SURESH VASWANI, JT. CEO,ROLAND PAANAKKER IT BUSINESS & MEMBER OF THE BOARD,VP, LEAN BUSINESS SOLUTIONS / CIO, NIKE INC. WIPRO LIMITED
Over the past decade, Nike and Wipro have Neither Nike nor Wipro have time to rest onworked together to leverage and mold their laurels. There are better ways to serveall kinds of technologies and solutions in customers, better experiences to provide.innovative ways to help Nike serve its There is unlimited potential.customers and grow its business, outpace thecompetition, and reduce costs. They have also We have learned from each other, and learnedbuilt an adaptive and agile IT infrastructure that both companies have entrepreneurialto stay nimble and meet the demands of DNA combined with the “Just Do It” energy.shifting markets. Both companies have an unyielding passion for excellence and a strong commitment toDriven by a passion for sports and fitness, and customers and the community. Commonfor helping both novices and great athletes corporate values are built onreach their full potential, there is a keen focus social responsibility, innovation andon innovation at Nike - from product commitment to ecological sustainability.development to new ways in reachingcustomers. Innovation plays a center-stage role Nike, for example, is investing millions ofin helping the Nike IT team “deliver IT dollars through grants, product donations andsolutions at the speed of business.” in-kind support to give excluded youth greater access to sport and other programs designedThe pace of business has sped up over the past to unleash human potential. While thedecade, as has the pace of technological Wipro Cares initiative focuses on education,change. The year that Nike and Wipro started community and social development. Nike andworking together, Google’s founders were Wipro also are driving ecological sustainabilitysetting up offices in a garage in Menlo Park and throughout their operations - including greenY2K was in our lexicon. The BlackBerry was data centers, paperless e-enablementbeing created, and Nike was preparing to begin processes and waste reduction through supplyselling its products directly to consumers on chain optimization.its web site for the first time. At a milestone anniversary of a partnership,To win in the marketplace, Nike leverages there are moments of reflection, nostalgia, andboth nascent and well-known technologies. remembrances of accomplishments andInnovative, technology-driven solutions that friendships. This book celebrates thehelp sustain Nike’s global leadership position, accomplishments - small and large - of thebuild brand equity - and reinvent the industry, men and women of Nike IT who arealong the way. Nike has created new ways to responsible for planning, developing,foster conversations with consumers and implementing and maintaining technologycollaborations with partners, gather business for Nike around the world.intelligence and user intelligence, and stay lighton its feet. Wipro is proud to be part of the Nike team, and we are pleased to be able to share some of our mutual stories.
Nike began investing in a new merchandise downstream activities - from gathering design warehouse in Tomisato, Japan, that would requirements to implementation to leverage the latest robotics-based automation integration testing to training the Nike team. technologies of the time. Nike faced a tight deadline for the new warehouse - it needed to “People in the U.S., Belgium, India and Japan be operational in time for an upcoming soccer were working on the project 24/7,” adds world event being hosted in Japan. Madhavan Seshadri, now a Vice President at Wipro and who in 1999 was the delivery Due to space constraints and logistics manager handling the Nike account. He was requirements, the new Japanese warehouse also responsible for setting up the very first Wipro needed to have all of Nike’s product lines support team for Nike. consolidated into one warehouse. Nike typically had separate warehouses for apparel and Among the Nike people working on the project footwear because of the very distinct were Jim Vander Velden and Michael Smith. stock-keeping characteristics of each line of “It was a great project on many levels,” says Jim, business, which encompasses multitude of sizes now Nike’s Director of Demand Fulfillment and colors - and widths, in the case of footwear. Solutions. “It was a big success for the business and it taught Nike how to rethink IT “We needed to bring the two very different partnerships. We acquired new skills, systems into a common application without overcame hurdles in creative ways, and many reinventing existing processes,” recalls Wipro of the lessons learned from the project are Vice President Gopi Padiyath, who worked on helping us today. ” the project. With much fanfare at both companies, the Nike also wanted to introduce standardized new system went live on the date it wasWAREHOUSE MANAGEMENT boxes for the athletic footwear line in order to save space, packaging time and costs. The