The footwear manufacturer Nike is placing some of the blame for its low third-quarter results on i2 Technologies?the power behind the company?s supply-chain management system. When Nike announced that i2?s management software led to both inventory shortages and excesses along with delayed deliveries, i2?s shares plummeted 22 percent.
Nike?s announcement has sparked doubts throughout the marketplace as potential customers question the viability of i2?s applications. The two firms are working on the problems that are expected to last for several months. Despite the problems and the public criticism, both companies report that they intend to work together in the future.
Why, after harsh public criticism and damaged earnings and share prices, would these two firms continue to push ahead? Are the problems that Nike claims to have encountered with the software just part of the process towards forging a reliable, supply-chain management system?
I think that Nike?s willingness to continue its relationship with i2 illustrates the growing need to rely on enterprise application services to maintain a competitive edge in the marketplace. Even though there have been problems at the outset, Nike knows that it can?t afford to not relyon B2B e-commerce solutions.
But, how can a company avoid the problems that Nike encountered? Are there ways for a firm to evaluate potential enterprise applications and their providers to make sure that they are a ?good fit? for the company? If things go awry in the long run, is there any kind of recourse for either firm?
