Advantages And Disadvantages Of Globalisation Economics Essay

Advantages And Disadvantages Of Globalisation Economics Essay Redding (1999) defines that globalisation as the increasing integration between the markets for goods, services and capital and at the same time the breakdown of borders. Other researcher found that the process of globalisation not only includes opening up of world trade, development of advanced technologies such as communication, internationalisation of financial markets, growing importance of multi-national corporations (MNCs), population migrations and generally increased mobility of persons, goods, capital, data and ideas but also critical problems such as infections, diseases and pollution (Braibant, 2002). Thus, from many point of views, globalisation is seen to be the borders between countries, governments, the economy and communities, increasing liberalization and openness of markets, particularly through the elimination of barriers to trade in goods and services and the development of integrated international financial market. PRUS (2001) simplified the term of globalisation as a process of increasing connectivity, where ideas, capital, goods, services and people are transferred across country borders. Labour and employment Positive Impact However, the process of globalisation can bring more jobs opportunities in host country when MNCs move their production operation into developing countries. According to Rama (2003), job creation only will occur in export-processing zones where large amount of work forces are required in order to keep the production running. A good example of jobs creation would be Coca-Cola decided to invest in Malaysia with a new bottling plant, consist of $301 million investment. They stated that this investment will able to create 600 to 800 jobs at the plant with 8,000 jobs connect with local suppliers (Agence France-Presse, 2010). Negative Impact Woods (2000) stated that the government of developing countries start to compete with each other by deregulate their policy to attract foreign direct investment (FDI) and multi-national corporations (MNCs). Hence with lower the wages and taxes rates enable the investors to avoid the risk of losing their capital invested in developing country. Research done by The Economist (2001) and Woods (2000) and found that when the government of developing countries increasing minimum wage and labour safety standards in order to protect local workers rights, this might could cause MNCs relocate their operation to another developing countries, where that particular countrys labours, who were probably willing to accept low wages by any standards, lack of union representative and legal protections such as child labour and other gross labour that abuses by global companies. Technology transfer Positive Impact Transfers of technology depend on resource available by MNCs with the ability to achieve the level of technology development in order to make them competitively in global market. Usually developing countries unable to do research and development on their own as the technologies that required implementing the competition strategy are most likely to come from other countries through technology transfer (Stewartet al., 2003). Hipkin and Bennett (2003) stated that the extent of developing countries, participation in global economy depend on their ability to respect where the importance of technological transfer cannot be overemphasized. There are ten modes of technology transfer which has been identified by Peter Buckley (1985, citied in Transnational Corporations and Technology Transfer to Developing Country) but the most conventional form will be whole-owned subsidiaries. This form is also known as FDI where MNCs can lower their transaction cost (Cantwell and Dunning, 1994). Hence technology transfer to subsidiary in other country allow developing country to learn the operation of new technology. Sometime subsidiary didnt allow local firms to learn but they somehow find their way to obtain the technology such as hiring operator from that particular subsidiary (Mansfield and Romeo, 1980). Negative Impact However globalisation can also bring negative impact to developing country. Certain MNCs transfer their technology to developing country as those technologies might cause health problem to employees as well as local citizens. Good example would be Bhopal disaster caused by America MNCs subsidiary, Union Carbide India Limited that produces pesticides. Sophisticate technology bought into India but the leakages of chemical caused more than 500,000 people suffer from the disaster (Eckerman, 2005). Social impact Positive impact Globalisation can bring good and bad effect to developing countries. Developing able to reduce the amount of population that live below poverty level with the help of globalisation as the effect of job creation has been achieved (Lee and Vivarelli, 2006). Local citizens are able to get a job and ensure the survival of their family and improve their living standard. Negative Impact In this era of globalisation, social aspect is tightly related to the effect of the waves of globalisation such as living standard, career, families and their communities. In this case, globalisation are claimed that it is a method to organise someones life which consist of assimilation, communication among people, organisation, and the government as well in other part of the world. Hence, it was also called the method that used driven by global trade and investment aided by information