The recommendation from the Boston Consulting Group was to implement an ERP system in manageable intervals over a three to five year period, but internal NIBCO selection team endorsed a “big bang” approach to leadership team for a number of reasons (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012). While there was a cost savings under the big bang approach, there appeared to be more important reasons including: fear of complacency with partial implementation, poor success ratio with delayed implementations, and business needs that urged a compressed implementation timeline.
ERPs are notoriously difficult and time consuming to install since they impact all areas of a business’s processes. Forty percent of all ERP installations are only completed partially and another twenty percent are complete failures resulting in a removal of the system (Yick, 2011). This leaves successful, complete, ERP implementations in the minority and NIBCO’s selection committee did not want to create additional opportunities to fail, especially with the data issues that were occurring with their legacy systems (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012).
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NIBCO could not afford for their ERP implementation to be delayed or to significantly exceed budget since the existing information systems were encountering regular downtime (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012). Also, since all other major business initiatives, except the distribution center consolidation, were placed on hold; delays might impact the business’ ability to maintain customer satisfaction. With nearly 200 people being involved in the project, it was critical for the ERP installation to move quickly and to return those personal to necessary positions within the
In business, it is important for companies to be able to communicate effectively. Each department of a company relies on the other departments as they add to the value chain. One way for a company to integrate its different departments is enterprise resource planning. ERPs are software programs that allow companies to join together data across operations on a company wide basis (Jessup and Valacich 248). ERPs store company information in a common database and allow all departments to access it from one central location (Koch). Companies without ERPS may contain many legacy systems, each operating with different
One of the main hurdles was the time constraint of choosing a new ERP system. In the beginning KEDA experienced rapid development and expansion which inevitably resulted in them outgrowing the abilities of their current IT system. This was an urgent challenge because the more they waited for a replacement; the risk of losing customers would weigh heavily upon the company. Since there was a lack of IT skills in their in-house workplace, KEDA therefore needed to replace their current system with a more effective alternative within a short time period. Selection of a third party ERP provider would be a challenge because there were numerous vendors Dr. Zhu had to choose from. A suitable provider must satisfy the needs of the company in order for it to be successful. KEDA invited over 20 vendors to assess each for quality. One of the drivers that helped KEDA becomes successful in its selection was allowing middle and top managers to have a say. This helped ensure a team effort and articulated that company’s corporate structure did not work as separate entities, but as a singular
Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf
▪ The Tektronix case is a timeless but extremely relevant case that beautifully captures the dilemmas, pain, and fears that most organizations went through in the 1990s and 2000s in the process of upgrading to ERP systems. Unlike Tektronix, several companies have failed in the implementation and a closer look at common pitfalls is essential to understand the key success factors.
In general, ERP systems are designed to standardize information entry and create data storage for information sharing across the organization. There are numerous advantages of ERP but skeptics argued on the fact that these advantages can be also achieved by simplification and lean production methods. IT systems could be effective and reliable in the long run but at the same time there is an uncertainty about whether it will align with the concerned business process. For instance, the ERP system implemented at the Korey plant to replace MRP system failed. Though it met the requirements of individual unit and enabled employees with wide range of
ERP Implementation Babin Kunjappa Florida Institute of Technology Course: MGT5115 | Term: Summer 1 2015 Course name: Global Information Technology Management Professor: Dr.Nabie Conteh Date: June 19, 2015 ERP Implementation CHALLENGES, CHANGES AND BENEFITS OVER LEGACY SYSTEMS, AND CRITICAL SUCCESS FACTORS FOR ACHIEVING GOALS 1 1 TABLE OF CONTENTS Abstract .................................................................................................................................. 2 1.
After reading the case study, there were many conditions which I think made the ERP implementation desirable for Bombardier Aerospace. As quoted in the case study by a senior project manager that ‘Organization has become a textbook silo organization’ because of its acquisition strategy. This particular quote is one of the desirable reasons as whenever Bombardier Aerospace acquired any company they adopted the data, process and the systems of each company and hence it was just like a textbook silo. The cost of information system ownership increased due to the increased number of systems. There were process delays, sequential
In the case of NIBCO, it was not beneficial to their staff to put a rush on implementing the new SAP program because this rush made it hard on employees and their families because the employee had to work harder and longer. Having this type of work environment on a daily basis could definitely lead to stress at home. The Boston Consulting group (BCG) was brought in to help the company develop a strategic information systems plan to meet its new business objectives. The fact that they were recommending a three to five year phased ERP implementation system was not the best approach because it would take too long to implement. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) Another con in the implementation plan was the fact that NIBCO would have to commit a significant portion of its resources in order to quickly put in place the systems to execute the new supply chain and customer-facing strategies. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) In implement that SAP program, it seemed as if it would have benefited NIBCO better if the management consultants would have known more about ERP and or SAP so it would not be difficult to apply their principles. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) Even though there were some negatives, there
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
This case discusses Geneva Pharmaceuticals and the much needed ERP implementation within the organization. Geneva is one of the world’s largest generic drug manufacturers. Geneva needed new organization within the company to help better manage the over 200 SKUs in different size packages. Their old way of doing business caused confusion and errors resulting in setbacks and overall negatively affecting the company. Realizing this, management at Geneva searched for a new ERP system to implement to solve these issues. After weighing the pros and cons of two different ERP systems, Geneva decided on implementing BPCS in their branded drug divisions and the generics agreed to
These failures in implementing ERP systems are very much alive today and as long as smaller companies transition to an ERP software to keep up with their growth, they will still need to go through the process of learning from their own mistakes when implementing and ERP system unfamiliar to them. Those companies that fail and fall into the bankruptcy category are those that will do very little planning and those that plan and research before their implementation will have fewer and lest costlier setbacks but all companies will undoubtedly go through some kind of turbulence when implementing ERP systems. A Good example of not putting the “right people in place” as Thomas Davenport puts it, is when Montclair State University filed a lawsuit against Oracle clamming that Oracle carelessly implemented their software that would potentially them $20 Million more than what they had planned. According to a
A comprehensive study of Joshua Arkwright & Sons, and the benefits they can expect to receive through an ERP implementation.
Gefen, D., and Silver, M. (1999). Lessons learned from the successful adoption of an ERP system. Proceedings of the 5th international Conference of the Decision Sciences Institute (pp.1054-1057), Athens, Greece.
Anderson (2014) said “ERP implementations rarely fail in formulation; however, they frequently fail in implementation.” It does not in with just purchasing an ERP system. A well designed implementation plan is the company’s ticket to success. A well designed implementation plan addresses all potential bottlenecks like execution problems such as lack of training, attitude and participation of the entire workforce from leaders to staff, and member selection for the whole ERP project implementation team. An ERP project is
R.Appuswamy , the Department of Engineering and Technology, Deakin University, Australia says, “Based on the implementation experiences of a few companies like Cable Systems International (Appleton et al.1997),Amoco Corp (Jesitus,1997) McKesscn Corp(Wilder,1998), BCAG, Ansett Australia the issues that confront ERP implementation are People, Business Process Reengineering, Data migration, Hardware and Network topology and