When I2 was slam dunked by Nike

In 2001, I2’s share plunged by 22.4% as the markets reacted sharply when the reason given by Nike for its expected third- quarter earnings dip was flawed software from I2.The then CEO of Nike Philip Knight thundered in a conference call :” This is what we get for our $400 million?”
I understand that all SCM best-of-breed softwares are complex. But technology and support was never a problem for I2 though their software is pretty complex (as normally every other vendors SCM software is). The problem lies in how it is implemented. Nike had a complex problem of mapping and tracking every shoe-model manufactured by it. I2 enhanced its software for this feature and it took longer than expected. With issues cropping up during go-live and Nike’s earnings dipping, Nike squarely deflected the blame on I2.
What would have happened if Nike had chosen a big ERP player (though they had limited role in SCM during that period)? Would they have been able to put the blame on these big ERP players. The answer is always yes. The inspiration to write this article was because of the below piece of news I read at the start of this year.
Source: http://www.networkworld.com/news/2008/013008-ibm-american-lafrance-bankruptcy.html
IBM probably won't be asking American LaFrance for product endorsements anytime soon.
American LaFrance, an emergency vehicle and equipment company in South Carolina, has faulted, at least in part, IBM's software implementation for its recent bankruptcy in court documents filed at the US District Bankruptcy Court of Delaware this week.
According to the documents, American LaFrance began using unnamed ERP purchasing, inventory, production, payroll and finance services with the help of IBM and IBM software after the company was spun off from Freightliner in 2005.
However, the company said it began experiencing a "plethora of problems" with the components of its ERP software from its inception. Among the "serious deficiencies" that American LaFrance claimed had a "crippling impact" on its operations were "incorrect or incomplete" inventory data on the system; missing financial information that included inaccurate accounts payable, accounts receivable and general ledger balances; and the inability to transfer data from the Freightliner system onto the new system. As a result of these problems, the company says it was unable to reliably maintain its inventory, thus hindering the company's ability to deliver vehicles and equipment to customers. This "had an immediate impact on [American LaFrance's] cash flow and created a liquidity crisis," the company claimed.
Later in the documents, the company said it was "analyzing potential causes of action against IBM in connection with the problem-riddled transition to the ERP system."
An IBM spokesman confirmed to The Register that American LaFrance had used its systems, but declined to elaborate, stating that the company was "reviewing the documents filed with the court and have no further comment to make at this time." IBM bills its ERP system as "a comprehensive solution for managing business processes, including financials, human resources and operations and corporate services.

This leads us to the raging issue of best-of-breed vs ERP systems. Watch out for my next post.