technology. Besides, this issue is also directly inter-related with some other issues such as unemployment, disparity and scarcity, and environment as the chain effect of the waves of globalisation (Globalisation 101, 2002). The inter-relationship between the technology and economic is very critical and it succeeded in consisting the rise of the theoretical approaches where the centrality of changes in technology have been accepted and the dynamic force of the term innovation in the elements of economical changes (Freeman, 1998; von Tunzelmann, 1995). According to Nussbaum and Sen (1993), investment in technology appears to have an optimistic link to wider philosophy in developing economic interests which include social choices and freedom capability in longevity and education. Globalisation on impact of the countries economy Positive Impact According to Baghwati (2004) globalisation is playing the significant role of enhancing economic affluence by offering new hope to developing countries. Gangopadhyay and Chatterji (2005) saying that globalisation has been characterised as a reduction in trade barriers such as free flow of goods, services and labour from one country to another. Richardson (2000) contends with these views as, the effect of this is increasing the trade which turn into increased income for developing countries and serves as an opportunity to stabilise their economies by taking the advantages of trade. This statement is true and has been proving by (Richardson, 2000; Dierks, 2001) that globalisation has greatly reduced the trade barriers between countries through adjustment of tariffs and import duties. Negative Impact The rise in globalisation has increased capital flow into developing countries economies. Foreign Direct Investment injects capital into developing countries in terms of stabilizing the countries economic. This is also a benefit that increased the countries financing through loans and grants from developed countries (Aurifeille, 2006). However, there will be net capital inflow that could lead to negative effects on trade. Chan and Scarritt (2001) noted that the large capital inflows were caused by the appreciation of exchange rates and inflationary pressures that impact on the countrys current account. This means that globalisation in improving the countries economy could actually stop the progress of the economy unless the host countries balance of payment focuses on the foreign plant where the export is more than import. The adjustment in trade barriers has lead to the promotion of specialisation to developing countries because they are able to concentrate on the production of commodities which can be produced at the least cost (Aurifeille, 2006). Developing countries fully use the advantage of globalisation to enhance their income through trading goods which they can produce most effectively. Such development is giving developing countries an opportunity to obtain goods that prove expensive to produce in their own countries. Corsi (2009) saying that, competition is always an effective way of enhancing innovation to produce better quality goods. Thus, globalisation had enhanced competition as the flow of goods and services between countries has becomes easier. Globalisation impacts on economic and environment Negative Impact Economic and environmental problems show few signs of improvement for a large share of the worlds people but when comes to external debt levels, weak export and real income growth, it often enter a mutually destructive relationship with environmental and resource degradation which linked to the agriculture and urban activity. The important connection between economic and environmental problems can be clearly seen in the widespread social and economic impacts towards soil erosion, deforestation, urban congestion, unmanaged chemical such as heavy metals, air pollutants, solid and liquid industrial and residential waste (Long, 1990). According to Huber (1982) and Simonis (1989), ecological modernisation was one of the primary modes of sustainable development which comprised both a theory and a policy or political programme based on the view that comprehensive political and economic change could be implemented to achieve a less material and energy-intensive economy through the application of integrated and preventive resource and pollution-reduction strategies. This technologically-intensive mode of production would not be a viable option for lower income nations because the intensive technological basis of ecological modernization suggests that its effective operation and flow-on benefits are probably beyond the reach of poorer nations. Indeed, rapid global technological progress has often resulted in the Intensification of uneven development rather than enhanced opportunities for the poor (Freeman, 1987). The post-materialist solution for technologically advanced economies would Conclusion Although globalisation can help developing countries to grow and become developed countries through different kind of benefits enjoyed by them but at the same time globalisation can bring disaster to developing countries, even can bring the whole country collapse in few months times. Research done by scholars indicated that globalisation can be a benefit to developing country but at the same time its also a threat to developing country. However the net benefits enjoyed by developing countries is greater than net cost paid as shown in this literature view can say that globalisation can actually bring benefits to developing countries.

