Many businesses are deciding to implement ERP systems. For many years, businesses had separate ways of handling their operation. Factories and departments had their own applications or software, making it hard to integrate, and/or communicate between the factories and distribution centers. Implementing an ERP system follows the company’s strategic goals.
Nibco’s decision to implement an ERP system was so they could have an updated and more efficient information system. Their current system was not sufficient enough to support their matrix or cross functional business structure. An added benefit for implementing the ERP system is so their business managers could know what their customers’ demands from several different markets were, and how they could fulfill those demands.
NIBCO decided to use a Big Bang approach to the ERP implementation due to the need of implementing as well as leveraging the changes which were then said to be a part of the organization’s restructuring process. In contrast to this approach was the primarily based upon the constraint of not having sufficient resources of its employees to the organization. Nibco hired a professional consultant servicer. They purchased software applications, assigned their top managers to lead the project, added an IS staff for planning, integrating, design, and installation of the new system.
The BCG consultants noticed that the system environment and databases were out of control, which caused the IS and IT staff to be too busy with fixing issues, rather than focusing on developing a supporting system for business activities. BCG reported that there was a need for change with their information system. “The current system is poor and needed to cut loose, in order for Nibco to grow, and become a more global company. “The BCG’s suggestion for three to five years implementation should be too long, somehow, this can cause more cost and efforts for NIBCO than actual need.” (Brown, 2012, p. 491)
Nibco decided to...