promised and came in under budget. Wipro’s first strategic project with Nike resulted in Japanese language added another element of cost savings and high-quality performance. As complexity. The new warehouse system had to a result of the project, Wipro was inducted recognize Kanji script, so that orders could be into Nike Japan’s Hall of Fame. read and processed. “The desire to create something special held Wipro was chosen to implement the us together in good days and bad,” recalls management system that runs the entire Anand Kashyap, Client Partner, Wipro warehouse. “It was just out of the world,” recalls Technologies. “What made it all the more T.V. Vinod Kumar, who still supports Nike in his enjoyable (and easier) was the commitment current role as Wipro Vice President for Global from Nike and from the Wipro management Delivery. “It was as if I had walked into a team. Much like the classic proverb - Star Trek movie, because that’s the kind of If you want to go fast, go alone; if you want to leading-edge automation that was in the go far, go together.” warehouse.” Today, Nike’s warehouses located around the To stay ahead of the competition, Nike chose an globe - including Belgium, China, Korea, Japan, innovative, but not-well known, warehouse and North America - run on warehouse management application. A wide range of skills management systems that Wipro helped Nike and technologies - such as AS/400 SYNON deploy and support. All Nike merchandise is knowledge and the ability to create interfaces distributed efficiently through these global to the material handling systems - were warehouse systems - including inventory that required to implement the management system. goes to retailers and to Nike’s own retail and Wipro was involved both in upstream and online stores.
JIM VANDER VELDENDIRECTOR OF DEMAND FULFILLMENT SOLUTIONS, NIKE INC.
As an early pioneer in the concept of and order management systems help athlete endorsements and brand Nike improve operational efficiency. ambassadors, Nike has an uncanny ability for picking megastars before The global platform - built to scale they become household names. In with business growth - began by 1996, for example, Nike Golf signed a capturing almost half a billion dollars young, relatively unknown golfer worth of purchase transactions in its named Eldrick “Tiger” Woods. The first year. Today, Nike.net captures an following year, Tiger won the Masters eight-fold increase in annual by a record 12 strokes - and inspired a transactions - and dramatically reduces new generation of golfers. operating costs, while providing key customers superior service. Nike also has great instincts in picking and investing in new technologies. Wipro today provides 24/7 support Technologies that support new ways for all of Nike’s Go-to-Market of doing business - whether reaching mission-critical applications, which and keeping pace with consumers, encompasses Nike.net and retail order working with suppliers and retailers, capture applications and planning tools or entering new markets. Wipro has used by Nike’s sales reps. Altogether helped Nike implement many of these applications capture $12 billion these technologies, including some worth of transactions each year. Nike that are considered pioneering and Wipro are working to expand and break-through. sales rep tools to include collaborative sales planning applications that Nike’s first B2B solution, which was generate product mix suggestions forNIKE.NET launched almost a decade ago, is one example. A significant engagement retailers - using information gleaned from Nike’s databases. from a technology perspective, as well as its business impact, Nike.net takes More recently, the Nike.net portal is order processing to a new level by sporting a new look and feel and an capturing orders online, directly from easier-to-use interface for better Nike’s large retail customers. navigation. The facelift, remarked one retailer, is like shopping in a high-end Nike.net, based on the ATG platform specialty store - easy to find things and and Java technologies, serves as the transact business, with support and B2B backbone of Nike’s operations service available when you need it. and handles footwear, apparel and equipment order transactions. In According to Craig Simmons, Director, addition to accelerating the speed of Global Sales and Customer orders, Nike.net replaces paperwork e-Commerce, Nike Inc. , “The slick and e-mails and provides more new Nike.net UI showcases the accurate sales forecasts to help Nike creative talents of Wipro. It was a manage its supply chain. It integrates significant milestone not only because data and processes from all areas of of the success of re-energizing the site, the organization and helps manage the but because we also deployed a new complexity of different languages, engagement model for ‘co-running’ currencies and local business practices. the project.” Also, real-time interfaces to inventory
– CRAIG SIMMONSNICOLE OTTO, DIRECTOR, NIKE INC.
