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Case Study Analysis: NIBCO's 'Big Bang': An SAP Implementation

Case Study III-5
NIBCO's 'Big Bang': An SAP Implementation
Carol V. Brown and Iris Vessey

- Discuss reasons behind NIBCO's decision to implement an ERP system.
- Describe the pros and cons of the approach to implementation decided upon by NIBCO.
- Provide your analysis and recommendation for how the project was managed including its management structure.

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Please refer to the attached solution.

NIBCO CASE STUDY
1. NIBCO had four legacy systems supported by order entry, manufacturing, distribution and accounting functions. The business units had purchased their own packages for some applications and plants were running their own versions of the same manufacturing software package with different databases. No system communicated with others as a result of which distribution couldn't see what manufacturing was doing and manufacturing couldn't see what distribution and sales were doing. In the past these legacy systems worked to the requirements of the business but as the company grew there were gaps in functionality due to multiple points of access and multiple databases. As a result most of the time was spent on resolving disconnects between different systems rather than improving productivity. These systems required lot of maintenance and also ad hoc changes which irked the IS staff time and again. Without an integrated information capability, being able to grow the company was a major concern as well.
The need for new information system arose when NIBCO began to reorganize into a cross-functional, matrix structure. It also initiated ...

Solution Summary

The reasons behind NIBCO's decision to implement an ERP system is determined. The pros and cons of the approach to implementation decided upon by NIBCO is given.

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