NIBCO’s “Big Bang”: An SAP Implementation Carlin J. Murphy Columbia Southern University March 19, 2013 NIBCO’s “Big Bang”; An Sap Implementation NIBCO’s Inc. is a midsized manufacturer of values and pipe fitting headquartered in Elkhart, Indiana (Brown, Dehayes, Hoffer, Martin & Perkins, 2012, p.468). NIBCO had over 3000 employees and reported $461 million annual revenue. The company implemented SAP R/3 among its ten plants and four new distribution centers. Top management did not take the advice of their consultants concerning taking a slower approach instead of the BIG Bang approach, instead they decided to go along with Boston Consulting Group (BCG) to eliminate the legacy system and replace them with …show more content…
The project was conducted into four large phases, preparation, analysis, design and implementation. IS teams were capable of building scripting tools to assist with the project. NIBCO team members learned to apply an R/3 big bang implementation because IBM changed management approach was not ERP-specific. NIBCO’s also faced some problems implementing ERP SAP. According to Brown et.al (2012), “The consolidation was not completed when the final project plan was presented to the Board by March 1997 the company had committed to consolidate from seventeen small DCs to four large ones” (p.476). The integration had to work or personnel would claim that the company was no better off. The company could be harmed because other company initiative was on hole. The company made a huge mistake not back filling positions because the company still had to maintain. The company should have held on to their expert personnel at least 60 days after the project was launched. In summary, NIBCO’s made the right choice in moving to systems they would support its organization needs. The company took ownership of their project. The organization needed an information system that they could prosper from, communicate throughout the different departments and assist in great customer service.
This project demands significant involvement by IT personnel, Accounting and CIO. Our success is highly dependent on everyone’s efforts. To help achieve a smooth and successful implementation, it will be our responsibility to:
The case shows the implementation of SAP ERP solution in NIBCO, a manufacturer of pipe and fittings, a mid-size manufacturer with about 3,000 employees and revenue over 460 million USD. The company
The purpose of this project is to conduct an analysis research into the implementation and management of this business enterprise system. This project deals with developing and upgrading the computer system to handle to daily work load of our business while being able to conduct communication between sites and data back-up. Furthermore, we will analyze other various architectures features such as: system requirements, architecture selection, resources and timeline, security and the
“There is good agreement that the first 100 days after a merger change set the tone, signal the troops about the real direction of the organization and its vitality”(DiGeorgio, 2003,p.266) A slow integration process can actually worsen problems. Merger integration should not be treated as an after-thought. It is something that needs to be addressed during the merger search and negotiations phase while there is time to minimize any negative impacts.
I see the ERP system implementation project as a development opportunity for me to become familiar with the practical and technical aspects of the software. Having a ‘Kolb’ learning style of Converging (doing and thinking – AC/AE), this would assist me with future problem solving and support aspects of the software.
It is a good tool for faculty members to conduct information and deliver messages to all the students. It includes all the necessary catalogs, such as self-service, community, and career development. Right now, our college has more than 2000 active independent users. The senior team needs to work with the IT department to maintain or update the system.
The selection committee also did some benchmarking on each vendor’s implementation strategies and their success rates so far. NIBCO had the option to choose between selecting the best in-class supply chain and finance solution and selecting a single solution that had tight integration between all of the modules. Being a manufacturing company, it makes sense that the company was interested in the strengths of the core modules of the organisation are it supply chain and finance systems. However, the management opted for the latter as it meant that they wouldn’t have to invest as much time and money into building satellite solutions and smaller applications around the ERP system. This also meant that the data flow and interaction between the various modules (and thus, functional silos) of the ERP would be much
When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case
The project was faced with number of challenges on part of EDS and Navy officials. The Navy and EDS could have managed the challenges through spending more time in pre-contractual period so that they could have understood the legacy infrastructure, user’s need, and application more efficiently. Further, the implementation of new system should be done in phased manner – through small pilot projects. The other way through which EDS could improve NMCI’s project performance was through managing their human capital more effectively. They could have recruited and trained new management team that would stick firm to predefined schedule. The team should be made of experienced employees who can manage the technical demands as well as co-ordinate with the Navy officials. On part of Navy officials, they must have selected multi-contractors for implementing the project so as to maintain competitive spirit as well as avoid single-point failure. Thus, these changes will help the project to get successfully implemented and achieve the bottom line of
Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business
Although enterprise resource planning (ERP) projects are considered to be a risky investment for any organization, Keda had quite a number of reasons on why it decided to embark on ERP. The introduction of the Keda's silo-based model, as a way of encouraging a decentralized decision-making process, was actually affecting the performance of the Keda business. This was mainly due to the duplication of the identical processing tasks from different business units.
Because Tektronix previously had problems implementing IT projects, the company was mindful that replacing their legacy systems could be a risky undertaking. Further, it was well-known that wide-scale ERP implementation would be a very costly endeavor. Consequently, Tektronix managed the risks of its ERP implementation by having a coherent, guiding vision entailing: 1) separability of the businesses; 2) leveraging shared services; and 3) staying as "plain vanilla" as possible.
Though these are key success factors, the right understanding of what the project is all about is the first most pivotal. A company about to take on implementing an ERP solution must embrace the fact that it is not only an IT project but a huge business project. For Leadtek Corporation, the aforementioned factors are lacking. It is the purpose of this business report to point out the problems and determine what caused them. These setbacks will be then be recommended with corresponding solutions or possible preventive measures towards the end of the report.
ERP software is designed to model and automate many of the basic processes of a company, from finance to the shop floor, with the goal of integrating
This report is produced for the purpose of critically analysing the project life cycle of the ERP implementation at ABC Technologies. To begin with the ERP implementation at ABC could be called as a project when analysed against different definitions in theory. Due to the characteristics such as availability of a time, cost and resource plans. On the other hand the project is following a specific life cycle which could be defined with major