Nibco's Erp Implementation

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A Miracle? – Nibco’s Successful ERP Implementation Table of Contents 1. Executive Summary 4 2. Statement of Issues 4 2.1 The Background 4 2.2 The Need for Integration – Key Drivers for the Solution Change 5 2.3 Organizational Risks during the ERP Implementation 6 2.3.1 On Budget 6 2.3.2 The functionality must work, there was no other alternative 6 2.3.3 The Implementation had to be on time 6 2.3.4 Business Process Change 7 2.3.5 Lack of Related Knowledge 7 2.4 Technical Issues during the ERP Implementation 7 2.4.1 Delay of the Consolidation of Distribution Centers 7 2.4.2 Data Loading Difficulties 8 3. Data Analysis – the Outcome 8 3.1 Short…show more content…
On December 30, 1997, this so called “brutal” system implementation went live. The key decision makers involved in this implementation were: • Rex Martin – CEO, Senior Oversight Role • Scott Beutler, Project Co-Lead, Business Process • Gary Wilson, Project Co-Lead, Technology • Jim Davis, Project Co-Lead, Change Management Scott, Gary and Jim were the leaders of the SAP R/3 project team, which was named TIGER (Total Information Generating Exceptional Results). 2 The Need for Integration – Key Drivers for the Solution Change The major concern or reason of why Nibco needed to switch to SAP R/3 was to replace or “cut loose” from the company’s existing legacy systems. The main issue underlying the legacy systems was that they were separated systems and had problems to communicate between each other. Secondly, the company was looking for a standardized supply chain process. Without the support of highly integrated software system embedded with best practices in supply chain management as well as other processes, such objective to formalize the business processes was hard to achieve. Last but not the least, there was a need to “Support growth and/or acquisition” (Robey,2000). The management team was concerned about information integration when the company kept growing and became more global. “In late 1995 we

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