When Anand Moorthy, Wipro Vice President and Head of Testing Services, in early 2006, went to the famed Nike campus - near Beaverton, Oregon, with its six-acre lake and extensive running trails - to talk to Nicole Otto about how his organization could help in reducing software deployment time, he found Nicole standing and typing behind a desk. “You feel the Nike fitness culture and high energy as soon as you ER ENT step on Nike’s campus,” says C Anand. “There is motion ESTING everywhere. Nicole and other RE T employees stand and work at A their desk, for example. Nicole isSOFTW never in one place. She walks around, types and holds conference calls standing up. She keeps moving. She never sits at her desk.” As a result of that initial meeting, Anand and Wipro’s Lead Test Architect Vishwanath (Vishy) Eranki and his team assessed Nike’s testing processes. Wipro proposed a way to improve software quality by using a central testing factory to test all software, including software developed by Nike and contractors. Based on test and validation results from Wipro’s independent testing unit, Nike was able to take steps in fine-tuning their software applications which in turn, has helped Nike in deploying projects under very strict timelines and budgets.
NICOLE OTTO, DIRECTOR, NIKE INC.
For a company the size of Nike, Nike and Wipro, working with partners integration is a critical piece of the like Informatica, developed best practices company’s enterprise architecture. and standards for the Center. Nike acquires insight and improves “From the beginning, we asked Wipro to operational efficiencies by integrating all be our partner in the formation of the kinds of information, applications and ICC,” says Steve Dennis. “Wipro has been processes from different parts of Nike’s with us every step of the way, leveraging sweeping operations. Information that their experience and thought leadership helps the company determine what to help get Nike’s ICC up and running. As people are buying, what the demand for Nike works to drive towards the full new products will look like, and what the benefits of an ICC approach, our supply chain needs in order for retail partnership with Wipro continues to grow stores to fulfill that demand effectively. - delivering value to both organizations.” Steve Dennis, from Nike’s Enterprise One of the earliest clients of the new ICC Architecture, was looking for a better was the Nike Planning group, which was way for integration across Nike. facing an upsurge of requirements with He knew that with Nike’s growth, very tight deadlines. Nike Planning more applications within Nike and Managers Jake Niesen, Radha Harathi and external business partners would Julie Hurt worked with ICC to create an need to be integrated - and faster in “integration factory” for Planning, in order order to keep pace with business. At the to complete the work in record time. time, different parts of Nike were using or procuring popular integration tools - “We are delighted that we were given the such as Informatica, e*Gate and opportunity to work on a concept like ICC,” JCAPS - but there was no standardized, says Srini Pallia,Wipro’s Senior Vice consistent approach or process for President and Global Head, Business integration initiatives. Technology Services. “As we progress in our implementation, the new Center will help Steve started to promote the idea of an Nike address many of its strategic priorities, Integration Competency Center (ICC) in including reducing costs, standardizing Beaverton. By centralizing and technology and improving service levels.” standardizing integration work, Nike would be able to drive down costs, reduce The Center recently received industryINTEGRATION COMPETENCY CENTER work duplication and improve delivery, adaptability and manageability recognition in the form of the 2009 Informatica Innovation Award - which of Nike’s IT portfolio. Steve reached out recognized Nike and Wipro for achieving to Wipro for help. exemplary business value.
STEVE DENNIS, DIRECTOR, DATA INTEGRATION SERVICES, NIKE INC.
