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What Is Nibco's ERP System?

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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). …show more content…

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

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