Americas Foreign Aid Policy Essay -- Foreign Policy Politics Politica

It's Time for America's Foreign Aid Policy to Follow Thomas Malthus’ Prescriptions During the late 1700s, Adam Smith and Thomas Malthus each entered their predictions on the future of the world’s economies into the history books. In his writings in An Inquiry into the Nature and Causes of the Wealth of Nations, Smith theorized that national economies could be continuously improved by means of the division of labor, efficient production of goods, and international trade. In An Essay on the Principle of Population, Thomas Malthus predicted that the sustainable production of food in relation to population was vital to the mere existence of national economies in order to ensure an able labor force. Smith believed that the success or failure of a nation to progress toward development was dependent upon the quantity of labor and money invested in the production of manufactured goods. Malthus calculated that labor and funds would better serve a country if invested in agricultural enterprises aimed at feeding its own people. Their vast differences in viewpoints concerning development make it interesting to examine each author in the context of the United States’ reactions to the plight of the Third World. It seems that since the end of World War II, U.S. foreign aid policy has been largely based on the principles set forth by Adam Smith in The Wealth of Nations. However, while Adam Smith has seemingly been the U.S. foreign aid advisor of the past, it may be time for U.S. policymakers to turn their attention to the prescriptions of Thomas Malthus in order to resolve the worsening plight of the world’s poorest. This paper will first examine the implications and consequences of Adam Smith’s influence on U.S. foreign aid policy si... ...s Census Bureau. United States Trade Development Association. 1999. "Promoting U.S. Technology in Mining and Minerals." January, 1999. Arlington, Virginia: The United States Trade Development Association. http://www.tda.gov/region/sectoral/mining.html. Vockrodt, Christopher M. "Debt Crisis and the Third World: A Look Into the Growing Inequality Between The North and The South." http://www.ucsub.colorado.edu/~vockrodt/debt.html. Wattenberg, Ben. 1997. "The Population Explosion is Over." The New York Times. (November 23, 1997), Section 6, page 60. World Bank. 1985. Developing Industrial Technology: Lessons for Policy and Practice. Report Number 14983. Washington, D.C: The World Bank. http://www.worldbank.org/html/oed/14983.htm#technology problem. World Commission on Environment and Development. 1987. Our Common Future. Oxford: Oxford University Press.

College Admissions Essay: Half as Courageous :: College Admissions Essays

If I Could be but Half as Courageous    Helen Keller was born on June 27th, 1880 in Tuscumbia, Alabama. She was a bright infant, interested in everything around her, and imitating adults at a very young age. In February of 1882, she was struck with an illness which left her deaf and blind. For several years, Helen had very little communication with the rest of the world, except for a few signs which she used with her family. When she was six, her parents wanted desperately to do something to help their strong-willed, half-wild, child. They were far from any deaf or blind schools, and doubted that anyone would come to the little town to educate their deaf and blind child. They heard of a doctor in Baltimore who had helped many seemingly hopeless cases of blindness, but when he examined Helen, there was nothing he could do for her. However, he referred them to Dr. Alexander Graham Bell who recommended Anne Sullivan to teach Helen.    On March 3, 1887 Helen met "the Miracle Worker," Anne Mansfield Sullivan. Then, about a month later on April 5, Helen associated the water running over her hand with the letters w-a-t-e r that Anne was spelling into her hand. That day she learned thirty words and proved to be a very intelligent, fast learner from then on. She quickly learned the finger-tip alphabet and shortly thereafter, to write. Helen had mastered Braille and learned how to use a typewriter by the age of 10. When she was 16, she could speak well enough to attend preparatory school and college. In 1904 she graduated from Radcliffe College with Anne Sullivan by her side interpreting lectures and class discussion to her.    Helen then dedicated her life to improving the world. She delivered many lectures to improve the conditions for the blind and deaf-blind. She spoke out for women's rights and pacifism. She spoke in over 25 countries bringing new hope to many people. She spoke against World War I and her pay from lectures declined because of her stand. During World War II she visited military personnel who had become blind and/or deaf because of injuries. She also spent a lot of time raising funds for organizations working with the deaf and blind. Helen also wrote several books concerning her life, her religious beliefs, and her teacher Anne Sullivan.

