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Case III-5 (page 468) • NIBCO’s “Big Bang”: An SAP Implementation o Case Analysis Requirements Discuss the reasons organizations, such as NIBCO, make the decision to move forward with major software...

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Case III-5 (page 468)
• NIBCO’s “Big Bang”: An SAP Implementation

o

Case Analysis Requirements

  1. Discuss the reasons organizations, such as NIBCO, make the decision to move forward with major software implementations like ERP

  2. NIBCO decided to use one approach to implementing the ERP system. Discuss this approach, as well as another implementation approach that was available to them

  3. If you were the head of information systems at NIBCO, discuss the ERP system implementation approach you would have recommended, and provide the reasons for your recommendation

  4. Discuss NIBCO’s management leadership style that was used in the ERP system implementation process, and whether it was effective or not effective. Provide your reasons for its effectiveness or non-effectiveness

  5. There were several project team roles to be filled on the project. Discuss the functions and expectations of these roles, and the skills set or characteristics of those expected to fill these roles on the project

Answered Same DayMar 11, 2020

Solution

Arun answered on Mar 13 2020
69 Votes
NIBCO Case Analysis
1. Discuss the reasons organizations, such as NIBCO, make the decision to move forward with major software implementations like ERP
The reasons for the organization believe of its employees that the organization is information poor and therefore, new software such as ERP is needed. The reason was Rex Martin determination to implement the ERP system. This was defining moment. Company recognised that cu
ent legacy system did not support it to improve the performance and co-ordination amongst the employees. There are other monetary reasons to implement ERP such as reduction in the cost of inventory management, operational improvement that saves much of cost to the organization and return on investment that is predicted at 6 percent. The ERP single phase implementation or BIG bang approach was considered by the management as risky but highly rewarding too and therefore, the company proposed to go for Big Bang approach.
2. NIBCO decided to use one approach to implementing the ERP system. Discuss this approach, as well as another implementation approach that was available to them
The approach selected by the NIBCO was big bang approach. The big bang approach is complete transformation from the previous software system existing in a company. The big bang approach is one time approach that provides quick results but also is very risky (Katerattanakul, Lee, & Hong, 2014). The feasibility of BIG bang approach is for big and medium sized organization. In this approach, the go-live takes place in one day and before implementation, systems are checked, trail runs are conducted, staffs are prepared and adjustment in organization are completed. Though the big bang approach seems costly but the return on investment is acquired quickly that makes it a low cost investment. But on the other hand, this approach is disruptive as well. Preparing every person to switch to a new system may create chaos and confusion the business practices may be disrupted and the organization may suffer from losses. The productivity of the organization may be dampened. All these factors are to be considered before implementing the Big bang approach.
There is another approach that is known as phased approach. The organization in...
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