg/ch/en/blogs/home/posts/2021/08/erp-implementation.html

Carr, J. (2018, August 27). Four Lessons Learned When it Comes to Change Management and
ERP. Ultra Consultants. Retrieved from
https://ultraconsultants.com/erp-software-blog/change-management-and-erp/

Ohiomah, A. (2022). Week 9 - ERP [PDF slides]. Retrieved from

https://uottawa.brightspace.com/d2l/le/content/276898/viewContent/4415376/View

Panorama Consulting Group. (2021, October 20). Changement Management Challenges to Nip
in the Bud. Retrieved from
https://www.panorama-consulting.com/change-management-challenges/

Katie. (2020, December 3). 10 things to consider before implementing an ERP system. ERP
News. Retrieved March 20, 2022, from
https://erpnews.com/10-things-to-consider-before-implementing-an-erp-system/

Roznovsky, A. (2021, April 6). 10 benefits of ERP: Advantages and disadvantages of ERP
system. 10 Benefits of ERP | Advantages and Disadvantages of ERP System. Retrieved
March 20, 2022, from
https://light-it.net/blog/what-are-the-primary-business-benefits-of-an-erp-system/

Team, T. I. (2022, February 8). What is Enterprise Resource Planning (ERP)? Investopedia.
Retrieved March 20, 2022, from
https://www.investopedia.com/terms/e/erp.asp#:~:text=ERP%20applications%20can%20
help%20a,costly%20duplicate%20and%20incompatible%20technology.

Weinberg, N., & writer, C. (2021, November 1). 11 tips for selecting and implementing an ERP
system. CIO. Retrieved March 20, 2022, from
https://www.cio.com/article/253243/enterprise-resource-planning-tips-for-selecting-and-i
mplementing-an-erp-system.html
Personal Ethics Statement Concerning Telfer School Assignments

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Lilli Dowling 2022-03-21 M.Z 2022-03-21

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Dowling, Lilli 300105387 Zhou, May May 300147238

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Amelia Nielsen 2022-03-21 Shahd Zagallai 2022-03-21

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