Nibco’s “Big Bang”: an Sap Implementation

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CASE STUDY - 3 on NIBCO’s “Big Bang”: An SAP Implementation The University of Findlay MBA 665.51 Management of Info & Technology SP, 2014 Submitted to Dr. Dana Ladd 1. Why did NIBCO decide to purchase an ERP system? NIBCO was a mid-sized manufacture company that produced the valves and pipe fittings. It has it's head quarters in Elkhart, Indiana. In the middle sized firm like NIBCO, in which the importance of manual labor is very crucial, the management of this manual labor and the entire management and the implementation of Enterprise Resource Planning plays a very vital role. Prior to 1995, NIBCO implemented Information System within the company and that turned out to be a not go good success. It was outdated and was incompetent with the company's ever increasing market sales. Then the company's management team has come up with a conclusion that a crucial step has to be taken in order to rectify the current supply chain information system. I would say that this was a typically necessary step that has to be taken to assure effective integration among the plants within the company. Thereafter, In 1996, NIBCO has come up with a strong decision to execute a plan to 'Go Live' with new SAP program. Anyways, the reason why NIBCO has come up with such decision of Implementing ERP system is the same as the other companies that made the same decision. The major key conclusion from the exceptive planning which led to the Enterprise Resource Planning implementation was the firm could not succeed with the current IS ( Information System). The systems which the organization had used had evolved into a patchwork of legacy systems and reporting tools that could not talk to each other. ( Brown, Dehayes Hoffer Perkins and Martin 2012). And the lack of system communication was because of the reason that over the years, this firm had a package of

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