Priestleys use of dramatic techniques to create tension in An Inspector Calls :: English Literature

Examine Priestley's use of dramatic techniques to create tension in the play. Priestly was a socialist writer, and 'An Inspector Calls' is one of the plays in which he tried to display his socialist ideals in. The play was written in the 1940's, a little after the end of the Second World War, and it was first performed in 1946, in Russia, then later in England. Priestly had served in World War 1, and the terrible scenes he saw lead to him having socialist views. He was inspired by other writers whose views he shared, especially George Orwell and H.G. Wells, both of whom references are made to in the opening pages of the play. A lot of the tension in the play is between Birling and the Inspector, both of who are powerful figures in the household and are both vying for dominance, creating a lot of tension. This is symbolic of the global struggle between capitalism and socialism, the Inspector represents Priestley's socialist views, and Birling, the antithesis of the Inspector represents capitalist views, which is made clear through his speech "the interests of Capital steadily increasing prosperity." When the Inspector is there, Birling is very fast to drop the blame on someone else, insisting "I can't accept any responsibility" which is a complete contrast of what the Inspector says, telling the family to "share the blame among yourselves when I have left" This constant conflict, which is often at the heart of the dramatic genre itself, makes sure there is tension whenever the two characters are talking to each other. This conflict is not the only one within the play. Eric also takes the side of the Inspector, causing tension between him and his father after the Inspector has left, this side is also taken by Sheila, causing a "split" in the family, which can be seen by "I suppose we're all nice people now." and "What's the use of talking about. Nobody's brought her to life, have they?" Whereas Birling says, after the Inspector was found to be fake "This makes a difference y'know. In fact it makes all the difference." Also the reference the Inspector makes about Socialism being a lesson we have to learn "We are members of one body if men will not learn that lesson, then they will be taught it in fire and blood and anguish." This is a reference to the way Priestley thought that Capitalism was the cause of First World War, which he himself served in, the "fire and blood and anguish" being a reference to events he witnessed while fighting on the front line.

Littlest Tigers

With rapid increase of GDP (Gross Domestic Product), the economies of Taiwan, Singapore, Hong Kong and South Korea have earned the reputation of being the â€Å"Four Little Tigers† of Asia. These four countries, primarily under the influence of Chinese culture had shown rapid industrialization in the decades of 1960s and the 1990s. Since the twenty-first century these four states have come under the category of ‘developed’ states. These countries, which are now developed, had adopted an export-oriented pattern of development. Production for domestic use was discouraged by way of high tariffs. This, accompanied by emphasis on public education, went a long way in ensuring sustained rate of double-digit growth for many decades. Education enabled these countries to produce cheap, but productive workforce, which became their strength. Egalitarianism was encouraged by way of land reforms, which ensured that peasants were never left dissatisfied. The above-mentioned measures brought a lot of economic benefit to these countries. They soon discovered that they had a favorable balance of trade. Though these countries had mostly non-democratic political systems in the initial years, yet they managed to ensure high rate of savings amongst their citizens. This was possible by focusing exports mainly to richer industrialized countries. ‘Tigers’ symbolize freedom, strength and bravery. These four nations, in spite of poor economic conditions, had been bold enough to allow a completely free economic system. Their openness and manpower produced great results. Ranked according to GDP; South Korea, Taiwan, Hong Kong and Singapore are placed at 12th, 21st, 36th and 44th respectively. According to the Heritage Foundation’s Index of Economic Freedom published in 2007: Hong Kong, Singapore, Taiwan and South Korea hold the 1st, 2nd, 26th and 36th ranks respectively. References Asia's Four Little Tigers: a comparison of the role of education in their development http://www.ingentaconnect.com/content/routledg/cced/1996/00000032/00000001/art00006 Industrialization and Welfare: The Case of the Four Little Tigers by James Midgley http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9515.1986.tb00253.x `Four Tigers' offer varied opportunities for U.S. firms http://www.bizjournals.com/sanjose/stories/1996/09/30/focus2.html   