ENTERPRISE BUSINESS INTELLIGENCE OPTIMIZING RETAIL MARKDOWNS GLOBAL BASIS AND DBA SUPPORT With increasing market complexity, traditional sources of business Tight profit margins and intense competitive pressures require Throughout the day, Nike’s enterprise information is collected, insights are no longer sufficient. Companies need more granular that retailers maximize the returns from their end-of-season and stored and accessed.Terabytes of information reside in Nike’s information on more types of information - including customers, end-of-life merchandise. But markdowns can often be taken at the databases, that help power extended supply chains, SAP inventory and financials - and advanced analytical capabilities to wrong time, on the wrong items, at the wrong locations and at the applications and Go-to-Market solutions, to name a few. find and interpret information in innovative and useful ways. wrong price.This results in either lower margins or lost revenues, and leftover inventory. Nike’s Enterprise Services Support group is responsible for all the Every single day Nike mines Enterprise Business Intelligence (EBI) databases - whether they are running on Oracle, SQL Server, DB2 from unprecedented amounts of data and information that run To maximize product sell-through and margin, Nike launched or Teradata - as well as handling SAP Technology Basis work. through Nike’s ecosystem.To support the growing volume of SAS Markdown Optimization (MDO) enabling the U.S. information and analytical capabilities that Nike’s businesses “Direct To Consumer” team to adjust markdowns in response “With growing global demands to provide 24x7 system and needed, Nike’s EBI team deployed Teradata and Cognos to the to consumer demand. operational support, it was clear we needed to explore new IT existing landscape of SAP BI and Oracle.The solutions help Nike support models to meet those challenges,” says Mitch Spaulding, SAS MDO provides Nike’s U.S. retail business a reliable way to Senior Manager of the Nike Basis Team. tap into its data marts and data warehouses to deliver the right predict the impact of markdowns before they are executed, information to the right people at the right time, in order to make determine the best time for markdowns, and monitor the Wipro was first brought in to shore up support for the SAP Basis the best decisions to drive the business forward. Nike was now performance of past and ongoing markdown activities against Team in 2004, so that the Nike team could focus on the SAP looking for an external partner to help support its EBI systems. financial and operational goals. By leveraging sales and Go-Live project in EMEA.Today, Wipro provides 24x7 monitoring Nike evaluated potential vendors based on their ability to deliver inventory patterns at a store level, SAS MDO is able to of Nike SAP and database environments worldwide, so that three levels of service - from handling minor changes to the forecast optimal price reductions that enable Nike to meet its information is always accessible and protected - meeting Nike’s critical task of delivering batches on time, which directly impacts business goals and maximize the returns from their global requirements. Nikes entities across the globe in generating decision-supporting end-of-season and end-of-life merchandise. One outstanding example of service occurred when an reports.Wipro was selected to support Nike’s EBI programs Mark Vo, Nike’s Markdown Optimization Manager, selected Wipro enterprise-wide system maintenance needed to be performed; under the umbrella of Nike’s FUEL initiative.Today Wipro helps as the strategic partner to support the Markdown Optimization touching multiple architectures and business communities. EBI in meeting its SLAs with its internal clients. tool and its interfaces with the U.S. ERP system.According to “We scheduled more than 60 environment outages spread over a “Wipro’s operations support for EBI was very valuable in that Mark, the partnership is resulting in quick and timely support very tight timeline,” recalls Mitch.“Wipro helped us meet our it enabled us to devote our key internal resources to other with high business satisfaction.The next step is to move the commitments to the business, demonstrating their ability to strategic projects that needed to be accomplished, which was partnership to a managed-services model. deliver with creative operational solutions. ” the vision of FUEL,” says Nike’s Jim Vander Velden. “It helped us “The partnership between Nike and Wipro has delivered a key “Wipro’s relationship with the Basis and DBA teams has drive towards our goals.” solution for our business that improves margins and grown, through time and experiences, into a full partnership in EBI’s Business Warehouse, for example, helps generate financial profitability,” says Mark. “But it hasnt stopped there; Wipro the form of a 24x7 Managed Services engagement model,” results on Nike’s business units. And, a demand planning and continues to demonstrate their ‘lean business’ thinking by adds Mitch. “When we meet at the round table to discuss finding opportunities to automate manual and tedious tasks. monthly results, areas of concern, and future opportunity, theENTERPRISE BUSINESS INTELLIGENCE ISE BUSINESS INTELLIGENCE logistics data mart enables Nike to forecast market demand, report and track customer buying trends, and sync supply chain This reduces Nike’s KLO/Production Support cost and conversations - based on mutual trust and respect - are focused on quality delivery. It has created a culture of OPTIMIZING RETAIL MARKDOWNS and inventory with demand. increases operational efficiency.” empowerment and transparency.” “Wipro has been a very good partner with EBI,” adds Nick GLOBAL BASIS AND DBA SUPPORT LO A N Nepokroeff, EBI Operations Manager.“They are deeply committed to customer service and have embraced LBS’s new emphasis on LEAN practices with enthusiasm.”
