NIBCOs Big Bang
Reasons behind NIBCO's Decision to Implement an ERP System
One of the main reasons behind the decision by NIBCO to execute an ERP system that spun across the whole organization was the need to incorporate all the operations of the company over an assimilated, single policy. This was to ensure that issues linked to matching and managing information as well as data from individual and separate systems could be disregarded. And, this in turn, would ensure that the organization could operate and function in a more efficient manner.
The prevailing systems of the company were outdated, hence not satisfactory or suitable enough to sustain the increasing needs of the organization. It was imperative for the company to strengthen the whole of its supply chain process so as to meet and sustain the needs of the consumers. As a result, it was important to incorporate a platform that was not only integrated, but also centralized.
In addition, the decision made by the organization to shift to a cross-functional, matrix structure as a way of backing its functions and procedures by executing new ERP software, was considered an effective action. This is simply because the whole process of re-engineering was essential and key to getting rid of the outdated and outmoded processes. And, espouse the best processes...
One of the pros of this approach encompasses the reduced duration or time period of the project. This is beneficial because a shortened amount of time necessitates fewer resources, which are influenced by time. For instance, a shorter period implies that there would be need for fewer personnel to monitor the project. As a result, the organization was capable of decreasing costs related to project management and execution of the ERP system. Another benefit of the approach encompasses the decreased interruption of the business flow and operation. It is imperative to note that any information technology execution can interrupt the operations of a business. However, since this approach brought about a shorter time period, it implied less interruption of the operations. One of the drawbacks of this approach is the increased level of risk, and the accompanying probable impacts. It is imperative to note that…
Brown, Carol V. and Vessey, Iris. (2001). NIBCO'S "BIG BANG." Communications of the Association for Information Systems: Vol. 5, Article 1. Available at: http://aisel.aisnet.org/cais/vol5/iss1/1
Fayez, A. (2013). Information Systems Applications in the Arab Education Sector. Hershey: IGI Global
Hurricane Katrina Discuss reasons behind NIBCO's decision to implement an ERP system. The primary motivation behind NIBCO's decision to implement the new ERP system hinged on economic considerations. From a competitive standpoint, NIBCO needed to innovate. As the case illustrated, the company's information systems were unable to properly communicate with each other. As such, there was a lack of integration between critical business functions. The accounting department, for instances, was unable to
ERP There are a number of specific reasons that NIBCO made a dedicated effort to implement an Enterprise Resource Planning (ERP) system. Firstly, the company ascertained from a number of different sources that its information technology systems prior to the implementation of ERP were insufficient. The company had not invested in any of these resources for several years, and determined from various consulting companies and upper level management appraisals that