Art work

Sherlock Homes and I are at the local coffee shop discussing the recent case of the kidnapping of Nancy Philips and how this event is ever so tragic. At this moment Sherlock Is approached by a woman. The woman looks younger, in her late twenties I would say, she had light brown silky hair & she was tall and a very fit woman at that. She had beautiful big green sad eyes and a big black overcoat on with a slouched posture. The young woman had her hair drooped over the side and pinned back out of her face.She stood over us for quite some time, then pursued into tears, Sherlock then went to the next table got a chair and offered her to sit down and explain the problem. The woman then said is a low voice, â€Å"My name is Georgia Nicole Philips, I am 31 and my daughter has been kidnapped† I could almost see Sherlock brain working when then he knew she was talking about poor old Nancy Philips which to to be her daughter. â€Å"You are indeed the mother of Nancy Philips? † sai d Sherlock in a questioning tone. Indeed I am, and I am so happy I found you here today, I have eared many wonderful things about you and your success In solving cases. I really hope you can help me figure out this ample mystery and hopefully find my daughter† At this moment Georgia reached in her handbag and whipped her eyes with a handkerchief then quickly stored It away as If she was embarrassed. â€Å"l see you have taken the metro here, you have recently been smoking you also have degrees In law? † â€Å"How did you know! She replied I observed the metro ticket sticking out the side of your left coat pocket that looks airily new; I also noticed your yellow stained fingers/fingernails & you have several key chains from the School of Law which most likely means you practiced law.