MITCH SPAULDING SENIOR MANAGER, NIKE BASIS TEAMNICK NEPOKROEFF MARK VO, MARKDOWN OPTIMIZATION MANAGER, NIKE INC.EBI OPERATIONS MANAGER, NIKE INC.
Nike is finding new ways to listen The information - real-time imagesclosely to its customers and create and videos, geographic information,personal, entertaining and engaging and end-user comments - will helpexperiences. Groundbreaking Nike+, Nike better serve and connect withfor example, helps consumers track customers. The information could betheir runs, and engage and challenge used for deciding where to sponsortheir friends online. Social media and future events, to better understandother technologies are helping Nike interest in a category, or even, ingain insight from user-generated selecting an optimal location tocontent to drive more-targeted open a store.product development, marketing andconsumer experiences. Wipro is also helping Nike Brand Managers measure consumer onlineVisual Intelligence - a new solution that buzz. Through a dashboard, Wipro’sleverages social networking and mobile brand monitoring tool measures how aphones - helps tap into community buzz brand is performing across thousandsin real time. The solution was created by of online information sources inNike, Microsoft and Wipro as part of a real time.Co-Innovation Lab partnership. “There are exciting opportunities for“Think of Visual Intelligence as Twitter brand building and brand management,”with pictures,” says Vivek Venugopalan, says Ramanujam, who helped create theWipro Practice leader, e-Commerce and Digital Marketing Cockpit. “The buzzMulti-channel Retail. “Photos captured at monitoring tool helps keep one’s eyesevents are uploaded with short captions and ears on the world of social mediaand broadcast to friends. Nike’s global - blogs, forums and social networks. Itcommunity can see, experience, discuss, can be used to assess opportunities fordebate and collaborate on events and more effective marketing programs andreal-world actions.” for competitive analysis. We are looking to visualize market data in new ways in order to create new opportunities.” VISUAL INTELLIGENCE
With long supply chains - measured by bothdistances and number of suppliers - retailersoften need to place orders for merchandisemonths in advance.To streamline the supply chain, Nike usesa Direct Store Delivery model for some ofits products - where Nike contracts withmanufacturers to make and ship productsdirectly to Nike - owned stores and topartner retailers around the world.According to Somjit Amrit, Wipro VicePresident for the CPG business, this modelhelps shorten the supply chain and reducewarehouse inventory costs. But what ifa retailer, due to increased demand orchanging economic conditions, decidesto change an order that was placed eightmonths in advance. “This could have a verycascading effect on the entire supply chainat Nike,” says Somjit.For speedier and more accuratecommunications in the supply chain, Wiproand Nike are engaged in looking for newopportunities to make the supply chainmore efficient and agile - including newworkflow engines and tools forthird - party order processing.“We are exploring some excitingopportunities to be able to shift productsto where it is needed - quickly and easilyfrom anywhere in the supply chain,” saysJim Vander Velden. MAKING THE LONG SUPPLY CHAIN FLEXIBLE AND NIMBLE
MICHAEL SMITHSENIOR DIRECTOR, ENTERPRISE SOLUTIONS & TECHNOLOGY, NIKE INC. BHANU MURTHY SENIOR VICE PRESIDENT, WIPRO TECHNOLOGIES
Most champions tell you that Technologies that weresuccess comes partly from emerging from entrepreneurs’talent, but mostly from garages a decade ago are nowhard work, perseverance ubiquitous. New game-changingand dedication. technologies are now taking shape by people whose namesOver the past decade, the we do not yet know.people of Nike IT have Technologies that when theydemonstrated that they are true emerge, will change how wechampions. Overcoming work and live, and transformchallenges, seizing opportunities how we do business. New- and always focused on the technologies that will helpfinish line for the big wins. reduce our carbon footprint. Technologies, such as augmentedThere