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
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 big bang approach of implementation is appealing because it focuses on the firms for a relatively and intense shorter duration of time compared to the phased implementation strategy. This assists in addressing shortages in the long-term resources. In addition, this strategy helps in condensing the difficulty and pain of an ERP project into a shorter time frame (Hammer & Champy, 2003). The big bang approach has a downside
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
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.
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 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.
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
Central Queensland University’s StudentOne implementation is not an exception to the above rule, and it carries a wide number of risks, not only because ERP implementation are normally accompanied with risks, but also because of the below relevant factors:
In this paper, I will identify whether the technological dilemmas dealt by companies dealing with ERP systems are valid today. Some of the non-technical challenges discussed “Putting the Enterprise into the Enterprise system” mentioned in the article were the lack of planning when it came to putting the right processes to fit the ERP system, implementing ERP system to have department data communicate with each other, and having a system that was uniform throughout but met the needs for regions of those large corporations.
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.
A comprehensive study of Joshua Arkwright & Sons, and the benefits they can expect to receive through an ERP implementation.
There are two basic types of ERP research, implementation-oriented and performance-oriented. The first type studies what factors foster success in implementing ERP, while the second investigates factors in ERP that affect performance. Research has shown that companies that use ERP outperform those that do not in functional efficiency, productivity, stock market, and financial metrics. Interestingly, ERP is found to have a neutral or negative effect on customer satisfaction and operating expenses. More predictably, general performance dips
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
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.
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.