Nike ERP Implementation

What are the failure factors for the first NIKE-12 ERP-SCM implementation? All ERP implementations have risks associated that can lead to failure situations. The complexity of ERP systems together with demanding business environment, represent big challenges for companies when implementing an ERP. In the case of Nike, the situation is even more challenging because of the worldwide ERP deployment, and the large and complex scope of the project.Inevitably, and like all ERP implementations, Nike-i2's project faced complications at the different stages of he implementation cycle but those complications could have been minimized if the so called â€Å"Critical Success Factors† (CSF)I had been planned and managed properly. Using the 5 stages structure proposed in the report â€Å"Drawing Competitive Advantage through Successful ERP Implementation Projects†2, the failure factors are analyzed in detail in the following sections.First stage of implementation (project preparation ): One of the failures in the Nike-i2 ERP implementation was the lack of Formalized project plan/schedule. Feeling the market pressures, Nike did not commit to a isciplined plan and rushed up ERRS implementation, by â€Å"began to input data for its forthcoming Spring 2001 line when the system was still to stabilize†3 , giving reason to the opinions that projects cannot be driven by external deadlines4.Industry experts also warned about the boomerang effect (tight and unrealistic deadlines would come back in low quality results in the future) but Nike felt â€Å"12 technology was smaller and therefore easier to implement†. The result was the project failure and a financial storm (reduced profits) in the following financial periods. The executive eam as the responsibility to define the mission and scope of the project by analyzing the project business benefits and goals, and aligning them with strategic business goals.It is clear that in this case, Nike's executives wer e too ambitious by trusting blindly in a forecast system that was not completely adequate to Nike's business model (model was order based and not demand forecast oriented). As stated in Cnet â€Å"12 had past success projects with big clients such as Boeing, Nortel Networks, Raytheon and WalMart.. proving that 12 software is not perfect, but if implementation s done correctly, with proper planning, investment and scheduling, it will work well. â€Å"5 Implementing software is not a goal by it itself, remaking the business with the help of software is.Nike business goal was to create an efficient global supply chain by reducing inventory and manufacturing cycle, and this was a large and complex goal, thus, the software implementation could not be taken as simple and easy as Nike's executives toke it, failing to give Sustained management support to the project. In the second stage of implementation (Business Blueprint) the failures were: Nike elied too much in the (supposed) power o f the forecasting technology and underestimated its impact on the business processes changes such as orders processing, raw materials purchasing, fabric production, and demand management.That impact also affected the way employees and partners used to work. Anytime companies changes employee's working habits, it can get difficult to them to adapt to the new reality, thus, an Effective organizational change management is critical. Nike tailed ensuring that this complex change got the right results by not integrating properly people, process and technology. Nike's business context was very complex (120000 SKUs, operations in all continents, four seasons product turn over and product life cycle very short), thus, a deep knowledge of this industry was critical when implementing new business processes and ERP systems.Despite previous supply chain applications were troublesome Nike hired 12 that was inexperienced in the footwear industry. This situation could have been avoided if Nike had appropriately used consultants by integrating third-party specialists with industry experience in the project's team. By not managing this factor, Nike took a big risk and ncreased the probabilities of failure. Nike's business requirements were too complex and over detailed (like footwear's forecasting for styles, colors, sizes).If Nike had appropriately used consultants and also had promoted User involvement and participation, those experts could had shared their know-how in the definition of business requirements more realistic and aligned with the real organizational needs. The failures in the third stage of implementation (Realization) were: â€Å"i2's software did not offer all the required functionalities†6. Usually, ERP systems do not provide all the functional requirements nd 12 system is not an exception. That's why, ERP vendors offer interfaces to communicate with third-party products.The problem with Nike implementation was that there was not an Critical Success F actors is a concept presented in the report â€Å"Drawing Competitive Advantage through Successful ERP Implementation Projects†, by Jos © Esteves – Instituto de Empresa (Spain) and Joan Pastor Universitat Internacional de Catalunya, Barcelona (Spain) 2 ibid 3 SCM and ERP Software Implementation at Nike – From failure to success 4 http://www. cio. com/article/32335/Five_Lessons_Learned_from_Nike_s_i2_Debacle 5 ttp://news. cnet. om/i2-Nike-fallout-a-cautionary-tale/2100-1017_3-253829. html 6 SCM and ERP Software Implementation at Nike – From failure to success 1 adequate infrastructure and interfaces prepared in advance and tested before going live. The result was that the â€Å"Demand application and its planner did not integrate easily†¦ â€Å"7. Nike's demand for high customization was one of the main failures in this project. To Avoid ERP customization, Nike could have appropriately used consultants to reduce the need of very detail level forec asting (style, color, size).Consultants ould have brought also an experienced business vision, focus on ERP processes really needed to run Nike's business, alignment between Nike's requirements and ERP functionalities, and ERP best practices (including ‘2's recommendations and methodology) Forth stage (final preparation) is critically important to ensure the quality of the results, Nike's tailures were: To ensure that the ERP accomplishes the business requirements defined at the beginning of the project a Formalized testing plan is mandatory.In theory, this test plan should cover functional tests, data flow between ystems, user testing and performance tests. Nike did not