is no time to rest on past reality and social computing, thatsuccesses. To keep pace in front will create new shoppingof tomorrow’s customers, experiences. And well-knowncompanies need to protect and technologies of today will beenhance their brands, stretch used in new, novel ways.their reach and inspireconsumer-centric innovation. To support Nike, Wipro willThe bar needs to be raised from continue to invest in innovationconsumer insight to foresight, by to increase the speed ofanticipating customers’ needs solution deployment and inand desires. Smart technologies tools and process innovations.will help companies meet the The company will constantlydemands of ever-changing look for new business modelsconsumer preferences in a and invest in core competenciesglobal economy. for tomorrow’s strategic technologies. Wipro looksNike IT will continue to deliver forward to working withinnovative solutions at the speed Nike on the next phase ofof business to help the company the journey.achieve its revenue goal of $23billion by fiscal year 2011. It willcontinue to help the companybuild its brand and leapfrog thecompetition across categories.
INDUSTRY RECOGNITION INNOVATIONCHAMPIONING SOCIAL CAUSES AND Both companies are considered industryTRANSFORMATION leaders and have been recognized with Innovations from Nike Sports Research numerous awards. Lab continue to raise the industry bar.To improve lives around the globe both Nike has introduced the world to theNike and Wipro provide resources, funds, Fortune placed Nike on the ‘Most Admired Flywire support system, Lunarlite foamleadership, inspiration and employee Companies’ list. For the third cushioning, and the Precool vest.volunteers. consecutive year, Nike was ranked as the Most Admired Company in AmericaNike believes in ‘the power of human As the largest independent R&D services in the Apparel industry.potential to accomplish anything: on the provider in the world, Wipro generatedfield, on the court, in life.’ The Nike Fortune ranks Wipro among the Top 10 more than 130 patents and inventionFoundation is applying that belief Global Outsourcing companies. disclosures in the past three years and isto tackle many social issues. The Nike considered the leading provider ofFoundation’s ‘The Girl Effect’ initiative, GREEN ADVOCATES Semiconductor IP in the areas of IEEEfor example, focuses on creating 1394 interface, Wireless LANs,powerful social and economic change Nike’s sustainability efforts - which were UltraWideBand and Bluetooth.brought about when girls have the recognized when the company wasopportunity to participate in named in the prestigious ‘Global 100their society. Most Sustainable Corporations’ list - GLOBAL FOOTPRINT focus on cutting greenhouse gasThe Azim Premji Foundation - created emissions across its operations, Just about anywhere the sun rises, you willby Wipro’s chairman - focuses on incorporating sustainability into the find Nike and Wipro employees supportingachieving quality universal education that design of products, and reducing its Nike’s IT infrastructure that helps powerfacilitates “a just, equitable and humane overall environmental footprint. the operations of, one of the world’s stellarsociety.” Working with teachers, consumer brands.administrators and government officials, Wipro believes that the future lies inthe Foundation focuses on achieving ‘sustainable solutions that will never Nike employs more than 33,000 peoplequality universal elementary school interfere with the environment.’ The globally. (Nike directly or indirectlyeducation. In one initiative, company tackles ecological issues through employs almost one million people,computer-aided learning (in 18 languages, its multi-pronged Eco Eye program. through its suppliers, shippers, retailersincluding tribal languages) is being Wipro was among the five companies and other service providers.)provided to more than 16,000 schools worldwide that received the United-reaching about 2.5 million children. Nations’ first Habitat Business Wipro employs more than 97,000 Awards for sustainable urbanization people globally. (2009), for its sustainable LEED-certified office buildings.