perform any of those tests activities and the catastrophic results were: â€Å"System could not process large amounts of info. It was very slow and crashed†, â€Å"System could not handle thousands of variables to generate forecasts†, â€Å"Demand application and its planner did not integrate ea sily because different data formats. , â€Å"System sent inaccurate orders to manufactures and errors were not detected†8 In this phase, User involvement and participation, Adequate training program and Preventive troubleshooting are critical to guarantee that: the technical staff and end- sers know how to use the system; to prepare users to perform tests; and to prevent unexpected situations.These activities were not performed and under-evaluated by Nike as confirmed in the case: â€Å"it would work with requiring a pilot test†; â€Å"12 application was smaller†9; No communication between forecasting and inputs from sales and marketing; and no super users used in training. Data migration and data testing are crucial activities before system go-live because data is what really gives competitive advantage to a company and data is the core foundation for all business decisions, thus, an Adequate data migration process s essential. Analysts raised questions about a dequacy of information that Nike input into the system. â€Å"10, this means that Nike did not planned in advance the data activities (migration, conversion, cleaning, etc. ) and in the end the result was â€Å"Input data was estimated and didn't reflect the business reality, thus, forecasts could never be accurate†ll For the final stage (go live) Nike failed in: 0 Not giving sustained management support since â€Å"Executives did not hold review meetings, neither analyzed forecasting results†12.This transmitted a sense of no wnership and no own involvement to employees, resulting in no encouragement of system usage. From other point view, Nike also failed on the study of vendor's evaluation criteria: 0 According to the â€Å"six-stage model of the buying process for ERP software†13, one evaluation criteria is â€Å"Association with or the availability of third party vendor/ partners† and other criteria is â€Å"Qualifications, experience, and success i n delivering solutions to organizations of a similar size, complexity, and geographic scope†.It was clear that 12 did not had experience on the footwear industry and was not prepared or Nike's business complexity, so Nike should had decided for another vendor with industry knowledge or as an alternative to integrate 12 with a specialized third-party. 0 Nike seemed to desire the best-of-breed for each application area, ex: SAP for ERP, 12 for planning SCM, Siebel for CRM, etc. , which is not always the best option.As for 12, Nike knew that there were many disadvantages to choose this vendor, such as: 12 technology could not met all business requirements; data models were different between i2's demand and planner application raising integration problems with egacy systems; high effort was necessary to customization; there were 2 development and delivery cycles at the same time (one for 12 and other for SAP); and 12 had no experience in industry. A better option would have been t o integrate planning SCM with SAP from the very beginning, which turned out be what exactly happened atter the 12 Conclusion M project tailure.Nike-i2's ERP implementation failed in all stages of implementation on several CSF and also on the evaluation of the vendor. The failures were related mainly to project management and organizational factors proving that success is much related to eople and process and not Just technology. 7 SCM and ERP Software Implementation at Nike 10 11 12 13 – From failure to success ibid â€Å"A six-stage model of the buying process for ERP software† by Jacques Verville and Alannah Halingten 8 9 2.How do you evaluate the role of 12 in this process? Many factors which Nike failed to manage can also be applied for 12, resulting in a shared responsibility for the project failure. 0 12 did actually recommended Nike to â€Å"minimize customization to 10-15% of the software†14 but at the same â€Å"Nike and 12 worked together to incorpora te the desired hanges†. 1 5 This means, 12 agreed to do the changes when Nike insisted on high level of customization, thus, 12 also has responsibilities on the high customization failure.Responsibility could be different if the level of customization was written in the contract to be limited by 10%, and above that, 12 would not offer product guarantee. 0 The project did not have formal plan and no realistic deadlines. 12 as company, cannot be Just a software vendor, it must participate on the plan definition and monitoring. By accepting Nike's deadlines, 12 was also responsible for the delays nd for the low quality of the delivered software. 0 Nike began to input data while the system was not yet stable but 12 did not force Nike to stop this.A vendor must deliver his product when it is ready and according to negotiated deadlines. 0 12 did not have footwear industry knowledge but accepted to be part of the project, taking a big risk and being too ambitious like Nike was. The r esult was that 12 became overwhelmed with the business complexity and in the end the forecasts did not worked out as expected. 12 should had analyzed better Nike's business and industry, nd sub-contracted a third-party specialist in that industry. Nike did not use ‘2's implementation methodology; executives did not hold review meetings, neither analyzed forecasting results; there was no pilot test and no training. A vendor must also be part of the project management team to: define and negotiate formal deadlines, implementation phases, methodologies, tasks, roles, test plans, risk management plans, performance goals, etc. A vendor must assure that the contract is clear about: who owns the project; who is responsible for what; what resources will e available during the project; what are the expected benefits and results. 3.Describe the main problems associated with ERP software modification (short-term and long-term) Short-term 0 More time to implement a modified ERP compared w ith the time to implement an original ERP. 0 Higher costs during project's implementation to pay analysts to define customized business processes and to pay programmers to customize the new functionalities on the system. 0 Higher costs to run additional tests to guarantee customized functionalities work as expected and do not affect the original system apabilities. 0 Additional costs to train end-users on the customized functionalities.